# Johnson & Higgins

**Established 1845**

**Insurance Brokers - Average Adjusters**
**Actuaries - Employee Benefit Plan Consultants**

CABLE ADDRESS "KEROGEN NEW YORK"
TELEX NO. 120627

95 WALL ST., NEW YORK, N.Y. 10005
TEL 701-7500 AREA CODE 212

June 27, 1985

Mr. Richard Faron
Insurance Department
International Business Machines Corporation
Armonk, New York 10504

Dear Dick:

EXCESS UMBRELLA LIABILITY
POLICY #FE4001605
EFFECTIVE: MAY 21, 1985 TO MAY 21, 1986

Supplementing our previous Advices of Insurance, enclosed is the captioned policy as well as a duplicate written with the Landmark Insurance Company providing IBM limits of $4,000,000 each occurrence part of $20,000,000 each occurrence/aggregate where applicable excess of $40,000,000 which was written at a premium of $22,000 for which our invoices were already forwarded to you.

We have reviewed the policy and find it to be in accordance with our negotiations except that we have asked the underwriter to replace Endorsement #2 (Excess Umbrella Liability Exclusion) with the wording that was attached to the #1a application. The wording which the underwriter has used could result in a situation where coverage was denied for IBM in an OLT situation. Also, the premium on the policy of $20,000 is incorrect and an endorsement will be issued showing the correct premium of $22,000.