**PRODUCER'S CODE**  
31-548456  
**NAME AND LOCATION**  
JOHNSON & HIGGS  
**PREVIOUS POLICY NUMBER**  
XLX 177 63 73.  
**POLICY PREFIX AND NUMBER**  
XLX - 186 64 74

**CO.**  
01  
**ITEM 1. INSURED'S NAME AND ADDRESS (NO., STREET, TOWN, COUNTY, STATE)**  
INTERNATIONAL BUSINESS MACHINES  
2000 PURCHASE STREET  
PURCHASE, NEW YORK 10577  

**POLICY PERIOD:**  
3/21/87  
3/21/88  

**ITEM 2. INCEPTION (MO. DAY YR.)**  
13:01 A.M., STANDARD TIME AT THE ADDRESS OF THE NAMED INSURED AS STATED HEREIN.  
**EXPIRATION (MO. DAY YR.)**  

**AGENT PLEASE SHOW RATE OF COMMISSION**  
COMM. 10%  

**ITEM 3. LIMIT OF LIABILITY:**  
$ SEE ENDT. #1  
EACH OCCURRENCE  
$ AGGREGATE  

**ITEM 4. UNDERLYING INSURANCE LIMIT OF LIABILITY:**  
$ 55,000,000.  
EACH OCCURRENCE  
$ 55,000,000.  
AGGREGATE  

**ITEM 5. PREMIUM BASIS**  
$ FLAT CHARGE.  

**ITEM 6. ADVANCE PREMIUM:**  
$ 97,170.  
ANNUAL MINIMUM PREMIUM: $ 97,170.  

**IN THE EVENT OF CANCELLATION BY THE NAMED INSURED, THE COMPANY SHALL RECEIVE AND RETAIN NOT LESS THAN $ 19,434. AS THE POLICY MINIMUM PREMIUM.**

**ITEM 7. SCHEDULE OF UNDERLYING INSURANCE:**  
SEE ENDORSEMENT #2.  

**FLAT CANCELLATION NOT PERMITTED**

**TAX TERR CODE - 05775. FOLLOWING FORM BLANKET EXCESS LIABILITY POLICY**  
The Company designated above, a stock insurance company, (herein called the Company) agrees with the insured, named in the declarations made a part hereof, in consideration of the payment of premium and in reliance upon the statements in the declarations and subject to the limits of liability, exclusions, conditions and other terms of this policy.

**INSURING AGREEMENTS**  
1. **Coverage.** To indemnify the Insured for the Insured's ultimate net loss in excess of the insurance afforded under the Blanket Excess Liability or Umbrella policies specified in Item 7 of the Declarations, hereinafter called underlying insurance, from the force and effect of which the acceptance of this policy is predicated that the insurance for injury to or destruction of property under this policy and underlying policies shall not apply except as respects injury to or destruction of corporeal property, including loss of use thereof.  
2. **Limit of Liability.** The Company shall be liable only for the limit of liability stated in Item 3 of the Declarations, in excess of the limit of liability stated in the applicable aggregate limit of liability of the underlying insurance policy or policies all as stated in the declarations of this policy. The limit of the liability stated in the declarations as applicable to "each occurrence" shall be the total limit of the Company's liability for all damages sustained as the result of any one occurrence, provided, however, in the event of reduction or exhaustion of the applicable aggregate limit or limits of liability under said underlying policy or policies solely by reason of losses paid thereunder on account of occurrences during this policy period, this (Continued on Page Two)

**COUNTERSIGNATURE DATE**  
6/19/87 1B  
**COUNTERSIGNATURE OF AUTHORIZED AGENT**

**BLANKET EXCESS LIABILITY POLICY (FOLLOWING FORM) 5902—2-72**  
BRANCH COPY

**POLUTION COVERAGE NOT PROVIDED**