**(The Attaching Clause need be completed only when this endorsement is issued subsequent to preparation of the policy.)**

GU 207
(6-78)

**ENDORSEMENT 3**

This endorsement, effective on May 21, 1996 at 12:01 A.M. standard time, forms a part of Policy No. NEA 0109021 of the Reliance Insurance Company

Issued to International Business Machines Corp., Etal

**NEW YORK COMMERCIAL EXCESS LIABILITY POLICY**

**CANCELLATION AND TERMINATION PROVISIONS**

5. material change in the nature or extent of the risk, such change occurring after the issuance or after the last annual renewal or anniversary date of the policy, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time the policy was issued or last renewed.

6. a determination by the Superintendent of Insurance that continuation of the present premium volume of the Company would jeopardize the Company's solvency or be hazardous to the interest of the Company's policyholders, creditors, or the public;

7. a determination by the Superintendent of Insurance that the continuation of the policy would violate or place the Company in violation of any provision of the Insurance Law; or

8. revocation or suspension of the Named Insured's license to practice his/her profession or, if the named insured is a hospital, it no longer possesses a valid operating certificate under section twenty-eight hundred one-a of the Public Health Law.

2. Cancellation of Policies in Effect for More than Sixty (60) Days.

If this policy has been in effect for more than sixty (60) days or if this policy is a renewal or continuation of a policy issued by the Company, this policy may be canceled by the Company only for any of the reasons listed in paragraph D.1.h. above provided a written notice stating the reason for cancellation is mailed or delivered to the Named Insured at the address shown in Item II. of the Declarations of this policy and to the Named Insured's authorized agent or broker at least fifteen (15) days before the effective date of cancellation.

**Page 2 of 4**

GU 207 (6-78)