**ZURICH-AMERICAN INSURANCE GROUP**
BOX 4037
SCHAUMBURG, ILLINOIS, 60194
(312)843-6000

**JULY 6, 1987**
**#50-515**

**JOHNSON & HIGGINS**
125 BROAD STREET
NEW YORK, NY 10004

**ATTN: CLAUDE RICK ADAMS**

**RE: I.B.M. CORPORATION**
**POLICY: #CGL 3278678-03, 5/87 & 6/87 INSTALLMENTS**

**DEAR CLAUD;**

WE ARE IN RECEIPT OF YOUR CHECK #04734995 IN PAYMENT OF THE 5/87 AND 6/87 INSTALLMENTS OF I.B.M.

IN REVIEWING THIS REMITTANCE I HAVE DISCOVERED THE INSTALLMENTS FOR THE ABOVE MENTIONED CGL POLICY WERE PAID AT A 40.2% COMMISSION RATE ON BOTH THE "S" AND "E" PREMIUM. OUR RECORDS SHOW THE "E" PREMIUM IS BILLED AT 0% COMMISSION FOR THIS POLICY.

IN VIEW OF THE ABOVE, WE MUST REQUEST YOUR SPECIAL CHECK IN THE AMOUNT OF $33,502.68 SO THAT WE MAY RECONCILE THIS ACCOUNT. PLEASE CORRECT ALL FUTURE INSTALLMENT PAYMENTS TO CORRECTLY REFLECT COMMISSIONS ON "E" PREMIUM AS 0%.

YOUR ANTICIPATED COOPERATION IN RESOLVING THIS IS GREATLY APPRECIATED.

**SINCERELY,**

**SANDY DUFFY**
**SPECIAL RISK SPECIALIST**

**ZURICH INSURANCE COMPANY/AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY**
F10054
MM 009818