# ENDORSEMENT #1

This endorsement, effective 12:01 A.M. 05/21/96 forms a part of

Policy no. RMGL 017-90-97 issued to International Business Machines Corporation

By National Union Fire Insurance Company of Pittsburgh, PA.

## COMPOSITE RATING PLAN PREMIUM ENDORSEMENT

It is agreed that the premium for the policy to which this endorsement is attached shall be computed upon a composite basis in accordance with the Company's rules, rates, rating plans, premium and minimum premiums and the other terms of the policy.

When used as a premium basis:

### COMMERCIAL GENERAL LIABILITY INSURANCE

Rates and Premiums for the first $5,000,000

| Estimated Sales | Composite Rate Per 1000 Of Sales | Total Estimated Annual Premium | Deposit Premium |
|-----------------|----------------------------------|---------------------------------|-----------------|
| 33,714,450,000  | BI FLAT                          | BI FLAT                         | BI PD           |
|                 | PD INCL.                         | PD INCL.                        | $300,000        |

Total Premium: $300,000

**AUTHORIZED REPRESENTATIVE**

Date Issued: 09/10/96