# STARR EXCESS Liability Insurance International Limited

**Endorsement No:** 2 [FFOC]

**This endorsement, effective:** May 21, 1998 (at 12:01 A.M. prevailing time at the address of the Named Insured as shown in item 1(b) of the Declarations)

**forms a part of Policy No:** 400000

**Issued to:** International Business Machines Corporation

**by:** Starr Excess Liability Insurance International Limited

## ARBITRATION AND CHOICE OF LAW ENDORSEMENT

In consideration of the premium charged, it is hereby agreed that the following are added to this Policy, notwithstanding anything to the contrary in the Followed Policy:

### 1. ARBITRATION

Any and all disputes arising under or relating to this Policy, including its formation and validity, and whether between the Insurer and the Insured or any person or entity deriving rights through or asserting rights on behalf of the Insured, shall be finally and fully determined in London, England under the provisions of the Arbitration Acts of 1950, 1975, 1979 and 1996, and any statutory modifications or amendments thereto, by a Board composed of three arbitrators to be selected for each controversy as follows:

Either party to the dispute, once a claim or demand on its part has been denied or remains unsatisfied for a period of twenty (20) calendar days by the other party, may notify the other party in writing of its desire to arbitrate the matter in dispute and at the time of such notification the party desiring arbitration shall notify the other party of the name of the arbitrator selected by it. The other party who has been so notified shall within thirty (30) calendar days thereafter select an arbitrator and notify the party desiring arbitration of the name of such second arbitrator. If the party notified of a desire for arbitration shall fail or refuse to nominate the second arbitrator within thirty (30) calendar days following the receipt of such notification, the party who first served notice of a desire to arbitrate will, within an additional period of thirty (30) calendar days, apply to the High Court of Justice of England and Wales for the appointment of the second arbitrator and in such a case the arbitrator appointed by such Court shall be deemed to have been nominated by the party who failed to select the second arbitrator. The two arbitrators, chosen as above provided, shall within thirty (30) calendar days after the appointment of the second arbitrator choose a third arbitrator. Upon acceptance of the appointment by said third arbitrator, the Arbitration Board for the controversy in question shall be deemed fixed.

**Date of Issuance – January 7, 1999**

FFOC 401.01 IMB 2

1 of 3