# Employee Benefits Liability Endorsement

## Policy Information
- **Policy Number:** HDO G24931407
- **Endorsement Number:** 7
- **Named Insured:** International Business Machines Corporation
- **Policy Symbol:** HDO
- **Policy Number:** G24931407
- **Policy Period:** 05/21/2009 to 05/21/2010
- **Effective Date of Endorsement:** [Not specified]
- **Issued By (Name of Insurance Company):** ACE American Insurance Company

## Important Notice
**THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.**

This endorsement modifies insurance provided under the following:
- **Commercial General Liability Coverage Form**

## This Endorsement Provides Claims-Made Coverage

### Limits of Insurance
- **Each Claim Limit:** $15,000,000
- **Aggregate Limit:** $15,000,000
- **Retroactive Date:** 5/21/2009
- **Deductible Amount:** $15,000,000

(If no entry appears above, the information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)

## Insuring Agreement

We will pay under this endorsement those sums that the insured becomes legally obligated to pay as damages because of a claim or "suit" brought by any employee, former employee, or their beneficiaries or legal representatives in connection with any negligent error, omission, or breach of duty in the "administration" of your "employee benefits" programs.

We will have the right and the duty to defend any "suit" seeking those damages. But:

- The amount we will pay for damages is limited as described in the Schedule as Limits of Insurance;
- We may investigate and settle any claim or "suit" at our discretion, and
- Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements under this endorsement.

This insurance applies to negligent errors, omissions, breaches of duty, or misstatements only if a claim for damages is first made against any insured during the policy period or any Extended Reporting Period we provide under the paragraph titled Extended Reporting Period.

This insurance does not apply to negligent errors, omissions, breaches of duty, or misstatements which occurred before the Retroactive Date shown above, or which occur after the end of the policy period.

## Who Is An Insured

With respect to this endorsement, Section II – Who Is An Insured is modified to include employees only while authorized to act in the "administration" or your "employee benefits" programs.

## Exclusions

Insurance under this endorsement does not apply to any claim or "suit" arising out of:
- any dishonest, fraudulent, criminal or malicious act;
- any "Bodily Injury," "Personal Injury," "Advertising Injury," or "Property Damage";
- any claim for failure of performance of contract by any Insurer;

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**LD-9863a (10/95) Printed in U.S.A.**