# ENDORSEMENT # 0017

This endorsement, effective 12:01 A.M. 05/21/90 forms a part of POLICY NO. 194-50-64 ISSUED TO INTERNATIONAL BUSINESS MACHINES CORP. by AMERICAN HOME ASSURANCE COMPANY

## EMPLOYEE BENEFITS LIABILITY ENDORSEMENT

IT IS AGREED THAT THIS POLICY IS AMENDED TO INCLUDE THE FOLLOWING:

### 1. EMPLOYEE BENEFITS LIABILITY:
THE COMPANY WILL INDEMNIFY THE INSURED FOR ULTIMATE NET LOSS WHICH THE INSURED SHALL BECOME LEGALLY OBLIGATED TO PAY, IN EXCESS OF THE APPLICABLE LIMIT OF LIABILITY OF THE UNDERLYING EMPLOYEE BENEFIT LIABILITY POLICY DESCRIBED IN THE SCHEDULE OF UNDERLYING INSURANCE, ON ACCOUNT OF ANY CLAIM MADE AGAINST THE INSURED AND CAUSED BY NEGLIGENT ACT, ERROR OMISSION OF THE INSURED OR ANY OTHER PERSON FOR WHOSE ACTS THE INSURED IS LEGALLY LIABLE IN THE ADMINISTRATION OF THE INSURED'S EMPLOYEE BENEFIT PROGRAM AS DEFINED HEREIN.

### 11. DEFINITIONS:

**(a) "EMPLOYEE BENEFIT PROGRAMS":** THE TERM "EMPLOYEE BENEFIT PROGRAM" SHALL MEAN GROUP LIFE INSURANCE, GROUP ACCIDENT OR HEALTH INSURANCE, PENSION PLANS, EMPLOYEE STOCK SUBSCRIPTION PLANS, WORKMEN'S COMPENSATION, UNEMPLOYMENT INSURANCE, SOCIAL SECURITY AND DISABILITY BENEFITS AND ANY OTHER SIMILAR BENEFIT PROGRAM.

**(b) "ADMINISTRATION":** THE UNQUALIFIED WORD "ADMINISTRATION", WHEREVER USED MEANS

**(1) GIVING COUNSEL TO EMPLOYEES WITH RESPECT TO EMPLOYEE BENEFIT PROGRAMS;**

**(2) INTERPRETING EMPLOYEE BENEFIT PROGRAMS;**

**(3) HANDLING OF RECORDS IN CONNECTION WITH EMPLOYEE BENEFIT PROGRAMS;**

**(4) EFFECTING ENROLLMENT IN CONNECTION WITH EMPLOYEE BENEFIT PROGRAMS;**

PROVIDED ALL SUCH ACTS ARE AUTHORIZED BY THE NAMED INSURED.

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AUTHORIZED REPRESENTATIVE

Z 008669