# Zurich-American Insurance Group

## DEDUCTIBLE AGREEMENT
**SELF-INSURER:** IBM CORPORATION

### C. COMPANY RETENTION
The Company agrees, in the event that and to the extent that it provides insurance written to be excess of the Deductible Amounts, subject to the coverages, exclusions, terms, conditions and endorsements of the policies listed in the Information Pages of this Agreement, to retain losses exceeding those within the Deductible Amounts up to the Limits of Liability stated in the Information Pages for the policies included in this Agreement.

### D. COVERAGE EXCESS OF THE AGGREGATE DEDUCTIBLE AMOUNT - BUSINESS AUTO LIABILITY ONLY
Coverage Excess of the Aggregate Deductible Amount does not attach until actual payments have exhausted the Aggregate Deductible Amount.

The Company’s Limit of Liability for payment of damages and Allocated Claim Expense within the Each Occurrence/Each Accident Deductible Amount once payments have exhausted the Aggregate Deductible Amount is as stated in the Information Summary Pages.

The Company’s Limit of Liability includes Allocated Claim Expense and is an Absolute Amount of Coverage.

Exhaustion of the Company’s Excess Coverage shall be computed by the Company as follows once payments exceed the Aggregate Deductible Amount:

The Limit of Liability, minus the sum of:
1. Payments for all damages within the Each Occurrence/Each Accident Deductible Amounts, and
2. Payments for Allocated Claim Expense associated with payments for damages in 1., less the pro rata share of such Allocated Claim Expense if payable under policies of insurance issued to be excess of the Each Occurrence/Each Accident Deductible Amounts.

Once the Excess Coverage Limit of Liability has been exhausted, the Company has no obligation to make further payments of any type under this Agreement or under any of the policies subject to this Agreement. All further payments are the responsibility of the Self-Insurer.