# Zurich-American Insurance Group

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

### M. PAYMENT OF FEES, PREMIUMS AND DEPOSITS
Payments are due on or before the installment dates stated in the Information Pages of this Agreement.

### N. CONTINGENCIES
In the event that the Company incurs unforeseen obligations or liabilities as the result of the issuance of policies subject to this Agreement, such as, but not limited to:
1. Premium Taxes,
2. Residual Market Subsidies, or
3. Except as a result of negligence on the Company’s part, administrative, regulatory, statutory or court ordered expenses, assessments, taxes, fines or penalties.

The Self-Insurer shall pay to the Company, within ten (10) days of receipt of demand therefore, all sums as hereinbefore described.

### O. RIGHT OF OFFSET
The Company and the Self-Insurer may offset any balance(s) due from one to the other under the terms of this Agreement.