# Zurich-American Insurance Group

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

## COMPROMISE LETTER OF CREDIT FORM
**(Name of Bank)**
**(Address)**

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**FOR INTERNAL IDENTIFICATION PURPOSES ONLY**

- **Our No.**
- **Other**
- **Accountholder/Applicant**
- **(Reinsurer)**
- **Beneficiary's State of Domicile**

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**Issue Date**

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**Irrevocable Clean Letter of Credit No.**

**To Beneficiary: (Name) + (Address)**

We have established this clean, irrevocable, and unconditional Letter of Credit in your favor as Beneficiary for drawings up to U.S. $ effective immediately. This Letter of Credit is issued, presentable and payable at our office at (issuing bank address) and expires with our close of business on . Except when the amount of this Letter of Credit is increased, this Credit cannot be modified or revoked without your consent.

The term "Beneficiary" includes any successor by operation of law of the named Beneficiary including without limitation any liquidator, rehabilitator, receiver or conservator. Drawings by any liquidator, rehabilitator, receiver or conservator shall be for the benefit of all of the Beneficiary’s policyholders.

We hereby undertake to promptly honor your sight draft(s) drawn on us, indicating our Credit No. , for all or any part of this Credit upon presentation of your draft drawn on us at our office specified in paragraph one on or before the expiration date hereof or any automatically extended expiry date.

Except as expressly stated herein, this undertaking is not subject to any agreement, requirement or qualification. The obligation of (issuing bank) under this Credit is the individual obligation of (issuing bank) and is in no way contingent upon reimbursement with respect thereto, or upon our ability to perfect any lien, security interest or any other reimbursement.

IBM 063065

**Form DUDA Edition 4 (12/89)**
**25-Mar-91**