# Zurich-American Insurance Group

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

This Letter of Credit is deemed to be automatically extended without amendment for one (1) year from the expiration date or any future expiration date, unless thirty (30) days prior to such expiration date, we notify you by Registered Mail that this Letter of Credit will not be renewed for any such additional period.

This Letter of Credit is subject to and governed by the laws of the State of New York and the 1983 Revision of the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce (Publication No. 400) and in the event of any conflict the Laws of the State of New York will control. If this Credit expires during an interruption of business as described in Article 19 of said Publication 400, the bank hereby specifically agrees to effect payment if this Credit is drawn against within thirty (30) days after the resumption of business.

Very truly yours,

IBM 063066

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