# Zurich-American Insurance Group

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

### 3. Prior to termination of this Agreement:
The Company shall provide Risk Management Information Service, including but not limited to hard copy loss statements.

Upon termination of this Agreement, except as stipulated in Section I. of this Agreement, no obligation exists to provide the Self-Insurer with such service.

### K. PAID LOSS BILLINGS
For each policy period subject to this Agreement, the Company shall issue Paid Loss Billings on the basis described and computed as stated in the Information Pages of this Agreement. Within ten (10) days of receipt thereof, the Self-Insurer shall reimburse the Company for Paid Loss Billings.

For each policy period subject to this Agreement, Paid Loss Billings shall continue until:

1. The Company determines and establishes that all claims for that policy period are closed and final; or
2. The termination of this Agreement. Upon termination all outstanding liabilities of the Self-Insurer under this Agreement become due and payable within ten (10) days, as stated in Section I. of this Agreement;

whichever shall first occur.

### L. LOSS FUND
1. **Minimum Loss Fund Deposit:**
   For each policy period subject to this Agreement, the Minimum Loss Fund Deposit is as stated in the Information Pages of this Agreement and is due and payable as stated therein. This Loss Fund Deposit is held by the Company in anticipation of payments for losses and Allocated Claim Expenses prior to reimbursement by the Self-Insurer, through Paid Loss Billings payments. The Loss Fund Deposit Amount is established and determined by the Company, and its adequacy determined based upon whether or not the amount is sufficient to cover the ongoing payments prior to reimbursement obtained in the form of Paid Loss Billing payments.

2. **Adjustment of Loss Fund:**
   For each policy period subject to this Agreement, the Loss Fund Deposit shall be adjusted as follows:

IBM 063081

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