# ENDORSEMENT #0017

**THIS ENDORSEMENT, EFFECTIVE 12:01 A.M. MAY 21, 1993**

**FORMS A PART OF POLICY NO. BE 308-61-20**

**ISSUED TO:** INTERNATIONAL BUSINESS MACHINES CORPORATION

**BY:** NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.

## EMPLOYEE BENEFITS LIABILITY ENDORSEMENT

**IT IS AGREED THAT THE POLICY IS AMENDED TO INCLUDE THE FOLLOWING:**

### I. EMPLOYEE BENEFITS LIABILITY:

THE COMPANY WILL INDEMNIFY THE INSURED FOR ULTIMATE NET LOSS WHICH THE INSURED SHALL BECOME LEGALLY OBLIGATED TO PAY, IN EXCESS OF THE APPLICABLE LIMIT OF UNDERLYING EMPLOYEE BENEFIT LIABILITY POLICY DESCRIBED HEREON, ON ACCOUNT OF ANY CLAIM MADE AGAINST THE INSURED AND CAUSED BY NEGLIGENT ACT, ERROR OR OMISSION OF THE INSURED OR ANY OTHER PERSON FOR WHOSE ACTS THE INSURED IS LEGALLY LIABLE IN THE ADMINISTRATION OF THE INSURED'S EMPLOYEE BENEFIT PROGRAMS AS DEFINED HEREIN.

### II. DEFINITIONS

**(A) "EMPLOYEE BENEFIT PROGRAMS"**

THE TERM "EMPLOYEE BENEFIT PROGRAM" SHALL MEAN GROUP LIFE INSURANCE, GROUP ACCIDENT OR HEALTH INSURANCE, PENSION PLANS, EMPLOYEE STOCK SUBSCRIPTION PLANS, WORKER'S COMPENSATION, UNEMPLOYMENT INSURANCE, SOCIAL SECURITY AND DISABILITY BENEFITS.

**(B) "ADMINISTRATION"**

THE UNQUALIFIED WORD "ADMINISTRATION," WHEREVER USED SHALL ONLY MEAN:

(1) GIVING COUNSEL TO EMPLOYEES WITH RESPECT TO EMPLOYEE BENEFIT PROGRAMS;
(2) INTERPRETING EMPLOYEE BENEFIT PROGRAMS;
(3) HANDLING OF RECORDS IN CONNECTION WITH EMPLOYEE BENEFIT PROGRAMS;
(4) EFFECTING ENROLLMENT OF EMPLOYEES UNDER EMPLOYEE BENEFIT PROGRAMS;

PROVIDED ALL SUCH ACTS ARE AUTHORIZED BY THE NAMED INSURED.

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**AUTHORIZED REPRESENTATIVE**

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**INSURED'S COPY**