Jesse F. Webb - Page 4

                            BEFORE YOU SIGN THIS RELEASE                              


          If you feel that you are being coerced to sign this release or              
          that your signing would for any reason not be voluntary, or you             
          believe the process by which you have been offered this release             
          or the payment in exchange for this release is discriminatory,              
          [footnote discussing various types of unlawful discrimination               
          omitted] you are encouraged to discuss this with your management            
          or Personnel before signing this release. After reviewing the               
          release with your attorney, you can discuss concerns you have               
          with your manager or your attorney can contact legal counsel at             
          your location. You should thoroughly review and understand the              
          effects of the release before signing it.                                   
          In exchange for the sums and benefits which you will receive                
          pursuant to the terms of the [ITO II Program], Jesse Webb[']                
          (hereinafter "you") agrees to release [IBM] from all claims,                
          demands, actions or liabilities you may have against IBM of                 
          whatever kind, including but not limited to those which are                 
          related to your employment with IBM or the termination of that              
          employment. You agree that this also releases from liability                
          IBM's agents, directors, officers, employees, representatives,              
          successors and assigns (hereinafter "those associated with IBM").           
          * * * You also agree that this release covers, but is not limited           
          to, claims arising from the Age Discrimination in Employment Act            
          of 1967, as amended, Title VII of the Civil Rights Act of 1964,             
          as amended, and any other federal or state law dealing with                 
          discrimination in employment on the basis of sex, race, national            
          origin, religion, disability, or age. You also agree that this              
          release includes claims based on theories of contract or tort,              
          whether based on common law or otherwise. This release does not             
          include your vested rights, if any, in the IBM Retirement Plan,             
          which survive unaffected by this release.                                   
          3. This release does not waive any claims that you may have                 
          which arise after the date you sign this release.                           


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          * * * * * * *                                                               
               6.In the event of rehire by IBM or any of its                          
               subsidiaries as a regular employee, you understand that                
               IBM reserves the right to require repayment of a                       
               prorated portion of the ITO II Program payment. The                    





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