Julius R. Phillilps and Marcia G. Phillips - Page 5

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          employment was terminated after the expiration of the ITO II                
          program.  Petitioner perceived Andersen's recommendation as a               
          form of ultimatum.  Out of concern that he would be terminated              
          without further benefits, petitioner agreed to participate in the           
          ITO II program.                                                             
               As a condition of receiving the lump-sum payment and                   
          benefits pursuant to the ITO II program, petitioner was required            
          to sign a General Release and Covenant Not to Sue (the release).            
          Petitioner signed the release on July 31, 1992.  The release is             
          broadly written and covers any and all possible and potential               
          claims in contract or in tort arising from employment or                    
          termination of employment, including any claims against IBM                 
          arising under the Americans with Disabilities Act.  Americans               
          with Disabilities Act of 1990 (ADA), Pub. L. 101-336, sec. 2, 104           
          Stat. 328 (current version at 42 U.S.C. sec. 12101 (1994)); Civil           
          Rights Act of 1991, Pub. L. 102-166, sec. 102, 105 Stat. 1072               
          (current version at 42 U.S.C. sec. 1981a (1994)).  Pertinent                
          sections of the release read as follows:                                    
                    In exchange for the sums and benefits which you                   
               will receive pursuant to the terms of the * * * [ITO-II                
               Program], J. Ray Phillips[2] (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 also agree                  

          2    The name J. Ray Phillips was typewritten in a blank space              
          provided in the release.                                                    




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