Julius R. Phillilps and Marcia G. Phillips - Page 6

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               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.                              
               *    *         *         *    *         *       *                      

               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              
                    amount of repayment will be based on the number of                
                    weeks off the IBM payroll compared with the number of             
                    weeks' salary used to calculate your payment.                     
               At the time of signing the release petitioner had no legal             
          claims pending against IBM for unlawful employment practices.3              
          Petitioner, however, thought that he had a claim against IBM                
          pursuant to the ADA for compensatory and punitive damages, as               
          well as damages for emotional distress, as a result of its                  
          alleged discriminatory treatment of him.                                    
               In exchange for signing the release and participating in the           
          ITO II Program, petitioner received a $94,174 lump-sum payment              
          (the payment or ITO payment).  The payment amount for each                  



          3    Although petitioner did not file any legal claims against              
          IBM prior to signing the release, he did make verbal complaints             
          to Andersen, his supervisor, at a meeting which took place on May           
          20, 1992.                                                                   




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