IBM 10K3791 Governing LAW, Americas Brazil, North America, Canada, United States, India, Japan

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other contract or tort claim), except for any liability that cannot be waived or limited by applicable laws, IBM is liable for no more than

1.damages for bodily injury (including death) and damage to real property and tangible personal property; and

2.the amount of any other actual direct damages, up to the charges (if recurring, 12 months’ charges apply) for the Machine that is subject of the claim. For purposes of this item, the term “Machine” includes Machine Code and Licensed Internal Code.

This limit also applies to IBM’s suppliers and your reseller. It is the maximum for which IBM, its suppliers, and your reseller are collectively responsible.

UNDER NO CIRCUMSTANCES IS IBM LIABLE FOR ANY OF THE FOLLOWING: 1) THIRD-PARTY CLAIMS AGAINST YOU FOR DAMAGES (OTHER THAN THOSE UNDER THE FIRST ITEM LISTED ABOVE); 2) LOSS OF, OR DAMAGE TO, YOUR RECORDS OR DATA; OR 3) SPECIAL, INCIDENTAL, OR INDIRECT DAMAGES OR FOR ANY ECONOMIC CONSEQUENTIAL DAMAGES, LOST PROFITS OR LOST SAVINGS, EVEN IF IBM, ITS SUPPLIERS OR YOUR RESELLER IS INFORMED OF THEIR POSSIBILITY. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU.

GOVERNING LAW

Both you and IBM consent to the application of the laws of the country in which you acquired the Machine to govern, interpret, and enforce all of your and IBM s rights, duties, and obligations arising from, or relating in any manner to, the subject matter of this Agreement, without regard to conflict of law principles.

Part 2 - Country-unique Terms

AMERICAS

BRAZIL

Governing Law: The following is added after the first sentence: Any litigation arising from this Agreement will be settled exclusively by the court of Rio de Janeiro.

NORTH AMERICA

Warranty Service: The following is added to this Section: To obtain warranty service from IBM in Canada or the United States, call 1-800-IBM-SERV(426-7378).

CANADA

Governing Law: The following replaces “laws of the country in which you acquired the Machine” in the first sentence:

laws in the Province of Ontario.

UNITED STATES

Governing Law: The following replaces “laws of the country in which you acquired the Machine” in the first sentence:

laws of the State of New York.

ASIA PACIFIC

AUSTRALIA

The IBM Warranty for Machines: The following paragraph is added to

this Section:The warranties specified in this Section are in addition to any rights you may have under the Trade Practices Act 1974 or other similar legislation and are only limited to the extent permitted by the applicable legislation.

Limitation of Liability: The following is added to this Section: Where IBM is in breach of a condition or warranty implied by the Trade Practices Act 1974 or other similar legislation, IBM’s liability is limited to the repair or replacement of the goods or the supply of equivalent goods. Where that condition or warranty relates to right to sell, quiet possession or clear title, or the goods are of a kind ordinarily acquired for personal, domestic or

household use or consumption, then none of the limitations in this paragraph apply.

Governing Law: The following replaces “laws of the country in which you acquired the Machine” in the first sentence:

laws of the State or Territory.

CAMBODIA, LAOS, AND VIETNAM

Governing Law: The following replaces “laws of the country in which you acquired the Machine” in the first sentence:

laws of the State of New York.

The following is added to this Section:

Disputes and differences arising out of or in connection with this Agreement shall be finally settled by arbitration which shall be held in Singapore in accordance with the rules of the International Chamber of Commerce (ICC). The arbitrator or arbitrators designated in conformity with those rules shall have the power to rule on their own competence and on the validity of the Agreement to submit to arbitration. The arbitration award shall be final and binding for the parties without appeal and the arbitral award shall be in writing and set forth the findings of fact and the conclusions of law.

All proceedings shall be conducted, including all documents presented in such proceedings, in the English language. The number of arbitrators shall be three, with each side to the dispute being entitled to appoint one arbitrator.

The two arbitrators appointed by the parties shall appoint a third arbitrator before proceeding upon the reference. The third arbitrator shall act as chairman of the proceedings. Vacancies in the post of chairman shall be filled by the president of the ICC. Other vacancies shall be filled by the respective nominating party. Proceedings shall continue from the stage they were at when the vacancy occurred.

If one of the parties refuses or otherwise fails to appoint an arbitrator within 30 days of the date the other party appoints its, the first appointed arbitrator shall be the sole arbitrator, provided that the arbitrator was validly and properly appointed.

The English language version of this Agreement prevails over any other language version.

HONG KONG AND MACAU

Governing Law: The following replaces “laws of the country in which you acquired the Machine” in the first sentence:

laws of Hong Kong Special Administrative Region

INDIA

Limitation of Liability: The following replaces items 1 and 2 of this Section:

1.liability for bodily injury (including death) or damage to real property and tangible personal property will be limited to that c a used by IBM’s negligence;

2.as to any other actual damage arising in any situation involving nonperformance by IBM pursuant to, or in any way related to the subject of this Statement of Limited Warranty, IBM s liability will be limited to the charge paid by you for the individual Machine that is the subject of the claim.

JAPAN

Governing Law: The following sentence is added to this Section:

Any doubts concerning this Agreement will be initially resolved between us in good faith and in accordance with the principle of mutual trust.

NEW ZEALAND

The IBM Warranty for Machines: The following paragraph is added to this Section:

The warranties specified in this Section are in addition to any rights you may have under the Consumer Guarantees Act 1993 or other legislation which cannot be excluded or limited. The Consumer Guarantees Act 1993 will not apply in respect of any goods which IBM provides, if you require the goods for the purposes of a business as defined in that Act. Limitation of Liability: The following is added to this Section:

Where Machines are not acquired for the purposes of a business as defined in the Consumer Guarantees Act 1993, the limitations in this Section are subject to the limitations in that Act.

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Contents Options Warranty Period One YearWarranties of ANY Kind Canada Governing LAWAmericas Brazil North AmericaEgypt PEOPLE’S Republic of China PRCEUROPE, Middle EAST, Africa Emea Following Terms Apply to the Country SpecifiedFollowing item is added to this paragraph ItalySouth AFRICA, NAMIBIA, BOTSWANA, Lesotho and Swaziland United Kingdom