Warranty Service: The following is added to this Section: During the warranty period, transportation for delivery of the failing Machine to IBM will be at IBM’s expense.

Production Status: The following paragraph replaces this Section: Each Machine is newly manufactured. It may incorporate in addition to new parts, re-used parts as well.

Limitation of Liability: The following is added to this Section: The limitations and exclusions specified in the Statement of Warranty will not apply to damages caused by IBM with fraud or gross negligence and for express warranty.

In item 2, replace U.S. $100,000with "EUR 500,000."

The following sentence is added to the end of the first paragraph of item 2: IBM’s liability under this item is limited to the violation of essential contractual terms in cases of ordinary negligence.

IRELAND: Extent of Warranty: The following is added to this Section: Except as expressly provided in these terms and conditions, all statutory conditions, including all warranties implied, but without prejudice to the generality of the foregoing all warranties implied by the Sale of Goods Act 1893 or the Sale of Goods and Supply of Services Act 1980 are hereby excluded.

Limitation of Liability: The following replaces items one and two of the first

paragraph of this Section: 1. death or personal injury or physical damage to your real property solely caused by IBM’s negligence; and 2. the amount of any other actual direct damages, up to the greater of EUR 500,000 or

125 percent of the charges (if recurring, the 12 months’ charges apply) for the Machine that is the subject of the claim or which otherwise gives rise to the claim.

Applicability of suppliers and resellers (unchanged).

The following paragraph is added at the end of this Section: IBM’s entire liability and your sole remedy, whether in contract or in tort, in respect of any default shall be limited to damages.

ITALY: Limitation of Liability: The following replaces the second sentence in

the first paragraph: In each such instance unless otherwise provided by

mandatory law, IBM is liable for no more than: (item 1 unchanged) 2) as to any other actual damage arising in all situations involving non-performance by IBM pursuant to, or in any way related to the subject matter of this Statement of Warranty, IBM’s liability, will be limited to the total amount you paid for the Machine that is the subject of the claim.

Appendix D. Product warranties and notices

D-11

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