IBM INTERNATIONAL ASSIGNMENT PROGRAM

MAIL DROP PROCEDURES

In order to facilitate the timely resolution of U.S. federal, state and local tax authority matters
(including receipt of tax refund checks), which may arise while you are covered by IBM's
International Assignment Tax Program ("Program"), IBM has implemented a "mail drop" system to
be used by the company's international assignees. The mail drop, a post office box in North
Castle, New York, will be used as the mailing address on all U.S. federal, state and local income
tax returns prepared by Ernst & Young (E & Y) for all individuals covered by the Program.

CONSENT TO USE OF MAIL DROP

By virtue of my participation in the Program, I (and my spouse, if applicable) hereby consent to

the terms and conditions of the mail drop process as outlined below.

I understand that my consent to these procedures does not authorize IBM or E & Y to undertake
any actions with respect to tax authority correspondence other than those enumerated below.

 IBM's International Assignment (I/A) staff will collect all tax authority correspondence
addressed to me from the mail drop, on a daily basis, and sort it between general
communications and communications which are believed to transmit refund checks.

 With respect to REFUND CHECKS, the IBM Mail Drop Desk will open any envelopes which
appear to contain U.S. tax refunds, IBM is authorized to deposit, without endorsement, the
refund checks to my tax advance account.

 All other correspondence from the taxing authorities will either be sent for payment
(dependent on amount) or to E & Y for further analysis and applicable action for my U.S. tax
compliance.

 E & Y will open each item of correspondence which has been forwarded by IBM, to ascertain
the tax year to which it relates (the year is generally indicated at the top of the cover sheet
which accompanies the correspondence)

 If the correspondence relates to an assignment year, the envelope will be opened, the
correspondence read, and appropriate action initiated by E & Y. E & Y will advise me of any
action that I must take in response to the tax authority correspondence.

 If the correspondence relates to a tax year not related to the assignment, either E & Y or IBM
will send the correspondence to me.

It is acknowledged that in all other regards, the rights and obligations of E & Y under the Program,
including E & Y's responsibilities with respect to tax authority correspondence
addressed to me, including communications which are received through the mail drop, are set
forth in my international assignment letter.

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MAIL DROP PROCEDURES (continued)

I, the undersigned, hereby agree to the terms and conditions of the use of the mail drop as
described above.

I (WE) agree:

_________________________________ ____________ _________________

Assignee Surname, First Name (print) U.S. Serial Date

____________________
Assignee's Signature

____________________
Spouse's Name(print)

____________________
Spouse's Signature