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, , the charge paid by you
for the individual Machine that is the subject of the claim. For purposes of this item, the term
"Machine" includes Machine Code and Licensed Internal Code ("LIC").
Arbitration: The following is added under this heading :
Disputes arising out of or in connection with this Statement of Limited Warranty shall be finally settled
by arbitration which shall be held in Bangalore, India in accordance with the laws of India then in effect.
The arbitration award shall be final and binding for the parties without appeal and shall be in writing
and set forth the findings of fact and the conclusions of law.
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 who shall act as
chairman of the proceedings. Vacancies in the post of chairman shall be filled by the president of the Bar
Council of India. 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.
All proceedings shall be conducted, including all documents presented in such proceedings, in the
English language. The English language version of this Statement of Limited Warranty prevails over any
other language version.
JAPAN
Governing Law: The following sentence is added to this section:
Any doubts concerning this Statement of Limited Warranty will be initially resolved between us in good
faith and in accordance with the principle of mutual trust.
MALAYSIA
Limitation of Liability: The word "SPECIAL" in item 3 of the fifth paragraph is deleted.
NEW ZEALAND
What this Warranty Covers: 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.
PEOPLE'S REPUBLIC OF CHINA (PRC)
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, United States of America (except when local law requires otherwise).
PHILIPPINES
E-6
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