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Enhancements to Passport Advantage

Effective May 23, 2005

IBM is pleased to announce some important enhancements to the Passport Advantage program. These enhancements are designed to expand the license offerings available under the program and make it easier to keep your licenses and Software Maintenance in continuous effect so you can benefit from your licenses and Software Maintenance entitlements without a break in coverage.

Summary of the enhancements

Introduction of Fixed Term License. Fixed Term License (FTL) adds a new periodic license offering for selected products to Passport Advantage. This new license offering grants the right to use the software, including Software Maintenance, for a fixed period of time. At the end of the Fixed Term License period the license and its associated Software Maintenance will be automatically extended for another period and you will be billed for that new period unless you notify us prior to the end of the term of your intent to terminate the license. If you choose to terminate, you will no longer be authorized to use the software and you will lose your entitlement to Software Maintenance for it.

Automatic renewal of Software Maintenance coverage. For all licenses with Software Maintenance coverage, renewal will become automatic. Automatic renewal of your Software Maintenance comes into effect on your first Anniversary after the effective date of this notice, May 23rd, 2005. We will continue to send you Software Maintenance renewal quotes before your Passport Advantage Anniversary. However, if we do not receive the renewal payment from you or your Business Partner before your Anniversary, your Software Maintenance coverage will be renewed and you will be billed for that renewal unless you have notified us prior to the Anniversary of your intent to terminate Software Maintenance coverage.

Some countries will not deploy automatic renewal invoicing as described above - please refer to the Country Unique Terms section of the IBM International Passport Advantage Agreement for specific exclusions.

Please refer to the following Frequently Asked Questions (FAQs) and Program Change presentation for more information.