Correspondence to D. Evangelista

October 10, 1994

Mr. D. A. Evangelista
Sr. Vice President & General Counsel
IBM Corporation
Old Orchard Road
Armonk, New York 10504

Subject: IBM Suggestion Plan

Dear Mr. Evangelista:

In good faith, I have been trying to obtain valid suggestion evaluations in accordance with the provisions of the IBM Suggestion Plan and Manager’s Manual (reference: 02-24 dated 5/30/86) in effect at the time the suggestions were submitted. Rather than unnecessarily creating a make-work exercise for a lot of people, I asked the IBM Suggestion Department (all levels through Mr. George Krawiec) to contact me directly if its investigation of my suggestions led it to conclude anything other than what I have continued to state concerning the incomplete evaluations. To this date, the IBM Suggestion Department has yet to contact me to discuss any of my suggestions. The IBM Suggestion Department has spent more time and effort writing me rejection letters than with making a good faith attempt to discuss its understanding of the evaluations in an effort to bring these suggestions to a mutually agreeable close.

Suggestion #921420144 is but one of many of my suggestions that is representative of the IBM Suggestion Department’s failure and refusal to have my suggestions evaluated and administered in accordance with the provisions of the IBM Suggestion Plan in effect at the time the suggestions were submitted. The Suggestion Department contends that this suggestion is predated and, therefore, ineligible for an award. I have provided the Suggestion Department with a significant volume of documentation that clearly supports that there is no predate and, therefore, I am eligible for an award under the provisions of the IBM Suggestion Plan. The IBM Suggestion Department continues to reject my award eligibility on the basis of the "predate" (in error) and requests for a verbal discussion of the rejection.

Please note that the above suggestion (along with many of my other suggestions) has been implemented. The IBM Suggestion Department’s number one reason for rejecting my suggestions is that they are predated and, therefore, ineligible for an award. When I pressed the IBM Suggestion Department for documentation to support a predate of this suggestion (and several of the other rejected suggestions), they indicated that they could not provide any since the documentation does not exist. Does this seem like the suggestion was administered and evaluated in accordance with the provisions of the IBM Suggestion Plan?

Due to the IBM Suggestion Department’s refusal to administer my suggestions in accordance with the terms of the IBM Suggestion Plan, I was left with no other alternative but to consult with legal counsel. My attorney advised me that once I signed the IBM suggestion form, a unilateral contract incorporating the provisions of the IBM Suggestion Plan was formed. And with the resulting contract, IBM has an obligation to evaluate the suggestion in "good faith and with fair dealing" in accordance with the provisions of the IBM Suggestion Plan. File documentation of my suggestions will clearly support that the IBM Suggestion Department failed to consistently meet its contractual administration and evaluation obligations set forth in the IBM Suggestion Plan.

Given my legal basis for claim against IBM, is it really necessary for me to take legal action to get IBM to do what it is already contractually required to do? Don’t we both have much better ways to spend our time and money than to pursue a legal remedy to this situation? All I have ever asked for from day one is that my suggestions be properly administered and evaluated in accordance with the provisions of the IBM Suggestion Plan.

As a result of the above, I would appreciate you investigating this matter and getting back to me in writing with your findings within fifteen (15) business days from the date of this letter. Should your findings lead you to conclude anything other than what I state in this letter or in the suggestion files, I would appreciate you contacting me directly for additional information or to discuss any discrepancies you may have before closing the investigation.

Thank you for your assistance.

Very truly yours,

Keith S. Gibby