It Pays to Lease special offering

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1 Marketing Announcement March 8, 2005 Modification: It Pays to Lease special offering Overview The It Pays to Lease special offering has been modified. Effective March 8, 2005, Cisco have been added to the list of Eligible products. All other terms and conditions remain unchanged. This announcement supersedes United States Marketing Announcement , dated January 18, 2005, and Canadian Announcement A , dated January 18, The following revised announcement includes the above change. The offer If you acquire eligible new IBM xseries, pseries, iseries, TotalStorage, PC, IntelliStation, Printer, Cisco, or Retail Store Systems products by signing an IBM Global Financing Fair Market Value (FMV) Lease for a transaction ranging in size from $1,000 USD ($1,000 CAD) to $1 million USD ($1 million CAD), with a lease term of 24 to 48 months (up to 60 months for Retail Store Systems products), you can receive a rebate equal to 5% of the eligible products amount financed. This offering is available to credit-qualified commercial customers in the United States, and all eligible credit-qualified customers in Canada. Eligible customers must employ a minimum of 25 company employees in order to participate. For a list of eligible products, refer to the Qualifying/Eligible products section. Start and/or end dates Signed and accepted IBM Global Financing (IGF) leasing Certificates of Acceptance or lease contracts with Deemed Acceptance for the eligible product must have a Payment Commencement Date of on or after March 8, Completed and signed rebate request forms, along with the specified documentation, as applicable, must be received at the IBM Redemption Center no later than 90 calendar days after the Payment Commencement Date. Information about this offering can be obtained through ibm.com by visiting the following Web site: offerings/paystolease.html This offering is available only in: Where is it available? the United States (including Puerto Rico) Canada This offering is not available in Caribbean North countries. For ordering, contact: Your IBM representative, an IBM Business Partner, or the Americas Call Centers at 800-IBM-CALL Reference: YE001 This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM United States IBM is a registered trademark of International Business Machines Corporation

2 Offering benefits Unlike buying, leasing turns large upfront costs into affordable monthly payments. It provides unmatched flexibility, and protects you from technology obsolescence. At the end of your contract, you have the option of extending your payments on a monthly basis, renewing your lease, buying the hardware outright at fair market value, or simply returning the hardware to us. In addition, if the product qualifies, you can reduce your total cost of ownership even further by taking advantage of 2005 Low Rate Financing from IBM Global Financing, with favorable rates for the duration of your contract. Eligible products Qualifying/Eligible products Machine Part Description type Model Feature number xseries servers and options ALL ALL ALL ALL pseries servers ALL ALL ALL iseries servers ALL ALL ALL TotalStorage products ALL ALL ALL ALL and options PC products and options ALL ALL ALL ALL IntelliStations and options ALL ALL ALL ALL Printer products ALL ALL ALL ALL Cisco products* ALL ALL ALL ALL Retail Store Systems ALL ALL ALL ALL products * listed at Additional information/conditions This offering is available direct from IBM or through IBM-authorized Business Partners. For more information, contact your IGF representative, or visit the IBM Global Financing Web site at: offerings/paystolease.html To receive a rebate, the completed and signed rebate request form (see attached), along with the specified documentation, as applicable, must be received by the IBM Redemption Center no later than 90 calendar days after the Payment Commencement Date. IBM reserves the right to modify or withdraw this offering at any time. This offering is subject to the terms and conditions of any applicable Agreements. Can this offer be combined? This offering can be combined with 2005 Low Rate Financing for the eligible products. Contact your IBM Global Financing representative to determine if this offering can be combined with any other IGF offerings. Business Partner information IBM Distributors, Direct resellers, and Indirect resellers may link directly to Business Partner information for the corresponding Business Partner offer. Due to participation eligibility, Business Partners may not be able to view every offer. PartnerWorld ID and password required (use IBM ID). BP Announcement Letter mem/sla5.jsp?num= Order now United States To order, contact the Americas Call Centers, your local IBM representative, or your IBM Business Partner. To identify your local IBM representative or IBM Business Partner, call 800-IBM-4YOU ( )

3 Phone: 800-IBM-CALL ( ) Fax: 800-2IBM-FAX ( ) Internet: ibm Mail: IBM Americas Call Centers Dept: IBM CALL, 11th Floor 105 Moatfield Drive North York, Ontario Canada M3B 3R1 Reference: YE001 The Americas Call Centers, our national direct marketing organization, can add your name to the mailing list for catalogs of IBM products. Canada To order, contact the Americas Call Centers, your local IBM representative, or your IBM Business Partner. To identify your local IBM representative or your IBM Business Partner, call 800-IBM-4YOU ( ). Phone: 800-IBM-CALL ( ) Fax: Internet: Mail: IBM Americas Call Centers Dept: IBM CALL, 11th Floor 105 Moatfield Drive North York, Ontario Canada M3B 3R1 The Americas Call Centers, our national direct marketing organization, can add your name to the mailing list for catalogs of IBM products. Trademarks iseries is a trademark of International Business Machines Corporation in the United States or other countries or both. The e-business logo, pseries, xseries, IntelliStation, and TotalStorage are registered trademarks of International Business Machines Corporation in the United States or other countries or both. Other company, product, and service names may be trademarks or service marks of others

4 Rebate request form ( ) It Pays to Lease special offering The offer To qualify for a rebate equal to 5% of the eligible products amount financed, you must have acquired eligible new IBM xseries, pseries, iseries, TotalStorage, PC, IntelliStation, Printer, Cisco, or Retail Store Systems products by signing an IBM Global Financing Fair Market Value (FMV) Lease for a transaction ranging in size from $1,000 USD ($1,000 CAD) to $1 million USD ($1 million CAD), with a lease term of 24 to 48 months (up to 60 months for Retail Store Systems products. This offering is available to credit-qualified commercial customers in the United States, and all eligible credit-qualified customers in Canada. Eligible customers must employ a minimum of 25 company employees in order to participate. Qualifying/Eligible products Eligible products Machine Part Description type Model Feature number xseries servers and options ALL ALL ALL ALL pseries servers ALL ALL ALL iseries servers ALL ALL ALL TotalStorage products ALL ALL ALL ALL and options PC products and options ALL ALL ALL ALL IntelliStations and options ALL ALL ALL ALL Printer products ALL ALL ALL ALL Cisco products* ALL ALL ALL ALL Retail Store Systems ALL ALL ALL ALL products * listed at Terms and conditions 1. The rebate is valid only for signed and accepted IGF leasing Certificates of Acceptance or lease contracts with Deemed Acceptance, with a Payment Commencement Date of on or after March 8, In order for the IBM Redemption Center to verify the eligible products have been leased under the applicable lease agreements that meet the terms and conditions of this offering, you must either: list all eligible products, including machine type, model, part number, serial number and amount financed in the Eligible products acquired section of this rebate request form, or send a copy of the Certificate of Acceptance or lease contract with Deemed Acceptance, which must include all machine types and serial numbers, to the IBM Redemption Center in lieu of completing the Eligible products acquired section of this form. All other sections of the rebate form must be completed. The name and company appearing on this form must match the information provided on any documentation submitted. 3. To qualify for the rebate, this signed rebate request form, along with the specified documentation, as applicable, must be received no later than 90 calendar days after the Payment Commencement Date at: IBM Corporation Redemption Center 5th Floor Lakeside Building 4111 Northside Parkway Atlanta, GA Attn: It Pays to Lease special offering Fax: incent@us.ibm.com Phone: , option 1, extension The IBM Redemption Center will confirm receipt of your rebate request. If you do not receive this confirmation within one week of submission or you need to communicate with the IBM Redemption Center, send an and reference It Pays to Lease special offering in the subject line. 5. Any rebate request forms lost or misdirected by the Postal Service or other delivery service are not the responsibility of IBM or the IBM Redemption Center. 6. Allow six to eight weeks from the time IBM receives your complete and accurate documentation for your rebate check/cheque to arrive. 7. This offering is void wherever prohibited or restricted by law

5 8. IBM reserves the right to modify or withdraw this offering at any time. Complete the following information Eligible products acquired Machine Part Serial Amount type Model number number financed Total amount financed: $ Rebate amount requested: $ Contact information Name (print clearly): Company (if appropriate): Address: Mailing address (if different): City: State/Province: Zip/Postal code: address: Daytime phone: Business Partner name (if applicable): At your option, your rebate check/cheque can be made payable to someone else, such as, an Authorized IBM Business Partner. Provide the appropriate information below. If you choose this option, you still must sign this form in order for the rebate to be processed. Make check/cheque payable to: Contact name: Daytime phone: Address: City: State/Province: Zip/Postal code: Certification I certify by my signature that I am in compliance with the terms and conditions of this rebate offer, and that all of the information I have entered on this rebate request form is accurate, complete, and in accordance with the rebate request instructions. Signature: Date: Name (please print): Title and Company name: