Document options. 1 of 5 1/17/ :12 AM. > > > Announcement letters xseries and storage. Printable version

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1 > > > Announcement letters xseries and storage Document options Printable version IBM Storage 2006 Reseller new customer incentive Announcement Letter Number IBM dated January 17, 2006 US - Last Revised on January 17, 2006 Brief Description of Announcement, Charges, and Availability OVERVIEW The offer Eligible IBM Business Partners can receive incentive payments for EDI or Web-based reported sales of eligible new IBM storage products, once y have reached a minimum sales revenue target of at least $25,000 during 2006 calendar year, to an End User* who is an IBM-approved new customer. The value of reported sales is defined as total IBM Bid Index Price of eligible products sold to End User on date of sale to End User (End-User invoice date). The amount of incentive payment will range from $1,000 to $100,000, depending upon value of reported sales. Refer to Additional information/conditions section for incentive payment details. IBM Business Partners must purchase eligible new products from IBM or an authorized IBM U.S. Distributor. * as defined in IBM Business Partner Agreement For a list of eligible products, refer to Qualifying/Eligible products section. Start and/or end dates End-User invoices/bills of sale must have a date of on or after January 1, 2006, but no later than December 31, EDI or Web-based sales transaction reporting must be received by IBM no later than January 31, Who is eligible? The following IBM Business Partners are eligible for this incentive: o IBM Business Partner-Resellers IBM Business Partner -- Distributors are responsible for making ir IBM Business Partner -- Resellers aware of this incentive. Where is it available? This incentive is available only in United States and its territories. 1 of 5 1/17/ :12 AM

2 Customer Letter Section MARKETING INFORMATION Financing may be available. Refer to IBM Global Financing Web site at: // QUALIFYING/ELIGIBLE PRODUCTS Eligible products For a list of part-numbered** products that are eligible for participation in this incentive, refer to following Web site: // (R) o From PartnerWorld home page, select a country/region and click on "Sign in" to enter your IBM ID. o Click "More" under Product shortcuts, click "BP Library" under Product shortcuts on next screen, and xseries (R) Library. o Click on "IBM Storage 2006 Reseller new customer incentive eligible product list." ** Only products designated with a part number are eligible for participation in this incentive. Machine type/model designations listed on this Web site are for cross-reference purposes only. ADDITIONAL INFORMATION/CONDITIONS IBM Business Partners who sell directly to End Users are eligible to receive incentive payments under this incentive. Products acquired for Business Partner internal use or for demonstration or development use do not qualify for payments under terms of this incentive. Business Partners should refer to IBM eserver (R) xseries 2006 Business Partner new customer incentive for applicability to ir storage and xseries sales. IBM reserves right to audit data supplied by eligible IBM Business Partners, and is sole determiner of any payments due. IBM reserves right to modify or withdraw this incentive at any time. This incentive is subject to terms and conditions of any applicable Agreements. IBM-approved new customer eligibility IBM defines a new customer as an End User Enterprise that has purchased less than $25,000 of IBM storage products within a defined product category from any authorized source in 12-month period prior to date Business Partner nominates End User for IBM approval as a new customer in The defined product categories are: o DS4000 o Ultrium tape products An End User may qualify as a new customer in one or both product categories. If an End User qualifies in only one product category, only reported sales within that category will be counted towards attainment of 2006 sales revenue target. 2 of 5 1/17/ :12 AM

3 If an End User qualifies as a new customer for both product categories, reported sales within both categories will be totaled, and counted toger towards attainment of 2006 sales revenue target. End Users who were nominated and approved by IBM as new customers in 2005 are also eligible to be nominated and approved as new customers in 2006 as long as y did not reach a total sales revenue target of $100,000 in In order to be approved as a new customer in 2006, se End Users must be nominated for approval in 2006 program no later than January 31, Sales revenue reported for 2005 will not count towards 2006 targets. End Users who were nominated and approved by IBM as new customers in 2005, who also reached a total sales revenue target of $100,000 or more in 2005, are not eligible for approval as new customers in 2006 program, even if y purchase less than $25,000 of eligible new IBM storage products within a defined product category from any source in 12-month period prior to date Business Partner nominates End User for IBM approval in 2006 program. IBM will be sole determiner of an End User's qualification as a new customer. Once a new customer is IBM-approved for participation in this incentive, ir approval is valid through December 31, Customer nomination process Business Partners must nominate new customers by accessing following Web site: // The nomination form will prompt Business Partner to include all required information. Only qualifying sales to IBM-approved new customers will be eligible to qualify for incentive payments under terms and conditions of this incentive. If approved, eligible End-User sales must occur after nomination date and Business Partner's IBM sales reporting and invoices should reflect customer name exactly as Business Partner nominated it in eir Bill To or Ship To sections. Sales Transaction incentive payment schedule Once a new customer is IBM-approved, reported sales in 2006 will qualify for following incentive payments. The value of reported sales is defined as total IBM Bid Index Price of eligible products sold to End User on date of sale to End User (End-User invoice date). TOTAL NEW CUSTOMER INCREMENTAL TOTAL SALES INCENTIVE INCENTIVE REVENUE TARGET PAYMENT PAYMENT 3 of 5 1/17/ :12 AM

4 $ 25,000 $ 1,000 $ 1,000 $ 50,000 $ 1,000 $ 2,000 $ 100,000 $ 2,000 $ 4,000 $ 250,000 $ 6,000 $ 10,000 $ 500,000 $10,000 $ 20,000 $ 750,000 $10,000 $ 30,000 $1,000,000 $10,000 $ 40,000 $1,500,000 $20,000 $ 60,000 $2,000,000 $20,000 $ 80,000 $2,500,000 $20,000 $100,000 Business Partners are eligible to receive an incentive payment when y meet each of defined revenue targets for 2006 total sales of eligible new storage products within qualifying product categories to an IBM-approved new customer. Maximum total incentive payments per new customer will be $100,000. Upon verification that reported sales transactions meet terms and conditions of this incentive, IBM Promotional Support Center will issue a check to eligible IBM Business Partner's headquarters location. Business Partners should allow approximately 4-6 weeks for ir incentive payment checks to arrive. Sales transaction reporting All qualifying sales must be reported via EDI or Web-based reporting facility no later than January 31, Transshipment of product between Resellers does not qualify as a sale to an End User, and should not be reported as such under terms and conditions of this incentive. Accruals and payments for this incentive will be reflected in your monthly ProPlan 2006 statement. IBM will debit any account for returns or adjustments to reported sales. For questions pertaining to your statement, contact IBM Promotional Support Center at Any inquiries related to differences between Business Partner reported sales transactions and IBM's verified sales must be documented, in writing, by Business Partner to IBM within 90 days of accrual period, or claims to any unpaid incentive payments will be forfeited. Inquiries may be faxed to Business Partners are responsible for ensuring accuracy of ir sales reporting. IBM reserves right to request furr data for reconciliation, and will withhold payments subject to validation of data, or recover monies already paid based upon changes to previously submitted data. Ordering information Follow normal ordering procedures for this incentive. Can this offer be combined? This incentive cannot be combined with IBM Storage of 5 1/17/ :12 AM

5 Systems Business Partner new customer incentive. Need help? Questions pertaining to this incentive should be directed to PartnerWorld Services at or IBM Sales Solution Center at 800-IBM-PCPC ( ), option #2. Trademarks PartnerWorld, xseries, and eserver are registered trademarks of International Business Machines Corporation in United States or or countries or both. Or company, product, and service names may be trademarks or service marks of ors. 5 of 5 1/17/ :12 AM