Q4 Storage Channel Incentives – Storage Hardware Solution(s) Earning Opportunity What Qualifies Status Flash Sales Focus (Trade IN, FIE) box bonus (vouchers) Flash Win prizes for Flash sales into FIE new & competitive customers and for the Trade-In of “old iron” Flash Flash FS900, A9000 & V9000 sales into new customers Active Flash Cup “Winter edition” 2016 Attend the Winter Flash Study Tour for regular sales of Flash products Sales of Flash FS900, A9000 & V9000 Flash (Specialty BP) Accelerator Extra 5% rebate for FIE Flash sales (10% for FIE via ‘new’ Specialty BP’s) All FIE Flash transactions via Storage Specialty BP’s (only) Storage New BP Bonus All Storage, Flash & Storwize multiplier Additional 2% rebate to VADs for sales through new BPs (increased 4% for Flash & V5000) Storage revenue from new BP’s – Flash revenue attracts multiplier Storage Energyzer Flash, Storwize Additional 3% discount on “stretch” transactions (ValueSeller) 30 nominated stretch deals per IMT per Qtr IBM Storage “FLAPE” program ​Flash, Tape Additional discount of 3% off list price off FlashSystems and Tape products IBM FlashSystem products sold together with an eligible IBM Tape Library under Value seller terms Storwize and LTO7 Trade-In Storwize $750, $500 or $250 Amazon vouchers (or equivalent ) for eligible sales Trade-in of old IBM and non-IBM storage products for V5000 & V7000 incl. Versastack Storwize sales and for LTO7 sales Announced and active11th October VersaStack Sales incentive Versastack 5% additional discount off list price Storwize or FlashSystem V9K sold as a VersaStack Solution with a CISCO UCS server. Active – now includes new V5x00 models Storwize SSD “3 for 2” promotion Storwize SSD – ZWEP6266 Free (100% discount applied) to 3rd same SSD Flash drive when sold on eligible Storwize boxes – valueseller Sales of IBM Storwize  product , together with a minimum of 3 Flash (SSD) drives Storwize SSD – ZWEP6344A Free (100% discount applied) to 3rd same SSD Flash drive when sold - Special Bid terms only Sales of IBM Storwize Flash (SSD) drives - no maximum number, minimum of 15 SSDs All Flash Demo Rebate program All Flash Offers additional 5% rebate for sales of all Flash into new customer when eligible Flash [DDE] box used to win. Sales of all Flash products into new Flash customers NEW NEW Refer to PartnerWorld and relevant PLET for full details, inclusions, exclusions and terms & conditions

Q4 Storage Channel Incentives – storage software Solution(s) Earning Opportunity What Qualifies Status New/activated BP - rebate Spectrum Storage SW VADs can earn 12% rebate on eligible license revenue Spectrum Storage License rev within Enterprise non select/Commercial from new BP Active Spectrum Storage Competitive All Spectrum Offers competitive discount levels up to 85% (Spectrum Protect Suite) discount (on end customer price) All Customers with competitive Storage Products installed – VAD driven play Spectrum Storage VAD – Stretch Incentive Spectrum Storage Products VADs can earn up to 5% Rebate on nominated& won Stretch deals in 4q Spectrum Storage products as per Partnumber List – VAD incentive In preparation – to be announced Spectrum Storage Suite – Seed Price Promo Spectrum Storage Suite Offers a discount level of up to 85% of PA entitled band for 50TB – Spectrum Suite (on end customer price) Customers who don’t have existing Spectrum Storage Products installed – VAD driven play Active – July 12 Refer to PartnerWorld and relevant PLET for full details, inclusions, exclusions and terms & conditions