1. System x, IntelliStation, and BladeCenter System Storage © 2007 IBM Corporation System x and Storage Programs and Promotions Summary January 21, 2007

2. System x, IntelliStation, and BladeCenter and System Storage © 2003 IBM Corporation | © 2007 IBM Corporation ProgramDescriptionStatus SMB New Customer Bonus Program $500 to $5,000 payments potentially totaling $12,250 for SMB New Customer sales of System x, PWS, and Blades. 5% payment at $10K and $25K revenue. 4% at $50K and $100K revenue. 2% at $250K and $500K revenue. 2006 SMB new customers who did not achieve $100K must be renominated and requalified by 3/31 to be eligible in 2007 Year Pgm - IBM 07-032 FIE Chassis OfferingIncentive payments up to $4K on selected chassis products on sales into new Blade Center Chassis customers. Roll from 2006. Year Pgm - IBM 06-477 x460 / System x 3950 and MXE New Customer Business Partner Payment for the sale of x460 / System x 3950 or with an MXE Modular Expansion Enclosure to a pre-qualified new x460/System x 3950 customer. $2,500 for x460 / System x 3950 or $7,500 rebate for x460 / System x 3950 with MXE enclosure on same invoice. Roll from 2006. Year Pgm - IBM 06-485 System x + PWS Premier Partner Incentive.5% on growth +.75% on options multiplier (1.26 AR) for sales of System x, Blades, & IntelliStations. Quarterly targets equal 15% uplift of previous year’s end user reported sales for the same quarter. Minimum target 125K. Growth and AR targets can be earned separately. Year Pgm - IBM 07-034 Blade + BladeCenter Solution Provider 3% base + 3% on quarterly growth targets for sales of Blades and BladeCenter Chassis. 300K annual sales target of Blade product. Technical competency and demo unit required. Quarterly targets equal 40% uplift of previous year’s end user reported sales for the same quarter Year Pgm - IBM 07-033 System x Express Seller Business Partner incentive 2% incentive payment on Express Model Sales after $5K in sales of the eligible productsYear Pgm - IBM 07-030 Sell More BlueFast path bid process that BPs can utilize in competitive pricing situations. Provides BPs with a simple process that allows them to obtain discounted pricing for competitive opportunities by contacting their Distributor. Effective February 12, 2007, IBM will no longer accept Special Bid requests for transactions of $50K and smaller. Year Pgm - IBM 07-024 Technology Access Program (TAP) Discounts from the IBM web price for internal use, demonstration or development purposes. Discounts up to 40% on 2 Servers then 20% on the next 10. The number of options allowable per configuration is 8. Year Pgm - IBM 07-026 BP Power Play System x, BladeCenter, and IntelliStation 2007 Business Partner incentive.25% on all System x sales after $40K target is achieved. Additional 3% on selected System x storage. Additional 3% on eligible software. Member and Advanced level BPs earn additional 1.25% incentive for January and February year to date end user EDI reported sales of eligible product. Reference announcement letter for list of excluded parts. Year Pgm - IBM 07-044 Over…

3. System x, IntelliStation, and BladeCenter and System Storage © 2003 IBM Corporation | © 2007 IBM Corporation ProgramDescriptionStatus Channel Evaluation Program for Business Partners Pre-sale program on System x, PWS, System x - Storage, and Blades. Maximum 90 day eval period. Number of evals managed by a ticket system. Eval tickets released on a quarterly basis, each Business Partner Enterprise will be eligible to receive two sales rewards tickets at the close of the first, second and third quarters if at least 75% of their year-to-date evals have resulted in a sale to an End User. Incentive payments (15%-30%) will be equal to a percentage of the regular published IBM Web price of the product, on the date the product was approved for evaluation. Sale must be reported on the program Web site no later than 5 business days beyond the End date of the approved channel evaluation period. There will be no automatic extensions in 2007. All eligible products approved for a 90-day channel evaluation will be assessed a 10% return fee if the product is returned to IBM. Year Pgm - IBM 06-512 2007 version announced 2006 Limited Time Promotions System x Express server January Kick Start Rebates from $57 to $733 for EDI or Web-based reported sales of selected eligible new System x Express servers to End Users. Rebate varies depending on model sold Eligible products Part Rebate Description number amount IntelliStation (R) A Pro 621741U $647 IntelliStation A Pro 621761U 733 System x3550 797861U 183 System x3550 797871U 141 System x3650 79793AU 152 System x3650 797971U 57 System x3850 8863E8U 510 System x3850 8863E9U 360 January 18 – February 12 IBM 07-031

4. System x, IntelliStation, and BladeCenter System Storage © 2007 IBM Corporation System Storage Programs and Promotions Summary January 21, 2007

5. System x, IntelliStation, and BladeCenter and System Storage © 2003 IBM Corporation | © 2007 IBM Corporation ProgramDescriptionStatus IBM System Storage 2007 First-in-Enterprise/SMB Reseller Incentive Eligible IBM Business Partners can receive an incentive payment for one qualifying EDI or web- based reported sale of eligible new* IBM storage product(s) in a storage product category to an End User, as defined in the IBM Business Partner Agreement, who is an IBM-approved First-in- Enterprise (FIE) End User for that storage product category. Additional incentive to be paid when End User also qualifies as SMB. Incentive payment based on percentage of IBM Bid- Index price. Eligible Products: Part number ordered DS4000, LTO, SAN & Express Models Year Pgm - IBM 07-009 IBM Storage Express Seller 2007 Business Partner Incentive Earn a 2% rebate on sales of all storage express models, once meeting minimum revenue clip level. Based on EDI web-based reported sales. Eligible Products: Storage express models listed in announcement letter. Year Pgm - IBM 07-003 IBM System x & System Storage Technology Access Program NEW!! Offers all PartnerWorld (R) IBM Business Partners the ability to purchase xSeries (R) servers, BladeCenter (R) products, IntelliStation (R) workstations, xSeries storage, TotalStorage (R) products, JS20 Blades, and options at discounts from the IBM web price for internal use, demonstration or development purposes. Eligible Products: Part number ordered DS4000 Year Pgm - IBM 07-026 IBM low-end Storage 2007 Business Partner Incentive Eligible IBM Business Partners who are approved to remarket IBM storage products can receive a quarterly incentive payment if they meet a minimum quarterly EDI or Web-based reported End-User sales revenue target for eligible new IBM System Storage DS4000, low-end SAN, and low-end Tape products. Eligible Products: Partnumber ordered DS4000, LTO, SAN, Expres Models Year Pgm - IBM 07-008

6. System x, IntelliStation, and BladeCenter and System Storage © 2003 IBM Corporation | © 2007 IBM Corporation ProgramDescriptionStatus Limited Time Promotions