Modification: IBM Power Systems trade-in program

Announcement Letter Number 312-024

February 21, 2012

Corrected on March 20, 2012.

A description has been changed in the Replacement Machines section.

Effective February 21, 2012, the IBM® Power Systems™ trade-in program has been modified.

The following changes are being made with this announcement:

All other terms and conditions remain unchanged.

This announcement supersedes Announcement Letter 311-078, dated June 7, 2011.

Value proposition

This offer can be used as an incentive to motivate a customer to replace old IBM or Competitive Server Technology with newer IBM servers.

The offer

If you acquire an eligible new IBM Power Systems server (Replacement Machine) and trade in one or more designated IBM and/or non-IBM systems (Replaced Machines), you can receive a trade-in credit for each Replaced Machine you trade in.

There is a maximum total trade-in credit amount per Replacement Machine that is dependent upon the configuration of the Replacement Machine.

The amount of the trade-in credit for each Replaced Machine represents a combination of the Fair Market Value (FMV) of the Replaced Machine and an additional incentive.

The number of Replaced Machines that can be traded in per eligible new Replacement Machine is limited by the maximum trade-in credit amount of the Replacement Machine. Once the maximum trade-in credit amount has been reached, additional machines will not be accepted for trade-in.

For a list of Replacement and Replaced Machines, and applicable trade-in credits, refer to the Qualifying/Eligible products section.

Start and/or end dates

In order to qualify, IBM records must show IBM Replaced Machine(s) (if applicable) as installed in a customer location within your Enterprise as of February 20, 2012.

The Date of Installation of the eligible new Replacement Machine, as defined in the IBM Customer Agreement, must occur on or after February 21, 2012.

Contracts required for the trade-in of the Replaced Machine(s) must be received by IBM on or before the Date of Installation of the eligible new Replacement Machine.

IBM must be contacted to schedule pickup of IBM Replaced Machine(s) no later than nine (9) months following the Date of Installation of the eligible new Replacement Machine.

Bills of lading (proof of shipment) for non-IBM Replaced Machine(s) shipped to the company identified on the "IGF OEM trade-in return form" must be dated no later than nine (9) months following the Date of Installation of the eligible new Replacement Machine.

Where is it available?

This program is available only in the United States and its territories.

Qualifying/Eligible products

Replacement Machine

PS700 POWER7™         8406    70Y     8405        4        $   250
 3.0 GHz (4-way)                     -or-
                                     8405        2
                                     and
                                     8406        2

PS701 POWER7 8406 71Y 8411 8 250 3.0 GHz (8-way) -or- 8411 4 and 8412 4

PS702 POWER7 8406 71Y 8411 16 500 3.0 GHz (16-way) -or- 8411 8 and 8412 8

PS703 POWER7 7891 73X 8408 16 750 2.4 GHz (16-way) -or- 8408 8 and 8415 8

PS704 POWER7 7891 74X 8408 32 2,000 2.4 GHz (32-way) -or- 8408 16 and 8415 16

Power 710 Express™ 8231 E1C EPC1 1 500 3.0 GHz (4-way)

Power 710 Express 8231 E1C EPC2 1 750 3.72 GHz (6-way)

Power 710 Express 8231 E1C EPC3 1 1,200 3.55 GHz (8-way)

Power 710 Express 8231 E2B 8350 1 500 3.0 GHz (4-way)

Power 710 Express 8231 E2B 8349 1 750 3.72 GHz (6-way)

Power 710 Express 8231 E2B 8359 1 1,200 3.55 GHz (8-way)

Power 730 Express 8231 E2B 8350 2 750 3.0 GHz (8-way)

Power 730 Express 8231 E2B 8348 2 1,200 3.72 GHz (8-way)

Power 730 Express 8231 E2B 8349 2 1,400 3.72 GHz (12-way)

Power 730 Express 8231 E2B 8359 2 3,000 3.55 GHz (16-way)

Power 730 Express 8231 E2C EPC1 2 750 3.0 GHz (8-way)

Power 730 Express 8231 E2C EPC4 2 1,200 3.72 GHz (8-way)

Power 730 Express 8231 E2C EPC2 2 1,400 3.72 GHz (12-way)

Power 730 Express 8231 E2C EPC3 2 3,000 3.55 GHz (16-way)

Power 720 Express 8202 E4B 8350 1 200 3.0 GHz (4-way)

Power 720 Express 8202 E4B 8351 1 600 3.0 GHz (6-way)

Power 720 Express 8202 E4B 8352 1 1,500 3.0 GHz (8-way)

Power 720 Express 8202 E4C EPC5 1 200 3.0 GHz (4-way)

Power 720 Express 8202 E4C EPC6 1 600 3.0 GHz (6-way)

Power 720 Express 8202 E4C EPC7 1 1,500 3.0 GHz (8-way)

Power 740 Express 8205 E6B 8353 1 500 3.3 GHz (4-way)

Power 740 Express 8205 E6B 8353 2 1,500 3.3 GHz (8-way)

Power 740 Express 8205 E6B 8347 1 1,000 3.72 GHz (4-way)

Power 740 Express 8205 E6B 8354 1 1,500 3.72 GHz (6-way)

Power 740 Express 8205 E6B 8347 2 2,000 3.72 GHz (8-way)

Power 740 Express 8205 E6B 8354 2 2,500 3.72 GHz (12-way)

Power 740 Express 8205 E6B 8355 1 2,500 3.55 GHz (8-way)

Power 740 Express 8205 E6B 8355 2 3,500 3.55 GHz (16-way)

Power 740 Express 8205 E6C EPC9 1 500 3.3 GHz (4-way)

Power 740 Express 8205 E6C EPC9 2 1,500 3.3 GHz (8-way)

Power 740 Express 8205 E6C EPC8 1 1,000 3.72 GHz (4-way)

Power 740 Express 8205 E6C EPCA 1 1,500 3.72 GHz (6-way)

Power 740 Express 8205 E6C EPC8 2 2,000 3.72 GHz (8-way)

Power 740 Express 8205 E6C EPCA 2 2,500 3.72 GHz (12-way)

Power 740 Express 8205 E6C EPCB 1 2,500 3.55 GHz (8-way)

Power 740 Express 8205 E6C EPCB 2 3,500 3.55 GHz (16-way)

Power 750 Express 8233 E8B EPA4 1 3,000 3.2 GHz (8-32 way) 2 5,000 3 7,000 4 10,000

Power 750 Express 8233 E8B EPA1 1 7,000 3.61 GHz (8-32 way) 2 9,000 3 12,000 4 15,000

Power 750 Express 8233 E8B EPA3 1 3,000 3.72 GHz (4-16 way) 2 5,000 3 7,000 4 9,000

Power 750 Express 8233 E8B EPA2 1 4,000 3.72 GHz (6-24 way) 2 7,000 3 10,000 4 12,000

Power 770 POWER7 9117 MMB 5468 4 - 7 750 3.1 GHz (4-64 way) 8 - 15 1,250 16 - 23 4,000 24 - 31 6,000 32 - 39 8,000 40 - 47 10,000 48 - 55 12,000 56 - 63 13,500 64 15,000

Power 770 POWER7 9117 MMB 5459 6 2,000 3.5 GHz (4-64 way) 7 - 11 3,000 12 - 17 4,000 18 - 23 7,000 24 - 29 9,000 30 - 35 12,000 36 - 41 15,000 42 - 47 18,000 48 20,000

Power 770 POWER7 9117 MMC 5334 4 - 7 750 3.3 GHz (4-64 way) 8 - 15 1,250 16 - 23 4,000 24 - 31 6,000 32 - 39 8,000 40 - 47 10,000 48 - 55 12,000 56 - 63 13,500 64 15,000

Power 770 POWER7 9117 MMC 5329 6 2,000 3.72 GHz (6-48 way) 7 - 11 3,000 12 - 17 4,000 18 - 23 7,000 24 - 29 9,000 30 - 35 12,000 36 - 41 15,000 42 - 47 18,000 48 20,000

Power 780 POWER7 9179 MHB 5469 4 - 7 3,000 3.8/4.1 GHz 8 - 15 6,000 (4-64 way) 16 - 23 12,000 24 - 31 16,000 32 - 39 20,000 40 - 47 22,000 48 - 55 30,000 56 - 63 34,000 64 40,000

Power 780 POWER7 9179 MHC 5339 4 - 7 3,000 3.9/4.14 GHz 8 - 15 6,000 (4-64 way) 16 - 23 12,000 24 - 31 16,000 32 - 39 20,000 40 - 47 22,000 48 - 55 30,000 56 - 63 34,000 64 40,000

Power 780 POWER7 9179 MHC EP25 4 - 7 3,000 3.44 GHz (4-96 way) 8 - 15 6,000 16 - 23 9,000 24 - 31 12,000 32 - 39 15,000 40 - 47 18,000 48 - 55 20,000 56 - 63 23,500 64 - 71 27,000 72 - 79 30,000 80 - 87 33,500 88 - 95 37,000 96 40,000

Power 795 9119 FHB 4713 6 - 31 5,000 (4.0/4.25 GHz 32 - 63 10,000 6- to 256-way) 4717 1 & 4713 0 - 31 20,000 or 4713 64 - 95 20,000

4717 1 & 4713 32 - 63 30,000 or 4713 96 - 127 30,000

2 & 4713 0 - 31 40,000 or 4713 128 - 159 40,000

4717 2 & 4713 32 - 63 60,000 or 4713 160 - 191 60,000

4717 3 & 4713 0 - 31 80,000 or 4713 192 - 223 80,000

4717 3 & 4713 32 - 63 100,000 or 4713 224 - 255 100,000

4717 4 or 4713 256 120,000

IBM Replaced Machine(s)

                                  Feature
                                  number
                Machine           (in any        Feature    Trade-in
                type      Model   combination)   quantity   credit

pSeries, System p, and Power servers

p5 505 server   9115      505     ALL            N/A        $   250
p5 510 server   9110      510     ALL            N/A            250
p5 51A server   9110      51A     ALL            N/A            250
p5 520 server   9111      520     ALL            N/A            250
p5 550 server   9113      550     ALL            N/A            500
p5 52A server   9131      52A     ALL            N/A          1,000
p5 55A server   9133      55A     ALL            N/A          2,000
p6 520 server   8203      E4A     ALL            N/A          4,000
p6 550 server   8204      E8A     ALL            N/A          8,000

p650 server 7038 6M2 5122 and/or 1 or 2 2,500 (2- to 8-way) 5208 and/or 3 or 4 5,000 7014 and/or 8050 and/or 8051

p670 server 7040 671 5248 or 1 7,000 (8- or 16-way) 5256 or 2 14,000 7400 or 7401

p690 server 7040 681 5207 or 1 9,500 (8- to 32-way) 5241 or 2 19,000 5242 or 3 25,000 5243 or 4 30,000 5244 or 5245 or 5246 or 5252 or 5254 or 7401 or 7403 or 7404 or 7405 or 7406 or 7407 or 7408 or 7409 or 7431 or 8009 or 8010 or 8012

p690 server 7040 681 5240 and/or 2 9,500 (8- or 16-way 5250 4 15,000 HPC)

p5 560 server 9116 561 7781 1 3,000 (4- to 16-way) 2 5,500 4 7,000

p6 560 Express 8234 EMA 7537 1 3,000 (4- to 16-way) 2 5,000 4 8,000

p5 560 server 9116 561 7295 1 4,000 (4- to 16-way) 2 7,000 4 14,000

p5 570 server 9117 570 7929 and/or 2 3,000 (2- to 8-way 8452 4 5,000 8 10,000

p5 570 server 9117 570 7897 and/or 2 - 4 5,000 (2- to 16-way) 8452 or 5 - 8 10,000 7898 and/or 9 - 11 15,000 8454 or 12 - 15 19,000 7899 and/or 16 22,000 8455 or 7618 or 7665

p6 Power 570 9117 MMA 5403 or 4 - 7 10,000 (4- to 16-way) 5670 or 8 - 11 15,000 3.5/4.2/4.4/ 5672 or 12 - 15 25,000 4.7 GHz 7306 16 30,000

p6 Power 570 9117 MMA 7700 or 4 - 7 12,000 (4- to 32-way) 7719 or 8 - 11 18,000 4.2 DU/5.0 GHz 12 - 15 25,000 16 - 19 35,000 20 - 23 42,000 24 - 27 47,000 28 - 31 52,000 32 60,000

p5 Model 590 9119 590 7925 or 8 - 15 10,000 (8- to 32-way) 7667 16 - 23 15,000 24 - 31 20,000 32 25,000

p5 Model 595 9119 595 7815 or 16 - 23 15,000 (16- to 64-way) 7990 or 24 - 31 20,000 7668 or 32 - 39 25,000 7693 40 - 47 30,000 48 - 55 35,000 56 - 64 40,000

P6 Model 595 9119 FHA 4754 or 16 - 23 20,000 (16- to 64-way) 4755 24 - 31 25,000 32 - 39 30,000 40 - 47 35,000 48 - 55 40,000 56 - 64 45,000

AS/400®, iSeries®, and System i® servers

                9401     150      ALL           N/A          $  250
                940X     170      ALL           N/A             250
                940X     250      ALL           N/A             250
                940X     270      ALL           N/A             250
                940X     800      ALL           N/A             400
                940X     810      ALL           N/A           1,000
                940X     820      ALL           N/A           1,000
                940X     825      ALL           N/A           1,500
                940X     830      ALL           N/A           1,000
                940X     840      ALL           N/A           1,500
                940X     720      ALL           N/A             750
                940X     730      ALL           N/A             750
                940X     740      ALL           N/A           1,000
                940X     600      ALL           N/A             250
                940X     620      ALL           N/A             250
                940X     640      ALL           N/A             300
                940X     650      ALL           N/A             300
                940X     S10      ALL           N/A             250
                940X     S20      ALL           N/A             250
                940X     S30      ALL           N/A             300
                940X     S40      ALL           N/A             300
                940X     520      ALL           N/A             450
                9406     525      ALL           N/A           1,000
                9406     550      ALL           N/A           2,000
                9407     M15      ALL           N/A           2,000
                9407     515      ALL           N/A             500
                9408     M25      ALL           N/A           4,000
                9409     M50      ALL           N/A           8,000

p5 570 server 9406 570 7897 and/or 2 - 4 5,000 (2- to 16-way) 8452 or 5 - 8 10,000 7618 9 - 11 15,000 12 - 15 19,000 16 22,000

p6 Power 570 9406 MMA 5403 or 4 - 7 10,000 (4- to 16-way) 8 - 11 15,000 12 - 15 25,000 16 30,000

p5 Model 595 9406 595 7815 or 16 - 23 15,000 (16- to 64-way) 7925 or 24 - 31 20,000 7668 32 - 39 25,000 40 - 47 30,000 48 - 55 35,000 56 - 64 40,000

Non-IBM Replaced Machine(s)

                                 Minimum
                                 number of      Trade-in
Description                      processors     credit

Dell systems

  PowerEdge 3250/7150/7250        1             $  2,000

Sun Microsystems systems

  Sun Fire V480                   2                2,000
  Sun Fire V480                   4                4,000

Sun Fire V880 4 5,000 Sun Fire V880 8 9,000

Sun Fire E3800 8 10,000

Sun Fire E4800/E4810/E4900 4 7,000 Sun Fire E4800/E4810/E4900 8 10,000 Sun Fire E4800/E4810/E4900 12 13,000

Sun Fire V440 2 2,000 Sun Fire V440 4 4,000

Sun Fire V490/V890 2 6,000 Sun Fire V490/V890 4 9,000 Sun Fire V890 8 12,000

Sun V1280 and Netra 1280 4 6,000 Sun V1280 and Netra 1280 8 9,000 Sun V1280 and Netra 1280 12 12,000

Sun Netra 1290 4 7,000 Sun Netra 1290 8 9,000 Sun Netra 1290 12 13,000

Sun Fire E2900 4 7,000 Sun Fire E2900 8 9,000 Sun Fire E2900 12 13,000

Sun Fire E6800 16 12,000 Sun Fire E6800 24 16,000

Sun Fire E6900 16 15,000 Sun Fire E6900 24 20,000

Sun Fire F12K/F15K 8 8,000 Sun Fire F12K/F15K 16 12,000 Sun Fire F12K/F15K 24 16,000 Sun Fire F12K/F15K 32 20,000 Sun Fire F12K/F15K 40 30,000 Sun Fire F12K/F15K 48 40,000 Sun Fire F15K greater 50,000 than 48

Sun Fire E20K/E25K 8 30,000 Sun Fire E20K/E25K 16 40,000 Sun Fire E20K/E25K 24 60,000

Sun Enterprise M3000 2 4,000 Sun Enterprise M3000 4 6,000

Sun Enterprise M4000 2 4,000 Sun Enterprise M4000 4 6,000 Sun Enterprise M4000 6 8,000 Sun Enterprise M4000 8 10,000 Sun Enterprise M4000 12 14,000 Sun Enterprise M4000 16 20,000

Sun Enterprise M5000 2 4,000 Sun Enterprise M5000 4 6,000 Sun Enterprise M5000 6 8,000 Sun Enterprise M5000 8 10,000 Sun Enterprise M5000 12 14,000 Sun Enterprise M5000 16 20,000 Sun Enterprise M5000 20 25,000 Sun Enterprise M5000 24 30,000 Sun Enterprise M5000 28 35,000 Sun Enterprise M5000 32 40,000

Sun Enterprise M8000 2 4,000 Sun Enterprise M8000 4 8,000 Sun Enterprise M8000 6 10,000 Sun Enterprise M8000 8 12,000 Sun Enterprise M8000 12 16,000 Sun Enterprise M8000 16 20,000 Sun Enterprise M8000 20 24,000 Sun Enterprise M8000 24 30,000 Sun Enterprise M8000 28 34,000 Sun Enterprise M8000 32 40,000 Sun Enterprise M8000 36 45,000 Sun Enterprise M8000 40 50,000 Sun Enterprise M8000 44 55,000 Sun Enterprise M8000 48 65,000 Sun Enterprise M8000 greater 70,000 than 48

Sun Enterprise M9000 4 20,000 Sun Enterprise M9000 8 30,000 Sun Enterprise M9000 16 40,000 Sun Enterprise M9000 24 50,000 Sun Enterprise M9000 32 60,000 Sun Enterprise M9000 40 70,000 Sun Enterprise M9000 48 80,000 Sun Enterprise M9000 56 90,000 Sun Enterprise M9000 64 100,000 Sun Enterprise M9000 greater 110,000 than 64

Fujitsu

  PRIMEQUEST 420                  8                8,000
  PRIMEQUEST 440                 16               15,000
  PRIMEQUEST 480                 32               30,000

PRIMEQUEST 520 16 15,000 PRIMEQUEST 540 32 30,000 PRIMEQUEST 580 64 50,000

PRIMERGY rx1300 1 6,000

PRIMEPOWER 400 2 2,000 PRIMEPOWER 400 4 3,000

PRIMEPOWER 450 2 3,000 PRIMEPOWER 450 4 4,000

PRIMEPOWER 600/800/900 4 6,000 PRIMEPOWER 600/800/900 8 8,000 PRIMEPOWER 800/900 12 10,000 PRIMEPOWER 800/900 16 14,000

PRIMEPOWER 650/850 4 6,000 PRIMEPOWER 650/850 8 8,000 PRIMEPOWER 850 12 12,000 PRIMEPOWER 850 16 18,000

PRIMEPOWER 1000/2000 8 10,000 PRIMEPOWER 1000/2000 12 15,000 PRIMEPOWER 1000/2000 16 20,000 PRIMEPOWER 1000/2000 24 30,000 PRIMEPOWER 1000/2000 32 40,000 PRIMEPOWER 1000/2000 40 50,000 PRIMEPOWER 1000/2000 48 60,000 PRIMEPOWER 1000/2000 56 65,000 PRIMEPOWER 1000/2000 64 75,000 PRIMEPOWER 1000/2000 greater 90,000 than 64

PRIMEPOWER 1500/2500 8 12,000 PRIMEPOWER 1500/2500 12 18,000 PRIMEPOWER 1500/2500 16 25,000 PRIMEPOWER 1500/2500 24 35,000 PRIMEPOWER 1500/2500 32 50,000 PRIMEPOWER 1500/2500 40 65,000 PRIMEPOWER 1500/2500 48 75,000 PRIMEPOWER 1500/2500 greater 95,000 than 48

Hewlett-Packard systems

  HP Server rp5470                1              $ 2,000
  HP Server rp5470                3                4,000

HP Server rp4440 4 4,000 HP Server rp4440 8 6,000

HP Server rp7410 4 6,000 HP Server rp7410 8 8,000

HP 9000 rp8400 4 5,000 HP 9000 rp8400 8 9,000 HP 9000 rp8400 12 13,000 HP 9000 rp8400 16 17,000

HP 9000 rp3440/rp4410/ 2 2,000 Rp54XX HP 9000 rp3440/rp4410/ 4 4,000 rp54XX

HP 9000 rp7400/10/20/40 4 5,000 HP 9000 rp7400/10/20/40 8 9,000 HP 9000 rp7420/40 12 13,000 HP 9000 rp7420/40 16 17,000

HP 9000 rp8420/rp8440 8 8,000 HP 9000 rp8420/rp8440 16 16,000 HP 9000 rp8420/rp8440 24 24,000 HP 9000 rp8420/rp8440 32 32,000

HP Integrity rx1600/1620 1 1,000

HP Integrity rx2600/2620 1 1,000 HP Integrity rx2600/2620 2 2,000

HP Integrity rx2660 1 5,000 HP Integrity rx2660 2 7,000

HP Integrity rx3600 1 6,500 HP Integrity rx3600 2 7,500

HP Integrity rx4610/40 4 4,000 HP Integrity rx4610/40 8 6,000

HP Integrity rx5670 1 2,000

HP Integrity rx6600 1 9,000 HP Integrity rx6600 2 11,000 HP Integrity rx6600 4 12,000

HP Integrity rx7620/7640 4 5,000 HP Integrity rx7620/7640 8 8,000 HP Integrity rx7620/7640 12 15,000 HP Integrity rx7620/7640 16 20,000

HP Integrity rx8620/8640 4 8,000 HP Integrity rx8620/8640 8 12,000 HP Integrity rx8620/8640 12 18,000 HP Integrity rx8620/8640 16 24,000 HP Integrity rx8620/8640 24 30,000 HP Integrity rx8620/8640 32 36,000

HP Integrity rx9610 8 8,000 HP Integrity rx9610 12 13,000 HP Integrity rx9610 16 18,000

HP 9000 Superdome PA-8X00 8 15,000 HP 9000 Superdome PA-8X00 16 25,000 HP 9000 Superdome PA-8X00 24 35,000 HP 9000 Superdome PA-8X00 32 45,000 HP 9000 Superdome PA-8X00 40 55,000 HP 9000 Superdome PA-8X00 48 70,000 HP 9000 Superdome PA-8X00 greater 90,000 than 48

HP Integrity Superdome 8 15,000 Itanium HP Integrity Superdome 16 25,000 Itanium HP Integrity Superdome 24 35,000 Itanium HP Integrity Superdome 32 45,000 Itanium HP Integrity Superdome greater 60,000 Itanium® than 32

HP Integrity SD Itanium 2 8 20,000 90X0 HP Integrity SD Itanium 2 16 35,000 90X0 HP Integrity SD Itanium 2 24 50,000 90X0 HP Integrity SD Itanium 2 32 75,000 90X0 HP Integrity SD Itanium 2 greater 90,000 90X0 than 32

HP AlphaServer ES40 2 2,000 HP AlphaServer ES40 4 4,000

HP AlphaServer 2 3,000 ES45/ES47/ES80 HP AlphaServer 4 5,000 ES45/ES47/ES80 HP AlphaServer ES80 6 7,000 HP AlphaServer ES80 8 9,000

HP AlphaServer GS320/GS1280 8 8,000 HP AlphaServer GS320/GS1280 16 12,000 HP AlphaServer GS320/GS1280 24 20,000 HP AlphaServer GS320/GS1280 32 26,000 HP AlphaServer GS1280 40 35,000 HP AlphaServer GS1280 48 45,000 HP AlphaServer GS1280 greater 60,000 than 48

SGI systems

  Altix 3250/7150/7250            1               10,000

Additional information/conditions

Upon shipment of the Replacement Machine, you will be billed the single unit purchase price less any applicable discounts or allowances for which you qualify. You will receive your trade-in credit(s) after each Replaced Machine has been returned to IBM and/or returned to the company identified on the "IGF OEM trade-in return form", and validated against the information included on the ICA Supplement for Machine(s) Trade-in Transaction (Z125-5459).

Participation in this trade-in program is in lieu of trade-in activity under any other trade-in program.

IBM reserves the right to modify or withdraw this program at any time.

This program is subject to the terms and conditions of any applicable Agreements.

FMV of a Replaced Machine

To determine the FMV of a Replaced Machine, contact your IBM Global Financing (IGF) representative with the configuration details of the Replaced Machine and request an IGF retail quote. You are not required to contact IGF in order to receive the trade-in credit(s) listed in this announcement, nor will the trade-in credits listed in this announcement change based upon any retail quote provided by IGF.

Trade-in of IBM Replaced Machines

Your responsibilities

Have the IBM Replaced Machine(s) installed in a qualifying location within your Enterprise as of February 20, 2012.

Install the Replacement Machine in the same Enterprise where the Replaced Machines were installed within the United States and its territories.

Have clear title to the Replaced Machines, free of any encumbrances, at the time they are picked up by IBM's designated carrier.

The lessee of IBM Replaced Machines financed by IBM Global Financing must purchase the Replaced Machines and pay all related charges before returning them to IBM.

IBM Replaced Machines currently under an Installation Payment Agreement (IPA) or an Installment Payment Master Agreement (IPMA) must be paid for in full before returning them to IBM.

Contact your IBM representative to schedule pickup of IBM Replaced Machines no later than nine (9) months following the Date of Installation of the Replacement Machine. IBM Replaced Machines must be available for pickup by IBM's carrier when you contact your IBM representative.

IBM will not pay for shipping costs if any other means of return is used.

If you are returning more than one IBM Replaced Machine, the machines do not need to be returned to IBM at the same time, as long as they are available for pickup and IBM is contacted to schedule pickup within nine (9) months of the Date of Installation of the Replacement Machine.

Return the IBM Replaced Machines, in the same configuration (machine type, model, and all features) as installed as of February 20, 2012.

Remove any alterations, non-IBM attachments, and data from IBM Replaced Machines. Any IBM service charges incurred in this process or in preparing the machines for pickup are your responsibility.

Disconnect the IBM Replaced Machines before pickup. All associated items such as cables, logic manuals, kickplates, terminators, and power cords should be packed with the Replaced Machines. It is not necessary for IBM Service to pack the machines for shipment. If you request that IBM prepare the machines for shipment, you will be billed for this service.

Ensure that "IBM Power Systems trade-in program" appears on both the return shipping label and the trucking company's bill of lading. If "IBM Power Systems trade-in program" does not appear on the shipping label and the bill of lading, you may be charged for the return and disposal of IBM Replaced Machines.

Request that maintenance coverage, if any, and software licenses installed on the IBM Replaced Machines be discontinued or transferred, as appropriate.

Ensure that IBM Replaced Machines are in working order on the day they are picked up.

IBM's responsibilities

Make arrangements to remove the IBM Replaced Machines upon receiving your request.

All shipping and storage costs associated with the return of IBM Replaced Machines to IBM, exclusive of any charges for special handling required to remove the IBM Replaced Machines. Special handling includes, but is not limited to:

Credit you the trade-in credit amount specified for IBM Replaced Machines after receiving verification that IBM Replaced Machines have been picked up.

Trade-in of non-IBM Replaced Machines

Your responsibilities

Upon receipt of a Supplement that includes non-IBM Replaced Machines, IBM Customer Support Operations will send you an "IGF OEM trade-in return form" via e-mail. Complete the "IGF OEM trade-in return form" for all non-IBM Replaced Machines.

Completed forms must be sent, upon shipment of non-IBM Replaced Machines to the company identified on the "IGF OEM trade-in return form", to:

(E-mail addresses of the individuals listed above are provided on the "IGF OEM trade-in return form.")

Have clear title to the non-IBM Replaced Machines, free of any encumbrances, at the time they are shipped to the company identified on the "IGF OEM trade-in return form".

Prior to shipping your non-IBM Replaced Machines to the company identified on the "IGF OEM trade-in return form", contact your IBM representative to re-confirm the eligibility of the Replaced Machine (bills of lading for machines shipped to the company identified on the "IGF OEM trade-in return form" must be dated no later than nine (9) months following the Date of Installation of the Replacement Machine).

If you are returning more than one non-IBM Replaced Machine, the machines do not need to be sent to the company identified on the "IGF OEM trade-in return form" at the same time, as long as they are sent within nine (9) months of the Date of Installation of the Replacement Machine.

Remove any data from non-IBM Replaced Machines.

All associated items such as cables, logic manuals, kickplates, terminators, and power cords should be packed with the non-IBM Replaced Machines.

Ensure that "IBM Power Systems trade-in program" appears on both the return shipping label and the trucking company's bill of lading.

You must keep the bill of lading as proof of timely shipment in case the estimated date of delivery is missed.

You are responsible for all costs incurred in shipping non-IBM Replaced Machines to the company identified on the "IGF OEM trade-in return form", as well as preparing non-IBM Replaced Machines for shipment. If you request that IBM prepare the machines for shipment, you will be billed for this service.

Ensure that non-IBM Replaced Machines are in working order on the day they are shipped to the company identified on the "IGF OEM trade-in return form".

IBM's responsibilities

Credit you for the non-IBM Replaced Machine after receiving verification that the non-IBM Replaced Machine received by the company identified on the "IGF OEM trade-in return form" was shipped within the published time frame of the program, is the machine identified on the ICA Supplement, its attributes agree with those listed on the Supplement, and it is in operable condition.

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For information on IBM special offers, refer to the following Web site:

IBM Global Financing

Financing may be available. Refer to the following IBM Global Financing Web site at:

Business Partner information

IBM Business Partner - Distributors; IBM Business Partner - Solution Providers and Resellers who acquire products from IBM; IBM Business Partner - Solution Providers and Resellers who acquire products from IBM Business Partner - Distributors; and IBM Business Partner - Systems Integrators 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 512-102

Order now

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 (426-4968).

      Phone:      800-IBM-CALL (426-2255)
      Fax:        800-2IBM-FAX (242-6329)
      Internet:   callserv@ca.ibm.com
      Mail:       IBM Teleweb Customer Support
                  ibm.com Sales Execution Center, Americas North
                  3500 Steeles Avenue East, Tower 3/4
                  Markham, Ontario
                  Canada
                  L3R 2Z1

Reference: YE001

The Americas Call Centers, our national direct marketing organization, can add your name to the mailing list for catalogs of IBM products.

Trademarks

IBM, AS/400, Express, iSeries, PartnerWorld, Power, POWER7, pSeries, System i, System p, and ibm.com are registered trademarks of International Business Machines Corporation in the United States or other countries or both.

Power Systems is a trademark of International Business Machines Corporation in the United States or other countries or both.

Itanium is a trademark of Intel Corporation or its subsidiaries in the United States and other countries.

Other company, product or service names may be trademarks or service marks of others.