Storage Buisness For Sale

https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa... Modification: IBM System x and System Storage Business Partner growth incentives Announcement Letter Number 508-441 January 23, 2008 The IBM® System x™ Business Partner growth incentive has been modified, retroactive to January 1, 2008. The following changes are being made with this announcement: a System Storage™ growth incentive has been added, with a quarterly System Storage sales revenue target, Level One and Level Two payments, System Storage over-achievement bonus, and Premier Partner recovery incentive changes have been made to the lists of Eligible products the quarterly System x sales revenue target has been changed an additional System x over-achievement bonus has been added the Options/storage ratio bonus has been removed the title of these incentives has changed to reflect the addition of the System Storage growth incentive All other terms and conditions remain unchanged. This announcement supersedes Announcement Letter 507-698, dated November 5, 2007. The offer Eligible IBM Business Partners who are approved to remarket IBM System x, BladeCenter®, and IntelliStation® products can receive a quarterly System x growth incentive payment if they: have achieved Member, Advanced, or Premier level membership in PartnerWorld® no later than the end of the prior quarter, and reported a minimum of $25,000 in End-User sales revenue for the eligible IBM System x products (which include System x, BladeCenter, and IntelliStation products) invoiced in the prior year or the prior quarter, and meet a defined quarterly EDI or Web-based reported End-User sales revenue target for eligible IBM System x products. -- and/or -Eligible IBM Business Partners who are approved to remarket IBM System x, BladeCenter, IntelliStation, and System Storage products can receive a quarterly System Storage growth incentive payment if they: have achieved Member, Advanced, or Premier level membership in PartnerWorld no later than the end of the prior quarter, and reported a minimum of $25,000 in End-User sales revenue for the eligible IBM System x products (which include System x, BladeCenter, and IntelliStation products) invoiced in the prior year or the prior quarter, and meet a defined quarterly EDI or Web-based reported End-User sales revenue target for eligible IBM System Storage products. In addition, eligible IBM Business Partners can receive System x and System Storage over-achievement bonuses, and IBM Business Partners who have achieved Premier level membership in PartnerWorld can receive System x and System Storage recovery incentive payments, if they meet certain revenue objectives. Refer to the Additional information/conditions section of this announcement for details. Reported End-User sales revenue is defined as the total IBM Bid Index Price of the eligible products sold to an End User* on the date of the sale to the End User (End-User invoice date). Quarterly System x and System Storage revenue targets will be individually communicated to each eligible Business Partner within the first 15 business days of each quarter. Sales to Federal, State, and Local government entities do not qualify. IBM Business Partners must purchase the eligible new products from IBM or an authorized IBM U.S. Distributor. For a list of eligible products, refer to the Qualifying/Eligible products section. 1 of 5 1/23/2008 2:55 PM https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa... * as defined in the IBM Business Partner Agreement Start and/or end dates End-User invoices for the eligible products must have a date of on or after January 1, 2008. EDI or Web-based sales transaction reporting must be received by IBM no later than the last calendar date in the calendar month following the close of a quarter. Who is eligible? Provided they are members of PartnerWorld, the following IBM Business Partners are eligible for these incentives: Solution Providers and Resellers who acquire products directly from IBM Solution Providers and Resellers who acquire IBM products from IBM Business Partner -- Distributors Systems Integrators IBM Business Partner -- Distributors are responsible for making their IBM Business Partner -- Solution Providers and Resellers aware of these incentives. Where is it available? These incentives are available only in the United States and its territories. Qualifying/Eligible products Eligible products To access the Price List on PartnerWorld, visit the following Web site: //www-1.ibm.com/partnerworld/pwhome.nsf/weblook/pat_sas_x.html Under Shortcuts, select Price List. Eligible System x products Eligible System x products (which include System x, BladeCenter, and IntelliStation products) are defined as those products in the following assortment modules as listed in the Price List and Assortment Module (AM) listing on the System x Product section on PartnerWorld, excluding System x software Enterprise License Agreements (ELAs): A101 through A109 A201 through A209 P000, P001, P011, P077 X000 through X014 X100 through X111 X150 through X177 X181 through X191 X200 through X211 X250 through X285 Eligible System Storage products Eligible System Storage Systems are defined as those products in the following assortment modules as listed in the Price List and Assortment Module (AM) listing on the Storage Product section on PartnerWorld: T003, T004, T005, T006, T008, T009, T010 X130, X230, X285 Additional information/conditions Products acquired for Business Partner internal use or for demonstration or development use do not qualify for payments under the terms of these incentives. Business Partners who sell directly to End Users and meet the reported sales revenue requirements are eligible to receive incentive payments under the terms of these incentives. IBM Business Partners with multiple business locations will qualify as a single entity. Only one payment will be made, per quarter, per signed Business Partner Agreement. 2 of 5 1/23/2008 2:55 PM https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa... For information on how to achieve Premier level membership in PartnerWorld, IBM Business Partners should contact their IBM Marketing Representative or call the PartnerWorld Contact Services Center at 800-426-7272. IBM reserves the right to modify or withdraw these incentives at any time. These incentives are subject to the terms and conditions of any applicable Agreements. Quarterly System x targets and quarterly System x incentive payment amounts Quarterly System x sales revenue targets for reported End-User sales of System x products (which include System x, BladeCenter, and IntelliStation products) invoiced during a quarter are equal to a 6% uplift over the reported System x sales revenue for the corresponding quarter in the prior year, or $25,000, whichever is greater. There are two levels of System x growth incentive payments, based upon attainment of the quarterly System x sales revenue target as follows: System x Level One payment: 0.5% of the reported End-User sales of the eligible System x products in the quarter if the reported End-User System x sales revenue is equal to at least 85%, but less than 100%, of the Business Partner's quarterly System x sales revenue target, or System x Level Two payment: 1.0% of the reported End-User sales of the eligible System x products in the quarter if the Business Partner's quarterly System x sales revenue target is met or exceeded. Quarterly System Storage targets and quarterly System Storage incentive payment amounts Quarterly System Storage sales revenue targets for reported End-User sales of System Storage products invoiced during a quarter are equal to a 25% uplift over the reported System Storage sales revenue for the corresponding quarter in the prior year, or $25,000, whichever is greater. There are two levels of System Storage growth incentive payments, based upon attainment of the quarterly System Storage sales revenue target as follows: System Storage Level One payment: 0.5% of the reported End-User sales of the eligible System Storage products in the quarter if the reported End-User System Storage sales revenue is equal to at least 85%, but less than 100%, of the Business Partner's quarterly System Storage sales revenue target, or System Storage Level Two payment: 1.5% of the reported End-User sales of the eligible System Storage products in the quarter if the Business Partner's quarterly System Storage sales revenue target is met or exceeded. System x over-achievement bonuses Business Partners who exceed their System x quarterly sales revenue target will receive an over-achievement bonus equal to .5% of their reported End-User sales of the eligible System x products that exceed their System x quarterly sales revenue target. Business Partners who meet or exceed 85% or their quarterly System x sales revenue target, and also meet or exceed 100% of their quarterly System Storage sales revenue target will receive an over-achievement bonus equal to .5% of their reported End-User sales of the eligible System x products for that quarter. System Storage over-achievement bonus Business Partners who exceed their System Storage quarterly sales revenue target will receive an over-achievement bonus equal to 2.5% of their reported End-User sales of the eligible System Storage products that exceed their System Storage quarterly sales revenue target. System x quarterly payment examples A Business Partner has a System x quarterly sales revenue target of $10 Million, and actual System x sales of $12 Million. In addition, they meet 100% of their System Storage quarterly sales revenue target. Their quarterly System x incentive payment would be calculated as follows: $12 Million x 1.0% (Level Two payment) $2 Million x .5% (Over-achievement bonus) $12 Million x .25% (Over-achievement bonus) Total payment = $120,000 = 10,000 = 30,000 = 160,000 A Business Partner has a quarterly System x sales revenue target of $10 Million, and actual sales of $8.5 Million. In addition, they meet 85% of their System Storage quarterly sales revenue target. Their System x quarterly incentive payment would be calculated as follows: $8.5 Million x .5% (Level One payment) = $42,500 3 of 5 1/23/2008 2:55 PM https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa... Total payment = 42,500 System Storage quarterly payment examples A Business Partner has a quarterly System Storage sales revenue target of $5 Million, and actual sales of $6 Million. Their quarterly System Storage incentive payment would be calculated as follows: $6 Million x 1.5% (Level Two payment) $1 Million x 2.5% (Over-achievement bonus) Total payment = = = $90,000 25,000 115,000 A Business Partner has a quarterly System Storage sales revenue target of $5 Million, and actual sales of $4.25 Million. Their quarterly System Storage incentive payment would be calculated as follows: $4.25 Million x .5% (Level One payment) Total payment = $21,250 = 21,250 Premier Partner recovery incentives These incentives assist Premier Partners who fall short of their quarterly System x and/or System Storage sales revenue targets in one or more quarters in a calendar year. In order to qualify for a recovery incentive payment for a quarter, a Business Partner must have achieved Premier level membership in PartnerWorld no later than the end of the quarter prior to the quarter for which the recovery incentive payment is applicable. For System x, Premier Partners who meet or exceed the combined sum of their first and second System x quarterly sales revenue targets by June 30, 2008 but miss one or more System x quarterly targets within the first and second quarter can receive 70% of the difference between the System x quarterly incentive payment they received for the quarter (if any), and the System x quarterly incentive payment they would have received had they achieved 100% of their System x quarterly sales revenue targets. Premier Partners who meet or exceed the combined sum of their third and fourth System x quarterly sales revenue targets by December 31, 2008 but miss one or more System x quarterly targets within the third and fourth quarter can receive 70% of the difference between the System x quarterly incentive payment they received for the quarter (if any), and the System x quarterly incentive payment they would have received had they achieved 100% of their System x quarterly sales revenue targets. For System Storage, Premier Partners who meet or exceed the combined sum of their first and second System Storage quarterly sales revenue targets by June 30, 2008 but miss one or more System Storage quarterly targets within the first and second quarter can receive 70% of the difference between the System Storage quarterly incentive payment they received for the quarter (if any), and the System Storage quarterly incentive payment they would have received had they achieved 100% of their System Storage quarterly sales revenue targets. Premier Partners who meet or exceed the combined sum of their third and fourth System Storage quarterly sales revenue targets by December 31, 2008 but miss one or more System Storage quarterly targets within the third and fourth quarter can receive 70% of the difference between the System Storage quarterly incentive payment they received for the quarter (if any), and the System Storage quarterly incentive payment they would have received had they achieved 100% of their System Storage quarterly sales revenue targets. Sales transaction reporting EDI or Web-based sales transaction reporting must be received by IBM no later than the last calendar date in the calendar month following the close of a quarter, as per the following example: Sales quarter 1Q 2008 2Q 2008 Last reporting date April 30, 2008 July 31, 2008 Transshipment of product between Business Partners does not qualify as a sale to an End User, and should not be reported as such under the terms and conditions of these incentives. Accruals and payments for these incentives will be reflected in your monthly ProPlan statement. IBM will debit any account for returns or adjustments to reported sales. For questions pertaining to your statement, contact the IBM Promotional Support Center at 800-477-6756. Any inquiries related to differences between Business Partner reported sales transactions and IBM's verified sales must be documented, in writing, by the Business Partner to IBM within 90 days of the accrual period, or claims to any unpaid incentive payments will be forfeited. Inquiries may be faxed to 800-477-6745. Business Partners are responsible for ensuring the accuracy of their sales reporting. IBM reserves the right to request further data for reconciliation, and will withhold payments subject to validation of the data, or recover monies already paid based upon changes to previously submitted data. 4 of 5 1/23/2008 2:55 PM https://www-304.ibm.com/jct09002c/partnerworld/mem/bpal/bin/displa... Incentive payments Incentive payments will be made on a quarterly basis, in the form of a check to the Business Partner's headquarters location. Other forms of payment, such as "credit on account" will not be considered. In addition, IBM will not assign or transfer an incentive payment to another party. IBM reserves the right to audit compliance with the terms and conditions of these incentives, and is the sole determiner of any and all incentive payments due. Need help? Questions pertaining to this incentive should be directed to: System x: Brian Kielty at bkielty@us.ibm.com, or Sean Whalen (Alternate) at swhalen@us.ibm.com System Storage: storpgm@us.ibm.com or PartnerWorld Contact Services at 800-426-9990. Trademarks IBM, BladeCenter, IntelliStation, and PartnerWorld are registered trademarks of International Business Machines Corporation in the United States or other countries or both. System Storage and System x are trademarks of International Business Machines Corporation in the United States or other countries or both. Other company, product or service names may be trademarks or service marks of others. 5 of 5 1/23/2008 2:55 PM