Document:

Exhibit 10.3

 

January 28, 2015

 

Mr. Martin Jetter

 

This letter confirms our offer of IBM employment to you as Senior Vice President
 IBM Global Technology Services reporting to Ginni Rometty, Chairman, President and CEO.

 

The elements of your employment offer are:

 

Total Target Cash:

 

Effective on your first day of IBM US employment, your total target annualized compensation will be $1,469,000.  It will be comprised of $625,000 annual base salary and $844,000 target incentive, plus the opportunity to participate in the IBM US benefits. You will receive a paycheck on a semi-monthly basis, on or around the 15th and 31st of each month.

 

The incentive payout amount will be determined based on IBM’s business performance and the attainment of your individual annual business objectives.  You must be an active employee on December 31, 2015 in order to be eligible for a payout.

 

Benefits:

 

During your IBM US employment, you will be eligible to participate in the various benefit plans which IBM US generally makes available to its regular employees, including medical and dental coverage, accident, disability and life insurance, as well as the IBM 401(k) Plus Plan. Specific to the IBM 401(k) Plus Plan, this plan offers a 100% Company match, up to 5% of pay, plus a 1% automatic contribution. In addition, if you meet certain eligibility requirements during the annual enrollment period held each fall, you may also be eligible to participate in the IBM Excess 401(k) Plus Plan that provides the same benefits as the 401(k) Plus Plan on pay in excess of the IRS limits.  Additional details on these programs will be provided separately.

 

Special Payment:

 

Upon your Separation from Service (as defined in the IBM Excess 401(k) Plus Plan), you will be eligible for a one-time special payment (“Special Payment”) equal to the difference between (i) the amount of the benefit you would have accumulated, but have not yet earned under the IBM Vorsorgeplan (IVP) had you remained an employee of IBM Germany, and (ii) the maximum amount of IBM matching and automatic contributions you are eligible to receive under the IBM 401(k) Plus Plan and the IBM Excess 401(k) Plus Plan (US Plans) regardless of whether you participate, each amount in clauses (i) and (ii) shall be measured from February 1, 2015, your IBM US date of hire, through the

 

 

January 28, 2015

 

Mr. Martin Jetter

 

Page 2

 

date of your Separation from Service from IBM.  The Special Payment shall be calculated in accordance with the terms and conditions of the IVP and the US Plans respectively, as such plans may be amended from time to time.  The Special Payment shall be made in a lump sum payment in the February following the year in which your Separation from Service occurs.  If on the date of your Separation from Service you are a Key Employee (“409A Key Employee” as defined in the IBM Excess 401(k) Plus Plan), the payment date for the Special Payment shall be the later of (a) the first business day that is six months after the date of your Separation from Service, or (b) the otherwise applicable payment date noted above.

 

If your employment terminates due to death, the Special Payment shall be paid to your estate within 90 days from your death in a lump sum payment (even if you are a 409A Key Employee).  If you Separate from Service as a result of disability (determined in accordance with the IBM Long-Term Disability Plan), the Special Payment shall be paid within 90 days from your separation in a lump sum payment.

 

The Special Payment is subject to applicable tax withholdings, and will not be considered compensation for purposes of any IBM employee benefit plan or program.

 

Additional Information:

 

As is customary at IBM, this offer is contingent upon the following:

 

·                  Compliance with the U.S. immigration law.  The law requires you to complete the U.S. Government Employment Eligibility Verification form (I-9) and to provide on your first day of employment documents that verify your identity and employment eligibility.  By accepting this offer, you will be required to comply with this law.

 

·                  Maintaining employment authorization from the United States Immigration Service.  As we have done in the past, IBM will continue to assist you, if required, in maintaining this authorization and will sponsor your application for permanent residency.

 

·                 As you know, IBM employees are required to comply with IBM’s Business Conduct Guidelines.  As an IBM US employee, need to read these documents, and will be required to acknowledge receipt and compliance with the Business Conduct Guidelines.

 

·                  For your awareness, the terms of this offer letter do not create a contract of employment and do not entitle you to employment for any specific period of time.  Rather, your employment at IBM is at-will, which means that either party may terminate your employment at any time, for any reason, and without prior notice.

 

 

January 28, 2015

 

Mr. Martin Jetter

 

Page 3

 

Please note that on your first day of IBM US employment you will be required to sign IBM’s form regarding confidential information and intellectual property. If you would like to review or discuss this document in advance, please feel free to contact me.

 

Response requested on or before January 29, 2015.

 

 

	
Accepted:  
    	
/s/ Martin Jetter
    	
 
    
	
 
    	
 
    	
 
    
	
Date:  
    	
January 29, 2015
    	
 
    
	
 
    	
 
    	
 
    
	
Start Date:
    	
February 1,   2015Exhibit 10.4

 

SECOND AMENDMENT dated as of October 21, 2016  (this “Amendment”) to the 5-Year Credit Agreement dated as of November 10, 2011 (the “Credit Agreement”), among INTERNATIONAL BUSINESS MACHINES CORPORATION (“IBM”), JPMORGAN CHASE BANK, N.A., as Administrative Agent, the Subsidiary Borrowers parties thereto (the “Subsidiary Borrowers”), the Lenders parties thereto, and the Syndication Agents and Documentation Agents named therein. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

 

RECITALS

 

WHEREAS, IBM has requested that the Credit Agreement be amended as set forth herein.

 

WHEREAS, pursuant to, and in compliance with the requirements of, Section 11.1 of the Credit Agreement, the Required Lenders are willing to agree to this Amendment on the terms set forth herein.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto agree as follows:

 

SECTION 1.  Amendments to Credit Agreement.   As of the Second Amendment Effective Date (as defined below), the Credit Agreement is hereby amended as follows:

 

(a)  By adding the following defined terms to Section 1.1 thereof in the appropriate alphabetical order:

 

“Bail-In Action”: the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation”: with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“EEA Financial Institution”: (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country”: any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority”: any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule”: the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

 

 

“Write-Down and Conversion Powers”: with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)  By amending the definition of “Defaulting Lender” to add the following words immediately after the words “the subject of a Bankruptcy Event”:

 

“or a Bail-In Action”

 

(c)  By amending the definition of “Eurodollar Rate” to replace the words “the rate of interest determined on the basis of the rate for deposits in Dollars” with the following words:

 

“the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for Dollars)”

 

(d)  By amending the definition of “Eurodollar Rate” to add the following sentence to the end thereof:

 

“Notwithstanding the foregoing, if the Eurodollar Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.”

 

(e)  By amending the penultimate paragraph of Section 2.22 to add the following words immediately after the words “Bankruptcy Event”:

 

“or a Bail-In Action”; and

 

(f)  By adding the following new Section 11.26:

 

11.26  EU Bail-In.

 

Notwithstanding anything to the contrary in this Agreement or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender deemed to be an EEA Financial Institution arising under this Agreement may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b) the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i) a reduction in full or in part or cancellation of any such liability;

 

(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership 

 

2

 

will be accepted by it in lieu of any rights with respect to any such liability under this Agreement; or

 

(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

 

SECTION 2.  Conditions to Effectiveness of Second Amendment.  This Amendment shall become effective on the first date (the “Second Amendment Effective Date”) on which the Administrative Agent (or its counsel) shall have received duly executed counterparts hereof that, when taken together, bear the signatures of IBM, the Subsidiary Borrowers and Lenders representing the Required Lenders.

 

SECTION 3.  Effects on Credit Agreement.  Except as specifically amended herein, all provisions of the Credit Agreement shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.  Except as otherwise expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under the Credit Agreement or constitute a waiver of or consent to any departure from any term or provision of the Credit Agreement  or to any further or future action on the part of IBM or the Subsidiary Borrowers that would require a waiver or consent of the Required Lenders or the Administrative Agent.

 

SECTION 4.  Expenses.  IBM shall reimburse the Administrative Agent for all reasonable and documented out-of-pocket costs and expenses, including, reasonable and documented attorneys’ fees, in connection with or relating to this Amendment.

 

SECTION 5.  Integration.  This Amendment represents the agreement of IBM, the Subsidiary Borrowers, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to subject matter hereof not expressly set forth or referred to herein.

 

SECTION 6.  GOVERNING LAW; WAIVER OF JURY TRIAL.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. EACH OF THE BORROWERS, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND FOR ANY COUNTERCLAIM THEREIN.

 

SECTION 7.  Counterparts.  This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Agreement by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Amendment signed by all the parties shall be lodged with IBM and the Administrative Agent.

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.

 

	
 
    	
INTERNATIONAL BUSINESS MACHINES CORPORATION
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Simon Beaumont
    
	
 
    	
Title: 
    	
Vice President and Treasurer
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, N.A., as
    
	
 
    	
Administrative Agent and Lender,
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Donatus O. Anusionwu
    
	
 
    	
Title:  
    	
Vice President
    
	
 
    	
 
    
	
 
    	
BNP PARIBAS
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mathew Harvey
    
	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
and
    
	
 
    	
By: 
    	
/s/ Todd Rogers
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
CITIBANK, N.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James Walsh
    
	
 
    	
Title: 
    	
Vice President and Managing Director
    
	
 
    	
 
    
	
 
    	
ROYAL BANK OF CANADA
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mark Gronich
    
	
 
    	
Title: 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
MIZUHO BANK, LTD.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Daniel Guevara
    
	
 
    	
Title: 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mukesh Singh
    
	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    
	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Christopher M. Aitkin
    
	
 
    	
Title: 
    	
Assistant Vice President
    

 

[Signature Page to Second Amendment]

 

 

	
 
    	
DEUTSCHE BANK AG NEW YORK BRANCH
    
	
 
    	
By: 
    	
/s/ Ming K. Chu
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
and
    
	
 
    	
By: 
    	
/s/ Virginia Cosenza
    
	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    
	
 
    	
HSBC Bank USA N.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Jonathan Yip
    
	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    
	
 
    	
Wells Fargo Bank, N.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Sid Khanolkar
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
The Bank of   Tokyo-Mitsubishi UFJ, Ltd.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Lillian Kim
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
BANCO SANTANDER, S.A.
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Federico Robin
    
	
 
    	
Title: 
    	
Executive Director
    
	
 
    	
and
    
	
 
    	
By: 
    	
/s/ Paloma Garca Castro
    
	
 
    	
Title: 
    	
Associate
    
	
 
    	
 
    
	
 
    	
COMMERZBANK AG,   NEW YORK BRANCH
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Tom H.S. Kang
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
and
    
	
 
    	
By: 
    	
/s/ Justin Hull
    
	
 
    	
Title: 
    	
Associate
    
	
 
    	
 
    
	
 
    	
Credit Suisse AG, Cayman Islands Branch
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Christopher Day
    
	
 
    	
Title: 
    	
Authorized Signatory
    
	
 
    	
and
    
	
 
    	
By: 
    	
/s/ Karim Rahimtoola
    
	
 
    	
Title: 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
Goldman Sachs   Bank USA
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Mehmet Barlas
    
	
 
    	
Title: 
    	
Authorized Signatory
    

 

5

 

	
 
    	
ING Bank N.V.,   Dublin Branch
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Barry Fehily
    
	
 
    	
Title: 
    	
Managing Director
    
	
 
    	
and
    
	
 
    	
By: 
    	
Sean Hassett
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
SOCIETE GENERALE
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Kimberly Metzger
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    
	
 
    	
U.S. Bank   National Association
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Patrick McGraw
    
	
 
    	
Title: 
    	
Senior Vice President
    
	
 
    	
 
    
	
 
    	
UniCredit   Bank AG, New York Branch
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Filippo Pappalardo
    
	
 
    	
Title:   
    	
Managing   Director
    
	
 
    	
and
    
	
 
    	
By:   
    	
/s/   Bryon Korutz
    
	
 
    	
Title:   
    	
Associate   Director
    
	
 
    	
 
    
	
 
    	
Bank   of China, New York
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Haifeng Xu
    
	
 
    	
Title:   
    	
Executive   Vice President
    
	
 
    	
 
    
	
 
    	
Mitsubishi   UFJ Trust and Banking Corporation
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Kota Goto
    
	
 
    	
Title:   
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
AUSTRALIA   AND NEW ZEALAND BANKING GROUP LIMITED
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Robert Grillo
    
	
 
    	
Title:   
    	
Director
    
	
 
    	
 
    
	
 
    	
PNC   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Michael Richards
    
	
 
    	
Title:   
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
Standard   Chartered Bank
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Steven Aloupis
    
	
 
    	
Title:   
    	
Managing   Director
    

 

6

 

	
 
    	
Sumitomo   Mitsui Banking Corporation
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   David W. Kee
    
	
 
    	
Title:   
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
Toronto   Dominion (New York) LLC
    
	
 
    	
By:   
    	
/s/   Annie Dorval
    
	
 
    	
Title:   
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
BANCO   BILBAO VIZCAYA ARGENTARIA, S.A.
    
	
 
    	
NEW   YORK BRANCH
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Brian Crowley
    
	
 
    	
Title:   
    	
Managing   Director
    
	
 
    	
and
    
	
 
    	
By:   
    	
/s/   Cara Younger
    
	
 
    	
Title:   
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
Banco   Bradesco S.A., New York Branch
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mauro Lopes
    
	
 
    	
Title:   
    	
Manager
    
	
 
    	
and
    
	
 
    	
By:   
    	
/s/   Adrian de A. da Graca e Costa
    
	
 
    	
Title:   
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Canadian   Imperial Bank of Commerce, New York Branch
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Robert Robin
    
	
 
    	
Title:   
    	
Authorized   Signatory
    
	
 
    	
and
    
	
 
    	
By:   
    	
/s/   Zhen Ma
    
	
 
    	
Title:   
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
Danske   Bank A/S
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Merete Ryvald-Christensen
    
	
 
    	
Title:   
    	
Chief   Loan Officer
    
	
 
    	
and
    
	
 
    	
Name:   
    	
/s/   Gert Carstens
    
	
 
    	
Title:   
    	
Senior   Loan Manager
    
	
 
    	
 
    	
 
    
	
 
    	
Industrial   and Commercial Bank of China Limited
    
	
 
    	
New   York Branch
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Yuanyuan Peng
    
	
 
    	
Title:   
    	
Vice   President
    
	
 
    	
and
    
	
 
    	
By:   
    	
/s/   Dayi Liu
    
	
 
    	
Title:   
    	
Director
    

 

7

 

	
 
    	
Lloyds   Bank plc
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Erin Walsh
    
	
 
    	
Title: 
    	
Assistant Vice President, Transaction Execution
    
	
 
    	
and
    
	
 
    	
By: 
    	
/s/ Joel Slomko
    
	
 
    	
Title: 
    	
Assistant Vice President, Transaction Execution
    
	
 
    	
 
    	
 
    
	
 
    	
Raiffeisen Bank   International AG
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Martina Soudek
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
and
    
	
 
    	
By: 
    	
/s/ Christina de Cicillia
    
	
 
    	
Title: 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
State Street Bank   and Trust Company
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Andrei Bourdine
    
	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Thomas J. Tarasovich, Jr.
    
	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
THE NORTHERN TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Sophia E. Love
    
	
 
    	
Title: 
    	
Senior Vice President
    

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}]]