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Exhibit 10.8    
    

 
 

STOCK OPTION AGREEMENT    
    

        STOCK OPTION AGREEMENT made
this                                    , between Valmont Industries,
 Inc., a Delaware corporation ("Corporation"),
and                                    , a director
of the Corporation ("Director"). 

        The
Valmont Industries, Inc. 2002 Stock Plan (the "Plan") authorizes the Corporation to grant certain options to non-employee directors of the Corporation on specified
dates. This option is the option for non-employee directors pursuant to the Plan and is expressly designated not to be an Incentive Stock Option as defined in I.R.C. §422A. The
provisions of the Plan are incorporated herein by reference and made a part of this Stock Option Agreement. 

        NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and for good and valuable consideration, the parties hereto agree as follows: 

        1.     Grant of Option.    The Corporation hereby irrevocably grants to the Director, pursuant to and subject to the
terms of the Plan, the right and option, hereinafter called the "Option," to purchase all or any part of an aggregate of                          shares of
common stock (the "Common Shares") of the Corporation (such number being subject to adjustment as provided in Paragraph 6 hereof) on the terms and conditions herein set forth. The holder of the
Option shall not have any of the rights of a stockholder with respect to the shares covered by the Option until one or more certificates for such shares shall be delivered to such holder upon the due
exercise of the Option. 

        2.     Purchase Price.    The purchase price of the Common Shares covered by the Option shall be
$                         per share. The purchase price of the shares as to which
the Option shall be exercised shall be paid in full in cash at the time of
exercise or the Director may make payment (i) in common stock of the Corporation already owned by the Director (if such common stock has been owned by the Director for at least six months)
valued at its fair market value on the date of exercise, or (ii) by having the Corporation retain common stock which would otherwise be issued on the exercise of the Option, valued at its fair
market
value on the date of exercise. For purposes of this Paragraph 2, fair market value shall mean the average of the high and low sales prices of the Corporation's common stock as reported on the
New York Stock Exchange on such date, or if there were no transactions on such date, on the immediately preceding date on which common stock transactions were so reported. 

        3.     Term of Option.    The term of the Option shall be for a period of seven (7) years from the date hereof. 

        4.     Non-Transferability.    The Option shall not be transferable otherwise than by will or the laws of
descent and distribution, and the Option may be exercised, during the lifetime of the Director, only by such Director. More particularly (but without limiting the generality of the foregoing), the
Option may not be assigned, transferred (except as provided above), pledged or hypothecated in any way, shall not be assignable by operation of law, and shall not be subject to execution, attachment
or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof or the levy of any execution, attachment or similar
process upon the Option shall be null and void and without effect. 

        5.     Exercisability.    This Option shall become exercisable on the first anniversary of the date of grant. No
exercise shall be made hereunder after seven years following the date of grant. The Option may be exercised, at any time or from time to time, as to any part or all the shares exercisable; provided,
however, that the Option may not be exercised as to less than one hundred (100) shares at any one time (or the remaining shares then purchasable under the Option, if less than one hundred
(100) shares). 

 

        6.     Adjustment in Capitalization.    If any adjustment in the Corporation's capitalization as described in
Section 5.3 of the Plan occurs, appropriate adjustments shall be made (as provided in Section 5.3 of the Plan) to the number of shares and price per share of stock subject to this
Option. 

        7.     Method of Exercising Option.    Subject to the terms and conditions of the Option Agreement, the Option may be
exercised by written notice to the Corporation, care of its Chief Financial Officer, One Valmont Plaza, Omaha, Nebraska 68154. Such notice shall state the election to execute the Option and the number
of shares in respect of which it is being exercised, and shall be signed by the person or persons so exercising the Option. Such notice shall either: (a) be accompanied by payment of the full
purchase price of such shares, in which event the Corporation shall deliver a certificate or certificates representing such shares as soon as practicable after the notice shall be received; or
(b) fix a date (not
less than five (5) nor more than ten (10) business days from the date such notice shall be received by the Chief Financial Officer) for the payment of the full purchase price of such
shares at the Corporation's Transfer Agent Offices, against delivery of a certificate or certificates representing such shares. Payment of such purchase price shall, in either case, be made by check
payable to the order of the Corporation or, if applicable pursuant to Paragraph 2 hereof, the transfer of the appropriate shares of stock. The certificate or certificates for the shares as to
which the Option shall have been so exercised shall be registered in the name of the person or persons so exercising the Option (or, if the Option shall be exercised by the Director and if the
Director shall so request in the notice exercising the Option, shall be registered in the name of the Director and another person jointly, with right of survivorship) and shall be delivered as
provided above to or upon the written order of the person or persons exercising the Option. All shares that shall be purchased upon the exercise of the Option as provided herein shall be fully paid
and non-assessable. 

        8.     General.    The Corporation shall at all times during the term of the Option reserve and keep available such
number of Common Shares as will be sufficient to satisfy the requirements of this Option Agreement, shall pay all original issue and transfer taxes with respect to the issue and transfer of shares
pursuant hereto and all other fees and expenses necessarily incurred by the Corporation in connection therewith, and will from time to time use its best efforts to comply with all laws and regulations
which shall be applicable thereto. 

        IN
WITNESS WHEREOF, the corporation and the Director have signed this Option Agreement effective as of the day and year first above written. 

	 	 	VALMONT INDUSTRIES, INC.
	

 	
 	

By:	
 	

 
	
	 	 	 	

	Director	 	 	 	 

2

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Exhibit 10.8

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Exhibit 10.1    
    

 
 

International Business Machines Corporation ("IBM")
  
    Equity Award Agreement  
  

	Plan	 	IBM 1999 Long-Term Performance Plan (the "Plan")
	
Award Type	
 	

[Stock Options, Restricted Stock, Restricted Stock Units, Cash-Settled Restricted Stock Units, SARs]
	
Purpose	
 	

The purpose of this Award is to retain selected employees and executives. You recognize that this Award represents a potentially significant benefit to you and is awarded for the purpose stated here.
	
Awarded to	
 	
Sample
	Home Country	 	United States (USA)
	Employee ID	 	SAMP002
	
Award Agreement	
 	

This Equity Award Agreement, together with the "Terms and Conditions of Your Equity Award: Effective January 1, 2008" ("Terms and Conditions") document and the Plan [http://w3-1.ibm.com/hr/exec/comp/eq_prospectus.shtml], both of which are incorporated herein by reference, together constitute the entire agreement between you and IBM with respect to your Award. This Equity Award
Agreement shall be governed by the laws of the State of New York, without regard to conflicts or choice of law rules or principles.
	
Grant	
 	

Date of Grant: [Month Date, Year]

[Exercise Price: $XX]

Number of [Options/Units/Shares/SARs] Awarded: XX
	
Vesting	
 	

This Award vests as set forth below, subject to your continued employment with the Company as described in the Terms and Conditions document.

	 	 	    Options/Units/Shares/SARs	 	Date
	 	 	[number of shares]	 	[month date, year]
	 	 	[number of shares]	 	[month date, year]

	 	 	Options expire, subject to the Terms and Conditions document, on: [month, date, year]
	
Terms and Conditions of Your Equity Award	
 	

Please refer to the Terms and Conditions document [http://w3-1.ibm.com/hr/exec/comp/eq_prospectus.shtml] for an explanation of the terms and conditions applicable to your Award, including those relating
to:
	 	 	•  Cancellation and rescission of awards (also see below)

•  Jurisdiction, governing law, expenses and taxes

•  Non-solicitation of Company employees and clients, if applicable]

•  Treatment of your Award in the event of death or disability or leave of absence

•  Treatment of your Award upon termination of employment (including retirement or for cause)

 

	 	 	It is strongly recommended that you print the Terms and Conditions document for later reference.
	
Cancellation and Rescission	
 	

You understand that IBM may cancel, modify, rescind, suspend, withhold or otherwise limit or restrict this Award in accordance with the terms of the Plan, including, without limitation, canceling or rescinding this Award if you render services for a
competitor prior to, or during the Rescission Period. You understand that the Rescission Period that has been established is 12 months. Refer to the Terms and Conditions document and the Plan for further details.
	
Data Privacy, Electronic Delivery	
 	

By accepting this Award, you agree that data necessary to administer this Award may be exchanged among IBM and its subsidiaries and affiliates as necessary, and with any vendor engaged by IBM to administer this Award, subject to the Terms and
Conditions document; you also consent to receiving information and materials in connection with this Award or any subsequent awards under IBM's long-term performance plans, including without limitation any prospectuses and plan documents, by any
means of electronic delivery available now and/or in the future (including without limitation by e-mail, by Web site access and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you.
	
Extraordinary Compensation	
 	

Your participation in the Plan is voluntary. The value of this Award is an extraordinary item of income, is not part of your normal or expected compensation and shall not be considered in calculating any severance, redundancy, end of service payments,
 bonus, long-service awards, pension, retirement or other benefits or similar payments. The Plan is discretionary in nature. This Award is a one-time benefit that does not create any contractual or other right to receive additional awards or other
benefits in the future. Future grants, if any, are at the sole grace and discretion of IBM, including but not limited to, the timing of the grant, the number of units and vesting provisions. This Equity Award Agreement is not part of your employment
agreement, if any.
	
Accept Your Award	
 	

This Award is not considered valid unless and until you accept it. By pressing the Accept button below to accept your Award, you acknowledge having received and read this Equity Award Agreement, the Terms and Conditions document and the Plan under
which this Award was granted and you agree (i) not to enter into any derivative transaction on IBM securities (e.g., any short sale, put, swap, forward, option, collar, etc.) to hedge your position with regard to this award or any
previously-granted outstanding awards (ii) to comply with the terms of the Plan, this Equity Award Agreement and the Terms and Conditions document, including those provisions relating to cancellation and rescission of awards and jurisdiction and
governing law and (iii) that by your acceptance of this Award, all awards previously granted to you under the Plan or other IBM Long-Term Performance Plans are subject to the "Cancellation and Rescission" section of this Agreement (unless your
previous award agreement(s) specified a longer Rescission Period, in which case such longer period will apply) and the "Cancellation and Rescission" section of the Terms and Conditions document.

2

 
 

International Business Machines Corporation ("IBM")
  
    Equity Award Agreement  
  

	Plan	 	IBM 1999 Long-Term Performance Plan (the "Plan")
	
Award Type	
 	
Performance Share Units (PSUs)
	
Purpose	
 	

The purpose of this Award is to retain selected executives. You recognize that this Award represents a potentially significant benefit to you and is awarded for the purpose stated here.
	
 Awarded to	
 	
Sample
	Home Country	 	United States (USA)
	Employee ID	 	SAMP002
	
Award Agreement	
 	

This Equity Award Agreement, together with the "Terms and Conditions of Your Equity Award: Effective January 1, 2008" ("Terms and Conditions") document and the Plan [http://w3-1.ibm.com/hr/exec/comp/eq_prospectus.shtml], both of which are incorporated herein by reference, together constitute the entire agreement between you and IBM with respect to your Award. This Equity Award
Agreement shall be governed by the laws of the State of New York, without regard to conflicts or choice of law rules or principles.

	Grant	 	Date of Grant	 	# PSUs Awarded	 	Performance Period	 	Date of Payout
	 	 	[month date, year]	 	[amount]	 	[dates]	 	[date]
	 	 	[month date, year]	 	[amount]	 	[dates]	 	[date]

	
Vesting	
 	

You can earn the PSUs awarded above based on IBM's performance in achieving cumulative business targets of earnings-per-share and cash flow, weighted 80/20 respectively, over the 3-year Performance Period applicable to the
award. Performance against each of the targets will be subject to separate payout calculations according to the following table (which will be applied separately for each award of PSUs listed above):

	 	 	        % of Target	 	<70	%	70	%	80	%	90	%	100	%	110	%	>120	%
	 	 	        % of PSU's earned	 	0	%	25	%	50	%	75	%	100	%	125	%	150	%

	Payout of Awards	 	On the Date of Payout, the Company shall either (a) deliver to you a number of shares of Capital Stock equal to the number of your earned PSUs, or (b) make a cash payment to you equal to the value of your earned
PSUs at the end of the Performance Period, in either case, net of any applicable tax withholding, and the respective PSUs shall thereafter be canceled. If paid in cash, the value of each PSU at the end of the Performance Period shall be equal to the
average closing price, as reported on the New York Stock Exchange ("NYSE"), of one share of Capital Stock for the month of January following the end of the Performance Period.
	 	 	All payouts under this Award are subject to the provisions of the Plan, this Agreement and the Terms and Conditions document, including those relating to the cancellation and rescission of awards.
	
Terms and Conditions of Your Equity Award	
 	

Please refer to the Terms and Conditions document [http://w3-1.ibm.com/hr/exec/comp/eq_prospectus.shtml] for an explanation of the terms and conditions applicable to your Award, including those relating
to:
	 	 	•  Cancellation and rescission of awards (also see below)

•  Jurisdiction, governing law, expenses and taxes

•  Non-solicitation of Company employees and clients, if applicable

 

	 	 	It is strongly recommended that you print the Terms and Conditions document for later reference.
	
Cancellation and Rescission	
 	

You understand that IBM may cancel, modify, rescind, suspend, withhold or otherwise limit or restrict this Award in accordance with the terms of the Plan, including, without limitation, canceling or rescinding this Award if you render services for a
competitor prior to, or during the Rescission Period. You understand that the Rescission Period that has been established is 12 months. Refer to the Terms and Conditions document and the Plan for further details.
	
Data Privacy, Electronic Delivery	
 	

By accepting this Award, you agree that data necessary to administer this Award may be exchanged among IBM and its subsidiaries and affiliates as necessary, and with any vendor engaged by IBM to administer this Award, subject to the Terms and
Conditions document; you also consent to receiving information and materials in connection with this Award or any subsequent awards under IBM's long-term performance plans, including without limitation any prospectuses and plan documents, by any
means of electronic delivery available now and/or in the future (including without limitation by e-mail, by Web site access and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you.
	
Extraordinary Compensation	
 	

Your participation in the Plan is voluntary. The value of this Award is an extraordinary item of income, is not part of your normal or expected compensation and shall not be considered in calculating any severance, redundancy, end of service payments,
 bonus, long-service awards, pension, retirement or other benefits or similar payments. The Plan is discretionary in nature. This Award is a one-time benefit that does not create any contractual or other right to receive additional awards or other
benefits in the future. Future grants, if any, are at the sole grace and discretion of IBM, including but not limited to, the timing of the grant, the number of units and vesting provisions. This Equity Award Agreement is not part of your employment
agreement, if any.
	
Accept Your Award	
 	

This Award is not considered valid unless and until you accept it. By pressing the Accept button below to accept your Award, you acknowledge having received and read this Equity Award Agreement, the Terms and Conditions document and the Plan under
which this Award was granted and you agree (i) not to enter into any derivative transaction on IBM securities (e.g., any short sale, put, swap, forward, option, collar, etc.) to hedge your position with regard to this award or any
previously-granted outstanding awards (ii) to comply with the terms of the Plan, this Equity Award Agreement and the Terms and Conditions document, including those provisions relating to cancellation and rescission of awards and (iii) that
by your acceptance of this Award, all awards previously granted to you under the Plan or other IBM Long-Term Performance Plans are subject to the "Cancellation and Rescission" section of this Agreement (unless your previous award agreement(s)
specified a longer Rescission Period, in which case such longer period will apply) and the "Cancellation and Rescission" section of the Terms and Conditions document.

2

 
 

International Business Machines Corporation ("IBM")
  
    Equity Award Agreement  
  

	Plan	 	IBM 1999 Long-Term Performance Plan (the "Plan")
	
 Award Type	
 	
Retention Restricted Stock Unit Award (RRSU)
	
 Purpose	
 	

The purpose of this Award is to retain selected executives. You recognize that this Award represents a potentially significant benefit to you and is awarded for the purpose stated here.
	
 Awarded to

Home Country	
 	
Sample

United States (USA)
	Employee ID	 	SAMP002
	
 Award Agreement	
 	

This Equity Award Agreement, together with the "Terms and Conditions of Your Equity Award: Effective January 1, 2008" ("Terms and Conditions") document and the Plan [http://w3-1.ibm.com/hr/exec/comp/eq_prospectus.shtml], both of which are incorporated herein by reference, together constitute the entire agreement between you and IBM with respect to your Award. This Equity Award
Agreement shall be governed by the laws of the State of New York, without regard to conflicts or choice of law rules or principles.
	
Grant	
 	

Date of Grant: [Month Date, Year]

Number of Units Awarded: XX
	
Vesting	
 	

This Award vests as set forth below, subject to your continued employment with the Company as described in the Terms and Conditions document.

	 	 	Units	 	Date	 	 
	 	 	[amount]	 	[month date, year]	 	 
	 	 	[amount]	 	[month date, year]	 	 

	
Terms and Conditions of Your Equity Award	
 	

Please refer to the Terms and Conditions document [http://w3-1.ibm.com/hr/exec/comp/eq_prospectus.shtml] for an explanation of the terms and conditions applicable to your Award, including those relating
to:
	

 	
 	

•  Cancellation and rescission of awards (also see below)

•  Jurisdiction, governing law, expenses and taxes

•  Non-solicitation of Company employees and clients, if applicable

•  Treatment of your Award in the event of death, disability, leave of absence or for cause

•  Treatment of your Award upon termination of employment (including retirement)

	 	 	It is strongly recommended that you print the Terms and Conditions document for later reference.
	

 Cancellation and Rescission	

 	

You understand that IBM may cancel, modify, rescind, suspend, withhold or otherwise limit or restrict this Award in accordance with the terms of the Plan, including, without limitation, canceling or rescinding this Award if you render services for a
competitor prior to, or during the Rescission Period. You understand that the Rescission Period that has been established is three years. Refer to the Terms and Conditions document and the Plan for further details.

 

	
Data Privacy, Electronic Delivery	
 	

By accepting this Award, you agree that data necessary to administer this Award may be exchanged among IBM and its subsidiaries and affiliates as necessary, and with any vendor engaged by IBM to administer this Award, subject to the Terms and
Conditions document; you also consent to receiving information and materials in connection with this Award or any subsequent awards under IBM's long-term performance plans, including without limitation any prospectuses and plan documents, by any
means of electronic delivery available now and/or in the future (including without limitation by e-mail, by Web site access and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you.
	
Extraordinary Compensation	
 	

Your participation in the Plan is voluntary. The value of this Award is an extraordinary item of income, is not part of your normal or expected compensation and shall not be considered in calculating any severance, redundancy, end of service payments,
 bonus, long-service awards, pension, retirement or other benefits or similar payments. The Plan is discretionary in nature. This Award is a one-time benefit that does not create any contractual or other right to receive additional awards or other
benefits in the future. Future grants, if any, are at the sole grace and discretion of IBM, including but not limited to, the timing of the grant, the number of units and vesting provisions. This Equity Award Agreement is not part of your employment
agreement, if any.
	
Accept Your Award	
 	

This Award is not considered valid unless and until you accept it. By pressing the Accept button below to accept your Award, you agree (i) not to enter into any derivative transaction on IBM securities (e.g., any short sale, put, swap,
forward, option, collar, etc.) to hedge your position with regard to this award or any previously-granted outstanding awards and (ii) you acknowledge having received and read this Equity Award Agreement, the Terms and Conditions document and the
Plan under which this Award was granted and you agree to comply with the terms of the Plan, this Equity Award Agreement and the Terms and Conditions document, including those provisions relating to cancellation and rescission of awards.

2

IBM  

  
 

    TERMS AND CONDITIONS OF YOUR EQUITY
  AWARD: EFFECTIVE JANUARY 1, 2008  
  

  

 
 

Terms and Conditions of Your Equity Award
  
    Table of Contents    
    

	 
	 	Page

	

 	
 	

 
	
1. Introduction	
 	
2
	
2. How to Use This Document	
 	
2
	
3. Definition of Terms	
 	
3
	
4. Provisions that apply to all Award types and all countries	
 	
4
	
5. Provisions that apply to all Award types but not all countries	
 	
5
	
6. Provisions that apply to specific Award types for all countries	
 	

 
	 	
a. Restricted Stock Units ("RSUs") including Cash-Settled RSUs	
 	

6
	 	 	
i. All RSUs	
 	

 
	 	 	
ii. RSUs Other Than Cash-Settled RSUs	
 	

 
	 	 	
iii. Cash-Settled RSUs	
 	

 
	 	
b. Restricted Stock	
 	

8
	 	
c. Stock Options ("Options") and Stock Appreciation Rights ("SARs")	
 	

9
	 	 	
i. All Option and SAR Awards	
 	

 
	 	 	
ii. All SAR Awards	
 	

 
	 	 	
iii. Buy-First Executive Equity Program: Option and SAR Awards	
 	

 
	 	 	
iv. Banded Executive Option Awards	
 	

 
	 	
d. Performance Share Units ("PSUs")	
 	

13
	
7. Provisions that apply to specific countries	
 	
14
	 	
a. India	
 	

 
	 	
b. Slovenia	
 	

 

1

  

 
 

Terms and Conditions of Your Equity Award    
    

Introduction  

        This document provides you with the terms and conditions of your Awards that are in addition to the terms and conditions contained in the Equity Award Agreement
for your specific Award(s). All terms and conditions, whether contained in this document and/or the Equity Award Agreement apply to all Awards granted on or after January 1, 2008. Also, all
Awards are subject to the terms and conditions in the governing plan document; the applicable document is indicated in the Equity Award Agreement and can be found at  http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml. 

        As
an Award recipient, you can see a personalized summary of all your outstanding equity grants in the "Personal statement" section of the IBM executive compensation web site
(http://w3.ibm.com/hr/exec/comp). This site also contains other information about long-term incentive awards, including copies of the
prospectus (the governing plan document). If you have additional questions and you are based in the U.S., you can call the Employee Service Center at 800-796-9876 (or
919-784-8646) weekdays, from 8 a.m. to 8 p.m. Eastern time (TTY available at 800-426-6537 from 8 a.m. to 6 p.m. weekdays).
You may also contact the Compensation Program Manager for your unit or your HR Partner. 

        Smith
Barney currently administers these Awards on IBM's behalf. You can access your equity awards, view your account and transaction history and model transactions on the Smith Barney
web site at https://www.benefitaccess.com (for security reasons, you will need to register for a password first). You can also contact Smith Barney by
calling 1-212-615-7841 (or from within the U.S. at 1-800-IBM-4292) and speak with a Smith Barney representative. 

How to Use This Document  

        Terms and conditions that apply to all awards in all countries can be found on page 4. Review these in addition to any award- or country-specific terms and
conditions that may be listed. Once you have reviewed these general terms, check for any award-specific and/or country-specific terms that apply to your Equity Award Agreement. 

2

 
 
 

Terms and Conditions of Your Equity Award:
  Definition of Terms    
    

        The following are defined terms in the Long-Term Performance Plan and/or your Equity Award Agreement. These are provided for your information. Please
see the Plan prospectus and your Equity Award Agreement for more details. 

        "Awards"—The
grant of any form of stock option, stock appreciation right, stock or cash award, whether granted singly, in combination or in tandem, to a Participant pursuant
to such terms, conditions, performance requirements, limitations and restrictions as the Committee may establish in order to fulfill the objectives of the Plan. 

        "Board"—The
Board of Directors of International Business Machines Corporation ("IBM"). 

        "Capital
Stock"—Authorized and issued or unissued Capital Stock of IBM, at such par value as may be established from time to time. 

        "Committee"—The
committee designated by the Board to administer the Plan. 

        "Company"—IBM
and its affiliates and subsidiaries including subsidiaries of subsidiaries and partnerships and other business ventures in which IBM has an equity interest. 

        "Equity
Award Agreement"—The document provided to the Participant which provides the grant details. 

        "Fair
Market Value"—The average of the high and low prices of Capital Stock on the New York Stock Exchange for the date in question, provided that, if no sales of Capital
Stock were made on said exchange on that date, the average of the high and low prices of Capital Stock as reported for the most recent preceding day on which sales of Capital Stock were made on said
exchange. 

        "Participant"—An
individual to whom an Award has been made under the Plan. Awards may be made to any employee of, or any other individual providing services to, the Company.
However, incentive stock options may be granted only to individuals who are employed by IBM or by a subsidiary corporation (within the meaning of section 424(f) of the Code) of IBM, including a
subsidiary that becomes such after the adoption of the Plan. 

        "Plan"—Any
IBM Long-Term Performance Plan. 

3

 
 
 

Terms and Conditions of Your Equity Award:
  Provisions that apply to all Award types and all countries    
    

        The following terms apply to all countries and for all Award types (Restricted Stock Units, Cash-Settled Restricted Stock Units, Restricted Stock,
Stock Options, Stock Appreciation Rights and Performance Share Units). 

Cancellation and Rescission  

        All determinations regarding enforcement, waiver or modification of the cancellation and rescission and other provisions of the Plan and your Equity Award
Agreement (including the provisions relating to termination of employment, death and disability) shall be made in IBM's sole discretion.
Determinations made under your Equity Award Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly situated. 

        You
agree that the cancellation and rescission provisions of the Plan and your Equity Award Agreement are reasonable and agree not to challenge the reasonableness of such provisions,
even where forfeiture of your Award is the penalty for violation. 

Jurisdiction, Governing Law, Expenses and Taxes  

        Your Equity Award Agreement shall be governed by the laws of the State of New York, without regard to conflicts or choice of law rules or principles. You submit
to the exclusive jurisdiction and venue of the federal or state courts of New York, County of Westchester, to resolve all issues that may arise out of or relate to your Equity Award Agreement. 

        If
any court of competent jurisdiction finds any provision of your Equity Award Agreement, or portion thereof, to be unenforceable, that provision shall be enforced to the maximum extent
permissible so as to effect the intent of the parties, and the remainder of your Equity Award Agreement shall continue in full force and effect. 

        If
you or the Company brings an action to enforce your Equity Award Agreement and the Company prevails, you will pay all costs and expenses incurred by the Company in connection with
that action and in connection with collection, including reasonable attorneys' fees. 

        If
the Company, in its sole discretion, determines that it has incurred or will incur any obligation to withhold taxes as a result of your Award, the Company may withhold the number of
shares that it determines is required to satisfy such liability and/or the Company may withhold amounts from other compensation to the extent required to satisfy such liability under federal, state,
provincial, local, foreign or other tax laws. To the extent that such amounts are not withheld, you will pay to the Company any amount demanded by the Company for the purpose of satisfying such
liability. 

4

 
 
 

Terms and Conditions of Your Equity Award:
  Provisions that apply to all Award types but not all countries    
    

        The following provision applies to all Award types (Restricted Stock Units, Cash-Settled Restricted Stock Units, Restricted Stock, Stock Options,
Stock Appreciation Rights and Performance Share Units) granted to all individuals in all countries except those with a home country of Latin America, specifically: Argentina, Bolivia, Brazil, Chile,
Columbia, Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. 

Non-Solicitation  

        In consideration of your Award, you agree that during your employment with the Company and for two years following the termination of your employment for any
reason, you will not directly or indirectly hire, solicit or make an offer to any employee of the Company to be employed or perform services outside of the Company. Also, you agree that during your
employment with the Company and for one year following the termination of your employment for any reason, you will not directly or indirectly, solicit, for competitive business purposes, any customer
of the Company with which you were involved as part of your job responsibilities during the last year of your employment with the Company. By accepting your Award, you acknowledge that the Company
would suffer irreparable harm if you fail to comply with the foregoing, and that the Company would be entitled to any appropriate relief, including money damages, equitable relief and attorneys' fees. 

5

 
 
 

Terms and Conditions of Your Equity Award:
  Provisions that apply to specific Award types for all countries    
    

a.     Restricted Stock Units ("RSUs") including Cash-Settled RSUs  

i.      All RSUs  

 Termination of Employment including Death, Disability and Leave of Absence  

 Termination of Employment  

        In the event you cease to be an employee (other than on account of death or becoming disabled as described in Section 12 of the Plan) prior to the Vesting
Date(s) set in your Equity Award Agreement, all then unvested RSUs under your Award shall be canceled. 

 Death or Disability  

        Upon your death all RSUs covered by this Agreement shall vest immediately and your Vesting Date shall be your date of death. If you become disabled as described
in Section 12 of the Plan, your RSUs shall continue to vest according to the terms of your Award if you remain continuously employed by the Company while you are disabled. 

 Leave of Absence  

        In the event of a management approved leave of absence, any unvested RSUs shall continue to vest as if you were an active employee of the Company, subject to the
terms in this document and your Equity Award Agreement. 

ii.     RSUs Other Than Cash-Settled RSUs  

 Settlement of Award  

        Subject to Sections 12 and 13 of the Plan and the paragraph entitled "Termination of Employment including Death, Disability and Leave of Absence" above,
upon the Vesting Date(s), or as soon thereafter as may be practicable but in no event later than March 15 of the following calendar year, IBM shall make a payment to Participant in shares of
Capital Stock equal to the number of vested RSUs, net of any applicable tax withholding requirements, and the respective RSUs shall thereupon be canceled. RSUs are not shares of Capital Stock and do
not convey any stockholder rights. 

 Dividend Equivalents  

        IBM shall not pay dividend equivalents on cash or stock settled unvested RSU awards. 

6

 

iii.    Cash-Settled RSUs  

 Settlement of Award  

        Subject to Sections 12 and 13 of the Plan and the paragraph entitled "Termination of Employment including Death, Disability and Leave of Absence" above,
upon the Vesting Date(s), or as soon thereafter as may be practicable but in no event later than March 15 of the following calendar year, the Company shall make a payment to Participant in cash
equal to the Fair Market Value of the vested RSUs, net of any applicable tax withholding requirements, and the respective RSUs shall thereupon be canceled. Fair Market Value will be calculated in your
home country currency at the exchange rate on the applicable Vesting Date using a commercially reasonable measure of exchange rate. RSUs are not shares of Capital Stock and do not convey any
stockholder rights. 

 Dividend Equivalents  

        IBM shall not pay dividend equivalents on cash or stock settled unvested RSU awards. 

7

 

b.     Restricted Stock  

 Settlement of Award  

        Subject to Sections 12 and 13 of the Plan and the paragraph entitled "Termination of Employment including Death, Disability or Leave of Absence" below,
upon the Vesting Date(s), or as soon thereafter as may be practicable but in no event later than March 15 of the following calendar year, the shares of Restricted Stock awarded under your
Equity Award Agreement will be deliverable to you. 

 Termination of Employment including Death, Disability and Leave of Absence  

 Termination of Employment  

        In the event you cease to be an employee (other than on account of death or becoming disabled as described in Section 12 of the Plan) prior to the Vesting
Date(s) in your Equity Award Agreement, all then unvested shares of Restricted Stock under your Award shall be canceled. 

 Death or Disability  

        Upon your death all unvested shares of Restricted Stock covered by your Equity Award Agreement shall vest immediately and your Vesting Date shall be your date of
death. If you become disabled as described in Section 12 of the Plan, your unvested shares of Restricted Stock shall continue to vest according to the terms of your Equity Award Agreement if
you remain continuously employed by the Company while you are disabled. 

 Leave of Absence  

        In the event of a management approved leave of absence, any unvested shares of Restricted Stock shall continue to vest as if you were an active employee of the
Company, subject to the terms in this document and your Equity Award Agreement. 

 Dividends and Other Rights  

        During the period that the Restricted Stock is held by IBM hereunder, such stock will remain on the books of IBM in your name, may be voted by you, and any
applicable dividends shall be paid to you. Shares issued in stock splits or similar events which relate to Restricted Stock then held by IBM in your name shall be issued in your name but shall be held
by IBM under the terms hereof. 

8

 

 Transferability  

        Shares of Restricted Stock awarded under your Equity Award Agreement cannot be sold, assigned, transferred, pledged or otherwise encumbered prior to the vesting
of your Award as set forth in your Equity Award Agreement and any such sale, assignment, transfer, pledge or encumbrance, or any attempt thereof, shall be void. 

c.     Stock Options ("Options") and Stock Appreciation Rights ("SARs")  

i.      All Option and SAR Awards  

 Termination of Employment in the case of Death, Disability and Leave of Absence  

 Death or Disability  

        In the event of your death, all Options or SARs shall become fully exercisable and remain exercisable for their full term. 

        In
the event you become disabled (as described in Section 12 of the Plan), while employed by the Company, any unvested Options or SARs shall continue to vest and be exercisable as
if you were an active employee of the Company. 

 Leave of Absence (other than Buy-First Executive Equity Program)  

        In the event of a management approved leave of absence, any unvested Options or SARs shall continue to vest and be exercisable as if you were an active employee
of the Company, subject to the terms in this document and your Equity Award Agreement. If you return to active status, your Options or SARs will continue to vest and be exercisable in accordance with
their terms. If you do not return to active status, your termination date is your last day of active employment. Your unvested Options or SARs will be canceled immediately and your vested Options or
SARs will be canceled on the later of the 91st day following your last day of active employment or the date of the termination of your leave of absence. 

 Termination of Employment for Cause  

        If your employment terminates for cause, all exercisable and not exercisable Options or SARs are canceled immediately. 

9

 

ii.     All SAR Awards (Including Buy-First Executive Equity Program and Banded Executive Awards)  

 Settlement of Award  

        Upon exercise, the Company shall deliver an aggregate amount, in cash, equal to the excess of the Fair Market Value of a share of Capital Stock on the date of
exercise over the Exercise Price set forth in your Equity Award Agreement multiplied by the number of SARs exercised, net of any taxes. The value of the Award will be calculated in your home country
currency at the exchange rate on the date the Award becomes fully vested using a commercially reasonable measure of exchange rate. 

iii.    Buy-First Executive Equity Program: Option and SAR Awards  

 Termination of Employment other than for Death, Disability, Leave of Absence or for Cause  

 Termination of Employment  

        In the event that your employment with the Company terminates prior to the Vesting Date (other than for cause, Death, or Disability): 

	•
	any
Options or SARs that are not exercisable as of the date your employment terminates shall be canceled immediately; provided, however, if you are a banded executive when
your employment terminates (other than for cause) after you have attained age 55, completed at least 15 years of service with the Company at the time of termination, and completed at least one
year of active service during the period between the Date of Grant and the Vesting Date (the "Vesting Period"), the Options or SARs granted hereunder will be prorated for the number of months
completed as an active executive during the Vesting Period, and the resulting prorated number of Options or SARs shall vest and be exercisable for the full term as in your Equity Award Agreement; and

	•
	any
Options or SARs that are exercisable as of the date your employment terminates (other than for cause) will remain exercisable for 90 days (not three months) after
the date of termination, after which any unexercised Options or SARs are canceled; provided, however, if you are a banded executive when your employment terminates (other than for cause) after you
have attained age 55 and completed at least 15 years of service with the Company at the time of termination, any Options or SARs that are exercisable as of the date your employment terminates
shall remain exercisable for the full term as in your Equity Award Agreement. 

 Leave of Absence  

        In the event of a management approved leave of absence, any unvested Options or SARs shall continue to vest and be exercisable as if you were an 

10

 

active
employee of the Company, subject to the terms in this document and your Equity Award Agreement. If you return to active status, your Options or SARs will continue to vest and be exercisable in
accordance with their terms. If you do not return to active status, 

	•
	your
unvested Options or SARs will be canceled immediately; provided, however, if you are a banded executive when your employment terminates (other than for cause) after you
have attained age 55, completed at least 15 years of service with the Company at the time of termination, and completed at least one year of active service during the Vesting Period, the
Options or SARs granted hereunder will be prorated for the number of months completed as an active executive during the Vesting Period, and the resulting prorated number of Options or SARs shall vest
and be exercisable for the full term as in your Equity Award Agreement; and

	•
	your
vested Options or SARs will be canceled on the later of the 91st day following your last day of active employment or the date of the termination of
your leave of absence; provided, however, if you are a banded executive when your employment terminates (other than for cause) after you have attained age 55 and completed at least 15 years of
service with the Company at the time of termination, any Options or SARs that are exercisable as of the date your employment terminates shall remain exercisable for the full term as in your Equity
Award Agreement. 

11

 

iv.    Banded Executive Option and SAR Awards  

 Termination of Employment other than for Death, Disability or for Cause  

 Termination of Employment  

        If your employment terminates for any reason (other than for cause, Death, Disability or in the case of a management approved Leave of Absence as stated above): 

	•
	any
Options or SARs that are not exercisable as of the date your employment terminates shall be canceled immediately, and

	•
	any
Options or SARs that are exercisable as of the date your employment terminates (other than for cause) will remain exercisable for 90 days (not three months) after
the date of termination, after which any unexercised Options or SARs are canceled; provided, however, if you are a banded executive when your employment with the Company terminates (other than for
cause) after you have attained age 55 and completed at least 15 years of service with the Company at the time of termination, any Options or SARs that are exercisable as of the date your
employment terminates shall remain exercisable for the full term as in your Equity Award Agreement. 

 Leave of Absence  

        In the event of a management approved leave of absence, any unvested Options or SARs shall continue to vest and be exercisable as if you were an active employee
of the Company, subject to the terms in this document and your Equity Award Agreement. If you return to active status, your Options or SARs will continue to vest and be exercisable in accordance with
their terms. If you do not return to active status, 

	•
	your
unvested Options or SARs will be canceled immediately; and

	•
	your
vested Options or SARs will be canceled on the later of the 91st day following your last day of active employment or the date of the termination of
your leave of absence; provided, however, if you are a banded executive when your employment terminates (other than for cause) after you have attained age 55 and completed at least 15 years of
service with the Company at the time of termination, any Options or SARs that are exercisable as of the date your employment terminates shall remain exercisable for the full term as in your Equity
Award Agreement. 

12

 

d. Performance Share Units ("PSUs")   

 Termination of Employment in the case of Death, Disability and Leave of Absence  

 Termination of Employment  

        If you cease to be an active, full-time employee for any reason (other than on account of death or becoming disabled as described in Section 12
of the Plan) before the Date of Payout, all PSUs are canceled immediately; provided, however, if you are a banded executive when your employment terminates (other than for cause) after you have
attained age 55, completed at least 15 years of service with the Company at the time of termination, and completed at least one year of active service during the period between the Date of
Grant and the PSU Vesting Date (the "PSU Vesting Period"), the PSUs granted hereunder will be prorated for the number of months completed as an active executive during the PSU Vesting Period, adjusted
for the performance score, and the resulting prorated number of PSUs shall be paid out at the end of the Performance Period based on IBM performance over the entire applicable Performance Period(s). 

 Death or Disability  

        In the event of your death or if you become disabled (as described in Section 12 of the Plan) prior to the Date of Payout, all PSUs shall be prorated and
the reduced number of PSUs will be earned and paid out at the end of the Performance Period based on IBM performance over the entire applicable Performance Period(s). 

13

  

 
 

Terms and Conditions of Your Equity Award:
  Provisions that apply to specific countries    
    

a.     India  

i.      All Awards  

 Settlement of Awards  

        There will, at no stage, be any remittance of foreign exchange from India on account of the exercise of Options or SARs or vesting of Restricted Stock, RSUs or
PSUs granted under your Award. 

        Vested
Options may be exercised through a cashless exercise procedure involving the simultaneous exercise of the Options and sale of the corresponding shares. The net sale proceeds
(minus exercise cost) will be remitted to India through normal channels and paid to you in local currency. 

        You
will be responsible to furnish the Agent's note to the Reserve Bank of India and advise them of the net income that has accrued to you as a result of the exercise and sale of Options
of exercise of SARs or vesting of Restricted Stocks, RSUs or PSUs granted under your Equity Award Agreement. 

        No
Options or SARs may be exercised if the Fair Market Value on such date is less than or equal to the exercise price. 

        This
provision will apply to all awards previously granted to you under the Plan or prior IBM plans. 

b.     Slovenia  

i.      All Option Awards  

 Remittance of Foreign Exchange  

        There will, at no stage, be any remittance of foreign exchange from Slovenia on account of the exercise of Options granted under your Award. Vested options may be
exercised through a cashless exercise procedure involving the simultaneous exercise of the Options and sale of corresponding shares. The net sale proceeds (minus exercise cost) will be remitted to
Slovenia through normal channels and paid to you in local currency. 

14

QuickLinks

Exhibit 10.1

International Business Machines Corporation ("IBM") Equity Award Agreement

International Business Machines Corporation ("IBM") Equity Award Agreement

International Business Machines Corporation ("IBM") Equity Award Agreement

TERMS AND CONDITIONS OF YOUR EQUITY AWARD: EFFECTIVE JANUARY 1, 2008

Terms and Conditions of Your Equity Award Table of Contents

Terms and Conditions of Your Equity Award

Terms and Conditions of Your Equity Award: Definition of Terms

Terms and Conditions of Your Equity Award: Provisions that apply to all Award types and all countries

Terms and Conditions of Your Equity Award: Provisions that apply to all Award types but not all countries

Terms and Conditions of Your Equity Award: Provisions that apply to specific Award types for all countries

Terms and Conditions of Your Equity Award: Provisions that apply to specific countries

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