Document:

Exhibit 4.1

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

 

0.875% Note due 2030

 

ISIN XS2442764747

COMMON CODE 244276474

 

No.: I-

 

 

INTERNATIONAL BUSINESS MACHINES
CORPORATION, a corporation duly organized and existing under the laws of the State of New York (herein called the “Company”,
which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises
to pay to The Bank of New York Depository (Nominees) Ltd. or registered assigns, the principal sum as set forth in the attached Schedule
of Increases and Decreases, at the office or agency of the Company in the Borough of Manhattan, The City and State of New York, or any
other office or agency designated by the Company for that purpose, on February 9, 2030, in such coin or currency of the member states
of the European Monetary Union that have adopted or that adopt the single currency in accordance with the Treaty establishing the European
Community, as amended by the Treaty on European Union as at the time of payment shall be legal tender for the payment of public and private
debts, and to pay interest, annually on February 9 of each year, commencing February 9, 2023, on said principal sum at said office or
agency, in like coin or currency, at the rate of 0.875% per annum, from the February 9 next preceding the date of this Note to which interest
has been paid, unless the date hereof is a date to which interest has been paid, in which case from the date of this Note, or unless no
interest has been paid on the Notes (as defined on the reverse hereof), in which case from February 9, 2022, until payment of said principal
sum has been made or duly provided for. Notwithstanding the foregoing, if the date hereof is after the record date (as defined below)
and before the following February 9, this Note shall bear interest from such February 9; provided, however, that if the Company shall
default in the payment of interest due on February 9, then this Note shall bear interest from the next preceding February 9 to which interest
has been paid, or, if no interest has been paid on the Notes, from February 9, 2022. The interest so payable on February 9 will, subject
to certain exceptions provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name this Note is registered
at the close of business on the date (the “record date”) that is the clearing system business day (for these purposes, Monday
to Friday inclusive except December 25th and January 1st) immediately preceding each February 9, unless the Company shall default in the
payment of interest due on such interest payment date, in which case such defaulted interest, at the option of the Company, may be paid
to the person in whose name this Note is registered at the close of business on a special record date for the payment of such defaulted
interest established by notice to the registered holders of Notes not less than ten days preceding such special record date or may be
paid in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed. Payment
of interest may, at the option of the Company, be made by check mailed to the registered address of the person entitled thereto. Interest
on this Note will be calculated on the basis

 

     

     

    

 

of the actual number of days in the period for
which interest is being calculated and the actual number of days from and including the last date on which interest was paid on this Note
(or February 9, 2022 if no interest has been paid on this Note), to but excluding the next scheduled interest payment date.

 

Reference is made to the further
provisions of this Note set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though
fully set forth at this place.

 

     

     

    

 

This Note shall not be valid
or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Trustee under the Indenture
referred to on the reverse hereof.

 

IN WITNESS WHEREOF, the Company
has caused this instrument to be duly executed under its corporate seal.

 

	Dated:	INTERNATIONAL BUSINESS MACHINES 

CORPORATION
	 	 
	 	[SEAL]
	 	 
	 	by______________________________
	 	 
	 	 
	 	by______________________________

 

     

     

    

 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

 

This is one of the

Securities of the Series

designated herein issued

under the within-

mentioned Indenture.

 

THE BANK OF NEW YORK MELLON, as Trustee

 

   by ______________________________

 Authorized Signatory

 

     

     

    

 

This security is one of a
duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (hereinafter called the “Securities”),
of the series hereinafter specified, all issued or to be issued under an indenture dated as of October 1, 1993, duly executed and delivered
by the Company to The Bank of New York Mellon, a New York banking corporation, as trustee (hereinafter called the “Trustee”),
as supplemented by the First Supplemental Indenture dated as of December 15, 1995, between the Company and the Trustee, as trustee
(hereinafter called the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the respective rights and duties thereunder of the Trustee, the Company and the holders of the Securities. The Securities
may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest at different rates, may have different conversion prices (if any), may be subject to different redemption provisions,
may be subject to different sinking, purchase or analogous funds, may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Security is one of a series designated as the 0.875% Notes due 2030 of the Company (hereinafter
called the “Notes”) issued under the Indenture.

 

In case an Event of Default
with respect to the Notes, as defined in the Indenture, shall have occurred and be continuing, the principal hereof together with interest
accrued thereon, if any, may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

 

The Indenture contains provisions
permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding of all series to be affected (acting as one class), to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any
manner the rights of the holders of the Securities of such series to be affected; provided, however, that no such supplemental indenture
shall, among other things, (i) change the fixed maturity of the principal of, or any installment of principal of or interest on,
or the currency of payment of, any Security; (ii) reduce the principal amount thereof or the rate of interest thereon or any premium
payable upon the redemption thereof; (iii) impair the right to institute suit for the enforcement of any such payment on or after
the fixed maturity thereof (or, in the case of redemption, on or after the redemption date); (iv) reduce the percentage in principal
amount of the outstanding Securities of any series, the consent of whose holders is required for any such supplemental indenture, or the
consent of whose holders is required for any waiver (of compliance with certain provisions of the Indenture or certain defaults thereunder
and their consequences) provided for in the Indenture; (v) change any obligation of the Company, with respect to outstanding Securities
of a series, to maintain an office or agency in the places and for the purposes specified in the Indenture for such series; or (vi) modify
any of the foregoing provisions or the provisions for the waiver of certain covenants and defaults, except to increase any applicable
percentage of the aggregate principal amount of outstanding Securities the consent of the holders of which is required or to provide with
respect to any particular series the right to condition the effectiveness

 

     

     

    

 

of any supplemental indenture as to that series
on the consent of the holders of a specified percentage of the aggregate principal amount of outstanding Securities of such series or
to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each outstanding
Security affected thereby. It is also provided in the Indenture that the holders of a majority in aggregate principal amount of the Securities
of a series at the time outstanding may on behalf of the holders of all the Securities of such series waive any past default under the
Indenture with respect to such series and its consequences, except a default in the payment of the principal of, premium, if any, or interest,
if any, on any Security of such series or in respect of a covenant or provision which cannot be modified without the consent of the Holder
of each outstanding Security of the series affected. Any such consent or waiver by the holder of this Note shall be conclusive and binding
upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution herefor,
irrespective of whether or not any notation thereof is made upon this Note or such other Notes.

 

No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, if any, and interest on this Note at the place, at the respective times, at the rate and in the
coin or currency herein prescribed.

 

The Indenture permits the
Company to Discharge its obligations with respect to the Notes on the 91st day following the satisfaction of the conditions set forth
in the Indenture, which include the deposit with the Trustee of money or Foreign Government Securities or a combination thereof sufficient
to pay and discharge each installment of principal of (including premium, if any, on) and interest, if any, on the outstanding Notes.

 

If the Company shall, in accordance
with Section 901 of the Indenture, consolidate with or merge into any other corporation or convey or transfer its properties and assets
substantially as an entirety to any Person, the successor shall succeed to, and be substituted for, the Person named as the “Company”
on the face of this Note, all on the terms set forth in the Indenture.

 

The Notes are issuable in
registered form without coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. In the
manner and subject to the limitations provided in the Indenture, but without the payment of any service charge, Notes may be exchanged
for an equal aggregate principal amount of Notes of other authorized denominations at the office or agency of the Company maintained for
such purpose in the Borough of Manhattan, The City and State of New York.

 

The Company will, subject
to the exceptions and limitations set forth below, pay as additional interest on this Note such additional amounts as are necessary in
order that the net payment by the Company or a paying agent of the principal of and interest on the Notes to a holder who is not a United
States person (as defined below), after deduction for any present or future tax, assessment or other governmental charge of the United
States or a political subdivision or taxing authority of or in the United States, imposed by

 

     

     

    

 

withholding with respect to the payment, will
not be less than the amount provided in this Note to be then due and payable; provided, however, that the foregoing obligation to pay
additional amounts shall not apply:

 

(1) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of the holder, or a fiduciary, settlor, beneficiary,
member or shareholder of the holder if the holder is an estate, trust, partnership or corporation, or a person holding a power over an
estate or trust administered by a fiduciary holder, being considered as:

 

(a) being or having
been present or engaged in a trade or business in the United States or having had a permanent establishment in the United States;

 

(b) having a current
or former relationship with the United States, including a relationship as a citizen or resident of the United States;

 

(c) being or having
been a personal holding company, a passive foreign investment company or a controlled foreign corporation with respect to the United States
or a corporation that has accumulated earnings to avoid United States federal income tax;

 

(d) being or having
been a ‘‘10-percent shareholder’’ of the Company as defined in section 871(h)(3) of the United States Internal
Revenue Code of 1986, as amended (the “Code”) or any successor provision; or

 

(e) being a bank receiving
payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(2) to any holder
that is not the sole beneficial owner of the Notes, or a portion of the Notes, or that is a fiduciary or partnership, but only to the
extent that a beneficiary or settlor with respect to the fiduciary, a beneficial owner or member of the partnership would not have been
entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial
or distributive share of the payment;

 

(3) to any tax,
assessment or other governmental charge that is imposed otherwise or withheld solely by reason of a failure of the holder or any other
person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity
or connection with the United States of the holder or beneficial owner of the Notes, if compliance is required by statute, by regulation
of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as a precondition
to exemption from such tax, assessment or other governmental charge;

 

     

     

    

 

(4) to any tax,
assessment or other governmental charge that is imposed otherwise than by withholding by the Company or a paying agent from the payment;

 

(5) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of a change in law, regulation or administrative
or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs
later;

 

(6) to any estate,
inheritance, gift, sales, excise, transfer, wealth or personal property tax or similar tax, assessment or other governmental charge;

 

(7) to any tax,
assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of or interest on any
Notes, if such payment can be made without such withholding by any other paying agent;

 

(8) to any taxes
that are imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections),
any Treasury regulations promulgated thereunder, any official interpretations thereof or any agreements entered into in connection with
the implementation thereof;

 

(9) with respect
to any payment to the extent such payment could have been made without such deduction or withholding if the holder or beneficial owner
of the Notes had presented the Notes for payment (where presentation is permitted or required for payment) within 30 days after the date
on which such payment became due and payable or date on which payment thereof is duly provided for, whichever is later, except for additional
amounts with respect to taxes that would have been imposed had the Holder or beneficial owner presented the Notes for payment within such
30-day period; and

 

(10) in the case
of any combination of items (1), (2), (3), (4), (5), (6), (7), (8) and (9).

 

This Note is subject in all
cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to this Note. Except as specifically
provided in this Note, the Company shall not be required to make any payment with respect to any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of, or in any government or political subdivision.

 

As used in this Note, the
term “United States” means the United States of America (including the states and the District of Columbia) and its territories,
possessions and other areas subject to its jurisdiction, and the term “United States person” means any individual who is a
citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the
United States, any state of the United States or the District of Columbia (other than a partnership that is not treated as a

 

     

     

    

 

United States person under any applicable Treasury
regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless of its source.

 

If, as a result of any change
in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any political subdivision
or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or
interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after February
2, 2022, the Company becomes, or based upon a written opinion of independent counsel selected by the Company, will become obligated to
pay additional amounts as described above with respect to this Note, then the Company may at its option redeem, in whole, but not in part,
this Note on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of its principal amount, together
with interest accrued but unpaid on this Note to the date fixed for redemption.

 

The Notes will be redeemable,
as a whole or in part, at the Company’s option, at any time or from time to time, on at least 10 days, but not more than 60 days,
prior notice to the holders of the Notes (by mail, electronic delivery or otherwise in accordance with the depositary’s procedures).
Prior to the Par Call Date, as defined below, the redemption price for the Notes will be equal to the greater of:

 

		•	100% of the principal amount of the Notes to be redeemed; and

 

		•	the sum of the present values of the Remaining Scheduled Payments, as defined below, discounted, on an
annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate, as defined below, plus 20 basis points,

 

plus, in each case, accrued
and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date.

 

On and after the Par Call
Date, the redemption price for the Notes will be equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid
interest to, but excluding, the Redemption Date.

 

“Business Day”
means any day other than a Saturday or Sunday that is (1) not a day on which banking institutions in the City of New York or the City
of London are authorized or required by law or executive order to close and (2) on which the Trans-European Automated Real-time Gross
Settlement Express Transfer system (the TARGET2 system), or any successor thereto, operates.

 

“Comparable Government
Bond Rate” means the yield to maturity, expressed as a percentage (rounded to three decimal places, 0.0005 being rounded upwards),
on the third Business Day prior to the date fixed for redemption, of the Comparable Government Bond, as defined below, on the basis of
the middle market price of such Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined
by an Independent Investment Banker, as defined below.

 

     

     

    

 

“Comparable Government
Bond” with respect to any Comparable Government Bond Rate calculation means a German government bond selected by an Independent
Investment Banker as having a maturity closest to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the
Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities having a maturity closest to such remaining term of the Notes, or if such Independent
Investment Banker in its discretion considers that such similar bond is not in issue, such other German government bond as such Independent
Investment Banker may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company,
determine to be appropriate for determining the Comparable Government Bond Rate for the Notes.

 

“Independent Investment
Banker” means one of the Reference Bond Dealers, to be appointed by the Company.

 

“Par Call Date”
means November 9, 2029 (three months prior to the maturity date of the Notes).

 

“Reference Bond Dealer”
means each of Barclays Bank PLC, Citigroup Global Markets Limited, HSBC Bank plc, Merrill Lynch International, Mizuho International plc
and SMBC Nikko Capital Markets Limited and their respective successors or a Primary Bond Dealer selected by any of them, and their respective
successors; provided however, that if any of the foregoing shall cease to be a broker or dealer of, and/or market maker in, German government
bonds (a “Primary Bond Dealer”), the Company will substitute therefor another nationally recognized investment banking firm
that is a Primary Bond Dealer.

 

“Remaining Scheduled
Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest
thereon that would be due after the related Redemption Date but for such redemption (assuming, for this purpose, that the Notes matured
on the Par Call Date); provided however, that, if such Redemption Date is not an interest payment date with respect to such Note, the
amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon
to such Redemption Date.

 

The Company will notify the
Trustee of the redemption price promptly after the calculation thereof and the Trustee shall not be responsible or liable for any calculation
of the redemption price or of any component thereof.

 

On and after the Redemption
Date, interest will cease to accrue on the Notes or any portion thereof called for redemption (unless we default in the payment of the
redemption price and accrued and unpaid interest). On or before the Redemption Date, we will deposit with a paying agent (or the Trustee)
money sufficient to pay the redemption price of and accrued and unpaid interest on the Notes to be redeemed on that date. If fewer than
all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by a method the Trustee deems to be fair
and appropriate.

 

     

     

    

 

Upon due presentation for
registration of transfer of this Note at the office or agency of the Company for such registration in the Borough of Manhattan, The City
and State of New York, or any other office or agency designated by the Company for such purpose, a new Note or Notes of authorized denominations
for an equal aggregate principal amount will be issued to the transferee in exchange herefor, subject to the limitations provided in the
Indenture, without charge except for any tax or other governmental charge imposed in connection therewith.

 

Prior to due presentment for
registration of transfer of this Note, the Company, the Trustee and any agent of the Company or the Trustee may deem and treat the registered
holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue) for the purpose of receiving payment of the
principal of, premium, if any, and interest on this Note, as herein provided, and for all other purposes, and neither the Company nor
the Trustee nor any agent of the Company or the Trustee shall be affected by any notice of the contrary. All payments made to or upon
the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability for moneys
payable on this Note.

 

No recourse for the payment
of the principal of, premium, if any, or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse
under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in any Note,
or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer or director,
as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.
Unless otherwise defined in this Note, all terms used in this Note which are defined in the Indenture shall have the meanings assigned
to them in the Indenture.

 

THIS NOTE SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK

 

     

     

    

 

SCHEDULE OF INCREASES OR DECREASES

 

The initial principal amount of this Global Note
is €                   . The following increases or decreases in this Global Note have been made:

 

	
    Date of

    Exchange

     
	Amount of decrease in

 Principal  Amount of this

 Global Note	Amount of increase in

 Principal Amount of this

 Global Note	Principal amount of this

 Global Note following such

 decrease or increase	Signature of authorized 

signatory of Trustee or

 Securities Custodian
	 	 	 	 	 

 

     

     

    

 

 

Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the issuer or
its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or
in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

 

0.875% Note due 2030

 

CUSIP 459200 KQ3

No.: DTC-

 

 

INTERNATIONAL BUSINESS MACHINES
CORPORATION, a corporation duly organized and existing under the laws of the State of New York (herein called the “Company”,
which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises
to pay to Cede & Co. or registered assigns, the principal sum as set forth in the attached Schedule of Increases and Decreases, at
the office or agency of the Company in the Borough of Manhattan, The City and State of New York, or any other office or agency designated
by the Company for that purpose, on February 9, 2030, in such coin or currency of the member states of the European Monetary Union that
have adopted or that adopt the single currency in accordance with the Treaty establishing the European Community, as amended by the Treaty
on European Union as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, annually
on February 9 of each year, commencing February 9, 2023, on said principal sum at said office or agency, in like coin or currency, at
the rate of 0.875% per annum, from the February 9 next preceding the date of this Note to which interest has been paid, unless the date
hereof is a date to which interest has been paid, in which case from the date of this Note, or unless no interest has been paid on the
Notes (as defined on the reverse hereof), in which case from February 9, 2022, until payment of said principal sum has been made or duly
provided for. Notwithstanding the foregoing, if the date hereof is after the record date (as defined below) and before the following February
9, this Note shall bear interest from such February 9; provided, however, that if the Company shall default in the payment of interest
due on February 9, then this Note shall bear interest from the next preceding February 9 to which interest has been paid, or, if no interest
has been paid on the Notes, from February 9, 2022. The interest so payable on February 9 will, subject to certain exceptions provided
in the Indenture referred to on the reverse hereof, be paid to the

 

     

     

    

 

person in whose name this Note is registered at
the close of business on the date (the “record date”) that is the clearing system business day (for these purposes, Monday
to Friday inclusive except December 25th and January 1st) immediately preceding each February 9, unless the Company shall default in the
payment of interest due on such interest payment date, in which case such defaulted interest, at the option of the Company, may be paid
to the person in whose name this Note is registered at the close of business on a special record date for the payment of such defaulted
interest established by notice to the registered holders of Notes not less than ten days preceding such special record date or may be
paid in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed. Payment
of interest may, at the option of the Company, be made by check mailed to the registered address of the person entitled thereto. Interest
on this Note will be calculated on the basis of the actual number of days in the period for which interest is being calculated and the
actual number of days from and including the last date on which interest was paid on this Note (or February 9, 2022 if no interest has
been paid on this Note), to but excluding the next scheduled interest payment date.

 

Reference is made to the further
provisions of this Note set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though
fully set forth at this place.

 

    2

     

    

 

This Note shall not be valid
or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Trustee under the Indenture
referred to on the reverse hereof.

 

IN WITNESS WHEREOF, the Company
has caused this instrument to be duly executed under its corporate seal.

 

	Dated:	INTERNATIONAL BUSINESS MACHINES

                                  CORPORATION
	 	 
	 	[SEAL]
	 	 
	 	by                                                         
	 	 
	 	 
	 	by                                                          

 

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TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

 

This is one of the

Securities of the Series

designated herein issued

under the within-

mentioned Indenture.

 

THE BANK OF NEW YORK MELLON, as Trustee

 

 

  by ______________________________

Authorized Signatory

 

    4

     

    

 

This security is one of a
duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (hereinafter called the “Securities”),
of the series hereinafter specified, all issued or to be issued under an indenture dated as of October 1, 1993, duly executed and delivered
by the Company to The Bank of New York Mellon, a New York banking corporation, as trustee (hereinafter called the “Trustee”),
as supplemented by the First Supplemental Indenture dated as of December 15, 1995, between the Company and the Trustee, as trustee
(hereinafter called the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the respective rights and duties thereunder of the Trustee, the Company and the holders of the Securities. The Securities
may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest at different rates, may have different conversion prices (if any), may be subject to different redemption provisions,
may be subject to different sinking, purchase or analogous funds, may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Security is one of a series designated as the 0.875% Notes due 2030 of the Company (hereinafter
called the “Notes”) issued under the Indenture.

 

In case an Event of Default
with respect to the Notes, as defined in the Indenture, shall have occurred and be continuing, the principal hereof together with interest
accrued thereon, if any, may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

 

The Indenture contains provisions
permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding of all series to be affected (acting as one class), to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any
manner the rights of the holders of the Securities of such series to be affected; provided, however, that no such supplemental indenture
shall, among other things, (i) change the fixed maturity of the principal of, or any installment of principal of or interest on,
or the currency of payment of, any Security; (ii) reduce the principal amount thereof or the rate of interest thereon or any premium
payable upon the redemption thereof; (iii) impair the right to institute suit for the enforcement of any such payment on or after
the fixed maturity thereof (or, in the case of redemption, on or after the redemption date); (iv) reduce the percentage in principal
amount of the outstanding Securities of any series, the consent of whose holders is required for any such supplemental indenture, or the
consent of whose holders is required for any waiver (of compliance with certain provisions of the Indenture or certain defaults thereunder
and their consequences) provided for in the Indenture; (v) change any obligation of the Company, with respect to outstanding Securities
of a series, to maintain an office or agency in the places and for the purposes specified in the Indenture for such series; or (vi) modify
any of the foregoing provisions or the provisions for the waiver of certain covenants and defaults, except to increase any applicable
percentage of the aggregate principal amount of outstanding Securities the consent of the holders of which is required or to provide with
respect to any particular series the right to condition the effectiveness

 

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of any supplemental indenture as to that series
on the consent of the holders of a specified percentage of the aggregate principal amount of outstanding Securities of such series or
to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each outstanding
Security affected thereby. It is also provided in the Indenture that the holders of a majority in aggregate principal amount of the Securities
of a series at the time outstanding may on behalf of the holders of all the Securities of such series waive any past default under the
Indenture with respect to such series and its consequences, except a default in the payment of the principal of, premium, if any, or interest,
if any, on any Security of such series or in respect of a covenant or provision which cannot be modified without the consent of the Holder
of each outstanding Security of the series affected. Any such consent or waiver by the holder of this Note shall be conclusive and binding
upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution herefor,
irrespective of whether or not any notation thereof is made upon this Note or such other Notes.

 

No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, if any, and interest on this Note at the place, at the respective times, at the rate and in the
coin or currency herein prescribed.

 

The Indenture permits the
Company to Discharge its obligations with respect to the Notes on the 91st day following the satisfaction of the conditions set forth
in the Indenture, which include the deposit with the Trustee of money or Foreign Government Securities or a combination thereof sufficient
to pay and discharge each installment of principal of (including premium, if any, on) and interest, if any, on the outstanding Notes.

 

If the Company shall, in accordance
with Section 901 of the Indenture, consolidate with or merge into any other corporation or convey or transfer its properties and assets
substantially as an entirety to any Person, the successor shall succeed to, and be substituted for, the Person named as the “Company”
on the face of this Note, all on the terms set forth in the Indenture.

 

The Notes are issuable in
registered form without coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. In the
manner and subject to the limitations provided in the Indenture, but without the payment of any service charge, Notes may be exchanged
for an equal aggregate principal amount of Notes of other authorized denominations at the office or agency of the Company maintained for
such purpose in the Borough of Manhattan, The City and State of New York.

 

The Company will, subject
to the exceptions and limitations set forth below, pay as additional interest on this Note such additional amounts as are necessary in
order that the net payment by the Company or a paying agent of the principal of and interest on the Notes to a holder who is not a United
States person (as defined below), after deduction for any present or future tax, assessment or other governmental charge of the United
States or a political subdivision or taxing authority of or in the United States, imposed by

 

    6

     

    

 

withholding with respect to the payment, will
not be less than the amount provided in this Note to be then due and payable; provided, however, that the foregoing obligation to pay
additional amounts shall not apply:

 

(1) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of the holder, or a fiduciary, settlor, beneficiary,
member or shareholder of the holder if the holder is an estate, trust, partnership or corporation, or a person holding a power over an
estate or trust administered by a fiduciary holder, being considered as:

 

(a) being or having
been present or engaged in a trade or business in the United States or having had a permanent establishment in the United States;

 

(b) having a current
or former relationship with the United States, including a relationship as a citizen or resident of the United States;

 

(c) being or having
been a personal holding company, a passive foreign investment company or a controlled foreign corporation with respect to the United States
or a corporation that has accumulated earnings to avoid United States federal income tax;

 

(d) being or having
been a ‘‘10-percent shareholder’’ of the Company as defined in section 871(h)(3) of the United States Internal
Revenue Code of 1986, as amended (the “Code”) or any successor provision; or

 

(e) being a bank receiving
payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(2) to any holder
that is not the sole beneficial owner of the Notes, or a portion of the Notes, or that is a fiduciary or partnership, but only to the
extent that a beneficiary or settlor with respect to the fiduciary, a beneficial owner or member of the partnership would not have been
entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial
or distributive share of the payment;

 

(3) to any tax,
assessment or other governmental charge that is imposed otherwise or withheld solely by reason of a failure of the holder or any other
person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity
or connection with the United States of the holder or beneficial owner of the Notes, if compliance is required by statute, by regulation
of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as a precondition
to exemption from such tax, assessment or other governmental charge;

 

    7

     

    

 

(4) to any tax,
assessment or other governmental charge that is imposed otherwise than by withholding by the Company or a paying agent from the payment;

 

(5) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of a change in law, regulation or administrative
or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs
later;

 

(6) to any estate,
inheritance, gift, sales, excise, transfer, wealth or personal property tax or similar tax, assessment or other governmental charge;

 

(7) to any tax,
assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of or interest on any
Notes, if such payment can be made without such withholding by any other paying agent;

 

(8) to any taxes
that are imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections),
any Treasury regulations promulgated thereunder, any official interpretations thereof or any agreements entered into in connection with
the implementation thereof;

 

(9) with respect
to any payment to the extent such payment could have been made without such deduction or withholding if the holder or beneficial owner
of the Notes had presented the Notes for payment (where presentation is permitted or required for payment) within 30 days after the date
on which such payment became due and payable or date on which payment thereof is duly provided for, whichever is later, except for additional
amounts with respect to taxes that would have been imposed had the Holder or beneficial owner presented the Notes for payment within such
30-day period; and

 

(10) in the case
of any combination of items (1), (2), (3), (4), (5), (6), (7), (8) and (9).

 

This Note is subject in all
cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to this Note. Except as specifically
provided in this Note, the Company shall not be required to make any payment with respect to any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of, or in any government or political subdivision.

 

As used in this Note, the
term “United States” means the United States of America (including the states and the District of Columbia) and its territories,
possessions and other areas subject to its jurisdiction, and the term “United States person” means any individual who is a
citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the
United States, any state of the United States or the District of Columbia (other than a partnership that is not treated as a

 

    8

     

    

 

United States person under any applicable Treasury
regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless of its source.

 

If, as a result of any change
in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any political subdivision
or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or
interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after February
2, 2022, the Company becomes, or based upon a written opinion of independent counsel selected by the Company, will become obligated to
pay additional amounts as described above with respect to this Note, then the Company may at its option redeem, in whole, but not in part,
this Note on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of its principal amount, together
with interest accrued but unpaid on this Note to the date fixed for redemption.

 

The Notes will be redeemable,
as a whole or in part, at the Company’s option, at any time or from time to time, on at least 10 days, but not more than 60 days,
prior notice to the holders of the Notes (by mail, electronic delivery or otherwise in accordance with the depositary’s procedures).
Prior to the Par Call Date, as defined below, the redemption price for the Notes will be equal to the greater of:

 

		•	100% of the principal amount of the Notes to be redeemed; and

 

		•	the sum of the present values of the Remaining Scheduled Payments, as defined below, discounted, on an
annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate, as defined below, plus 20 basis points,

 

plus, in each case, accrued
and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date.

 

On and after the Par Call
Date, the redemption price for the Notes will be equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid
interest to, but excluding, the Redemption Date.

 

“Business Day”
means any day other than a Saturday or Sunday that is (1) not a day on which banking institutions in the City of New York or the City
of London are authorized or required by law or executive order to close and (2) on which the Trans-European Automated Real-time Gross
Settlement Express Transfer system (the TARGET2 system), or any successor thereto, operates.

 

“Comparable Government
Bond Rate” means the yield to maturity, expressed as a percentage (rounded to three decimal places, 0.0005 being rounded upwards),
on the third Business Day prior to the date fixed for redemption, of the Comparable Government Bond, as defined below, on the basis of
the middle market price of such Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined
by an Independent Investment Banker, as defined below.

 

    9

     

    

 

“Comparable Government
Bond” with respect to any Comparable Government Bond Rate calculation means a German government bond selected by an Independent
Investment Banker as having a maturity closest to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the
Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities having a maturity closest to such remaining term of the Notes, or if such Independent
Investment Banker in its discretion considers that such similar bond is not in issue, such other German government bond as such Independent
Investment Banker may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company,
determine to be appropriate for determining the Comparable Government Bond Rate for the Notes.

 

“Independent Investment
Banker” means one of the Reference Bond Dealers, to be appointed by the Company.

 

“Par Call Date”
means November 9, 2029 (three months prior to the maturity date of the Notes).

 

“Reference Bond Dealer”
means each of Barclays Bank PLC, Citigroup Global Markets Limited, HSBC Bank plc, Merrill Lynch International, Mizuho International plc
and SMBC Nikko Capital Markets Limited and their respective successors or a Primary Bond Dealer selected by any of them, and their respective
successors; provided however, that if any of the foregoing shall cease to be a broker or dealer of, and/or market maker in, German government
bonds (a “Primary Bond Dealer”), the Company will substitute therefor another nationally recognized investment banking firm
that is a Primary Bond Dealer.

 

“Remaining Scheduled
Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest
thereon that would be due after the related Redemption Date but for such redemption (assuming, for this purpose, that the Notes matured
on the Par Call Date); provided however, that, if such Redemption Date is not an interest payment date with respect to such Note, the
amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon
to such Redemption Date.

 

The Company will notify the
Trustee of the redemption price promptly after the calculation thereof and the Trustee shall not be responsible or liable for any calculation
of the redemption price or of any component thereof.

 

On and after the Redemption
Date, interest will cease to accrue on the Notes or any portion thereof called for redemption (unless we default in the payment of the
redemption price and accrued and unpaid interest). On or before the Redemption Date, we will deposit with a paying agent (or the Trustee)
money sufficient to pay the redemption price of and accrued and unpaid interest on the Notes to be redeemed on that date. If fewer than
all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by a method the Trustee deems to be fair
and appropriate.

 

    10

     

    

 

Upon due presentation for
registration of transfer of this Note at the office or agency of the Company for such registration in the Borough of Manhattan, The City
and State of New York, or any other office or agency designated by the Company for such purpose, a new Note or Notes of authorized denominations
for an equal aggregate principal amount will be issued to the transferee in exchange herefor, subject to the limitations provided in the
Indenture, without charge except for any tax or other governmental charge imposed in connection therewith.

 

Prior to due presentment for
registration of transfer of this Note, the Company, the Trustee and any agent of the Company or the Trustee may deem and treat the registered
holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue) for the purpose of receiving payment of the
principal of, premium, if any, and interest on this Note, as herein provided, and for all other purposes, and neither the Company nor
the Trustee nor any agent of the Company or the Trustee shall be affected by any notice of the contrary. All payments made to or upon
the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability for moneys
payable on this Note.

 

No recourse for the payment
of the principal of, premium, if any, or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse
under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in any Note,
or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer or director,
as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.
Unless otherwise defined in this Note, all terms used in this Note which are defined in the Indenture shall have the meanings assigned
to them in the Indenture.

 

THIS NOTE SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK

 

    11

     

    

 

SCHEDULE OF INCREASES OR DECREASES

 

The initial principal amount of this Global Note
is €              . The following increases or decreases in this Global Note have been made:

 

	
    Date of

    Exchange

     
	Amount of decrease in

 Principal  Amount of this

 Global Note	Amount of increase in 

Principal Amount of this 

Global Note	Principal amount of this

 Global Note following such

 decrease or increase	Signature of authorized

 signatory of Trustee or

 Securities Custodian
	 	 	 	 	 

 

    12Exhibit 4.2

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

 

1.250% Note due 2034

 

ISIN XS2442765124

COMMON CODE 244276512

 

No.: I-

 

 

INTERNATIONAL BUSINESS MACHINES
CORPORATION, a corporation duly organized and existing under the laws of the State of New York (herein called the “Company”,
which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises
to pay to The Bank of New York Depository (Nominees) Ltd. or registered assigns, the principal sum as set forth in the attached Schedule
of Increases and Decreases, at the office or agency of the Company in the Borough of Manhattan, The City and State of New York, or any
other office or agency designated by the Company for that purpose, on February 9, 2034, in such coin or currency of the member states
of the European Monetary Union that have adopted or that adopt the single currency in accordance with the Treaty establishing the European
Community, as amended by the Treaty on European Union as at the time of payment shall be legal tender for the payment of public and private
debts, and to pay interest, annually on February 9 of each year, commencing February 9, 2023, on said principal sum at said office or
agency, in like coin or currency, at the rate of 1.250% per annum, from the February 9 next preceding the date of this Note to which
interest has been paid, unless the date hereof is a date to which interest has been paid, in which case from the date of this Note, or
unless no interest has been paid on the Notes (as defined on the reverse hereof), in which case from February 9, 2022, until payment
of said principal sum has been made or duly provided for. Notwithstanding the foregoing, if the date hereof is after the record date
(as defined below) and before the following February 9, this Note shall bear interest from such February 9; provided, however, that if
the Company shall default in the payment of interest due on February 9, then this Note shall bear interest from the next preceding February
9 to which interest has been paid, or, if no interest has been paid on the Notes, from February 9, 2022. The interest so payable on February
9 will, subject to certain exceptions provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name
this Note is registered at the close of business on the date (the “record date”) that is the clearing system business day
(for these purposes, Monday to Friday inclusive except December 25th and January 1st) immediately preceding each February 9, unless the
Company shall default in the payment of interest due on such interest payment date, in which case such defaulted interest, at the option
of the Company, may be paid to the person in whose name this Note is registered at the close of business on a special record date for
the payment of such defaulted interest established by notice to the registered holders of Notes not less than ten days preceding such
special record date or may be paid in any other lawful manner not inconsistent with the requirements of any securities exchange on which
the Notes may be listed. Payment of interest may, at the option of the Company, be made by check mailed to the registered address of
the person entitled thereto. Interest on this Note will be calculated on the basis

 

     

     

    

 

of the actual number of days in the period for
which interest is being calculated and the actual number of days from and including the last date on which interest was paid on this Note
(or February 9, 2022 if no interest has been paid on this Note), to but excluding the next scheduled interest payment date.

 

Reference is made to the further
provisions of this Note set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though
fully set forth at this place.

 

     

     

    

 

This Note shall not be valid
or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Trustee under the Indenture
referred to on the reverse hereof.

 

IN WITNESS WHEREOF, the Company
has caused this instrument to be duly executed under its corporate seal.

 

	Dated:	INTERNATIONAL BUSINESS MACHINES CORPORATION
	 	 
	 	[SEAL]
	 	 
	 	by______________________________
	 	 
	 	 
	 	 
	 	by______________________________

 

     

     

    

 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

 

This is one of the

Securities of the Series

designated herein issued

under the within-

mentioned Indenture.

 

 

THE BANK OF NEW YORK MELLON, as Trustee

 

 

 

	 	by  		 
	 	 	Authorized Signatory	 

 

     

     

    

 

This security is one of a
duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (hereinafter called the “Securities”),
of the series hereinafter specified, all issued or to be issued under an indenture dated as of October 1, 1993, duly executed and delivered
by the Company to The Bank of New York Mellon, a New York banking corporation, as trustee (hereinafter called the “Trustee”),
as supplemented by the First Supplemental Indenture dated as of December 15, 1995, between the Company and the Trustee, as trustee
(hereinafter called the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the respective rights and duties thereunder of the Trustee, the Company and the holders of the Securities. The Securities
may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest at different rates, may have different conversion prices (if any), may be subject to different redemption provisions,
may be subject to different sinking, purchase or analogous funds, may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Security is one of a series designated as the 1.250% Notes due 2034 of the Company (hereinafter
called the “Notes”) issued under the Indenture.

 

In case an Event of Default
with respect to the Notes, as defined in the Indenture, shall have occurred and be continuing, the principal hereof together with interest
accrued thereon, if any, may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

 

The Indenture contains provisions
permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding of all series to be affected (acting as one class), to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any
manner the rights of the holders of the Securities of such series to be affected; provided, however, that no such supplemental indenture
shall, among other things, (i) change the fixed maturity of the principal of, or any installment of principal of or interest on,
or the currency of payment of, any Security; (ii) reduce the principal amount thereof or the rate of interest thereon or any premium
payable upon the redemption thereof; (iii) impair the right to institute suit for the enforcement of any such payment on or after
the fixed maturity thereof (or, in the case of redemption, on or after the redemption date); (iv) reduce the percentage in principal
amount of the outstanding Securities of any series, the consent of whose holders is required for any such supplemental indenture, or the
consent of whose holders is required for any waiver (of compliance with certain provisions of the Indenture or certain defaults thereunder
and their consequences) provided for in the Indenture; (v) change any obligation of the Company, with respect to outstanding Securities
of a series, to maintain an office or agency in the places and for the purposes specified in the Indenture for such series; or (vi) modify
any of the foregoing provisions or the provisions for the waiver of certain covenants and defaults, except to increase any applicable
percentage of the aggregate principal amount of outstanding Securities the consent of the holders of which is required or to provide with
respect to any particular series the right to condition the effectiveness

 

     

     

    

 

of any supplemental indenture as to that series
on the consent of the holders of a specified percentage of the aggregate principal amount of outstanding Securities of such series or
to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each outstanding
Security affected thereby. It is also provided in the Indenture that the holders of a majority in aggregate principal amount of the Securities
of a series at the time outstanding may on behalf of the holders of all the Securities of such series waive any past default under the
Indenture with respect to such series and its consequences, except a default in the payment of the principal of, premium, if any, or interest,
if any, on any Security of such series or in respect of a covenant or provision which cannot be modified without the consent of the Holder
of each outstanding Security of the series affected. Any such consent or waiver by the holder of this Note shall be conclusive and binding
upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution herefor,
irrespective of whether or not any notation thereof is made upon this Note or such other Notes.

 

No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, if any, and interest on this Note at the place, at the respective times, at the rate and in the
coin or currency herein prescribed.

 

The Indenture permits the
Company to Discharge its obligations with respect to the Notes on the 91st day following the satisfaction of the conditions set forth
in the Indenture, which include the deposit with the Trustee of money or Foreign Government Securities or a combination thereof sufficient
to pay and discharge each installment of principal of (including premium, if any, on) and interest, if any, on the outstanding Notes.

 

If the Company shall, in accordance
with Section 901 of the Indenture, consolidate with or merge into any other corporation or convey or transfer its properties and assets
substantially as an entirety to any Person, the successor shall succeed to, and be substituted for, the Person named as the “Company”
on the face of this Note, all on the terms set forth in the Indenture.

 

The Notes are issuable in
registered form without coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. In the
manner and subject to the limitations provided in the Indenture, but without the payment of any service charge, Notes may be exchanged
for an equal aggregate principal amount of Notes of other authorized denominations at the office or agency of the Company maintained for
such purpose in the Borough of Manhattan, The City and State of New York.

 

The Company will, subject
to the exceptions and limitations set forth below, pay as additional interest on this Note such additional amounts as are necessary in
order that the net payment by the Company or a paying agent of the principal of and interest on the Notes to a holder who is not a United
States person (as defined below), after deduction for any present or future tax, assessment or other governmental charge of the United
States or a political subdivision or taxing authority of or in the United States, imposed by

 

     

     

    

 

withholding with respect to the payment, will
not be less than the amount provided in this Note to be then due and payable; provided, however, that the foregoing obligation to pay
additional amounts shall not apply:

 

(1) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of the holder, or a fiduciary, settlor, beneficiary,
member or shareholder of the holder if the holder is an estate, trust, partnership or corporation, or a person holding a power over an
estate or trust administered by a fiduciary holder, being considered as:

 

(a) being or having
been present or engaged in a trade or business in the United States or having had a permanent establishment in the United States;

 

(b) having a current
or former relationship with the United States, including a relationship as a citizen or resident of the United States;

 

(c) being or having
been a personal holding company, a passive foreign investment company or a controlled foreign corporation with respect to the United States
or a corporation that has accumulated earnings to avoid United States federal income tax;

 

(d) being or having
been a ‘‘10-percent shareholder’’ of the Company as defined in section 871(h)(3) of the United States Internal
Revenue Code of 1986, as amended (the “Code”) or any successor provision; or

 

(e) being a bank receiving
payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(2) to any holder
that is not the sole beneficial owner of the Notes, or a portion of the Notes, or that is a fiduciary or partnership, but only to the
extent that a beneficiary or settlor with respect to the fiduciary, a beneficial owner or member of the partnership would not have been
entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial
or distributive share of the payment;

 

(3) to any tax,
assessment or other governmental charge that is imposed otherwise or withheld solely by reason of a failure of the holder or any other
person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity
or connection with the United States of the holder or beneficial owner of the Notes, if compliance is required by statute, by regulation
of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as a precondition
to exemption from such tax, assessment or other governmental charge;

 

     

     

    

 

(4) to any tax,
assessment or other governmental charge that is imposed otherwise than by withholding by the Company or a paying agent from the payment;

 

(5) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of a change in law, regulation or administrative
or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs
later;

 

(6) to any estate,
inheritance, gift, sales, excise, transfer, wealth or personal property tax or similar tax, assessment or other governmental charge;

 

(7) to any tax,
assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of or interest on any
Notes, if such payment can be made without such withholding by any other paying agent;

 

(8) to any taxes
that are imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections),
any Treasury regulations promulgated thereunder, any official interpretations thereof or any agreements entered into in connection with
the implementation thereof;

 

(9) with respect
to any payment to the extent such payment could have been made without such deduction or withholding if the holder or beneficial owner
of the Notes had presented the Notes for payment (where presentation is permitted or required for payment) within 30 days after the date
on which such payment became due and payable or date on which payment thereof is duly provided for, whichever is later, except for additional
amounts with respect to taxes that would have been imposed had the Holder or beneficial owner presented the Notes for payment within such
30-day period; and

 

(10) in the case
of any combination of items (1), (2), (3), (4), (5), (6), (7), (8) and (9).

 

This Note is subject in all
cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to this Note. Except as specifically
provided in this Note, the Company shall not be required to make any payment with respect to any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of, or in any government or political subdivision.

 

As used in this Note, the
term “United States” means the United States of America (including the states and the District of Columbia) and its territories,
possessions and other areas subject to its jurisdiction, and the term “United States person” means any individual who is a
citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the
United States, any state of the United States or the District of Columbia (other than a partnership that is not treated as a

 

     

     

    

 

United States person under any applicable Treasury
regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless of its source.

 

If, as a result of any change
in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any political subdivision
or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or
interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after February
2, 2022, the Company becomes, or based upon a written opinion of independent counsel selected by the Company, will become obligated to
pay additional amounts as described above with respect to this Note, then the Company may at its option redeem, in whole, but not in part,
this Note on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of its principal amount, together
with interest accrued but unpaid on this Note to the date fixed for redemption.

 

The Notes will be redeemable,
as a whole or in part, at the Company’s option, at any time or from time to time, on at least 10 days, but not more than 60 days,
prior notice to the holders of the Notes (by mail, electronic delivery or otherwise in accordance with the depositary’s procedures).
Prior to the Par Call Date, as defined below, the redemption price for the Notes will be equal to the greater of:

 

		•	100% of the principal amount of the Notes to be redeemed; and

 

		•	the sum of the present values of the Remaining Scheduled Payments, as defined below, discounted, on an
annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate, as defined below, plus 20 basis points,

 

plus, in each case, accrued
and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date.

 

On and after the Par Call
Date, the redemption price for the Notes will be equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid
interest to, but excluding, the Redemption Date.

 

“Business Day”
means any day other than a Saturday or Sunday that is (1) not a day on which banking institutions in the City of New York or the City
of London are authorized or required by law or executive order to close and (2) on which the Trans-European Automated Real-time Gross
Settlement Express Transfer system (the TARGET2 system), or any successor thereto, operates.

 

“Comparable Government
Bond Rate” means the yield to maturity, expressed as a percentage (rounded to three decimal places, 0.0005 being rounded upwards),
on the third Business Day prior to the date fixed for redemption, of the Comparable Government Bond, as defined below, on the basis of
the middle market price of such Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined
by an Independent Investment Banker, as defined below.

 

     

     

    

 

“Comparable Government
Bond” with respect to any Comparable Government Bond Rate calculation means a German government bond selected by an Independent
Investment Banker as having a maturity closest to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the
Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities having a maturity closest to such remaining term of the Notes, or if such Independent
Investment Banker in its discretion considers that such similar bond is not in issue, such other German government bond as such Independent
Investment Banker may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company,
determine to be appropriate for determining the Comparable Government Bond Rate for the Notes.

 

“Independent Investment
Banker” means one of the Reference Bond Dealers, to be appointed by the Company.

 

“Par Call Date”
means November 9, 2033 (three months prior to the maturity date of the Notes).

 

“Reference Bond Dealer”
means each of Barclays Bank PLC, Citigroup Global Markets Limited, HSBC Bank plc, Merrill Lynch International, Mizuho International plc
and SMBC Nikko Capital Markets Limited and their respective successors or a Primary Bond Dealer selected by any of them, and their respective
successors; provided however, that if any of the foregoing shall cease to be a broker or dealer of, and/or market maker in, German government
bonds (a “Primary Bond Dealer”), the Company will substitute therefor another nationally recognized investment banking firm
that is a Primary Bond Dealer.

 

“Remaining Scheduled
Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest
thereon that would be due after the related Redemption Date but for such redemption (assuming, for this purpose, that the Notes matured
on the Par Call Date); provided however, that, if such Redemption Date is not an interest payment date with respect to such Note, the
amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon
to such Redemption Date.

 

The Company will notify the
Trustee of the redemption price promptly after the calculation thereof and the Trustee shall not be responsible or liable for any calculation
of the redemption price or of any component thereof.

 

On and after the Redemption
Date, interest will cease to accrue on the Notes or any portion thereof called for redemption (unless we default in the payment of the
redemption price and accrued and unpaid interest). On or before the Redemption Date, we will deposit with a paying agent (or the Trustee)
money sufficient to pay the redemption price of and accrued and unpaid interest on the Notes to be redeemed on that date. If fewer than
all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by a method the Trustee deems to be fair
and appropriate.

 

     

     

    

 

Upon due presentation for
registration of transfer of this Note at the office or agency of the Company for such registration in the Borough of Manhattan, The City
and State of New York, or any other office or agency designated by the Company for such purpose, a new Note or Notes of authorized denominations
for an equal aggregate principal amount will be issued to the transferee in exchange herefor, subject to the limitations provided in the
Indenture, without charge except for any tax or other governmental charge imposed in connection therewith.

 

Prior to due presentment for
registration of transfer of this Note, the Company, the Trustee and any agent of the Company or the Trustee may deem and treat the registered
holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue) for the purpose of receiving payment of the
principal of, premium, if any, and interest on this Note, as herein provided, and for all other purposes, and neither the Company nor
the Trustee nor any agent of the Company or the Trustee shall be affected by any notice of the contrary. All payments made to or upon
the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability for moneys
payable on this Note.

 

No recourse for the payment
of the principal of, premium, if any, or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse
under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in any Note,
or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer or director,
as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.
Unless otherwise defined in this Note, all terms used in this Note which are defined in the Indenture shall have the meanings assigned
to them in the Indenture.

 

THIS NOTE SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK

 

     

     

    

 

SCHEDULE OF INCREASES OR DECREASES

 

The initial principal amount of this Global Note
is €                . The following increases or decreases in this Global Note have been made:

 

	
    Date of

    Exchange

     
	Amount of decrease
    in 

Principal Amount of this

 Global Note	Amount of increase in

 Principal Amount of this 

Global Note	Principal amount of this 

Global Note following such

 decrease or increase	Signature of authorized

 signatory of Trustee or 

Securities Custodian

 

     

     

    

  

Unless this certificate is
presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the issuer or
its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or
in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

 

1.250% Note due 2034

 

CUSIP 459200 KR1

 

No.: DTC-

 

 

INTERNATIONAL BUSINESS MACHINES
CORPORATION, a corporation duly organized and existing under the laws of the State of New York (herein called the “Company”,
which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises
to pay to Cede & Co. or registered assigns, the principal sum as set forth in the attached Schedule of Increases and Decreases, at
the office or agency of the Company in the Borough of Manhattan, The City and State of New York, or any other office or agency designated
by the Company for that purpose, on February 9, 2034, in such coin or currency of the member states of the European Monetary Union that
have adopted or that adopt the single currency in accordance with the Treaty establishing the European Community, as amended by the Treaty
on European Union as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, annually
on February 9 of each year, commencing February 9, 2023, on said principal sum at said office or agency, in like coin or currency, at
the rate of 1.250% per annum, from the February 9 next preceding the date of this Note to which interest has been paid, unless the date
hereof is a date to which interest has been paid, in which case from the date of this Note, or unless no interest has been paid on the
Notes (as defined on the reverse hereof), in which case from February 9, 2022, until payment of said principal sum has been made or duly
provided for. Notwithstanding the foregoing, if the date hereof is after the record date (as defined below) and before the following February
9, this Note shall bear interest from such February 9; provided, however, that if the Company shall default in the payment of interest
due on February 9, then this Note shall bear interest from the next preceding February 9 to which interest has been paid, or, if no interest
has been paid on the Notes, from February 9, 2022. The interest so payable on February 9 will, subject to certain exceptions provided
in the Indenture referred to on the reverse hereof, be paid to the

 

     

     

    

 

person in whose name this Note is registered at
the close of business on the date (the “record date”) that is the clearing system business day (for these purposes, Monday
to Friday inclusive except December 25th and January 1st) immediately preceding each February 9, unless the Company shall default in the
payment of interest due on such interest payment date, in which case such defaulted interest, at the option of the Company, may be paid
to the person in whose name this Note is registered at the close of business on a special record date for the payment of such defaulted
interest established by notice to the registered holders of Notes not less than ten days preceding such special record date or may be
paid in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed. Payment
of interest may, at the option of the Company, be made by check mailed to the registered address of the person entitled thereto. Interest
on this Note will be calculated on the basis of the actual number of days in the period for which interest is being calculated and the
actual number of days from and including the last date on which interest was paid on this Note (or February 9, 2022 if no interest has
been paid on this Note), to but excluding the next scheduled interest payment date.

 

Reference is made to the further
provisions of this Note set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though
fully set forth at this place.

 

    2 

     

    

 

This Note shall not be valid
or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Trustee under the Indenture
referred to on the reverse hereof.

 

IN WITNESS WHEREOF, the Company
has caused this instrument to be duly executed under its corporate seal.

 

	Dated:	INTERNATIONAL BUSINESS MACHINES 

CORPORATION

 

	 	[SEAL]
	 	 
	 	by	                                                                        
	 	 	 
	 	 	 
	 	 	 
	 	by	                                                                        

 

    3 

     

    

 

TRUSTEE’S CERTIFICATE

OF AUTHENTICATION

 

This is one of the

Securities of the Series

designated herein issued

under the within-

mentioned Indenture.

 

 

 

 

THE BANK OF NEW YORK MELLON, as Trustee

 

 

 

 

	 	by  		 
	 	 	Authorized Signatory	 

 

    4 

     

    

 

This security is one of a
duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (hereinafter called the “Securities”),
of the series hereinafter specified, all issued or to be issued under an indenture dated as of October 1, 1993, duly executed and delivered
by the Company to The Bank of New York Mellon, a New York banking corporation, as trustee (hereinafter called the “Trustee”),
as supplemented by the First Supplemental Indenture dated as of December 15, 1995, between the Company and the Trustee, as trustee
(hereinafter called the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the respective rights and duties thereunder of the Trustee, the Company and the holders of the Securities. The Securities
may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different
times, may bear interest at different rates, may have different conversion prices (if any), may be subject to different redemption provisions,
may be subject to different sinking, purchase or analogous funds, may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Security is one of a series designated as the 1.250% Notes due 2034 of the Company (hereinafter
called the “Notes”) issued under the Indenture.

 

In case an Event of Default
with respect to the Notes, as defined in the Indenture, shall have occurred and be continuing, the principal hereof together with interest
accrued thereon, if any, may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

 

The Indenture contains provisions
permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding of all series to be affected (acting as one class), to execute supplemental indentures adding any provisions
to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any
manner the rights of the holders of the Securities of such series to be affected; provided, however, that no such supplemental indenture
shall, among other things, (i) change the fixed maturity of the principal of, or any installment of principal of or interest on,
or the currency of payment of, any Security; (ii) reduce the principal amount thereof or the rate of interest thereon or any premium
payable upon the redemption thereof; (iii) impair the right to institute suit for the enforcement of any such payment on or after
the fixed maturity thereof (or, in the case of redemption, on or after the redemption date); (iv) reduce the percentage in principal
amount of the outstanding Securities of any series, the consent of whose holders is required for any such supplemental indenture, or the
consent of whose holders is required for any waiver (of compliance with certain provisions of the Indenture or certain defaults thereunder
and their consequences) provided for in the Indenture; (v) change any obligation of the Company, with respect to outstanding Securities
of a series, to maintain an office or agency in the places and for the purposes specified in the Indenture for such series; or (vi) modify
any of the foregoing provisions or the provisions for the waiver of certain covenants and defaults, except to increase any applicable
percentage of the aggregate principal amount of outstanding Securities the consent of the holders of which is required or to provide with
respect to any particular series the right to condition the effectiveness

 

    5 

     

    

 

of any supplemental indenture as to that series
on the consent of the holders of a specified percentage of the aggregate principal amount of outstanding Securities of such series or
to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each outstanding
Security affected thereby. It is also provided in the Indenture that the holders of a majority in aggregate principal amount of the Securities
of a series at the time outstanding may on behalf of the holders of all the Securities of such series waive any past default under the
Indenture with respect to such series and its consequences, except a default in the payment of the principal of, premium, if any, or interest,
if any, on any Security of such series or in respect of a covenant or provision which cannot be modified without the consent of the Holder
of each outstanding Security of the series affected. Any such consent or waiver by the holder of this Note shall be conclusive and binding
upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution herefor,
irrespective of whether or not any notation thereof is made upon this Note or such other Notes.

 

No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, if any, and interest on this Note at the place, at the respective times, at the rate and in the
coin or currency herein prescribed.

 

The Indenture permits the
Company to Discharge its obligations with respect to the Notes on the 91st day following the satisfaction of the conditions set forth
in the Indenture, which include the deposit with the Trustee of money or Foreign Government Securities or a combination thereof sufficient
to pay and discharge each installment of principal of (including premium, if any, on) and interest, if any, on the outstanding Notes.

 

If the Company shall, in accordance
with Section 901 of the Indenture, consolidate with or merge into any other corporation or convey or transfer its properties and assets
substantially as an entirety to any Person, the successor shall succeed to, and be substituted for, the Person named as the “Company”
on the face of this Note, all on the terms set forth in the Indenture.

 

The Notes are issuable in
registered form without coupons in denominations of €100,000 and any integral multiple of €1,000 in excess thereof. In the
manner and subject to the limitations provided in the Indenture, but without the payment of any service charge, Notes may be exchanged
for an equal aggregate principal amount of Notes of other authorized denominations at the office or agency of the Company maintained for
such purpose in the Borough of Manhattan, The City and State of New York.

 

The Company will, subject
to the exceptions and limitations set forth below, pay as additional interest on this Note such additional amounts as are necessary in
order that the net payment by the Company or a paying agent of the principal of and interest on the Notes to a holder who is not a United
States person (as defined below), after deduction for any present or future tax, assessment or other governmental charge of the United
States or a political subdivision or taxing authority of or in the United States, imposed by

 

    6 

     

    

 

withholding with respect to the payment, will
not be less than the amount provided in this Note to be then due and payable; provided, however, that the foregoing obligation to pay
additional amounts shall not apply:

 

(1) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of the holder, or a fiduciary, settlor, beneficiary,
member or shareholder of the holder if the holder is an estate, trust, partnership or corporation, or a person holding a power over an
estate or trust administered by a fiduciary holder, being considered as:

 

(a) being or having
been present or engaged in a trade or business in the United States or having had a permanent establishment in the United States;

 

(b) having a current
or former relationship with the United States, including a relationship as a citizen or resident of the United States;

 

(c) being or having
been a personal holding company, a passive foreign investment company or a controlled foreign corporation with respect to the United States
or a corporation that has accumulated earnings to avoid United States federal income tax;

 

(d) being or having
been a ‘‘10-percent shareholder’’ of the Company as defined in section 871(h)(3) of the United States Internal
Revenue Code of 1986, as amended (the “Code”) or any successor provision; or

 

(e) being a bank receiving
payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

 

(2) to any holder
that is not the sole beneficial owner of the Notes, or a portion of the Notes, or that is a fiduciary or partnership, but only to the
extent that a beneficiary or settlor with respect to the fiduciary, a beneficial owner or member of the partnership would not have been
entitled to the payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial
or distributive share of the payment;

 

(3) to any tax,
assessment or other governmental charge that is imposed otherwise or withheld solely by reason of a failure of the holder or any other
person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity
or connection with the United States of the holder or beneficial owner of the Notes, if compliance is required by statute, by regulation
of the United States Treasury Department or by an applicable income tax treaty to which the United States is a party as a precondition
to exemption from such tax, assessment or other governmental charge;

 

    7 

     

    

 

(4) to any tax,
assessment or other governmental charge that is imposed otherwise than by withholding by the Company or a paying agent from the payment;

 

(5) to any tax,
assessment or other governmental charge that is imposed or withheld solely by reason of a change in law, regulation or administrative
or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs
later;

 

(6) to any estate,
inheritance, gift, sales, excise, transfer, wealth or personal property tax or similar tax, assessment or other governmental charge;

 

(7) to any tax,
assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of or interest on any
Notes, if such payment can be made without such withholding by any other paying agent;

 

(8) to any taxes
that are imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor version of such Sections),
any Treasury regulations promulgated thereunder, any official interpretations thereof or any agreements entered into in connection with
the implementation thereof;

 

(9) with respect
to any payment to the extent such payment could have been made without such deduction or withholding if the holder or beneficial owner
of the Notes had presented the Notes for payment (where presentation is permitted or required for payment) within 30 days after the date
on which such payment became due and payable or date on which payment thereof is duly provided for, whichever is later, except for additional
amounts with respect to taxes that would have been imposed had the Holder or beneficial owner presented the Notes for payment within such
30-day period; and

 

(10) in the case
of any combination of items (1), (2), (3), (4), (5), (6), (7), (8) and (9).

 

This Note is subject in all
cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to this Note. Except as specifically
provided in this Note, the Company shall not be required to make any payment with respect to any tax, assessment or other governmental
charge imposed by any government or a political subdivision or taxing authority of, or in any government or political subdivision.

 

As used in this Note, the
term “United States” means the United States of America (including the states and the District of Columbia) and its territories,
possessions and other areas subject to its jurisdiction, and the term “United States person” means any individual who is a
citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the
United States, any state of the United States or the District of Columbia (other than a partnership that is not treated as a

 

    8 

     

    

 

United States person under any applicable Treasury
regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless of its source.

 

If, as a result of any change
in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any political subdivision
or taxing authority of or in the United States), or any change in, or amendments to, an official position regarding the application or
interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after February
2, 2022, the Company becomes, or based upon a written opinion of independent counsel selected by the Company, will become obligated to
pay additional amounts as described above with respect to this Note, then the Company may at its option redeem, in whole, but not in part,
this Note on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of its principal amount, together
with interest accrued but unpaid on this Note to the date fixed for redemption.

 

The Notes will be redeemable,
as a whole or in part, at the Company’s option, at any time or from time to time, on at least 10 days, but not more than 60 days,
prior notice to the holders of the Notes (by mail, electronic delivery or otherwise in accordance with the depositary’s procedures).
Prior to the Par Call Date, as defined below, the redemption price for the Notes will be equal to the greater of:

 

		•	100% of the principal amount of the Notes to be redeemed; and

 

		•	the sum of the present values of the Remaining Scheduled Payments, as defined below, discounted, on an
annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate, as defined below, plus 20 basis points,

 

plus, in each case, accrued
and unpaid interest on the Notes to be redeemed to, but excluding, the Redemption Date.

 

On and after the Par Call
Date, the redemption price for the Notes will be equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid
interest to, but excluding, the Redemption Date.

 

“Business Day”
means any day other than a Saturday or Sunday that is (1) not a day on which banking institutions in the City of New York or the City
of London are authorized or required by law or executive order to close and (2) on which the Trans-European Automated Real-time Gross
Settlement Express Transfer system (the TARGET2 system), or any successor thereto, operates.

 

“Comparable Government
Bond Rate” means the yield to maturity, expressed as a percentage (rounded to three decimal places, 0.0005 being rounded upwards),
on the third Business Day prior to the date fixed for redemption, of the Comparable Government Bond, as defined below, on the basis of
the middle market price of such Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined
by an Independent Investment Banker, as defined below.

 

    9 

     

    

 

“Comparable Government
Bond” with respect to any Comparable Government Bond Rate calculation means a German government bond selected by an Independent
Investment Banker as having a maturity closest to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the
Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice,
in pricing new issues of corporate debt securities having a maturity closest to such remaining term of the Notes, or if such Independent
Investment Banker in its discretion considers that such similar bond is not in issue, such other German government bond as such Independent
Investment Banker may, with the advice of three brokers of, and/or market makers in, German government bonds selected by the Company,
determine to be appropriate for determining the Comparable Government Bond Rate for the Notes.

 

“Independent Investment
Banker” means one of the Reference Bond Dealers, to be appointed by the Company.

 

“Par Call Date”
means November 9, 2033 (three months prior to the maturity date of the Notes).

 

“Reference Bond Dealer”
means each of Barclays Bank PLC, Citigroup Global Markets Limited, HSBC Bank plc, Merrill Lynch International, Mizuho International plc
and SMBC Nikko Capital Markets Limited and their respective successors or a Primary Bond Dealer selected by any of them, and their respective
successors; provided however, that if any of the foregoing shall cease to be a broker or dealer of, and/or market maker in, German government
bonds (a “Primary Bond Dealer”), the Company will substitute therefor another nationally recognized investment banking firm
that is a Primary Bond Dealer.

 

“Remaining Scheduled
Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest
thereon that would be due after the related Redemption Date but for such redemption (assuming, for this purpose, that the Notes matured
on the Par Call Date); provided however, that, if such Redemption Date is not an interest payment date with respect to such Note, the
amount of the next succeeding scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon
to such Redemption Date.

 

The Company will notify the
Trustee of the redemption price promptly after the calculation thereof and the Trustee shall not be responsible or liable for any calculation
of the redemption price or of any component thereof.

 

On and after the Redemption
Date, interest will cease to accrue on the Notes or any portion thereof called for redemption (unless we default in the payment of the
redemption price and accrued and unpaid interest). On or before the Redemption Date, we will deposit with a paying agent (or the Trustee)
money sufficient to pay the redemption price of and accrued and unpaid interest on the Notes to be redeemed on that date. If fewer than
all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by a method the Trustee deems to be fair
and appropriate.

 

    10 

     

    

 

Upon due presentation for
registration of transfer of this Note at the office or agency of the Company for such registration in the Borough of Manhattan, The City
and State of New York, or any other office or agency designated by the Company for such purpose, a new Note or Notes of authorized denominations
for an equal aggregate principal amount will be issued to the transferee in exchange herefor, subject to the limitations provided in the
Indenture, without charge except for any tax or other governmental charge imposed in connection therewith.

 

Prior to due presentment for
registration of transfer of this Note, the Company, the Trustee and any agent of the Company or the Trustee may deem and treat the registered
holder hereof as the absolute owner of this Note (whether or not this Note shall be overdue) for the purpose of receiving payment of the
principal of, premium, if any, and interest on this Note, as herein provided, and for all other purposes, and neither the Company nor
the Trustee nor any agent of the Company or the Trustee shall be affected by any notice of the contrary. All payments made to or upon
the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability for moneys
payable on this Note.

 

No recourse for the payment
of the principal of, premium, if any, or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse
under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in any Note,
or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer or director,
as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.
Unless otherwise defined in this Note, all terms used in this Note which are defined in the Indenture shall have the meanings assigned
to them in the Indenture.

 

THIS NOTE SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK

 

    11 

     

    

 

SCHEDULE OF INCREASES OR DECREASES

 

The initial principal amount of this Global Note
is €        . The following increases or decreases in this Global Note have been made:

 

	Date of

    Exchange
	Amount of decrease
    in 

Principal  Amount of this 

Global Note	Amount of increase
    in 

Principal Amount of this 

Global Note	Principal amount
    of this

 Global Note following such 

decrease or increase	Signature of authorized

    signatory of Trustee or 

Securities Custodian

 

    12

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