Document:

Exhibit 10.1

 

	
   

  	
   

  	
  International Business Machines Corporation (“IBM”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Equity Award Agreement

  
	
   

  	
   

  	
   

  
	
  Plan

  	
   

  	
  IBM 1999 Long-Term Performance Plan (the “Plan”)

  
	
   

  	
   

  	
   

  
	
  Award Type

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Purpose

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Awarded to

  Home Country

  Global ID

  	
   

  	
  Sample

  United States (USA) [Employee ID]

  [Global ID]

  
	
   

  	
   

  	
   

  
	
  Award Agreement

  	
   

  	
  This Equity Award Agreement, together with the
  “Terms and Conditions of Your Equity Award: Effective May 1, 2009”
  (“Terms and Conditions”) document and the Plan http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml, both
  of which are incorporated herein by reference, together constitute the entire
  agreement between you and IBM with respect to your Award. This Equity Award
  Agreement shall be governed by the laws of the State of New York, without
  regard to conflicts or choice of law rules or principles.

  
	
   

  	
   

  	
   

  
	
  Grant

  	
   

  	
  Date of Grant: [Month
  Date, Year]

  [Exercise Price:  $XX]

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

  
	
   

  	
   

  	
   

  
	
  Vesting

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Options/Units/Shares/SARs

  	
  Date

  
	
   

  	
   

  	
  [number of shares]

  	
  [month date year]

  
	
   

  	
   

  	
  [number of shares]

  	
  [month date year]

  
	
   

  	
   

  	
  [             “             ]

  	
  [             “             ]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Terms and

  Conditions of Your 

  	
   

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

  
	
  Equity Award

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
   

  	
  Cancellation and rescission of awards (also see
  below)

  
	
   

  	
   

  	
  ·

  	
   

  	
  Jurisdiction, governing law, expenses and taxes

  
	
   

  	
   

  	
  ·

  	
   

  	
  Non-solicitation of Company employees and clients,
  if applicable

  
	
   

  	
   

  	
  ·

  	
   

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

  
	
   

  	
   

  	
  ·

  	
   

  	
  Treatment of your Award upon termination of
  employment, including retirement or for cause (also see below)

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Termination of Employment

  	
   

  	
  Your unvested and/or outstanding Award will continue
  to vest and/or remain outstanding upon the termination of employment if all
  of the following criteria are met:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
   

  	
  You are on the performance team, or any successor
  team thereto, at the time of termination of employment;

  
	
   

  	
   

  	
  ·

  	
   

  	
  You have completed at least one year of active
  service since the Award Date of Grant;

  
	
   

  	
   

  	
  ·

  	
   

  	
  You have reached age 55 with 15 years of service at
  the time of termination of employment (age 60 with 15 years of service for
  the Chairman and CEO); and

  
	
   

  	
   

  	
  ·

  	
   

  	
  Appropriate senior management, the Committee or the
  Board, as appropriate, do not exercise their discretion to cancel or
  otherwise limit the vesting or exercise of the Award.

  
						

 

Page 1 of 2

 

	
  Cancellation and Rescission

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Data Privacy, Electronic Delivery

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Extraordinary Compensation

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Accept Your Award

  	
   

  	
  You hereby agree that if you are asked, as a
  consideration for this Award, to sign an agreement relating to noncompetition
  and/or confidential and proprietary information (“Corresponding Agreement”),
  and you do not execute the Corresponding Agreement by the applicable
  deadline, then any acceptance of this Award will be null and void and of no
  effect and this Award shall be cancelled.

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

 

Page 2 of 2

 

	
   

  	
   

  	
  International Business Machines Corporation (“IBM”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Equity Award Agreement

  
	
   

  	
   

  	
   

  
	
  Plan

  	
   

  	
  IBM 1999 Long-Term Performance Plan (the “Plan”)

  
	
   

  	
   

  	
   

  
	
  Award Type

  	
   

  	
  Performance Share Units (PSUs)

  
	
   

  	
   

  	
   

  
	
  Purpose

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Awarded to

  Home Country

  Global ID

  	
   

  	
  Sample

  United States (USA) [Employee ID]

  [Global ID]

  
	
   

  	
   

  	
   

  
	
  Award Agreement

  	
   

  	
  This Equity Award Agreement, together with the
  “Terms and Conditions of Your Equity Award: Effective May 1,
  2009” (“Terms and Conditions”) document and the Plan http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml,
  both of which are incorporated herein by reference, together constitute the
  entire agreement between you and IBM with respect to your Award. This Equity
  Award Agreement shall be governed by the laws of the State of New York,
  without regard to conflicts or choice of law rules or principles.

  
	
   

  	
   

  	
   

  
	
  Grant

  	
   

  	
  Date of Grant

  	
  # PSUs Awarded

  	
  Performance Period

  	
  Date of Payout

  
	
   

  	
   

  	
  [month day year]

  	
  [amount]

  	
  [dates]

  	
  [date]

  
	
   

  	
   

  	
  [month day year]

  	
  [amount]

  	
  [dates]

  	
  [date]

  
	
   

  	
   

  	
  [          
  “            ]

  	
  [    
  “      ]

  	
  [   “   
  ]

  	
  [  “  
  ]

  
	
   

  	
   

  	
   

  
	
  Vesting

  	
   

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

  

 

	
   

  	
   

  	
  % of Target

  	
   

  	
  <70%

  	
   

  	
  70%

  	
   

  	
  80%

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  110%

  	
   

  	
  >120%

  	
   

  
	
   

  	
   

  	
  % of PSUs earned

  	
   

  	
  0%

  	
   

  	
  25%

  	
   

  	
  50%

  	
   

  	
  75%

  	
   

  	
  100%

  	
   

  	
  125%

  	
   

  	
  150%

  	
   

  

 

	
  Payout of Awards

  	
   

  	
  On the Date of Payout, the Company shall either
  (a) deliver to you a number of shares of Capital Stock equal to the
  number of your earned PSUs, or (b) make a cash payment to you equal to
  the value of your earned PSUs at the end of the Performance Period, in either
  case, net of any applicable tax withholding, and the respective PSUs shall
  thereafter be canceled. If paid in cash, the value of each PSU at the end of
  the Performance Period shall be equal to the average closing price, as
  reported on the New York Stock Exchange (“NYSE”), of one share of Capital
  Stock for the month of January following the end of the Performance
  Period.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All payouts under this Award are subject to the provisions
  of the Plan, this Agreement and the Terms and Conditions document, including
  those relating to the cancellation and rescission of awards.

  
	
   

  	
   

  	
   

  
	
  Terms and

  Conditions of Your 

  	
   

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

  
	
  Equity Award

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
   

  	
  Cancellation and rescission of awards (also see
  below)

  
	
   

  	
   

  	
  ·

  	
   

  	
  Jurisdiction, governing law, expenses and taxes

  
	
   

  	
   

  	
  ·

  	
   

  	
  Non-solicitation of Company employees and clients,
  if applicable

  
	
   

  	
   

  	
  ·

  	
   

  	
  Treatment of your Award in the event of death or
  disability or leave of absence (also see below)

  
	
   

  	
   

  	
  ·

  	
   

  	
  Treatment of your Award upon termination of
  employment, including retirement or for cause (also see below)

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
						

 

 

Page 1 of 2

 

	
  Termination of

  Employment or Leave 

  	
   

  	
  Your unvested Award continues to vest upon
  termination of employment or the time you cease to be an active, full-time
  employee if all of the following criteria are met:

  
	
  of Absence 

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
   

  	
  You are on the performance team, or any successor
  team thereto, at the time of termination of employment or the time you cease
  to be an active, full-time employee;

  
	
   

  	
   

  	
  ·

  	
   

  	
  You have completed at least one year of active
  service during the Performance Period;

  
	
   

  	
   

  	
  ·

  	
   

  	
  You have reached age 55 with 15 years of service at
  the time of termination of employment or the time you cease to be an active,
  full-time employee (age 60 with 15 years of service for the Chairman and
  CEO);

  
	
   

  	
   

  	
  ·

  	
   

  	
  The Committee has certified that all performance
  conditions have been met; and

  
	
   

  	
   

  	
  ·

  	
   

  	
  Appropriate senior management, the Committee or the
  Board, as appropriate, do not exercise their discretion to cancel or
  otherwise limit the payout.

  
	
   

  	
   

  	
   

  
	
  Cancellation and Rescission

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Data Privacy, Electronic Delivery

  	
   

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

   

  
	
  Extraordinary Compensation

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Accept Your Award

  	
   

  	
  You hereby agree that if you are asked, as a consideration
  for this Award, to sign an agreement relating to noncompetition and/or
  confidential and proprietary information (“Corresponding Agreement”), and you
  do not execute the Corresponding Agreement by the applicable deadline, then
  any acceptance of this Award will be null and void and of no effect and this
  Award shall be cancelled.

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
						

 

 

Page 2 of 2

 

	
   

  	
   

  	
  International Business Machines Corporation (“IBM”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Equity Award Agreement

  
	
   

  	
   

  	
   

  
	
  Plan

  	
   

  	
  IBM 1999 Long-Term Performance Plan (the “Plan”)

  
	
   

  	
   

  	
   

  
	
  Award Type

  	
   

  	
  Retention Restricted Stock Units Award (RRSU)

  
	
   

  	
   

  	
   

  
	
  Purpose

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Awarded to

  Home Country

  [Global ID]

  	
   

  	
  Sample

  United States (USA) [Employee ID]

  [Global ID]

  
	
   

  	
   

  	
   

  
	
  Award Agreement

  	
   

  	
  This Equity Award Agreement, together with the
  “Terms and Conditions of Your Equity Award: Effective May 1, 2009”
  (“Terms and Conditions”) document and the Plan http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml, both
  of which are incorporated herein by reference, together constitute the entire
  agreement between you and IBM with respect to your Award.This Equity Award
  Agreement shall be governed by the laws of the State of New York, without
  regard to conflicts or choice of law rules or principles.

  
	
   

  	
   

  	
   

  
	
  Grant

  	
   

  	
  Date of Grant: [Month
  Date, Year]

  Number of Units Awarded: [XX]

  
	
   

  	
   

  	
   

  
	
  Vesting

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Units

  	
  Date

  
	
   

  	
   

  	
  [amount]

  	
  [month date, year]

  
	
   

  	
   

  	
  [amount]

  	
  [month date, year]

  
	
   

  	
   

  	
   

  
	
  Terms and

  Conditions of Your 

  	
   

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

  
	
  Equity Award

  	
   

  	
   

  
	
   

  	
   

  	
  ·

  	
   

  	
  Cancellation and rescission of awards (also see
  below)

  
	
   

  	
   

  	
  ·

  	
   

  	
  Jurisdiction, governing law, expenses and taxes

  
	
   

  	
   

  	
  ·

  	
   

  	
  Non-solicitation of Company employees and clients,
  if applicable

  
	
   

  	
   

  	
  ·

  	
   

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

  
	
   

  	
   

  	
  ·

  	
   

  	
  Treatment of your Award upon termination of
  employment, including retirement or for cause

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Cancellation and Rescission

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Data Privacy, Electronic Delivery

  	
   

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

  
							

 

 

Page 1 of 2

 

	
  Extraordinary Compensation

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Accept Your Award

  	
   

  	
  You hereby agree that if you are asked, as a
  consideration for this Award, to sign an agreement relating to noncompetition
  and/or confidential and proprietary information (“Corresponding Agreement”),
  and you do not execute the Corresponding Agreement by the applicable
  deadline, then any acceptance of this Award will be null and void and of no
  effect and this Award shall be cancelled.

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  

 

 

Page 2 of 2

 

 

 

 

 

 

 

IBM

 

 

 

 

 

 

 

 

 

 

TERMS
AND CONDITIONS OF YOUR EQUITY

AWARD: EFFECTIVE MAY 1, 2009

 

 

 

 

 

 

 

 

Terms
and Conditions of Your Equity Award

 

Table
of Contents

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Introduction

  	
   

  	
  2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  How to Use This Document

  	
   

  	
  2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Definition of Terms

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Provisions that apply to all Award types and all
  countries.

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Provisions that apply to all Award types but not
  all countries

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Provisions that apply to specific Award types
  for all countries

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
  i.

  	
  All RSUs

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ii.

  	
  RSUs Other Than Cash-Settled RSUs

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  iii.

  	
  Cash-Settled RSUs

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b. Restricted Stock.

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
  c. Stock Options (“Options”)
  and Stock Appreciation Rights (“SARs”)

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
  i.

  	
  All Option and SAR Awards

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ii.

  	
  All SAR Awards

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d. Performance Share Units
  (“PSUs”)

  	
   

  	
  11

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Provisions that apply to specific countries.

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
  a. India

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  b. Slovenia

  	
   

  	
   

  	
   

  

 

 

	
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Terms
and Conditions of Your Equity Award

 

Introduction

 

This document provides you
with the terms and conditions of your Award that are in addition to the terms
and conditions contained in your Equity Award Agreement for your specific
Award.  Also, your Award is subject to
the terms and conditions in the governing plan document; the applicable
document is indicated in your Equity Award Agreement and can be found at
http://w3.ibm.com/hr/exec/comp/eq_prospectus.shtml.

 

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

 

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

 

How to Use This Document

 

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

 

	
  Executive Awards: May 1,
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Terms
and Conditions of Your Equity Award:

Definition
of Terms

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Plan” — Any IBM Long-Term
Performance Plan.

 

	
  Executive Awards: May 1,
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  3 of 12

  

 

 

Terms
and Conditions of Your Equity Award:

Provisions
that apply to all Award types and all countries

 

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

 

Cancellation
and Rescission

 

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

 

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

 

Jurisdiction,
Governing Law, Expenses and Taxes

 

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

 

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

 

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

 

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

 

	
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  4 of 12

  

 

 

Terms
and Conditions of Your Equity Award:

Provisions
that apply to all Award types but not all countries

 

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

 

Non-Solicitation

 

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

 

	
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Terms
and Conditions of Your Equity Award:

Provisions
that apply to specific Award types for all countries

 

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

 

i.                 All RSUs

 

Termination
of Employment including Death, Disability and Leave of Absence

 

Termination of Employment

 

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

 

Death or Disability

 

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

 

Leave of Absence

 

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

 

Dividend
Equivalents

 

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

 

ii.             RSUs Other Than
Cash-Settled RSUs

 

Settlement
of Award

 

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

 

	
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  6 of 12

  

 

 

iii.   Cash-Settled RSUs

 

Settlement
of Award

 

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

 

b.               Restricted
Stock

 

Settlement
of Award

 

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

 

Termination
of Employment including Death, Disability and Leave of Absence

 

Termination of Employment

 

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

 

Death or Disability

 

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

 

	
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Leave
of Absence

 

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

 

Dividends
and Other Rights

 

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

 

Transferability

 

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

 

	
  Executive Awards: May 1,
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  Page
  8 of 12

  

 

 

c.               Stock
Options (“Options”) and Stock Appreciation Rights (“SARs”)

 

i.                 All Option and SAR Awards

 

Termination
of Employment including Death, Disability and Leave of Absence

 

Termination
of Employment

 

In the event you cease to be
an employee (other than on account of death or becoming disabled as described
in Section 12 of the Plan):

 

·                  Any Options or
SARs that are not exercisable as of the date your employment terminates shall
be canceled immediately (unless your Equity Award Agreement provides
otherwise), and

 

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

 

Death or
Disability

 

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

 

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

 

	
  Executive Awards: May 1,
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  Page
  9 of 12

  

 

 

Leave
of Absence

 

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

 

·                  Your unvested
Options or SARs will be canceled immediately; and

 

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

 

Termination of Employment for
Cause

 

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

 

ii.             All SAR Awards

 

Settlement
of Award

 

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

 

	
  Executive Awards: May 1,
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  Page
  10 of 12

  

 

 

d.               Performance
Share Units (“PSUs”)

 

Termination
of Employment, including Death and Disability, and Leave of Absence

 

Termination
of Employment and Leave of Absence

 

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

 

Death or
Disability

 

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

 

 

	
  Executive Awards: May 1,
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  11 of 12

  

 

 

Terms
and Conditions of Your Equity Award:

Provisions
that apply to specific countries

 

a.               India

 

i.           All Awards

 

Settlement
of Awards

 

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

 

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

 

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

 

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

 

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

 

b.               Slovenia

 

i.           All Option Awards

 

Remittance of Foreign Exchange

 

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

 

	
  Executive Awards: May 1,
  2009

  	
   

  	
  Page
  12 of 12Exhibit 10.2

 

NONCOMPETITION AGREEMENT

 

                In recognition of the critical role that you play as
a senior executive with International Business Machines Corporation (“IBM”),
and as consideration for any and all awards to be granted to you in [Insert
Year] under an International Business Machines Corporation Long-Term
Performance Plan (“LTPP”), your promotion and/or appointment to the
Integration & Values Team (“I&VT”), and/or for other good and
valuable consideration, you (“Employee” or “you”) agree to the terms
and conditions of this Noncompetition Agreement (this “Agreement”) as
follows:

 

                1.             Covenants.

 

                                (a)  You acknowledge and agree
that: (i) as a member of the I&VT, you will be exposed to some of the
most sensitive and confidential information possessed by IBM and its affiliates
(collectively, the “Company”), including global strategic plans, marketing
plans, information regarding long-term business opportunities and information
regarding the development status of specific Company products, as well as extensive
assessments of the global competitive landscape of the industries in which the
Company competes; and (ii) the aforementioned information represents the
product of the Company’s substantial global investment in research and
innovation, is critical to the Company’s competitive success, is disclosed to
the Company’s senior leaders only on a strictly confidential basis, and is not
made accessible to the public or to the Company’s competitors.

 

                                (b)  You further acknowledge and
agree that: (i) the business in which the Company is engaged is intensely
competitive and that your employment by IBM has required, and will continue to
require, that you have access to, and knowledge of, confidential information of
the Company, including, but not limited to, certain or all of the Company’s
methods, information, systems, plans for acquisition or disposition of
products, expansion plans, financial status and plans, customer lists, client
data, personnel information and trade secrets of 

 

 

the Company, all of which
are of vital importance to the success of the Company’s business (collectively,
“Confidential Information”); (ii) the disclosure of any of the
foregoing would place the Company at a serious competitive disadvantage and
would do serious damage, financial and otherwise, to the business of the
Company; (iii) you have been given access to, and developed relationships
with, customers of the Company at the time and expense of the Company; and (iv) by
your training, experience and expertise, your services to the Company are, and
will continue to be, extraordinary, special and unique.

 

                                (c) 
You acknowledge and agree that you will keep in strict confidence, and will
not, directly or indirectly, at any time during or after your employment with
IBM, disclose, furnish, disseminate, make available or, except in the course of
performing your duties of employment, use any trade secrets or confidential
business and technical information of the Company or its customers or vendors,
without limitation as to when or how you may have acquired such
information.  Such information shall
include, without limitation, the Company’s unique selling, manufacturing and
servicing methods and business techniques, training, service and business
manuals, promotional materials, training courses and other training and
instructional materials, vendor and product information, customer and
prospective customer lists, other customer and prospective customer information
and other business information.  You specifically
acknowledge that all such information, whether reduced to writing, maintained
on any form of electronic media, or maintained in your mind or memory and
whether compiled by the Company, and/or you, derives independent economic value
from not being readily known to or ascertainable by proper means by others who
can obtain economic value from its disclosure or use, that reasonable efforts
have been made by the Company to maintain the secrecy of such information, that
such information is the sole property of the Company and that any retention and
use of such information by you during or after your  employment with IBM (except in the course of
performing your duties and obligations hereunder) shall constitute a
misappropriation of the Company’s trade secrets.

 

2

 

                                (d)  You acknowledge and agree
that during your employment with IBM and for twelve (12) months following the
termination of your employment either by you for any reason, by IBM for “Cause,”
or by IBM without Cause where IBM elects, pursuant to Paragraph 4 below, to
make certain severance payments to you, you will not directly or indirectly
within the “Restricted Area” (i) “Engage in or Associate with” (a) any
“Business Enterprise” or (b) any competitor of the Company; or (ii) solicit,
for competitive business purposes, any customer of the Company with which you
were involved as part of your job responsibilities during the last twelve (12)
months of your employment with IBM.  You
further agree that during your employment with IBM and for the two (2) year
period following the termination of your employment by either you or by IBM for
any reason, you will not directly or indirectly within the “Restricted Area,”
hire, solicit or make an offer to any employee of the Company to be employed or
perform services outside of the Company.

 

 

                2.             Definitions.

 

                                (a)  For purposes of this Agreement, the term “Business Enterprise”
shall mean any entity that engages in, or owns or controls an interest in any
entity that engages in, competition with any business unit or division of the
Company in which you worked at any time during the three (3) year period
prior to the termination of your employment.

 

                                (b)   For purposes of this Agreement,  “Cause” shall mean, as reasonably
determined by IBM, the occurrence of any of the following:  (i) embezzlement, misappropriation of
corporate funds or other material acts of dishonesty; (ii) commission or
conviction of any felony, or of any misdemeanor involving moral turpitude, or
entry of a plea of guilty or nolo  contendere to any felony or
misdemeanor (other than a minor traffic violation or other minor infraction); (iii) engagement
in any activity that you know or should know could harm the business or
reputation of the Company; (iv) failure to adhere to the Company’s
corporate codes, policies or procedures; (v) a breach of any covenant in  any employment agreement or any intellectual property agreement, or a breach

 

3

 

of any other provision of
your employment agreement, in either case  if
the breach is not cured to the Company’s satisfaction within a reasonable
period after you are provided with notice of the breach (no notice and cure
period is required if the breach cannot be cured), provided, however,
that the mere failure to achieve performance objectives shall not constitute
Cause; (vi) failure by you to perform your duties or follow management
direction, which failure is not cured to the Company’s satisfaction within a
reasonable period of time after a written demand for substantial performance is
delivered to you (no notice or cure period is required if the failure to
perform cannot be cured); or (vii) violation of any statutory, contractual
or common law duty or obligation to the Company, including without limitation
the duty of loyalty.

 

                                (c)  For purposes of this
Agreement, the phrase “Engage in or Associate with” shall include
without limitation engagement or association as a sole proprietor, owner,
employer, director, partner, principal, investor, joint venture, shareholder,
associate, employee, member, consultant, contractor or otherwise.

 

                                (d)  For purposes of this
Agreement, “I&VT” shall mean the Integration and Values Team or any
successor team or group constituted by the Company from time to time.

 

                                (e)  For purposes of this
Agreement, the term “Restricted Area” shall mean any geographic area in
the world for which you had job responsibilities during the last twelve (12)
months of your employment with IBM.  You
acknowledge that as a result of your membership in the I&VT, as set forth
in Paragraph 1(a), your job responsibilities with the Company are global in
scope.

 

                3.             Acknowledgements.

 

                                You acknowledge that the Company
would suffer irreparable harm if you fail to comply with Paragraph 1, and that
the Company would be entitled to any appropriate relief, including money
damages, equitable relief and attorneys’ fees. 
You further acknowledge that enforcement of the covenants in Paragraph 1
is necessary to ensure the protection and continuity of the business and
goodwill 

 

4

 

of the Company and that, due
to the proprietary nature of the business of the Company, the restrictions set
forth in Paragraph 1 are reasonable as to geography, duration and global scope.

 

                4.             Termination without Cause.

 

                                In the event that IBM terminates your
employment without Cause, IBM may elect in its sole discretion to offer to you
severance payments (in an amount and on terms that IBM will determine, and
disclose to you, prior to your termination of employment) in accordance with
IBM’s regular payroll practices and subject to all applicable foreign, federal,
state and local withholdings or other taxes that IBM may from time to time be
required to withhold.  In the event you
agree to such payments and without limiting the generality of the foregoing,
IBM may cease making such payments under this Paragraph 4 if IBM believes that
you are in breach of any of your obligations in this Agreement.  Without prejudice to any other remedies under
this Agreement or under applicable law, IBM may also seek to recoup any
payments made to you under this Paragraph 4 if you breach any of your
obligations under this Agreement.

 

                5.             LTPP Awards.

 

                                For purposes of the LTPP and any
awards thereunder (including any awards outstanding on the date of this
Agreement) (collectively, the “LTPP Awards”), if you engage in conduct
in breach of this Agreement prior to, or within twelve (12) months after, any
delivery or payout pursuant to any LTPP Awards, then such conduct shall also be
deemed to be a breach of the terms of such LTPP Awards, justifying cancellation
or rescission of any such LTPP Awards.

 

                6.             Injunctive Relief.

 

                                You agree that the Company would
suffer irreparable harm if you were to breach, or threaten to breach, any
provision of this Agreement and that the Company would by reason of such
breach, or threatened breach, be entitled to 

 

5

 

injunctive relief in a court
of appropriate jurisdiction, without the need to post any bond, and you further
consent and stipulate to the entry of such injunctive relief in such a court
prohibiting you from breaching this Agreement. 
This Paragraph 6 shall not, however, diminish the right of the Company
to claim and recover damages in addition to injunctive relief.

 

                7.             Severability.

 

                                In the event that any one or more of
the provisions of this Agreement shall be held to be invalid or unenforceable,
the validity and enforceability of the remaining provisions shall not in any
way be affected or impaired thereby. 
Moreover, if any one or more of the provisions contained in this
Agreement shall be held to be excessively broad as to duration, activity or
subject, such provisions shall be construed by limiting and reducing them so as
to be enforceable to the maximum extent allowed by applicable law.  Furthermore, a determination in any
jurisdiction that this Agreement, in whole or in part, is invalid or
unenforceable shall not in any way affect or impair the validity or enforceability
of this Agreement in any other jurisdiction.

 

                8.             Captions.

 

                                The captions in this Agreement are
inserted for convenience and reference only and shall in no way affect, define,
limit or describe the scope, intent or construction of any provision hereof.

 

                9.             Waiver.

 

                                The failure of IBM to enforce any
terms, provisions or covenants of this Agreement shall not be construed as a
waiver of the same or of the right of IBM to enforce the same.  Waiver by IBM of any breach or default by you
(or by any other employee or former employee of IBM) of any term or provision
of this Agreement (or any similar agreement between IBM and you or any other
employee or former employee of IBM) shall not operate as a waiver of any other
breach or default.

 

6

 

                10.           Successors and Assigns.

 

                                This Agreement shall inure to the
benefit of and be binding upon IBM, any successor organization which shall
succeed to IBM by acquisition, merger, consolidation or operation of law, or by
acquisition of assets of IBM and any assigns. 
You may not assign your obligations under this Agreement.

 

                11.           Disclosure of Existence of Covenants.

 

                                You agree that while employed by IBM
and for two (2) years thereafter, you will communicate the contents of
this Agreement to any person, firm, association, partnership, corporation or
other entity which you intend to be employed by, associated with or represent.

 

                12.           Notice to IBM of Prospective Position.

 

                                You agree that you will promptly
notify the Senior Vice President of Human Resources for IBM Corporation if, at
any time during your employment or within twelve months following the
termination of your employment with IBM, you accept a position to be employed
by, associated with or represent any person, firm, association, partnership,
corporation or other entity.  You further
agree that you will provide IBM with such information as IBM may request about
your new position to allow IBM to determine whether such position and duties
would likely lead to a violation of this Agreement (except that you need not
provide any information that would constitute confidential or trade secret
information).

 

                13.           No Oral Modification.

 

                                This Agreement may not be changed
orally, but may be changed only in a writing signed by the Employee and a duly
authorized representative of IBM.

 

7

 

                14.           Entire Agreement.

 

                                Although
this Agreement sets forth the entire understanding between the Employee and IBM
concerning its subject matter, this Agreement does not impair, diminish,
restrict or waive any other restrictive covenant, nondisclosure obligation or
confidentiality obligation of the Employee to IBM under any other agreement,
policy, plan or program of IBM.  The
Employee and IBM represent that, in executing this Agreement, the Employee and
IBM have not relied upon any representations or statements made, other than
those set forth herein, with regard to the subject matter, basis or effect of
this Agreement.

 

                15.           Governing Law.

 

                                This
Agreement and any disputes between the Employee and IBM shall be governed by,
and construed in accordance with, the laws of the State of New York, without
regard to its conflict of law rules.  The
Employee consents to the exclusive jurisdiction and venue in the federal and
state courts of the State of New York, County of Westchester, for the
resolution of all disputes arising under, or relating to, this Agreement.

 

 

 

	
   

  	
   

  
	
  Name of Employee (Print)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Employee Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

  	
   

  

 

INTERNATIONAL BUSINESS

MACHINES CORPORATION

 

	
  By:

  	
   

  	
   

  
	
  J. Randall MacDonald

  	
   

  
	
  Senior VP - Human
  Resources

  	
   

  

 

 

8

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