{"id":40312,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/psu-equity-award-agreement-ibm.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"psu-equity-award-agreement-ibm","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/psu-equity-award-agreement-ibm.html","title":{"rendered":"PSU Equity Award Agreement – IBM"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

International Business Machines Corporation (“IBM”)<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n<\/td>\n\n<\/td>\n\n

Equity Award Agreement<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Plan<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

[IBM 1999 Long-Term Performance Plan (the “Plan”)]<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Award Type<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

Performance Share Units (PSUs)<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Purpose<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

The purpose of this Award is to retain selected executives. You recognize
\nthat this Award represents a potentially significant benefit to you and is
\nawarded for the purpose stated here.<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Awarded to <\/strong>Home Country Global ID<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

Sample<\/strong><\/p>\n

United States (USA) [Employee ID]<\/strong><\/p>\n

[Global ID]<\/strong><\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Award Agreement<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

This Equity Award Agreement, together with the “Terms and Conditions of Your
\nEquity Award: Effective June 8, 2011” (“Terms and Conditions”) document and the
\nPlan http:\/\/w3.ibm.com\/hr\/exec\/comp\/eq_prospectus.shtml<\/em>, both of which
\nare incorporated herein by reference, together constitute the entire agreement
\nbetween you and IBM with respect to your Award. This Equity Award Agreement
\nshall be governed by the laws of the State of New York, without regard to
\nconflicts or choice of law rules or principles.<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Grant<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

Date of Grant<\/strong><\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

# PSUs Awarded<\/strong><\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

Performance Period<\/strong><\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

Date of Payout<\/strong><\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n

[month day year]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[amount]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[dates]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[date]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n

[month day year]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[amount]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[dates]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[date]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n

[ ” ]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[ ” ]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[ ” ]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

[ ” ]<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Vesting <\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

You can earn the PSUs awarded above based on IBM153s performance in achieving
\ncumulative business targets of earnings-per-share and cash flow, weighted 80\/20
\nrespectively, over the 3-year Performance Period applicable to the award.
\nPerformance against each of the targets will be subject to separate payout
\ncalculations according to the following table (which will be applied
\nseparately for each award of PSUs listed above)<\/strong>:<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n<\/td>\n\n<\/td>\n\n

% of Target<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

<70<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

70<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

80<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

90<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

100<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

110<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

><\/u>120<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n<\/td>\n<\/tr>\n
\n<\/td>\n\n<\/td>\n\n

% of PSUs earned<\/p>\n<\/td>\n

\n

\n<\/td>\n

\n

0<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

25<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

50<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

75<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

100<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

125<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n

150<\/p>\n<\/td>\n

\n

%<\/p>\n<\/td>\n

\n<\/td>\n<\/tr>\n
\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Payout of Awards<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

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

All payouts under this Award are subject to the provisions of the Plan, this
\nAgreement and the Terms and Conditions document, including those relating to the
\ncancellation and rescission of awards.<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Terms and Conditions of Your Equity Award<\/strong><\/p>\n<\/p>\n<\/td>\n

\n<\/td>\n\n

Refer to the Terms and Conditions document
\nhttp:\/\/w3.ibm.com\/hr\/exec\/comp\/eq_prospectus.shtml <\/em>for an explanation
\nof the terms and conditions applicable to your Award, including those relating
\nto:<\/p>\n<\/p>\n

– Cancellation and rescission of awards (also see below)<\/p>\n

– Jurisdiction, governing law, expenses and taxes<\/p>\n

– Non-solicitation of Company employees and clients, if applicable<\/p>\n

– Treatment of your Award in the event of death or disability or leave of
\nabsence<\/p>\n

– Treatment of your Award upon termination of employment, including
\nretirement or for cause, (i) if you are on the performance team, or any
\nsuccessor team thereto, and (ii) under all other circumstances.<\/p>\n<\/p>\n

It is strongly recommended that you print the Terms and Conditions document
\nfor later reference.<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

1<\/p>\n

\n

<\/p>\n

\n\n\n\n\n\n\n\n\n\n
\n

Cancellation and Rescission<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

You understand that IBM may cancel, modify, rescind, suspend, withhold or
\notherwise limit or restrict this Award in accordance with the terms of the Plan,
\nincluding, without limitation, canceling or rescinding this Award if you render
\nservices for a competitor prior to, or during the Rescission Period. You
\nunderstand that the Rescission Period that has been established is 12 months.
\nRefer to the Terms and Conditions document and the Plan for further details.\n<\/p>\n<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Data Privacy, Electronic Delivery<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

By accepting this Award, you agree that data, including your personal data,
\nnecessary to administer this Award may be exchanged among IBM and its
\nsubsidiaries and affiliates as necessary, and with any vendor engaged by IBM to
\nadminister this Award, subject to the Terms and Conditions document; you also
\nconsent to receiving information and materials in connection with this Award or
\nany subsequent awards under IBM153s long-term performance plans, including without
\nlimitation any prospectuses and plan documents, by any means of electronic
\ndelivery available now and\/or in the future (including without limitation by
\ne-mail, by Web site access and\/or by facsimile), such consent to remain in
\neffect unless and until revoked in writing by you.<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Extraordinary Compensation<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

Your participation in the Plan is voluntary. The value of this Award is an
\nextraordinary item of income, is not part of your normal or expected
\ncompensation and shall not be considered in calculating any severance,
\nredundancy, end of service payments, bonus, long-service awards, pension,
\nretirement or other benefits or similar payments. The Plan is discretionary in
\nnature. This Award is a one-time benefit that does not create any contractual or
\nother right to receive additional awards or other benefits in the future. Future
\ngrants, if any, are at the sole grace and discretion of IBM, including but not
\nlimited to, the timing of the grant, the number of units and vesting provisions.
\nThis Equity Award Agreement is not part of your employment agreement, if any.\n<\/p>\n<\/td>\n<\/tr>\n

\n<\/td>\n\n<\/td>\n\n<\/td>\n<\/tr>\n
\n

Accept Your Award<\/strong><\/p>\n<\/td>\n

\n<\/td>\n\n

This Award is considered valid when you accept it. By pressing the Accept
\nbutton below to accept your Award, you acknowledge having received and read this
\nEquity Award Agreement, the Terms and Conditions document and the Plan under
\nwhich this Award was granted and you agree (i) not to hedge the economic risk of
\nthis Award or any previously-granted outstanding awards, which includes entering
\ninto any derivative transaction on IBM securities (e.g., any short sale, put,
\nswap, forward, option, collar, etc.), (ii) to comply with the terms of the Plan,
\nthis Equity Award Agreement and the Terms and Conditions document, including
\nthose provisions relating to cancellation and rescission of awards and
\njurisdiction and governing law, and (iii) that by your acceptance of this Award,
\nall awards previously granted to you under the Plan or other IBM Long-Term
\nPerformance Plans are subject to (A) the “Cancellation and Rescission” section
\nof this Agreement (unless your previous award agreement(s) specified a longer
\nRescission Period, in which case such longer period will apply) and the
\n“Cancellation and Rescission” section of the Terms and Conditions document and
\n(B) any other cancellation, rescission or recovery required by applicable laws,
\nrules, regulations or standards, including without limitation any requirements
\nor standards of the U.S. Securities and Exchange Commission or the New York
\nStock Exchange.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

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