IBM 347X TRADE-IN PROGRAM FOR QUALIFIED IBM AND NON-IBM DISPLAY STATIONS Announcement Letter Number 390-045 dated March 20, 1990 US - Last Revised on March 20, 1990 Brief Description of Announcement, Charges, and Availability Today, IBM is announcing a trade-in credit for customers who purchase an IBM InfoWindow (R) 3471 or 3472 Display Station and trade in an eligible IBM 3270 Display Station or non-IBM 3270-equivalent display station on a one-for-one basis. IBM is also announcing a trade-in credit for customers who purchase an IBM InfoWindow 3476 or 3477 Display Station and trade in an eligible IBM 5250 Display Station or non-IBM 5250-equivalent display station on a one-for-one basis. Crossover trade-ins are permitted, such as trading in an eligible IBM 3270 Display Station when an IBM InfoWindow 3476 Display Station is purchased. The trade-in credit is in addition to all other discounts currently in effect for the designated replacement IBM display station. IBM reserves the right to modify or withdraw this program at any time. (R) Registered trademark of International Business Machines Corporation. Customer Letter Section DESCRIPTION Customers are eligible to receive a trade-in credit for eligible IBM and non-IBM display stations provided the following terms and conditions are met: o The customer commits to replace IBM 3278, 3279, 3178, 3179, 3180, 3191, 5251, 5291, 3196, or any other IBM 3270/5250, or non-IBM 3270/5250-equivalent display stations with eligible IBM display stations on a one-for-one basis. If the customer does not return a replaced display station, the customer will not be given the trade-in credit available through this offering. o A customer may participate if the customer has signed, and has in effect during the program period, a Volume Procurement Amendment (VPA) commitment for IBM Workstations that will terminate within one year of the signing of the Amendment to Agreement for Purchase of IBM Machines for Trade-In of Qualified IBM 31xx, 32xx, 52xx and Equivalent Non-IBM Display Stations. Trade-in credits are only guaranteed either for one year from the signing of the Amendment to Agreement for Purchase of IBM Machines for Trade-In of Qualified IBM 31xx, 32xx, 52xx and Equivalent Non-IBM Display Stations, or for the duration of the VPA for IBM Workstations, whichever is shorter. If the VPA commitment exceeds one year, then a special bid will be considered. o The marketing representative has to obtain approval for the special bid customer to participate in the trade-in program. o The trade-in credit is in addition to all other volume discounts currently in effect for the designated replacement display station. o Customers trading in twenty or more display stations under this offering must return them to IBM in minimum quantities of twenty. o The customer must have clear title to the replaced display station, free of any encumbrances, at the time it is picked up by IBM's designated carrier. Title to the replaced display station is not required if the IBM Credit Corporation (ICC) owns the replaced display station and is financing the replacement display station. Within one month following installation of the replacement IBM display station, the customer must return the replaced display station. o The customer must sign the Amendment to Agreement for Purchase of IBM Machines for Trade-In of Qualified IBM 31xx, 32xx, 52xx and Equivalent Non-IBM Display Stations prior to the date of installation of the replacement display station. If the date of installation of the replacement display station is on or after March 20, 1990, and on or before April 3, 1990, this Amendment, signed by the customer, must be received by IBM no later than April 3, 1990. o The replaced display station must be installed and in productive use at the customer facility on the day IBM announces the program offering and on the day the customer signs the Amendment. The display station configuration returned to IBM must be the same display station configuration installed and in productive use on the date the Amendment is signed by the customer. o The customer must identify the replaced display station to IBM prior to shipment of the eligible replacement IBM display station. o The replaced display station must be in operating condition immediately before shipment to IBM. o All normal costs associated with shipment of the replaced display station will be the responsibility of IBM. Special rigging will be paid by the customer. o The customer is responsible for removing the display station from the desk and transporting it to a centralized pick-up area. o Customers will receive the trade-in credit as follows: - Upon shipment of the specified replacement display station, the customer will be billed the single unit purchase price, less any applicable discounts for which the customer qualifies under existing agreements. The invoice should be paid in full, and not be netted in anticipation of the trade-in credit. - If the customer chooses to finance the replacement display station through ICC or a third party, the customer should be advised that the invoice will reflect the single unit purchase price, less any applicable discounts for which the customer qualifies under existing agreements. This invoice should also be paid in full, and not be netted in anticipation of the trade-in credit. - In order to receive the applicable trade-in credit, the customer must provide IBM with a copy of the carrier's bill-of-lading, listing the replaced display stations by type and serial number. The trade-in credit will be issued via a Revenue Expense Billing Adjustment Request (REBAR). o The replacement display station must be installed within the same enterprise where the replaced display station was in productive use. o End-user certification provisions apply to replacement display stations purchased under this program. For leasing companies, financing certification provisions apply. o Participation in this trade-in program is in lieu of trade-in activity under the standard IBM Trade-In Agreement or any other trade-in offering that may apply to the replaced display stations. TRADE-IN CREDIT The trade-in credit for display stations is a fixed dollar amount for the machine type, regardless of configuration. InfoWindow 3472 Display Stations replace IBM 3278, 3279, 3178, 3179, 3180, 3191, or any other IBM 3270 Display Stations, or non-IBM 3270-equivalent display stations on a one-for-one basis. InfoWindow 3471 Display Stations replace IBM 3278, 3279, 3178, 3179, 3180, and 3191 Display Stations on a one-for-one basis. InfoWindow 3477 Display Stations replace IBM 5251, 5291, 3179, 3180, 3196, or any other IBM 5250 Display Stations, or non-IBM 5250-equivalent display stations on a one-for-one basis. InfoWindow 3476 Display Stations replace IBM 5251, 5291, 3179, 3180, and 3196 Display Stations on a one-for-one basis. Crossover trade-ins are permitted, such as trading in an eligible IBM 3270 Display Station when an IBM InfoWindow 3476 Display Station is purchased. Trade-in credits are as follows: Feature Numbers/ Machine Part Trade-In Description Types Models Numbers Credit IBM 3270 3278 All All $ 75 Display Stations 3279 All All 90 3178 All All 90 3179 All All 250 3180 All All 200 3191 All All 250 Non-IBM 3270-equivalent display stations All All All 50* All other IBM 3270 Display Stations All All All 50* IBM 5250 5251 All All 100 Display Stations 5291 All All 125 3179 All All 250 3180 All All 200 3196 All All 250 Non-IBM 5250-equivalent display stations All All All 50* All other IBM 5250 Display Stations All All All 50* * The $50 trade-in credit for non-IBM 3270/5250 display stations and other IBM 3270/5250 Display Stations applies only when they are traded in against purchased IBM InfoWindow 3472 or 3477 Display Stations. The listed trade-in credits are available to all IBM customers who purchase an InfoWindow 3471, 3472, 3476, or 3477 Display Station. The trade-in credit is in addition to all other discounts currently in effect for the designated replacement IBM display station. Arrangements have been made with North American Van Lines to facilitate pickup and return of the replaced machine to IBM. The customer must notify North American Van Lines that the replaced machine is ready for pickup by calling toll-free, 1-800-666-1247, from 8 A.M. to 5 P.M. Eastern time, and provide the machine type and serial number. The replaced machine will be shipped via ground transportation. No collect air shipment will be accepted. Machines are to be returned as follows: o 5251, 5292 Display Stations only IBM Trade-In Program c/o Burnham Corporation 3327 Walden Avenue DePew, NY 14043 o All other IBM and non-IBM display stations IBM Trade-in Program Department 483, Building 646 Research Triangle Park Old Raleigh Highway Raleigh, NC 27709 The replaced display station must be returned to IBM within one month following the date of the installation of the replacement display station. The customer is responsible for removing non-IBM alterations and attachments from the replaced IBM display station.