Power Systems Exchange (PEX) Request Pricing Form

Complete for each p570 to POWER6 570 System

This form is divided into 5 sections.

Section1 needs to be completed by the IBM Seller or the Business Partner.

Section 2 needs to be completed by the Power Systems Pricer.

Section 3 needs to be completed by the IGF Deal Structurer.

Section 4 details the process the IBM Seller or the Business Partner will need to follow to obtain the price for the Power Systems Exchange Offering.

Section 5 details the Power Systems Exchange ordering process.

Section 1: To be completed by IBM Seller or Business Partner

Power Systems Specialist Name: ______

Business Partner Name (if sold through the channel): ______

Business Partner Contact information______(email/phone number)

Power Systems Pricer Name: ______

IGF FSE Name : ______

Customer (End User) Name: ______

Customer #: ______

ePricer Bid #: New System ______

MES ______

Installed Systems:

Type ModelSerial # Estimated Book Value** Estimated CurrentMonthly Expense****

______$______$______

______$______$______

______$______$______

______$______$______(add lines as needed)

Base owned by: Customer: ___ IGF: ___ Other: ___

** Book Value Estimate of Base Machine if Customer Owned

**** Estimated Current Monthly Depreciation (if owned) or IGF Lease payments

Mach Type Model / New System / MES Equivalent
9117-MMA / List Price / $ / $
Requested / Net Price / $ / $

End-UserState: ______

End-User Sales Tax Rate: ______(State entities, sales tax factor does not apply)

Target Return date (ready for pickup) of the replaced systems : ______

Section 2: To be completed by Power Systems Pricer

Power Systems Pricer Name: ______

“From” Processor Machine Type: ______

“To” Processor Machine Type: ______

Warranty Value (New – MES for 12 Months) $ ______

Mach Type Model / New System / MES Equivalent
9117-MMA / List Price / $ / $
Approved / Net Price / $ / $

Analyze the Brand GP based on:

Revenue = PEX price to Customer

Cost = Net new system cost from ePricer + PEX Value (next page)+ RBD Est

Section 3: To be completed by IGF Deal Structurer for PEX’s involving leased assets

(If the current system is owned by the customer, forward to IGF GARS Trader“Corey Smith ” instead of IGF Deal Structurer)

Deal Structurer Name: ______

Required Termination Charge/DEAC : $ ______

DEAC/ETERM Quote #:______Effective Date: ______

PEX

PEX price to customer: $ ______= (NET p6 MES price + PEX Value)

Revenue Adjustment Amount*: $______0______no TIP adjustment for POWER Systems

Estimated IBM Total Revenue (Selling Price less Rev. Adj.)*: $ ______

Estimatedd FMV of p4 or p5: $ ______(PEX Value - added cost to POWER 6 for

Power Systems Pricer GP Analysis)

Rate Buy Down: $ ______(programmatic + special bid)

*This number is provided as an estimate only.

If financing is required, IGF Deal Structurer above has determined that the resultant lease is:

Operating: ______Capital: ______

For Deal Structurers use only:

Blex Q# ______T Q#______PEX (NLSE) Q# ______

Section 4: Process to obtain Power Systems Exchange Pricing

The following tasks need to be performed before you make this offer to your customer:

1. IBM Seller or Business Partner completes Section 1 and forwards to the IGF GARSTraderfor review and

update.

  • Send to GARS Trader: Corey Smith (914)765-5612
  • Copy to: Bruce Wellington
  • Attach eConfiguration with list price and standard discount. Price not to be revealed to customer.

2. GARS reviews then forwards form to IGF FSE for Lease Economic input.

2a. IGF FSE submits appropriate IGF lease quotes (NLSE, BLEX, Eterm) and forwards this PEX form to IGF Deal Structurer. NLSE quote MUST include partner uplift if applicable.

2b. IGF Deal Structurer completes Section 3, builds the PEX rents and PEX purchase price financed (PPF) and secures IGF Accounting approval and lease classification.

3. IGF GARS Trader updates PEX Spreadsheet and forwards to Power Systems Pricer for review and approvals

4. Power Systems Pricer provides approval confirmation to IGF and IBM Seller/Business Partner or notifies

request has been rejected.

Section 5: Power Systems Exchange Order Processing Information

1.The replacement system should be ordered as a net new system with the following:

  • Add Feature Code 9993 Qty (1) (renovated by IBM).

1a. Send confirming note with Plant Order numbers to: Corey Smith

The serial number of the replacement processor will be different than the serial number of the

replaced processor.

1b. Orders must be entered in Final Configuration. Alterations or Cancel/Reorder are not permitted for PEX.

Should there be a hard requirement for a configuration change, you must contact your Power Systems

Rep prior to making any changes via eConfiguration.

2. The price of the PEXhardware includes one year of maintenance on the base box to reflect the fact that the

customer will have a full one year warranty on the replacement processor.

3. The customer is responsible for any sales tax obligations stemming from use of this offer. No general rule

exists which adequately covers this issue.

4. The customer agrees in writing to return the replaced system to IBM Global Financing by the date indicated

on the IBM Credit Corporation Supplement for Termination of Lease/Prepayment of Financing (if leased by

IGF) or the IBM Credit Corporation Purchase Agreement (if customer owned). Any exceptions require prior

IGF approval. Failure to return the replacement box by the agreed upon date will result in a rescission of the

IGF Supplement for Termination of Lease/Prepayment of Financing or the Purchase Agreement.

5. Administratively, the replaced system should be returned to IGF per the terms of the Purchase Agreement or

Supplement for Termination of Lease/Prepayment of Financing.

5a.The customer must sign the appropriate IBM Credit Corporation Purchase Agreement or Supplement

for Termination of Lease/Prepayment of Financing for a PEX.

5b. The customer is responsible for the deinstallation and packing costs of the base machine. COS/SOW

costs can be direct billed, or financed through IGF. This can be incorporated into a TSP/PSO, or

standalone. The SSR must be included in the work effort to develop this cost. (end-of–leaseguidelines)

6.The complete System p should be placed in a 4X status on PMINQ before it is returned.

7. An MSQ inspection MUST be performed on the replaced p box if not on IBM maintenance. A copy of the the

completed MSQ documentation should be returned with the box.

8. After the box is packed up and ready to be returned to RochesterMN, it should be marked " PEX " in large

red letters.

9. McCollisters Movers should be contacted to arrange for pickup and return of the box to Rochester, Mn.

Please identify the return machine as a “PEX”. McCollisters can be reached at 800-257-9595. Customer may

alternatively choose their own carrier of choice. Customer is responsible for shipping costs.