IBM Notice of 2008 Annual Meeting and Proxy Statement

⁽¹⁾ Type of Award:
AIP = Annual Incentive
Plan PSU = Performance Share Unit
RSU = Restricted Stock Unit
RRSU = Retention Restricted Stock Unit
SO = Non-Qualified Stock Option

⁽²⁾ These amounts will be adjusted based on performance and paid on or before March 15, 2008.

⁽³⁾ Amounts shown are numbers of PSUs. These awards will be adjusted for performance and be payable on February 1, 2010.

⁽⁴⁾ RSUs will vest in three equal annual installments on the first three anniversaries of the grant date.

⁽⁵⁾ The RRSU awarded to Mr. Daniels will vest 100% on December 18, 2012.

⁽⁶⁾ All of the options shown above will vest 100% on May 8, 2010.

⁽⁷⁾ All SOs have an exercise price equal to the average of the high and low prices of IBM stock on the NYSE on the date of grant.

⁽⁸⁾ Amounts in this column represent the market value of the full 2007 awards indicated, calculated in accordance with FAS 123R. For option awards, that number is calculated by multiplying the Black-Scholes value by the number of options awarded. For PSUs, RSUs and RRSUs, that number is calculated by multiplying the average high and low prices of IBM stock on the NYSE on the date of grant by the number of units awarded.