IBM Software Subscription for IBM iseries Offering Saves Time and Improves Your IT Budgeting

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1 Software Announcement January 8, 2002 IBM Software Subscription for IBM iseries Offering Saves Time and Improves Your IT Budgeting Overview If you use OS/400 V4, or later, IBM Software Subscription for IBM iseries gives you a simple way to plan for the cost of keeping current with iseries software. Software Subscription offers: Software enhancements, within contract period, at no additional charge, for eligible iseries software you have acquired for your system Single price per machine Payment options changed to 1-year and 3-year prepay Subscription After License replaces the Currency Access Fee Action required: Order IBM Software Subscription for iseries when you purchase your system and software. Simply request software updates as they are announced by IBM. Future release and version updates of eligible iseries software will be available to iseries customers with a current subscription agreement. At the end of your existing software subscription coverage, you can renew at the then-current software subscription offering level. If you choose not to order IBM Software Subscription for iseries when you purchase your system, or the renewal is not received by IBM prior to the renewal date, Subscription After License must be purchased to reinstate IBM Software Subscription for iseries coverage. Subscription After License is the charge for IBM Software Subscription for iseries when there is a lapse in subscription coverage, or the subscription coverage was not ordered when V4, or later, was purchased. For software eligible for this offering, refer to the Eligible Program List at: servers/eserver/iseries/sftsol/ subscript2.htm Key Prerequisites OS/400 V4, or later Planned Availability Date February 12, 2002 At a Glance Simplify and improve your I/T budgeting with IBM Software Subscription for iseries Subscription coverage for most iseries software products on a single system One- and three-year prepay options available Receive future software updates within contract period at no additional charge For ordering, contact: Your IBM representative, an IBM Business Partner, or IBM Americas Call Centers at 800-IBM-CALL Reference: AE001 This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM United States IBM is a registered trademark of International Business Machines Corporation

2 Description Software Updates Subscription entitles you to all future updates available during the contract period for any eligible products you have licensed on your IBM iseries system. You must have this offering to obtain later software updates without purchasing a new license. An update consists of a new release, version, or a replacement program as determined by IBM. IBM does not guarantee that an update will be announced. You may have to buy and install a hardware upgrade to use an updated licensed program. You must order updates you are entitled to through normal channels. The updates will be shipped to you at no additional charge. Additional licenses, additional users for user-based programs, optional features, and software processor upgrades are chargeable and not included in entitled updates. Product updates will not be automatically shipped to you. As updates are announced, contact your IBM representative or an IBM Business Partner to order the updates. Software Subscription Renewal At the end of your existing software subscription coverage, you will have the option to renew according to the terms and conditions of the then current software subscription offering. It is the customer s responsibility to ensure that the renewal order is either placed directly with IBM no later than the day before the renewal date, or with an IBM Business Partner in time to allow the order to arrive at IBM no later than the day before the renewal date. If the customer chooses not to renew IBM Software Subscription for iseries, or the renewal is not received by IBM prior to the renewal date, Subscription After License will need to be purchased to reinstate the IBM Software Subscription for iseries. Customers with IBM Software Subscription for iseries and contracts purchased before February 12, 2002, will remain entitled to software product updates during the term of their contract including any software products listed on the Eligible Products List before February 12, 2002, for which they had a license. Subscription After License has replaced the Currency Access Fee. Some products that were included in the previous subscription offering are removed from this subscription offering because they are past end of service. Reference Information Refer to Software Announcement , dated July 10, Trademarks iseries is a trademark of International Business Machines Corporation. QMF, AFP, System/38, WebSphere, DataPropagator, Advanced Function Printing, and the e-business logo are trademarks of International Business Machines Corporation in the United States or other countries or both. OS/400,, DB2, CICS, Infoprint, VisualAge, and Operating System/400 are registered trademarks of International Business Machines Corporation in the United States or other countries or both. Windows is a registered trademark of Microsoft Corporation. Domino is a trademark of Lotus Development Corporation and/or IBM Corporation. Other company, product, and service names may be trademarks or service marks of others. Euro Currency These programs are not impacted by euro currency. Product Positioning Refer to Software Announcement , dated April 28, 1998, for the original IBM Software Subscription for announcement. The IBM Software Subscription for iseries changes by now excluding some distributed software products, and by eliminating the monthly and two-, four-, and five-year prepayment options. Related distributed software products will not appear on the Eligible Products List starting February 12, 2002, for new contracts and renewals. Refer to Software Announcement , dated July 10,

3 IBM US Announcement Supplemental Information January 8, 2002 Eligible Programs List Description Program Number Software updates (release and version updates) are provided under IBM Software Subscription for IBM iseries. The following list represents the eligible products for IBM Software Subscription for iseries on the day of this announcement. For the current list of software programs eligible for IBM Software Subscription for iseries refer to the Eligible Program List Web site at: iseries/sftsol/subscript2.htm Description Program Number DB2 Forms for iseries V G14 DB2 Warehouse Manager for iseries V G23 QMF for Windows for iseries V G24 DB2 Table Editor for iseries V G84 DB2 Web Query Tool for iseries V G85 Cryptographic Access Provider 56-bit for 5722-AC2 iseries Cryptographic Access Provider 128-bit 5722-AC3 for iseries AFP Utilities for 5722-AF1 Advanced DBCS Printer Support for 5722-AP1 Backup Recovery and Media Services for 5722-BR1 iseries iseries Client Encryption (56-bit) 5722-CE2 iseries Client Encryption (128-bit) 5722-CE3 Communications Utilities for iseries 5722-CM1 Cryptographic Support for 5722-CR1 System/38 Utilities for 5722-DB1 DB2 UDB Extenders for iseries V DE1 CICS Transaction Server for iseries 5722-DFH Business Graphics Utility for 5722-DS1 Infoprint Server for iseries 5722-IP1 Advanced Job Scheduler for iseries 5722-JS1 Managed System Services for iseries 5722-MG1 Application Program Driver for 5722-PD1 Performance Tools for iseries 5722-PT1 Query for iseries 5722-QU1 System Manager for iseries 5722-SM1 OS/ SS1 DB2 Query Manager and SQL Development 5722-ST1 Kit for iseries WebSphere Development Studio for iseries 5722-WDS iseries Client Access Family 5722-XW1 Connect for iseries 5733-B2B Integrated Domino Fax for iseries 5733-FXD Infoprint Designer for iseries 5733-ID1 WebSphere Payment Manager for iseries, 5733-PY2 V2.2 Cryptographic Access Provider 40-bit for 5769-AC1 Cryptographic Access Provider 56-bit for iseries Cryptographic Access Provider 128-bit for iseries AFP Utilities for Advanced DBCS Printer Support for Backup Recovery and Media Services for ILE COBOL for Client Encryption (40-bit) Client Encryption (56-bit) Client Encryption (128-bit) Point-of-Sale Communications Utility for Application Development ToolSet Client Server for Communications Utilities for Cryptographic Support for ILE C for VisualAge for C++ for System/38 Utilities for DCE Base Services for DCE DES Library Routines for CICS for DB2 DataPropagator for iseries V7.1 Business Graphics Utility for Advanced Function Printing DBCS Fonts for Advanced Function Printing Fonts for Job Scheduler for Managed System Services for Application Program Driver for Performance Tools for Application Development ToolSet for Query for ILE RPG for System Manager for Operating System/400 DB2 Query Manager and SQL Development Kit for VisualAge Generator Server for WebSphere Development Studio for iseries Client Access Family for Windows Advanced Function Printing PrintSuite for Facsimile Support for iseries Facsimile Support for Offering Information 5769-AC AC AF AP BR CB CE CE CE CF CL CM CR CX CX DB DC DC DFH 5769-DP DS FN FNT 5769-JS MG PD PT PW QU RG SM SS ST VG WDS 5769-XW AF FAX 5798-TBY Product information is available through Offering Information (OITOOL) at: This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM United States IBM is a registered trademark of International Business Machines Corporation

4 Technical Information Software Requirements: OS/400 V4, or later. Security, Auditability, and Control The customer is responsible for evaluation, selection, and implementation of security features, administrative procedures, and appropriate controls in application systems and communication facilities. Ordering Information Initial Order: An order for Software Subscription for iseries requires ordering the applicable offering option in the order configurator. The charge is based on the iseries processor group on which the software runs. Specify the appropriate type/model and machine-group feature number as follows: One Year Prepay Ordering Information (5733-SW1): Charge Features Prepayment/one-time charge (OTC) options (one year). Specify the applicable 5733-SW1 and processor-based feature number. Processor Group Feature Number (5733-SW1) P05 P10 P20 P30 P40 P50 1-Year Prepay OTC Subscription After License OTC Three-Year Prepay Ordering Information (5733-SW3): Charge Features Prepayment/OTC Options (three years). Specify the applicable 5733-SW3 and processor-based feature number. Processor Group Feature Number (5733-SW3) P05 P10 P20 P30 P40 P50 3-Year Prepay OTC Subscription After License OTC Processor Group Upgrade Some hardware upgrades move a system to a higher processor-based group. When this occurs, customers must pay a processor-based upgrade charge for both the processor-based software programs and for software subscription. When upgrading a processor from one group to a higher group, select the appropriate group-to-group feature number and multiply by the number of full or partial months remaining from the time of the upgrade to the end of the applicable one- or three-year contract. A group-to-group upgrade to the applicable 5733-xxx prepay option will delete the old processor-based feature number and adds a processor-based monthly-rate feature number, times the remaining months in the contract. Example: When upgrading a three-year subscription (5733-SW3) in the P10 group with 11 months remaining in the contract to a processor in the P20 group, delete P10 feature #3268 and add feature #3278 times a quantity of 11. Not all processor upgrades result in additional charges. Licensing Terms and Conditions IBM Software Subscription for iseries is provided under the IBM Agreement for Software Subscription. Customers subscribing to IBM Software Subscription for iseries are entitled to updates to eligible installed programs available during the contract period and for which they have a valid IBM software license on their system. Updates will be provided as they become available and as customers order them, for no additional charge. IBM Software Subscription for iseries is for a one-year minimum term, and is also available in three-year extended contract periods, on a prepayment basis. It is the customer s responsibility to ensure that the renewal order is either placed directly with IBM no later than the day before the renewal date, which is the expiration date of the existing contract, or with an IBM Business Partner in time to allow the order to arrive at IBM no later than the day before the renewal date. If the customer chooses not to renew software subscription, or the renewal is not received by IBM prior to the document renewal date, a Subscription After License will need to be purchased to reinstate the software subscription coverage. The subscription contracts of customers migrating to the new offering will not automatically renew. If no response is received from the customer by the expiration date of the contract period, the IBM Software Subscription for iseries contract will expire. IBM Software Subscription for iseries charges are based on the software processor group of the customer s iseries or eligible hardware. Should the customer upgrade their system to a different group during the term of their contract, the charge for this offering will be adjusted accordingly. Customers who upgrade to a higher group will be charged the difference between their new, higher group and the old, lower group prices, prorated to reflect the time remaining in their contract term. Customers who upgrade to a lower group will not receive a refund or credit. The price adjustment is effective upon installation of the system upgrade. Standard group-to-group software program license upgrade charges also continue to apply. IBM Software Subscription for iseries can be terminated by the customer with at least one-month s written notice. No refunds of prior prepaid amounts will be provided for such terminations. If IBM withdraws the IBM Software Subscription for iseries for which the customer has prepaid prior to the end of the term for which the customer prepaid, IBM will give a prorated refund. For use-based programs, the customer is entitled to the number of users or resources for which they are licensed when acquiring the update. If additional users or resources are required, they must be ordered and paid for separately

5 IBM Software Subscription for iseries is available for iseries and eligible systems running OS/400 V4, or later. IBM Software Subscription for iseries may be redesignated to another system within the enterprise that is running the same or a more current release of OS/400. If the offering is redesignated to a system with a different processor group, the charge for this offering may be adjusted. Customers who redesignate the offering to a higher group will be charged the difference between their new, higher group and the old, lower group prices, prorated to reflect the time remaining in their contract. Customers who redesignate to a lower group will not receive a refund or credit. The price adjustment is effective upon redesignation of the offering. IBM Software Subscription for iseries is not transferable out of an enterprise. IBM reserves the right to withdraw from the software subscription Eligible Products List products which have passed their end of service date. Such withdrawals are effective immediately for all outstanding software subscription contracts. Software subscription does not extend the announced end of service date of any eligible product. The supported programs must be on a system running OS/400 V4, or later. Future updates to programs on the Eligible Program List will be generated using the order configurator. You must have the IBM Software Subscription for iseries offering to be entitled to a free update. If you do not have a subscription and want a future update, Subscription After License must be ordered. IBM Software Subscription for iseries allows customers to upgrade from eligible V4 or later products. Customers who want to upgrade from V3 software (5716-xxx) do not use subscription, but must pay a version upgrade charge for those programs. Subscription After License replaces the Currency Access Fee. In the past, customers without software subscription who wanted to acquire software updates were required to pay a Currency Access Fee in addition to software subscription. With this announcement, these customers now use the Subscription After License option. Customers have 30 days from being invoiced for V4, or later, iseries software to enroll in IBM Software Subscription for iseries. Customers who choose to delay ordering IBM Software Subscription for iseries more than 30 days after the invoice date of V4, or later, will pay a higher charge for IBM Software Subscription for iseries known as Subscription After License. Customers who terminate their subscription and reorder more than 30 days later will also be subject to Subscription After License. Customers purchasing a used or iseries with V5, or later, will not be subject to Subscription After License if they have the most current release of OS/400 installed and order IBM Software Subscription for iseries within 30 days of the purchase of their or iseries. This announcement does not change the terms and conditions for licensing software in an LPAR environment which were covered in the V5R1 announcement letter. Refer to Software Announcement , dated April 23, In general, a customer can run more current Version/Release/Modifications if they have the applicable software subscription or software maintenance for the products installed in multiple partitions. Entitlement: IBM requires customers to have Proofs of Entitlement for all products they wish to have covered by the IBM Software Subscription for iseries. Contract Information IBM Software Subscription for iseries is provided under the IBM Agreement for Software Subscription (Z ). A signature is not required for this document. Limited Warranty Applies: Yes Copy and Use on Home/Portable Computer: No Volume Orders (IVO): Yes, contact your IBM representative. Passport Advantage Applies: No AIX /UNIX Upgrade Protection Applies: No Entitled Upgrade for Current AIX/UNIX Upgrade Protection Licensees: No iseries Software Subscription Applies: Yes Variable Charges Apply: Yes Educational Allowance Available: Yes, 15% education allowance applies to qualified education institution customers. Charges Contact your IBM representative for charges information for this announcement. Order Now Use Priority/Reference Code: AE001 Phone: Fax: Internet: Mail: 800-IBM-CALL 800-2IBM-FAX ibm direct@vnet.ibm.com IBM Atlanta Sales Center Dept. AE001 P.O. Box 2690 Atlanta, GA You can also contact your local IBM Business Partner or IBM representative. To identify them, call 800-IBM-4YOU. Note: Shipments will begin after the planned availability date. Trademarks iseries is a trademark of International Business Machines Corporation. QMF, AFP, System/38, WebSphere, DataPropagator, Advanced Function Printing, Intelligent Miner, Net.Commerce, VisualInfo, Netfinity Manager, and the e-business logo are trademarks of International Business Machines Corporation in the United States or other countries or both. DB2,, CICS, Infoprint, OS/400, VisualAge, Operating System/400, AIX, MQSeries, ImagePlus, CallPath, OS/2, OfficeVision, and OS/2 Warp are registered trademarks of

6 International Business Machines Corporation in the United States or other countries or both. Windows is a registered trademark of Microsoft Corporation. Java is a trademark of Sun Microsystems, Inc. UNIX is a registered trademark is a registered trademark of the Open Company in the United States and other countries. Domino is a trademark of Lotus Development Corporation and/or IBM Corporation. Lotus is a registered trademark of Lotus Development Corporation and/or IBM Corporation. Other company, product, and service names may be trademarks or service marks of others

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