This excerpt taken from the IBM DEF 14A filed Mar 10, 2008.
IBM Executive Deferred Compensation Plan (EDCP)
· As described in the 2007 Nonqualified Deferred Compensation Narrative, payment of the named executive officers EDCP accounts (Basic Accounts and any Deferred IBM Shares) is triggered by resignation, retirement or involuntary termination.
· Under the terms of the LTPP, Deferred IBM Shares are subject to rescission if the named executive officer participates in Detrimental Activity within 12 months following the release date.
· The table below indicates the estimated amount and the time and form of payment, determined by either the executives distribution election in effect (if any) or the plans default distribution provision.
· Estimated payments were calculated using the aggregate account balance as of the last business day of the fiscal year ended, without assumptions for the following between such date and the distribution date(s):
· Investment gains and losses on the Basic Account (including dividend equivalent reinvestment for the IBM Stock Fund).
· Fluctuations in the market price of IBM stock for Deferred IBM Shares.
· The tables do not reflect:
· That payment of amounts deferred after December 31, 2004 (and the associated earnings) are required to be delayed six months following termination under Section 409A of the Internal Revenue Code, or
· Any other restriction on such payments imposed by the requirements of Section 409A of the Internal Revenue Code.