Apple 2003 Annual Report Download - page 100

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(vii) the Purchase Order requests shipment of a PowerPC Product with a specified frequency that exceeds the then available
product frequencies as set forth in Exhibit 4.
If IBM rejects a Purchase Order for any of the above-stated reasons, IBM will provide Apple with prompt written notice of such rejection, and
Apple may escalate the discussions to the IBM executive designated for such purpose pursuant to Section 21.2.
3.4 IBM will specify the Scheduled Shipment Date for the Products ordered in the applicable Sales Acknowledgment. [**]
3.5 Nothing herein shall prevent IBM from discontinuing the manufacture of a particular Product. In the event that IBM decides to do
so, however, IBM will provide Apple with at least [**] written notice before it discontinues any Product. IBM will be obligated to accept and
fulfill all orders for such Products placed by an Authorized Purchaser or Designee within the [**] notice period, except to the extent IBM does
not have manufacturing capacity available to manufacture quantities ordered [**]. Apple must take final delivery of all Products ordered
pursuant to this Section during the [**]
notice period [**] unless IBM in its sole discretion extends the last date of delivery in order to allow for
the manufacture of quantities [**] . To the extent IBM accepts Purchase Orders issued pursuant to this Section for quantities in excess of [**] ,
IBM shall not be obligated under Section 3.3 to respond to such Purchase Order within [**] Business Days, [**] This Section 3.5 shall not
apply to any products sold or manufactured by IBM as of the date of the Agreement other than those Products set forth in an Attachment.
4.0 DELIVERY
4.1 The Authorized Purchaser or Designee is responsible for all freight and duty charges from IBM’s shipping location. Title and risk of
loss will pass to the Authorized Purchaser or Designee upon tender to the carrier for shipment to such Authorized Purchaser or Designee.
4.2 In the event that IBM and Apple enter into an agreement to provide just-in-time delivery of Product utilizing hub locations, such
agreement will be set forth in a separate written agreement as an attachment to this Agreement and signed by each party.
4.3 If IBM or its Plant foresees any supply constraint with respect to an accepted Purchase Order, IBM will provide prompt notice to
Apple and, if the Purchase Order was placed by someone other than Apple, to the Authorized Purchaser or Designee who placed the Purchase
Order. Apple and IBM will then discuss likely shipment recovery plans, and if they are unable to do so to Apple’s satisfaction, the parties will
immediately escalate the issue to the IBM and Apple executives designated for such purpose pursuant to Section 21.2 and the parties will use
reasonable efforts to promptly resolve the discrepancy. If IBM’s supply of the Product and / or
[**] = information redacted pursuant to a confidential treatment request. Such omitted information has been filed separately with the Securities
and Exchange Commission.