Apple 2003 Annual Report Download - page 110

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13.0 WARRANTIES
13.1 Product Warranty.
13.1.1 PowerPC Warranty. IBM warrants each PowerPC Product delivered hereunder to be free from defects in material and
workmanship and to comply with Product specifications at the time of manufacture, as agreed in writing by IBM and Apple, for the
notice period of [**] from the date of shipment.
13.1.2 ASIC Product Warranty. IBM warrants all ASIC Products delivered to be free from defects in material and workmanship
and conform to the Product specifications as set forth in the RTM for the notice period of [**] from the date of shipment. Apple
acknowledges that the functionality of ASIC Products may be contingent on Apple’s designs and, therefore, Apple agrees that such
warranty does not apply to the functionality of ASIC Products designed by Apple and manufactured by IBM under this Agreement
except to the extent the lack of functionality is due to a defect in materials or workmanship.
13.1.3 Other Product Warranty. IBM warrants all other standard Products delivered to be free from defects in material and
workmanship and to conform to the Product Specifications for the notice period of [**] from the date of shipment unless otherwise
stated in an Attachment applicable to such standard Products, and all other custom Products delivered to be free from defects in
material and workmanship for the notice period of [**] from date of shipment unless otherwise stated in an Attachment applicable to
such custom Products. Apple acknowledges that the functionality of such other custom Products may be contingent on Apple’s
designs and, therefore, Apple agrees that such warranty does not apply to the functionality of Products designed by Apple and
manufactured by IBM under this Agreement except to the extent the lack of functionality is due to a defect in materials or
workmanship. IBM warrants Services will be performed using reasonable care and ordinary skill.
13.2 The Product warranty does not include defects in or failures of Products that result from (i) an Apple-supplied design; (ii) matters not
covered in the Product specification or use outside of the intended operating environment set forth in the applicable Product specifications; (iii)
accident, disaster, neglect, abuse, misuse, improper handling, testing, storage or installation after delivery to the carrier, including improper
handling in accordance with generally acceptable static sensitive electronic device handling requirements; (iv) alterations, modifications or
repairs
[**] = information redacted pursuant to a confidential treatment request. Such omitted information has been filed separately with the Securities
and Exchange Commission.