Apple 2003 Annual Report Download - page 125

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number of the Agreement. Additionally, Purchase Orders placed by a Designee shall clearly state that such Designee is purchasing “as the
agent of Apple Computer, Inc.” Purchase Order Lead Times and any applicable MOQ’s will be as set forth in the relevant Attachment to the
Agreement. Apple or IBM will advise Designee of applicable Purchase Order Lead Times and MOQ’s in an Attachment to this Term Sheet or
by written notice. Purchase Orders may be rejected by IBM if not received in advance with at least the Purchase Order Lead Time.
3.3 IBM and its Plants will respond promptly regarding all Purchase Orders placed under this Agreement, providing a Sales
Acknowledgment accepting or rejecting the Purchase Order within two (2) Business Days after receipt of any Purchase Order placed with the
requisite Purchase Order Lead Time and within eight (8) Business Days after receipt of any Purchase Order placed with less than the requisite
Purchase Order Lead Time.
3.4 IBM will specify the Scheduled Shipment Date for the Products ordered in the applicable Sales Acknowledgment. For Products
ordered with less than the requisite Purchase Order Lead Time, if the Scheduled Shipment Date differs from the requested shipment date, the
Designee may, at its option: (i) cancel all or any portion of the Purchase Order without liability to IBM provided it does so in accordance with
Section 5.1, below; or (ii) require that IBM deliver the Products ordered using priority freight delivery with incremental freight charges at the
Designee’s expense.
3.5 In the event that IBM determines to discontinue the manufacture of a Product under the Agreement, IBM will provide Apple with
written notice of such discontinuance, which notice Apple may provide to Designees authorized to purchase that Product.
4.0 DELIVERY
4.1 The Designee is responsible for all freight and duty charges from IBM’s shipping location. Title and risk of loss will pass to the
Designee upon tender to the carrier for shipment to such 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, Designee
will be provided with written notice of the applicable terms and conditions of such agreement.
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 to the Designee who placed the Purchase Order. If IBM’s supply of the Product and / or Services becomes constrained for any
reason, IBM may reduce the quantities of Products and / or Services to be supplied to Designees.
[**] = information redacted pursuant to a confidential treatment request. Such omitted information has been filed
separately with the Securities and Exchange Commission.