Apple 2003 Annual Report Download - page 126

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4.4 If IBM or its Plant foresees any delivery delay with respect to an accepted Purchase Order, IBM will provide prompt notice to Apple
and the Designee who placed the Purchase Order. [**]
5.0 CANCELLATION AND RESCHEDULING
5.1 Cancellation. Designees may cancel accepted Purchase Orders for Products for their convenience at any time, provided they pay
IBM or its Plant applicable cancellation charges as set forth in this Section 5.1.
5.1.1 Exhibit 4 Products. Designees may cancel Purchase Orders for Exhibit 4 Products (and any other ASIC Product that the
parties may agree to treat in a similar manner) without charge, provided they give IBM written notice [**] prior to the original
Scheduled Shipment Date. If the Designee provides IBM written notice canceling a Purchase Order for such Products [**] prior to the
original Scheduled Shipment Date, the Designee will pay IBM [**] of the purchase price of the Products ordered. Promptly after
receiving notice canceling a Purchase Order for Exhibit 4 Products, IBM will provide Apple and the Designee who placed the
Purchase Order written notice of any applicable cancellation charges. The Designee will promptly after receiving IBM’s notice, issue
a Purchase Order to IBM for such charges, and IBM will invoice the same upon receipt.
5.1.2 Other Products. If the Designee provides IBM written notice canceling a Purchase Order for any other Product, the
Designee shall pay the cancellation charges set forth in the applicable Attachment to the Agreement. IBM will provide Apple and the
Designee prompt written notice of any applicable cancellation charges. The Designee canceling the Purchaser Order will, upon
receipt of IBM’s written notice, promptly issue a Purchase Order to IBM for such charges and IBM will invoice the same upon
receipt.
5.2 If a Designee cancels a Purchase Order for Services for its convenience, IBM will cease further work in connection with the Purchase
Order and the Designee will pay IBM for reasonable costs actually incurred by IBM pursuant to such Purchase Order before the Designee’s
notice of cancellation. IBM must make its claim for cancellation charges and provide supporting documentation within forty-five (45) days of
the date of cancellation. Any claim not made within such forty-five (45) day period will be deemed waived. In the event IBM is more than
twenty-one (21) days late in completing a Purchase Order for Services, the Designee may cancel such Purchase Order and the Designee’s sole
obligation will be to pay IBM for any deliverables ordered pursuant to that Purchase Order that were actually completed or delivered by IBM
before the Designee’s notice of cancellation, provided that any periods of such delay that were caused by the Designee shall be excluded for
purposes of calculating the length of the delay hereunder.
5.3 Rescheduling. The Designee may reschedule accepted Purchase Orders for Products in accordance with this Section 5.3.
[**] = information redacted pursuant to a confidential treatment request. Such omitted information has been filed
separately with the Securities and Exchange Commission.