Apple 2003 Annual Report Download - page 127

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5.3.1 Exhibit 4 Products. The Designee may reschedule a Scheduled Shipment Date for an Exhibit 4 Product or any other ASIC
Product that the parties may agree to treat in a similar manner to a later date provided: (i) it sends IBM or its Plant written notice of
the request to reschedule; (ii) the Product being rescheduled has not yet been shipped; and (iii) the requested rescheduled shipment
date is within ninety (90) days after the original Scheduled Shipment Date. If the foregoing requirements are met, no cancellation or
other charge will be imposed by IBM or its Plant for rescheduling.
5.3.2 Other Products. The Designee may reschedule an order for any other Product to a later date only upon prior written notice
to IBM and as set forth in the applicable Attachment to the Agreement. In the event of a reschedule which exceeds the rescheduling
rights set forth in the applicable Attachment, IBM may invoice the Designee the quoted price for any Products that were delivered or
ready for shipment pursuant to that Purchase Order on the date the Designee’s notice was received by IBM or its Plant, and the
cancellation charges set forth in the applicable Attachment for any Products on that Purchase Order that were not already delivered or
ready for shipment when IBM or its Plant received such notice.
5.4 Product Remix without Charge. Designees may request that IBM or its Plant ship a different mix of Products than those originally
ordered. IBM or its Plant will agree to do so without charge provided: (i) the Designee gives written notice to IBM or its Plant, as the case
may be, at least [**] before the Scheduled Shipment Date; (ii) all substituted Products are within the same Product-family as those originally
ordered. Products that utilize the same design revision, materials and manufacturing process from wafer start to module final test are within the
same Product-family; (iii) the total number of units ordered remains the same; (iv) the change will not have any significant negative
manufacturing or financial impact to IBM or its Plant in IBM or its Plant’s sole and reasonable judgment; and (v) subject to availability of
Products that permit the requested remixing. Changes that do not meet the requirements of this Section may be accepted for similar treatment
in IBM’s or its Plant’s sole discretion. If IBM or its Plant agrees to change an order as described in this Section, as a condition of obtaining
such agreement, the Designee will promptly cancel the original Purchase Order without incurring any cancellation or other charge and place a
new one for the modified Product mix.
6.0 PRICES AND PAYMENT
6.1 Prices for Products shall be as determined between IBM and Apple. Apple or IBM will notify Designee of the price of each Product
Designee is authorized to purchase.
6.2 Invoices and Payments. IBM or its Plant shall invoice the Designee after the Products have been shipped, or the Services provided.
Payment will be due within thirty (30) days after the date of invoice. Late payment of invoices may be assessed a charge equal to the lesser of
one
[**] = information redacted pursuant to a confidential treatment request. Such omitted information has been filed
separately with the Securities and Exchange Commission.