Apple 2003 Annual Report Download - page 98

Download and view the complete annual report

Please find page 98 of the 2003 Apple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

enforce the provisions of this Agreement on behalf of its Authorized Purchasers and IBM reserves the right to enforce the provisions of this
Agreement on behalf of its Plant(s) and any other IBM-Related Companies added to this Agreement. IBM represents and warrants that it has
and will have, throughout the term of this Agreement, an agreement with the Plant, wherein the Plant agrees to be bound to the terms and
conditions set forth in IBM’s sales agreements for IBM Microelectronics Division products.
2.7 Any purchase order submitted by an Authorized Purchaser or Designee during the term of this Agreement (whether or not it
references this Agreement) for products or services from IBM’s Microelectronics Division shall be subject to and governed by the terms and
conditions of this Agreement, unless: (i) there is another signed, written agreement in place between IBM and Apple with respect to the subject
matter of such purchase order; or (ii) the product or service was ordered by a Designee for use in or in connection with its own or another
customer’s product and not in an Apple-branded product. The foregoing shall be in effect regardless of whether Apple and IBM have executed
any Attachment specific to the Products, or Services ordered. If no such Attachment has been executed, then the terms and conditions of the
Attachment most recently executed by Apple and IBM shall control, except with respect to those matters which are uniquely applicable to the
specific Product or Service in question (such as specific NRE charges, Product pricing, specific Items and IBM deliverables, Product names
and descriptions, Purchase Order Lead Times, and Forecasts).
3.0 PRODUCT DEMAND FORECASTS AND ORDERS
3.1 At or before execution of the Agreement and each month during the term of the Agreement, on or before the last Business Day of the
month, Apple will provide IBM an [**] rolling Forecast of Apple’s and its Authorized Purchasers’
requirements for Exhibit 4 Products and any
other ASIC Products that the parties may agree to treat in a similar manner, the first month of the Forecast being the month following that
month in which the Forecast is placed. [**] If Apple discovers an error or omission in an accepted Forecast, Apple may submit a corrected
Forecast; such corrected Forecast will be deemed accepted provided it meets the volume requirements described above and was submitted by
the tenth (10
th
) day of the first month in the Forecast. If IBM becomes concerned that Apple’s Forecasts are inaccurate, IBM may escalate
that concern to the Apple executive designated for such purpose pursuant to Section 21.2. Forecasts shall constitute good faith estimates of
Apple’s anticipated requirements for Products but shall not obligate Apple or any Authorized Purchaser or Designee to purchase the forecasted
units.
3.2 IBM will accept Purchase Orders for Products or Services placed by an Authorized Purchaser or Designee in accordance with the
terms and conditions of this Agreement. Purchase Orders will specify (i) the Purchase Order number, (ii) the Authorized Purchaser’s or
Designee’s tax status (exempt or non-exempt), (iii) the ship-to location, (iv) the bill-to location, (v) the order-from location, (vi) shipping
instructions (including preferred carrier and carrier account
[**] = information redacted pursuant to a confidential treatment request. Such omitted information has been filed separately with the Securities
and Exchange Commission.