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AAPL » Topics » 3.0 PRODUCT DEMAND FORECASTS AND ORDERS

These excerpts taken from the AAPL 10-K filed Dec 19, 2003.

3.0           PRODUCT DEMAND FORECASTS AND ORDERS

3.1           Each month during the term of the Agreement, on or before the last Business Day of the month, Apple will provide IBM a rolling Forecast of Apple’s requirements for Products, the first month of the Forecast being the month following that month in which the Forecast is placed.

3.2           IBM will accept Purchase Orders for Products or Services placed by a Designee in accordance with the terms and conditions of the Agreement.  Purchase Orders will specify (i) the Purchase Order number, (ii) the  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 number), (vii) requested shipment dates, (viii) the name of the Designee’s contact, (ix) Product part numbers and the quantity ordered (in increments of the Minimum Order Quantity (“MOQ”),  (x) the applicable unit price, and (xi) the agreement

 

[**] = information redacted pursuant to a confidential treatment request.  Such omitted information has been filed

separately with the Securities and Exchange Commission.

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.

 

3.0           PRODUCT DEMAND FORECASTS AND ORDERS



3.1           Each month during the term of the
Agreement, on or before the last Business Day of the month, Apple will provide
IBM a rolling Forecast of Apple’s requirements for Products, the first month of
the Forecast being the month following that month in which the Forecast is
placed.



3.2           IBM will accept Purchase Orders for
Products or Services placed by a Designee in accordance with the terms and
conditions of the Agreement.  Purchase
Orders will specify (i) the Purchase Order number, (ii) the  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 number), (vii) requested shipment dates, (viii) the name of
the Designee’s contact, (ix) Product part numbers and the quantity ordered (in
increments of the Minimum Order Quantity (“MOQ”),  (x) the applicable unit price, and (xi) the agreement



 



[**] = information redacted pursuant to a confidential
treatment request.  Such omitted
information has been filed



separately with the Securities and Exchange
Commission.
















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.



 



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Dec 19, 2003

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