Apple (AAPL)

10.1         Product Warranty.

10.1.1      PowerPC Warranty.  IBM warrants each PowerPC Product delivered hereunder to be free from defects in material and workmanship and to comply with Product specifications at the time of manufacture, as agreed in writing by IBM and Apple, for the notice period of [**] from the date of shipment.

10.1.2      ASIC Product Warranty.  IBM warrants all ASIC Products delivered to be free from defects in material and workmanship and conform to the Product specifications as

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

separately with the Securities and Exchange Commission.

set forth in the RTM for the notice period of [**] from the date of shipment. Apple acknowledges that the functionality of ASIC Products may be contingent on Apple’s designs and, therefore, Apple agrees that such warranty does not apply to the functionality of ASIC Products designed by Apple and manufactured by IBM under this Agreement except to the extent the lack of functionality is due to a defect in materials or workmanship.

10.1.3      Other Product Warranty.  IBM warrants all other standard Products delivered to be free from defects in material and workmanship and to conform to the Product Specifications for the notice period of [**] from the date of shipment unless otherwise stated in an Attachment to the Agreement applicable to such standard Products, and all other custom Products delivered to be free from defects in material and workmanship for the notice period of [**] from date of shipment unless otherwise stated in an Attachment to the Agreement applicable to such custom Products.  Such warranty does not apply to the functionality of custom Products designed by Apple and manufactured by IBM under the Agreement except to the extent the lack of functionality is due to a defect in materials or workmanship.  IBM warrants Services will be performed using reasonable care and ordinary skill.

10.2         The Product warranty does not include defects in or failures of Products that result from (i) an Apple-supplied design; (ii) matters not covered in the Product specification or use outside of the intended operating environment set forth in the applicable Product specifications; (iii) accident, disaster, neglect, abuse, misuse, improper handling, testing, storage or installation after delivery to the carrier, including improper handling in accordance with generally acceptable static sensitive electronic device handling requirements; (iv) alterations, modifications or repairs by Apple or third parties not authorized by IBM in writing; (v) removal or alteration of labels by Apple or a third party; or (vi) failure caused by a product which IBM did not provide or for which IBM is not responsible.  IBM does not warrant uninterrupted or error free operation of the Products or that IBM will correct all defects.

10.3         THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS OR USAGE FOR PARTICULAR PURPOSE OR NON-INFRINGEMENT.

10.4         This warranty is not transferable.  No course of dealing, course of performance, usage of trade, or description of Product or Service shall be deemed to establish a warranty, express or implied.

10.5         If a Designee claims that any Products or Services are nonconforming, the Designee shall, (i) promptly notify IBM, in writing, of the basis for such claim of nonconformity; (ii) follow IBM’s instructions for the prompt return of the Products; and (iii) return such Products freight collect to IBM’s designated facility.  If IBM determines that the returned Products are

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

separately with the Securities and Exchange Commission.

nonconforming and such returned Products were shipped with Apple’s consent prior to their qualification, IBM will, at IBM’s option, repair or replace the defective Products, or issue a credit for the purchase price.  If IBM determines the Products are nonconforming and they were shipped subsequent to their qualification, IBM will issue a credit or rebate for the purchase price.

10.6         Prior to returning any defective Products to IBM, the Designee shall obtain a Return Merchandise Authorization number (“RMA”) from IBM (which IBM will provide to the Designee within [**] of the Designee’s request) and provide the specific description of the problem, by part number for the total quantity of the defective Products.  The Designee shall only return the exact quantity authorized in each RMA by following IBM’s RMA instructions.  Each shipping container shall contain only one (1) RMA.

10.7         IBM’s sole liability and the Designee’s exclusive remedy for breach of warranty shall be limited as stated in this Section 10.

11.0        

10.1         Product
Warranty.

10.1.1      PowerPC Warranty.  IBM warrants each PowerPC Product delivered
hereunder to be free from defects in material and workmanship and to comply with
Product specifications at the time of manufacture, as agreed in writing by IBM
and Apple, for the notice period of [**] from the date of shipment.

10.1.2      ASIC Product
Warranty.  IBM warrants all ASIC Products delivered to be free
from defects in material and workmanship and conform to the Product
specifications as

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

separately with the Securities and Exchange
Commission.

set forth in the RTM for the notice period of [**] from the date of shipment. Apple
acknowledges that the functionality of ASIC Products may be contingent on
Apple’s designs and, therefore, Apple agrees that such warranty does not apply
to the functionality of ASIC Products designed by Apple and manufactured by IBM
under this Agreement except to the extent the lack of functionality is due to a
defect in materials or workmanship.

10.1.3      Other Product Warranty.  IBM warrants all other standard Products
delivered to be free from defects in material and workmanship and to conform to
the Product Specifications for the notice period of [**] from the date of shipment unless otherwise stated in an
Attachment to the Agreement applicable to such standard Products, and all other
custom Products delivered to be free from defects in material and workmanship
for the notice period of [**] from
date of shipment unless otherwise stated in an Attachment to the Agreement
applicable to such custom Products. 
Such warranty does not apply to the functionality of custom Products
designed by Apple and manufactured by IBM under the Agreement except to the
extent the lack of functionality is due to a defect in materials or
workmanship.  IBM warrants Services
will be performed using reasonable care and ordinary skill.

10.2         The Product warranty does not include
defects in or failures of Products that result from (i) an Apple-supplied
design; (ii) matters not covered in the Product specification or use outside of
the intended operating environment set forth in the applicable Product
specifications; (iii) accident, disaster, neglect, abuse, misuse, improper
handling, testing, storage or installation after delivery to the carrier,
including improper handling in accordance with generally acceptable static sensitive
electronic device handling requirements; (iv) alterations, modifications or
repairs by Apple or third parties not authorized by IBM in writing; (v) removal
or alteration of labels by Apple or a third party; or (vi) failure caused by a
product which IBM did not provide or for which IBM is not responsible.  IBM does not warrant uninterrupted or error free
operation of the Products or that IBM will correct all defects.

10.3         THE FOREGOING WARRANTIES ARE IN LIEU OF
ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS OR USAGE FOR PARTICULAR PURPOSE OR NON-INFRINGEMENT.

10.4
        This warranty is not
transferable.  No course of dealing,
course of performance, usage of trade, or description of Product or Service
shall be deemed to establish a warranty, express or implied.

10.5         If a Designee claims that any Products
or Services are nonconforming, the Designee shall, (i) promptly notify IBM, in
writing, of the basis for such claim of nonconformity; (ii) follow IBM’s
instructions for the prompt return of the Products; and (iii) return such
Products freight collect to IBM’s designated facility.  If IBM determines that the returned Products
are

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

separately with the Securities and Exchange
Commission.

nonconforming and such returned
Products were shipped with Apple’s consent prior to their qualification, IBM
will, at IBM’s option, repair or replace the defective Products, or issue a
credit for the purchase price.  If IBM
determines the Products are nonconforming and they were shipped subsequent to
their qualification, IBM will issue a credit or rebate for the purchase price.

10.6         Prior to returning any defective
Products to IBM, the Designee shall obtain a Return Merchandise Authorization
number (“RMA”) from IBM (which IBM will provide to the Designee within [**] of
the Designee’s request) and provide the specific description of the problem, by
part number for the total quantity of the defective Products.  The Designee shall only return the exact
quantity authorized in each RMA by
following IBM’s RMA instructions.  Each shipping container shall contain only one (1) RMA.

10.7         IBM’s sole liability and the Designee’s
exclusive remedy for breach of warranty shall be limited as stated in this
Section 10.

11.0