When warranty service involves the exchange of a Machine or part, the item IBM or your reseller replaces becomes its property and the replacement becomes yours. You represent that all removed items are genuine and unaltered. The replacement may not be new, but will be in good working order and at least functionally equivalent to the item replaced. The replacement assumes the warranty service status of the replaced item.

Any feature, conversion, or upgrade IBM or your reseller services must be installed on a Machine which is 1) for certain Machines, the designated, serial-numbered Machine and 2) at an engineering-change level compatible with the feature, conversion, or upgrade. Many features, conversions, or upgrades involve the removal of parts and their return to IBM. A part that replaces a removed part will assume the warranty service status of the removed part.

Before IBM or your reseller exchanges a Machine or part, you agree to remove all features, parts, options, alterations, and attachments not under warranty service.

You also agree to

1.ensure that the Machine is free of any legal obligations or restrictions that prevent its exchange;

2.obtain authorization from the owner to have IBM or your reseller service a Machine that you do not own; and

3.where applicable, before service is provided

a.follow the problem determination, problem analysis, and service request procedures that IBM or your reseller provides,

b.secure all programs, data, and funds contained in a Machine,

c.provide IBM or your reseller with sufficient, free, and safe access to your facilities to permit them to fulfill their obligations, and

d.inform IBM or your reseller of changes in a Machine’s location.

IBM is responsible for loss of, or damage to, your Machine while it is 1) in IBM’s possession or 2) in transit in those cases where IBM is responsible for the transportation charges.

Neither IBM nor your reseller is responsible for any of your confidential, proprietary or personal information contained in a Machine which you return to IBM or your reseller for any reason. You should remove all such information from the Machine prior to its return.

Production Status

Each IBM Machine is manufactured from new parts, or new and used parts. In some cases, the Machine may not be new and may have been previously installed. Regardless of the Machine’s production status, IBM’s appropriate warranty terms apply.

Limitation of Liability

Circumstances may arise where, because of a default on IBM’s part or other liability, you are entitled to recover damages from IBM. In each such instance, regardless of the basis on which you are entitled to claim damages from IBM (including fundamental breach, negligence, misrepresentation, or other contract or tort claim), IBM is liable for no more than

1.damages for bodily injury (including death) and damage to real property and tangible personal property; and

2.the amount of any other actual direct damages, up to the greater of U.S. $100,000 (or equivalent in local currency) or the charges (if recurring, 12 months’ charges apply) for the Machine that is the subject of the claim.

Appendix A. Product warranties and notices 121

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IBM 220 manual Production Status, Limitation of Liability