| 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 | 
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| 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 | 
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| the | 
 | warranty | service | status | of the | replaced | item. | 
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| Any | 
 | feature, | conversion, | or | upgrade | IBM | 
 | or | your | reseller | services must | be | installed | 
 | on | a | Machine | |||||||||||||||||
| which | 
 | is | 1) | for | certain | Machines, | the | designated, | Machine | and | 2) | at | an | 
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| 
 | conversion, | or | 
 | upgrade. | Many | features, | 
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| 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. | 
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| 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. | 
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| You | 
 | also | agree | to | 
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| 1. ensure that the Machine is | free | 
 | of | any | 
 | legal | obligations | or | restrictions | that | prevent | its | ||||||||||||||||||||||
| 
 | exchange; | 
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| 2. | 
 | obtain | authorization | from | the | owner | 
 | to | have | 
 | IBM | or | 
 | your | 
 | reseller | service | a | Machine | that | you | |||||||||||||
| 
 | do | not | own; | and | 
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| 3. | 
 | where | applicable, | 
 | before service | is | 
 | provided | 
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| 
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 | a. | follow | the | problem | 
 | determination, | problem | analysis, | and | 
 | service | request | procedures | that | 
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| 
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 | IBM | or | your | reseller | provides, | 
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| 
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 | b. | secure | all | programs, | 
 | data, | and | funds | 
 | contained | in | a | 
 | Machine, | 
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| 
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 | c. | provide | IBM | or | your | 
 | reseller | 
 | with | sufficient, | free, | 
 | and | safe | access | to | your | facilities to | |||||||||||||||
| 
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 | permit | them | to | fulfill | their | obligations, | and | 
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| 
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 | d. | inform | IBM | or | your | 
 | reseller | of | changes | 
 | in | a | Machine's | location. | 
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| 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. | 
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| 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. | 
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| You | 
 | should | remove | all | such | information | from | the | 
 | Machine | prior | to | its return. | 
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| Production | Status | 
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| 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. | 
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| Limitation | 
 | of | Liability | 
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| 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, | 
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| misrepresentation, | or | other | contract | or | tort | claim), | IBM | is | liable | for | no | more | than | 
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| 1. | damages | for | bodily | injury | (including | death) | and | damage | to | real | property | and | tangible | 
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| 
 | personal | 
 | property; | and | 
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| 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. | 
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| 
 | This | 
 | limit | also | applies to IBM's suppliers and | your | reseller. It | is | the | maximum | 
 | for | which | ||||||||||||
| 
 | IBM, | 
 | its | suppliers, | and | your | reseller | are | collectively responsible. | 
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