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<br />The warranty period for an ICA Program expires when its Program Services are no longer available, During the war- <br />ranty period, IBM provides defect-related Program Services without charge. Program Services are available for a war- <br />ranted ICA Program for at least one year following its general availability. <br /> <br />If an ICA Program does not function as warranted during the first year after you obtain your license and IBM is unable <br />to make it do so, you may return the ICA Program and your money will be refunded. To be eligible, you must have ob- <br />tained your license while Program Services (regardless of the remaining duration) were available for it. Additional <br />terms regarding Program Services are contained in Part 4. <br /> <br />Warranty for IBM Services <br />IBM warrants that it performs each IBM Service using reasonable care and skill and according to its current description <br />(including any completion criteria) contained in this Agreement, an Attachment, or a Transaction Document. <br /> <br />Warranty for Systems <br />Where IBM provides Products to you as a system, IBM warrants that they are compatible and will operate with one an- <br />other, This warranty is in addition to IBM's other applicable warranties. <br /> <br />2.2 Extent of Warranty <br />If a Machine is subject to federal or state consumer warranty laws, IBM's statement of limited warranty included with <br />the Machine applies in place of these Machine warranties. <br /> <br />The warranties stated above will not apply to the extent that there has been misuse (including but not limited to use of <br />any Machine capacity or capability, other than that authorized by IBM in writing), accident, modification, unsuitable <br />physical or operating environment, operation in other than the Specified Operating Environment, improper maintenance <br />by you, or failure caused by a pr09uct for which IBM is not responsible. With respect to Machines, the warranty is <br />voided by removal or alteration of Machine or parts identification labels, <br /> <br />THESE WARRANTIES ARE YOUR EXCLUSIVE WARRANTIES AND REPLACE ALL OTHER WARRANTIES OR <br />CONDITIONS, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OR <br />CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. <br /> <br />Items Not Covered by Warranty <br /> <br />IBM does not warrant uninterrupted or error-free operation of a Product or Service or that IBM will correct all defects, <br /> <br />IBM will identify IBM Machines and ICA Programs that it does not warrant. <br /> <br />Unless IBM speCifies otherwise, it provides Materials, non-IBM Products, and non-IBM Services WITHOUT <br />WARRANTIES OF ANY KIND, However, non-IBM manufacturers, developers, suppliers, or publiShers may provide <br />their own warranties to you, Warranties, if any, for Other IBM Programs and Non-IBM Programs may be found in their <br />license agreements, <br /> <br />Part 3 . Machines <br /> <br />3.1 Production Status <br />Each IBM Machine is manufactured from parts that may be new or used. In some cases, a Machine may not be new <br />and may have been previously installed, Regardless, IBM's appropriate warranty terms apply. <br /> <br />3.2 Title and Risk of Loss <br />When IBM accepts your order, IBM agrees to sell you the Machine described in a Transaction Document. IBM trans- <br />fers title to you or, if you choose, your le~sor when IBM ships the Machine, However, IBM reserves a purchase money <br />security interest in the Machine until IBM receives the amounts due, For a feature, conversion, or upgrade involving <br />the removal of parts which become IBM's property, IBM reserves a security interest until IBM receives payment of all <br />the amounts due and the removed parts. You authorize IBM to file appropriate documents to permit IBM to perfect its <br />purchase money security interest. <br /> <br />For each Machine, IBM bears the risk of loss or damage up to the time it is delivered to the IBM-designated carrier for <br />shipment to you or your designated location, Thereafter, you assume the risk. Each Machine will be covered by insur- <br />ance, arranged and paid for by IBM for you, covering the period until it is delivered to you or your designated location. <br />For any loss or damage, you must 1) report the loss or damage in writing to IBM within 10 business days of delivery <br />and 2) follow the applicable claim procedure, <br /> <br />3.3 Installation <br />You agree to provide an environment meeting the specified requirements for the Machine, <br /> <br />IBM has standard installation procedures. IBM will successfully complete these procedures before it considers an IBM <br />Machine (other than a Machine for which you defer installation or a Customer-set-up Machine) installed, <br /> <br />You are responsible for installing a Customer-set-up Machine and, unless IBM agrees otherwise, a non-IBM Machine. <br /> <br />Machine Features, Conversions and Upgrades <br />IBM sells features, conversions and upgrades for installation on Machines, and, in certain instances, only for installa- <br />tion on a designated, serial-numbered Machine, Many of these transactions involve the removal of parts and their re- <br />turn to IBM. As applicable, you represent that you have the permission from the owner and any lien holders to 1) install <br />features, conversions, and upgrades and 2) transfer ownership and possession of removed parts (which become IBM's <br /> <br />4575-07 (EU) (MK076) Page 7 of 10 <br />City of Sunny Isles Beach, Florida IBM Customer Agreement 07-2006.doc <br /> <br />SIB <br />