Common use of IBM Unique Components Clause in Contracts

IBM Unique Components. Only those components specified in a Product Unique Attachment are considered IBM Unique Components. For IBM Unique Components procured by LSI in accordance with duly issued Work Authorizations, IBM's maximum liability is limited to the costs that LSI can reasonably demonstrate were necessary and appropriate to support WAs , subject to LSI using reasonable efforts to mitigate IBM's liability. IBM shall not be liable for any forward buys of IBM Unique Components in excess of [*], based upon IBM's forecast without IBM's written consent. In addition to other mitigation efforts such as returning IBM Unique Components to .suppliers, or using such components for other WAs hereunder, LSI will (i) cancel all non-liability bearing outstanding orders with its suppliers, (ii) present IBM with the option to pay cancellation charges, if applicable, (iii) use on-hand components to satisfy IBM's forecasted FRU requirements. Furthermore, LSI will provide a current inventory, on a quarterly basis, of the quantity and value of all items in Product Unique Attachments currently in LSI inventory and/or currently on order.

Appears in 2 contracts

Sources: Production Procurement Agreement (Lsi Logic Storage Systems Inc), Production Procurement Agreement (Engenio Information Technologies, Inc.)