Common use of Cancellation, Modification and Reduction of Orders Clause in Contracts

Cancellation, Modification and Reduction of Orders. In the event of an order cancellation, modification or reduction, the Customer shall be responsible for all product assemblies that are completed or in production. The cost of products in production will be determined based on the production status. The Customer is responsible for any NRE and tooling costs or any other one- time charges related to the production. The Customer is also responsible for all raw materials, including excess and obsolete materials, purchased by Varitron related to any order. The Customer will be charged a fifteen percent (15%) handling fee based on the value of the materials. If Varitron determines, at any time and at its sole discretion, that the Customer's financial situation or solvency is inadequate or unsatisfactory, it reserves the right, in addition to its other remedies under these General Terms, to take one or several of the following measures: (i) With five (5) days’ written notice, amend the payment terms described in Section 4 for future and pending orders, including, but not limited to, the possibility of requiring the Customer to make cash payments in advance or on delivery; (ii) Reject any order from the Customer; (iii) Cancel any purchase order already approved;

Cancellation, Modification and Reduction of Orders. In the event of an order cancellation, modification or reduction, the Customer shall be responsible for all product assemblies that are completed or in production. The cost of products in production will be determined based on the production status. The Customer is responsible for any NRE and tooling costs or any other one- time charges related to the production. The Customer is also responsible for all raw materials, including excess and obsolete materials, purchased by Varitron related to any order. The Varitron’s Terms and Conditions of Sales USA Customer will be charged a fifteen percent (15%) handling fee based on the value of the materials. If Varitron determines, at any time and at its sole discretion, that the Customer's financial situation or solvency is inadequate or unsatisfactory, it reserves the right, in addition to its other remedies under these General Terms, to take one or several of the following measures: (i) With five (5) days’ written notice, amend the payment terms described in Section 4 for future and pending orders, including, but not limited to, the possibility of requiring the Customer to make cash payments in advance or on delivery; (ii) Reject any order from the Customer; (iii) Cancel any purchase order already approved;