Common use of Cancellation of Order Clause in Contracts

Cancellation of Order. 3.4.1 Prior to shipment, except for Orders for Custom Products, the Distributor shall have the right to cancel an Order upon written notice to the Seller accompanied by the payment to the Seller of a cancellation charge calculated as follows (subject to Section 3.4.3 with respect to Orders for Custom Products): AMOUNT OF NOTICE CANCELLATION CHARGE More than 90 days none 61 to 90 days 10% of the purchase price of each cancelled unit. 31 to 60 days 20% of the purchase price of each cancelled unit. Less than 15 days 100% of the purchase price of each cancelled unit. 3.4.2 In the event the Distributor cancels an Order which was previously rescheduled in accordance with Section 3.3 of this Agreement, the original delivery date will apply for purposes of calculating the cancellation charges under this Section 3.4. 3.4.3 Prior to shipment, the Distributor shall have the right to cancel an Order for Custom Products upon written notice to Seller accompanied by payment for the portion of the Order manufactured and in the process of manufacture plus payment in accordance with the schedule set forth in Section 3.4.1 for all remaining units not yet manufactured.