Common use of Cancellation, Variation, or Suspension Clause in Contracts

Cancellation, Variation, or Suspension. a. Unless expressly stated otherwise in these General Terms of Sale, a Contract may be cancelled, varied or suspended only by notice in writing and only if such notice is accepted in writing by the other party. b. In the event that the Purchaser cancels, varies or suspends the Contract, the Purchaser shall compensate the Seller for costs as required below: • In the event of variation or suspension, the Purchaser shall compensate Seller for any applicable direct costs, such as, but not limited to, minimum order quantities, long lead times of raw material, storage, preservation (including anti-corrosion measures) and transport costs, (excluding any claim for damages or profits) arising from such variation or suspension which will be advised by the Seller to the Purchaser after notification of the variation or suspension. • In the event of cancellation, the Purchaser of customized Equipments or parts shall compensate Voith for the cumulative cancellation costs incurred depending upon the milestone reached in the table below: Elapsed contract lead time Cancellation cost (as % of contract value) 0%-9% 10% 10%-19% 18% 20%-29% 30% 30%-39% 48% 40%-49% 62% 50%-59% 72% 60%-69% 80% 70%-79% 88% 80%-89% 95% 90%-100% 100% • In the event of cancellation, the Purchaser of non-customised Equipments or parts shall compensate Voith fair and reasonable costs as quantified by the Seller for work-in- progress at the time of termination. c. The Seller shall submit its claim arising under this Clause 2.5 no later than [30] days from the date on which such variation / suspension / cancellation is issued by the Seller, or, in case of variation / suspension / cancellation issued by the Purchaser, within [30] days of receipt of the notice from the Purchaser. If the Purchaser disagrees with the calculation of the claim hereunder by the Seller, Purchaser shall raise its objections in writing no later than [30] days from receipt of the claim from the Seller. Purchaser shall provide adequate reasoning for its objections. If reasoned objections to the Seller claim is not received by the Seller within [30] days of issuance of its claim, the Seller’s claim will be deemed to have been accepted by the Purchaser. d. Payment of Seller claims hereunder shall be required in accordance with Clause 4.

Cancellation, Variation, or Suspension. a. Unless expressly stated otherwise in these General Terms of Sale, a Contract may be cancelled, varied or suspended only by notice in writing and only if such notice is accepted in writing by the other party. b. In the event that the Purchaser cancels, varies or suspends the Contract, the Purchaser shall compensate the Seller for costs as required below: • In the event of variation or suspension, the Purchaser shall compensate Seller for any applicable direct costs, such as, but not limited to, minimum order quantities, long lead times of raw material, storage, preservation (including anti-corrosion measures) and transport costs, (excluding any claim for damages or profits) arising from such variation or suspension which will be advised by the Seller to the Purchaser after notification of the variation or suspension. • In the event of cancellation, the Purchaser of customized Equipments or parts shall compensate Voith for the cumulative cancellation costs incurred depending upon the milestone reached in the table below: Elapsed contract lead time Cancellation cost (as % of contract value) 0%-9% 10% 10%-19% 18% 20%-29% 30% 30%-39% 48% 40%-49% 62% 50%-59% 72% 60%-69% 80% 70%-79% 88% 80%-89% 95% 90%-100% 100% • In the event of cancellation, the Purchaser of non-customised Equipments or parts shall compensate Voith fair and reasonable costs as quantified by the Seller for work-in- in-progress at the time of termination. c. The Seller shall submit its claim arising under this Clause 2.5 no later than [30] days from the date on which such variation / suspension / cancellation is issued by the Seller, or, in case of variation / suspension / cancellation issued by the Purchaser, within [30] days of receipt of the notice from the Purchaser. If the Purchaser disagrees with the calculation of the claim hereunder by the Seller, Purchaser shall raise its objections in writing no later than [30] days from receipt of the claim from the Seller. Purchaser shall provide adequate reasoning for its objections. If reasoned objections to the Seller claim is not received by the Seller within [30] days of issuance of its claim, the Seller’s claim will be deemed to have been accepted by the Purchaser. d. Payment of Seller claims hereunder shall be required in accordance with Clause 4.