Common use of Purchase Order Cancellation Clause in Contracts

Purchase Order Cancellation. 7.1 Customer may not cancel any order scheduled to be shipped within thirty days. In addition, Customer may not cancel any orders for prototypes, pre-production pilot orders, or one-time orders for products unless otherwise agreed to in writing by Celestica. 7.2 Upon written notice to Celestica, Customer may cancel purchase orders for Products in whole or in part. Cancellation charges apply to orders scheduled to ship between 31 days and 90 days from date of the order. Celestica will use reasonable efforts to cancel any components on order and use non-cancelable components to fulfill other customer orders requiring the same components in an attempt to mitigate charges to Customer. Following such efforts, Celestica will advise Customer of the cancellation charges due. Any cancellation charges would not exceed the maximum amounts stated below: Number of days written notice of Applicable payment for each product cancellation received prior to cancelled (expressed as a % of the scheduled ship date purchase order) -------------------------------- ---------------------------------- [*] [*] *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.