Common use of Quantity Increases and Shipment Schedule Changes Clause in Contracts

Quantity Increases and Shipment Schedule Changes. For any accepted purchase order, Customer may (i) increase the quantity of Products, or (ii) reschedule the quantity of Products and their shipment date as provided in the table below: Any purchase order quantities increased or rescheduled pursuant to this Section may not be subsequently increased or rescheduled without the prior written approval of VEM. Allowable quantity increases are subject to material availability. VEM will use reasonable commercial efforts to meet quantity increases. All other changes in quantity or shipment date beyond the permitted variances set for above, require VEM’s prior written consent and shall be subject to an inventory carrying charge of 1.5% per month of the cost of finished Product, and Inventory and Special Inventory procured to support the changed quantity. If there are extra costs to meet a reschedule or increase in excess of the above limits, VEM will inform Customer for its acceptance and approval in advance.