Common use of Cancellation of Orders and Customer Responsibility for Inventory Clause in Contracts

Cancellation of Orders and Customer Responsibility for Inventory. (a) Customer may not cancel any portion of Product quantity of an accepted purchase order within [***]. Customer may cancel any portion of Product quantity of an accepted purchase order with a shipment date greater than [***] with Flextronics’s prior written approval. If Customer and Flextronics do not agree in writing to specific terms with respect to any CDM - E - 6 - *** Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. FLEXTRONICS AND CUSTOMER CONFIDENTIAL cancellation, then and Customer will pay Flextronics the Monthly Charges for any such cancellation, calculated as of the first day after such cancellation for any Inventory or Special Inventory procured by Flextronics to support the original delivery schedule. In addition, if Flextronics notifies Customer that such Inventory and/or Special Inventory has remained in Flextronics’s possession for more than [***] since such cancellation, then Customer agrees to immediately purchase from Flextronics such Inventory and/or Special Inventory by paying the Affected Inventory Costs.