Common use of Acceptance of Purchase Order Clause in Contracts

Acceptance of Purchase Order. A Purchase Order submitted by Sub-Distributor shall be deemed to have been accepted by, and shall be binding upon, Distributor when it is countersigned by Distributor or if it is not rejected by Distributor, in whole or in part, by written notice to Sub-Distributor sent within five (5) business days of its receipt by Distributor. Notwithstanding anything contained herein to the contrary, Distributor may only reject, cancel, or delay any Purchase Order placed by Sub-Distributor, whether or not such Purchase Order has been previously accepted by Distributor, pursuant to Section 3.B. below. In the event Distributor is unable to fill all of a Purchase Order for any reason, it shall promptly notify Sub-Distributor and Sub-Distributor shall have the right, in its discretion, to cancel the subject Purchase Order. Sub-Distributor may change or cancel any of its Purchase Orders without penalty so long as Sub-Distributor provides written notice to Distributor and the Products have not yet been shipped; provided that Sub-Distributor shall pay to Distributor a fee of twenty five percent (25%) of the aggregate purchase price of the Products that are subject to any Purchase Order which has been materially changed or canceled by Sub-Distributor.

Acceptance of Purchase Order. A Purchase Order submitted by Sub-Distributor shall be deemed to have been accepted by, and shall be binding upon, Distributor when it is countersigned by Distributor or if it is not rejected by Distributor, in whole or in part, by written notice to Sub-Distributor sent within five (5) business days of its receipt by Distributor. Notwithstanding anything contained herein to the contrary, Distributor may only reject, cancel, or delay any Purchase Order placed by Sub-Distributor, whether or not such Purchase Order has been previously accepted by Distributor, pursuant to Section 3.B. below. In the event Distributor is unable to fill all of a Purchase Order for any reason, it shall promptly notify Sub-Distributor and Sub-Distributor shall have the right, in its discretion, to cancel the subject Purchase Order. Sub-Distributor may change or cancel any of its Purchase Orders without penalty so long as Sub-Distributor provides written notice to Distributor and the Products have not yet been shipped, or otherwise delivered to Sub-Distributor; provided provided, that Sub-Distributor shall pay to Distributor a fee of twenty five percent (25%) of the aggregate purchase price of the Products that are subject to any Purchase Order Order, which has been materially changed or canceled by Sub-Distributor.