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 all or any portion of Product quantity of an accepted purchase order without Flextronics’s prior written approval, which, in its sole discretion, may or may not be granted. No reschedule, even if approved by Flextronics, shall relieve Customer from any obligations for any Excess Inventory, Obsolete Inventory or Aged Inventory in accordance with this Section 5.3. Unless expressly indicated otherwise in this Agreement, In no event shall Flextronics have any obligation to hold any Inventory after it becomes either (or any combination of) Excess Inventory, Obsolete Inventory or Aged Inventory that Customer is required to purchase pursuant to any provisions of Section 5.3(d) below, and Customer shall purchase such Inventory in accordance with the applicable provisions of such section. (b) If the Forecast provided by Customer for any period is less than the previous Forecast supplied by Customer that covers the same period, that amount will be considered canceled and Customer will be responsible for any Special Inventory purchased or ordered by Flextronics to support the previous Forecast. (c) For purposes of calculating the amount of Inventory and Special Inventory subject to subsection (a), the “Lead Time” shall be calculated as the Lead Time at the time of(i) procurement of the Inventory and Special Inventory; (ii) cancellation of the purchase order or (iii) termination of this Agreement, whichever is longer. (d) Notwithstanding anything to the contrary in this Agreement Customer shall be responsible for the following:

Cancellation of Orders and Customer Responsibility for Inventory. (a) Customer may not cancel all or any portion of Product quantity of an accepted purchase order without Flextronics’s prior written approval, which, in its sole discretion, may or may not be granted. No reschedule, even if approved by Flextronics, shall relieve relive Customer [***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. Confidential Treatment Requested by Palo Alto Networks, Inc. FLEXTRONICS AND PALO ALTO NETWORKS CONFIDENTIAL from any obligations for any Excess Inventory, Obsolete Inventory or Aged Inventory in accordance with this Section 5.3. Unless expressly indicated otherwise in this Agreement, In no event shall Flextronics have any obligation to hold any Inventory after it becomes either (or any combination of) Excess Inventory, Obsolete Inventory or Aged Inventory that Customer is required to purchase pursuant to any provisions of Section 5.3(d) below, and Customer shall purchase such Inventory in accordance with the applicable provisions of such section. (b) If the Forecast provided by Customer for any period is less than the previous Forecast supplied by Customer that covers the same period, that amount will be considered canceled and Customer will be responsible for any Special Inventory purchased or ordered by Flextronics to support the previous Forecast. (c) For purposes of calculating the amount of Inventory and Special Inventory subject to subsection (a), the “Lead Time” shall be calculated as the Lead Time at the time of(iof (i) procurement of the Inventory and Special Inventory; (ii) -cancellation of the purchase order or (iii) termination of this Agreement, termination-of-this-Agreement whichever is longer. (d) Notwithstanding anything to the contrary in this Agreement Customer shall be responsible for the following:

Cancellation of Orders and Customer Responsibility for Inventory. (a) Customer may not cancel all or any portion of Product quantity of an accepted purchase order without Flextronics’s 's prior written approval, which, in its sole discretion, may or may not be granted. No reschedule, even if approved by Flextronics, shall relieve Customer from any obligations for any Excess Inventory, Obsolete Inventory or Aged Inventory in accordance with this Section 5.3. Unless expressly indicated otherwise in this Agreement, In no event shall Flextronics have any obligation to hold any Inventory after it becomes either (or any combination of) Excess Inventory, Obsolete Inventory or Aged Inventory that Customer is required to purchase pursuant to any provisions of Section 5.3(d) below, and Customer shall purchase such Inventory in accordance with the applicable provisions of such section. (b) If the Forecast provided by Customer for any period is less than the previous Forecast supplied by Customer that covers the same period, that amount will be considered canceled and Customer will be responsible for any Special Inventory purchased or ordered by Flextronics to support the previous Forecast. (c) For purposes of calculating the amount of Inventory and Special Inventory subject to subsection (a), the “"Lead Time” " shall be calculated as the Lead Time at the time of(i) procurement of the Inventory and Special Inventory; (ii) cancellation of the purchase order or (iii) termination of this Agreement, whichever is longer. (d) Notwithstanding anything to the contrary in this Agreement Customer shall be responsible for the following:

Cancellation of Orders and Customer Responsibility for Inventory. (a) Customer may not cancel all or any portion of Product quantity of an accepted purchase order without Flextronics’s prior written approval, which, in its sole discretion, may or may not be granted. No reschedule, even if approved by Flextronics, shall relieve relive Customer [***] Information 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 PALO ALTO NETWORKS CONFIDENTIAL from any obligations for any Excess Inventory, Obsolete Inventory or Aged Inventory in accordance with this Section 5.3. Unless expressly indicated otherwise in this Agreement, In no event shall Flextronics have any obligation to hold any Inventory after it becomes either (or any combination of) Excess Inventory, Obsolete Inventory or Aged Inventory that Customer is required to purchase pursuant to any provisions of Section 5.3(d) below, and Customer shall purchase such Inventory in accordance with the applicable provisions of such section. (b) If the Forecast provided by Customer for any period is less than the previous Forecast supplied by Customer that covers the same period, that amount will be considered canceled and Customer will be responsible for any Special Inventory purchased or ordered by Flextronics to support the previous Forecast. (c) For purposes of calculating the amount of Inventory and Special Inventory subject to subsection (a), the “Lead Time” shall be calculated as the Lead Time at the time of(iof (i) procurement of the Inventory and Special Inventory; (ii) -cancellation of the purchase order or (iii) termination of this Agreement, termination-of-this-Agreement whichever is longer. (d) Notwithstanding anything to the contrary in this Agreement Customer shall be responsible for the following: