Common use of DELAYED ORDERS Clause in Contracts

DELAYED ORDERS. If an order is delayed at Purchaser’s request beyond the original shipping date, PPI will, at PPI’s option for the first three months of delay: A. Store the transformers at a PPI location and charge the customer 1.0% per month or part thereof of the price of the transformers up to a maximum of 3 months, OR B. Store the transformers at the customer’s location and charge the customer .75% per month or part thereof of the price of the transformers up to a maximum of 3 months. For delays beyond 3 months, the charge per month will double for up to a maximum of 6 months. At the end of the 6 month period, units will be will be released for shipment, shipped and/or invoiced per the order. These charges would apply to transformers already built or in the production cycle (8 weeks prior to original ship date) at the time of the requested delay. For units delayed that are not yet in the production cycle a 2% charge per line item will apply plus escalation in accordance with the contract. If the contract does not contain an applicable escalation clause, an additional 2% per quarter escalation will apply to the end of the contract period. If the delay extends beyond the contract period, an additional 2% per quarter escalation will apply. In no case should delays extend beyond 3 months of the contract period without PPI’s prior approval. Purchaser will not be invoiced until the units are released for shipment. Invoices will show the above charges as separate items.

DELAYED ORDERS. If an order is delayed at Purchaser’s request beyond the original shipping date, PPI PPLC will, at PPIPPLC’s option for the first three months of delay: A. Store the transformers at a PPI PPLC location and charge the customer 1.0% per month or part thereof of the price of the transformers up to a maximum of 3 months, OR B. Store the transformers at the customer’s location and charge the customer .75% per month or part thereof of the price of the transformers up to a maximum of 3 months. For delays beyond 3 months, the charge per month will double for up to a maximum of 6 months. At the end of the 6 month period, units will be will be released for shipment, shipped and/or invoiced per the order. These charges would apply to transformers already built or in the production cycle (8 weeks prior to original ship date) at the time of the requested delay. For units delayed that are not yet in the production cycle a 2% charge per line item will apply plus escalation in accordance with the contract. If the contract does not contain an applicable escalation clause, an additional 2% per quarter escalation will apply to the end of the contract period. If the delay extends beyond the contract period, an additional 2% per quarter escalation will apply. In no case should delays extend beyond 3 months of the contract period without PPIPPLC’s prior approval. Purchaser will not be invoiced until the units are released for shipment. Invoices will show the above charges as separate items.