Common use of Cancellation of Purchase Order Clause in Contracts

Cancellation of Purchase Order. 11.1 Without limiting the generality of the foregoing, the Buyer may, by giving written notice to Seller, terminate any Purchase Order issued pursuant hereto, in whole or in part, if at any time Buyer's customers terminate a related agreement, Purchase Order with Buyer for any reason. 11.2 After Seller's receipt of such notice of termination, Seller shall immediately terminate all work under Buyer's Purchase Order. Buyer's liability to Seller with respect to such termination shall be limited to (x)(i). The purchase price set forth in this Supply Contract for Products not salable to Seller's other customers or useable in Seller's other operations in the ordinary course of business over a reasonable period of time, (ii) Seller's verifiable incurred manufacturing costs for work in process at the date of notice of termination (not to exceed the number of Products ordered and reflected in the Forecast through the manufacturing interval) and (iii) Seller's purchase price of raw material and components necessary through forecasted lead time, including finished goods inventory not returnable or useable in Seller's other operations in the ordinary course of business over a reasonable period of time, minus (y) any salvage value thereof. 11.3 Buyer shall have no obligation to Seller if Buyer terminates its purchase se of Seller's default in accordance with the provisions of Article 11 hereof.

Cancellation of Purchase Order. 11.1 Without limiting the generality of the foregoing, the Buyer may, by giving written notice to Seller, terminate any Purchase Order issued pursuant hereto, in whole or in part, if at any time Buyer's customers terminate a related agreement, Purchase Order with Buyer for any reason. 11.2 After Seller's receipt of such notice of termination, Seller shall immediately terminate all work under Buyer's Purchase Order. Buyer's liability to Seller with respect to such termination shall be limited to (x)(ix). (i) The purchase price set forth in this Supply Contract for Products not salable to Seller's other customers or useable in Seller's other operations in the ordinary course of business over a reasonable period of time, (ii) Seller's verifiable incurred manufacturing costs for work in process at the date of notice of termination (not to exceed the number of Products ordered and reflected in the Forecast through the manufacturing interval) and (iii) Seller's purchase price of raw material and components necessary through forecasted lead time, including finished goods inventory not returnable or useable in Seller's other operations in the ordinary course of business over a reasonable period of time, minus (y) any salvage value thereof. 11.3 Buyer shall have no obligation to Seller if Buyer terminates its purchase se of Seller's default in accordance with the provisions of Article 11 hereof.