Common use of Cancellation of Purchase Orders; Penalties Clause in Contracts

Cancellation of Purchase Orders; Penalties. Connetics may cancel a purchase order for production in accordance with the provisions in this Section. In addition to any charges for Unique Materials pursuant to SECTION 3.12, Connetics shall be assessed a charge for cancellation, determined according to the following schedule: (a) If Connetics gives at least forty-five (45) calendar days notice prior to the manufacturing date assigned by APG pursuant to SECTION 3.5, there shall be no penalty for cancellation. (b) If Connetics gives less than forty-five (45) calendar days and more than fourteen (14) days notice, APG may invoice Connetics for, and Connetics shall be required to pay to APG an amount equal to thirty percent (30%) of the amount owed under the purchase order, calculated in accordance with EXHIBIT B; provided, however, that APG must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product on the originally scheduled date, and no charge shall be assessed to Connetics if such efforts are successful. (c) If Connetics gives fourteen (14) days or less notice, APG may invoice Connetics for, and Connetics shall be required to pay to APG an amount equal to, fifty percent (50%) of the amount owed under the purchase order, calculated in accordance with EXHIBIT B; provided, however, that APG must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product on the originally scheduled date, and no charge shall be assessed to Connetics if such efforts are successful.

Cancellation of Purchase Orders; Penalties. Connetics The Customer may cancel a purchase order for production in accordance with the provisions in this Section. In addition to any charges The charge for Unique Materials pursuant to SECTION 3.12, Connetics cancellation shall be assessed a charge for cancellation, determined according to the following schedule: (a) If Connetics the Customer gives at least forty-five ninety (4590) calendar days notice prior to the manufacturing date assigned by APG INyX pursuant to SECTION Section 3.5, there shall be no penalty for cancellation. (b) If Connetics the Customer gives less than forty-five sixty (4560) calendar days and more than fourteen twenty-one (1421) days notice, APG INyX may invoice Connetics the Customer for, and Connetics the Customer shall be ----------------------- ***Confidential material redacted and filed separately with the Commission required to pay to APG INyX an amount equal to thirty percent (30%) of the amount owed under the purchase order, calculated in accordance with EXHIBIT Exhibit B; provided, however, that APG INyX must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product of similar value to INyX on the originally scheduled date, and no charge shall be assessed to Connetics the Customer if such efforts are successful. (c) If Connetics the Customer gives twenty one (21) days or less notice but more than fourteen (14) days or less notice, APG notice INyX may invoice Connetics the Customer for, and Connetics the Customer shall be required to pay to APG INyX an amount equal to, to fifty percent (50%) of the amount owed under the purchase order, calculated in accordance with EXHIBIT Exhibit B; provided, however, that APG INyX must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product of similar value to INyX on the originally scheduled date, and no charge shall be assessed to Connetics the Customer if such efforts are successful. (d) If the Customer gives less than fourteen (14) days notice of cancellation, INyX may invoice the Customer for, and the Customer shall be required to pay, an amount equal to one hundred (100%) percent of the amount owed under the purchase order, calculated in accordance with Exhibit B.

Cancellation of Purchase Orders; Penalties. Connetics may cancel a purchase order for production in accordance with the provisions in this Section. In addition to any charges The charge for Unique Materials pursuant to SECTION 3.12, Connetics cancellation shall be assessed a charge for cancellation, determined according to the following schedule: (a) If Connetics gives at least forty-five (45) calendar days [*] notice prior to the manufacturing date assigned by APG Miza pursuant to SECTION 3.5, there shall be no penalty for cancellation. (b) If Connetics gives less than forty-five (45) calendar days and more than fourteen (14) days notice[*], APG Miza may invoice Connetics for, and Connetics shall be required to pay to APG Miza an amount equal to thirty percent (30%) [*] of the amount owed under the purchase order, calculated in accordance with EXHIBIT B; provided, however, that APG Miza must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product on the originally scheduled date, and no charge shall be assessed to Connetics if such efforts are successful. (c) If Connetics gives fourteen (14) days or less notice, APG [*] Miza may invoice Connetics for, and Connetics shall be required to pay to APG Miza an amount equal to, fifty percent (50%) to [*] of the amount owed under the purchase order, calculated in accordance with EXHIBIT B; provided, however, that APG Miza must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product on the originally scheduled date, and no charge shall be assessed to Connetics if such efforts are successful. (d) If Connetics gives [*] of cancellation, Miza may invoice Connetics for, and Connetics shall be required to pay, an amount equal to [*] of the amount owed under the purchase order, calculated in accordance with EXHIBIT B.

Cancellation of Purchase Orders; Penalties. Connetics The Customer may cancel a purchase order for production in accordance with the provisions in this Section. In addition to any charges The charge for Unique Materials pursuant to SECTION 3.12, Connetics cancellation shall be assessed a charge for cancellation, determined according to the following schedule: (a) If Connetics the Customer gives at least forty-five ninety (4590) calendar days notice prior to the manufacturing date assigned by APG INyX pursuant to SECTION Section 3.5, there shall be no penalty for cancellation. (b) If Connetics the Customer gives less than forty-five sixty (4560) calendar days and more than fourteen twenty-one (1421) days notice, APG INyX may invoice Connetics the Customer for, and Connetics the Customer shall be required to pay to APG INyX an amount equal to thirty percent (30%) of the amount owed under the purchase order, calculated in accordance with EXHIBIT Exhibit B; provided, however, that APG INyX must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product of similar value to INyX on the originally scheduled date, and no charge shall be assessed to Connetics the Customer if such efforts are successful. (c) If Connetics the Customer gives twenty one (21) days or less notice but more than fourteen (14) days or less notice, APG notice INyX may invoice Connetics the Customer for, and Connetics the Customer shall be required to pay to APG INyX an amount equal to, to fifty percent (50%) of the amount owed under the purchase order, calculated in accordance with EXHIBIT ___________________________ ***Confidential material redacted and filed separately with the Commission Exhibit B; provided, however, that APG INyX must use Commercially Reasonable Efforts to reallocate the suite to manufacture another product of similar value to INyX on the originally scheduled date, and no charge shall be assessed to Connetics the Customer if such efforts are successful. (d) If the Customer gives less than fourteen (14) days notice of cancellation, INyX may invoice the Customer for, and the Customer shall be required to pay, an amount equal to one hundred (100%) percent of the amount owed under the purchase order, calculated in accordance with Exhibit B.