(a) Buyers Cancellation for Convenience: Buyer may cancel any order for convenience on the following terms: (i) For standard products, Buyer may cancel or reschedule a product without penalty if the cancellation is more than thirty (30) days from the Confirmed Shipping Date (as specified in H2OBBQPOLE’s Order Acknowledgement or other document); cancellations within 30 days of a Confirmed Shipping Date must be approved in writing by a H2OBBQPOLE sales director and may be subject to special charges (ii) For nonstandard parts, custom products, or standard parts with minimum usage Buyer may cancel or reschedule more than ninety (90) days from the Confirmed Shipping Date, except that Buyer shall accept delivery of all such products which are completed at the time of cancellation or rescheduling. Those nonstandard products which are in the work-in-process inventory at the time of cancellation or rescheduling, shall be paid for by Buyer at a price equal to the completed percentage of the product multiplied by the price of the finished product. Buyer also shall pay promptly to H2OBBQPOLE the costs of settling and paying claims arising out of the termination of work under H2OBBQPOLE’s subcontracts or vendors and any accounting, legal, and clerical costs arising out of the cancellation.
(b) Buyers Cancellation for Default: Upon written notice to H2OBBQPOLE
, any order may be canceled in whole or in part in accordance with the terms hereof, because of H2OBBQPOLE
’s failure to deliver products by the Confirmed Shipping Date (this failure hereinafter called “Default”). Cancellation by Buyer for H2OBBQPOLE
’s Default, which may entitle Buyer to procurement costs, shall be effective only upon H2OBBQPOLE
’s failure to correct such Default within a reasonable period of time, but not less than thirty (30) days for standard products or ninety (90) days for non standard products, after receipt by H2OBBQPOLE
of written notice of such Default. Upon cancellation, Buyer, as its sole remedy, may recover from H2OBBQPOLE
as damages the difference between cost of procurement from another source (cover) and the contract price, less expenses saved as a consequence of H2OBBQPOLE
’s breach. In no event shall these damages exceed ten percent (10%) of H2OBBQPOLE
’s product price multiplied by the number of products unconditionally (not subject to cancellation under 6(a)) ordered by Buyer which remain unshipped at the time of cancellation.
(c) H2OBBQPOLE’s Cancellation: H2OBBQPOLE shall have the right to cancel any unfilled order without notice to Buyer in the event that Buyer becomes insolvent, adjudicated bankrupt, petitions for or consents to any relief under any bankruptcy reorganization statute, or becomes unable to meet its financial obligations in the normal course of business. Any order that can be cancelled or rescheduled by Buyer pursuant to paragraph 6(a) may be cancelled or rescheduled by H2OBBQPOLE if notice is given to Buyer.