Common use of Cancellations of Orders Clause in Contracts

Cancellations of Orders. If ESI cancels a firm order made pursuant to Section 2.4, then ESI shall reimburse CIMA for all costs incurred by CIMA as a result of such cancellation of such order, including materials, labor, work in progress, obsolete inventory disposal and overhead; but this obligation shall not cover capital costs.

Appears in 2 contracts

Sources: Supply Agreement (Cima Labs Inc), Supply Agreement (Cima Labs Inc)