In the event of a termination of this contract, Canada would be liable for:
“completed work in accordance with the basis of payment in the contract; costs plus profit thereon for all work in process; and costs of and incidental to the termination (e.g., taking of inventory, preparation of accounts and statements, etc.)”
But we've also built in a provision whereby Canada could choose to have Boeing sell the aircraft to another customer, including the U.S. Air Force, and in such an event Canada would receive the net sale proceeds calculated as the gross selling price less any milestone payments still owing by Canada. Appropriate and reasonable expenses related to the sale and the cost of any delays—