If, in the judgment of the Seller, the financial condition of the Buyer at any time does not justify continuation of production or shipment on the terms of payment originally specified, the Seller may require full or partial payment in advance and, in the event of the bankruptcy or insolvency of the Buyer or in the event any proceeding is brought by or against the Buyer under the bankruptcy laws, the Seller shall be entitled to cancel any order than outstanding and shall receive reimbursement for its cancellation charges. If shipments are delayed by the Buyer, payments shall become due on the date when the Seller is prepared to make shipment. If the work covered by the purchase order is delayed by the Buyer, payments shall be made based on the purchase price and the percentage of completion. Products held for the Buyer shall be at the risk and expense of the Buyer. The Seller reserves the right to ship its order and make collection by sight draft and bill of lading attached.
Buyer agrees to pay on the terms stated, the unit price applicable to the articles so delivered.
All sales are made F.O.B. Sunnyvale. Seller's title passes to Buyer and Sellers liability as to delivery ceases upon making delivery of material purchased hereunder to carrier at shipping point, the carrier acting as Buyers agent. All claims for damages must be filed with the carrier. Shipments will normally be made by Parcel Post, Railway Express, Air Express, or Air Freight. Unless specific instructions from Buyer specify which of the foregoing methods of shipment is to be used, the Seller will exercise his own discretion.