Sophisticaetd Payment Provision

Contracting for Profit

Sophisticated Payment Provision

The payment terms of this Contract are (i) Thirty Five (35%) Percent of the Contract amount is due and payable with the return of the acceptance of this Contract by BUYER; (ii) an additional Thirty (30%) Percent of the Contract amount is due and payable on the sixtieth (60th) day after the date the Contract is accepted by SELLER; (iii) an additional Thirty (30%) Percent of the Contract amount is due and payable upon notification to BUYER that the materials ordered are ready to ship; and (iv) the final Five (5%) Percent of the Contract amount is due and payable XX days after receipt of the materials ordered or Sixty (60) Days after notification to BUYER that materials ordered are ready to ship, whichever occurs first with all payments being subject to the security provisions of this Contract. However, at its option, the SELLER may require full or partial payment before shipment. Prompt payment is of the essence of this Contract. Invoices or payments not paid when due may be subject to a service charge of the highest of (i) one and onehalf percent per month or (ii) the highest interest rate allowed by applicable law. If the credit of BUYER shall any time, in the sole judgment of the SELLER, become impaired, SELLER may, at its option, and without incurring any liability therefor, divert or prevent the discharge of shipments en route to BUYER and cancel any unfilled portion of the order.