Sophisticated Payment Provision - Termination

TERMINATION BY DEFAULT; CANCELLATION FEE: SELLER reserves the right at its sole discretion to terminate this Contract upon the occurrence of any one or more of the following events which are a default under this Contract:

BUYER'S failure to pay within fourteen (14) days of the due date of any payments specified in this Contract.

BUYER'S failure to perform or comply with any provision of this Contract including the requirement to take delivery of the materials ordered.

The filing of any petition under the Bankruptcy Act or any similar federal or state statute by or against the BUYER.

Any application for the appointment of a receiver, for the making of a general assignment for the benefit of creditors by, or the insolvency of, BUYER.

The dissolution, merger, consolidation, or reorganization of BUYER.

Regardless of whether this Contract is terminated, nondefective materials ordered returned to SELLER are subject to a 15% restocking fee. All returned materials ordered shall become the property of SELLER. The parties agree that should SELLER exercise its right to terminate the Contract, any restocking fee and any cancellation fee, if applicable, together with unencumbered title to the materials ordered remaining vested in SELLER, is a reasonable substitute for actual damages in the nature of liquidated damages, that said liquidated damages are a reasonable approximation of the damages suffered by SELLER and that SELLER shall bear no liability or responsibility to account for the proceeds from the resale of the materials ordered to BUYER. CANCELLATION OF CUSTOM BUILT OR SPECIALLY PROCURED MATERIAL IS SUBJECT TO A ONE HUNDRED PERCENT (100%) CANCELLATION FEE. CANCELLATION FEES ARE IMMEDIATELY PAYABLE BY BUYER UPON RECEIPT OF SELLER'S INVOICE OR DEDUCTED FROM BUYER'S DEPOSIT.