a. Transportation. All goods shall be properly packed, marked, loaded and shipped as required by this order and the transporting carrier, and shipped in a manner which will permit the lowest transportation rates to apply. Seller shall reimburse Purchases for all expenses incurred due to improper packing, marking, loading or routing. Seller shall route shipments in accordance with Purchaser’s instructions and shall offer all shipments to Purchaser’s Transportation Operations unless otherwise instructed.

b. Risk of Loss. Delivery shall not be complete until goods have been actually delivered to and accepted by Purchaser, notwithstanding any agreement to pay freight, express, parcel post, or other transportation charges. The risk of loss or damage in transit shall be upon the Seller, except where shipment is by Purchaser’s vehicle in which case the risk of loss or damage shall pass to Purchaser upon completion of loading.

c. Shipping Releases. Seller shall not produce any of the goods covered by this purchase order, or procure any of the materials required in their production, or ship any of such goods to Purchaser, except to the extent authorized in written instructions furnished to Seller by Purchaser or as necessary to meet specific delivery dates provided in this purchase order. Purchaser shall have no responsibility for goods for which delivery dates or such written instructions have not been provided. Shipments in excess of those authorized may be returned to Seller and Seller shall pay Purchaser for all packing, handling, sorting, loading and transportation expenses in connection with such shipments. Purchaser may from time to time change shipping schedules specified in this purchase order or contained in other written instructions or direct temporary suspension of such scheduled shipments.

d. Delays. Seller shall in the event of a delay or threat of delay, due to any cause, in the production or delivery of goods hereunder, immediately notify Purchaser and shall include with such notice all relevant information with respect to such delay or threatened delay. Seller shall be liable for any damages resulting from failure to make delivery within the time called for by this order or by any written instructions of Purchaser except where (1) such delay in delivery shall be due to causes beyond the reasonable control of Seller, and (2) Seller notifies Purchaser as aforesaid. If Seller for any reason cannot comply with Purchaser’s delivery schedule, Purchaser, in addition to any other rights or remedies available to it by law or under these terms and conditions, may terminate this purchase order or cancel any shipments thereunder without further liability to Seller.

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