Article 4. (Prices)
4.1 The price of the Parts sold by the SELLER to the BUYER under this agreement shall be established on an Ex-factory base and the price shall be determined in its supply order. The calculation method is provided on Parts Purchase Memorandum.
4.2 The SELLER may change from time to time any of the prices by giving a prior notice to the BUYER, in which notice the effective date of such change shall be specified, whenever the SELLER deems it necessary to do so in the case of a change of the design or specifications of any Parts, an increase in the manufacturing cost of any Parts, a change in the economic situation (including international exchange rate) and/or other similar events. The prices so changed shall be applicable to the Parts for which a firm order is placed on and after such effective date of the change as is specified in the relevant notice from the SELLER, the SELLER also agrees that the selling price will always be the same price as traded and supplied to HONDA group.
Article 5. (Terms of Payment)
5.1 Payment of the price of the Parts sold by the SELLER under this Agreement shall be made by remittance of the payment price specified in this applicable “Selling Agreement” to a bank in US currency; provided, however, that if the SELLER desires to modify the currency used for payment in the future, the SELLER shall notify the BUYER in advance. The period for payment is defined on Parts Purchase Memorandum.
Article 6. (Delivery)
6.1 The Parts covered by each Sales Contract shall be delivered by the SELLER to the BUYER according to Parts Purchase Memorandum specifications, not later than the date of delivery which shall be determined in such Sales Contract. If there is a fear of delay in shipment, the SELLER shall promptly notify the BUYER thereof, and shall consult with the BUYER to determine how best to deal with situation.
Article 7. (Packing and Cargo Insurance)
7.1 The SELLER shall provide adequate packaging for the Parts in such method as the SELLER may consider sufficient to protect the quality of the Parts in transit under normal conditions. The elaborated packing standard planned to be used by the SELLER shall be documented and send to the BUYER and only after BUYER’s approve it shall be implemented.
7.2 The BUYER shall be responsible for providing and maintaining all applicable cargo insurance with a sufficient amount of coverage for the Parts in transit.