Terms and Conditions - Product Sales

Rev 2021.07.7

- 11 -

by PHI, but in any case not more than an amount equal to 5% of the invoice amount (as stated in PHI’s Final

Invoice).

C. Defects. In the event of a defect in a Product supplied by PHI, Buyer’s sole remedy shall be, at

PHI’s costs and expense for PHI, in PHI’s sole discretion, to either repair or replace the defective Product.

In the event of a defect in a Service provided by PHI, Buyer’s sole remedy shall be PHI’s re-performance of

the Service.

D. Buyer to Provide Notice of Defects. Except for visible defects of Products and Services for which

Buyer shall provide written notice to PHI immediately, Buyer shall provide written notice of any defect to

PHI at the earlier of (a) within ten (10) days after discover of such defect, or (b) twelve (12) months after

date of delivery.

E. PHI’s Response to Notice of Defects. PHI has 60 days after receipt of product to evaluate any

Notice of Defect and provide a Root Cause Analysis of that defect to Buyer. Once PHI has determined that

there is a defect, should PHI be unable to repair or replace defective Product(s) or re-perform defective

Service(s) so that the Product(s) or Service(s) conform to the Contract within thirty (30) days after written

notice from PHI to Buyer of such defect, Buyer shall grant PHI a ten (10) day cure period in writing. If PHI

fails to replace the defective Product(s) or re-perform the defective Service(s) so that the Product(s) or

Services(s) conform to the Contract within such ten (10) day cure period, Buyer shall have the right to

rescind the Contract and PHI shall promptly reimburse Buyer for all invoices paid to PHI by Buyer on

account of such defective Product(s) or Service(s).

F. PHI’s Liability to Repair, Replace or Re-Perform. PHI shall have no liability to repair or replace

any defective Product or Service if

(a) Buyer fails to inspect the Product or the Service as required hereunder,

(b) Buyer fails to inform PHI about the defect(s) as required hereunder,

Manuals and Specification Sheets) provided by PHI relating to the Product,

(d) the Product or a part of the Product has been opened, modified, repaired, processed, replaced

or installed by, or any other work has been performed in relation to or that affects the Product by,

a person other than a person approved by PHI; or,

(e) any other act or omission has occurred that has resulted in the loss of the Product’s Express

Warranty.

In the event PHI determines that an alleged Product or Service defect did not exist or, if the defect did exist,

PHI has no liability for such defect, Buyer shall reimburse PHI for all costs and expenses incurred by PHI

with respect to such repairing, replacing or re-performing.

G. Remedies Exclusive. TO THE FULLEST EXTENT PERMITTED BY LAW, THE REMEDIES SET

FORTH IN THIS SECTION 15 FOR DELAYS OR DEFECTS SHALL BE THE SOLE AND EXCLUSIVE

REMEDY OF BUYER AND BUYER SHALL HAVE NO OTHER REMEDIES IN CONTRACT, TORT OR

EQUITY UNDER APPLICABLE LAW.