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4. TERMS AND CONDITIONS OF SALE 4.1 Orders. AL-MERRI shall submit purchase orders ("Purchase Orders") to PSI for all Products. Each Purchase Order will include: (a) Products ordered; (b) quantity requested; (c) shipment dates requested; (d) unit price; (e) shipping instructions; and (f) whatever additional information PSI may require to process the Purchase Order. If PSI is not able to meet the shipment dates and quantities, PSI shall promptly so notify AL-MERRI, and the Parties will agree to modify the Purchase Order terms for shipment Schedules and quantities. No Purchase Order is final and binding on PSI until and unless accepted by PSI. PSI may reject any Purchase Order for any reason or no reason. PSI shall respond to AL-MERRI by e-mail or fax or otherwise with respect to each Purchase Order, within ten (10) days of receiving such Purchase Order. If PSI has not responded with an acceptance or rejection within five (5) days after PSI’s receipt of any purchase order, AL-MERRI, to ensure that the Purchase Order has been received, shall promptly inquire about the Purchase Order by fax. Any Purchase Order rejected by PSI for no reason, or for convenience of PSI, shall be considered a purchase for purposes of measurement against AL-MERRI’s Minimum Purchase Requirements as provided in Section 5.6, but subsequent or replacement Purchase Orders accepted by PSI, up to the amount of the rejected Purchase Order, shall be ignored for purposes of such measurement. Rejection of a Purchase Order because of scheduling conflicts with delivery dates of other customers is not a rejection for convenience of PSI. 4.2 Lead Times. PSI shall exercise its reasonable efforts to ship all Purchase Orders of AL-MERRI within six (6) weeks; however, a scheduled shipment date is an intended date, and not a specific obligation. In the event that PSI experiences shortages of any Products for any reason out of PSI's reasonable control, PSI will exercise good faith in shipping orders as promptly as reasonably possible and without liability to AL-MERRI for such delays. PSI shall promptly notify AL-MERRI when PSI becomes aware that shipment of AL-MERRI's orders will not be completed by the requested shipment date. 4.3 Contract for Sales. Each accepted Purchase Order is a contract for sale subject to the terms of this Agreement. 4.4 Title, Damaged Goods and Risk of Loss. Title and risk of loss of or damage to the products shall pass to AL-MERRI at time of loading onto the carrier at PSI’s factory, regardless of destination and regardless of which Party selected the method of shipment. AL-MERRI shall examine each shipment promptly upon receipt and must within seven calendar days after receipt inform PSI of any nonconforming Products. All Products shall be deemed accepted unless AL-MERRI has provided to PSI a timely notice of noncompliance. Any credit or replacement of Products by PSI shall be subject to PSI’s verification of defects. Upon request by PSI, AL-MERRI shall return to PSI, by means of transportation chosen by PSI and at PSI’s expense, all or a designated number or percentage of the reportedly defective Products, as PSI may request. PSI shall examine and test the returned Products promptly and inform AL-MERRI of the results. If PSI finds that there is no significant defect, PSI will return the Products to AL-MERRI at AL-MERRI’s expense and will grant no credit for the returned Products or for any other reportedly defective Products in the same original shipment. If PSI finds that all or some of the Products returned are defective, PSI may at its option replace the returned defective Products or grant AL-MERRI a credit for such Products. PSI may at its option require the return of part or all of any remaining quantity of reportedly defective Products on the same terms as provided above in this Section 4.4, and AL-MERRI shall return such Products as provided. Any additional Products so returned shall be subject to the same examination, testing, and further action as provided above. At any point in the process described in this Section, PSI may agree to replace or grant a credit for all or part of any reportedly defective Products still in the hands of AL-MERRI without examining or testing such Products. At any time after agreeing to replace or grant a credit for reportedly defective Products, PSI may require AL-MERRI to destroy all of or any designated portion of such Products and certify or evidence their destruction, and AL-MERRI shall destroy the Products and supply the required certification or evidence before the replacement or credit is granted.
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