Common use of Defective Product Clause in Contracts

Defective Product. (a) PEKO will at its expense and at no further cost to ViewRay replace Products that by reason of PEKO’s fault or failure to Assemble according to ViewRays plans and specifications do not conform to the applicable warranties specified in Section 7.2 during the applicable warranty period specified therein. PEKO’s warranties, representations and obligations hereunder include only warranties, representations and obligations relating to items manufactured by it or its proper assembly or incorporation of items manufactured by third parties pursuant to ViewRay plans, and specifications and does not include items manufactured by others included in the assembly. PEKO will pass through to ViewRay all third party warranties with respect to items manufactured by third parties. ViewRay will notify PEKO in writing of any alleged defect of Product, will request a Return Material Authorization (“RMA”) number and will within thirty (30) days of receipt of such RMA number return such Product to PEKO freight prepaid and properly insured, along with a reasonably detailed statement of the claimed defect and proof of date of purchase. Such notice and statement may be sent to an email address provided by PEKO, which will initially be [***]. If PEKO agrees that Product is defective by reason of its fault as defined above then PEKO will use Commercially Reasonable Efforts to deliver replacement Product to ViewRay or its designated customer freight prepaid and properly insured with earliest delivery which can be obtained. Alternatively, PEKO may dispatch service personnel to inspect the applicable Product in the field, and in such cases will use Commercially Reasonable Efforts to dispatch such personnel to the site of the applicable Product within five (5) days if the Product is not functioning to Specification. ViewRay may also request that PEKO dispatch service personnel to inspect the applicable Product in the field, in which case PEKO will use commercially reasonable efforts to dispatch such personnel within five (5) days after such request. Repair or replacement of defective Products, due to PEKO’s fault will be at PEKO’s expense. In the event that PEKO reasonably determines that any allegedly nonconforming Product is in fact not defective (including Product that has been modified, misused, abused or the subject of unauthorized repair), PEKO will notify ViewRay in writing and ViewRay will reimburse PEKO for all reasonable costs and expenses related to the inspection, the cost of the replacement Product (if any), and the cost of the return of such Product to ViewRay (if applicable). If ViewRay disputes PEKO’s determination that a Product is not defective, the dispute will be discussed and resolved using the procedure provided in Section 10.2.

Defective Product. (a) PEKO will at its expense and at no further cost to ViewRay replace Products that by reason of PEKO’s fault or failure to Assemble according to ViewRays plans and specifications do not conform to the applicable warranties specified in Section 7.2 during the applicable warranty period specified therein. PEKO’s warranties, representations and obligations hereunder include only warranties, representations and obligations relating to items manufactured by it or its proper assembly or incorporation of items manufactured by third parties [***] pursuant to ViewRay plans, and specifications and does not include items manufactured by others included in the assembly[***]. PEKO will pass through to ViewRay all third party warranties with respect to items manufactured by third parties. ViewRay will notify PEKO in writing of any alleged defect of Product, will request a Return Material Authorization (“RMA”) number and will within thirty (30) days [***] of receipt of such RMA number return such Product to PEKO freight prepaid and properly insured[***], along with a reasonably detailed statement of the claimed defect and proof of date of purchase. Such notice and statement may be sent to an email address provided by PEKO, which will initially be [***]. If PEKO agrees that Product is defective by reason of its fault as defined above then PEKO will use Commercially Reasonable Efforts to deliver replacement Product to ViewRay or its designated customer freight prepaid and properly insured with earliest delivery which can be obtained. Alternatively, PEKO may dispatch service personnel to inspect the applicable Product in the field, and in such cases will use Commercially Reasonable Efforts to dispatch such personnel to the site of the applicable Product within five (5) days [***] if the Product is not functioning to Specification. ViewRay may also request that PEKO dispatch service personnel to inspect the [***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. applicable Product in the field, in which case PEKO will use commercially reasonable efforts to dispatch such personnel within five (5) days [***] after such request. Repair or replacement of defective Products, due to PEKO’s fault will be at PEKO’s expense. In the event that PEKO reasonably determines that any allegedly nonconforming Product is in fact not defective (including Product that has been modified, misused, abused or the subject of unauthorized repair), PEKO will notify ViewRay in writing and ViewRay will reimburse PEKO for all reasonable costs and expenses related to the inspection[***], the cost of the replacement Product (if any)[***], and the cost of the return of such Product to ViewRay [***] (if applicable). If ViewRay disputes PEKO’s determination that a Product is not defective, the dispute will be discussed and resolved using the procedure provided in Section 10.2.