PHENOLIC TERMS AND CONDITIONS

Effective Date: May 30, 2026

1. ACCEPTANCE OF TERMS AND CONDITIONS

These Terms and Conditions (“Terms”) form a legally binding agreement between you, whether personally or on behalf of an entity (“Client,” “you,” or “your”), and Phenolic (“Phenolic,” “we,” “us,” or “our”), concerning your access to and use of our website at https://phenolic.com.pk, as well as the provision of any design, manufacturing, procurement, and installation services (“Services”) and the sale of engineered surfaces, modular architecture, and custom joinery (“Products”). By signing a proposal, approving a Bill of Quantities (BoQ), paying a deposit, or otherwise engaging our Services, you expressly agree to be bound by these Terms in their entirety.

2. DEFINITIONS

“Agreement” refers to the overarching contract between Phenolic and the Client, incorporating the approved proposal, BoQ, project schedule, and these Terms.

“Products” refers to any physical goods manufactured, sourced, or supplied by Phenolic, including but not limited to compact phenolic boards, high-pressure laminates, custom joinery, modular partitions, lockers, washroom cubicles, and specialized architectural solutions.

“Services” refers to the design, 3D modeling, operational consultancy, project management, manufacturing, and on-site installation provided by Phenolic.

“Site” refers to the physical location where the Products are to be delivered and installed.

3. PROPOSALS, SPECIFICATIONS, AND ORDERS

3.1 Proposals and BoQ

All proposals, estimates, and Bills of Quantities provided by Phenolic are valid for a period of thirty (30) days from the date of issue unless otherwise stated in writing.

3.2 Design Approvals

Phenolic will provide initial concept designs, 3D renderings, and technical drawings. The Client is responsible for reviewing and approving these designs in writing. Once approved, these specifications become the baseline for manufacturing.

3.3 Change Orders

Any alterations to the approved design, material specifications, or scope of work requested by the Client after manufacturing has commenced must be submitted in writing as a “Change Order.” Phenolic reserves the right to adjust pricing, payment schedules, and delivery timelines to accommodate Change Orders. Phenolic is not obligated to proceed with a Change Order until written approval and any required additional deposits are received.

4. PRICING AND PAYMENT TERMS

4.1 Payment Structure

Unless otherwise negotiated and explicitly stated in the formal Agreement, our standard payment terms are as follows:

• 50% non-refundable deposit upon signing the agreement and prior to commencement of final technical drawings, material procurement, and manufacturing.

• 40% milestone payment prior to dispatch of Products from the Phenolic manufacturing facility or warehouse.

• Remaining 10% balance immediately upon practical completion of installation or delivery of goods (if installation is not included).

4.2 Late Payments

Outstanding balances not paid within seven (7) days of the invoice due date will accrue interest at a rate of 1.5% per month or the maximum rate permitted by law, whichever is lower. Phenolic reserves the right to halt production, withhold delivery, or suspend installation without liability for any resulting delays if payments are not made according to the agreed schedule.

4.3 Taxes and Duties

All prices are exclusive of applicable local taxes, VAT, import duties, and shipping tariffs unless otherwise specified in the BoQ. The Client is solely responsible for the payment of all such taxes.

5. MANUFACTURING TOLERANCES AND MATERIALS

5.1 Tolerances

Phenolic manufactures Products to exact technical specifications using modern manufacturing processes. Due to the nature of industrial production and raw materials, minor variations in color, texture, and dimensions within accepted international standards may occur. Such variations do not constitute defects or grounds for rejection.

5.2 Material Properties

High-performance engineered surfaces, including compact phenolic boards and decorative laminates, are designed for durability and long-term use. Natural materials or wood veneers may exhibit variations in grain and color, which are inherent characteristics and not defects.

6. DELIVERY, SITE MOBILIZATION, AND INSTALLATION

6.1 Timelines

All delivery and installation dates provided by Phenolic are estimates made in good faith. Phenolic shall not be liable for delays caused by third-party shipping interruptions, customs delays, labor shortages, or unforeseen site conditions.

6.2 Site Preparation

If Phenolic is providing installation services, the Client is responsible for ensuring that the Site is fully prepared before mobilization. This includes providing safe access, adequate lighting, power, structural readiness, and a debris-free environment. Delays caused by an unprepared Site may result in additional charges.

6.3 Storage Fees

If the Client cannot accept delivery on the agreed date, Phenolic may store the Products at the Client’s risk and expense. Storage fees may accrue until delivery is accepted.

7. TITLE AND RISK OF LOSS

Risk of loss or damage passes to the Client upon delivery to the Site or collection by the Client’s designated carrier. Legal ownership of the Products remains with Phenolic until full payment has been received.

8. WARRANTIES AND DISCLAIMERS

8.1 Limited Warranty

Phenolic warrants that manufactured Products will be free from material defects in workmanship for one (1) year from the date of practical completion or delivery. Extended manufacturer warranties, where applicable, shall be passed through to the Client.

8.2 Exclusions

This warranty does not cover:

• Normal wear and tear

• Accidental damage, abuse, or vandalism

• Improper maintenance

• Unauthorized repairs or modifications

• Structural movement or settling of the building

8.3 Disclaimer

EXCEPT AS EXPRESSLY SET FORTH HEREIN, PHENOLIC MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

9. LIMITATION OF LIABILITY

To the maximum extent permitted by law, Phenolic shall not be liable for indirect, incidental, consequential, special, or punitive damages, including loss of profits, business interruption, operational downtime, or loss of opportunity. Phenolic’s total liability shall not exceed the amount paid by the Client under the relevant Agreement.

10. INTELLECTUAL PROPERTY RIGHTS

All intellectual property rights, including drawings, CAD files, 3D models, technical specifications, manufacturing techniques, concepts, and designs created by Phenolic remain the exclusive property of Phenolic.

The Client receives a limited, non-transferable license to use the final installed designs solely for their intended purpose and may not reproduce, distribute, or share proprietary documentation with third parties without written consent.

11. CONFIDENTIALITY

Both parties agree to keep confidential any proprietary or confidential information exchanged during the course of the project, including pricing structures, technical methods, business strategies, and client information.

12. FORCE MAJEURE

Phenolic shall not be liable for delays or failures caused by events beyond its reasonable control, including natural disasters, pandemics, government restrictions, labor disputes, material shortages, supply chain disruptions, or other force majeure events.

13. TERMINATION

13.1 By Client

The Client may terminate the Agreement before manufacturing begins by providing written notice. In such cases, Phenolic shall retain the deposit to cover work already performed. Once manufacturing or custom procurement has commenced, the Client remains responsible for the full contract value.

13.2 By Phenolic

Phenolic may terminate the Agreement immediately upon written notice if the Client breaches any material provision of these Terms or fails to make required payments.

14. GOVERNING LAW AND DISPUTE RESOLUTION

These Terms shall be governed by the laws applicable in the jurisdiction where Phenolic is registered and operating.

Any dispute shall first be addressed through good-faith negotiations. If unresolved within thirty (30) days, the matter shall be submitted to binding arbitration in accordance with the applicable arbitration laws and regulations.

15. SEVERABILITY AND ENTIRE AGREEMENT

If any provision of these Terms is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

These Terms, together with the approved proposal, quotation, and BoQ, constitute the entire agreement between Phenolic and the Client and supersede all prior communications and understandings.