Buyer acknowledges that PMAD has set its prices and entered into these Terms and Conditions in reliance on the limitations of liability and the disclaimers of warranties and damages set forth herein, and that the same form an essential basis of the bargain between the Parties. As a result, the maximum amount of PMAD’s liability to Buyer arising out of or in connection with these Terms and Conditions shall be limited to the total amount that Buyer has actually paid to PMAD under the applicable Purchase Order.