Wavenet warrants that all products are, at the time of shipment to the buyer, free of material and workmanship

   defects, provided that no warranty is made with respect to:

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(1)  Any product which has been repaired or altered, by buyer, its agents or employees, or any third party not under control of

     Wavenet, in such a way, in Wavenet’s judgment, as to affect the product adversely.

(2)  Any product which has, in Wavenet’s judgment, been subject to negligence, accident or improper storage or transport by buyer,

      its agents or employees, or third party not under control of Wavenet.

(3)  Any product which has not been installed, operated and maintained in accordance with normal practice and in conformity with

      recommendations and published specifications of Wavenet Products Corporation.

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   WAIVER OF DEFECTS BY RETENTION.

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Upon discovery of a defect, the buyer shall notify Wavenet in writing within 30 days following its discovery of the defect, any claim that buyer may have with respect to any products delivered hereunder, and failure to give such notice within the specified time shall constitute trial and unqualified acceptance and waiver of all claims and warranties with respect to the products.

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   LIMITATION OF DAMAGES.

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Upon receipt of notice from buyer of non-conforming products, Wavenet may inspect such products at buyer’s location, installation or require that they be returned to California F.O.B. Company’s Corporate Headquarters location. At its option, Wavenet, Inc. shall repair, replace or refund the purchase price of any non-conforming products for a period of 12 months from the date of shipment of the products to buyer, and such obligations shall be the full extent of Wavenet’s liability for breach of warranty. Wavenet’s liability with respect to any material not of Wavenet’s manufacture shall be limited to the liability assumed by the vendor(s) of such material. Repairs to, alterations of, or work done on products warranted by Wavenet, but without Wavenet’s prior written authorization shall void Wavenet’s warranty on the product.

The buyer consents that the exclusive venue of any legal action which in any way concerns the products will be the Supreme Court, Los Angeles County, California. The parties further agree that all disputes are governed by California Law, and must be commenced within 12 months of the date of shipment of the products to buyer. Moreover, if Wavenet brings a claim or counterclaim against buyer, buyer agrees that Wavenet may recover from the buyer all reasonable cost and attorneys fees.