Limited Warranty. precisionWave warrants that for one year following Activation for Service (as defined below), each precisionWave Product and Subsystem shall be free from defects in workmanship and materials; shall substantially conform to the performance capabilities, characteristics, specifications, functions and other descriptions and standards applicable thereto as set forth herein. In the event that defects are discovered during the warranty period, precisionWave shall, at precisionWave's option, repair or replace the precisionWave Product or Subsystem at no additional expense to the customer AS THE SOLE AND EXCLUSIVE REMEDY OF CUSTOMER.

Activation of Service. "Activation of Service" means the earlier to occur of (A) initiation by the customer of the installation software placed in the respective precisionWave Product or Subsystem, or (B) actual commercial use by the customer or a sale to an end customer.

Limitation of Liability. EXCEPT FOR THE WARRANTIES EXPRESSLY MADE HEREIN, PRECISIONWAVE MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE PRECISIONWAVE PRODUCT OR SUBSYSTEM OR THEIR CONDITION, MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE OR USE. PRECISIONWAVE SHALL NOT BE LIABLE FOR ANY (i) SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS, ARISING FROM OR RELATED TO THE OPERATION OR USE OF A PRECISIONWAVE PRODUCT OR SUBSYSTEM INCLUDING SUCH DAMAGE, WITHOUT LIMITATION, AS DAMAGES ARISING FROM LOSS OF DATA OR PROGRAMMING, LOSS OF REVENUE OR PROFITS, FAILURE TO REALIZE SAVINGS OR OTHER BENEFITS, DAMAGE TO EQUIPMENT, AND CLAIMS AGAINST THE CUSTOMER BY ANY THIRD PERSON, EVEN IF PRECISIONWAVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, (ii) DAMAGES (REGARDLESS OF THEIR NATURE) FOR ANY DELAY OR FAILURE BY PRECISIONWAVE TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT DUE TO ANY CAUSE BEYOND ITS REASONABLE CONTROL; OR (iii) CLAIMS MADE A SUBJECT OF LEGAL PROCEEDING AGAINST PRECISIONWAVE MORE THAN TWO YEARS AFTER ANY SUCH CAUSE OF ACTION FIRST AROSE. PRECISIONWAVE'S TOTAL LIABILITIES HEREUNDER SHALL NOT BE GREATER THAN THE PURCHASE PRICE OF THE PRECISIONWAVE PRODUCT.