Animatics warrants to Customer that Products purchased hereunder will conform to the applicable manufacturer's specifications for such Products and that any value-added work performed by Animatics on such Products will conform to applicable Customer's specifications relating to such work for a period of 2 years from the date of purchase. Animatics makes no other warranty, express or implied, with respect to the Products.

IN PARTICULAR, ANIMATICS MAKES NO WARRANTY RESPECTING THE MERCHANTABILITY OF THE PRODUCTS OR THEIR SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR USE OR RESPECTING INFRINGEMENT. However, Animatics will transfer to Customer whatever transferable warranties and indemnities Animatics receives from the manufacturer of whatever transferable warranties and indemnities Animatics receives from the manufacturer of the Products. With respect to value-added work by Animatics which does not meet applicable Customer's specifications, Animatics liability is limited (at Animatics election) to (1) refund of Customer's purchase price for such Products (without interest), (2) repair of such Products, or (3) replacement of such Products; provided, however, that such Products must be returned to Animatics, along with acceptable evidence of purchase, within twenty (20) days from date of delivery, transportation charges prepaid.

CUSTOMER SHALL NOT IN ANY EVENT BE ENTITLED TO, AND ANIMATICS SHALL NOT BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY NATURE INCLUDING, WITHOUT BEING LIMITED TO, LOSS OF PROFIT, PROMOTIONAL OR MANUFACTURING EXPENSES, OVERHEAD, INJURY TO REPUTATION OR LOSS OF CUSTOMERS. CUSTOMER'S RECOVERY FROM ANIMATICS FOR ANY CLAIM SHALL NOT EXCEED CUSTOMER'S PURCHASE PRICE FOR THE PRODUCTS IRRESPECTIVE OF THE NATURE OF THE CLAIM WHETHER IN CONTRACT, TORT WARRANTY, OR OTHERWISE.