10.1. Balasys warrants that during the Warranty Period, the optical media upon which the Balasys Product is recorded will not be defective under normal use. Balasys will replace any defective media returned to it, accompanied by a dated proof of purchase, within the Warranty Period at no charge to Licensee. Upon receipt of the allegedly defective Balasys Product, Balasys will at its option, deliver a replacement Balasys Product or Balasys's current equivalent to Licensee at no additional cost. Balasys will bear the delivery charges to Licensee for the replacement Product.

10.2. In case of installation by Balasys, Balasys warrants that during the Warranty Period, the Zorp Professional, under normal use in the operating environment defined by Balasys, and without unauthorized modification, will perform in substantial compliance with the Product Documentation accompanying the Balasys Product, when used on that hardware for which it was installed, in compliance with the provisions of the user manuals and the recommendations of Balasys. The date of the notification sent to Balasys shall qualify as the date of the failure. Licensee shall do its best to mitigate the consequences of that failure. If, during the Warranty Period, the Balasys Product fails to comply with this warranty, and such failure is reported by Licensee to Balasys within the Warranty Period, Balasys's sole obligation and liability for breach of this warranty is, at Balasys's sole option, either:

(i) to correct such failure,

(ii) to replace the defective Balasys Product or

(iii) to refund the license fees paid by Licensee for the applicable Balasys Product.