Section 14: Product Liability Claims

 A. Company Defense of Claims.

Subject to the limitations set forth in this provision, SALT WAVE shall defend SALT WAVE CLUB MEMBERS from claims made by third-party customers alleging injury from use of a service end product, or injury due to a defective product. SALT WAVE CLUB MEMBERS must promptly notify the Company in writing of any such claim, no later than ten (10) days from the date of the third party claimant’s letter alleging injury.  Failure to so notify the Company shall alleviate any obligation of the Company respecting such claim.  SALT WAVE CLUB MEMBERS must allow the Company to assume the sole and absolute discretion respecting the defense of the claim, and use and choice of counsel as a condition to the Company’s obligation to defend them.

B. Exceptions to Indemnification of SALT WAVE CLUB MEMBER

The Company shall have no obligation to indemnify a SALT WAVE CLUB MEMBER if:

1. the SALT WAVE CLUB MEMBER has not complied with the Contract respecting obligations and limitations covering the distribution and/or sale of the products; or

2. the SALT WAVE CLUB MEMBER has repackaged, altered or misused the product, made claims or given     instructions or recommendations respecting the use, safety, efficacy, benefits or results, which do not comply with the approved literature of the Company; or,

3. the SALT WAVE CLUB MEMBER settles or attempts to settle a claim without the Company’s written approval.