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GENERAL

Controlled Energy Corporation (CEC) will furnish a replacement heat
exchanger and will furnish a replacement of any other part, which fails
in normal use and service within the applicable periods specified below,
in accordance with the terms of this warranty. The CEC replacement
will be warranted for the unexpired portion of the original warranty.
This warranty will be valid only for water heaters in the possession of
the original consumer purchaser as recorded on the warranty card.

THE HEAT EXCHANGER

f the Heat Exchanger fails within TEN (10) years after the original

installation and operation, CEC will furnish a replacement heat
exchanger. However, if the water heater is installed in other than a
single family dwelling, or is used as a circulating heater in any
application, this heat exchanger warranty is limited to TWO (2) years

from date of original installation and operation.

ALL OTHER PARTS

If any other part fails within TWO (2) years after original installation
and operation, CEC will furnish a replacement part free of charge.

SHIPPING COSTS

In addition to supplying the replacement part (s), CEC will pay
transportation costs for these parts to a convenient delivery point near
you selected by CEC, such as a local AQUASTAR dealer or distributor.

SERVICE LABOR COSTS

This warranty does not cover any labor costs associated with service,
removal or re-installation of the part (s). All such costs must be borne
by you, the purchaser.

EXCEPTIONS

This warranty will not apply:
1) to defects or malfunctions resulting from failure to properly install,

operate or maintain the unit in accordance with the printed
instructions provided;

2) to damage from abuse, accident, neglect, or freezing and other acts

of nature;

3) to damage resulting from operation with either the thermocouple or

overheat sensor removed;

4) TO FAILURES OF THE HEAT EXCHANGER RESULTING FROM

THE OPERATION OF THE WATER HEATER IN A CORROSIVE
ATMOSPHERE OR AT WATER TEMPERATURES EXCEEDING

THE MAXIMUM RATING, OR IF THE WATER HEATER IS NOT
SUPPLIED WITH POTABLE WATER.

5) to defects or damage caused by any attachment or modification,

including any energy saving device.

NOTE: THE WATER HEATER MUST BE FREE OF DAMAGING
SCALE DEPOSITS AND NOT SUBJECT TO GAS PRESSURES
GREATER THAN THOSE SHOWN ON THE RATING PLATE, WHICH

MUST NOT BE ALTERED, DEFACED, OR REMOVED.

HOW TO MAKE A CLAIM

Any claim for warranty service should be made to your local dealer or
distributor, or to CEC. If to CEC, please contact the Service Department:
Controlled Energy Corporation
Fiddlers' Green
Waitsfield, Vt., 05673
Phone 802-496-4436
In most cases, the dealer or distributor will be able to promptly honor
your claim and notify CEC subsequently. However, ALL
REPLACEMENTS ARE MADE SUBJECT TO VALIDATION BY CEC
OF INWARRANTY COVERAGE. The damaged or defective item must

be made available in exchange for the replacement.

MISCELLANEAOUS

No one is authorized to make any other warranties on behalf of CEC.
IT IS EXPRESSLY UNDERSTOOD THAT THE REPLACEMENT
WARRANTY OF CEC SHALL BE IN LIEU OF ANY AND ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDED WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR
PURPOSE, AND FURTHER THAT CEC SHALL NOT BE LIABLE FOR
ANY LOSS OR DAMAGE DIRECTLY OR INDIRECTLY ARISING
FROM THE USE OR THE WATER HEATER, OR FOR ANY
CONSEQUENTIAL DAMAGES ARISING FROM SUCH USE
(INCLUDING DAMAGES FROM WATER LEAKAGE).
CEC's sole liability with respect to any defect shall be for the
replacement of the defective part (s). Some states do not allow such
limitations and exclusions, so the above may not apply to you.
This warranty gives specific legal rights. You may also have other rights
which vary from state to state. Please fill out and mail the enclosed
WARRANTY CERTIFICATE within THIRTY (30) days after installation.
In the event warranty service is required, reasonable proof of the
effective date of installation and operation must be provided; otherwise,
it may not be possible to honor this warranty.