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MAGIX AG LICENCE CONDITIONS

1. CONTRACT PURPOSE

MAGIX grants you (the customer) a non-exclusive licence for the enclosed MAGIX product. You are granted the right to use the purchased software as well as the music and video files on a computer (with one CPU or on a multi-processor computer) or in a network under the condition that access is provided on only one network computer. If several network computers have access to the server, then a separate license is needed for each network computer (workstation). MAGIX retains ownership, copyright and other proprietary rights related to the software. You (the customer) acknowledge the licensor`s ownership as well as all proprietary rights to the software, music and video files, back up copies and documentation. The buyer of the program is solely responsible for the proper contractual use of the licensed programs.
2. INSTALLATION

Together with the software you will receive an individual serial number which you have to enter during installation. For download versions, an online activation tailored for your CPU or your desktop is also needed. If you don`t have an Internet connection, activation per fax or post is also possible. With the serial number you can activate the software up to three times is this is necessary due to hardware/CPU exchange. After this, MAGIX will make new activation codes available for your new CPU/hardware upon request. In both cases it is prerequisite that the software is removed from your old hardware/CPU.
If a feature required a free or fee-based activation (e.g. codec activation), then this activation can be made up to three times, if it is necessary due to hardware/CPU exchange. If needed, MAGIX will provide you with additional activation codes upon request. Activation via the Internet, fax or post is possible.
3. COPY PROHIBITION

You are prohibited from copying the license program and the written documentation either partially or in its entirety. Creation of a software copy for back-up purposes is excluded from this provision.
The licensed program as well as the written documentation cannot be commercially rented out or commercially lent in any other form to a third party in exchange for payment. This also applies to lending of the software in a pre-installed form on a computer that is commercially offered to third parties in exchange for payment.
Commercial use for the software is allowed as long it does not contradict points 1 to 6 of this contract.
4. TRANSFER AND SUB-AGREEMENTS

The transfer of rights and obligations under this licence contract to third parties is only permitted on authorization from MAGIX with the exception of personal transfer of the legally acquired MAGIX product by the rightful owner. In the case of the ownership of the rightfully acquired MAGIX product being transferred in this fashion, the original owner is obliged to destroy all back-up copies and to delete the installation. A transfer of a MAGIX product not delivered on a physical data carrier (download version) is not permitted; an isolated transfers of the serial number is specifically prohibited. No verbal or written statements made by MAGIX or any MAGIX employee can alter or question the validity of this license agreement.
5. AMENDMENT PROHIBITION

You may not make any changes to the licensed software, personally or via third parties. You may not disassemble the software into its components, nor modify the object code, decompile, copy or use in any way other than that foreseen in the contract.
6. USE OF THE MUSIC, VIDEO AND PHOTO FILES

The music, photo and video files included in the MAGIX products may be used only for non-commercial purposes (exclusively for private purposes).
Only the music files contained in MAGIX Music Maker and MAGIX Soundpool DVD Collection may be used within newly-created musical works for commercial purposes too.
7. COMPENSATION FOR DAMAGES

MAGIX is entitled to proprietary and copyright protection for the licensed software as well as the music and video files. Anyone responsible for any violations against such rights may be sued by MAGIX.
8. GUARANTEE AND LIABILITY

a) You are aware that state of the art software programs and associated documentation may contain errors, and that it is not possible to develop data processing programs in such a way that they are error-free for all application conditions and all customer requirements, or error-free in conjunction with all third-party programs and hardware. The object of the contract is therefore software that is generally useable in the sense of the program description and user instructions. MAGIX provides no assurances of particular features and usability related to planned customer-specific applications.

b) If the programs are offered to the customer free of charge, the guarantee against deficiency in material and defects in title is limited to fraudulent concealment of defects by MAGIX in consideration of free licensing of the product.
Otherwise, liability of MAGIX is limited to instances of premeditation and gross negligence in consideration of the free licensing.

c) In the case of services provided in return for payment, MAGIX is liable for financial losses incurred from contractual and non-contractual claims including the incurrence of debt during contractual proceedings (on any legal grounds) solely to the following extent:

* Contractual and non-contractual obligation to compensate for damages on the part of MAGIX and its agents is given only in cases of violation of cardinal duties, where the customer is particularly entitled to expect fulfillment. Exclusion of liability does not apply to cases of bodily harm, intent and gross negligence.
* MAGIX`s liability does not extend to contract-untypical and other unpredictable damages. Liability for impairment/loss of saved data, lost profits and direct and indirect consequential damage is expressly excluded, unless it can be proven that MAGIX acted with intent or gross negligence. The user understands, that to avoid of damage and loss of your personal data it is strongly recommended to create regular back-ups. MAGIX is therefore liable only for damages incurred by data loss only in the presence of corresponding back-ups.
* In any event, MAGIX`s liability is limited to four times the amount paid for the licence fee by the customer. This exclusion does not apply to damage caused through intent or gross negligence on the part of MAGIX.
The Product Liability Law (ProdHaftG) applies as usual.

Deficiencies must be reported immediately on recognition and at the latest within 30 days. If within this period the customer establishes deviations between the program and the program description, he/she is entitled to send the deficient software back to the supplier and to demand appropriate corrective action. The deficiency must be redressed within a reasonable period, which may also be effected - at the discretion of MAGIX - through an appropriate replacement of the product or program version with a comparable performance scope. If such redress (incl. replacement) is not possible within a reasonable period or if the redress action fails, the customer is then entitled to contract cancellation, conditional upon destruction of all copies made, or a reduction in price as appropriate.

d) In relation to functions that operate via an Online Server, MAGIX guarantees average server availability of 98% a year. This does not include times in which the server is not available over the Internet due to technical or other problems not under the sphere of influence of MAGIX (force majeure, third party defaults, etc.). MAGIX explicitly does not vouch that the conditions outside the software are available at all times and are indelible. MAGIX will however, attempt to ensure that the connection service is provided for the duration for the reasonably expected software usage (life cycle), or at least four years following the customer`s purchase of the license.

MAGIX can temporarily limit or block access to the services, as long as this is to provide public safety, network safety, maintenance of network integrity and improved interoperability of the service, data protection, to counter spam or computer viruses or to render operationally or technically necessary services. Aforementioned limitations are exempt when calculating the stated service availability.
9. LICENCE CONDITIONS OF OTHER MANUFACTURERS

If the licensed product contains additional software, or should additional software be integrated, then compliance with the use and licence conditions of the manufacturer of said delivered additional software is also compulsory.
10. SUPPORT

Registered users receive electronic Internet support in the course of the warranty period. The free support encompasses clarification of installation questions and installation problems by Internet or email.
11. VALIDITY OF CONTRACTUAL CONDITIONS

Should one or more of the conditions in this contract be or become invalid, this will not affect the validity of the remaining contract. A substitute provision will replace the invalid condition, such as comes closest to the intended purpose. Place of performance for delivery purposes in Europe is Berlin. General place of jurisdiction is Berlin. The contract is subject to the law of the Federal Republic of Germany.