MAGIX AG LICENCE CONDITIONS: 1.

Contract purpose: MAGIX grants you (the customer) a non-exclusive licence for the enclosed MAGIX p roduct. You are granted the right to use the purchased software as well as the m usic and video files on a computer (with one CPU or on a multi-processor compute r) or in a network under the condition that access is provided on only one netwo rk computer. If several network computers have access to the server, then a sepa rate license is needed for each network computer (workstation). MAGIX retains ow nership, copyright and other proprietary rights related to the software. You (th e customer) acknowledge the licensor's ownership as well as all proprietary righ ts to the software, music and video files, backup copies, and documentation. The buyer of the program is solely responsible for the proper contractual use of th e licensed programs. The following applies concerning upgrades: Upgrades are more current or suppleme ntary versions of a MAGIX product (basic product), which are available at a lowe r price. Only owners of the basic product are authorized to receive each upgrade . Use of an upgrade depends on you being the owner and user of the basic product . An isolated circulation of an upgrade to third parties is not permitted. 2. INSTALLATION Together with the software you will receive an individual serial number which yo u have to enter during installation. For download versions, an online activation modified for your CPU i.e. your desktop is also needed. If you don't have an In ternet 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 avail able for your new CPU/hardware upon request. In both cases it is prerequisite th at the software is removed from your old hardware/CPU. b. 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 h ardware/CPU exchange. If needed, MAGIX will provide you with additional activati on codes upon request. You are not entitled to additional free activation codes. Activation via the Internet, fax or post is possible. 3. PROHIBITION TO COPY AND RENT/OTHER COMMERCIAL USE: You are prohibited from copying the licensed program and the written documentati on 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 for m on a computer that is commercially offered to third parties in exchange for pa yment. 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 part ies 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 ca se 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. Keep in mind the general limitation to three activa tions as described in 2.b. during the transfer. If you require further activatio ns, please contact MAGIX. A transfer of a MAGIX product not delivered on a physi cal data carrier (download version) is not permitted; an isolated transfer of th e 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 licen se agreement. 5. Amendment prohibition You may not make any changes to the licensed software, personally or via third p arties. 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 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). Commercial use constitutes receipt of financial benefits through direct use of the files (throu gh sale, licensing etc.). An isolated circulation of an upgrade to third parties is not permitted. This applies to the products "Web Designer", "Premium Web Des igner" and "Photo & Graphic Designer" and accompanying music, video and photo fi les with the proviso that these files may be used on a commercial site, or for c reating / editing personal photos and graphics may be used. Disclosure to third parties for commercial purposes is prohibited. 7. CLAIM FOR DAMAGES: MAGIX is entitled to proprietary and copyright protection for the licensed softw are 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 document ation 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. 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 aga inst deficiency in material and defects in title is limited to fraudulent concea lment 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 f inancial losses incurred from contractual and non-contractual claims including t he incurrence of debt during contractual proceedings (on any legal grounds) sole ly to the following extent: - Contractual and non-contractual obligation to compensate for damages on the pa rt of MAGIX and its agents is given only in cases of violation of cardinal dutie s, 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 unpredictabl e 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 cr eate regular back-ups. MAGIX is therefore liable only for damages incurred by da ta loss only in the presence of corresponding back-ups. - In any event, MAGIX's liability is limited to four times the amount paid for t he licence fee by the customer. This exclusion does not apply to damage caused t hrough 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 withi n 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 s oftware back to the supplier and to demand appropriate corrective action. The de ficiency must be redressed within a reasonable period, which may also be effecte d at the discretion of MAGIX through an appropriate replacement of the product o r program version with a comparable performance scope. If such redress (incl. re placement) is not possible within a reasonable period or if the redress action f ails, the customer is then entitled to contract cancellation, conditional upon d estruction of all copies made, or a reduction in price as appropriate. e) 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 softwar e are available at all times and are indelible. MAGIX will however, attempt to e nsure that the connection service is provided for the duration for the reasonabl y expected software usage (life cycle), or at least four years following the cus tomer'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 i mproved interoperability of the service, data protection, to counter spam or com puter viruses or to render operationally or technically necessary services. Afor ementioned limitations are exempt when calculating the stated service availabili ty. 9. LICENCE CONDITIONS OF OTHER MANUFACTURERS: If the licensed product contains additional software, or should additional softw are be integrated, then compliance with the use and licence conditions of the ma nufacturer of said delivered additional software is also compulsory. If the lice nsed product contains additional software, you can view the appropriate use and licensing terms in the file "Drittlizenzen.txt". These can be found in the main directory of this disk or the root directory of the download. 10. SUPPORT: Registered users receive electronic Internet support in the course of the warran ty 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 purpos e. 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 Re public of Germany.