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1. General

1.1 These Terms and Conditions govern all the deliveries and services of WIBU-SYSTEMS AG (hereinafter referred to as WIBU-SYSTEMS) to businesses. Businesses include natural persons or legal entities or partnerships with a legal capacity, who, by concluding a legal transaction, are acting in the exercise of their trade, business, or profession, as well as legal persons under public law and special funds under public law.

1.2 Deviating or supplementary agreements – especially resulting in conflicting business terms and conditions – shall require the express written consent of WIBU-SYSTEMS to be effective.

1.3 All orders and contracts of the Buyer (quotations), together with warranties of the quality and features of the contract goods, shall require the written confirmation of WIBU-SYSTEMS. Contracts also come into existence through WIBU-SYSTEMS beginning the delivery of goods or services pursuant to an order by the Buyer. WIBU-SYSTEMS is entitled to requesting a written confirmation of an oral contract declaration made by the Buyer.

1.4 The Buyer shall be bound to conclude a contract within a period of three weeks from the date of expressing their written intent.

2. Payment

Unless otherwise individually agreed, prices shall be ex-factory, Karlsruhe, Germany, plus value-added tax. Insofar as nothing else has been agreed upon, payments shall be made within 30 days of the invoice date, net, with no deductions applicable. In the event of payment default, WIBU-SYSTEMS may charge 9% interest above the then applicable base interest rate.

3. Delivery dates

3.1 Delivery dates and periods shall be binding if they have been individually designated in writing as binding by WIBU-SYSTEMS. Otherwise all delivery dates and periods shall not be binding.

3.2 If non-compliance with a delivery period is attributable to difficulties which WIBU-SYSTEMS is not responsible for, the delivery period shall be extended accordingly. In the event of default on delivery, the Buyer shall have the right to withdraw from the delivery contract after expiry of a reasonable grace period set for WIBU-SYSTEMS. The liability limitations in accordance with Section 9 shall apply to any other compensation claims which the Buyer may have as a result of delayed deliveries or services. WIBU-SYSTEMS may execute partial deliveries or services if the Buyer has no particular interest in a single delivery and the Buyer does not incur any additional transportation costs as a result of partial deliveries. The payment periods in Clause 2 shall apply accordingly.

4. Transfer of risk

The risk shall pass to the Buyer upon the dispatch of goods by WIBU-SYSTEMS.

5. Reservation of title

5.1 WIBU-SYSTEMS shall retain title to the goods pending full and complete settlement of the contractual claims or, in the case of a current business relationship, of all claims from the current relationship. If the Buyer fulfills its payment obligations to WIBU-SYSTEMS and is abiding by the software license terms (Sections 10 and 11), it may resell and/or process goods under reservation of title in the ordinary course of business.

5.2 Any processing by the Buyer of products supplied by WIBU-SYSTEMS shall be made on behalf of WIBU-SYSTEMS. Retention of title shall also apply to the full value of goods which are the result of processing, mixing or combining WIBU-SYSTEMS goods, whereby WIBU-SYSTEMS shall be deemed the manufacturer.

5.3 In the event that the retention of title of third parties still persists when WIBU-SYSTEMS goods are processed, mixed or combined with the goods of these third parties, WIBU-SYSTEMS shall acquire co-ownership of such processed, mixed or combined goods in proportion to their value. In all other respects, the newly created goods are subject to the same terms as goods supplied under retention of title. Claims which arise against third parties from the resale of goods or products shall herewith be assigned to WIBU-SYSTEMS by the Buyer as a security either in their entirety or in the amount of WIBU-SYSTEMS proportional ownership. WIBU-SYSTEMS and the Buyer are both authorized to collect any claims, subject to revocation by WIBU-SYSTEMS. WIBU-SYSTEMS agrees not to collect these claims as long as the Buyer complies with its payment obligations towards WIBU-SYSTEMS, is not in default of payment, no application to open insolvency proceedings has been filed, and the Buyer's financial position is deemed stable. However, if any of these cases exist, WIBU-SYSTEMS may demand that the Buyer discloses all assigned claims and associated debtors to WIBU-SYSTEMS, that it provides all the necessary information required for collection, that it hands over related documents, and it notifies its debtors of the assignment.

5.4 Pledges or transfers by way of security shall not be permitted. In the event of access by third parties to the goods subject to the retention of title, the Buyer shall draw attention to the ownership of WIBU-SYSTEMS and shall inform WIBU-SYSTEMS in writing without undue delay. In the event of conduct in breach of contract by the Buyer, in particular in the event of non-payment of the due purchase price, WIBU-SYSTEMS may withdraw from the contract in accordance with the statutory provisions and demand the surrender of the goods. The demand for the surrender of goods does not simultaneously imply withdrawal from the contract; rather WIBU-SYSTEMS may demand the surrender of the goods only, while reserving the right to withdraw from the contract. In the event that the Buyer does not pay the due purchase price, WIBU-SYSTEMS may only assert these rights if WIBU-SYSTEMS has previously set the Buyer a reasonable period for payment to no avail or if setting such a time limit is unnecessary according to the statutory provisions. If the realizable value of the securities exceeds WIBU-SYSTEMS’s claims by more than 10%, WIBU-SYSTEMS shall, at the Buyer's written request, release securities.

6. Obligation to examine and report defects

The Buyer shall examine the delivery immediately or latest within 14 working days. Any defects which are ascertained (at any time) shall be reported by the Buyer to WIBU-SYSTEMS by registered mail. Defect complaints must include an as detailed description of the alleged defect as possible. In the event of a breach of the duty to examine and report defects, the delivery shall be considered approved as far as the defects are concerned.

7. Warranty

7.1 WIBU-SYSTEMS guarantees that its products are free of defects at the time of the transfer of risk. WIBU-SYSTEMS guarantees in particular that the software conforms to the specifications set out by WIBU-SYSTEMS in the relevant program documentation. Freedom from defects means practical suitability. Defect claims do not exist if there are only insignificant deviations from the agreed or assumed quality and features, or if there is only an insignificant impairment of usability. Product descriptions shall not be considered a warranty of the quality and features of the products.

7.2 The Buyer has sufficient opportunity for testing the software in operation before conclusion of the contract.

7.3 If the supplied hardware is defective, WIBU-SYSTEMS may, at its discretion, repair the defect or offer replacement hardware, also repeatedly, depending on the type of defect. Defects to the software (or firmware) may, at the discretion of WIBU-SYSTEMS, be rectified by supplying improved software, or by indicating how to fix the defect or suggesting a workaround. Several attempts at rectification are allowed depending on the type of defect. The Buyer shall install new versions of the software on its own.

7.4 The Buyer shall grant WIBU-SYSTEMS a reasonable period of time to remedy the defect. For software defects (even if the software is embedded in the hardware), a repair period of 6 weeks shall be regarded as a reasonable period. WIBU-SYSTEMS shall provide an estimate within latest six working days of when the defect is expected to be rectified or, at least, the usability of the software not impaired, in the case of operationally preventive errors.

7.5 The Buyer shall assist the rectification of the defect e.g. by providing a written description of the defect, assisting the identification of the defect’s cause, or providing testing materials and access to the Buyer’s devices. WIBU-SYSTEMS has the right to refuse rectification of the defect if such assistance is not provided or insufficient.

7.6 If the defect cannot eventually be remedied, or if, in an individual case, the Buyer cannot be reasonably expected to accept the repair, the Buyer may, at its discretion, withdraw from the contract (withdrawal), or demand a reduction in the purchase price (price reduction), and demand compensation instead of performance – within the limits of Section 9.

7.7 The warranties shall lapse if a defect is the result of the Buyer or a third party modifying, or incorrectly using or repairing the products without the consent of WIBU-SYSTEMS, or if the Buyer or a third party has not installed, operated or maintained the products in accordance with the guidelines of WIBU-SYSTEMS, unless the Buyer provides proof that these conditions did not cause the defect.

7.8 The warranty period shall be 36 months.

8. Intellectual property rights and copyrights of third parties, WIBU-SYSTEMS reference list

8.1 WIBU-SYSTEMS guarantees that the supplied item is free from intellectual property rights and copyrights of a third party that preclude the contractual granting of rights to the Buyer. In the event of claims being made against a contract partner as a result of the infringement of such rights, the one contract partner will inform the other partner in writing and without undue delay.

8.2 Should the supplied item nevertheless infringe an intellectual property right or a copyright of a third party, WIBU-SYSTEMS shall, at its discretion and at its own cost, modify or replace the supplied item so that it no longer infringes any third party rights but still continues to function as contractually agreed, or obtain user rights for the Buyer by concluding a license agreement. If WIBU-SYSTEMS fails to do so within a reasonable period of time, the Buyer may withdraw from the contract or demand a reduction in the purchase price or demand compensation - within the limits of Section 9.

8.3 In the event of a breach of rights by products from other manufacturers supplied by WIBU-SYSTEMS, WIBU-SYSTEMS shall, at its discretion, make claims against the manufacturer and upstream suppliers for the account of the Buyer or assign the claims to the Buyer. In these cases, claims against WIBU-SYSTEMS in accordance with Section 8 only exist if legal enforcement of claims against the manufacturer and upstream suppliers was unsuccessful or is futile, for example, due to insolvency.

8.4 The Buyer shall consent to WIBU-SYSTEMS including it in its reference list or other communications material and publicizing in other ways its business relationship with the Buyer. This includes using the Buyer's distinctive trademarks, in particular its word mark, pictorial mark, combined word-picture for this purpose. The Buyer will comply with WIBU-SYSTEMS's request to supply printable digital templates of its distinctive marks. The Buyer may revoke its consent at any time in writing.

9. Liability

9.1 Subject to applicable statutory regulations, WIBU-SYSTEMS shall be liable without limitation for losses arising through willful intent, or in case of liability in accordance with the German Product Liability Act, or in case of fraudulent concealment of a defect, or in cases where WIBU-SYSTEMS has accepted a warranty for the quality and features of the item, or in case of losses arising from injuries caused to life, body or health. In the event of gross negligence, liability shall be limited to the typical damage foreseeable at the time of conclusion of the contract.

9.2 In all other respects, WIBU-SYSTEMS shall only be liable for the culpable violation of essential contractual obligations for damage typical of the contract. Essential contractual obligations are obligations that protect the Buyer’s essential contractual legal position as inherent in the nature of the contract; essential contractual obligations are also obligations whose fulfillment enables proper execution of the contract in the first place, and whose fulfillment the Buyer has regularly trusted in and may trust in.

9.3 Additional contractual and tortious claims for damages or reimbursement of expenses shall be excluded.

9.4 Insofar as WIBU-SYSTEMS’s liability is excluded or limited, this shall also apply to the personal liability of WIBU-SYSTEMS’s employees, representatives, and vicarious agents.

9.5 Liability for loss of data shall be limited to the typical costs which would have been incurred if a regular data backup, appropriate to the level of risk, had been performed.

10. License terms and conditions

10.1 The Buyer shall be granted a simple, non-exclusive and non-transferrable right to use the object code of WIBU-SYSTEMS software and of third-party software (software developed by a software vendor independent of WIBU-SYSTEMS) for internal use. This right of use does not confer any other rights in the software. WIBU-SYSTEMS shall reserve all distribution, exhibition, demonstration, performance, and publication rights to the software. The same shall apply to the processing and reproduction rights unless agreed otherwise. Section 11 applies for products acquired by the Buyer for their contractually agreed transfer to third parties.

10.2 WIBU-SYSTEMS shall not be obliged to make the source code available to the Buyer. The Buyer is prohibited from re-engineering, reassembling/decompiling, editing or modifying the object code of the software in any way. § 69e German Copyright Act (Urhebergesetz) remains unaffacted.

10.3 Copying of software and the accompanying material stored on data storage media, e.g. its reproduction to electro-magnetic, optoelectronic, or any other data storage medium, is prohibited. Exceptions to the aforesaid are the one-off installation of the software from the data storage medium to the hard disk, and the downloading or printing of data from the running application for internal use only. The ban on copying does not apply to the creation of backup copies for internal use for the sole purpose of safeguarding the contractually intended use of the software. Insofar as the originals contain copyright notices, the Buyer shall ensure that all copies contain them.

10.4 Insofar as a WIBU-SYSTEMS product contains open source software, this shall be marked explicitly, in which case the Buyer acquires rights of use directly from the copyright holders of the respective open source components and not from WIBU-SYSTEMS. The license terms of the open source components replace the aforesaid license terms and apply exclusively. WIBU-SYSTEMS shall make these license terms available to the Buyer upon the Buyer’s request.

11. Special license terms and conditions for the use of WIBU-SYSTEMS runtime software and libraries

Notwithstanding Section 10, when using WIBU-SYSTEMS hardware, e.g. WibuBoxes or CmSticks, or the software-based protection, CmActLicense, or CmCloud, the following license terms shall apply:

11.1 The Buyer may integrate the WIBU-SYSTEMS software libraries required for the use of WIBU-SYSTEMS protection systems into its computer programs or data as described in the relevant manual in order to protect them from unauthorized use or to monitor their usage.

11.2 The Buyer may also pass on the integrated WIBU-SYSTEMS software libraries to distributors and end users, together with its computer programs and data, and distribute the WIBU-SYSTEMS runtime software as part of its protected software. The Buyer’s customers shall have the right to use the WIBU-SYSTEMS software libraries and WIBU-SYSTEMS runtime software as components of the protected computer programs and data according to the provisions.

11.3 Before passing on the WIBU-SYSTEMS software libraries and WIBU-SYSTEMS runtime software, the Buyer is obliged to check that these components function correctly with the protected computer programs and data, and to report any problems to WIBU-SYSTEMS without due delay.

12. Export regulations and customs clearance

Insofar as the products are exported, the Buyer shall observe German export regulations and shall draw the attention of its customers to the fact that German export regulations apply in the event of export. If, at the Buyer's request, deliveries are exported with duty unpaid, the Buyer shall be liable to WIBU-SYSTEMS for any subsequent Customs and Excise duties.

13. Software and security updates

WIBU-SYSTEMS intends to provide new software versions (software updates or firmware updates) without recognition of a legal obligation and without compensation.

14. Final provisions

14.1 The Buyer may transfer its rights and obligations under this contract only with the prior written consent of WIBU-SYSTEMS. The Buyer shall only be entitled to set off claims against WIBU-SYSTEMS or to assert its right to withhold payment, if its counterclaim has been legally acknowledged or ruled final and absolute by a court.

14.2 The contractual relationship shall be governed exclusively by German law under exclusion of references to foreign law and the United Nations Convention on Contracts for the International Sale of Goods (CISG).

14.3 The place of performance and legal venue for all disputes arising from this contractual relationship, how it came into existence and its legal effect shall be Karlsruhe, Germany, provided the Buyer is a merchant, a legal entity under public law, or a special fund under public law. WIBU-SYSTEMS may also enforce claims at the competent court for the place of residence or business of the Buyer.

14.4 Should any provisions of these General Terms and Conditions be or become invalid, the remaining provisions shall not be affected. The parties shall then endeavor to replace the invalid provision by an appropriate alternative which comes closest to fulfilling the intended purpose of the invalid provision.

[Note: In the event of any deviations resulting from the translation, the formulation set forth in the German version shall prevail.]

                                                                                           May 20, 2019

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