Limited Product Warranty and Order Terms

Effective Date: July 1, 2025

Magosys Systems Ltd. and/or Magos America Inc. (“Magos“) provides this Limited Warranty to customers (the “Customer“) who have purchased hardware and/or software (the “Hardware” and the “Software“, respectively, and collectively, the “Product“) and/or services related to the Product (the “Service“)

This document outlines the warranty coverage for Hardware and references the relevant warranty terms for Software as outlined in Magos’ End-User License Agreement (“EULA“). Additional applicable terms are also provided in Magos’ Service-Level Agreement (“SLA“), included with the Purchase Order (“PO“). In the event of a conflict, this Limited Warranty takes precedence.

BY USING OUR PRODUCT AND/OR SERVICE, YOU AGREE TO THE TERMS OF THIS LIMITED WARRANTY

1. LIMITED WARRANTY

Important Notice: As of July 1, 2025, all hardware purchases are covered by a three (3) year Limited Warranty from the date of original purchase. Hardware purchased before this date remains subject to a one (1) year Warranty Period. The warranty applies to manufacturer defects and hardware performance issues.

1.1 Magos hereby represents and warrants that, in accordance with the terms and conditions specified in the SLA, it will, at its sole discretion and at no additional charge, repair or replace any Product or component that is found to have a defect in materials or workmanship (the “Defect” and/or “Defective Product”) during the applicable Warranty Period. This applies only if the Product has been used under normal operating conditions and in accordance with Magos’ official documentation.

1.2 This Limited Warranty shall become effective on the Product’s purchase date and shall remain in effect for the applicable Warranty Period as defined above. Customer acknowledges and agrees that this Limited Warranty constitutes the sole and exclusive liability of Magos with respect to defective or non-conforming Products, and it replaces all other warranties—express, implied, statutory, or otherwise—including any implied warranties of merchantability or fitness for a particular purpose. After the Warranty Period, or in cases falling under exclusions, Magos shall have no liability under this Limited Warranty.

1.3 To initiate a claim, the Customer must submit a written notice of the defect (a “Written Claim”) within the Warranty Period. Magos must be allowed to inspect and verify the reported defect in accordance with the Service Level Agreement (SLA). A valid Order Confirmation (“OC“) must be provided with the claim. Repaired or replaced Hardware will remain under warranty for the remainder of the original Warranty Period or for ninety (90) days from the date of return, whichever is longer.

1.4 Before any return, the Customer must obtain an RMA (Return Material Authorization) from Magos. The RMA product must be shipped using its original packaging or an equivalent protective solution as outlined in the SLA. The package must clearly state that it is an RMA return and must not be issued as a sales invoice. All customs, tax, and import duties resulting from incorrect documentation will be the Customer’s responsibility.

1.5 The Customer is responsible for arranging and paying for shipping to Magos. If the returned Product is confirmed to be defective under the terms of this warranty, Magos will return the repaired or replacement unit at no cost. If the Product is not found defective, the Customer will be responsible for all return shipping and handling costs, including any inspection or labor-related charges.

1.6 Customer acknowledges that the delivery date set forth in an Order Confirmation (OC) is based upon Magos’ reasonable judgment and is subject to production limitations and factory schedules; therefore, it is not guaranteed. Delivery will be made Ex-Works (Incoterms 2020) at Magos’ manufacturing facility. The delivery time is deemed to occur when the Product is picked up by the carrier selected by the Customer. Magos shall not be liable for any indirect, incidental, or consequential damages—including losses or added costs— resulting from any failure to deliver or delay in delivery, regardless of cause.

2. WARRANTY EXCLUSIONS

2.1 This Limited Warranty is conditioned upon:

The Product being stored, used, and maintained in strict compliance with Magos’ documentation and instructions (the “Applicable Product Documentation”);
The Customer having paid all outstanding amounts due to Magos.

In the event of default in payment by the Customer for Products and/or Services, and without limiting any other right or remedy available to Magos, Magos reserves the right to: (a) suspend and/or terminate any rights granted to the Customer and/or any obligations under this Limited Warranty, the EULA, the SLA, and/or any PO or OC; (b) repossess Magos’ Products; (c) pursue all available actions to recover unpaid amounts from the Customer; and (d) charge interest on such unpaid amounts to the extent permitted by law.

2.2 Subject to additional exclusions detailed in the SLA, this Limited Warranty does not cover any Product or component thereof which: (a) has been subjected to unusual physical or electrical stress, including but not limited to extreme temperatures, power surges, or improper voltage; (b) has been altered or modified in any way from its original form, structure, or intended use; (c) has been used in conjunction with unauthorized equipment or software; (d) has been licensed for evaluation only (a “Trial Version”); (e) has had its serial number or other identifying marks removed, modified, or rendered illegible; (f) has been damaged due to accident, misuse, neglect, improper installation or testing, unauthorized repairs, environmental conditions, acts of God, or use inconsistent with Magos’ instructions, documentation, or intended purpose.

“Trial Version” refers to evaluation-only versions of the Product with limited features, not intended for production use.

2.3 Customer acknowledges that, under certain circumstances, a recall of Products may be necessary. In the event of a recall, and subject to Magos’ sole discretion and option, Magos and/or its authorized distributors may repair and/or replace all affected Products or unused Product components. This Limited Warranty does not impose an obligation on Magos to initiate or implement any recall. Any such action shall be based solely on Magos’ technical and commercial judgment.

3. DISCLAIMERS

OTHER THAN AS EXPLICITLY STATED HEREIN, AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PRODUCT, THE SERVICE, AND THE RELATED DOCUMENTATION ARE PROVIDED ON AN “AS IS” BASIS. MAGOS DOES NOT WARRANT THAT THE PRODUCT AND/OR SERVICE WILL MEET THE CUSTOMER’S REQUIREMENTS OR THAT THE OPERATION OF THE PRODUCT WILL BE SECURE, UNINTERRUPTED, ERROR-FREE, OR FREE OF VIRUSES, BUGS, WORMS, OR OTHER HARMFUL COMPONENTS.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, MAGOS EXPRESSLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES AND CONDITIONS, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, NON-INTERFERENCE, NONINFRINGEMENT, FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY QUALITY, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

FURTHERMORE, DUE TO THE CONTINUAL DEVELOPMENT OF TECHNIQUES FOR NETWORK INTRUSION AND ATTACKS, MAGOS DOES NOT WARRANT THAT THE PRODUCT WILL BE IMMUNE TO SECURITY BREACHES OR VULNERABILITIES. TO THE EXTENT THAT SUCH WARRANTIES CANNOT BE EXCLUDED UNDER APPLICABLE LAW, THEY SHALL BE LIMITED IN DURATION TO THE WARRANTY PERIOD AND SUBJECT TO THE REMEDIES DESCRIBED IN SECTION 1 ABOVE.

4. LIMITATION OF LIABILITY

4.1 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW:

a) MAGOS, INCLUDING ITS VENDORS, OFFICERS, SHAREHOLDERS, SUBCONTRACTORS, DIRECTORS, EMPLOYEES, AFFILIATES, SUBSIDIARIES, LICENSORS, AGENTS, AND SUPPLIERS (COLLECTIVELY, “MAGOS’ REPRESENTATIVES”), SHALL NOT BE LIABLE— WHETHER UNDER CONTRACT, TORT, OR OTHERWISE—TO THE CUSTOMER OR ANY THIRD PARTY FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, SPECIAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND. THIS INCLUDES, BUT IS NOT LIMITED TO, LOSS OR DAMAGE TO BUSINESS EARNINGS, LOST PROFITS, LOSS OF GOODWILL, LOST OR DAMAGED DATA OR DOCUMENTATION, INTERRUPTION OF BUSINESS, LOSS OF SAVINGS, LOSS OF REVENUES, COMPUTER MALFUNCTION, OR DOWNTIME—EVEN IF MAGOS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

b) IN NO EVENT SHALL THE TOTAL LIABILITY OF MAGOS AND MAGOS’ REPRESENTATIVES, ARISING OUT OF OR RELATING TO THIS AGREEMENT, FROM ALL CLAIMS OR CAUSES OF ACTION AND UNDER ALL LEGAL THEORIES, EXCEED THE TOTAL PAYMENTS ACTUALLY MADE BY THE CUSTOMER TO MAGOS FOR THE PRODUCT DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH LIABILITY. THIS LIMITATION OF LIABILITY IS CUMULATIVE AND NOT PER INCIDENT.

4.2 TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE TRIAL VERSION IS PROVIDED “AS IS” AND THIS LIMITED WARRANTY DOES NOT APPLY TO IT. MAGOS DISCLAIMS ANY AND ALL WARRANTIES RELATED TO THE TRIAL VERSION, DOCUMENTATION, AND ANY ASSOCIATED FILES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF NON-INFRINGEMENT OF THIRD-PARTY RIGHTS, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE. UNDER NO CIRCUMSTANCES SHALL THE TOTAL LIABILITY OF MAGOS OR MAGOS’ REPRESENTATIVES WITH RESPECT TO THE TRIAL VERSION EXCEED ONE US DOLLAR (US$ 1.00).

5. JURISDICTION AND GOVERNING LAW

5.1 This Limited Warranty, its performance, and its interpretation shall be governed exclusively by the substantive laws of the State of Israel, excluding its choice of law rules. The Uniform Law on the Formation of Contracts for the International Sale of Goods (Hague, 1964) and the United Nations Convention on Contracts for the International Sale of Goods (Vienna, 1980) shall not apply to this Limited Warranty.

5.2 The competent courts and tribunals located in Tel Aviv, Israel, shall have sole and exclusive jurisdiction over any dispute, controversy, or claim arising out of or in connection with this Limited Warranty, including its validity, breach, termination, or enforcement. The Customer irrevocably consents to such exclusive and personal jurisdiction and venue.

6. MISCELLANEOUS

6.1 This Limited Warranty, together with the SLA, the EULA, and any applicable Product Documentation provided by Magos, constitutes the complete, final, and exclusive statement of the terms and conditions between Magos and the Customer with respect to the subject matter hereof. It supersedes all prior or contemporaneous agreements, communications, and understandings—whether oral or written—relating to the same subject matter. In the event of any conflict between the provisions of this Limited Warranty and those outlined in the SLA, the EULA, the PO, the OC, or any Product Documentation, the terms of this Limited Warranty shall prevail. This Limited Warranty may only be modified by a written instrument duly executed by an authorized representative of Magos.

6.2 The Customer acknowledges that it may not insert or enforce any additional terms, conditions, or provisions in any PO issued to Magos in relation to Magos Products. Any such additional terms shall be deemed null and void, unless expressly approved in writing in advance by Magos’ CEO and specifically incorporated into the OC issued by Magos.

6.3 Notwithstanding any provision to the contrary, even if any remedy set forth herein fails of its essential purpose, Magos shall not be liable for any indirect, incidental, special, punitive, or consequential damages arising out of or in connection with this Limited Warranty, the Products, or the use thereof, including but not limited to lost profits or business interruption, even if Magos was advised, knew, or should have known of the possibility of such damages.

6.4 Without limiting Section 6.3 above, in no event shall Magos’ total liability for direct damages or otherwise, arising under or in connection with this Limited Warranty, exceed the actual purchase price paid by the Customer to Magos for the specific Product giving rise to the claim. Magos shall not be liable for any costs incurred by the Customer in connection with procuring replacement or substitute products.