Licensing Grace Period Policy

Article 1: Grace Period

1.1 Overview
The Grace Period is a key provision offered to Distribution Partners (DPs) by Kognitive Networks as stipulated in the Master Services Agreement (MSA). This period permits the use of software licenses to configure and test the software's integration and functionality in preparation for deployment. The specifics of the Grace Period, such as its duration and the permissible number of device registrations and de-registrations, are tailored to each DP and clearly outlined in the MSA to ensure transparency and mutual agreement.

1.2 Conditions

• 1.2.1 Duration: As defined in the Master Services Agreement (MSA), this is the period during which the license is considered pre-deployment. It represents the time directly before SaaS license charges begin or the periodic license term starts to be consumed.

• 1.2.2 Registration Limitations: Allows DPs to register and de-register devices multiple times within the Grace Period to assess the software under different conditions.

1.3 Validity

• 1.3.1 Commencement: Begins with the successful registration and activation of a software license.

• 1.3.2 Termination: Automatically converts to a Production license at the end of the Grace Period.

1.4 Management during Grace Period

• 1.4.1 Warehouse Returns: Returns of devices to the warehouse suspend the Grace Period, deactivating the device's license until possibly re-registered.

1.5 Invoicing

• 1.5.1 Billing Commencement: Invoicing starts from the registration date plus the Grace Period duration. The initial invoice after the Grace Period includes charges for the days in Production and the upcoming month.

Article 2: Production License

2.1 Notice Period Requirements
A mandatory 30-day notice is required for the termination of any Production license, ensuring an orderly transition and clarity in billing.

• 2.1.1 Monthly Licenses: Charges apply until the end of the 30-day notice period from the de-registration notification.

• 2.1.2 Annual Licenses: De-registration must be initiated at least 30 days before the annual renewal to avoid renewal charges.

Article 3: De-Registration of KaaS License

3.1 De-Registration Process
Following a de-registration request, the earliest permissible de-registration date will be confirmed.

3.2 Billing Post De-Registration
Billing continues up to the confirmed de-registration date.

Article 4: Development and Enhancements*

Features listed in this article are currently under development and will provide additional flexibility and functionality upon their completion. These are marked with an asterisk (*) to denote their status as upcoming enhancements:

• 4.1 License Migration
  Ability to migrate this license to another device (in development).

• 4.2 Early Warehouse Return
  Option for the Device to be moved back to the Warehouse earlier than the de-registration date (in development).