License Agreement iFilmEdit( End User License Agreement PLEASE READ THIS DOCUMENT CAREFULLY BEFORE INSTALLING THE SOFTWARE. THIS AGREEMENT LICENSES THE ENCLOSED SOFTWARE TO YOU AND CONTAINS WARRANTY AND LIABILITY DISCLAIMERS. BY INSTALLING THE SOFTWARE, YOU ARE AGREEING TO BECOME BOUND BY THE TERMS OF THIS AGREEMENT. IF YOU DO NOT AGREE TO THE TERMS OF THIS AGREEMENT, DO NOT INSTALL THE SOFTWARE. 1. Definitions (a) "iFilmEdit" means the software program included in the enclosed package, and all related updates supplied by Cinax Designs Inc. (b) "iFilmEdit Package" means the iFilmEdit software and the related documentation and models and multimedia content (such as MPEG files) and all related updates supplied by Cinax Designs Inc. (c) "End-User Product" means the output file generated by you using the iFilmEdit. Examples of End-user Products include courseware, presentations, demonstration disks, interactive multimedia material, interactive film, interactive entertainment products and the like. 2. License. This Agreement allows you to: (a) Use the iFilmEdit on a single computer. (b) Make one copy of the iFilmEdit in machine-readable form solely for backup purposes. You must reproduce on any such copy all copyright notices and any other proprietary legends on the original copy of the iFilmEdit. (c) Make copies of the End-User Product and distribute those copies: i)for use by personnel employed by you: (ii) for use by parties provided that the copies are distributed free of direct or indirect charges; (iii) for further duplications and distribution by an entity that has in place a current Publisher's License Agreement with Cinax Designs Inc. (d) Certain iFilmEdit is licensed with additional rights as set forth in the Supplementary Rights Addendum that may be included in the package for this iFilmEdit product. 3. Supplementary Licenses. Certain rights are not granted under this Agreement, but may be available under a separate agreement. If you would like to enter into one of the Supplementary Licenses listed below, please contact Cinax Designs Inc. (a) Site License. You must enter into a iFilmEdit Site License if you wish to make copies of the iFilmEdit software for additional CPUs owned by you. (b) Distribution License. You must enter into a Cinax Publisher's License if you wish to copy and distribute an End-User Product other than as set forth in Section 2. 4. Restrictions. You may not make or distribute copies of the iFilmEdit or electronically transfer the from one computer to another or over a network. You may not decompile, reverse engineer, disassemble, or otherwise reduce the iFilmEdit to a human perceivable form. You may not modify, rent, resell, for profit, distribute or create derivative works based upon the iFilmEdit or any part thereof. 5. Ownership. The foregoing license grants give you limited rights to use the iFilmEdit software. Although you own the disk on which the iFilmEdit is recorded, you do not become the owner of, and Cinax Designs Inc. retains title to, the and all copies thereof. All rights not specifically granted in this Agreement are reserved by Cinax Designs Inc. 6. Limited Warranties (a) Cinax warrants that, for a period of ninety (90) days from the date of delivery (as evidenced by a copy of your receipt): (i)the iFilmEdit will perform in substantial conformance with the documentation supplied as part of the iFilmEdit Package and (ii) that the media on which the iFilmEdit is furnished will be free from defects in materials and workmanship under normal use. EXCEPT AS SET FORTH IN THE FOREGOING LIMITED WARRANTY, CINAX DISCLAIMS ALL OTHER WARRANTIES EITHER EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON INFRINGEMENT. IF APPLICABLE LAW IMPLIES ANY WARRANTIES WITH RESPECT TO THE iFilmEdit PACKAGE ALL SUCH WARRANTIES ARE LIMITED IN DURATION TO NINETY (90) DAYS FROM THE DATE OF DELIVERY. No oral or written information or advice given by Cinax, its dealers, distributors, agents or employees shall create a warranty or in any way increase the scope of this warranty. (b) SOME STATES AND PROVINCES DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. THIS WARRANTY GIVES YOU SPECIAL LEGAL RIGHTS AND YOU MAY ALSO HAVE OTHER LEGAL RIGHTS WHICH VARY FROM PLACE TO PLACE. 7. Exclusive Remedies (a) Your exclusive remedy under Section 6 is to return the iFilmEdit Package to the place you acquired this software, with a copy of your receipt and a description of the problem. Cinax Designs Inc. will use reasonable commercial efforts to supply you with a replacement copy of the iFilmEdit that reasonably conforms to the documentation or to provide a replacement for the defective media, as appropriate. Cinax Designs Inc. shall have no responsibility with respect to nonconformance arises out of use of the iFilmEdit in conjunction with software or hardware not supplied by Cinax Designs Inc. or with respect to any media damaged by accident, abuse or misapplication. (b) As your exclusive remedy in the event of a breach of the limited warranty, Cinax Designs Inc. may refund to you your purchase price for the iFilmEdit Product. 8. Limitations of Damages. (a) CINAX DESIGNS INC. SHALL NOT BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS, LOSS OF PROFITS, OR THE LIKE), WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE). PRODUCT LIABILITY OR OTHERWISE, EVEN IF CINAX DESIGNS INC. OR ITS REPRESENTATIVES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF A REMEDY SET FORTH HEREIN IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE. (b) Cinax Design's Inc. total liability to you for actual damages for any cause whatsoever will be limited to the greater of $500 or the amount paid by you for the iFilmEdit that caused such damages. (c) SOME STATES AND PROVINCES DO NOT ALLOW THE LIMITATIONS OR EXCLUSION OF LIABILITY FOR INCIDENTAL OF CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 9. Basis of Bargain. The limited warranty, exclusive remedies and limited liability set forth above are fundamental elements of the basis of the bargain between Cinax Designs Inc. and you. Cinax Designs Inc. would not be able to provide the iFilmEdit on an economic basis without such limitations. 10. General. This Agreement shall be governed by the internal laws of the Province of British Columbia. This Agreement contains the complete agreement between the parties with respect to the subject matter hereof, and supersedes all prior or contemporaneous agreement or understanding, whether oral or written. All questions concerning this agreement shall be directed to: Cinax Designs Inc., 304-134 Abbott St., Vancouver, B.C., Canada V6B 4X2. Attention: Support.