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END-USER LICENSE AGREEMENT FOR
THE SHROUD SDK, THE SHROUD RUNTIME, AND SHROUD STUDIO

IMPORTANT: PLEASE READ THE TERMS AND CONDITIONS OF THIS LICENSE AGREEMENT CAREFULLY BEFORE INSTALLING OR USING THIS SOFTWARE .

This End-User License Agreement (“EULA”) is a legal agreement between you (either an individual or a single entity) and CloakWorks Inc. for the software product(s) identified above, which may include associated software components, media, printed materials, and “online” or electronic documentation (“SOFTWARE PRODUCT”).

By installing, copying, or otherwise using the SOFTWARE PRODUCT, you agree to be bound by the terms of this EULA. This license agreement represents the entire agreement concerning the SOFTWARE PRODUCT between you and CloakWorks Inc., (referred to as “licenser”), and it supersedes any prior proposal, representation, or understanding between the parties. If you do not agree to the terms of this EULA, do not install or use the SOFTWARE PRODUCT.

The SOFTWARE PRODUCT is protected by copyright laws and international copyright treaties, as well as other intellectual property laws and treaties.

The SOFTWARE PRODUCT is licensed, not sold.

1. GRANT OF LICENSE. CloakWorks Inc. grants you a non-exclusive, non-transferable, perpetual license to use the SOFTWARE PRODUCT subject to the terms and conditions of this Agreement:

(a) Installation and Use. CloakWorks Inc. grants you the right to install the SOFTWARE PRODUCT on up to two (2) computers running a validly licensed copy of the operating system for which the SOFTWARE PRODUCT was designed and to use the SOFTWARE PRODUCT during the TERM on up to one (1) of those computers simultaneously.

(b) Redistribution. You may reproduce and distribute the Redistributable Code (ie: the Shroud Runtime libraries) for which you have a valid license only in object code form and only as fully integrated into a software application. Any commercial software application integrating the SOFTWARE PRODUCT is subject to a license to CloakWorks for use and public display of such software application for advertising and marketing purposes. Failure to comply with this section shall be considered a material breach of this agreement.

(c) Attribution. For games and demos that use the SOFTWARE PRODUCT, the Shroud Cloth Simulation Engine logo must appear during the opening marquee and in the credits. For all other applications CloakWorks and specifically Shroud must be credited in the same place as the application’s authors.

(d) Backup Copies. You may also make one (1) copy of the SOFTWARE PRODUCT for backup and archival purposes.

(e) License Limitation. The free version of Shroud Studio (ie: Shroud Studio Basic) may not be licensed and used by companies, educational institutions or incorporated entities that had a gross revenue in excess of US$100,000 in their prior fiscal year.

(f) Reservation of Rights. All rights not expressly granted in this EULA are reserved by CloakWorks Inc.

2. DESCRIPTION OF OTHER RIGHTS AND LIMITATIONS.

(a) Maintenance of Copyright Notices. You must not remove or alter any copyright notices on any and all copies of the SOFTWARE PRODUCT.

(b) Prohibition on Reverse Engineering, Decompilation, and Disassembly. You may not reverse engineer, decompile, or disassemble the SOFTWARE PRODUCT or otherwise attempt to discover its source code.

(c) Rental, Distribution and Export. You may not rent, lease, lend or otherwise distribute, transfer or export the SOFTWARE PRODUCT.

(d) Compliance with Applicable Laws. You must comply with all applicable laws regarding use of the SOFTWARE PRODUCT.

3. TERMINATION. Without prejudice to any other rights, CloakWorks Inc. may terminate this EULA if you fail to comply with its terms and conditions. Upon termination you shall uninstall and destroy all copies of the SOFTWARE PRODUCT in your possession.

4. COPYRIGHT All title, including but not limited to copyrights, in and to the SOFTWARE PRODUCT and any copies thereof are owned by CloakWorks Inc. or its suppliers. All title and intellectual property rights in and to the content which may be accessed through use of the SOFTWARE PRODUCT is the property of the respective content owner and may be protected by applicable copyright or other intellectual property laws and treaties. This EULA grants you no rights to use such content.

5. NO WARRANTIES CloakWorks Inc. expressly disclaims any warranty for the SOFTWARE PRODUCT, including any third party libraries contained therein. The SOFTWARE PRODUCT is provided ‘As Is’ without any express or implied warranty of any kind, including but not limited to any warranties of merchantability, noninfringement, or fitness of a particular purpose. CloakWorks Inc. does not warrant or assume responsibility for the accuracy or completeness of any information, text, graphics, links or other items contained within the SOFTWARE PRODUCT. CloakWorks Inc. makes no warranties respecting any harm that may be caused by the transmission of a computer virus, worm, time bomb, logic bomb, or other such computer program. CloakWorks Inc. further expressly disclaims any warranty or representation to Authorized Users or to any third party.

6. LIMITATION OF LIABILITY In no event shall CloakWorks Inc. be liable for any damages (including, without limitation, lost profits, business interruption, or lost information) rising out of ‘Authorized Users’ use of or inability to use the SOFTWARE PRODUCT, even if CloakWorks Inc. has been advised of the possibility of such damages. In no event will CloakWorks Inc. be liable for loss of data or for indirect, special, incidental, consequential (including lost profit), or other damages based in contract, tort or otherwise. CloakWorks Inc. shall have no liability with respect to the content of the SOFTWARE PRODUCT or any part thereof, including but not limited to errors or omissions contained therein, libel, infringements of rights of publicity, privacy, trademark rights, business interruption, personal injury, loss of privacy, moral rights or the disclosure of confidential information.

7. THIRD PARTY LIBRARIES SHROUD STUDIO contains the following third party libraries:

NVIDIA Cg. Copyright © 2002-2010 NVIDIA Corp.

Autodesk FBX SDK 2012 Copyright © 2011 Autodesk, Inc. All rights reserved.

OGRE Copyright (c) 2000-2009 Torus Knot Software Ltd:

Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the “Software”), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED “AS IS”, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

8. GENERAL TERMS.

(a) Governing Law. This Agreement shall be governed by the laws applicable in the State of Illinois.

(b) Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior communications, understandings and agreements relating to the subject matter hereof, whether oral or written.

(c) Severability. Invalidity or unenforceability of one or more provisions of this Agreement shall not affect any other provision of this Agreement.