IMPORTANT -- READ CAREFULLY: This End-User License Agreement ("EULA") is a legal agreement between You (either an individual person or a single legal entity who will be referred to in this EULA as "You" and "Your") and E-Book Systems, Inc. ("E-Book") for the E-Book product identified above (the "Product") including any associated media, printed materials and electronic documentation, and all component images, photographs, animations, video, audio, music, and text ("Elements"). By installing, copying, downloading, accessing or otherwise using the Product, You agree to be bound by the terms of this EULA. If You do not agree to the terms of this EULA, do not install or use the Product; instead, You should return it to Your place of purchase for a full refund. This EULA does not constitute a sale and does not authorize a sale of the Product or anything created thereby.

1. GRANT OF LICENSE

E-Book hereby grants You a non-exclusive, non-transferable license to use the Product on a single personal computer for Your personal use and only in conjunction with Your use of E-Book's FlipAlbum® 5 series of products ("FlipAlbum"). You may use the Product on a second personal computer provided that the Product is not used simultaneously on both. The Product cannot be used on any personal computer configured as a server.

Except as specified in Section 2, You may use the Elements to create albums using FlipAlbum and reproduce and distribute copies of the Elements as part of Your albums created using FlipAlbum. You may only use the Elements for personal noncommercial purposes. For example, You may include the Elements in albums intended for family members or friends.

Only a single copy may be made of the Product solely for backup or archival purposes. The same copyright and proprietary notices as appeared on the original Product must be contained on the archival copy. You may not remove the copyright and proprietary notices or labels from the original Product or from the archival copy.

2. RESTRICTION ON USE

YOU MAY NOT USE THE PRODUCT WITH ANY SOFTWARE OTHER THAN FLIPALBUM.

Except as expressly permitted in this Agreement, You may not make copies of the Product, including but not restricted to electronic or telecommunication transfers. You may not transfer, sell, license, assign, rent, lease or lend the Product to any third party.

The Product is licensed as a single product. Its component parts may not be separated for use on more than one computer.

You are not licensed to use the Elements except as expressly set forth in Section 1. Without limiting the generality of the foregoing, You may not: (i) sell, license or distribute copies of the Elements, for value, on a stand-alone basis or as part of any collection, print or electronic publication, product or service; (ii) use the Elements as trademarks or logos in conjunction with any products or services or to express or imply any endorsement or association with any product, service, entity, or activity; (iii) use the Elements in advertising or promotional materials, including packaging or print materials used for the promotional purposes of a business; (iv) use the Elements as part of a fee-based service provided to a third party; (v) create obscene, scandalous or infringing works, as defined by any applicable federal, state or local law at the time the work is created, using the Elements.

This EULA does not grant You any rights in connection with any trademarks or service marks of E-Book or its licensors.

3. COPYRIGHT

All title and intellectual property rights in and to the Product, including the Elements, are owned by E-Book or its licensors. The Product is protected by the copyright laws of the United States and international copyright treaties.

4. LIMITED WARRANTY; DISCLAIMERS

E-Book warrants that the media on which the Product is delivered (if any) will be substantially free from defects in materials and workmanship for ninety (90) days from the date You acquire the Product. Your exclusive remedy, and E-Book's entire liability, for any breach of this limited warranty shall be, at E-Book's option, either (i) the repair or replacement of the defective media; or (ii) a refund of the price, if any, which You paid for the Product. To obtain warranty remedies, You must return the defective media to E-Book with a copy of Your receipt or other valid proof of purchase. Any replacement Product will be warranted for the remainder of the original warranty period or thirty (30) days, whichever is longer. This limited warranty is void if the failure of the media has resulted from accident, abuse, misapplication or misuse of the Product.

E-BOOK MAKES NO OTHER WARRANTY, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT OF THIRD-PARTY RIGHTS. SOME JURISDICTIONS DO NOT ALLOW EXCLUSIONS OF AN IMPLIED WARRANTY, SO THIS DISCLAIMER MAY NOT APPLY TO YOU AND YOU MAY HAVE OTHER LEGAL RIGHTS THAT VARY BY JURISDICTION. NO E-BOOK AGENT OR EMPLOYEE IS AUTHORIZED TO MAKE ANY MODIFICATIONS, EXTENSIONS, OR ADDITIONS TO THIS WARRANTY.

E-BOOK DOES NOT WARRANT THAT YOUR REQUIREMENTS WILL BE MET WITH THE PRODUCT FEATURES OR THAT THE PRODUCT'S OPERATION WILL BE ERROR-FREE OR UNINTERRUPTED OR THAT DEFECTS WILL BE CORRECTED. E-BOOK SHALL ALWAYS RESERVE ITS RIGHTS AND DISCRETION TO CORRECT ANY DEFECTS AS IT SEES FIT AND TO MAKE AVAILABLE FURTHER RELEASES AS AND WHEN IT DEEMS NECESSARY.

5. LIMITATION OF LIABILITY

UNDER NO CIRCUMSTANCES AND UNDER NO LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL E-BOOK OR ITS SUPPLIERS OR RESELLERS BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES OF ANY CHARACTER, EVEN IF E-BOOK SHALL HAVE BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL E-BOOK'S TOTAL LIABILITY, WHETHER IN TORT, CONTRACT OR OTHERWISE, ARISING OUT OF OR RELATING TO THIS EULA OR THE PRODUCT EXCEED THE AMOUNT PAID BY YOU FOR THE PRODUCT. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THIS LIMITATION AND EXCLUSION MAY NOT APPLY TO YOU.

6. U.S. GOVERNMENT LICENSE RIGHTS

All copies of the Product provided to the U.S. Government pursuant to solicitations issued on or after December 1, 1995 are provided with the commercial license rights and restrictions described elsewhere herein. All copies of the Product provided to the U.S. Government pursuant to solicitations issued prior to December 1, 1995 are provided with RESTRICTED RIGHTS as provided for in FAR, 48 CFR 52.227-14 (JUNE 1987), or DFAR, 48 CFR 252.227-7013 (OCT 1988), as applicable.

7. EXPORT RESTRICTIONS

You acknowledge that the Product is subject to U.S. export restrictions. You agree to comply with all applicable international and national laws that apply to the Product, including the U.S. Export Administration Regulations, as well as end-user, end-use and destination restrictions issued by U.S. and other governments.

8. TERMINATION

Your license to use the Product is terminated if You violate this EULA. Upon termination, You must destroy all copies of the Product and related documentation.

9. GENERAL PROVISIONS

This EULA is the exclusive agreement between You and E-Book concerning the Product and supersedes any and all prior or contemporaneous oral or written agreements, representations, negotiations or other dealings between You and E-Book. This EULA will be governed by the laws of the State of California applicable to contracts executed and performed entirely in California by residents of that state. If any part of this EULA is found to be void, unenforceable or invalid, it shall not affect the other provisions of this EULA. This EULA can only be modified by a paper writing signed by both parties. Failure by E-Book to enforce any provision of this EULA will not be deemed a waiver of future enforcement of that or any other provision.