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Read Naturally Software Edition
License Agreement

DEFINITIONS: The following definitions are applicable to this license agreement: "software" refers to the software program and all other material on the enclosed CD-ROM. "Customer" means the entity who purchased the software and who is entering into this license agreement.

1. SOFTWARE LICENSE GRANT: Customer is granted a non-exclusive, non-transferable license to use the software and documentation subject to the restrictions and terms set forth in this license agreement. Customers who have purchased the software for a single stand-alone computer may use the software on one computer. Customers who have purchased software under the terms of a school license may use the software with an unlimited number of students within a school. A school is defined as an entity organized for the purpose of education. The entity will exist on a single contiguous area of land. The school will be organized as an entity separate from other schools with its own mailing address and administration. The school can run the application on one or more servers and the workstations connected to them by means of a LAN (local area network), not a WAN (wide-area network), which are typically used on a district level. The school can simultaneously access the application from all workstations networked to the LAN server(s).

2. RESTRICTIONS: The only right granted to the customer is the right to use the software and accompanying documentation in accordance with this license agreement. All rights not expressly granted to the customer in this license agreement are specifically reserved to Read Naturally. Customer does not receive or acquire any right, title, or interest to the software, or to any applicable patents, trademarks, copyrights, or trade-secrets. Customer may not remove or alter any proprietary notices, labels, or trademarks on the software or accompanying documentation. Customer may not modify, translate, copy, reproduce, reverse engineer, dissemble, decompile, or otherwise derive source code from the software or accompanying documentation, or use it as a basis for the preparation of other software programs or derivative works, or use it in any manner that infringes the intellectual property or other rights of Read Naturally or another party. The software, the media on which it is delivered to the customer, and
accompanying documentation (i.e., user guides, manuals, online help systems, etc.) may not be duplicated or transmitted electronically, including over the internet, rented, loaned, leased, sold, distributed, made available, directly or indirectly, for use by any other person or entity not covered by this license agreement, used by third parties in a service bureau or otherwise transferred, transmitted or used without authorization under this license agreement.

3. TERMINATION: Any failure to comply with the terms and conditions of this license agreement shall result in automatic termination of this license agreement. Upon termination of this license agreement for any reason, Customer must destroy all copies of the software and accompanying documentation.

4. COMMUNICATION OF LICENSE AGREEMENT: Customer agrees to communicate the terms and restrictions contained in this license agreement to all persons who have access to the software or accompanying documentation.

5. UNAUTHORIZED USE AND COMPLIANCE: Customer shall take reasonable efforts to prevent use of software by any person or entity other than customer or student of customer. Customer shall use all reasonable efforts to see that all persons who have access to the software or accompanying documentation abide by the terms and conditions of this license agreement. Customer agrees to notify Read Naturally in writing of any unauthorized use.

6. LIMITED WARRANTY: Read Naturally warrants that the software will substantially perform in the manner described in the software documentation for a period of ninety (90) days after the customer takes receipt of software. The warranty shall be void if any defect in the software is a result of accident, abuse, or misapplication. Except as specifically provided herein, there are no other warranties, express or implied, including but not limited to any implied warranty of merchantability or any implied warranty of fitness for a particular purpose.

7. CUSTOMER RESPONSIBILITY FOR THE SOFTWARE AND COMPONENTS: Customer is solely responsible for selection of the software to achieve customer's intended results or for particular applications. Read Naturally is not responsible for lost, stolen, or damaged software while it is in the possession of the customer.

8. LIMITATION OF LIABILITY: In no event shall Read Naturally be liable to a customer for any special, indirect, incidental, consequential, or punitive damages, including but not limited to any lost profits, lost time, lost savings, lost data, lost fees, or expenses of any kind arising from installation or use of the software or accompanying documentation in any manner, however caused and on any theory of liability. In any event, Read Naturally's liability relating to the software shall be limited to the greater of 100 U.S. dollars or the money paid for the software. These limitations will apply even if Read Naturally has been advised of such possible damages.

9. SEVERABILITY: If any provision of this license agreement is declared by a court of competent jurisdiction to be invalid for any reason, such invalidity shall not affect the remaining provisions.

10. ENTIRE LICENSE AGREEMENT: This license agreement constitutes the entire agreement between parties pertaining to the subject matter hereof and supercedes all prior representations, warranties, conditions, agreements, and understandings, whether oral or written, express or implied relating to this
license agreement. No supplement, modification or waiver of this license agreement shall be effective unless it is provided or approved by Read Naturally in writing.

11. MISCELLANEOUS: This license agreement shall be governed by the laws of the United States and the State of Minnesota.