IMPORTANT: PLEASE CAREFULLY READ THIS END USER LICENSE AGREEMENT (THE "AGREEMENT") BETWEEN YOU, THE PURCHASER AND END USER (“YOU OR YOUR”), AND PAINTED HEART STUDIO INC. ("PHS," "WE," "US," OR "OUR") REGARDING YOUR USE OF THE ANN-E SOFTWARE APPLICATION (THE “PHS PRODUCT”). BY USING PHS PRODUCT, YOU AGREE THAT YOU HAVE READ THIS ENTIRE AGREEMENT AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS AGREEMENT. IF YOU DO NOT AGREE TO BE BOUND BY ALL OF THE TERMS AND CONDITIONS OF THIS AGREEMENT YOU MAY NOT USE PHS PRODUCT. You acknowledge and agree that by clicking on the ACCEPT button or similar buttons or links as may be designated by PHS to show Your approval YOU AGREE TO BE BOUND BY ALL OF THE TERMS AND CONDITIONS OF THIS AGREEMENT

WE MAY MODIFY THIS AGREEMENT AT ANY TIME, AND SUCH MODIFICATIONS SHALL BE EFFECTIVE IMMEDIATELY UPON EITHER POSTING OF THE MODIFIED AGREEMENT OR NOTIFYING YOU. YOU AGREE TO REVIEW THIS AGREEMENT PERIODICALLY TO BE AWARE OF SUCH MODIFICATIONS AND YOUR CONTINUED USE OF PHS PRODUCT SHALL INDICATE YOUR ACCEPTANCE OF THE MODIFIED AGREEMENT.

1. Use of PHS Product. In addition to PHS's terms and conditions set forth below, You agree and acknowledge that Your use of the PHS Product may be subject to additional terms and conditions of the device manufacturer, provider or carrier for the Mobile Device on which You download, access or use the PHS Product, which are not governed by this Agreement. In addition, You may be subject to additional guidelines, terms, or rules ("Additional Terms"), which may be posted from time to time and are hereby incorporated by reference into this Agreement. This Agreement shall govern any corrections, bug fixes, enhancements, updates or other modifications to the PHS Product (collectively, "Upgrades") provided by PHS, except to the extent such Upgrades are accompanied by a separate license in which case the terms of such license will govern.

2. License Grant. Subject to the terms and conditions of this Agreement, PHS hereby grants to You a terminable, nonexclusive, nontransferable, nonsublicenseable license to use, perform, and display the PHS Product on one (1) iPhone™ or iPod Touch™ that You own or control (your "Mobile Device"), solely for your personal, non-commercial use in accordance this Agreement. This license does not allow You to use, perform, or display PHS Product on any iPhone or iPod Touch that You do not own or control, and You may not distribute or make PHS Product available over a network. You may make one copy of the PHS Software on your computer in machine-readable form for backup purposes only, provided that the backup copy must include all copyright or other notices contained in the original, and you may restore the PHS Software on any such Mobile Device that you own or control, provided that you may not use the PHS Software on more than one Mobile Device.

3. License Restrictions. You may not (a) reproduce, distribute, sublicense, sell, lease, or otherwise transfer the PHS Product to any third parties; (b) modify, alter, improve, "hack," or create derivative works of PHS Product; or (c) reverse-engineer, decompile, disassemble, reverse-assemble, or otherwise attempt to derive the source code of PHS Product.

4. Prohibited Activities. You agree not to use the PHS Product in any manner that violates this Agreement. Although PHS cannot monitor the conduct of its users outside of PHS Product, it is also a violation of this Agreement to use any information obtained from or through the PHS Product in order to harass, abuse, or harm another person, or in order to contact, advertise to, solicit, or sell to any person without their prior explicit consent. Violations of any of the above may be investigated by PHS and, where appropriate, PHS may either institute legal action, or cooperate with law enforcement authorities in bringing legal proceedings, against users who violate this Agreement. You understand and acknowledge that we have a reputation to protect, and that we want to provide a good and positive service to users of the PHS Product, so any violation of this agreement by You may cause us substantial harm. Accordingly, You agree that we may enforce this Agreement to the fullest extent permitted by law.

5. Regarding Your Mobile Device. By accessing and using the PHS Product with your Mobile Device You acknowledge and agree that You may receive certain communications from PHS Product users (such as text messages, mobile emails, telephonic or other electronic communications (collectively "Mobile Communications"). Please note that by accessing and using the PHS Product via your Mobile Device, or by using certain mobile features, such as receiving or sending Mobile Communications via your Mobile Device, You may incur fees from the provider or carrier of the mobile services that You use and You are solely responsible for the payment of such fees. If You choose to share your profile or user information or information about your actual location (including location-related information provided by your carrier, provider or applications), You acknowledge and agree that (a) such information may be made available to other PHS Product users and (b) PHS does merely make this information available upon your request and is not responsible for the correctness of such information and any use of such information by third parties, including other users.

6. Ownership. The PHS Product application is licensed to You, not sold. PHS and its licensors own and retain all proprietary rights in the PHS Product (including all Upgrades thereto). The PHS Product contains the copyrighted material, trademarks, and other proprietary information ("Intellectual Property") of PHS, and its licensors, including other PHS Product users. Except for Intellectual Property which is in the public domain or for which You have been given written permission, You may not copy, modify, publish, transmit, distribute, perform, display, or sell any such Intellectual Property and the provision of such Intellectual Property to You through PHS Product does not transfer to You or any third party any rights, title or interest in or to such Intellectual Property, including, without limitation, any intellectual property rights in any Content (as defined below) and material included therein. There are no implied licenses under this Agreement, and all rights not expressly granted are hereby reserved. You agree that any questions, comments, suggestions or the like other than personally identifiable information (collectively, the "Feedback") sent to PHS, shall become the sole property of PHS. You further agree that PHS shall be free to use and exploit in any manner any ideas, concepts, know-how or techniques contained in such Feedback for any purpose without your or a third party's consent, and without payment of any consideration to you or a third party, you hereby assign all rights, title and interest in such Feedback to PHS.

7. Content. You understand and agree that You are solely responsible for content, communication, information, material, messages, profiles and the like (collectively, "Content") that You post on or through the PHS Product, or transmit to other users or third parties. It is your responsibility to to safeguard your PIN and not to share it with any other person because it protects your anonymity as well as the PHS Product users who have shared their Content with You. In addition, You will not post any illegal or prohibited Content and will not infringe, misappropriate, violate or contravene any third party rights. PHS reserves the right (but is not obligated) to investigate and to take appropriate legal action in its sole discretion against anyone who violates this Agreement, including without limitation, terminating the license for the PHS Product of such violators.

8. Third Party Content. Content from other users, and other third parties may be made available to You through PHS Product. Because we do not control such Content, (a) You agree that we are not responsible for any such Content and (b) we make no guarantees about the accuracy, currency, suitability, or quality of the information in such Content, and we assume no responsibility for unintended, objectionable, inaccurate, misleading, or unlawful Content made available by other users, and other third parties.

9. User Disputes. Your interactions with other users in connection with PHS Product, are solely between You and the other users. You agree that PHS will not be responsible for any loss or damage incurred as the result of any such dealings or with respect to any other user's use or disclosure of your personally identifiable information. If there is a dispute between You and any third party (including, without limitation, any user), PHS is under no obligation to become involved; however, we reserve the right, but have no obligation, to monitor disputes between You and other users.

10. Release. Without limiting Sections 14 or 15 below, and to the extent permitted under applicable laws, You hereby release PHS from any liability related to: (a) any incorrect or inaccurate Content posted on or through PHS Product, whether caused by any user of PHS Product, or by any of the equipment or programming associated with or utilized in PHS Product ; (b) the conduct, whether online or offline, of any user of PHS Product; (c) any problems or technical malfunction of any telephone network or lines, computer online systems, servers or providers, computer equipment, software, failure of email or Content players on account of technical problems or traffic congestion on the Internet or at any sites, or combination thereof, including injury or damage to user's or to any other person's computer or other mobile device related to or resulting from participating or downloading materials in connection with PHS Product; (d) any loss or damage caused by Content posted on or through PHS Product or transmitted by and to users, or any interactions between users of PHS Product, whether online or offline; and (e) any error, omission, interruption, deletion, defect, delay in operation or transmission, communications line failure, theft or destruction or unauthorized access to, or alteration of, PHS Product user communications.

11. NO WARRANTIES. THE PHS PRODUCT IS PROVIDED BY PHS ON AN "AS IS" BASIS. PHS HEREBY DISCLAIMS ALL REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, RELATING TO THE PHS PRODUCT (INCLUDING ANY INFORMATION, CONTENT, MATERIALS OR PRODUCTS THAT YOU MAY ACCESS THROUGH PHS PRODUCT), INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUIET ENJOYMENT, NON-INFRINGEMENT OF THIRD PARTY RIGHTS, ACCURACY OF INFORMATIONAL CONTENT, AND ANY WARRANTIES ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE. WITHOUT LIMITING THE FOREGOING, YOU ACKNOWLEDGE THAT PHS DOES NOT WARRANT OR REPRESENT THAT THE PHS PRODUCT WILL MEET YOUR REQUIREMENTS, THAT PHS PRODUCT WILL BE TIMELY, SECURE, UNINTERRUPTED, OR ERROR-FREE, THAT DEFECTS IN THE PHS PRODUCT WILL BE CORRECTED, THAT ANY CONTENT OR INFORMATION CONTAINED IN THE PHS PRODUCT OR ACCESSED THROUGH YOUR USE OF PHS PRODUCT WILL BE ACCURATE, COMPLETE, RELIABLE, OR ERROR-FREE, THAT THE PHS PRODUCT OR ANY MATERIALS AVAILABLE FOR DOWNLOAD FROM THE PHS PRODUCT WILL BE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS, OR THAT THE PHS PRODUCT WILL BE FREE FROM UNAUTHORIZED ACCESS (INCLUDING THIRD PARTY HACKERS OR DENIAL OF SERVICE ATTACKS).

12. LIMITATION OF LIABILITY. IN NO EVENT SHALL PHS BE LIABLE TO YOU FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE, OR OTHER DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF INFORMATION OR DATA, OR OTHER PECUNIARY LOSS) RESULTING FROM YOUR ACCESS TO, OR USE OR INABILITY TO USE THE PHS PRODUCT (INCLUDING AS A RESULT OF AN OUTAGE OF ANY THIRD-PARTY SERVICE OR THE WIRELESS NETWORK PROVIDED BY YOUR WIRELESS NETWORK OPERATOR), OR WITH RESPECT TO THE INFORMATION, SERVICES, OR CONTENT CONTAINED ON OR OTHERWISE ACCESSED THROUGH THE PHS PRODUCT. IN NO EVENT WILL PHS BE LIABLE TO YOU IN CONNECTION WITH THE PHS PRODUCT FOR ANY DAMAGES IN EXCESS OF FIVE CANADIAN DOLLARS (CDN $5.00).

13. Indemnity. You agree to indemnify and hold PHS, its subsidiaries, affiliates, officers, agents, and other partners and employees, harmless from any loss, liability, claim, or demand, including reasonable attorney's fees, made by any third party due to or arising out of your use of the PHS Product in violation of this Agreement and/or arising from a breach of this Agreement and/or any breach of your representations and warranties set forth above.

14. Termination. You may terminate the license for the PHS Product at any time by removing PHS Product in its entirety from your Mobile Device. You agree that PHS, in its sole discretion, may immediately terminate Your use of and access to the PHS Product to You) at any time, for any reason, in its sole discretion. You agree that any termination of Your use of and access to the PHS Product may be effected without prior notice, and acknowledge and agree that, upon termination, PHS may immediately deactivate or disable Your use of or access to the PHS Product and delete all related information, Content, emails, files and other data related to such use or access and may bar any further access to such files or the PHS Product. Further, You agree that PHS shall not be liable to You for any termination of Your use of or access to the PHS Product or any deletion of Content or information hereunder. Upon termination, You agree to remove PHS Product in its entirety from your Mobile Device. Even after this Agreement is terminated, the following provisions of this Agreement will remain in effect: Sections 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 and 16.

15. Applicable Law and Jurisdiction. You agree that this Agreement and all matters relating to the PHS Product will be governed by the laws of the Province of British Columbia, Canada, without giving effect to any principles of conflicts of laws that would require the application of the laws of a different jurisdiction. You also consent to the exclusive jurisdiction and venue of the Supreme Court of British Columbia, Canada for all disputes arising out of or relating to the PHS Product.

16. General Provisions. You are responsible for compliance with applicable local laws. This Agreement is personal to You, and You may not transfer, assign or delegate this Agreement to anyone without the express written permission of PHS. Any attempt by You to assign, transfer or delegate this Agreement without the express written permission of PHS shall be null and void. You acknowledge that PHS will have the right hereunder to so seek an injunction, if necessary to stop or prevent a breach of Your obligations hereunder. The paragraph headings in this Agreement, shown in boldface type, are included only to help make the agreement easier to read and have no binding effect. Any delay or failure by us to exercise or enforce any right or provision of this Agreement will not constitute a waiver of such right or provision. No waiver by us shall have effect unless such waiver is set forth in writing, signed by us; nor shall any such waiver of any breach or default constitute a waiver of any subsequent breach or default. This Agreement constitutes the complete and exclusive agreement between You and PHS with respect to the subject matter hereof, and supersedes all prior oral or written understandings, communications or agreements. If for any reason a court of competent jurisdiction finds any provision of this Agreement, or portion thereof, to be unenforceable, that provision of the Agreement will be enforced to the maximum extent permissible so as to effect the intent of the parties, and the remainder of this Agreement will continue in full force and effect.