Appendix 2

This agreement governs the use of the Software and any updates to the Software, regardless of the delivery mechanism. The Software is a collective work. Subject to the following terms, Corporation of Balclutha, Inc. ("Last Bastion") grants to the user ("Client") a license to this collective work pursuant to the GNU General Public License v.2.

1. The Software. BastionLinux (the "Software") is a modular operating system consisting of hundreds of software components. The end user license agreement for each component is located in the component's source code. With the exception of certain image files identified in Section 2 below, the license terms for the components permit Client to copy, modify, and redistribute the component, in both source code and binary code forms. This agreement does not limit Client's rights under, or grant Client rights that supersede, the license terms of any particular component.

2. Intellectual Property Rights. The Software and each of its components, including the source code, documentation, appearance, structure and organization are owned by Last Bastion and others and are protected under copyright and other laws. Title to the Software and any component, or to any copy, modification, or merged portion shall remain with the aforementioned, subject to the applicable license.  If Client makes a commercial redistribution of the Software, unless a separate agreement with Last Bastion is executed or other permission granted, then Client must modify any files identified as "BASTION-LOGOS" and "anaconda-images" to remove all images containing the "Last Bastion" trademark. Merely deleting these files may corrupt the Software.

3. Limited Warranty. Except as specifically stated in this Paragraph 3 or a license for a particular component, to the maximum extent permitted under applicable law, the Software and the components are provided and licensed "as is" without warranty of any kind, expressed or implied, including the implied warranties of merchantability, non-infringement or fitness for a particular purpose. Last Bastion warrants that the media on which the Software is furnished will be free from defects in materials and manufacture under normal use for a period of 30 days from the date of delivery to Client. Last Bastion does not warrant that the functions contained in the Software will meet Client's requirements or that the operation of the Software will be entirely error free or appear precisely as described in the accompanying documentation. This warranty extends only to the party that purchases the Services pertaining to the Software from Last Bastion or a BastionLinux authorized distributor.

4. Limitation of Remedies and Liability. To the maximum extent permitted by applicable law, the remedies described below are accepted by Client as its only remedies. Last Bastion's entire liability, and Client's exclusive remedies, shall be: If the Software media is defective, Client may return it within 30 days of delivery along with a copy of Client's payment receipt and Last Bastion, at its option, will replace it or refund the money paid by Client for the Software. To the maximum extent permitted by applicable law, Last Bastion or any BastionLinux authorized dealer will not be liable to Client for any incidental or consequential damages, including lost profits or lost savings arising out of the use or inability to use the Software, even if Last Bastion or such dealer has been advised of the possibility of such damages. In no event shall Last Bastion's liability under this agreement exceed the amount that Client paid to Last Bastion under this Agreement during the twelve months preceding the action.

5. Third Party Programs. Last Bastion may distribute third party software programs with the Software that are not part of the Software. These third party programs are subject to their own license terms. The license terms either accompany the programs or can be viewed at http://linux.last-bastion.net/legal/licence/. If Client does not agree to abide by the applicable license terms for such programs, then Client may not install them. If Client wishes to install the programs on more than one system or transfer the programs to another party, then Client must contact the licensor of the programs.

6. General. If any provision of this agreement is held to be unenforceable, that shall not affect the enforceability of the remaining provisions. This agreement shall be governed by the laws of the British Virgin Islands, without regard to any conflict of laws provisions, except that the United Nations Convention on the International Sale of Goods shall not apply.