End User License Agreement

Effective July 3, 2026 · AI Founder OS LLC

Effective date: July 3, 2026

Licensor: AI Founder OS LLC, a California limited liability company ("Company," "we," "us")

Software: Sottocut, the macOS application, including the bundled local bridge, dashboard, command-line components, documentation, and any updates we provide (collectively, the "Software")

PLEASE READ THIS AGREEMENT CAREFULLY. By clicking "I Agree," installing, or using the Software, you ("you," "Licensee") agree to be bound by this End User License Agreement ("Agreement"). If you do not agree, do not install or use the Software.

KEY POINTS (summary only — the full terms below control): the Software runs locally on your machine; it modifies DaVinci Resolve projects at your direction and you are responsible for maintaining backups; you supply your own third-party AI API key and are responsible for its costs; the Software is provided "AS IS" and our liability is capped at what you paid.

1. License Grant

1.1 Subject to your compliance with this Agreement and payment of applicable fees, Company grants you a limited, personal, non-exclusive, non-transferable, non-sublicensable, revocable license to install and use the Software on macOS devices that you own or control, for your internal business or personal purposes.

1.2 Seats. Unless your order states otherwise, one license permits use by one (1) individual on up to two (2) devices that individual owns or controls.

1.3 Trial. If you use the Software under a free trial, your license is limited to the trial period (fourteen (14) days from first launch) and terminates automatically at its end unless you purchase a license. Trial use is for evaluation only.

1.4 The Software is licensed, not sold. Company and its licensors retain all right, title, and interest in and to the Software, including all intellectual property rights. No rights are granted except as expressly stated here.

2. Restrictions

You will not, and will not permit any third party to:

(a) copy, distribute, sell, sublicense, rent, lease, lend, or otherwise transfer the Software or your license key to any third party;

(b) reverse engineer, decompile, disassemble, or otherwise attempt to derive the source code of the Software, except to the extent such restriction is prohibited by applicable law;

(c) modify, adapt, or create derivative works of the Software;

(d) remove, alter, or obscure any proprietary notices;

(e) use the Software to develop a competing product;

(f) circumvent license validation, trial limitations, or update signing;

(g) use the Software in violation of applicable law or third-party rights.

3. Your Content and Projects; Backups

3.1 Your content is yours. You retain all rights to your video footage, audio, transcripts, project files, and other materials you process with the Software ("Your Content"). We claim no ownership of Your Content. The Software operates locally; we do not receive, store, or access Your Content.

3.2 The Software modifies your projects. Core functions of the Software read from and write to DaVinci Resolve projects, timelines, media pools, and files on your system at your direction, including placing markers, creating timelines, generating captions, exporting stills, and rendering files. While the Software is designed with confirmation steps and verification for write operations, software defects, environmental factors, or interactions with DaVinci Resolve may cause unintended changes, data corruption, or data loss.

3.3 YOU ARE SOLELY RESPONSIBLE FOR MAINTAINING CURRENT BACKUPS of all projects, media, and data before and while using the Software. You acknowledge that professional media (including client footage of unrepeatable events) may be irreplaceable, and you agree that your sole protection against loss of such materials is your own backup practice.

4. Third-Party AI Services; Your API Key

4.1 Bring your own key. AI features of the Software (including the "Co-Editor") operate using an API key you obtain from a third-party AI provider (currently Anthropic, PBC). Your use of that provider's services is governed solely by your agreement with that provider, including its terms of service, usage policies, and pricing.

4.2 Your costs. All API usage fees incurred through your key are your responsibility, billed to you by the provider. The Software transmits requests (which may include text, transcripts, and images you supply) directly from your machine to the provider using your key. Company is not a party to those transmissions, does not proxy them, and receives no portion of those fees.

4.3 Key storage. Your API key is stored locally on your device. You are responsible for safeguarding your key and your device.

4.4 Provider changes. AI providers may change models, pricing, availability, or policies at any time. Company does not warrant continued compatibility with, or availability of, any third-party AI service.

4.5 AI output. AI-generated suggestions, scores, captions, and edits are probabilistic and may be inaccurate. You are responsible for reviewing all AI-assisted output before relying on it or delivering it to any client.

5. Third-Party Software; DaVinci Resolve

5.1 The Software interoperates with DaVinci Resolve, a product of Blackmagic Design Pty Ltd. Company is not affiliated with, endorsed by, or sponsored by Blackmagic Design. DaVinci Resolve is licensed to you separately by Blackmagic Design, and your use of it is governed by Blackmagic Design's terms. Compatibility with any particular version of DaVinci Resolve is not guaranteed.

5.2 The Software includes third-party and open-source components (including a bundled Python runtime, FFmpeg, and machine-learning components) licensed under their own terms. Applicable notices and license texts are provided in the Software's "Third-Party Notices" file, which is incorporated by reference. To the extent any open-source license grants you rights that conflict with this Agreement, the open-source license controls for that component only.

6. Updates; No Telemetry

6.1 The Software may check a Company-operated endpoint for signed updates and, per your settings, download and install them. Updates may modify or remove features. This Agreement governs all updates unless a replacement agreement is presented.

6.2 Local-first. The Software does not transmit Your Content to Company. The Software sends no analytics or telemetry to Company. Update checks necessarily transmit basic request metadata (such as app version and IP address) to the update server.

7. Fees; Refunds

7.1 Fees, license tiers, and any subscription terms are stated at purchase. Except as required by law or as expressly stated in our refund policy at https://sottocut.com/refunds, fees are non-refundable; the free trial exists so you can evaluate the Software before purchase.

7.2 If your purchase is a subscription, it renews automatically until cancelled; you may cancel at any time, effective at the end of the current billing term. Price changes take effect at the next renewal, with prior notice.

8. Term and Termination

8.1 This Agreement is effective until terminated. It terminates automatically if you materially breach it. You may terminate it at any time by ceasing all use and deleting the Software.

8.2 Upon termination, your license ends and you must delete all copies of the Software. Sections 3–5 and 9–14 survive termination.

9. Disclaimer of Warranties

THE SOFTWARE IS PROVIDED "AS IS" AND "AS AVAILABLE," WITH ALL FAULTS AND WITHOUT WARRANTY OF ANY KIND. TO THE MAXIMUM EXTENT PERMITTED BY LAW, COMPANY DISCLAIMS ALL WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. COMPANY DOES NOT WARRANT THAT THE SOFTWARE WILL BE ERROR-FREE OR UNINTERRUPTED, THAT DEFECTS WILL BE CORRECTED, THAT AI OUTPUT WILL BE ACCURATE, OR THAT THE SOFTWARE WILL BE COMPATIBLE WITH ANY VERSION OF DAVINCI RESOLVE, MACOS, OR ANY THIRD-PARTY AI SERVICE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO SOME OF THE ABOVE MAY NOT APPLY TO YOU.

10. Limitation of Liability

10.1 TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL COMPANY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR FOR ANY LOSS OF DATA, LOSS OF CONTENT (INCLUDING CLIENT FOOTAGE OR PROJECT FILES), LOSS OF PROFITS, LOSS OF BUSINESS, OR COST OF SUBSTITUTE SERVICES, ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.2 COMPANY'S TOTAL AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE SOFTWARE WILL NOT EXCEED THE AMOUNTS YOU PAID TO COMPANY FOR THE SOFTWARE IN THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY (OR, IF YOU PAID NOTHING, ONE HUNDRED U.S. DOLLARS (US$100)).

10.3 The exclusions and limitations in this Section do not apply to liability that cannot be excluded or limited under applicable law (including, where applicable, liability for gross negligence, willful misconduct, death, or personal injury). Some jurisdictions do not allow certain limitations, so some of the above may not apply to you. The parties acknowledge that the fees reflect this allocation of risk and that Company would not offer the Software at these fees without these limitations.

11. Indemnification

You will defend, indemnify, and hold harmless Company from and against claims, damages, and expenses (including reasonable attorneys' fees) arising from (a) Your Content; (b) your breach of this Agreement; or (c) your violation of law or third-party rights (including your AI provider's terms) in connection with your use of the Software.

12. Export and Sanctions Compliance

You represent that you are not located in an embargoed jurisdiction or on any restricted-party list, and you agree to comply with applicable export control and sanctions laws in your use of the Software.

13. Governing Law; Disputes

13.1 This Agreement is governed by the laws of the State of California, without regard to conflict-of-laws rules. The United Nations Convention on Contracts for the International Sale of Goods does not apply.

13.2 The state and federal courts located in San Diego County, California will have exclusive jurisdiction over any dispute arising out of or relating to this Agreement, and the parties consent to personal jurisdiction and venue there.

14. General

14.1 Entire Agreement. This Agreement (together with your order and any policies referenced here) is the entire agreement regarding the Software and supersedes prior discussions.

14.2 Severability. If any provision is held unenforceable, it will be modified to the minimum extent necessary, and the remainder will remain in effect.

14.3 No Waiver. Failure to enforce a provision is not a waiver.

14.4 Assignment. You may not assign this Agreement without Company's consent; Company may assign it in connection with a merger, acquisition, or sale of assets.

14.5 Notices; Contact. Questions and notices: paul@aifounderos.io, AI Founder OS LLC, 9355 Vervain St, San Diego, CA 92129.

© 2026 AI Founder OS LLC. All rights reserved. "Sottocut" is a trademark of AI Founder OS LLC. DaVinci Resolve is a trademark of Blackmagic Design Pty Ltd. Anthropic and Claude are trademarks of Anthropic, PBC. All other marks are the property of their respective owners.