Malfunction Labs
MALFUNCTION LABS™

Beta Tester Non-Disclosure Agreement

Between Malfunction Labs™ ("ML") and the approved Tester Program participant ("Tester")
Version v1.0 — 2026-09-15

This Agreement works together with the separate Tester Rules & Authorization. It does not stand alone.

1. Purpose

ML may provide limited access to non-public games, builds, features, assets, documentation, testing instructions, discussions, systems, and related information solely for authorized testing.

ACCESS ≠ AUTHORITY. AUTHORIZATION ≠ UNLIMITED SCOPE.

2. Confidential Information

Confidential Information includes non-public unreleased software/builds; features and mechanics; screenshots/recordings/audio/video/art/models/textures; bugs, vulnerabilities and reproduction details; roadmaps; internal communications; test instructions/data; credentials; source-adjacent technical information; ML methods/processes; client information; and other material a reasonable tester would understand is non-public and confidential.

It excludes information Tester can demonstrate was lawfully public without breach, became public without Tester's breach, was lawfully known beforehand, was independently developed without the Confidential Information, or was lawfully obtained from an authorized third party without restriction.

3. Testing-Only Use / No Leaks; Liquidated Damages

Tester may use Confidential Information only for ML-authorized testing. Unless expressly authorized, Tester may not distribute builds, share credentials, allow another person to use restricted access, publicly demonstrate beta material, or publish screenshots, recordings, streams, posts, benchmarks, public bug reports, mirrors, or other confidential material.

Tester acknowledges that any unauthorized disclosure or leak of Confidential Information will cause irreparable harm to ML, the exact financial impact of which is difficult to measure. Consequently, Tester agrees that for each distinct breach of this Section (e.g., each unauthorized public post, video stream, or asset leak), Tester shall pay to ML the sum of $1,000 USD as liquidated damages and not as a penalty. This remedy is non-exclusive, and ML retains the right to seek immediate injunctive relief, account termination, and any other remedies available under law or equity.

4. Personal Tester Account

Tester will not share, lend, or permit another person to test through the approved account and will promptly report suspected credential compromise.

ONE APPROVED PERSON = ONE TESTER ACCOUNT.

5. Testing Boundary

Ordinary QA permission is not security-testing permission. Tester may not probe unrelated website areas, admin systems, accounts, APIs, servers, networks, databases, clients, third parties, or infrastructure. Security testing requires separate express authorization.

6. Private Reporting

Bugs, defects and suspected vulnerabilities return privately through ML's designated reporting channel.

7. Ownership

Seeing, testing, possessing, hosting, or accessing ML, client, or third-party material transfers no ownership to Tester.

8. Tester Feedback

Tester may submit bug reports, reproduction steps, logs, screenshots, test cases, suggestions, designs, and other QA feedback ("Feedback"). Tester grants ML a worldwide, perpetual, irrevocable, royalty-free, transferable, sublicensable license to use, reproduce, modify, adapt, publish, display, distribute, create derivative works from, and otherwise use Feedback for ML projects, products, development, testing, documentation, promotion, and related business purposes. This does not transfer unrelated pre-existing property.

9. Custom Reward Material

If Tester voluntarily supplies an approved name, likeness/reference, NPC concept, quest concept, model-rocket design/name, cosmetic concept, or similar material for a Tester reward ("Reward Material"), Tester grants ML a worldwide, perpetual, irrevocable, royalty-free, transferable, sublicensable license to use, reproduce, adapt, modify, stylize, combine, display, distribute, market, and incorporate it into ML games, software, updates, ports, derivative works, promotion, and related content. Tester represents they have the right to provide it. ML may adapt it for technical, artistic, gameplay, rating, safety, platform, or production requirements. ML is not required to publish or permanently retain a particular implementation.

10. Tester Program Rewards

Participation rewards are governed by the separate Tester Rules & Authorization. They may include a game copy, tester credit, cosmetics, NPC representation/quests, or tester-designed game content. Unless separately agreed in writing, this NDA does not characterize those rewards as wages, salary, royalties, revenue share, ownership in ML, or employment. Applicable law controls legal classification.

11. Pre-Release Software

Tester understands beta software may be incomplete, unstable, changed, reset, withdrawn, crash, or corrupt test data. Do not use irreplaceable data or an inappropriate production environment unless ML expressly authorizes it.

12. Access Revocation / Closeout

ML may suspend or revoke Tester access. At closeout Tester stops using restricted credentials/builds and, when reasonably requested, deletes local restricted copies/screenshots/recordings and returns designated physical material. Confidentiality duties that survive termination continue.

13. Duration

The confidentiality obligations under this Agreement regarding non-trade-secret information (such as general feedback, bugs, and unreleased visual elements) shall strictly expire on December 31, 2027. Notwithstanding the foregoing, any information that legally qualifies as a trade secret under the Utah Uniform Trade Secrets Act (including but not limited to unreleased source code, proprietary algorithms, and core server infrastructure data) shall remain protected indefinitely for as long as it retains its legal status as a trade secret.

14. Lawful Reporting / DTSA Notice

Nothing here prohibits legally protected reporting of suspected unlawful conduct. 18 U.S.C. §1833(b) provides immunity in specified circumstances for certain confidential trade-secret disclosures to government officials or attorneys for reporting/investigating suspected legal violations and for certain sealed court filings. Applicable law controls. This provision does not authorize otherwise unlawful access.

15. No Noncompete

Participation does not prohibit Tester from working or testing elsewhere. Tester must still protect ML Confidential Information.

16. Electronic Acceptance

ML intends electronic acceptance. The system should retain agreement version, associated tester/account, acceptance date/time, and an accessible copy.

17. Age and Legal Capacity

Tester must be at least 18 years of age and possess the full legal capacity to enter into a binding contract to participate. If Tester is under 18 years of age, they are strictly prohibited from participating in the Tester Program or accepting this Agreement, unless a parent or legal guardian has explicitly executed a separate, ML-approved parental consent and assumption of liability agreement.

18. Governing Law / Forum

This Agreement, and all claims or disputes arising out of or relating to it, shall be governed by and construed in accordance with the laws of the State of Utah, without regard to its conflict of laws principles. The parties explicitly agree that the exclusive jurisdiction and venue for any legal action or proceeding arising under this Agreement shall be the state or federal courts located in Salt Lake County, Utah, and both parties hereby submit to the personal jurisdiction of such courts.

19. Relationship to Tester Rules

This NDA governs confidentiality and related rights. Tester Rules & Authorization governs project/build access, account restrictions, reporting, recordings, rewards, and participation mechanics. Narrower project authorization controls testing scope.

Agreement acceptance is recorded through your assigned tester account.

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ML.LEGAL-NDA,rev2.v1.0