Thank you for contacting us!
You can find a similar statement under the license agreement of Kendo UI Complete which includes Kendo UI Web as well: (http://www.kendoui.com/get-kendo-ui/purchase/license-agreement/kendo-ui-complete-commercial.aspx
Pursuant to Section 18.104.22.168, You are not permitted under this Agreement to modify the source code for the Software. However, if You disregard this prohibition and develop any troubleshooting-related modifications of the Software independently, or if You contact Telerik for assistance with the Software and modify the source code for the Software jointly with Telerik, such modifications and all rights associated therewith will be the exclusive property of Telerik, and You agree to and hereby do assign all right, title and interest in and to such modifications to Telerik.
In other words as Alex mentioned in his previous email you can modify the source code and use it minified, internally in your Integrated Product but you cannot repackage, distribute or sell the modified version of Kendo UI. Please also note that support from Telerik will not be provided for any products that you have modified yourself.
I hope this helps.
Please let me know in case you have any further queries.
All the best,
the Telerik team
Join us on our journey to create the world's most complete HTML 5 UI Framework - download Kendo UI