Simply makes it so that dying doesn't increase how hollow you are in the original non-Scholar version of Dark Souls II.
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This mod won't cure your hollowing if your character is already hollow. It also doesn't prevent the curse status from making you hollow. If you are hollow somehow, it also doesn't change how that works. You will still be green and get a stacking max health debuff from your level of hollowing. The only thing this changes is that dying won't cause that to happen.
As far as I know there is no mod engine for the non-Scholar version of DS2, so just dump the included file right into the game directory. As in, the directory named "Game". Maybe back the original enc_regulation.bnd.dcx up first by renaming it in case you want to uninstall this without verifying all your files on Steam.
Playing online with this is probably a bad idea. I'm not the boss of you, but I wouldn't recommend trying it.