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Unity Smart terrain material not being applied

Vuforia SDK Version: 4.2 - Description with steps to reproduce:

When running the penguin app on my computer to test smart terrain the ground ice material is not fully used. Instead it uses one solid color from the texture, most likely one of the corners. So instead of seeing ice appear I see a blue transparent plane. This happens on both the computer when running from Unity as well as a deployed application.

- Development OS (Mac OS X, Windows, Linux): Windows - Mobile OS and Version: iOS/ Android - Mobile Device Manufacturer and Model name: Apple iPhone/ Google Android - Do the Vuforia Sample Applications show the same behavior?: Yes. The problem described happens in the penguin example app