These rules (the "Rules") govern your participation in the Karelia Software direct referral discount program (the "Program"). Participation constitutes your full and unconditional agreement to and acceptance of the Rules, so it is important that you read and understand them.

1. PROGRAM PERIOD: The Program will begin at 12:00am PST on Monday, 9 January 2006 and will end at 11:59pm PST on Tuesday, 31 January 2006 or at 11:59pm PST on the first day Karelia offers copies of Sandvox for sale, whichever is later. The Program is administered by Karelia Software, P.O. Box 7910, Beverly Hills, CA 90212.

2. WHO IS ELIGIBLE?: In order to participate in the Program you must be a natural person older than 15 years of age as of the date you submit your email address. Members and independent contractors of Karelia, as well as their agents, immediate family members, and persons living in the same household are not eligible to participate in the Program. One referral discount per household.

3. HOW TO ENTER: You become eligible for the referral discount when either (A) someone you refer enters your email address in the "How did you hear about us?" field provided on the Karelia Software home page (http://www.karelia.com/) or (B) someone you refer uses the custom referral URL supplied by Karelia to you and joins the email list. When those you refer sign up for Karelia email alerts using one of the two methods above, you will receive credit for that referral. Self-referrals will not be counted toward the Program, nor will incomplete or invalid email addresses, or multiple email addresses for a single individual. In order to be credited for the referral discount, the email address used in the "How did you hear about us?" field must match the email address that you used to join the list. Karelia will not alter or attempt to match similar but not exact email addresses, nor can your email address be changed once it has been entered for the purposes of the Program.

4. FORMAT OF ENTRY: Only additions to the Karelia email list made via the Karelia web site will be counted as eligible for inclusion in the Program. Other forms of submission will not qualify for the Program.

5. DISCOUNT DETAILS: For each valid, confirmed natural person referred by you whose information on the Karelia email list includes your email address as the source of the referral you will receive a credit of one dollar (US$1.00) off the retail price of Sandvox, up to a maximum discount of fifty percent (50%). The referral discount may be used in conjunction with the "early adopter" discount OR the "Watson User Group" discount OR or the "MacWorld Expo" discount with the understanding that the total discount granted will not exceed fifty percent (50%). The amount of the referral discount will be calculated by the number of valid referrals subscribed to the Karelia email list at the close of the Program.

6. GENERAL TERMS AND CONDITIONS: You agree that Karelia is not responsible for, and shall be released and held harmless from: telephonic, electronic, hardware, software, network, Internet, or other malfunctions, failures, or difficulties of any kind; from any conditions caused by events beyond the control of Karelia that may cause the Program to be disrupted; any typographical errors in any materials associated with Sandvox or with the Program; any and all losses, damages, rights, claims, and actions of any kind in connection with or resulting from participation in the Program. Karelia reserves the right to suspend or to cancel the Program at any time if a technical problem, malicious or otherwise, corrupts the administration, security, or proper conduct of the Program. Offer void where prohibited.

7. PRIVACY: See the Karelia Software Privacy Policy available at http://www.karelia.com/privacy_policy.html regarding how Karelia may use your information.