SMILEBOX, INC. TERMS OF SERVICE FOR CLUB SMILEBOX SERVICES

These Terms of Service for Club Smilebox Services ("Agreement") is a legal agreement between you (either an individual or an entity) and Smilebox, Inc. and its suppliers and licensors (collectively "Smilebox, Inc.") for the Club Smilebox Services ("Services"). The Services include access to content as described. You may only receive the Services if you are a Service subscriber in good standing with a valid, authorized credit card on file with Smilebox, Inc., or if you are in the trial period of the Services. If you do not agree to the terms of this Agreement, do not purchase or use the Services.

YOU AGREE THAT YOUR USE OF THE SERVICES ACKNOWLEDGES THAT YOU HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND AGREE TO BE BOUND BY ITS TERMS AND CONDITIONS.

THE SERVICES MAY BE PROVIDED TO YOU ON A FREE OR TRIAL BASIS AT THE SOLE DISCRETION OF SMILEBOX, INC.

YOUR USE OF SMILEBOX SOFTWARE ("SOFTWARE") WILL BE GOVERNED BY THE SMILEBOX LICENSE AGREEMENT ACCOMPANYING THE SOFTWARE, AN ELECTRONIC COPY OF WHICH HAS BEEN INSTALLED IN THE SMILEBOX FOLDER ON YOUR COMPUTER UPON INSTALLATION OF THE SOFTWARE.

THE TERMS OF THIS AGREEMENT SHALL SUPPLEMENT THE TERMS AND CONDITIONS OF THE SMILEBOX LICENSE AGREEMENT, WHICH SHALL BE INCORPORATED HEREIN BY REFERENCE.

1. Payment & Services

BILLING AUTHORIZATIONS FOR FREE TRIAL MEMBERSHIPS

As part of the free trial offer, you agree that Smilebox may obtain a pre-authorization for the subscription fee amount to verify the validity of your credit or debit card.

INITIAL SUBSCRIPTION PAYMENT AND AUTOMATIC SUBSCRIPTION RENEWAL

Following the expiration of a trial period that may be provided to you in the sole discretion of Smilebox, Inc., you agree to pay Smilebox, Inc. the applicable service charges (e.g. monthly or annually) for your use of the Services using a valid credit or debit card, plus any applicable taxes, in accordance with the billing terms and prices in effect at the time the fee or charge becomes payable. You authorize Smilebox, Inc. to automatically bill the charge card you provide on each applicable subscription period renewal date until you cancel the Services. Payments are billed in advance at the beginning of the applicable subscription period.

REFUND POLICY

All payments are completely non-refundable. You may cancel the Services at any time, but Smilebox, Inc. will not refund any remaining portion of your subscription fees, including any minimum commitments, already billed to your account. You agree to provide Smilebox, Inc. with a valid credit or debit card and accurate, complete and updated information required by the subscription registration form. Failure to comply may result in the immediate termination of Services.

PAYMENT METHOD

Smilebox accepts credit and debit cards as forms of payment. Smilebox may obtain a pre-approval from the credit or debit card company for an amount up to the amount of the order. Billing to your charge card occurs at the expiration of your trial period and upon renewal. Please check with your bank regarding any policies they have concerning online purchases. If a purchase has been declined online due to credit or debit card issues, please check with your bank.

Smilebox, Inc. will assess an additional 1.5% (or the highest amount allowed by law, whichever is lower) per month late charge if your payment is more than 30 days past due. That amount is also due immediately. You are responsible and liable for any fees, including attorney and collection fees, that Smilebox, Inc. may incur in its efforts to collect any remaining balances from you. You also agree that you will be billed for and will pay any outstanding balances if you cancel the Services, or the Services are terminated. You agree to notify Smilebox, Inc. about any billing problems or discrepancies within 30 days after they first appear on your account statement. If you do not bring them to Smilebox, Inc.'s attention within 30 days, you agree that you waive your right to dispute such problems or discrepancies.

During your active subscription period, you are entitled to unlimited Premium usage of the designs in the Smilebox catalog.

To use the Services, you must install the Software. You agree to be bound by the End User License Agreement for Smilebox presented to you when you install the Software. The End User License Agreement for Smilebox addresses the software license for the Software and any Designs ("Content") that you download using the Software.

2. Your Right to Cancel Club Smilebox Services

You may cancel the Services at any time. You will not receive any refund or partial refund for any charges already billed to your account. In the event you signed up for a minimum commitment period, you will be responsible for all charges for the entire minimum commitment period. You may cancel the Services by visiting Smilebox Customer Support at http://support.smilebox.com and including: (1) your request to cancel Club Smilebox; (2) your Smilebox account email address; (3) your reason for canceling. We may ask you to provide us with certain other Registered User Information for security and verification purposes. You understand and agree that cancellation of your subscription is your sole right and remedy with respect to any dispute with Smilebox, Inc. This includes, but is not limited to, any dispute related to, or arising out of: (1) any term of this Agreement or Smilebox, Inc.'s enforcement or application of this Agreement; (2) any policy or practice of Smilebox, Inc. including any Smilebox Privacy Policy, or Smilebox, Inc.'s enforcement or application of these policies; (3) the Content available through the Software or the Internet or any change in the Content provided through the Software; (4) your ability to access and/or use the Content; (5) your recipient's ability to access and/or view Content you send to them; (6) any Software or Content provided by or through the Software; or (7) the amount or type of fees, applicable taxes, billing methods, or any change to the fees, applicable taxes, or billing methods.

You understand that upon cancellation of the Services membership, any Premium content that you downloaded during your membership will revert to Basic content, with the exception of any content for which you had purchased the Premium version. Any Premium content purchased prior to the membership period continues to be bound by the terms of the End User License Agreement for Smilebox.

Trial members who cancel their trial membership before the expiration of the trial period will not be billed by Smilebox, Inc. Please allow up to 2 business days after requesting cancellation to receive a confirmation. The trial membership for Services is limited to one membership per individual and household in each one-hundred-eighty (180) day calendar period.

3. Smilebox Inc.'s Right to Terminate or Modify Services

Smilebox, Inc. may modify the terms of this Agreement or the Services, including but not limited to the price, content or nature of the Services, upon notice to you. In the event Smilebox, Inc. modifies the Agreement or the Services, you may terminate the Services. Smilebox, Inc. may terminate this Agreement and any Services at any time upon notice to you, provided that you will be entitled to receive the Services for any period for which you have already paid, or a pro-rata refund at Smilebox, Inc.'s sole discretion. Smilebox, Inc. may provide notice by e-mail or by publishing the changes on its website. This Agreement will automatically terminate if you fail to comply with any term. No notice shall be required from Smilebox, Inc. to effect such termination. Upon any termination of this Agreement (whether by you or Smilebox, Inc.), you shall immediately discontinue use of the Services. Your obligation to pay accrued charges and fees shall survive any termination of this Agreement.

4. Service Use Restrictions

You agree that you shall only use the Services in a manner that complies with all applicable laws in the jurisdictions in which you use the Services, including, but not limited to, applicable restrictions concerning copyright and other intellectual property rights. Except as specifically authorized herein, you may not: (i) permit other individuals to use the Services; (ii) modify, translate, distribute or create derivative works of the Services; (iii) rent, lease, transfer, or otherwise transfer rights to the Services; and (iv) remove any proprietary notices or labels on the Services. You may only use the Services for your private, non-commercial use. You may not use the Services in any way to provide, or as part of, any commercial service or application.

You may not attempt to, in conjunction with, any device, software program or service, circumvent technological measures employed to control access to, or the rights in, a Content file. The Service embodies a copy management system required by the laws of the United States, and you may not circumvent or attempt to circumvent this system by any means.

In addition to any other remedies available in equity or law to Smilebox, Inc. and Smilebox, Inc.'s Content suppliers, failure to comply with any of the terms and conditions in this Section 4, Service Use Restrictions, shall immediately terminate your license to the Content and the Services.

5. Personal Information and Privacy

Personal information you provide to Smilebox, Inc. is governed by the Smilebox Privacy Policy at http://www.smilebox.com/info/privacy.html. Your election to use the Software and Services indicates your acceptance of the terms of the Smilebox Privacy Policy, so please review it carefully if you have any questions about Smilebox, Inc.'s treatment of personal information you provide to us. The Smilebox Privacy Policy discloses information-gathering and dissemination practices for information collected during product purchase, trial sign up and/or product registration. Information may include name, e-mail address, location information, product and service information, information on software downloads and updates, systems information, content preferences, purchase information and credit card billing information. The information is stored on Smilebox, Inc.'s servers and is sent to and from such servers as part of routine product communications that enable Software functionality. Smilebox, Inc. uses this information to:

1. Verify access rights to premium content, services or software.
2. Provide you with information about products, services, news and events.
3. Allow you to purchase and download products and services.
4. Provide you with advertising, promotions and special offers we feel you may be interested in based on information you provide to us.
5. Provide you with personalized content, instructions and services.
6. Calculate license reporting, billing, royalty payments and assessment of service levels.
7. Understand on an aggregated basis how our products are used, traffic patterns and what types of content and services are most popular with users of our products and services.

This information is treated according to the Smilebox Privacy Policy at http://www.smilebox.com/info/privacy.html. If you have questions about our Privacy Policy, please visit Smilebox Customer Support at http://support.smilebox.com.

You are responsible for maintaining the confidentiality of your password and account information. You are responsible for all activities that occur in your account and you agree to notify Smilebox, Inc. immediately of any unauthorized account use. Smilebox, Inc. is in no way responsible for any loss that you may incur as a result of any unauthorized use of your user account and password.

6. E-mail Notification

To let you know what new Content and Services are available from time to time, Smilebox, Inc. will send you e-mail describing the latest Content and how to get access to the Content. You agree that as a Service subscriber, Smilebox, Inc. may send you such e-mail to the address you provide. Because this e-mail is necessary for you to receive the Services, you will receive this e-mail even if you have opted out of receiving other e-mail from Smilebox, Inc. If you do not want to receive this e-mail, you may cancel the Services at any time as provided in this Agreement.