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Karma Card Program Improvements

A. ATTENTION KARMA CARD HOLDERS:

We're very excited about launching our revamped Karma Club program on Monday, Dec. 3!

Please read carefully below for full details on program improvements & how your unused balance will be converted. If you have any questions, please email questions@homegrownrestaurants.com. Thanks for being a Karma Club member!

B. PROGRAM CHANGES EFFECTIVE 12/3/07:

1. Use your Karma Card at Osteria & Stella too!
   You'll be able to accrue points and redeem rewards at any HomeGrown Restaurant, which also includes Osteria 832 Pasta & Pizza, and soon-to-open Stella Neighborhood Trattoria.
2. Use your Karma Card as a gift card
   Karma Cards will be able to act as gift cards as well. For example, if a Doc Chey's gift card is on your holiday wish list, you could give your Karma Card # to your friends or family & suggest that they purchase gift dollars to add to value to your card.
3. Reward Format Change: from credits to coupons
   Since Osteria & Stella are joining the list of participating restaurants in the Karma Club program and their menu pricing is a little bit higher than Doc Chey's, we need to change our rewards format for your benefit. For example, we currently give you an $8 credit to act as a free birthday entree because at Doc Chey's this is the same value as an entree. But the problem is, at Osteria or Stella $8 will get you a free appetizer, not a free entree. To solve this problem, under the revamped Karma Card program, when you earn a free birthday entree, instead of giving you an $8 credit, you'll receive a "free entree" coupon that you can redeem at Doc Chey's, Osteria or Stella for an entree of ANY value listed on the menu. Even though we call it a "coupon", we do not mean a paper or printed coupon – it acts more like a "virtual coupon" that is added to your card balance and you redeem in the same manner as before.
4. Reward changes
   Under the revamped program, rewards will be as follows:
   1. Earn a "$5 off" coupon when you register your card online (expires 90 days)
   2. Enjoy a "free entree" coupon for your birthday (expires 90 days)
   3. Enjoy a "free appetizer" coupon EACH time you hit 100 points (no expiration)
   4. Earn a "free appetizer" coupon for your membership anniversary (expires 90 days)
5. Option to convert 2 "free appetizer" coupons to 1 "free entree" coupon
   To convert 2 free appetizer coupons into a free entree coupon, simply log-in to your account online or ask a server.
6. Extra benefits
   Our revamped program will also include tons of extra benefits for those of you who read your monthly emails, such as discounts at local businesses, occasional double point days and other VIP offers exclusively for Karma Club members.

C. HOW YOUR BALANCE WILL BE CONVERTED

Under the current program, your Karma Card has 2 balances:

1. Credits balance (AKA "stored value" or "rewards" earned) - this will change
2. Points balance - this will remain the same

1. Credit balance

Your points balance is exactly the same, but you may notice that your credit balance (AKA "stored value" or "rewards" earned) is in a different format that it was before 12/3/07. Instead of a dollar value rewards balance, your balance now appears in as reward coupon. Even though we call it a "coupon", we do not mean a paper or printed coupon – it acts more like a "virtual coupon" that is added to your card balance and you redeem in the same manner as before. Here’s how we converted credit balances on 12/3/07: