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(Updated April 16, 2012)

This virtual currency policy (the “Policy”) governs the relationship between you and Smule, Inc. (“Smule”) regarding your use of Smule products utilizing virtual currency and the virtual currency purchased or earned thereunder.

Customers may purchase virtual currency only within the Smule applications offering such virtual currency. Customers may also earn virtual currency within these applications, as determined from time to time by Smule. When a customer purchases or earns virtual currency, it is credited to that customer’s account. By purchasing virtual currency, customers exchange “real world” money for a license to use such virtual currency. Accordingly, customers have no ownership or other property interest in the virtual currency, and all rights in and to the virtual currency shall forever be and remain owned by and enure to the benefit of Smule.

Customers may only redeem Virtual currency to purchase goods within the applications offering such virtual currency. Upon redemption of any virtual currency by a customer, the amount available in that customer’s virtual currency account is reduced by the amount redeemed. Virtual currency is not redeemable for cash, except as required by applicable law.

A customer’s account and any unused balances in that account may not be given or sold and are not assignable or transferable. Accordingly, customers may not trade, give, sell or attempt to sell virtual currency or other product items for “real” money, or exchange those items or currency for value of any kind outside of the applicable Smule application. Any gift, sale, transfer or assignment is prohibited and void and will subject a customer’s virtual currency account to termination.

Smule reserves the right to suspend, terminate, or revoke the use of virtual currency or any customer’s virtual currency account at any time in its discretion, with or without cause or prior notice, subject to applicable law. Smule also reserves the right to terminate the license to a customer’s account and all of the virtual currency in it if such account has been inactive for 180 days.

Smule may update or amend this Policy by posting an amendment or update on this website. Unless otherwise indicated by Smule, any amendment or update will apply to all outstanding virtual currency and any transactions occurring on or after the effective date of the amendment or update. A customer’s acceptance or use of virtual currency after the effective date of any update or amendment will confirm that such customer agrees to the update or amendment. If a customer does not agree to any amendment or update, they must stop accepting or using virtual currency.

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