1. Eligibility: The "California Inn of the Year $500 Giveaway" Sweepstakes (the "Sweepstakes") is open only to legal residents of the 50 United States (and the District of Columbia) who are at least 13 years of age on May 5, 2004. Employees of American Historic Inns, Inc. ("Sponsor"), and their respective related companies, as well as the immediate family (spouse, parents, siblings, and children) and household members of each such employee are not eligible. Subject to all federal, state and local laws and regulations. Odds of winning in this particular drawing depend on the number of eligible entries received for the drawing. Void in where prohibited.
   
2. Sponsor: American Historic Inns, Inc., PO Box 669, Dana Point, CA 92629.
   
3. Agreement to Official Rules: By participating in the Sweepstakes, each entrant fully and unconditionally agrees to and accepts these Official Rules (including, without limitation, the "Privacy Statement" set forth below) and the decisions of Sponsor, which are final and binding.
   
4. Timing: The Sweepstakes begins at 12:01:00 a.m. Pacific Time ("PT"), May 5, 2004 and ends at 5:00 p.m. PT, August 15, 2004 (the "Promotion Period").
   
5. How to Enter: There are two (2) ways to vote for the California Inn of the Year enter the Sweepstakes:

a. To enter online: Entrant enters all required information on iLoveInns.com. Entrant is limited to (1) entry into the Sweepstakes. Duplicate entries will be discarded.

b. To enter by mail: Hand print your name, address, day and evening phone numbers, e-mail address (if any), age, and the name of the California inn you are voting for on a 3" x 5" piece of paper. Mail it in a hand-addressed envelope to "American Historic Inns, Inc., PO Box 669, Dana Point, CA 92629  ATTN: California Inn of the Year". LIMIT: one (1) card per envelope. Entrant is limited to (1) entry into the Sweepstakes. Duplicate entries will be discarded.

All online entries must be received through a completed Internet transmission during the Promotion Period. All mail-in entries must be postmarked by August 15, 2004 and received by the close of business on August 20, 2004. All entries become the exclusive property of Sponsor, and none will be acknowledged or returned. Proof of sending or submission will not be deemed to be proof of receipt by Sponsor. Sponsor is not responsible for lost, late, incomplete, invalid, unintelligible, illegible, misdirected or postage-due entries, which will be disqualified. Use of any automated system to submit entries is prohibited and will result in disqualification. In the event of a dispute as to any online entry, the authorized account holder of the e-mail address used to enter will be deemed to be the entrant. The "authorized account holder" is the natural person assigned an e-mail address by an Internet access provider, online service provider or other organization responsible for assigning e-mail addresses for the domain associated with the submitted address. Potential winners may be required to show proof of being the authorized account holder.

6. Drawings: The Drawing will be conducted in accordance with these Official Rules on September 8, 2004. All of those entries received on or before August 20, 2004 will be eligible for Prize described below. Any entries received after August 20, 2004 will be not be eligible for the Prize.
   
7. Prize: One (1) Prize will be awarded to a randomly selected eligible entrant. The prize for which an entrant is eligible for entering through the Sweepstakes is: $500 towards one (1) two-night stay for one (1) winner and one (1) guest at a California B&B or Inn to be used by March 31, 2005. The prize package includes: $500 to use towards accommodations for two (one room) and spending money at a California B&B or Inn of the winner's choice for two (2) nights. Approximate retail value: up to $500. Trip may not be combined with any other offer. Travel insurance is not included. Accommodations subject to availability. All other expenses and costs not listed above, including but not limited to taxes and travel to and from the Inn, are the sole responsibility of the winner. Additional charges may apply. Limit 2 persons to a room. Unused components of this package have no redeemable cash value. Winner is solely responsible for all federal, state, and local taxes and other fees emaciated with prize receipt and use. No substitution, assignment or transfer of prizes permitted, except by Sponsor, who reserves the right to substitute any prize or combination of prizes with another prize of greater or equal value. Prize winner and travel companion (and parent or legal guardian of either, if a minor) must sign and deliver to Sponsor release(s) of liability prior to stay.
   
8. Publicity: Except where prohibited, participation in the Sweepstakes constitutes winner's consent to Sponsor's use of winner's name, likeness, voice, opinions, biographical information, hometown and state for promotional purposes in any media without further payment or consideration.
   
9. General Conditions: Sponsor reserves the right to cancel or modify the Sweepstakes if fraud, technical failures or any other factor beyond Sponsor's reasonable control impairs the integrity of the Sweepstakes, as determined by Sponsor in its sole discretion. In such event, Sponsor reserves the right to award the prizes at random from among the eligible entries received up to the time of the impairment. Sponsor reserves the right in its sole discretion to disqualify any individual it finds to be tampering with the entry process or the operation of the Sweepstakes or to be acting in violation of these Official Rules, or in an unsportsmanlike or disruptive manner. Any attempt by any person to deliberately damage any web site or undermine the legitimate operation of the Sweepstakes is a violation of criminal and civil law, and, should such an attempt be made, Sponsor reserves the right to seek damages from any such person to the fullest extent permitted by law. Sponsor's failure to enforce any term of these Official Rules shall not constitute a waiver of that provision. Sponsor and its respective related companies are not responsible for errors in print or electronic presentation of the Sweepstakes.
   
10. Release: By entering this Sweepstakes, Entrant agrees to release and hold harmless, Sponsor, and its respective related companies, and each of their respective officers, directors, employees, and agents from and against any claim or cause of action arising out of participation in the Sweepstakes or receipt or use of any prize.
    
11. Limitations of Liability: Sponsor is not responsible for: (i) technical failures of any kind, including but not limited to the malfunctioning of any computer, cable, network, hardware or software; (ii) the unavailability or inaccessibility of any transmissions or telephone or Internet service; (iii) unauthorized human intervention in any part of the entry process or the Sweepstakes; (iv) electronic or human error which may occur in the administration of the Sweepstakes or the processing of entries; or (v) any injury or damage to persons or property, including but not limited to entrant's computer, hardware or software, which may be caused, directly or indirectly, in whole or in part, from entrant's participation in the Sweepstakes.
    
12. Disputes: Entrant agrees that: (i) any and all disputes, claims and causes of action arising out of or connected with this Sweepstakes, or any prizes awarded, other than the administration of the Sweepstakes or the determination of winners shall be resolved individually, without resort to any form of class action, and exclusively by the United States District Court for the Southern District of California or the appropriate California State Court located in Orange County, California; (ii) any and all claims, judgments and awards shall be limited to actual out-of-pocket costs incurred, including costs associated with entering this Sweepstakes but in no event attorneys' fees; and (iii) under no circumstances will entrant be permitted to obtain awards for and entrant hereby waives all rights to claim punitive, incidental and consequential damages and any other damages, other than for actual out-of-pocket expenses, and any and all rights to have damages multiplied or otherwise increased. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATIONS OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE MAY NOT APPLY TO YOU. All issues and questions concerning the construction, validity, interpretation and enforceability of these Official Rules, or the rights and obligations of the entrant and Sponsor in connection with the Sweepstakes, shall be governed by, and construed in accordance with, the laws of the State of California, without giving effect to any choice of law or conflict of law rules (whether of the State of California or any other jurisdiction), which would cause the application of the laws of any jurisdiction other than the State of California.
    
13. Privacy Statement. General. This Privacy Statement describes the personal information Sponsor collects about Sweepstakes' entrants and how Sponsor uses that information. This Privacy Statement is part of these Official Rules and applies only to information collected by Sponsor in connection with the Sweepstakes. As used in this Privacy Statement, the term "personal information" means information about an identified or identifiable individual.

Collection of Personal Information. Sponsor collects the e-mail address of each entrant who enters the Sweepstakes online and each party to whom the entrant forwards the brochure. Sponsor collects the name, address, day and evening phone numbers, e-mail address (if any), and age of each entrant who enters the Sweepstakes by mail. Potential entrants who desire to enter the Sweepstakes online are required to follow the instructions set forth above in "How to Enter."

Use of Personal Information. Sponsor uses name and contact information to administer the Sweepstakes in accordance with these Official Rules, for example, to notify winners. Sponsor uses age information to determine an individual's eligibility to enter the Sweepstakes. In addition, Sponsor may use personal information collected in connection with the Sweepstakes for direct marketing purposes, for example, to increase its membership, to promote events, and to market products and services. From time to time, Sponsor may contact Sweepstakes' entrants with information and offers that Sponsor believes will be of interest to them.

Disclosure. Sponsor may share personal information collected in connection with the Sweepstakes with selected third-party partners, who may use the information to provide special opportunities and offers to Sweepstakes' entrants.

In addition, Sponsor shares or may share entrants' personal information with third- party vendors who now or in the future provide support services to Sponsor. Sponsor's partners may also share personal information with vendors who provide support services to them. These vendors are not authorized to use the personal information Sponsor or its partners share with them for any purpose other than to provide services to Sponsor or its partners.

There may be some other limited circumstances in which Sponsor may share or transfer personal information in its databases to a third party, for example, to comply with a legal requirement, for the administration of justice, or in the event of a merger, reorganization, dissolution or similar event.

Choice/Opt-Out. Entrants who do not wish to receive communications from Sponsor, except in connection with the Sweepstakes, and/or who prefer that Sponsor not share their personal information with its partners, may indicate their preference by writing Sponsor at American Historic Inns, Inc., PO Box 669, California, CA 92629, Attn.: California Inn of the Year. Sponsor will use reasonable efforts to honor such requests. "Opting- out" will not affect an entrant's chance of winning. Entrants must understand, however, that even if they "opt-out," they may still receive communications from Sponsor and/or its partners, for example, if Sponsor receives their contact information from another source or if Sponsor initiated the communication before Sponsor received their "opt-out" request, or if Sponsor's partners received their contact information from Sponsor before Sponsor received the "opt-out" request.

Security. Sponsor will maintain reasonable practices to help protect the security, confidentiality and integrity of entrants' personal information. Although no data or computer system is ever completely secure, these practices reduce the likelihood of damage to or improper disclosure of personal information.

Access and Corrections. Entrants who wish to access, correct or update their personal information should contact American Historic Inns, Inc. at American Historic Inns, Inc., PO Box 669, California, CA 92629, Attn.: California Inn of the Year. The entrant must provide enough information to permit Sponsor to identify his/her personal information and respond to his/her request. If Sponsor can accommodate a request without incurring significant expense, Sponsor will attempt to do so. Sponsor will not charge for complying with a correction or opt-out request, however, for all other requests, Sponsor may charge a small fee to cover its costs. Requests to correct or delete personal data are subject to any applicable legal or ethical reporting or document retention obligations imposed on Sponsor.

Additional Information. Questions regarding this Privacy Statement should be directed to Sponsor at American Historic Inns, Inc., PO Box 669, California, CA 92629, Attn.: California Inn of the Year