Official Rules

NO PURCHASE NECESSARY TO ENTER OR WIN. Red Hat, Inc. ("Sponsor") is sponsoring the Red Hat Challenge ("Contest"), a skill contest in which participants prepare and submit an innovative concept/idea addressing a question provided by Sponsor. The Contest begins on February 25, 2007, at 12:01 a.m. Eastern Time ("ET") and ends on March 25, 2007, at 11:59 p.m. ET (the "Term"). VOID WHERE PROHIBITED.

To be eligible to enter the Contest, you must be: (1) a full-time, part-time, or executive student attending graduate business school or a graduate design school in pursuit of a Masters in Business Administration or similar degree; (2) a legal resident of Argentina, Australia, Austria, Belgium, Brazil, Canada (excluding the Province of Quebec), China, Czech Republic, France, Germany, Hong Kong, India, Ireland, Japan, Malaysia, Mexico, Netherlands, Singapore, South Korea, Switzerland, United Kingdom, and the United States (including the District of Columbia); and (3) above the age of majority in your country, province, and/or state of legal residence at the time of entry. You must also have access to the Internet, a valid email address, and a valid student identification card to enter the Contest. Employees, officers, and directors of Red Hat, Inc., its subsidiaries and affiliated companies, and their immediate families and those living in their households are not eligible to enter.

If your employer is paying or reimbursing all or part of your tuition, these rules are binding on you, individually, and/or your employer. If you are acting within the scope of your employment, as an employee, contractor, or agent of another party, you warrant that such party has full knowledge of your actions and has consented thereto, including your potential receipt of a prize. You further warrant that you and your employer have no claim to or right of ownership in any work product created as part of the Contest and that your actions do not violate your employer's or company's policies and procedures. If you are under an agreement with your employer that grants your employer ownership rights in the materials you submit to Sponsor, you are not eligible to enter.

To enter the Contest, you must form a team of no more than five (5) and no fewer than three (3) students who qualify for the Contest according to these Official Rules ("Team"). As used in these Official Rules "you" and "Team" refers to you and all members of your team on whose behalf you are entering this Contest. All Team members must be from the same university or academic institution. No individual entrants will be allowed. No individual may compete on more than one (1) team.

Your Team must select one (1) member to represent the team ("Team Leader") who will register the Team and submit documentation under his/her own name on behalf of the remaining members of the Team. Team members that compete at the beginning of the Contest must participate throughout the Contest, except that teams may make one (1) substitution during the Contest upon written approval of the Sponsor.

Your Team Leader must register your Team's intent to participate in the Contest by completing the online registration form on the Contest website located at www.redhatchallenge.com ("Website"), between February 25, 2007 at 12:01 a.m. ET and March 11, 2007 at 11:59 p.m. ET. The registration form must be completely filled out and include the following information for each member of the team: name, mailing address, e-mail address, phone number, and name of the university/institution attending. After submitting a complete registration, the Team Leader will be prompted to set up a free work share account on the Website ("Account"). The Team Leader can set up the Account by providing a user id and password. As a condition of eligibility in the Contest, all Teams must set up an Account during the Term.

On March 12, 2007, Sponsor will notify each of the Team Leaders by e-mail that the Contest question is available for access via the Team's Account. The question will represent an area in which Sponsor wants to generate new innovative ideas. On March 16, 2007, Sponsor will hold a teleconference for approximately one hour where Teams can ask questions. The scheduled time of the telephone conference and a toll-free call-in number will be provided to each Team Leader via e-mail on or about March 12, 2007. Teams will have until March 25, 2007 at 11:59 p.m. ET, to submit, via the Website, a 3-5 page plan as outlined in Appendix A to these Official Rules responding to Sponsor's question ("Entry"). Teams may not seek outside assistance from any individual who is not registered as a member of their Team.

IMPORTANT NOTICE TO ENTRANTS: ENTRANTS ARE RESPONSIBLE FOR DETERMINING THE CORRESPONDING TIME ZONE IN THEIR RESPECTIVE JURISDICTIONS.

Teams will be providing personal information about the individual Team members that will be transferred to servers located in the U.S. and the information may be transferred to third parties. By registering for the Contest, you will be bound by Sponsor's privacy policy located at: www.redhat.com/legal/privacy_statement.html.

Red Hat, Inc., located at 1801 Varsity Drive, Raleigh, North Carolina, 27606, USA, is the sponsor of the Contest.

All Entries must be submitted in English in .pdf format with no less than ten (10) point font size and one inch margins around the entire page. Registrations or Entries that are in any other language will not be considered. LIMIT ONE (1) ENTRY PER TEAM. Subsequent Entries will be disqualified. All Entries become the property of Sponsor. They will not be returned or acknowledged. Entries are void if they are in whole or part illegible, incomplete, damaged, altered, counterfeit, manipulated or obtained through fraud or lost, late, misdirected, mutilated, incomplete, or illegible entries or email, or for any computer related, online, telephonic, or technical malfunctions that may occur whether or not within Sponsor's control.

Three (3) winning teams will be selected based upon two (2) rounds of judging. All Entries will be judged by a panel of experts in the field of business and open source technology ("Judges").

First Round. The first round of judging will take place beginning on March 26, 2007 and ending on March 30, 2007 ("First Round"). In the First Round, each Entry will be evaluated by the judges based on the following criteria:

• Articulation of concept – 20%
• Creativity of concept – 20%
• Relevance to Red Hat's competitive environment – 20%
• Market disrupting force of concept – 20%
• Viability of implementation – 20%

The five (5) Entries with the highest scores will be selected as potential finalist Teams. In the event of a tie, the Entry that received the highest score from the Judges in the category of "Relevance to Red Hat's competitive environment" will be selected as the potential fifth finalist Team. If there are fewer than five (5) Entries entered into the Contest, all Teams will advance to the final round of judging. The potential finalist Teams will be notified by e-mail that they had one of the highest scores in the Contest on or about April 1, 2007. If the e-mail notification is returned as undeliverable, the potential finalist Team will be disqualified and an alternate potential finalist Team will be selected based on the criteria for the selection of the winners described herein.

Final Round. The final round of judging will take place beginning on April 2, 2007 and ending on April 10, 2007 ("Final Round"). The Final Round will include an oral competition, including oral presentation of the Entry by the Team via toll-free telephone conference with the Judges. Each team must present its Entry for no more than fifteen (15) minutes and answer questions from the judges for an additional fifteen (15) minutes. In the Final Round, each Entry will be evaluated by the Judges based on the following criteria:

• Articulation of concept – 10%
• Oral presentation of concept – 10%
• Q&A response during Oral presentation – 10%
• Creativity of concept – 20%
• Relevance to Red Hat's competitive environment – 20%
• Market disrupting force of concept – 15%
• Viability of implementation – 15%

The Entry that receives the highest overall score will be selected as the potential Grand Prize winner. The Entry that receives the second highest score will be selected as the potential Second Place winner. The Entry that receives the third highest score will be selected as potential Third Place winner. In the event of a tie for first, second, or third places, the Entry that receives the highest score from the Judges in the category of "oral presentation of concept" will be selected as the potential winner for that prize level. The potential winners will be selected and notified by email on or about April 11, 2007. The Judges' decisions are final with respect to all aspects of the Contest.

Before being declared a winner, each potential winner must sign an Affidavit of Eligibility, Release of Liability and/or Publicity Release, where lawful. The Affidavit of Eligibility must be properly executed by each Team member and returned within seven (7) days of attempted notification as a condition of receipt of prize. If the Sponsor does not receive the Affidavit of Eligibility within seven (7) days, Sponsor may, in its sole discretion, select another potential winner from the remaining eligible Entries.

Grand Prize: Sponsor will award one (1) Grand Prize of $20,000 (USD) ("Grand Prize") to the winning team at the Red Hat Summit held on May 9 - May 11, 2007, in San Diego, California, USA. The Grand Prize winning Team will also receive: (i) round-trip coach airfare for one (1) member of the winning Team to travel from the major airport closest to the individual's residence to San Diego, California, (ii) double-occupancy hotel accommodation for three (3) nights in San Diego, California, (iii) round-trip transfers to/from the airport and hotel, and (iv) access to all Red Hat Summit sessions, conference meals, and special events. The representative from the winning team is responsible for any other expenses including cost to obtain a Passport or Visa to travel to the United States and any other expenses incidental travel cost not expressly stated above, including but not limited to, ground transportation, passenger tariffs or duties, surcharges, airport fees, service charges or facility charges, personal charges at lodging, security fees, taxes or other expenses are the responsibility solely of the winner. Trip is not redeemable for cash. The Approximate Retail Value ("ARV") of the Grand Prize is $22,000 (USD).

Second Place: Sponsor will award one (1) second place prize of $3,500 (USD).

Third Place: Sponsor will award one (1) third place prize of $1,500 (USD).

ARV of all prizes: $27,000 (USD). All prize values are listed and will be awarded in US Dollars. All cost associated with currency exchange are the sole responsibility of the winners. Blackout periods and other restrictions, conditions, and/or limitations may apply. Travel reservations must be made through Sponsor's agent, on a carrier of Sponsor's choice, at least fifteen (15) days prior to intended travel. Grand Prize winner is responsible for all required travel documents, including Passports and/or Visa requirements. Grand Prize winner is responsible for obtaining all forms of insurance, including but not limited to travel insurance and acknowledge that Sponsor has no obligation to obtain or provide travel insurance or any other form of insurance. No prize substitution, cash substitution, or assignment or transfer of any of the prizes is permitted, except by Sponsor for reason of unavailability, in which case a prize of equal or greater value will be awarded. The prize consists of only those items specifically listed as part of the prize. Prizes are awarded without warranty of any kind from Sponsor, express or implied, without limitation, except where this would be contrary to federal, state, provincial, or local laws or regulations. All taxes, costs, and fees associated with the Prize are the sole responsibility of the winners. LIMIT ONE PRIZE PER PERSON. Odds of winning depend on the number of eligible Entries received and the skill of the entrants.

In consideration of and as a condition to the eligibility of each Entry under the terms of the Contest, you promise to and hereby do assign, transfer, and convey, exclusively to Sponsor, all right, title and interest of any kind whatsoever, in and to the Entry submitted by your Team, including any intellectual property rights, and, if applicable, the exclusive right to register the same. By registering for the Contest, you further promise to and hereby do assign, transfer, and convey any know-how, methodologies and processes, discoveries, and innovations you conceive in connection with or related to the Entry.

In addition, if you are not selected as one of the winners, you agree to grant Sponsor an option for six (6) months from the close of the Contest to exercise this option to request that you assign to Sponsor all intellectual property rights and/or other proprietary rights in your Entry. In exchange for exercising such option, Sponsor will send you a gift with an approximate retail value of $100 (USD).

You acknowledge that the above provisions are a material condition of the Contest. Consequently, you should seek legal advice from an attorney on your rights related to the assignment.

By entering the Contest, you agree to be bound by the terms of these Official Rules and you confirm that you meet all eligibility requirements listed herein. You agree that all federal, state, provincial and local laws and regulations apply. By registering for the Contest, you agree that these Official Rules and the decisions of Sponsor are final and binding on all matters pertaining to this Contest. By registering for the Contest, you warrant and represent that the members of your Team are the sole authors, inventors and creators of the Entry you submit, that you have not previously assigned such intellectual property rights or any portion thereof to any other person, nor are you under any obligation to assign such rights other than to Sponsor, that your Entry does not violate any applicable law, and that you have no reason to believe that your Entry infringes or violate any intellectual property right held by any third person. Acceptance of the prize constitutes permission for, and winners consent to, Sponsor and its agencies to use the winning Entries and the names and/or likenesses of the winning Team members for advertising and promotional purposes, in any media now known or hereafter devised, without further notice, compensation, consideration, review, or consent, and without regard to moral rights, unless prohibited by law.

To the extent permitted by law, all registered participants of the Contest agree to hold Sponsor, its respective directors, officers, employees and assigns harmless for any injury or damage caused or claimed to be caused by participation in the Contest and/or use or acceptance of any prize. Sponsor is not responsible for any typographical or other error in the printing of the offer, administration of the Contest, or in the announcement of the prize. If, in Sponsors' opinion, there is any suspected or actual evidence of electronic or non-electronic tampering with any portion of the Contest, or if technical difficulties compromise the integrity of the Contest, the Sponsor reserves the right in its sole discretion, to cancel, terminate, modify or suspend the Contest. Any attempt to deliberately damage the content or operation of this Contest is unlawful and subject to legal action by Sponsor or its agents. You may be prohibited from participating in this Contest if Sponsor, in its sole discretion, reasonably believes that you have attempted to undermine the legitimate operation of the Contest by cheating, deception, or other unfair playing practices, or annoys, abuses, threatens, or harasses any other participants, Sponsor, or associated agencies. In the event a potential winner's employer has a policy that prohibits the awarding of a prize to an employee, the prize will be forfeited and an alternate winner will be selected.

This Contest is subject to all federal, state and local laws. This Contest and Official Rules are governed and interpreted by the laws of the State of North Carolina, without regard to its conflict of law provisions.

The names of the winners will be posted online at www.redhatchallenge.com on or about April 13, 2007.

• Include a headline and copy (such as might be found in advertisements).
• Concisely describe your concept: Identify target customers, overt benefits, and a reason to believe that your concept can make a dramatic difference in the market.

• What articulated and unarticulated needs does your concept meet?
• How important is this area of need to your customers and stakeholders?

• What qualitative benefits will the concept provide to the organization and/or its customers?
• To the extent possible, quantify the concept's expected impact on company revenue, market share, margins, productivity, and customer satisfaction.
• How would you measure and prove the concept's success?

• Advantage is gained over competitors by offering something new and different.
• Advantage is unique and difficult for others to replicate.
• Company has the potential to own the advantage and sustain it over time.

• Identify risks inherent in the concept's implementation and the significance or impact of each.
• Describe the level of time, money, or overall effort involved in implementing the concept.
• Describe the implementation time frame, including any phases.

• This area can be used for photos, illustrations, flowcharts, or diagrams.