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How does this program work.  I have a Beam 1st generation. I'd like a 2nd gen so Sonos is offering a 15% discount. If I take advantage of the upgrade discount do I have to send Sonos my old Beam or can I keep it?

No, you can keep the old Beam.

Read more here (specifically the FAQ section):

https://www.sonos.com/en-us/upgrade