Index: D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2PcInstance.java
===================================================================
--- D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2PcInstance.java	(revision 2082)
+++ D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2PcInstance.java	(working copy)
@@ -1276,9 +1276,9 @@
 	 */
 	public void setKarma(int karma)
 	{
+		int oldKarma = _karma;
 		_karma = karma;
-
-		if (karma > 0)
+		if (karma > 0 || oldKarma != _karma)
 		{
 			StatusUpdate su = new StatusUpdate(getObjectId());
 			su.addAttribute(StatusUpdate.KARMA, karma);
@@ -1563,22 +1563,8 @@
         setSp(currSp);
 
 		// Remove Karma when the player kills L2MonsterInstance
-		if (currExp != 0 || isGM())
-		{
-			// NEW KARMA REMOVAL FROM XP by ootz0rz
-			int karmaRemove = addToExp;
-			int xpDivi = Config.KARMA_XP_DIVIDER;
-			karmaRemove /= xpDivi;
+		// removed and placed in l2attackable
 
-			if ( karmaRemove < 0 ) karmaRemove = 1;
-			_karma -= karmaRemove;
-
-			if (Config.DEBUG) _log.fine("removed "+karmaRemove+" karma from " + getName());
-		}
-
-		if (_karma < 0)
-			_karma = 0;
-
 		// Send a Server->Client packet StatusUpdate to the L2PcInstance
 		StatusUpdate su = new StatusUpdate(getObjectId());
 		su.addAttribute(StatusUpdate.EXP, currExp);
@@ -2589,6 +2575,10 @@
 					deathPenalty(true);
                 else
                     deathPenalty(false);
+					//If the character is participating in a siege, also calculate death penalty 
+            		// but this will be 1/4 the normal XP loss. 
+            		if (L2Siege.checkIfObjectInZone(getX(), getY())) 
+            			deathPenalty(true);
 		}
 
 
@@ -2707,28 +2697,13 @@
 					// when a PKer gets killed by another player or a L2MonsterInstance, it loseq a certain amount of Karma based on their level.
 					// this (with defaults) results in a level 1 losing about ~2 karma per death, and a lvl 70 loses about 11760 karma per death...
 					// You lose karma as long as you were not in a pvp zone and you did not kill urself.
+					
+					System.out.println("check if he has karma");
 					if ( this.getKarma() > 0 )
 					{
-
-						// this formula seems to work relatively well:
-						// baseKarma * thisLVL * (thisLVL/100)
-						int finalKarma = 0;
-						double baseKarmaLost = Config.KARMA_LOST_BASE;
-						double karmaLost = baseKarmaLost;
-						double thisLVL = this.getLevel();
-						double tempMulti = thisLVL / 100;
-
-
-						// Calculate the new Karma of the attacker : newKarma = baseKarma*pkCountMulti*lvlDiffMulti
-						karmaLost *= thisLVL; // multiply by char lvl
-						karmaLost *= tempMulti; // divide by 0.charLVL
-						karmaLost = Math.round(karmaLost);
-						finalKarma = (int)karmaLost;
-						if ( finalKarma < 0 ) finalKarma = 1;
-
-						// Decrease Karma of the L2PcInstance and Send it a Server->Client StatusUpdate packet with Karma and PvP Flag if necessary
+						System.out.println("he has karma and died, reuce karma by 600");
+						int finalKarma = 600;
 						this.redreaseKarma(finalKarma);
-
 					}
 				}
                 }
Index: D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2Attackable.java
===================================================================
--- D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2Attackable.java	(revision 2082)
+++ D:/Source/trunk/L2_Gameserver/java/net/sf/l2j/gameserver/model/L2Attackable.java	(working copy)
@@ -667,6 +667,19 @@
                     // Distribute the Exp and SP between the L2PcInstance and its L2Summon
                     attacker.addExpAndSp((int)attacker.calcStat(Stats.EXPSP_RATE, xp, null, null), 
                                          (int)attacker.calcStat(Stats.EXPSP_RATE, sp, null, null));
+                    if (attacker instanceof L2PcInstance)
+                    {
+                    	int karmaloss;
+                    	int currKarma = ((L2PcInstance) attacker).getKarma();
+                    	if (diff < 0)
+                           karmaloss = 20;
+                    	else if (diff > 10)
+                           karmaloss = 0;
+                    	else
+                           karmaloss = 230 - 20 * diff;
+                        if (currKarma - karmaloss < 0) karmaloss = currKarma;
+                        ((L2PcInstance) attacker).setKarma(currKarma-karmaloss);
+                    }
                 }
                 else
                 {
@@ -689,13 +702,30 @@
                         // If the L2PcInstance is in the L2Attackable rewards add its damages to party damages
                         if (ai != null)
                         {
-                            // Add L2PcInstance damages to party damages
+                        	 // Add L2PcInstance damages to party damages
                             partyDmg += ai.dmg;
-                            
-                            // Remove the L2PcInstance from the L2Attackable rewards
-                            rewards.remove(pl);
+                            // work out karma loss
+                            if (!pl.isDead())
+                            {
+                              float karmaRatio = ai.dmg/(float)getMaxHp();
+                              int diff = attackerParty.getLevel() - getLevel();
+                              int karmaloss;
+                              int currKarma = pl.getKarma();
+                              if (diff < 0)
+                            	  karmaloss = 20;
+                              else if (diff > 10)
+                                 karmaloss = 0;
+                              else
+                                 karmaloss = 230 - 20 * diff;
+                              
+                              karmaloss = (int)(karmaloss * karmaRatio);
+                              if (currKarma - karmaloss < 0) karmaloss = currKarma;
+                                pl.setKarma(currKarma-karmaloss);
+                                
+                              //Remove the L2PcInstance from the L2Attackable rewards 
+                              rewards.remove(pl); 
+                            }
                         }
-                        
                         // Add L2PcInstance of the party (that have attacked or not) to members that can be rewarded if it's not dead
                         if (!pl.isDead()) rewardedMembers.add(pl);
                     }
@@ -723,7 +753,7 @@
                     
                     xp *= partyMul;
                     sp *= partyMul;
-                    
+                                       
                     // Distribute Experience and SP rewards to L2PcInstance Party members in the known area of the last attacker
                     if (partyDmg > 0)
                         attackerParty.distributeXpAndSp(xp, sp, rewardedMembers, lastAttacker);