Dealer Agreements

<BODY BGCOLOR="#000000" TEXT="#F7F7FF" LINK="#FFCC99" ALINK="#009D74" VLINK="#FF9966"> <div> <FONT SIZE="5" COLOR="#0000FF" FACE="Bradley Hand ITC" ><I><B>America's Family Entertainment, Inc.</B></I></FONT><FONT SIZE="5" COLOR="#FFCC99" FACE="Arial" >   </FONT><FONT SIZE="1" COLOR="#FFCC99" FACE="Arial" > </FONT> |   <A HREF="index.htm" TARGET="_top" TITLE="Americas Family Entertainment, Inc."><U><B>home</B></U></A></div> <div> <A HREF="id35.htm" TARGET="_top" TITLE="About Us"><U><B>About Us</B></U></A><B>   |   </B><A HREF="id36.htm" TARGET="_top" TITLE="News and Events"><U><B>News and Events</B></U></A><B>   |   </B><A HREF="id41.htm" TARGET="_top" TITLE="Locations"><U><B>Locations</B></U></A><B>   |   </B><A HREF="id37.htm" TARGET="_top" TITLE="Contact Us"><U><B>Contact Us</B></U></A><B>   |   </B><A HREF="id38.htm" TARGET="_top" TITLE=" Products and Services"><U><B>  Products and Services</B></U></A><B>   |   </B><A HREF="id83.htm" TARGET="_top" 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follows:</div> <bR> <bR> <div> <B>1.  Authorized Dealer</B></div> <bR> <div> You are authorized to be a non-exclusive dealer of Direct Broadcasting Satellite ("DBS") receivers, Internet </div> <div> connectivity and radio programming ("Equipment") and satellite television programming services, Internet access</div> <div>  via satellite and satellite radio programming ("Programming") on the terms and conditions of this Agreement.  </div> <div> This Agreement is intended only to apply to the distribution of Equipment and Programming territories controlled </div> <div> by us pursuant to our existing and future agreements with various satellite television, Internet access and radio</div> <div>  providers.  Unless expressly agreed in writing by us, no other distributions</div> <div>  are governed by this Agreement.</div> <bR> <div> <B>2.  Conduct of Business</B></div> <bR> <div> You and each of your employees, agents and contractors ("Agents") will comply with all applicable federal, state</div> <div>  and local laws (including all state and local retail sales and use tax laws), and will otherwise conduct your business</div> <div>  in a manner that does not adversely impact our business.  You will act in good faith to obtain quality long-term</div> <div>  subscribers for us.  You agree to provide accurate subscriber information when setting up an account, including</div> <div>  the subscriber's billing and physical address and telephone number.</div> <bR> <div> <B>3.  Quality Service</B></div> <bR> <div> You and your Agents will comply with all applicable warranties, and any oral or written representations that you </div> <div> and your Agents make, in connection with goods or services you or your Agents sell or offer.  You will maintain </div> <div> adequate facilities to handle inquiries and requests from customers and prospective customers and provide services </div> <div> as agreed to in the attached Exhibit A.</div> <bR> <div> <B>4.  Retail Dealer Program Rules</B></div> <bR> <div> We may, from time to time, provide rules, guidelines, procedures or other written materials describing our commission </div> <div> policies, advertising policies, and other aspects of our dealer programs ("Business Rules"), including those set forth</div> <div>  in the attached Exhibit A and in <I><B>The AFE Retail  Dealer and Installation Guide and The AFE Retail Dealer</B></I></div> <div> <I><B> Marketing Toolbox, as amended (the "Dealer Guide").</B></I>  This Agreement incorporates by reference all of our existing</div> <div>  and any future Business Rules, and you and your Agents agree to comply fully with AFE/NASCorp's Rules.  If you do </div> <div> not comply with these Rules, we may discontinue your relationship with AFE/NASCorp.</div> <bR> <div> <B>5.  Confidentiality</B></div> <bR> <div> You will not disclose to any third party any information about our business or operations (including information about</div> <div>  sales, pricing, costs, business plans, or customers/subscribers) that in any reasonable manner could be considered </div> <div> proprietary or confidential, except with our prior written consent.  Likewise, we shall not disclose any information about</div> <div>  your business or operation (including information about sale, pricing, costs, business plans or customers/subscribers)</div> <div>  other than what is necessary to enroll your customer(s) into satellite television, Internet connectivity or radio</div> <div>  programming subscription services.</div> <bR> <div> <B>6.  Surety </B></div> <div> <B>(APPLIES TO SPECIFIC RETAIL DEALERS WHO ELECT                                                 </B></div> <div> <B>     EXHIBIT B; i.e.;  EQUIPMENT FLOOR PLAN)                                                                                                                                                                                                            </B></div> <div> <B>     </B></div> <div> You may have been required to post a surety deposit with AFE in United States dollars in an amount as identified in </div> <div> Exhibit B hereof.  This surety is to be held in a secured interest bearing account on your behalf and shall only be </div> <div> accessed or diluted in the event that customer subscription deactivation charge backs exceed current activation </div> <div> or monthly residual payments. Surety deposits are required:</div> <bR> <div>  A.  Under AFE/NASCorp's Equipment Floor Plan (Section 7), a portion of revenue resulting  from your activities </div> <div> under this Agreement from first activation commissions as you, the Retail  Dealer, may have earned on the first</div> <div>  primary unit installations are subject to withholding.  This  holdback shall be applied to the first two (2) months</div> <div>  of primary unit activation's for which you enrolled your dealership  (i.e.;  If your monthly activation commitment to </div> <div> Exhibit B hereof is 20 primary receivers per month, then $75.00 of your activation  commission on each of the first</div> <div>  40 units activated will be deposited, on your behalf, into a surety account.)  These dollars shall be pledged as</div> <div>  additional surety as made a part of Exhibit B hereof with funds being placed in the same interest bearing account </div> <div> as the cash deposit referenced herein.</div> <bR> <div>      B.  Under any condition which subjects us to unacceptable chargeback(s) risk from a Retail Dealer's activities.</div> <bR> <div> <B>7.  Equipment Floor Plan </B></div> <div> <B>(APPLIES ONLY TO RETAIL DEALERS WHO ELECT EXHIBIT B)</B></div> <bR> <div> As an AFE/NASCorp Retail Dealer, you may have elected the option to enroll in a floor plan stock replenishment </div> <div> program (Retail Dealer must be enrolled in the Surety Plan of Section 6 hereof to qualify for the Equipment Floor Plan). </div> <div>  As such, you will not be required to make a further financial commitment for satellite receiver systems, television, </div> <div> radio or Internet, except for second or subsequent receiver(s), a change of supplier's cost of goods or to increase your </div> <div> monthly activation/installation commitment as made a part of Exhibits B and C hereof.  Otherwise, AFE/NASCorp</div> <div>  shall deduct from your activation commissions its cost of wholesale equipment shipped to you under this floor plan</div> <div>  arrangement;  AFE/NASCorp automatically replenishing your inventory on a month-to-month basis as elected in </div> <div> Exhibit B, Section B hereof.</div> <bR> <div> <B>8.  Exclusivity</B></div> <bR> <div> You, your firm and your Agents may not solicit for conversion or convert an existing AFE/NASCorp or Subscriber</div> <div>  to a service provider other than a Programming Provider affiliated with AFE/NASCorp.</div> <bR> <div> <B>9.  Indemnity</B></div> <bR> <div> You will indemnify, defend and hold us harmless  from any acts or omissions of you, your firm or your Agents,</div> <div>  including any breaching of this Agreement by you.</div> <bR> <bR> <div> <B>10.  Amendment</B></div> <bR> <div> We reserve the right to amend this Agreement, including the Business Rules, by giving you written or electronic</div> <div>  notice of such amendment.  To the extent possible, we will use our best efforts to provide you with as much notice</div> <div>  of such amendment to the Business Rules as possible.</div> <bR> <div> <B>11.  Termination</B></div> <bR> <div> You or we may terminate this Agreement upon written notice to the other.  Termination will not affect any rights </div> <div> under this Agreement with respect to acts or omissions that occurred before termination.  The provisions of </div> <div> Sections 5, 8, 9, 12, 14, 19 and 20 hereof shall survive termination.</div> <bR> <div> <B>12.  CUSTOMER ACQUISITION AND RETENTION AGREEMENT</B></div> <bR> <div> In addition to the other defined terms in this Retail Dealer Agreement, the following terms in this Section 12 and</div> <div>  as may be used in any Section hereafter, shall have the following meanings: <B> (a)</B>  <B>"Affiliate"</B> shall mean, with </div> <div> respect to a party, any person or entity directly or indirectly controlling, controlled by or under common control</div> <div>  with such party;  <B>(b)</B>  <B>"Program"</B> shall mean any Promotional, Conversion, Lease or Rental program in which </div> <div> incentives are paid to the Retail Dealer to bring new customers to various Satellite Programming Provider </div> <div> Affiliates of America's Family Entertainment, Inc. ("AFE"), as described in the Digital Home Plan ("DHP") </div> <div> Business Rules attached as Exhibit D hereto (as such Exhibit D may be amended from time to time by the</div> <div>  various Satellite Programming Provider Affiliates of  AFE or at AFE's sole discretion), and any other Business </div> <div> Rules for any other program(s) which may be offered from time to time by AFE which are hereby incorporated </div> <div> by reference herein;  provided that any conflict or inconsistency between this Agreement and Exhibit D and </div> <div> or the Business Rules shall be resolved by giving precedence to the terms and conditions of this Agreement;</div> <div>   <B>(c)</B> Satellite Programming Provider <B>("Provider")</B> shall mean any entity which AFE has an Affiliation Agreement</div> <div>  with and who may be involved in the Program at any time; </div> <div>  <B>(d)</B>  <B>"Retail Dealer"</B> shall mean the undersigned Retail Dealer and all of its Affiliates; and <B> (e)</B> <B>"Subscriber"</B> shall</div> <div>  mean any first time customer or subsequent period enrollment of any person, entity or consumer into any AFE </div> <div> Affiliated Program of any Provider by a Retail Dealer. </div> <div>      </div> <div>      A.  Retail Dealer agrees that all persons who subscribe to satellite  programming services  through AFE</div> <div>  (including video, audio, data and other material incidental, connected or related thereto - collectively "Services"),</div> <div>  or who purchase, lease or otherwise obtain the hardware necessary to receive any Services ("Hardware"), shall be </div> <div> considered the Subscriber(s) of the initial Provider  by whom services and hardware were first rendered by a Retail </div> <div> Dealer for all purposes under this Agreement.  Retail Dealer further acknowledges and agrees that the names, addresses </div> <div> and other identifying information of all the Satellite Programming Provider's Subscribers ("Subscriber Information")</div> <div>  are as between Retail Dealer and the appropriate Satellite Programming Provider, with respect to the delivery </div> <div> of Services or Hardware, and such information is proprietary to the appropriate Provider, and shall be treated</div> <div> with the highest degree of confidentiality by Retail Dealer and Provider.  Retail Dealer shall not directly or </div> <div> indirectly use any Subscriber Information for the purpose of soliciting, or to permit any others to solicit, Subscribers</div> <div>  to subscribe to any Services offered by anyone other than the initial Satellite Programming Provider, or to promote</div> <div>  the sale, lease or other acquisition of any Hardware used in connection with Services offered by anyone other than</div> <div>  the initial Satellite Programming Provider of a Subscriber.  Furthermore, Retail Dealer shall, under no circumstance</div> <div> , directly or indirectly, reveal any Subscriber Information to any third party for any reason without the express prior</div> <div>  written consent of AFE and the initial Satellite Programming Provider, provided however, that nothing shall prohibit</div> <div>  Retail Dealer from utilizing its own customer list for its general business operations unrelated to the delivery of </div> <div> Services or Hardware.<FONT SIZE="3" COLOR="#FFFFFF" FACE="Arial" >     </FONT></div> <div>      </div> <div>      B.  As a condition to participation by the Retail Dealer in the Program, Retail Dealer hereby covenants and</div> <div>  agrees that, for a period of five (5) years following the date of the last payment from AFE to Retail Dealer in </div> <div> connection with any Satellite Programming Provider's Program, Retail Dealer will not directly or indirectly participate </div> <div> in any promotion or program offered by a third party which would directly or indirectly provide for the delivery of </div> <div> any economic incentive or other benefit to Retail Dealer in any form directly or indirectly in connection with the </div> <div> solicitation of Subscribers of the initial Satellite Programming Provider  or any other DTH (satellite) programming </div> <div> service provider ("Service Provider") for any purpose whatsoever (including, without limitation, the Retail Dealer</div> <div>  directly or indirectly assisting in the process of attempting to cause a customer of  the initial Provider to become</div> <div>  a Subscriber to another Service Provider).  To add further clarification, nothing in this Section 3 shall preclude </div> <div> Retail Dealer from receiving standard sales commissions (i.e., sales commissions that do not include any</div> <div>  direct or indirect premium for the direct or indirect  solicitation of Subscribers of another Service Provider) from</div> <div>  a third-party Service Provider in  connection with the sale of that Service Provider's programming services to </div> <div> consumers who are not Subscribers of the initial Provider at the time such commissions are paid and were</div> <div>  not.  Subscribers of the initial Provider at any time immediately prior to subscribing to any third party Service</div> <div>  Provider.  The foregoing obligations shall apply regardless of whether Retail Dealer receives only one or many</div> <div> payments from AFE in connection with the Program.   In order to be eligible to participate in the Program, Retail </div> <div> Dealer must have a valid AFE Retail Dealer Agreement in full force and effect.</div> <div>      </div> <div>      C.  In the event that Retail Dealer derives an economic benefit, in any form, from a violation of  Retail Dealer</div> <div>  obligations as set forth in this Section, it is hereby agreed that such economic  benefit is the property of the </div> <div> initial Satellite Programming Provider and that Retail Dealer shall be obligated to deliver the cash value of the</div> <div>  economic benefit to the initial Satellite  Programming Provider immediately upon receipt of the economic benefit.</div> <div>   It is further agreed  that Retail Dealer shall hold such economic benefit in trust for the benefit of the initial Provider</div> <div>  until such time as its cash value is delivered to AFE's Affiliated Satellite Programming Provider.  In addition, in</div> <div>  AFE's sole discretion, any violation will result in past  and future forfeiture of all payments, including but not limited</div> <div>  to the payments derived as a  result of the Program.</div> <bR> <div> <B>13.  No Financing Or Collection Of Fees</B></div> <bR> <div> Dealer shall not provide financing for subscriptions or collect subscriber fees or other money due any television,</div> <div>  radio or Internet service programming provider.  It is understood that all subscription fees for programming shall </div> <div> be billed directly to the Subscriber, unless otherwise approved in writing by AFE/NASCorp.  Failure to comply</div> <div>  with the provision(s) of this Section 15 shall be deemed a material breach of this Retail Dealer by Retail Dealer </div> <div> that is incurable and shall entitle AFE/NASCorp to immediately terminate this Retail Dealer Agreement as set</div> <div>  forth in Section 11 hereof.</div> <bR> <div> <B>14.  Charge backs</B></div> <bR> <div> (a)  All prepaid programming commissions are based upon a full uninterrupted purchase of television, radio and</div> <div>  Internet programming packages purchased by the Subscriber for the term prescribed by the television or Internet</div> <div>  access provider as set forth by the respective service provider ("Commission able Term").  If the Subscriber</div> <div> terminates, cancels or disconnects (whether initiated by Subscriber, AFE/NASCorp or the programming or </div> <div> Internet service provider)  their programming package</div> <div>  prior to end of the Commission able Term, or the Subscriber fails to pay for the programming package for </div> <div> the entire uninterrupted Commission able Term for which you, the Retail Dealer, was paid a prepaid programming</div> <div>  commission, then AFE/NASCorp may charge back to you, the Retail Dealer, the portion of the prepaid </div> <div> programming commission corresponding to the unpaid portion of such Commission able Term.</div> <bR> <div> (b)  If Retail Dealer receives any other prepaid programming commission or any continuing service fee to </div> <div> which the Retail Dealer is not entitled, AFE/NASCorp may charge back the Retail Dealer such amount from</div> <div>  sums otherwise owing to the Retail Dealer; or such amount may be deducted from the Retail Dealer's surety</div> <div>  account where applicable.</div> <bR> <div> <B>15.  Change</B></div> <bR> <div> Retail Dealer acknowledges that the market for DBS service, radio programming and Internet connectivity </div> <div> is competitive and unpredictable and that AFE/NASCorp may need to adapt its marketing, Commission </div> <div> able Schedule(s), or continue service fees to meet changing conditions at any time or from time to time at </div> <div> AFE/NASCorp's sole discretion.    </div> <bR> <div> <B>16.  Retail Dealer Status</B></div> <bR> <div> The relationship of the parties hereof shall be, and at all times shall remain, one of independent contractor(s).</div> <div>   Nothing contained in this Agreement is intended to create, or shall be construed to create, any partnership, </div> <div> Franchisee/franchiser, agency or employment relationship between the parties.  Retail Dealer hereby acknowledges</div> <div>  and agrees that AFE makes absolutely no promises, representations or warranties as to the potential amount </div> <div> of business that Retail Dealer may expect from participation in the Program, and that Retail Dealer may not realize</div> <div>  any business as a result of its participation in the Program.  Retail Dealer further acknowledges and agrees that</div> <div>  AFE or any Affiliated Satellite Programming Provider of AFE or Service Agent of AFE may discontinue all or any </div> <div> part of the Program at any time and for any reason without incurring any liability or obligation to Retail Dealer and</div> <div>  without affecting the enforceability of this Agreement.</div> <bR> <div> <B>17.  Dealer Payment(s)</B>     </div> <bR> <div> In the event that Retail Dealer is indebted to AFE for any reason, Retail Dealer acknowledges and agrees that </div> <div> AFE shall  have the right, but not the obligation, to offset any such amounts due to AFE or any of AFE's Affiliated</div> <div>  Satellite Service Providers from moneys due  Retail Dealer from AFE.  Furthermore, AFE's right to money due</div> <div>  and to become due thereunder shall not be subject to any defense (except payment), offset, counterclaim, or</div> <div>  recoupment of Retail Dealer whatsoever.  The Provider's or AFE's calculation of offset amounts shall be binding, </div> <div> absent manifest error.</div> <bR> <div> <B>18.  Rights at Law</B></div> <bR> <div> Retail Dealer agrees that any breach of Retail Dealer's representations, warranties, covenants, agreements</div> <div>  and/or obligations (collectively, "Obligations") set forth in this Agreement will cause substantial and irreparable</div> <div>  harm and injury to AFE's Affiliate  Provider(s), for which monetary damages alone would be an inadequate remedy,</div> <div>  and which damages are difficult to accurately measure.  Accordingly, Retail Dealer agrees that AFE's Affiliated </div> <div> Providers, and their Affiliates, shall have the right, in addition to any other remedies available, to obtain immediate</div> <div>  injunctive relief (without the necessity of posting or filing a bond or other security) to restrain the threatened or </div> <div> actual violation hereof by Retail Dealer, its employees and Agents, as well as other equitable relief allowed by the </div> <div> federal and state courts.</div> <bR> <div> <B>19.  Breach of Contract</B>  </div> <bR> <div> The remedies expressed herein are agreed to without prejudice to the right of AFE to exercise any other rights </div> <div> and remedies it may have at law, in equity or otherwise.  Retail Dealer acknowledges and agrees that any breach</div> <div>  or default of this Agreement committed by Retail Dealer shall constitute a material breach or default under any</div> <div>  other agreement now existing or hereafter made between Retail Dealer and AFE.  In the event of any suit or </div> <div> action to enforce or interpret this Agreement or any provision thereof, AFE shall be entitled to recover its costs, </div> <div> expenses and reasonable attorney fees, both at trial and on appeal, in addition to all other sums allowed by law.</div> <bR> <div> <B>20.  Jurisdiction</B>     </div> <bR> <div> The relationship between the parties and this Agreement shall be governed by and construed in accordance</div> <div>  with the laws of the State of Tennessee without giving any effect to its conflict of law provisions.  Any and all</div> <div>  disputes arising out of, or in connection with, the interpretation, performance or the nonperformance of this </div> <div> Agreement or any and all disputes arising out of, or in connection with, transactions in any way related to this </div> <div> Agreement or the relationship between the parties (including but not limited to the termination of this Agreement </div> <div> or the relationship of the parties hereto and Retail Dealer's rights thereunder, or disputes over rights granted</div> <div>  pursuant to statutes or common law, including those in the state in which Retail Dealer is located) shall be </div> <div> litigated solely and exclusively before the federal and state courts located in the State of Tennessee.  The parties </div> <div> consent to the <I>in personal </I>jurisdiction of, and waive any objection to venue in said courts for such purposes.</div> <bR> <div> <B>21.  Severability</B></div> <bR> <div> In the event that any one or more of the covenants, agreements, terms or provisions contained in this Retail </div> <div> Dealer Agreement shall be held invalid, illegal or unenforceable in any respect, the validity of the remaining</div> <div>  covenants, agreements, terms or provisions contained herein shall in no way be affected, prejudiced or </div> <div> disturbed thereby.</div> <bR> <div> <B>22.  Force Majeure</B></div> <bR> <div> Neither party shall be liable for any loss, damage, cost, or failure to perform in whole or in part resulting from</div> <div>  causes beyond such party's control, including but not limited to, acts of God, fires, strikes, acts of war, insurrections,</div> <div>  riots or requirements of any governmental authority.</div> <bR> <div> <B>23.  Entire Agreement</B></div> <bR> <div> This Agreement and any and all Exhibits hereto constitute the entire, complete and final agreement between</div> <div>  the parties hereto and supersedes all prior and contemporaneous negotiations, agreements, and commitments,</div> <div>  whether written, oral or implied, with respect thereto.  Any failure by AFE to enforce at any time any term or</div> <div>  condition under this Agreement shall not be considered a waiver of AFE's right thereafter to enforce each and </div> <div> every term and condition of this Agreement.  This Agreement and the Exhibits attached hereto shall not amend,</div> <div>  modify, alter, or change any terms or conditions of any other agreements now existing or later made between Retail</div> <div>  Dealer and AFE.</div> <bR> <div> <B>24.  Notices</B></div> <bR> <div> Unless advised otherwise, notices should be sent to America's Family Entertainment, Inc., at P. O. Box 1778, </div> <div> Goodlettsville, TN 37070-1778, Attention:  Director of Wholesale Marketing.  Unless otherwise notified by you in </div> <div> writing, we will send notices to you at your dealership address indicated on this Agreement.</div> <bR> <div> <B>25.  Miscellaneous</B></div> <bR> <div> This Agreement does not create a joint venture;  you are an independent contractor.  Except as expressly authorized</div> <div>  by us in writing, you have no authority to act as our agent in any manner and you will take appropriate actions </div> <div> to prevent the appearance that you are our agent.  You may not assign any interest in this Agreement without our </div> <div> prior written consent.  We may assign any of our interest in this Agreement..  Any waiver of our rights must be in </div> <div> writing.  We will never be liable to you for any consequential, special or punitive damages.</div> <bR> <div> <B>26.  Authorization;  Capacity</B></div> <bR> <div> Retail Dealer hereby represents and warrants that the execution, delivery and performance by Retail Dealer of</div> <div>  this Agreement have been duly authorized by all prerequisite corporate action and will not violate any provision</div> <div>  of Retail Dealer's articles of incorporation or bylaws, or any provision of any other document or agreement by which</div> <div>  Retail Dealer is bound or affected.  The person whose signature appears below hereby represents and warrants</div> <div>  to AFE that he/she has the full right and authority to sign this Agreement on behalf of Retail Dealer and to bind </div> <div> Retail Dealer to the terms and conditions hereof and that this signatory is authorized to accept and agree to the</div> <div>  terms and conditions of this Agreement.</div> <bR> <bR> <div> Retail Dealer:                                                                                  America's Family Entertainment, Inc.</div> <div>                                                                                                           P. O. Box 1778               </div> <div> _____________________________                                          Goodlettsville, TN 37070-1778</div> <div> (Print Name)                                                                                   Signature:</div> <div> Dealer Address:</div> <div> _____________________________                                          ___________________________</div> <div> _____________________________</div> <bR> <div> AFE Retail Dealer </div> <div> ID Number:____________________                                          ___________________________</div> <div> E-mail Address:_________________                                        (Print Name)</div> <div> FIN ID#/SS#___________________</div> <bR> <bR> <bR> <div> Signature:______________________                                      Title:_______________________</div> <div> ______________________________                                      Date:_______________________</div> <div> (Print Name)</div> <bR> <div> Title:__________________________</div> <div> Date:__________________________</div> <bR> <bR> <bR> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>AMERICA'S FAMILY ENTERTAINMENT, INC.</B></div> <div> <B>(NASCorp)</B></div> <div> <B>Satellite Television</B></div> <bR> <div> <B>EXHIBIT A</B></div> <div> <B>To </B></div> <div> <B>RETAIL DEALER AGREEMENT</B></div> <bR> <div> <B>General Dealer Requirements</B></div> <bR> <div> In order to become an authorized Retail Dealer, the following requirements must be met:</div> <bR> <div> 1.  Retail Dealer must have a storefront or registered business office.</div> <bR> <div> 2.  Retail Dealer must submit to AFE a copy of a valid vendor license, proof of incorporation or registered       </div> <div>      d/b/a.</div> <bR> <div> 3.  Retail Dealer must submit to AFE a copy of a local or state retail sales certificate for each state in  </div> <div>      which Retail Dealer operates.</div> <bR> <div> 4.  Retail Dealer must have federal tax identification number or, if business is run as a proprietorship,  </div> <div>      AFE must have the proprietor's social security number on file.</div> <bR> <div> 5.  Retail Dealer must have proof of liability insurance in a minimum amount of $500,000.00.  Evidence   </div> <div>      of commercial liability coverage shall be provided AFE/NASCorp through issuance of a current </div> <div>      certificate of insurance naming AFE/NASCorp as additional insured.  Furthermore, AFE/NASCorp </div> <div>      shall be provided notice of cancellation of any such coverage through the United States mail ten (10) </div> <div>      days prior to cancellation.</div> <bR> <div> 6.  Retail Dealer should be registered with a local Better Business Bureau.</div> <bR> <div> 7.  Retail Dealer must have a staff available to answer customer calls during business hours.</div> <bR> <div> 8.  Retail Dealer must represent itself as an authorized AFE sales agent.  Dealer may not represent itself  </div> <div>      as AFE, Pegasus, Dish Network, or DirecTV, Inc. in advertising, telephone solicitation or in any  </div> <div>      documentation provided to customers or prospective customers.  Retail Dealer must adhere to all  </div> <div>      advertising guidelines set forth by AFE.</div> <bR> <div> 9.  Retail Dealer must not engage in any illegal or deceptive activity involving any satellite receiver  </div> <div>      system(s) or DirecTV or Dish Network.</div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>Minimum Performance Standards</B></div> <bR> <div> These standards govern sales made in a Retail Dealer's service territory.</div> <bR> <div> 1.  Retail Dealer must respond to any customer complaint provided by AFE within one (1) business day.  </div> <div>      Resolution of the complaint must be communicated to AFE within three (3) business days.</div> <bR> <div> 2.  Retail Dealer must act in good faith to explain equipment operation, including the remote, and </div> <div>      programming availability to customer.</div> <bR> <div> 3.  Retail Dealer must provide customer with a copy of the programming channel lineup and </div> <div>      programming provider's price guide.</div> <bR> <div> 4.  Retail Dealer must provide customer with a Retail Dealer contact number and business hours.</div> <bR> <div> 5.  Retail Dealer should provide post-sale customer assistance.</div> <bR> <div> 6.  Retail Dealer is responsible for explaining equipment warranty to customer at time of sale and a copy </div> <div>      of warranty must be provided to customer.</div> <bR> <div> 7.  Retail Dealer must provide customer with a receipt for equipment and installation, if applicable.   </div> <div>      Receipt must include Retail Dealer's name and telephone number.</div> <bR> <bR> <bR> <div> Retail Dealer:                                                                America's Family Entertainment, Inc.:</div> <bR> <div> _____________________________                       ______________________________</div> <div> Signatory                                                                       Signatory</div> <bR> <bR> <div> _____________________________                       _______________________________</div> <div> Title               Date                                                         Title                       Date</div> <bR> <bR> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>AMERICA'S  FAMILY ENTERTAINMENT, INC.</B></div> <div> <B>(NASCorp)</B></div> <div> <B><U>Satellite Television</U></B></div> <bR> <div> <B>Exhibit B - SURETY</B></div> <div> <B>RETAIL DEALER AGREEMENT</B></div> <div>      </div> <bR> <bR> <div>      As an AFE/NASCorp satellite receiver equipment and television programming Retail Dealer, we agree to</div> <div>  perform the elected primary receiver installations to the best of our abilities, as indicated below in Section A,</div> <div>  on a month-to-month basis for the term of this Agreement.  It is further understood that a cash deposit, as </div> <div> indicated below in Section "A" to this Exhibit, shall be collected along with our Retail Dealer's payment for</div> <div>  the initial receiver at the time of execution of this Agreement.  In addition, a deposit of Seventy-Five Dollars</div> <div>  ($75.00) shall be collected from each of the Retail Dealer's first activation commissions paid from the first</div> <div>  two months of receiver installations.  This sum shall be collected on approximately two (2) times the monthly</div> <div>  systems committed under this Agreement.</div> <bR> <div>      The cash deposit and activation commissions retained by AFE shall be placed into a special interest</div> <div>  bearing Retail Dealer reserve account which may only be diminished or accessed in the event that a Retail </div> <div> Dealer's programming provider's chargeback(s) from customer receiver deactivations exceed the Retail Dealer's </div> <div> current activation commissions and/or programming residual reserves.</div> <bR> <div>      It is understood that should customer deactivations produce chargeback(s) which are greater than a</div> <div>  dealership's commissions, residual payments or reserve account as provided for in this Exhibit, then we, </div> <div> as the Retail Dealer, may be required to submit payment(s) to AFE/NASCorp for any chargeback(s) which </div> <div> are not covered by these funds.  In such an instance, we, the Retail Dealer, give our personal guarantee by </div> <div> signing this Exhibit.</div> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="696" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 54 WIDTH="108"><div> <B>Initial Install Commitment Level</B></div> </tD> <tD VALIGN=TOP WIDTH="106"><div> <B>Activation's Committed (per mth)</B></div> </tD> <tD VALIGN=TOP WIDTH="103"><div> <B> Cash Surety Deposit</B></div> </tD> <tD VALIGN=TOP WIDTH="117"><div> <B>First Month  Holdback (@ $75.00 ea.) </B></div> </tD> <tD VALIGN=TOP WIDTH="116"><div> <B>Second Month Holdback (@ $75.00 ea.)</B></div> </tD> <tD VALIGN=TOP WIDTH="111"><div> <B>Total Cash & Holdback Surety</B></div> </tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="696" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="108" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="106"><div> 20 Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $1,400.00</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $1,500.00</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $1,500.00</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $4,400.00</div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="108" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="106"><div> 25 Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $1,750.00</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $1,925.00</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $1,925.00</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $5,500.00</div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="108" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="106"><div> 30 Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $2,100.00</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $2,250.00</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $2,250.00</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $6,600.00</div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="108" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="106"><div> 35 Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $2,450.00</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $2,625.00</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $2,625.00</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $7,700.00 </div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="108" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="106"><div> 40 Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $2,800.00</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $3,000.00</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $3,000.00</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $8,000.00</div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="108" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="106"><div> 45 Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $3,150.00</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $3,750.00</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $3,750.00</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $9,900.00</div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="35" ALIGN="bottom" WIDTH="108" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="106"><div> 50 Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $3,500.00</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $3,750.00</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $3,750.00</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $11,000.00</div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 35 WIDTH="108"><div> Other</div> </tD> <tD VALIGN=TOP WIDTH="106"><div> __ Primary Receivers</div> </tD> <tD VALIGN=TOP WIDTH="103"><div> $</div> </tD> <tD VALIGN=TOP WIDTH="117"><div> $</div> </tD> <tD VALIGN=TOP WIDTH="116"><div> $</div> </tD> <tD VALIGN=TOP WIDTH="111"><div> $</div> </tD> </tR> </TABLE></div> <bR> <bR> <bR> <div> Retail Dealer:                                                                       America's Family Entertainment, Inc.:</div> <bR> <bR> <div> _____________________                                                 _________________________</div> <div> Business Name                                                                    Signatory</div> <bR> <bR> <div> _____________________                                                _________________________</div> <div> Signatory                                                                               Title</div> <bR> <bR> <div> _____________________                                               _________________________</div> <div> Title                Date                                                               Date</div> <bR> <bR> <bR> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>AMERICA'S FAMILY ENTERTAINMENT, INC.</B></div> <div> <B>(NASCorp)</B></div> <div> <B><U>Satellite Television</U></B></div> <bR> <div> <B>Exhibit C - DEALER EQUIPMENT AND FLOOR PLAN ORDER</B></div> <div> <B>RETAIL DEALER AGREEMENT</B></div> <bR> <bR> <bR> <div>    <FONT SIZE="2" COLOR="#FFFFFF" FACE="Arial" >  This Exhibit represents my initial equipment order and my commitment to install and activate the elected primary </FONT></div> <div> receiver units as indicated in this Retail Dealer Agreement.</div> <bR> <div>      If the Surety (Section 6, hereof) and Equipment Floor Plan (Section 7, hereof) are elected, then it is understood that </div> <div> the equipment as made a part of this Exhibit shall be replenished on a month-to-month basis as per Paragraph 7 of the</div> <div>  "home" Agreement.</div> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="611" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 18 WIDTH="96"><div> <U>Model #</U></div> </tD> <tD VALIGN=TOP><NOBR><div> <U>Manufacturer</U></div> </NOBR></tD> <tD VALIGN=TOP WIDTH="96"><div> <U>Quantity</U></div> </tD> <tD VALIGN=TOP><NOBR><div> <U>Cost of Each</U></div> </NOBR></tD> <tD VALIGN=TOP WIDTH="96"><div> <U>Total</U></div> </tD> <tD VALIGN=TOP><NOBR><div> <U>Comment(s)</U></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 19 WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 19 WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="611" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 19 WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="611" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 19 WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="611" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 19 WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><div> <B>$</B></div> </tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="19" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 18 WIDTH="96"><div> Total</div> </tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> <tD VALIGN=TOP WIDTH="96"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="18" ALIGN="bottom" WIDTH="96" HSPACE="0" VSPACE="0"></tD> </tR> </TABLE></div> <bR> <bR> <div> DEALER SALE & USE TAX NUMBER: _______________________</div> <bR> <bR> <div> Retail Dealer:                                                         America's Family Entertainment, Inc.:</div> <bR> <bR> <bR> <div> ______________________________              __________________________</div> <div> Business Name                                                      Signatory</div> <bR> <div> ______________________________              __________________________</div> <div> Signatory                                                                 Title</div> <div> ______________________________              __________________________</div> <div> Title                                                   Date               Date</div> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>AMERICA'S FAMILY ENTERTAINMENT, INC.</B></div> <div> <B>(NASCorp)</B></div> <div> <B><U>Satellite Television</U></B></div> <bR> <div> <B>Exhibit D - BUSINESS RULES SYNOPSIS</B></div> <div>  <B>Retail Dealer Business Rules</B></div> <div> <B> Effective February 1, 2001</B></div> <bR> <div> <B>Program Overview:</B>       In the <B>Digital Home Plan</B> ("DHP"), the first-time subscriber ("Customer") pays   an </div> <div> initial Activation Fee of <B>$49.99</B> which includes their first month programming payment.  Customer chooses</div> <div> the programming package of their choice, i.e.;  AT100/DISH Latino Dos  or AT150, or  other equivalent package</div> <div>  of the various programming providers of AFE, and   pays a Monthly Fee for twelve (12) consecutive months. </div> <div>  The Retail Dealer shall provide the   Customer with professional installation of one or two receiver systems free.                                                                </div> <div>                </div> <div>  Under the <B>International Digital Home Plan</B>, the Customer subscribes to the same plan as   above, plus the </div> <div> Customer pays an additional $99.99 for the installation of the International   Antenna Upgrade Kit (part number </div> <div> 123479605) if the desired ethnic programming is  broadcast from the 61.5 or 148 degree orbital locations.  This </div> <div> fee is payable to the Retail   Dealer at the time of installation and is included in the International Digital Home Plan</div> <div>  Activation Fee of <B>$149.99</B>.  The Customer then selects the international programming    package of their choice</div> <div>  along with qualified programming, and pays a monthly fee for   twelve (12) consecutive months.</div> <bR> <div> <B>DHP Agreement</B>:    The Digital Home Plan Agreement is an agreement that must be executed by Retail </div> <div> Dealers   prior to the creation of any Digital Home Plan claims.</div> <bR> <div> <B>Promotion Code</B>:     Retail Dealers should provide the promotion code of RDHP at the time of account activation.</div> <bR> <div> <B>Eligible Equipment</B>:   Echosphere Communication Corporation ("Echosphere") Models 3822/3922 or 4922 </div> <div> (and OEM equivalents) as primary receivers, and Echosphere Models 2700/2800 (and OEM  equivalents) as </div> <div> secondary receivers.  </div> <bR> <div> <B>Qualified Programming</B>:   America's Top 100 CD/DISH Latino DOS or America's Top 150.</div> <bR> <div> <B>3822/3922 Equipment :   $</B>149.99 payment to the Retail Dealer for the activation (with qualified programming)</div> <div>  and Reimbursement    installation of an Echosphere Model 3822/3922 or OEM equivalent (as a primary receiver) </div> <div>   within the promotional period for a new Customer participating in the Digital Home Plan.</div> <bR> <div> <B>Chargeback rule</B>:     3822/3922 Equipment Reimbursement will be reclaimed on accounts that are not active  </div> <div>  with qualified programming for thirty (30) consecutive days after the initial activation date.   In addition, </div> <div> Activation, Best Flex, and FPI commission charge backs will be based on a   30-day time period as well.           </div> <bR> <div> <B>4922 Equipment Reimbursement</B>:      $203.00 payment to the Retail Dealer for the activation (with qualified </div> <div> programming) and   installation of an Echosphere model 4922 or OEM equivalent (as a primary receiver) within</div> <div>   the promotional period for a new Customer participating in the Digital Home Plan.  If a customer selects the UHF</div> <div>  Upgrade option for their primary receiver (see definition below),   the Customer will pay the Retail Dealer an</div> <div>  additional $49.99 at the time of the sale  or at the time of activation as determined by the Retail Dealer.  Retail </div> <div> Dealer  will install an Echosphere model 4922 or  OEM equivalent (as a primary receiver), and Retail Dealer will </div> <div>   be reimbursed $179.99.</div> <bR> <div> <B>Chargeback Rule</B>:   4922 Equipment Reimbursement will be reclaimed on accounts that are not active with</div> <div>    qualified programming for thirty (30) consecutive days after the initial activation date.  In   addition, Activation,</div> <div>  Best Flex, and FPI commission charge backs will be based on a 30-day   time period as well.</div> <bR> <div> <B>2700/2800 Equipment     </B>$110.00 payment to the Retail Dealer for the activation (with qualified programming) </div> <div> and  activation (with qualified programming) and  installation of a single Echosphere Model  2700/2800 or OEM </div> <div> equivalent (as a secondary receiver) in conjunction with the Echosphere  Model 3822, 3922, 4922 or OEM </div> <div> equivalents described above within the promotional   period for a new Customer participating in the Digital Home </div> <div> Plan.                      </div> <bR> <div> <B>Chargeback rule</B>:   2700/2800 Equipment Reimbursement will be reclaimed on accounts that are not active </div> <div>   with qualified programming for thirty (30) consecutive days after the initial activation date.    In addition, the</div> <div>  Activation commission for the installation of an additional receiver ($40)  will have a chargeback time period of </div> <div> thirty (30) days as well.</div> <bR> <div> <B>A/O-IP</B>:  A $25 installation incentive shall be paid (at the time of  activation) to Retail Dealers who  perform a basic </div> <div> professional installation of an Echosphere Model 3822/3922/4922 or OEM    equivalent (as a primary receiver) in</div> <div>  conjunction with an Echosphere Model 2700/2800 or    OEM equivalent within the promotional period for a new</div> <div>  Customer  participating the  Digital Home Plan.           </div> <bR> <div> <B>Monthly Fee:</B>     $35.99 monthly charge (plus the corresponding cost of selected international programming if  </div> <div> applicable) for one receiver and America's Top 100 CD or DISH Latino Dos programming.   Customer can choose</div> <div>  a one or two-receiver system, add a $5 additional outlet fee to the  Monthly fee.</div> <div>          OR</div> <div>  $44.99 monthly charge (plus corresponding cost of selected international programming if    applicable) for one</div> <div>  receiver and America's Top 150 programming.  Customer can choose a   one or two receiver system.  If customer</div> <div>  chooses a two-receiver system, add a $5 additional  outlet fee to the Monthly Fee.  The monthly fee is billed (plus</div> <div>  applicable sales tax) to the   customer for the duration of the Digital Home Plan Commitment (12 consecutive months), </div> <div>  and any month-to-month continuations thereafter.  This fee covers the eligible equipment,   qualified programming</div> <div>  and the In-Home Service Program.</div> <bR> <div> <B>Requirements</B>:   The new account must be by a new Customer who can qualify with a major credit card.  </div> <div> Customer selects 1) desired programming package (AT100/DISH Latino Dos or AT150),  and 2) number of</div> <div>  receivers needed (1 or 2).</div> <bR> <div> <B>Definitions:</B>  (Applicable to all Digital Home Plans)</div> <bR> <div> <B>Activation Fee</B>:    (Also defined as the Upfront Fee) is a $49.99 payment (plus applicable sales tax)  paid </div> <div> to the  Retail Dealer by the new Customer for the activation (with qualified programming) and   installation of </div> <div> eligible equipment (one or two receiver systems) during the promotional  period for a new Customer participating</div> <div>  in any of the Digital Home Plans described above.  This fee shall cover the costs associated with the installation</div> <div>  of the eligible equipment, DISH  500 antenna, and the first applicable Monthly Fee owed by the Customer.  </div> <div> This fee is nonrefundable.  The Retail Dealer shall not be required to remit the first applicable Digital  Home </div> <div> Plan Fee to the Programming Provider, but the Customer will receive a credit from  the appropriate Programming</div> <div>  Provider on their first billing statement.</div> <bR> <div> <B>Cancellation Fee</B>:    A $240.00 charge, will be imposed on the Customer, if their subscription to qualified </div> <div>  programming is downgraded or their service is disconnected for any   reason after expiration   of the 30-day</div> <div>  satisfaction guarantee but before the end of  the Digital Home Plan  Commitment.   If the Customer fails to </div> <div> return eligible equipment as required after a  cancellation, the Customer will be subject to equipment </div> <div> Replacement Costs.</div> <bR> <div> <B>Customer Agreement</B>:    A document provided to the Customer detailing the complete Terms and Conditions</div> <div>  of the  relevant Digital Home Plan and the In-Home Service Program.</div> <bR> <div> <B>Digital Home Plan Commitment</B>:     Is for  twelve (12) consecutive months commencing at the time of initial </div> <div> activation.</div> <bR> <div> <B>In-Home Service Program</B>:    Is a program to provide telephone and on-site assistance to restore system </div> <div> operations after  service interruptions, on-site repair of defects in the workmanship of the standard professional </div> <div> installation provided under the Digital Home Plans described above, and  replacement of defective equipment </div> <div> provided  under such Digital Home Plan through the shipment of  replacement equipment or an on-site service call.</div> <div>   See the terms and conditions set forth in the Customer Agreement. </div> <bR> <div> <B>Installation Options</B>:      Standard professional installation of the eligible equipment and DISH 500 antenna. </div> <div>  Note: All installations must be completed in strict accordance with the guidelines set forth in the  AFE's </div> <div> Installation Manual.  Retail Dealers who perform substandard installations, shall be subjected to a fee equal </div> <div> to all costs and expenses incurred by or on behalf of AFE or any of its Affiliates, arising out of or in connection</div> <div>  with substandard installations.</div> <bR> <div> <B>Promotional Period</B>:     February 1, 2001, until March 31, 2001.</div> <bR> <div> <B>Replacement Costs:</B>     If the Customer  fails to return the eligible equipment, smart cards, remote controls</div> <div>  and all  other equipment in good operating condition, normal wear and tear excepted, to: (1) the Retail Dealer</div> <div>  within thirty (30) days after any downgrade or deactivation occurring after  expiration of the thirty (30)-day</div> <div>  satisfaction guarantee, then the customer will be subject to  Replacement Cost which include $299 for a </div> <div> 4922 system, or $199 for a 3822 or 3922  system, and $99 for an additional receiver (2700 or 2800) if applicable.</div> <bR> <div> <B>Satisfaction Guarantee</B>:   If within the first thirty (30) days following initial activation, the Customer is dissatisfied</div> <div>  for  any reason, they may contact AFE's Affiliate under the Digital Home Plan, DISH Network,  to deactivate</div> <div>  programming and return the eligible equipment, smart cards, remote controls  and all other equipment, in good</div> <div>  operating condition, to the Retail Dealer.  The Customer shall not be subject to any Cancellation Fees.  However,</div> <div>  the Activation Fee and any  additional   installation costs are nonrefundable and the customer may be liable for</div> <div>  payment of the Replacement Cost if the equipment is not returned to the Retail Dealer.</div> <bR> <div> <B>UHF Upgrade Fee</B>:      Customer has the option of purchasing a UHF Upgrade for their primary receiver </div> <div> at a  cost of $49.99 payable to the Retail Dealer at the time of installation.  This is accomplished by  installing </div> <div> a UHF adapter or by installing an Echosphere model 4922 as the primary receiver.   If  this option is selected, the</div> <div>  Activation Fee would become $99.99, instead of  $49.99.</div> <bR> <div> <B>Retail Dealer</B>:    </div> <div>      </div> <div>      Retail Dealers will be eligible for incentives on activation (with qualified programming) and installation of eligible</div> <div>  equipment for a new Customer participating in the Digital Home Plan as described above.  Installation and activation </div> <div> with qualified programming, must occur between February 1, 2001, and March 31, 2001.  US residential accounts </div> <div> only.  Each first time activation will be verified as "new" during the specified promotional period.  Retail Dealer must</div> <div>  send the executed claim form to AFE within 7 days after initial activation.       </div> <bR> <div>      Prior to installation the Retail Dealer must confirm that the customer has a valid, major credit card (Visa,  </div> <div> Mastercard, Discover, AMEX).  The name and address associated with the major credit card must match the</div> <div>  name and address of the customer and the name and address on the customer's account and AFE the Affiliate</div> <div>  Home Plan Claim Form (please note that the Digital Home Plan Claim Form will be used for International Digital</div> <div>  Home Plan claims as well).  To validate the credit card, the Retail Dealer must fax to AFE the appropriate form</div> <div>  at (615) 859-9490.  AFE will qualify the Retail Dealer's prospective Customer and advise Retail Dealer of that </div> <div> prospective Customer's approval or rejection.  AFE will provide the Retail Dealer, by facsimile transmission, all </div> <div> appropriate Digital Home Plan Claim Forms.  Retail Dealer will be required to enter the Customer's name, address,</div> <div>  (including street, city, state, Zip Code, and county), telephone number, credit card type, credit card number </div> <div> and expiration date on AFE Form DBR-1002.2/01.  Once AFE has validated the prospective Customer's credit</div> <div>  card, AFE will generate the appropriate Digital Home Plan Claim Form to be printed and signed  by the prospective</div> <div>  Customer at the time of installation.  These claims must be postmarked no later that April 1, 2001, to be eligible</div> <div>  for equipment reimbursements and activation payments.  After installation AFE will query the Provider's claim</div> <div>  form and enter the CA ID number (R00...) for the applicable receiver(s).  It is important that the Retail Dealer</div> <div>  furnishes AFE this information after the installation is complete, to ensure that the Retail Dealer is able to</div> <div>  install the receiver he/she originally intended for this prospective Customer.  The receiver information entered </div> <div> on the claim form will be automatically downloaded to the appropriate Provider each night.  Retail Dealer must</div> <div>  provide the prospective Customer with a copy of the fully completed claim form that has been signed by the </div> <div> Customer and with a copy of the Customer Agreement.</div> <div>      </div> <bR> <div> Retail Dealers shall be responsible for collecting a $49.99 Activation Fee (for one or two receiver installation) </div> <div> from the Customer at the time of installation  (Note:  Retail Dealers are expressly prohibited from paying the</div> <div>  $49.99 Activation Fee on behalf of the customer).  Retail Dealers participating in the Digital Home Plan Program </div> <div> shall be required to honor the Satisfaction Guarantee.  Retail Dealers will be responsible for performing the </div> <div> Installation Services and honoring the In-Home Service Program for thirty (30) days following the initial activation.</div> <div>   Activation Fees will be reclaimed from Retail Dealers who fail to honor the Satisfaction Guarantee and/or fail </div> <div> to honor the In-Home Service Program for thirty (30) days following initial activation.  Commissions paid at</div> <div>  the time of reactivation on equipment recovered under this Satisfaction Guarantee will be paid to the original</div> <div>  Retail Dealer of record only.  Commission eligibility for any receiver reactivated  under this promotion will be </div> <div> determined by the Business Rules governing each commission and promotional payment.  For example, </div> <div> if the flex payment was not reclaimed on the original Subscriber, this receiver will not be eligible for another</div> <div>  flex payment, and so on.  Retail Dealer must check with AFE Dealer Services to determine the prior payment</div> <div>  history and future commission eligibility.  After the Satisfaction Guarantee has expired, all eligible equipment </div> <div> will be the property of  the appropriate Programming Provider.</div> <bR> <bR> <div> <B>Customer:</B>  </div> <div>  </div> <div> New Customers are eligible to receive eligible equipment, a Professional Installation, and the appropriate </div> <div> Provider's In-Home Service Plan for a Monthly Fee (plus applicable sales tax) due and payable to that Provider</div> <div>  during the applicable Digital Home Plan Commitment.  The Customer will be required to pay a minimum Activation</div> <div>  Fee in the amount of $49.99 (plus applicable sales tax) for any one or two receiver system installation.  This fee</div> <div>  is payable to the Retail Dealer  and includes payment of the first applicable Monthly Fee and the Activation Fee.</div> <div>      </div> <div> Customer must activate qualified programming between February 1, 2001, and March 31, 2001.  Programming</div> <div>  must be maintained for twelve (12) consecutive months.</div> <bR> <div> Professional Installation is limited to standard professional installation of the eligible Echosphere Model(s) and a</div> <div>  DISH 500 antenna.</div> <div>      </div> <div> Customers may upgrade to two-receiver systems or downgrade to a one-receiver system during the thirty (30) day</div> <div>  Satisfaction Guarantee period by calling  1-800-333-DISH.  If the Customer adds a receiver, a $5 additional outlet fee</div> <div>  will be added to their Monthly Fee.</div> <bR> <div> If within the first thirty (30) days following initial activation, the Customer is dissatisfied for any reason, the Customer</div> <div>  may contact the Programming Provider to deactivate their programming and return the eligible equipment, smart cards, </div> <div> remote controls and all other equipment in good operating condition to the Retail Dealer.  The Customer shall not be </div> <div> subjected to any Cancellation Fees.  However, the Activation Fee is nonrefundable and the Customer may be liable for</div> <div>  payment of the Replacement Costs.</div> <bR> <div> Upon expiration of the Digital Home Plan Commitment, the Customer will automatically continue on a month-to-month </div> <div> basis under the terms of the applicable Digital Home Plan.  In the event the Customer desires to disconnect service and </div> <div> return the eligible equipment, a prepaid shipping box will be provided to the Customer by appropriate Provider.  Eligible</div> <div>  equipment must be returned within thirty (30) days following the disconnection of service to avoid the applicable</div> <div> Replacement Costs.</div> <bR> <div> The Customer, upon execution of the applicable Provider's Digital Home Plan Claim Form, acknowledges that they</div> <div> have agreed to the Terms and Conditions of the Customer Agreement and that in the event of default during the Digital</div> <div>  Home Plan Commitment (seasonal or hard disconnect, payment delinquency, and/or downgrading from the qualified</div> <div>  programming package, etc.), a Cancellation Fee of $240 will be charged to the Customer's Account with the Provider </div> <div> and/or the Customer's credit card.  If a Customer's subscription to qualified programming is downgraded or </div> <div> disconnected for any reason at any time and the Customer fails to return the eligible equipment, smart cards, remote </div> <div> controls, and all other equipment in good operating condition to:  (1) the Retail Dealer within thirty (30) days after any </div> <div> deactivation occurring during the thirty (30) day satisfaction guarantee, or (2) Programming Provider within thirty (30) </div> <div> days after any downgrade or deactivation occurring after expiration of the thirty (30) day satisfaction guarantee, the </div> <div> applicable Replacement Costs will be charged to the Customer's account with the Provider and/or the Customer's </div> <div> credit card.  If the Customer does not submit payment of either fee in a timely manner, the Customer will be reported </div> <div> to credit agencies as determined appropriate by the Provider.</div> <bR> <div> The Customer authorizes AFE and the Provider to investigate the financial responsibility and credit worthiness, </div> <div> including, without limitation, acquiring credit reports and histories.  Procurement and validation of the Customer's </div> <div> original signature is the sole responsibility of the Retail Dealer.</div> <bR> <div> <B>The Digital Home Plan Claim Form</B>:</div> <bR> <div>      Simply complete Digital Home Plan Claim Form.  <B><U>Customer's name and address must appear on the claim </U></B></div> <div> <B><U>form and must match the name and address  on the Provider's account.</U></B>  All claims must be postmarked no later </div> <div> than April 7, 2001, to be eligible.</div> <bR> <div>      Mail Claims to: </div> <div>                </div> <DIV ALIGN="LEFT"></DIV> <div>      <B> </B><FONT SIZE="2" COLOR="#0099FF" FACE="Arial" ><B>America's Family Entertainment, Inc.</B></FONT></div> <div> <B>      Dealer Services</B></div> <div> <B>      P. O.  Box 1778</B></div> <div> <B>     Goodlettsville, TN 37070-1778</B></div> <div>      </div> <div> Note:  To ensure that claim forms are received and processed in a timely manner the Retailer Dealer is to utilize </div> <div> the P. O. Box noted above of the U. S. Postal Service, including U. S. Mail overnight delivery.  For Non-United </div> <div> States Mail Service delivery, i.e.;  Federal Express, United Parcel Service (UPS) and etc., ship packages to: </div> <div>  America's Family Entertainment, Inc., 310 McCoin Drive-Rear, Goodlettsville, TN 37072.                                                                           </div> <bR> <div> All commission payments for Provider systems will continue to be paid in accordance with the existing commission</div> <div> structure and applicable Business Rules and are only available to new Customers who have not previously subscribed</div> <div>  to the initial Provider's programming.    Each receiver and household is limited to one promotional payment or promotional</div> <div>  offer.  Customers who activate under any other promotion are not qualified to participate in the Digital Home Plan.</div> <bR> <div> <B>RETAIL DEALER</B>:  Falsification of forms provided under this promotion, the misrepresentation of the terms of this promotion</div> <div>  to Customers and/or the failure to disclose material terms of this promotion to consumers may be deemed as fraud under </div> <div> your Retail Dealer Agreement.  Breaches and/or defaults of your obligations under these Business Rules may be deemed</div> <div>  breaches and/or defaults under your Retail Dealer Agreement. </div> <DIV ALIGN="LEFT"></DIV> <div>  <FONT SIZE="2" COLOR="#FF0000" FACE="Arial" >Promotional business rules are subject to change without notice</FONT></div> <bR> </BODY>