LIST MANAGEMENT PROPOSAL

Dear Prospective Client:

The following is our List Management Proposal.

5-Star Lists, Inc. provides direct mail and e-mail list research, brokering, and management services to direct marketers nationwide. The company manages and brokers mailing lists in a variety of major industry categories such as:

• Book, Tape, & Video Buyers
• Business Firms and Executives
• Children, Teenagers, Men and Women
• Health Care and Health Education
• Magazines & Newsletters
• New Age, Religion, & Psychology
• Opportunity Seekers

Most importantly, we would appreciate the opportunity to market your company or organization's mailing list(s).

LIST MANAGEMENT PROGRAM

Upon receipt of your company's mailing list (preferably on a PC-compatible computer diskette, or by email), along with a legend describing the characteristics of your list, we will accomplish the following:

1. Secure your list in our service bureau. The service bureau will assign each name in your file with an ID number, which will flag each use of any names on your list. (The service bureau will also dedupe and organize your file by gender and geographic selects to help process list rental order fulfillment.)
   
   
2. Prepare marketing materials such a datacard, postcard, and a press release describing the characteristics of your list.
   
   
3. Promote your list to hundreds of list brokers and direct marketers worldwide.

RENTAL FEES AND COSTS

Lists rentals prices typically range from $75 to $150 per thousand names ($/M). Net income, however, varies, as there are commissions provided to list brokers, and discounts for fundraisers, repeat sales and large-volume orders.

You (or your company or organization) will be paid seventy percent (70%) of all net income received by 5-Star Lists for the rental of your mailing list, less a $10 per thousand names processed service bureau fee.

5-Star Lists, Inc. will pay all costs associated with the management (marketing, processing, billing, collections, etc.) of your list. You will have none of the costs for these services billed to you.

5-Star Lists, Inc., however, is not liable for uncollectible revenues caused by disputes, non-payment, bankruptcies, etc.

SERVICE BUREAU CONSIDERATIONS

To keep your file active and current, you should routinely send to us your complete, updated list - monthly, quarterly, or as often as possible. The service bureau will then purge the old list from the system.

Updated lists rent more frequently, so please keep your list clean and deliverable.

The service bureau can also provide you with labels, mag tapes, e-mail, or computer diskettes of your own list at nominal costs - to cover computer running charges, shipping, etc.

MARKETING LEAD TIME

Please keep in mind that it will take some time to get your list into the industry's marketing channels - and most mailers will initially test only small quantities of your file.

However, if the list works well, you can count on repeat sales over the long term.

MARKETING MATERIALS AND LEGENDS

In order for us to be able to properly market your list, you will also need to send to us samples of your marketing materials -- catalogs, brochures, etc., that were used to develop your mailing list. This will help us to produce promotional information to market your list.

Most important, we will need a legend, which provides the detailed characteristics of your list. Ideally, the legend will include any titles, selects, dates (names were entered and/or last purchase), average order size, etc.

WHERE WE GO FROM HERE

Thank you for your consideration. We would very much look forward to working with you and to marketing your company's mailing list.

If these arrangements are satisfactory with you, please click here for our List Management Agreement.

Sincerely,
David M. Hawthorne
President and Chief Executive Officer

Telephone:
641-472-2332

FAX: 641-472-5729

Address:
508 N. Second St.
Suite #203
Fairfield, IA 52556

• Click here for our List Management Agreement.