Management

Dear Prospective Client:

Thank you for your interest in our services. The following is our List Management Proposal.

HR Direct, Inc. is a direct marketing company specializing in direct mail. We provide mailing list research, brokering, and management services to a variety of mailers and direct marketers.

We would appreciate the opportunity to market your company or organization’s mailing list(s).

Currently, HR Direct, Inc. manages almost fifty (50) separate customer mailing lists — representing approximately four million names in the following categories:

Health Care & Health Care Education

Human Resources Management & Training

Business Executives and Entrepreneurs

Book, Tape, Video Buyers & Seminar Attendees

Religion, Theology, Psychology & Spirituality

All of the lists we manage are marketed in two ways:

1. As the customer lists of the companies we represent; and, 2. as part of larger databases in joint ventures with other list management companies. These joint venture companies include:

CMG Direct, Inc.

Direct Media, Inc.

Mal Dunn Associates

Pacific Lists, Inc.

Paradysz Matera & Co., Inc.

The List Emporium

Wilson Marketing Goup

Both types of list marketing -- independent and in tandem with other lists -- have value.

In some cases, mailers want to use only well-defined customer lists. In other cases, mailers want to use the various databases for a greater variety of selections, a larger universe, and names de-duped from various lists.

Here is how our list marketing program works:

Upon receipt of your mailing list on computer diskette, (IBM-compatible, comma-delimited ASCII file preferred), together with a legend describing your list’s characteristics, we will accomplish the following:

Secure your list in our service bureau.

Seed your list with decoy names to guard against unauthorized usage.

Assign each name in your file an ID number, which will flag each use of any names on your list.

Write a data card and a press release describing your list characteristics.

Promote your list to list brokers and direct marketers.

Lists rentals prices typically range from $75 to $150 per thousand names. Net income, however, varies: discounts are provided to list brokers, database managers, fundraisers, and for repeat sales and large-volume orders.

You will be paid seventy percent (70%) of all net income received by HR Direct, Inc. for the rental of your mailing list, less a nominal service bureau fee of $10/M for running charges.

HR Direct, Inc. will pay all costs associated with promotion, marketing, billing and collections. You will have none of the costs for these services billed to you.

HR Direct, Inc., however, is not liable for uncollectible revenues caused by disputes, non-payment, bankruptcies, etc.

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

Our service bureau can also provide you with labels, mag tapes, or computer diskettes of your list at a nominal cost (for computer running charges).

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.

Please also send to us samples of your marketing materials -- catalogs, brochures, etc. used to develop your mailing list. This will help us produce promotional information for marketing your list.

We will also need a legend (detailed characteristics) of your list. Ideally, you will be able to provide the any titles, selects, dates (names were entered), average order size, etc.

Thank you for your consideration. We look forward to working with you and to marketing your list(s).

If these arrangements are satisfactory with you, please CLICK HERE FOR OUR LIST MANAGEMENT AGREEMENT.

Sincerely,

David M. Hawthorne

President and Chief Executive Officer