1. Movie Rental, Returns and Payment.
Slackers will deliver to Customer the VHS video tapes and DVDs as described in the package selected on the reverse side. On or before the first day of each month, Slackers shall replace 100% of the movies previously provided to Customer and shall provide Customer with a prepaid shipping label addressed to Slackers for use by Customer to return movies. Upon receipt of replacement titles, Customer shall return to Slackers by the tenth day of the same month the corresponding number of movies in Customers respective package. Failure to return movies by the twentieth day of the same month will result in CustomerÕs account being charged the normal monthly package price but without receiving a new shipment of movies. In short, Slackers views Customer as having requested the same movies as the previous month. Unless otherwise requested by Customer, Slackers shall ensure that no movie title that is kept by Customer will be provided more than once during the first year of this Agreement. On the first day of each month, Slackers will mail Customer with an invoice reflecting selected Program price. All payments to be sent to 122 THF Boulevard Chesterfield Missouri 63005 by Customer to Slackers under this Agreement are due 30 days from the date of the related invoice. If Customer fails to remit payment within 35 days of the date of the related invoice, Customer shall be charged a $20.00 late fee which shall appear on the next invoice. At any time during the term of this Agreement, Customer may select a different Movie Package by providing 30-daysÕ prior written notice of its new selection to Slackers.

2. Term and Termination.
This Agreement shall remain in effect until terminated by either Party in accordance with the terms of this Section 2. Customer shall have the right to terminate this Agreement with or without cause upon 30 days prior written notice. Slackers shall have the right to terminate this Agreement at any time in its sole discretion.

3. Security Deposit.
Customer has paid to Slackers a refundable security deposit in the amount of $100.00 to be held by Slackers, without interest, throughout the term of the agreement. If Customer fails to return to Slackers all movies provided by Slackers within 30 days of termination of this Agreement, Customer will forfeit the entire security deposit to Slackers, and Slackers shall retain all additional rights and remedies regarding return of merchandise and collection.

4. Loss or Damage of Movies.
Slackers guarantees all products to be in working order. Slackers will replace defective goods with another movie. Upon receiving defective goods from customer, prior to receiving defective goods slackers must be notified and returned goods must clearly be labeled. SlackerÕs further guarantees that all product is in good visible condition; ÒFree from excessive scratches. Customer shall be responsible for any lost or damaged VHS or DVD movies. If any movie provided by Slackers to Customer is lost or damaged, Customer shall pay the following replacement fees:
Type of Movie Fee
VHS $8.00
DVD $12.00
DVD New Release
Missing Box / Artwork $20.00/$5.00

5. Advertisement and Rental Documentation. If requested, Slackers will provide to Customer standard advertisements of the service to be distributed to residents / guests of Customer. If requested, Slackers will also provide Customer with a standard rental form or check out log, rental cards, and display shelving for use by Customer. Slackers retains all creative rights and production control over these advertisements and forms. For an additional charge, Slackers will customize advertisements and forms for Customer.

6. Ownership of Movies. Customer acknowledges that all movies provided by Slackers to Customer shall at all times be the sole and exclusive property of Slackers and nothing contained herein shall affect such ownership rights. Customer shall have no rights or property interest therein, except for the right to use the movies in accordance with the terms and conditions of this Agreement.

7. Copyright Matters and Indemnification.
All of movies delivered pursuant to this Agreement are subject to copyright protection and are being delivered solely for the private use of CustomerÕs guests and/or residents. Customer agrees to abide by all conditions and limitations of use for copyrighted material in accordance with applicable US copyright laws and regulations as amended from time to time. Customer shall not copy or duplicate the movies in any manner (or permit others to do so), whether by electronic means or otherwise, nor shall Customer transmit or otherwise publicly display the contents of any of the movies delivered by Slackers to Customer.
Customer shall provide notice to each tenant / guest containing the following text: ÒThe video tapes and/or DVDs rented or loaned to you by _________________________ are authorized solely for private viewing in your apartment / hotel room / dormitory room / camper / recreational vehicle (circle one). Do not copy the video tape and/or DVD, transmit or display the contents of the video tape and/or DVD outside of your apartment / hotel room / dormitory room / camper / recreational vehicle (circle one), or otherwise publicly display the contents of the video tape and/or DVD.Ó
Customer agrees to hold harmless and indemnify Slackers, its agents and employees against all claims, losses, liabilities and damages, and to pay all claims, judgments, awards, costs and expenses, including attorneysÕ fees, which Slackers may become liable to pay arising out of the breach of Section 7 by Customer, its affiliates, agents, employees, residents and/or guests.

8. Claims & Limitations of Liability.
The total liability of Slackers, on any and all claims (in the aggregate and not individually), whether in contract, warranty, or otherwise, arising out of, connected with, or resulting from the performance or non-performance of any agreement resulting herefrom or from the delivery, supply or use of any movies furnished pursuant to this Agreement, shall not exceed the total fees paid by Customer under this Agreement.

9. Governing Law.
This Agreement shall be governed by, and constructed in accordance with, the law of the State of Missouri applicable to contracts to be carried out wholly within such State.

10. Assignment; Binding Effect.
Neither Party may assign this Agreement, or any right or obligation hereunder, to any other Party without the prior written consent of the other Party. This Agreement will be binding upon and be for the benefit of the Parties and their respective successors and permitted assigns.

11. Severability.
Should any provision of this Agreement be found to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions contained in this Agreement will not be affected or impaired.

12. Entire Agreement.
This Agreement and all exhibits attached hereto contain the entire agreement between the Parties with respect to the subject matter of this Agreement and supersedes all prior arrangements, agreements, or understandings with respect to such matters. No course of prior dealings and no usage of trade will be relevant to supplement or explain any terms used in this Agreement.

13. Force Majeure.
The Parties shall not be liable for non-performance under this Agreement due directly or indirectly to (a) government interference or embargo, war, hostilities, blockade, requisition of vessels, port congestion, strikes, sabotage, riots, civil commotions, insurrection, or (b) acts of God, plague or other epidemics, destruction of goods by fire or flood, obstruction of loading by storm or typhoon or tidal wave at the port of delivery, and other contingencies or accidents beyond the control of the Parties, which may affect performance under this Agreement. In the event of any of the aforementioned causes arising, documents proving its occurrence or existence shall be submitted to the other Party without undue delay.