The Letter of Resolution from James B. Miller

June 26, 2002

Mr. and Mrs. Kenneth Innes
 
Redding, CA 96002

Re:       Account #

Dear Mr. and Mrs. Innes,

I am advised that you reached an agreement with our local office to resolve your disputes with Pacesetter. As I understand that agreement, Pacesetter agrees to reduce your contract balance by $2,800.00 and to delete from your order the delivery and installation of a garage door.

In accordance with that agreement, Pacesetter has issued a credit to your account in the amount of $3,800.00. Your contract payment terms remain unchanged otherwise. However, obviously your contract balance will pay off sooner as a result of this credit. You should nevertheless continue to make your scheduled monthly payments.

Feel free to contact me should you have any questions in this regard.

Very truly yours,


James B. Miller
General Counsel

JBM:sc

cc:      Customer Service
Federal Diversified Services
4405 So. 96 St.
Omaha, NE 68127




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