american spirit media Lu: January 5, 2018 Ms. Linda Burakoff Vice President, Content Programming Entertainment Group 2260 E. Imperial Hwy El Segundo, CA 90245 Dear Ms. Burakoff: The General Managers at my FOX affiliates in Wilmington, Jackson, and Lake Charles were all kind enough to pass along your recent letters on to me. As an initial matter, I question why you would send those letters directly to the stations when you know full well that I, along with American Spirit?s outside counsel, are handling retransmission consent negotiations for the stations. I would request going forward that you maintain the appropriate channels of communication expected in any good faith negotiation, I also ?nd it interesting, but disingenuous, as to how you characterize WSFX, WDBD, and American Spirit Media in your letters. You did get a couple of things right, however. Of course, DirectTV and U?Ver?se have always wanted to keep providing WSFX, WDBD and KVHP to its customers during our retransmission consent negotiations as our programming is among the most popular programming channels you provide to your many paying customers. As you know, the costs for all programming, but especially hi ghmdemand sports programming like the NFL, continues to increase both for the networks and for all af?liates, like WSFX, WDBD and KVHP. FOX, along with all of my FOX affiliates have paid, in advance, for the rights to provide the NFL to Wilmington, Jackson and Lake Charles area viewers (along with our viewers in Columbus and Toledo), and in fact we are providing that programming, for free over the air to our viewers. I also, after many successful negotiations, provide that programming to cable and satellite companies who wish to sell such popular programming to their customers at a handsome pro?t. I have agreements with all of your competitors, not only in Wilmington, Jackson and Lake Charles, but also in all the other television markets around the country where DirectTV and U- Verse operate. In the last four months I have just concluded retransmission negotiations with 37 of your competitors. In no other situation was an agreement unable to be reached. 2131 Ayrsley Town Boulevard, Suite 300. Charlotte. NC 28273 I t: {980} 297?7085 f: [704] 643~4482 e: Ms. Linda Burakoff January 5, 2017 Page 2 In an effort to confuse your customers, who are understandably quite frustrated with us both, you falsely assert in your letter that American Spirit continues this ?deliberate? blackout. Nothing could be further from the truth. As you well know, if American Spirit deliberately wished for this ?blackout? for whatever reason you might claim, I would not have agreed to the numerous extensions in our continued efforts to reach a reasonable agreement. I had no idea that you would stop negotiating with me while your representative took a 19 day vacation. At least your representative is back and we are now talking again. As I told your representative on -. Wednesday, I really hope we can make a deal that makes sense to both and American Spirit. I really don?t understand why this is so hard for since information from the publicly traded broadcasters makes it clear that is paying other FOX af?liates in comparably sized markets and my competitors in Wilmington, Jackson and Lake Charles more than I am even asking for. If you are truly concerned about delivering the programming of WSFX, WDBD and KVHP to your subscribers, I urge you to quickly come back to the table with a reasonable offer for carriage of American Spirit?s stations on terms comparable to those agreed to by all of your competitors. Very truly yours, Thomas B. Henson President CEO