Fididel on Line

Standard Fees and Commissions

The Pricing Schedule was last updated 4-29-08.

Introduction

Fididel has created a fee structure that is designed to give sellers a great value for Fididel services and its online market place.

The Fididel service provides a platform for a seller to negotiate price and volume with online buyers in a real time format. The service also provides a global network of people (we call them Fididelers) for the seller to use as outsource negotiators.

General fee structure and Payment Terms

Fididel's fee structure is primarily based on a success fee. We may in the future introduce a type of listing fee that will address

aging inventory. However, in our first mover seller program there will be no such aging fees for a minimum period of Six months. As mentioned Fididel will maintain a very competitive fee structure that will predominantly be based on a sales success fee which creates an environment for a win-win between the seller and Fididel.

Sellers are required to pay Fididel its transaction fees when the Buyer or Seller clicks the "I Agree Button". Fees are due and

payable on the first day of every month. In addition, Sellers will have a credit limit that provides a maximum dollar amount of transaction fees that a Seller is allowed to accumulate before paying Fididel. Independent of the first of the month payment, Sellers will have to stay within their credit limit. If the account exceeds the credit limit Sellers must pay immediately to keep their account active. Failure to pay may result in the suspension of the seller account until payment is made.

Seller direct negotiation fees

If a seller does the negotiation themselves (Do-It-Yourself) they will pay a success fee as a percentage of the actual selling price,

the percentage depends on which price range the item falls within (see Exhibit A). In general the success fee percentage decreases as the price range of the item goes up.

Exhibit A.

	Seller Do-It-Yourself Negotiation
Selling Price	Fee
Less than $10	8.00%
Less than $50	7.50%
Less than $100	5.50%
Less than $250	3.50%
Less than $500	3.50%
Less than $750	3.00%
Less than $1,000	3.00%
Less than $5,000	1.50%
Less than $10,000	1.40%
Less than $20,000	1.20%
Less than $100,000	1.00%
Less than $150,000	0.90%
Greater than $150,000	Contact Fididel

Online market place

It is important to note that if the seller is not available to negotiate Fididel will automatically transfer the negotiation to a Fidideler.

This is a crucial element to the Fididel user experience since buyers will be using Fididel for the real time experience and anything less than this will result in a dissatisfied buyer. We also of course have established this capability to assist our sellers in scaling their business on Fididel and providing 7 by 24 hour services to the seller's buyers.

Fidideler fee structure

Fididel asks its sellers to establish an asking price and a floor price. The asking price is the price the seller starts the initial

negotiation from; the floor price is the minimum price the seller is willing to take for an item. The difference of the asking price and the floor price establishes the negotiation range for an item.

This range is established so that a Fidideler, who is assigned as the negotiator, is able to negotiate on behalf of the seller

whenever the seller chooses or is not available. A minimum success fee is charged the seller whenever they negotiate a transaction and a slightly higher minimum fee is charged when a Fidideler does the negotiation.

When a Fidideler is doing the negotiation for a seller Fididel provides a mechanism to incent the Fidideler to try to get the best

possible price for the item. The way that Fididel does this is by providing the seller with 3 adjustable commission levels within the range established by the floor and asking price. The 3 separate and equal ranges are called the low, mid and high ranges. An example case for a $100 asking price and a $70 floor price can be seen in Exhibit B.

Exhibit B.

The seller can establish a commission scale of increasing percentages to properly incent the Fidideler to get the highest price

possible. The seller may adjust the commission percentages in these categories as they see fit as long as they stay above the Fidideler Minimum Fee, see Exhibit C. The strategy for selecting the commission tiers is up to the seller, however, to make it easier for sellers to get started Fididel provides a default commission structure across all three categories as shown in Exhibit C. A seller can start with this default commission structure and then as business dictates modify some of the commission tiers as they become familiar with the Fididel market place.

When a negotiation is consummated by either the seller or buyer by hitting the accept key the success fee will be charged to

the seller's account and payment is made from the seller to Fididel through a variety of methods such as credit card, ACH transfer, Pay Pal, check, etc. The standard default commission structure is outlined below in Exhibit C. The low range commission is fixed and is a required percentage commission to Fididel. The other two commission ranges (Mid & High) are adjustable by the seller.

Exhibit C.

	Low Range	Mid Range	High Range
Selling Price	Minimum Fee with Fidideler	Suggested Best Practice	Suggested Best Practice
Less than $10	8.50%	13.00%	18.00%
Less than $50	8.00%	12.00%	16.00%
Less than $100	6.00%	7.00%	10.00%
Less than $250	4.00%	5.50%	7.00%
Less than $500	4.00%	5.50%	6.00%
Less than $750	3.50%	4.00%	5.00%
Less than $1,000	3.50%	4.00%	4.50%
Less than $5,000	2.00%	2.50%	3.00%
Less than $10,000	1.60%	1.80%	2.00%
Less than $20,000	1.40%	1.60%	1.80%
Less than $100,000	1.10%	1.30%	1.55%
Less than $150,000	1.00%	1.30%	1.50%
Greater than $150,000	Contact Fididel

Note: Fididel reserves the right to change its fee structure from time to time.

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