Complaint Review: AppliancesBuyPhone.com - Steven I. Sigman A/k/a Steven Armstrong - Jackson New Jersey

-----Original Message----- From: Raj B Lonsane [mailto:[email protected]] Sent: Sunday, January 14, 2007 09:41 To: ACE - Subject: Re: Accounts Richard, I have all the MTCN statements for 2005. I have to hand over the complete accounts and documents tomorrow to the financer's Chartered accountants and let them analyze it. 1) Stevens payment is taken as $8000 only. ( Note: if we are doing Stevens site, you can keep the 30% commission on the $8000 that you receved PLUS the outstanding amount of $3801.63 totaling $6201.63. ) AFTER THIS RAJ B. LONSANE OF MINDWARE SOFTWARE SOLUTIONS, (P), LTD. WENT TO SIGMAN AND TOLD HIM THAT INDIA NEVER GOT ANY OF THE MONEYS SIGMAN PAID US. HERE YOU HAVE HIS EMAIL AGREEING THAT: 1) FUNDS WERE OWED SINCE 2005 IN ARREARS BECAUSE MINDWARE COULD NOT PAY ITS BILLS (DUE TO CONTSTANT PRODUCTION PROBLEMS, DELAYS AND STORES THAT ARE STILL NOT SEEN WELL ON THE WEB SEARCH ENGINES) 2) THAT WE WERE PAID FOR PART OF THOSE MONEYS BY THE SIGMAN DEPOSIT WHICH CAME IN SHORT. 3) LONSANE AND SIGMAN ARE NOW WORKING IN CAHOOTS BEHIND OUR BACK SO WE EXPECT NOTHING BUT BACK STABBING LIES AND CHEATING WHILE THEY LICK EACH OTHER'S WOUNDS. 4) LONSANE CALLED TO STATE THAT THE FBI IS CALLING HIM ABOUT THE RIP-OFF REPORT -- CAN YOU IMAGINE? THE DEPARMENT OF JUSTICE CALLING ABOUT A RIP-OFF REPORT? WHAT A JOKE! =============================================================== MORE TO COME

-----Original Message----- From: Raj B Lonsane [mailto:[email protected]] Sent: Sunday, January 14, 2007 09:41 To: ACE - Subject: Re: Accounts Richard, I have all the MTCN statements for 2005. I have to hand over the complete accounts and documents tomorrow to the financer's Chartered accountants and let them analyze it. 1) Stevens payment is taken as $8000 only. ( Note: if we are doing Stevens site, you can keep the 30% commission on the $8000 that you receved PLUS the outstanding amount of $3801.63 totaling $6201.63. ) AFTER THIS RAJ B. LONSANE OF MINDWARE SOFTWARE SOLUTIONS, (P), LTD. WENT TO SIGMAN AND TOLD HIM THAT INDIA NEVER GOT ANY OF THE MONEYS SIGMAN PAID US. HERE YOU HAVE HIS EMAIL AGREEING THAT: 1) FUNDS WERE OWED SINCE 2005 IN ARREARS BECAUSE MINDWARE COULD NOT PAY ITS BILLS (DUE TO CONTSTANT PRODUCTION PROBLEMS, DELAYS AND STORES THAT ARE STILL NOT SEEN WELL ON THE WEB SEARCH ENGINES) 2) THAT WE WERE PAID FOR PART OF THOSE MONEYS BY THE SIGMAN DEPOSIT WHICH CAME IN SHORT. 3) LONSANE AND SIGMAN ARE NOW WORKING IN CAHOOTS BEHIND OUR BACK SO WE EXPECT NOTHING BUT BACK STABBING LIES AND CHEATING WHILE THEY LICK EACH OTHER'S WOUNDS. 4) LONSANE CALLED TO STATE THAT THE FBI IS CALLING HIM ABOUT THE RIP-OFF REPORT -- CAN YOU IMAGINE? THE DEPARMENT OF JUSTICE CALLING ABOUT A RIP-OFF REPORT? WHAT A JOKE! =============================================================== MORE TO COME

Just as we suspected, Sigman went behind our back and began dealing directly with the vendors in India. Be careful with Indian companies, first of all their work is inferior to American work nowadays. Furthermore they are becoming very greedy. Here Sigman a/k/a Armstrong went to Raj B. Lonsane of Mindware Software Solutions (P), Ltd. behind our back and they are now conspiring together. Original bill was changed at least three times by Sigman to get more and more free work. After he decided to cancel this order we brought him Accrisoft as stated above. He insisted on coming back to DyanShoppe so the price quoted to us by Mindware for the DynaShoppe was $18,000 complete. We were willing to throw in extra work but he had to pay for the first phase and we billed him for additional work as instructed by Raj B. Lonsane of Mindware. Once we called to get paid on the bill of 2-28-07 Raj changed his tune after speaking directly with Sigman who told him he did not want to hear from my company (Richard in Rego Park) and began dealing with Raj behind our back in a conspiracy to defraud us. September 6, 2006 Steven Sigman President AppliancesBuyPhone, Inc. 3 Devonshire Way Jackson, NJ 08527 Re: We will do all the listed services on this letter agreement URL for work product deployment www.appliancebuyphone.com Breakdown of next payment in the amount of $16,140.00, which is due on: 9/1/2006 Term Sheet for Services to be Rendered for AppliancesBuyPhone, Inc. Maintenance Data and IT $9,600.00 Maintenance Deposit $4,800.00 DynaShoppe Installation $15,000.00 DynaShoppe Deposit Due $7,500.00 SEO Annual Maintenance $20,800.00 Cross Selling Deposit Free Review Item Total Review Item Deposit Free Hosting Monthly $69.99 Hosting Annualized $840.00 3rd Party Net Terms Up front payment 3rd Party Vendor Payment Due $3,000.00 Deposit Received Current Balance Due $12,300.00 Deposit Due Date 9/1/2006 Gross Deposit Due $16,140.00 Next Pay Due Date 9/1/2006 Total Deposit $16,140.00 ............................................................... MEMORANDUM To: Steven I. Sigman, President AppliancesBuyPhone, Inc. From: Richard H. Akerman, Technologist Real Time, LLC Subject: Honesty in action not just words Date: Tuesday, March 06, 2007 Message: I could not reach you this evening you did not pick up the phone Be advised that I tried several times to reach you as per our prior discussion. You cannot assume that you have the right to contact Raj directly as you did with GoEcart. Doing an end run and contacting people's resources directly is termed an unfair business advantage' under the law. We have a right to be protected from clients who do this. And remember ALL YOUR DEALINGS WERE WITH US, that is why you chased after Real Time demanding refunds NOT Mindware. We are not in business to provide contacts and business resources to our clients or prospective clients free. The fact that we have not pursued our claim for work, labor and services does not preclude our doing so. We gave you the benefit of the doubt and at the end of the day, by dealing with Raj who has a compulsion to give away the store you got the better of him. So in the spirit of trusting you at your word that you are a straight shooter and all that good stuff, please call me in the morning to discuss what needs to happen to finalize this matter. We want to have peace with you, but a peace that benefits all not just you. I told you fifty times that vcommerce sells a platform like this for 150,000 250,000 and frankly you are too small for them to even do business with you. Granted that theirs is a more stable platform in time and clientele nevertheless, you have a pretty good rendition of a professional site compared to that abortion you still run. You have NO idea how many people steer clear of your site because it is so horrid. We brought you to DynaShoppe and thus any benefit that comes from that relationship has to inure to Real Time, LLC. So let us see just how honest the devil' is after that pontification the other day about honesty and straight dealings. Or something else remember that the Ebishter is the ultimate Witness so nothing gets by Him. [Sigman called making threats of violence and saying he is the devil] ............................................................... Re: Cost of additional customized code is $5,000 and is heavily discounted Hello Steven, We have received a quote from Mindware Software Solutions' DynaShoppe for the additional customization required by your business model. The entire site ready to launch with products uploaded as a turnkey operation is as follows: 1. Balance due on DynaShoppe site is $7,000 2. It is discounted $3,000 for you 3. The entire project without the new customization therefore is billable at $15,000 4. The current balance upon delivery for the basic store is $7,000 after your credit of $8,000 5. At the present time we charge $18,000 for the DynaShoppe stores so we reiterate that you are receiving a $3,000 discount over the customary price 6. The new custom code you requested will be available to your for $5,000 7. The overall balance due and owing upon completion of the scope of work and work product is therefore $12,000 We look forward to your timely reply so that we may know how to proceed. Once this site is up and running you can rest assured yours will be one of the top Web sites in your industry Worldwide without a doubt. Our engineers have reviewed the www.vcommerce.com platform and they found it lacking, particularly at the going rate of $150,000 for the site. Keep in mind they charge $5,000 to $10,000 per month for hosting and service plan! Remember that you need to provide the SSL for the site, that the monthly hosting is $49.95 and a separate email account on a different server to avoid hacking, spam issues and server/store hijacking is available here for your review: https://www.securepaynet.net/gdshop/email.asp?prog_id=412131&ci=1795& Alternatively, you could use an email account wherever you want. We do not as a matter of policy permit our clients to have their email and the store in the same server for security issues. Mindware has secured the required financing and the new Board of Directors includes captains of industry in India so rest assured that you are in the best of hands. Kindly confirm your receipt of this mail and your decision on the matter of additional code to be written. We billed at the lowest possible cost for the scope of work and intellectual property work product. Please review the mock-design for your new store here: http://dynashoppe.com/dynadesigns/appliancesbuyphone/ Let us know your thoughts, particularly your final approval of the same. Of course if you need any changes we will implement them after discussing the pros and cons of such ideas with you at the earliest. With regard to the HTTPS issues, we will do whatever you require at no additional cost to you. Richard +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ AFTER AUTHORIZING AND DICTATING THE BILLING FIGURES RAJ LONSANE OF MINDWARE THEN CHANGED HIS TUNE WHEN WE REPORTED THIS MATTER TO THE BAD BUSINESS BUREAU AND TOLD ME YESTERDAY 4-27-07 THAT HE DID NOT AUTHORIZE IT. HOWEVER WE COPIED HIM ON EVERY SINGLE MAIL SENT TO CLIENTS SO HE KNEW PERFECTLY WELL THAT THOSE WERE THE NUMBERS HE TOLD US TO SUBMIT FOR APPROVAL. LONSANE HAS A DRINKING PROBLEM DUE TO HIS INABILITY TO RUN A BUSINESS PROPERLY. DESPITE HIS TALENT AND VIABLE TECHNOLOGY HE LOSES EMPLOYEES AND HENCE HAS NOT BEEN ABLE TO DELIVER TO CLIENTS LISTED ON THE WWW.DYNASHOPPE.COM/INFO/CLIENTS.HTM SITE. NOTE THAT EVERY SINGLE CLIENT THERE WAS SECURED BY OUR FIRM NOT ONE CLIENT SHOWN THERE CAME FROM ANY OTHER SOURCE SINCE 2005 WHEN THE PRODUCT WAS LAUNCHED. LONSANE HAS BEEN LYING ABOUT STOCK SHARES AND RAN A BASICALLY ANEMIC BUSINESS AND CONTINUES TO DO SO TO DATE. HE IS PARANOID AND WHEN CONFRONTED BY ANY CLIENT WISHING TO STEAL FREE WORK HE CAVES IN... THUS HE LOST MOST OF HIS GOOD ENGINEERS DUE TO NON-TIMELY PAYMENT OF SALARIES AND FEES. WE LOST OVER THIRTY THOUSAND DOLLARS WITH HIM AND MY FAMILY SENT OVER 21000 WHICH WE WILL DOCUMENT IN A SEPARATE REPORT FILED AGAINST MINDWARE SOON. NOT ONE PIECE OF TECHNOLOGY WAS EVER DELIVERED FOR THE 21000 WE SENT HIM. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Good day, I must first state that when we discussed the DynaShoppe I was 100% certain that Raj was at the throes of receiving long awaited funding and that is why I was sold on the product. As you know Steven, we terminated our relationship with Mr. Lonsane's virtually bankrupt company based on his statement that he lost two key people and that he AGAIN could not meet payroll. He again stated to me that 5 million dollars was coming in (last week or the week before that) which apparently never happened. I again stupidly bought his stories and called you on the phone to discuss this moribund product. For that I apologize and hope you can forgive an honest guy who got suckered by an unscrupulous individual that just won't go away! Furthermore, I was at the bank in Forest Hills ready to wire the entire amount received from your American Express transaction about a week after you authorized it. I turned back and called Raj to tell him I was no longer comfortable moving forward since his stories about financing kept moving back from month to month. We incurred about a thousand dollars of long distance billings while speaking with his so called financiers. We are stuck with that also and had to pay it. The evidence that Lonsane's idiotic email terminating Real Time is just another of his opportunistic lies is attached here. Before going into defensive polemics which I wanted to avoid but must do, know that this "outsourcing to India" that has become so prevalent will turn back and the business will return to the States. The pendulum has already begun to swing back. In any event even companies such as Accenture (Anderson Consulting reborn) and others are originally from the US and moved operations to India in addition to their home offices in Boston and other cities only to save money. Granted that unions have not ruined India yet but give it time. I for one only deal with American companies at the present time, and will continue on this track because I know that: India is becoming greedy and the financial incentive to do business there is evaporating quickly Western Union no longer allows Indians to receive money via debit or credit card (rampant fraud there) You can only send $399 a month total via debit or credit card to India Fraud there is rampant as evidenced by Western Union's posture Indians are great at copying but not very clever at inventing lately (albeit they invented chess and algebra) There is something wrong with a history that allowed 150,000 Britons to rule over 350 million Indians until 50 years ago I called and wrote to the Indian consulate and they have not replied despite two phone messages and two emails -- apparently complaints are keeping them busy nowadays Government corruption and abject poverty in the land makes it a dangerous place to do business The main reason for doing business in India was financial and that is evaporating quickly Greed is making that land just as expensive lately as the States so who needs India? Now, in addition to lies, Lonsane has refused to pay any money towards the near $8,000 he agreed was due us as of the end of 2005. For the umpteenth time I mention that my parents sent him about $20,000 in cash which he gave zero product in return. They live on Social Security and are in trouble because of this so I am under pressure to make up for lost time and moneys. Lonsane threatened legal action for months now and all we want is for him and his company to find a place to lie down and die. He wants to sue because we want to get paid, go figure!? Lou Zaccardi, a Scarsdale businessman who was with Deloitte Touche Tohmatsu (http://en.wikipedia.org/wiki/Deloitte_Touche_Tohmatsu) as a Senior Consultant paid $18,000 and he called me yesterday to say he would rather lose the funds forever than deal with Raj when I asked him to support any effort we made to get paid our sales commissions. Not to mention that we paid for Raj's phone bills and equipment, the man has lost it and forgot who buttered his bread. Lou also said after reviewing the DynaShoppe site that nothing material has changed. Raj could not even put an online questionnaire up for me which we have at www.metatran.com and I did in about three hours! It is totally dynamic and generates email reports along with a page confirmation on the Web -- he could not get this done with his "teams". Lou stated that he warned Raj not to press every client we approached, who was quoted one price at first and later, when Raj was hungry for money (to pay for extravagant offices he never should have opened without a business plan or proper cash flow projections) was accosted to pay for what was to be "free" work that had been done for them. What is worse, is most of them were told that what they contracted for was not X amount more than they agreed. I never saw financials from him despite asking to justify to Western Union why we sent tens of thousands of dollars a month there. The Fraud department contacted us and Raj never produced a payroll report so we were not able to send money there. We have contact information regarding this. I was a fool to work with him and even more of a fool to ask my family to help out when Raj convinced us that for $12,000 (which later became $70,000) he could build a platform that he now claims cost over a million dollars. Our project was scuttled when he borrowed money to begin the DynaShoppe so my fixed income parents are suffering greatly since their son was foolish enough to trust this fraud named Lonsane. We paid money and all we have is stories that the cost went up and therefore we did not receive an iota of code NONE. Now you have received enough valid product information to know that in this industry products such as the DynaShoppe abound, of course Lonsane thinks he reinvented the wheel. Not one of the clients is using 360 degree views because it is impractical for them to have to take a myriad of pictures to populate a site when products change at times repeatedly within a year. The comparison module has been proposed to the number one platform on the planet, and since it can be done with AJAX which is open source code they are considering it. Raj created that software after we asked him to do so for Cafe Maison (which has now closed their site and lost the code for the Virtual Advisor they paid $11,500 for -- due to Raj's inability to pay for a server at Superb.Net who shut the server down and deleted the client's code). I will not write any further on this matter and trust that you know Lonsane is lying based on his email begging for more money and asking Real Time to again do free research work. You could if you wished, call every client and find out what they experienced with Lonsane. Drimmers Housewares spoke with me before Rosh Hashanah and stated they were talking to Sharon Hanassab of Discount Jungle about a class action suit. Now it is apparent that Lonsane's sable rattling is nothing more than more thievery where by claiming they terminated our arrangement, which in fact we terminated months ago is being done for the purpose of keeping from paying any moneys due. I'll tell you more, I wrote virtually every agreement used to bring in business, including the Revenue Share agreement, which to date has not brought one client a penny. Lonsane has a problem with alcohol and I think that is why in the evening (his time) he is one person and come morning he is depressed and irrational. A friend (which is what all my clients were before dealing with Lonsane) who is an electronics engineer, owner of Sound City, Inc. in New Jersey called me yesterday and (he told me to leave Raj and get going with earning a living long ago offering me a position in a new store as manager) said not to do press releases or chase after Raj because at the end of the day I will never see a penny. He also said I should not throw good energy after bad. The owner of The Shoe House, Inc. and associated companies bought four stores from us, paid for two and some custom code -- at the end he said keep the money just go away, we cannot expend more time and energy and the project was a fiasco for them. Lonsane is a desperate man, who forgot that when his first child was born, I was the one that sent money on time for him to pay the hospital. He also forgot that stupidly his mother was about to go under the knife, when I became enraged that for a hip (minor) fracture that should heal on its own; Raj and his family had approved surgery in a few hours for the woman. I contacted the top surgeon in India who spoke with Raj and advised him not to go through with the surgery. He said bed rest and loss of weight is what the woman needed. After all this, my becoming disabled (which you saw in a doctor's letter) not getting paid virtually at all this year and a substantial amount for last year; Lonsane now twists the facts to fit his desperado mode of survival of the cheatest. I know that you see through all this nonsense and trust that we will build you a store with technology that runs tens of thousands of sites -- not three or four live stores where clients have lost faith in the product -- and as discussed you will pay only what we charge anybody now which is multiples of times less than this guy with zero marketing savvy refused to do. We told him charge little for the work product, anyway you live off loans. That way sales would have become enough over time to create a groundswell. Since Raj cannot win by being honest he wrote insulting lies about me and my company to you, including that we are in court with clients, that we took money and did not deliver, that I was into extortion in the collections field. Apparently this idiot never researched the Wall Street Journal which quoted me in 1992, or the article (two pages spread) in New York Newsday praising me for using computers to run a miniature office on Fifth Avenue and 34th Street, or the Philadelphia Inquirer article parroting the WSJ one. Lonsane is a sick man who needs professional help. He has zero morals and will do anything to get by. I was warned by my Rav's wife who is a friend, that Indians will sell their own mother and are known cheaters and liars. She asked me to drop Raj long ago telling me how do I know where all the money we sent is going. Western Union forbade Lonsane from receiving funds because he cheated Lou Zaccardi and Yehuda Hadari who filed complaints with the authorities. My eldest son who is an intern for the president of Pfizer every summer while an honors student at Queens College said two things, first that Raj would be okay if he delivered half of what he says he can do, and two that he is an alcoholic so I should stop doing business with him. I never listened because I believed the lies Lonsane told me about getting shares in the company (a company that I built along with him every step of the way until I even suffered a herniated disk on my neck) and that the product was ready for prime time. Now Drimmers' statement from Motty that they were considering a class action suit with www.discountjungle.net is what pushed me over the edge to quit this charade. So instead of doing what works, Raj not only robbed my family by getting money and not delivering anything other than lying emails, but he robbed me of fees justly earned. He is now attempting to ruin my relationship with you because he has no morals and is a vindictive thank god this is a world with enough out there for everyone. I sent him a note after Kamel of Sound City told me to lose Raj and move on that I would not release information to the press or the government because I do not expect him to ever pay me anyhow... after that he wrote that lying nasty email to you once again stating that they terminated me when you know full well that I ended the relationship which is how you knew of it in the first place. The man has zero scruples and I know that the Creator of the Universe has something in store for him, which is what Lou Zaccardi and Kamel Yassin said to me yesterday. These men appreciate what I did for them over the years and both of them told me to lose Raj long ago. I did not listen because the first time I quit doing business with Raj, he called all my clients and told them he would now deal with them. Virtually every one called me and said who is this guy and why does he think we are disloyal. We do not want to speak with him -- I even heard from a major prospect in Chicago that she was appalled that Raj and his cohort another loser named Hadari would call to announce they now will take over the relationship. I resent having to write this note in defense of my pain and suffering on top of monetary losses, but I feel in necessary not to allow this lying lowlife to trick yet another unsuspecting victim. I know that you are sharp enough and careful enough not to put your business in the hands of someone of Raj's ilk so at the end of the day I hope he vanishes back into the hole he crawled out of. Now my intentions are to let sleeping dogs lie, however if this character persists in his actions we will be forced to revive the case in the hands of the United States Secret Service and release this information to the press to prevent Lonsane from defrauding others. I hope he goes away so we can concentrate on real business not dreams. Furthermore, as stated you are too wise and experienced to fall for this ruse after seeing that first, Real Time terminated its relationship with the lying cheating Lonsane nearly two months ago. Since then we received numerous emails asking for accounting that was done in detail and presented for this year -- he begged me not to take our fees and send virtually all the funds to India -- which again I was foolish enough to do and put myself and my family at great risk. I have blacklisted this character not to see any further emails from him since most of what he writes are fantasies, I know he will not stop though, because he has an illness that can only be cured by death. I will not copy him on this note because he will NEVER go away if I keep feeding the flames, so instead of selling new clients he wants to destroy me after robbing time and money? Wishing you all the best, NOW DESPITE ALL THE ABOVE WARNINGS SIGMAN STILL INSISTED ON RETURNING TO THE DYNASHOPPE -- WE TOLD HIM THEY HAD ONLY A HANDFUL OF STORES AND THEY WERE NOT SELLING VOLUME BY ANY MEANS. You be the judge... +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ HERE IS THE EARLIEST BILLING STATEMENT AFTER DOZENS OF MEETINGS ON THE TELEPHONE WITH THIS CHARACTER SIGMAN NEE ARMSTRONG. Rego Park, NY 11374 www.dynashoppe.com August 22, 2006 Steven Sigman AppliancesBuyPhone, Inc. 3 Devonshire Way Jackson, NJ 08527 Re: eTail Site and Business Process Management Dear Steven: Before you review this detailed material let me state that developing your answers to the questionnaire and any other in depth information requests and requirements need NOT hamper the beginning of this project going forward. The point is that all we need from you right now is a confirmation that we are going ahead with this project, three or four Web sites we can use as a guide for your design and you can then take some time to develop the nuances of the way you want this store built. So let us move ahead without delay we can show you a completed first draft of the store look and feel within 48 hours from the moment you wire funds. Please call me when you receive this letter to discuss the issue of payment which we left up in the air the last time we spoke. We propose to become your information technology vendor, supplier, consultant and trusted advisors. You have your attorneys, your accountants, your bankers now you can have your IT team at your service. Included with this document is the data we have on record for this project. Would you please review and enter any items you consider important? Sincerely, Richard Rego Park, NY 11374 August 22, 2006 Steven Sigman Principal AppliancesBuyPhone, Inc. 3 Devonshire Way Jackson, NJ 08527 Re: AppliancesBuyPhone, Inc.'s www.appliancebuyphone.com Payment now due: $12,500.00 due on: 8/23/2006 Total balance due and owing: $25,000.00 plus hosting also item upload per diem per item charges Deposit of $12,500.00 due on 8/23/2006 Additional scope of work amount due on Additional Work Date Due Hosting details: Annualized hosting fee is $840 Upgrades are free There is also no service fee for 24/7 technical support Hosting amount due (annualized): $840.00, due by 8/23/2006 By outsourcing database and site maintenance to Mindware you can concentrate your staff's efforts on more important things, which enhance your business' core competencies. Payments are required to be transferred electronically by ACH/EFT (Wire) We sincerely value your business and the mutually beneficial relationship we continue to nurture. As always we are here 24/7 to assist you with anything you require. Remember that the DynaShoppe has data driven levels of functionality and modules that can return sales conversions not available with any other platform on the planet today. Sincerely, Richard Service Level Agreement For Business Process Management Information Technology & Internet Marketing www.DynaShoppe.com Service Level Agreement to outsource data entry, ecommerce information technology systems with the items outlined below to fit the information technology, online marketing and advertising needs of AppliancesBuyPhone, Inc.'s www.appliancebuyphone.com Here is what we have on file: Steven Sigman AppliancesBuyPhone, Inc. 3 Devonshire Way Jackson, NJ 08527 _________________________________________________________________________ This memorializes our solution for AppliancesBuyPhone, Inc. at the instance and request of Steven Sigman; to take information technology matters out of your hands and onto our Business Process Management services. This includes a service offering that all image uploads to your site handled by Real Time/Mindware. This is the URL on record and where the work product will be implemented unless you notify us upon receipt of this letter: www.appliancebuyphone.com These are the brand names you want us to gather and compile data from please enter the companies you want us to get in contact with: General Electric GE Monogram Amana Whirlpool Maytag Frigidaire LG Kitchenaid 1. You do NOT wish to communicate directly with manufacturers a. Regarding the data upload b. or any other such issue relating to content c. our companies will handle direct communication with the manufacturer in our name 2. As a matter of course a. we will not mention your name to the manufacturer i. unless you approve of this in writing 3. We will upload a. Images b. Data c. Specification Sheets (i.e.: when available as PDF) i. The system will be able to receive ii. and upload CSVs iii. other spreadsheet formats 4. You need to make the model or SKU number on CSVs match a. Image name to simplify uploads 5. It can handle video and audio that you record if you wish 6. Many file formats can be easily uploaded such as Flash 7. Synchronization with QuickBooks 8. Product Bundler Module 9. Automated Auctions 10. Export feeds to EBay 11. Price Grabber 12. Bizrate 13. Froogle and others 14. For shoe businesses: RICS a. AJAX based Instant Product Finder b. AJAX based online salesman 15. Automated Reviews 16. 5 levels of Wholesalers 17. A very advanced and fully automated order management system and ... 18. Customization is FREE The DynaShoppe search engine optimizer software is an additional module for the Web store and it is yours forever included in this proposal for the total cost listed here. The software produces organic -- NOT pay per click -- high rank on the search engines for as many as 25% or more of your products. This search engine optimization and ranking improvement system optimizes all item pages, one by one, on all levels (primary, secondary, tertiary, etc.). One button and the entire site is optimized: 1. This new software we engineered designed and developed automatically does the job. 2. Please look at: www.dynashoppe.com/info/clients.htm These client sites show some samples of our work: After years of research using some of the top minds in India Mindware Software engineered the DynaShoppe o a total Web sales solution engineered to o enable you to manage your site's content and to optimize it page by page o without the need to know HTML code or any other language o You no longer have to hire a search engine optimizer at thousands of dollars per week o Pay per click is good but hard to monitor and costly o Organic SEO is the best long term investment o Advertise and promotion for your site. Advantages of DynaShoppe Technology: 1) DynaShoppe reduces development and ownership cost a) It comes loaded with ALL the functionality that you would ever want b) Customizations to fit your business model i) No charge for development and integration of these 2) DynaShoppe is designed to: a) Reduce store management overhead by over 75% b) DynaShoppe eliminates the need for a huge team i) Anyone can manage and maintain the store ii) Anyone, even a person with limited knowledge of computers or coding languages or technology is able to run a successful ecommerce operation with ease Having just a great eStore is NOT enough -- how will shoppers find you? DynaShoppe offers a variety of marketing tools including o an easy to use intelligent Search Engine Optimizer Module o Eliminate cost of thousands a month on search engine optimization o Why pay per click? Have visitors find you on the basis of your site's content not PPC! o Avoid wasting 30% for possibly fraudulent clicks Have a completely paperless ecommerce store o Everything handled automatically o Learn this system in about one hour that is how simple it is to understand and operate o Don't waste time concentrating on anything but your core competencies We will take over all your IT headaches please see our proposed cost basis below: Item Description Cost Choose Extension DynaShoppe One time charge $15,000 $15,000 $15,000 Search Engine Optimizer module without daily service to retain high rank on Google and other search engines One time charge for the software, we load entire store data onto it free. Service agreement is $2,000 per month payable in advance upon completion of the store. $10,000 $10,000 $10,000 DynaShoppe Setup (Recommended) Includes perpetual store management of items and descriptions. Copyrighted material is owned by you. Research Manufacturers for Images and Content for upload with out copyrighted material. Extension shows total due on four thousand items basis. $3.75 $15,000 DynaShoppe Setup per Item: Economy Rate Simple cut and paste of items and descriptions with authority provided by your company. Once we do the initial store setup with copyrighted information our rates will revert to this level. $2.00 $8,000 DynaShoppe and SEO Module = Total $25,000 The total agreed amount for this project? It is defined by your budgetary considerations. $15,000 for the DynaShoppe o Ready to roll out site o We contact manufacturers as stated above  You have no contact with the manufacturers unless you so choose  We will NOT use your company name or any other identifier when seeking to compile the data  We will keep you informed of our progress $10,000 for the Search Engine Optimizer module one time charge and you own the software o Free training if you want to hire people on site o We can give you a $2,000 per month agreement to save you tens of thousands in pay per click costs over time  We will need about 120 days to show marked results that will save on PPC and increase sales measurably ITEM UPLOADS CHARGED BY THE ACTUAL ITEM o We bill for what we actually do and you pay for what you use only o $2.00 per item if we have a site to go to and simply cut and paste information, images and any other data see below for additional more comprehensive rate structures.  Once we set up your site the first time a lot of recurring charges can be diminished by using this cut and paste method going forward  We are confident that we will be able to keep your costs down  For additional cross selling on item pages (people who bought this also bought that related merchandise offering) o $3.75 per item if we have to contact the manufacturers  This is a discounted rate and it will cost us more than we are charging you for this service so we need to reserve the right to resell the data  This costing method will not apply when manufacturers direct us to cut and paste off their site  This costing method will not apply when a manufacturer provides CDs to simplify data uploads. o $5.00 per item will include the following:  Customer reviews for each item (highly recommended) as a shopper would do them  Cross selling of items (this helps you sell significantly more in related items) set up on the item pages people who bought that also bought this If you choose the $5.00 per item level the data will be copyrighted to you and we will not resell the data as you have it. We suggest this method at least at first to get the reviews done properly which also helps you rank high on the search engines. Once you approve our proposed solution and the work is implemented, if you wish to make changes then our billable time is charged at $55.00 per hour, significantly less than our rivals charge. We have NO hidden costs. We will prepare a billing statement of account once you approve the service level agreement with all its details as shown above. Yours truly, Richard Appendix A Available Data on File Please fill in missing data you consider helpful and/or correct any errors COMPANY APPLIANCESBUYPHONE, INC. Point of Contact Steven Sigman Title Principal Address 1 3 Devonshire Way City Jackson State NJ Zip 08527 Country United States of America Phone 888-828-3302 Phone Ext. Fax 866-876-1606 Fax Ext. Alt Mobile Mobile Phone 732-598-1780 Last Results We spoke earlier today and you asked me to call you at 8PM which I did. Please call me when you receive this? Thank you! Referred By GoDaddy sponsored listing Work Product Custom DynaShoppe ITEM upload service level agreement ongoing with per item charges depending on the service requested -- cross selling, customer reviews, bulleted item lists, tables, PDF uploads, video and audio uploads are available at nominal cost. Color Schemes Design team will decide and suggest color schemes based on Web sites submitted by You Business Type Home appliances Special Instructions ITEM upload and special treatment is included in this agreement for a custom DynaShoppe Automated Web Store and Search Engine Optimizer software deployment. Ongoing SEO service is a separate agreement. Design Option Advanced Redesign (logo, corporate image enhancement). SEM We have engineered a technology enabling you to manage your DynaShoppe's content and to optimize it page by page, without the need to know HTML code. This optimizes all item pages, one by one, on all levels (primary, secondary, tertiary, etc.). INCLUDED. First Name Steven Last Name Sigman Web Site www.appliancebuyphone.com Department Administration Next Activity I tried reaching you for our teleconference and was unable to make contact. We scheduled the telephone meeting around this time and I left word for you. Would you please call me at the telephone number shown below? Thanks! Run Time 9/22/2005 Comp Site 1 Important Information AppliancesBuyPhone sells discount appliances in the New York, Connecticut, New Jersey, and Philadelphia area. We carry Whirlpool appliances, GE appliances, Frigidaire appliances, and all other major brands Launch 10/10/2006 Items 4500 Pay Gateway If you require a payment gateway we are authorized resellers for merchant account companies that set up your Authorize.net gateway. Google, PayPal and any other method is included with our payment gateway and system in the DynaShoppe. 2nd Fax 2nd Mobile Activity Code A high end custom DynaShoppe designed and implemented to replace your current Web site ecommerce platform. The search engine optimizer is included in this service level agreement as is the additional cost for that search engine placement software module. Additional SOW due Additional SOW Business process management fees are negotiable and very low cost, for initial setup and ongoing maintenance. For product upload when custom setup is needed, we charge $5.00 per item. Our rivals charge between $40 to $99 per hour! Call or write to us. Additional SOW Cost Additional SOW Total Additional Specs The acquisition cost of the DynaShoppe is less than any other platform over the long haul. YOU WILL NEVER NEED TO SPEND MONEY ON IT COSTS ONCE WE SET UP AND DEPLOY YOUR STORE. Additional Specs B Flash overtones are available at no additional cost for your DynaShoppe deployment. Additional Specs C The DynaShoppe looks great, increases comfort level for the visitor and sales conversions for your company. It is ahead of any other platform in America today, in terms of automation, order management and functionality, this we guarantee! Balance Due $25,000.00 Best Time 9:00 AM - Midnight E.S.T., 7 days a week Check Fax Client Level High Comp Site 2 Comp Site 3 Comp Site Client Added Current Balance $25,000.00 DS Version Hosted DynaShoppe solution. Established Financing or Payment Plans Two payments, half down when we go to contract and half upon completion. Hosting Actual $249.95 per month Hosting Annual $840.00 = $69.99 per month Hosting Details Annualized hosting fee is $840, it is heavily discounted at $69.99 / month; upgrades are included gratis. There is also no service fee for 24/7 technical support and service response for emails is 24 hours; emergencies are done via phone anytime. Hosting Discount From 249.95 to 69.99 per month Hosting Due Date 8/23/2006 Hosting Monthly $69.99 Image Upload We will contact manufacturers and secure authorized images or provide you w Next Pay Amount $12,500.00 Next Pay Due Date 8/23/2006 Note Client offers free shipping nationwide, at their discretion with regard to the method of transportation. Paid to Date $0.00 Per Diem Due 8/28/2006 after store is set up Per Diem Retainer $5,000.00 Personal Email Philosophy Retailer online with low prices and top service. REFERENCE By outsourcing database and site maintenance to Mindware you can concentrate your staff's efforts on more important things, which enhance your business' core competencies. Keep in mind we handle everything including image photography when necessary. --------------------------------------------------------------- AGAIN THIS MATTER IS IN THE HANDS OF THE ATTORNEYS GENERAL OF NEW YORK AND NEW JERSEY AND OUR COUNSEL IN NEW YORK CITY. MORE TO COME...