Internetsecure Inc. is a Canadian company providing secure, on-line real-time transaction processing from merchant web sites. In addition, we are approved by three of the top 6 Canadian banks( Scotiabank, National Bank and Bank of Montreal) to offer merchant status for Visa and Mastercard directly to Internet merchants. We have been in production for the past 13 months, processing thousands of transactions per month for our merchants from consumers/business's in over 92 countries. During the past year over 63.23% of purchasers are from the United States, 26.83% from Canada and 9.94% from "Other countries".

More importantly, from our merchants point of view, our special risk management/fraud detection software has been very sucessful in preventing fraudulent transactions. In real-time, we have rejected 23% of all

transactions presented to our merchants based on duplicate entries, keying errors and mischievous activity ensuring our merchants only deal with valid orders. For all merchants (electronic and physical delivery), the chargeback % is only 0.22% (1 order out of every 461 approved orders). This compares with an average 4% to 25% chargeback rate for typical telephone/mail order/internet merchants.

No software or hardware or secure server is required on the merchants web site to access our service, only a simple hyperlink button. For further information about our services, check our web site at www.internetsecure.com

Once you have been approved by InternetSecure, we will give you Canadian dollar Merchant Status for MasterCard/Visa and/or US dollar Merchant status for Visa. We are working on getting US Mastercard status in the next few months. In the past, 84% of transactions are Visa and 16% are Mastercard.

As a Internetsecure Merchant, you will be able to sell in both Canadian and US dollars which will then be converted into the currency of your consumer's country when it shows up on their Credit Card Statement as "YOUR COMPANY NAME via INTERNETSECURE".

All monies are deposited into Trustee Bank Accounts and then dispursed electronically into your Canadian Bank Account for CDN dollars at no charge and via cheque/wire transfer for US dollars. Alternatively, the transfer can be made by Wire Transfer or Money Order for International Merchants in which ever currency you wish. There will be a $35.00 Cdn ($25.18 US) charge for Wire Transfers, a $15.00 Cdn ($10.79 US) charge for Money Orders and $2.00 Cdn ($1.44 US) for cheque.

Merchants are paid on the 15th and 30th of each month for revenues earned in the month.

Internetsecure has three merchant options, ( 1.) Canadian Dollar Merchant Status ONLY (2.) both Canadian and US dollar Merchant Status (3.) US Dollar Merchant Status ( ONLY AVAILABLE TO UNITED STATES BASED COMPANIES).

PRICING SUBJECT TO CHANGE WITHOUT NOTICE. Inline has arranged for a $50Cdn discount on the setup fee. Mention this when submitting your application.

(1.) CANADIAN DOLLAR ONLY*

One Time Setup Fee $609.90 Cdn. ($407.00 US)
Monthly Admin Fee $ 72.76 Cdn. (approx $52.00 US)
Per Approved Transaction $ 0.45 Cdn. (approx $0.33 US)
Visa/Mastercard Discount 2.5% to 5%

(2.) CANADIAN AND US DOLLAR*

One Time Setup Fee $877.00 Cdn. ($585.00 US)
Monthly Admin Fee $ 98.00 Cdn. ( $71.00 US)
Per Approved Transaction(CDN) $ 0.45 Cdn. ( $0.33 US)
Per Approved Transaction(US) $ 1.00 Cdn ( $0.71 US)
Visa/Mastercard Discount 2.5% to 5%

(3.) US DOLLAR* (US BASED CO.'S ONLY)

One Time Setup Fee $585.00 US
Monthly Admin Fee $ 52.00 US.
Per Approved Transaction(US) $ 0.55 US
Visa/Mastercard Discount 2.5% to 5%

*In lieu of a merchant security deposit upfront (required by banks) we will withhold 15% of your first three months revenue. After 90 days we will review the number of chargebacks/clear copy requests and monthly revenue to determine whether we require further holdbacks after this period. These monies will then become your security deposit and will be returned to you at the end of your service. There is a $25.00 CDN ($17.98 US) charge for any transaction that is charged back to your merchant number and $5.00 CDN ($3.60 US) for a merchant initiated customer credit.

In order to start the application process we will require an Internetsecure Merchant application completed ( on web site), a copy of a void cheque for the bank accounts you would like the monies to be sent and either a cheque or credit card number for the applicable setup fee. If via credit card, then send fax with your number and signature authorizing us to process. In addition, please give us a user name and password(four to eight letters and/or numbers each) this will enable you access your online merchant sales reports. IF YOUR APPLICATION IS DECLINED YOU WILL RECEIVE YOUR SETUP FEE BACK WITHOUT CHARGE.

If you have any further questions, please contact me at your convenience. If you currently have Canadian or US merchant status for Mail order/Telephone/ Internet, we may be able to use your existing merchant numbers on our system, with your bank's approval. Please contact us for pricing and process which is different than the above pricing.