SURRGE - TERMS OF SERVICE & USE

Reward Policies

A. OWNER PAYMENTS: If any audio-only recording, audio-visual recording, (collectively "Recording(s)") or artist-related merchandise ("Merchandise") an Owner (as defined in the Membership Policy which can be viewed at www.surrge.com/legal/memberPolicy.jsp) submits is purchased by a User, Company will pay Owner the below percentage of Net Revenue. "Net Revenue" means the gross sales price less any deductions Company is required to make by law, including, but not limited to sales tax:
          * TYPE OF MATERIAL
          * AUDIO-ONLY RECORDING: OWNER PERCENTAGE = 60%
          * AUDIO-VISUAL RECORDING: OWNER PERCENTAGE = 60%
          * SURRGE-PRODUCED AUDIO-ONLY RECORDING: OWNER PERCENTAGE = 50%
          * SURRGE-PRODUCED AUDIO-VISUAL RECORDING: OWNER PERCENTAGE = 50%
          * MERCHANDISE: OWNER PERCENTAGE TO BE DETERMINED
Owner payments are initiated following the second full calendar month after any recording is made available on www.surrge.com for purchase. Assuming the receipt by Company of Revenue from downloaded Recordings, payments are made first day of each Calendar month to Owner for Net Revenue of previous month assuming that a minimum Owner account balance is equal to at least twenty dollars ($20.00).
B. REFERRAL PAYMENTS: If any Recording(s) or Merchandise a Listener (as defined in the Membership Policy which can be viewed at www.surrge.com/legal/memberPolicy.jsp) refers is purchased by a User, Company will pay Listener the below percentage of Net Revenue:
          * MEMBER TYPE
          * LISTENER: PERCENTAGE: 10%
If any Recording(s) or Merchandise is purchased by a User, direct from an Owner (as defined in the Membership Policy which can be viewed at www.surrge.com/legal/memberPolicy.jsp), Company will pay Owner the below percentage of Net Revenue:
            * MEMBER TYPE
            * OWNER: PERCENTAGE 10%
C. SCOUT PAYMENTS: A User who seeks out new artists ("Scout") for Company and is accredited by Owner will be paid one percent (1%) of Net Revenue.
D. VARIABLE COMPENSATION: An artist that selects their Recording(s) to be made available, as part of the VARIABLE REWARDS feature selection will be paid a variable percentage for the first 100 referral purchases of Variable Reward Referrals (“Variable Reward Referrals”). Variable Reward Referral percentages and payments will be adjusted for said Variable Reward Recording(s).
If any Recording(s) or Merchandise is purchased by a User, from a referral (as defined in the Membership Policy which can be viewed at www.surrge.com/legal/memberPolicy.jsp), Company will pay Owner and User the below percentage of Net Revenue:

Purchases        Owner Percentage         User Percentage
0-20                             20%                             50%
21-30                           30%                             40%
31-50                           40%                             30%
51-100                         50%                             20%
101 and up                   60%                             10%
E. STORAGE FEES: An initial one-time storage fee ("Storage Fee") of no greater than Four Dollars (4.00) per individual recording will be deducted from the Net Revenue. For the sake of clarity, the Provider Payment is 70% of the Sales Revenue after the Listing Fee for each individual recording sold on the Site is deducted from the Net Revenue.

F. MEMBERSHIP REWARD POINTS: TO BE DETERMINED
          * MEMBER TYPE
          * ACTIVITY
          * REWARD POINTS
          * OWNER
          * LISTENER