Client Presentation

FASHLAB

WEBSITE PROPOSAL

Prepared for FashLab, Inc. Steve Brown Vice President of Marketing

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ROOM 500

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Overview Target Audience Competitive Analysis Scope of Work Measuring Success E-Commerce Platform & Hosting Our Process Expenses Schedule Billing plan Legal Terms & Conditions Agreement About Room 500

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01 Overview After an extensive research of current trends and statistics of the US online e-commerce and more importantly, of the fashion industry role in the e-commerce scenario, we came with this study that offers both an overview and recommendations on how to adapt your business to be successful.

We followed a very conservative approach by only looking at information from verified and trusted sources, such as Mintel and Nielsen reports. Some other important sources were major media channels.

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ONLINE SHOPPING LANDSCAPE THE MARKET

Annual US E-commerce sales in USD$ billion

The market of online shopping is steadily increasing in the last years. For 2015, there’s an expected increase of 11.5% in online shopping sales in the US, according to the US Census Bureau and the projections by Mintel. This means more opportunity for revenue, as well as a constantly expanding consumer basis that is more comfortable with online technologies.

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2012

2013

2014

2015*

2016* 2017*

* : Forecast Values Source: US Census Bureau, Annual and Monthly Retail Trade Surveys/Mintel

FASHION E-COMMERCE

US Retail E-commerce Sales, by product category

Fashion is traditionally a retail business, but more and more shoppers look to the online market for better prices, customized products and more variety than in-store. E-commerce empowers clients to research prices and take a better decision at the time of shopping.

17.2% 17% 16.3% 16.2%

According to a recent report by E-Marketer, approximately 17.2% of the E-commerce is of Apparel and Accessories. This means a lot of consumers are relying more on the web to buy clothes and accessories.

15.3% 14.8% 14.2% 9.2%

Another way in which people prefer online shopping is due to innovative customer service. Thus, business should focus their efforts in developing a superb customer service that promotes client satisfaction and loyalty.

9.2% 7.7% Source: E-Marketer, April 2013

Fashlab Proposal | Overview

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OVERVIEW

ONLINE SHOPPING TRENDS MOBILE Mobile apps and websites have significantly changed the way consumers shop, shoppers not only are able to constantly research product information and compare prices, but also the ability to buy anytime, anywhere.

Annual US Mcommerce sales in USD$ billion and as of percentage of retail e-commerce sales.

$113.57 $96.81

Forrester Research projects sales from consumers shopping on mobile phones will increase to $38 billion this year and sales from tablets will hit $76 billion, or about $114 billion in total.

Seamless browsing, saving, and shopping across platforms will be crucial for any business that wants to grow in 2014. Also, the websites should be responsive in order to provide a good experience in different device resolutions, such as desktops, tablets and smartphones.

PERSONALIZATION Consumers want unique, original products and businesses need to be able to deliver that in increasingly creative--and profitable--ways. In 2014 we will see more businesses empower customers with the ability to personalize, modify, or design the products that they want to purchase.

By personalizing products, customers feel they are getting a premium product that it’s tailored specifically for them. Also, it ensures that they can get variety of choice and new items everyday. By personalizing, a company makes a move towards creating a loyal customer basis.

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ROOM 500

$75.00 $56.72 $41.68 $24.78

2012

2013

Retail mcommerce sales

Source: eMarketer

2014

2015

2016

% of retail ecommerce sales

2017

GO SOCIAL Social media is gaining a lot of importance in the online world, and that means in e-commerce too. It empowers users to give feedback, which is very helpful for business to improve and customize the online shopping experience for its customers.

Higher Market Share by Visitor Count

63%

A social feature is also a powerful way to develop an intimate fan base, who use the platform to stop, chat and shop. This engages the clients in a long term relationship with your business, and it makes them come back to shop again.

Recent studies show the correlation between Social Media and E-commerce sales. According to a Shopify study that looked at 37 million social media visits that led to 529,000 orders, the Social Media matters a lot for e-commerce.

The most successful Social Media platforms for e-commerce is Facebook, responsible for 85% of all social sales in shopify websites.

On the other hand, the Social Media platform that generated a higher order value is Polyvore, followed by Instagram.

10.5%8

13%

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Higher Average Order Value

P

$66.75

$65

$58.9

$55

Source: Shopify Social Media Report

FashLab Proposal | Overview

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02 Target Audience FashLab’s target audience consists of creative, fashion-conscious, 18 to 35-years old, male and female, who are looking for unique ways to express themselves through fashion. These women and men are tech-savvy with expectations of fast turnaround times, high-quality products, and trendy designs. They use the site as a social platform to express their love for clothes and also customize the clothes with their own design and follow their favorite artists.

Based on the requirement and analyzing, we found that FashLab is not only a e-commerce platform but also a social media for their target audience to share and express their love for fashion. We did some research about what’s the famous social media for teenagers and young adults, since social media becomes a trend nowadays. We found that for the teenagers, their favorite social media sites are Tumblr, Facebook and Twitter. The young adults like facebook, LinkedIn and Pinterest most. So, we define four different personas of FashLab based on their needs and preferences, including casual shopper, loyal customer, artist and FashLab staff.

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ROOM 500

ONLINE SHOPPERS OVERVIEW

SAVERS

Young online shoppers are tech-savvy and price sensitive, willing to try new and unfamiliar retailers and adept at using their mobile devices to find the best value.

People between 21-34 have an average of online shopping of 52-63%, according to a Nielsen E-commerce report. In this category, we observe three different shopping categories.

SHOPPAHOLICS

Savvy savers are always on the hunt to find the lowest prices. These global shoppers believe they get the best prices online (60%), and they find deals that are better than those offered in the store (54%). They subscribe to product and store emails to stay informed and to save money (54%), and they use price-saving apps or websites when planning a shopping trip (47%) and when in the store (42%). When reaching these consumers, consider pricing and promotion strategies that are competitive with or better than in-store offerings. Offer online coupons and free ship.

Online shopping for these global respondents is convenient (76%) and fun (64%). They like getting email notifications from retailers (46%). As these shoppers represent active online participants, marketers should leverage a full suite of online strategies to keep them engaged.

RESEARCHERS Knowledge is king for these global online shoppers who like to read online reviews prior to purchasing a product (71%). They spend a considerable amount of time researching products before buying (61%). Social media is a helpful tool in reaching these consumers who often connect with friends, family and strangers to help make purchase decisions (43%).

To satisfy their need for knowledge, offer detailed product descriptions and product images.

Posting review forums and product reviews will help to build trust.

FashLab Proposal | Target Audience

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TARGET AUDIENCE Casual Shopper

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Loyal Customer

SANDY

NIKKI

Collage Student, 20 years old San Francisco, CA

Illustrator, 25 years old Portland, Oregon

“I am always looking for some interesting and high-quality shirts from the website.”

“I hope to find something new and interesting product in a fast way.”

Goals

Goals

Search for the interesting and unique clothes. She will be concerned about the quality of the product, the price and reviews from other customers.

To purchase FashLab product in a fast way. She likes to follow the artists she loves and wants to know when they upload their new design. Also concerned about the delivery and shipping process.

Spend time on the Internet

Spend time on the Internet

8 hours per day

5 hours per day

Hobbies

Hobbies

Shopping, surfing online for new trends of clothes.

Shopping on the Internet, drawing, making friends, Yoga

Social Networks

Social Networks

ROOM 500

Artist

FashLab Staff

JOE

JAMES

Graphic Designer, 30 years old New York , NY

Content Reviewer, 28 years old San Francisco, CA

“I want to find a easy widget that I can customize my design in a simple way.”

“I want to save more time when I review the designer’s work in this platform.”

Goals

Goals

Looking for an e-commerce website that can customize their product and the widget need to be easy to use and have more flexibility. Also concerned about the storefront for their own page, how many people buy the product on the FashLab and the reviews.

Save time to approve pending products.

He spends a lot of time doing the inventory management, so he is care about the usability of inventory system and the platform.

Spend time on the Internet

Spend time on the Internet

5 hours per day

8 hours per day

Hobbies

Hobbies

Drawing in the coffee shop, traveling

Watching basketball game, jogging

Social Networks

Social Networks

Fashlab Proposal | Target Audience

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03 Competitive Analysis This competitive analysis section will outline and examine FashLab’s main competitors. You will find a brief analysis of FashLab’s main competitors and their personalization widgets. These competitors are: Etsy, Threadless and District Lines. After each competitor is examined in detail, there is a summary at the end listing the key differences between your competitors and what Room 500 has to offer.

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ROOM 500

FashLab

Etsy

Threadless

District Lines

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INTERFACE CLEAN & PROFESSIONAL GRID SYSTEM CLEAR NAVIGATION SLIDESHOW FEATURING PRODUCTS PRODUCTS CLEAR PRODUCT DESCRIPTION PRODUCT CATEGORY PRODUCT COLOR OPTIONS PRODUCT SIZE OPTIONS SORT PRICE SHOP BY LOCATION FUNCTION CUSTOMIZATION WIDGET RESPONSIVE WEBSITE SHOPPING CART GUEST SHOPPING SHOW SHIPPING & TAX FEE WISHLIST

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SOCIAL LIKE/ADD FAVORITE ADD COMMENTS FOLLOW ARTISTS BLOGGING

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PAYMENT DISPLAY SECURITY PAYMENT LOCAL CURRENCY SINGLE PAGE CHECKOUT

Fashlab Proposal | Competitive Analysis

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COMPETITIVE ANALYSIS COMPETITOR ANALYSIS

Etsy

HTTP://WWW.ETSY.COM/ Etsy is a marketplace where people around the world connect to buy and sell unique goods. Their mission is to re-imagine commerce in ways that build a more fulfilling and lasting world.

Etsy sells a variety of handmade items from jewelery to furniture.

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ETSY PROS

CONS

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Clean and beautiful user interface Good use of typography High quality images Organized sitemap Easy to sign-up

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Hard to find categories Lack of interactive feature No distinct differences between the artist and the buyer.

Not a responsive website

PERSONALIZATION WIDGET • • •

Can select only some options, like color Doesn’t show you the result on screen It lacks interactivity.

Fashlab Proposal | Competitive Analysis

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COMPETITIVE ANALYSIS COMPETITOR ANALYSIS

Threadless

HTTP://THREADLESS.COM/ Threadless is an online community of artists and an e-commerce website based in Chicago, Illinois. They sell t-shirts, art prints and iPhone cases.

Threadless designs are created by and chosen by an online community. Each week, about 1,000 designs are submitted online and are put to a public vote.

After seven days the staff reviews the top-scoring designs. If your design is chosen for print, you’ll get paid and the world gets to buy your art.

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THREADLESS PROS

CONS

• • • • •

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Navigation (specially categories) is clear Very good grid system Very good quality control on the artwork Distinct difference between shoppers and artists Responsive website

Hard to find introduction about products Too many typefaces are being used on the site The contrast of colors is too strong

PERSONALIZATION WIDGET • • •

Can select only some options, like color Doesn’t show you the result on screen It lacks interactivity.

Fashlab Proposal | Competitive Analysis

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COMPETITIVE ANALYSIS

COMPETITOR ANALYSIS

District Lines

HTTP://DISTRICTLINES.COM/

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ROOM 500

District Lines is dedicated to creating the world’s most innovative marketplace. Their mission is to build an honest and secure environment that allows artists to sell their products and consumers to embrace their passions. They have a variety of products: t-shirts, wristbands, outerwear, headwear, CDs, posters, toys, housewares, stickers, etc. They also sell items from popular Youtube stars and Viners; they also sell Pop-culture and gaming related items too.

DISTRICT LINES PROS

CONS

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Homepage is clean and nice Grid system on its homepage Distinct difference between shoppers and artists

Navigation is redundant Distractive background on each page Hard to sign-up or log-in Not a responsive website

PERSONALIZATION WIDGET • • •

Easy to use and very interactive You can use an image or text for your design.

Hundreds of images already available to use.

Fashlab Proposal | Competitive Analysis

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04 Scope of Work The scope of work and the immediate needs of the project revolve around developing an outstanding product. Room 500 will design and develop an e-commerce website including a product customization widget.

Project Goals.

• • • • • • • •

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Deploy an e-commerce website Provide excellent user experience Attain sales goals Establish a strong web presence Attract a large number of users Effectively promote products Provide excellent and economical customer support Complete the project under six months

ROOM 500

DELIVERABLES DESIGN • Will be focused on audience demographics • Will be easy for users to navigate • Will offer a wide range of products • Will offer three rounds of facilitated • • • • • •

usability testing Will be a scalable solution considered by development Will be consistent with FashLab’s current identity Will be optimized to work across all browsers and platforms Will be a responsive site optimized for mobile and tablet users Will have professional photography Will have licensed music

PERSONAS Four personas will be created to help design the product. Each user will have a different usecase scenario.

1. Casual Shopper: purchases others’ designs 2. Loyal Shopper: frequently shops for others’ designs 3. Artists: create designs 4. Staff Member: maintains inventory

TRAINING & MAINTENANCE • Training for key staff members to make •

simple content changes Ongoing maintenance services are available.

A separate agreement will be provided upon request.

SUPPORT • 30-day support post-launch assistance with technical support

DEVELOPMENT • Will allow users to search the entire site • Will have a product database allowing • • • • • • • • • • •

products to be sorted by category or artist Will have a secure database: open an account, accept user agreement, set password and other functions Will have email confirmations A personalized product widget Will have a moderated file upload functionality Will have admin access to moderate new and existing products Will have a community blog with moderated comments Will have a database for promotional emails Will have placeholders for promotional ad functionality Will provide website analytics such as geographic data, top users, top pages, page hits and similar information Will comply with section 508 of the workforce investment act of 1998 Will have SEO (search engine optimization) considerations and features

NOT INCLUDED • • • • • • • • •

Printing Online marketing campaigns Creative contests and prizes Social networking campaigns and posts Corporate identity or Business System Print Identity updates Website maintenance (see maintenance) Domain registration License fee for platform

Fashlab Proposal | Scope of Work

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SCOPE OF WORK Room 500 has extensive experience building e-commerce websites for fashion-forward companies like FashLab. Room 500 will not only attain your objectives and deliverables, but will exceed your expectations. Specifically through extensive user testing, through beautiful photography and through our history and experience working with high quality apparel companies.

Short term and long term goals reside around not only to give users a good experience, but to make sure users are enjoying themselves. If users are enjoying their experience, they will be more likely to spread the word on social networks and through word of mouth to their friends. World-class customer support is another main components to the Room 500 business ethic.

INTERFACE The interface Room 500 is proposing will be clean and professional, will follow a grid system, will have clear navigation and will have a slideshow featuring products.

A clean and professional interface will communicate to your users that you are professional and have quality products. Following a grid system is important because of the quantity of content the FashLab site will contain. A grid helps organize and structure content and images to be sure users can purchase items easily and quickly. With a clear navigation, users will be able to find products and options easy. This is important because it will clarify the process the user will go through to complete transactions. The product slideshow is important because it adds a fun and creative element to your website. This slideshow will show different, fun and unique products.

PRODUCTS The products section is important because they need to be clearly described, they need to show options and they also need to have filtering to help users find specific products. Product descriptions will need to have enough information and not too much at the same time.

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FUNCTION

SOCIAL

Part of the functionality of the FashLab website will be the customization widget. This customization widget will allow the user to create unique and interesting products. Another function of the website is to be responsive. Responsive is a term that means the website can be scaled according to the user’s device. For example, the website will accommodate and have an excellent experience for the desktop computer user, the tablet user and also for the smart phone user.

The social aspect of FashLab’s website will contain many great features. Although other competitors may have similar social features, Room 500 has a unique and specialized approach to their social networking technology. If you choose Room 500, we’d be glad to share more information on our approach.

SHOPPING CART The shopping cart Room 500 will offer will be forward-thinking compared to the one your competitors are using. This is because of the research we’ve done to be sure the shopping cart will show shipping and tax before the user checks out. Users will also be able to create a wish list within the shopping feature and also reduce abandoned shopping carts with the ability to guest shop. With the guest shopping feature, users won’t have to sign up in order to purchase.

PAYMENT Payment processing is an important part of the project. One of the main differentiators is the unique way we do the single page checkout. This keeps customers focused on the goal, which is completing the transaction.

Fashlab Proposal | Scope of Work

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05 Measuring Success Room 500 is aware of the importance of providing concrete information about our results in creating the Fashlab website. That’s why we are providing a list of metrics that will help to quantify our work.

To measure these statistics, we will use Google Analytics and Shopify’s analytics tools, which helps us to see how visitors are interacting with our site. The final goal of these metrics is to evaluate Fashlab website success and ways of keep improving Fashlab customer experience and sales strategy.

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ROOM 500

NUMBER OF UNIQUE VISITORS

FashLab website will use Google Analytics Server for e-commerce to identify visitor and e-commerce. Any transaction will identified through ID as transaction ID. This numbers tells us the number of individual people who visit our website in a given time period, usually daily. We expected that the FashLab website will acquire 2,000,000 visitors in the first year, which equals a little over 166,000.66 visitors a month. This means 41,666.66 visitors a week and almost 5,555 per day. This is more significant than just measuring page views. Page views tell us that we had three visits to our website in a day, but not if it was the same person visiting three separate times.

RETURNING VISITORS

Because of Fashlab’s philosophy of excellent customer service, one of the areas of concentration will be to create a social environment. This social environment is where customers can interact with service representatives. Returning visitors will be an important part of the consumer base.

We predict 30% of initial visitors will return to the FashLab website, which translates to 1,500,000 returning visitors in the first year.

CONVERSION RATE

According to several studies* about the e-commerce completion transaction index, the average conversion rate of visits into purchases is between 2-5%. Because Fashlab is a new company, we expect in the first year an average conversion rate of 2.6%.

Room 500’s contribution to this rate will be by providing an excellent user experience in which customers feel comfortable and happy browsing the website and widget. * Mintel & Warc

AVERAGE TIME SPENT

The average Time spent number lets us know how much time people are spending on FashLab website and individual pages, and it’s a good way to measure the quality of FashLab website. FashLab visitors spend an average of 3 minutes on sites that means they will not lost in site.

SOCIAL MEDIA METRICS

Because our really good integration of our website with social media, we are considering the number of users engaged on those sites as measures of the success of Fashlab website.

Reach: Audience Growth Rate allows you to evaluate marketing efforts over time, without getting distracted by irrelevant information total followers’ numbers.

Engagement: Average Engagement Rate allows you to check the pulse of your existing network and see how your social media efforts are resonating with this established base.

Acquisition: Visitor Frequency Rate parses viewers into new and return visitors, two particularly valuable groups to understand and target Conversion: Assisted Social Conversions By defining specific conversion goals on Google Analytics and related tools, you can follow visitors referred through social channels and track their conversions over a period of time.

Activity: Customer Service Savings Combine your social media data with other data related to your business, and derive information like Customer Service Savings. Your business’ savings from social media equal the average time to complete traditional customer service, multiplied by hourly cost of customer service. Repeated 100 or 1000 times over, this translates to significant savings for your business.

Avg. Time x Costs Per Hour x Customer Service Inquiries Completed = Savings

Fashlab Proposal | Measuring Success

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06 E-Commerce Platform & Hosting After extensive research in the latest trends and technology capabilities among e-commerce websites, we’ve determined the three most recommendable platforms, and the one we think is the most suitable for the Fashlab Website. To determine this, we focused on how Fashlab can benefit from these platform’s tools and services offered.

Because of the potential growth of Fashlab, we took into account the availability of hosting, unlimited bandwidth and products and file storage to define the best e-commerce platform.

Thus, we’re targeting the most complete plans offered by the platforms.

We’re also aware of the need of different widgets to allow Fashlab website to offer advanced features as product customizations and a blog. We’re taking these into account to define the best e-commerce platform.

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ROOM 500

RECOMMENDED: SHOPIFY Shopify offers a service called Shopify Payments that handles payments directly, accepting Visa, MasterCard, Discover, and American Express.

Also, Shopify integrates with over 70 external payment gateways from around the world.

OVERVIEW Shopify is one of the most used E-commerce websites. It’s easy to set up and has an extensive app store to make the website more complete and functional. And it’s used by over 120,000 online stores!

FEATURES Unlimited file storage Unlimited products 24/7 Support Discount code engine Free Shopify Card Reader No transaction fees Gift cards Professional reports Abandoned cart recovery Advanced report builder Real-time carrier shipping Full Blogging Platform 70 external payment gateways Free SSL certificate Extensive APP store

APP STORE Shopify is well known for its extensive App Store, which allow an e-commerce website to have more functionalities in an easy and cheap way. They include, for example, a widget for product customization, which will be very useful for Fashlab website.

HOSTING Shopify provides unlimited bandwith hosting with automatic updates. Also, backups are made to make sure the data is safe.

BLOG Shopify blog allows to publish and categorize articles, create lookbooks, encourage discussion, and moderate comments.

CLIENTS Shopify is currently used by 120,000 online stores. Among its feature shops, there’s A Book Appart, Greats, Tattly and United Pixelworkers.

FashLab Proposal | E-Commerce Platform & Hosting

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E-COMMERCE PLATFORM & HOSTING

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BIGCOMMERCE

VOLUTION

OVERVIEW

OVERVIEW

Bigcommerce is a very popular e-commerce platform. It encompasses a range of services, from hosting and e-commerce to analytics and built-in marketing tools.

Volusion is often hailed as the industry standard for self-hosted e-commerce platform, for its long trajectory and experience - 10 years. It is among the most used e-commerce platforms.

FEATURES

FEATURES

Unlimited file storage Unlimited products 24/7 Support Discount code engine 100+ services included No transaction fees Gift cards Customize products Abandoned cart recovery Full Blogging Platform 60 external payment gateways Staff access control

Unlimited products 24/7 Support Company email address Gift cards Coupon Codes Abandoned cart report Full Blogging Platform Automatic Sales Tax Mobile E-commerce Secure transaction

CLIENTS

CLIENTS

Bigcommerce clients sum up 55,000. Among them, the most famous are TravelKiddy, Hungrz, Supermuse, BrookFarm.

National Geographic UK, Kammok, ShadesDaddy are some of the most famous Volution clients.

STAFF ACCESS CONTROL

MARKETING TOOLS

You can easily assign each of your employees their own store login, with fine-grained control over permissions. So you can give them access to process orders, for example, but not to add products. You can even see a history of every action taken by each staff member.

Transforming a Volusion store into a marketing juggernaut is easy, thanks to features like search engine friendly design, ability to sell daily deals (like Groupon), coupon codes, sell products on Facebook, create email newsletters, etc.

ROOM 500

E-COMMERCE PLATFORMS COMPARISON Shopify

Bigcommerce

Volusion

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$179 2.25% $0.30 0 0 $99,648

$199.95 2.9% $0.30 0 0 $119,399.4

$135 2.15-3.69% $0.34 $37.77 0 $132,669.24

(Unlimited)

(Platinum)

(Platinum)

SHOPPING SHOPPING CART SECURE TRANSACTION AUTOMATIC SALES TAX ORDER TRACKING ABANDONED CART RECOVERY HOSTING & STORAGE UNLIMITED STORAGE UNLIMITED PRODUCTS UNLIMITED BANDWITH OTHERS 24/7 SUPPORT BUILT-IN BLOG SEO MOBILE COMMERCE MARKET ANALYTICS EXTENSIVE APP STORE

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COST (MONTH) MONTHLY FEE CREDIT CARD FEE PER TRANSACTION FEE OTHER FEES HOSTING TOTAL ANNUAL COST

COST METHODOLOGY Based on 3,000,000 annual sales expected and 100,000 transactions.

MONTHLY FEE *12 + $3,000,000*CREDIT CARD FEE + 100,000*PER TRANSACTION FEE + OTHER FEE = TOTAL ANNUAL FEE

FashLab Proposal | E-Commerce Platform & Hosting

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07 Our Process Over several years experience, we have created our own design methodology that applies to all projects, no matter the size or type of service. This design process starts from learning the needs of customers, the problems they are facing to deliver a great experience.

This project will be divided into six phases.

• • • • • •

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Define Collect information, create the sitemap and wireframes, define user personas and their respective scenarios.

Develop Create the concept, analyze the content and develop the site structure.

Design Create both visual style and an initial prototype.

Build Front-end and back-and development.

Deploy User testing and launch.

Beyond Maintenance training and document delivery.

ROOM 500

PHASE 1: DEFINE

PHASE 2: DESIGN

PHASE 3: DEVELOP

PHASE 4: BUILD

PHASE 5: DEPLOY

PHASE 6: BEYOND

FashLab Proposal | Our Process

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OUR PROCESS

PHASE 1: DEFINE In phase one, we start from by doing project research and outlining the structure of the website.

During this phase, we will learn about the target audience for creating user personas and user scenarios, which will help us define the user paths.

We will also need to work with a content writer to define the delivery plan.

PHASE ONE STEPS 1. Audience Investigation: Gathering information about our target audience and analyzing the personas. Identify what they want, their habits and preferences.

2. Analyzing the Industry: We will go deeper in our research by analyzing the e-commerce and fashion industry for the structuring the website and discovering opportunities.

3. Plan User Experience: Develop four personas based on the requirement provided by FashLab and define the user task of each persona.

4. PageView: Define the sitemap and produce low fidelity wireframes of seven pages layouts, including home, category, product, artists, my favorite page, shopping cart, and payment.

5. Develop User Testing Plan: This step will assess out outline the user testing process.

DELIVERABLES • •

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Project Sitemap Seven pages layouts of low-fidelity wireframes

ROOM 500

FORMAT FOR DELIVERY •

Sitemap and wireframes will be delivered in black and white JPEG format.

NUMBER OF REVISIONS FashLab is allowed to request for improvement from Room 500 up to three times.

MILESTONE Phase one will end up with a milestone - sitemap and wireframes. FashLab will receive the deliverables and a summary of document based on our research. You will have to review carefully, request questions and changes and sign off with an approval ultimately. As long as you sign off the final approval, you cannot refine it anymore. Room 500 will reserve the rights to charge extra fee for any change of requests after approval.

TOTAL WEEKS: 1-4 TOTAL FEE: $15,088 TOTAL EXPENSES: $0

PHASE 2: DEVELOP As soon as FashLab approves the sitemap, Room 500 will start to work with FashLab to gather the content necessary for the initial website prototypes and discuss about the naming rules. We will design the interaction patterns used in the website. The 1st-round user testing will also be run in the phase two.

PHASE TWO STEPS 1. Content Analysis & Strategy: Audit, outline, strategize and assessment. Gather the content that the website needs, including photographs, text and FashLab’s branding identity. After collecting all the information, we will define the content we recommend to use. Then we will outline the content and group elements into categories.

2. User Testing: We will have the 1st-round user testing in this phase. We will gather 20 people for the site flow and wireframes testing.

3. Site Structure & Concept Development: In this step, we will create a naming rule and start to naming and labeling the website elements and address navigation system.

4. Interaction Paths: Research and define the interactive slideshow that will show the products on the homepage. Interaction development will be outlined to plan for user experience.

DELIVERABLES •

Navigation system

FORMAT FOR DELIVERY •

Navigation system will be delivered in black and white JPEG format.

NUMBER OF REVISIONS FashLab is allowed to request for improvement from Room 500 up to three times.

EXPENSES User testing is important at this early phase to be sure the initial navigation structure is effective.

User testing is priced at $2,160. 20, and consists of user testing at Room 500 offices with an inhouse facilitator to gain deep understanding of the user behaviors on the prototypes.

MILESTONE Phase one will end up with a milestone - navigation system. FashLab will receive the deliverables and a summary of document based on our research. You will have to review carefully, request questions and changes and sign off with an approval ultimately. As long as you sign off the final approval, you cannot refine it anymore. Room 500 will reserve the rights to charge extra fee for any change of requests after approval.

TOTAL WEEKS: 5-8 TOTAL FEE: $24,240 TOTAL EXPENSES: $2,160

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OUR PROCESS

PHASE 3: DESIGN Once FashLab approves the navigation system, we will begin to build the visual concept of the website through high fidelity website prototypes.

PHASE THREE STEPS 1. User Testing: We will have the 2nd-round user testing in this phase. We will gather 20 people for the site flow and wireframes testing.

2. Concept Design: Develop visual concept of the site.

3. Design Style Guide: Create two to three sets of mood boards. Suggest four to five color palette and two to three typefaces. Also refine the FashLab branding to make it fit with the e-commerce website.

4. Confirming Flow & Functionality: Reviewing the site goals and confirming the user scenario to define the site flow. It’s important to map out the flow and functionality to be sure every task has been carefully planned out.

5. Create Prototype: Create graphic website prototype of seven main pages, including home, category, product, artists, my favorite page, shopping cart, and payment.

DELIVERABLES •

Seven high fidelity website prototypes

Professional photography will greatly increase the reputation to your users. They will view your products in a more pleasing light. Mintel reports that professional photography can greatly increase the positive vision users have of brands. Photography is priced at $3,456. Hiring a professional photographer with 5 models within a rent-able studio and a photographer’s assistant. The studio will need to be used for 4 hours. 1 professional photographer, 1 assistant, 5 models, 4 hour studio rental = $ User testing is important at this phase to be sure the scenario flow is effective. User testing is priced at $2,160. 20 users will be tested and a testing facilitator will gain a deeper understanding of user behavior. Users will be brought to Room 500 offices and an in-house facilitator will be used.

MILESTONE Phase one will end up with a milestone - high fidelity website prototypes. FashLab will receive the deliverables and a summary of document based on our research. You will have to review carefully, request questions and changes and sign off with an approval ultimately. As long as you sign off the final approval, you cannot refine it anymore. Room 500 will reserve the rights to charge extra fee for any change of requests after approval.

TOTAL WEEKS: 9-13

FORMAT FOR DELIVERY

TOTAL FEE: $31,560

•

TOTAL EXPENSES: $5,616

Prototypes will be delivered in full color JPEG format.

NUMBER OF REVISIONS FashLab is allowed to request for improvement from Room 500 up to three times.

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EXPENSES

ROOM 500

PHASE 4: BUILD In the Build phase, we will start to build the site based on the project scope we defined. Once the design style and interface template is complete and approved by FashLab, we will begin to focus on setting up the e-commerce platform, applying design style to the website, developing front-end and back-end programming and database developing.

PHASE FOUR STEPS 1. User Testing: We will have 3rd-round user testing in the phase four. We will gather 20 people for higher fidelity website prototypes testing. Observing their behavior and refining the flow of website.

2. Front-end Developing: We will install the e-commerce platform, which we decided to apply at the beginning and start to develop HTML, CSS and JavaScript of the pages based on the template we created in phase three.

3. Back-end Developing: At this point, we’ll develop the back-end programming. This includes the databases and payment system and will integrate with front-end design.

4. Widget Developing: Building the customized widget that can personalize and upload user’s artworks. User can scale and position their artwork on the blank product.

4. Optimize Assets & Page Templates: We will establish the guidelines and define file structure.

Also we will set up a temporary directory on our server for testing while we develop the site.

FORMAT FOR DELIVERY •

A link to the beta site.

NUMBER OF REVISIONS FashLab is allowed to request for improvement from Room 500 up to five times.

EXPENSES User testing is important at this early phase to be sure the refinements are effective. User testing is priced at $2,160. 20 users will be tested and a testing facilitator will gain a deeper understanding of user behavior. Users will be brought to Room 500 offices and an in-house facilitator will be used.

MILESTONE Phase one will end up with a milestone - a beta production site. FashLab will receive the deliverables and a summary of document based on our research. You will have to review carefully, request questions and changes and sign off with an approval ultimately. As long as you sign off the final approval, you cannot refine it anymore. Room 500 will reserve the rights to charge extra fee for any change of requests after approval.

TOTAL WEEKS: 13-18 TOTAL FEE: $41,160 TOTAL EXPENSES: $2,160

DELIVERABLES •

A beta production site uploaded to server

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OUR PROCESS

PHASE 5: DEPLOY In this phase, we will begin with a user testing and QA testing plan. Keep refine the website. We will make sure the site is completely functional and bug-free. After its approval by FashLab, we will be ready to launch the final version.

DELIVERABLES •

FORMAT FOR DELIVERY •

PHASE FIVE STEPS 1. User Testing: We will have 4th-round user testing in the phase five. We will gather 20 people to test the beta site that we have developed and make final changes.

2. Quality Assurance Testing: We will set a QA testing plan and gather about 10 people for testing the beta site. Ensure the quality of FashLab site across a variety of devices and browsers.

3. Fine Tuning and Updates: After the QA testing, we will collect the problems and update to the product with refinements to make sure the site is bug-free.

4. Test Analytics: Make sure the site is being tracked appropriately and each of the sections are correctly tracking user interaction.

A link to final site.

NUMBER OF REVISIONS FashLab is allowed to request for improvement from Room 500 up to five times.

EXPENSES User testing is important at this final phase to be sure the polished site’s refinements are successful. User testing is priced at $2,160. 20 users will be tested and a testing facilitator will gain a deeper understanding of user behavior. Users will be brought to Room 500 offices and an in-house facilitator will be used.

MILESTONE

6. Site security: We will confirm the site’s security to ensure it is correctly encrypted.

Phase one will end up with a milestone - website launch. FashLab will receive the deliverables and a summary of document based on our research.

You will have to review carefully, request questions and changes and sign off with an approval ultimately. As long as you sign off the final approval, you cannot refine it anymore. Room 500 will reserve the rights to charge extra fee for any change of requests after approval.

7. Maintenance Training: We will come up with a maintenance plan for this site. We will provide up to 2 days (16 hours) key staff member training.

TOTAL WEEKS: 17-20

5. Search Engine Optimization: Improve the SEO for the site to enhance the visibility of the FashLab

8. Launch Product: After making sure the site is bug-free and work-perfectly and then we will prepare an announcement plan and the site will be ready to launch to public.

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Final version of the site

ROOM 500

TOTAL FEE: $24,120 TOTAL EXPENSES: $2,160

PHASE 6: BEYOND In the last phase, we will deliver all the documents and schedule maintenance training.

MILESTONE 1. Create Hand-off Packet: We will provide all the source code of the website, including the HTML, CSS, JavaScript, etc files to Fashlab. We will also provide a documentation manual and maintenance document.

DELIVERABLES •

File Documents (including codes, operation manual and maintenance document)

FORMAT FOR DELIVERY •

Phase one will end up with a milestone - postlaunch meeting. FashLab will receive the deliverables and a summary of document based on our research. You will have to review carefully, request questions and changes and sign off with an approval ultimately. Once the approval is signed, no changes can be made. Room 500 will reserve the rights to charge extra fee for any change of requests after approval.

TOTAL WEEKS: 21-22

All files will be provided on a DVD

TOTAL FEE: $6,536 TOTAL EXPENSES: $0

NUMBER OF REVISIONS FashLab is allowed to request for improvement from Room 500 up to one time.

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08 Expenses Room 500 has carefully assessed and investigated the business needs of Fashlab. Now is a great time for FashLab to launch an e-commerce website. Online shopping trends for fashion are increasing* in popularity every day.

Our considerate project timeline has been thoroughly crafted with FashLab’s unique business model. Through dividing your project into six phases, there is a higher expectation to meet project goals. This is mainly because of the extensive user testing and through focusing on key user flows for FashLab’s users.

Room 500 is also thrilled to propose a budget that is conscious of a timeline that would allow FashLab to launch their e-commerce website earlier than the typical timeframe.

Expenses are limited to photography and user testing. *Mintel Reports

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OVERALL PROJECT PHASE

FEES

EXPENSES

SUBTOTAL

Phase 1 Weeks 1-4

$15,088

$0

$15,088

Phase 2 Weeks 5-8

$24,240

$2,160

$26,400

Phase 3 Weeks 9-13

$31,560

$5,616

$37,176

Phase 4 Weeks 13-18

$41,160

$2,160

$43,320

Phase 5 Weeks 17-20

$24,120

$2,160

$26,280

Phase 6 Weeks 21-22

$6,536

$0

$6,536

$173, 294

$12,096

$185,390

All Phases 22 Weeks PHOTOGRAPHY

USER TESTING

Photography is outlined as follows. Room500 will be providing FashLab will a months worth of images. This will allow the consistent high end appeal of the products to shine further out than the initial launch. A professional photographer with 20 years of experience will be hired to assist with the campaign. There will also be 5 separate models, a photographer assistant, studio rental and equipment to be accounted for. Approximately 10 different shots will be taken and the studio will require four hours of rental.The total for photography is $3,456.

User testing is important at this early phase to be sure the refinements are effective. User testing is priced at $2,160. 20 users will be tested and a testing facilitator will gain a deeper understanding of user behavior. Users will be brought to Room 500 offices and an in-house facilitator will be used.

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09 Schedule The schedule for the project has been carefully crafted with the thoughts of FashLab in mind.

Based on the requirement and analyzing, we found that FashLab is not only a e-commerce platform but also a social media for their target audience to share and express their love for fashion. We did some research about what’s the famous social media for teenagers and young adults, since social media becomes a trend nowadays. We found that for the teenagers, their favorite social media sites are Tumblr, Facebook and Twitter. The young adults like Facebook, LinkedIn and Pinterest most. So, we define four different personas of FashLab based on their needs and preferences, including casual shopper, loyal customer, artist and FashLab staff.

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PHASE 1: DEFINE: WEEKS 1-4 MILESTONE: SITEMAP

PHASE 2: DESIGN: WEEKS 5-8 MILESTONE: WIREFRAMES

PHASE 3: DEVELOP: WEEKS 9-12 MILESTONE: PROTOTYPE

PHASE 4: BUILD: WEEKS 13-16 MILESTONE: LIVE PRODUCTION

PHASE 5: DEPLOY: WEEKS 17-20 MILESTONE: LAUNCH

PHASE 6: BEYOND: WEEKS 21-22 MILESTONE: POST-LAUNCH MEETING

Fashlab Proposal | Schedule

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SCHEDULE

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Fashlab Proposal | Schedule

43

10 Billing Plan Room 500 has researched and planned a billing plan with convenience in mind. Initially a 15% upfront deposit is due to hold our design and development teams. Since this is a large an involved project, this 15% deposit secures the livelihood of our company and ensures our team a great jump-start into the project.

Please note there will be a client penalty fee of 15% if the client delays the project. The delay would consist of 15 days without a response on approval processes. This is necessary because of the profile of the project and how this would affect our teams.

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BILLING SCHEDULE PHASE

DUE

Initial Deposit (15%)

$27,809

Phase 1 Completion

$25,000

Phase 2 Completion

$25,000

Phase 3 Completion

$25,000

Phase 4 Completion

$25,000

Phase 5 Completion

$25,000

Phase 6 Completion

$32,581

Total

$185,390

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11 Legal Terms & Conditions Room 500 is familiar with the AIGA terms and conditions. This is an important segment of information that will help both parties understand the legal content behind this project.

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BASIC TERMS AND CONDITIONS 1.

1.13 Working Files means all underlying work product and digital files utilized by Designer to create the Preliminary Works and Final Works other than the format comprising the Final Deliverables.

DEFINITION

As used herein and throughout this Agreement: 1.1 Agreement means the entire content of this Basic Terms and Conditions document, the Proposal document(s), Schedule A, together with any other Supplements designated below, together with any exhibits, schedules or attachments hereto.

1.2 Client Content means all materials, information, factual, promotional, or other advertising claims, photography, writings and other creative content provided by Client for use in the preparation of and/or incorporation in the Deliverables.

1.3 Copyrights means the property rights in original works of authorship, expressed in a tangible medium of expression, as defined and enforceable under U.S. Copyright Law. 1.4 Deliverables means the services and work product specified in the Proposal to be delivered by Designer to Client, in the form and media specified in the Proposal.

1.5 Designer Tools means all design tools developed and/ or utilized by Designer in performing the Services, including without limitation pre-existing and newly developed software including source code, web authoring tools, type fonts, and application tools, together with any other software, or other inventions whether or not patentable, and general non-copyrightable concepts such as website navigational and functional elements.

1.6 Final Works means all creative content developed by Designer, or commissioned by Designer, exclusively for the Project and incorporated in the Final Deliverables, including, but not limited to, any and all visual elements, graphic design, illustration, photography, animation, motion design, audio-visual works, sounds, typographic treatments and text, modifications to Client Content, and Designer’s selection, arrangement and coordination of such elements together with Client Content and/or Third Party Materials.

1.7 Final Deliverables means the final versions of Deliverables provided by Designer and accepted by Client.

1.8 Preliminary Works means all creative content including, but not limited to, concepts, sketches, visual presentations, or other alternate or preliminary designs and documents developed by Designer and which may or may not be shown and or delivered to Client for consideration but do not form part of the Final Works.

1.9 Project means the scope and purpose of the Client’s identified usage of the work product as described in the Proposal.

1.10 Services means all services and the work product to be provided to Client by Designer as described and otherwise further defined in the Proposal.

1.11 Third Party Materials means proprietary third party materials which are incorporated into the Final Deliverables, including without limitation stock photography or illustration.

1.12 Trademarks means trade names, words, symbols, designs, logos or other devices or designs used in the Final Deliverables to designate the origin or source of the goods or services of Client.

2.

PROPOSAL

The terms of the Proposal shall be effective for 30 days after presentation to Client. In the event this Agreement is not executed by Client within the time identified, the Proposal, together with any related terms and conditions and deliverables, may be subject to amendment, change or substitution.

3.

FEES AND CHARGES

3.1 Fees. In consideration of the Services to be performed

by Designer, Client shall pay to Designer fees in the amounts and according to the payment schedule set forth in the Proposal, and all applicable sales, use or value added taxes, payment schedule.

3.2 Expenses. Client shall pay Designer’s expenses incurred in connection with this Agreement as follows: (a) incidental and outof-pocket expenses including but not limited to costs for telephone calls, postage, shipping, overnight courier, service bureaus, typesetting, blueprints, models, presentation materials, photocopies, computer expenses, parking fees and tolls, and taxis at cost plus Designer’s standard markup of twenty percent (20%), and, if applicable, a mileage reimbursement at .50 cent per mile; and (b) travel expenses including transportation, meals, and lodging, incurred by Designer with Client’s prior approval.

3.3 Additional Costs. The Project pricing includes Designer’s fee only. Any and all outside costs including, but not limited to, equipment rental, photographer’s costs and fees, photography and/ or artwork licenses, prototype production costs, talent fees, music licenses and online access or hosting fees, will be billed to Client unless specifically otherwise provided for in the Proposal.

3.4 Invoices. All invoices are payable within fifteen (15) days of receipt. A monthly service charge of 1.5 percent (or the greatest amount allowed by state law) is payable on all overdue balances.

Payments will be credited first to late payment charges and next to the unpaid balance. Client shall be responsible for all collection or legal fees necessitated by lateness or default in payment. Designer reserves the right to withhold delivery and any transfer of ownership of any current work if accounts are not current or overdue invoices are not paid in full. All grants of any license to use or transfer of ownership of any intellectual property rights under this Agreement are conditioned upon receipt of payment in full which shall be inclusive of any and all outstanding Additional Costs, Taxes, Expenses, and Fees, Charges, or the costs of Changes.

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47

LEGAL TERMS & CONDITIONS 4.

CHANGES

4.1 General Changes. Unless otherwise provided in the Proposal, and except as otherwise provided for herein, Client shall pay additional charges for changes requested by Client which are outside the scope of the Services on a time and materials basis, at Designer’s standard hourly rate of $100 per hour. Such charges shall be in addition to all other amounts payable under the Proposal, despite any maximum budget, contract price or final price identified therein. Designer may extend or modify any delivery schedule or deadlines in the Proposal and Deliverables as may be required by such Changes.

4.2 Substantive Changes. If Client requests or instructs Changes that amount to a revision in or near excess of fifty percent (50%) of the time required to produce the Deliverables, and or the value or scope of the Services, Designer shall be entitled to submit a new and separate Proposal to Client for written approval. Work shall not begin on the revised services until a fully signed revised Proposal and, if required, any additional retainer fees are received by Designer.

4.3 Timing. Designer will prioritize performance of the Services as may be necessary or as identified in the Proposal, and will undertake commercially reasonable efforts to perform the Services within the time(s) identified in the Proposal. Client agrees to review Deliverables within the time identified for such reviews and to promptly either, (i) approve the Deliverables in writing or (ii) provide written comments and/or corrections sufficient to identify the Client’s concerns, objections or corrections to Designer. The Designer shall be entitled to request written clarification of any concern, objection or correction. Client acknowledges and agrees that Designer’s ability to meet any and all schedules is entirely dependent upon Client’s prompt performance of its obligations to provide materials and written approvals and/or instructions pursuant to the Proposal and that any delays in Client’s performance or Changes in the Services or Deliverables requested by Client may delay delivery of the Deliverables. Any such delay caused by Client shall not constitute a breach of any term, condition or Designer’s obligations under this Agreement.

4.4 Testing and Acceptance. Designer will exercise commercially reasonable efforts to test Deliverables requiring testing and to make all necessary corrections prior to providing Deliverables to Client. Client, within five (5) business days of receipt of each Deliverable, shall notify Designer, in writing, of any failure of such Deliverable to comply with the specifications set forth in the Proposal, or of any other objections, corrections, changes or amendments Client wishes made to such Deliverable. Any such written notice shall be sufficient to identify with clarity any objection, correction or change or amendment, and Designer will undertake to make the same in a commercially timely manner. Any and all objections, corrections, changes or amendments shall be subject to the terms and conditions of this Agreement. In the absence of such notice from Client, the Deliverable shall be deemed accepted.

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ROOM 500

5.

CLIENT RESPONSIBILITY

Client acknowledges that it shall be responsible for performing the following in a reasonable and timely manner: (a) coordination of any decision-making with parties other than the Designer; (b) provision of Client Content in a form suitable for reproduction or incorporation into the Deliverables without further preparation, unless otherwise expressly provided in the Proposal; (c) final proofreading and in the event that Client has approved Deliverables but errors, such as, by way of example, not limitation, typographic errors or misspellings, remain in the finished product, Client shall incur the cost of correcting such errors ; and (d) ensuring that all information and claims comprising Client Content are accurate, legal and conform to applicable standards in Client’s industry.

6.

ACCREDITATION/PROMOTIONS

All displays or publications of the Deliverables shall bear accreditation and/or copyright notice in Designer’s name in the form, size and location as incorporated by Designer in the Deliverables, or as otherwise directed by Designer. Designer retains the right to reproduce, publish and display the Deliverables in Designer’s portfolios and websites, and in galleries, design periodicals and other media or exhibits for the purposes of recognition of creative excellence or professional advancement, and to be credited with authorship of the Deliverables in connection with such uses. Either party, subject to the other’s reasonable approval, may describe its role in relation to the Project and, if applicable, the services provided to the other party on its website and in other promotional materials, and, if not expressly objected to, include a link to the other party’s website.

7.

CONFIDENTIAL INFORMATION

Each party acknowledges that in connection with this Agreement it may receive certain confidential or proprietary technical and business information and materials of the other party, including without limitation Preliminary Works (“Confidential Information”). Each party, its agents and employees shall hold and maintain in strict confidence all Confidential Information, shall not disclose Confidential Information to any third party, and shall not use any Confidential Information except as may be necessary to perform its obligations under the Proposal except as may be required by a court or governmental authority.

Notwithstanding the foregoing, Confidential Information shall not include any information that is in the public domain or becomes publicly known through no fault of the receiving party, or is otherwise properly received from a third party without an obligation of confidentiality.

8.

RELATIONSHIP OF THE PARTIES

8.1 Independent Contractor. Designer is an independent contractor, not an employee of Client or any company affiliated with Client. Designer shall provide the Services under the general direction of Client, but Designer shall determine, in Designer’s sole discretion, the manner and means by which the Services are accomplished. This Agreement does not create a partnership or joint venture and neither party is authorized to act as agent or bind the other party except as expressly stated in this Agreement. All rights, if any, granted to Client are contractual in nature and are wholly defined by the express written agreement of the parties and the various terms and conditions of this Agreement.

8.2 Designer Agents. Designer shall be permitted to engage and/or use third party designers or other service providers as independent contractors in connection with the Services (“Design Agents”). Notwithstanding, Designer shall remain fully responsible for such Design Agents’ compliance with the various terms and conditions of this Agreement.

8.3 No Solicitation. During the term of this Agreement, and for a period of six (6) months after expiration or termination of this Agreement, Client agrees not to solicit, recruit, engage or otherwise employ or retain, on a full-time, part-time, consulting, work-for-hire or any other kind of basis, any Designer, employee or Design Agent of Designer, whether or not said person has been assigned to perform tasks under this Agreement. In the event such employment, consultation or work-for-hire event occurs, Client agrees that Designer shall be entitled to an agency commission to be the greater of, either (a) 25 percent of said person’s starting salary with Client, or (b) 25 percent of fees paid to said person if engaged by Client as an independent contractor. In the event of (a) above, payment of the commission will be due within 30 days of the employment starting date. In the event of (b) above, payment will be due at the end of any month during which the independent contractor performed services for Client.

Designer, in the event of nonpayment and in connection with this section, shall be entitled to seek all remedies under law and equity.

8.4 No Exclusivity. The parties expressly acknowledge that this Agreement does not create an exclusive relationship between the parties. Client is free to engage others to perform services of the same or similar nature to those provided by Designer, and Designer shall be entitled to offer and provide design services to others, solicit other clients and otherwise advertise the services offered by Designer.

9.

WARRANTIES AND REPRESENTATIONS

9.1

By Client. Client represents, warrants and covenants to Designer that (a) Client owns all right, title, and interest in, or otherwise has full right and authority to permit the use of the Client

Content, (b) to the best of Client’s knowledge, the Client Content is accurate, legal, conforms to ethical standards of the Client’s industry, does not infringe the rights of any third party, and use of the Client Content as well as any Trademarks in connection with the Project does not and will not violate the rights of any third parties, (c) Client shall comply with the terms and conditions of any licensing agreements which govern the use of Third Party Materials, and (d) Client shall comply with all laws and regulations as they relate to the Services and Deliverables.

9.2

By Designer (a) Designer hereby represents, warrants and covenants to Client that Designer will provide the Services identified in the Agreement in a professional and workmanlike manner and in accordance with all reasonable professional standards for such services. (b) Designer further represents, warrants and covenants to Client that (i) except for Third Party Materials and Client Content, the Final Deliverables shall be the original work of Designer and/or its independent contractors, (ii) in the event that the Final Deliverables include the work of independent contractors commissioned for the Project by Designer, Designer shall have secure agreements from such contractors granting all necessary rights, title, and interest in and to the Final Deliverables sufficient for Designer to grant the intellectual property rights provided in this Agreement, and (iii) to the best of Designer’s knowledge, the Final Works provided by Designer and Designer’s subcontractors does not infringe the rights of any party, and use of same in connection with the Project will not violate the rights of any third parties. In the event Client or third parties modify or otherwise use the Deliverables outside of the scope or for any purpose not identified in the Proposal or this Agreement or contrary to the terms and conditions noted herein, all representations and warranties of Designer shall be void. (c) Except for the express representations and warranties stated in this Agreement, Designer makes no warranties whatsoever. Designer explicitly disclaims any other warranties of any kind, either express or implied, including but not limited to warranties of merchantability or fitness for a particular purpose or compliance with laws or government rules or regulations applicable to the Project.

10.

ACCREDITATION/PROMOTIONS

10.1

By Client. Client agrees to indemnify, save and hold harmless Designer from any and all damages, liabilities, costs, losses or expenses arising out of any claim, demand, or action by a third party arising out of any breach of Client’s responsibilities or obligations, representations or warranties under this Agreement. Under such circumstances Designer shall promptly notify Client in writing of any claim or suit; (a) Client has sole control of the defense and all related settlement negotiations; and (b) Designer provides Client with commercially reasonable assistance, information and authority necessary to perform Client’s

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49

LEGAL TERMS & CONDITIONS obligations under this section. Client will reimburse the reasonable out-of-pocket expenses incurred by Designer in providing such assistance.

10.2

By Designer. Subject to the terms, conditions, express representations and warranties provided in this Agreement, Designer agrees to indemnify, save and hold harmless Client from any and all damages, liabilities, costs, losses or expenses arising out of any finding of fact which is inconsistent with Designer’s representations and warranties made herein, except in the event any such claims, damages, liabilities, costs, losses or expenses arise directly as a result of gross negligence or misconduct of Client provided that (a) Client promptly notifies Designer in writing of the claim; (b) Designer shall have sole control of the defense and all related settlement negotiations; and (c) Client shall provide Designer with the assistance, information and authority necessary to perform Designer’s obligations under this section. Notwithstanding the foregoing, Designer shall have no obligation to defend or otherwise indemnify Client for any claim or adverse finding of fact arising out of or due to Client Content, any unauthorized content, improper or illegal use, or the failure to update or maintain any Deliverables provided by Designer.

10.3 Settlement Approval. The indemnifying party may not enter into any settlement agreement without the indemnified party’s written consent.

10.4 Limitation of Liability. The services and the work product of Designer are sold “as is.” In all circumstances, the maximum liability of Designer, its directors, officers, employees, design agents and affiliates (“designer parties”), to Client for damages for any and all causes whatsoever, and Client’s maximum remedy, regardless of the form of action, whether in contract, tort or otherwise, shall be limited to the net profit of Designer. In no event shall Designer be liable for any lost data or content, lost profits, business interruption or for any indirect, incidental, special, consequential, exemplary or punitive damages arising out of or relating to the materials or the services provided by Designer, even if Designer has been advised of the possibility of such damages, and notwithstanding the failure of essential purpose of any limited remedy.

11.

TERM AND TERMINATION

11.1 Term. This Agreement shall commence upon the Effective Date and shall remain effective until the Services are completed and delivered.

11.2 Termination. This Agreement may be terminated for convenience at any time by either party effective immediately upon notice, or the mutual agreement of the parties, or for cause if any party: (a) becomes insolvent, files a petition in bankruptcy, makes an assignment for the benefit of its creditors; or (b) breaches any of its material responsibilities or obligations under this Agreement, which breach is not remedied within ten (10) days

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ROOM 500

from receipt of written notice of such breach.

11.3 In the event of termination, Designer shall be compensated for the Services performed through the date of termination in the amount of (a) any advance payment, (b) a prorated portion of the fees due, or (c) hourly fees for work performed by Designer or Designer’s agents as of the date of termination, whichever is greater; and Client shall pay all Expenses, fees, out of pockets together with any Additional Costs incurred through and up to, the date of cancellation. In the event of termination for convenience by Client, Client shall pay in addition to the above an early termination fee equal to 25% of the total project fee, Schedule A shall not be effective, and Client shall not have rights to use Deliverables except upon written consent from Designer provided after such termination.

11.4 In the event of termination for convenience by Designer or for cause by Client, and upon full payment of compensation as provided herein, Designer grants to Client such right and title as provided for in Schedule A of this Agreement with respect to those Deliverables provided to, and accepted by Client as of the date of termination.

11.5 Upon expiration or termination of this Agreement: (a) each party shall return or, at the disclosing party’s request, destroy the Confidential Information of the other party, and (b) other than as provided herein, all rights and obligations of each party under this Agreement, exclusive of the Services, shall survive.

12.

GENERAL

12.1 Modification/Waiver. This Agreement may be modified by the parties. Any modification of this Agreement must be in writing, except that Designer’s invoices may include, and Client shall pay, expenses or costs that Client authorizes by electronic mail in cases of extreme time sensitivity. Failure by either party to enforce any right or seek to remedy any breach under this Agreement shall not be construed as a waiver of such rights nor shall a waiver by either party of default in one or more instances be construed as constituting a continuing waiver or as a waiver of any other breach.

12.2 Notices. All notices to be given hereunder shall be transmitted in writing either by facsimile or electronic mail with return confirmation of receipt or by certified or registered mail, return receipt requested, and shall be sent to the addresses identified below, unless notification of change of address is given in writing. Notice shall be effective upon receipt or in the case of fax or email, upon confirmation of receipt (by automated confirmation or substantive reply by the recipient).

12.3 No Assignment. Neither party may assign, whether in writing or orally, or encumber its rights or obligations under this Agreement or permit the same to be transferred, assigned or encumbered by operation of law or otherwise, without the prior written

consent of the other party except that this Agreement may be transferred or sold as part of a transfer or sale of the assigning party’s entire business or portion thereof relating to the Project.

12.4 Force Majeure. Designer shall not be deemed in breach of this Agreement if Designer is unable to complete the Services or any portion thereof by reason of fire, earthquake, flood, hurricane or other severe weather, labor dispute, act of war, terrorism, riot or other severe civil disturbance, death, illness or incapacity of Designer or any local, state, federal, national or international law, governmental order or regulation or any other event beyond Designer’s control (collectively, “Force Majeure Event”). Upon occurrence of any Force Majeure Event, Designer shall give notice to Client of its inability to perform or of delay in completing the Services and shall propose revisions to the schedule for completion of the Services.

12.5 Governing Law and Dispute Resolution. The formation, construction, performance and enforcement of this Agreement shall be in accordance with the laws of the United States and the state of California without regard to its conflict of law provisions or the conflict of law provisions of any other jurisdiction. In the event of a dispute arising out of this Agreement, the parties agree to attempt to resolve any dispute by negotiation between the parties. If they are unable to resolve the dispute, either party may commence mediation and/ or binding arbitration through the American Arbitration Association, or other forum mutually agreed to by the parties. The prevailing party in any dispute resolved by binding arbitration or litigation shall be entitled to recover its attorneys’ fees and costs. In all other circumstances, the parties specifically consent to the local, state and federal courts located in the state of California. The parties hereby waive any jurisdictional or venue defenses available to them and further consent to service of process by mail. Client acknowledges that Designer will have no adequate remedy at law in the event Client uses the deliverables in any way not permitted hereunder, and hereby agrees that Designer shall be entitled to equitable relief by way of temporary and permanent injunction, and such other and further relief at law or equity as any arbitrator or court of competent jurisdiction may deem just and proper, in addition to any and all other remedies provided for herein.

12.6 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect and the invalid or unenforceable provision shall be replaced by a valid or enforceable provision.

12.7 Headings. The numbering and captions of the various sections are solely for convenience and reference only and shall not affect the scope, meaning, intent or interpretation of the provisions of this Agreement nor shall such headings otherwise be given any legal effect.

12.8 Integration. This Agreement comprises the entire understanding of the parties hereto on the subject matter herein contained, and supersedes and merges all prior and contemporaneous agreements, understandings and discussions between the parties relating to the subject matter of this Agreement. In the event of a conflict between the Proposal and any other Agreement documents, the terms of the Proposal shall control. Any other ambiguities shall be resolved with the most reasonable and legally valid construction, without regard to authorship of such provisions. This Agreement comprises this Basic Terms and Conditions document, the Proposal, Schedule A, and the following documents as indicated by the parties’ initials: ____ ____ Supplement 2: Interactive-Specific Terms and Conditions By their execution below, the parties hereto have agreed to all of the terms and conditions of this Agreement effective as of the last date of signature below, and each signatory represents that it has the full authority to enter into this Agreement and to bind her/his respective party to all of the terms and conditions herein.

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LEGAL TERMS & CONDITIONS SCHEDULE A: INTELLECTUAL PROPERTY PROVISIONS ASSIGNMENT OF RIGHTS IP 1.

RIGHTS IN THE FINAL DELIVERABLES

IP 1.1 Final Works. Upon completion of the Services, and expressly conditioned upon full payment of all fees and costs due, Designer assigns to Client all of Designer’s Copyrights in and to the Final Works, including Trademarks, and Designer shall deliver to Client all Working Files related to the Final Works. Designer shall cooperate with Client and shall execute any additional documents reasonably requested by Client to evidence such assignment, and Client shall reimburse Designer for Designer’s reasonable time and out-of-pocket expenses in connection therewith.

IP 1.2 Trademarks. Client shall have sole responsibility for ensuring that Trademarks do not infringe the rights of third parties, and Client shall indemnify, save and hold harmless Designer from any and all damages, liabilities, costs, losses or expenses arising out of any claim, demand, or action by a third party alleging trademark infringement, or arising out of Client’s failure to obtain trademark clearance or permissions, for use of Trademarks.

IP 1.3 Client Content. Client Content, including pre-existing Trademarks, shall remain the sole property of Client or its respective suppliers, and Client or its suppliers shall be the sole owner of all trademark, trade secrets, patents, Copyrights, and other rights in connection therewith. Client hereby grants to Designer a nonexclusive, nontransferable license to use, reproduce, modify, display and publish the Client Content solely in connection with Designer’s performance of the Services and promotional uses of the Deliverables as authorized in this Agreement.

IP 1.4 Third Party Materials. Intellectual property rights in Third Party Materials shall be owned by the respective third parties. Designer shall inform Client of all Third Party Materials to be procured by Designer that Client may need to license at Client’s own expense, and unless otherwise arranged by Client, Designer shall obtain a license for Client to use the Third Party Materials consistent with the usage rights granted herein. Client shall indemnify, save and hold harmless Designer from any and all damages, liabilities, costs, losses or expenses arising out of any claim, demand, or action by a third party arising out of Client’s failure to obtain copyright, trademark, publicity, privacy, defamation or other releases or permissions with respect to materials included in the Final Works at Client’s request.

IP 2.

RIGHTS RESERVED TO DESIGNER

IP 2.1 Preliminary Works/Working Files. Designer retains all proprietary rights, including property ownership, intellectual property rights and Copyrights, in and to all Preliminary Works and Working

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Files, and Client shall return to Designer all Preliminary Works and Working Files in Client’s possession within thirty (30) days of completion of the Services.

IP 2.2 Original Artwork. Designer retains property ownership in any original artwork comprising Final Works, including all rights to display or sell such artwork. Client shall return all original artwork to Designer within thirty (30) days of completion of the Services.

IP 2.3 Designer Tools. Designer Tools and all intellectual property rights therein, including Copyrights, shall be owned solely by Designer. Designer hereby grants to Client a nonexclusive, nontransferable (other than the right to sublicense such uses to Client’s publisher, web hosting or Internet service providers), perpetual, worldwide license to use the Designer Tools solely with the Final Deliverables for the Project. Client may not directly or indirectly, in any form or manner, decompile, reverse engineer, or otherwise disassemble or modify any Designer Tools comprising software or technology.

SUPPLEMENT2: INTERACTIVE-SPECIFIC TERMS AND CONDITIONS I 1.

SUPPORT SERVICES

I 1.1 Warranty Period. “Support Services” means commercially reasonable technical support and assistance to maintain and update the Deliverables, including correcting any errors or Deficiencies, but shall not include the development of enhancements to the Project or other services outside the scope of the Proposal. During the first 1 months following expiration of this Agreement (“Warranty Period”), if any, Designer shall provide up to 36 hours of Support Services at no additional cost to Client. Additional time shall be billed at Designer’s regular hourly rate, then in effect upon the date of the request for additional support.

I 1.2 Maintenance Period. Upon expiration of the Warranty Period and at Client’s option, Designer will provide Support Services for the following 1 months (the “Maintenance Period”) for a monthly fee of $8800 [or Designer’s hourly fees of $100 per hour]. The parties may extend the Maintenance Period beyond one year upon mutual written agreement.

I 2.

ENHANCEMENTS

During the Maintenance Period, Client may request that Designer develop enhancements to the Deliverables, and Designer shall exercise commercially reasonable efforts to prioritize Designer’s resources to create such enhancements. The parties understand that preexisting obligations to third parties existing on the date of the request for enhancements may delay the immediate execution of any such requested enhancements. Such enhancements shall be provided on a time and materials basis at Designer’s then-in-effect price for such services.

I 3.

ADDITIONAL WARRANTIES AND REPRESENTATIONS I 3.1 Deficiencies. Subject to the representations and warranties of Client in connection with Client Content, Designer represents and warrants that the Final Deliverables will be free from Deficiencies.

For the purposes of this Agreement, “Deficiency” shall mean a failure to comply with the specifications set forth in the Proposal in any material respect, but shall not include any problems caused by Client Content, modifications, alterations or changes made to Final Deliverables by Client or any third party after delivery by Designer, or the interaction of Final Deliverables with third party applications such as web browsers other than those specified in the Proposal. The parties acknowledge that Client’s sole remedy and Designer’s sole liability for a breach of this Section is the obligation of Designer to correct any Deficiency identified within the Warranty Period. In the event that a Deficiency is caused by Third Party Materials provided or specified by Designer, Designers sole obligation shall be to substitute alternative Third Party Materials.

I 3.2 Designer Tools. Subject to the representations and warranties of the Client in connection with the materials supplied by Client, Designer represents and warrants that, to the best of Designer’s knowledge, the Designer Tools do not knowingly infringe the rights of any third party, and use of same in connection with the Project will not knowingly violate the rights of any third parties except to the extent that such violations are caused by Client Content, or the modification of, or use of the Deliverables in combination with materials or equipment outside the scope of the applicable specifications, by Client or third parties.

I 4.

COMPLIANCE WITH LAWS

Designer shall use commercially reasonable efforts to ensure that all Final Deliverables shall be designed to comply with relevant rules and regulations known to Designer; however, Client, upon acceptance of the Deliverables, shall be solely responsible for conformance with all rules, regulations, and laws relating to Client’s use thereof, including without limitation, relating to the transfer of software and technology, and compliance with the Americans with Disabilities Act and Section 508 of the Workforce Investment Act.

DESIGN FIRM:

CLIENT:

ROOM 500

FashLab

180 MONTGOMERY ST, FIFTH FLOOR,

180 MONTGOMERY ST, FIFTH FLOOR,

SAN FRANCISCO, CA 94105

SAN FRANCISCO, CA 94105

UNITED STATES

UNITED STATES

Print Name:______________________

Print Name:_______________________

Signed: ________________________

Signed: ________________________

Date: __________________________

Date: __________________________

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13 About Room 500 Room 500 is a renown for it’s robust and highly usable website design. Room 500 has been a prominent part of the design, technology and marketing world for 15 years. Located in San Francisco, Room 500 has been able to work collaboratively with a wide variety of forward-thinking clients. We understand the marketplace is competitive, yet we have the inside knowledge and experience to make your company highly profitable. Each one of our highly experienced and knowledgeable team members brings a high level of passion and enthusiasm to your product.

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ROOM 500

ANDREA CORNAGLIA

STACEY GENNOY

PROJECT MANAGER

DESIGN LEAD

Andrea Cornaglia has a background in both Web Design and Economics. She’s been leading projects at Room500 since 2010, and her areas of expertise are marketing research and also SEO.

Stacey joined Room 500 in 2009 and has been working with an emphasis on usability and user testing.

She has been leading projects for most of her career, along with being an experienced content wrangler.

Stacey has experience in both design and development and is passionate about working with clients.

Fashlab Proposal | About Room 500

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ABOUT ROOM 500

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YA-HUI LEE

XIAOZHU YU

UX DESIGNER

UI DESIGNER

Ya-Hui Lee is a Managing Director of User Experience at Room500. Since joining in 2004, Ya-Hui has been instrumental in building the agency’s user experience team and helping to define the philosophy and process applied to user-centric design. When leading the UX design process from the concept to the final result, she seeks to create smart and elegant solution.

Xiaozhu joined Room500 since 2008, she has six years of design experience and two years in User Experience Design. She is good at refining the complex problem to simple and elegant design. She is also a pixel perfecter in Photoshop and Illustrator.

ROOM 500

TIANNING YAN

SULTAN ALSAHFI

FRONT-END DEVELOPER

WEB DEVELOPER

Tianning joined Room500 in 2006. He manages a team of six to develop front-end website and focuses on HTML5/CSS3/Javascript. He also worked to integrate applications with web services ranging from banking company to e-commerce website.

Designs complex web applications using languages that include but are not limited to: HTML, ASP, Visual Basic, JavaScript, SQL, CSS, XML, XSL Knowledge of XML and DTD. Experience with PHP / UNIX / APACHE / PERL and search engines.

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PORTFOLIO

STYLISH

www.stylish.com

STYLISH is a sophisticated American corporation and e-commerce company, providing consumer-to-consumer & business-to-consumer sales services online. It is headquartered in San Francisco, California, United States.

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ROOM 500

ESHOPPING

www.eshopping.com

E SHOPPING is an e-commerce website showcasing a wide variety of products. EShOPPING is located in San Francisco, California. The project is unique because of the display of products on the mobile device. Users can easily swipe to add products to their cart.

Fashlab Proposal | Portfolio

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PORTFOLIO

LESS PRICE

www.lessprice.com

LESS PRICE is an e-commerce website that focuses on quick last minute deals. The project has been very successful with a 220% increase in user engagement.* Room 500 was able to implement a great solution to help improve brand consistency. *Google Analytics

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ROOM 500

Fashlab Proposal | Portfolio

Thank you We’re very excited about FashLab’s future and are thrilled to present you our view of this project through this proposal. We’ve really enjoyed researching your project. Please do not hesitate to contact us for any questions or comments. We look forward to working with you!

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Room500.com 180 New Montgomery, Fifth Floor, San Francisco, CA 94105 (415) 444-7632 letsbegin@Room500.com