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The "small fee" (10c) is not for the conversion, but to have your documents wirelessly sent to the Kindle. You can, if you wish, have them returned to your Kindle e-mail account and then upload them to the Kindle via USB.
You don't have to use Amazon at all; the Kindle uses MobiPocket and you can use any tool you wish (eg Mobi Creator) to convert other formats to MobiPocket format yourself.
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