Phase 1: Incorporation, Product Development and Valuation

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1 National Playbill Phase 1: Incorporation, Product Development and Valuation (To be completed within 6 months of initial funding) 1. Definition of Corporate Mission: (To be completed within 3 month of initial funding) In Canada there are: Over 700 performing arts venues Over 7000 performances per month shared between the 700 venues An average audience of 300 patrons per event A total over 2.1 million Canadians per month attending performances Problem: The size, demographic and psychographic characteristics of the live entertainment industry in Canada make it a valuable resource for national and multi-national organizations to target, however the volume, complexity and diversity of events make harnessing this resource too time consuming and expensive for any individual advertiser or sponsor to benefit from. Solution: The National Playbill will create a data management strategy that will use the latest web based technologies to facilitate the collection, organization, enhancement and distribution of live entertainment event data. The National Playbill will take advantage of economies of scale and strategic partnerships to provide easy access to highly customizable target markets in the live entertainment industry. The National Playbill will become a much needed hub of live entertainment information incorporating the use of Interactive websites, Calendars of Events, Social Media Networks, Mobile Applications and membership subscriptions. The National Playbill will be funded through the sale of advertising and sponsorship opportunities associated with the various products developed from the comprehensive ocean of live entertainment data collected through the National Playbill data mining program.

2 2. Establish Legal Entity and Ownership: (To be completed within 3 month of initial funding) Incorporation: Incorporate National Playbill and secure National Playbill URL addresses. o Secure Name: National Playbill Completed Dec Incorporate Nationally Completed Dec Register NationalPlaybill.com,.ca,.org,.net Completed Dec Incorporate Provincially Incorporate Internationally Ownership: Equity Options o Shareholders (Currently 100% owned by Randy Zahara) Upon completion of a partnership arrangement shares will be transferred to an ownership team consisting of: Randy Zahara Ken Hartfield Vern Gerlitz Vern Graham Financing Options o Creditors: Business Loan To be set up as a line of credit in the amount of $1,000,000 to be drawn down upon as required. Balance of amount owing to be paid back in full at the end of six years. Repayment and interest charges will begin after first full year of operations Annual interest rate will be set at 8% of outstanding balance During repayment period an additional amount of 3% of gross revenues will be paid to the lender

3 3. Product Identification and Valuation: (To be completed within 4 month of initial funding) In Phase one, we will work with an industry consultant to identify key products, determine their cost of production and how to monetize them, establish their market value, locate customers and determine promotional strategies. Consultants: National Playbill has identified two leading candidates for consulting positions: Paul Gravett Consulting Based out of Vancouver has extensive experience in performing arts organization and venue management as well as in consulting for the arts. Paul has been the past chair of the BC Touring Council and is the current chair for CAPACOA, which is the largest affiliation of performing arts venues in Canada, which National Playbill requires a strong relationship with to ensure as much cooperation with the venues as possible. Peter Bent Western Canadian Marketing manager for Investors Syndicate National Advertiser and Sponsorship consultant and advisor. Partnership Group Sponsorship Specialists Based out of Calgary. PGSS has extensive experience valuating sponsorship and partnership opportunities across Canada and on a national scale. Partnership Group has also worked directly for the City of Kelowna performing sponsorship valuations. o Once financing is secured a request for proposals will be sent out to consulting firms across North America to complete the following evaluations for the National Playbill Program. Products: The current list of products to be evaluated in Phase 1 include: o Print products such as, single event playbills, multi-day playbills and periodic event calendars handed out directly to audiences at live events. o Online Calendars, including a national live entertainment calendar that is searchable by region, by venue, by date and by event category. o Social Media marketing and promotions o Telephone event Listings. o Applications for smart phones and mobile devices o Membership Fees and Subscriptions Price An independent consultant will help National Playbill determine a pricing policy for each product that will identify how much our customers are prepared to pay and how much mark-up will be needed to cover overheads and profit margins. Promotion

4 Additional Phase One consulting work will include identifying key promotional strategies to generate awareness of the National Playbill service and products targeted to: o Advertising and sponsorship clients who will be purchasing National Playbill products and services. o Venues, Artists, Agents, Promoters and Artist management companies who will be providing live entertainment event related data and access to their audiences. o Audiences who will be the users of National Playbill Products that have been sponsored and paid for by the advertising of National Playbill marketing clients. Place All National Playbill products, platforms and promotional strategies will support the creation of a powerful brand designed to strengthen National Playbill s goal to become the hub of live entertainment information in Canada. Phase One objectives will include working with National Playbill staff, management, partners and consultants to create: o Print media templates o Identifiable logo s o Tag lines o Stationary o Web Designs o Social Media Presence and themes 4. People and Positions (To be completed within 4 month of initial funding) Key positions required for the development and implementation of the National Playbill service will be identified, defined and when needed, advertised for and hired. o Preliminary speculation for Phase One, and future recruiting requirements include: CEO Randy Zahara - National Playbill inventor and concept developer o Degree in business administration from Simon Fraser University with minor degrees in marketing and economics. o 30+year experience creating, marketing and running special events o 12+ years managing the Kelowna Community Theatre, hiring and promoting acts Corporate oversight Strategic Planning and Decisions Strategic Business Development Manager: Product Development Product Procurement Strategic Planning and Product Placement COO (Chief Operational Officer):

5 Data Collection Content Creation Content and Data Distribution Marketing Manager, oversees: National Sales Strategy Sales Team Recruiting and Training for Sales Team Relationships with Marketing partners o Major NPB Clients o Third party marketing partners Strategic Relationship Manager, working with: Venues Entertainment Industry o Artists o Artist Managers o Agents o Promoters Print and Media Companies Technical Director Data Collection and coordination Web Site Development Social Media Program App Development. 5. Technology (To be completed within 5 month of initial funding) The National Playbill is a service that uses modern technology and social media in a cost efficient way to provide new and highly effective marketing opportunities to large advertisers by amassing and creating access to live entertainment audiences on a national scale. To be successful, National Playbill will need to build web based services, including a comprehensive website, social media presence and downloadable applications that will: o Allow for the efficient collection, compilation and sorting of data including: 3 rd party data entry to be available to: Venues, artists, artist management, presenters and agents. NPB staff data entry Audience data and membership entry. o Facilitate the creation of effective and compelling content for: Event promotion. Playbill Branding Creation of effective advertising and sponsorship campaigns o Maximize the effectiveness and quality of content distribution, including:

6 Coordinating print media campaigns such as: Playbills Flyers Posters Online calendars of events that are: User friendly and customizable by: o Type of event o Genre o Price o Date o Location o Demographic Criteria Online, and mobile based, downloadable playbills and flyers Mobile and online apps that can be highly customizable. o Maximize the effectiveness and customizability of advertising and sponsorship campaigns by collecting and sorting live entertainment event information into definable categories such as: Type of event Genre Price Date Location Demographic Criteria Psychographic Criteria Size of venue o How live entertainment data and information; Is collected and stored Is turned into effective content for maximum impact Is organized to provide: 6. Process (To be completed within 3 month of initial funding) Phase One will define the human, technological and strategic operational components of the National Playbill service, by identifying: o How live entertainment data and information; Is collected and stored Is turned into effective content for maximum impact Is organized to provide: Customizable Searches for audiences Audience targeting for advertisers and sponsors based on: o Psychographics o Demographics Is distributed by using:

7 o o Print media such as playbills, flyers, posters, etc. Online event calendars Social media Mobile applications How relationships with live entertainment venues, promoters, artists and managers are: Established Developed Maintained. How the National Playbill services are monetized by: Selling advertising Selling mobile applications Selling memberships Selling sponsorships Through additional products, to be developed in phase 3, such as: Selling online merchandise for artists Selling tickets Selling venue liability insurance Presenting live entertainment Live entertainment support Summary of Phase 1: 1. Definition of corporate mission, including, identifying the problem that the National Playbill service is addressing and how the National Playbill plans on addressing the problem. a. Timeline Initial work completed, ongoing updates will be made as needed. b. Budget - $0 2. Establish legal entity and ownership for operations in Canada and internationally. a. Timeline The National Playbill name has been registered in Canada and NationalPlaybill.com,.net,.org and.ca have been registered and the National Playbill has been incorporated nationally. Provincial incorporations have not been completed yet and no international incorporations have been done yet. Provincial incorporation is the next priority and will be achieved within the first three months after funding has been established. b. Budget - $10, Product identification and valuation to establish the products to be sold by the National Playbill and to have an independent consultant create a pricing structure that takes into account all production costs and profit margins required for operations. a. Timeline to be completed within the first four months after receiving initial funding. b. Budget - Consulting work: $40, People and Positions need to be hired for the development and implementation of the National Playbill service.

8 a. Timeline Phase one hiring to be completed in first four months, but, hiring and position evaluations will be an ongoing part of operations. b. Budget Staff wages $22,500, HR Consulting $5, Technology Web site development, online calendars of events, downloadable playbills, data collection tools, web design, graphic design, content creation, social media applications and strategies and mobile apps are all critical to the success of the National Playbill program, and all components will be identified and developed in phase 1. a. Timeline development and refining will be ongoing, but, a working site and all of the major technological components will be ready within the first five months of initial funding. b. Budget - $110,000 total = $75,000 Website, $15,000 Calendar, $20,000 Ap. Development. 6. Process includes identifying the operational components of the National Playbill. Using initial executive staff and contract consultants, all of the functioning components of the National Playbill will be identified and incorporated into an ongoing business plan. a. Timeline Initial business plan and process identifications completed within 3 months of initial funding. Business plan updates and process modifications will be ongoing. b. Budget Contract Consultant $20,000, Executive Staff $15,000. Initial Budget for Phase 1: 1. Budget - $0 2. $10, Budget - Consulting work: $40, Budget Staff wages $22,500, HR Consulting $5, Budget - $110,000 total = $75,000 Website, $15,000 Calendar, $20,000 Ap. Development. 6. Budget Contract Consultant $20,000, Executive Staff $15,000. Total Budget for Phase 1: $222,500.

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