RoughCuts Productions In association with

The Saltwater Collective

DOCUMENTARY & WEBSITE BUSINESS PLAN

~~~ Minds in the Water

November 2007

Contact: Justin Krumb, President 961 Hygeia Ave Encinitas, CA 92024

phone 760-473-4134 & fax 760-635-3981 Justin@RoughCutsTV.com www.RoughCutsTV.com

The information contained in this business plan is confidential and proprietary to RoughCuts Productions (the “Company”) and is intended only for the persons to whom it is transmitted by the

Company or its representatives. Any reproduction of this document, in whole or in part, or the divulgence of any of its contents without the prior written consent of the Company, is prohibited.

This is a business plan. It does not imply and shall not be construed as an offering of securities. Persons

interested in pursuing an investment should contact their professional advisors.

Confidentiality Agreement

The undersigned reader acknowledges that the information provided by RoughCuts Productions in this business plan is confidential. Therefore, the undersigned reader agrees not to disclose any of such information without the express written permission of RoughCuts Productions. It is hereby acknowledged by the undersigned that the information to be furnished in this business plan is in all respects confidential in nature (other than such information which is already in the public domain through other means) and that any disclosure or use of same by the undersigned may cause serious harm or damage to RoughCuts Productions. Upon request, this document is to be immediately returned to RoughCuts Productions. Signature Print Name Date

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TABLE OF CONTENTS Confidentiality Agreement.................................................................................................................................. i EXECUTIVE SUMMARY.....................................................................................................................................1 I. THE COMPANY .....................................................................................................................................2

1.1 Company Background...................................................................................................................2 1.2 Directors .......................................................................................................................................2 1.3 Outside Consultants & Professional Advisors................................................................................3 1.4 Business History ...........................................................................................................................3

II. MARKET ANALYSIS.............................................................................................................................3 2.1 Industry Analysis ..........................................................................................................................3 2.2 The Market....................................................................................................................................3 2.3 The Competition ...........................................................................................................................4

III. THE PROJECT.........................................................................................................................................4 3.1 Synopsis of Script .........................................................................................................................4 3.2 Writers ..........................................................................................................................................4 3.3 Production Crew ...........................................................................................................................5 3.4 Goal ..............................................................................................................................................5 3.5 Rating ...........................................................................................................................................5

IV. PRODUCTION PLAN............................................................................................................................5 4.1 Development .................................................................................................................................5 4.2 Pre-Production ..............................................................................................................................5 4.3 Production.....................................................................................................................................6 4.4 Post-Production.............................................................................................................................6

V. DISTRIBUTION PLAN..........................................................................................................................6 5.1 Distribution Pattern .......................................................................................................................6 5.2 Publicity........................................................................................................................................8 5.3 Advertising ...................................................................................................................................8

VI. MANAGEMENT & MILESTONES......................................................................................................8 6.1 Management Team........................................................................................................................8 6.2 Major Milestones ..........................................................................................................................9

VII. FINANCIAL PLAN.................................................................................................................................9 7.1 Use of Proceeds.............................................................................................................................9 7.2 Financial Assumptions ................................................................................................................10 7.3 Income Projections......................................................................................................................11 7.4 Early Negotiations.......................................................................................................................11 7.5 Future Projects ............................................................................................................................11

APPENDIX “A” [support documents]..............................................................................................................13

ROUGHCUTS PRODUCTIONS BUSINESS PLAN

EXECUTIVE SUMMARY

Company Background

RoughCuts Productions (the “Company”) is a limited liability corporation incorporated under the State of California, which has been engaged in the business of film production and distribution for the past thirteen years. The Company is managed by a team of three individuals with a total of twenty five years experience in the film industry, a chief financial officer with thirty years of accounting and administrative experience, and supported by a host of supporting creative teams with decades of experience in the craft of filmmaking and documentary television. Project

“Minds in the Water” a worldwide multimedia awareness campaign which includes a feature-length documentary film about the journey of traveling professional surfer Dave Rastovich, from an ocean-minded admirer to an ocean activist and an interactive visual petition website. MITW is the tenth project the Company has placed into development. Opportunity

With successful distribution, revenue opportunities include home video, DVD sales, television contracts, international theatrical releases, and educational markets. While the film industry is highly speculative, it is estimated that the project could gross a median figure of $1.6 million among different venues and products. Capital Requirements

The Company requires an estimated $600,000 in order to produce and distribute the film and launch and maintain the visual petition website.

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I. THE COMPANY

1.1 Company Background

The Company was incorporated on 2/15/04 in 2004. The head office of the Company is located at 961 Hygeia Ave Encinitas, CA 92024. Roughcuts Productions is the parent company of The Saltwater Collective. The Saltwater Collective is a group of award-winning artists, filmmakers, designers and athletes that are committed to creating awareness—through thoughtful, entertaining documentaries and various media—of the imperiled state of the world’s oceans and cultures. At the same time we seek to explore and highlight possible solutions. We view each project as a singular event, transmitting its own unique message and feel. 1.2 Directors

The Company’s Board of Directors, which is made up of highly qualified business and industry professionals/experts, and will be a valuable asset to the Company and instrumental to its development by assisting our management team in making appropriate decisions and taking the most effective action; however, they are not responsible for management decisions. The following persons are the current Board of Directors of the Company: Justin Krumb Director/Producer Justin is the founder and president of RoughCuts Productions (RCP) and a producer-director with a focus on feature documentary and television production. For well over a decade Krumb has worked on a variety of documentary and commercial projects in countless countries spanning the globe, ranging in subject matter from sports documentary and adventure travel to humanitarian and environmental issues. His television and documentary credits include The ESPN X-games, The Surfer’s Journal, First Hand, Wave of Compassion and The Next Wave: A Tsunami Relief Story. As a multi-faceted producer, Justin’s work has been shown on Fox, ESPN, Outdoor Life Network, Fuel TV, Speed Vision, National Geographic TV and PBS as well as at multiple film festivals including X-Dance Film Festival, San Sebastian International Film Festival, Hawaiian Ocean Film Festival and Regional Emmy Awards. In addition to creating RCP, Krumb co-founded the internationally recognized website SurfHistory.com Justin has worked with such celebrity talent as Hayden Panettiere, Robin Williams, Jack Johnson, Bob Dole, Lance Armstrong, Esi Morales, “Wingnut”, Trevor Hoffman, Kelly Slater and Tony Hawk. His work as a Producer/Director/Editor has earned him an Emmy Award for best documentary, an X-Dance award for best film score, and multiple regional Emmy nominations for directing, editing and camera work in long form television, documentary’s and PSA’s. Dav Rastovich Talent/Co-Producer As a professional traveling free surfer Dave has embraced a multitude of cultures and seascapes throughout most of his life. Freed from the constraints of producing contest results Dave actively pursues his passions and has learned to apply his convictions via the adventure of surfing. His contacts with dolphins, whales and other sea creatures have lead him to an awareness of the interconnected nature of all life, and the delicate systems that allow this network of life to exist. Dave, 27, is currently sponsored by Billabong International and travels the world over half the year as one of their star athletes, appearing in a select number of magazine, books and film projects each year. In addition to his extraordinary surfing ability, Dave is also an accomplished filmmaker and musician. His gamelan beats for Wave of Compassion won the 2006 X-Dance award for sound design. Film credits include: Wave of Compassion, Sprout, The Next Wave, Blue Horizon (winner of the 2005 X-Dance film festival) and Life Like Liquid, which he produced and directed in 2006.

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1.3 Outside Consultants & Professional Advisors

The Company’s outside consultants and professional advisors provide tremendous input and support to enable management to make well-informed, creative and appropriate decisions:

• McDonough & Associates CPA • Coast Law Group, LLC • 540 Productions, Marketing Specialists

1.4 Business History

Since 2004, the Company has been a steady supplier of written and filmed products to domestic and foreign distributors.

Wave of Compassion (2004)* Blue Horizon (2004)* Kokua (2004)** Next Wave (2005)*** Life Like Liquid (2005)

*X-Dance Award Winner 2006 **Emmy Award 2005 ***Emmy Award 2006

II. MARKET ANALYSIS

2.1 Industry Analysis

The documentary film industry has changed dramatically over the last 25-30 years. Historically, independent filmmakers dominated the industry by producing and distributing the majority of documentaries made in North America. Currently, however, many documentary films are produced and distributed by entities other than the independents, including mainstream movie production companies. In addition, the financial structure of the industry is experiencing an important change resulting from the expansion of television, cable, the Internet and increased popularity of DVDs. While mainstream companies own their own production studios (equipment, sound stages, post-production facilities), have national and worldwide distribution, produce and release films with budgets of millions of dollars, and provide a continuous supply of product to exhibitors, the independent filmmaker must rely on others to help produce and distribute a documentary film. An independent must raise funds, which can range well into six and seven figures, to either rent or purchase production equipment and post-production facilities, to hire the necessary people, and to find distribution outlets. Because the costs are so high, independents are forced to apply to the public and private sectors to obtain funding. Since few independent filmmakers produce and distribute documentary films for profit, they must create vehicles for funding that are consistent with underwriters and sponsors who are looking for returns other than profits. The documentary film industry consists of two broad principal activities: (i) production, which includes development, financing, pre-production, principal photography, and post-production; and (ii) distribution, which includes advertising, publicizing, licensing, release and exploitation of the film. 2.2 The Market

The average market of a documentary film ranges from screenings at neighborhood theaters to multiplex theaters in larger urban centers. With constant changes in technology in television, cable, film, and home entertainment, the market can more easily access documentary films to view. This accessibility extend to include those who are either unable to attend theaters or would just rather watch films at home.

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The PR the project has generated has already attracted attention from all over the world. The Company believes it will appeal to a broad audience, both male and female, in the 18 to 54 age range, and of diverse cultural and philosophical backgrounds. While documentaries are only a small portion of the total film industry, they have the potential to generate significant income. However, many pieces have to fall into place for that to happen, and many documentary films are made to tell a story objectively and accurately, without employing the kind of gimmicks or promotion that can help create box office success. As Robert Redford once said, “Documentary films have the power to reveal truth in ways other genres don’t.” But getting that message out to audiences requires distribution, and it is through distribution that a documentary film gains revenue potential. 2.3 The Competition

Consumers have many choices for ways to spend their leisure time and dollars. All of these hobbies and leisure activities compete with films. The major leisure time activities which compete with watching films are: cable and satellite television, broadcast television, home video and DVD, recorded music, radio, Internet, reading, and video games. Recent studies have shown that filmed entertainment comprises over 50% of total media consumption. This is the segment where a majority of the Company’s product offering falls. In categories where the Company does not currently plan to offer a product, it will use that medium to generate interest through publicity and advertising. By offering multiple products based on the documentary, the Company intends to compete in multiple markets, increasing revenue potential and public awareness of the project. Feature documentaries are much more than just a means of entertainment; they are also educational. This increases the potential audience for the project. The greatest competitive threat to the project would be if another production company also makes a film based on the subject matter and releases it before or at the same time as our project. This could adversely affect the ability to secure distribution for some areas. If the media becomes saturated with the subject through numerous projects being released at or near the same time, it could be difficult to get the kind of public attention necessary to drive audiences to the theater and to purchase the related products. The strength of feature documentary films resides in the subject matter and how it is presented. The production quality of the film will enhance its ability to compete with other movies vying for the consumer’s time and money. Professional camera, sound, lighting, writing, directing, and production, along with a compelling story and intriguing characters, will make the film a contender at film festivals and at the box office. Similarly, attention to such details in the development of the non-film products will make them competitive in their respective markets.

III. THE PROJECT

3.1 Synopsis of Script

Minds In The Water documents the journey of traveling professional surfer Dave Rastovich, from an ocean minded admirer to an ocean activist. Through the charismatic journey of Dave’s life witness an adventure spanning the globe from Australia and the Galapagos to Tonga, Alaska and Japan. See first hand how one surfer’s quest to protect dolphins and whales has blossomed into a movement of like minds. The message: if ocean minded people are to pass on a sustainable culture, then they must become responsible stewards of their coastal environment. 3.2 Writer

Steve Barilotti - Writer Over the past decade working as Surfer magazine’s globe roaming editor-at-large, photojournalist Steve Barilotti has made it his business to document the sport, art, and lore of surfing. A lifelong surfer and

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fourth-generation Californian, Barilotti’s passion for ocean culture runs deep. His writing has also appeared in The Perfect Day and the books of renowned surf photographers Art Brewer and Ted Grambeau and the hugely popular LeRoy Grannis—Birth Of A Culture released by Taschen books in 2007. In last five years “Barlo” has veered into screenwriting, helping produce a handful of surfing-related documentaries, including the Emmy-award-winning “Kokua” and “Wave of Compassion”.

3.3 Production Crew

Justin Krumb Director / Cinematographer Steve Barilotti Writer / Production Assistant Dave Rastovich Pro Athlete / Talent Hannah Fraser Production Designer Bali Strikland Cinematographer 3.4 Goal

The Company’s goal in making this film is to create awareness and to educate people about the message: “If ocean minded people are to pass on a sustainable culture then they must become responsible stewards of their coastal environment ~ Dave Rastovich.” 3.5 Rating

The film will be rated G, for general audiences. This designation allows all ages to be admitted to theaters to view the work. The documentary will be protected by: California copyright law. Use of the original material by other parties may be used only through the granting of rights, in exchange for compensation.

IV. PRODUCTION PLAN

4.1 Development

Researching the subject matter of a document is crucial. It helps a filmmaker determine whether there is enough material, and the right kind of material, to make a film. The Company is currently finalizing this initial stage of production. The remaining development is expected to take twelve months to complete. During this time, the Executive Producer will obtain funding, oversee the production and line production, and obtain distribution. A total of 4 Producers oversee production, line producing, interactive media, and distribution. The Writer writes the story outline, the treatment, the proposal, and the script (if the Director wants to shoot from a script). The Director works with the EP, the Producers and the Writer regarding the story outline, treatment and script, the hiring of the crew, and directs the filming, including editing and distribution. The people involved in development will complete a project analysis, which includes research, writing the outline, the treatment, location scouting, and planning the logistics for the production. This requires formulating the budget, determining what equipment will be used for what scenes and where, determining the size of the production crew, the length of time for the production, and how long each member of the crew will be needed. 4.2 Pre-Production

During the pre-production phase, the Cinematographer / Videographer and the crew are hired. The filmmaker finalizes the budget and the shooting schedule, obtains insurance, establishes locations, secures studio facilities and stages, and generally prepares for the actual commencement of principal photographer. This phase has already been completed. The Executive Producer and the Producers will prepare the budget, set up shooting logistics and the shooting schedule, prepare appropriate coverage, and begin seeking distribution.

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4.3 Production

This phase consists of the actual filming of the documentary by the Director and the crew. Principal photography may extend from twelve to sixteen weeks or more, depending upon such factors as budget, location, weather, and unpredictable complications. At present, we anticipate principal photography twelve. Principal photography will include interviews, locations, photos, illustrations, paintings, maps, archive footage, and action footage. The EP and Producers oversee all aspects of production, including administration, payroll, and development of interactive media, promotion, and distribution activities. 4.4 Post-Production

The post-production phase encompasses the editing of the film, along with incorporating opticals, narration, music, sound, and effects. Protective duplicates of the cut negative as well as release prints are made if the film is shot on celluloid. Post-production is anticipated to extend over six months. The EP, Producers and the Director will rent an editing suite, have the film developed and transferred to tape, hire an editor, set the editing schedule, and digitize tapes. They will conduct a paper edit and then edit the film. This last step includes scanning artwork, recording narration, completing voice-overs and ADR, recording music, preparing graphics, captioning, and synchronizing sound, foley, opticals and titles.

Production Timetable

Phase Time Required Completion Date (est.) Development 12 months January 08 Pre-Production 12 months January 08 Post-Production 6 months September 08

V. DISTRIBUTION PLAN

5.1 Distribution Pattern

The Company intends to secure a distribution pattern that will maximize exposure to the film’s message and potential returns. Distribution entails the licensing of certain exhibition rights to various territories and media. It is the option of the distributor to specially tailor the release of the film. Depending on its appraisal of anticipated audience behavior, the marketing strategies of a distributor often make a significant difference in the exposure potential of a film. Additionally, having the film entered in film festivals provides wide exposure, particularly if the film wins a prize. The Executive Producer and the Producers begin working on distribution when the film is still in development. Films have an eternal life, and proceeds can be lucrative. The push for evolving and continuing distribution over the years lends itself to a higher level of earnings. Film distribution is essentially endless. With the value of the educational scope of the project, the film bears the potential of being perpetual. During distribution, pre-sales of certain exhibition rights for the film may be arranged. This would provide the Company with non-refundable guarantees or advances against future territory and media licensed proceeds. Occasionally, portions of pre-sale advances are either paid upon execution of the Pre-Sale Agreement or, alternatively, during the course of production. The filmmakers are currently seeking co-production and distribution partners for the project. Final distribution strategy will be determined in coordination with those partners. One of the primary advantages of the film is the ability to appeal to a growing audience of young viewers with an eco-

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awareness. From surfers and divers to ocean minded cultures and animal lovers, the symbol of a dolphin or whale invokes a special meaning. Because the subject matter of the film offers an intriguing perspective on a universal theme and the cinematic elements of the project are visually stimulating, the film will appeal to both general audience viewers and more traditional action sports and documentary subject viewers. “Minds in the Water” has the potential to reach an extraordinarily large viewing audience, making it significantly more appealing for distribution than a typical documentary or sports-related film. Overall, the filmmakers envision a four-part distribution plan: Domestic/International Theatrical

With few exceptions, films play first in theaters throughout the United States and Canada. Theatrical opening distribution patterns are intended to maximize the theatrical rentals of a film. Success in this marketplace typically has a strong influence on a film’s exposure in subsequent markets. The Company plans to target film festivals and limited theatrical release in North America and Australia and Japan. Initially focusing on key film markets and high-profile film festivals such as AFM, Sundance, Cannes, Maui, Santa Barbara, Byron and Sydney film festivals. Worldwide Home Video / DVD

Generally about six months after its theatrical release, a film including Extras and a possible Soundtrack will be licensed for sale/release on home video and DVD. Industry formulas attempt to predict exposure and exhibiting life spans so as to optimize the exposure. This pertains to all secondary and ancillary market licensing rights. While DVD is the leading format for home viewing, the Company may consider additional release a VHS format of the film. Pay Television

Another leading home exhibitor is pay television. This is important in North America, and has gained importance internationally as well. Films may be licensed to pay television services, then distributed to homes via cable or broadcast transmission.

Domestic/International Television

Another leading home exhibitor is television. This is important in North America, and international target markets such as Austral/Asia, and Europe. Films may be licensed to pay television services, then distributed to homes via cable or broadcast transmission. Most films are licensed to television networks, including cable, for a specified number of airings over a specified number of years. In the syndication market, films are licensed to independent and network-affiliated television stations. A film may return to pay TV after appearing on network in syndication. The widely expanded cable television market creates an opportunity, as well as a competitive threat to the Company, since cable TV’s wide offerings could reduce the number of audience members paying for movies. However, the growth in the industry indicates that this has not happened yet. Instead, the greater number of channels creates a higher demand for quality programming, increasing the likelihood that the Company will sell the television and cable rights, getting exposure to at least a fraction of the millions of households in the United States with basic cable. Hybrid Format Release Increasingly, hybrid formats such as streaming and downloadable computer formats, mobile formats and exclusive HDTV formats ARE becoming viable additions to a traditional distribution strategy. The filmmakers will seek to leverage these formats by potentially creating short-form “webisodes” of the content for specialty distribution.

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Educational Institutions, Libraries & Museums

Distribution to educational institutions, libraries and museums is commonplace for the independent documentary film. Films are generally distributed via a distribution agreement between the filmmaker and the distributor with licensing rights belonging to the filmmaker. The length of time for distribution varies from one year to several years, depending upon the popularity and subject matter of the film. Typical distribution involves selling the film to multiple institutions in video / DVD format. Documentary films provide a market venue that far exceeds the classroom and serve to increase educational returns with those films for the market. Once the documentary is made and distribution is underway, other rights may be sold as the opportunities present themselves, including book rights, rights to the music soundtrack and merchandising rights. 5.2 Publicity

Publicity will be an essential component of the distribution plan. It may even be more effective than advertising since, unlike paid advertising, audiences often perceive publicity as “news”. Additionally, publicity is much less expensive than purchasing advertising space and can generate strong word-of-mouth promotion. The Company will hire a publicist to fully exploit publicity opportunities with independent distributors, radio stations, TV channels, newspapers, consumer magazines, educational institutions, libraries, museums, professional associations, the Internet and interactive media. Producers and actors involved in the film will assist by giving presentations to groups and interviews to the media on the subject of Minds in the Water. Specific media targeted include FOX, ABC, NBC, CBS, CNN, Fuel TV, and Turner Broadcasting. 5.3 Advertising

Advertising surrounding the release of the film will supplement the publicity effort. Print advertising and movie trailers will be most widely used. Other media will be pursued as the budget permits.

VI. MANAGEMENT & MILESTONES

6.1 Management Team

Justin Krumb, President Bachelor of Arts degree in, Radio/TV/Film Justin is the founder and president of RoughCuts Productions (RCP) and a producer-director with a focus on feature documentary and television production. For well over a decade Krumb has worked on a variety of documentary and commercial projects in countless countries spanning the globe, ranging in subject matter from sports documentary and adventure travel to humanitarian and environmental issues. His television and documentary credits include The ESPN X-games, The Surfer’s Journal, First Hand, Wave of Compassion and The Next Wave: A Tsunami Relief Story. As a multi-faceted producer, Justin’s work has been shown on Fox, ESPN, Outdoor Life Network, Fuel TV, Speed Vision, National Geographic TV and PBS as well as at multiple film festivals including X-Dance Film Festival, San Sebastian International Film Festival, Hawaiian Ocean Film Festival and Regional Emmy Awards. In addition to creating RCP, Krumb co-founded the internationally recognized website SurfHistory.com Dave Rastovich, Director Professional Athlete Dave, 27, is currently sponsored by Billabong International and travels the world over half the year as one of their star athletes, appearing in a select number of magazine, books and film projects each year. In

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addition to his extraordinary surfing ability, Dave is also an accomplished filmmaker and musician. His gamelan beats for Wave of Compassion won the 2006 X-Dance award for sound design. Film credits include: Wave of Compassion, Sprout, The Next Wave, Blue Horizon (winner of the 2005 X-Dance film festival) and Life Like Liquid, which he produced and directed in 2006.

6.2 Major Milestones

The Company has set several key milestones, which will propel the project forward. The most immediate goals include financing, staffing, and completion of the trailer and the film.

Milestone Target Date Completion of financing February 2008 Completing contracts for core management

Complete

Completing contracts for key talent Complete Completing trailer for use in distribution September 2008 Completing documentary film September 2008

Once the filming is completed and the Company has a product to introduce to the market, distribution goals become the priority.

Milestone Target Date Acceptance into film festival competition September 2008 Securing first distribution agreement January 2008 Release of film to national audiences November 2008

VII. FINANCIAL PLAN

7.1 Use of Proceeds

The film is being made for the following reasons: Minds in the Water mission is a global awareness campaign dedicated to the conservation of marine mammals and the world’s oceans.. The film’s reward will ultimately be of greater value than monetary gain. The documentary itself, as well as the distribution of the film in alternative forms (DVD, VHS, interactive media, etc.) will create a significant awareness of the events detailed in the film, it will educate a wide audience and create an understanding of the issues underlying the story. The Company is seeking $500,000 dollars over the next 1 year to complete this documentary film and get it into distribution. The following table sets out how management intends to use the funds raised. Use of Proceeds

Expense Item Amount Fixed Costs Producer 30,000 Co-Producer 30,000 Associate Producer 15,000 Associate Producer 5,000 Pre-Production 5,000 Stock Footage 30,000 Equipment 63,000 Miscellaneous 40,000 Editorial & Finishing 27000 Director / Creative Fees 45,000 Insurance 1,500

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Expense Item Amount Total Fixed Costs 291,500 Variable Costs Location & Travel 93,250 Miscellaneous Tape, Filmstock, Process, Transfer 11,300 Talent Labor 30,000 Cinematographer 15,000 Animation 30,000 Consultants 10,000 Researcher 2,000 Publicist / Press Kit 3,000 Office Administration 6,000 Legal Fees 2,500 Accounting Fees 1,500 Payroll Advertising & Promotion 20,000 Postage & Shipping 1,000 Duplication 10,000 Total Variable Costs 235,550 TOTAL COSTS 527,050

Financial controls will be conducted by management and by the Company’s accountants, Mc Donough & Associates CPA. 7.2 Financial Assumptions

The cost estimates and income projects are based on the following assumptions:

Shoot Breakdown: Australia 15 shoot days Japan 10 shoot days Galapagos 10 shoot days Alaska 7 shoot days Tonga 7 shoot days California 7 shoot days Florida? 7 shoot days Bahamas? 7 shoot days Expense: Producer/Director 30 days @ $1000/day Co-Producer / Talent 30 days @ $1000/day Associate Producer / Writer 30 days @ $500/day Associate Producer / Designer 30 days @ $100/day Revenues:

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Box Office (film) 5,000 tickets @ $10/ticket = $50,000 Education (film) 2000 videos @ $20/video = $40,000 Cable & Television (13) half-hour episodes @ $50,000/ea = $650,000 (6) 1 hour episodes @ 100,000/ea = $600,000 Video / DVD 2009 – 20,000/units @ $10/to distributor = $200,000 2010 – 10,000/units @ $10/to distributor = $100,000 2011 – 5,000/units @ $10/to distributor = $50,000 Merchandising T-shirts- 5,000/units @ $20 per shirt = $100,000 Soundtrack 50,000 copies @ $10/copy = $500,000

7.3 Income Projections

While the non-financial gains from the project are clear, the Company cannot quantitatively project revenues with any certainty. With approximately 500 films produced and released each year, it is nearly impossible to predict which ones will capture the audience’s attention and remain in theaters for significant periods of time. For purposes of this business plan, management has attempted to estimate possible returns on the investment. If the Company is successful in producing a quality product and securing distribution contracts, the following revenues are projected.

SOURCE OF REVENUE Low Expected Better Box Office Revenue (film) $50,000 $100,000 $150,000 Education Revenue (film) $20,000 $40,000 $60,000 Cable & Television Rights $500,000 $1,000,000 $1,200,000 Video / DVD Rights $150,000 $350,000 $425,000 Web revenues from advertising partners $50,000 $100,000 $175,000 Merchandising Rights $50,000 $100,000 $150,000 Soundtrack Rights Total Revenue $820,000 $1,690,000 $2,160,000 The Company can reasonably predict that the funds requested would be sufficient to produce a quality documentary, true to the vision described in this plan. The budget allocates resources to distribution of the film where there is opportunity for producing revenue. In the event that the project generates a profit for the Company, those proceeds will be used to help fund future projects that are consistent with the Company’s mission. 7.4 Early Negotiations

The Company is currently working with such talent as Hayden Panettiere, Jack Johnson, Ben Harper, Isabelle Lucas and Kelly Slater who have expressed an interest in taking part in the project and furthering the MITW cause. 7.5 Future Projects

The Saltwater Collective currently has multiple projects in different stages of development. Below is a short description of some of our highlighted projects. The Ragged Edge There’s exciting, there’s extreme and then there’s the Ragged Edge. It’s the “out there” fringe … where the adventure is always fresh, nothing is predictable, and the only thing you can count on is the unexpected.

Join adventure host Conway Bowman for a next generation experience, where sometimes we venture off the beaten path, and others we find the action right in the shadows of downtown. But every

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time, our angle is true, it’s about adventure and lifestyle. Join us as we revel the next generation of adventure sportsmen in, “The Ragged Edge”.

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APPENDIX “A” [support documents]