Entertainment Production, Distribution, and Performance Company
Mentonic Hero Inc.

2298 Rogers Ave.
Los Angeles, California 90023

This probably needs a bit of an introduction—it is not your run-of-the-mill business plan. It is somewhat unconventional, a bit more 'flashy' than most, you say … but, you know what? I bet you will read it. It's slightly different, a bit innovative and certainly creative. You see, we had a difficult time conforming to the formal approach, and every so often, we slightly break the rules of business plan etiquette.

We wanted our business plan to convey that, and we wanted you to know our intentions … Someone or something comes along that makes us sit up and pay attention. Something that touches us at a level much deeper than routine … something that whispers to the soul because it holds value, honesty and integrity. Pay attention. This may be that something.

EXECUTIVE SUMMARY

Mentonic Hero Inc. is formed as an entertainment production, distribution and performance company specializing in the utilization and maximization of current entertainment business opportunities available—the worldwide reach of the 500 TV channels that has spurned a vacuum of need for TV Series. This demand is unrelenting for quality animation programming.

We currently have distribution agreements in place for the Asia market with a company called International Television in ASIA. We have an industry expert in place to write the show bible and the pilot script. The funding required for the first episode is $300,000; for production of 14 episodes, the cost will be in the range of $200,000 to $350,000. Producing all 26 episodes will require an investment of $6.5 million dollars.

With this level of investment needed, we will look at all venture proposals and offer competitive rates of return based on industry standards.

That being said, let's explain that the balance of this business plan may not follow all those revered rules of professional etiquette proffered by the 'experts.' We are a rather innovative and creative bunch, not given easily to the molding of the masses into narrow visions of 'should' and 'have to.' On the other hand, we have been around a while and thus gained insight and wisdom lending value to learned lessons and 'right' paths. There is immeasurable worth and undeniable clarity that comes from a good business plan. The proof, however, is whether it accurately describes, foretells and transmits the focus and objectives of the company itself. Time will tell, we assume, but perhaps you can judge for yourself if the following 'rings true' and holds significance for you.

Mentonic Hero offers consumers of a new variety of TV series; it also offers potential investors a planned return-on-investment opportunity with the potential for toys, video games, and other types of merchandising.

Such projects will enjoy the umbrella security, strategic relationships, beneficial knowledge and proficient talent provided by the holding company, Mentonic Hero.

Television Series Synopses

Mentonic Hero is a young boy in his early 20's and an unassuming, near-anonymous super hero. He appears to be a completely normal boy, aside from the fact that one of his arms is made of steel; at first glance, the arm appears to be a prosthetic. He walks with a jerky motion and each step is punctuated by a compressed air, assembly-line-apparatus-like sound.

The arm is actually equipped with an abundance of features and gadgetry that aid him in his heroic acts. Mentonic Hero's dream state is subject to real-time psychic visions, and many of his acts of heroism occur by him being awoken in the middle of the night. He then flies to the scene of the crime with the rocket launcher on his steel arm. His mother is also fitted with a steel arm, and the family dog, Hydro, has four steel legs. Aside from a wholesome family environment and attending school, Mentonic Hero shares a mutual infatuation with Gertrude, the young girl who lives next door, and has a passionate interest in roller derby. He also spends quality time with his unofficial surrogate father Hatch—a conspiracy theory spewing amputee and Vietnam veteran who lives in an apartment down the hall.

The accumulative effect of lost sleep due to late night rescue missions starts to interfere with Mentonic Hero's schooling, and he consults a sleep disorder specialist. The physician, a Dr. Eve L. Rains, is actually behind a recent epidemic making headlines throughout the story—a growing number of human beings who were inexplicably turned into human/animal hybrids (oxen, cats, rabbits, etc.). Dr. Rains runs a very sophisticated underground operation, and in this element goes by her villain alter ego name "Evila". Evila possesses the characteristics of a praying mantis, and conceals her bizarre appearance when conducting her practice as Dr. Rains. She is assisted in her cause to redefine mankind by a large staff of "Poodle Men"—full grown men who were transformed into poodles by Evila. They walk upright with chests slightly protruded, and are attired in black military-like uniforms that include insignias identifying their rank within the organization. When the Poodle Men are dispatched to abduct human specimens they don ski masks, gloves and sunglasses in order to blend in with civilization. Most of the Poodle Men's activities are underscored by a generous dose of humor, as they aspire to navy seal-type precision, but are more often bumbling.

Mentonic Hero begins to see Dr. Rains for treatment in the hopes she can help him sleep through his many demanding dream states. Through a chain of events, Mentonic Hero deduces that Dr. Rains is the mastermind behind the growing "animal people" epidemic, and he confronts her. She refutes the accusation, and the two have a dramatic exchange that results in Mentonic Hero vowing to bring her to justice, and Evila shutting down her "arms itimate" practice and going into hiding. Mentonic Hero continues to monitor the animal people developments and builds a liaison with a police detective, while Evila's Poodle Men keep a round-the-clock spy watch on Mentonic Hero so as to determine any threat level. After the Poodle Men conclude Mentonic Hero poses no serious threat, Evila instructs the Poodle Men to abduct Gertrude; she wishes to incite Mentonic Hero to become a true archrival so as to offset her relative boredom in the midst of her ascension to world domination. Gertrude is abducted and subsequently transformed into a virtual penguin. Mentonic Hero's dream state reveals this to him, and he flies into the night to rescue his beloved friend. Landing in the vicinity of Evila's compound, confused Mentonic Hero is helped to the exact location via a telepathic dialogue with a pigeon he crossed paths with earlier in the story. The two penetrate the highly secured headquarters and proceed to dismantle Evila's operation, climaxing in a giant fight scene with the Poodle Men that is reminiscent of Bruce Lee kung fu movies. In the final showdown, Evila spars with Mentonic Hero until he shatters her kneecap with his steel arm and she reduces herself to insect size and flees. Evila's chief confidant is more brains than brawn and impotently caves in to Mentonic Hero's demands for the "animal people" cure serum. Mentonic Hero rescues the penguin-faced Gertrude and the two share a touching moment and comical bit of kissing.

The final episode ends with Mentonic Hero watching the newly restored animal people being interviewed on TV with his mother, Hydro, Gertrude, Hatch, and the pigeon. The interviews include Evila's chief commander in human form via satellite from a federal prison cell. "Harry Queen", a Larry King caricature that monitors the animal people epidemic throughout the entire story, lambastes him for abandoning his post as France's diplomat to Guam to serve with Evila. (Before and after photos showing transition from dignitary to menacing "Poodle Man" are shown, etc.)

GROWTH STRATEGY

Objectives

Setting up our production company, we realized that along the way we will have more than one project and Mentonic Hero is just one of them. The investor will have access to other projects we produce; this will be based on a pre-negotiated agreement. The greater the return, the greater the investment.

Goals

1. Attract $200,000-$350,000 from outside investors
2. Secure an additional $6,500,000 to produce the complete package of films

The keys to our success include:

1. The strategic organization of creative endeavors into project format, allowing each project to be individually financed, developed, maintained and tracked according to its unique requirements and objectives. This provides the 'umbrella security and licensing' from Mentonic Hero Inc. but allows each project to live out its own singular existence. In addition, each project becomes a viable revenue source for Mentonic Hero Inc., dependent upon its own success and market worthiness. The multiple-project format also allows a broad diversity of effort and application to maximize the potential inherent in each market through individual projects. Finally, this format also dilutes the risk involved with each individual project for Mentonic Hero Inc. as a result of the separate funding secured for each project.
2. Development of multiple avenues of visibility for Mentonic Hero Inc. through strategic contacts, traditional advertising, digital TV satellite access and product development.
3. Strategic utilization of the unique pool of production and performance talent integral in the personnel makeup of Mentonic Hero Inc.
4. Excellence and commitment woven into every finished product and performance, thus creating the integrity Mentonic Hero Inc. shall possess.

COMPANY HISTORY

Mentonic Hero Inc. is a newly formed Limited Liability Company providing high-level expertise in the performance production industry. Mentonic Hero Inc. is not interested in competing with the major studios; we just want to find our own niche market. It has been created to fulfill the dreams and expectations of those people who desire their children to view quality TV and to satisfy the demand for such entertainment in the 500 Channel Universe.

Company Ownership

As a Limited Liability Company, ownership of Mentonic Hero Inc. is identified as belonging to its managers.

Summary of Start-up Costs

OPERATIONS

Mentonic Hero Inc. will seek appropriate office space offering many benefits to the company:

• A close association with the entertainment industry
• Competent and professional production companies and studios
• Competent, experienced and professional studio and staff
• Marketing and distribution avenues through particularly strong ties to West Coast companies as well as to East Coast companies
• A burgeoning group of Internet-related companies providing services in the fields of graphics, Web-hosting, Web-marketing, CD reproduction and software distribution that will allow our TV series to be easily distributed
• Piggyback opportunities with both performers and their associated production companies

PRODUCTS & SERVICES

A savvy production group such as ours will weigh the performance, charisma, audience acceptance, production grasp and overall marketability of each animation project and incorporate only those peripheral 'products' that develop into viable components of the project.

This requires good judgment, extensive experience, and strong management ability, not to mention perhaps the most important and elusive capability … that of 'reading' the market. Mentonic Hero Inc. encompasses individuals with separate and unique abilities lending themselves to this process. The overall excellence in this endeavor, however, rests in the comprehensive combined expertise of the principals of this company. Combined, we have backgrounds in the entertainment industry, business management, marketing, accounting, production, public relations and solid business application. These strengths point to an overall understanding of the marketability and viability of each 'product' considered.

Mentonic Hero Inc. offers services of varied structure and expandability:

• The complete packaging of a TV series project—comprehensive production work, extensive review, in-studio production work, arrangement and editing of film products, coordination of the manufacture and distribution of product, marketing of finished product, ongoing analysis of strategic placement and acceptance of product and performance, influential public relations efforts, follow-up and maximization of audience acceptability with additional strategies to further amplify recognition and revenue, and the coordination and management of live performances in correlation with the recorded product and market demand.
• Ultimately, the 'rainbow's end' outcome of such a project would be the negotiation with and resultant contractual sale or lease of the TV series to a major TV Studio or distribution company with international reach.
• A limited packaging of a TV series to result in a specific outcome or product; e.g., a pre-determined number of runs on TV (including, of course, all the above activities required to produce said TV series). Such packaging may or may not include distribution, marketing and coordination of live performances in conjunction with the produced TV series.
• The complete production and rendition of a desired performance or show including the appropriate above-mentioned activities.
• Contractual negotiation services on behalf of a TV series production staff.
• Coordination of strategic gratis appearances of actors/artists for public relations and marketing purposes.
• The development, maintenance, funding coordination and undertaking of any worthwhile and promising project as identified.

Services

Service fulfillment will be provided by principals of Mentonic Hero Inc. in coordination with the contributing contractors required to complete the products. Companies such as animation studios, animation software manufacturers, distribution houses, licensing firms, performance venues, traditional and online advertising groups, just to name a few, are regularly contracted to contribute to the finished product.

MARKET ANALYSIS

In today's technological world, we find a challenging and ever-expanding marketplace for almost any product or service. Such is the case for the services and products we plan to create. Through the worldwide reach of the Internet, innovative and resourceful companies can market their wares literally around the world. It is likely that someone in, say, South America would contact us to package and market them a TV series for their market.

Other Cartoon TV Series and Their Market Revenues

Pokemon

Pokemon, whether it is TV cartoons, movies, trading cards or one of the more than 1,000 associated products, has generated billions of dollars for its parent company, Nintendo, since its launch as a video game in early 1996. And the phenomenon is not confined to Japan. Led by the hero Satoshi and point man (monster) Pikachu, it swept across the world in just three years. Introduced to the US as a TV cartoon in September 1998, Pokemon generated an estimated $700 million dollars in retail sales in the following year.

The weekly cartoon became the top-rated kid's TV show and the video Pokemon: Seaside Pikachu topped the bestsellers list. Sociologists engage in serious debate about the educational value of kids' obsession with Pokemon cards. The logistics, tactics and pure arithmetic involved in pitting the various monsters, each with their own strengths and weaknesses, against each other certainly make kids use their brains. And the fact that the monsters don't die as a result of their battles—they just faint—is a welcome change from the usual cartoon carnage. But stories of schoolyard fights over cards and the kind of money changing hands—some cards are traded at over $100 dollars apiece—also cause concern.

Hello Kitty

The undisputed 'queen of cute' these days is Hello Kitty. Although she's been around for 25 years, her finest hour began in 1996. The girls who had made Kitty-chan a success back in the 1970's were now the baby-boomers with money to spend. Kitty's parent company Sanrio launched a series of pink satin keitai (cellular phone) pouches that became the only ones to be sold in the youth style centers of Tokyo and beyond.

When baby-faced pop star Kahala Tomomi announced that she was a Kitty-lah (Kitty groupie), sales went through the roof. New products were knocked out almost daily, anything from Kitty stickers and hair clips to Kitty cars—real cars for the girl who has everything, painted pink and with Kitty plastered all over. Sanrio even has its own theme park, Puroland, near Tokyo where you can meet Kitty and her friends including Peckle the Duck and Keroppi the Frog. She has even managed to spread her feline empire to Asia, Europe and the US, where Sanrio has 40 stores.

The little cat with no mouth (who incidentally was born in London to George and Mary White, has a twin sister Mimi, weighs the same as three apples and is stuck in the third grade) almost single-handedly helped Sanrio to increase profits by 1,300 percent in 1997.

Doraemon

Doraemon, the robot cat from the twenty-second century, and his human pal Nobita are the Japanese equivalent of Snoopy and Charlie Brown. Nobita is a classic 4th-grade underachiever who desperately wants to be liked but can't hit a baseball or even ride a bike and is always at the bottom of his class. Together with Doraemon and the other members of his neighborhood gang, he has adventures that entertain while gently educating its young audience. Doraemon's pouch is the source of all kinds of wonderful devices from the future that can be used—and abused—by Nobita to deal with his everyday problems. He also has a dokodemo-door through which the youngsters can visit anywhere in the world and, of course, a time machine.

Doraemon first appeared in a comic book by Fujimoto Hiroshi (1934–1996) in 1969 when he came back in time to save Nobita from his own future. Since then, in paperbacks (over 100 million copies sold), TV cartoons and over 20 movies, Doraemon has been the voice of reason guiding Nobita through one adventure after another. In a sense, Nobita represents all the youth of Japan and the lessons he learns are those faced by everyone in the rapidly developing world. The show airs at 7pm on Friday evenings.

Sazae-san

Less in the realm of cute are cartoon 'people' such as Sazae-san, Chibi Maruko and Crayon Shin-chan. These characters and their families represent different takes on Japanese life and culture. They encapsulate the generational changes of the postwar years as well as any sociological study could do. Perhaps the best loved and certainly the longest-running cartoon series is Sazae-san, shown at 6:30 on Sunday evenings. Sazae (a type of shellfish—like all the characters, her name is related to the sea) is a 23-year old housewife who lives with her parents, younger brother and sister, husband and baby son. At home, Sazae is surrounded by the usual electrical appliances, drawn to resemble the latest models by Toshiba, the show's sponsor! But otherwise life is firmly rooted in a world that is no more than a fading memory for today's Japanese.

The characters were created in a comic book by manga artist Hasegawa Machiko (1920–1992) shortly after World War II and have been on TV since 1969. Hasegawa was something of a recluse and the darker side of life in postwar Japan was part of her work.

But modern-day problems rarely intrude into the TV show and key features are the opening credits showing various scenic spots around the country and the timely inclusion of seasonal and festive elements. This, together with the always-polite language of the characters, makes the show excellent for students of Japan's language and culture. For Japanese, Sazae-san—like the Tora-san movie series—provides a chance to shake off the worries of work and school and soak in the warm glow of nostalgia.

Chibi Maruko-chan

Rooted more in the semi-rural Japan of the early 1970's, Chibi Maruko-chan (Little Miss Maruko) was originally created to appeal to the childhood memories of young women. As it turned out, its appeal was broader than that, with children the same age as the third-grade heroine tuning in and snapping up all the merchandising. The characters and humor are more rounded and endearing than those in Sazae-san. Maruko does what she can to avoid homework, takes advantage of her doting grandfather and squabbles with her sister. All ends well, of course, but never without a bit of embarrassment and comeuppance.

Created as a manga in 1986 by Sakura Momoko, the TV show was launched in 1990 and reached record-high ratings for a 30-minute animation. Apart from a one-year absence in 1993, the show has run ever since in the 6pm time slot before Sazae-san on Sunday evenings.

Crayon Shin-chan

The crazed antics of the 5-year old Crayon Shin-chan are a far cry from those of other animation characters. With a habit of dropping his pants, drinking his father's beer and mooning over centerfolds, Shin-chan (his full name is Shinnosuke) is a young Japanese Bart Simpson for the 90's if ever there was one.

His long-suffering parents are not much better and are usually shown indulging in vices of their own. It is often pointed out that the materialism and aimlessness of young Japanese today stems from the attitudes of their parents. Shin-chan seems to embody that kind of theory. It was a surprise hit when it was launched in the mid-1990's, the time when this kind of social criticism was beginning to become popular. This cartoon may not have the same level of popularity or stay on the air as long as Sazae-san or even the Simpsons, but in a way it does reflect the values of its time. The show airs in the 7:30pm time slot after Doraemon on Friday evenings.

Market Segmentation

Most important in our marketing approach will be the utilization of the contact and relationship base in the entertainment industry already established by the owners and key staff of our company.

Word-of-mouth advertising represents an important aspect, as well, with the quality of each project holding paramount value in the furtherance of our good reputation. Entertainers, by nature, are a conversant lot, and word-of-mouth advertising, although difficult to track and predict, can represent a major percentage of customer attraction.

Comprehensive utilization of the marketing opportunities offered through Internet usage will be the anchor for most of our marketing programs. The Mentonic Hero Inc. website will be a focal point where anyone interested in our services may migrate for further information and contact. References to the website will be incorporated into all collateral marketing pieces and campaigns.

Internet search engine placement using correct keywords and meta tags will be employed to attract a maximum number of visitors to our website. Regular evaluations of search engine placement activity will guide our continuing strategy.

Unlike marketing a specific brand of toothpaste where large numbers of purchases create cash flow and profitability, Mentonic Hero Inc. believes that word-of-mouth advertising, combined with the effective utilization of our website and traditional marketing avenues, will create enough business to carry us well into our second year of operation and beyond.

We are also aware of the power of major Broadcasting companies; if they put their marketing muscle behind a TV series, it will be quickly become a Malcolm In the Middle if it is produced well and has a strong story plot.

As we progress further into our future, we will focus on the strengths and factors that produced the most successful and rewarding projects and continue the incorporation of those factors into our day-to-day operations.

Traditional advertising will be continuously employed, but predominantly will serve as a support and recognition tool providing credibility but not necessarily bringing in the majority of our clients.

FINANCIAL ANALYSIS

In order to understand the industry costs, we have included some industry norms.

1. A two-hour TV movie costs between $4 million and $5 million; networks are willing to pay between $3.5 million and $4.5 million for most of these movies.
2. A single episode of a 60 minute dramatic program can cost as much as $2 million. Producers can lose $500 thousand to $750 thousand per episode when the program is licensed for network viewing.

You may be wondering why these costs are so high. Here are some reasons:

• Labor costs are high (union wage scales, overtime, huge salaries for stars)
• In dramas, location shooting rather than studio shooting is common—and more expensive.
• Series can be very expensive. When it was on the air in the 1980s, Miami Vice, for example, was one of the most expensive weekly series ever produced for TV. The producers were losing so much money on it that they threatened to move the production from Miami to California to save money. NBC increased its payments to the producers, but this did not significantly reduce the deficit.

These high costs have many consequences, including:

• The high cost of programming is one of the reasons there are so many situation comedies and reality programs (e.g., Unsolved Mysteries) on TV today. They are usually much cheaper than drama shows (such as Law and Order and NYPD Blue). Low cost entertainment/news shows such as Entertainment Tonight, American Journal, and Hard Copy are on for the same reason.
• Changes in production, notably shooting outside southern California. Vancouver, British Columbia is a common place these days for a lot of shooting. Union wages are much lower here than southern California; consequently, production costs can be as much as 20 percent less in Canada.
• High tech and action scenes from other films are often inserted into shows. Reusing the scenes saves money.

Even when losing money, producers persist for many reasons, including:

• Reruns. There is a very lucrative prospect of putting the show into reruns on local TV stations or cable networks if a sufficient number of episodes (usually about 100) are completed.
• Producers own the shows. When the shows are first broadcast on a network, the network only pays for the right to show the program 2 or 3 times. The producers can then sell the rights to others to show the program.
• The revenues from the secondary sales are almost all profit. The original costs have all already been paid.
• Most of the money will go to the producers (although some will go to the stars).
• Both local TV and some cable networks thrive on showing these "off network" reruns.
• Stripping. Instead of showing a single episode each week (as the networks do during the first run of a program), the station shows a different episode each day, five days a week. This is called stripping.
• The individual price per local station may not be terribly high for a show such as Head of the Class, but if 250 to 300 stations pay for the rights to show the program, the total amount of money that goes to the producer can be huge.
• Some reruns are enormously popular. When the Cosby Show first went into reruns in 1990, it frequently drew larger viewing audiences than new shows. The same has held true for Seinfeld. Reruns of Seinfeld have often been number one in their time slot, beating out new programming.
• Most series do not go into reruns, but enough do to make the industry profitable overall.

ADVERTISING

Reaching the Market

Successfully proffering your wares in the television industry is a delicate balance of offering a quality product and strategically placing that product where it can be seen and acquired. To a large extent the 'big boys' have the upper hand in reaching the masses. Unless you understand the audience and the idiosyncrasies inherent in that audience (and there are always idiosyncrasies), you may be one of those unfortunate many who spend large amounts of money appealing to the very people who could care less about your project and its associated product.

Strategy and Implementation

Mentonic Hero Inc. has this main project identified at present for immediate or near-future commencement. The sequence of initiation for this TV series is based on the strategic placement of product within the middle market of the TV industry. There is ample room in this market for successful operations such as Mentonic Hero Inc., offering enthusiastic audiences whom exhibit unusually high levels of loyalty to their favored TV series. Each new project will be designed to integrate with the previous one, while also penetrating new but kindred markets.

Initial Market Approach

Our plans are to secure the financing to develop a full-length episode; we will use this for marketing to the studios for placement in the TV season line up. We have a number of broadcast houses to meet with so, before we attempt to start to set up meeting, we want our first episode ready for showing.

There is already a niche market for this product in the United States with the vast range of channels on TV and the varied interest in different and unique shows, as well as selected areas overseas.

Successive Merchandising

Concurrent with the preparation of the Mentonic Hero project will be the initiation of other projects hitting more specialized markets. While not losing focus on our main TV series offering, the expansion of reach and market array will attract new films and series.

Here are a few of the potential merchandising opportunities that we will explore in order to add revenues to the company.

1. Branded interactive elements and features across multiple devices and platforms
2. TV program title music, stings and stabs as Ringtones—Mobi-tone
3. TV show or celebrity pictures/images sent to mobile, email or MMS—Mobi-pix
4. Programmer-related animated logos, characters, comic strips, etc. available for mobile, email or MMS—Mobi-logo
5. Karaoke tune and word text sent to mobile phone—Mobi-karaoke
6. Mobile, iTV and PC game sales or pay-per-play
7. Freebies/discounts via SMS, etc.
8. TV series soundtrack CDs
9. Sale of branded merchandise—T-shirts, toys, etc.
10. Downloading of video clips, etc.
11. Downloading of TV series audio clips/tracks, mobile stories, etc.
12. Broadband sales
13. Fanzine materials
14. Sale of videos
15. Sale of DVDs
16. Non-theatrical sales
17. Other sectors not listed at this time

BUSINESS STRATEGY

Pricing strategies, product sales forecasts, strategic partnerships, market penetration, and audience reception—all are individually dependent upon the unique aspects of the TV series and weigh heavily upon the techniques utilized for project implementation. Thus the strategy of separate financing for each project substantially benefits Mentonic Hero Inc. in establishing firm footing and stability for a project's performance and life.

The well-informed, cautious-but-enthusiastic planning of each project will provide for contingencies associated with both Mentonic Hero Inc. and the individual component. Identification of appropriate audiences, whether domestic or foreign, is key to a project's success.

There are receptive audiences in Japan who are eager for good animated TV series, while in the U.S., the same TV series would become just part of the pack and must vie desperately for recognition in a burgeoning genre.

Identification of audience, assessment of series reach, the strategic release of film, merchandising product, worldwide exposure through Internet concentration and well-placed, beneficially-crafted contracts with suppliers will provide Mentonic Hero Inc. a solid, firm footing upon which to build. The principals of this firm are not only well equipped to accomplish this type of strategic evaluation, but are endowed with various talents which, when combined, form a formidable and impressive knack for weighing and coordinating all components wisely to produce success.

COMPETITION

We happen to believe that there is no competition in the entertainment industry—only hard work, right marketing, skill in the delivery of a sound TV series, strategic placement of a finished product, maximization of audience acceptability … and then, the final ingredient—the benevolence of the entertainment gods. Or, as Bob Edgar often says, "The audience is like a big pie. Somewhere in that pie are those who like what I do. All I have to do is satisfy them, and I can enjoy my piece of the pie. The only one I'm in competition with is myself."

As a company we subscribe to this concept. It is not competition that creates a Ren & Stempy, or a King of the Hill, or a Finding Nemo. There does exist, however, the possibility that we may discover that new TV series concept that will be the best thing since Bugs Bunny.

What does create the new star in TV is the sometimes intangible but undeniable synchronicity of the 'right' script by the 'right' cartoon artist with the 'right' combination of production, distribution and marketing to result in the audience's recognition and acceptance of the 'rightful' reign of the newly-confirmed heir to fame.

We believe that those 'right' components can be applied to every project, thus resulting in a correlation of success and recognition within the parameters of that project. This does not mean we expect every project to produce a star. It does mean that we commit ourselves to the excellence and integrity of every project. We expect that most of our clients will hope for the full realization of their entertainment aspirations. We respect and honor their dreams and will perform to the best of our abilities to assist them in their endeavor. Each client will receive exactly what is represented as deliverable. We shall not, however, promise or guarantee any individual's fame or success. We leave that to the realm of those who deal in destiny.

We do believe that competing in the entertainment industry is enhanced and amplified through the following actions, each of which is an integral part of our overall service to each client:

• Constant and mindful application of industry standards and state-of-the-art technologies. This requires the continuous, sometimes arduous, task of updating and educating oneself on industry developments and evolving techniques.
• The ongoing maintenance of strategic industry contacts and relationships to ensure a broad understanding of the market and the ability to penetrate and utilize the industry to our benefit.

• Strong and knowledgeable business management to maximize the potential and profitability of each project and its associated artist/product.
• Continuous application of accurate accountability of all project components to ensure as much as possible the successful completion of each project and the satisfaction of each client and investor.

MANAGEMENT SUMMARY

The initial management team consists of two operational positions and three advisory/manager positions.

Organizational Structure

The operational positions within the company are president and vice president of administration. These positions carry full-time responsibilities for the ongoing daily operation of the company.

The advisory/manager positions are controller, company counsel and ambassador of goodwill. In the beginning, these positions carry part-time responsibilities dedicated to specialized functions necessary at times to fulfill the daily operation requirements of the company. As the scope of business enlarges, one or more of these individual positions may become full-time appointments.