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LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION CONFIDENTIALITY NOTICE

AND AGREEMENT • This document contains proprietary and confidential information

belonging to the Company. The recipient of this document hereby acknowledges that the information about to be read, and any supplemental information, whether supplied orally or in writing related thereto is confidential.

• The recipient, by accepting delivery hereof, agrees to keep such information confidential and to use it only for the purpose of evaluating a potential investment in the Company. The recipient agrees not to make copies of the document, in total or in part, without the written consent of the Company.

• The recipient agrees, upon Company’s request, to return the document and any supplemental information and any copies thereof to the Company, without unreasonable delay, if an investment is not made.

aFire Confidential




Vince Zermeno, CEO – Over 25 years experience in the studio and music industries

John DiLoreto, COO – M.I.T. EE, Stanford MBA, over 30 years in high-tech and arts management

Sheridan Tatsuno, VP – Over 30 years experience in emerging technologies and new media

Steven B. Cohen, Partner – Over 30 years in media & entertainment technology, management and creative positions

B. Billie Greif, Partner – 15 years in producing films and forming strategic alliance with major distributors in major markets

aFire Team

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION What is aFire?

A video distribution network to publish, share, trade, sell, view and analyze interactive content.

Producers and advertisers can publish interactive content with embedded ads

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION What is aFire?

A video distribution network to publish, share, trade, sell, view and analyze interactive content.

Viewers & aggregators can share & sell content, goods & events

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Tailored Solutions

Studios Talent Agencies

aFire Solutions

Advertisers

IT Platforms

Hollywood Focus

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Interactive Marketing Platform

• Facebook interface to interactive marketing tools • E-commerce embedded into videos using Simultaneous in Video

Advertising (SIVA) • Hybrid distribution: Direct sales by content producers + distribution by a

third party

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Facebook Interface

• aFire video player for PCs and smartphones

• Users share comments on videos with their friends

• Player ties directly into the aFire web-based platform.

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Wrap-around Video Player

• Access to thousands of films and television shows

• aFire has partnered with sources of additional footage, B-stock, interviews, and newly created content.

• Similar to a re-release of a classic title, re-mastered with “bonus footage,” aFire streamlines this process by funneling directly through its player that wraps around this new video package.

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Internet Video Trends

• Internet video — a fixture in the overall digital content experience.

• New interactive content and “consumer choice” advertising provide multiple advantages in critical global dynamics in consumption.

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION New Interactive Content

Videos embedded with e-commerce, ads, events, contests, fundraising, products, services

Integrated social media

Visual “hooks” & icons to interactive areas plus

indexing & search

Interactive streams, with scheduled adsCollected metrics for data analytics

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Simultaneous In-video Advertising (SIVA)

• Enables product placement in a film, wrap- around ads, or in-line commercials

• Click on video to instantly access:– Information – historical background, actor bios, production notes– Products and services – Curious what the actor is wearing? Click

on it and buy it online.

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Business Flow

Ingest Manage Publish Monetize Syndicate Analyze

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION aFire Business Model

• Pay-per-view (PPV) and ad-sponsored free downloads like Netflix, Vimeo, and Hulu

• Co-marketing: Producers, advertisers and viewers can publish, share, trade, sell, view and analyze interactive content

• Data analytics subscriptions

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Competitive Advantages

• Monetizing multiple revenue streams in line with current and future technologies

• Combining video with e-commerce technology that allows multiplatform delivery of advertising, branding and product placement

• Innovative 3D software programming

• Management team

• Nimble, flexible and scalable business model (vs. major studios)

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Differentiation

• Netflix and Hulu — a unique movie experience for pre-existing content

• YouTube — video upload and sharing, randomly generated ad campaigns

• aFire — unique distribution packages offered directly to content producers that combines:- A unique, flexible and exciting experience for the viewer- A built-in advertising system and film promotion

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Hybrid Distribution

• Used by more and more content producers.

• Combines direct sales by content producers with distribution managed by a third party.

• Allows distribution through various channels including third parties, in a pre-determined model.

• Provides an advertising outlet through the aFire player.

• Allows sales directly to the public.

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Strategic Partners

• Inspired Studios, LLC – Donald Kasen, Content Provider, Publisher, Licensor

• Everland Media, Inc. – B. Billie Greif, Producer & Content Provider

• Encore Releasing, LLC – Michael Reinboth

• Sky & Earth/CCTV – Susan Pattis, Founder & B. Billie Greif, partner

• Chinese USA Cultural Films, Inc. – Susan Pattis, Founder, B. Billie Greif, Jimmy Gillespie, Partners.

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Launch Scenario

Network Setup Fee

Channel Setup Fee

Title Setup Fee

Monthly Fee

Content Programming

$15,000 $5,000

Channel Platform

$60,000 $5,000 - $15,000

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION Aggregation Revenue Splits

PPV(@$2.99)

Ads($.50/30-sec. spot)

MerchandiseCommissions

Events(@$5-$10)

Analytics

aFire 10% 50% 3 - 10% commission

3 - 10% Earns fee

Producer 90% 50% 0% 90 - 97% Pays fee

Third-party Portal (e.g. Face, iTunes, YouTube)

30% off top 30% off top

Viewer Pays $2.99 avg.

Pays for purchases

Pays for events

aFire Confidential



LAUNCH SCENARIO | AGGREGATION REVENUE SPLITS | aFIRE REVENUE PROJECTION aFire Revenue Projection

aFire Confidential




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Any Questions?

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