PCC Business PLan

BUSINESS OVERVIEW

Paul Cleveland Corporation

404 Auhana Rd., Kihei, HI 96753 • (808) 870-1539

CONFIDENTIAL and PROPRIETARY

THIS BUSINESS PLAN HAS BEEN SUBMITTED ON A CONFIDENTIAL BASIS. BY ACCEPTING DELIVERY OF THIS BUSINESS PLAN, THE RECIPIENT AGREES TO RETURN IT TO THE COMPANY AS DIRECTED BY THE OWNER.

Revised 4/7/09

This project has great depth. Please review the 4 minute electronic press kit before diving in.

Extreme sports and music entertainment draws talent, sponsors and creates a strong connection with the buying power of Gen X and Y.

SOCIAL NETWORKING TRENDS

The social networking audience is growing rapidly. eMarketer estimates that in 2008 nearly 80 million people, 41% of the US Internet user population, visited social network sites at least once a month, an 11% increase from 2007. By 2013, an estimated 52% of Internet users will be regular social network visitors. eMarketer projects that 79.7 million people, 40% of US Internet users, will create content on social networks at least once a month in 2009, either by updating a profile or communicating publicly. That represents 90.5% of social network users—and a lot of stickiness.

INTERNET BUYING TRENDS

Online retail sales will likely keep climbing in 2009, even in the recession. According to projections from Forrester Research, U.S. online retail sales are expected to rise 11 percent to $156 billion this year, excluding revenue from travel. However, that will mark a slowdown in the overall growth rate, which was 13 percent in 2008, when online retail sales totaled $141 billion, Forrester says. Forrester analyst Sucharita Mulpuru said the majority of the 2009 growth in online spending will come at the expense of physical stores. She expects more consumer dollars to be spent online because it’s easier for people to comparison shop and to find what they’re looking for.

Online sales are expected to make up 7 percent of overall retail revenue in 2009, compared with 6 percent in 2008. Online spending is expected to rise a robust 17% this year, despite a sluggish economy that has bruised many brick-based retailers, according to an annual survey to be released Tuesday. E-commerce “is clearly the bright spot in retailing,” said Scott Silverman, executive director of Shop.org.

MUSIC INDUSTRY TRENDS

Music and action sports entertainment is still in demand during a recession. Music CD sales are plummeting while concert tours and downloaded music remain highly profitable.

In 2008, physical album sales fell 20 percent to 362.6 million (from 450.5 million), while digital album sales rose 32 percent to a record 65.8 million units. Digital track sales, such as those conducted in Apple Inc.’s iTunes Music Store, were up 27 percent from last year, breaking the 1 billion mark for the first time at 1.07 billion.

• All facts are expanded upon in the statistical index.

PREFACE

Aloha and welcome to the Paul Cleveland Corporation.

We offer a few key notes to help understand our products and the impulse behind our marketing strategy. This briefly summarizes our target market, the current buying trends in retail and the expanded use of the internet in 2008. We have based our company around these factors and is why our integrated, social networking, techno-driven products will thrive.

THE BUYING POWER OF GENERATION X AND Y

Today’s 18-to-40-year-olds are savvy, sophisticated, and immune to conventional marketing strategies, but the buying habits of this lucrative market can be anticipated. Generation X is reaching the height of its earning power and Generation Y enjoying more buying power than any previous generation of teens and post-teens. Gen Y represents more than 70 million consumers in the United States. They earn a total annual income of about $211 billion, spend approximately $172 billion per year, and considerably influence many adult consumer-buying choices.

There are differences between the way Generation Y and Generation X view and use technology. Generation X uses technology as much as Gen Y but for X’ers they use technology when it supports a “lifestyle need.” Tech, however, is embedded into everything Gen Y’ers do, making them the first “native online population”.

GEN X Stats * Born (1967-1978, 29 to 42 years old) * During the past three months, 69% have shopped online and 65% used online banking —more than any other group * 21% of Gen X are now reading a blog once per month compared to 15% last year * 61% of mobile subscribers text compared to 49% in 2007

GEN Y Stats • Born 1977-1998 / 75 million millennials * 90% of Gen Y own a computer * 82% own a mobile phone * 72% of Generation Y mobile phone users send or receive SMS messages * They spend more time online than they do watching television, with 42% watching online video at least once per month.

Music and action sports are still the selling power of America. . .

Your connection to this buying phenomenon is with the Paul Cleveland Corporation. Table of Contents

A) EXECUTIVE SUMMARY CORPORATE STRUCTURE CHART

B) DESCRIPTION OF BUSINESS 1. Maui Green Wave® Marketing

a: Ballistic TV®

b: MyBTVTube.com

c: Ambush Tour

2: Maui Cruzer®

3: Brand Image

C) BUSINESS STRATEGY 1. Sponsorship Pricing

2. Competitive Analysis

3. Growth Strategy

4. Marketing Plan

5. Operations Plan

a. Business Milestones

b. Management Team

D) FINANCIAL SUMMARY 1. Revenue/Cost Overview

REVENUE STRUCTURE CHART

3. Annual Financial Summaries

E) INVESTMENT OPPORTUNITY INVESTMENT STRUCTURE CHART

F) STATISTICAL INDEX

G) MEDIA EXPOSURE

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EXECUTIVE SUMMARY

Welcome to the Paul Cleveland Corporation (PCC). Our business is:

• Action Sports and Music Entertainment

• Owner and Operator of Maui Green Wave® Marketing

• Executive Producer of Ballistic TV®

• Design and Manufacture of Maui Cruzer® action sports hard goods and soft goods

Our mission is to deliver brands, talent and products to a powerful consumer group through a one-of-a-kind marketing strategy. Our plan is designed specifically to be profitable in challenging economic conditions. Over a three year period of operation we conservatively estimate our profits at over $22 million, positioning PCC for a potential buyout value between $20 and $30 million collectively.

PCC is the parent company of Maui Green Wave® which operates a series of action sports based products including a broadcast television series, a user based “share-site”, a national event tour and a product line inclusive of hard goods, soft goods and accessories under the Maui Cruzer® brand. In addition, Maui Green Wave® Marketing offers innovative advertising, sales and marketing packages to corporate sponsors who seek integrated promotions that target the valuable, viable Gen X and Y consumer.

All of the PCC businesses are positioned for rapid growth through their participation and exposure in the Maui Green Wave® Marketing plan. PCC distributes costs and draws revenue from each of its diversified business products and is seeking $1,000,000 in investment capital in the form of seed money to bring our products to market.

( Page 4 )

Action sports and music publishing,advertising and marketing

MyBTVTube.com

A community “share-site” featuring action sports, music, video,

web commerce and marketing

Ambush Tour

(5) city national event tour featuring action sports, music,

sales and promotion

Maui Cruzer®

2009 CorporateStructure

Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®

Owner and operator of Maui Green Wave®businesses, developer and agency for

Maui Green Wave® Marketing

Brand identity for products, productions and business operations

Branded products, accessories, soft goods and promotional items

( Page 5)

Through our first two seasons of Ballistic TV® in Hawaii we tested the market, developed our brand and claimed a position in the entertainment and action sports industries. From here we’ve developed our marketing strategy to position and introduce our products with full market power. In an integrated businesses form (see above diagram) we position ourselves as a startup company, but we have considerably more than start up.


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





PERFORMER

The Paul Cleveland Corporation has over 10 years of the research and development behind our products. Through extensive market testing, through our own lessons and those of the many companies who have paved to way before us, we have developed a modern strategy for success. Our products are in demand, our audience is viable and we are ready to bring our innovative offerings to a larger market.

VALUE

Our investment collateral is in the form of operating goods and inventory valued at over $1.3 million. Additional value for our company comes from our brand equity. This has been earned through extensive media placement, through the notoriety gained from two seasons of broadcast television, from the achievements of our world championship team and from the industry alliances we have established.

POSITION

Our products have achieved recognition from the elite in the action sports, music and television industries. Our brand is synonymous with innovation, quality and performance. Our image has been published all over the world in print, television, film and the web. Our products captivate people everywhere we go.

DEMAND

Demand for our products has reached a tipping point. We are ready to introduce our brand and products to millions of Gen X and Y consumers in a sustainable, profitable business form that accommodates rapid growth over a short period.

SUCCESS

We consider our greatest asset to be the development of our business strategy. It is the single most important element in this project and is a powerful means to provide growth, profit and success even in a down economy.

( Page 6 )

ACHIEVEMENTS

• We have broadcast (2) seasons of Ballistic TV® in Hawaii (KWHE & K5 NBC Affiliate) in 1997 and 2002. This provided world wide interest, product recognition and a positive market position within the television, music and action sports industries.

• We have an alliance with Sandbox Marketing to provide event management, production and promotion for all events of the Ambush Tour. Sandbox has run successful nationwide events since 1999 and they are proven experts in the field.

• We have developed relationships with key manufacturers for each of our products. Efficient design, engineering and sourcing has enabled us to achieve the highest quality merchandise while retaining excellent sales margins. Our product development is complete, market tested over several years, and we are ready to bring our innovative products to market.

• Our skate and dirtboard products have garnered numerous titles, gold medals and championships in boarder-cross racing and big air events since 1997.

• Our brand and team have drawn international media interest (OLN Awe television series, MTV’s Living Lahaina, MTV Road Rules Brazil, Planet X television, 8 page article in British GQ Magazine) and continue to captivate the world.

INVENTORY

D) 20 completed BTV shows, 12 edited segments, 500 hours of action sports B roll footage (in1080i HD)

= $1,000,000

E) CGI animated character “Kolo”

= $25,000

F) Published DVD’s including Ten Years Later

= $30,000

G) 6 Motorized skateboard prototypes, skateboarding hard goods, soft goods, accessories

= $100,000

OPERATIONAL ASSETS

A) Full digital and analog production studio including software and hardware, cameras, editing equipment,

= $250,000

B) Multiple websites, multiple registered names, dedicated webspace and infrastructure

= $10,000

C) Patents, Copyrights, Trade Marks and Legal Development

= $20,000

TOTAL ASSET VALUE: $ 1,360,000 + Brand Equity + Development

( Page 7)

If you find this interesting so will 40-50 million other people...


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





DESCRIPTION OF BUSINESS

• MAUI GREEN WAVE® MARKETING (Integration of 3 businesses)

• BALLISTIC TV®

• MyBTVTube.com

• AMBUSH TOUR

• MAUI CRUZER®

( Page 8)

INTEGRATION

Maui Green Wave® represents the synergy of four unique businesses that form a symbiotic relationship. Each facet of the plan supports each other, their products and talent. Expenditures are shared to lower operating costs while profits are pooled to create sustainability and growth.

It is the synergy of these businesses - the way they cross market and fuel each other - that makes this plan work in short and long terms.

DESCRIPTION OF BUSINESS

• MAUI GREEN WAVE® MARKETING (Integration of 3 businesses)

• BALLISTIC TV®

• MyBTVTube.com

• AMBUSH TOUR

• MAUI CRUZER®

Maui Green Wave® (Sales and marketing)

MAUI GREEN WAVE® MARKETING is an integrated sales and promotional program that utilizes music and extreme sports entertainment to capture the attention of a valuable target market (Generation X and Y). We will position our sponsors with creative branding and deliver our message through television, internet and live events to an estimated 40 - 50 million viewers weekly.

We have identified the most effective promotional venues in action sports and integrated these strategies to form a one-of-a-kind marketing machine that aggressively promotes brands, products and talent.

UNIQUE / COMPETITIVE ASPECTS • Currently the only marketing venue to combine: - The sell power and exposure from broadcast television - The community interaction of a web “share-site” (similar to YouTube and MySpace) - The direct audience connection from a live event tour

• Satisfies the modern consumer’s desire for community, entertainment and discovery

• Pricing is parallel to the sponsorship packages offered in the Core Tour (2006) with considerable added value of television and internet promotion at minimal additional cost

PRODUCTS / SERVICES OFFERED • Sponsorship packages offering cross market promotion in all venues of the program

• A la carte advertising and sponsorship opportunities offered in select venues of the program

• Sales and distribution of product through web commerce and direct sales at events

• Database marketing programs

GEOGRAPHICAL AREA OF LOCATION • USA

FACILITIES AND EQUIPMENT • (2) Offices of operations (San Diego, CA and Kihei, Maui HI), production studio

OWNERSHIP STRUCTURE • C Corporation

KEY PERSONNEL AND STAFF ARE PROVIDED BY THE PAUL CLEVELAND CORPORATION

( Page 9 )


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





PRODUCTS/SERVICES OFFERED • Production and distribution of high quality action sports and music content, branded items advertising and promotions

GEOGRAPHICAL AREA OF LOCATION • Produced in Maui, Hawaii, filmed all over the world

FACILITIES AND EQUIPMENT • (2) Offices of operations (San Diego, CA and Kihei, Maui HI).Full digital and analog production studio including software and hardware in excess of $250K. Television, web, film and DVD producing capabilities.

INVENTORY • Stock and inventory in excess of (20) completed shows, (12) edited segments, (500+) hours of action sports B roll footage, CGI animated character “Kolo”, published DVD’s including Ten Years Later, Lava Boys, Full Turn and new projects in value of $1,000,000 +


EXTERNAL RESOURCES needed for the operation of Ballistic TV® brand of product are:

• Sierra Emory —Maui correspondent, senior host

• Akoni Kama —International correspondent, cohost

• Caliber Entertainment – Talent management, sales and contract originator, as well as providing access to industry giants and promising up-and-comers

• T.B.D. – Advertising sales agents / account executives responsible for securing and providing service to corporate sponsors and advertisers

• Media Buyer — Provides contractual agreements and purchase of media venues





National event tour featuring action sports, music, sales

and promotion

USA Retailers

REVENUE • Sponsorship and advertising sales are the main source of revenue for this project

• Product merchandising (DVDs, movies and branded products) provides additional revenue

• Syndication or licensing of the series in world markets offers long term revenue potential

FINANCIAL SUMMARY & PROJECTION TOTAL REVENUE / 3 YEARS $ 22,436,960 TOTAL COSTS / 3 YEARS - $ 11,278,500

TOTAL PROFIT / 3 YEARS = $ 11,165,460

( Page 10 )

(Page 11)


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





Ballistic TV®

(Television, branded products and promotion)

Established in 1997, this series was developed to market Maui Cruzer® products through broadcast television. Ballistic TV® (BTV) features a captivating combination of extreme sports and music throughout a (39) show season. Our focus is to become the most recognized Action Sports and Music based Television Series in existence and to provide a powerhouse marketing vehicle for corporate sponsors.

Our program captivates the “Generation X and Y” interest in action sports and music. “Super Culture” spending is one of the most powerful markets in the word today and television association is the cornerstone for direct contact with this purchasing phenomenon.ACHIEVEMENTS• Exposure gained through the first (2) seasons of broadcast in Hawaii (KWHE & K5 NBC Affiliate) provided world wide interest, product recognition and a positive market position within the television and action sports industries.

UNIQUE / COMPETITIVE ASPECTS • Through the introduction of MyBTVTube.com, BTV will be structured to receive licensed amateur video content from a global community. Discovering talent from every corner of the world and featuring this talent on broadcast television is a first in action sports.

• The ability to receive HD amateur footage will greatly reduce the operating costs of the program. As submissions grow, this footage will provide the main source of material for our show.

• Our animated character “KOLO” draws serious interest from a wide demographic while providing access to a younger generation. Once seen-never forgotten, Kolo is unique and strategic to action sports entertainment and will provide product merchandising opportunities.

• Our unique strategy of purchasing “infomercial” broadcast blocks enables us to produce undiluted content and the ability to re-sell advertising slots to a select group of sponsors.

• We have incorporated many innovative production techniques that define our look and product, including the use of remote helicopter cams, rider cams and computer generated animation.

• We are the only music and action sports based program that offers up and coming video editors and cinematographers direct access to publish their work on broadcast television.

( Page 12)


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





PRODUCTS/SERVICES OFFERED • Internet publishing, advertising, promotions, web commerce, sales and distribution of branded items, database marketing GEOGRAPHICAL AREA OF LOCATION • World Wide Web

FACILITIES AND EQUIPMENT • (1) Office of operations (Kihei, Maui HI).

INVENTORY • Multiple websites, multiple registered names, dedicated webspace and infrastructure


EXTERNAL RESOURCES needed for the operation of MyBTVTube.com brand of product are:

• Web management, development and production


REVENUE • Sponsorship and advertising sales are the main source of revenue for this project

• Product sales through our web store

• Repackaged content in the form of DVDs, downloads, CDs and branded promotional merchandise

• Database marketing programs








and promotion

USA Retailers


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





MyBTVTube.com (Website, branded products and promotion)

Established in 2008, this business represents the future of the Paul Cleveland Corporation. Our goal is to become the most visited Action Sports and Music based website on the internet... and a powerful marketing vehicle for internet advertising and corporate sponsorships.

Our website is designed for public interaction and community development (similar to Facebook and MySpace). Our intention is to reveal backyard talent from every corner of the planet and deliver “intertainment” through television-style programing (not just clips). High quality, licensed music and action sports video will be shared and available for amateur editing. This will provide user-generated segments for viewing and voting. The most popular segments will be featured on Ballistic TV® and the most credible talent will compete with industry giants on the Ambush Tour. Community, discovery and fame.

UNIQUE / COMPETITIVE ASPECTS

• Providing television formatted “intertainment” on the internet is the future of the web.

• This is the only music / action sports based website to receive licensed amateur video content and publish audience edited segments on television.

• Discovering talent through the internet and featuring talent in competition with the pros (on the Ambush Tour) is an action sports first.

• Our web store sells our products direct to a growing customer base, providing higher margins on sales, lower cost to consumers and additional revenue from sales of sponsor’s products.

• We offer our sponsors additional access to our valuable target market through database marketing opportunities.

(Page 13)

( Page 14)


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





PRODUCTS/SERVICES OFFERED • Action sports and music events, advertising, marketing and merchandise sales

GEOGRAPHICAL AREA OF LOCATION • Hawaii and US Mainland

FACILITIES AND EQUIPMENT • Office of operation (San Diego, CA), Corporate headquarters in Kihei, HI)


EXTERNAL RESOURCES needed for the operation of the Ambush Tour brand of product are:

• Akoni Kama —International correspondent, master of ceremonies, brand manager

• Sandbox Marketing – Event management, sales, promotion and production

• Caliber Entertainment – Talent management, sales and contract originator, as well as providing access to industry giants and promising up-and-comers




REVENUE • Corporate and regional sponsorship are the main source of revenue for this project

• Retail, food and beverage sales

• Vendor booth sales

• Media content publishing and distribution






and promotion

USA Retailers


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





(Page 15)

Ambush Tour®

(Live events, branded products and promotion)

Designed to launch in 2009, this is ambush marketing at its best. The Ambush Tour is cross-marketed with Ballistic TV® and MyBTVTube.com to further our messaging to the Generation X and Y demographic. We jump to the streets of five metropolitan hubs in America to generate a street level connection with our community through heart stopping extreme sports and live music entertainment.

The Ambush Tour provides fantastic branding for our sponsors while creating the opportunity to interact authentically with this valuable target market. Sponsorship packages, vendor booth sales and merchandising are proven sources of revenue for the tour. Media generated from the events are published on Ballistic TV® and MyBTVTube.com and are repackaged for promotional use by sponsors.

OPERATIONS • We have created an alliance with Sandbox Marketing to provide event management, production and promotion for all events of the Ambush Tour. Sandbox has run successful nationwide events since 1999 and are an established force in the music, action sports and live event promotion industry. This alliance allows us to focus on the venue with our sponsors in mind and provides further opportunity to participate in other events they are promoting.

UNIQUE / COMPETITIVE ASPECTS • The most unique aspect of the Ambush tour is the attraction of amateurs to compete on stage against industry giants from the extreme sport and music industries.

• The event locations are strategically positioned in the heart of metropolitan cities to maximize our promotional impact, draw out large audiences, local talent and regional sponsors.

• Out-sourcing the entire tour’s production to Sandbox Entertainment is strategic, functional and provides a quantifiable business model to follow (complete with fixed annual costs and a well developed sponsorship model to implement for promotion and sales of the tour).


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





MAUI CRUZER PRODUCTS/SERVICES OFFERED • Manufacture and distribution of specialized action sports products, accessories, soft goods & promotions

GEOGRAPHICAL AREA OF LOCATION • Hawaii, US Mainland and World Wide Web

FACILITIES AND EQUIPMENT • Office of operation (San Diego, CA), Corporate headquarters in (Kihei, HI), distribution warehouse (San Diego, CA)

INVENTORY • Patents, Hard goods, Soft Goods and Accessories in excess value of $25K


EXTERNAL RESOURCES needed for the operation of the MAUI CRUZER® brand of product are:

• Akoni Kama —Brand Manager / Team Manager / Brand Correspondent - providing international recognition from his TV and movie celebrity status and world champion dirt-board titles

• T.B.D. – Sales reps / account executives responsible for securing sales and distribution

• T.B.D. – Customer service representative



REVENUE • Wholesale and retail sales are the main source of revenue for this project

• Service, accessory and replacement part sales will provide a long term stream of revenue






and promotion

USA Retailers

( Page 16)

Cane Fire Cruzer50CC MotorizedCost to Manufacture: $ 300Retail Sale Price: $ 990


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





Maui Cruzer®

(Branded products)

It all began in 1997 with the dream of taking street skateboarding off-road. Since then we have taken our dirtboard and skateboard

products to task. The achievements and exposure generated by our world champion team has earned Maui Cruzer® the respect of the industry’s elite and our innovative products have captured the interest of the world. The motorized skateboard is our most unique product to date and exceeds all expectations for development. Other specialty items include dirt boards, lighted boards, long boards, clothing and accessories.

The Maui Green Wave® Marketing strategy will deliver the Maui Cruzer® brand and products to a nation of Generation X and Y consumers. This is our test product and Maui Green Wave® is the application. Revenue is derived primarily from wholesale and retail sales.

ACHIEVEMENTSOur products have garnered numerous titles, gold medals and championships in boarder-cross racing and big air events since 1997. Our brand and team have drawn international media interest (OLN Awe television series, MTV’s Living Lahaina, MTV Road Rules Brazil, Planet X television, 8 page article in British GQ Magazine) and continue to captivate the world.


• We have developed a broad range of products to meet the needs of action sport enthusiasts.

• Branded products from Hawaii offer a distinct advantage in establishing market recognition.

• Our animated character “KOLO” is unique to action sports marketing, draws serious interest from a wide demographic and provides incredible merchandising opportunities for the Maui Cruzer® brand.

• To date no other motorized skateboard rivals the Maui Cruzer®.

• We offer the only skateboard that easily converts from a street board to a dirt board.

• Our engine Cruzer® has outlasted all other manufacture’s motorized skateboards.

• Our lighted skateboard is a novelty product that has generic appeal and offers the potential to outsell our entire product line.

(Page 17)

Kriminal KruzerManufacture Cost: $30Retail Sale Price: $99

( Page 18)

“Kolo” - the originalMaui Cruzer

3D CGI animated character + voice• Cost of Development: $25K

Akoni Kama is the international correspondent of Ballistic TV®. Known as “AK” throughout the industry, he pushes the limits for the extreme athlete through his competitive achievements (7 time dirtboard champion) and marketability. His dreadlock image and Hawaiian bloodline puts him at the forefront of our promotional strategies. Akoni brings BTV® and Kolo with him every time he embarks on a new world adventure.

Akoni has made a name for himself in media publications such as OLN, ESPN, Ballistic TV®, CNN, Fox Sports Net, and the BBC. He has been featured in national television commercials for Honda, Subway, in GQ magazine and in the collector edition of Playboy. His greatest media association has come from his role in the new Disney mountain boarding movie Johnny Kapahala Back on Board!

“Kolo”Kolo is our proprietary CGI animated character. His wipe-outs and “anything you can do I can do better” attitude positions him to become the “Mickey Mouse” of action sports marketing.


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®






MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





(Page 19)

ACHIEVEMENTS

“Kolo” was first introduced to the world in season two of BTV® with extremely positive response. Our next season features “Kolo” with “Akoni Kama” as “The Dreaded Duo.” They embark on mischievous journeys throughout the series and show up at world wide locations. They draw serious interest and provide a powerhouse association for our brand and sponsors alike. Once seen never forgotten, these two captivate a wide demographic of viewers and offer a unique connection to the Generation X and Y audience.


• Always on the cutting edge, Ballistic TV® and Maui Cruzer® utilize a cartoon character and elite athlete to form a unique association for our brand image.

• This combination provides instant recognition, credibility and access to a wider audience.

• Kolo is utilized in creative branding and product promotion with our sponsors.

• Merchandise featuring the “Dreaded Duo” will provide additional revenue.

• “Kolo” provides expanded promotional opportunities in television, web and film.

PCC Brand ImageWe make it a priority to be current with the ever changing movements of the action sports and music industries. To maintain this connection we strategically employ industry specialists to provide “insider” access to talent and happenings within these industries. Access alone, however, is not enough.

We have identified the need to offer a unique and compelling image to represent our branded products and initiatives in this trendy marketplace. For this reason we feature extreme sports personality Akoni Kama as our brand correspondent. To widen our appeal and further differentiate ourselves we have developed “Kolo” - our proprietary animated character.

BUSINESS STRATEGY

• COMPETITIVE ANALYSIS

• SPONSORSHIP PRICING

• MARKETING PLAN • GROWTH

• MANAGEMENT TEAM

It’s big, it’s gnarly. How do we plan on pulling this off?


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





( Page 22)

Sponsorship Pricing - Example of one full year of promotion in Maui Green Wave®

Our marketing program has been designed to accommodate the current business environment. We offer value added products with highly competitive pricing designed to sustain our programs and generate substantial returns.

• $1,000,000 CHARTER SPONSORSHIP - Includes marketing and promotion on broadcast television (1.5 minutes per show x 39 shows total), Front row billboard and promotion in a live tour, internet advertising, database marketing and product sales3 Total Sponsors = $ 3,000,000 revenue

• $250,000 (8) SUB SPONSORSHIPS - Includes promotion on broadcast TV, promotion in a live tour, internet advertising, database marketing and product sales8 Total Sponsors = $ 2,000,000 revenue

• LOCAL SPONSORS providing additional tags, product placement, host verbal plugs, etc.$1,200.000.00 revenue

TOTAL SPONSORSHIP REVENUE FOR 1 YEAR: $6,200,000

MARKET VALUE OF SPONSORSHIP

Sponsorship costs are based on the current market value of television advertising combined with the sponsorship costs from previous action sports tours (Core Tour 2006). Our promotion will reach an estimated 40 - 50 million viewers per episode, 400,000 viewers through live events and 300,000 via internet = annual estimated total of 1.6 billion viewers.

ANNUAL CHARTER SPONSORSHIP PROMOTIONAL VALUE:

• Ballistic TV® Advertising Value: 1.5 min / show = $16,800 x 39 shows = $ 655,200 market value• Ambush Tour Promotional Value: $700,000• MyBTVTube Advertising Value: $25,000 • Misc. Promotional Value of sponsor footage generated on tour: $25,000

TOTAL PROMOTIONAL VALUE: $ 1,405,200 (+ product sales and brand equity)

Maui Green Wave®

Competitive AnalysisCompelling entertainment is still in demand during a recession. Music CD sales are at an all time low while concert tours and downloaded music remain highly profitable. Celebrity music tours, action sports oriented events, television shows and websites continue to validate the value of Generation X and Y audiences (and their buying power). Several players similar to Ballistic TV® are vying for top position to deliver action sports and music entertainment to this powerful consumer group.

We have competitors that entertain on television, in a live tour, or on the internet, however no one in our niche is combining all three marketing platforms in one promotional package. Our price and the market value of our sponsorship is competitive, quantifiable and easy to participate in.

The current economic climate positions us strategically for an all out assault on the market. Many companies (Vans, Boost) are not continuing their own tours this year but have established the value of this form of marketing. For a small portion of our target sponsor’s promotional budget, we offer extensive reach and an elaborate cross-marketing opportunity. As an investor, this is a unique opportunity to access a thriving market in a difficult economy.

DESCRIPTION OF COMPETITORS

The following matrix provides information about the main competitors in the nation that provide like services:

Direct CompetitorsNAME POSITION COMMENTS

Resort Living Network Action Sports TV series North East Region, successful

Fuel TV Action Sports TV Station A proven promotional venue

X Games Premier Action Sports TV Event Annual event is a media giant

Dew Tour Action Sports Competition Tour Effective brand promotion

Tony Hawk Huck Fest Celebrity Extreme Tour Premier live action sports + music

Concert Tours The premier community venue Money makers in 2008 Havoc.TV Music + action sports website Edited programing, emerging Indirect CompetitorsNAME POSITION COMMENTS

YouTube.com Video share site / marketing tool Internet traffic / network leader

MySpace.com Video share site / marketing tool Internet traffic / network leader

Fuse TV Web Action Sports entertainment The power of action sports marketing

( Page 23)


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





( Page 24 )


Growth Strategy SHORT TERMExposure from Maui Green Wave® Marketing will result in increased demand for all of the Maui Green Wave® products and promotions. We are prepared to expand rapidly through this exposure. We will continue our marketing program for a target of (3) years with expanded promotions throughout the second and third year.

• It is the buying trends on the internet that offer the most potential for growth and is where we focus our greatest efforts in development.

LONG TERMThe internet is now of age as demonstrated by President Obama in his 2008 campaign strategy. Consumers continue to prove the buying power of the internet ($204 billion online sales in 2008). Every major network is cashing in on internet opportunities. Many websites are vying for top position in the action sports and music sharing market but no one is applying a strategy to promote their websites like we will.

Initially we will introduce our websites through elaborate cross-promotion on broadcast television, print, internet and live events. This will rapidly develop our audience base and deliver our message to the millions that anyone who wants to showcase their talents on television, internet and on stage now has direct access through our website.

LONG TERM DEVELOPMENTS

• It is our goal to reveal fresh new talent from every corner of the planet through the ease of the internet. • Through this goal we will develop a large web audience - which is the key to the future success of the PCC - as sales and distribution through the internet is the future of retail.

• Internet and technology is the medium of choice for the generation X and Y consumer and is the purpose behind the strong amount of web emphasis in our business.

• The internet community will not only drive our entertainment content but deliver creative input for our marketing, product designs and the development of new product offerings.

• Other long term growth will stem from the implementation of our internet television network, complete with programming, episodes and vast, far reaching viewership. This will become known as “Intertainment”.

Maui Green Wave®

Marketing PlanPRODUCTOur marketing product is unique in many aspects. We have developed a master strategy to deliver integrated marketing to a valuable consumer segment and have carefully waited for the right moment to present our offerings. A growing list of corporate sponsors have participated in similar marketing efforts over the past decade and are proof of the need and viability of our product. We have calculated our price to be extremely attractive in the current economic climate and are eager to present our products to a growing list of target sponsors who need a better promotional vehicle.

PROMOTION We have established, experienced sales agents to review our product with potential sponsors who have expressed considerable interest in our marketing program. We will market our product through a series of private meetings with (20) target sponsors, to secure (3) charter sponsorships and (8) sub sponsors for (1) year of participation in the Maui Green Wave® Marketing Plan. Our sales staff will offer dynamic presentations of product, collateral and media contracts to portray our products accurately.

PRICEA charter sponsorship package offers (1) year cross market promotion and sales through television, a live tour and internet, for $1,000,00. Price is based on the market value of total advertising time in television, internet promotion and sponsorship costs from previous live tours (Core Tour 2006). This promotion will reach an estimated (40 - 50) million viewers weekly via television, an additional (400,000) through (5) live events and (300,000) internet viewers in the first full year.

PLACEInternet, live events and broadcasts television is where we deliver to our customers. Branding is the buy. Consumers become oriented with the brands, products and talent that are cross marketed through our aggressive marketing plan. Increased exposure = increased demand.

CUSTOMER RETENTIONThrough continued positive growth, our clients (pertaining to sponsors) will increase their popularity through the power of association. As we grow, so will our ability to reach larger audience, sell greater amount of product and provide powerful marketing to our select client base. Increasing value, excellent account services and easy access to our integrated promotions will drive interest to our product from new and existing clientele. Marketing statistics derived from each year’s operations will provide quantifiable data to support our sponsor’s interest and continued participation in this powerful marketing vehicle.

( Page 25 )


MyBTVTube.com



Ambush Tour


sales and promotion

Maui Cruzer®


Maui Green Wave®

Paul Cleveland

Corporation

Ballistic TV®





Management TeamKey personnel in the operation of Paul Cleveland Corporation and their responsibilities, are:

PAUL CLEVELAND • CEO, President, Owner - oversees all aspects of business, strategy and creative of the PCC• BIO: Owner and operator of retail sales and repair company for 15 years. Developed and invented the motorized all-terrain skateboard. Developed product line under Maui Cruzer®. 10 year professional director, producer and equipment operator in film and cinematography. Executive producer of this project. Entrepreneur and inventor.

CARLO CARBAJAL • COO - responsible for operations of the PCC, Director of Advertising and Marketing for the PCC • BIO: Creative Director for (Robby) Naish International, Senior Art Director for Communication Pacific (Honolulu), principle creative for Carbajal Designs. Extensive experience in action sports marketing, award winning creative in television, print, radio and web. Clients include Red Bull, Robby Naish, Gerry Lopez, Maui Arts and Cultural Center, Queens Medical Center + others

Several key positions will be secured during Phase I of the operations plan. We have identified qualified candidates within the industry for each position and we will establish an experienced team to enable the PCC’s success.

• T.B.D. - CFO - Director of Financial Operations for the PCC• T.B.D. – Media Sales Agents / Account Executives• T.B.D. – Tax and Accounting Management and Operations

• Legal Services – T.B.D. will provide legal support and guidance to the owners about matters such as compliance with government regulations, exposure to liability, and contractual issues.• T.B.D. – General manager of Maui Cruzer® and the Ambush Tour• T.B.D. – General manager of Ballistic TV® and MyBTVTube.com

Begin operations upon funding. Establish office and staff.

MAY 1, 2009150K Funded

Finalize business structure (Legal and accounting).

MAY 15, 2009150K Funded

Complete all products and promotion. Launch Internet site.

AUG 15, 2009200K Funded

Initialize advertising campaign. Launch Ballistic TV and Ambush Tour.

SEPT 15, 2009500K Funded

Secure sponsors for 2010.

DEC 15, 2009

Launch of Ambush Tour 2010.

MAY 15, 2010

Launch of Ballistic TVSeries 2010.

JAN 15, 2010

Year 1 Business Milestones

( Page 26)


Operations PlanThis year’s operations will require strategic positioning in the market place. To implement our program we need to activate our business plan. In our initial phase, office and staff will be established with purpose to finalize all products, services and materials necessary to secure our corporate sponsorship goals. This will include completion of product samples, establishing vendor contracts, finalizing media purchase agreements and developing the sales delivery and promotional materials for use in sales calls.

PHASE I • First action will be to activate the core staff and facilities for operation of the PCC.

• Second action will include finalizing the business structure for the parent and sub companies with a strategic (legal and accounting) formation to propel the company(s) success.

• Third we will package each of our products including all marketing, sales structure and any terms necessary to launch each product into the market. We will complete all product design and will be ready to order hard and soft goods. It is here when MyBTVTube.com will launch online and amateur talent will gain a direct media link for exposure.

• Forth we will implement our advertising campaign and marketing strategy for 2009, including trade show promotion, retaining professional talent, print, television, web and live event promotion. This is when Ballistic TV® and the Ambush Tour will launch, reaching and estimated 40 - 50 million people per episode in a limited 3rd season (26 episodes).

• Fifth action will be to secure sponsors to fund the next full year of operation.

PHASE II • First we will finalize the sponsors for this first full year of operations. Momentum from our previous year’s launch will offer expanded business opportunities for greater revenue.

• Second we will retain professional talent and implement our marketing strategy and advertising campaign for this year’s program

• Third action will be to secure sponsors to fund the next full year of operation.

PHASE III • First we will finalize this year’s sponsors and expand upon promotional opportunities.

• Second we will retain professional talent and implement our advertising campaign and marketing strategy for the season.

• Third we will actively promote the sale or licence of Maui Green Wave® Marketing, Ballistic TV®, the Ambush Tour, Maui Cruzer®, and MyBTVTube.com products and assets.

( Page 27 )

Just because we make it look easy doesn’t mean anyone can do it.

( Page 28 )

( Page 30 )


Financial SummaryREVENUE, COST and PROFIT PROJECTIONS

YEAR 1TOTAL REVENUE = $ 6,567,760TOTAL COSTS OF GOODS SOLD = $ 3,034,000YEAR 1 TOTAL PROFIT ESTIMATE = $ 3,533,760



TOTAL REVENUE FOR 3 YEARS = $55,661,460TOTAL COST FOR 3 YEARS = $24,255,350TOTAL NET PROFIT FOR 3 YEARS = $22,456,110

COMPANY SALE = $20 - 30 Million ( Based 1.5 X Annual Profits )






and promotion

USA Retailers

( Page 31 )

Annual Financial Strategy 1) We have developed a promotional launch strategy for the first year to establish our product and use as collateral to secure corporate sponsors.

( Page 32)

COST OF OPERATIONS - YEAR 1

BALLISTIC TV®$ – (26) Episode National TV media buy$ – Sales & marketing budget$ – Film, editing, travel, equipment$ – Office, administration, accounting

= $ Total cost of operations

AMBUSH TOUR $ – (2) Associate Tours w/ Back Yard BBQ Tour$ – Sales & Marketing Budget$ – Merchandise$ – Office, administration, accounting


MAUI CRUZER® $ – Product & merchandise design & samples$ – Sales & Marketing Budget$ – Office, administration, accounting

= $ Total cost of product and operations

MyBTVTube.com $ – Web Design, structure, servers,$ – Sales & Marketing Budget$ – Office, administration, accounting


YEAR 1 TOTAL COSTS $ 3,034,000

REVENUE SUMMARY - YEAR 1 BALLISTIC TV ®

$ + Advertising on (26) TV episodes$ + Promotions / product placement$ + Video and audio content resale

= $ Total revenue

AMBUSH TOUR $ + Merchandise

= $ Total revenue

MAUI CRUZER® $ + Product & merchandise sales

= $ Total revenue

MyBTVTube.com $ + Web commerce

= $ Total revenue

YEAR 1 TOTAL REVENUE $ 6,567,760

YEAR 1 TOTAL PROFIT = $ 3,533,760

YEAR 1

CONFIDENTIALA detailed 3 year profit and loss summary is

available to qualified investors for review




AMBUSH TOUR $ – (5) City national event tour$ – Sales & Marketing Budget$ – Merchandise$ – Office, administration, accounting






YEAR 2 TOTAL COSTS $9,667,475



= $ Total revenue


= $ Total revenue


= $ Total revenue


= $ Total revenue

YEAR 2 TOTAL REVENUE $17,101,450

YEAR 2 TOTAL PROFIT = $ 7,433,975

( Page 33 )

YEAR 2

2) We will identify new promotional opportunities each year to provide growth in revenue for each segment of the plan.

CONFIDENTIAL




AMBUSH TOUR $ – (5) City national event tour$ – Sales & Marketing Budget$ – Merchandise$ – Office, administration, accounting






YEAR 3 TOTAL COSTS $11,553,875



= $ Total revenue


= $ Total revenue


= $ Total revenue


= $ Total revenue


YEAR 3 TOTAL PROFIT = $11,488,375

( Page 34 )

YEAR 3

Annual Financial Summary continued 3) We will expand upon new sales and promotional opportunities to generate even greater revenue in our 3rd year of operation.

CONFIDENTIAL



= $ Total revenue


= $ Total revenue


= $ Total revenue


= $ Total revenue


YEAR 3 TOTAL PROFIT = $11,488,375

( Page 35 )

Our plan is concise. We see an opportunity to apply this financial strategy for a short duration and establish an attractive return on investment. We expect to grow rapidly with an intention to sell the company for sizable profit.

PROJECTION OF GROWTH

YEAR 1 PROFIT = $ 3,000,000YEAR 2 PROFIT = $ 7,433,975 (247% Growth)YEAR 3 PROFIT = $ 11,488,375 (382% Growth)

COMPANY SALE VALUE PROJECTION

ANNUAL REVENUE in 2012 = $ 23,042,250SALE VALUE (1.5 x annual sales) = $ 34,000,000 +

The company sale value is moderately estimated at less than two times the total annual revenue for our third year of operation. This calculation was derived from several company acquisitions in action sports over the past five years:

1) The sales of DC Shoes to Quiksilver in 2004 DC total revenue in 2004 = $30 million / sold for $80 million / 2.5 x formula

2) The sale of Hurley to NIKE in 2005Hurley total revenue in 2005 = $33 million / sold for $100 million / 2.5 x formula

Company Sale Value

It’s your turn to ride...

( Page 37)

( Page 37)

Investment Opportunity We are seeking an investment of $1,000,000 to broadcast season 3 of Ballistic TV®, launch MyBTVTube.com and introduce the Ambush Tour to the public. This will establish a compelling model to illustrate our products and secure corporate sponsorship. This will enable us to implement the next full year of operations.

INVESTMENT TERMS

The Paul Cleveland Corporation has over 10 years of trade and operations. We have intriguing products and

amassed premium action sports and music content to fuel years of programming and sales. In the integrated

business format we have developed, we position ourselves as a start up company. We offer a high rate of

return that is contingent on the performance of the company. We are seeking venture capital or angel investor

funding to support our business objectives.

INVESTMENT OPTION 1

• Initial investment of $1 million is repaid in full to investor over a 3 year period and earns 15% total rate of

return ( $150k ). In addition, investor receives 3% of the company sale, targeted in 3 years for $20 - 30 million

= over $600K + $150 K estimated return to investor based on this projection

INVESTMENT OPTION 2

• Initial investment of $1 million is repaid in full to investor upon sale of company. In addition, investor receives

5% of the company sale, targeted in 3 years, for $20 - 30 million

= over $1 million estimated return to investor based on this projection

INVESTMENT PAYMENT SCHEDULE • $1,000,000 Investment returned in full in 3 years

• OPTION 1 Earns 15% total return over 3 years ( $150K ) + 3% Sale of Company ( $600K estimated return)

• OPTION 2 Earns 5% Sale of Company ( $1- 1.5 million estimated return )

INVESTMENT FUNDING SCHEDULE $1,000,000 Investment will be funded incrementally over 5 months,

• MAY 1st - $150K Funded

• MAY 15th - $150K Funded

• AUG 15th - $200K Funded

• SEPT 15th - $500k Funded

* more information on page 26 in Business Milestones

2009 Investment Structure

Investment Capital

Paul Cleveland CEO, President, Founder( 65% Shareholder)

John Souza Investor, Developer( 25% Shareholder)

Carlo CarbajalCOO, Developer( 10% Shareholder)

( $1,000,000 initial investment)

Target Investment of $1,000,000 will broadcast Season 3 of Ballistic TV®, launch MyBTVTube.com, introduce the Ambush Tour

to the public and secure corporate sponsorship to fund the next full year of publishing and promotion.

INVESTOR / SHARE SUMMARY


MyBTVTube.com Ambush Tour

Maui Cruzer®

Ballistic TV®

PAUL CLEVELAND CORPORATION

Maui Green Wave®





sales and promotion

( Page 39)

Angel Investor

We listen to the experts.

( Page 41)

Maui Cruzer dirtboards featured in MTV’s Living Lahaina

• Poli Poli State Park, Kula, Maui 2008

A brief history of media exposure

( Page 57)

Print Media and Advertising

DVD Productions

UK GQ MAGAZINE / DEC 2003 8 pg spread shot on location

Print Media and Advertising

Photo Archives

Design + Packaging: Carbajal Designs Business Concept: Paul Cleveland

Strategy: Paul Cleveland, Carlo Carbajal

Copy: Paul Cleveland, Carlo Carbajal

Photography: Paul Cleveland Corporation, Volcom Entertainment

Artwork: Carbajal Illustrations, Paul Cleveland Corporation, Scott Jones

PCC Business PLan

Documents

Transcript of PCC Business PLan