Strategic Business Plan

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ConfidentialThe information contained herein is proprietary to Imaginere Studios Inc. and its affiliates within the meaning of the Canada Business Corporations Act. Intellectual property & company information within this document, including strategy, financial, marketing and other proprietary business information shall not be shared with others except as specifically permitted in writing by Imaginere Studios Inc. The recipient of this document, by its retention and use, agrees to protect the same and the information therein from loss, theft and compromise. Disclosure of such proprietary information may result in commercial harm to Imaginere Studios.

Contents

Executive Summary 4...................................................................................................................................Financing Requirements 5............................................................................................................................Revenue Projections 5..................................................................................................................................Cost Projections 6.........................................................................................................................................Gross Income 6..............................................................................................................................................Tax 7Net Income 7..................................................................................................................................................Financial Summary 8.....................................................................................................................................Management Expertise 9..............................................................................................................................

J.R Lopez – Creative Director / Founder 9...................................................................................

Role: Creative Leadership & Design 9......................................................................................

Experience: Branding, Marketing, Advertising & Graphic Design 9...........................................

Kristopher Wedgwood – Cinematography / Director of Photography 10......................................

Role: Film Production & Camera Technology Project Management 10.....................................

Kristopher Wedgwood – Rentals Manager & Camera Technology Director 11.............................

Role: Rentals & Camera Technology Project Management 11..................................................

Market Research 12.......................................................................................................................................Branding, Advertising & Marketing 12..........................................................................................

Video Production 13......................................................................................................................

Industry Tax Credits 13.................................................................................................................

Competition 14..............................................................................................................................

Partnerships 14.............................................................................................................................

Associations 14.............................................................................................................................

Marketing 15..................................................................................................................................................Social Media 15............................................................................................................................

Appendix A – Annual Budget Workbook 16................................................................................................Appendix B – Expenditures List 17............................................................................................................

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Imagin what we can do together...

WebsitesDesign ● Development ● SEO

BrandingIdentity ● Character ● Design ● Strategy

ProductionsConcept ● Storyboard ● Audio ● Video ● Post Production

Marketing & AdvertisingCampaigns ● Commercials ● Print ● Radio

Social MediaFacebook ● Twitter ● Instagram

EventsBranded ● Corporate ● Charity

Strategic PlanningMarket Strategies ● Business Plans

TechnologyResearch and Development ● Technology Development

Development of New Inventions ● Bringing New Products to Market

Equipment & Studio RentalsCameras ● Lighting ● Studio Space Rental

Utilizing the $1.2m worth of Film Equipment already acquired

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Executive Summary

PHASE I IDENTITY Launch Date: March 2016 Brand Development

Graphic Artists and Development work to complete our Identity. Website Development

With New Creative Media and Rich Format that Inspires our Clients to Imagine. Office

In the Heart of Downtown Vancouver for Staff to Create and Clients to Imagine. Imaginere Marketing Video (1)

Evocative & Visually Stimulating Videos Inspiring our Clients with our Skills & Creativity

PHASE II PRODUCTION Launch Date: TBD

Studio Equipment including; Cinematic Hi Res Camera, Lighting Kit, associated mounts and

accessories, miscellaneous studio equipment. Imaginere Marketing Video (2)

Evocative & Visually Stimulating Videos Inspiring our Clients with our Skills & Creativity Hiring Imagineer’s

Director of Sales & Office Manager

PHASE III MARKETING Launch Date: TBD

Marketing Campaign SEO, Facebook, Twitter & LinkedIn Campaigns to in increased our Exposure & Opportunities.

Imaginere Marketing Video (3) Evocative & Visually Stimulating Videos inspiring our clients with our Skills & Creativity

PHASE IV TECHNOLOGY & PRODUCT SALES Launch Date: TBD

Development of New Technologies & Bringing New Inventions to Market Imaginere Phantom 4K Flex Upgrade, Imaginere Cat Cam, Imaginere Wearable Cam

Technology, Imaginere Data Centre Live Streaming and Cloud Hosting. Development of Technology and Advertising to New Markets.

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Financing RequirementsThe projected start-up costs for Imaginere Studios is $274,374

�$274,374.00 amortized over 5 years at 3% = Scheduled Payment of $4929.67 Monthly

Revenue Projections

Earnings before Interest, Taxes and Amortization based on Sales Funnel History & Projections.

2016 $478,000 2017 $854,815 2018 $1,333,720

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Cost ProjectionsCosts are based on Standard Office Operating Costs.

2016 $340,000 2017 $452,000 2018 $505,000

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Gross IncomeRevenue minus Costs including Finance Payment

2016 $98,000 2017 $549,000 2018 1.1 $Million

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Tax

Gross Income minus BC & Federal Tax

2016 13% 2017 12.5% 2018 20.5%

Note: In 2018 Imaginere moves from Small Business Tax rate to General

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Net IncomeGross Income minus BC & Federal Tax

2016 $93,510 2017 $321,856 2018 $623,779Note: In 2018 Imaginere moves from Small Business Tax rate to General

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Financial Summary

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Management ExpertiseJ.R Lopez – Creative Director / Founder

Role: Creative Leadership & Design

Jermaine (J.R) Lopez the Creative Director and Founder of Imaginere Studios and has over 13 years of industry experience in film, production, branding and advertising. With his Bachelors in Graphic Design and natural creative ability, J.R. has the ability to create an experience that is evocative.

J.R. has had various acting credits including X-Men 2 and Kyle XY. His most recent project, Boyz in School, is a full feature series on urban young adults facing new challenges of academia. J.R was able to

utilize his industry connections to utilize premium equipment and resources and a 20% reduced budget. Through this project J.R has gained additional resources in the industry and experience in producing large film projects.

J.R. was a marketing manager at JFC Solutions and a Graphic Designer at Minute Man Press and Kinkos. His technical skills have been utilized in many ad campaigns such as Future Shop and Legrand to name a few. J.R. has had recent experience with the UFC, Telus, United Way Lower Mainland, ABC, CBC and a variety of other Film Production companies.

J.R.’s focus will be architecting the correct experience to align with the clients requirements. J.R.

experience and skill is reflected in his clean evocative design.

Experience: Branding, Marketing, Advertising & Graphic Design

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Kristopher Wedgwood – Cinematography / Director of Photography

Role: Film Production & Camera Technology Project Management

Following in his family’s heritage, Kristopher Wedgwood is artistically gifted in many of the fine arts. His career took a new turn when he focused his creative passions towards the art of painting with light (Cinematography), and it’s been his lifelong ambition ever since.

After graduating with a Bachelors in Motion Picture Arts at Red Deer College, Kris challenged himself to become a feature length Cinematographer. By steadily working away and earning opportunities to work alongside cinematographers like John Spooner, Kris became one of the Main Unit DP’s for “A Louder Silence, (nominated for best feature length Cinematographer at the Alberta film and Television awards 2015). Kris’s DP skills also took him to Scotland to work alongside Jan Pester on “Le Paper Castle” which is now in post production. Other DP feature lengths include: Beyond the Deep, Sure Shot 3 and One Life No Regrets. Kris has also been DP for Television shows like: Wild TV’s Fish Camp Season 2, Bite TV’s Felt Up Season 1.

In addition to his key skills, Kris has also sharpened his focus in the Camera, Lighting and Grip departments. Over the years, Kris has worked on shows like Blackstone, Lemony Snicket, Moms a Medium, The bachelor (Canadian Tv series). He’s also created the Production Company “Cast in stone Production”, which has allowed him to film premier events, commercials and productions in Alberta such as: 2012 Winter Olympics, Comic Expo 2015, The Brick. Some various DP credits for him include creating commercials like The Edmonton Oilers Hockey “to the Fans” and Wild TV’s Outdoors commercials. Kris has been keen to diversify his portfolio as a music video producer/ DP for the heavy metal band Striker who was just awarded Alberta’s Largest Metal Band and opened for Metallica on their last tour.

In his spare time, Kris has taught workshops in the Art of Cinematography, and also does other fun things like being a Lighting Designer for the front page issue of Opalus.

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Kristopher Wedgwood – Rentals Manager & Camera Technology Director

Role: Rentals & Camera Technology Project Management

Jon Wedgwood owns a film equipment rental company which has been built over the last 12 years. His expertise includes, Lighting/Grip/Transport which has allowed him to work on features and shows like:

Deathnote, Once Upon a time, Power Rangers, Lucifer, Timeless, Dead of Summer, Boundaries, Beyond. He’s also produced for independents and music videos.

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Market ResearchBranding, Advertising & Marketing

  Amount Unit Date Source

Worldwide

Global Advertising Spending 546.0 Billion US$ 2014 eMarketer

Projection 578.0 Billion US$ 2015 eMarketer

Global Digital Advertising Spending 171.0 Billion US$ 2015 eMarketer

Global Mobile Advertising Spending, Estimate 68.7 Billion US$ 2015 eMarketer

Global Social Media Advertising Spending 23.6 Billion US$ 2015 eMarketer

Global TV Advertising Spending 213.5 Billion US$ 2014 PRE

U.S.

Total Advertising Spending* 178.0 Billion US$ 2014 eMarketer

Projection 187.0 Billion US$ 2015 eMarketer

Top Advertising Categories  

Retail 7.2 Billion US$ Jan-June 2014 Kantar

Automotive 7.0 Billion US$ Jan-June 2014 Kantar

Telecom 4.8 Billion US$ Jan-June 2014 Kantar

Source: Plunkett Research, Ltd., All Rights Reserved

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Video Production

Known worldwide for its 30 years of quality, creativity and innovation, Vancouver is the third largest Film & TV production centre in North America.

Vancouver offers dozens of programs Film & TV development, production, marketing and distribution and more.

With close proximity to Los Angeles, longstanding, stable and competitive tax incentives and government support, and a community that nurtures creativity, Vancouver is the ideal locale for any Film or TV production.

On average the city is home to approximately 30+ movies and 30+ TV series annually, as well as hundreds of other filming days for commercials, TV pilots and other featuresDirect spending on Film & TV production in British Columbia (BC) totalled more than $2 billion in 2014 making Vancouver the 3rd largest production centre in North America

Industry Tax CreditsFilm & TV productions government tax credit incentives

British Columbia Production Services Tax Credit

Offers Canadian, or international film and TV production companies with a permanent establishment in BC, a 33 per cent refundable tax credit on eligible labour costs.

Film Incentive BC Tax Credit

Labour-based refundable tax credit of 35 per cent to Canadian-controlled production companies

Canadian Film or Video Production Tax Credit

Government of Canada offers a credit of 25 % of qualified labour to Canadian-controlled production companies, with a credit of 16 % of qualified labour costs to Canadian controlled

production companies and those with a permanent establishment in Canada.

BC Digital Animation or Visual Effects

Tax credit of 17.5% on qualifying labour costs to production companies employing BC talent for post-production and sound.

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Competition

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PartnershipsRFP Mart & RFPalooza are both services that provide Requests for Proposals.

Management Expertise will Lead Responses to Projects across Canada and the US.

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BC BID Website

AssociationsBCAMA is an American Marketing Association that connect Marketing professionals across Canada. CMA is a company that provides resources for Marketing firms in Canada, such as

Grants and Tax information, as well as special insider incentives. CMPA provides a rich base of resources for Film Production and Media Production companies and organizations in Canada.

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Marketing Social Media

�YouTube will be our strongest social media platform.

Posting Goals:1 Video Posts per month

Corporate Videos (4 more videos per year)

�With consistent posting, our goal will be to acquire:

12,000 likes in 3 months24,000 likes in 6 months36,000 likes in 9 months48,000 likes in 12 months

Posting Goals:4 posts per month x 12 months = 48 posts per year

High Quality images only

�With consistent posting, our goal will be to acquire:

3,000 followers in 3 months6,000 followers in 6 months9,000 followers in 9 months

12,000 followers in 12 monthsPosting Goals:

All consistent with Branding Standard GuidelinesHigh Quality Images only

Tags relevant to Trends, Tech, Design, Branding, Business, Inspiration

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Appendix A – Annual Budget Workbook

2016 2017 2018

Financing Payment $ 59,156.07 $ 59,156.07 $ 59,156.07

Salary & Wages $ 210,000.00 $ 250,250.00 $ 307,637.50

Office Studio Lease $ 48,000.00 $ 120,000.00 $ 120,000.00

Telephone/Internet $ 3,000.00 $ 3,060.00 $ 3,121.20

Business Insurance $ 3,000.00 $ 3,060.00 $ 3,121.20

Hydro & Utilities $ 4,800.00 $ 4,896.00 $ 4,993.92

Marketing $ 24,000.00 $ 27,600.00 $ 31,740.00

Office Expenses $ 9,600.00 $ 9,792.00 $ 9,987.84

Misc. $ 3,000.00 $ 3,060.00 $ 3,121.20

Banking Charges $ 3,000.00 $ 3,060.00 $ 3,121.20

Annual Software costs $ 3,000.00 $ 3,045.00 $ 3,090.68

Total $ 370,556.07 $ 486,979.07 $ 549,090.80

       

  2016 2017 2018

Revenue $ 478,039.09 $ 854,814.56 $ 1,333,719.72

Gross Income $ 107,483.02 $ 367,835.50 $ 784,628.92

Federal Tax Rate 10.5% 10.0% 9.5%

BC Tax Rate 2.5% 2.5% 11.0%

Blended Tax Rate 13.0% 12.5% 20.5%

Tax $ 13,972.79 $ 45,979.44 $ 160,848.93

Net Income $ 93,510.23 $ 321,856.06 $ 623,779.99

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Appendix B – Expenditures List

Items Amount Price Totals Billable Assets

Camera - Phantom 4K Flex 1 103,047.88 $ 103,047.88

Lighting Kit 1 7,000.00 $ 7,000.00

Lenses 2 5,000.00 $ 10,000.00

Mounts & Accessories 1 10,000.00 $ 10,000.00

Tax 14% 17,506.70 $ 17,506.70

Total $ 130,047.88

Office

Desks 4 500.00 $ 2,000.00

Chairs 10 150.00 $ 1,500.00

Laptops & Software 4 3,000.00 $ 12,000.00

Workstation 1 5,000.00 $ 5,000.00

Furnishings 1 15,000.00 $ 15,000.00

Renovations 1 5,000.00 $ 5,000.00

Office Supplies 4 200.00 $ 800.00

Servers 1 15,000.00 $ 15,000.00

Printers 2 500.00 $ 1,000.00

Security 1 2,000.00 $ 2,000.00

2 Months lease 2 6,000.00 $ 12,000.00

Total $ 71,300.00

Marketing

Brand Development

Website 1 15,000.00 $ 15,000.00

Video Marketing 2 15,000.00 $ 30,000.00

Social & SEO 6 3,000.00 $ 18,000.00

Miscellaneous 1 10,000.00 $ 10,000.00

$ 73,000.00

Total $ 274,347.88

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