ScatterTunes: A Creative Approach to Digital Music Management

1. Proprietary & Confidential The ScatterTunes Description

2. Proprietary & Confidential The Opportunity ScatterTunes is a unique digital audio and video content provider Website, Desktop Application and Unique Digital Products that provide a creative approach to purchasing, managing and experiencing digital music First fully integrated platform catering to the wants and needs of true music fans Corporate business model and goals that align with the business goals of artists and record labels Proprietary platform that allows users to download, upload, purchase and order music, videos, video streams and other related products and services Contractual relationships with all major record labels, ticketing companies and merchandisers

3. Proprietary & Confidential The Difference Unique, Proprietary and Patent Pending Products ScatterTunes V-Album iBoard Immersive, Interactive Complete Music Experience ScatterTunes V-Wrap The V-Album, without the music Pre-purchased music tracks can be imported to complete the V-Album ScatterTunes VA-Creations V-Album Authoring Tool ScatterTunes V-Book iBoard Digital Music Based Books ScatterTunes V-Theater iBoard Full Screen, Near DVD Quality, Live Broadcast and VOD ScatterAnywhere Complete Music Access Cloud System

4. Proprietary & Confidential Technology Behind the Product (Tomorrow) Features & Functionality In Development ScatterAnywhere Cloud Network System allowing for the access and an End-Users complete Music Library on any mobile device ScatterTunes VA-Creations V-Album/V-Wrap Authoring Tool Custom User Developed V-Albums ScatterTunes V-Book Digital Music Based Books ScatterTunes Artists iBoard Artist focused content, store and community functions ScatterTunes Radio Streaming full versions of songs Click to purchase the song playing ScatterTunes V-Album TV Compatibility V-Album products available for TV Viewing ScatterTunes Mobile Store Full E-Commerce capabilities on mobile devices iPhone, Blackberry, Droid ScatterTunes Mobile V-Theater V-Theater Playback on mobile devices iPhone, Blackberry, Droid

5. Proprietary & Confidential The ScatterTunes Growth Vision Complete Digital Entertainment Store Selling Unique Immersive Digital Products Exporting and Connection of ScatterTunes Products To Other Devices ScatterTunes Radio Music Streaming Service with Click to Buy ScatterTunes The Complete Digital Entertainment Service - Phase 1 - Phase 2 - Phase 3 - Phase 4 Cloud Server Network for the personal storage and distribution of ScatterTunes Products

6. Product Details

7. Proprietary & Confidential The ScatterTunes iBoard Proprietary Desktop Application Digital Retail Store Music, Albums, Videos, V-Albums Digital File Manager Playing, Exporting, Moving, Etc. Available On and Off-line Compatible with any hardware, even iPods Includes an iTunes Auto Import for new Purchases PC & Mac Compatible Unique feature icons, allowing users to easily find and purchase products that match their interests Faster installation and updates than iTunes 1/10 the File Size, with 3MB Updates

8. Proprietary & Confidential ScatterTunes V-Album Proprietary digital music and video product with patents pending Focuses on a single artist and a single album Bundles albums music tracks, liner notes, lyrics (including artist hand written lyrics, when available), photos, videos, merchandise, concert tickets and internet broadcast concerts all into a single interactive computer application Highest quality MP3 music tracks (320 kbps) MP3 files are exportable to any MP3 player Auto iTunes Importer for all V-Album music tracks

9. Proprietary & Confidential ScatterTunes V-Wrap The ScatterTunes V-Album without the music tracks If user already owns the music, they can buy the ancillary products from ScatterTunes to wrap around the music (V-Album Wrap) Gracenote Fingerprint technology utilized for track import verification All 30 second Preview Tracks included, and replaced with Imported Tracks All Music Track Lyrics are included, but are not revealed until the verified music track is imported Capitalize on Physical CD Purchases Example: Taylor Swift Fearless Album 11MM Albums sold 9MM Physical CDs

10. Proprietary & Confidential ScatterTunes VA Creation VA Creation Authoring iBoard Application Allows for the cost effective creation of V- Albums and V-Wraps Allows for free creation of personalized custom V-Albums Fully playable on the computer that created it Targeted Market Record Label and Artists Parents, with Kid Bands Artist On The Rise, for band portfolio product Distribution Options Sale Package Free Sales Website Widget allows the for the sale of the V-Album Creation completely on the owners website Full e-commerce functionality within the widget Utilizes Limelight, a service of RightsFlow, to provide easy mechanical licensing option Distribution Package Purchases Distribution Numbers for the distribution of created V-Album Uploads VA Creation and receives a auto- produced custom webpage

11. Proprietary & Confidential ScatterTunes V-Album Mobile App Launched October 25, 2010 V-Album iBoard Mobile Exclusive with Best Buy Taylor Swift Sony/Ericsson Phone x10a Phone Android mobile OS V-Album Mobile App includes: 3 Taylor Swift V-Album 40,000 Phones Sold December 31, 2009 11

12. Proprietary & Confidential ScatterAnywhere December 31, 2009 12 Digital Music Cloud Service Monthly User Fee Allows for Viral Marketing Sales Back-Up Security for all End- Users Content Easy Syncing of Music Collection to Mobile Devices Secure Encrypted Files on Mobile Devices

13. Proprietary & Confidential ScatterTunes V-Book iBoard Music Industry Related Digital, Multimedia and Interactive Book Publications Multi Text Size High Quality Photos and Photo Galleries Full screen playback available High Quality Videos Integrated, and Story Related Music Tracks Includes 30 second Preview Tracks Optional Music Track purchases thru the ScatterTunes Store Book Mark Capabilities Custom Annotation Capabilities Book Audio Playback Publication Licensing Agreement with Hachette Publishing

14. Proprietary & Confidential ScatterTunes V-Theater iBoard Downloaded Video Video On Demand Pre-Encoded Near DVD quality , full screen video at 550 kbps Real-Time Encoded Video Capabilities Deliver LIVE video from Anywhere on Earth Live, full screen, with no caching, using 60% less bandwidth. Near DVD quality , full screen video at 750 kbps Can support up to 11MM simultaneous viewers

15. Proprietary & Confidential ScatterTunes Artist iBoard Brings All Artists Assets Into One Location My Artist Collection Songs, Albums, V-Album, V-Books, V- Theater Videos Other Artist Music Products Other music products by this artist, not owned by user and available from ScatterTunes Utilizes Gracenotes Fingerprint Technology Full Artist Merchandise Concierge Store Artist Tour Map Historical Viewing of Concert Tours/Events Viewing of Upcoming Tours/Events Editable for Users Experienced Tours/Events Upload Photos Community Linkage Artist Community Connection Locked Door that the User Unlocks or Re-Locks