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EXECUTIVE SUMMARY

Emerald City of Oz LLC was formed to develop and produce entertainment


product based on the intellectual properties licensed from Roger S. Baum. The
IP licensing agreement, dated Sept. 30, 2008, includes seven titles written by
Roger S. Baum and are based on The Wonderful Wizard of Oz series written
by his great-grandfather, L. Frank Baum. It is the Companys vision to
develop, produce and distribute the IP under the three main business drivers of
filmed entertainment, digital content and marketing and licensing opportunities
of products. To facilitate these efforts, we are currently raising funds to
develop and produce a 3D version, under our best efforts, two feature-length
animated musicals, digital content such as a virtual world, and a capital reserve
to stimulate licensing and marketing opportunities, as well as allocated
advertising (P&A) funds to promote all media and products.
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EXECUTIVE SUMMARY
Digital content, which encompasses virtual worlds, games (online & console)
and mobile technology, as well as emerging technologies, is a fast-growing
entertainment sector with unlimited upside potential. The top 10 virtual
worlds are earning revenue estimates in excess of $50 million per year, with
the highly successful World of Warcraft leading the way with a staggering
estimate of $500 million per year, according to DFC Intelligence. Strategy
Analytics, in its Virtual Worlds Market forecast for 2009-2015, said it sees
the global population of virtual-world users growing from 186 million today to
almost 640 million by 2015. Thats almost 100 million new players a year, a
nearly 25% compounded annual growth rate. The fastest-growing
demographic is kids between the ages of 5 and 9, which the Company predicts
will grow 27%. The current largest segment of virtual worlds players, tweens
and teens, should grow by some 21%. Online and console gaming, as well as
mobile technology, are exhibiting earning potential in the multi-millions per
year, and continued growth is expected in this area as well.
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EXECUTIVE SUMMARY
Licensing of intellectual property based on animated content has proved to be
a highly lucrative market. It has created over 1,000 separate licensing
agreements for The Simpsons franchise, earned net revenue of $750 million
for Nickelodeons Sponge Bob Squarepants, and projected billions for
Disneys Cars, Wall-E and other film franchises.
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EXECUTIVE SUMMARY
The 1939 film version of The Wizard of Oz has been seen by more viewers
than any other movie. Additionally, the book, Dorothy of Oz, has been in
print for over 15 years by William Morrow and Co., Inc. and continues to be
distributed in a global market by all major book chains. Roger S. Baum is
active in promoting his books and personally appears at conventions, book
stores, festivals and numerous other promotional events. This Oz legacy
provides a unique and limitless opportunity. By exploiting the potential of the
revenue streams of film content, digital content and licensed opportunities.
The Company will establish multi-platform storytelling across an array of
media to create multiple entry points through which consumers can become
immersed in the story franchises world. We firmly believe that by
strategically integrating all media platforms that the franchises market
penetration will enhance all revenue streams, leverage risk and deepen market
valuation.
Emerald City of Oz LLC plans to capitalize on the tremendous brand identity
associated with the adventures of Dorothy Gale in the magical land of Oz and
to introduce the century-old fable to the new millennium.
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MARKETING STRATEGIES
The Company will employ traditional and non-traditional marketing
campaigns to maximize target-audience attendance for the film, strengthen
digital content participation, and create awareness and demand for licensed
consumer products.
Traditional Marketing
Traditional marketing techniques will rely on established advertising platforms
to influence product awareness, brand building and sales.
Traditional marketing techniques will include:
Television and Radio
Paid trailers and commercials on television and radio.
Product placement and product integration.
Interviews with cast on talk shows and entertainment news programs.
Advance trailers, longer pre-views, or behind-the-scenes footage (EPK) on
entertainment news programs.
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MARKETING STRATEGIES
Print
Paid advertisements in newspapers and magazines, and inserts in books,
mailers and other print material.
Cross-promotion of original book, including special printings or new cover
jackets. (Now a major motion picture.)
Merchandise Tie-Ins
Paid co-branding or co-advertising.
Promotional giveaways: branded items, toys or food combinations at fast-
food chains.
Promotional Tour
Film actors and directors appearance in television, radio and print media
interviews.
In the Movie Theater
Slide-show stills, trivia and trivia games from the film shown before movie.
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MARKETING STRATEGIES
In Lobbies and Video Rental Outlets
Stand-ups. (Freestanding, paperboard life-size images of figures from the
film.)
Cardboard 3D displays, possibly with audio elements.
Film posters, digital motion posters and mobile barcoding.
Outdoor Advertising and Promotion
Billboards
Bus stops
Shelters
Kiosks
Taxis
Shuttle vans
Buses
Banners
Subways
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LICENSING
Licensing intellectual properties generates $187 billion annually. The
licensing and promotion of products, as well as tie-ins from animated
entertainment, generate combined revenues in the multi-billions. Animated
film entertainment, especially well-established material that has achieved
strong market penetration from an established television series or film
franchise, can predictably negotiate up to 500 separate licensing agreements
for product line-up ranging from plush toys, games and apparel to greeting
cards, stationery, gift wrap and party goods.
When The Simpsons went on the air, the show had only 12 licensees. Now
there are more than a thousand Simpsons items licensed worldwide. Some of
the items can be worn, some displayed, some used and some consumed. By
the 100
th
episode of the television show, over $3 billion worth of Simpsons
merchandise had been sold worldwide.
Disney is banking big on Wall-E toys and other merchandise to generate
some $30 billion in retail revenue this year. Disneys Wall-E push
encompasses everything from pricey deluxe robots to branded Wall-E Crocs
shoes that leave caterpillar-tread-like tracks.
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VIRTUAL WORLDS
An exciting new element that will expand and support the existing revenue
streams of filmed media and licensing of goods is the development and
creation of an Oz Virtual World. A virtual world is a computer-based
simulated environment intended for its users to inhabit and interact via avatars.
These avatars are usually depicted as textual, two-dimensional or three-
dimensional graphical representations. The three basic tenets of a virtual
world are social networking, gaming and education with the main revenue
drivers of subscriptions, micro-transactions and sponsorship.
The Oz legacy lends itself well to developing, creating and implementing a
virtual world and will expand possible revenue streams exponentially. The
virtual world will also provide a key component of transmedia marketing,
which integrates filmed entertainment, licensing of hard goods and interactive
Web-based entertainment. This allows for greater depth of consumer
immersion and market penetration. An example of this might be that when a
consumer purchases an action figure or clothing and accessories for the action
figure, the product will be accompanied by a code. The consumer enters the
code on the virtual world site that unlocks a companion virtual product to be
owned, traded or sold within the virtual community.
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VIRTUAL WORLDS
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FINANCING
All monies will be used to produce at least one animated film and distributed
for the theatrical release; home video, broadcast and cable markets:
international markets. In addition to filmed content, the Company will employ
best efforts to develop, produce and maintain digital content, virtual worlds
and games for the online and console play, as well as mobile technology. In
addition to filmed content and digital content, the Company will reserve a
conservative capital amount to offset any incurred costs related to licensing
efforts, as well as a substantial capital amount to support marketing and
advertising efforts.
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STRUCTURE
Emerald City of Oz LLC (ECOZ) will share on a pari passu 50/50 basis with
Dorothy of Oz LLC. After ECOZ earns a gross profit of 120% of its
investment, it will share with the production company at the rate of 50% to
ECOZ, and 50% to the production company for perpetuity and includes all
film rights in all markets, and earned net revenue from digital exploitation;
virtual worlds, casual gaming, and mobile applications, etc., as well as all
negotiated licensing rights worldwide.
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REVENUE RATE RANGES
As the following illustrates, the median gross revenue earned by film content
with an average budget of $25 million has been extraordinary.
Film Title Estimated Worldwide Gross
Jonah: A VeggieTales Movie $25,606,175
Hoodwinked $110,011,106
Spirited Away $274,949,886
Beauty and the Beast $403,476,931
Peter Pan: Return to Neverland $109,862,682
The Jungle Book 2 $135,703,599
Jimmy Neutron: Boy Genius $102,992,536
Aladdin $504,050,319
The Rugrats Movie $140,894,685
Wallace & Gromit $185,724,838
SpongeBob SquarePants $140,416,609
Toy Story $361,996,233
Average Budget:
$23,458,334.00
Average Gross:
$207,973,792.00
Average Gross Profit:
$184,515,458.00
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EXPANSION PLAN
Phase 1: Animated Musical Dorothy of Oz
Phase 2: Digital Content
a) Virtual World
b) Games
i) Console
ii) Online
c) Mobile Technology
d) New Technologies
Phase 3: Licensing and Merchandise
Phase 4: Soundtrack and Downloadable Music
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EXPANSION PLAN
Phase 5: Musical Proposal
a) Animated Musical The Oz Odyssey (proposed)
b) Animated Musical The Green Star of Oz (proposed)
Phase 6: Episodic Series for Cable and Satellite TV and Home Video Markets
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PROJECTIONS
Gross Sales (in millions of dollars) Low Med High
Film Content*
Domestic Theatrical 200 400 600
Domestic DVD / VOD / PPV 200 400 600
Domestic TV / Cable 80 160 240
International Sales (All Media) 240 480 600
720 1440 2040
Digital Content
Virtual World (5 Yr. Projection) 400 800 1600
Casual Games (5 Yr Projection) 200 400 800
Mobile Applications (5 Yr Projection) 20 40 80
620 1240 2480
Licensing of IP
Licensing & Marketing of IP (5 yr Projection) 100 200 400
Total Gross Sales 1440 2880 4920
* Film Content projection reflect both Dorothy of Oz and the follow-up sequel.
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PROJECTIONS
Costs Low Med High
50/50 Split with Theaters 100 200 300
1340 2680 4620
Worldwide Distribution Fee (20%) 144 288 408
1196 2392 4212
Prints and Advertising (P&A) 30 60 90
1166 2332 4122
Digital Content Operating Expense (Avg. 30% gross sales) 186 372 744
980 1960 3378
* Film Content projection reflect both Dorothy of Oz and the follow-up sequel.
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PROJECTIONS
Low Med High
1) Return on Investment
A) Dorothy of OZ LLC 30 30 30
B) Emerald City of OZ LLC 70 70 70
Total Return on Investment 100 100 100
880 1860 3278
2) Return on Investment
A) Dorothy of OZ LLC 440 930 1639
B) Emerald City of OZ LLC 440 930 1639
Total 880 1860 3278
3) 50% to Dorothy of OZ LLC (50/50*) 440 930 1639
A) 20% Return 6 6 6
434 924 1633
B) Less 50% Split with Production Company 217 462 816.5
Total Return to Dorothy of OZ LLC 223 468 822.5
* Film Content projection reflect both Dorothy of Oz and the follow-up sequel.
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PROJECTIONS
Low Med High
4) 50% to Emerald City of OZ LLC 440 930 1639
A) Plus 20% Return 14 14 14
426 916 1625
B) Less 50% Split with Production Company 213 458 812.5
Total Return to Emerald City of OZ LLC 227 472 826.5
Return on Investment (ROI) ECOZ 324% 674% 1180%
* Film Content projection reflect both Dorothy of Oz and the follow-up sequel.
Emerald City of OZ LLC will share equally on all net profits with Dorothy of OZ LLC pari passu for perpetuity in all markets.

All figures in million of dollars (USD).

Source: Pixar Revenue Model
The summary may contain forward-looking projections relating to the future operating results of the Company, which may prove to be incorrect. Please be
advised that there is not assurance the Company will achieve the financial results and that the Company will earn revenues or that investors will receive a
return of their capital or any cash distributions. Any projections are estimates.
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