dig~~~g - Karan Kamdar

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dig~~~g
Business Plan
$3,000,000 Funding
Minimum $30,000 Investment
Digibag.com
315 Joliet Avenue
Huntington Beach, CA 92646
Office +1 714.536.2491
Fax+I714.908.1566
Dunn & Bradstreet # 78-383-6658
d 'gi v E n
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Walter Callerio - CEO
Mobile+l 714.614.7257
e-mail: [email protected]
Bernard J. Bertucci - COO
Mobile +1 714.614.4127
e-mail: [email protected]
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Table of Contents
Table ofContents
l
Executive Summary
2
Mission Statement
3
Goals and Objectives
3
Business Philosophy
3
Market Overview
4
Products and Services
4
Digivendor" E-commerce Application
--.,....
4
Administrative Tools
_ 5
Social Network_________________________________ 7
Fee Schedules- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7
Local Library Distribution
7
Global Library Distribution
8
Advertising Revenue Sharing Program
8
Digivendot" Marketing Campaign
8
Print
9
~~e
9
Referral Program
10
Other
10
Competitive Summary
10
Competitive Matrix
11
Company Risks
12
Building A Credible Team
12
Product Development
12
Financing
12
L.I
12
Use ofFunding Proceeds
12
Exit Strategies
13
5 Year Financial Projections
14 - 1 7
Balance Sheet
Biographies
17
18 - 22
This Document contams propri etary information that shall be distribused, nn ued or made available only wu hin D igibag.com team mem ber", excep t by
written permission ofD igibag.cum. Only the cupy ofthis document tbut is mamtained in version contro l will be considered controlled. Any paper copy
is cons idered an uncontr olled docum ent
- - - - - - -_ . _ - - ­
Mission Statement
The digibag.com mission is to provide technological solutions to empower artists, fans,and industry. By
doing so, digibag.comwill help create a fair, communal environmentwhere all participants can be
rewarded.
.
,
Goals and Objectives
• Secure financing to continue research and development>fill key positions within the company,
lilld initiate a,credible'marketirygcampaign
'
.
• Complete design work on digivendor TM V 1.0 - August 200G
• Submit US and International Patent Applications"- September 200G
• Beta Testing - November 2006
• Launch digivendor" - December 2006
Business Philosophy
At digibag.com empowering artists, record labels, and businesses with tools to distribute and track
digital media has been the inspiration from the beginning. On-demand delivery of anything digital ,
directly.from web portals and profiles ; with 100% user control, pushes the team to develop innovative
products and services to tackle.industry needs. .
With long-term cost -effective solutions for artists and consumers, digibag.com will successfully navigate
the online environment taking a place as one'of the premier service providers. As the global network .
flourishes the flexibility digivendor" provides will allow clients and the company to quickly adapt to
the demands of the digital marketplace.
The business model we have developed decentralizes media distribution for artists and labels allowing
them to take .advantage of existing traffic and media preview'Swhile retaining 100% control over the
process. No longer will the market rely solely on third party distribution to handle sales . Using seamless
networks, enabling execution at the point of contact, with expanded inventory, advertising, and
accounting options, gives vendors the power to succeed. Whether embedding the application into
profiles, artist websites, utilizing the digibag.com social network, or a combination of them all,
digivendor" offers users a unique opportunity to enter the digital download market with a competitive
advantage. Digibag.com supports .the entrepreneurial drive to cross borders and remove barriers in order
to cultivate the collaborative spirit ofthe digitally plugged-in world.
I
This Document conta tns proprietary information thai shall be distributed; routed or made available only within DIg/bug.cum learn members. except-by
wrttten pernnssion ifD ig/bag. cum. Only the copy vfthis document thai is maintamed in version control will be considered controlled. Any paper cup)'
is conside red an uncontrolled document
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Executive Summary
Di ibag.comisdeveloping a system that will chan e the process of delivering music and media online.
By fusing SOCI networks WI e-commerce, artists-and consumers will manage relationships in way r
unavailable today. This concept provides smart tools for artists, labels, and consumers to distribute,
manage, and share media from any site or music profile, enhancing the experience, while taking
advantage of existing traffic to facilitate transactions. Downloading the digivendorf'" software
application or joining the network enables people to offer digital downloads, track royalties, actively
participate in advertising campaigns, build user profiles, and manage fan bases. Artists and record labels
will be able to sell music directly from any webpage or music profile reducing reliance on third party
distributors or having no option at all. Royalty management represents a major hurdle for the music
industry. The payment process can extend for more than G months, is difficult for artists to reconcile,
and lacks transparency necessary to build confidence and trust. Man)' artists have royalties outstanding
without knowing from whom or what they should be paid.
For independents who want to manage digital media, the digi bag.com platform is a distribution colossus
that puts power back in the hand of creatives, Unlike any organism on the planet, the Automated
Royalty Payment System helps intelligently track royalties for all content and collaborations. After
entering artist royalty details for songs and other media, each individual will have access to real-time
sales reports for works collaborated on. Digivendorv< will track and distribute payments to all registered
artists, allowing for virtually hands free management of the royalty process. Whether media is solely
owned, split between 10 stakeholders, or an artist collaborates on mutually exclusive projects with
multiple vendors, digivendor" can consolidate information on an individual account basis and
distribute payments. Over the course of the next five years the digibag.com vision is to provide the
standard for transparent royalty management and accounting within the digital media industry. Also, the
majority of online advertising dollars never find their way into the pocket of creatives. This occurs
because many artists do not have the contacts, leverage, or pulling power for companies to initiate deals
on their behalf Digivendorv" is about to change all of-that, '
I. I
After installing digivendorw, artists will have an option to participate in the advertising revenue sharing '
program which digibag.com coordinates for all clients, big orsmall.Not only will artists have the
potential to receive 45% of the ad revenue generated from site traffic, controlling which advertisers
appear on each individual application is a feature as well. The digivendor'P' software suite gives artists ' .
complete control and involvement in every aspect of the business. In addition, digivendor" is
networked through a central content database, thus, artists can take advantage of the global library to
cross-sell media with other artists, expanding the inventory base, while multiplying the number of
distribution channels and revenue streams.
I I
Digibag.com will handle the business behind the business of digital distribution by providing asocial
network, coupled with a powerful e-commerce application, to attract artists; fans, and advertisers onto
the system. This combination will provide consumers with a unique opportunity to interact directly with
artists and purchase media from customizable and controlled storefronts while sharing the music
experience with other friends and fansDigibag.com will charge a fee for every transaction that occurs
across the network, distribute payments, and use its leverage to attract advertisers into the program. As
the network of artists, consumers,' and advertisers grow, the power of utilizing the software' application is
magnified, further deepening the bond between digibag.com, consumers, and the artist community.
Thss Document contains proprietary tnformation thai shall be distributed, routed UT made available only within Digibag.com team members, except by
written permission ifDigibag.com. Only the copy ofthis document that is maintamed in version control will be considered controlled. Any paper cupy
is considered an uncontrolled document
2
Market Overview
During the past few years online digital music and media distribution has exploded into a business
opportunity few could have predicted. In 2005 downloads of single tracks topped 420 million worldwide
and with the addition of content for mobile phones global music sales reached $1.1 billion . Digital has
become the fastest growing segment of the music industry now garnering more than G% of the total.
With increasing acceptance from consumers the competition has become fierce and diverse, adding
more than 300 new companies and several different types of media distribution methods. Whether a-la­
cart, do-it-yourself (DIY), all you can eat subscription services, or social networking sites, consumers
now have the ability to easily access online digital content.
Internationally the digital music revolution has begun to take shape with Europe and Asia showing
strong growth. The global expansion is providing the market with more and more ways to add value for
consumers multiplying the potential opportunities for market participants. CD's may never be replaced
but it is clear online sales will continue to expand as bandwidth, consumer acceptance, and technological
innovations move the music industry into the next generation. But have the majority of artists recouped
the benefit from the massive shift into this new medium or have the major record labels and corporations
stolen the show?
The artist community has once again been underdeveloped in the mad rush to exploit this new form of
media distribution. Many of the products offered today fail to deliver smart tools centered on managing
the business for artist, instead, clumsily pulling fans and artists together in an advertising and industry
friendly way. This is the same industry that takes Gmonths to deliver royalty payments and pay artist 8­
15 cents on the dollar for their works. The digivendor" tiered fee schedules, administration and royalty
management tools, advertising revenue sharing programs, and customizability are designed 100% with
the artist in mind, helping them easily handle the complexities of the music industry today .
Products and Services
Digibag.com is focused on using technology to build solutions .that bring transparency and efficiency to '
the marketplace for artists, consumers, and industry. The rich interactive nature of today's media : .
requires systems to take into consideration each component of the network while providing one fluid
experience for all users. Whether consumer, artist, record label, or royalty rights holder, the needs are '
diverse, involving different aspects connected within the chain . Digibag.com is developing several .
innovative products using Flex technology to effectively link the network and unveil a viable solution
for the market to embrace.
.
Digivendor™ E-commerce Application
One piece of the digibag.com offering is digivendor'>, an embeddable software application enabling
artists and record labels to sell digital music and media, including video and ring tones, from any
website or social networking profile. By simply downloading the application, artists will be providing
visitors with rich interactive experiences accompanied with the opportunity to execute sales . The
application style is fully custornizable, including color scheme, skin design, and use of small or large
size players. The power to offer digital downloads from multiple websites and profiles simultaneously, .
This Do cumen t contains proprietary mformatum that shall be distributed, routed v r made availa ble unly within Dtgibag.com team members, except by
written permission ufDigibag.com. Only the copy of ttn s document that is maintained in version co ntrol wiU be co nsidered controlled. Any pape" copy
is considered an un contro lled docum ent
4
within flash rich applications, present major financial, administrative, and technological issues for the
industry. Implementing the digivendor'P' solution brings this power back to the creatives allowing them
to reach new consumers and existing fan bases through free customizable and controlled methods.
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Consumers will also be presented with a new way to experience media by stepping into the customized '
world of their favorite artists with more powerful tools to manage the experience. After login, customers
will be able to set preferences, create, share, and save playlists, and add friends to their network. Also,
users can post comments on media for everyone to review further validating the artists and system. This
will help bring the Consumer closer to the action. No matter which application is logged onto, custom
playlist details, friends, and credit card information will always be saved allowing for easy integration
with any website or artist profile where digivendcr'P' is employed. The ease 'at which 'end users interact
with the digivendort'<environment will help artists sell media deepening the relationship with fans.
Drag and drop music files, custornplaylists, arid matching preferences 'are a few ways digibag.corn '
intends to support the consumer community.
Administrative Tools
The admini strati ve tools are the backbone behind the digivendor'Y platform revolutionizing the business
of digital distribution. There will be a mixture of resources available ill one centralized location for users
to manage the process . This includes an Automated Royalty Payment System (ARPSTM), real-time
reporting, one touch auto upload and encoding of media, advertising revenue sharing, and a central
content database to cross-sell with other vendors. Together with additional features the system
empowers any vendor with the necessary ammunitionto maximize exposure and sales.
This Docu ment contam s prop rietary information that shall be distributed; routed ur made available un ly within Digibag.com team members. except by
written permission ufDigibag.curtl. Only the cupy ufthis document that IS mainta ined m version CU n!rUl W I U be cons idered co ntrolled. A ny pap er cup)'
is considere d a" un controlled do cume nt
5
ARPSTM is an industry first in that it allows the label I artist to split percentages at the media level to be
paid out to individual stakeholders without getting involved in the handling of cash flows. With straight­
through transaction processing, digibag.com can distribute payments based off pre-set breakdowns
accumulated over a given period to be paid out to artists post sales. Vendors will also have the
functionality to scan and attach -royalty contracts to the artists and media, creating an-organized,
intelligent, and paper free system for managing the royalty payment process.
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Vendors will easily control vast catalogues of media, artists, and labels from one central location using
drag and drop technology and hands free royalty processing. This removes the necessity to outsource or
spend valuable resources managing the process internally. Also, any registered royalty owner will have
individual reporting enabling them to track sales and payments without having to rely on others to
access the information, The days of clumsy, time consuming media accounting are over.
All system reporting will be real-time with payments made on a monthly basis. Together with royalty
processing, this ensures people are remunerated in a timely transparent fashion. Another valuable feature
is music and media files will be uploaded and encoded in one shot alleviating use of third party software
and countless wasted hours separating the two functions. This will also minimize the error rate of
loading media onto the system and ensure consumers get the best quality while reducing charge backs
and refunds for unsatisfied purchases. Simplifying and streamlining the experience is a main driver of
development which Will enable us to attract and retain more vendors and satisfy the end users with a
rewarding experience.
Under the Advertising Revenue Sharing Program digibag.com will manage advertisers across the
network sharing income generated with artists based off their sales and ad impression on individual
players. Vendors can actively choose to participate, including which advertisers they want to appear,
bringing even more control 10 the system. This will allow digibag.com to leverage its name on behalf of
the network while sharing the wealth generated with people who decide to participate.
Digivendor" is driven by a central content database enabling users to select content to sell from local
and or the global database. This helps artists and labels open new revenue channels by permitting other
"digivendors" access to selling their content through additional players, providing an expanded network
to distribute media to fans . Under this concept it is possible for an artist to reach consumers through any
application, on any website or music profile, anywhere in the world, regardless if the application is
owned by the artist. Simply allow your media to be sold through the global network and the potential for
others to select and distribute it are limitless.
This Documen t contains proprietary information that shall be distributed; ro uted or made available o nly withm D-.gibag.cum team members. ex cept by
wrttt en permission if D igi bag .com . Only th e copy ofthis document that is mamtamed In version control w rll be -considered controlled. Any paper cup>'
is con sidered an un controll ed document
6
Social Network
Digibag.com will be unveiling a social networking website centered on music and media while tapping
into the existing digivendort'< platform. Users will be able to create and customize profiles, add friends ,
post comments, start blogs, Collect stats and review their.activity throughout the network. Playlists,
comments posted, and other interactive functionality will appear on user profiles and within any
digivendor'>' application. This type of seamless integration of information gives user a cohesive
experience wherever they enter the digivendor'Y community removing hassle and bringing familiari ty to
the process.
There will be three distinct areas @ www.digibag.com. The home page will be a large digivendor"
player with the entire global database of artist available for purchase with unique profiles, information
for consumers, and strategically placed advertisements on the outside chrome. Another tab represents
the User Community which is the social network for consumers to login, customize, interact, and
communicate with other friends and members. This will also contain strategically placed adverts for
potential visitors to explore. The final tab will be the Artist Community designed specifically for
creatives to discover the power of digivendor">' and the features offered by the platform. Together in
one package this combination offers artists, consumers, and the industry a more powerful way to
distribute, track, and manage the digital media experience.
Fee Schedules
Digibag.com will offer the most progressive pricing standards for online digital distribution by
rewarding partner's success with a larger share of the revenue. One size does' not fit all in the digital
marketplace, thus digibag.com have created a fair and reflective system to help facilitate e-cornmerce
over the digivendorP' network, while beating the competition hands down.
Digibag.com has three basic pricing schemes to handle digitaldistribution and advertising on the
digivendor'Y network. Partners will be offered separate fee schedules for media uploaded fromlocal
databases, accessed from the global network, and another for the Advertising RevenueSharing Program.
Fees will be assessed and paid out to vendors on a monthly basis. No other company offers such forward
thinking pricing schemes allowing us to differentiate the digivendor" solution as an artist and label­
friendly tool - not just another way to earn a buck from starving creativesl
Local Library Distribution
• Media owned by the Publisher sold through.theirplayers.
!
Average
• Diaibag.com
Monthly Sa}es_ _
Fee
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~ :. 0- 100 _ J ~Qo/~ _'_ 75,000/.
100 - 300
200oo/0 . - ­80000/0
- -_ 39.Q__~5g.0_ _ L 18.0oo/0 I I
82.000/0
500 - 750
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8300%
- ~ ~ ' 16.00% ,I 84.00%
~6 0 0-- 2.0 00_ t C 15 00%_ 1i
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2,OOQ-3,500 ! 14.0oo/0 li ~ . ~(;fl~
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5,000 -7,500 ' :\ 12"Qgo!~1
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10.00%
90.00'1;1
- - - - ~ - --
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This Do cument contains proprietary informatton that shall be distrtbured; routed ti" made available unly wuhtn Digibag.com team members, except by
written permission ufDigibag.com . Only the copy uflhis document that ts mamtained in version control will be considered controlled. Any paper copy
is considered an uncontrolled docum ent
7
Global Library Distribution
• . Media owned by the Publisher sold on the global network.
• Media sold by an Affiliate from the global library
AYerag~
Digibag.com .
Fee
OwnerfPublisher i j Affiliates
~nthly Sal-!~
.
0 - 100
100 - 300
300 - 500
500 - 750
750
- . - 1000
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5,000 - 7,500
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25.00%
23 00%
_22.00%
.21 00%
20.00%
19.00%
laoo% - ''''r
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65.00%
65.00%
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20.000/0
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15.00%
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Advertising Revenue Sharing Program
• Advertising handled by Digibag.com for the entire network
Average
Digihag.ClfDl i
Monthly Sales _. _.!~~blisher
0 - 100
.
7 5.000/.
. 25.000/0
2 7 00010 - - .
100 - 300
- -7300%
_ ...
.- -300
500
71.00%
29 000/.
_
.
-­
500
750
69.00%
31
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---750 - 1000
67.00%
33 00%
-35 00"1.
1,000 - 2,000
65 00"1.
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3.500 - 5.000
60 000/.
5:000--:7.500 ··1 - 57.000/.
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40 000/o
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--:-7,500+- · --I ----s5~Otm - '1--4500%- ­
The digibag.corn pricing structures are designed to mirror the flexibility incorporated in the
digivendor'> software suite, enabling vendors to adjust pricing according to market demands without
the pressures of preset download pricing systems or lack of control. Vendors will be able to set prices
relative to their unique cost structures and agreements with the confidence of acceptable margins across
the media spectrum, This will ensure clients have the best available tools to succeed, further
.
strengthening the digivendorf" network for all users.
Digivendor" Marketing Campaign
Digibag.com will initially use a mixture of print , online, sponsorships, targeted direct response, and
incentives to market the digivendor''Y platform, focusing the majority of budget dollars exploiting the
online medium. The main purpose of the marketing campaign will be to establish a core user base that
demand high levels of execution in order to streamline operations and build the global library. The target
demographic is a male / female user ages (15 - 35) engaged in the downloading, creation, production?or
.
distribution of digital media This strategy will allow Digibag.com to ramp up capabilities without
overstretching capacity: building influence through serious users while establishing digivendor" in the
marketplace for digital media downJoads.
J1l ,S Docume nt contains proprietary mformation that shull be distributed, routed UT mude available only within D 19ibug.cum team members. except by
written permission ufDiglbug.cum. Only th e cvpy uf tlns duel/merit that IS mamtained tn version control will be conside red controlled. Any paper CUP),
IS considered an un controlled docume nt
8
Print
Print advertising will encompass partnering with industry magazines such as URB, Recording, and
BPM, including DJ Mag, to pinpoint participants who are deeply involved in the music arena These
users are more likely to explore the benefits and uses of digivendor" maximizing the advertising dollars
spent. With a limited budget digibag.com feels it is crucial to select the appropriate mix of partners to
ensure om message is properly received in the marketplace. Due to the difficulty in reaching the market
with print, digibag.com will use selective methods and carefully monitor the impact of the allocated
budget.
Online
The largest portion of the digibag.com ad campaign will employ online advertising to achieve success .
By partnering with myspace.corn along with other niche sites digibag.com can allocate resources
effectively to gamer the attention of the target market. Myspace.com is a socially networked online
community that is the leading "Personal Lifestyle Portal" on the web today. We feel this group of online
users represents the demographic we are looking to influence.
. .
Myspace.com
•
•
•
•
•
•
•
Demographics and Site Statistics
61+ Million Registered Members
21 + Million Unique Views Per Month
10 Billion Impressions Per Month
50.2% Male /49.8% Female
Primary Age Demographic: 16 - 34
1,400,000 Band Profiles
350,000 Band Blogs
Benefits from utilizing myspace.corn include access to music , film, and entertainment fans. With
1,400,000 Band Profiles digibag.com will make vital inroads into the market with potential for this
segment to influence others into interacting with the digivendor'?" platform. Myspace.com reaches more
users than MTV .com, ESPN.com, iVillage.com, and VHl.com Digibag.com will also have the ability to
target users by age, gender, geography, marital status , and connection. The flexibility and reach of
myspace.com make it an ideal tool for the digibag.com product launch.
E-c1assifiedsand niche sites are another avenue jo employ in order to hit the campaign trail running. E­
c1assifieds reach over 1. 1 million entertainment professionals who recommend, approve, and/ or
influence the purchasing of products and services. The three main advantages are that it is low cost
(free) , gains immediate access to online buyers, and has a bight)' targeted audience of audio, video,
broadcast, and entertainment professionals. The type of ad placement available using this method is as
follows :
•
•
•
.
Marketplace Ads (180 x 150) - 1 of 4
Rotating Top Banner Ads (460 x 60)
Ads in the E-c1assified Section
..
.
.
'
.
Other niche sites digibag .com will use include remixonline.com, XLR8Rcom, and djrnixed.com
because they have the reach over the digi bag:com target market making it more likely for these potential
.
enthusiasts to adopt the digivendorw distribution platform. Digibag.corn will make specific ad
placements based off individual site traffic arid user reach in order to better allocate advertising
resources.
This Document contains prvpnetary informa tion that shall be distributed; routed or made avatlable only wuhm Digibug.com team members, except by
written permission ufDigibag.cum. Only th ecopy uf tills document thai is maintained in versi on control will be considered controlled. Any paper copy
is considere d WI uncontrolled docum ent
9
Referral Program
A key feature digibag.com will use to get the industry excited about employing the digivendorf'" e­
commerce solution is a referral program which entitles recipients 20% of the digibag.com profits from
the storefronts or vendors they bring onto the network. By simply registering on the digivendortv
website; a potential individual has the ability to earn revenue on all stores he / she attracts to the
digibag.com family. This allows persons from all facets of the industry to get involved in the growing
digivendcrt'" global community.
Other
Additional marketing mediums include Sponsorships and Targeted Direct Response. With sponsorships,
digibag.com can quickly gain access to large groups of users establishing the digivendorl?" image with
digital media distribution, This involves supporting corporate events , conferences, trade shows, and
other industry gatherings designed to bring individuals together in large groups. The size, type, and
amount of money will be reviewed and determined on an event-by-event basis . Targeted Direct
Response uses e-mail blasts through a targeted database of users from industry affiliates such as BPM
and URB magazine. This allows access to their database of users by sending out in one shot thousands
of adverts to each registered mail box. This is an important vehicle for getting directly in touch with the
digibag.com target market.
.
' .
Competitive Summary
To accommodate the music community's pivot to the digital age, the industry must evolve in order to
deliver to consumer's music they love, in the formats they want, when they want it The do-it-yourself
nature of the digivendor" product offerings comes at an opportune time as the continuously growing
pool of musicians is opting to stay independent and employ online channels to distribute music.
Digibag.com recognizes the dramatic transformation in digital trends and has developed tools geared to
meet the needs of the artist, label, and consumers alike.
In contrast to competitors, digibag.com offers extensive administrative features to facilitate accounting
and royalty processes for artists and labels. Also, digibag.com offers monthly payments in multiple
forms (checks, paypal , direct-deposit), real-time sales, expense and web statistics, as well as an
Automated Royalty Payment System (ARPSTM). Although competitors have made some effort in
providing similar features, they lack the ARPSTM, advertising services, consumer social networking, and
leading technology unique to digivendor'Y The competition pales in comparison, offering only the
payment features or other less developed functionality .
In addition, the varied and flexible digivendor" features provide artists with a practical means for fan
base management While artist bios, profiles, and promotional may be offered by others , digibag.com
enables more in terms offan base management and outreach. Tools such as multi-embeddable players , a
central content database, fan base building and contact, auto-upload and encoding of music, are
exclusive to digivendor''Y users . Furthermore, digivendor'>' is also offering the greatest degree of
freedom to artists to customize their store fronts. The competition provides site templates, simple skins,
while others do not offer anything for artists or labels to distinguish themselves at all. Limiting the level
of customization hampers artists ' and label's ability to be uniquely expressive.
This Do cum ent con tain s proprietary infonntJ1iun that shall be distributed; routed or made available unly within D igi bag.com team mem bers , exc ep t by
wrttten permission of, D igibag.com. Only the copy ofthis document that is maintained in version contro l will be cons idere d control led. An y paper cup)'
is considered an uncontr olled docum ent
IO
Digibag.com also appreciates the phenomenal impact social networks are having on web culture and
have incorporated social networking aspects for fans and -artists into the system Digivendor'Y social
networks will be built on user and artist profiles , including additional features such as forums/chat
rooms, sendable/shareable playlists, and editorial content. Most competitors do not .offer a system for
fans and artists to interact, while others offer a social network for artists without smart tools to manage
their fan base or execute sales.
Moreover, digibag.com is able to provide these services at a lower cost to artist. The digivendor"
application is free of charge to participating artists and labels while competitors charge a membership
fee for services. At the low end, competitors charge approximately $150 per year, others $19.99 a
month. On the other hand , some vendors charge up to $529.95 a year. Besides providing a better
service at lower costs, digivendor" enables more ways for artists and labels to generate revenue .
Competitive Matrix
Rl<VE NUE
<I;
CO ST S
Adon:1o<ing R""""""
sh,..;"g Prou om
:.DeectArtlIt Ear=.<;< .
'Ni> :
No
No
t 19 99Jrr» "I' -to t'529 95iyl- - $\50/yl" .
uptO%1«J
up .to 75%
"1'", %80
No
No
No
Yes
N_
Member'..hp F... ·
"
tlp
10% 90
. uP iQ65%
(jjobaI ·.Artisi ~
ADMINISTRATION
l' . y:n.mt Pesied
Form of P ,l )'Tl"~
Automare d Royally p~ Sy ='
.~.
ltodt!,
Wedd1
Mu1ti
BumR...at ds
Utlknown
NQ
. Multi ·
. .R"d,bme Sales , E.Ip enst & W el>Si:d, ':
.'
Report ISic' to IWib;,.,,:~ ·ci.:;,;,
FllATURE8
· Af pli,~on Based
Mulli-EmlieJdabk ~ _ . ,
· Cem:lI! Coni.,,' Da:ab... :, -
. ~d
ArtIlt BIO& Profiles .
· Adve:timgCamP~
·
.F tnb_ ~ ·
Ad.,-o ced P rcmcsccel Tools
. Customil:obUity
Auto .UpL>>4 &' &c;'·<!e
~ .n MC
:
' S Ctl\rlde o
'
S elI~,,-~
FEATlJRES
Sollwore A~ "_"'"
C c ~ Nitoir.;n,;,;e-' .
ForumsiChatRcotiii:" : - ..
Play'..m.
I
·Yes
r..
Yeo '
. H;&h
....y .... :
y.,.
No '
No
>".,.
. r:· : !>l4"
2~()
.,.
Yea r
Vn
y.,
· yt ~ ·
" 1'1'0':
" 1'1,, : ,.
·,No .:',.
PI.Wi~
~ . , :.
':ye;.
~
No
l'.~ ' . ,
.' lligl,
Xes.
Plalitied
Teo
....
'.
_,0.
..:,:: Y. ,
:l'Iat:xlI<I
No .
" No .
J;"...
'
~
..
..
·Y..,
, y,;.
..
\ .,
.'l c.
N.o
Yo.
No '
,
~.
:
i .; iio
!
.r
' : 1' ~ ' ~ "
.,N<Jno
. No,'
No.: : ~ .r .. ;
. ·Yu
tfi>
.;
Yes
~
·No
, . N~
!'fo
.Yel
" y;;'::
No
No'·,,·
·N o .' ·
"­
Yes
Nf;
. l'' '
:N'o"
';
'No
'N'6
· Y cs .'
N.
No
.,Y.. :
,N o"
No'
No :'.
_.:." 1'1_ :',
Y" .,
Ye" ·
,:" Y~ t
N oNo '
.•,'
y~ " , '
Yes
· ·No ::J
No .:
N o.
':1'10
-Yn
" I.>w'~; :
No
:Y6"'.
1'1.;. ; ....,.,y..' .
.1:'.... ;",Yes ..
'N
,~:
.
~. u·;~ : ;: NO . :; ~:'
,Ye, .
,Yeo·
No
No .
·1'n
", :
... .rNo
'
No.:,
Ubl<-,..,
. ;-Yes,'"
No
y","
. ~" LoW.:
..
' Il~
H" .
No
No
.YOl':
·j'
~wn
'Y; '.• ". ; ':\
1'1" , -
~
No
~ow .
1>(<>
-:::, . .\,~,-~7' ~
'~d '"
No
' 1'1;;:
1'1 e .
N~
Y£J .
:1'1 0 .'
Yo'<
·.No
,.Pl<>
",No'
.High.
. No '::i'
20 ·
Uknown
....,;~
Y.. .
.. N.o
Low
Low
Low
No
r""an:1.Im ae;ir.i
N~ .
. l"o
~
~ ~~ , .N<i.~.~"· •._~
.' . 'No·.
Y... , No
Y• •
'Mo..
·No .-:- i ," No ;; :No · · ·. · ·No ' :
....Wi.:
Ye.
No '
1'1"
; 1'10"
. N; ":
"
No '"
No .
tlQ
.Ye. :
CuStc = blc SaclApplicot!on' "
,P\:nbu.bIe M,sie
Vide o
E<itorial C;"",,1"
'.
No ,
N~
"
~
Ya
.. No'
V~ '.
. V..
ocU WAV
N~
: N o..
d
AinO<ri 'of Upload,
MEDIA TYPE
SelIUP 3
SelIWMA
Y.,.
No'
y.,
'.,
No
. No
No •.>.
.;1'e'·,'
Ve.
""". ,. ..'
No
.Yes
"
.. k o '
X:et
No
' 1'1.
.­
N.>'
N.
;
'; "~
-r­
rei
" 1'10
N6'
:
~
No .
Y. s
<>
Y..
Ye;
r:-­
;'::.:E!8li
1'1..
;
;
;
~ Y..
~~
ARPS....., . Pot ent Pef'\dlng
2 l.... t<;lmo tlonal Sta ndard Re.po rtl ng Cocte
Not Applrccble
Tills Documen t contams propnetary mformation that shall be dl$tribllUd, route d or made available only wuhin D igibag.com team member,.. except by
written permission ufDtgibag.cum, Only th e cup)' (~rthis document that is mamtained m version control '" ill be cons idered controlled. A ny paper cupy
is considered an llncuntrolled ducument
II
,
..
; ~: ;. ..
~,
N6
'.
No -.
,
No
Ye,
No
Company Risks
The evaluation of risk is a key component in mitigating the potential negative outcomes associated with
any start-up venture. Whether financial, competitive, technological, or legal the ability for small
companies to quickly fmd themselves in difficult situations is alarming. Many factors cannot be
controlled, thus it is crucial to identify variables within reach. There are several issues facing
digibag.com, all seemingly of equal importance, but in the quest to prioritize risk, management has
developed a list of the most pressing.
Building A Credible Team
Long term success hinges on the ability to build a quality team, especially during start-up. With each
person wearing several hats simultaneously, it is imperative to select the right people for the job. A weak
link within a small group can be debilitating to future growth. The potential to attract top talent will be
the difference in success or failure and gamer major attention from management.
Product Development
Completing phase one development of the product cycle is paramount to achieving success; without it
we fail to deliver to the marketplace. But design and execution must also reflect the intended vision
while simultaneously allowing for flexi bility within the development cycle. Partnering with
AlmerlBlank gives digibag.com confidence these factors are being adhered to at all times.
Financing
Financing is the glue that binds the project together and must be accumulated andused in ways that
benefit the overall position of the company and its investors. There must be adequate funding in place
for marketing, development, and recruitment but this must be carefully balanced against progress and
dilution to shareholders. Evaluating all options at vital moments can be pivotal.
Legal
The complexities of the legal landscape surrounding digital distribution, patent rights, employment
contracts, and share offerings poses significant hurdles for a small company. It is important to have a
complete understanding of the current and downstream impact of decision making to avoid fatal pitfalls
in the development of the company. Seeking quality advice from the beginning can be the difference in
management minimizing the amount of valuable resources diverted to reactive legal strategies.
Use of Funding Proceeds
~\R
Research & Develop.=ffi=en=-t
_
(::omp~~
-
~ Q , O O O .­
------2?.Q,~ _
A~~_ .
StaffSalaries
Professional Fees
--
- - ­
Working Capital
679.0£0.
. _ .437.10° .
_ _3_6~,7~3
313,797
3.000.000
Total
j
Tills Document contatns proprietary information that shall be distributed; routed or made available only within Digibag.com team members, except by
written permission ufDigibag. cum. Only the copy ufthis document that is maintamed in version control will be considered controlled. A ny paper cupy
IS considered an uncontrolled document
12
Exit Strategies
As digibag.com grows and performance shows up on the bottom line four methods will be evaluated to
allow investors to participate in the success of the company. The timing and appropriateness-will be
determined by the development stage and funding needs of the company.
•
•
•
•
Dividends
Stock Repurchase
Initial Public Offering
Sale
Dividends allow for excess cash to be distributed quickly and easily based off percentageownership of
all classes of stock. This is the easiest way to return a portion of investors' money as soon as possible
without changing the structure of the company. Also, digibag.com may from time to time, offer to
repurchase outstanding shares in order to provide exit potential and consolidate the share position of the
company. This can potentially benefit all parties involved with no public market necessary to execute
the transaction. The third method digibag.com intends to assess is an initial public offering of a portion
of the company. This would provide the liquid market most investors seek in order to evaluate and
liquidate their holdings. The final option is an outright sale of the company based off valuations
reflective of the market environment at the time.
Apart from the method of return, communication from management staff is essential for investors to
make informed decisions. It is the responsibility of digibag.com to provide transparency, a long-term
road map, and the follow through necessary to build confidence and trust. Together with shareholders
this will be a rewarding journey, beginning with the launch of a ground breaking application designed to
meet the needs of the evolving media industry.
This Document contatns proprietary informati on that shall be distributed; routed or made available unly within DIg/bag. cum team members, ex cept by
written perm issi on ofDigibag.com. Only the copy ofthis document that is mumtained m version consrol will be considered controlled. Any pap er copy
is considered aR uncontrolled document
13
,5 ¥ear Financial ~r0i.ectj0t:ts ,
'.;
-::" ,
income Sta remeur
I \ R
Revenue
.. - - -- - - - -Costs ofG¢~ Sold
Gross
Op!:~~~frt
~ --_. _--~.~---
_ .
.
'_.
--'
'
~
.
-l \ R
18,621,659
5\R
", '379,398
_ _ 1,1 ?5
14,015
Depreciation
1,761,866
:
.
'
2,771,'l70
--~ ---_ . _--
3,894,325
'
6,368,068
---i ioo,ooo--(- 2,400:000
~~
1,448,813
. 4244,222
'~,0 78
~407 _
_,_ _12.~2
__ _~?~~ __
l --..22,953
__
43,234
.
91,988
175)156
328,932
-394~
_ _~~__'7!?
Pre-Tax Income
- ---Income Taxes ,@ 3a'/,
6 8,0 2~ ,42 Q
22.6i~~ _~~~ ,_,_ 2d:3ll,547__ !~,~) ,1~
1,038,019
_
;, ~ 769,566~ _
34,971,4 17
~O~Q ~ ' - ''JOo-,OOO- ' 6QO,OOO -
~
Intere st EP~~ .
10,194,564
~,~2 !
_
- - - _. _._-­
Research & Development
3\R
_4~)_ i_12, 759 ..!~.L _~44 1 , 7~, ~ ~
-~
3,268,721
SG&A
EBITD~
2 \R
o
1~~_ _ 4,~~1~,,58993
136,22 I
403,303
1,212,168
2,875..258
Net Income
'
..
•• '1\
Vendor C ruwt h
%
h~
Sales
t
:
,. 'i
GI'OIlJl
orAn Vendor Sales
0 - 160'
100 ' 300
300 - 500
_
'/0 or
---- An
- Vendor
_ ._ -Sales
--- - - - _ . -- - - 20~.
- - -­
1,110
555.
389
10,Oa'1o
7,00%
3.0a'l,
500 . 750
750 • 1000
1,000 - 2,000
---- ---- -_-':'~-':'_---'----
Gr oup C
%
---
or-AIrVendor
Sales
-=---:7,500+
-
-
-
10110"10
5.00% ' '
3,5a'1o
t.5 a'1,
- -
-
531 '·
3,438
2,401
1,017
• "it­
6~ "
:_ _
4,579
. ,.-- 1,935' - "'1"
12,485
8,730
3,687
1250 R u
]Qllglf'llH(ilm"lth
% or ADVendor Sa1
=e::.:s'---_ -=-_ _
:-=~-='- -2 ,Q.0 0 . 3,500
___ _ 3! ~ 0_0 : ,5,g.Q.0
_
5,000 · 7,500
I,B03
1,260
j w:a::;:• . _
_
_ ~~" _
278
- i'
194
83
« s
_1 ~ _ _2,594
806
1,297
566
912
240
385
_
41~_
_
._~~
_
3 ,3 ~ 'Ftn="
2,080
.
1,464
616
__2_.~
989
111O~.
. =--'-' - ­
1.00%
J ota! \ ennor Gro wth
:;'::::0 Assumption
Q1_Ven.dor I'!fg,:~
gtrIQtr Growth
.Q2
. ~__ .
.
694
1_00_,_00% __ ~
.
. ~~_
1d!!7
_
..
--=2.T7_5
5,550
-j
Q4
"
.
5,53G
l ot a l
~
_
._
'. , . ..
. ..- .
.,
Tills Document contains proprietary information that shall be distributed; routed or made available only w,t,l,inDigibag.C<KtI team members, except by
W1'1Uen perm ission ufDigibag .com . Only the cupy ofthis docum ent that is mamtained in-version contr ol will be considered controlled. Any paper cupy
is considered em uncontrolled docum ent
14
­
.•.
~
,"
~
1 YR
YR
.
95,738
899,000
2,526:000
' 2,168,000
~~~06-..:c5,.-+-';--:-:--=<::=
. ' 229,770
__.
Q.~.!l_ _ ___ _ _ __ _ __ __ _
_ _ _ -'=----::.:..:
- 5 00'--...o
7~
_ _ _ _750 - 100:..:.0
1,000 - 2,ODO
_
'--_ _--: $.~
$1,500
!
_.__ ~Jl~
$575
319,125
339.938
_
4 'i R
3\ R
~,~ L
.. _
5 \1{
. 2,195,150
5,359,500
;--~ 16 9 , 6 00 - tJ. ~ , 0 5 9ioo- ., -.< .,
' 5,304,800 " '12,960,800
5J§ll3,225
;__lQfi.1~1!QQ
-------.!.-Q?~,22~ _..1 .976 , 850
3 ,'!.~? ,_6J?
1.102.500
- 2 49,750- ' - 805360---
~ 1QQ.,825_ .
1,525,500
__ 4.Q06,625_
2,902,500
_ ; ..: 2.!:l ,34BJ~
7,178,875__
, 7 ,638,750
5,530,500
Group C
.
__ _
_
~.OOO - 3.500
_3~0 - 5.0:..:0"'-0
5.000 - 7.500
$ 2 .7~
$4 ,250
~_
·
_
_ .
$6,250
';t I0.000 :~~ ,;
1 ulal
~a l c ,
Ad Forecast
Adverttsing Revenue
315.956
,-
988.716
--
1.816.519 3.-1 33.6 13
- -=-= =--=--=-=-
~
6. - .:! 3.S-Il
.
L egend
I!rl[>ressions Per User
30
f~ ' 1.000
CPM
Cost I 1,000 Impressions
$3 50
.)
-,
Co, r O f Good s Sold
.~':""PLA
:.::...
_
o - 100
· ----. _:.. _ _-~o
-_~_~_i..
--300 - 500
A!C_~Sale~~_: ~_F~~ .. _
£50
,._ _
: 75.00·/.
~ IlO.oo
..i!:
: 82.00"1.
-=-t2Q.O
$400
474~~.-!~~~-~ ,472 ,l11~ _!Q~!,979_~~~21_
~~~6 ,075
~
214.452
_B25 .~
188,411
724,880
. ,'
..
",,'
674,250
2,020.800
l, m,7 60
'.~
.
.
;
1,646,363
4.935..680
4,349,936
~ ;Jt.
; 4 019,625
~ . 1 2.047 .~_Q_
10,627,856
1'. '" .. -.. - <. ~
, _?§~ ,2l!9~~n~.7....J ~.z~,~__ ·-!~,200
;~: ~:
~~~ :~ ~~
. , 212,288
684,675
· 1
' ' :.
L,
;:~~:~~~-- , ~:~~; :;ib-i~~~~~~ 1 -2,4 67~1 ~ ,7 00 , 92 5
1,296,675
....
1
't .
..
t
•
"," , _
Gn:n'{lC
7,500+
Paynum! G~.fh ~2
t 1O,OOO
. -­
-
- ---­ -
-
;. 1.70"1._
Th rs Document contains pr op rietary information that sh all be d;,r tnlmled, ronsedur made available only wuhm D ig,b ag.curtl team mem bers, except by
written pernussum ufD igi bag.com. Only the copy ofthi« docuraent that is maintain ed in version control w i t ] be considered controlled:A ny paper copy
is considered an uncontrolled documeni
15
. . . .)
' ....! ?, Ql~~.L
·
..,.
Operational Costs
-+-''---'-~
A dv= -=7"''---'-......_ -'-
161.724
--~--~'--., _ . _-- -- -
.;\R
4YR
~ .()go_ _52Q .~ _~Q(). 0.Q()
_
Referral Fees
Staff Salaries
CEO
CPO
~ YR
l \R
256,458
5\ R
-.
P OO,2QI?- . _J .60.0,000
466,927
' 937,057
482,008
- -­
cro
.-
Accollllla01
-~ . -. - -
- -- -
- _.
- -~ ~
APJ~
._ - - - -- - - -- ---- - ----- ­
Mark.e~ '& Sales .
.
Tech S~port _.
Administration ..
,,_
Professional F"".
Corporate
C ontractual
P atents
.,
»:
\,..,..
..
,
,.
Other Expense .
Heahhcare
-- - - _._---
-
-
-
-
­
Insurance
Travel- _. --.....,,....,,..;...:..~~"""--' '-1 r''!c~~...,,=~'-..;.;.;, ..!. .<
Computers
Servers
Slo.r~e_ .
Bandwidth
Oflice Hardware
-
- - - - - -- -
_ _1_8,607_
5,438
___9~!OOg ...
18,000
t-:- ----··--·----- -- -----).---- -- ­
; __ ~2.2 L_ .
106,974_ _ ~,2 04_ , _ 395,960!.. .
.
17,433
-= i._ _!.¥Ao.6~~~. ..
12,000
•
•
I
" ,
q
_
Lease
--- - - - - - Phon e
Gas & Electric
T UI,d 0 l' r r a liolla l
18,00.Q.
_ 6,QOO_ .
6,000
<.,
_
_22,500
33,287
65,443
6,000
26.000
'
132,922
-3~O :OO.Q..=~ ,.-'- 4 20:0~~. __:,~:-540 :O0~~- ..
p
18.000
.
._~:625 ::.... f'"~~
~!750
~,O ()O
_..~8PQQ _
8,000
10,000
. ~ .Q .O OQ
24,902
12,000
14.000
(' (0\ (\
L egend
:
MP3Me
Sales GtglI
_
~713 _ . _ 80~ _ ~,829
279,428
547.188
Preview GIgs
344,363
1,077,615
1,979,B4ll
3.742,,342
7,J28,4(l:'i
Total Gigs Used
310,078
1.158.076
2.U7,677
4,021.710
71J75,593
Baurlwirlrh ('0<1
%. 000
1H ,O nn
rnn 000
~~ o .o n o
~ ~ II . o o n
.. 7
~gaByte s I ~~; . 1024
p.r.evi ewI Pur.cl!.~e __ '
-2_0 _ ~
Cost Per
of Stor e
$0.50
_L
i
J
"
.. -'
.
'"
Sell&"
~:~~ . _ --..,- ­ ' ~./~
Group C
300
76,590
111.000
166,500
_1.500....
. ..
GroupD.
. ..5 ~"
36 1,590
So~ G~s
Slum . ..
Pnmew GIp S~ol
~tltl
I
~~-
(.;.i 2:\
--
-,
1\I onrh
15,000
22,000
:\ lo nrhly $
$5,390
$7,350
,_,_ ~ , 0.Q0
1.159,200
- - ._ - - 2,472
.,;.. 7,924 .
' 247 '
. 792 '
2,213,400
_ ~ , OOO
4.351.560
8,838,42 0
- -- -- - ~ ~~ - ; ._---
_ _125,000
1-.
~~25 0 . 000
. 500,000
__
$15,000
$25,000
,o j ~ $ 3 5 , ()O QCl~!'"
~' ,
t4 5,OOO
iH ! t L 0,\ ( \
This Document contam s pr oprietary informution that shall be dtstrtbuted; runted ur made available oniy withmDigtbag.com team members, exc ept by
writte n permtssion if D igi bag.c om . Only the eupy ofttus document thut is maintained in version corurol will be considered controlled; Any pap er copy
IS consi de red an un controlled docum ent
16
i'
~
!\I~
I \ It'
'\ l~
-l \ I~
'; , 1~
-
-
-
-~
~-~-
- -----
~
Le ,:!,e IItt
_
Users /Huur
~ , _~
3
Senor /Load
BI"t'~J(·1.n:1I
.
__4~2 _ _ .?~
9
16
31
61
Users I Sons.J>un:hased ~
2
~sen ,:p..~' .?~
300:::"""-Il
. _::"::"
Cost Per Server
$6.500
·\ n alysis
1,188 ,019
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18,275
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2,061,866
_, ~,37 ! ,~ZCl- ,_ J> ,094 ,325
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U:1"ti1- - '-
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0.032
0.039
8,768,068
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Of Download s
Gr.ll.!'P_.I\_ _ _
(}roup B,
Groull C ·
Group D
lotal Prt,fit
0.074
0.004
0.068
0.004
0.052
0.042
0.060
0.003
0. 148
H.ISI
O.ISt>
~.2__ :~
('nit
-tYR
:,YR
0.067
0.051
0.002
0.084
0.041
0.041
0.011
41.161
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As of Au zust 11.1006
Assets
A llI OIUl t
~.!1!..A!S~~_
_ :..-
_
Cash & Equivalents
Receivabies
26,139
0
0
Other
LialJilities & Stock Equity
Accounts Payable
Short Term Debt
Other
117,500
1,384
Total Cnrrent Liabilities .
118,884
o
Total Current Assets
26,139
Non-Current
Assets
----- ---- ---Prop erty, Plant & Equipment
Software
... Non-Current Liabilities
- -34,181
Long Term Debt
555 .
Minohty Interest r . " •
...
34,736
AIIlOlUIt
~.!'t L!abi!!tie,-"'s_ - - - :;;--c_ - - _ - - ­
Total Non-CUlTWltLiabilities
97,247
~_ _
StDckE~
340,000
-217 ,699
-277,5 58
Investment
Retained Earnings
Net Inc ome
Total StockE~
Total
·h s (' t ~
-155,256
_
Total T.itlhiliri l' S & S to ck E'1uit)
* Digibag.com has access to an additional $6SK loan from the CF O ~
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This Document co ntains propri etary information that shall be dutributed; routed or made available unly wuhm D.gibag.cum team members , except by
writte n permissi on ufD tgibag.com. Only the copy ufthis document thai is maintamed in version control will be considere d controlled. A ny paper cupy
I S considered a n uncontrolled docum ent
17
,'.
Biographies - - - - - - - - - - - - - - - - - - ­
Walter Callerio
Chief Executive Officer
[email protected]
Experience
Duffiebag Recordings Inc.
Founder/Owner 1997 - Present
• A&R for Dufflebag Recordings
• PR for Dufflebag Recordings
Dufflebag Recordings Inc. Publishing ASCAP
Founder/Owner 1997 - Present
La Cosa Nostra Recordings
Founder/Owner 2004 -Preseat
• A&R for Dufflebag Recordings
• PR for Dufflebag Recordings
ASCAP Writer since 1997 (Music Writers Association)
Media Creature (Los Angeles)
PubUshing 2004 - 2007
• 3 year Publishing contract
International Dj/Producer
• Disk Jockey since 1988
• Experienced Studio Engineer Since 1996
Software
Windows , Mac OSX, QuickBooks , Miva Merchant, Adobe Illustrator, Adobe Photoshop , Adobe
Acrobat professional, Microsoft Powerl'oint, PHP / MySQL , Htrnl, Excel, Word, Outlook, Cubase SX,
Logic 6.0
Hardware
Mackie 32 X 8 Mixing Console, Mackie digital mixer, Yamaha 01 Pro, Yamaha 02, Motu 2408-828,
Roland SH-101 , Kurzwiel S2500, Roland Juno-106, Compressors
Discography / Licensing
Includes over 35 original music compositions on international music labels with extensive licensing for
mixed compilations, documentaries, and feature films credits that include but not limited to Pitch Black
(Feature Movie) , The Standard Hotel Mix CD (Mix Cornp), and Dave Mira Fearless (documentaries).
This Doc ument contatns proprietary mformatum that shall be dtstributed; routed or made available only witlim D igibag.com team membe rs, except by
wril1enpermission of D igi bag.com. Only the cup)' ofthis document that is mamtained tn version control WIll be considered controlled. A ny paper cupy
IS considered an uncontrolled document
18
Bernard J. Bertucci
Chief Operating Officer
bernard@)digibag.com
d ig ~~~g
Experience
Western Asset Management Company LTD
London, England
Currency Trader / Research Analyst 2004 - 2006
• Worked with Portfolio Management maintaining global currency positions - UK,
Global, European, GMS, and US centric programs
• Actively traded in EUR, GBP, BRL, SEK, NOK, CAD, TRY, ZAR,PLN, HUF, MEX
NZD, AUD and JPY
• Daily and strategic currency execution using spot, forwards, swaps, forward-forwards ,
mismatch swaps, and rolling hedges
• Worked with IT to design and enhance the internal currency trading platform. This
allo wed traders to move from idea into allocation and execution within minutes rather
than using time consuming spreadsheet based methods
Western Asset Management Company
Pasadena, California
Analyst 2(}()1 - 2(}()4
• Worked as a Portfolio Analyst with the High Yield and Investment Grade Credit desks
allocating trades across portfolios including hedging with cash bonds and futures,
scanning accounts that may be out of line given their style or objective
• Designed portfolio exposure reports breaking out spread, sub sector, ticker, curve, and
duration relative to indices
.
• Reviewed daily the futures and options analytics and produced a macro report that was
used by Portfolio Management to base trade strategies off
Northwestern Mutual Ufe
Los Angeles, California
College Agent Summer 2{)(}O
• Worked with clients advising them on personal, professional, and financial goals
• Completed 52 hour pre-licensing course and passed the California State life insurance
exam
. .
Education
,;
University of Southern California, Marshall School of Business
Los Angeles, California
B.S., Business A dministrat ion , Major in Finance
i\iay 2001 Cum Laude
Skills I Software
Excel , Access, Bloomberg, Wilshire Axiom, Yield Book, Lehman Index Tools, and Onyx Database
This D ocument contain s proprietary mformation that shall be dtstrtbured. W Illed ur made available only wuhm Digibog.com team members, except by
written permission ufDigibag.cum..Only the copy ofthis docum ent mal is mamtained m version control will be considered contrull ed. Any paper copy
IS considere d an uncontrolled document
19
~
Robert "Bertucci
Chief. Financial Officer
[email protected]
d ig~~~g
Experience
CB Richard Ellis
Newport Beach, California
Senior Accountant 2005 - Present
• Responsible for accounting and reporting on a portfolio of properties and act as lead for
.
an assigned team of accountant staff
• Prepare all aspects of the financialstatement package, including creating and posting
journal entries, general ledger review, and completion of back-up schedules
•
•
Create and prepare subs idiary schedules including depreciation, amortization, \X'1P, tenant
im p rovem ents, and straight-line rent
Review variances in finan cial statements and document explanations for significant items
Accountemps
Los Angeles, California
Accountant 2(}(]3 - 2(}(]5
Assorted Assignments
• CB Richard Ellis, M. Peyto & Associates, AMTREX, Dana Capital, Clearcom
Networks, West Properties, Baseline Systems , & Battaglia & Associates
McKenzie River Corporation
San Francisco, California
StaffAccountant 2(}(]0 - 2(}(]3
• Reconciliations: induding accounts payable, receivable, bank accounts, fixed assets,
prepaid, advances to employees, accrued liabilities ; and Red Hook/Ll.C reimbursements
• Payroll: processed salary payroll.journalized wages, bonuses, taxes, and prepared
monthly, quarterly, and annual reports
• Network Administrator: was responsible for seamless computer and telecom transition
between old and new office, contracted new ISP and was liaison for internet
connectivity, e-mail, and other desktop related issues
Education
University of California, Santa Barbara
Santa Barbara, California
B.A., Economics, Accounting Emphasis
December 1999
Skills / Software
Accounting Software: i\ffil, Skyline, YARD ~ Great Plains Dynamics, Quick Books, Qui cken
Microsoft Software: Ex cel, Access, Outlook, Word
Other: Adobe Ac robat; Photoshop, Contribute
This Document contatns proprietary information that shall be distributed; muted or made available only within D;g;bag. CtKIl team members, except by
w ritten permission ufD igiba g .com. Only the cupy ofthis document that is mamtamed m vers ion control wi/1 be considered controlled. Any paper cupy
is considered an uncontrolled document
20
Thu Nguyen '
Project Manager
[email protected]
Experience
Western Asset Management Company LTD
.. .<'
London, England
Senior Graphic Specialist 2004 - 2006
• Conducted performance analysis and researched economic data used in client pitches
• Liaised with portfolio management and marketing executives to effectively portray
portfolio/market data as reflected in client presentations
•
Created systems and organized information flow to efficiently cop e with the workload that
resulted from the exponential growth in assets under management and increasingly diverse
range of investment products
Western Asset Management Company
Pasadena. California
Graphics Specialist 2000 - 2004
• Produced marketing presentations using a wide range of graphics tools
• Generated in-house materials such as invitations, adverts, leaflets, maps, and signs
• Created and developed designs used for company branding
• Appointed to represent London Graphics to promote global integration worldwide
'"
Metropolitan News Enterprise
Los Angeles, California
PhotoJournalist 2000
• Coordinated content and placement of newspaper advertisements
• Selected, categorized, and assembled wire reports for three newspapers
• Arranged and formatted court opinion according to the styIe of newspaper and updated
and maintained the directory of bar associations and local government
Education
University of California, Irvine
Irvine, Califonia
R.A., Psychology and Social Behavior
March 2000
University of Birmingham
Birmingham, England
Skills / Software
Apple Mac and \N"'mdows platform proficient, Excel, Office, Powerf'oint, Deltagraph, Adobe PagcMaker,
Adobe In-Design, Adobe A crobat Reader/Writer, Illustrator, Photoshop, Quark Express, Onyx Database,
Bloomberg
'This Document cuntatns -p roprietu ry mformation that shall be distributed, routed or made available only wilhin Digibag.cum team members, except by
written permission uf D igibag. com. Onlythe cup)' ofthis document that is maintained in version control will be considered controlled. Any paper copy
IS consi dered an un controlled document
21
Mike Thompson
Graphic Design
[email protected]
dig~~~g
."
Experience
Sole Technology
Apparel R&D Graphic Artist 2004 - Present
•
Research and develop new graphics and apply them to t-shirts , apparel and footwear for :
Etnies, eS and Emerica brands
Dufflebag Recordings
Art Director 1999 - Present
• Research and develop new graphics and apply them to t-shirts and apparel for Split Jrs
brand, along with catalog layout
Freelance Graphic Designer and Print Broker
1998 - Present
• Create logos, album cover artwork, collateral packages, t-shirt logos and general art
direction for Duftlebag, Digibag and La Cosa Nosta labels
Costa Mesa Mouse Graphics
Generalproduction 1995 -1998
• Create logos and coUaterai packages of a variety of clients in the music industry as
well as corporate world
I,
Software
c\
MacOs and Windows, Adobe Illustrator 9.0; Adobe Photo shop 6.0, Adobe Streamline 4.0 Adobe
ATM Deluxe 4.6, Quark Express 5, Macromedia Flash 5
Education
Cal State Fullerton - FuUerton, CA
No formal Degree obtained, course work included
• Graphic design A and B
• Typography A and B
• Illustration A and B
• 2 and 3 dimensional Design
• Drawing and Life Drawing
• 3D Cyberspace
• Modem Art
• Art History (Pre-Historic to Contemporary
• Creative Photography
Tltis Do cument contains proprietary mformatton that shall be distributed; routed or made available oniy wuhm D iglbag.com team members . except by
written perrmssum ofDigibag.com. Only the cupy ufthis document that is maintained In version control will be considered contro lled. A ny pap e:r copy
is considered an uncontrolled document
22