Kinetic Network International Royalty Ventures, Ltd.

This is a business plan. It does not imply an offering of securities.

1. Introduction 4

1.1. Executive Summary 4

1.1.1. Objectives 5

1.1.2. Mission 6

1.1.3. Keys to Success 6

2. Company Summary 7

2.1. Company Ownership 7

2.2. Start-up Summary 8

2.3. Company Locations and Facilities 10

3. Services 11

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3.1. Competitive Comparison 12

3.1.1. Competitive Edge 13

3.2. Fulfillment 13

3.2.1. Future Services 15

4. Web Plan Summary 15

4.1. Website Marketing Strategy 16

4.2. Development Requirements 16

5. Market Analysis Summary 16

5.1. Market Segmentation 17

5.2. Reaching the Market 19

5.2.1. Financial Risks and Contingencies 22

6. Strategy and Implementation 23

6.1. Initial Market Approach 23

6.2. Successive Projects 23

6.3. Project Strategy 23

6.4. Sales Strategy 24

6.5. Sales 2.0 27

7. Management Summary 32

7.1. Organizational Structure 33

7.2. Management Team 33

7.3. Personnel Plan 36

8. Financial Plan 36

8.1. Financial Assumptions 37

8.2. Key Financial Indicators 37

8.3. Break-even Analysis 38

8.4. Projected Profit and Loss 39

8.5. Projected Cash Flow 41

8.6. Projected Balance Sheet 43

8.7. Business Ratios 44

8.8. Valuation 45

8.9. The Investment Offering 46

8.10. Use of Funds 48

1. Introduction

This probably needs a bit of an introduction--it is not your run-of-the-mill business plan. It's slightly different, a bit innovative and certainly creative. You see, we had a difficult time conforming to the formal approach, and every so often, rather than slightly breaking one of the rules of 'business plan etiquette,' we either mangled it a bit or obliterated it altogether and made up our own. It works for us--we wonder if it will work for you, too.

Every little now and then I wonder how connected we all are as individual beings living in a collective world. I wonder how much we really consider each other. Is life just a separate journey for each of us? Can I make your journey easier? Can you do the same for me? Is it safer to care for only yourself? Funny thing is, even if we choose a solitary path, the ripples from just our thoughts, let alone our actions, are enough to touch someone or something else. We are not solitary souls adrift in a world of chaos, though we may feel that at times. We are dynamic, creative, expressive individuals constantly contributing to the components of life...and thus we create our world. We wanted our Business Plan to convey that, and we wanted you to know our intentions.

In business it is well known that failure is an inevitable speedbump on the road of success. Yet, through the drone of voices that only intend to fill the most profitable niche markets; every once in a while someone or something comes along that makes us sit up and pay attention. Something that touches us at a level much deeper than routine...something that whispers to the soul because it holds value, honesty and integrity. Pay attention. This may be that something.

1.1. Executive Summary

Kinetic Network International Royalty Ventures (KNIRV) is a web based independent intellectual property (IP) transaction clearing house and trading platform; providing high-level expertise in artist/inventor networking with international professionals and production companies as well as IP industry compliance. The mission of KNIRV is to provide top-quality compliance resources for liquid intellectual property investment portfolio development. This is done through an online trading, automated contracting, finance research, broker training, and listing web application service, with specialized efforts in music royalty shares.

The company was formed to take advantage of the perceived weakness and inadequacies of other financial markets in terms of security, quality, and customer satisfaction. Whether recorded or live music, a business looking to franchise it's trademark, or a software patent floating within the middle market of the tech consumer industry; Kinetic Network has been created to explore the opportunities available worldwide to further the dissemination and propagation of high-quality, professional Intellectual Property asset renderings (like music) of known and unknown originators for the enjoyment of audiences throughout the world.

Highlights

1.1.1. Objectives

Primary Objective:

Simply, to create the business entity that nurtures the activities of amazingly gifted individuals; of those who produce new and creative intellectual property asset offerings such as songs, books, and films. These assets are diversified and traded through our Royalty Traded UnitTM system. We want to create networks and establish traditional avenues of production and distribution, as well as occasional live presentations. We will do this in specific ways to achieve specific results, project by project.

Operations Objectives:

1. To distribute the intellectual property development financing system.

2. To build and distribute computer applications that standardize and streamline the process of intellectual property development financing.

3. To facilitate social forums that foster the progressive dialog of intellectual property development financing.

4. To promote standardized intellectual property point of sale transactions.

1.1.2. Mission:

The mission of Kinetic Network is to provide top-quality compliance resources for liquid intellectual property investment portfolio development. This is done through an online trading, automated contracting, finance research, broker training, and listing web application service, with specialized efforts in music royalty shares.

The company will seek to provide these services in the most timely manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction. The company's principal officers see each trade as an agreement not between a business and its customers, but between partners that wish to create a close and mutually beneficial long-term relationship. This will help to provide greater long-term profits through referrals and repeat business.

1.1.3. Keys to Success:

1) The strategic organization of the underlying asset originator's endeavors into project format, allowing each project to be individually financed, developed, maintained and tracked with RTU coded percentages according to its unique requirements and objectives.

a. Provides the 'umbrella security and licensing' from Kinetic Network but allows each project and share to live out its own singular existence.

b. Each project share becomes a viable revenue source for KNIRV, dependent upon its own success and market worthiness.

c. The multiple-project/share format allows a broad diversity of effort and application to maximize the potential inherent in each market through individual projects.

d. This format also dilutes the risk involved with each individual project/share for KNIRV as a result of the separate funding secured for each project/share.

2) Development of multiple avenues of visibility for Kinetic Network through strategic partnerships, Internet presence, traditional advertising, digital rights management, and product development.

3) Strategic utilization of the unique pool of asset development talent founded in the personnel makeup of the Kinetic Network; IP Compliance Officer's production, distribution, marketing, management, promotions, and performance contract assignments through individual subcontracting partners.

4) Excellence and commitment woven into every proposed evaluation, thus creating the integrity Kinetic Network, Ltd., shall possess.

2. Company Summary:

The Kinetic Network was formed to take advantage of the perceived weakness and inadequacies of other financial markets in terms of security, quality, and customer satisfaction. Whether recorded or live music, a business looking to franchise it's trademark, or a software patent floating within the middle of the tech consumer industry; Kinetic Network has been created to explore the opportunities available worldwide to further the dissemination and propagation of high-quality, professional Intellectual Property asset renderings (like music) of known and unknown originators for the enjoyment of audiences throughout the world.

Kinetic Network International Royalty Ventures (KNIRV) is a web based independent intellectual property (IP) transaction clearing house and trading platform; providing high-level expertise in artist/inventor networking with international professionals and production companies as well as IP industry compliance . The mission of KNIRV is to provide top-quality compliance resources for liquid intellectual property investment portfolio development. This is done through an online project tracking, automated contracting, finance research, broker training, and listing web application service, with specialized efforts in music royalty shares.

2.1. Company Ownership:

Kinetic Network is a not for profit organization that owns and administrates the KNIRV enterprise trademark. 10% of all Kinetic Network grants, donations, and gifts go to philanthropy and green energy causes.

As a Non Profit Organization in the current State of the Compliance Officer, Florida; ownership of KNIRV is identified as belonging to its managers. The ownership percentages for the managers of this company are:

IP Compliacne Officer 30%

Equity Shareholders 9%

Kinetic Network 49%

Principal Officers 12%

2.2. Start-up Summary:

The company founder, Mr. Guillermo J. Perry, will handle the initial day-to-day operations of the business and will work collaboratively with the nationally acclaimed "Baron Business Consultants" to ensure that this business venture is a success.

Total start-up expense comes to $162,000, of which $13,200 has been expended to date by the Kinetic Network organisation managers; as the groundwork for phase one of the business has been laid. Details of the total start-up requirements are shown in the table above.

Other- The key to accomplishing one critical objective of Kinetic Network to build and distribute computer applications that streamline the process of intellectual property development financing; is to begin by creating a state of the art online trading platform. Market research has shown that this can be created at a low cost through Elance bidding and the use of proprietary software like Adobe Flex.

Cash Required- When procuring new talent KNIRV acts as a clearing house for the disimination of the contracted song, music video, book, invention, etc. Therefore, we will always balance our daily balance to $200,000. In the event that an artist is contracted to create a work for a company, KNIRV then pays the artist up front and bills the company for the balance accordingly.

Long Term Assets- In order to truly act as a clearing house for the intellectual property financing industry, KNIRV must have more assets on the books than working contracts. This money is placed in a series of managed, interest bearing accounts. In the event that a contract becomes defaulted during the initial 3 years processing of a new song or idea; this will help maintain the KNIRV daily ledger balance of $200,000, and the confidence of or clients as well.

Start-up Requirements:

Start-up Expenses

Legal $3,000

Publications/membership $10,000

Office equipment $35,000

Consultants $10,000

Insurance $45,000

Website development/hosting $4,000

Website Management $5,000

Expensed Equipment $0

Other $50,000

Total Start-up Expenses $162,000

Start-up Assets

Cash Required $200,000

Other Current Assets $0

Long-term Assets $1,000,000

Total Assets $1,200,000

Total Requirements $1,362,000

Start-up Funding

Start-up Expenses to Fund $162,000

Start-up Assets to Fund $1,200,000

Total Funding Required $1,362,000

Assets

Non-cash Assets from Start-up $1,000,000

Cash Requirements from Start-up $200,000

Additional Cash Raised $0

Cash Balance on Starting Date $200,000

Total Assets $1,200,000

Liabilities and Capital

Liabilities

Current Borrowing $20,000

Long-term Liabilities $135,000

Accounts Payable (Outstanding Bills) $50,000

Other Current Liabilities (interest-free) $10,000

Total Liabilities $215,000

Capital

Planned Investment

Grants $137,800

Angels Investors $1,000,000

Additional Investment Requirement $0

Total Planned Investment $1,137,800

Loss at Start-up (Start-up Expenses) ($162,000)

Total Capital $985,000

Total Capital and Liabilities $1,200,000

Total Funding $1,362,000

2.3. Company Locations and Facilities

Kinetic Network International Royalty Ventures will seek appropriate office space in the Miami, Florida metropolitan Bank Of America building with the "Intelligent Office" company- The leader in virtual office solutions, shared executive office space, shared office space, serviced offices and answering services:

• "We offer professional, temporary and virtual office space with all the amenities of a real office. Intelligent Office provides four services: Intelligent Assistants, address services, receptionist services and meeting spaces. All services are customizable to fit your business needs, offering a smart, affordable and easy way to work from home or on the road."

The city of Miami offers many benefits to the KNIRV company:

• A close association with the entertainment industry.

• Competent and professional music production companies and studios.

• Competent, experienced and professional studio and stage musicians.

• Marketing and distribution avenues through particularly strong ties to Foreign Coast companies, as well as to Atlanta and the East Coast.

• A burgeoning group of Internet-related companies providing services in the fields of graphics, Web-hosting, Web-marketing, CD reproduction and software distribution.

• Piggyback opportunities with both performers and their associated production companies as they tour through Southern Florida.

All these institutions are prospects for trademarking, copyrighting, and patenting financial services as well; of which only a specialized company like KNIRV can accommodate.

3. Services

KNIRV provides industry compliance for alternative investment opportunities in the creation of high quality intellectual property products such as:

• Music Copyrights

• Patents

• Trademarks

• Corporate Intangible Assets

• Trade Secrets

Our Product

Royalty Traded Unit (RTU)

• Every qualified asset originator is processed through a detailed submission phase done by our online web application.

• This assigns each percentage shared by the originator to its own Royalty Traded Unit.

• Royalty Traded Units are the financial markers that can denote more than one shared percentage (for diversification purposes).

Kinetic Network International Royalty Ventures does not necessarily 'produce' products, but products become the 'evidence' of our services. When a performer or artist comes to us for packaging, the actual CD, digital satellite reproduction, music video, brochures, pictures, etc., can all be considered 'products'--all are expansions and fulfillment of that individual artist's 'performance' effort. It is difficult at best to foresee the products that may be utilized for each performer.

Savvy asset developers of a focus group will weigh the performance, charisma, audience acceptance, production, grasp, and overall marketability of each artist and incorporate only those peripheral 'products' that develop into viable components of the project. Dealing with these developers require good judgment, extensive experience, strong management ability, not to mention perhaps the most important and elusive capability...that of 'reading' the market.

KNIRV encompasses individuals with separate and unique abilities lending themselves to this process; these individuals are known as IP Agents. The overall excellence in this endeavor, however, rests in the comprehensive combined expertise of the principals of this company, with their backgrounds in the entertainment industry, business management, marketing, accounting, production, public relations, and solid business application. These strengths point to an overall understanding of the marketability and viability of each 'product' considered.