Business Plan

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BUSINESS PLAN

Mullis Management LLC DBA “Cupid Studios”
Kenneth Brandon and!" #$ner

Created on February 1, 2014

I% E&ECU'I(E SUMMA)*
Current trends indicate traditional employment being rapidly replaced by the virtual world of the online working environment. he adult entertainment industry continues to report multi!billion dollar revenues despite our economic troubles. Couple these statistics with our affiliate broadcasting network, "# $edia, %nc., whose flagship website Flirt4Free.com has virtually dominated the live adult web cam scene since 1&&', earning both (i)mo and Cyber!#ocket awards for nine years in a row. *esults+ an ideal environment for Cupid #tudios, a web!based adult web cam performer management company, to thrive and prosper. ,ith "# $edia, %nc. managing such areas as technical support, viewer billing and marketing, and even customer service, Cupid #tudios is able to focus solely upon recruiting, training, and cultivating -uality adult web cam performers broadcasting live from their homes across a vast network of affiliated adult web cam websites. .ur revolutionary commission!based budget and pay!scales essentially guarantee soaring profits with little possibility for debt. /erformers en0oy the fle1ibility of creating their own weekly work schedules and the leisure offered by the trending work!at!home lifestyle. ,eekly bonuses and contests keep motivation high and encourage creativity through friendly competition. 2est of all, we pride ourselves on placing our performers first, ensuring that their comfort and safety are our top priorities. 3t last there e1ists a company that truly blends traditional employment with the online workplace to create both high!salary 0obs and e1treme profit potential4 that company is Cupid #tudios.

II% BUSINESS DESC)IP'I#N
Cupid #tudios is defined as a web!based client management company. .ur purpose is to recruit, train, and cultivate -uality adult web cam performers broadcasting live from their homes on the "# $edia, %nc. network. 5Cupid #tudios5 is an operational name for $ullis $anagement 66C, a sub!contractor and affiliate of "# $edia, %nc. %n .ctober 2010 a test!launch of Cupid #tudios was initiated as a sole! proprietorship. 3t the time there was no business plan or budget in place4 this was essentially an e1perimental idea void of goals or direction. 7evertheless, upon termination 0ust five months later the venture had succeeded in producing over 84,900.00 a month in revenue with : active performers. %t is from that e1perience that this plan was developed and the vision of Cupid #tudios was reali)ed. he success of Cupid #tudios will not be reliant upon multiple college degrees or decades of e1perience but on the basis that every detail of this plan has been perfected over a ;!year period with a determination and a passion to turn a dream into a reality. #uch e1tensive planning aside, the company will prosper thanks to the uni-ue opportunities and services offered to our performers. ,e provide a safe and creative was for normal people to work in the ever!e1panding, multi!billion dollar adult entertainment industry4 our performers never leave the comfort and security of their homes and as a result avoid the risks and pressures associated with traditional adult!oriented employment. ,e go further than anyone to ensure our performers< success by maintaining highly competitive pay!scales complete with performance!based incentives, a professional working environment free of stressful sales -uotas, and even unlimited time off available upon re-uest in an effort to avoid performer burn!out. ,ith our studio!funded portfolio photo shoots, advancement opportunities in management, fringe benefit packages and more, Cupid #tudios is poised to take the lead in this increasingly popular market.

III%

P)#DUC'S AND SE)(ICES

.ur performers are our consumers, therefor the following are highlights of the uni-ue services provided to them+ • An Entirel! +e,-Based" +or.-At-/ome #pportunit!

From the application process to training, from the first live show to the last, our performers never have to leave their homes. 3ll company operations occur online with the combined use of #kype, our studio website, and the "# /erformer 3ccount. • In-Depth 'raining

=very new performer will receive professional one!on!one training from and e1perienced performer, called a eam 6eader, prior to their first live broadcast. raining provides a solid foundation for success and covers areas such as income generation, system setup, viewer networking, self!promotion techni-ues, etc. • A Sa0e Alternati1e in the Adult Entertainment Industr!

.ur performers work from the safety of their own homes while their systems and identities are protected by multiple layers of security protocols. hese measures ensure an anonymous isolation from viewers while still allowing performers to provide interactive and profitable adult entertainment. 3dditionally, our )ero!tolerance se1ual harassment policy creates a highly professional working environment for all. $ost importantly, our performers are never re-uired to perform any tasks they may not be comfortable with. • E2perien3ed" 4ull-'ime Support

/erformers are placed into virtual teams of up to 29 via #kype team chat rooms, while each team is managed by a eam 6eader. eam 6eaders are always on!call should performers re-uire emergency assistance, while #kype team chat rooms and our studio forum provide access to other e1perienced performers and management. ,hen added to the "# $edia, %nc. 24>? technical support hotline, performers are provided with around!the!clock support for all their needs. • S3hedule 4le2i,ilit!

Cupid #tudios performers en0oy the fle1ibility of creating their own weekly work schedules. 3lthough we re-uire at least ten hours on camera each week, our performers decide for themselves when they will fulfill these minimum hours and may work an unlimited number of additional unscheduled hours as they please. ,ith proper notification we also allow performers to take an unlimited amount of time off, no -uestions asked. • Competiti1e Compensation

he industry average for a live adult web cam performer is 8.'9>minute. 7ot only do we pay our

performers a base rate of 81.00>minute but we also include a 8190.00 #ign!.n 2onus, an unlimited 8100.00 *eferral 2onus for bringing in new performers, 81000.00 every pay!period in op /erformer 2onuses and $@CA moreB • 4ringe Bene0it Pa3.ages

Cepending on e1perience and advancement, performers have the opportunity to receive various fringe benefits including holiday bonuses, comprehensive life and health insurance coverage, matched retirement plans, gym membership reimbursement, college tuition assistance, etc. • A Pressure-4ree Atmosphere

Cupid #tudios has no sales re-uirements because we know that meeting -uotas can be stressful. ,e believe that a successful performer is a rela1ed performer, therefor aside from simply being on camera for at least ten hours a week we place no e1pectations or demands on our performers. ,e are content to allow our performers to mature at their own pace with our e1perienced guidance.

I(%

MA)KE' ANAL*SIS

he adult entertainment industry generates billions in annual revenue, with over :9D of commerce taking place online. ,hile se1 becomes less taboo, record unemployment rates plague our nation, creating an ideal climate for Cupid #tudios to gain hard!working performers. (eographically our marketing or 5recruiting5 campaigns target the entire @nited #tates, focusing on ma0or cities and metropolitan areas. Cemographically we reach out to college students and young adults considered to be in the 5College (enre,5 or being between the ages of 1: and ;0, athletic and generally attractive. ,e accept any race, gender, se1ual orientation and identity, and we can work with solo performers, duos, or trios. /otential performers must be fluent with the =nglish language, have basic computer skills and possess the re-uired start!up e-uipment, and have the legal right to work in the @nited #tates. /sychographically our target market should be open!minded, socially out!going, possess high self!esteem and ambition, be comfortable with se1, have the ability to captivate an audience, and sustain interactive conversations.

(%

MA)KE'IN

PLAN

Cupid #tudios provides professional, high!salary, low!risk 0obs in the adult entertainment industry. .ur recruiting campaigns will rely heavily upon banner and /ay!/er!Click advertising. ,e will utili)e social networks, dating and escort websites, adult casting networks, etc. as catalysts for reaching our target market and producing studio growth. %ncome, especially our above!average pay rate and #ign!.n bonus, will be stressed in our ads to better motivate potential performers to apply. 2elow are some strategies and venues that may be utili)ed in an effort to network and build our brand+ #NLINE I% So3ial Net$or.s and Compan! Pro0iles 3. Company profiles will be maintained on the following social networks in an effort to connect with potential performers and drive traffic to our studio website+ 1. Facebook 2. witter ;. Eoutube 4. Flickr 9. 6inkedin '. $yspace ?. (oogleF

II% Paid Ad1ertising 3. he following companies offer banner, /ay!/er!Click, and>or bulletin board ad options+ 1. (oogle 3dwords 2. (oogle .". ;. Facebook //C 4. $yspace 2anners 9. Eoutube /romoted "ideos '. Craigslist ?. 2ackpages :. Aomebusinessmag.com &. 3dult Casting 7etworks 10. /ornhub

III% 'ra00i3 5ui3ing 3. he following are paid methods to increase site, video, and page views and social media notoriety+ 1. 2otnet *ental+ for around 82>hour this method will direct thousands to a destination @*6. 2. Fiverr.com+ pay individuals 89 to get 9,000 people to spend at least ;0 seconds viewing our studio homepage4 to have 900 people tweet an ad or our introduction video @*64 to have 900 people re!tweet company tweets. ;. 2uysellads.com+ pay someone influential to tweet ads>intro video @*6. I(% 'argeted )e3ruiting 3. 2y creating bot profiles on the following websites we will be able to browse individual profiles and hand!select potential performers. #ome sites may re-uire membership or communication fees+ 1.Facebook.com 1'. Aouseboy.com

2. $yspace.com ;. 3dam4adam.com 4. $ocospace.com 9. Fling.com '.(aywatch.com ?. (ay.com :. (ay.net &. .ut.com 10. Eahoopersonals.com 11. Eahoochat.com 12. $anhunt.com 1;. $en4rentnow.com 14. $en4se1now.com 19. *entboy.com #'/E) I%

1?. #e1search.com 1:. 2arebback.com 1&. /honeshag.com 20. Gtube.com 21. G11blackbook.com 22.$bu))y.com 2;. /honefling.com 24. Fotochatter.com 29. Chubbychasers.com

Corporate Partnerships 3. ,e will approach the talent and administrative departments of the following web!based adult entertainment companies with a proposal consisting of a one!time 8100.00 *eferral 2onus plus 8.09>minute in lifetime royalties for as long as the performer is active for each referred performer originating from that company. *eferrals will be tracked by the use of uni-ue referral %.C. numbers assigned to each company. 1. Corbinfisher.com 2.2rokestraight.com ;. Frathouse.com 4. 2angbus.com 9. 2aitbus.com '. #hanesroom.com

II% Per0ormer )e0errals 1. 3ll performers are issued a uni-ue referral %.C. number that may be used to refer new performers from their personal networks. III% )e3ruiting 4lier Campaigns 3. he C.=... will periodically travel to various @.#. cities and, using a volunteer team of local performers, will distribute our *ecruiting Fliers at the following venues+ 1. College and @niversity student parking lots 2. 2ars and strip clubs ;. 3dult novelty stores 4. /ride festivals 9. College games and events '. 2athhouse parking lots

(I%

L#CA'I#N

Cupid #tudios is an online company4 the location of its head-uarters is of little importance with regards to business operations. .ur goal is to keep overhead to a minimum so that we may continue offering a large variety of services to our performers, therefor the company will initially operate from the home office of the owner. @pon successful completion of pro0ected month 24 our head-uarters will relocate to a leased and renovated office space in 3tlanta, (3.

(II%
Personnel

Management and #perations

%nitially all management functions will be performed by the owner, who will take on multiple personnel titles and their respective compensations. 3s productivity reaches various stages, management roles will be assigned to senior performers, thus creating an e1perienced core management team guided by the owner as C.=... 3ccounting functions will be out!sourced to handle traditional payroll and company ta1es as necessary. =ach personnel title is described in detail below+ I% #$ner 3. Hualifications 1. $ust inherit the company from a previous owner. 2. $ust be related to the previous owner by birth or adoption. 2. *esponsibilities 1. $ust maintain a ,ill be-uesting company ownership to a single heir. %f no ,ill e1ists upon death, ownership must transfer to the closest living relative. 2. $ust maintain accurate contact and financial records with the company. ;. Aas absolutely no e1ecutive, administrative, or operational powers within the company and may never sell or alter the company in any way. C. Compensation 1. ,ill earn 1>; of monthly /re! a1 7et /rofits. 2. %f under the age of 1: at the time of inheritance, the company<s accounting firm will ensure proper compensation is distributed as follows+ I to parent or guardian4 I to a college fund4 I to a low!cost inde1 fund4 I to long!term C.C.s. 3ll accounts and income will be transferred to the owner upon turning 1: years old. ;. his is a traditional ta1ation position II% C%E%#% 3. Hualifications 1. $ust be promoted from the =1ecutive "ice /resident position. 2. $ust have at least a 2achelor<s degree in 2usiness 3dministration or $arketing. ;. $ust reside within driving distance of company head-uarters. 2. *esponsibilities 1. 3ll management functions not assigned to subordinates. 2. 3ppoint, train, and cultivate all e1ecutives. ;. Cirect e1pansion and maintain innovative business strategies. 4. @tili)e /ost! a1 7et /rofits to fund e1pansion and increase revenues. 9. =stablish and cultivate corporate partnerships '. $anage company finances, budget, and payroll. ?. $aintain positive public relations :. Cevelop company policies and procedures. &. %nvestigate and resolve employee grievances. 10. $anage recruiting campaigns and web presence>studio website. 11. Conduct monthly meetings with e1ecutives 12. 6ead the /erformer 3pplication *eview /anel with two votes.

C. Compensation 1. ,ill earn 8190,000.00 salary with an annual increase of 8?,900.00 to a ceiling rate of 8;00,000.00 salary. 2. ,ill retain ".C royalties ;. his is a traditional ta1ation position III%E2e3uti1e (i3e President 3. Hualifications 1. $ust be promoted from the =1ecutive eam 6eader position. 2. $ust have or be in the process of obtaining at least a 2achelor<s degree in 2usiness 3dministration or $arketing. ;. $ust reside within driving distance of company head-uarters. 2. *esponsibilities 1. 3ssist as directed with C.=... responsibilities. 2. %nvestigate and resolve the final level of Cisciplinary #trike 3ppeals. ;. $anage assigned areas of the studio website. 4. $anage fringe benefit packages, claims, and bonuses. 9. /articipate on the /erformer 3pplication *eview /anel with one vote. C. Compensation 1. ,ill earn 8100,000.00 salary with an annual increase of 89,000.00 to a ceiling rate of 8200,000.00 salary. 2. ,ill retain ".C royalties. ;. his is a traditional ta1ation position. I(% E2e3uti1e 'eam Leader 3. Hualifications 1. $ust be promoted from the eam 6eader position. 2. $ust have of be in the process of obtaining at least a 2achelors< degree in 2usiness 3dministration or $arketing. ;. $ust reside within driving distance of company head-uarters. 2. *esponsibilities 1. 3ppoint, train, and cultivate eam 6eaders. 2. $anage performer accounts. ;. $aintain #kype team chat room logistics. 4. =nforce company policy by issuing Cisciplinary #trikes as necessary. 9. $anage assigned areas of the studio website. '. Complete re-uired reports and documentation. ?. Conduct monthly meetings with eam 6eaders. :. /articipate on the /erformer 3pplication *eview /anel with one vote. C. Compensation 1. ,ill earn 8.09>'0 credits generated by all performers. 2. ,ill retain ".C royalties. ;. his is a 10&&!$%#C ta1ation position. (% E2e3uti1e Assistant 3. Hualifications 1. $ust be promoted from the 3dministrative 3ssistant position. 2. $ust reside within driving distance of company head-uarters. 2. *esponsibilities

$anage office supplies. $aintain company records. *ecord and summari)e corporate meetings. Aire, train, and cultivate the 3dministrative 3ssistant and /ayroll #pecialists. /erform clerical duties as directed by the C.=..., =1ecutive "ice /resident, and =1ecutive eam 6eader. '. $anage office e1penses. ?. %nvestigate and resolve the initial level of Cisciplinary #trike 3ppeals. :. /articipate on the /erformer 3pplication *eview /anel with one vote. C. Compensation 1. ,ill earn 8;9,000.00 salary with an annual increase of 81,?90.00 to a ceiling rate of 8?0,000.00 salary. 2. his is a traditional ta1ation position. (I% Administrati1e Assistant 3. Hualifications 1. $ust be at least 1: years old with a high school diploma or (.=.C. 2. $ust be proficient with /C, including $icrosoft .ffice, internet applications, and email. ;. $ust type at least 49wpm. 4. $ust reside within driving distance of company head-uarters. 2. *esponsibilities 1. 3nswer, screen, and direct corporate calls. 2. $anage corporate mail flow. ;. Cirect housekeeping services and maintain a clean lobby. 4. Aost guests. 9. *un local office!related errands. '. /erform clerical duties as directed by the =1ecutive 3ssistant. C. Compensation 1. ,ill earn 820,000.00 salary with an annual increase of 81,000.00 to a ceiling rate of 840,000.00 salary. 2. his is a traditional ta1ation position. (II% Pa!roll Spe3ialists 3. Hualifications 1. $ust be at least 1: years old with a high school diploma or (.=.C. 2. $ust be proficient with /C, including $icrosoft .ffice, internet applications, and email. ;. $ust type at least 49wpm. 4. $ust reside within driving distance of company head-uarters. 2. *esponsibilities 1. Calculate and complete at least 90 /erformer /ayroll %nvoices per day. 2. $aintain the /ayroll %nvoice section of the =mployee *ecord. ;. /roduce a flash drive of completed /erformer /ayroll %nvoices. C. Compensation 1. ,ill earn 820,000.00 salary with an annual increase of 81,000.00 to a ceiling rate of 840,000.00 salary. 2. his is a traditional ta1ation position.

1. 2. ;. 4. 9.

(III% 'eam Leaders 3. Hualifications 1. $ust have at least ' months e1perience as a Cupid #tudios performer. 2. *esponsibilities 1. rain and cultivate team performers. 2. $anage a virtual team of up to 29 performers via #kype. ;. $aintain a 24>? on!call status unless utili)ing the @nlimited ime .ff benefit. 4. =nforce company policy by submitting Cisciplinary 3ction *e-uests as necessary. 9. Complete re-uired reports and documentation. '. Conduct monthly meetings with team performers. C. Compensation 1. ,ill earn 8.19>'0 credits generated by team. 2. ,ill retain ".C royalties and may continue working as a regular performer. ;. his is a 10&&!$%#C ta1ation position. I&% Per0ormers 3. Hualifications 1. $ust be at least 1: years old. 2. $ust have all re-uired start!up e-uipment J a computer with ,indows 2000 or higher, at least 400$h) processor and 29'$b of memory, and a hard drive with at least 1 (ig of free space4 a web cam4 2roadband internet that is fast and reliable, such as C#6, cable modem, etc. with at least ;00Kbit uplink of bandwidth4 a microphoneL. ;. $ust have a private, -uiet workspace. 2. *esponsibilities 1. =ntertain and sociali)e with viewers with the goal of performing live adult! oriented web cam shows. 2. Cevelop and e1pand talent and popularity by accepting and applying constructive criticism from eam 6eader and other e1perienced performers. ;. $aintain viewer networking and self!promotion tools. 4. /articipate in monthly team meetings. 9. 3dhere to company policies and procedures. C. Compensation 1. #olo /erformers+ 81.00>'0 credits generated. 2. Cuo /erformers+ 8.90>'0 credits generated. ;. rio /erformers+ 8.;;.'0 credits generated. 4. Compensation may be supplemented by ".C royalties, bonuses, and contests. 9. his is a 10&&!$%#C ta1ation position. Poli3ies and Pro3edures Per0ormer Appli3ation and /iring Pro3edure 3. #ubmitting the 3pplication 1. /otential performers must complete and submit the following web form located on our studio website to be considered for employment+



*e-uested stage nameM J$ust be realistic, such as Nacob Frost or #elena $L 3re you at least 1: years oldOMP 3re you fluent in the =nglish languageOMP Aow did you hear about usOMP =mail addressM /rimary phone numberM J#hould your application be accepted we will contact you to set up your online training sessionL #econdary phone number 2est time to callMP ,hat is your time )oneOMP *eferral %.C. 7umber J@se this field if you were referred by a current performer or a corporate partnerL Co you have all of the re-uired start!up e-uipmentOMP J o start you will need a computer with ,indows 2000 or higher and>or a $ac, at least 400$h) processor and 29'$b of memory, and a hard drive with at least 1 (ig of free space4 a web cam4 a microphoneL Co you have a reliable internet connectionOMP J 2roadband internet that is fast and reliable, such as C#6, cable modem, etc. with at least ;00Kbit unlink of bandwidth4 wireless is not advisedL Co you have a private, -uiet workspaceOMP J2ackground noises, other people and>or pets walking by, etc. is not allowedL @pload+ (overnment %ssued /hoto %.C.M J his is re-uired for identity and age verification. Cannot be e1pired. Eou may use a Criver<s 6icense, $ilitary %.C., or /assport. =nsure that you scan this or take a photo that is clearly legible and includes all te1t and the photoL @pload+ /hoto!Face>Aead #hotM J$ust be in color4 no hats, headbands, glasses4 no background logos, people, or pets4 be sure to pose, we do 7. want to receive mugshots4 remember these photos display your personality to usBL #ee =1amples @pload+ /hoto!#e1y @nderwear>#wimwearM J$ust be in color4 no hats, headbands, glasses4 must include your full body from at least the knees up4 no background logos, people, or pets4 be sure to pose, we do 7. want to receive mugshots4 remember these photos display your personality to usBL #ee =1amples @pload+ /hoto!FreestyleM J$ay be in color>black and white4 may be fully nude or clothed4 no hats, headbands, glasses4 no background logos, people, or pets4 be sure to pose, we do 7. want to receive mugshots4 remember these photos display your personality to usBL #ee =1amples @pload+ /hoto!FreestyleM J$ay be in color>black and white4 may be fully nude or clothed4 no hats, headbands, glasses4 no background logos, people, or pets4 be sure to pose,

we do 7. want to receive mugshots4 remember these photos display your personality to usBL #ee =1amples M!*e-uired fields P!Crop down options

2. #ubmissions are directed to applicationsQcupidstudios.com and are reviewed by the /erformer 3pplication *eview /anel every $onday, ,ednesday, and Friday. 2. 3pplication 3cceptance /rocedure 1. #hould an application receive a ma0ority vote of acceptance, the =1ecutive 3ssistant will send a generic email to the applicant via applicationsQcupidstudios.com which will include a notice of pending phone contact within the ne1t 4: business hours to schedule an online training session. he =1ecutive 3ssistant will create the =mployee *ecord on Cropbo1.com the forward the application to the =1ecutive eam 6eader. 2. ,ithin 24 business hours the =1ecutive eam 6eader will add the applicant to the *eferral #tatus 2oard Jif applicableL, create the "# /erformer 3ccount, the 229? Cata Compliance Form, the #tudio ,ebsite 3ccount, the #tudio =mail account, and the #kype 2usiness 3ccount. he =1ecutive eam 6eader will then assign the application to a eam 6eader to schedule training, sending the eam 6eader the applicant<s contact information and temporary logins. ;. ,ithin 24 business hours of receiving the applicant assignment the eam 6eader will attempt to make phone contact with the applicant using the following %nitial /hone Contact /rotocol+ • • • • .ver a period of 9 business days no more than ; attempts per number per day at 10 minute intervals will be made during the indicated best!time!to!call period. 1 voicemail per number and 1 email re-uesting phone contact will be left at the end of each day<s attempts. he eam 6eader will update the 3pplicant #tatus to R7o contact made Sdate>time =# TU at the end of each day<s attempts. %f no contact was made by the end of the 9th business day, 1 voicemail per number and 1 email will be left notifying the applicant that their application has e1pired and no further contact attempts shall be made. he eam 6eader will update the 3pplicant #tatus to R3pplication e1pired SCate>time =# TU and the =1ecutive eam 6eader will destroy all prepared accounts. 4. @pon successful phone contact the eam 6eader will briefly answer any immediate -uestions then schedule a ;!to4!hour training session to begin between 10am and 4pm =# $onday through Friday. he eam 6eader will also send two emails, e1plaining each verbally prior to ending the call+ • =mail .ne+ e1plains the purpose, installation, and setup of the #kype %nstant $essenger software and includes the applicant<s temporary login information for his>her #kype 2usiness 3ccount. his email also discusses the re-uirement of accepting the eam 6eader<s #kype connection re-uest prior to starting the training session. =mail wo+ contains the following attachments with instructions for each, the eam 6eader<s contact information, and a reminder of the date and time of the training session, converted to the applicant<s local time )one+



!229? Cata Compliance Form !%*# ,!& Form ! he /erformer Aandbook he eam 6eader will update the 3pplicant #tatus to R raining scheduled for Sdate>timeTU converted to =# . C. %ncomplete 3pplication /rocedure 1. #hould an application contain errors, the =1ecutive 3ssistant will send a generic email to the applicant via applicationsQcupidstudios.com detailing said errors and re-uesting a resubmission once corrections have been made. C. 3pplication *e0ection /rocedure 1. #hould an application fail to receive a ma0ority vote of acceptance, the =1ecutive 3ssistant will send a generic email of re0ection via applicationsQcupidstudios.com Per0ormer 'raining #utline 3. #kype Connection, "ideo Call 1. he trainee must accept the eam 6eader<s #kype connection re-uest prior to starting the training session. @pon successful connection the eam 6eader will initiate a #kype video call to verify the trainee<s identity, visual and audio capabilities, and privacy. 2. #hould the trainee fail to accept the eam 6eader<s #kype connection re-uest by five minutes after the session is scheduled to begin, the eam 6eader will+ – 3ttempt to make phone contact with the trainee to instruct on the process of accepting the #kype connection re-uest. 3 ma1imum of ; attempts per number at 9!minute intervals will be made. – %f after the final attempt no contact was made, 1 voicemail per number and 1 email will be left re-uesting phone contact to reschedule the training session. he eam 6eader will then update the 3pplicant #tatus to R$issed training, reschedule re-uested Sdate>time =# T.U – 2eginning the following business day the eam 6eader will revert to the %nitial /hone Contact /rotocol outlined above. 2. =mployee *ecord completion, "# /erformer 3ccount activation 1. @sing #kype<s file transfer tool the trainee will send the completed 229? Cata Compliance Form and %*# ,!& Form to the eam 6eader. 3ll forms must be inspected by the eam 6eader for completion, accuracy, and legibility. 2. he eam 6eader will then transfer the forms Jvia #kype file transferL to the =1ecutive eam 6eader and proceed with the training session. ;. he =1ecutive eam 6eader will immediately complete the =mployee *ecord and "# /erformer 3ccount activation process, alerting the eam 6eader via #kype when the account is active. C. $oney $atters 1. @sing the /erformer Aandbook, the eam 6eader will discuss aspects of making money as a performer with Cupid #tudios and answer any -uestions the trainee 9.



may have. C. /erformer 3ccounts 1. #tudio ,ebsite 3ccount access, setup, and tour4 complete /ayroll @pdate web form 2. #tudio =mail 3ccount access and setup. ;. "# /erformer 3ccount access, setup, and tour4 update bio page and upload 1 photo. =. /olicies and /rocedures 1. @sing the /erformer Aandbook, the eam 6eader will discuss all company policies and procedures and answer any -uestions the trainee may have. F. ips For #uccess 1. @sing the /erformer Aandbook, the eam 6eader will discuss various tips for success and answer any -uestions the trainee may have4 view lighting video on "# /erformer 3ccount. (. /erformer 2roadcasting 3pplication %nstallation and our A. 1!Aour $onitored 2roadcast, %nitial /erformer =valuation 1. rainee may take a ;0 minute break to prepare if necessary. 2. he eam 6eader will complete, submit, and discuss an initial /erformer =valuation. %. ,rap @p 1. rainee will create a 10!hour minimum schedule, which will be documented by the eam 6eader on the #chedule Cocumentation Form and submitted. 2. %ntroduction to the #kype team chat room ;. he eam 6eader will update the 3pplicant #tatus to Rtraining completed Sdate>time =# T.U • +ee.l! S3hedule )e6uirement Poli3! 3. #ummary 1. 3ll performers must create, maintain, and adhere to a weekly schedule for each active account that is no less than ten cumulative hours on camera. 2. #chedule Creation and $aintenance 1. 3ll performers must create and maintain a weekly schedule for each active account. ,e re-uire this because viewers are able to see performer schedules and will plan their spending accordingly, thus increasing income potential and productivity. 2. 3ll schedules must be created using =astern #tandard ime J=# L. ;. #chedules will be documented by eam 6eaders every #unday by 11pm =# . .nce schedules have been documented there will be no mid!week changes. C. #chedule 3dherence 1. 3ll performers must be on camera during scheduled hours. /erformers are welcome to broadcast outside of their schedules at any time, however this will only be in addition to scheduled hours and there will be no make!up or substitution hours. C. $inimum Aours on Camera 1. 3ll performers must schedule and work a minimum of ten cumulative hours on camera each week. ,eeks are measured from #undays to #undays. 2. R.n cameraU includes open chat, party chat, and private shows. 2reak times are deducted, therefor performers that take breaks must make up time spent on

break. ;. his does 7. mean ten hours are re-uired per active account. 3 performer may, for e1ample, schedule and work four hours in a solo account, three hours in a duo account, and three hours in a trio account during a one!week period and will have successfully satisfied this aspect of the policy. 3lso, not all active accounts must be worked each week, however if an active account will not be worked its schedule must be updated to reflect no hours being worked that week. • Duo7'rio A33ount Creation Pro3edure

3ll performers are initially hired as solo performers, however upon completion of the training session performers may re-uest duo>trio account creations. o initiate this process, participating performers must email a re-uest to the =1ecutive eam 6eader and include the following group photos+ Face>Aead #hot, #e1y @nderwear>#wimwear, two Freestyle Jeach photo must clearly contain all participating performers and adhere to "# $edia, %nc. photo guidelinesL. @nless participants are already on the same #kype team, all participating performers will be moved to the least productive #kype team in an effort to maintain even team productivity. 3ll invitations to create duo>trio accounts are restricted to the appropriate area of the studio forum and are not to be discussed in #kype team chat rooms /erformers may not create duo>trio accounts with non!studio performers. /erformers are encouraged to practice safe se1 and obtain regular # C testing. "# $edia, %nc. and Cupid #tudios cannot be held liable for the contraction of # Cs, pregnancies, and>or otherwise harmful conse-uences resulting from participation in duo>trio accounts. • S.!pe Business A33ount Usage Poli3!

3nytime a performer is broadcasting on the "# $edia, %nc. network, he>she must also be logged into the #kype business account, changing the %$ status to RCo 7ot Cisturb.U 3lso, while private communications are not monitored, #kype team chat rooms are considered professional working environments. 3ny unnecessary profanity, disrespect, or otherwise unprofessional communications will not be tolerated. • Se2ual /arassment Poli3!

Cupid #tudios does not tolerate inappropriate se1ual conduct from its employees. his includes, but is no limited to+ unwanted se1ual advances, comments, propositions, or stalking4 the e1change of personal information, photos, videos, and>or live video chatting for purposes other than those of a professional nature4 promises and>or threats in e1change for se1ual favors4 etc. 3ll complaints of se1ual harassment may be reported without fear of retaliation through our =mployee (rievance /rocedure. 3nyone found to be in violation of this policy will be immediately terminated. • Personal Sa0et! Poli3!

he "# $edia, %nc. network incorporates numerous methods of ensuring the personal safety and privacy of performers, including the use of stage names, state and country (=. filter!block technology, hacker detection and interruption software, and 24>? human chat monitors. %t is strictly prohibited to deliberately breach any of our security protocols by giving out personal information to viewers, including real names, phone numbers, email addresses Jincluding the #tudio =mail addressL, %$ screen names Jincluding the 2usiness #kype 3ccount screen nameL, social media addresses,

physical addresses and>or locations beyond general city>state>country, etc. "iolating this policy will result in immediate termination. • Emplo!ee rie1an3e Pro3edure

,henever possible, personnel complaints should be handled with direct supervisors without submitting a grievance. %n the event that a suitable resolution cannot be reached, employees have the right to file a formal grievance without fear of retaliation by completing the web form located on their #tudio 3ccount. 3ll grievances are investigated and resolved by the C.=... ,ithin 9 business days or receipt. • (S Broad3asting (iolation Poli3!

3 "# 2roadcasting "iolation is issued by "# $edia, %nc. any time a performer is discovered violating the guidelines set forth in the "# 2roadcasting *ules /ublication. Conse-uences are also determined by "# $edia, %nc. and can include+ – – – – 3 warning #uspension 3 fine of up to 8900.00 %mmediate termination

3ny performer that receives a "# 2roadcasting "iolation will also be issued a non!appealable Cisciplinary #trike. • Dis3iplinar! Stri.e Poli3!

3 Cisciplinary #trike is issued by the =1ecutive eam 6eader any time a performer receives a "# 2roadcasting "iolation, whenever a eam 6eader submits a reasonable Cisciplinary 3ction *e-uest, and for non!compliance with company policies and procedures. Conse-uences are progressive+ – – – – 1st #trike+ 3 warning 2nd #trike+ 4:!hour suspension ;rd #trike+ 14!day suspension 4th #trike+ ermination

=1cept for #trikes issued as a result of a "# 2roadcasting "iolation, all Cisciplinary #trikes may be appealed by submitting a completed Cisciplinary #trike 3ppeal Form Jgiven at the time of #trike issuanceL. 3ll active accounts involving a suspended performer will be deactivated until the suspension period has lifted. #uspended performers are still re-uired to participate in monthly team meetings. 3ll #trikes will be removed from the =mployee *ecord every si1 consecutive #trike!free months. • (ideo #n Demand 8(#D9 Editing Poli3!

3ll performers must properly edit any ".C that is five minutes or more in duration 37C maintain a ".C editing score of at least ?9D. /roper ".C editing includes creating a uni-ue title and

description, placing the video into three categories for viewer search, and setting a reasonable viewing price. • Photograph! Poli3!

3ll performers are re-uired to submit at least five updated photos to their "# /erformer 3ccount for each active account every three months. /erformers in the top 20D may also be re-uired to participate in studio!funded portfolio photo shoots /hoto shoots are organi)ed by the C.=... %n partnership with professional photographers and will take place in the performer<s home or local area. • Media Usage Poli3!

3ll media submitted to or created on the "# $edia, %nc. network, including photos, te1t, and videos, will become the sole property of "# $edia, %nc. and its affiliates Jincluding Cupid #tudiosL. ,e reserve full media usage rights during and after performer employment. • Unlimited 'ime #00 Pro3edure

/erformers and eam 6eaders are allowed an unlimited amount of time off as a part of their fringe benefit packages. 7otification of time off, including the amount of time being taken, must be submitted via email to the immediate supervisor prior to 4pm =# on Fridays and may not begin earlier than the ne1t schedule documentation deadline. 3 minimum of seven consecutive days off are re-uired to utili)e this benefit. 3ll accounts involving absent performers will be temporarily deactivated until 24 hours prior to scheduled return, while all account schedules will be erased. #hould additional time off be needed prior to returning, appropriate notification as outlined in this procedure will be re-uired. • Pa!roll Pro3edure

/ay!periods are 14 days in duration, beginning on $onday and ending on #unday. /ayroll distribution is initiated on the hursday following the end of each pay!period and there are no minimum or ma1imum payout limits. Celivery of funds will be determined by the selected payroll method+ Pa!roll Method /ay/al eCheck /ay/al %nstant ransfer 3CA 2ank!to!2ank ransfer Company Check, #tandard $ail Company Check, @#/# /riority 2!Cay "%#3 /ayroll Card 4ee 7one 8.;0 plus 2.&D of transaction 829.00 7one 812.00 8.;9 Deli1er! 'ime ;!9 business days %nstant @p to 24 hours #tandard @#/# delivery times #aturday %nstant

3ll changes to payroll methods may be completed by submitting an updated /ayroll @pdate web form located on the #tudio ,ebsite 3ccount. Changes may take up to 14 days to become effective.



:;<<-MISC 'a2ation Poli3!

/erformers, eam 6eaders, and the =1ecutive eam 6eader are employed under the 10&&!$%#C ta1ation status, more commonly known as the R(eneral ContractorU status. his means that we do 7. calculate or withhold income ta1es from payroll, nor do we participate in wage garnishments, levies, etc. 3lso, minimum wage and workers< compensation laws do not apply to these positions. Curing the month of Nanuary these employees will receive an %*# 10&&!$%#C Form for non!employee compensation summari)ing their total earnings for the previous year so that they may handle their own ta1 obligations accordingly. • Phone Usage Poli3!

$any viewers en0oy speaking to performers on the phone while watching a private show4 performers have also found this arrangement to be a powerful marketing tool. o take advantage of this option while maintaining our /ersonal #afety /olicy, performers must adhere to the following guidelines+ – 7ever give out your personal number4 you must invest in a pre!paid disposable cell phone used solely for this purpose Jthe number must be on fileL. – .nly call viewers during private shows4 never agree to speak to anyone offline or during open>party chats. ,hen the show ends, hang up. – 3lways leave you microphone active4 voyeurs will still want to hear your voice and the ".C will be more valuable. – 7ever use speaker phone. • Per0ormer Sign-#n Bonus

@pon successful completion of their first full pay!period, all newly hired performers will earn a one!time 8190.00 #ign!.n 2onus. • 'op Per0ormer Bonuses =ach pay!period our top five performer accounts will earn a op /erformer 2onus as follows+ – – – – – 1st /lace+ 8900.00 2nd /lace+ 8290.00 ;rd /lace+ 8129.00 4th /lace+ 8?9.00 9th /lace+ 890.00

/erformance ranking is calculated by best conversion ratio Jtime spent on camera divided by credits generatedL. %n the event of a tie, higher rank will be awarded to the account with the most time spent on camera. Cuo>trio accounts will split the bonus evenly among participating performers. • )e0erral Bonus

#uccessfully referring new performers using uni-ue referral %.C. 7umbers will earn the referring employee>corporate partner a one!time *eferral 2onus, distributed whenever the referred

performer completes his>her first pay!period. his bonus may be earned an unlimited number of times. • Annual /olida! Bonus

#elect employees will begin earning an 3nnual Aoliday 2onus after one year of continuous employment as a part of their fringe benefit packages. his bonus is distributed during the first pay! period of Cecember. 2eginning at 8100.00 for one year of continuous employment, the bonus will increase by 8100.00 each consecutive year of continuous employment thereafter to a ceiling rate of 81000.00. • 4ringe Bene0it Pa3.ages 1. Comprehensive insurance plans at company e1pense, to include spouse>domestic partner and children. 2. $onthly gym membership reimbursement. 2. C.=... 1. Comprehensive insurance plans at company e1pense, to include spouse>domestic partner and children. 2. $onthly gym membership reimbursement. ;. 2: days annual vacation>sick>personal leave, non!accumulative. 4. Company!matched retirement plan at ?9D of deposit. 9. 3nnual holiday bonus. C. =1ecutive "ice /resident 1. Comprehensive insurance plans at company e1pense, to include spouse>domestic partner and children. 2. $onthly gym membership reimbursement. ;. 2: days annual vacation>sick>personal leave, non!accumulative. 4. Company!matched retirement plan at 90D of deposit. 9. 3nnual holiday bonus. '. College tuition assistance for a 2achelor<s degree in 2usiness 3dministration or $arketing. C. =1ecutive eam 6eader 1. Comprehensive insurance plans at company e1pense, to include spouse>domestic partner and children. 2. $onthly gym membership reimbursement. ;. 2: days annual vacation>sick>personal leave, non!accumulative. 4. Company!matched retirement plan at ;9D of deposit. 9. 3nnual holiday bonus. '. College tuition assistance for a 2achelor<s degree in 2usiness 3dministration or $arketing. ?. *elocation /ackage+ move!in e1penses paid4 professional mover e1pense paid4 ' months< rent and basic utilities paid4 89000.00 home setup per!Ciem. =. =1ecutive 3ssistant 1. Comprehensive insurance plans at company e1pense, to include spouse>domestic partner and children. 2. $onthly gym membership reimbursement. ;. 2: days annual vacation>sick>personal leave, non!accumulative. 4. Company!matched retirement plan at ;9D of deposit.

3. .wner

9. 3nnual holiday bonus. '. @pdated C%#$ training at company e1pense. F. 3dministrative 3ssistant 1. Comprehensive insurance plans split with company, to include spouse>domestic partner and children. 2. $onthly gym membership reimbursement. ;. 14 days annual vacation>sick>personal leave, non!accumulative. 4. Company!matched retirement plan at 19D of deposit. 9. 3nnual holiday bonus. (. /ayroll #pecialists 1. Comprehensive insurance plans split with company, to include spouse>domestic partner and children. 2. $onthly gym membership reimbursement. ;. Company!matched retirement plan at 19D of deposit. 4. 3nnual holiday bonus. A. eam 6eaders 1. $onthly gym membership reimbursement. 2. @nlimited time off upon re-uest. ;. 3nnual holiday bonus. %. /erformers 1. @nlimited time off upon re-uest.

(III%

APPLICA'I#N AND E44EC' #4 L#AN #) IN(ES'MEN'
3 start!up investment of 810,000.00 will be made by an 3ngel %nvestor.



Proposed )epa!ment7E2it Strateg! – – – – – – – Interest )ate= 90D 3/* Pa!ment S3hedule= 24 monthly installments *ear : Monthl! Pa!ments= 8'29.00, paid on or near the 1st of each month *ear : Pro0it 0rom Interest= 824&&.&' *ear > Monthl! Pa!ments= 8&;?.90, paid on or near the 1st of each month *ear > Pro0it 0rom Interest= 8;?90.00 'otal Pro0it 0rom In1estment= 8'24&.&'



Appli3ation o0 in1estment 0unds – – – – – – – – – – – – – – – – – 66C creation, R$ullis $anagement 66CU! www.legal)oom.com+ ?@A:%<B Company post office bo1, 1 year! www.usps.gov+ ?:C;%;; 2usiness checking and savings account! www.etrade.com>banking+ ?:;;%;; 8Deposit9 2usiness /ay/al account! www.paypal.com+ 4ree G/# 2?U ouch 3ll!%n!.ne /C! www.dell.com+ ?>CD:%<E Kodak =#/ 9290 3ll!%n!.ne /rinter! www.ama)on.com+ ?BDA%C@ .ffice supplies! #taples+ ?@A%;; .ffice furniture! www.C22.com+ ?EDB%@; #ony 2loggie 6ive AC web cam! www.ama)on.com+ ?:<<%<< #kype 2usiness $anager software! www.skype.com+ 4ree #kype @nlimited @.#. "o%/ /hone #ervice, 12 months! www.skype.com+ ?BA%CE .ffice*unner ,ireless Aeadset! www.ama)on.com+ ?B:<%<A Crop2o1.com /ro 3ccount, 1 year! www.dropbo1.com+ ?:;;%;; #tudio ,ebsite, /ro /lus 1 year! www.webstarts.com+ ?<A%E@ ,ufoo #ubscription, 3C %nfinitum 1 year! www.wufoo.com+ ?:@<<%;; %ntroduction video production! www.northgeorgiaproductions.com+ ?>;;;%;; .perational Funds+ ?@<:%DB

I&%

ASSUMP'I#NS

he following assumptions, derived from our 2010!2011 test launch, were used to create our /ro0ected Financial #tatements+ – – – – – (S Media" In3% Su,-Contra3tor Studio )ate= 81.:&>'0 credits generated A1erage :;<<-MISC Pa!roll= 81.20>'0 credits generated A1erage ross Pro0it= 8.'&>'0 credits generated A1erage Credits enerated Per Per0ormer A33ount= ',000>week4 2',000>month A1erage Studio ro$th )ate= I of current performers>month, ma1imum 20 performers per month

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