The Word Wits Video Series

- Business Plan -

PITCH (EXECUTIVE SUMMARY)

According to the New York Post, The Wiggles, an Australian band for children –turned
TV show –earned an estimated $45 million in 2006. We are currently producing a series
of musical/comedy video vignettes (and a promotional traveling stage show) entitled The
Word Wits. Our educational objective: help children build vocabulary. The Word Wits is
not about letters or phonics. It is about word meanings –the understanding of which is
necessary for basic communication and self esteem.

The media industry is rapidly changing and there is no need for us to swim against the
current. Drawing our income from advertisers and merchandising, our series will be free
to the public on the Internet. With our marketing campaign and the extremely entertaining
nature of our short video segments, we believe The Word Wits will soon be seen on
millions of computers, cell phones, and iPods.

Our creative and management team –a group of veteran children’s edu-tainment

writers/producers from Razzle Bam Boom Productions –seeks a total of $240,000 from
investor(s) in exchange for a 40% equity position.

THE PRODUCT
Imagine your child being able to put the feeling of being “frustrated”into words rather
than just crying. Envision a young person actually knowing what “responsibility”means
when parents, teachers, and coaches refer to the word. The Word Wits is being created to
help children ages 3-8 build their personal vocabulary by watching short, funny musical
video segments and then applying their understanding through fun games on our website.
In addition to enhancing their communication skills and self-esteem, young viewers may
even improve their reading comprehension potential and perhaps even their understanding
of the world around them.

UNIQUE ASPECTS
This video series is different from other products and programs in two ways:
1. Short length
2. Educational focus
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LENGTH
Each episode in the series is only 2 to 2-1/2 minutes long. The two-minute segment (more
than a television commercial and less than a pop song) is ideal to hold the attention of a 3
to 8-year-old child (and many adults for that matter). In two-minutes, we will demonstrate
the definitions of one to three related words. This short length gives parents more control
over the amount of time they allow their children. A child may watch for two-minutes or
thirty minutes. The short length is also easier to download and is more compatible with the
type of content that will soon be needed for iPhones and iPods.

From a business perspective, one of the best advantages of our two-minute format is the
simplicity of adding paid advertising content to each video episode. TiVo type technology
has become a problem for advertisers whose messages are ignored due to viewers skipping
past the ads. We will embed a three-second video with the advertiser’s logo at the
beginning and end of each two-minute episode. This will be done tastefully in a PBS style:
“The following program is made possible by the folks at Apple Computer.”–with a logo
placement. The viewer will not bother to skip a three-second commercial. The video ads
at the head and tail of the short programs will also tie in to a banner ad on our host site.

EDUCATIONAL FOCUS
Our specific educational emphasis is the other unique aspect about our series. Language
development and linguistics can be broken down into three sub-fields: phonics,
graphemes, and lexical semantics. Phonics deals with the relationship of sounds or letters
and graphemes is about spelling. There are many programs available that deal with
“phonics”. The Word Wits is not a phonics program. The third element, lexical semantics,
is the subfield of linguistics dealing with the meaning and relationship of words. We can
not communicate unless we know what our words mean. Lexical semantics is what we
address in our series.

Many PBS and Disney type television programs, such as Sesame Street, cover a broad
range of subjects. Some of these TV shows touch upon vocabulary, but only as a small
part of the program. Perhaps our closest competitor is an Australian produced television
show on Nickelodeon/Noggin called The Upside Down Show. It does claim to build
vocabulary as one of its objectives. However, there are many differences between their
concept and ours. In addition to the short format, we incorporate many songs that teach.
Our show will appeal to the Hispanic market using a Spanish speaking puppet. Featured
vocabulary words will appear on the screen for visual recognition and retention and we
will use more visuals and graphics to help
demonstrate the word visually. This is
perhaps a moot point because The Upside
Down Show was not renewed by
Nickelodeon/Noggin for a second season
by the decision of the two starring actors.
Interestingly, it was a highly rated show.
The Word Wits will focus on building
vocabulary more than any other show on
television or the Internet.
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How is The Word Wits different from a dictionary? A dictionary has to be read! The Word
Wits can be understood by children who have not yet learned to read. Even for those who
do read, the process of learning a new word can be frustrating when the written definition
uses words that are not understood. The Word Wits does not rely on using words to define
words. By integrating visuals, we show the child the definition of the featured word.

Our series will emphasize words that are not as easy for parents to teach. For example, a
mother may say to her three-year old, “Look at the bird fly.” Parents are doing a fine job
of teaching their young children about objects that can be seen. Therefore, there is no need
for our series to cover the word “bird”. Our series would more likely teach more
sophisticated words that relate to a bird such as “glide”, “aviation”, or “predator”.

EDUCATIONAL VALUE
Literacy experts share the belief that vocabulary knowledge and the ability to comprehend
text are inextricably linked -- that the breadth and depth of a student's vocabulary is a key
predictor of his or her ability to understand a wide range of texts (e.g., Anderson &
Freebody, 1981; Thorndike, 1973). This is true both for native English speakers (L1) and
second language (L2) learners (Coady, 1993; Stoller & Grabe, 1993).

According to Francie Alexander, Senior Vice President for Scholastic Education and
Chief Academic Officer for Scholastic Corporation, “Vocabulary is critical to reading
success for three reasons:

1. Comprehension. Comprehension improves when you know what the words

mean. Since comprehension is the ultimate goal of reading, you cannot
overestimate the importance of vocabulary development.
2. Communication. Words are the currency of communication. A robust vocabulary
improves all areas of communication — listening, speaking, reading and writing.
3. Confidence and Competence. How many times have you asked your students or
your own children to “use your words"? When children and adolescents improve
their vocabulary, their academic and social confidence and competence improve
too.”

Our program will appeal to children’s natural “intelligence”by using various media and
teaching techniques such as:
music
rhythm
rhyme
humor
movement
patterns
non-verbal physical demonstration
compare and contrast
call and response
photos
graphics
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TARGET MARKET
Though preschool and kindergarten teachers, stay-at-home parents, and parents of home
schooled children are specific markets for The Word Wits, any parent (especially mothers)
of 3 to 8 year old children and naturally, the children are included in our demographic.
Since this product is free to the public the potential total numbers of viewers are in the
millions, The Word Wits should appeal to any parent who wishes to deliver an educational
message in an entertaining way and to any child who just wants to laugh and have fun.
They just have to know it is there and easily accessible.

One of the most exciting secondary markets is the Hispanic demographic - first and
second generation English learners in the U.S. and in other countries. According to
Entrepreneur magazine, Newest Trends & Hottest Markets, January 2005, one of the top
five hottest new markets for small businesses is “services/products for the Hispanic
market”.

FOCUS GROUP
The initial pilot episodes were given to twenty parents with children in our 3-8 year old
target market. Feedback from both the parents and the children was very positive. Several
parents indicated that their children asked to view the series “over and over”.
Additionally, a group of 50 parents and teachers were surveyed to identify the word
categories which they considered the most important to their child's development. On that
survey, almost without exception, the parents rated the importance for their child to “build
vocabulary”as a “5”on a scale of 1-5. Following is an excerpt from one of the parents.
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"I have to take the time to write a letter of thanks... My daughter was out sick and let’s
just say your DVD played for over 4 hours –straight. My daughter can’t get enough of it!
You have a great idea and I know it will be a hit with parents and children." - Margo
Bartels, four year-old parent, Burbank, California. To see a demonstration of The Word
Wits video format please visit www.thewordwits.com.

WHY KIDS WILL WATCH

the changing media world
live publicity and performing tours that create buzz and fans
the challenge
parents approval

Television versus the Internet –mass media is changing. Children are now using the
computer at much younger ages. Our kid friendly website will allow children to watch our
videos and play our follow-up testing games anytime and as often as they wish. For
households where the child is not allowed access to the Internet without supervision, the
parent can set up the video watching sessions on our site, and choose the word categories
they wish to have their child learn.

The Word Wits producers started in children’s edu-tainment by writing and performing
live shows for children. The use of live performances is the model that worked for the
successful Wiggles group. Exciting live concerts create zealous fans who will then tell
others. Events in large local markets such as Los Angeles, New York, and Chicago will
generate more opportunities for us for television and print media publicity. The Wiggles
have continued to tour –selling out large venues –even after their television show was
successful. Annual tours will be part of The Word Wits marketing.

Once children watch a collection of our videos, they’ll be hooked by the wacky characters,
humor, and music. After the young fans watch a certain number of episodes, they must log
onto www.thewordwits.com and play games to demonstrate that they know the definitions
of the featured words in the viewed episodes. They score points by playing the fun games
and puzzles. Then the viewers may watch the next level of videos. The aspiring young
wordsmiths move to higher “levels”and can eventually graduate to the highest status: a
“Word Wit”. For the younger children, it will take over a year to learn our 400 words.
The older kids may be able to do it in months.

Most parents will agree that an improved vocabulary is a very worthwhile goal for their
child. Additionally, we empower the parents by letting them choose the initial categories
of words that they want their children to learn. In our first focus group survey, we found
that parents indeed preferred words in certain categories such as Character, Courtesy,
Emotional Feelings, Idioms, etc. If the child and parent like the program and wish to
continue, the child will eventually learn all the words from all the categories.
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GETTING THE “WORD”OUT

The initial publicity campaign will include:
articles and advertisements in local and national parenting publications
publicity on television shows such as Oprah
internet search engine listings
live performances in major U.S. markets by the cast of The Word Wits
DVDs and song CDs sold at live tours
DVD giveaway contests
parent and educator conferences such as PTA and NAECY
awards such as Parent’s Choice Award and American Library Association Award

New hardware technologies and the Internet crave popular and appropriate content. Our
program is wholesome for kids, has no copyright issues, is a workable format for
advertisers, and is free for parents. Therefore, any other site that wishes to present our
series or create links to our website or specific episodes are welcome to. We will go with
the flow. The Word Wits is an ideal product to go “viral”.

“Veoh Networks Inc., a site backed by media mogul, Michael Eisner, wants to radically
change how people watch video online, offering software that not only finds and plays
programs from anywhere on the web, but also offers the look and feel of traditional TV.”
–Daily News, June 20, 2007.

SPONSORS
Once we have five or six strong demonstration episodes that incorporate a few of our
newest ideas (Spanish speaking puppet, illustrated backgrounds, and more catchy songs)
we will begin to look for two or three major sponsors. We can offer these advertisers a
presence to our viewers in the following ways:
three-second announcement and logo at the head and tail of each of many or all of
our short 240 episodes
banner ads on our host site
credit with a “presented by… ”in the television commercials that promote our live tour.
This is very positive positioning for the sponsor.
Info on music CD covers

We believe that our wholesome, educational product will provide ideal positioning for
companies. To help protect our image, we intend to be very selective in choosing our
sponsors.

INCOME
Since our relationship with the sponsors goes beyond banner ads, the typical 5-10 cents
per click will not apply. We will negotiate a large annual fee that is based on the numbers
of viewers, live shows, and other publicity tie-ins.
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An important source of income for The Word Wits will be merchandise available at the
website store, live tours, and eventually third party licensing. Trademarked items for sale
will include, but are not limited to:
toys based on the show’s characters such as the Puey-
the-Pig puppet
t-shirts and apparel
The Word Wits dictionary books (partnered with an
established dictionary publisher)
storybooks that feature the characters and vocabulary
words
music CDs featuring the best songs from the series
DVDs of shows featuring bonus episodes

PRODUCERS
Mark Beckwith has been a professional musician and entertainer as well as a marketing
entrepreneur since the 1970s. After his children were born in the late 1980s he focused on
writing and performing children’s music. After a rave review in the Los Angeles Times of
his children’s music album in the early 1990s, Mark was asked to write and produce songs
for a new multimedia series called Jump Start. Mark became a regular writer of songs and
stories for that series which ultimately became a smash success selling multiple millions
of copies internationally.

In 1999 Mark teamed up with comedian Obediah Thomas to write stage shows for
children. Beckwith and Thomas formed Razzle Bam Boom Productions. Together they
produced four original shows which have played live for over 600,000 children. Razzle
Bam Boom’s shows have been highly acclaimed by educators. For more information on
these stage shows visit www.razzlebamboom.com and www.showsthatteach.com.

MANAGEMENT & CREATIVE TEAM

Mark Beckwith –Executive Producer/President/Writer/Director/Voice of The Word
Wits character “Puey-the-Pig”. Mr. Beckwith has a degree in music and wrote and
produced hundreds of songs for Knowledge Adventure (Vivendi-Univeral). He is the co-
founder of Razzle Bam Boom Productions and Shows That Teach and has produced ten
children’s CDs and six stage shows for children. From 1986-1990 he was the Marketing
Director for the record company Alshire International in Burbank, California.

Obediah Thomas –Co-Producer/Writer/Director/Various Word Wits Characters.

Mr. Thomas holds a B.A. degree from the Cincinnati Conservatory of Music. He is a co-
founder of Razzle Bam Boom Productions, has co-written several stage shows for
children, and is a former stand-up comedian is Chicago and L.A.

Donna Babcock –Associate Producer/Script Editor. Ms. Babcock has recently joined
the Razzle Bam Boom Productions staff. A former entertainer and teacher herself, she is a
graduate of the Ringling Brothers and Barnum & Bailey’s Clown College. Ms. Babcock
holds a B.A. in Human Development with a specialization in Arts Education from Pacific
 8
Oaks University. Ms. Babcock worked as a trainer for Cirque du Soleil’s social outreach
program. She has studied with the Groundlings and has several television and film credits
herself.

Kim Arnold –Business Administrator. Ms. Arnold holds a B.S. in Business

Management from Pepperdine University. Formally Ms. Arnold was Business Systems
Consultant and Analyst for Technicolor in Burbank and Sony Entertainment in Culver
City. Prior to that she was the Manager of information systems at Universal Studios,
Hollywood. Ms. Arnold has been the Business Manager for Razzle Bam Boom
Productions since September of 2006.

Jessica Pettit, M.S. –Language Consultant. Ms. Pettit has a B.S. and a Master's degree
in Speech-Language Pathology from Miami University. She is also a mom and Speech-
Language Pathologist.

Robert Stone, M.S., M.F.C. –Consultant. Mr. Stone has a Masters degree in
Psychology and is a practicing therapist in California.

Bonnie Bright –Art Director. Ms. Bright studied art at UC Santa Barbara’s Art College.
Some of her credits include many children’s books and the Jump-Start Series. Bonnie was
the Art Director for Knowledge Adventure and now runs her own business Bright
Illustration. (www.brightillustration.net).

Joni Bovill –Portrays the character “Miss Joni”. Ms. Bovill is an experienced
television, stage actress and recording artist. She has appeared in numerous television
shows, commercials, and stage productions. She holds a B.A. from University of Southern
Mississippi and a M.S. from Golden Gate University in San Francisco.

Michael “Tuba”Heatherton –Various Word Wits Characters. Mr. Heatherton is a

veteran actor and variety artist who previously toured as a clown with the Ringling
Brothers and Barnum & Bailey Circus and has made appearances on the Tonight Show.

PRODUCTION COSTS
Producers Mark Beckwith and Obediah Thomas have personally spent approximately
$4,000 in seed funds to produce the first seven pilot episodes, plus an additional $2,000 on
promotion. With proper production planning, we will be able to produce future short
format episodes for approximately $600 each.

During the first year we will produce120 episodes which will feature over 200 new
vocabulary words to be learned by our viewers. We believe that 120 episodes is the
minimum needed to launch the product, create sales, make loyal fans (customers), and
generate income from advertisers and merchandise sales to use to produce more episodes.
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START UP COSTS
Research and development seed costs: DONE

Initial 3 month costs to secure advertisers and launch:

Legal fees: $11,000
Initial seven episode production budget: $ 5,000
Re-edit the best three demo episodes $ 500
Demo DVDs: $ 1,000
Technical Web/Video download consultant: $ 1,000
Office costs: $ 1,500

Month 4 –18 costs for expansion:

110 additional episode production budget: $66,000
Website hosting, management, and optimization: $15,000
Advertising and publicity: $22,000
Live show promotional tour: $17,000
DVD & music CDs for giveaway, tour sales, contests: $ 6,000
Website follow-up game programming: $12,000
Marketing/Advertising Sales Manager: $72,000
Office costs: $10,000

A total budget of $240,000 is required to launch this product to the point where income
can be reinvested to generate more product and other opportunities and run the company.

FIRST 18 MONTH TIMELINE

Write seven new episodes by August 1, 07.
Tape and edit the seven new episodes by September 1, 07.
Re-edit three of the current six demo episodes by September 1, 07.
Use the five best episodes to attract qualified sponsors by October 1, 07.
Write and produce a 60-minute live stage show by October 1, 07.
Begin writing the next 110 episodes by October 1, 07.
Perform and video tape the live show by November 1, 07.
Begin website search engine optimization by November 1, 07.
Sign two to three major advertising sponsors by December 1, 07.
Advertisers pay advance deposit by December 1, 07.
Launch website January 3, 08.
Begin publicity campaign January 3, 08.
Begin shooting the 105 episodes January 3, 08.
All new 110 episodes in the can or online by summer of 2008.
All the final 120 episodes written by summer of 2008.
Start live tour summer of 2008.
Shoot the final 120 episodes by autumn 2008.
Release the final episodes online February 2009.
First child becomes the first “Word Wit”(with lots of publicity) by summer of 2009.
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VIEWERSHIP GOALS
10,000 regular weekly viewers by June, 2008.
60,000 regular weekly viewers by September, 2008.
150,000 regular weekly viewers by the end of 2008.
1,000,000 regular weekly viewers by the end of 2009.
5,000,000 regular weekly viewers by the end of 2010.

PROFITS
The producers are committed to achieving our envisioned educational and entertainment
goals. We are confident that we will reach our financial goals as well. It is difficult to be
precise about what advertising fees we will negotiate with our major sponsors because we
are capable of giving much greater exposure than just banner ads. The above “regular
weekly viewer”estimate represents numbers of people watching and participating. Because
children tend to watch something they like repeatedly, the actual numbers of impressions
will be many times these viewership numbers.

By autumn 2008 we estimate conservatively that we will have gross income of at least
$85,000 to reinvest in producing a final 120 episodes, maintaining the website, and
continuing our publicity campaign. This will bring the total number of episodes available for
viewers and fans to 240. That represents over 400 words that children will be able to learn in
a fun and interactive way as a result of our product.

“The Wiggles, [an] Australian kids act, is one of the most profitable bands in the world,
earning an estimated $45 million in 2006”–Dec. 27, 2006 New York Post. With the live
stage tours, publicity, parent and child “word of mouth”, and search engine connections, we
estimate that The Word Wits will generate an advertising yearly income of at least $500,000
by the end of 2010 and additional annual merchandising revenue of $300,000. Within five
years from inception, we expect The Word Wits to generate a total annual income that
exceeds $3,000,000.

INVESTMENT RETURNS
This project has been conceived, developed and seed financed by Mark Beckwith and
Obediah Thomas. Currently we are seeking a total cash investment of $240,000 in the
project in exchange for a 40% equity position. We will consider either one large investment
or several smaller investments of $10,000 or more. Since early investors naturally take a
greater risk and wait a few months longer for returns, the 40% equity position will be split
as follows: The first $40,000 investment will receive 7% equity and the remaining $200,000
investment will receive 33% equity in The Word Wits. The remaining 60% equity will be
retained by the producers.

We estimate that the break-even point for the total capital investment of $240,000 is July
2009 –two years from startup funding. In five years from start-up, we expect the company
to be worth 10-15 times the original investment. We are committed to success.

For further information, please contact Mark Beckwith at (818) 348-7576 or

mark@thewordwits.com.