kazooz.com kazoozAlthough Kazooz is a startup, the founders have not only started businesses of their own, they have also spent the last 25 years helping others to do the same, including

Storysmithing 2009

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kazooz.com THE BUSINESS PLAN

LOGIC

kazooz.com THE BUSINESS PLAN

EXECUTIVE SUMMARY

Kazooz is a social-commerce website dedicated to serving theneeds of parents and grandparents of newborns to 9-year olds, aswell as those of expectant parents. The concept is founded on thenotion that "it takes a village to raise a child", an expression basedon an ancient African proverb that resurfaced in 1996 as a best-selling book by then First Lady of the United States, HillaryRodham-Clinton. Entitled It Takes a Village: And Other LessonsChildren Teach Us, she presented her vision for the children ofAmerica.

It takes a village to raise a child is a simple way ofexplaining that the parents of young children - especiallyfirst-time parents - rely heavily on dialogue with otherslike them for parenting information and guidance. Theyalso look to an extended community that includes grand-parents, friends of the family, doctors, teachers, coun-selors and countless others. Some of that information isgathered in day-to-day encounters, some of it throughcourses at neighborhood centers, and some of it throughtraditional media, meaning magazines, newspapers, tele-vision shows, instructional videos, etcetera. But, in thepast decade, 85 percent of all North American parents,ages 24 to 45, have been going to the Internet, not onlyfor information but also to talk with other parents on chatlines, blogs and on-line forums. This interaction amongparents - particularly mothers - can be frequent andintense, which has created a unique social-commerceopportunity for Kazooz. 2

In addition to facilitating an exchange of information,Kazooz is also an entertaining virtual village whose MainStreet is lined with shops where parents can find chil-dren's clothing, furniture, toys, games, books - every-thing it takes to raise a child. Parents can buy, sell andexchange "lovingly used" items among themselves aswell as sourcing new products directly from Kazooz-endorsed manufacturers known for the quality and valuethey offer. Main Street is also a favorite destination forgrandparents, family members and friends seeking theunique and the useful as special gifts for parents andsmall children alike. Main Street is the e-retail area ofthe website.

And, finally, Kazooz is also a safe place for young chil-dren to play. In a highly secured area of the website,known to website builders as a "walled garden", kidshave access to the newest of children's games, showsand music, as well as creative content they have pro-duced themselves and want to share with others theirown age. Yes, sub nine-year olds do produce their ownscrapbooks and videos.

1


We are still kids at heart, and our children have becomeare our HEART.

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MANAGEMENT

PAUL SMITH / STORYTELLER / SAGE / STRATEGIC And, finally, Kazooz is also a safe place for young children to play. In a highly secured areabuilders as a "walled garden", kids

EDWIN VAN STREIN / ORIGINATOR And, finally, Kazooz is also a safe place for young children to play. In a highly secured areabuilders as a "walled garden", kids

CHRISTOPHER ROSS / MARKETING And, finally, Kazooz is also a safe place for young children to play. In a highly secured areabuilders as a "walled garden", kids

DONNA ESPLEN / THINKER / DESIGNER And, finally, Kazooz is also a safe place for young children to play. In a highly secured areabuilders as a "walled garden", kids

PASCAL ROTHMAN/ / NOT SURE And, finally, Kazooz is also a safe place for young children to play. In a highly secured areabuilders as a "walled garden", kids

THEMAGIC

and THELOGIC

SHEILA WADE / BUSINESS & LIFE PRTNER And, finally, Kazooz is also a safe place for young children to play. In a highly secured areabuilders as a "walled garden", kids

THE BEGINNINGS OF THE CONCEPT

The Kazooz concept originated on Bowen Island,a community of 3,000 people sharing a paradise-like 20 square mile island in the PacificNorthwest, a 20-minute ferry ride from HorseshoeBay, a West Vancouver neighborhood. BowenIsland, which is about the same size as NYC'sManhattan Island, is a closely-knit community ofcelebrities, artists, home-office professionals,and retirees and young families, all of whomenjoy the island's laid-back lifestyle, immensenatural beauty and its peacefulness. Severaltimes a year, parents gather at the beach in pick-up trucks and SUV's to buy, sell and exchangethings their children need. The event is part fleamarket and part garage sale - but, like a tailgateparty, it is also a much-anticipated social event, apicnic on a grand scale, where parents and theirchildren renew friendships and share their par-enting experiences. One of those parents, EdwinVan Strien, who enjoys the buzz so much andknows a Big Idea when he sees one approachedPaul Smith, Vancouver-based writer of brand sto-ries, with the idea of taking the concept on-line. Itwas apparent to both Edwin and Paul that BowenIsland, with its tiny, picture-postcard village ofSnug Cove, was a microcosm of the on-line com-munity they envisioned

Edwin and his partner Sheila Wade are parents offour children, all under the age of 8. Paul and hiswife Cheryl are grandparents to five, all 6 andyounger.

The walled garden (in our case it's known as The Zoo)is also a place where, with their parents and through themagic of 3-D animation, together can learn Life'sImportant Little Lessons - for example Regard ForSiblings, Love Of Pets, and Respect For The RealValue Of Money.

Kazooz is a truly magical place for both parents andchildren - one unlike any website the world has everseen. This is attributable to the storytelling, design, pro-duction and programming skills of the team that hasbeen assembled. In many ways, Kazooz is the 21stcentury equivalent to the first Disneyland, which openedon July 17th, 1955. Until then, there had been onlyamusement parks comprised of rides and games.Disneyland was the first Theme Park and, to this day,Disney parks remain the most successful of its genre byfar. In much the same way, Kazooz will become a newgeneration of websites - a kind of Kazoozland - wherekids and their parents can learn and have fun together.Like Disneyland, Kazooz will also be full of "weenies" -the promising, the exciting, the unexpected - thatencourage visitors "to come this way", to explore everycorner of the site. Walt Disney described Disneyland as"constantly becoming," a philosophy we intend to applyto Kazooz - renewing and refreshing content to keepvisitors coming back time and time again.

Kazooz. A club, an on-line community, a trusted advisor,a virtual village of intriguing shops, an educator andentertainer, a parenting channel, a philanthropic organi-zation, and a place that recognizes, as Dr. Seuss sofamously said, "a person is a person no matter howsmall."

Kazooz. An entire on-line community dedicated to thosewho care about kids.


And, finally, Kazooz is also a safe place for young chil-dren to play. In a highly secured area of the website,known to website builders as a "walled garden", kidshave access to the newest of children's games, showsand music, as well as creative content they have pro-duced themselves and want to share with others theirown age. Yes, sub nine-year olds do produce their ownscrapbooks and videos.

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FINANCIAL POSITION

MEMBERSHIPS OF $16 PER PERSON, RENEWABLE ANNUALLY1

3.5 PERCENT COMMISSIONS FROM

ALL RETAIL TRANSACTIONS2

FEES FROM STRATEGIC ALLIANCE PARTNERS

LIKE TIM HORTONS WHO HAVE ESTABLISHED,HIGH-PROFILE PROGRAMS FOR KIDS3

Although Kazooz is a startup, the founders have not only startedbusinesses of their own, they have also spent the last 25 yearshelping others to do the same, including some of the world's bestknown companies. Several years ago, they decided to enter the e-commerce sector and explored several possibilities before focus-ing their efforts on Kazooz - a conscious choice they made for sev-eral reasons. ONE, their research indicated a vacuum exists in themarketplace and, TWO, because everyone (the founders included)has such strong emotional ties with the children in their lives. Kidsare the ideal subject matter for a successful website. LikeFacebook and MySpace, Kazooz appeals to users searching forpeople like themselves and what Kazoozers have in common isthe focus, the love of their lives - their children.

FINANCIAL PLAN

5

1.We are a committedteam of knowledgeableprofessionals with thecomplimentary skillsetsrequired to begin andmaintain a complexsocial-marketing web-site.

2.Although innovative, weare first and foremostbusiness pragmatists

3.We are highly skilledmultimedia storytellers

4.We are Internet savvy

5.We are brand experts

6.We know how to createcommunities, real andvirtual. A social-market-ing website is a tight-knit community, a clubof like-minded whoshare an interest orinterests

7.We have a uniquemembership model thatwill allow us to estab-lish a high level of trustbetween Kazooz andits members. We willuse that membershipmodel to launch thebusiness and to accel-erate its rate of suc-cess

8.In this economic cli-mate, Kazooz is a verytimely concept. Peoplein all socio-economicgroups are seeking tosimplify their lives andspend more wisely.Being thrifty is in

Although Kazoozwill unquestionablybe a for-profit com-pany, a parellelingnot-for-profit sisterorganization will beconsidered as webegin to structurethe company. Thenot-for-profit couldbe the vehicle thatwould allow thefirm to administerits own philantroph-ic activities.

8

In order for Kazooz to be sustainable, it must also be profitable.Profits keep everyone happy. Profits fuel growth. Profits fund thecreation of exciting new content for the website which, in turn,attracts more members. Being profitable allows the business to"give back" by sharing a portion of those profits with deservingorganizations and individuals who, like parents, care for kids.

TARGET MARKET

7

MEMBERSHIPS OF $16 PER PERSON, RENEWABLE ANNUALLY13.5 PERCENT COMMISSIONS FROM

ALL RETAIL TRANSACTIONS2


LIKE TIM HORTONS WHO HAVE ESTABLISHED,HIGH-PROFILE PROGRAMS FOR KIDS

FEES FROM RETAILERS WHO WANT TO SAMPLE

PRODUCTS TO THIS MARKET SEGMENT - EVERY-THING FROM DIAPERS TO NEW GAMES. SOME

RETAILERS WANT TO INTRODUCE ESTABLISHED

PRODUCTS TO PARENTS; OTHERS ARE INTERESTED

IN GETTING PARENTS RESPONSE TO ITEMS THAT ARE

AT AN INTRODUCTORY STAGE

3

4

5FUNDING FROM PUBLIC AND

PRIVATE-SECTOR AGENCIES

LIKE TELEFILM CANADA,CANADA COUNCIL FOR THE

ARTS, BRAVO!FACT, BCFILM AND OTHERS TO PRO-DUCE ONGOING CONTENT

FOR THE WEBSITE

AND, PERHAPS THE SINGLE LARGEST SOURCE OF REVENUE,SHARING INFORMATION ABOUT OUR MEMBERS WITH RESEARCH

FIRMS WHO PAY FOR THAT DATA. BASED ON THEIR FINDINGS,COMPANIES LIKE JOHNSON & JOHNSON, NESTLÉ FOODS AND

FISHER-PRICE TOYS ARE ABLE TO USE THIS DATA TO DRIVE

THEIR OWN "CUSTOMER INSIGHT MARKETING" PROGRAMS. THIS

HIGHLY DISCRETE AND SAFEGUARDED FORM INFORMATION

SHARING DOES NOT BREACH THE CONFIDENTIALITY AGREEMENT

WE HAVE WITH MEMBERS. A MORE DETAILED DESCRIPTION OF

THE VALUE OF THIS FORM OF RESEARCH APPEARS ON PAGE XOF THIS DOCUMENT.

6


The decision was made to make Kazooz a club, complete withmemberss who are charged a $16 annual membership fee.Visitors will have free access to certain areas of the site includingMain Street and its shopping experience. Members will be able tomove throughout the entire site, where they receive a number oftangible benefits in return for that fee including entertaining andinformative parenting workshops hosted by celebrity experts,deep-discounts on high-quality specialty items from Kazooz retailpartners, access to family-friendly travel, admission to Kazooz(children's) Zoo, and the ability to create a FaceBook-like FamilyAlbum that they can share with other members of Kazooz.

Selling memberships in return for half the membershipfee will give organizations like the Boys & Girls Club ofCanada, local pre-teen sports leageus, children's artsprograms, children's hospitals, and childrens charities afundraising opportunity to support their activities. Key toKazooz and its business model is to grow the totalnumber of members as quickly as possible and havingchildren's organizations represent Kazooz will halp allowus to accomplish that objective. Our goal is to have onemillion members within 18 months.

Memberships not only provide Kazooz with a revenueannuity, they also establish a stronger bond betweenKazooz and parents - a commitment that encouragesthem to spend more time on the site, to view Kazooz asbeing a trusted friend, and to direct new members to thesite.

MARKETING PLAN

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FUNDING FROM PUBLIC AND




FOR THE WEBSITE





FOR THE WEBSITE

FUNDING FROM PUBLIC AND PRI-VATE-SECTOR AGENCIES LIKE

TELEFILM CANADA, CANADA

COUNCIL FOR THE ARTS,BRAVO!FACT, BC FILM AND

OTHERS TO PRODUCE ONGOING

CONTENT FOR THE WEBSITE

Social-commerce is a combination of social marketingand electronic-commerce (e-commerce) in which theactive participation of customers and their relationshipswith one another is at the forefront. In the case ofKazooz, member involvement includes recommending,rating and commenting upon products and services forchildren that are being offered on the site. ThroughKazooz, members can also serve as a formal or informaltest-panel for manufacturers and others who want toknow more about the wants and needs of the parents ofchildren in the newborn to 9-year category.

Kazooz is a club, an on-line community of like-mindedpeople who have a shared, extremely passionate interest- kids. As a club, Kazooz can also provide its memberswith collaborative purchasing power, much like a Costcoor a Mountain Equipment Co-Op - shoppers' clubs offer-ing well-known products at substantially lower prices.

FINANCIAL PROJECTIONS

9


Social-commerce is a combination of social marketingand electronic-commerce (e-commerce) in which theactive participation of customers and their relationshipswith one another is at the forefront. In the case ofKazooz, member involvement includes recommending,rating and commenting upon products and services forchildren that are being offered on the site. ThroughKazooz, members can also serve as a formal or informaltest-panel for manufacturers and others who want toknow more about the wants and needs of the parents ofchildren in the newborn to 9-year category.

Kazooz is a club, an on-line community of like-mindedpeople who have a shared, extremely passionate interest- kids. As a club, Kazooz can also provide its memberswith collaborative purchasing power, much like a Costcoor a Mountain Equipment Co-Op - shoppers' clubs offer-ing well-known products at substantially lower prices.

FINANCIAL PROJECTIONS

9

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% of % of % of Year 1 Sales Year 2 Sales Year 3 Sales

SalesPhone Case 145,500 28.3 859,702 35.4 2,571,600 43.6Camera Case 61,895 12.0 160,060 6.6 265,167 4.5Waterproof Bag 169,205 32.9 416,130 17.1 1,255,183 21.3CD Case 69,670 13.6 245,381 10.1 307,279 5.2Remote Key Entry 67,465 13.1 749,613 30.8 1,499,225 25.4Total Sales 513,736 100.0 2,430,885 100.0 5,898,453 100.0

Cost of Goods SoldPhone Case 49,203 9.6 290,273 11.9 795,375 13.5Camera Case 32,188 6.3 76,201 3.1 132,183 2.2Waterproof Bag 96,143 18.7 244,493 10.1 769,230 3.0CD Case 42,210 8.2 146,664 6.0 183,330 3.1Remote Key Entry 18,191 3.5 202,125 8.3 404,250 6.9Total Cost of Goods Sold 237,936 46.3 959,755 39.5 2,284,368 38.7

Gross Margin 275,800 53.7 1,471,130 60.5 3,614,085 61.3

Operating ExpensesResearch & Development 7,500 1.5 36,000 1.5 60,000 1.0Bank Charges 4,902 1.0 24,309 1.0 58,985 1.0Promotion 6,851 1.3 20,552 0.8 61,655 1.0Accounting & Legal 17,750 3.5 21,300 0.9 25,560 0.4Insurance 1,200 0.2 1,500 0.1 2,400 0.0Office & General 2,112 0.4 6,892 0.3 9,510 0.2Miscellaneous 1,000 0.2 2,500 0.1 5,500 0.1Rent 8,800 1.7 19,200 0.8 20,400 0.3Communications 3,208 0.6 42,000 1.7 45,000 0.8Utilities 714 0.1 2,879 0.1 6,853 0.1Wages - Management 62,500 12.2 162,000 6.7 194,400 3.3Wages - Employees 20,000 3.9 90,000 3.7 108,000 1.8Employee Benefits 8,250 1.6 25,200 1.0 30,240 0.5Travel 8,000 1.6 12,000 0.5 15,000 0.3Web Site Hosting 4,400 0.9 12,000 0.5 25,000 0.4Total Operating Expenses 157,186 30.6 478,331 19.7 668,503 11.3

Other ExpensesMarketing Expenses 127,318 24.8 385,434 15.9 804,703 13.6Depreciation 1,090 0.2 4,362 0.2 21,810 0.4Total Other Expenses 128,409 25.0 389,796 16.0 826,513 14.0

Income Before Taxes -9,795 -1.9 603,002 24.8 2,119,070 35.9Income Tax Expense (40%) 0 0.0 241,201 9.9 847,628 14.4

Net Income -9,795 -1.9 361,801 14.9 1,271,442 21.6

There's a theory, known as the Double O Syndrome, thatdomain names with two o's are more recognizable andmore easily remembered and, therefore, have a greaterprobability for success. Yahoo and Google are the twomost obvious examples but there are countless otherstoo. Among the reasons that we chose kazooz.com asour URL, are:

It also contains double z's - two of them framing the double o's. Z's areanother favorite letter of website namers

It contains the word kazoo, an easy-to-play wind instrument that has longbeen a favorite with children and one that could become synonymous withour business - something that we could gift to children to encourage aninterest in music

It surrounds the word zoo - an enchanting place for children, especially pet-ting zoos (also known as children's zoos) where youngsters have an oppor-tunity to touch and feed small, docile animals. Like the kazoo, animals canbecome part of the "visual language" of our site. We intend to have a zooon our website as a safe, secure meeting place for young children

It sounds playful - like a website for parents and children should

It crosses generations - it works for both adults and kids

It is intriguing - someplace you would want to visit

It is memorable

MARKET OVERVIEW

In a realm where theselection of a namecan make or break an e-business,kazooz.com is astandout.

a.

b.

c.

d.e.f.g.

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Look & Feel is a term used by graphic designers, website archi-tects and others in the working arts sector to describe the dis-tinctive appearance of an assignment (The Look) and the waythey want the viewer to respond at a very visceral level abouttheir client (The Feel). Look & Feel is also referred to as BrandLanguage, which is both verbal and visual, words and images.Brand Language (Look & Feel) communicate the unique person-ality of Kazooz and is an essential part of the visitor's/member'sperception of Kazooz social-marketing website.

LOYALTY MEANS REVENUE

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COMMUNITY HALL.Where guests and members buy, sell andexchange lovingly useditems. Think of E-Baywith huge personality.Sellers and traders areencourage to tell a brief,very personal story of the item or items theyhave to offer to addappeal to buyers

MAIN STREET.Where guests and members visit a small collection of retail shopsfeaturing high-value itemsfor kids. The differencebetween guests andmembers is - only members are offered the ultimate hook-up, a direct connection withthe manufacturers themselves who do on-line blitzes of theirmost appealing merchandise

THE ZOO. Filled with cute animalsplus on-line music,games, films and booksjust for children of members (although children have their ownmembership cards too).This is a highly securedarea of the site. Kidshave a chance to sharetheir creativity with otherkids and to collaborateon creative projects

NAVIGATION PAGE.A 3-D animated walkththrough of asmallvirtual villageinspired by BowenIsland's own Snug Cove. Again, it is in cartoon style

Architecture is a reference to the way navigate around the website andhow content is organized so it is easyn to find but, at the same time,motivates visitors and members to explore every nook and cranny of ourvirtual village. Content is streamlined - words are kept to a minumumand visuals are few (but very high impact) - so the site doesn't becomeoverwhelming or unwieldy. Much of the site content is provided, in vari-ous forms, by parents and children themselves. For example, videos pro-duced by youngsters and viewable only in the safety of the The Zoo. Alist of the 25 favorite things children and their parents like to do togetheris generated byboth parents and children, who also keep the list current.Kidipedias are created by the members. Kazooz is a source of indie mul-timedia content including films and games created by up-and-comingproducers - in this way, Kazooz becomes the Sundance Film Festival orCannes of children's content. All of this in the interest of keeping the con-tent fresh, original and exclusive to this site - versus recycling producedcontent that can be found elsewhere on the Internet or on cable chan-nels.

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REVENUE MEANS SUCCESS

FUNDING FROM PUBLIC

AND PRIVATE-SECTOR

AGENCIES




ARTS, BRAVO!FACT, BC






FUNDING FROM PUBLIC AND PRIVATE-SECTOR AGENCIES LIKE TELEFILM

CANADA, CANADA COUNCIL FOR THE

ARTS, BRAVO!FACT, BC





FOR THE WEBSITE

FUNDING FROM PUBLIC

AND PRIVATE-SECTOR

AGENCIES LIKE TELEFILM

CANADA, CANADA


PRIVATE-SECTOR AGEN

FUNDING FROM

PUBLIC AND PRI-VATE-SECTOR

AGENCIES LIKE

TELEFILM

CANADA, CANADA

COUNCIL FOR THE







STATISTICS

The key to launchinga web-based business is to create what busi-ness guru Malcolm Gladwell refers to as a "social epedemic." Thatmeans enthusing a relatively small group of people about yourconcept and to so engage them in your story that they adopt thestory as their own and begin telling and retelling the story to anever widening circle of friends and associates. It's also called thepebble-in-the-pond effect. Drop a pebble in a pond of water andthe splash of water that occurs creates circular ripples that qicklybegin moving out from the center in ever-widening rings.

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22

We are a committedteam of knowledge-able professionalswith the complimen-tary skillsetsrequired to beginand maintain acomplex social-mar-keting website.

Although innova-tive, we are firstand foremost busi-ness pragmatists

We are highlyskilled multimediastorytellers

We know how tocreate communi-ties, real and vir-tual. A social-marketing web-site is a tight-knitcommunity, aclub of like-mind-

We have a uniquemembershipmodel that willallow us to estab-lish a high level oftrust betweenKazooz and itsmembers. We willuse that success

In this economic cli-mate, Kazooz is avery timely concept.People in all socio-economic groupsare seeking to

We are a committedteam of knowledge-able professionalswith the complimen-tary skillsetsrequired to beginand maintain acomplex social-mar-keting website.

Although innovative,we are first and fore-most business prag-matists

We are highlyskilled multimediastorytellers

Although innovative,we are first and fore-most business prag-matists

EIGHT REASONS WE WILL BE #1

100,000 MEMBERS ARE SHAREHOLDERS TOO

One of the concepts we intend to explore is to

make our first 100,000 members shareholders in

the company. A single share certificate will

accompany their $16 membership card. As share-

holders, we believe they will become enthusiastic

spokespeople for "their company". They will also

serve as Kazooz own test panel for new products,

services and content we intend to introduce. As

part of our launch strategy, we believe the idea

will grab the attention of the media as well.

Furthermore, these 100,000 sharholders will

become advocates for the company - our best

connectors to 100,000 circles of friends - a tech-

nique that business author Malcolm Gladwell

calls "creating a social epedenmic."

The key to launchinga web-based business is to create whatbusiness guru Malcolm Gladwell refers to as a "social epedem-ic." That means enthusing a relatively small group of peopleabout your concept and to so engage them in your story thatthey adopt the story as their own and begin telling and retellingthe story to an ever widening circle of friends and associates.It's also called the pebble-in-the-pond effect. Drop a pebble in apond of water and the splash of water that occurs creates circu-lar ripples that qickly begin moving out from the center in ever-widening rings.

21

22

MEMBERSHIPS OF $16 PER PERSON, RENEWABLE ANNUALLY

3.5 PERCENT COMMISSIONS FROM

ALL RETAIL TRANSACTIONS


LIKE TIM HORTONS WHO HAVE ESTABLISHED,HIGH-PROFILE PROGRAMS FOR KIDS











FOR THE WEBSITE

AND, PERHAPS THE SINGLE LARGEST SOURCE OF REVENUE,SHARING INFORMATION ABOUT OUR MEMBERS WITH RESEARCH

FIRMS WHO PAY FOR THAT DATA. BASED ON THEIR FINDINGS,COMPANIES LIKE JOHNSON & JOHNSON, NESTLÉ FOODS AND

FISHER-PRICE TOYS ARE ABLE TO USE THIS DATA TO DRIVE

THEIR OWN "CUSTOMER INSIGHT MARKETING" PROGRAMS. THIS

HIGHLY DISCRETE AND SAFEGUARDED FORM INFORMATION

SHARING DOES NOT BREACH THE CONFIDENTIALITY AGREEMENT

WE HAVE WITH MEMBERS. A MORE DETAILED DESCRIPTION OF

THE VALUE OF THIS FORM OF RESEARCH APPEARS ON PAGE XOF THIS DOCUMENT.

We have timed thelaunch of Kazoozperfectly. The inter-net climate couldnot be better.





FOR THE WEBSITE

FEES FROM STRATEGIC

ALLIANCE PARTNERS

LIKE TIM HORTONS WHO

EASY MATH

100,000 MEMBERS ARE SHAREHOLDERS TOO

One of the concepts we intend to explore is to

make our first 100,000 members shareholders in

the company. A single share certificate will

accompany their $16 membership card. As share-

holders, we believe they will become enthusiastic

spokespeople for "their company". They will also

serve as Kazooz own test panel for new products,

services and content we intend to introduce. As

part of our launch strategy, we believe the idea

will grab the attention of the media as well.

Furthermore, these 100,000 sharholders will

become advocates for the company - our best

connectors to 100,000 circles of friends - a tech-

nique that business author Malcolm Gladwell

calls "creating a social epedenmic."The key to launchinga web-based business is to create whatbusiness guru Malcolm Gladwell refers to as a "social epedem-ic." That means enthusing a relatively small group of peopleabout your concept and to so engage them in your story thatthey adopt the story as their own and begin telling and retellingthe story to an ever widening circle of friends and associates.It's also called the pebble-in-the-pond effect. Drop a pebble in apond of water and the splash of water that occurs creates circu-lar ripples that qickly begin moving out from the center in ever-widening rings.

21

22

1+1=

times the return,two times the fun,two times the....justreally like this 2 soif we could writesome copy thatembraces it.

WHY INVEST IN KAZOOZ

Our Cornerstones are the principles Kazooz and its people internalize.They are our values. They guide all our decision-making from which peo-ple to hire to which strategic alliances to pursue. They suggest how weshould interact with one another, as a cohesive team with a single pur-pose, as well as with our members.

For a small startup like Kazooz to succeed, every member of the teammust not only be experienced, intelligent (both intellectually and emotion-ally), high energy, a self-starter and a multitasker, individuals must alsoLOVE what they do. In return, the company is committed to providing theteam with regular feedback so they can see, week-by-week and month-by-month, how they are individually and collectively contributing to thegrowing success of Kazooz. It's a Google culture versus a Microsoft one.

Collectively, the cornerstones represent our organizational culture andthey encapsulate the psychology, attitudes, experiences, beliefs and val-ues shared by the people of Kazooz. "Organizational culture" is deeperthan "corporate culture." It describes cerebral concepts - something thatan organization IS, rather than what it HAS. Kazooz is a company that isinextricably linked to children and to the people who love and care forthem.

These are the four Cornerstones that underpin Kazooz' organizational culture.

23

HOW ALL THE PIECES FIT TOGETHER

Our Cornerstones are the principles Kazooz and its people internalize.They are our values. They guide all our decision-making from which peo-ple to hire to which strategic alliances to pursue. They suggest how weshould interact with one another, as a cohesive team with a single pur-pose, as well as with our members.

For a small startup like Kazooz to succeed, every member of the teammust not only be experienced, intelligent (both intellectually and emotion-ally), high energy, a self-starter and a multitasker, individuals must alsoLOVE what they do. In return, the company is committed to providing theteam with regular feedback so they can see, week-by-week and month-by-month, how they are individually and collectively contributing to thegrowing success of Kazooz. It's a Google culture versus a Microsoft one.

We serve expectant mothers and parents andgrandparents of newborns to 9-year olds. We speaktheir language. Think their thoughts. Understandthem and empathize with them. We strive to maketheir lives, as care providers, easier. We don't wastetheir time - we provide them with genuinely usefulinformation. Nor do we waste their money - Kazoozis representative of what is being called the newAge of Frugality, spending less and spending wisely.We introduce interesting ways of helping them com-municate more

23

In a realm where theselection of a namecan make or break an e-business,kazooz.com is astandout.FUNDING FROM PUBLIC AND




FOR THE WEBSITE





FOR THE WEBSITE

FEES FROM STRATEGIC

ALLIANCE PARTNERS

LIKE TIM HORTONS WHO

25

PROJECTIONS


FUNDING FROM PUBLIC AND PRIVATE-SECTOR

AGENCIES LIKE TELEFILM CANADA, CANADA

COUNCIL FOR THE ARTS, BRAVO!FACT, BCFILM AND OTHERS TO PRODUCE ONGOING CON-TENT FOR THE WEBSITE

AND, PERHAPS THE SINGLE LARGEST SOURCE OF

REVENUE, SHARING INFORMATION ABOUT OUR MEM-BERS WITH RESEARCH FIRMS WHO PAY FOR THAT

DATA. BASED ON THEIR FINDINGS, COMPANIES LIKE

JOHNSON & JOHNSON, NESTLÉ FOODS AND

FISHER-PRICE TOYS ARE ABLE TO USE THIS DATA TO

DRIVE THEIR OWN "CUSTOMER INSIGHT MARKETING"PROGRAMS. THIS HIGHLY DISCRETE AND SAFE-GUARDED FORM INFORMATION SHARING DOES NOT

BREACH THE CONFIDENTIALITY AGREEMENT WE HAVE

WITH MEMBERS. A MORE DETAILED DESCRIPTION OF

THE VALUE OF THIS FORM OF RESEARCH APPEARS

ON PAGE X OF THIS DOCUMENT.







As noted, we admire Google for its youthful, enthusiastic, inno-vation-making culture. We have talked briefly about Etsy, a virtu-al village of artisans with studios in more than 140 countriesaround the world. Everyone is familiar with E-Bay, founded in1995, now the world's largest community for buying and sellinggoods and services and a business that established many of theground rules for on-line commerce. It made the hunt -the questfor a bargain or for something elusive - its primary appeal.Amazon, which lays claim to having the "Earth's BiggestSelection", makes everything from books to housewares to wire-less products all easily accessible to its 35+ million loyal cus-tomers. Amazon was a pioneer in using "recommendationengines" and creating a great customer experience, from check-in to checkout and the use of easy-to-open packaging.

In addition to E-Bay and Amazon, here are three other outstand-ing sites that are influencing the way kazooz.com does business- ironically two of them are Canadian.

We serve expectant mothers and parents and grandpar-ents of newborns to 9-year olds. We speak their lan-guage. Think their thoughts. Understand them andempathize with them. We strive to make their lives, ascare providers, easier. We don't waste their time - weprovide them with genuinely useful information. Nor dowe waste their money - Kazooz is representative ofwhat is being called the new Age of Frugality, spendingless and spending wisely. We introduce interestingways of helping them communicate more effectivelywith their children. We also serve as the connectorbetween them and like-minded people all around theworld. On a global scale we celebrate parenting - and,as part of our vision, we intend to become global.

empathize with them. We strive to make their lives, ascare providers, easier. We don't waste their time - weprovide them with genuinely useful information. Nor dowe waste their money - Kazooz is representative ofwhat is being called the new Age of Frugality, spendingless and spending wisely. We introduce interestingways of helping them communicate more effectivelywith their children. We also serve as the connectorbetween them and like-minded people all around theworld. On a global scale we celebrate parenting - and,as part of our vision, we intend to become global.

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As noted, we admire Google for its youthful, enthusiastic, innova-tion-making culture. We have talked briefly about Etsy, a virtual vil-lage of artisans with studios in more than 140 countries around theworld. Everyone is familiar with E-Bay, founded in 1995, now theworld's largest community for buying and selling goods and servic-es and a business that established many of the ground rules foron-line commerce. It made the hunt -the quest for a bargain or forsomething elusive - its primary appeal. Amazon, which lays claimto having the "Earth's Biggest Selection", makes everything frombooks to housewares to wireless products all easily accessible toits 35+ million loyal customers. Amazon was a pioneer in using"recommendation engines" and creating a great customer experi-ence, from check-in to checkout and the use of easy-to-open pack-aging.

In addition to E-Bay and Amazon, here are three other outstandingsites that are influencing the way kazooz.com does business -ironically two of them are Canadian.

A COMMON GOAL

Home is where the heart is, andkazooz.com a safe haven for members,their children, the teamand investors, alike.

We are a social commerce company. Social commercemeans giving back to society and to our community, aswell as realizing a profit for our shareholders. A prof-itable business model is the only sustainable businessmodel. A profitable business model allows us to contin-ue doing things right and doing the right thing.

We are not only helping to raise children, we are alsohelping to raise parents and grandparents too. TheKazooz site is primarily about parenting and about par-ents becoming more effective in that role. Secondarily, itis about the many organizations that support parents byproviding everything those parents require (cost effec-tive gear and garb, care, encouragement, knowledgeand wisdom) to do so.

At the envisioning session that formally launched thisbusiness, we heard expressions like, "we are the voiceof future generations. We inspire kids to learn ratherthan teaching them. We make growing up fun. We are aWelcome Wagon for new parents. We celebrate theuniqueness of each parent and child."

Parents come to this site for empathy, sympathy andcompany - as well as information and insight. Momscome to talk, to share and to be in the know, which ispart of every mother's nature.

Kazooz cares for those who care about kids.

IN CLOSING

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I T T A K E S A V I L L A G E

Documents

kazooz.com kazoozAlthough Kazooz is a startup, the founders have not only started businesses of their own, they have also spent the last 25 years helping others to do the same, including