PEPSI MUSIC THE NEXT ARTIST GENERATION 2010.05.12

PEPSI MUSIC THE NEXT ARTIST GENERATION

2010.05.12

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INTRODUCTION

Since its association with Akon, Hitlab.com has made significant progress towards being a leader in the artist discovery, and song distribution fields. Having the opportunity to sell their music, play on our weekly radio show, get featured on our web site, and enter our showcase, encourages artists to upload their music for it to be evaluated by our patented Dynamic Hit Scoring (DHS) technology. Through the use of artificial intelligence algorithms, the DHS technology can predict the hit rating of song and therefore classify all the songs on the web site. Additionally, artists can incite their friends to help with the promotion of their songs with our facebook game called akon’s top promoter. Also, our iPhone application allows fans to have constant access to our large database of artists.

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TEAM UPDATE

Membership Since March 2009 the Company’s membership has grown from 5000 to

76000 members and traffic has increased significantly.

Team update Recently, Steve Owens from Los Angeles has joined the team and has had

a tremendous impact on the site content and traffic.

John Alexander has equally joined the team and brings his 30 years of experience in the music industry to the company; specifically he is handling our negotiations with EMI, Universal, The Grammy, ASCAP, BMI, Footprint Worldwide and MySpace Music.

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DEMOGRAPHICS

Courtesy of alexa.com

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LAST 3 MONTHS

Using various social media promotion, the target to reach the top 25,000th position in the U.S has been achieved. We are currently ranked 88,000 in the world.

PAGE VIEWS

100,000

300,000

500,000

700,000

900,000

1,100,000

1,300,000

1,500,000

15/01/10 to15/02/10

15/02/10 to15/03/10

15/03/10 to15/04/10

15/04/10 to11/05/11

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LAST 12 MONTHS

Over the last twelve months a number of factors have contributed to the growth of our membership

Development of functionalities Showcase Radio show iPhone app

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LAST 12 MONTHS - Development of functionalities

Development of functionalities such as: Multi genre DHS song testing, blogs, ranking system, and a social network inviter

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LAST 12 MONTHS - Showcase

Showcase: flying in 6 artists (http://www.hitlab.com/stories) from different genres of music to be showcased (http://www.hitlab.com/showcase‐2009) in front of major labels. 2 artists to be signed with major labels

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LAST 12 MONTHS - Radio show

Radio show: The launch of Akon’s Hitlab radio show has allowed for major visibly through out Canada. The success of the show has sparked world wide interest for a Ryan Seacrest type distribution of the show (40 million$/yr revenue)

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LAST 12 MONTHS - iPhone app

iPhone app: Since its launch 2 weeks ago, the iPhone/iPod has been downloaded to more than 26,000 devices. Users spend on average of 43 minutes on the app. The option to download songs will be available shortly.

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RADIO SHOW

Europe:

We are negotiating with Akon and Global Radio in London in order to have Global Radio produce the show in the UK and be our syndicating partner in Europe. Global Radio would receive 20% of the syndication revenue in Europe with the target of having between 300 and 500 radio stations in that market to play the radio show

US:

Akon and I met with Lew Dickey, the owner of Cumulus Media which own 400 radio stations in the U.S., discussions are ongoing

Canada

Astral Media is our partner. “Akon’s Hitlab.com” radio show is now playing between 7 and 11p.m. in Toronto, Vancouver, Calgary, Edmonton, Saskatoon and Halifax. We have been negotiating a syndication agreement with Astral Radio for syndicating the show outside Canada with 80% of the revenues going to Hitlab and 20% to Astral

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GRAMMY

Discussions are ongoing with Peter Anton (V.P. Digital Media of The Recording Academy / Grammy) to

Create a link between the Grammy membership base and Hitlab’s membership base. Grammy members would get a discount rate to upload music and to evaluate their music on www.hitlab.com and Hitlab artists that achieve a certain benchmark score, let’s say 80% i.e. the top 20, could be exposed to Grammy producers

Hitlab Grammy in Asia: The idea would be to use Hitlab to host a Grammy associated event in Dubai which has expressed an interest in hosting such event. Think of an Indian that wins a Grammy in India that actually gets nominated for a Grammy in the US. This would accomplish for the Grammys what Slumdog Millionaire did for the Oscars.

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ADVERTISING INVENTORY

LOGO Take-overLOGO Take-over

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Home Page Take-overHome Page Take-over

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Big Box: 300x250px

Big Box: 300x250px

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Skyscraper: 160x600pxSkyscraper: 160x600px

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HITLAB playerHITLAB player

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HITLAB DHS results slidesHITLAB DHS results slides

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Pepsi School ContestPepsi School Contest

Currently around the USA including Los Angeles teachers are going on Strike because they are not paid enough and students are having to school themselves right now until June. Funding for Education is a major thing in USA. If we were to create the Hitlab Contest.. write the best Song or Poem that is about your School or School life. We then send the winner to 10 different schools to perform. The performers are paid by Pepsi a very small talent fee and hotels & transportation is taken care of. The local school can charge money for the event and 100% can go to Teachers or Music Program. Hitlab in exchange for this receive a media buy year round, pepsi hitlab sponsorships, free sample cards to give out at events.

Currently around the USA including Los Angeles teachers are going on Strike because they are not paid enough and students are having to school themselves right now until June. Funding for Education is a major thing in USA. If we were to create the Hitlab Contest.. write the best Song or Poem that is about your School or School life. We then send the winner to 10 different schools to perform. The performers are paid by Pepsi a very small talent fee and hotels & transportation is taken care of. The local school can charge money for the event and 100% can go to Teachers or Music Program. Hitlab in exchange for this receive a media buy year round, pepsi hitlab sponsorships, free sample cards to give out at events.

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Pepsi Jingle SearchPepsi Jingle Search

Where Pepsi needs a new jingle, Hitlab can offer its members and Pepsi users the

opportunity to participate in a Pepsi jingle search contest. Hitlab can use past jingle

successes and failures to predict the potential success of a new jingle. Users will

submit their songs to be analyzed against a database comprised of past Pepsi

jingles. the winner wins prizes and the jingle could be used for a Pepsi ad campaign.

Pepsi drinkers will discover a promo code under the cap or inside Pepsi cases. The

promo codes would allow drinkers to participate in a contest that can have them

meet akon, and for artists to potentially sign with his label. The promo codes will

also be used for the giveaway of different prizes such as concert tickets, song

downloads, and merchandise (Akon, Hitlab, and Pepsi).

Where Pepsi needs a new jingle, Hitlab can offer its members and Pepsi users the

opportunity to participate in a Pepsi jingle search contest. Hitlab can use past jingle

successes and failures to predict the potential success of a new jingle. Users will

submit their songs to be analyzed against a database comprised of past Pepsi

jingles. the winner wins prizes and the jingle could be used for a Pepsi ad campaign.

Pepsi drinkers will discover a promo code under the cap or inside Pepsi cases. The

promo codes would allow drinkers to participate in a contest that can have them

meet akon, and for artists to potentially sign with his label. The promo codes will

also be used for the giveaway of different prizes such as concert tickets, song

downloads, and merchandise (Akon, Hitlab, and Pepsi).

Pepsi giveawaysPepsi giveaways

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Thumbs and description text

Thumbs and description text

Home Page slideHome Page slide

Contest Package

Home Page slide: 470x290px

Thumbs: 106x106px

Contest page: width: 250px

Contest Package

Home Page slide: 470x290px

Thumbs: 106x106px

Contest page: width: 250px

Contest pageContest page

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Branding in Music Video: Superstar Featuring AKON (price: TBD)Branding in Music Video: Superstar Featuring AKON (price: TBD)

Pamela spend the summer of 2009 in the US. She worked with amounts of well-known producers such as Diane Warren (Mariah Carey, N Sync, Celine Dion, Jennifer Hudson and many others), Glen Ballard (Alanis Morissette, Celine Dion, Aretha Franklin, Michael Jackson, Barbara Streisand, No Doubt and many others…).

She also had studio recording with world acclaimed artist AKON, both recorded 2 songs to be released later this year, one in English and one in French, which make the first song ever to be recorded by AKON in French.

She also shoot a music video for her upcoming song Superstar produced by AKON and featured in a Disney Movie to be released in 2010.

Pamela performed in Los Angeles at the R&B Live Club leaving the audience stunned at the end of the show! Pamela will be for sure the next great talent to look for in 2010!

Pamela spend the summer of 2009 in the US. She worked with amounts of well-known producers such as Diane Warren (Mariah Carey, N Sync, Celine Dion, Jennifer Hudson and many others), Glen Ballard (Alanis Morissette, Celine Dion, Aretha Franklin, Michael Jackson, Barbara Streisand, No Doubt and many others…).

She also had studio recording with world acclaimed artist AKON, both recorded 2 songs to be released later this year, one in English and one in French, which make the first song ever to be recorded by AKON in French.

She also shoot a music video for her upcoming song Superstar produced by AKON and featured in a Disney Movie to be released in 2010.

Pamela performed in Los Angeles at the R&B Live Club leaving the audience stunned at the end of the show! Pamela will be for sure the next great talent to look for in 2010!

Please click here to watch the video: Please click here to watch the video:

http://static.hitlab.com/media/videos/pepsi.mov

http://static.hitlab.com/media/videos/pepsi.mov

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WEBSITE ADVERTISING RATE CARD

Standard Banner 300x250Standard Banner 300x250

Title Banner 160x600 or 200x600Title Banner 160x600 or 200x600

Impressions CPM Per-Month

20,000 $25 $500

30,000 $24 $720

40,000 $23 $920

50,000 $22 $1100

60,000 $21 $1260

70,000 $20 $1400

80,0000 $19 $1520

Impressions CPM Per-Month

20,000 $22 $440

30,000 $21 $630

40,000 $20 $800

50,000 $19 $950

60,000 $18 $1080

70,000 $17 $1190

80,000 $16 $1280

Non-contract open rate:

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Standard Banner 125 x 125 or Music Player Button (3 - Month Contract)Standard Banner 125 x 125 or Music Player Button (3 - Month Contract)

Contract open rate:

Impressions CPM Cost Per Month 3-Month

40,000 $11 $440 $1320

50,000 $10 $500 $1500

60,000 $9 $540 $1620




40,000 $10 $400 $2400

50,000 $9 $450 $2700

60,000 $8 $480 $2880


40,000 $9 $360 $4320

50,000 $8 $400 $4800

60,000 $7 $420 $5040

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Filler Banner 125x125 (3 - Month Contract)Filler Banner 125x125 (3 - Month Contract)

Contract open rate:




40,000 $10 $400 $1200

50,000 $9 $450 $1350

60,000 $8 $480 $1440


40,000 $9 $360 $2160

50,000 $8 $400 $2400

60,000 $7 $420 $2520


40,000 $8 $320 $3840

50,000 $7 $350 $4200

60,000 $6 $360 $4320

Front page site take over: $5,000 7 days unlimited hits. Front page site take over: $5,000 7 days unlimited hits.

Site take over: $20,000 4 days unlimited hits. Site take over: $20,000 4 days unlimited hits.

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SHOWCASE INVENTORY

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SHOWCASE INVENTORY

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SHOWCASE INVENTORY

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SHOWCASE INVENTORY

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SHOWCASE INVENTORY

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SHOWCASE INVENTORY

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SHOWCASE INVENTORY

Media VisibilitySponsorship Collaborator-Name and Logo of the company on all communications tools ($5000)

Peel Street Visibility-Flag type Banners (10) $5000-DJ Tower (1) $5000-Stage (1) $5000-Private Lounge (2) $5000 each

Included Advantages-Sampling (To be confirmed)-Logo and Video Messages displayed on screen

Media VisibilitySponsorship Collaborator-Name and Logo of the company on all communications tools ($5000)

Peel Street Visibility-Flag type Banners (10) $5000-DJ Tower (1) $5000-Stage (1) $5000-Private Lounge (2) $5000 each

Included Advantages-Sampling (To be confirmed)-Logo and Video Messages displayed on screen

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MOVING FORWARD - Hitlab India.com:

The Hitlab website in Hindi in final review (http://office.vxtindia.net/hitlab‐hindi/index.htm) and we intend to launch a radio show in India hosted by Aadesh within the next 45 days

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MOVING FORWARD - Hitlab China

Joint venture under negotiation with Footprint worldwide, a music and entertainment company that reaches 30+ million 18‐22 year old college students in 2000 campuses throughout China. Site in Chinese: http://www.hitlab.com/index?l=ch

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MOVING FORWARD - Hitlab TV

We are currently in discussion with Eternal Crescent Media. Who’s management team Untitled will manage the production of Akon’s Hitlab TV show. They have confirmed that William Morris Endeavors are on board as the agent, and that Left/Right is also interested to be a partner

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MOVING FORWARD - MySpace application

Subsequent to meetings with MySpace, we are currently creating an application that will give users the ability to purchase DHS credit, analyze their songs and display their scores directly on their MySpace profile. The aim is for MySpace to include the app automatically in every profile in order to create a substantial revenue share opportunity for both parties

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MOVING FORWARD - Facebook Top Promoter Application

The application is in the final stage of approval and will allow fans to promote Hitlab artists by inviting friends and friends of friends. The fan that has the most invites becomes a top promoter and gets to meet Akon on a monthly basis. Bonus points are given when artist’s tracks are actually purchased on hitlab.com.

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MOVING FORWARD - SMS Campaigns

Discussions are ongoing with Source Evolution in Montreal for promoting and selling music through SMS short codes (carrier billing). Certain songs could be targeted on certain area codes in order to optimize the sales of music.

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Thank you very much!

Documents

PEPSI MUSIC THE NEXT ARTIST GENERATION 2010.05.12