THE JAZZ NETWORK

1. Louis Armstrong THE JAZZNETWORK Benny Goodman Dizzy Gillespie One of the few TV Programs dedicatedto JAZZ Music Charlie Parker

2. Important Notice This document and the information available in this Document should be regarded strictly private and confidential, and may not be used or forwarded to any third parties in any manner without the written consent of NEUROMAMA, LTD (hereinafter the Company). This document should not be made available in jurisdictions where this would be contrary to local laws and regulations. Recipients of this document are required to inform themselves of and to comply with all applicable laws and regulations in any jurisdiction in which they receive or use this document. The sole purpose of this Document is to provide information to its recipients about the Company and to describe the nature of the Companies offer in the field of Jazz TV programming business opportunities. The information contained herein includes (or is based in part on) projections, valuations, estimates and other financial and non-financial data. This information has not been verified or substantiated by any third party sources.

3. Who we are • Product Description • Jazz Audience • Business Overview

4. Who we areAbout our Company NeuroMama, Ltd is an integrated media and technology company with a search engine, e-commerce site, social network, finance center, and licensed entertainment products among its core businesses. Our focus is on the Latin American market, the fastest growing Media & Entertainment market in the world. At this point one of the NeuroMama’s main products is a search engine that is based on technology, which completely resembles human brains and specifically it is mimicking its learning abilities. It even picks up some bad habits, like children who start to behave badly if under the influence of wrong people. For the last two weeks Project Manager of NeuroMama General Design and Tech Support team, the Russian Professors of mathematics from Russian Academy of Sciences, and Project Leaders in Russia and Latvia, has had thoroughly investigated and tested all of the elements of NeuroMama neural technology.

5. Who we areAbout our Company We have covered NeuroMama neural technology and its structure in relation to: • NeuroMama neural network architecture, and data representation. • NeuroMama learning and optimization algorithms. • NeuroMama's self-organizing skills. • NeuroMama self management skills. • Compression and decompression of patterns, and efficiency of programming code processing compression/decompression. • Design and implementation of hardware architecture for NeuroMama neural network and databases. • NeuroMama adaptive behavior. • Evolution of neural network in the context of NeuroMama model.

6. Who we areAbout our Company NeuroMama logic is made in the following way: • Instead of getting data by robots - computer programs/crawlers, which 24/7 would gather data, characterize, classify, and store this data in NeuroMama databases, occupying millions of servers, we obtain data from Internet almost after every search request, and only for requested searches. This method saves hundreds of millions of dollars in hardware costs, which will become obsolete a year from now. • Every result is stored in our DB and updates if there is same hit, so the result would be shown faster. • User can choose what kind of category to use to make priority search, like business, sports, science, etc. • If user have clicked on search result, it grows in priority and changes in order, more hits = the higher that result goes. For example: In time if result got to 1st place of results list it can be moved to lower place if users would be interested in another result more, so it`s always dynamical and results changes their orders despite on how big interest was in provided link.

7. Who we areOur most popular products • NeuroMama.com - neural network based search engine developed by mathematicians, utilizes a frequent user program to attract and retain clients. • NeuroZone - has search, auction and affiliate functionality, using X-Cart and Globalshopex. This gives NeuroZone a differentiated ability to ship goods internationally. • NeuroElectronics - introduced at the 2014 CES conference, this business unit sells white-labeled smart phones, tablets, and laptops called NeuroPhone, NeuroPad and NeuroBook, respectively. All electronics are manufactured by DAOYI INTERNATIONAL LIMITED in China.

8. Who we areOur most popular products • ArtTvZone - Music and Art Network. This is a 24-hour TV network with focus on Jazz, Classical and Symphonic Music, Ballet, Classical Art, Sculpture, Classic Architectural Ornamentation, Travel, Nature, Flora and Fauna. • NeuroTvZone - High Tech Network. This is a 24-hour TV network focused on providing information on Internet companies, technological advancements. • CombatTvZone - The Fighting Network. This is a 24-hour TV network focused on martial arts and boxing events, news, interviews, and broadcasting of prerecorded and live championship fights. • KidsTvZone - The Children Network. This is a 24-hour TV Network focused on broadcasting cartoons developed by major world studios, educational and entertainment content for children, as well as TV Programs about Travel, Nature, Flora and Fauna.

9. Who we are • Product Description • Jazz Audience • Business Overview

10. Product DescriptionEntertainment Assets Our library of entertainment assets includes a few never released movies with actors like Vanessa Williams and 65 THE JAZZ NETWORK television shows (These shows were live on PBS from 1982 to 1987), as well as we hold the rights for filming and broadcasting totally new shows dedicated to JAZZ Music. Our distribution agreement includes 50,000,000 homes (140,000,000potential viewers) subscribing to Direct TV and Dish Network, as well as iTunes and local channels in all major US cities. Newly taped shows will be also broadcasted, however these will be mixed with old shows. The first new Jazz Network episode will be shot in September, 2014 in Robby Krieger studio. Jazz Network is the only TV series with a distribution contract you can find in the U.S.A., therefore there is no competition. 50 000 000 140 000 000

11. Product DescriptionPilot Shows Our rights to Broadcast new Series of our Jazz TV Network series we perceive as our biggest Value, which will grant us a great profit not only today, but also in a future perspective. Our PILOT SHOWS • 4 episodes of "Rock and Roll Road Stories" featuring hosts: José Feliciano virtuoso guitarist and composer known for many international hits including his rendition of The Doors' "Light My Fire" and the best-selling Christmas single "FelizNavidad". Frankie Avalon an American actor, singer, playwright, and former teen idol. Paul Bernard Rodgers an English rock singer-songwriter, best known for his success in the 1970s as a member of Free and Bad Company. He has recently toured and recorded with another 1970s band, Queen. • 1 episode of Movie Week, a promo for a weekly show. This would be a great tool for promoting distribution of Global entertainment assets. • 90 minutes of Cabaret type variety show "Fantazmus" with IlyaReznik in the leading role, and 28 Olympic and World Champions rhythmic gymnasts performing. Choreographed by Olga Morozova, music written by RaimondsPauls. Ilia Reznik is the most famous songwriter in former USSR, and RaimondsPauls is the most famous composer in former USSR. Olga Morozova is one of the best coaches for Rhythmic Gymnastics in USSR.

12. Who we are • Product Description • Jazz Audience • Business Overview

13. Jazz AudienceJAZZ today Despite the fact that there is some information publicly available stating that Jazz is loosing its “fight” in the Market of Music, which most likely is said by Jazz non-lovers, there are many researches available, which actually are showing the opposite – JAZZ IS ALIVE and it always will be. YES, it is slowly changing, adapting, sometimes by merging together with other music genres – in other words it is evolving, YES, the audience also is slightly different from one that was in 1960s and 1970s, but it still proves a long known truth – “there is always a customer for every product, the only question is – how to approach it”! 1A good example of mentioned above is one records company in London, Gearbox Records, a small indie label specializing in high-quality vinyl pressings of both old and new jazz recordings. Label boss Darrel Sheinman likens what they do to an artisan bakery. “Make a record well and it sounds fabulous”, he says. “You don’t have to listen to things on your phone or on a CD cum beermat. With an LP you can merge yourself into it, form a relationship over the 15 or 20 minutes of each side.” Increasingly, their products are selling to a new, younger jazz audience who get into the music because of the beauty of the sound, and the fetishistic quality of the packaging. Source: 1. The Independent

14. Jazz AudienceJAZZ Survey 1Speaking about the previously mentioned Survey – data collection efforts yielded a large pool of approximately 1,900 respondents. After applying filters to weed out those who are uninterested in music (on the low end of the involvement spectrum) or who are already attending jazz with a relatively high frequency (on the high end), a pool of approximately 1,100 “qualified prospects” was left, (about 62% of the sample). All subsequent analysis, including segmentation, was conducted on these “qualified prospects.” A cluster analysis was performed on a sub-set of attitudinal variables relating to experience with music, knowledge and interest in jazz, purchase decision factors, live arts attendance, jazz listening patterns and consumption. The clustering procedure groups prospects into discrete segments that are as different as possible across segments, and as similar as possible within each segment. According to the survey results JAZZ Music Listeners can be divided in to four groups according to the Four – Segment Prospect Model: Bluegrass 'n’ Barefoot, Music Buffs, Social Rockers and Arts Omnivores. Source: 1. WolfBrown

15. Jazz AudienceJazz Lovers Profile • The four segment solution was chosen as the most actionable, revealing the diversity of attitudes towards jazz in the sample population, as well as allowing for two viable and promising segments to target for audience development. • The segments are ordered by knowledge and connection to jazz, from Music Buffs (most knowledgeable) to Bluegrass ‘n’ Barefoot (least knowledgeable). • This model is based on a sample of Columbus area adults and should not be considered applicable to other geographies. While some of the segments may be similar in other areas, the proportionality will almost certainly vary. • Segment names are necessarily ambiguous and were designed to capture the essence of the segment.

16. Jazz AudienceJazz Lovers Profile Music Buffs (15%) Tyler is a Music Buff. He plays in a band, often fronting as the lead singer, and has a regular monthly gig at the a local coffee house. A little more experienced and “settled” now that he’s reached his thirties, he often gathers his friends together for a night out to see the new and cutting edge artists and bands. His knowledge and interest in learning more about jazz is high, but he doesn’t like to define his musical tastes by any one genre. Tyler has been known for his provocative and thoughtful posts on local blogs and forums or his own Facebook page, and frequently surfs the Internet for cuts and videos of new music to continue his learning and development as a musician. Key Characteristics of the Music Buff: • Most likely of all segments to be male (52%): • Second youngest segment with 29% under 34 years old, and 47% under 45 • Second most likely to be single, with 35% not married or partnered • Most likely to be currently involved in music activities, playing, singing, performing and composing • Most knowledgeable and interested of all segments; their loyalty is to the art form and the artist • Most likely to make decisions based on the artist, and prefer clubs and lounges above other types of venues • Most “wired” of all segments with top activities including ‘watching videos online,’ ‘contributing to online blogs or forums,’ and ‘using social networking sites’

17. Jazz AudienceJazz Lovers Profile Social Rockers (35%) Deena loves music, especially rock ‘n’ roll, hip hop and rap, and thus her pathway into jazz originates with the popular end of the music spectrum. She is a regular at clubs and music festivals, and often decides to go simply because someone asked, whether a friend or through a shared Facebook announcement. Relatively new to jazz, she is interested in learning more since discovering that some of her favorite jam bands have jazz backgrounds. She’d like to actually learn how to play, and would do more jazz activities if she could figure out a way to fit it into her schedule, or if tickets were less expensive. Key Characteristics of Social Rockers: • Most likely to be female (70%) • Youngest of all segments with 34% under 35, and 57% under 45 • Second most engaged segment in music activities overall, behind Music Buffs, with focus on ‘online’ or computer-based activities (e.g., ‘DJ’ing or creating playlists or mixes’) • Most price sensitive of all segments • Most likely to learn about music from movie or TV soundtracks • Most likely to be ‘responders’ (‘more likely to go if someone else invites me’), and thus often require a social stimulus • Opportunities to engage this segment will be through social opportunities and connections to rock and hip hop music, such as jam bands like Soulive, and online-based activities (e.g., sharing playlists)

18. Jazz AudienceJazz Lovers Profile Arts Omnivores (21%) Susan and Dan are Arts Omnivores. They just spent the weekend taking in the recent exhibition opening at The Wexner Art Museum and a performance at CATCO. Next weekend they plan on attending the Columbus Symphony for a matinee. Jazz is selectively part of their arts “diet,” but not currently as much of a priority as are other arts activities. Currently, their music preferences lean towards classical, folk and world music, followed by jazz. They would probably go to concerts that feature crossover jazz artists like Hugh Masakela. Given their strong connection to music and the arts, they take an intellectual interest in the art form, and would be interested in attending a music appreciation class. Key Characteristics of Arts Omnivores: • Oldest segment with 66% over 55 years old, with 38% retired • Most highly educated segment with 56% having Master’s or above • Most likely to frequently visit art museums and galleries, stage plays and Broadway musicals • Second most interested in music activities in general, behind Music Buffs • Low proportion of jazz in music collection or new music purchases, and general jazz listening low in comparison to Music Buffs and Social Rockers • Satisfied with amount of jazz activities; however, 10% are interested in doing more • Value a seeking out and learning about different world cultures, as well as ‘being involved in social, political and environmental causes’ • Opportunity for engaging this segment lies in making connections to other art and music forms

19. Jazz AudienceJazz Lovers Profile Bluegrass ‘n’ Barefoot (29%) Bluegrass ‘n’ Barefoot, Darryl and Laura grew up listening to country and bluegrass. They’ve gone to a few jazz concerts, but mostly because someone else invited them. Generally, they have little interest in learning more about jazz and are satisfied with the amount of jazz activities they do, as infrequently as they may be. They often make decisions based on cost, given their family obligations. Key Characteristics of Bluegrass ‘n’ Barefoot : • Third youngest segment with 22% under 34 years old and 46% under 45 • Although by small margins, they are most likely to have children under 18 years old (1.6 children) • Relatively low level of current involvement in music, although they are actively downloading • Lowest prospect score and involvement in music activities • Second most price sensitive of all segments • Lowest knowledge level and lowest interest in learning more about jazz • Most likely to be satisfied with the amount of jazz activities they are currently doing • Most likely to value ‘having a spiritual life’ • Opportunity for engagement will mostly be reflected in specific programming that reflects music interests: country and rock

20. Jazz AudienceDemographics by Segment

21. Jazz AudienceDemographics by Segment

22. Jazz AudienceDemographics by Segment • The table at left reports demographic characteristics by segment, and by the two main samples (ticket buyers vs. prospects). • Overall, in comparison to the ticket buyer sample (gleaned from 19 different jazz organizations nationwide), the prospect sample is younger, more likely to be women (64% vs. 46% of ticket buyers), single, and to have children. • How can JAG engage such a different population of music lovers? • Although demographic variables were not allowed into the cluster analysis, and therefore did not have any direct influence on the segment outcomes, it is interesting to note the distinct demographic breakdowns between segments: • About half of all Music Buffs are men • Three out of the four segments skew young, with about one-third of Social Rockers under 34 years old, and 29% of Music Buffs and 22% of Bluegrass ‘n’ Barefoot also under 34 • Both Music Buffs and Social Rockers are most likely to be single (35% and 39%, respectively)

23. Jazz AudienceMusic Preferences by Segment Symphonic music (classical) Jazz or blues Rock or R&B American folk music World music Gospel music Country music Hip Hop or Rap

24. Jazz AudienceMusic Preferences, by Segment • Respondents were asked to rate their interest in eight different music genres. The chart at left illustrates average interest ratings by segment, ordered by the scores for Music Buffs. • Results are intuitive. Arts Omnivores reported the highest interest in ‘Symphonic Music,’ suggesting one way that they can be accessed – through jazz/classical crossover events. • Social Rockers, true to their name, reported the highest interest in ‘Rock or R&B.’ • Note that Music Buffs and Social Rockers reported equal preferences for ‘Jazz or Blues.’

25. Jazz AudienceMusic Preferences, by Age Cohort Jazz or blues Symphonic music (classical) American folk music Hip Hop or Rap Country music Gospel music Rock or R&B World music

26. Jazz AudienceMusic Preferences, by Age Cohort • Music preferences are analyzed here by age cohort to illustrate certain patterns. • Note how jazz is the great bridge between generations, with nearly equal preference scores reported across the age cohorts. • Other results are intuitive: 1) low interest in ‘Rock or R&B’ and higher interest in classical music amongst older respondents; 2) higher interest in ‘Hip Hop or Rap’ amongst younger respondents. • It is interesting to note that ‘Symphonic music’ rates slightly higher than ‘Hip Hop or Rap’ amongst the 18-34 cohort.

27. Jazz AudienceVenue Preference, by Segment "How much would you like to see jazz in..." • Respondents were asked about how much they would like to see live jazz at six different types of venues. The chart at left shows results by segment, along with average age of each segment (grey dots and line). • Overall, informal venues are more attractive to prospects across all segments, with clubs and lounges and parks or outdoor pavilions the top two preferred venues for jazz. • Interestingly, Music Buffs are most likely to prefer formal concert halls, followed by Arts Omnivores. • Social Omnivores, the youngest segment, are most interested of all segments in grungy dive bars. • Given that the ticket buyer and prospect survey results strongly suggest audiences’ preferences for informal venues, how can jazz organizations diversify their venues to go beyond the formal? Are there ways of changing the existing space to create smaller and more informal spaces within? Average Age

28. Jazz AudienceInvolvement in Music

29. Jazz AudienceInvolvement in Music • Respondents were asked how often they listen to jazz via different media, as well as through live performance. The answer options were: never, seldom, monthly, weekly, and daily. The chart at left illustrates the aggregate percentages of respondents, by segment, who reported “daily” or “weekly” frequency for each mode of consumption. • The youngest segments, Music Buffs and Social Rockers, are the most diverse in their use of different media for jazz listening. They are most likely to listen to jazz on an ‘iPod or other similar device,’ followed by ‘CDs’ or other types of recordings, and ‘on the radio.’ • The radio is the most prevalent mode of listening for Arts Omnivores. • Note the low levels of consumption for Bluegrass ‘n’ Barefoot across all media.

30. Jazz AudienceMusic today and tomorrow

31. Jazz AudienceMusic today and tomorrow • Another indicator of an individual’s relationship with the art form is ownership of jazz recordings. Respondents were asked to estimate the proportion of jazz recordings in relation to their total music collection (see left), and were also asked the proportion of new music acquisitions accounted for by jazz recordings (see below). • Overall, the prevalence of jazz as part of the collection or of new music purchase is significantly low for all segments, with only 11% of Music Buffs’ collection consisting of jazz. • Is this an opportunity for jazz organizations? How might an organization go about assisting prospects with strengthening their music collection?

32. Jazz AudienceInterest in future Jazz activities

33. Jazz AudienceInterest in future Jazz activities • In order to gain a sense of aspirational involvement in jazz, respondents were asked about their interest in doing more jazz activities than they currently do. They were allowed to choose which statement (shown at left), best described their future intentions regarding jazz activities. • Over half of Social Rockers are ‘”wish to do more than now, but probably won’t be able to”. Although not clear, this may be due to price sensitivity and time barriers (see page 27 regarding purchase decision factors). • Music Buffs are most likely to “intend to do more in the coming year” (27%), followed by Social Rockers (19%). • Six in ten Arts Omnivores and eight in ten Bluegrass ‘n’ Barefoot prospects report being satisfied with the level of activity they currently do.

34. Jazz AudienceInterest in future Jazz activities

35. Jazz AudienceInterest in future Jazz activities • Results by age reveal an intuitive pattern: younger respondents are most likely to do more in the coming year, with 27% under 45 reporting they intend to do so. • About four in ten 18 to 34 year old respondents wish to do more, but probably won’t be able to, probably reflective of high price sensitivity. • Low cost programs, like SFJAZZ’s Hotplate series ($5 admission) are a good example of how to appeal to a younger audience whose limited income prevents them from attending many professional jazz presentations. • Older respondents are much more likely to be satisfied with their level of activity

36. Jazz AudienceConclusion of the Survey Overall the segmentation analysis revealed a diversity of interest and experience with music in general, and jazz in particular. At least three musical pathways into jazz were discovered: • through rock and popular music; • through classical music, and • through country/folk/bluegrass music. Although each of the four prospect segments may be considered a ‘viable’ population for audience development to some, degree (they all expressed some level of interest in music, and wouldn’t refuse a free ticket to a jazz concert), we feel it is most useful to view the prospect segments through the lens of what we call the “winnable middle ground.” This framework allows us to classify prospects into three overarching types: • prospects who are already “won” (i.e., already engaged in jazz and easily drawn to jazz activities with little effort); • prospects in the “winnable middle ground” (i.e., those with a high interest in music and an interest in learning more about jazz, and who are likely to be attracted to jazz events through other pathways); and; • prospects who are “lost” (i.e., those who have little interest in jazz and are unlikely to increase frequency of attendance or engagement in jazz activities).

37. Jazz AudienceConclusion of the Survey Whereas Music Buffs provide an obvious opportunity for audience development, they are already “won,” and therefore will not require much effort to attract. They are artist-driven and will respond to the artists they want to see. As with the Knowledgeable Musicians segment of ticket buyers, Music Buffs will also be attracted to participatory activities that allow them to express their musical talents. On the other side of the spectrum, Bluegrass ‘n’ Barefoot prospects are most likely “lost” and unlikely to increase attendance or engagement in jazz. It would not be prudent to focus attention on either of these segments given the limited resources of most jazz presenters. However, the two middle segments, Social Rockers and Arts Omnivores, are hold good potential as new markets for Jazz Arts Group. In other words, these two segments represent the “winnable middle ground,” but are extremely different with respect to desired outcomes and points of access: • Social Rockers, as their name suggests, are socially motivated and likely to attend events to which they are invited specifically. They are more likely to respond to informal settings where they can dance and socialize. They are also highly engaged in online social networking. Thus, “bring a friend,” and happy hour type enhancement activities may yield success with this segment. Pop/rock/jazz crossover artists will be most appealing.

38. Jazz AudienceConclusion of the Survey • Arts Omnivores are interested in music, including classical music and musical theatre. They can be accessed through artists and venues that bridge other art forms with jazz. For example, late nights at the museums with jazz performances, or coordinating programming around Broadway shows like Jelly’s Last Jam, or cabaret events, etc. Figure 1. Current jazz attender perceptions of jazz Figure 2. Live music attenders (who do not currently attend jazz) perceptions of jazz music

39. Who we are • Product Description • Jazz Audience • Business Overview

40. BusinessOverviewTheory It is not a secret to anybody that in a TV business the biggest part of the income is generated by advertisements. The most important question is the availability of ads time during TV Program, where in case of JAZZ NETWORK it is going to be a 30 minute TV program with 22 minutes of programming and 8 minutes of commercials, consisting of 20 - 24 seconds, 16 - 30 seconds, and 15 - 32 seconds commercial spots. Knowing that Direct TV and Dish Network is in 50,000,000 homes in US = Based on 2.8 person living in each home it can be easily calculated that in total 140,000,000 people will have an opportunity to watch each episode – 3 times per week, and this is only in US. By simple calculation of homes and viewers in US we do estimation of the potential niche size and it gives to us rough understanding of the niche. We do not say that EVERY viewers will see THE JAZZ NETWORK TV program, and will be a fan of it, we say that potentially our audience has this size, and advertisement cost can be estimated and based on this potential views and conversions. Besides, interest about Jazz differs by country, so e.g. if we look TicketMaster(http://www.ticketmaster.com) Live! Stats, you can see that all Jazz is presented by 5% of All music in US with 324 Orchestras and musicians. In the same time in Canada these are 7,4% and in Mexico even 9,5%.

41. BusinessOverviewTheory Now, we have to ask how responsive Jazz audience in compare to others. To know that we can watch Top 5 reviews counted on TicketMaster: • 732,432 Rock and Pop • 228,518 Country and Folk • 203,469 Alternative Rock • 106,933 R&B/Urban Soul • 42,761 Jazz and Blues (5.8% of Top #1 commenting group) ~ Remarkable! All of above comments and responses, ratings have been generated by TicketMaster to date in USA only.)

42. BusinessOverviewPractice Based on the information given by FitSmallBusiness, price for ONE commercial in average is around 0,07 cents per viewer. If we take in to account previously given numbers of potential viewers (140 000 000) and interest about Jazz – 5% to 7% of population likes jazz enough to buy tickets for jazz concerts, which are 7 000 000 to 10 000 000 viewers in US only will see Jazz Network TV once per week. If we asume, that one ad is 1 min long, it turns out to be 24 ads per week (3 shows a week) Respectively, we can easily calculate the following:

43. BusinessOverviewPractice If we look on the numbers, some might say that previous calculation is very optimistic, so that is why we offer to look on this example more practically by being more realistic and lower sale price of one commercial from 0,07 cents per viewer to 0,02 cents, and using 1% (1 400 000 viewers) instead of 5% (according to TicketMaster stats). In this case potential revenue calculation will be the following: