ILLUSTRATIVE INVESTMENT DISCUSSION — NOT A FINAL OFFER
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Raise: $400,000
Security: Preferred equity in a dedicated music-IP company
Illustrative ownership: 15%
Illustrative preference: 1x non-participating liquidation preference

Company assets contemplated for the final rights schedule:
- New masters funded by the raise
- Bobby DeMario's documented publishing interest in those works
- Audience infrastructure, operating systems, and associated company data

Investor return routes contemplated for definitive documents:
- Pro-rata cash distributions after required costs, reserves, and the approved
  reinvestment policy
- Partial or full catalog sale after a multi-year earnings history
- Royalty financing, strategic secondary, or company buyback

ILLUSTRATIVE YEAR-5 CASES
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Downside
  $310K Year-5 rights revenue × 5x = $1.55M catalog value
  15% pro-rata value = $232.5K; 1x preference implies $400K of proceeds if
  sufficient transaction proceeds exist
  Investor result: 1.00x MOIC; 0.0% five-year IRR

Plan
  $750K × 8x = $6.00M catalog value
  15% investor proceeds = $900K
  Investor result: 2.25x MOIC; 17.6% five-year IRR

Breakout
  $1.50M × 10x = $15.00M catalog value
  15% investor proceeds = $2.25M
  Investor result: 5.63x MOIC; 41.3% five-year IRR

The cases assume Year-5 liquidity and exclude operating distributions. They are
illustrative only. No liquidity event or return is guaranteed. Final economics
require diligence, a definitive term sheet, securities counsel, tax counsel,
final capitalization, and a defined rights schedule.
