BUSINESS PLAN

1. BUSINESS PLAN THE SEVENTH SENSE August 11,1999 Jessica Hoffman SZ TABLE OF CONTENTS Introduction Executive summary I. The Concept and Company II. Products and Services III. The Market IV. The Competition V. Marketing VI. The Management Team VII. Operations VIII. Corporate Identity IX. Business Risks X. Sources and Uses of Funds XI. Financial Projections XII. Income Statement and Balance Sheet XIII. Appendice SEVENTH-SENSE INTRODUCTION The Seventh-Sense, an e-commerce website, was conceived for those who are passionate about finding a varied assortment of ultimate gifts and interesting content, all integrated into a fresh, provocative, powerful, socially conscious, enterprising, artistic, thought provoking, sensual, and future-oriented online shopping site. It was developed as an alternative shopping destination for those who are tired of perusing a vast array of cluttered online shopping malls and slow-to-download department stores, searching in vain for premium merchandise. Our concept is simple, but unique. All the gifts and merchandise that are to be featured on the Seventh Sense are to be organized around the multitude of the senses, and the number seven, thus creating an easy, well defined model to display our online inventory. In this way you might find something in your “sense of sound” like a rare or exotic wind instrument, or ambient music, or a Walkman. Or, in your “sense of sight,” you might find a really cool outfit, ultimate shoes, or a visually memorable calendar. The “seventh sense” area of the site will provide a starting point to explore still more senses, such as your “sense of novelty” your “sense of adventure” or your “business sense.”

2. The Seventh-Sense will also integrate an exciting blend of content which could take form in the way of streaming online web broadcasts, “sense” oriented quotes, sense related stories, chat rooms, contests, and notable events. Seventh sense envisions an online exploration through the vast world of the senses and will feature a premium selection of merchandise that will appeal to a loyal online buying collective of “cool” people looking for “cool” gifts. Another key focus of seventh-sense will be our commitment to socially conscious endeavors with a charitable donation of seven percent of all revenues to exemplary organizations. In this way, we hope to provide the model for an integrated giving philosophy and ask our clientele to become socially active while they are shopping with us, and it is in this way we would like to draw on the power of the millions of internet users to collectively join together in support of world charity and peaceful enterprises. Seventh-Sense, Inc. intends to establish a gift buying monopoly in the healthy billion to trillion dollar e-commerce marketplace. THE SEVENTH-SENSE 333 Fillmore St #3 San Francisco, Ca. 94117 Contact: 415-558-9230 http://www.seventh-sense.net EXECUTIVE SUMMARY THE SEVENTH-SENSE 1. What is the Seventh-Sense? Seventh-Sense is a technologically advanced theme based e-commerce site for quality specialty gift items with several unique and innovative angles. We believe the concepts behind the model for the Seventh Sense are so revolutionary that they will be instrumental in generating a large and loyal following of customers via the web-site and through a potential mail order catalog, thus creating the environment for a robust, multi-sensory shopping experience. 2. What makes us different? Seventh-Sense products and merchandise are to be organized schematically around two main areas, the number seven, and the universe of the senses. Sight, sound, taste, scent, touch, and the sixth sense, or extra sensory perception will begin your shopping expedition. Then we will introduce what we call the “seventh-sense” or your gateway to another world of the senses, such as your sense of style, your sense of wonder, your sense of mystery, and your business sense, all things which lead us to explore the universe of the senses. 3. One step beyond: To further differentiate the Seventh-Sense as an outstanding e-commerce site, we will carve a monumental niche in the consumer arena by introducing yet another influential concept to our buying community. Seventh Sense would like to donate a large portion, seven percent of all purchases, to charitable and socially conscious organizations. In this way, shoppers are encouraged to indulge themselves, while at the same time collectively using the power of the internet in helping to promote and contribute to a healthy society and world endeavors. 4. The Seven Percent Solution: The reasons for the seven percent charitable donation are numerous. In addition to the more apparent reasons, such as the desire to contribute something worthwhile to the human cause, by forming affiliations with powerful non-profits and charitable organizations, Seventh-Sense will draw and attract a large, pre-existing audience share of people who are already active members of charitable associations, such as the millions who are active members of the Oprah Winfrey Angel Network. These endeavors will to serve to establish an invaluable networking and marketing vehicle for Seventh Sense to establish overall credibility and form productive, long-term relationships with our members and affiliates. 3. An innovative new paradigm: Seventh-Sense combines online specialty and gift shopping with invigorating creative content. A shopping site that will be loaded with stimulating writing, meaningful

3. quotes, contests, audio and visual presentations, ways to help our planet grow and survive, explorations into the hidden senses what make us who we are, and will have many incentives for the buyer to return again and again. Seventh-Sense will strive to be the most influential medium or new paradigm for future e-commerce web-sites in the new millennium. THE BUSINESS PLAN I. The Concept and Company 1. Our mission is to provide an on-line shopping experience of specialty and quality merchandise schematically organized in such a way to create excitement, and a dynamic and innovative model for a high volume of transactions to take place. The additional notable benefit of a sizable donation of profits to be given to charitable organizations, adds depth and meaning to the online and catalog shopping arena. We are dedicated to building an online community that harnesses the collective power of our members in order to aid worthwhile causes or charities. 2. E-commerce is an exploding marketplace and not looking to decrease anytime soon, however a vast number of online shopping sites are overproduced and redundant. The buyer may be initially entranced, but is easily lead astray when it comes to decision time due to the mass categorization of items and the lack of feeling associated with their purchase. The need for e-commerce niche markets and intermediaries, which provide rich content and many incentives for the customer to return, is evident. Buying audiences are being increasingly careful about where they spend their time online. 3. Seventh-Sense will fill the need in the marketplace for a site that integrates ease of navigation, brilliant creative content, a sense of fun, and fine merchandise, all combined in one web-site. The innovative philosophy and schematic categorization around the senses creates a highly scaleable system to showcase and manage the goods and merchandise in a way that most customers would appreciate. The streamlined organization enhances a meaningful online shopping experience. 4. The size of the initial web-site will be small with seven to ten items in each category, for a total of 70-100 items to be included in the first launch, combined with services and content. But the site is so structured to promote rapid growth and expansion in synergy with the expansion of our loyal buying audience, as we add more features, categories and services. This in combination with rich content and efficient marketing maneuvers provide the basis for unlimited expansion potential. 5. Extreme growth opportunities exist in e-commerce specialty shopping and niche sites for the consumer who wants a full blend of interesting content, quality merchandise and the opportunity to explore while they are making buying decisions. Currently, many online shopping sites are slow to download, hard to navigate, and filled with pages full of static links. Many offer no extra services, are not aesthetically pleasing, and don’t integrate functionality. Buyers are looking for new ways to view and transact over the web. We plan to tap into this potential market and rise to the top of the niche market arena. 6. Seventh-Sense has identified several charitable and non-profit organizations that we would like to work with to become our long-term affiliates and partners, and who would then introduce our web-site to all of the members and audiences of their respective charitable organizations through press releases, web-site links, and word of mouth. Some prospective affiliates that we would like to approach in promoting our site within six months include The Oprah Winfrey Angel Network, Habitat for Humanity, and The Children’s Foundation. II. Products and Services 1. Seventh-sense intends to offer high-quality gifts and merchandise related to all areas of the senses. Here is brief overview of the wide range of products available to customers of the Seventh-Sense. The Sense of Vision Cool clothing, amazing shoes, brilliant accessories, calendars, art, books, visually stimulating videos,

4. exclusive eye-wear, on-line video presentations, video cameras, movies and videos, and other products and services related to the sense of vision. The Sense of Touch Body oils, faux fur, velvet pillows, teddy bears, silk sheets, bath oils, skin tonics, body creams, massage tools, touching letters, slinky clothing, flannel pajamas, sensual books, meaningful quotes, things that you are feeling or touching. The Sense of Sound Ambient music, MP3 downloads, inspirational audio selections, walk-mans, fountainss, cell phones, clocks and pagers with unique rings ,CD’s, wind chimes, talking organizers, things related to the sense of hearing. The Sense of Taste Foods from around the globe, specialty cookware, scrumptious recipes, imported spices, cheeses, wine, chocolates, mustards, pastas, olive oil, exotic teas, gift ensembles, gourmet coffees, and other delectable items for your sense of taste. The Sense of Scent Aromatherapy, incense and essences, sachets, flowers and botanical oils, scented candles, perfumes, herbal shampoos and formulas, lavender wands, scented lip flavors, cigars, more elixirs and more specialty food items. The Extra Sensory Sense Things related to spirituality, crystal, tarot, books, dreams, guides, spirits, awakenings, lava-lamps, manuscripts, psychic power exploration, destinations, telepathy, and works by influential and respected visionaries. The Seventh-Sense The Seventh-Sense is the gateway for seasoned journeyers to explore all of the other “senses” which are beyond the scope of the above mentioned six senses. For example, these might include your “sense-of-compassion,” your “sense-of-style” and your “sense-of-play.” Try seven virtual and virtuous stock-tips, seven ways to be passionate, seven new styles, and 7 travel stories and destinations. The possibilities for a variety of combinations of gift, content, and services are unlimited. 3. Some proposed additional services and enhancements: “Giftpals” or “Giftbuddies”-the automated way to trade gifts on-line E-mail newsletters for registered members. Registration to vote for the charity of your choice. Vision forums-online presentations of noted philosophers and scientists Special packages to F1000 companies: Seventh-Sense business gift certificates and employee incentive rewards. Purchase a specified amount and choose your preferred charitable organization. 4. Some examples of engaging content for each sense category: The Dalai Llama in a feature on-line audio presentation and speaking engagement.

5. Video presentations or web broadcasts from exciting or hidden locations around the world. Exclusive or special recipes for health and well being updated frequently. Writing or poetry contests with prizewinner featured on Seventh Sense. Free perfume giveaways to first Seventh-Sense visitors to log into sense of smell. Each sense is its own world in the universe of the senses. (huh?) 5. Exclusive Seventh Sense Products and merchandise: Future goals include the possibility of introducing a line of product or gift lines which are manufactured or produced exclusively for Seventh-Sense and featuring the highly brandable “Seventh-Sense” logo. Some proposed ideas may include an exclusive line of body care products, body aromas and oils, health and beauty products, imported specialty items such as an hand carved chess set, seventh-sense kinetic light sculptures and other technologically enhanced gadgets, and well-designed gift-packs that integrate the seventh-sense gift giving philosophy. III. The Market Specific Markets: There are a four distinct markets in which Seventh-Sense would like to establish a market share, beginning with our core target audience, and as we gain momentum, to include other segments of the total online buying audience. 1. Primary Market-Women: In a study by Jupiter Communications, women online number 23 million and represent 47% of the Internet population. Researchers predict by next year, roughly half the cyberspace population will be women, from 19 million last year to 52.4 million in year 2000. So, while men still outnumber women online today, women are growing at a faster rate. We plan to market heavily to those female newcomers to the web, building our brand awareness and establishing an early market share with this new and highly profitable market. The women that we would like to cater to are between the ages of 25-55, college educated, have an income between $35-$63K. They are also socially conscious, trend-setting, cosmopolitan, hip, and spiritually inclined. Additionally, according to a study conducted by NetSmart, the average woman online is mid-aged and upper middle-class. She likes the web because it is: Convenient. More than 91% of the women surveyed want to simplify their lives and save time. Empowering. Instead of going store to store, women can research purchases by going site to site. Fun. Women enjoy checking out new vanity items and clothing trends on the Web. Seventh-Sense will be an online shopping site that is forward-thinking, futuristic, humane, meaningful, playful, elite, cool, interactive, progressive, content rich, artistic, aesthetically pleasing, and sensual. 2. Secondary Market: Men buying gifts for women We expect a large portion of our online customers, as much as 30-40%, to be men who are gift shopping for items for their wives, female friends and family members, and they will hear about Seventh Sense through positive word of mouth and female recommendations. As we build confidence with the men’s audience we will add more items geared for the male buyer to purchase for himself and more content that would appeal to the men’s audience. In this way we plan to gain a share of the men’s market for a more balanced and complete shopping model. 3. Charitable and Philanthropic Organizations: Associations with charitable organizations and non-for-profits will help to create a ripple effect on the member base and audience share of the Seventh-Sense. By partnering and establishing associations with charitable organizations we will then be introduced to the large pre-established network of followers and members of those respective organizations. The established audience base of some of these networks is large. For an example, an organization such as Amnesty International has 60,000 members. Other organizations have an established member base into the millions. 4. The business-to-business market: Seventh-Sense would like to establish a bond with the

6. business-to-business market by introducing and marketing a fun and innovative gift buying and employee incentive program, designed especially for large companies and F5000 corporations. In this way companies can purchase a large quantity of on-line gift certificates for their employees, which can be retrieved by individual passwords. For example, companies could purchase and distribute gift certificates and passwords to 1000 stellar employees for $100 each, for a total package cost of $10,000, with a built-in 7% charitable contribution, and a 7% donation and tax deduction. 5. Targeting New Markets: Future Aspirations-gifts for cool people of all ages! Through our targeted event marketing we would like to introduce the Seventh Sense to targeted audiences to further establish our identity and build our clientele. Our growth strategy may include some experimentation with very focused audiences, promotions could come in the form of an online banner advertisement, a radio spot or a magazine spread or editorial. We would like to attack each area of the site individually in this way, tracking and monitoring the user profiles and CPM ratio to determine what strategies are most effective in terms of audience share, and find cost effective ways to create market concentration in these markets. 5. IDC Reports: A new report from IDC entitled The Global Market Forecast for Internet Usage and Commerce predicts massive growth in the number of Web users in the next four years, estimating a total of 320 million people with access to the World Wide Web by 2002. People are gaining confidence in e-commerce, as evidenced by a recent report from Nielsen New Media Research and CommerceNet, that online shopping is growing at a rate of 8% per month. Meantime, IDC says the number of online shoppers will reach 128 million in 2002, representing more than $400 billion worth of transactions. 6. Forrester Research, Inc. has issued a new report estimating that worldwide e-commerce will reach between $1.4 and $3.2 trillion in the year 2003. This total represents 5 percent of global sales. George F. Colony, president of Forrester said, "To achieve its full potential, businesses need to move quickly to establish market leadership…” IV. The Competition 1. The first influential site we have seen which implements the concept of online shopping with a cause has just hit the net and is called http://www.greatergood.com. Consumers shop at the stores in their villages and see 5% of the purchase price donated to non-profits. The site has formed alliances with larger companies such as Amazon, eToys, The Sharper Image, and so on, and makes use of the affiliate programs established by many those merchants. More of an ally than an adversary, the Greatergood will be paramount in redefining the role we take as consumers by utilizing the affiliate system and becoming a portal for conscientious shopping venues. 2. The distinctive competitive advantage which Seventh Sense plans to bring to the highly lucrative e-commerce market include a highly scaleable interactive concept which can expand with audience growth and sophistication in finance and distribution. This results in the Seventh Sense being a low cost supplier in price sensitive markets. The philosophy of the Seventh Sense is to provide excellent merchandise, fast turn around, and secure registration. By pricing to the market, we will achieve higher sales and therefore increase our collective buying power. 3. Although a substantial portion of the revenues will be donated to charitable organizations, we have determined by: keeping our fixed overhead and expenses low, and ongoing advertising and marketing costs at a minimum, we will be able to turn a substantial profit within the fourth quarter of year 2000. We are allowing a significant amount of time for our advertising and marketing programs to begin saturation and to begin building healthy, long-term, relationships with our partners, affiliates, and clientele. V. Marketing 1. Press and Promotional strategies: Site announcement to all major Internet search engines and directories. Issue multiple press releases to news wires, press, and media organizations.

7. Announce web-site launch and events in news groups. Purchase online web banners advertisements on key hi-traffic web sites. Issue a Seventh-Sense e-newsletter or e-zine. Conducting a direct and ongoing e-marketing campaign. Proactive phone and mail campaign to introduce site to the Industry and affiliates Measure and monitor traffic and recalculate strategies accordingly. Expand network of charitable affiliates promoting site to large existing audience base. Produce notable online promotional events relating to each category of the site. Print advertising campaigns in key magazines and newspapers. Explore television advertising and commercial spots in regionally specified areas. Participation in Web-banner link exchanges. Participation in e-mail lists and web-rings. Links from online shopping mall directories and shopping centers 2. Advertising-On-line, magazine, newspaper and radio: We have begun researching costs and audience metrics for print, online and other methods of advertising and promotion for the site, and are developing a general snapshot of the kinds of publications we would like to advertise in. Some of the companies may include: Magazines: Cosmopolitan, New Woman, George, Wired, Vanity Fair, Time, Newsweek, the New Yorker. The Magical Blend. Newspapers: New York Times, The Washington Post, Entertainment Weekly, the Contra Costa Times, San Francisco Weekly. Online: Women.com, Alta Vista, Red Herring, CNN,MSN Network, iGive.com, the Greater Good. Radio: NPR Radio, KNBR Classical 3. Search engine relevance: Consideration will be given to the question of keyword and meta-tags, and how can we differentiate ourselves from the competition? Each area of the site will have a series of the basic keywords such as gifts, online shopping and names of individual products and items, and we will experiment with combinations of keywords relating to special promotional events and special web-site features. As an example of keyword combination relativity, a recent survey of over 22,000 visitors conducted by the six major search engines, found that the majority of searches were conducted under multiple keywords and phrases: Single keyword 16%-- 29% Multiple keywords and phrases 50%--77% We will also match individual site pages of Seventh Sense to the top 100 ranked search engine keywords. For example, some of the most popular keywords and meta-tags have been identified, such as: game, travel, music, horoscope, book, gift, real audio, sound, etc. In this way, Seventh Sense will be easily recognizable to roving spiders and bots, increasing its overall web presence and search engine rankings. 4. Pricing structure & strategy: One online metric estimates that the average price per item sold on the net today is from $10 to $499. Our merchandise would generally fall in this price range, except for in cases where we may somewhat higher priced items as an additional indulgence. For example, a hand carved four poster bed featured in “the sense of luxury” category, or an extravagant vacation package for the millennium New Year celebration in the “sense of adventure.” As audience share and interest increases we will continue to add more items, content and services and price accordingly, keeping in mind the built in operating cost of a seven percent donation. 5. Distribution Plan: We are considering implementation of back-end drop shipping through an

8. established e-commerce network of wholesalers and vendors which will manage the shipping and distribution of all Seventh-Sense merchandise. For example, working with an organization such as OrderTrust provides a back-end order processing system that is fully integrated and handles all aspects of streamlining and automating the buying process from order taking to drop-shipping and distribution of inventories and merchandise. OrderTrust, through a fully redundant, 7 x 24 network operations center, securely and reliably manages information throughout the life cycle of an order, ensuring 100% monitoring and auditing of all transactions. Services include order capture, routing of separate fulfillment requests to multiple suppliers, credit card authorization, appropriate merchant compensation and e-mail notification of order status. By taking advantage of the OrderTrust network, merchants can focus on front-end e-commerce initiatives, such as building brand identity and driving traffic to their sites, while providing superior service to their customers. 6. Reverse plan to include in-house inventory and distribution: Upon the successful growth of Seventh Sense, we would like to explore the possibility of obtaining our own location for housing merchandise and for shipping and distribution. In this way we would be able to expand our selection of exclusive goods and merchandise which are not currently available through traditional vendor network channels, such as imported items, made-to-order goods and hand made merchandise. Ideally, we would like to find a location that would be suitable for housing the executive, marketing, and customer service offices and the shipping and distribution warehouses. VI. The Management Team Biographies of the Founders Jessica Hoffman-Co-Founder and Director Ms. Hoffman has had experience in the consumer retail area with her own firm, Sweet Dreams Lingerie located in Mendocino, California, for a period of five years where she sold quality lingerie, sleepwear, and bed and bath accessories to a local and international buying audience. Ms. Hoffman then moved into the technology sales arena with her latest venture presenting and selling large-scale software systems to F1000, e-commerce and start-up companies, simultaneously gaining a knowledge of some of the most advanced technologies available on the market today, which include: AI based auto-responders, relational databases, search engine technologies, presentation systems, sales force automation tools and e-auction software. Sarah Zesmer-Co-Founder: Sarah Zesmer brings a rich background in writing, sales, and marketing to the Seventh-Sense. Over six years as a feature journalist for major Chicago newspapers such as the Chicago Tribune, The Chicago Sun Times, and The Chicago Reader. Ms. Zesmer then took her marketing and entrepreneurial skills to the high tech industry where she is responsible for promoting Internet business solutions to Fortune 1000 companies. She takes a leadership role in acquiring and consulting with clients to set up and manage sales and marketing campaigns to deliver qualified business opportunities. Ms. Zesmer achieves results by managing projects dynamically-pushing the focus, script and marketing language. Combined with marketing savvy, her dynamic process of formulating goals, gathering information and creating meaningful scenarios bring real results and diversity to all her projects. She received her BA in English. 3. Our Advisors: Sam Pullara-Weblogic/BEA David Freeman-Required Technologies Lillia Shirman-Anderson Consulting Olivia Huang-TAI Associates International Robert Arthur-Attorney at Law, Partner, BBA. MBA Went Wenders: 30 year veteran of IBM VII. Operations 1. Design and Development: The first order of operations will be to choose our web designers and architects for the site and for web banner advertising. Based on our preliminary search for web talent we

9. received numerous submissions for consideration to be a part of the web building process. From this wealth of web entrepreneurs, who have worked with companies such as Wells Fargo, Hewlett-Packard, Nike, Tangent, Sysco and E*Trade, we have narrowed our choice down to five outstanding web designers which have skills in building fast loading, visually stimulating, e-commerce sites and web banner advertisements and have outstanding skills in working with the latest technologies such as Macromedia Flash and 3D interactive. Additionally, we are currently working with a web designer on a prototype or demo model of the Seventh-Sense to be made available to interested investors and individuals upon request. This model will be a sample of the proposed look and feel of the website and demonstrate some of the advanced features of the site. 2. Off-site Production: Production of Seventh Sense will initially be out-sourced and we will be working with independent contractors and consultants for the development of the web-site and site content. Later as we grow, additional resources will be allocated for ongoing in-house web-site and server maintenance, web-site upgrading, customer service staff, business and financial analysts, and advertising and marketing personnel. 3. Production coordination strategy: We would like to approach designers, web-site developers and consultants on database system development, vendor network for products and merchandise, order processing system automation, and other technically related issues as soon as we have secured seed money or start up capital. We are also working on a detailed marketing plan to provide further direction a for our press, promotional and marketing efforts. 4. Technology Research: As seventh-sense. net will be a highly interactive web-site, much emphasize will be placed on the level of technology and enhancements for the core infrastructure of the site. Some of the applications and systems we would possibly like to integrate include: Personalization software, auto-response e-mail, advanced search capabilities, gift-registry capabilities, streaming audio and video presentation software-with view on demand archiving, web audience tracking software and site performance and activity monitoring software. VIII. Corporate Identity 1. The Seventh-Sense Inc. 2. Investor taxes: TBD 3. Share price: TBD 4. How many shares are available: TBD 5. Loan repayment plan: TBD IX. Business Risks 1. Projections: We project that we will be able to generate sufficient capital from operations to meet our needs after the initial start-up infusion. However, our projections are in industries that have never been fully addressed and are based upon present real buying conditions and our own experience. Should sales not be up to projections, adjustments will be made in ordering and long term commitments decreased or postponed. 2. Transmissions: A minor setback to a smoothly run web operation has to do with the reliability of the order processing systems. To ensure that we are prepared to handle sudden surges in audience-too many people logging on at once-and avoid server crashes, we have consulted with professionals in this field and are establishing an integral system of checks and balances, including reliability, performance and monitoring systems, to minimize the possibilities of any upsets and recover quickly from any such delays in transmission. 3. Safety nets: We have chosen the reputable InSight Technologies to oversee the implementation of our order processing system and ensure that we are using the most robust and reliable software and data

10. bank applications available, and that we will have highly scaleable system for the implementation of additional features and functionality. We believe a well designed and properly maintained system will minimize technical risks and provide the base for future upgrades and implementations. 4. Domain name: Although we have secured the domain name www.seventh-sense.net, we foresee that some portion of our clientele will attempt to log in to web-sites with similar sounding names. Currently in use are several variations of the Seventh-Sense. These alternate websites include: seventhsense.com: Domain owned by Greg Sheive of Velecom: Under construction. seventhsense.net: Domain owned by Douglas Gould & Co.: Under construction. seventhsense.org: Domain owned by Douglas Gould & Co: Under construction. seventh-sense.com: A new very small age home site maintained by Delany Shriner AKA “Bee Lief” seventh-sense.org: Domain name still available. We would like to secure. 7thsense.com and net: Domain owned by Michael Bofinger. A German New media web-site, up and running. 7thsense.org: domain owned by Torres Franck, Franck Corp., of France: Under construction. sevensenses.com-Seven Senses Design owned by Michael Drewery: Under Construction sevensenses.net and de: Prosieben Media owned by Johannes Waldorf. Newly constructed German consulting site, up and running. theseventhsense.com: Owned by Doris Wild Helmering, Author and psychotherapist. A small web-site featuring her book “Sensibility: expanding your sense of awareness in the 21st Century” theseventhsense.net: Domain name available theseventhsense.org: Domain name available We do not see any major direct competition from any of these web-site addresses as far as e-commerce is concerned at this time. We are exploring the possibility of obtaining the “seventhsense.com site from its owner either in the form of a sum payment or by offering a percentage or a share of the companies future equity in exchange for the domain. X. Sources and Uses of Funds 1. Seventh-Sense will need an initial first-round start up investment of $500,000 to $1,000,000 from interested individuals or companies. The company will be incorporated and common stock issued to investors. The company will initially be run as a partnership. This first round of financing should be sufficient to launch Seventh Sense and will result in immediate sales revenue. 2. The initial start-up investment is to be used for working capital for the production and ramp-up phases: offices and equipment, web-designers and consultants, order processing systems, security systems, research and development, market and media analysts, site content, technology advisors, executive salaries, legal fees, and print and online advertising. 3. Future rounds of financing may be sought to expand marketing efforts, increase our infrastructure, and upgrade and enhance the web-site itself. As we grow we will need to invest in legal and financial entities in developing the prospectus and strategy for an IPO or common shares of stock. 4. The timing of these future investments will be based on current and ongoing projections relating to the profitability factor and success of our company. XI. Financial Projections 1. Based on an average buy rate of 6%-7% we estimate that with a click through rate of 1,000,000 hits per month, we will be making an average of $70,000 per month in total revenue within the first several months of the launch phase. Our primary initial overhead will be in the construction of the web-site and back end order processing system, customer service staff and marketing efforts. 2. Anticipated costs: Fixed and ongoing costs include: Offices and equipment, site additions and

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