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Case Studies The scenarios that follow show our agility, range of expertise and the scalability of our services.

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Our client needed a quick piece of collateral in order to approach investors.

Investment Solicitation Brochure

We responded with a simple solution to a complex, medical document. By focusing on the urgency of the subject matter, we were able to complete the project within one week

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Executive Summary All readers consent not to disclose or implement the content presented in this document.

ISSUED TO: COPY NUMBER: DATE:

Contact Information: Dr. Alex Shneider

Gene Froelich

609-841-1201

310.446.9810

ashneider@CureLab.com

gene@CureLab.com



In accordance with the safe harbor provisions of the Private Securities Litigation reform Act of 1995, the Company notes that statements in this document, and elsewhere, that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the Company's actual results of operations.


TABLE OF CONTENTS

The Company ...................................................................................................................................2 Technology. Universal Ani-Flu Vaccine. ........................................................................................ 2 Limitations of current strain-specific flu vaccines.......................................................................2 Cure Lab’s Flu Vaccine Technology ........................................................................................... 3 Market Segmantation. ...................................................................................................................... 4 Medical Application..................................................................................................................... 4 Bio-Defense Applications. ........................................................................................................... 4 Swine Flu Application.................................................................................................................. 2 Avian Flu......................................................................................................................................2 Alternative Applications. ............................................................................................................. 3 Competition Analysis....................................................................................................................... 2 Big pharma ...................................................................................................................................2 Small biotech companies.............................................................................................................. 3 Vical .........................................................................................................................................3 Acambis....................................................................................................................................3 Dynavax ...................................................................................................................................3 Management Collaborations. .................................................................................................................................3 Cure Lab’s cost saving operating model. ......................................................................................... 4 Operating Plan..................................................................................................................................5 Required Capital and ROI................................................................................................................ 2


THE COMPANY

Cure Lab, Inc. (or, the “Company”) is a biotechnology company developing vaccines.

Cure Lab has received SBIR and biodefense grants from NIH for development of a new generation anti-flu vaccine. The Company has created the first universal vaccine capable of protecting against both known, and unknown, strains of influenza. The prototype developed by Cure Lab may be finalized for a commercial application and has a rapid implementation schedule:   

within 6-12 months for pigs within 18-24 months for chickens up to 36 months for human clinical trails

The same technologies may also be applied towards the development of vaccines against other viral diseases and cancer. During a current world flu pandemic, anti-flu vaccines are of high value and demand. We have focused our present business plan predominantly on a universal flu vaccine. We believe that this would maximize shareholder value and minimize risk.


A UNIVERSAL ANTI-FLU VACCINE: THE ADVANTAGES

Current anti-flu vaccines are strain-specific. They are developed to protect against a very limited number of viral strains (usually, three). The fact that vaccines are strain-specific results in multiple problems:

An Existing High Risk of a Mistake

The seasonal outbreaks are often caused by strains other than those selected for vaccine. Last year, two out of three strains reported were wrong. The Necessity for High Spare Capacity

At the beginning of preparation for the flu season of 2004, British influenza vaccine manufacturer, Chiron, now a subsidiary of Novartis Corp reported bacterial contamination of some vaccine lots. The regulatory authority revoked Chiron’s license for several months. This delay led to severe shortages of vaccine worldwide since current strain-specific vaccines could not be stockpiled in advance. Further, strainspecific vaccine manufacturing could not be expeditiously delegated to another company. The High Production Costs and Distribution Risks

Strain-specific vaccines cannot be stockpiled and distributed in advance. Thus, it is extremely vulnerable to any sudden disruptions. Political Risks

New strains appear in non-democratic Eastern countries. These countries might restrict access to viral samples as an expression of their animosity towards the West. Reluctance to Vaccinate

Flu vaccines often miss their target since a large segment of the population is reluctant to vaccinate.


CURRENT VACCINE POLICY

Despite their limitations, current flu vaccines are broadly used.

Even with the current, strain-specific vaccines, the Advisory Committee on Immunization Practices (ACIP) has recommended annual immunization for those at high risk of developing serious complications from influenza. Within the U.S. alone, this group is comprised of approximately 35 million persons aged 65 years and older and 33-39 million persons aged less than 65 years but who have chronic underlying medical conditions. Recently, the CDC has recommended the vaccination of children 6 months to 5 years of age. The market for current influenza vaccines is expected to grow substantially. The market size for universal vaccines would be at least double the size of the currently market.

Why Does The Government Continue To Order Strain-Specific Vaccines?

Responding to the announcement of an H1N1 pandemic outbreak, US government officials allocated over $1B to purchase H1N1-specific vaccines. The government can only order what is available. At the moment, no company offers a universal anti-flu vaccine. Thus, the decision to stockpile an H1N1-specific vaccine is the best solution that governments worldwide can offer. Governments would be very much inclined to purchase strategic reserves of the universal vaccine as soon as it becomes available. This creates a historical market opportunity to Cure Lab.


Cure Lab’s Flu Vaccine Technology

Taking the guess-work out of flu vaccination.

Cure Lab’s vaccine technology is designed to elicit an immune response against cells infected with the virus -- as opposed to free forms of the virus. This approach to vaccine development relies on generating a cytotoxic T-cell response, targeted against infected cells. The resulting vaccines are known as T-cell vaccines. This approach is one of the latest and most effective strategies used in immunology, and is currently under development for applications in the field of cancer. The use of Cure Lab’s T-cell vaccine-based technology focuses the mechanism of vaccination on the constant proteins of the flu virus. These proteins remain unchanged in all of the viral variants of influenza; therefore, a vaccine that elicits an immune response against cells possessing these viral proteins prevents the virus from escaping the immune response, regardless of its variable regions. Recent results from our ongoing research have shown Cure Lab’s prototype vaccine provides 100% protection in vaccinated mice while all of the animals in the control group died after viral challenge. Qualitatively, the same results were reproduced in chickens infected with lethal avian flu. Of chief import, the vaccine was not specific to the infecting strain(s). In order to develop its universal anti-flu vaccine, Cure Lab has created several methods to enhance an immune response, which can be re-applied now to any other anti-infective and/or anti-cancer vaccine of interest. These technologies are based on discoveries made within the field of vaccinology as well as other sources. Cure Lab’s inventions have incorporated the latest insights from the fields of neurodegenerative diseases, genome structure, protein biochemistry, etc. Cure Lab papers in scientific journals were widely covered by the media around the globe and professional magazines, including AP, UPI, and Drug Discovery News. Cure Lab has also presented at the leading conferences. The technologies are submitted for patent protection and/or kept as know how(s).


Market Segmentation Medical Application

Influenza or “flu” is a highly contagious viral respiratory tract infection, affecting individuals of all ages worldwide every year.

Infections may be asymptomatic, or they may produce a variety of symptoms ranging from mild upper-respiratory infection to pneumonia and even death. According to the Centers for Disease Control and Prevention (CDC), 20 to 50 million people are infected annually in the United States alone, causing:  70 million lost work days  38 million lost school days  an average 36,000 deaths Around the world influenza causes up to 500,000 deaths annually. According to the World Health Organization (WHO), the corresponding financial burden to the US economy is estimated to be between $75-150 billion per year. Even the threat of an epidemic with a newly emerging form of flu virus may cause a world economic recession similar to the great depression of 1930s according to economists from the Bank of Montreal.

Bio-Defense Applications

Flu is an ideal biological weapon. Unlike anthrax, flu is highly contagious. Unlike smallpox flu is impossible to vaccinate against (unless the vaccine is universal). It would be extremely cheap and quick to spread the new strain using few terrorists. After completing a deliberate and competitive scientific review process, the NIH awarded Cure Lab the first phase of a biodefense grant for its influenza vaccine research. Because the influenza virus can be molecularly modified and is highly contagious among individuals, it is a strong candidate for use as a biological weapon. Recently, a group of scientists at the University of Texas declared that they believe influenza can be the next Weapon of Mass Destruction (WMD). They came to this conclusion, because they were able to partially re-create the flu virus in their lab that caused the world wide pandemic of 1918, known as the Spanish Flu. That pandemic killed up to 50 million people world wide. Another group of scientists from Mount Sinai School of Medicine in New York have also recently partially re-created this strain of the flu. Even more recently the CDC has completed the sequencing of the genetic code


for the Spanish flu and has released this code into the public domain. The current vaccine technology cannot protect against unanticipated forms or strains of influenza virus. Cure Lab’s proprietary technology utilizes a mechanism of vaccination that is not dependant on the variable antigenic epitopes, and therefore is not strain-specific. Cure Lab’s vaccine may be effective in preventing infection by influenza-based viruses used as biological weapons. Swine Flu Application

WHO has announced that the current H1N1 flu pandemic originated in Mexico. So far, we are lucky that the current strain is not very lethal. In fact, it causes fewer deaths than a typical seasonal flu. The current H1N1 virus, however targets the same unusual subset of the population as did the Spanish Flu in 1918: young healthy adults. Also, unlike a seasonal flu, it penetrates the respiratory tract deeper, targeting the lungs. These characteristics make it possible that sooner or later, this virus would mutate into a “killer flu” similar to Spanish Flu. Importantly, Spanish Flu did not start as a highly lethal strain. For almost a year it was viewed to be just another yearly flu. Transmission of swine flu virus to humans working on pig farms has been a routine event. Thus, new outbreaks are inevitable in the future unless proper vaccination measures are implemented.


The Urgency of Universal Vaccination

Vaccinating pigs against flu is necessary to preclude pandemic outbreak in humans.

Human flu virus is highly contagious, but it is not highly lethal. Avian flu virus is highly lethal, but is not highly contagious. A pig can be infected with both human and avian viral strains simultaneously. The pig essentially serves as a mixing vessel. Human and avian viruses may exchange their genes, generating a hybrid progeny, which would be as contagious of human virus and as lethal as an avian virus. This would result in a pandemic outbreak similar to, or exceeding the catastrophe of 1918 Spanish Flu. A majority of experts consider this scenario as “long overdue.� Vaccination of domesticated pigs with universal anti-flu vaccine would preclude both human and avian viral strains from infecting the pigs. Thus, vaccination of pigs with universal flu vaccine is the only feasible solution to preclude a human flu pandemic. The H1N1 swine flu outbreak demonstrates that it is not predictable as to which viral strains will cause the tragedy. Thus, a vaccine has to be universal in its nature. It has to be effective against all flu. Any strain-specific vaccine proposed today would only create a false sense of security and would not preclude tragedy. It does not matter how effective a strain-specific vaccine would be, a viral mutation is inevitable.


FROM RESEARCH TO THE FINAL STAGE OF PRODUCT DEVELOPMENT

Cure Lab has developed a prototype universal flu vaccine. A single product was demonstrated to be protective against both human and avian flu strains.

Each vertical market, including swine vaccine, has its own requirements for product formulation to make it the most effective. Cure Lab’s prototype has to be finally “tuned” and tested on pigs to become optimized for pigs.

Catch 22 and market opportunity

Swine flu vaccine is a classic “Catch 22” situation. Medical investors and the NIH were not interested to fund a universal vaccine because it was an animal, not a human that would be vaccinated. It was classified a veterinary issue. Veterinary authorities and private investors considered a universal vaccine to be a medical proposition. This discrepancy has resulted in a severe unmet need and created a niche of opportunity.

Avian Flu

The threat of a new pandemic has arrived by other means: Avian or “Bird Flu.” The threat coincides with the migration of birds from the Far East to the West. Both the WHO and the CDC are concerned about this situation and have sent teams of scientists to the affected countries to monitor this outbreak. “…the avian flu is the most serious threat facing the world.” -- Lee Jong–Wook, Director-General of WHO

The WHO has predicted that the bird flu pandemic could cause more than 100 million deaths world wide if no solution is found. Cure Lab’s vaccine could potentially be of use against such a mutated human flu virus and we believe that time is of the essence in developing a solution to this potentially catastrophic event.


Alternative Applications

The company intends to re-apply its technological base to cancers and infectious diseases including but not limited to Hepatitis C, West Nile disease and HIV/AIDS.


Competitive Analysis

Large Pharmaceutical Companies

The major manufacturers of current flu vaccine are:  Sanofi Aventis  Glaxo Smith Kline  Novartis (aka PowderJect Vaccines, Inc.) Since the currently manufactured vaccines are a viable solution for just one flu season at best, these pharmaceutical companies must develop and produce influenza vaccines on a yearly basis. Pfizer manufactures a flu vaccine for veterinary purposes. To date, all the major vaccine manufacturers, as well as the multiple biotech companies have failed in their attempts to develop a universal vaccine that would offer protection against a wide range of influenza strains. For example, Pfizer has combined its swine flu vaccine with its proprietary adjuvant (a molecular carrier for the vaccine) with other vaccines protecting against different respiratory infections. This exemplifies an approach where the improvement is not directed toward a vaccine per se, but to a better product. This method is still based on the same vaccine protecting against only a single strain. This approach is only marginally beneficial, but it will be much more useful if combined with Cure Lab’s solution offering wide range influenza strain protection. Recently, high expectations were placed on FluMist, a new product developed by Medimmune in the field of antiinfluenza vaccines. FluMist is a cold-adapted, live-attenuated (based on a weakened virus), trivalent anti-influenza virus vaccine. The main advantage of FluMist is that it can be delivered as a nasal mist, eliminating the need for needles. Attenuated vaccines have worked very well with some viruses – although very different in their nature from the influenza virus. These vaccines have not proven promising against influenza. In short, an attenuated vaccine is good against viruses that are


extremely dangerous in their naturally occurring form, but their efficacy is diminished as immunity is formed. Since FluMist is still subject to antigenic drift, it suffers from the same flaws as the current vaccines. However, the fact that this sub-optimal biological agent can be delivered in a more natural way, i.e. intranasally, makes it a good temporary solution. Unlike FluMist, Cure Lab’s flu vaccine allows the formation of a primary immune response to the cells carrying the NPprotein of the influenza virus. There were several previous attempts to develop an immune response against NP-protein. These belong to one of three groups: 

An attempt to use NP-protein as an antigen to develop a humoral response. It offered ineffective protection against the virus because NP-protein is hidden within the virus and is never exposed to the antibodies. Attempts to prepare peptides derived from NP-protein and administer them to the body so they would bind MHC-receptors on the surface of the antigenpresenting cells. This approach did not work because effective assembling of a peptide with MHC-receptor requires tight control at the level of the intracellular machinery. The peptide cannot be effectively administered from the outside. An attempt to deliver the gene for NP-protein to the cell, such that it would get processed and presented on the cell surface in complex with MHC-receptors. However, the flu virus has developed a way to escape this MHC-presentation by designing special features in NP-protein.

Cure Lab’s technology overcomes these obstacles and develops a T-cell immune response against the cells carrying NP-protein.


Small Biotech Companies

Technology:

Vical has developed a chemical adjuvant, which the company intends to apply to multiple vaccines. Influenza specificity:

Vical it trying to combine its novel chemical adjuvant with a combination of unmodified NP-, M2- and HA-encoding plasmids, which are known antigens. Cure Lab’s recent results as well as studies of others raise a serious question on the utility of unmodified M2 as a component of a vaccine. Competition:

Though the combination of antigens selected by Vical is not promising, its efficiency could be greatly enhanced by Cure Lab’s technologies or substituted with a Cure Lab antigen if the two companies collaborate. Reciprocally, it is possible that Vical’s chemical adjuvant could enhance efficiency of antigens modified by Cure Lab.

Technology:

Utilizes a modification of a small fragment of a conserved influenza protein, M2. Influenza specificity:

This is a novel modification of a conserved antigen that results in the induction of crossprotective immunity. However, the level of this protection is low and it does not prevent infection, but partially alleviates disease. Competition:

Acambis’ product is not able to provide significant protection on its own; it is currently advertised as an addition to existing vaccines. Eventually, it could be a complementing part of a regimen containing Cure Lab’s vaccine products.

Technology:

Vaccine adjuvant (CpG-containing DNA sequences, which stimulate Toll-like receptor (TLR) that is important for immune response). Influenza specificity:

No novel influenza antigen is involved. Dynavax utilizes known antigens, NP and M2e, which on their own are not sufficiently protective. Conversely, Cure


Lab developed a novel influenza antigen modified in a proprietary manner. Competition:

Dynavax is a solid adjuvant company. It possesses adjuvant product that do not compete with and potentially complement Cure Lab’s products. In particular, Cure Lab’s and Dynavax’s adjuvants act through different mechanisms, both of which are of interest. So, the companies may potentially collaborate or be acquired by the same pharmaceutical company.


Management

Cure Lab, Inc. with offices located in Boston and Los Angeles, brings together a team of internationally renowned scientists and business leaders, with a worldwide network of relationships within the scientific community. The team has been conducting a vaccine research program since early 2000. Cure Lab scientists contributed their intellectual property developed over decades of successful scientific research. In addition to the management team listed below, Cure Lab is currently in the process of executing Scientific Advisory Board Agreements with leading professors from Harvard, Boston University, Northeastern University, Tufts University. Stock options are issued to Scientific Advisory Board Members and key personnel. Alex Shneider, Ph.D. - Founder and CEO.

Dr. Shneider brings to Cure Lab over 15 years of experience in fundamental and applied biomedical research at institutions such as Boston University in collaboration with Harvard Medical School, the Graham Brown Cancer Center, the National Influenza Institute of Russia and the MIGAL biotechnology center, Israel. Alex is a member of the editorial board of International Reviews Immunilogy. He has been invited as a speaker and session chairman to leading international conferences on vaccine development. In the past, Dr. Shneider is the Founder and ex-CEO of MB Lab, Inc. Dr. Shneider is also a former project manager for Invention Machine, Inc. for its projects for Proctor and Gamble and Microsoft. He is also the author of a best-selling book on business analysis in Eastern Europe. Dr. Shneider received his Ph.D. in Life Sciences from Roskilder University, Denmark. Eugene L. "Gene" Froelich, CPA - CFO/COO.

Mr. Froelich brings to Cure Lab over 30 years of successful business experience as the former CFO and EVP of Maxicare Health Plans Inc., the former CEO of MCA Records Group, and the former COO and CFO at Wizshop.com. Victor Shifrin, Ph.D.- Director of Product Development

Dr. Shifrin brings over 20 years of experience in academia and the biotech industry. Prior to joining Cure Lab, he served as a Director of Pharmacology at Surface Logix and worked in various capacities at Scriptgen (Anadys) and Eisai Research Institute.


Victor also led Discovery Biology at CombinatoRx, where he studied the combinatorial effects of the approved drugs. Dr. Shifrin holds his Ph.D. in Cell and Molecular Biology from Harvard University, followed by postdoctoral training at the Harvard-affiliated Dana Farber Cancer Institute, as well as Brigham and Women’s Hospital, Harvard Medical School.


Collaborations

USA:

Harvard MIT Boston University Northeastern University University of Arkansas UCSD Europe:

Technical University of Munich Russia:

National Institute of Veterinary Virology and Microbiology Ivanovsky Institute of Virology Institute of Viral Preparations Institute of Gene Biology


CURE LAB’S COST SAVING OPERATING MODEL

Our research and development process delivers cost-efficient and high-quality results at a fraction of the cost of traditional methods. Cure Lab has identified and maximized three areas of development. They are: Molecular and cellular biology Cure Lab conducts its molecular and cellular biology in the US

It is highly efficient and inexpensive if carried out in the US. America provides the best R&D infrastructure due to an economy of scale; there are 140,000 labs in the world; 70,000 are in the US. Computational biology

Cure Lab conducts its bioinformatics in Germany where the highest quality bioinformatics group has been paid in shares of the company. Clinical and animal testing

Cure Lab possesses unique experience in conducting tightly controlled clinical testing. The highest quality and costeffective testing is in Russia and certain eastern European countries, assuring that clinical and animal testing cost substantially less than in the US.


OPERATING PLAN

Stages of Project/Product Development and Timeline

1. Finalizing Testing Of The First Universal Swine Flu Vaccine.

In the middle of a swine flu pandemic, the first universal antiflu vaccine may be the best first product to be delivered by the company. It does not require lengthy and expensive clinical trials. The company has the product ready, which it will test on pigs and optimize, if necessary.

6 MONTHS

2. Finalizing Preclinical Testing Of The First Flu Vaccine Prototype.

Utilizing mice and ferret influenza models, Cure Lab will optimize its vaccine composition and vaccination regimens. Alternative product variants (e.g. for intranasal or intramuscular injections) will be created.

18 MONTHS

3. Preclinical Toxicity Testing

Preclinical toxicity testing will be conducted according to the FDA regulations for biological materials.

6 MONTHS

4. GMP Manufacturing

All the materials for the vaccine testing shall be produced on the sub-contracted GMP facilities.

3 MONTHS

5. Phase I Clinical Trials.

Cure Lab will engage a consulting company experienced with assembling all the documents necessary to obtain FDA permission for the clinical trials. The company shall be engaged during the R&D phase, which would assure that all the experiments necessary for the FDA application would be performed and documented according to the FDA standards. The Phase I clinical trials will be outsourced to the CRO but supervised by Cure Lab.

9 MONTHS

6. Phase II Clinical Trials.

9 MONTHS

7. Licensing The First Cure Lab Vaccine

Negotiations with a big pharmaceutical company for licensing the first Cure Lab anti-flu vaccine are expected to be initiated immediately upon completion of task #3. Clinical trials are not a necessary part preceding the licensing process. Still, completion of the clinical experiment would greatly increase the value and price

8. Grant Writing And Re-Application Of Cure Lab’s Vaccine Technology To Other Infectious Diseases.

Cure Lab’s pipeline will be constantly extended not only by new versions of anti-flu vaccines, but also by re-application of Cure Lab’s technology to other viral diseases of high priority for medicine and biodefense (e.g. Hepatitis C or West Nile disease), and multiple viruses less important for the West (e.g. encephalitis) and viewed by the company as a secondary market.

Cure Lab will re-apply its technologies to develop therapeutic cancer vaccines. Since the potential for the flu vaccine is the highest, Cure Lab does not plan to detract its investment on these vaccines until it finalizes its influenza project. However, this research may be conducted in collaboration with universities and companies if supported by grants.


TIMELINE Universal swine vaccine $1 together with avian; 1.5M alone 0

6 months after investment

company value $50+M

Universal avian vaccine $1 together with avian; 1.5M alone 0

12

company value $50+M

Universal human vaccine $5M to reach Phase I, then financial support from BARDA and US government. Tox. Study GMP Manufacturing

Pre-clinical R&D 0

12

Initiate licensing negotiations

18

M&A at company value $100+M

Clinical testing Phase I

Phase II/III 27

M&A at company value $250+M

36

M&A at company value $500+M


MEDICAL VACCINE REQUIRED CAPITAL AND ROI

At the present time the company is seeking to raise up to $5M for development of the first universal human vaccine at the company’s pre-money valuation of $12M.

This money will bring the company to Phase I clinical trials. At this point the company will have to choose: A.

B. C.

License the vaccine out to a big pharma, generating $10-50M in upfront fees and assure 5-10% royalty participation. Undergo M&A generating approximately 10X ROI. Continue the project with an intention to further increase the values of the product and the company.

If (C) is selected; Cure Lab will aim to receive money for the clinical studies at BARDA (Biomedical Advanced Research and Development Authority). Cure Lab is currently engaged in dialog with BARDA. The authority has expressed its preliminary interest. The company valuation after completion Phase I of clinical trails is expected to be up to $250M. Finally, if the company chooses to continue through Phases II/III of the clinical trials, the company valuation would increase further and is expected to exceed $500M. Availability of the public funds, the cost of additional capital and available offers from the big pharma will be the factors determining the optimal exit strategy. For example, milestone based payment vs. M&A.


VETERINARY VACCINE REQUIRED CAPITAL AND ROI

The company is seeking to raise $2M at the company pre-money valuation of $12M to finalize both swine and avian flu vaccines.

If only one veterinary application (e.g. avian or swine vaccine) is of interest for the investor, then it would take $1.5M each (due to the significant overlap of the two projects). Licensing of either of the veterinary products will create a company valuation of at least $50M and will generate cash, which the company would re-invest into it medical program. Thus, veterinary application may become a low-risk rapid first step to the marketplace. The medical program bring the high ROI second step.

We would expect to receive $10-50M of immediate cash royalties equal to 5-10 % of the wholesale business.


Dr. Margaret Chan, director-general of the World Health Organization emphasizes the dangers of virulent swine flu mutations and the need for ongoing vigilance:

“For the first time in history we can track the evolution of a pandemic in real time. Influenza viruses are notorious for their rapid mutation and unpredictable behaviour. “All countries should immediately now activate their pandemic preparedness plans. Countries should remain on high alert for unusual outbreaks of influenza-like illness and severe pneumonia.” HIN1 Deaths History


The Cost of Influenza is Very High. The Spanish Flu outbreak of 1918 was the single deadliest event in U.S. history, killing over 600,000 people. Today, flu kills more people than AIDS. Flu is the single costliest disease for the U.S. The World Health Organization estimates that the financial burden to the U.S. economy is between $75 billion and $150 billion per year. The most recent SARS outbreak caused economic turmoil in global economic sectors and losses in the billions. According to economists from the Bank of Montreal, even the mildest form of epidemic threat from a newly emerging form of flu virus represents the potential of a global economic recession akin to The Great Depression of the 1930s. The Advisory Committee on Immunization Practices has recommended annual immunization for those who are considered at high risk of developing serious complications from influenza, despite the vaccination’s limited efficacy. A Pandemic is Long Overdue An outbreak of influenza pandemic takes place historically every few decades. Statistically, it will happen again soon.

Lee Jong-Wook, the DirectorGeneral of the World Health Organization (WHO) recently said that the bird flu “is the most serious threat facing the world”. Some top experts have also said that “we are closer to the next flu pandemic than ever and it is now knocking at our door.”

The most recent mutation of the virus, Avian Flu, alerts us to how quickly this virus can mutate and affect our current society. The WHO has predicted that a Avian Flu1. We are approaching the beginning of an outbreak. In December 2008, chickens in Hong Kong had been vaccinated against the H5N1 strain but officials suspected that the H5N1 strain had “possibly mutated2”. Major American media sources3 track the latest outbreaks as major international news. Avian flu has become a deciding factor on how U.S. citizens plan and execute their travels, as witnessed by a decrease in international travel during the most recent occurrence. In February 2003, the H5N1 strain jumped from birds to infect two members (father and son) of a family from Hong Kong who had traveled to southern China. The father died but the son recovered.

bird flu-originated pandemic could cause more than 100 million deaths worldwide if no According to the CDC, 20 to 50 solution is found. million people are infected annually in the United States alone, causing 70 million lost work days, 38 million lost school days, 36,000 average annual deaths, and the potential to cause as many as 500,000 deaths annually.

An outbreak of H7N7 in the Netherlands in 2003 resulted in one death and over 80 cases of mild symptomology in people. The vast majority of these cases exhibited conjunctivitis, and some of them displayed mild influenza-like illness4.

The first documented human infection with H5N1 occurred in Hong Kong in 1997. In that first outbreak, 18 people were hospitalized and 6 of them died.

1

http://www.who.int/csr/disease/avian_influenza/country/en/ http://www.medicalnewstoday.com/articles/132361.php http://www.latimes.com/news/nationworld/world/la-fg-birdflu4-2009jan04,0,3010223.story 4 http://www.phac-aspc.gc.ca/influenza/avian_qa-eng.php 2 3


In a Congressional briefing in March 2008, the RAND Corporation stated: “It's been forty years since the last influenza pandemic, which caused more than one million deaths. Not only is the world is overdue for another pandemic but the situation is ripe for one. A global influenza pandemic represents one of the most catastrophic threats to health, national security and economies around the world, and clearly a major challenge to the world's public health systems. Given the truly global nature of infectious diseases today, it is important for the U.S. to help other countries prepare for the next world-wide influenza pandemic.” Cure Lab’s Vaccine Can Prevent This Catastrophe A Universal Anti-Flu Vaccine Current anti-flu vaccines are strain-specific. They are developed to protect against a very limited number of viral strains (usually, three). An Existing High Risk of a Mistake. The seasonal outbreaks are often caused by strains other than those selected for vaccine. The Necessity for High Spare Capacity The strains, which are expected to dominate in the next season, will be identified shortly before the season starts. Thus, the manufacturing process cannot be distributed evenly The High Production Costs and Distribution Risks Strain-specific vaccines cannot be stockpiled and distributed in advance. Thus, it is extremely vulnerable to any sudden disruptions. Political Risks New strains appear in non democratic Eastern countries. These countries might restrict access to viral samples as an expression of their animosity towards the West. Reluctance to vaccinate Flu vaccines often miss their target since a large segment of population is reluctant to vaccinate. A universal flu vaccine would lessen these limitations. Cure Lab focuses solely on vaccines that are universal in nature. Cure Lab’s anti-flu vaccine can be manufactured, stockpiled and distributed in advance — and at reduced cost.

The NIH has awarded Cure Lab over $1M in Bio-Defense and SBIR grants for its influenza vaccine. Bio-Defense Applications indicate that the molecularly modified flu is an ideal candidate for use as a biological weapon. It is highly contagious as a human flu and deadly as bird flu. Because Cure Lab’s proprietary technology uses a mechanism of vaccination that is non strain-specific, Cure Lab’s vaccine is effective in protecting the global population against influenza-based viruses used as biological weapons.


Cure Lab’s Radical Answer to Current Flu Vaccines Current vaccines aimed against random viruses cannot target certain viral proteins. The vaccines are extremely stable and do not accommodate mutations. When a virus enters into a cell, the viral proteins make the infected cell a target for an immune response. Due to the fact that the viral proteins are almost identical across all influenza strains, a single vaccine can instruct an immune system to recognize and eliminate any infected cell, regardless of the strain from which the virus has occurred. Cure Lab’s Vaccine is Different Cure Lab’s unique anti-flu vaccine is based on the fact that certain molecular characteristics of influenza’s proteins are detectable on the exterior of the very first infected cells of the patient. Cure Lab’s anti-flu vaccine enables the body’s own immune response to kill the initially infected cells. Normally, these infected cells would then become “virus factories” within the patient’s body. Cure Lab’s vaccine effectively stops this process and ends the self-replication of the virus at the inception of the infection. Cure Lab’s Highly Efficient Hub Approach Our research and development process delivers cost-efficient and high-quality results at a fraction of the cost of traditional methods. Cure Lab has identified and maximized three areas of development. They are: A. Molecular and cellular biology It is highly efficient and inexpensive if carried out in the USA. America provides the best R&D infrastructure due to an economy of scales; there are 140,000 labs in the world; 70,000 are in the USA. B. Clinical and animal testing Cure Lab possesses unique experience in conducting tightly controlled clinical testing. The highest quality testing in Russia certain eastern European countries assure that they are performed at substantially less cost than in the US. C. Computational biology Cure Lab conducts its bioinformatics in Germany where the highest quality bioinformatics group has been paid in shares of the company.

Cure Lab’s pipeline will be extended from a universal anti-flu vaccine to vaccines against diseases of high priority for medicine (e.g.: Hepatitis C, West Nile Disease, HIV/AIDS) and Bio-Defense (lists A, B and C of biodefense pathogens) as well as many cancers.


Company Mission Cure Lab is a biotechnology company committed to the development of effective vaccines against infectious diseases and cancer. Due to the immediate threat of influenza pandemic, Cure Lab’s initial focus is on the development of universal vaccines against influenza for both medical and veterinary markets. The Move from Research to Development With advanced prototypes, Cure Lab is now in a late research/early product development stage. Proofs of concept:  Universal protection demonstrated both on mammals and birds.  Submitted as patents and kept as “know how.”  Published in respected scientific journals.  Presented at conferences.  Peer reviews – critical reviews by internal and external experts. Advantages of Cure Lab Vaccine  A radical departure from previous virology as one product provides protection against all strains, including mutations.  Significantly reduces the health and financial burden of repetitious annual vaccination.  Enables efficient stockpiling of the vaccine.  Eliminates the threat of an influenza-based biological weapon. Medical Market Biotech Business Model:  License the technology to a pharmaceutical company without involving Cure Lab in risky and costly FDA application and clinical trials.  A low risk/high reward on a modest $5M in investment  Potential licensing fees of $10-50M  Royalties of 5-10% could generate substantial recurring annual revenues Veterinary Market FDA approval not required. A less painstaking demonstration of safety, efficacy and regulation Poultry  Over 40 billion chickens in the world  Poultry is a major source of protein for approx. 80% of global population Pigs  Pigs may serve as a “mixing vessel” for bird and human flu viruses, with a resulting hybrid virus causing new pandemic. Domestic cats and dogs  Demonstrated and significant market in the developed world.


Alternative Applications for Cure Lab’s Adjutants Current vaccine manufacturers could use Cure Lab adjutants as the basis to re-patent their expiring patents. Anti-cancer vaccine developers are predominantly focused on tumor-specific antigens, which would be enhanced by Cure Lab’s adjutants. Other, non-influenza, anti-viral vaccine developers, including HIV, hepatitis C, West Nile, SARS are possible. Collaborations Harvard MIT Boston University Northeastern University University of Arkansas

UCSD Technical University of Munich (Germany) Russian Academies of Science Academy of Medical Science Academy of Agriculture


Cure Lab’s Time Line Towards a Vaccine Phase I: The initial funds raised would extend Cure Lab’s development of the initial vaccine over 18 months. At the culmination of this period of time, a vaccine for poultry would be available for licensing. Current time projections breakdown into six milestones. They are:

Design Product Candidates Months 1-6 $500K

Testing Optimized Lead Candidates on Birds Months 13-15 $100K

Testing Product Candidates on Birds Months 7-9 $100K

Optimizing Lead Mammalian Product Candidate Months 10-12 $350K

Patent Application Month 16 $100K

Licensing Months 17-18 $50K

The selection of poultry as the first application of Cure Lab’s vaccines is an important first step towards more robust and complicated anti-viral solutions. As mentioned previously in this presentation, avian flu is one of the most detsructive pathogens that is waiting to spread into a pandemic. With a massive pool of potential candidates, poultry represents both an easy and important target for Cure Lab’s radical anti -viral vaccination procedure.

It is estimated that at Poulty, and especially those species susceptable to avian flu, represent an important stepping stone in Cure Lab’s plans to expand vaccines. Additional funding rounds will allow the testing and development of mamallian and potentially human vaccination models.

any given moment, there are more than 200

For the present, poultry represents the highest potential return on investment. If vaccines can be produced, stockpiled and administered at pennies per dose, the potential market for the vaccine is both scalable and offers relatively quick retrun on investment.

billion chickens alive on the planet. As they are consumed at a high rate, any infected group of chickens has the ability to further a mutation of any virus without early detection.


213 245 1715


Online Content and Design A medium sized software company needed to update and clean up their online interface. Using comparative analysis and navigation, our solution provided the necessary content and design within four days.


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Security • Encryption • Acceleration

Secure Data: Wherever You Go Today’s data, like you, are always on the go. Whether you’re using Wifi in your own office, at home or at a coffee shop, you open your data to several points for it to be intercepted or worse.

mobile applications network applications

We’ve Got You Covered Network Intercept creates a patent-pending, secure and portable access solution that guarantees only the right people gaining access to your data. This mobile security makes sure that only those authorized can gain access to your internal web site while encrypting all data being sent to and from the individual’s computer.

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Rest assured you will be protected wherever you go with our portable products

News & Media Network Intercept nominated for RSA’s Innovation Sandbox Network Intercept attending the RSA conference More News >>

Mobile Applications Increased use of smart phones and PDAs allow data to flow freely wherever you are – and the threat of that data being compromised. Network Intercept prevents any data from falling into the wrong hands.

Network Applications Networks are the backbone of the Internet. They also open you up to a wide array of malicious code. Network Intercept stops the damage before it’s done.

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Market Research Examining complex technical information requires a solution that is at once detailed and streamlined. A recent study of media markets needed to analyzed, rewritten and presented.


CHAPTER 1 HOW DO ADVERTISING EXECUTIVES ASSESS THE IMPACT DVRs HAVE ON TV AND AD WATCHING? In this chapter we explore where advertisers and ad agencies get their information on DVRs from and what they think about that information. Do they think they have enough information or the right information? Are they confident about their information? We also discuss in this chapter the information exchange between advertisers and their agency. Whom do advertisers rely on to get information on DVRs? Are the advertisers happy with the information they from their agencies? Who is the better informed party? Do advertisers and their agencies agree on who has better information? Next this chapter lays out how advertisers and their agencies assess the current and future penetration of DVRs. Is there a difference between the assessment of the advertisers and that of their agencies? And how does the assessment of the advertising executives differ from the data published by industry experts and observers (Kagan, Forrester, eMarketer, analysts at investment banks and more). Lastly, the chapter discusses what advertising executives think about the impact of DVRs on TV consumption (in total and live vs time shifted) – and most importantly – on ad skipping behavior. 1. What Information Exists on DVRs and Are Advertising Executives Confident They Have the Right Information on DVRs? In recent years an increasing amount of information has become available on DVRs and the impact they have on TV watching. Numerous reports exists on for instance on the current and expected penetration of DVRs, the amount of live (versus time-shifted) TV watching and the ad skipping patterns in time shifted mode. Companies like Nielsen, TiVo and TNS Media Research offer increasingly granular data on DVRs and the impact the have on viewing habits. Using a sample size of 3,000 homes, Nielsen for instance has incorporated time shifted viewing in its rating reporting (live-plus-same-day, D+3 and D+7 ratings) and reports on a minuteby-minute basis. With this rating information the impact of DVRs can be assessed and analyzed by day part, by program genre, by season, by population group and much more. Through a partnership with Information Resources Inc., TiVo with its IRI TiVo Consumer Insights Suite provides marketers with measures on a second-by-second basis on TV viewing and DVR usage (sample size: 20,000 homes) and relates that information to product purchases.


With this abundance of information on DVRs and the impact they have on viewing and purchasing patterns, would one not expect that advertising executives feel confident they have what the information need to deal with the DVR reality? Strikingly, overall, neither the advertisers nor their ad agencies seem to be confident they have information needed to make adjustment in the advertising strategy . Of all the respondents, nearly 75% say they somewhat or completely disagree with the statement that they have all the relevant information about DVRs and the impact they have on TV advertising. The difference in that respect between the advertisers and their ad agencies is small (68% versus 77%). Remarkably, nearly one fourth of all respondents state that they completely disagree with the statement they have the relevant information about DVRs and the impact they have on TV advertising. The advertisers are even less confident than their agencies that they have the right information on DVRs. Nearly one third of the advertisers (versus nearly one fifth for the ad agencies) completely disagree with the statement have the relevant information about DVRs and the impact they have on TV advertising. Figure 3 To what extent do you agree/disagree with the following statement: " I have all the relevant information about DVRs and the impact they have on (TV) advertising"

Advertisers Ad Agencies Total

Completely Somewhat Somewhat Completely Disagree Disagree Agree Agree Do not know 30% 47% 16% 3% 4% 18% 50% 26% 6% 0% 23% 49% 22% 5% 2%

Number of observations: Advertisers: 73, Ad Agencies: 112

If so much information is available, why then is the advertising community not more confident they have the information needed to make adjustments in their advertising strategy? Though there is indeed a lot of information available, there is however not much - and sometimes no - data available to answer some key questions that arise from the increased DVR penetration. Examples of such key question include: - Which advertising format (informative vs entertaining , bare bone vs elaborate, etc) is least likely to be skipped?


-

-

What are the best practices in responding to the DVR phenomenon: re-shuffling TV advertising expenditure, re-allocating TV advertising expenditure to other advertising format? Which alternatives to the 30 sec spot are most attractive: sponsorships, pop-up ads, product placement etc. How are DVRs expected to influence CPMs?

This report tries to answer some of these questions. Though overwhelmingly neither the advertisers nor the advertising agencies think they have the relevant information about DVRs and the impact they have on TV advertising, a majority of both the advertisers and the agencies - surprisingly - thinks that their counterpart is well informed (and better informed than themselves). It seems that both parties have a higher opinion about their partner’s information than about their own information. Three quarters of the advertisers (somewhat or strongly) disagreed with the statement they have the relevant information about DVRs to make strategy adjustments. Yet, more than half of the advertisers (somewhat or totally) agree with the statement that their advertising agency is well informed about the DVRs and the impact they have on TV advertising. Figure 4 To what extent do you agree/disagree with the following statement: "My advertising agency is well informed about DVRs and the impact they have on TV advertising" Respondents: Advertisers Completely Somewhat Somewhat Completely Disagree Disagree Agree Agree Do not know 11% 24% 38% 15% 13% Number of observations: 80

The observations for the ad agencies mirror those for the advertisers. More than two thirds (68%) of the ad agencies did not think they had the information needed to adapt the advertising strategy to the new DVR reality. Yet, almost 60% of the ad agencies think their clients are well informed about DVRs and the impact they have on TV advertising.


Figure 5 To what extent do you agree/disagree with the following statement: "My clients are well informed about DVRs and the impact they have on TV advertising" Respondents: Advertising Agencies Completely Somewhat Somewhat Completely Disagree Disagree Agree Agree Do not know 11% 28% 35% 23% 2% Number of observations: 124

Overwhelmingly neither advertisers nor their ad agencies think they have the data to deal with the increased use of DVR. Surprisingly however, advertisers feel confident their agency have the required data and vice versa. So where do the advertising executives get the information from on DVRs – information that they largely consider inadequate to formulate a response to the new DVR reality Many advertising agencies experience that the DVR issue is being debated by their clients. A big majority (69%) of ad agencies state they get inquiries from their clients about the impact of DVRs on TV advertising from their clients. Figure 6 To what extent do you agree/disagree with the following statement: "My clients are inquiring about the impact of DVRs on TV advertising" Respondents: Advertising Agencies Completely Somewhat Somewhat Completely Disagree Disagree Agree Agree Do not know 10% 19% 32% 37% 2% Number of observations: 124

While advertising agencies get inquiries on DVRs from their clients, less than 40% of their clients say that their advertising agency is a source of information on DVRs (the impact of DVRs on TV advertising, ways to deal with issues created by DVRs and best practices in dealing with issues created by DVRs). About half of the advertisers express even disagreement with statements that imply their advertising agency is a source of information.


The lack of perceived support does not only concern the information exchange between the ad agency and its clients. It also concerns support in formulating a response to the new DVR reality. Less than 40% of the advertisers state their advertising agency helps them find way to deal with the issues created by DVRs. Similarly, only one in three advertisers thinks their ad agency provides them with best practices in dealing with issues created by DVRs Figure 7 To what extent do you agree/disagree with the following statement: Respondents: Advertisers Completely Somewhat Somewhat Completely Disagree Disagree Agree Agree Do not know I get information about DVRs and the impact they have on TV advertising from my advertising agency 23% 24% 29% 11% 14% My advertising or media buying agency helps me find ways to deal with issues created by DVRs 19% 29% 26% 14% 13% My advertising agency or media buying agency provides me with the best practices of dealing with the issues created by DVRs 21% 34% 23% 11% 11% Number of observations: 80

In short, the overwhelming majority of the advertisers (77%) do not think that they have the information needed to formulate a response to the DVR phenomenon. Advertisers and their agencies do exchange information on DVRs but less than 40% of the advertisers see their agencies as a valuable source of information or a source of help in formulating a response to the increased of DVRs


Business Proposal Complex documents require a strong reliance on structure and clear, precise communications between the client and the producer. The client also had to present this proposal to Japanese audiences, which required social etiquette and research. This long-form business proposal shows precision, creativity and a highly developed structure.


EXECUTIVE SUMMARY

Penmen Elite LLC is an integrated entertainment company producing film, print and gaming products. We are the only entertainment company to implement ecological zero-impact production processes. We have selected Osaka, Japan as our Asian base due to its highly skilled labor, existing high tech industries, affordability and distribution infrastructure. We have extensively researched the Kansai region and local markets. Penmen Elite will establish full-service production facilities in Osaka and employ local labor, talent and administrative staff. We intend to fill a void in Osaka’s current market that lacks a viable, productive and successful entertainment production company. We are a holistically ecologically friendly company that will use only renewable resources, including energy in our productions. We will transparently share knowledge and processes with the Osaka community at large. Partnering with Osaka universities to deploy alternative energy We have partnered with several organizations to insure the success of our endeavor. Unlike other entertainment companies in Japan, we intend to create a hybrid product that is uniquely Japanese and American. Two current productions are underway: enfant TERRIBLE and Green Gender. Both productions use our unique “concurrent production” model that eliminates the idle time common in entertainment production and assures consistent, steady revenue. Once established, the need for outside capital is obviated. We know that we can contribute to Osaka and the Kansai region’s economic and environmental progress in realistic, market-driven ways that welcome Japan’s culture, society and artistic tradition. We are excited by the possibilities of developing a truly new type of entertainment company that incorporates the best of both cultures and the innovation of tomorrow’s technology.


WHAT IS PENMEN ELITE Essentially, Penmen Elite is constructed as the world’s first “Creators’ Guild;” a collection of creative professionals who work together to turn thoughts into tangible products: books, video games and filmed entertainment. The financial benefits of the projects created within this guild are used to further finance future projects. By using this structure, we are extending the definition of “renewable resources” outside of natural construction materials and energy. We are, indeed, extending the current model of renewable sources to our own creativity and people.

An integrated entertainment production company producing film, video gaming and publishing.

Penmen Elite LLC is Hollywood’s only environmentally sound entertainment production company. We have committed ourselves to “close the loop” ecologically as well as economically. We have created the industry’s most comprehensive ecological standard, ECO-ERA™ to share our best practices with Osaka and the world. By using renewable resources, creating local jobs and developing alternative energy sources, we have created a holistic, inclusive and responsible entertainment company – the first of its kind anywhere. THE PENMEN ELITE CREATORS’ GUILD By definition, a guild is an “association with common interest, e.g.: of merchants or artisans” We extend that definition to include both the Japanese and American local community of creative artists and trades people. We will be able to integrate Japanese sensibilities, its long history of self-expression and an advanced aesthetic. By creating a hybrid guild that includes members of both cultures, our productions will reflect the unique qualities that can only develop in a guild. This guild structure also maximizes creative content since the individual artist retains rights to their work. Our artists receive financial support and cooperative guidance from the guild to develop their material and realize profit by relying on our proven successes in the video gaming, publishing and film production processes. The adoption and furtherance of best practices in all fields is a primary concern. As we expand and learn the traditions and particularities of Japanese culture, we hope to integrate our years of professional experience to create a unique entertainment production process.


PENMEN ELITE DOES NOT STAND ALONE

Unlike other entertainment companies located in Japan, we will fully incorporate the best that Osaka offers with our experience as an American entertainment production company We seek to construct a truly new type of entertainment company, one that does not simply shoot on location and then distribute to other markets. We seek to develop Osaka as a destination for entertainment of all forms, with the best of its vibrant community. In order to achieve this goal, we look to Osaka for assistance in a few, critical areas to ensure our success. Chiefly, they are: PERMISSION

PERMITS

REGULATORY APPROVAL

INVESTMENT

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In order to achieve our goal of an environmentally “zero-impact” company, we need one, critical component from Osaka – one that you already posses: alternative energy. Osaka’s universities, corporations and government are highly advanced in creating technology for zeroemission energy sources. Although this groundbreaking work has drawn global attention, it lacks a realworld, large-scale application. Penmen Elite and ECO-ERA™ is that real-world application.


We seek to work with Osaka’s research and development teams in corporations, universities and government agencies to bring these forms of alternative energy to fruition by employing them in every phase of our production. By constantly modifying, testing and stressing each form of alternate energy, we can aid Osaka’s efforts in delivering the world’s first large scale industrial use of alternative energy. LOCAL ALLIANCES As a demonstration of our eagerness to work with the existing industrial base of Osaka, we have already started several conversations with local and national organizations. They include: IBPC Osaka Investment Promotion Center, which continues to guide us and serves as a trusted resource. We are grateful for their introduction to the Japanese Chamber of Foreign Affairs. JETRO has been invaluable in helping us construct these preliminary plans. The American Chamber of Commerce in Japan (“ACCJ”) has similarly been a key source of information and guidance. Additionally, we have begun relationships with the Osaka Business and Investment Center (“OBIC”) and JAC Recruitment. The architectural firm JFE has graciously allowed us to understand current green building trends in Osaka.


OSAKA IS PENMEN ELITE’S CHOICE We seek a progressive business environment: Osaka. Osaka, Japan’s center of technological innovation is a natural choice for Penmen Elite’s Asian production facilities. More than 100 international companies have a major presence in the Kansai region. The diverse economic sectors of Osaka and the Kansai area create a stable and efficient marketplace. There are many reasons why Penmen Elite seeks to locate its facilities in Osaka. Penmen Elite strives for technological and creative excellence. So does the business community of Osaka. We believe that by situating ourselves among these leading businesses, we can tap into the local market and enhance the private sector of Osaka’s historical and current-day allure as a center for Japanese business. The Kansai region, which includes Osaka, the country's third largest city, is a market of over 25 million people. The region boasts a Gross Domestic Product (“GDP”) larger than Canada’s and accounts for 19 percent of Japan's total GDP and 20 percent of Japan's foreign trade. Twenty-one Fortune 500 companies have their headquarters located in the Kansai region.1 MORE THAN DATA Osaka represents a unique opportunity to bridge two vibrant, fertile creative societies: Japan and the United States. By implementing our unique approach in interweaving both cultures, we believe that we can accomplish a creative product never seen before… a true hybrid of aesthetics. We believe that Osaka is ready to take its place among the great entertainment capitals of the world. And the figures attest to Osaka’s unexplored potential as a production hub for local and international companies and investment. According to the Osaka Film Council, it has assisted in the production of approximately 300 films and television productions since its founding in February, 2000.2 This translates as only 33 productions per year occurring in Osaka. As a comparison, over 1,300 feature films (excluding video productions) have been filmed in Japan since 2001, as cited by J-Pitch, The Japanese Film Database. This number represents an average of 145 feature films per annum – nearly four times the production rate of Osaka over the same period of time.

LOCAL PERSONNEL Penmen Elite seeks to not only grow Osaka’s position as a leading entertainment production center, but seeks to do so by using Osaka’s local resources and talented labor pool. Since we will be developing a large entertainment facility in Osaka, we require a broad and deep level of labor and personnel. Osaka’s highly sought-after labor force would make this possible.

1 2

According to the Motion Picture Association of America (MPAA), feature films (the type Penmen Elite plans to produce) cost an average $102.9 million. A large part of that money is used to hire local production labor, directly and indirectly through business services, administrative support and talent.

SOURCE: Foreign Affairs and International Trade Canada SOURCE: Osaka Film Council


Osaka contains an impressive labor force that is supported by numerous vocational schools that provide advanced training in industry, commerce, medicine and various other fields. Seven universities, eleven junior colleges and 162 specialty training schools complement the well-respected Osaka City University.3 Absent from this impressive list is a sustained and viable facility for the entertainment arts. Penmen Elite seeks to provide that facility. We plan to engage a broad labor base accustomed to working in high technology fields such as IT, electronics and pharmaceutical manufacturing. We are confident that we will find the personnel that will make Penmen Elite a success. LOCAL MATERIAL As a demonstration of our commitment to our new locale, we intend to use only resources, such as construction personnel and raw materials sourced locally. We will select local products wisely, using renewable materials and ecologically safe practices. Instituting labor practices that benefit local workers ensures our success. Osaka’s worldwide reputation as a leading green city further allows Penmen Elite to tap into an attractive existing structure and social environment to produce high quality productions with minimal-to-no impact on the existing ecosystem, all without requiring energy from the Osaka power sources.

LOCAL BUSINESS COMMUNITY By becoming one of several highly successful businesses located in Osaka, we believe that we can contribute to the local business community by forming alliances and strategic relationships with the existing industrial base. The interaction between companies would further our goal of integrating wholly with the Osaka community.

We are proud to work with Miki Shoten, a leader in the recycling of metals and industrial waste, and a business local to Osaka. As Japan’s leading industrial recycler, Miki Shoten can implement effective means for Penmen Elite to use high quality recycled material. We will also engage Miki Shoten at the end of our production to ensure that our materials are recycled again or disposed of properly.

LOCAL PRODUCTION – WORLDWIDE DISTRIBUTION Penmen Elite’s products are both creative and industrial, and as such, depend on the existing infrastructure of Osaka. The highly developed distribution, transportation and marketplace mechanics make Osaka an attractive choice for us. But we also look outside Osaka and to Japan in general. Penmen Elite’s products would proudly be shown to be a Japanese product, enhancing Japan’s – and Osaka’s – position as a leader in innovation. CLOSING THE GREEN CIRCLE The creation of entertainment content will employ local technicians, electricians, craftsmen and other production professionals. We hope to “close the circle” of environmental stewardship by including these techniques: responsible resource use, alternative energy production, integration of the local community and using local personnel to renew economic, as well as environmental sources.

3

SOURCE: Japan External Trade Organization (JETRO)


PROPOSED SITE FOR PENMEN ELITE FACILITIES Site Data and Location


PENMEN ELITE IS A RESPONSIBLE COMPANY We understand that any corporate venture incurs risk. We are prepared. Unique challenges face us in establishing a viable and successful entertainment production company in Osaka. We have conducted a thorough analysis of the Kansai region and still believe that it is the best possible location for our facility. But we are also realistic and have identified several potential risks that we must address. LACK OF AN ESTABLISHED ENTERTAINMENT MARKET SEGMENT While Osaka does host several small entertainment-related companies, the Kansai area in general does not posses a robust and sophisticated entertainment economy. Penmen Elite will need to address this issue when calculating costs of its productions. Items such as film processing, editing, color correction,, set construction and industry-specific trades may need to be either outsourced or developed. (MORE RESEARCH NEEDED: INDUSTRY BREAKDOWN)

EDUCATIONAL TRADE SHORTAGE Although Osaka’s educational system is very well developed, it lacks facilities to train staff for the highly specialized trades and jobs related to the production of our products.

THE GAP BETWEEN JAPAN’S ENVIRONMENTAL FACT AND ITS PERCEPTION In the 2006 environment annual report,4 the Ministry of Environment reported that “the major issues facing Japan” are global warming and preservation of the ozone layer, conservation of the atmospheric environment, water and soil, waste 4

Osaka contains an impressive labor force that is supported by numerous vocational schools providing advanced training in industry, commerce, medicine and various other fields. Seven major universities, eleven junior colleges and 162 specialty training schools complement the well-respected 1 Osaka City University. Absent from this impressive list is a sustained and viable facility for the entertainment arts. Penmen Elite seeks to provide that facility.

SOURCE: Annual Report on the Environment in Japan 2006, Ministry of the Environment. For additional data, please see addendum


management and recycling, measures for chemical substances, conservation of the natural environment and the participation in international cooperation. In addition, Japan’s water quality is of prime concern domestically, and international concern is focused on Japan’s use of tropical hardwoods, which is among the highest in the world.5 Japan’s own ratings system for ecological construction methods (CASBEE) stands alone in that it has not been adopted by any other country in the world. CASBEE is generally seen as insufficient and incapable of achieving comprehensive standards that have been established by the two globally accepted standards: LEED and BREAMM. Japan faces serious ecological problems, many of which have not been widely acknowledged. There is a concerted effort to address these issues, and Penmen Elite can assist with real world, real-time solutions.

5

NOTE: See addendum article no. 1


PENMEN ELITE IS A GENEROUS COMPANY We offer Osaka a new way to achieve environmental sustainability Penmen Elite LLC is Hollywood’s only environmentally sound production company. We have committed ourselves to “close the loop” ecologically as well as economically. By using renewable resources, creating local jobs and developing alternative energy sources, we have created a holistic, comprehensive and responsible entertainment company – the first of its kind anywhere. ENVIRONMENTAL OPPORTUNITIES Osaka has a long tradition of being on the leading edge of ecologically mindful construction. Historically, Japan, and Osaka specifically, pioneered the concept of the “Sustainable Society” during the Edo Period (1603-1867)6. Over 400 years ago, Japan understood the wisdom of sustainable living by employing progressive uses of technology, energy, resource management, and recycling systems. We see our efforts of creating a complete model of sustainability and renewable resources as a continuation of the ideas put forth four decades earlier by your very community. One of our greatest efforts is to use alternative energy in addition to eco-friendly materials, tools and equipment in all Penmen Elite projects; motion picture films, books, and other affiliated works. Osaka’s research into alternative energy can be immediately applied within our productions, with valuable, realworld feedback and efficiency improvements. ECO-ERA™ The ecological cost of entertainment production is high. Demand for wood, energy, metals and other, exhaustible resources is considerable. Japan similarly faces significant challenges in its demand for non-renewable resources. We propose a new standard: ECO-ERA.™ Created as a synthesis of Japanese-American ecological criteria, it will be the first recognized certification program specifically for entertainment production and its related industries. VIABLE EMPLOYMENT FOR OSAKA STUDENTS Since we are primarily a creative company, we plan on offering a viable and sustained opportunity to local artists to contribute to Penmen Elite in several forms. Employment in entertainment and its related fields is difficult to find in Osaka’s small entertainment industry. By offering a centralized production facility, we can bring Osaka’s talented artists together while generating substantial employment. While artists are essential to a creative company, we also require the skills of many professionals and artisans, such as screenwriters, production crews, corporate management, advertising, administrative support, post- and pre-production professionals. Indeed, this is only a short list of positions we would need to fill to succeed. Penmen Elite requires talent, but we create opportunity to express that talent – locally.

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SOURCE: Japan for Sustainability


PENMEN ELITE AS ENVIRONMENTAL PROTOTYPE “We must focus on more than just saving energy. It is time to take a closer look at materials efficiency and resource scarcity” – German Federal Environment Agency President Troge

The ecological cost of entertainment production is high. Demand for wood, energy, metals and other, exhaustible resources are considerable. Japan similarly faces significant challenges in its demand for nonrenewable resources. Together, the business community of Osaka and Penmen Elite can effect real environmental change – immediately. Other issues that endanger Japan’s environment  Acidification of its water that rivals American and Indonesian statistics  A fresh water withdrawal rate that is twice that of Germany’s  1.6% of Japan’s GDP is spent in controlling pollution, greater than Canada’s and Australia’s  Japan creates more nuclear waste than Germany and South Korea combined  An ecological footprint that is disproportionate to its size: larger than South Korea and double that of Malaysia and Argentina  Japan uses nearly four times the amount of fertilizer than the United States  1.2 million kg of organic water pollution is generated per day; twice the amount of Brazil and nearly four times the rate of the United Kingdom

Economically, any way to reduce CO2 emissions; to increase re-use of materials, to recycle; to educate, persuade or influence; to make a green profit by leveraging an established green business model … simply makes sense. Further, prospects of a possible implementation of “cap and trade” regulations make ecologically-sound action an imperative for both nations and industries. A NEW GREEN STANDARD: ECO-ERA™ Worldwide, three generally accepted standards have been adopted to measure ecologically sound construction practices: LEED, BREEAM and CASBEE. 

LEED (Leadership in Energy and Environmental Design) is a US-based

JAPAN’S URGENT NEED FOR GREEN PRODUCTION Japan holds global attention for its environmental policy. The Kyoto Protocols, which have set worldwide ecological goals to achieve environmental balance, are widely adopted. Research at Japan’s, and specifically Osaka’s, universities and industries promise new ways to produce energy without harming the planet. There are, however, many obstacles that Japan must overcome. As the world’s 2nd largest economy, its CO2 emissions are ranked 4th worldwide – slightly less than Russia’s, but above India’s.

Penmen Elite is in the position to enact cutting edge green technologies. We can also leverage our knowledge and distribute it through entertainment. As a producer of mass entertainment, we possess the ability to effectively persuade and influence entire populations. The term “carbon footprint” has become common. We redefine this term and propose: “influence footprint.”

While our primary focus is to entertain, we can, with your help, become the first entertainment company that can directly impact global energy use, enable consumers to identify eco-friendly products and finally, to provide a realistic, real-time way to achieve ecological balance.


organization, administered by the US Green Building Council. It encompasses more than 14,000 projects nationwide and in 30 countries worldwide covering 1.062 billion square feet (99 km²) of development area.7. It is generally accepted worldwide as the highest certification of energy and resource use. 

BREEAM (BRE Environmental Assessment Method) has been adopted as an ecological standard by a smaller, but substantial number of countries – and has become the generally accepted European standard. To date, the energy efficiency of more than 100,000 homes, schools and public buildings have been assessed using BREEAM.8 Note that “assessment” does not mean implementation in this scheme.

CASBEE (Comprehensive Assessment System for Building Environmental Efficiency) is the standard employed solely by Japan to insure green practices in future construction. The most current data available shows that nationwide, 2,011 submissions were received covering 31,000sqm. Within Osaka, 254 submissions were made, affecting 5,000sqm9. As of December 2007, only 23 buildings had been officially certified.

None of these predominant standards are specific to the entertainment industry, nor do they address the industry’s particular procedures. Penmen Elite’s own ecological standard strives for a comprehensive, industry-specific standard to embrace production and ecological stewardship. Taking the best elements of each of the previously mentioned global standards, we plan to implement ECO-ERA™ in all of our projects and to transparently share it with the Osaka business community. As an example, our standard will be immediately visible; our current film production enfant TERRIBLE will serve as a showcase of Penmen Elite’s ecologically based methods and will instruct other production companies to be exemplary models of the future of ”green entertainment.” We intend to share this new standard with the entertainment industry and have taken solid steps in that direction with several national and international groups. We are currently in conversation with Greening The Screen, the Environmental Media Association and several other established organizations. As we affiliate with existing organizations, we unite in a momentum to cement established best practices. The goal of a transparently green entertainment industry benefits everyone. It is the goal of Penmen Elite to stand beside other businesses and organizations as we collectively find answers to the ecological crisis. More information about our affiliates and alliances can be found in the “PARTNERS” section of this presentation. EXPANDING JAPAN’S ENVIRONMENTAL REACH Economically, Japan has wisely chosen to expand its alliances throughout Asia, in addition to its strong ties with America. Japan has created and fostered the strongest economic alliances in Asia with countries as diverse as India, Australia, Thailand, the Philippines, China and South Korea as a partial list. As witnessed by the “Framework for Comprehensive Economic Partnership between Japan and the Association of Southeast Asian Nations,” signed in Bali, Indonesia on 8 October 2003, Japan has entered into several high-profile economic agreements throughout Asia.

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SOURCE: US Green Building Council SOURCE: BREEAM 9 SOURCE: CASBEE 8


Japan’s forward-looking economic policy cemented one of the most ambitious economic alliances in Southeast Asia with the “Economic Partnership Agreement between Japan and the Kingdom of Thailand.” As stated in the Agreement, Japan is “convinced that stronger economic linkages between (nations) would provide greater opportunities, larger economies of scale and a more predictable environment for economic activities (…) for Japanese and Thai businesses (…)”

AFECT PROJECT As a demonstration of how Penmen Elite can add value to these existing agreements, we have sponsored the construction of a medical clinic in Chang Rai Province in Thailand. In association with the local Akha Association for Education and Culture in Thailand (AFECT), Penmen Elite hopes to improve the lives of the native hill tribes in Thailand. Approximately 63,000 Akha tribe people live a rural existence in Northern Thailand. Mostly cut off from mainstream society for their 1,500-year history, their lives and culture are being radically changed in the rapid economic and cultural shifts taking place in the region. Without access to clean water, medical attention or education, the tribe is in danger of extinction. Working with the local community, Penmen Elite has sponsored the construction of a community medical facility. Two principles of Penmen Elite’s staff have already completed a two-week volunteer campaign to better understand how we might help assist the indigenous people. A forthcoming book, based on this experience, will be a Penmen Elite project. By employing Penmen Elite’s “closed loop” philosophy of using local labor, renewable resources and alternative energy in the construction of this facility, we plan to demonstrate that our business plan is scalable and sound on a micro- and macroeconomic level. Penmen Elite intends to increase value to Japan’s existing global treaties and economic agreements throughout the region and the world. It is vital to us that any addition to existing agreements be beneficial to both parties and that our contribution be modular and be seen as an addition, not a revision to, the original alliance’s intent.

OSAKA’S CONTRIBUTION TO THE ENVIRONMENT – AND THE WORLD (DISCUSS HOW WE ARE GOING TO HELP IN ALT ENERGY - NAMES OF UNIVERSITIES?) Working with established Japanese research into alternative energy, Penmen Elite can serve as more than a testing bed. We will actively refine and add to current research models. By using this jointly developed energy source, we can demonstrate Japan’s, and specifically Osaka’s commitment to green energy through its existing alliances with other nations. This real-world application can serve as a model for Japan’s existing and future trade agreements. Together, we can show the world a better way to produce goods, use energy wisely and demonstrate how industries and governments can effectively work together to improve our environment.


PENMEN ELITE’S ENTERTAINMENT PRODUCT Creating great art can be both green and profitable. Penmen Elite’s market strategy is simple. We develop compelling conventional and edgy entertainment strategically marketed as a mainstream product. For example, a best selling video game may convert to other forms of media. Great stories can overcome the boundaries of different media formats. AN OVERVIEW OF CURRENT PROJECTS enfant TERRIBLE is the working title of a novel written by the talented writer, Scott Tomasso and his brother, Chad Tomasso. Loosely inspired by German writer Hinreick Hollfman’s popular book, Struwwelpeter. An interview with the filmmakers can be seen at: http://www.tobyjbrown.com/ET_2minRev1.mov In reference to the adapted novel, currently in pre-production, the film is designed as a visually stunning experience on par with 2006s Pan’s Labyrinth, but with an additional twist suggested by the compelling thriller Se7en. Our preliminary marketing strategy includes a release date strategically placed after Disney’s release of Alice in Wonderland. This has the potential marketing power of converting the hype of a massive Disney marketing machine into a tactical advantage for Penmen Elite. To demonstrate our idea of how we will work within the Japanese entertainment industry, we have already developed the following marketing model for Green Gender: GRAPHIC NOVEL Sales of graphic novels in the US and Canada generated $395 million in 2008.10 In addition, sales were up 17% over 2007. Sales of graphic novels in general bookstores continued to grow faster than in comics shops. Bookstores generated $265 million in sales in 2008, compared to $165 million in sales through the comics shop market (also known as the direct market). Libraries represent $25 million in sales. We hope to continue this trend with a graphic novel lead in to the film, Green Gender, which we believe will generate between $50,000 to $75,000. VIDEO GAME Now in pre-production, Green Gender, the home video game, will be our debut production in Japan. Although significant market research does not exist for this market, we do understand our competition and can extrapolate market information from those numbers. The video game sector will remain one of the above-average growth segments of the global entertainment industries through 2011. Global spending in this sector is set to exceed music spending this year, according to consulting firm PricewaterhouseCoopers.11 A video game tie-in with the film and graphic novel is merely good business sense. 10 11

SOURCE: Annual report on the market delivered by ICv2 CEO Milton Griepp. SOURCE: MSN Money.com


PENMEN ELITE’S METHOD TO CREATE A SUCCESFUL VIDEO GAME Most games are created to augment a film’s profits. Many of these games fail because they have no continuity with the film. At Penmen Elite, the same team that works on the film develops all of its video game titles. We ensure continuity and a better consumer experience, thus increasing consumer satisfaction and sales. We project 250,000 to 500,000 game units sold with a well-received film release. 75,000 to 125,000 units sold would be a standard and acceptable success for the Green Gender video game. FILM: Plans to start pre-production of the Green Gender motion picture film in the summer of 2011 will require that we compete with films with levels of special effects and marketing that blanket major markets due to the competitive nature of our release date. With this in mind we do not believe ticket sales of $120 million are unreasonable. Secondary markets, such as international DVD sales will contribute to revenue, as will ancillary distribution markets. PENMEN ELITE’S UNIQUE PRODUCTION METHOD Our production model is revolutionary. Traditionally, the economics of the entertainment industry do not follow traditional fiscal development behavior. Since entertainment products (films, video games and books) require especially long maturity periods, enormous amounts of capital are required with the hope of profit; only to be realized much later upon their release. Revenue from entertainment comes at the end of a very long process, often resulting in economic distress. Penmen Elite has found a way to mitigate this capital-intensive process. Simply put, we have reversed the process. To use our two, current productions as an example, we have devised a way to produce revenue from our products immediately. CONCURRENT PRODUCTION Films require approximately twelve to 18 months to reach release. Video games require double that time. Our procedure to release our features follows a simple formula: 1. enfant Terrible begins as a book. 2. Pre-production of the film and home video game begin simultaneously. 3. enfant Terrible, the film is released 4. The enfant Terrible home video game enters into post-production. The momentum created by both the book and the film creates a built-in audience for enfant Terrible, the video game. We synchronize this production process with our twinned project: Green Gender. 1. Green Gender begins as a home video game. 2. The Green Gender graphic novel is published. 3. Pre-production of the Green Gender motion film begins. 4. Green Gender the home video game is released as the motion picture enters post-production.


The benefits of this structure are numerous. At every step, a revenue-producing component contributes to Penmen Elite’s resources. We are, in essence, guaranteeing a built in audience for each phase of production. THE PENMEN ELITE PHILOSOPHY There are indeed some successful Japanese franchises that have been converted for North American audiences such as: YU-GI-OH! and Pokemon. Many others have failed. This is primarily due to a lack of research aimed specifically at:   

Matching material specifically targeted for certain audiences. Tracking popular trends contained in targeted material. Utilizing and refining the product by using innovative upgrades via visual or interactive content.

Our creator’s guild guides the vision and quality of our projects, which produces a consistently innovative product. It is extremely important to us that our artists, who are passionate about their work, are effective contributors to our success. At Penmen Elite, we focus on developing marketable products as mindfully as we regard the environment. FINANCIALS OF PRODUCTIONS


OSAKA: ASIA’S NEW ENTERTAINMENT CAPITAL A creative society merged with the environment TAX REVENUE PROJECTION SELF SUSTAINABILITY SPONSORSHIPS We know of no better way to put our thoughts and intentions into action than to support the varied film festivals and cultural events that take place annually in Osaka. Since Osaka is well known for its robust performing arts, music and matsuri, we have the opportunity to sponsor many festivals. Of immediate interest to us would be the Annual Osaka Asian Film Festival in March and the Osaka Cinema Festival in the same month. The various universities, organizations and community groups that support the arts and culture will be actively solicited so that we can consider sponsorship. Traditional Japanese Holidays that we wish to join in celebrating with our new community include:   

Shoryo-e Midosuji Parade Shitennoji Temple Wasso

Finally, to ask the community to help us in our success, we politely request to participate in the Toka Ebisu Festival


WHAT WE NEED FROM OSAKA An overview of Penmen Elite’s Goals We have identified the following items to be critical to our entry into Osaka and Japan. Although this is not an exhaustive list, it does define the immediate assistance that we will need from various agencies in Osaka. ITEM PHASE I - BUILDING Business Permits Land Assessments Building Permits PHASE II – ECONOMICS Tax Structure Tax Concessions Projected Revenue Projected Tax Income to Osaka

GROUP A 

 

GROUP B

GROUP C

 

   

PHASE III - COMMUNITY Employment Practices Recruitment and Labor Laws PHASE IV – PRODUCTION Import and Export Regulations Tariff Assistance

GROUP D

   


PARTNERS Working together, worldwide We are currently working with the following companies to extend our reach, share our knowledge and learn from others the best practices for our industry. We welcome you to do the same and can happily connect you with these pioneers in environmentally protective entertainment production.

The Greening the Screen Project www.greeningthescreen.co.nz The Greening the Screen sustainability toolkit is full of ideas and examples intended to encourage the screen production industry to use its creativity to seek win-win solutions that deliver both screen success and protection of New Zealand’s natural, historical and cultural heritage. The Environmental Media Association (EMA) www.ema-online.org EMA mobilizes the entertainment industry in a global effort to educate people about environmental issues and inspire them into action. EMA was created in 1989, as a non-profit organization, with the simple but powerful concept that through television and film, the entire entertainment community could influence the environmental awareness of millions of people. SAFE SETS ™ www.rainforestrelief.org A scheme organized by Rainforest Relief that allows film producers to have their sets certified as free of protected tropical hardwoods. Also referred to as Rainforest Safe ™. RESETS A company dedicated to dismantling sets from completed productions and reusing the lumber by selling it to furniture makers and pallet manufacturing companies, or giving it away to non-profit groups such as Habitat for Humanity (HFH) which uses it to build low-income housing and schools. Miki Shoten www.mikishoten.com Japan’s leading metal and industrial waste recycler. Miki Shoten serves the local business community’s need to recycle and reclaim valuable metals. Their operations are a model for industrial waste disposal that is environmentally safe while encouraging reuse. Miki Shoten offers a practical way to use building materials wisely, both in production and after.


EXECUTIVE STAFF An exceptional group of people producing exceptional entertainment We are a collection of talented people. Together, we represent the best creative, business and communication professionals in the industry. An exceptional group of people have formed an extraordinary guild. We are: Omima M. Edilbi Penmen Elite LLC, Co-Founder & Chief Executive Officer UCLA Professional Screenwriting Program (MFA) EICAR: International Film School of Paris Brooks Institute of Photography (BFA) Jason K. Garrett Penmen Elite LLC, Co-Founder & Chief Financial Officer UCLA Professional Screenwriting Program (MFA) UCLA Professional Producers Program Lakeland College (BFA) Christopher Karwowski Penmen Elite LLC, Communications Consultant CGK Inc. Middlebury College, Middlebury, Vermont (MA) New School for Social Research, New York City (BA) Home Box Office, Special Projects Assistant to the Chairman & CEO, New York City

Deandre Grant Penmen Elite LLC, Business Relations Cardinal Stritch University, Business (MBA) University of Phoenix, Business Administrations (BA) Joseph Case Penmen Elite LLC, Chief Editor (Manuscript Department) Scott Thrill Penmen Elite LLC, Graphic Novel Advisory University of Alabama, Graphic Arts, (BA) University of Akron, English (BA) Travis Skindzier Penmen Elite LLC, Lead Web Design & Programming University of Michigan Ann Arbor, MI, (BFA) University of Auckland, New Zealand Ricardo Menodza Penmen Elite LLC, Chief of Marketing and PR California State University Los Angeles (BS) Tudor Sburlan Penmen Elite LLC, Commercial and Digital Media Director California State University Los Angeles (BA) Hiroo Nakano International Communications (Japan) Institute of Photography (BFA)


Collateral Short, pithy and engaging. Brochures, presentations and public-facing documents are our strength. Making sure that the tone, voice and brand are consistent, we can make your material stand out in a crowd.


Canada West Coast Trail Vancouver Island, British Columbia The West Coast Trail (WCT) is a physically demanding, 75 kilometre (45 mile) hike stretching from Port Renfrew, in the south to Bamfield, in the north along the west coast of Vancouver Island. It is only open on a seasonal basis (May 1st until September 30th) -- and for good reason considering the likelihood of poor weather outside of that timeframe. It is many things to many people - in fact up to 8,000 people annually hike this trail. There are people who do this trail nearly every summer and obviously love it and then there are people like me who have done it once and that was fine but there are so many more trails I would rather explore than revisit one. Your experience on the trail is going to reflect your fitness level, the weight in your pack, your gear, your group dynamics, the weather, the tides and your outlook. Read on and download everything you need to know about preparing for and hiking the WCT.

Best things about the WCT 

    

Beautiful sunsets on very scenic, remote feeling beaches Eating fresh crab at Nitinat Narrows Every campsite is beautiful Campfires and waterfalls Camaraderie on the trail Sense of accomplishment upon completion

Please take the time to read through all of the information. You will be in a better position to decide if this is actually the trail for you, which trailhead you want to begin with, how many days you want to spend on the trail and what else needs to be reserved with regards to accommodation and transportation pre and post trip. Should you hike this trail?

especially early and late in the season and if you haven’t spent long nights in a cramped tent before you might find the situation uncomfortable.

Only you can answer the question. There are MANY factors to think about before you commit to signing up. Go through the list below and answer truthfully. If you answer no /poorly /yes/no/badly/lousy/no/no/sort of/not good - in that order to the questions below then begin backpacking with trails that are shorter and easier. Reconsider this trail in a few years time after you have gained the necessary experience. It is a serious undertaking!!! Most importantly have you hiked AND camped before? If you are a great day hiker but you have never slept in a tent then this is NOT where you should begin your camping experience. Conditions can become very uncomfortable very quickly. Temperatures can hover in the hypothermia range for days (average summer temperature is 14C/57F) at a time,

Comprehensive information includes all of the following: 

Should you actually be hiking this trail - 10 points to consider

Pros and cons of the trail – other trail possibilities


Planning ahead – trail reservations, pre and post trip transportation and accommodation considerations with pertinent contact numbers and websites

How many days should you plan on hiking?

6, 7 and 8 day itineraries with options for both directions

Packing lists

Meal suggestions

If you are interested in downloading the West Coast Trail packet (TKTK pages) then please press here to add to your shopping cart for $9.95. How well do you deal with rain and mud? There are no weather guarantees on this trail at any time of the year. It is a trail through temperate rain forest!! If you are very unlucky with your timing you could have 6-7 days of rain in a row. Count on daily mud, up to your knees in many places, even if it hasn’t rained in awhile. You will not stay clean if that is important to you. Do you have any joint or back problems? Do not kid yourself that they are manageable because as the week rolls along additional strain is going to be severely placed on knees, feet, shoulders and your back. If you are considering doing this as a family are your children older than 12? Children six and younger are not permitted on the trail and it really is not recommended for children younger than 12. Realistically assess your child’s capabilities especially as it relates to physical and mental stamina. How do you feel about heights? Ladders? Cable cars? There are some sections of the trail with copious numbers of ladders going straight up literally (or straight down) You must be able to carry your own pack on these and get up and down them in a timely manner as you can get a backlog of people in spots.

How is your balance even with poles for support? There are long sections of green, poorly maintained, uneven boardwalk that are slicker than snot. Falls with the resultant injuries are the most common problems and can be cause for an evacuation. Evacuation is not trivial. Are you okay with using outhouses and forgoing hot showers? Are you prepared to deal with the very real possibility of bumping into a bear? Or a cougar?? Do you like the people in your proposed group and how do you think the group dynamics will play out over a week? Will there be sharing of tent setup and cooking duties? Do people move at similar speeds? Do you have the same goals? Are you on the same wavelength for starting times each day? How well do you communicate?

What happens if you are delayed one or two days for whatever reason? How flexible are your plans? If at all possible leave an extra day at the end to allow more time if needed on the trail so you don’t have to rush – particularly if you are finding it harder going than expected. The trail from Gordon River to Walbran Creek is only 22 km (13.3 miles) long. It will take a solid 2 days to do this – REALLY! I couldn’t believe it myself so allow for it. I hate to sound like the pessimist but if you are having some misgivings before booking then I would encourage you to revisit this trip down the road. I personally found it to be one of the


most challenging hiking trips of my life and I have hiked and backpacked extensively!! Even with only 2 nights of rain (out of 6) I did not enjoy the trail for the following reasons. Mostly uninteresting walking through a lot of tree fall with rare views to the ocean. Rainforest in my opinion is grossly overrated for hiking though I do absolutely appreciate it for keeping me alive and breathing. Walking in the forest was in part due to the tide schedule so that beaches were largely off limits at the time I was there. Beach walking would have been a big improvement though miles of walking on sand isn’t easy either – though it is more scenic. Mud from start to finish, especially in areas where the trees have fallen over. I have heard from others in different years that they have had little or no mud. It makes for very slow going in places. Very sore feet (even in well broken in boots) and blistered shoulders. Although the beaches were truly beautiful for camping you are rarely alone and in fact some campgrounds can have as many as 50 people (such as Tsusiat Falls) – not actually my idea of a wilderness experience. I guess you could still call it wilderness but there certainly isn’t solitude and there are many groups of 8-10 which do not have the same dynamic as the ones with just 2-4 people. Some of the trail camaraderie is lost when encountering the bigger groups. (A travel companion who moved on all levels at a much different pace. ) YOU ARE GOING TO GO – NOW WHAT?? Planning ahead If you live further away than Vancouver or if you have a specific timeframe then making a reservation should factor high on your list. If you are fiscally challenged(you will save the reservation fee), flexible and have one to two days to while away in Bamfield or Port Renfrew then you can be one of the ones that just walks on. Here is what to do: Shoulder Season: May 1 – June 14 and September 16-30 No reservations are necessary as the 52 person per day quota is rarely filled. Twenty six people are permitted to start every day from either the Gordon River Trailhead (a few miles from Port Renfrew) or the Pachena Bay Trailhead (a short taxi ride from Bamfield). Peak Season: June 15- Sept 15. Five walk on spaces are allocated at each trailhead each day at 1pm on a first come first served basis. Register when you get to the trailhead at the WCT info center and cross your fingers you don’t have to wait. In the busy season be prepared for a 1-2 day delay. (We met single people who decided a day ahead of time to hike and had no problem getting on when they showed up – though travelling alone is not recommended.) For people on a rigid schedule be prepared to phone as soon as the reservations are open and have a credit card (Visa or Mastercard) handy to pay the reservation fee of $24.75 Canadian (2009 cost) per person in addition to the $127.50 Canadian (2009 cost) per trip per person. Reservations are available according to the following schedule:


April 1 – for hikes starting anytime after June 14th May 1 – for hikes starting anytime in July

June 1 – for hikes starting anytime in August July 1 – for hikes starting anytime before th September 15

When you phone for a reservation you will need to tell the agent the date you want (have 2 alternates in case you can’t get your first choice), the trailhead you plan to start at and the number of hikers in your party. You will also need a mailing address so they can send you a packet of more information. Once you have your start date you can then figure out your finish date (more on that later), transportation and accommodation issues.

Which trailhead should you start at? There is no right or wrong and there are arguments for starting at either trailhead. The thinking for beginning in the south at the Gordon Bay Trailhead is that you Reservation numbers (opens at 8am PST) From within Canada and the US: 1-800-435-5622 From Vancouver: 604-435-5622 International: 1-250-387-1642

get the worst over with in the first two days – the worst being very challenging terrain and somewhat heavier packs. That thinking might lead you to believe that the trail becomes a cakewalk as you get further north. Nothing could be further from the truth. Granted the last day from the Michigan Trailhead going north is much easier than your first day but let me assure you that easy is a relative term on this trail. My suggestion is to base your decision on how you plan to get to the trailhead initially because that in and of itself is not a trivial consideration. The other major issue in my opinion is the timing of the boat crossing at the Gordon River Trailhead. The last boat crossing of the day is at 4pm so if you miss that for any reason you can plan on having a very uncomfortable night for there is very little space that is flat to even pitch a tent and if it is wet there is abundant mud.

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