Subject: Bonus Referral Programme
From: "Williams" <[email-masked]>
To: "Eric Schwerin" <[email-masked]>, "Hunter Biden" <[email-masked]>
Cc: "Patrick com>" <[email-masked]>, "Maura Daley" <[email-masked]>
Date: Mon, 11 Mar 2013 15:15:48 +0000

Eric/Hunter

We have concluded our analysis of the arrangements for members to avoid securities legislation.

We will be adopting a Bonus Referral Programme to offer users 50% of ad revenue from ads they watch themselves and a 50% share of net revenues from ads everyone watches. It is a proxy for a shareholding that doesn't breach securities or consumer advertising legislation. It allows us to launch immediately in US, UK, Canada, India, Brazil, Mexico, Europe etc.

On balance, we felt the offer of value immediately (rather than deferred) coupled with evidence of an intent to have members own 50% of the company was a better selling strategy.

Paddy will start to load up legal opinions (US was done by Kilpatrick Townsend in NY) and the Rules Of Membership documents to the data room shortly. I just wanted to give you a heads up

P

_________________________________

P.L.Williams
Email:  [email-masked]
_____________________________________________