fund.A SAMPLE OVERVIEW OF RAISING INDEPENDENT FILM FINANCE

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content.

1. content.

2. about.

3. market.

4. strategy.

5. structure.

6. budget.

7. schedule.

8. potential.

9. direction.

about.

Independent feature film finance is experiencing another revolution - as budgets shrink and higher production value is achievable for less than ever before. However, alternative investment injections have continued to dry up as the world economy reshapes - opening up new challenges and with them new possibilities.

Fund. proposes an independent feature film production company that capitalizes on the rapid digitalization of film production, distribution and exhibition.

Fund. is further designed for the production of one feature length picture under five specifically developed principles off-setting risk & financial exposure:

1. Raising private equity at the low budget feature film range between $1M - 3M with a limited number of investors maximizing the return on investment and simplifying the overall financial structure - before taking advantage of state and federal tax incentives to protect the investment exposure up to 60%.

2. Approaching the major five talent agencies - William Morris Endeavor, United Talent Agency, Creative Artists Agency, The Gersh Agency and International Creative Management - for the packaging of quality source material - script, paired with proven name talent - actors and director, under the representation of a successful in house sales agent.

3. Taking a careful approach to green lighting the project and moving forward with production by requiring unanimous consent from producers, sales agents and board of directors before proceeding.

4. Team brings a wealth of knowledge, experience and relationships to the production phase in order to properly execute a feature films full production schedule. All the while, mindfully nurturing the creative necessity without neglecting the overall commercial nature of the films back end.

5. Approaching both a pre-sales, in place distribution and market strategy to optimize back end profitability. Targeting the major markets - Cannes, Berlin, Sundance, Tribeca, Toronto - the same sales agent who packaged the film oversees the final sale.

market.

market problem. fund solution.

The market is over saturated. Fund. builds a researched marketing, sales and long term plan before cautiously green lighting production. The heavily saturated markets are navigated wisely by assessing the major barriers - most commonly a lack of marketing exposure for smaller films.

The excessive funding and wasteful spending of production.

Fund. raises a $1M - $3M investment allowing for limited union interference, major star attachments and production value on par with bigger budget films audiences have come to expect.

The absence of original content.

Fund. develops a unique and original human based concept appealing to both high and low brow audiences - whereas the Studios fair for sequels, prequels, re-boots and mindless effect heavy productions.

A lack of efficiency during production.

Fund. structures the green lit project on a properly scheduled time line allowing for minimum costs, maximum creativity and top tier above the line talent.

Major risk degree of investment.

Fund. shrinks the risk of investment by vastly minimizing the overall production budget while retaining the projects quality. By taking advantage of state tax incentives (up to 30%), federal tax incentives (Tax Code 181) and pre-sales agreements - overall investment exposure is limited to 40-50%.

strategy.

Fund. is produced for $1M - $3M including development, production, post production as well as P&A costs.

Fund. deploys $100,000 - $200,000 of this budget Print & Advertising campaign. Fund. is targeted directly at the major film markets of Berlin, Toronto, Cannes, Venice,

Sundance, Tribeca and the emerging South By South West. Fund. is developed to premiere at a major festival, screen on a limited to limited wide

theatrical run of 100 - 500 screens internationally and sell to a boutique distributor such as HBO, IFC, Magnolia, Focus Features or Miramax for broadcast, VOD and content streaming.

Fund. conducted research on similar projects and determined that the conservative estimated for an overall gross of $2,500,000 based upon a $1M investment for an overall profit of $1.5M.

THE STRATEGY FIGURES ARE DERIVED FROM TAKING 100 FEATURE FILMS IN THE $500,000 - $900,000 BUDGET RANGE,

SUBTRACTING THE TOP TEN HIGHEST GROSSING FILMS, SUBTRACTING THE BOTTOM TEN LOWEST GROSSING FILMS, AND THEN

TAKING THE AVERAGE OF THE REMAINING GROSSES AS THE CONSERVATIVE ESTIMATE OF RETURN.

0

750000

1500000

2250000

3000000

structure.

Fund. incentivizes each of its partners through a participation plan that enables immediate return:

ownership structure.ownership structure.ownership structure.

position. responsibilities. ownership.

INVESTOR(s) $1M - $3M equity financing and voting share for green lighting of production.

100% first dollar & 65% share ownership second dollar.

COMPANY Sourcing material, financial management, physical oversight including casting, crewing & production management through delivery.

20% share ownership second dollar.

ABOVE THE LINE Sales agency, talent agency, talent points, distribution fees and services.

15% share ownership second dollar.

Fund. increases ability to bring on strong sales oversight, notable cast & crew and simplified investment structure through participation.

budget.

figure. purpose. result.

$50,000 - $100,000

Attach script by a track record proven writer - represented by chosen agency.

Small audience following Draw for name talent/director Professionally skilled

$100,000 - $150,000

Attach name Director with previously successful projects - represented by chosen agency.

Small audience following Draw for name talent Professionally skilled Capable of quality results

$150,000 - $250,000

Attach name talent in key leading roles - represented by chosen agency.

Major audience following Strong performances Publicity abilities for the project

$50,000 - $70,000

Attach Director of Photography with successful record - represented by chosen agency.

Small audience following Incredible abilities Increase projects overall value

$200,000 - $250,000

Attach professionally skilled production labor while avoiding union interference by keeping costs low.

Incredible abilities Low costs for big results Achieve successful production

$100,000 - $125,000

Attach post production team of Post Supervisor, Editor, Sound Mixer, Composer and Colorist.

Small audience following Incredible abilities Take a strong project and make

it exceptional

total. = $1Mtotal. = $1Mtotal. = $1M

SUBURBAN TURBAN5/1/13

24 DAY SHOOT - 4 WEEK PREP WRITER, DIRECTOR, PRODUCER : ARUN VIR SAG-AFTRA MODIFIED LOW AGREEMENT w/ INCENTIVES PREPARED BY BUFFALO 8 PRODUCTIONS

Acct# Category Description Page Total11-00 STORY, RIGHTS & CONTINUITY 1 $2,50012-00 PRODUCERS UNIT 1 $31,00013-00 DIRECTION 1 $26,51214-00 CAST 2 $179,35914-01 ATL TRAVEL 5 $16,500

TOTAL ABOVE THE LINE COSTS $255,871

19-99 BTL TRAVEL 6 $10,00020-00 PRODUCTION STAFF 6 $79,60021-00 EXTRA TALENT 8 $63,04822-00 SET DESIGN 10 $13,20023-00 SET CONSTRUCTION 10 $9,72525-00 SET OPERATION 11 $50,30027-00 SET DRESSING 13 $38,85029-00 PICTURE VEHICLES & ANIMALS 13 $10,00030-00 WARDROBE 13 $39,70031-00 MAKE-UP & HAIRDRESSING 14 $30,30032-00 LIGHTING 15 $24,17533-00 CAMERA 16 $47,73534-00 PRODUCTION SOUND 17 $18,87535-00 TRANSPORTATION 18 $78,12536-00 LOCATION 20 $85,130

TOTAL PRODUCTION COSTS $598,764

45-00 EDITING 22 $38,25046-00 MUSIC 23 $100,00047-00 POST PRODUCTION SOUND 23 $17,000

TOTAL POST PRODUCTION COSTS $155,250

67-00 PRODUCTION INSURANCE 24 $20,00068-00 CONTINGENCY 24 $70,000

TOTAL OTHER COSTS $90,000

Total Above-The-Line $255,871

Total Below-The-Line $844,014

Total Above and Below-The-Line $1,099,885

Grand Total $1,099,885

schedule.

production challenge. fund solution.

Production is the most important phase of the process.

Proper preparation and scheduling alleviates a majority of the tension and stress of production.

Production drags on too long and causes budgetary overages.

A strong management team, experienced crew laborers and creative department heads allow for the project to be completed on time and budget.

Production is often rushed causing artistic, technical and irreversible errors.

A 90 page script produced on a 24 day shooting schedule allows the director proper time on set while keeping overall costs minimum - averaging under 4 pages per day.

Production requires millions of dollars to achieve the proper results that modern audiences have come to expect.

Carefully choosing the script, director and production elements such as the locations, camera format and logistics - production is vastly simplified.

potential.