Tananna Film Portfolio

Summary of PPMs

 

 

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About Us... Tananna Entertainment is a production company established in 1989 by director/producer Nate Osborne to market "controlled budget" feature-length motion pictures featuring major stars targeted at the niche African-American market, ages sixteen to thirty-year old, the largest segment of the movie-going audience. That is not to say Tananna will exclude all other markets as we feel our projects are entertaining for all demographics! Tananna Entertainment will market its movies in both theatrical and non-theatrical markets, including home video, broadcast and syndicated television markets in the United States and in foreign countries when advisable. Most of Tananna's movies will carry MPAA "R" ratings; however, some will be rated "G" and "PG." This proposal is for the production of six films This proposal is for the production of six films, which can either, be stand-alone investments or an investment across all six films, which is highly recommended. That is to cross-collateralize all six films up until each succeeding film is in profit as defined below: Percentage participation payments will be made to Members (i.e., investors) out of the Picture's revenue stream. (see any of the enclosed PPMs) Ninety percent (90%) of the LLC’s Distributable Cash will be paid to the LLC's Members (shared pro rata amongst the Members) until the Members of the LLC achieve Recoupment (i.e., defined as 110% of their Original Invested Capital). Subsequent to Investor Recoupment, Creative Deferments will be paid, if any. After payment of Deferments, the Manager and Members will share the LLC’s Distributable Cash on a 50/50 basis, for the balance of the life of the LLC (see “OPERATING AGREEMENT” and “OFFERING INFORMATION--Estimated Use of Proceeds”, “Manager and Affiliate Compensation” and “Allocations and Percentage Participations”). We the Producers believe that cross collateralizing all six films is a great deal as no picture, should it turn out to be necessary, will stand on its own financial merit and will offset losses, if any. The six proposed films are: 1. A Long Time Coming (drama): depicts the lives of three African-American teenagers against the backdrop of the 1963 Civil Rights struggle at a time when the moral assurances of the Movement were at a climax. James 7X is a Muslim and recent inductee into the Nation of Islam; Daniel Newborn is a Christian and Jr. Deacon at Liberty Baptist Church. In the face of being religious enemies both boys pursue seventeen-year-old Patsy Ann Brown, defiant daughter to a strict and fundamentalist Baptist Preacher. Interwoven with the music of the ’60s and the struggle for freedom, the teens form a love triangle around which is generated a plot that is as old as time and as forbidden as Romeo and Juliet in one of the most momentous years of change our nation has ever seen.

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2. Damn Good Fried Chicken (black comedy): a black comedy as in genre, about the murderous, bungling pursuit of a secret fried chicken recipe by the entrepreneuring head of a small time drug trafficking cartel. Rahman wants to go legit in the multi-billion dollar, fried chicken franchise industry; joining the likes of Kentucky fried, Popeye’s, Bojangles, etc. But there’s a hitch---one big one. He must first get his hands on a secret fried chicken recipe; a recipe that produces fried chicken so damn good that with just one bite, folks from all backgrounds become instant gluttons, eating fried chicken like voracious pigs around the gravy train. Raman will do anything to get his hands on this recipe, ANYTHING! 3.  Jealous  kind  of  Fella  (drama/musical):  is  a  fact-­‐based  drama  and  the  true-­‐life  story  of  Chicago’s  legendary  60s  soul  singer/balladeer  Garland  Green.    Reared  in  Dunleith  Mississippi  where  he  worked  at  the  age  of  14  along  highway  61  selling  hot  tamales  by  day  and  sneaking  into  Red  Ruby’s  juke  joint  by  night  to  hear  such  artist  as  Sonny  Boy  Williamson  II  and  Elmo  James.    Garland  moved  to  Chicago  at  18  to  pursue  a  singing  career,  keeping  a  pair  of  crooked  dice  on  hand  for  hard  times.    After  wining  a  talent  show  five  straight  times  in  a  row  his  career  takes  off.    Managed  by  a  slick,  talking  pimp  he  toured  the  country  always  in  the  company  beautiful  women,  all  thanks  to  his  pimp/manager.      His  biggest  hit  was  “Jealous  Kind  of  Fella,”  as  it  was  ironically  a  jealous  woman  who  sabotaged  his  career.    4. Please Don’t Kiss the Gorillas (comedy): A highly respected plastic surgeon and his primatologist wife go to central Africa on a mission to save the mountain gorillas from extinction. When his wife is accidentally killed in a poacher’s snare he spirals deep into depression and never falls in love again. Ten years later he is called to a zoo to help rescue a child who had fallen into the gorilla exhibit and to his utter amazement is reunited with his beloved wife, now reincarnated as a captured mountain gorilla. He in turn kidnaps her from the zoo to live happily ever after, or so he thinks as circumstances and events spiral out of control. 5. Have You Seen This Girl (drama): Tyrone Hunter, biracial but looks white with no traces of African ethnicity, is an Assistant District Attorney living in NYC. Tyrone bears the unwanted ability to “cross over” into the spirit world where he learns the truth about murders from the murdered. Currently he is embroiled in a career defining trial laced with racial overtones concerning the alleged murder of a mentally challenged, African-American teenage boy by two, white NYC police detectives. 6. Lion Spirit (period-drama): The story of two women across two continents, one steeped in hundreds of years of tradition, the other trapped by her addiction to crack-cocaine. We open in the early 1990s, at the very peak of the crack-cocaine epidemic. Tjingee, a young 19-year-old woman from the ancient African Himba tribe comes to Brooklyn on an exchange program and befriends Peggy Johnson, a 35-year-old, mother of two, crack-addicted woman. Miraculously, Tjingee cures Peggy of her addiction. Word-of-mouth leads to an onslaught of crack-addicted women seeking her help as the African Angel unknowingly puts herself in harm's way of a ruthless, New York City crack dealer and is targeted for execution.

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Bankable Stars

Many bankable star actors are available for low budget independent films. Their interest is based on their desire to work on projects uninhibited by big studio politics, the quality of the creative elements such as the screenplay, production talent, interest in subject material and simplicity of production schedule. Many bankable actors have worked for as little as $5,000 to $20,000 per day. A bankable star is an actor famous or charismatic enough to be "capable of guaranteeing box-office success simply by showing up in a movie" or appeared in a film(s) that have grossed 50 million or better. Given the budgets of Tananna’s six films, $300,000 to $900,000, it seems an almost sure-fire way to get into profit rapidly minus, if any, creative deferments.

How to Make a Hollywood Caliber Movie on a Budget of Next to Nothing Tanana’s latest film Don’t Go To Strangers is proof that a Hollywood caliber movie can be made on a budget of next to nothing. A result of working with non-union crews and with over 25 years of working with cast, crew, mayors, police chiefs, equipment rental house managers, and casting directors. Nate Osborne has uncovered the formula to producing Hollywood caliber motion pictures on amazingly low budgets. In 2005 Nate released his first 35mm motion picture entitled Don’t Go To Strangers in profit after only a few months (clips of that production or the entire film are available for review by qualified Partners). Budget Tananna intends to finance the production of six feature films ("Film" or "Picture") with an estimated production budget for each film (plus Offering expenses) ranging from a minimum ("Minimum") of $300,000 to a maximum ("Maximum") of $900,000. The Offering is a so-called mini-maxi Offering with a $300,000 Minimum and a $900,000 Maximum. The Minimum plus creative Deferments, if any, will allow the LLC to acquire rights to the Script, produce the Film and market it to film festivals and prospective distributors. The Maximum plus Deferments, if any, will allow the LLC to acquire the rights to the Script, to use more advanced technology, attract better known actors, improve resources (such as locations, set dressings, music, etc.) and market the film more aggressively. Black Movies Make Money, Period! Below is a listing of the best Major Black Movies with African American themes, ranked by movie fans. The top African American movies often dominate the box office when released.

1 Love & Basketball 2000 Gina Prince-Bythewood 2 Friday 1995 F. Gary Gray 3 Boyz N the Hood 1991 John Singleton 4 The Color Purple 1985 Steven Spielberg 5 Poetic Justice 1993 John Singleton 6 Set It Off 1996 F. Gary Gray 7 Soul Food 1997 George Tillman, Jr.

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8 Malcolm X 1992 Spike Lee 9 Soul Food 1997 George Tillman, Jr. 10 Brown Sugar 2002 Rick Famuyiwa 11 What’s Love Got To Do with It 1993 Brian Gibson 12 Think Like A Man 2012 Tim Story 13 The Wood 1999 Rick Famuyiwa 14 Menace II Society 1993 Allen Hughes, Albert 15 Bad Boys 1995 Michael Bay 16 House Party 1990 Reginald Hudlin 17 Juice 1992 Eric Dickerson 18 The Best Man 1999 Malcolm D. Lee 19 Lean on Me 1989 John G. Avildsen 20 A Thin Line Between Love

and Hate 1996 Kevin Rodney

Sullivan 21 Remember the Titans 2000 Boaz Yakin 22 New Jack City 1991 Mario Van Peebles 23 Barbershop 2002 Tim Story 24 The Players Club 1998 Ice Cube 25 Bad Boys II 2003 Michael Bay 26 Love Jones 1997 Theodore Witcher 27 Training Day Antoine Fuqua 28 How Stella Got Her Groove Back 1998 Kevin Rodney Sullivan 29 Boomerang 1992 Reginald Hudlin 30 Waiting to Exhale 1995 Forest Whitaker 31 Dead Presidents 1995 Albert Hughes and

Allen Hughes 32 Drumline 2002 Charles Stone III 33 The Nutty Professor 1996 Tom Shadyac 34 The Preacher s Wife 1996 Penny Marshall 35 Antwone Fisher 2002 Denzel Washington 36 Life 1999 Ted Demme 37 Ali 2001 Michael Mann 38 Why Do Fools Fall in Love? 1998 Gregory Nava 39 Man on Fire 2004 Tony Scott 40 Two Can Play That Game 2001 Mark Brown 41 Next Friday 2000 Steve Carr 42 A Low Down Dirty Shame 1994 Keenen Ivory Wayans 43 Higher Learning 1995 John Singleton 44 Belly 1998 Hype Williams 45 School Daze 1988 Spike Lee 46 White Chicks 2004 Keenen Ivory Wayans 47 All about the Benjamins 2002 Kevin Bray 48 Big Momma s House 2000 Raja Gosnell 49 How to Be a Player 1997 Lionel C. Martin 50 Any Given Sunday 1999 Oliver Stone

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Black Movies: a good investment?

For starters, exactly what is a Black movie? Are they merely films that feature Black people? Are they films meant exclusively for a black audience; or does the subject matter count for anything? All of the proposed feature films Tananna will produce feature black people. Let’s look at one of Tananna’s six slated films entitled A Long Time Coming; it is a teenage love story featuring Black people, does that alone make it a black movie, just because the actors are Black? Insofar as Hollywood is concerned the answer is an overwhelming yes. Although (I think) love comes in many colors and is a universal emotion experienced by almost all people, most likely influenced by biological drives.

Apart from Hollywood, I say a good film is a good film regardless of race. Good

story telling equals good filmmaking in my book. But here is the kicker. In 2007 I attended the AFM in Santa Monica with my first full-length feature film, Don’t Go To Strangers. It was suggested to me by a white middle-age female in the lobby of the host hotel that I was in a niche market. Solely because the principal characters in my film were all Black. She went on to say that there is an advantage to it.

By definition a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. I would like to think that my films are for all people regardless of race at the risk of sounding (to some Hollywood execs) overly idealistic. But she was right; I am in a niche market, compounded by the fact that there just aren’t a lot of Black movies being made. Speaking of niche markets, actor/director/producer Tyler Perry has an immensely successful film franchise due to a wholly Black following in the US, as he is virtually unknown by white audiences. Translation: Perry reached a market white Hollywood ignores and he is simply giving his audience what they want ----more Madea. The recurring character of Mabel Madea Simmons appears in many of Perry's films where Perry portrays by cross-dressing. In 2009, Perry was ranked by Forbes magazine as the sixth highest-paid man in Hollywood. In 2011, Forbes named him the highest paid man in entertainment, earning $130 million between May 2010 and 2011. As of June 2011, Perry's films had grossed over $500 million worldwide.

Perry’s Film Bio

Motion Picture Year Budget Domestic Gross Diary of a Mad Black Woman

February 25, 2005 $5.5 million $50.6 million

Madea's Family Reunion

February 24, 2006 $6 million $65 million

Daddy's Little Girls

February 14, 2007 N/A $31 million

Why Did I Get Married?

October 12, 2007 N/A $56 million

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   Perry's films are co-produced and distributed by Lionsgate Entertainment; he retains full copyright ownership under the corporate name Very Perry Films, and places his name in front of all titles. Perry's movies have seen very limited release outside North America, but in May 2010, Lionsgate announced plans to begin releasing his films in the United Kingdom. In January 2011, it was announced that Perry would take over the role of James Patterson’s Alex Cross from Morgan Freeman for the upcoming film adaptation of Alex Cross. The film opened on October 19, 2012 receiving mainly negative reviews from critics, but Perry received positive reviews from critics and audience for his performance. Perry's next film with Lionsgate was Good Deeds, in which Perry plays lead character Wesley Deeds. Good Deeds is a romantic drama film written, directed by and starring Perry. The film was released on February 24, 2012. It is the tenth out of eleven films directed by Perry that he appears in. Review aggregator Rotten Tomatoes gave the film a 29% rating. The film opened with a box office $16,000,000. The movie also stars Thandie Newton. Rebecca Romijn, Gabrielle Union, Eddie Cibrian, Jamie Kennedy, Phylicia Rashad and others.

Perry will release his new movie, Temptation: Confessions of a Marriage Counselor, which is based on his 2008 play of the same name, on March 29, 2013. This will be Perry's thirteenth film. In November 2012, it was announced that Perry will release a new film entitled Single Moms Club, opening on May 9, 2014. Perry currently has two upcoming films in the works Tyler Perry’s A Madea Christmas and Peeples slated for release May 10,2013, December 13, 2013.

Meet the Browns March 21, 2008 $20 million $42 million The Family That Preys

September 12, 2008 N/A $37.1 million

Madea Goes to Jail February 20, 2009 $17.5 million $90.6 million I Can Do Bad All By Myself

September 11, 2009 N/A $51.8 million

Precious November 6, 2009 $10 million $63.7 million Why Did I Get Married Too?

April 2, 2010 $20 million $60.1 million

For Colored Girls Who Have Considered Suicide When the Rainbow Is Enuf

November 5, 2010 $21 million $37.8 million

Madea's Big Happy Family

April 22, 2011 $25 million $53.4 million

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Perry currently has two upcoming Madea films in the works: Tyler Perry’s Madea Gets A Job (stage-play film), set for release on Blu-ray Disc, DVD, Digital Download, Video On Demand and Pay-Per-View on February 5, 2013; and A Madea Christmas (conventional onsite film based on the play), slated for release on December 13, 2013.

Tyler Perry for sure got his niche nailed. But is Tyler Perry's success something you

can plan out? Who knows? 90% of Tyler Perry's success is his Madea character, at the same time there are many stories out there to be told about the African-American experience and Tyler Perry represents a mere fragment on what I refer to as the Black film spectrum Tananna’s six films (once completed) will also have a notch on this spectrum and hopefully any spectrum that gauges quality films. I also believe that all of Tananna’s film portfolio will be well received and financially successful primarily due to their low budget of $300,000 to $900,00 and the fact that they all have subject matter that comes with a built-in audience (from those of us interested in the Civil Rights era to the extinction of the central African gorilla).

Tyler Perry and the Niche Market

Black movies or movies featuring Black people (niche market) have always done extremely well at the box office since dawn of Black exploitation. Movies like Superfly and Shaft, where incidentally both films had sequels and remakes, were huge hits and the future looks even brighter. African-Americans in Motion Pictures in today's expanding world of visual imagery can be seen on many expanding fronts. We see the making of motion pictures on subjects or themes, which can be taken from history (i.e. The Help, Hoover, etc.), life experiences, music (i.e. Ray, Walk The Line), and unexplored events. Today's markets are open. Black actors and actresses are expanding their roles from stage acting to movies to TV miniseries to media resources on CD-ROM, video cassettes or discs, and roles taken from books, both hard covers and paperbacks, plus movie soundtracks.

African-Americans are included in the top money making motion pictures. The following lists are compiled from the top 100 domestic hits of 2009-2011.

CHART NUMBER ONE Top 100 Movies of 2009 Featuring African-American Actors

2009 DOMESTIC GROSSES

Rank Title Featuring Studio Total Gross 1 Avatar Zoe Saldana Fox $749,766,139 2 Transformers: Revenge of

the Fallen Tyrese Gibson P/DW $402,111,870

7 Star Trek Zoe Saldana, Tyler Perry Par. $257,730,019 8 The Blind Side Quinton Aaron WB $255,959,475

12 Ice Age: Dawn of the Dinosaurs

Queen Latifah (voice) Fox $196,573,705

13 X-Men Origins: Wolverine will.i.am Fox $179,883,157

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15 2012 Thandie Newton Sony $166,112,167 17 Fast and Furious Vin Diesel, Brandon T. Jackson,

Michelle Rodriguez Uni. $155,064,265

18 G.I. Joe: The Rise of Cobra Marlon Wayans Par. $150,201,498

23 Terminator Salvation Common WB $125,322,469 25 G-Force Tracy Morgan BV $119,436,770 29 Couples Retreat Kali Hawk, Tasha Smith, Faizon

Love Uni. $109,204,945

32 The Princess and the Frog Terrence Howard, Oprah Winfrey BV $104,400,899

36 Tyler Perry's Madea Goes to Jail

Tyler Perry, Derek Luke LGF $90,508,336

41 Where the Wild Things Are Forest Whitaker WB $77,233,467

44 Law Abiding Citizen Jamie Foxx Over. $73,357,727 45 Hotel for Dogs Don Cheadle P/DW $73,034,460 46 Michael Jackson's This Is It Michael Jackson Sony $72,091,016

48 Obsessed Beyonce Knowles, Idris Elba SGem $68,261,644 49 Race to Witch Mountain The Rock BV $67,172,594 50 The Final Destination Mykelti Williamson WB $66,477,700 51 The Taking of Pelham 1 2

3 Denzel Washington Sony $65,452,312

52 Friday the 13th (2009) Arlen Escarpeta WB $65,002,019

60 Tyler Perry's I Can Do Bad All By Myself

Tyler Perry, Taraji P. Henson $51,733,921

61 My Bloody Valentine 3-D Edi Gathegi LGF $51,545,952

65 Precious Gabourey Sidibe, Mo'Nique, Mariah Carey, Paula Patton

LGF $47,566,524

66 Underworld: Rise of the Lycans

Kevin Grevioux SGem $45,802,315

70 The Unborn (2009) Idris Elba Uni. $42,670,410

71 Planet 51 The Rock Sony $42,194,060

73 Orphan CCH Pounder WB $41,596,251

76 Surrogates Ving Rhames BV $38,577,772

77 Ninja Assassin Naomie Harris WB $38,122,883

78 Invictus Morgan Freeman WB $37,491,364

79 State of Play Viola Davis Uni. $37,017,955

80 Notorious Angela Bassett, Derek Luke, AnthonMackie, Naturi Naughton

FoxS $36,843,682

88 Earth (2009) James Earl Jones (narrator) BV $32,011,576

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89 Push Djimon Hounsou Sum. $31,811,527

91 The Soloist Jamie Foxx P/DW $31,720,158

99 Dance Flick David Alan Grier, Marlon Wayans, Damon Wayans Jr., Kim Wayans

Par. $25,662,155

Total: $4,322,727,158  

CHART NUMBER TWO

Top 100 Movies of 2010 Featuring African-American Actors

2010 DOMESTIC GROSSES Rank Title Featuring Studio Total Gross

1 Toy Story 3 Whoopi Goldberg (Voice) BV $415,004,880 3 Iron Man 2 Don Cheadle, Samuel L. Jackson BV $312,433,331 8 Shrek Forever After Eddie Murphy (Voice) P/DW $238,736,787

11 The Karate Kid Jaden Smith, Taraji P. Henson Sony $176,591,618 12 Tron Legacy Yaya DaCosta BV $172,062,763 15 Grown Ups Chris Rock Sony $162,001,186 20 Shutter Island Curtiss Cook Par. $128,012,934 21 The Other Guys The Rock, Samuel L. Jackson Sony $119,219,978 22 Salt Chiwetel Ejiofor Sony $118,311,368 28 The Expendables Terry Crews LGF $103,068,524 31 Date Night Taraji P. Henson, Common Fox $98,711,404 34 The Book of Eli Denzel Washington WB $94,835,059 38 Red Morgan Freeman Sum. $90,380,162 41 Unstoppable Denzel Washington Fox $81,562,942 42 Eat Pray Love Viola Davis Sony $80,574,010 44 The A-Team Quinton Jackson Fox $77,222,099 45 Knight & Day Viola Davis Fox $76,423,035 54 Get Him to the Greek Sean 'P. Diddy' Combs Uni. $60,974,475 55 Resident Evil: Afterlife Boris Kodjoe SGem $60,128,566 56 Tyler Perry's Why Did I Get

Married Too? Tyler Perry, Janet Jackson, Michael Jai White, Louis Gossett, Jr.

LGF $60,095,852

57 Tooth Fairy The Rock Fox $60,022,256 60 Takers Idris Elba, Zoe Saldana, T.I. SGem $57,744,720 65 Predators Laurence Fishburne Fox $52,000,688 66 Hot Tub Time Machine Craig Robinson, Aliu Oyofo,

Daren A. Herbert MGM $50,287,556

67 Kick-Ass Stu 'Large' Riley, Ohene Cornelius LGF $48,071,303

70 Cop Out Tracy Morgan WB $44,875,481 71 Cats & Dogs: The Revenge

of Kitty Galore Michael Clarke Duncan (Voice) WB $43,585,753

74 Death at a Funeral (2010) Chris Rock, Martin Lawrence, Tracy Morgan Danny Glover, Zoe Saldana

SGem $42,739,347

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77 Legion (2010) Charles S. Dutton, Tyrese Gibson SGem $40,168,080 80 For Colored Girls Kimberly Elise, Janet Jackson.

Loretta Devine. Thandie Newton, Anika Noni Rose, Kerry Washington, Whoopi Goldberg, Macy Gray

LGF $37,729,698

85 Marmaduke Damon Wayans (Voice) Fox $33,644,788 99 Brooklyn's Finest Wesley Snipes, Don Cheadle Over. $27,163,593

Total: $3,264,384,236

CHART NUMBER THREE

Top 100 Movies of 2011 Featuring African-American Actors

2011  DOMESTIC  GROSSES Rank Title Featuring Studio Total Gross

2 Transformers: Dark of the Moon

Tyrese Gibson P/DW $352,390,543

4 The Hangover Part II Mike Tyson

WB $254,464,305

6 Fast Five Vin Diesel, Tyrese Gibson, Chris 'Ludacris' Bridges), Dwayne Johnson

Uni. $209,837,675

7 Mission: Impossible - Ghost Protocol

Paula Patton

Par. $209,397,903

10 Thor Idris Elba

Par. $181,030,624

11 Rise of the Planet of the Apes

David Oyelowo

Fox $176,760,185

12 Captain America: The First Avenger

Samuel L. Jackson

Par. $176,654,505

13 The Help Viola Davis, Octavia Spencer, Cicely Tyson

BV $169,708,112

14 Bridesmaids Terry Crews Uni. $169,106,725

15 Kung Fu Panda 2 Dennis Haysbert P/DW $165,249,063 17 X-Men: First Class Zoë Kravitz Fox $146,408,305 18 Rio Wanda Sykes, Jamie Foxx,

Will i Am Fox $143,619,809

23 Horrible Bosses Reginald Ballard WB (NL)

$117,538,559

24 Green Lantern Angela Bassett WB $116,601,172

25 Hop Carlease Burke Uni. $108,085,305

32 The Green Hornet Chad Coleman Sony $98,780,042 34 The Muppets Bill Cobbs BV $88,631,237

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35 Real Steel Anthony Mackie BV $85,468,508

37 Battle: Los Angeles Adetokumboh M'Cormack,vNe-Yo, Neil Brown Jr.

Sony $83,552,429

40 Zookeeper Rosario Dawson Sony $80,360,843 43 Tower Heist Eddie Murphy, Gabourey

Sidibe Uni. $78,046,570

45 Contagion Laurence Fishburne WB $75,658,097

46 We Bought a Zoo J.B. Smoove, Kym Whitley Fox $75,624,550

47 Moneyball Brent Jennings Sony $75,605,492

48 Jack and Jill Tim Meadows Sony $74,158,157

50 Justin Bieber: Never Say Never

Sean Kingston Par. $73,013,910

51 Dolphin Tale Morgan Freeman WB $72,286,779

52 No Strings Attached Ludacris Par. $70,662,220

53 Mr. Popper's Penguins

William Charles Mitchell Fox $68,224,452

54 Happy Feet Two Common WB $64,006,466

56 The Adjustment Bureau

Anthony Mackie, Natalie Carter

Uni. $62,495,645

57 Water for Elephants Ken Foree Fox $58,709,717

62 Source Code Jeffrey Wright, Craig Thomas

Sum. $54,712,227

63 New Year's Eve Halle Berry, Michael Mandell

WB (NL)

$54,544,638

65 Tyler Perry's Madea's Big Happy Family

Tyler Perry LGF $53,345,287

67 Footloose (2011) Ser'Darius Blain, Enisha Brewster

Par. $51,802,742

68 The Dilemma Queen Latifah Uni. $48,475,290

73 Final Destination 5 Courtney B. Vance, Arlen Escarpeta, Tony Todd

WB (NL)

$42,587,643

74 The Ides of March Jeffrey Wright Sony $40,962,534

79 Big Mommas: Like Father, Like Son

Martin Lawrence Fox $37,915,414

80 Red Riding Hood Adrian Holmes WB $37,662,162

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82 Paul David House Uni. $37,412,945

85 Jumping the Broom Angela Bassett, Loretta Devine

TriS $37,295,394

88 Colombiana Amandla Stenberg TriS $36,665,854

89 Sucker Punch Ron Selmour WB $36,392,502

90 Larry Crowne Sy Richardson Uni. $35,608,245

92 Drive (2011) Edrick Browne FD $35,060,689

94 Courageous Ken Bevel TriS $34,522,221

99 The Sitter J.B. Smoove, Method Man Fox $30,441,326

Total:   $4,687,545,017  

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More ways to sell movies than you can shake a stick at and growing…

Nate Osborne, Pamela Hart and Deana Becker star in a scene from the movie Don’t Go To Strangers on an iPhone.

A COMMAND PERFORMANCE is at just about any movie fan's fingertips nowadays, proving in a high-tech way that what's old truly can be new again.

Before the big screen was actually big, movies were more personal: it was just you, a crank, and a few hundred flipping cards. But the viewing WAS on-demand.

Truth is, the very first motion pictures could be watched on a handheld device, and in the hundred-odd years since flip-books, it seems movies have come full circle.

Today everything's possible, and it becomes a consumer choice. Movies started off little; then we enjoyed this communal experience; and now it's becoming -- for some people at least -- a solitary and tiny screen again."

Throughout the history of movies, people go to the movies. Movies now go to the customers on their personal screens. These changes are awfully exciting. And they come down to more choices for customers. This is a good thing. That might be the founding principle of Netflix.

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The company started in 1997 as a movie DVD-by-mail service . . . all those bright red envelopes, remember? They'll still send you a DVD. But most of their 27 million-plus subscribers pay around $8 a month to have unlimited movies or TV shows streamed directly to them, with all of their choices queued up, waiting to be watched. Right now, Netflix is the biggest player in video streaming. During peak Internet use hours -- between 9 p.m. and 12 a.m -- Netflix use accounts for 33 percent of ALL streaming traffic in North America. Netflix recently inked a deal to pay Disney a reported $350 million a year to carry Disney movies starting in 2016. There's also a pricey deal with DreamWorks for a cartoon series, based on the upcoming movie "Turbo."

Netfiix makes money by adding subscribers, and the best way to do that, they reckon, is to give people something they can't see anywhere else. So now, Netflix is making its own "must-see TV." They ponied up a reported $100 million to produce "House of Cards," a political drama starring Oscar-winning actor Kevin Spacey. Netflix released the entire first season on Super Bowl weekend. Viewers can binge on all 13 episodes, if they want, in one sitting. Netflix, of course, isn't alone: Amazon, for one, has its own streaming service and rights to "Downton Abbey" and other shows, including one from this network.

In any case, the success of Netflix, and others, will likely means more shows and more movies on more devices for less money. The Internet and Broadband Access

In addition to the above-mentioned ancillary markets, there is also an exciting new distribution model emerging within the context of filmed entertainment. Technological advances such as digital satellite transmission, cable modems and DSL, all geared to high-speed broadband Internet access, are providing another potential avenue for audiences around the world to view their entertainment product. Already numerous well-financed online entities are actively distributing — “netcasting” — short-form archived and streaming media entertainment content over the web. By the time Tananna’s film portfolio is completed, the Producers anticipate there may be several “Net-casters” with the ability to release and distribute a theatrical quality, full-length motion picture over the internet, on a global basis, essentially by-passing traditional distributors, with their high costs and fee structure. The advantages are clear: the potential for global distribution and worldwide release, make content immediately available for repeated viewings, no print costs, no shipping costs and instantly verifiable next day collections. Plus, the ability to better target the Film's potential audience, as well as run trailers and online promotion, twenty-four hours a day, seven days a week, without costly network television media buys. The challenge is to get people to the site and motivate them to pay for the viewing. Intense competition among emerging companies to establish a recognizable brand in the internet entertainment space will likely lead to increased distribution opportunities, and a new class of buyers to whom independent producers may license their product. As a result, the Producers believe that independent feature filmmakers and their investors, at least in the near-term, are likely, if they make a deal with a “net-caster”, to retain greater leverage and creative control over how their films are marketed and released, and, in the process, reap higher profits from the intellectual property they create. However, given rapidly changing technological developments and shifting consumer tastes, it is not possible to predict with any certainty, what effect, if any, this or other new distribution channels will have on potential overall revenue for feature length motion pictures.

No two distribution deals are exactly alike; a statement that holds true for any business, and

the motion picture industry is no exception. Following are several possible scenarios for selling an

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independent film.

Independent Film - An independent film, by definition, is any film financed by a source other than a so-called major studio/distributors, such as Paramount, Universal, Warner Bros., Sony, Disney and 20th Century Fox. While the Picture may eventually be distributed by a major studio, the cost of production and the final preparation of a ready-to project master - the "Master Cost" - comes from other sources, independent of such studios.

Otherwise, the same processes apply to an independent film as they do to a studio film -

development, pre-production, production and post-production. As with A Long Time Coming, a smaller production company usually raises money for one film at a time. Often these independent production companies are owned or controlled by the creative people involved, such as a writer/director, writer/producer, actor/producer complemented by a financial partner or investment group.

By working outside of the studio system, an independent producer is free from the

homogeneity of a studio production and can exercise more control over the look and style of the film, and without the deep pockets of the studio to fall back on, a high degree of focused, budgetary vigilance and cost monitoring can be implemented. This means that independent producers can devote more time to their projects and plan their budgets more efficiently by giving greater attention to their lower-budgeted material. Unlike studios, the independents avoid the overhead costs of maintaining large administrative staffs. Consequently, independent films are generally produced for a fraction of the cost of studio-produced films.

"Look at the history of major studio releases. One-fourth to one-third of their films were

produced by indies. There's a reasons for this. Research has shown that there's a higher ratio of success with indie-acquired product over in-house productions." [Source: Larry Sugar, motion picture financing and marketing consultant in Los Angeles, as quoted in the Hollywood Reporter]

Independent films also benefit from broader opportunities and increased flexibility. This is of great significance in a film's distribution phase where it is possible to license the rights to the picture to separate distribution entities thereby maximizing its earning potential - keeping the revenue streams from domestic (U.S. and Canada) and international markets separate.

Of significance to potential investors is the consideration that independently financed pictures provide an opportunity for both the investors and the producers to share the revenues of a film, unlike pictures financed by a larger studio where significant allocations of overhead and other charges require substantial deductions from the film's revenue stream and thereby drastically reduce the potential for profit.

Growing Importance of the Independent Film Industry - The growth and success of the independent film is a continuing phenomenon in the motion picture industry. Somewhat cyclical in nature from year to year, the trend really took off in the late 1970's. The boom was Fostered in part by Robert Redford's Sundance Film Festival and filmmakers like John Cassavetes and others who proved, conclusively, that it was possible to make a film for far less money than the studios did. This trend grew through the 1980's and 1990's as major studios underwent a radical process of restructuring when expensive production facilities and staff, significant overhead expenses and runaway productions forced them to follow new business models, calling for fewer films, but expecting higher grosses per film. As a consequence, smaller companies with lower-budgeted films were able to command a bigger share in the market. Currently, independent films are now a firmly established and permanent segment

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of the motion picture industry.

In 2010, there were a total of 615 movies released by U.S. distributors, more than half of all films released were independently produced, and still the demand for movies is unceasing and the Majors simply cannot keep up with that demand. Independent films captured seven major Oscars at the 83rd Academy Awards, including a Best Picture victory by The Weinstein Co.’s The King’s Speech. The win brings to 19 the number of independent films taking Best Picture honors over the past 30 years. Do American audiences prefer blockbusters to Indie Films? The big six studios like Columbia, Paramount, Disney, Universal and Fox seem to think so. They own independent film studios that produce Art House specialty films that cater to a certain niche.

The Independent Film & Television Alliance, or IFTA, has announced the worldwide box office grosses for the top 50 independent films of 2010.

Rank Title Language

Worldwide

Box Office 1 TWILIGHT SAGA: ECLIPSE English $ 562,772,794 2 RESIDENT EVIL: AFTERLIFE English $ 270,702,775 3 THE EXPENDABLES English $ 228,474,879 4 RED English $ 160,645,569 5 THE BOOK OF ELI English $ 158,460,168 6 STEP UP 3D English $ 155,259,499 7 THE TOURIST English $ 126,492,009 8 SAW 3D English $ 122,660,096

9 KARIGURASHI NO ARRIETTY

(THE BORROWER ARRIETTY) Japanese $ 114,146,003

10 DEAR JOHN English $ 112,150,467 11 KICK-ASS English $ 95,609,990 12 UMIZARU: THE LAST MESSAGE Japanese $ 95,469,952 13 KILLERS English $ 91,408,598 14 NANNY MCPHEE RETURNS English $ 89,832,550

15 ODORU DAISOSASEN 3 (BAYSIDE SHAKEDOWN 3) Japanese $ 83,204,093

16 EDGE OF DARKNESS English $ 81,208,697 17 GULLIVER'S TRAVELS English $ 80,770,446 18 LETTERS TO JULIET English $ 79,135,982 19 PIRANHA 3D English $ 69,449,994 20 LEGION English $ 65,675,885 21 THE LAST EXORCISM English $ 64,853,785 22 HOT TUB TIME MACHINE English $ 63,457,446 23 THE GHOST WRITER English $ 62,047,590 24 THE AMERICAN English $ 62,039,378 25 TROPA DE ELITE 2 (ELITE SQUAD 2) Portuguese $ 61,534,032

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39 TYLER PERRY'S WHY DID I GET MARRIED TOO English $ 60,631,493

27 SKYLINE English $ 58,749,662 28 REMEMBER ME English $ 56,506,120 29 FROM PARIS WITH LOVE English $ 53,139,168 30 THE FIGHTER English $ 51,012,572 31 DAYBREAKERS English $ 50,590,794 32 DEATH AT A FUNERAL English $ 48,977,233 33 THE SWITCH English $ 48,322,702

34 LE PETITS MOUCHOIRS (LITTLE WHITE LIES) French $ 47,312,277

35 POCKET MONSTERS DIAMOND AND PEARL THE MOVIE: PHANTOM RULER: ZOROARK Japanese $ 46,497,001

36 THE SPY NEXT DOOR English $ 44,117,662 37 NINE English $ 43,865,872

38 SAMMY'S ADVENTURES: THE SECRET PASSAGE English $ 43,810,300

39 KOKUHAKU (CONFESSIONS) Japanese $ 43,505,566 40 MACHETE English $ 42,813,650 41 SP: THE MOTION PICTURE Japanese $ 42,154,480 42 ALPHA AND OMEGA English $ 42,131,174 43 BENVENUTI AL SUD Italian $ 41,483,723 44 NODAME CANTABILE THE MOVIE 2 Japanese $ 39,756,729 45 FOR COLORED GIRLS English $ 37,724,730 46 L’ARNACOEUR (HEARTBREAKER) French $ 37,667,759 47 BROOKLYN'S FINEST English $ 37,563,547 48 SPACE BATTLESHIP YAMATO Japanese $ 37,109,671 49 DETECTIVE CONAN: THE RAVEN CHASER Japanese $ 36,996,205 50 THE NEXT THREE DAYS English $ 36,436,774

Source:  IFTA  Research  analysis  of  Rentrak  Box  Office  Essentials  data  

Independent Films Benefit Greatly From "Buzz" - Events have recently shown that independent films with good "buzz" (pre-release notices by reviewers, film festival success and good public relations, along with positive word-of-mouth) may not only survive but ripen and flourish. Significant examples are the Blair Witch Project and My Big Fat Greek Wedding. Both pictures were released on a relatively small number of screens nationwide. As audience approval grew and friends and family were referred, the films began to enjoy wider and wider release in more and more theatres in more and more cities. NO ASSURANCES CAN BE PROVIDED HOWEVER, THAT THE LLC'S FILM WILL ACHIEVE SIMILAR NOTORIETY.

Sundance Film Festival 2011 - For the 2011 Sundance Film Festival (held in Park

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City, Utah late in January each year and often promoted as the foremost platform for American independent cinema), 118 feature-length films were selected, representing 29 countries by 40 first-time filmmakers, including 25 in competition. These films were selected from 3,812 feature-length film submissions composed of 1,943 U.S. and 1,869 international feature-length films. 95 films at the Festival will be world premieres.

According to the NY Times, published: January 20, 2011, Hollywood is back in the mood to buy indie films — even if not at the old prices that came with inflated expectations. “On paper, at least, it looks like there is something for every distributor,” said Arianna Bocco, head of acquisitions for Sundance Selects/IFC Films. Among other factors, the strong box-office performance of specialty films over the last six months has created optimism that the art house sector has emerged on the other side of a correction. After a glut of mediocre titles pushed as masterpieces ravaged the indie market, there came the likes of “Black Swan,” which cost $13 million to make, has sold more than $75 million and is still playing.

Filmmakers and financiers have adjusted budgets for their pictures accordingly, said Jamie Patricof, a producer of films including “Blue Valentine,” a darling of last year’s festival, and the drama “Little Birds,” which will have its premiere here on Sunday. “The $3-million-budgeted movies of five years ago are the under-$1-million movies of today,” Mr. Patricof said.

Graham Taylor, who oversees finance and distribution for William Morris Endeavor, which is handling sales for seven Sundance titles, agreed. “There has definitely been a market correction,” Mr. Taylor said. “The days of inflated budgets are so 2007.”

Similarly, the emergence over the last year of video-on-demand services as a significant revenue generator for independent films has eased the concerns of distributors about dwindling DVD sales.

“The marketplace is now equipped to understand that video-on-demand can add real value to a film’s distribution cycle,” said Kevin Iwashina, managing partner of Preferred Content, a production, sales and finance advisory company.

At Sundance 2011, several distributors started shopping before the festival even began, with Sony Pictures Classics paying an undisclosed amount for the psychological thriller “Take Shelter” and HBO snapping up the documentary “Project Nim,” about a chimpanzee at the center of a 1970s-era sign language experiment.

So, what Sundance movies have the best prospects of igniting buyer attention in the coming days at festival’s end? Topping the list of must-see films for most distributors is “My Idiot Brother,” a comedy starring Paul Rudd as Ned, a guy who looks for the good in life but always seems to end up with the short end of the stick. Also generating strong interest is “The Details,” a dark comedy/love story that stars Tobey Maguire, Laura Linney and Ray Liotta.

“Margin Call” — a thriller set against the backdrop of the financial crisis that stars Kevin Spacey, Jeremy Irons and Demi Moore — also looks promising, according to several buyers. Other strong contenders are “The Devil’s Double,” the true story of Latif Yahia, an Iraqi army

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lieutenant who was hired in 1987 to be Saddam Hussein’s body double, and “Like Crazy,” a romance that is already a winner with critics.

Several smaller distributors are seeking this year’s version of “Winter’s Bone,” a dark $2 million drama that played Sundance last year and has sold almost $8 million at the box office. Could it be “On the Ice,” the bleak tale of two seal-hunting boys who live in an Alaskan village?

Sundance Film Festival 2010 - At the 2010 Sundance Film Festival, 9 films went on to garner 15 Oscar nominations, and 4 of the 5 Best Documentary nominees were Sundance films. The next year, about 45 films were acquired by distributors (the most ever) vs 14 in 2010, an increase of about 220%. Tom Hall of indieWire said it marked "a return to the glory days of pure, unadulterated content speculation."

In the first blockbuster sale of the 2010 Sundance Film Festival, Lionsgate has bought the claustrophobic thriller "Buried" following an aggressive negotiation. The studio behind the Sundance hits "Open Water," "Saw" and "Precious: Based on the Novel 'Push' by Sapphire" paid about $3.2 million for the film's North American distribution rights, getting a movie that attracted several other interested distributors, most notably Fox Searclight.

The $3-million movie by Spanish director Rodrigo Cortes screened. Joe Drake, Lionsgate's motion picture group president, watched the 94-minute movie back in Los Angeles, after his distribution executives saw the film in its initial Park City at Midnight screening. With Drake's enthusiastic support, the distribution deal was wrapped up quickly.

Sales have been particularly slow at the 26th annual festival for movies made outside the studio system, considered the nation's most important film festival. Many of the festival's earliest -- and most star-laden --movies did not sell in the hours (and even days) after their first sales screenings.

Instead, the buyers' attention was focused on smaller genre titles like the low-budget road comedy "Douchebag," the digital-age romance documentary "Catfish" and the Afghanistan war documentary "Restrepo."

Among the high-profile movies that did not immediatelty sell were Ben Affleck and Kevin Costner in the layoff story "The Company Men," Natalie Portman and Joseph Gordon-Levitt in the dark comedy "Hesher," Kristen Stewart and James Gandolfini in the runaway redemption tale "Welcome to the Rileys" and James Franco as poet Allen Ginsberg in "Howl."

Investing in independent film

Investing in independent film is not only a good way to help improve the arts and shift spare cash into something worthwhile but you'll also get a buzz out of being a part of something

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really exciting. Independent movies occasionally rise to the top and oust the major movie studio productions, so how great would it be if the project you invested in manages to be one of those unpolished gems?!

Consider why you're doing this

There is no guaranteed ROI, and investing in actual movie production won't necessarily make you a fortune, with occasional exceptions, of course. However, there can be very good returns for investing, dependent on how you choose to do your investing in indie films. Moreover, you are helping to grow an industry that is important for society and you might be getting other spin-offs for your own business as a result, such as the goodwill rubbing off onto your related company or persona. And if you invest in all the spin-offs such as theatrical renditions, DVDs, video-on-demand, cable, foreign markets, etc., there can be lucrative earnings. Another reason for investing is taxation perks that can be associated with supporting the arts (dependent on where your invest).

Consider investing in indie movies as a non correlated asset class

Films and film finance have outperformed every non correlated asset class in the world. If you look at the more than $6 billion dollars poured into motion picture finance deals in the last 3 years, the IRR across the spectrum for both studios and independents are resilient to global economic declines in other industries. When defense contractor Honeywell, New York Hedge Fund Elliot Associates, and Dune Capital invested more than a combined total of more than a billion dollars towards several different film funds, many pension funds, private banks, hedge fund managers, private equity groups, and high net worth investors and family offices started to follow suit enter the movie business.

Diversify your portfolio

As with any good investment strategy, investing in indie films should be one string to your bow and not the whole bow. By holding a diversified portfolio, you should be able to reduce your exposure to individual asset risk.

Be in this for the long term

Don't gamble on one film hoping to win a film festival. Look to finance 5, 10, 15, 20, 25, 50, 75 films instead; that way, there is more than just upside on revenues from each one but a final exit strategy after 5-7 years that can bring 300-400% returns on capital invested.

See the silver lining in the entertainment industry in both the good times and the bad.

Even when times are bad, entertainment thrives because people want to escape their economic woes in the fantasy of film. To a great extent, the film industry has a small buffer against economic woes as a result of this need for continuing to be entertained. If you look at the theatrical box office receipts and DVD growth of recent films, including "Slumdog Millionaire" or "Twilight" which had zero movie stars, the ROI on these and numerous other

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films exceed the ROI and revenues of auto manufacturers, real estate, stocks, mutual funds, etc. This occurs basically because a well made film is not a local commodity that is just bought and sold once, but is a global phenomenon that has revenue potential from more than 50 countries and medias including theatrical, cable, TV, satellite, airline, DVD, and the huge explosion of Video-on-Demand.

Be prepared for naysayers

While some private equity outfits may balk at the notion that Hollywood is safe, realize that retail investors as well as institutional investors are transitioning from brick and mortar investments to the film business because there are favorable taxation implications (some U.S. investors and C corporations are looking for either a strict 100% deduction of their investment under IRS Section 181 or simply being in a portfolio of non correlates investment opportunities). Overseas investors simply want a high yield non-correlated asset class that has long term appreciation such as a hybrid film slate and 100% control over U.S. theatrical distribution.

Realize that you can do this as much as the larger investors

In the USA, smaller investors can see their investment bring an immediate return from the monetization of state tax credits as part of the equity stream, an upside in a number of films vs. investing in a single picture, possible Section 181 benefits, as well as being involved with creating jobs and stimulating the economy (every film production creates 50-100 jobs).

Who invests in Movies?

Those known to be investing their money in Hollywood: Anil Ambani, Larry Ellison Of Oracle, Paul Allen Of Microsoft, Steven Rales, Fred Smith of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developers Tom Rosenberg and Bob Yari, and, financiers Sheikh Waleed Al Ibrahim, Michel Litvak, and Philip Anschutz are all behind the finance of a lot of films that range from box office hits to Academy Award winners. Institutional investors and hedge funds investing in films include Elliot Associates, Stark, Columbus Nova, Bain, Honeywell, and others.

Non-correlated investment strategies can be used by investors to neutralize, or counterbalance, the risk that one, or more, of the investments in a traditional portfolio of stocks and bonds falls in value. In order to do this, investors typically place between 5% and 20% of their total investment portfolio into alternative investments to protect the remainder of the portfolio from downside risk.

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If you have any questions about this document or any of the enclosures, please give me a call at the numbers below.

Yours Truly,

Nate Osborne Owner of the LLC's Manager

   

Tananna Entertainment, Inc 300 West 145th st., Suite 4r

(212) 213-9028 Cell: (646) 621-6681 Fax: (212) 213-6474

Email: firmconnection@gmail.com