EFTA01086444.pdf

"ARBITRAGE" PROFORMA P / L REVENUE Low High FOREIGN SALES Foreign Sales Closed 4.387.000 4.387,000 Foreign Sales Remaining 3.465.000 4.422,000 Total Foreign Sales 7,852,000 8,809,000 DOMESTIC (net) 2,250,000 4,250,000 NY TAX CREDIT 1,950,000 1,950,000 Total Revenue 12,052,000 15,009,000 Less Production Loans (6,694.875) (6.694.875) 5,357,125 8,314,125 Less Costs Marketing Fee (75,000) (75,000) Distribution Expenses (80,000) (80,000) Foreign Sales Fee (some already paid from deposits) 7.5% (309,141) (380,916) Guild Residuals 5.6% (565,712) (731,304) Foreign Withholding Tax 1.0% (78,520) (88,090) Collection /Accounting Fees 0.6% (43,186) (48,450) (1,151.559) (1.403.759) Total Revenue net of Sales Costs 4,205,566 6,910,366 Equity Investment (3.200.000) (3.200.000) Gross Profit 1,005,566 3,710,366 Equity Preferred Return 25% (800.000) (800.000) Net Profit 205,566 2,910,366 EFTA01086444 Project: "Arbitrage" Director / Writer: Nicholas Jarecki Cast: AI Pacino. Susan Sarandon. Eva Green. Drake. Michelle Monaghan Producers EPs: Laura Bickford. Robert Salerno. Kevin Turen. Brian Young Sales Agent: Parlay / GK Films US Distributor: TBD Guilds: DGA. WGA. SAG Bond Company: Film Finances (FFI) Location: NYC Start Date: 3/21/2011 Delivery Date (approx.): 5/1/2012 (theatrical deliverables) Production Budget: $9,642.846 Equity: $3,200.000 Foreign Sales to Date: $4,387.500 Available Tax Rebate: $1,950.000 Strike Price: $10.909,875 % of Finance Interest Production Financing Entity Instrument/Securitization USD (gross) Strike Comm. Market/Dist. Charge Reserve Legal Budget (net) Equity Equity (125% ROI) $3.200.000 29% SO $0 SO SO $,0 $3.200.000 Zappos Product Placement $300.000 3% SO $0 SO SO 50 $300.000 Sakonnet New York Tax Credit (year 1 @ .82. year 2 @ .74) $1.950.000 18% SO $0 $429.030 SO 50 $1.521.003 Deposits Foreign Deposits 5715.000 7% SO $0 SO SO 50 $715.000 Junoir Loan (gap) Secured against all unsold foreign territories (200% coverage) $1.729.750 16% SO $0 569.190 SO 50 51.660.560 Senior Loan (prosaic) Secured against all foreign contracts (net of deposits) $3015.125 28% $279.759 575.000 $83.035 $306.044 $1°goo° $2.246,286 $10,909.875 100.00% $279,759 $75,000 $581,225 5306,044 $100,000 $9,642,848 EFTA01086445  EXHIBIT A Film Title: Arbitrage Production Budget $9.642.846 Run Date: 1216/10 Abbreviations: EX=Executicn of Contract SPaStan of principal CPaCompletion of Principal NOD•Notice of Delivery TA•Technical Acceptance TH• US Theatrical Release VD. US Video Release PDa Physical Delivery I. COMPLETED SALES & INITIAL DEPOSITS Category C 85% Deposits Category C Category C Available Collateral Contract Required Advance Payments Territory Distributor Contract Terms Amount a Closing Rate Financed $ - $ - 85% $ - TOTAL CATEGORY A DEPOSITS REQUIRED: I $ - I TOTAL CATEGORY A PAYMENTS FINANCED: I $ - Category C1 8 D Deposits Category D Category D Available collateral Contract Required Advance Payments Territo Distributor Contract Terms Amount Closin Rate Financed Airlines 20% EX. BO% HOD - - 80 - - Australia MD 20% EX. 80% NOD $ - $ - 85% $ - - Benelux MD 20% EX. BO% HOD $ - S - 85% $ - - Brazil Sven 20% EX. 80% NOD $ 575.000 $ 115.000 85% $ 391.000 $ 69.000 Eastern Europe SPI 20% EX. BO% NO0 $ 350.000 $ 70.000 80% $ 224.000 $ 56.000 CIS/Baltic Stales MGN 20% EX. 80% NOD $ 400.000 $ 80.000 80% $ 256.000 $ 64.000 France Metropolitan 10% EXOCNSTN30%1W3OEVD $ 575.000 $ 57.500 85% $ 439.875 $ 77.625 Germany/Austria !Mid Bunch 10% EXTIOSSHODOOISTII $ 1.050.000 $ 105.000 85% $ 803.250 $ 141.750 Greece Raga 20% EX. 80% NOD $ 150.000 $ 30.000 80% $ 96.000 $ 24.000 Italy TBD 20% EX. BO% HOO $ - $ - 80% $ - Japan TBD 20% EX. 80% NOD $ - $ - 80% $ - - Mesita:dist Am/Cen Am Wilma $ - $ - 85% $ - - Middle East Raga 20% EX. 80% NOD $ 150.000 $ 30.000 80% $ 96.000 $ 24.000 Portugal TBD 20% EX. BO% NOD $ - $ - 85% $ - Scandinavia Svensk 20% EX. 80% NOD 3 350.000 $ 70.000 85% $ 238.000 $ 42.000 South Africa TBD 20% EX. 80% NOD $ - $ - 80% $ - South Korea TBD 20% EX. BO% HOD $ - $ - 85% $ - - Spain Triples 20% EX. 80% NOD $ 375.000 $ 75.000 80% $ 240.000 $ 60.000 United Kleidom TBD 20% EX. BO% HOD $ - $ - 85% $ - TOTAL CATEGORY D DEPOSITS REQUIRED: I $ 632,500 I $ 558.375 TOTAL CATEGORY 0 PAYMENTS FINANCED: I $ 2.784.125 I Category E Deposits Category E Category E Available Collateral Contract Required Advance Payments Territory Distributor Contract Terms Amount a Closing Rate Financed China DODream 20% EX. 80% TA $ 45.000 $ 9.000 70% $ 25.200 $ 10.800 Indonesia TBD 20% EX. BO% HOD $ - S - 70% $ Hong Kong TBD 20% EX. BO% HOD $ - S - TO% $ - Israel TBD 20% EX. 80% NOD 3 - $ - 70% $ - Iceland IllynelkorM 20% EX. BO% NO0 $ 7.500 $ 1.500 70% $ 4.200 $ 1.80D TBD 20% EX. 80% NOD $ - $ - 70% $ South Korea TBD 20% EX. BO% NOD $ - $ - 70% Pakistan/Indla/Srl Lanka Italia 20% EX. BO% NOD $ 25.000 $ 5.000 70% $ 14.000 $ 6.00D EFTA01086446  EXHIBIT A Pan Asia Sat TBD 20% EX. 80% NOD 20% EX. BOX NOD - s 70% Portugal Pris $ 35.000 $ 7.000 70% 19.600 8.400 Switzerland Ascot 20% EX. 80% NOD $ 100.000 $ 20.000 70% 56.000 24.000 Taiwan SSG 20% EX. BOX NOD $ 100.000 $ 20.000 70% 56.000 24.000 Thailand TBD 20% EX. BOX NOD - $ 70% Turkey Pinema 20% EX. 80% NOD 100.000 $ 20.000 70% 56.000 $ 24.000 TOTAL CATEGORY E DEPOSITS REQUIRED: I $ 82,500 $99.00 TOTAL CA EGORY E PAYMENTS FINANCED: 15 231,800I II. REMAINING ESTIMATES: % of Discounted Primary Territory Notes Ask Estimate Take Estimate Budget Collateral Value Airline $ 165.000 S 110.009 Japan $ 550.000 $ 275.000 United Kingdom (8 Ireland) $ 1.430.000 $ 1.265.000 Benelux $ 412.500 $ 357.500 Italy $ 715.000 $ 577.500 Australia $ 467.500 $ 385.000 South Africa $ 55.000 $ 44.000 South Korea $ 220.000 $ 165.000 f$ 4.015.000 1 $ 3.179.000 1 2.543.200 % of Discounted Territory Notes Ask Estimate Take Estimate Budget Collateral Value Pan Asia Sat $ 82.500 $ 55.000 Hong Kong 55.000 $ 38.500 Indonesia 82.500 $ 55.000 lame 16.500 11.0:0 Philippales 22.000 $ 11.000 Malaysia 38.500 $ 27.500 Thailand 5 110.000 82.500 407.000 I $ 280.500 I 224.400 Total Unsold Territories I$ 4.422.000 I $ 3.459.500 I III. TERM SHEET CALCULATIONS: Total Budget $ 10,201.116 Less: New York State/New York Cty (1,521.000) Initial Contract Deposits (715.000) Equity Contribution (1st position against Domestic Rights. 2nd postbon against Foreign Rights) (3.500.000) Loan Commitment Amount (Inclusive of Lender Reserve) 4.465016 Commitment Fee (1.75% of CornmibneM Amount) 1.75% $ 83.035 Gap Fee @ 4.0% 4% $ 69.190 Legal Reserve $ 100.000 Estimated Initial Interest Reserve (Lt3.50%) ' 18 months 6.45% $ 306,044 Lender Reserve: 558,270 Total Category A Payments Financed: $ Total Category D Payments Financed: $ 2.784.125 Total Category E Payments Financed. $ 231.000 Assumed Collateral Value of Acceptable Contracts @ Loan Closing 3.015.125 Gap Amount Financed @ 200% Coverage 1.729.750 Total Loan Commitment Amount (Collateral Value of Contracts • Gap Amount) EFTA01086447