"ARBITRAGE" FINANCE PLAN 11.24.10

"ARBITRAGE" FINANCE PLAN 11.24.10 "SIMPLE" BREAKDOWN;) TOTAL CASH BUDGET (WHAT MOVIE COSTS TO MAKE) 9,500,000 ASSUME: 32 shoot days, nyc, dir provides key locations, no producer/writer/director fees FOREIGN SALES PRESALES (ASSUME WILL HIT) ACTUAL SALES TO DATE REMAINING SALES DEPOSITS CLOSED LESS DEPOSITS (SOLD FOREIGN BASE) BANK LOAN ON SOLO FOREIGN BASE GAP LOAN ON REMAINING FOREIGN BASE TOTAL FOREIGN LOAN FEES FOREIGN LOAN PROCEEDS TO PRODUCTION LEFT FOR EQUITY TO RECOUP FROM UNLOANED FOREIGN AFTER FEES 7,771,500 4,387,000 3,384,500 AT AFM- beat take by 8%, assume 5% overall above estimates Closed per attached chart 658,050 15% 3,728,950 2,983,160 80% After discount and fees 1,692,250 50% After discount and fees 514,295 11% 4,675,410 2,581,795 TAX CREDIT TAX CREDIT BANK LOAN ON TAX CREDIT TAX LOAN FEES TAX PROCEEDS TO PRODUCTION LEFT FOR EQUITY TO RECOUP FROM UNLOANED TAX CREDIT AFTER FEES 1,995,000 1,695,750 169,575 1,496,250 129,675 21% Per Bob Salerno on NYS Tax Credit 85% 10% 75% After discount and fees ALL LOAN PROCEEDS TO PRODUCTION DEPOSITS TO PRODUCTION ALL PROCEEDS TO PRODUCTION 6,171,660 658,050 6,829,710 SALES FEES SALES COMMISSION MARKET CHARGE TOTAL SALES FEES 582,863 7.5% 150,000 732,863 Lisa Wilson at Parlay/GK Films OTHER FEES WITHHOLDING TAXES (WHT) COLLECTION ACOUNT (CAM) RESIDUALS TOTAL OTHER FEES 77,715 77,715 233,145 388,575 1% 1% 3% TOTAL FEES (SALES AND OTHER) PROCEEDS LESS FEES (SALES AND OTHERS) ADDITIONAL EQUITY NEEDED FOR BUDGET 1,121,438 5,708,273 3,791,728 EQUITY TOTAL EQUITY EQUITY "A" COMMITTED EQUITY "B" NEEDED RECOUPMENT/PROFIT ASSUME US FIRESALE UNBORROWED FOREIGN & TAX PROCEEDS TOTAL RECOUPMENT IF NO OVERAGES 3,791,728 1,000,000 2,791,728 1,081,422 2,711,470 3,792,892 Nicholas Jarecki and Kevin Turen DVD alone worth 2mm Relatively secure break-even EFTA00593587