* 7:7n

* 7:7n „io're' l ove, id eferyi.cif BLACK CHALK productions Financial Plan EFTA00810545 Cash Flow Currency - $USD 2 of 5 Production Budget $2.SM $2.SM $2.5M $2.5M Equity Investor 53M $3M 33M $3M Domestic Bon Office $2,000,000 $4,000,000 $8,000,000 $1 6,000,000 Rental Rate 42% 44% 45% 48% Theatrical Rentals 5840,000 51,760,000 $3,600,000 $7,680,000 R Theatrical Rentals $840,000 $1,760,000 $3,600,000 $7,680,000 DVD/Blu Ray Revenues $900,000 51,800,000 $3,600,000 $7,200,000 Pay Television (Netflix) $100,000 8800,000 $1,600,000 53,200,000 Digital Distribution (PPV, VOD) $600,000 51,200,000 $2,400,000 54,800,000 Fry - Broadcast / Basic Cable 8200,000 8100,000 5800,000 51,600.000 Foreign Sales S 100,000 8800,000 -I .600,0011 !-;i .•)i)i ii lig) Total Revenues $3,340,000 $6,760,000 $13,600,000 $27,680,000 Distribution Costs & Fees Domestic Distribution Fee 8835,000 SI ,690,000 $3,400,000 56,920,000 Foreign Distribution Fee 31 00,000 $200,000 $400,000 5800,000 Print and Advertising 8500,000 8500.000 5500,000 5500.000 DVD Costs 5270,000 5540,000 $1,080,000 52,160,000 Digital Distribution Costs 840,000 570,000 $130,000 5250,000 Television Distribution Costs 56,000 512,000 $24,000 548,000 Residuals $1 33,600 5270,400 $544,000 81,107,200 Total Distribution Costs & Fees $1,884,600 $3,282,400 $6,078,000 $11,785,200 Total Revenue $3,340,000 $6,760,000 $13,600,000 $27,680,000 Net Re $1,455,400 $3,477,600 $7,522,000 $15,894,800 Investor Capital Repaid $3,000,000 S3,000,000 $3,000,000 $3,000,000 Net Profit, 41,544,600 $477,600 $4,522,000 $12,894,800 Production Company Equity $0 $47,760 $452,200 $1,289,480 Total Investor Return $1,455,400 $3,429,840 $7,069,800 $14,605,320 Total Investor Return 49% 114% 236% 487% kr a.2 1/4:7. ire ,./;In EFTA00810546 a .. intsire:130C4 Cash Flow - Receipt Assu mptions Domestic Box Office (DBO) > US thcatrical rcicasc projected 3-6 months following completion. Performance scenarios arc based on the low, average, high and home run domestic box office (DBO) of selected genre of films within spccific budget ranges. Rental Rate > Exhibitor revenue projected 42% - 48% based on DBO performancc. DVD Revenue > Pay TV > Digital Distribution > Broadcast/Basic Cable > Other Ancillary Media > International Sales > DVD sales arc projected at 45%, 45%, 400/0 and 40% rate of DBO during initial 5 year rcicasc which include all packaged media including Blu-ray and revenue share. 200/o of DBO, including Nctffix ad other streaming interact services. 30% of DBO — this is primarily cable PPV, VOD, and Electronic sell-through of movies (EST) on the intcmct. 10% of DBO Othcr ancillary markets including music, merchandising and licensing, comic books and publishing arc NOT modeled for purposes of this plan, but represent additional salts opportunities. This model only tracks the major nation international sales. EFTA00810547 Domestic Distribution Fees > 25% for theatrical and all other down market revenue streams uanpire in Cash Flow -Cost Assumptions International Distribution Fees > 25% of international receipts from sale to major nations Print and Advertising > is calculated as a blended average based on anticipated theatrical performance, and screen count, with 55°460% of the anticipated box office performance spent on M. The model contemplates sourcing financing though a distribution partner. DVD Costs > 30% of DVD sales Digital Distribution Costs > 5% of digital sales and $10,000 for formatting Television Distribution Costs > 3% of Pay and Frcc television sales Residuals > Residuals arc calculated on guild guidelines on gross receipts received by the Company Production Budget > The total budget is $3M and includes all costs to final production for submission to film festivals and distribution pre- sales formatting. Black Chalk Productions has I0% equity stake. EFTA00810548 EFTA00810549