MOTION PICTURE FINANCING STRUCTURE
financing may be via Participations in the form of a STANDBY LETTER OF
CREDIT conditional upon completion of the picture. Financing may also
be accommodated via direct cash participations, production services
participations (i.e. studio, post production facilities), foreign
pre-sales and gap financing, state film incentive programs and crowd
funding platforms i.e. IndieGoGo - Kickstarter.
PROFIT PARTICIPATIONS AND SCREEN CREDITS: Equity Participants can receive:
a) A premium percentage in accordance with respective equity participations.
b) Proportionate, pro rata, pari passu share of 50% of net proceeds (profits).
c) Production Associate credits in main or end titles.
All third party profit participants (actors, director other talent) are from producers' share, so equity participants' share is never diluted
RECOUPMENT AND DISTRIBUTION OF REVENUES
monies received by the production entity from the
distribution/exploitation of the picture from all sources (theatrical,
TV, home video/DVD, foreign, et al) will be remitted to a special
account which may be administered by
a third party, (bank, accounting firm or collection management entity
i.e. Fintage House) which will then distribute the monies in accordance
with a predetermined schedule as follows.
a) First, to pay off the production bank loan and any bank gap financing (recoupment of cost of picture).Thereafter:
b) A Premium Percent to Equity Participants pro rata, pari passu per respective equity participations.
c) Deferments, if any (to talent & third party participants)
d) Profits in accordance with predetermined profit schedule.
THE GOOD LUCK MISS WYCKOFF PRODUCTION HAS QUALIFIED FOR A MISSISSIPPI STATE FILM INCENTIVE TAX CREDIT REBATE. THIS TAX CREDIT IS A NON-RECOUPABLE AMOUNT. THUS, THE RECOUPABLE AMOUNT FOR COST OF PRODUCTION IS LESS THE AMOUNT OF THE TAX CREDIT.
SHIVER PRODUCTION QUALIFIED FOR AN OREGON STATE FILM INCENTIVE TAX
CREDIT REBATE. THIS TAX CREDIT IS A NON-RECOUPABLE AMOUNT. THUS, THE
RECOUPABLE AMOUNT FOR COST OF PRODUCTION IS LESS THE AMOUNT OF THE TAX
HENCE, THERE MAY BE LIMITED DOWNSIDE RISK FOR AN EQUITY PARTICIPANT (pursuant to the above parameters) .
NOTE: One must evaluate the likelihood of the project having commercial viability or potential loss. In this respect, many films in the "thriller-horror" genre or that have exploitable and/or controversial elements or themes with relatively recognizable names have been historically saleable. Further, there is a constant demand for product to fill the pipeline for foreign and domestic distribution as well as for theatrical, satellite, cable, free television VOD and home video/dvd markets.