CENTRO CINEMATOGRAFICO SALENTINO
AND VIRTUOSITY MOTION PICTURES
PRESENT CHALLENGE AT CROWN VALLEY
RE-INVISIONING THE SPAGHETTI WESTERN
Visit the Website: http://challengeatcrownvalley.altervista.org/index.html
INVESTMENT MATERIALS
PRIVATE / CONFIDENTIAL JUNE 2015 1 DISCLAIMER
CHALLENGE AT CROWN VALLEY
THIS CONFIDENTIAL MATERIAL INCLUDING EXHIBITS HERETO (COLLECTIVELY, THIS “PACKAGE”) HAS BEEN PREPARED BY VIRTUOSITY MOTION PICTURES, LLC, (THE “COMPANY”) SOLELY FOR USE IN CONNECTION WITH OBTAINING MORE BINDING, LONG FORM CONTRACTS REGARDING A POTENTIAL INVESTMENT OF EQUITY FOR THE FINANCING OF THE MOTION PICTURE PROJECT, CHALLENGE AT CROWN VALLEY (THE “PROJECT”).
THIS PACKAGE DOES NOT PURPORT TO BE ALL-INCLUSIVE OR TO CONTAIN ALL THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY DESIRE TO EVALUATE THE INVESTMENT. SUBJECT TO THE LIMITATIONS AND CAVEATS CONTAINED HEREIN, THE COMPANY BELIEVES THIS PACKAGE TO BE CORRECT IN ALL MATERIAL RESPECTS AND AS TO THE MATTERS COVERED BY THIS PACKAGE. THE COMPANY MAKES NO REPRESENTATION OR WARRANTY REGARDING ANY FORWARD LOOKING INFORMATION CONTAINED HEREIN. EXCEPT AS OTHERWISE INDICATED HEREIN, INFORMATION IS PRESENTED AS OF JUNE 1, 2015.
CERTAIN INFORMATION CONTAINED IN THIS PACKAGE WHETHER IN THE EXHIBITS OR OTHERWISE HAS BEEN OBTAINED FROM SOURCES DEEMED RELIABLE BY THE COMPANY. SUCH INFORMATION NECESSARILY INCORPORATES SIGNIFICANT ASSUMPTIONS AND ESTIMATES AS WELL AS FACTUAL MATTERS.THE COMPANY CANNOT GUARANTEE THE ACCURACY OF SUCH INFORMATION, HOWEVER, AND HAS NOT INDEPENDENTLY VERIFIED THE ASSUMPTIONS ON WHICH PROJECTIONS OF FUTURE TRENDS AND PERFORMANCES ARE BASED. NO REPRESENTATION OR WARRANTY IS MADE BY THE COMPANY THAT IT WILL ACHIEVE THE SAME OR SIMILAR RESULTS.
EACH PROSPECTIVE INVESTOR WILL BE REQUIRED TO CONDUCT AND RELY ON ITS OWN EVALUATION OF THE COMPANY AND THE PROJECT INCLUDING THE MERITS AND RISKS INVOLVED IN ENTERING INTO A FINANCING AGREEMENT WITH THE COMPANY.
THIS PACKAGE DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, ANYONE IN ANY COUNTRY OR JURISDICTION. NO ACTION HAS BEEN TAKEN BY THE COMPANY THAT IS INTENDED TO PERMIT A PUBLIC OFFERING OF ANY SECURITIES IN ANY COUNTRY OR JURISDICTION. NO PERSON MAY CONSTRUE THE CONTENTS OF THIS PACKAGE OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS ADVISORS OR THEIR RESPECTIVE OFFICERS OR EMPLOYEES AS LEGAL OR TAX ADVICE.
IT IS THE RESPONSIBILITY OF ANY INVESTOR CONTEMPLATING A FINANCING AGREEMENT WITH THE COMPANY, OR WITH REGARD TO ANY OF THE COMPANY’S PROJECTS, TO SATISFY ITSELF AS TO THE FULL OBSERVANCE OF THE LAWS OF ANY RELEVANT TERRITORY OUTSIDE THE UNITED STATES IN CONJUNCTION WITH ANY SUCH INVESTMENT, INCLUDING OBTAINING
ANY REQUIRED CONSENTS AND OBSERVING ANY OTHER APPLICABLE REQUIREMENTS.
DISCLAIMER
1 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 2 THE FILM
CHALLENGE AT CROWN VALLEY Investor Materials
The Film The Proposed Film Makers Spaghetti The Industry Exhibits Contact Us Challenge at Investment Cast An Westerns Companies Landscape The basic How you Crown Valley The equity The current introduction A history of The A look revenue can be one of reimagines needed to cast to the talented the Italian- Companies inside the streams for our the “spaghetti make this attached to writer/ made western involved in the industry independent investors. western” film. this film director, in modern making of this and the films / and Page 20 genre for Page 3 and their producers and film. picture. independent for this film. global respective composer. Pages 6-8 Pages 9-11 film market. Pages 15-19 audiences. characters. Page 5 Pages Page 2 Page 4 12-14
The classic themes of THE STORY And so, Caleb, and revenge, challenge and Bessie wait for the dark redemption play out across specter of destiny to the dusty, windswept return across the streets of Crown Valley, a badlands of New Mexico dying town on the edge of to Crown Valley in the New Mexico’s badlands. form of Frank Larsen, who has thought about Caleb is a man at war with nothing else for 7 long himself and with the years. demons of his dark past that haunt him in his every Like a phoenix rises waking hour. A man who from the ashes, so too once had a plan, once had must Caleb, and Bessie a path, and who has lost it as they hurtle toward a all. Along with Bessie, the deadly and unavoidable woman who loved him, and intersection of revenge, still does. retribution and the realization of a man’s Once respected, Caleb is innermost fears… now the town drunk and himself out of his downward spiral. When he learns that his old cannot seem to pull nemesis, Frank Larsen, is due to be released from prison after …all of it played out on 7 years, Caleb wonders if a collision with Frank, and with his the desolate streets of past, is as inevitable as it seems. Crown Valley.
The films of famed Italian director, Sergio Leone gave rise to a new genre of filming in the 1960’s, the “spaghetti western,” and produced such classics as “ A FISTFUL OF DOLLARS,” “FOR A FEW DOLLARS MORE” and the blockbuster “THE GOOD, THE BAD AND THE UGLY,” all starring a young Clint Eastwood. Leone’s “ONCE UPON A TIME IN THE WEST” which starred Charles Bronson and Henry Fonda in a rare bad guy role, is considered to be one of the best films ever made. These Italian-made westerns continued with the films of Sergio Corbucci and his “Django” films which starred Italian film star, Franco Nero.
CHALLENGE AT CROWN VALLEY intends to reimagine this popular style of film making and bring it to a new generation of global audiences.
Written and directed by Giuseppe Antonio Miglietta, Challenge at Crown Valley incorporates many of the classic themes that were so prevalent in the massively successful “spaghetti western” genre. Themes of redemption, revenge, pathos, and absolution run through this film.
Shot on location in Italy and Spain, Challenge at Crown Valley will have the authentic look and feel of the Leone
films. FILM THE
2 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 3 THE INVESTMENT
Producers seek a TOTAL EQUITY INVESTMENT OF $500,000 USD.
With a production budget of $1.6M USD, the film will be shot on location in Italy and Spain in late Summer 2015. The producers have secured substantial incentives for the production, as well as partial deferments from cast and crew, allowing Challenge at Crown Valley to be made for a minimal equity investment.
Investors secure a pro-rata ownership percentage of all film revenues in perpetuity (including all ancillary revenues from DVD, VOD, streaming and any other services). $500,000 / $1,600,000 = 31.25% $100,000 / $1,600,000 = 6.25% $250,000 / $1,600,000 = 15.625% $50,000 / $1,600,000 = 3.125%
Italy’s UCI Cinemas is on board to distribute the film in Italian Markets. Other foreign market distributors, as well as North American domestic distribution will be sought.
CHALLENGE AT CROWN VALLEY IS AN ITALIAN /AMERICAN CO-PRODUCTION BETWEEN CENTRO CINEMATOGRAFICO SALENTINO AND VIRTUOSITY MOTION PICTURES.
**ALL US FUNDS TO BE ESCROWED IN A US BANK, UNDER THE DIRECTION OF TODD ALLEN, AND TO BE TRANSFERRED IN UP TO 3 TRANCHES TO CENTRO CINEMATOGRAFICO SALENTINO’S ITALIAN BANKING ENTITY FOR PRODUCTION FINANCING.
THEINVESTMENT
3 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 4 PROPOSED CAST + CHARACTERS
TIM ABELL as Caleb TODD ALLEN as Frank Larsen ELEONORA ALBRECHT as Martha Keizer
Also Known For: Also Known For: Also Known For: -Eyewitness -Django Unchained -Darkside Witches -Subconscious -The Apostle -A Special Day -Soldier of Fortune -Wyatt Earp -Se sei cosi ti dico si
SASHA HIGGINS as Bessie RIYA RAY as Isabel ALEX DEMCENKO as James Felton
Also Known For: Also Known For: Also Known For: -Blood Wolf -Tie The Knot -Darkside Witches -Dark Moon Rising -Loaded -I Am Not From Barcelona -The Badger Game -Dhoom 3 -La vita e una cosa meravigliosa
MARTIN ANGERBAUER as Sam Jordan ALISON MEREDITH as Carole
CASTPROPOSED + CHARACTERS
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5 THE CAST + CHARACTERS 5 THE FILM MAKERS
WRITER / DIRECTOR GIUSEPPE ANTONIO MIGLIETTA is a student of film directing, writing and acting with Maestro Giuseppe Ferrara (I pugni in tasca, Il caso Morro, Cento giorni a Palermo, I banchieri di Dio, Giovanni Falcone).
Miglietta wrote and directed his first feature in 2004, the well received “Dimenticare Mio Padre.” He has since written and directed numerous other projects. (Esame finale, Il treno della vita). He has also taught film making at I.T.C. of Campi Salentina.
CO-WRITER
DOMENICO RIZZI is a renowned author and is a co-writer of Challenge At Crown Valley. Rizzi is the author of numerous novels including La casa sul fiume del vento, I segreti di Dunfield, Frontiere del West, I cavaliere del West, I peccati di Dunfield and others.
PRODUCER / ACTOR (PLAYS FRANK LARSEN)
TODD ALLEN (ACTOR/WRITER/PRODUCER) has close to 60 film credits in his lengthy career. He has appeared in some of the most successful projects of the past several decades, including Quentin Tarantino’s “Django Unchained”. Todd has worked with many of Hollywood’s most respected film makers, including three films with Academy Award- winner Kevin Costner, multiple appearances with Robert Duvall, Gene Hackman and director Lawrence Kasdan, as well as many others.
Todd is the founder of independent development, production and distribution enterprise, Virtuosity Motion Pictures.
CO-WRITER
CESARE BARTOCCIONI has been writing short stories since his early youth. After graduating at University of Urbino in English and Spanish, Cesare has taught English in Finland and in Italy and currently holds that position at the State Junior Secondary School in Verucchio (Rimini). An English and Spanish translator, he recently published a historical/utopic novel, Deanor, a critical allegory of nowadays Europe set in its Middle Ages/Renaissance and drawing upon the myths of western civilization.
COMPOSER ENRICO FABIO CORTESE is a music composer, active primarily as a film composer, and music director/producer. He lives in the Tuscany region of Italy. His works include film, television, and theater scores, as well as music composition for ballet. Television and Cinema soundtracks have included RAI TV movie series( "I Figli Strappati" "La Caccia," "Bel Ami," "Una Madre,") and cinema scores in collaboration with several european countries and overseas (“Frau2suchtHappyend”, “Bite" "The Witching Hour").
Co-writers on this film are: Domenico Rizzi, Cesare Bartoccioni, Luca Barbieri, Marcello Rufolo and Roberto Guarino. THEFILM MAKERS
5 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 6 SPAGHETTI WESTERNS
When Sergio Leone made the revisionist A FISTFUL OF DOLLARS in 1964, using a little known American actor named Clint Eastwood, he claims to have done so in an effort to “reinvigorate” a tired genre. Leone had said that the American-made westerns of the 1950’s had become “dull, too preachy, and not believable.” Spawning a revival of an entire genre of film making, Leone went on to direct Eastwood in two more films, which became known as the “Dollar Trilogy”. Fistful of Dollars, followed by For a Few Dollars More, and culminating with 1966’s The Good, The Bad and The Ugly, a film which was made for a relatively low $1.2 million dollar budget and went on to earn $25.1 million at the global box office. Adjusted for inflation, the film has earned $178.4 million in World Wide box office.
Due, almost exclusively, to Leone’s “spaghetti westerns,” as they became known, Clint Eastwood went on to become a major film star and was the highest paid actor in the world for many years.
The Good, The Bad and The Ugly appears on several Top 100 Films of All Time lists. Noted director Quentin Tarantino chose the film as the “Best Directed Film of All Time.”
The films of famed Italian director Sergio Corbucci received great acclaim and achieved tremendous box office success, as well. Corbucci’s “Django” series starring Italian film star Franco Nero in the title role were phenomenally successful. As the genre took hold, there were a host of European and American film makers, once again, making these films.
SPAGHETTI WESTERNS SPAGHETTI
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After saying he was “retired” from making Westerns, Sergio Leone returned to the genre one more time at the request of Paramount Pictures, and because he would have the opportunity to work with Henry Fonda, an actor with whom he had long wanted to work. With script rewrites by Bernardo Bertolucci, and Dario Argento, Leone began filming the epic, ONCE UPON A TIME IN THE WEST in May of 1968. The film starred Charles Bronson (in a role that was intended for Eastwood), Jason Robards, Claudia Cardinale and in what many considered a casting coup, Henry Fonda played a rare bad guy role, the role of “Frank".
With a score by award-winning Ennio Morricone, Leone’s regular collaborator, who had also written the distinctive music made famous by The Good, The Bad and The Ugly, as well as scores for Leone’s other westerns, the film was released in December 1968.
Though less popular in the US than the earlier Dollars Trilogy, Once Upon a Time in the West has gained an ardent cult following around the world, particularly among filmmakers. In the late 1960s and 1970s, it was re-evaluated by young filmmakers and critics, many of whom called it a masterpiece. Directors including Quentin Tarantino, Martin Scorsese, George Lucas, John Carpenter, and John Boorman have spoken about the influence that the film had on them. It is now considered one of the greatest films ever made and some critics consider it to be the finest Western and Sergio Leone's finest accomplishment as a director.
SPAGHETTI WESTERNS SPAGHETTI
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These films were the precursors to many of the best westerns of the past few decades. Films like Pale Rider, The Outlaw Josey Wales, High Plains Drifter and 1992’s Academy Award winner for Best Picture, Unforgiven, which was dedicated by Clint Eastwood simply to “Sergio.” More recent films like Tarantino’s Django Unchained, as well as his upcoming Hateful 8, also owe their roots to the spaghetti westerns of Sergio Leone and Sergio Corbucci.
CHALLENGE AT CROWN VALLEY is a film that seeks to revive a genre, to re-imagine the classics made under the greatness of Leone and Corbucci. A film that seeks to engage a new generation of film audiences world wide.
SPAGHETTI WESERNS SPAGHETTI
8 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 9 THE COMPANIES
An Italo-American co-production, Challenge At Crown Valley brings together the talents and dedication of many individuals in an effort to reinvigorate a successful genre of film making.
Centro Cinematografico Salentino A Motion Pictures Production and Service Company
Via Bachelet, 6 – ARADEO (Lecce) Tel. 0836 55 20 03 – Fax 0836 55 32 07 Cell. 335 82 17 251
The CENTRO CINEMATOGRAFICO SALENTINO, formerly Cineclub “Massimo Troisi” – Centro Studi Cinematografici, was born in 2002 with the aim of promoting independent film making, focusing on true, real stories, where the public can identify and recognize themselves with the characters.
It produces several short films, among which “Esame finale” (Final Exam), produced in 2004 and introduced in national festivals, where it earns various approvals, especially among the youths, and the last one: “Il treno della vita” (The Train of Life), realized within the project “Leggere Cinema” (Reading the Cinema), Cinematography workshop.
In 2005 it realizes the first large-scale effort film: “Dimenticare mio padre” (Forgetting My Father).
The film, born from a subject idea of author Giuseppe Antonio Miglietta, following the press conference held at Hotel Patria in Lecce, and the premiere at Cine Teatro Italia of Gallipoli where a sold out was recorded, together with the approval from critics, went into a successful distribution, during that summer, in almost fifty piazzas in the province of Lecce.
Among the next engagements, an Italo-American production, for the realization of the western film “Challenge at Crown Valley”.
• Executive Production • Casting Organization • Location Searching
THECOMPANIES
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VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 10 THE COMPANIES
VIRTUOSITY MOTION PICTURES
VIRTUOSITY is an independent development, production and global distribution enterprise founded in 2013 by actor/writer/producer Todd Allen.
The Company currently has more than 20 feature film properties in development, as well as an impressive slate of top tier television programs, which include 3 long form television mini-series projects, 3 episodic series properties, 3 documentaries and several unscripted programs.
Allen has appeared in close to 60 films in his career, working with many of the industry’s top professionals, and brings more than 30 years of experience to all of Virtuosity’s operations. He has appeared multiple times with Academy Award winners, Kevin Costner, Robert Duvall and Gene Hackman. He brings a wealth of operational experience to Virtuosity including a history of complex international property rights negotiations. Cumulatively, Virtuosity’s senior executives bring more than 70 years of experience in film making, corporate finance, post production, advertising, visual effects and global distribution.
COMPANY STRATEGY
The Company is story driven, and talent driven. We focus on award-caliber materials, which are put through a rigorous development process, packaged with top level talent, and made within a prescribed budget range of $8M to $25M (by far the most lucrative box office sector). We will, at times, partner with other companies to make films outside of our stated budget range. Challenge at Crown Valley is such a case.
DISTRIBUTION The Company believes that by raising P & A funds along with Production funding, we can both materially improve the financial terms negotiated with 3rd party distributors, and provide an unparalleled layer of security for our investors, which lead to outstanding risk adjusted ROI’s.
FILM FUND I
Virtuosity Film Fund I is the first of several repeatable film funds to be formed by Virtuosity management. Film Fund I is a $75M fund which encompasses up to 5 motion picture properties, and includes substantial P & A expenditures for each film.
Film Fund I PPM and other investor materials are available upon request. THECOMPANIES
10 10 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 11 THE COMPANIES
ACCESS TO FILM LIBRARIES
Virtuosity controls, has options on, or has access to a number of award-caliber properties and has identified several potential properties and groups of properties it wishes to acquire.
1. Library A. Virtuosity maintains a long-standing relationship with the owners of a major motion picture Studio film library, consisting of approximately 250 titles. Many of these films are Academy Award winners or nominees, were hugely successful at the box office, and many of them offer outstanding, lucrative opportunities for remake or sequel productions.
2. Library B. Virtuosity has access to and has previously acquired a property from the estate-owned literary properties of a best-selling author of Western novels, consisting of approximately thirty titles.
3. Library C. Virtuosity has access to the estate owned literary properties of an Emmy- winning writer consisting of approximately twelve titles.
4. Library D. Virtuosity has access to a collection of titles and IP properties owned or controlled by Todd Allen.
A FEW OF TODD ALLEN’S RESUME HIGHLIGHTS:
My All American - Directed by Angelo Pizzo Django Unchained - Directed by Quentin Tarantino The Apostle - Directed by Robert Duvall Wyatt Earp - Directed by Lawrence Kasdan The Postman - Directed by Kevin Costner Grand Canyon - Directed by Lawrence Kasdan Witchboard - Directed by Kevin Tenney Silverado - Directed by Lawrence Kasdan Broken Trail - Directed by Walter Hill Collateral Damage - Directed by Andrew Davis Swing Shift - Directed by Jonathan Demme Friday Night Lights CSI NCIS Uncommon Valor 48 Hours
and many more… THE COMPANIES
11 11 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 12 INDUSTRY LANDSCAPE
THE MOTION PICTURE INDUSTRY
The motion picture industry is a complex fusion of creative and financial endeavors.
The broad gamut of companies with involvement in the business of film runs from mega- conglomerates like Time-Warner and Viacom to the neighborhood video shop on the corner.
As famed writer William Goldman once wrote about Hollywood in his book Adventures in the Screen Trade…”nobody knows anything.”
Historically, Hollywood has posted some of its most profitable years during mes when other sectors of the economy were showing signs of decline. Worldwide Box Office revenues in 2013 reached an all- me high of $35.1 Billion with the greatest increases coming in the digital arena though subscriber based services such as Ne lix and Hulu, whose most recent earnings were reported at $1 Billion with over 5 Million subscribers. Digital movie downloads from such services surged 47% to $1.9 Billion according to data released by Digital Entertainment Group, an industry trade organiza on. Domes c Box Office (in Billions) Interna onal Box Office (in Billions)
$40B $34.7 $35.1 $31.6 $32.6 $29.4 $30B
$23.9 $24.2 $22.4 $20B $18.8 $21.0
$10B
$10.6 $10.6 $10.2 $10.8 $10.9
$0B 2009 2010 2011 2012 2013 Worldwide Box Office Revenue 2009-2013
**Not all 2014 Box Office data is available currently.
INDUSTRY LANDSCAPEINDUSTRY
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Film Studio Market Share
There are six major diversified media conglomerates whose various movie distribu on subsidiaries command approximately 90% of the U.S. and Canadian box office. Today, studios func on as the primary backers and distributors of films whose actual produc on is largely handled by independent companies.
*Others also include MGM, Summit Entertainment, Focus Features, Lionsgate, The Weinstein Company, Rela vity and Fox Searchlight.
Digital Revolu on Generates New Demand
Technological advances con nue to lead the industry in the produc on arena and distribu on arenas, crea ng new opportuni es to maximize company and investor revenues. To stay at the forefront of industry advances, Virtuosity has aligned itself with strategic partners such as Snowball Media, a cu ng edge company (notable for its campaigns on Amblin Entertainment’s SHINDLER’S LIST, COUNT OF MONTE CRISTO and for media launches for AMERICAN IDOL and Fox hit television series, 24). Snowball is a frontrunner in digital marke ng and launching mul -pla orm entertainment “networks.”
The Impact of Independents
In the past ten years, independent films alone have generated an average total box office of approximately $3.4 Billion with revenues consistently averaging 35.5% of the total domes c box office. The greatest upsurge in those revenues has been due to quality, story-driven material enhanced by recognizable talent, excellent produc on values and well planned marke ng/ exhibi on pla orms. Virtuosity an cipates forming strategic agreements with top er Foreign Sales organiza ons to assist in the the marke ng and distribu on of its products in overseas markets.
INDUSTRY LANDSCAPEINDUSTRY
13 13 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 14 INDUSTRY LANDSCAPE
“‘There is an older audience that is growing, and it’s an under-served audience, which makes for an obvious and important opportunity,’ said Nancy Utley, co-president of Fox Searchlight, whose ‘Black Swan’ sold over $100 million at the North American box office... movies like ‘The Social Network’ and ‘The King’s Speech’ have become hits based on wit and storytelling, not special effects.” - The New York Times
“The biggest growth in film will come from ‘over the top’ streaming services like Ne lix, Hulu and Amazon.com. In 2013, OTT will generate $6.569 billion in revenue; in 2017, it's projected to reach $17.438 billion, represen ng growth of 27.2 percent annually.” - Price Waterhouse Coopers, 2013
“Movie theaters in North America con nue to draw more people than theme parks and U.S. sports combined.” - MPAA, 2013
Opportunity Exists
The Academy Award winners for Best Picture over the last several years have all been lower to moderate budget independent films sold to buyers represen ng all arenas of the global film marketplace.
Birdman 12 Years A Slave 2015 Best Picture 2014 Best Picture Budget: $22M Budget: $20M Worldwide Gross: $68.1M Worldwide Gross: $178.1M
The Ar st The King’s Speech 2012 Best Picture 2011 Best Picture Budget: $16M Budget: $14M Worldwide Gross: $128.3M Worldwide Gross: $414.2M
The Hurt Locker Black Swan 2010 Best Picture 2010 Best Picture Nominee Budget: $11M Budget: $15M Worldwide Gross: $49.2M Worldwide Gross: $329.4M
The 2013 Winner for Best Picture, Argo, had a relatively small (by Hollywood standards) budget of $40M. To LANDSCAPEINDUSTRY
date, the film has earned $221.3M in world-wide box office.
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VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 15 EXHIBITS
PROFIT FLOW DIAGRAM (CHALLENGE AT CROWN VALLEY ONLY)
REVENUE
Worldwide Theatrical DVD TV Gov’t Incen ves & Other
Gross Receipts
P&A and Distribu on Talent Other Costs Fee Residuals1
Net Receipts
Senior Debit (if any)2
ALL NET PROFITS ARE SPLIT PRO-RATA, PARRI PASSU AMONG INVESTORS, PRODUCERS/DIRECTOR/CAST/ WRITERS/ AND CREW (BASED UPON OWNERSHIP PERCENTAGES)3
Footnotes
1 - Payments to writers, directors, third-party producers and actors that are dictated by industry unions and are con ngent on proceeds of the film. These amounts are not included in the film’s budget.
2 - Senior Debt may be bank loans, gap financing or other debt instruments. EXHIBITS 3 - Salary deferments are calculated the same as equity investments.
4 - This profit flow diagram is specific to Challenge At Crown Valley only.
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VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 16 EXHIBITS
PRODUCTION TIMELINE
Foreign Sales Tax P&A Capital Guarantees Incen ves Recoupment
Profit Share (investors, cast, director, producers, crew) (pro-rata, parri passu)
2-3 months 3 months 4-5 months 1-2 months 3-6 months 9-30 months
Pre-Produc on Principal Post-Produc on Delivery Theatrical DVD Television & Photography Release Release other exploita on
Equity P&A Capital
**The Timeline above is representative of a typical film investment timeline. The profit share component pictured is specific to Challenge At Crown Valley and does not represent other Virtuosity projects.
EXHIBITS
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VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 17 EXHIBITS
**Films listed below are budgeted at $6M and below and show world-wide box office results.
Title Year Budget Worldwide Box Office
The Full Monty 1997 $3.5M $258M
Lock Stock & Two Smoking 1998 $1.35M $28.3M Barrells Napoleon Dynamite 2004 $400K $46.1M
Rocky 1976 $1.08M $225M
My Big Fat Greek Wedding 2002 $5M $368M
The Purge 2010 $3M $90M
The Good, The Bad & The Ugly 1967 $1.2M $25.1M (178M adjusted)
Juno 2007 $6M $231M Saw 2004 $1.2M $103M
EXHIBITS
17 17 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 18 EXHIBITS
SAMPLE PRODUCTION BUDGET - $1.6M
DIRECTOR: Giuseppe Antonio Miglie a START DATE: TBD PRODUCER: T. Allen / Others SHOOT: 24 Days SCRIPT DATE: Preliminary LOCATIONS: Italy, Spain BUDGET DATE: May 15, 2015 POST: 14 weeks Italy, LA, Texas SAG Low Budget Compliant
Acct No Category Descrip on Page Total 11 - 00 STORY & SCENARIO 1 $ 63,000 12 - 00 PRODUCERS UNIT 1 $ 93,000 13 - 00 DIRECTION 2 $ 38,000 14 - 00 CAST 3 $ 151,000 15 - 00 ATL TRAVEL & LIVING 16 $ 118,000 Total Fringes $ 25,350 TOTAL ABOVE-THE-LINE $ 488,350
20 -00 EXTRAS & CROWDS 25 $ 12,000 21 - 00 PRODUCTION STAFF 26 $ 81,000 22 - 00 ART DIRECTION 33 $ 32,000 23 - 00 SET CONSTRUCTION 34 $ 25,000 24 -00 SET OPERATIONS 38 $ 35,500 25 -00 SPECIAL EFFECTS 43 $ 12,000 26 -00 SET DRESSING 44 $ 43,000 27 -00 PROPERTY 48 $ 25,000 28 -00 ANIMALS & PICTURE VEHICLE 50 $ 18,000 29 -00 WARDROBE 50 $ 28,000 30 - 00 MAKE UP & HAIR DRESSING 54 $ 25,000 32 - 00 LIGHTING 56 $ 31,000 33 - 00 CAMERA 58 $ 42,000 34 - 00 PRODUCTION SOUND 61 $ 22,000 35 -00 TRANSPORTATION 63 $ 65,000 36 - 00 LOCATION 71 $ 21,500 38 - 00 PRODUCTION FILM & LAB 77 $ 31,000 39 - 00 BTL TRAVEL & LIVING 78 $ 51,300 40 - 00 TESTS 80 $ 2100 41 - 00 SECOND UNIT 80 $ 19,000 Total Fringes $ 13,680 TOTAL PRODUCTION $ 635,080
EXHIBITS
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VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015 19 EXHIBITS
45 - 00 EDITORIAL 82 $ 34,000 46 - 00 MUSIC 83 $ 27,000 47 - 00 POST SOUND 83 $ 18,000 48 - 00 POST-FILM/LAB 83 $ 28,000 50 - 00 TITLES 84 $ 15,000 51 - 00 DIGITAL INTERMEDIATE 84 $ 41,000 52 - 00 VISUAL EFFECTS 84 $ 15,000 Total Fringes $ 10,000 TOTAL POST PRODUCTION $ 188,000
65 - 00 PUBLICITY 85 $ 15,000 67 - 00 INSURANCE 85 $ 52,000 68 - 00 GENERAL EXPENSES 85 $ 25,000 TOTAL OTHER $ 92,000 CONTINGENCY: 10.0% $ 140,343 BOND FEE: 3.0% $ 42,102 RESERVE FOR FINANCING FEES/COSTS $ 15,000 OVERHEAD $ 0 Grand Total $ 1,600,875
** All values shown in USD.
EXHIBITS
19 19 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015
20 CONTACT US
CHALLENGE AT CROWN VALLEY
PLEASE DIRECT ALL INQUIRIES TO:
TODD ALLEN [email protected] 310.426.0022
VIRTUOSITY MOTION PICTURES 3801 Capital of Texas Hwy Suite E240-82 Austin, TX 78746
www.virtuositymotionpictures.com
http://challengeatcrownvalley.altervista.org/index.html
CONTACT US CONTACT
20 VIRTUOSITY MOTION PICTURES, LLC - CONFIDENTIAL MEMORANDUM - CROWN VALLEY - JUNE 2015