"EUROAMERICA FILM PRODUCTIONS, LLC
BUSINESS PLAN for the production of FEATURE FILM SCREENPLAYS
CONFIDENTIAL
Jeff Gold 13900 Panay Way, M307 Marina Del Ray, CA. 310/827-9165 j47737@yahoo.com
Sam Bass 2018 Broadway Little Rock, AR. 72206 501/952-2056 Sambass155@sbcglobal.net
EUROAMERICA FILM PRODUCTIONS, LLC (a new corporation formed for this project) Loglines for the production of Six feature film screenplays: “CUTTER” (Horror) An ambitious surgeon with a cutting fetish is converted by his lover to the monumental world of the Dracula Empire only to be pursued by two half-breed vampire brothers. “HONOR” (Action/Adventure) An aging American soldier turned contract agent for the government lives a life of espionage and barbarian drama. After many years of this harsh life he learns to treasure his family and become the honorable man that he is. “WESTGATE” The Black Viper Adventure (Action/Adventure) A brilliant teenage boy is thrust into the stealth worlds of Nazi spies in America and a charismatic super hero known as Black Viper. “GRANDMA GUNNER” (Action/Adventure) A ghetto grows up around an elderly woman's home. She is intimidated, beaten and robbed, but this strong woman is transformed into a blue haired Rambo and takes her neighborhood back by her own form of intimidation mixed with a unique ability to survive. “PAST LIVES” In the past century, three thieves steal an ancient artifact dagger; The Sapphire Dragon. Karmic consequences manifest when reincarnation unfolds into revenge and the same three men are at odds over the Sapphire Dragon, a century later. “GOOMBAHS” An unconventional love story set within a ferocious background of mob betrayal, revenge and retribution where friendship runs as deep as the red blood in your veins and where that same friendship produces your killer.
EUROAMERICA FILM PRODUCTIONS, LLC Business Plan Index Introduction ………………………………………………………………….. The Corporation (LLC) and Policies ...............……………………………..... The Investment ………………………………………………………………. The Productions ……….....…………………………………………………... The Feature Film Production General System ....…………………………….. The Synopsis, "CUTTER, HONOR, WESTGATE, GRANDMA GUNNER, PAST LIVES & GOOMBAHS" Cast of Contemplated Stars (wish list) .....................…………………………. Location .........................................…………………………………………… Feature Film Production Budget .........……………………..……………….... First Year Revenue Projection .......………..……………..…………………… Proforma: five year revenue projection .....................………………….……... Trust Account ...................................………………………….…………….... Completion Guarantee, Insurance and License ......…………….…………….. Production Team ..................................………………………….……………. Conclusion .......................................………………………………………….. -i01-10 11 12 13 14-20 21 22 23 24 25 26 27 28 29
EuroAmerica Film Productions, LLC Introduction The driving force behind this filmed entertainment production is Jeff Gold a feature film director and Sam Bass, a screenplay writer associated with award winning industry professionals to produce feature film screenplays from their broad screenplay inventory. The plan is to produce filmed entertainment releases in low cost areas of the country that have local cooperative governments and business communities. Entities that offer cost saving incentives including, REBATES AND TAX CREDITS. Some proposed areas are the states of Louisiana and Mississippi USA. At this time these locations will save budgeted capital via less expensive to nocost locations, low equipment cost, low local crew cost, less transportation/travel expenses, low housing cost and substantial rebates and tax credits. The quality and market appeal of the feature film will be maintained by using one or two starring and/or co-starring box office draw talents and cameo appearances by equally well-known marketable celebrities. Jeff’s long career as a director has allowed him to be associated with many experienced award winning talents in the field of film production insuring a quality result of his feature films when utilizing their services. To guarantee a sound basis of development for the feature films, the screenplays will be delivered to a professional script doctor and be processed through a script polishing committee to fine tune them for a "shooting draft". Sam and Jeff's standard and goal is to complete and deliver a first class upbeat highly marketable feature film presentation at a low cost as compared to today escalated market. The following information will describe the film production and its distribution into the market place. See you in the movies!
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EuroAmerica Film Productions, LLC The Limited Liability Corporation Formation of the filmed production operating organization Jeff Gold and Sam Bass are forming a feature film corporation for the purpose and scope here in set forth and it will function as a film production and distribution company known as EuroAmerica Film Productions, LLC, a State of Arkansas Corporation, USA herein after referred to as “EFP”. Purpose and scope of the corporation The purpose of the corporation shall be limited to film production, distribution, licensing and/or sales related to those film markets including television and other related markets for the production of income and profit. The company is formed to produce, market and distribute films domestically and internationally. Distribution of the films Domestic and international theatrical distribution by an independent film producer is usually negotiated with an established distribution company. If a satisfactory arrangement is not made Distribution may be completed by the producer of the film release. It is the intention of the corporation to develop both alternatives. If the film comes in significantly under budget, such excess funds may, in the discretion of the corporation be spent on the distribution or passed on the next production to assure screen value. Management of the production Management of the film production A. The overall management and control of the business and affairs of the production shall be vested in the corporation. All major decisions (as hereinafter defined) with respect to the management and control of the corporation shall be made by lawful corporation procedures and vote. B. The production shall have a manager (hereinafter referred to as the "production manager"), with duties as prescribed by the corporation. The production manager shall be responsible for the implementation of the major decisions of the production via the producer and/or co-producers. C. No act shall be taken, sum expended, or obligation incurred by the producer, production
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manager or any venturer with respect to any of the following matters (herein called "major decisions"), unless such major decisions have been approved by the corporation: (1) Financing or refinancing of the film production; (2) The sale, lease, transfer or mortgaging of all or any part of the property or products; (3) Making any material change in the property or products; (4) The acceptance of any contracts or the entering into of any contracts or commitments for production or distribution; (5) Selecting depreciation and accounting methods, or other decisions with respect to treatment of various transactions for federal income tax purposes, consistent with the provisions of the corporation; (6) Appointing successor management of the production; (7) Approving each budget pursuant to policies of the corporation; (8) Making any non-budgeted expenditure or incurring any non-budgeted obligation by or of the production involving a sum in excess of $10,000.00; (9) Determining the types, limits and companies to carry the insurance obtained by or on behalf of the production; (10) Any other decision or action, which by provision of the corporation is required to be approved by management of the corporation. If any manager desires to insure approval of any major decision, and for any reason is unable to secure through normal channels any response from the corporation management with respect thereto, then the manager seeking such approval shall have the right to call a meeting of the management by written notice to the same, stating the location of such meeting and specifying a date and hour for such meeting, which date shall be a regular business day not less than (2) days nor more than five (5) days after the date of such notice, and which hour shall be between the hours of 8:00 a. m. and 5:00 p. m., Little Rock, Arkansas, time on the date of such meeting, and specifying in reasonable detail the major decision concerning which approval is to be requested. The marketing strategy The following markets will be contacted by the corporation or its distributor in an attempt to arrange contracts with respect to each film. 02
Domestic theatrical distribution Once a film is complete, theatrical rights will be open for bid to the major distribution companies in Los Angeles and/or New York unless a deal is structure before completion. It is contemplated that any such distribution would involve approximately ten of the eighteen major exhibition chains in the United States and Canada to total about 85% of the approximately 38,000 hard top theaters and a decreasing 525 drive-in theaters in both such countries. The major markets are as follows: 01. Domestic theatre. Twentieth Century Fox, Paramount, MGM, United Artist, among others are contemplated as potential distributors for release in the United States. 02. Network television sales. ABC, CBS, Fox and NBC to follow domestic theatre releases. The initial payment should be up front. It is contemplated that initial licensing rights would involve two screenings subject to additional screenings upon additional payments. 03. Syndicated television sales. Time/Life worldwide enterprises will follow domestic theatrical release and network licensing arrangements. This distribution would most probably involve an out right sale for unlimited screenings to approximately 10,000 owned and operated stations throughout the United States and Canada. Partial payment up front. 04. Pay cable sales. Home Box Office, ShowTime, Warner Amex, The Movie Channel, USA, among others, subject to timing factors, but usually following domestic theatrical release. Outright sales for the United States and Canada. Partial payment up front. 05. Foreign theatrical and television sales worldwide. EMI and Rank in England for all English speaking countries outside the United States and Canada; CIC in Europe for the European Continent, Mid-East and partial areas in the Far-East and some Spanish speaking countries; Toho in Japan for balance of far east rights; Gloria and/or Constantine in Germany for all German speaking rights. outright sale in all areas. 06. C.D. sales. RCA, Panasonic, and Sony, among others, rental or royalty sale arrangement. 07. Sound track sales. To be negotiated for possible album and CD recordings. 08. Military rights. For eight major military theaters of operation around the world. U.S. Armed Forces motion picture division, Dallas, as well as Department of the Navy, Brooklyn Naval Yard. Outright sales. 09. Offshore satellite rights. In New York for all domestic commercial airlines. Outright sales. 10. Maritime rights. To the U.S. Maritime Service, San Francisco. Outright sale. 11. Game rights. To all gaming companies. Outright sales. 03
12. Educational distribution rights. To universities and schools in the United States to Pyramid Films, Los Angeles. Advance against rentals. 13. Merchandising rights. Any and all forms of commercial product lines mass market. The corporation will maintain close supervision and involvement in all areas of distribution through the life of the film. The company will further support the marketing effort via personal hands on efforts that aid the distributor and all marketing functions. More support will be given in the way of additional financial reserve via promotional funds for theatrical releases included in the production budgets. Any participation of a distributor in the pre-release costs of a film might reduce the investment tax credit, if any, which would otherwise be available to EFP or their corporate relationships. Revenue distribution It is the intent of the corporation to return the investors original investment out of first proceeds and share all revenues with the investor on a 50/50 basis, pro-rata. Ownership of the filmed entertainment will remain with the corporation for life, but revenues will be divided with the investor as set forth above for ten years, after the investor gets the original investment back. Production selection process Proposed projects are first evaluated against the proprietary criteria established by the corporation. When a project passes those criteria, a development meeting determines if a feasibility check of the project is within the budget parameters established by EFP. A further check is made to determine if there is a market for the proposed project and that the project is appropriate for the product mix held by the corporation at that time. To keep financial risks to an absolute minimum, the corporation will not commit to a project until it has been discussed with the distribution department and selected exhibitors. Following this input, development of the project begins and options may be placed on key talent. EFP will generally not proceed with a production without having solid distribution commitments and key talent in place. This greatly minimizes exposure to EFP and its investors. EFP has developed a proprietary methodology to evaluate the selection of film properties. This methodology includes control, scope, target audience, talent, entertainment, characterization and audio-visual factors. A. Control. EFP will only consider film properties, which can be produced either by, or under the supervision of EFP. EFP is responsible for the financing, development and general management of each project. 04
B. Scope. The story/screenplay must have a theme that is clearly recognizable and of universal appeal. screenplays involving exotic computer generated elaborate special effects will generally be avoided. Projects involving the construction of massive sets, or requiring huge crowds or elaborate period costumes and sets will generally be avoided as well, unless full financing is offered. To pursue these types of films, other aspects of quality would have to suffer in order to maintain the required budget objectives. Every attempt will be made to keep the number of crew members as low as possible; large crews are less flexible and require disproportionate expenses for logistics in areas such as accounting, housing and catering. The corporation recognizes that the efficiency per crew member drops with a proportionate increase in the numerical size of the crew. C. Target audience. EFP will design its filmed entertainment with a particular target group in mind. Generally, this will be for the 14-25 age market and/or the 25-40 age market, but will vary from film to film and in the case of animation, a complete new look at the market will be established. The corporation recognizes that a properly constructed script, (e. g., one with 80% American audio-visual content), and a professionally executed production, not necessarily and expensive production, is of primary importance in the potential success at the box office as well as in the other distribution outlets. D. Talent. It is anticipated that, with few exceptions, every production will have recognizable names appropriate to the proposed film budget. The corporation believes that named talent assures at least a return of the negative cost through one or two channels of distribution. E. Entertaining. EFP will only make films that are entertaining. The corporation believes that the entertainment content of films is dependent, in part on having both positive (i. e., love and affection) and negative (i. e., death and setbacks, emotion). The entertainment value is heightened particularly in action adventure films, when the intensity and depth of transitions are high. F. Characterization. The corporation will favor films that are about someone with whom the audience can be sympathetic. The characters developed must match the developmental level of the target audience and be possessed with a clearly recognizable identification factor. G. Audio/visual. The corporation believes that the musical soundtrack should not take a "back seat" to visual components. The image-track coordination is essential in action/adventure. Also, action on the screen will be favored over words to communicate certain feelings and concepts to the audience. Production 05
The corporation recognizes the importance of the "creative process" but views production of filmed entertainment as a business, with components much like an assembly line, with its three phases of production: pre-production, production, and post-production. By filming projects back to back in the locations aforementioned, keeping crew size small, efficient, and production calendar-time short the corporation believes that it will avoid many of the higher cost and work rule inefficiencies associated with certain labor unions. The corporation will nevertheless engage professionals affiliated with a union, which may command higher costs. Personnel selection will be based upon the comparison of the performance value of the individual sought against the cost of that individual. A. Pre-production phase. During the pre-production phase, all of the planning of the production is done and most of the possible contingencies during the production phase can be examined, planned for and anticipated. During pre-production, the marketing campaign will be outlined, including the initial development of poster art and ideas for "trailers" or advertisements to be used in theaters and on television. EFP will plan ahead to make certain that scenes or "hooks" in the feature production can be exploited in the promotion of that production. EFP recognizes that the pre-production phase is critical to the commercial success of a filmed entertainment production and that an excellently executed pre-production phase is essential to reduce any surprises (including avoidable costs) to an absolute minimum during the production and post-production of the marketing phases. B. Production phase. The actual shooting of the filmed entertainment begins during this phase. Since each day is very expensive, EFP will strive to limit the production phase from four to eight weeks. The above discussed ability to make commitments allows the production phase to immediately follow the pre-production phase. Independent producers often develop the pre-production elements and then they have to stop to secure 100% of the financing before commencing with production with the result that is not possible to retain important directors, production managers, art directors and talent. This loss of momentum is costly in terms of duplication of effort and loss of focus with multiple productions this is avoided. By flowing from pre-production to production, the advance planning should yield significant benefits as the key individuals are already well versed with what needs to be done and when. This keeps operations running smoothly, with excellent logistical transitions between set-ups, thus 06
keeping the production within the budget and allowing the creative elements the cushion to pursue ..."
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