Table 1.

RETURN ON INVESTMENT pg 19 Projections - Burnt Man film ($25,000, $50,000, $100,000 investments)
Burnt Man - feature (budget $1.5 million) Sameer Ketkar - executive producer $ Millions
Be t Pro ter (3 jectio y ea n r s) Low Pro j (3 ectio yea n rs) Exp Pro ected (3 jectio y ea n r s)

Production Budget TOTAL PROFIT Producers' Share (30%) Director/Talent Share (20%) Investors' Share (50%) $ Real Values $100,000 Investment % of Budget $100,000 Investment Return $50,000 Investment % of Budget $50,000 Investment Return $25,000 Investment % of Budget $25,000 Investment Return

$1.50 $5.68 $1.70 $1.14 $2.84

$1.50 $13.27 $3.98 $2.65 $6.64

$1.50 $20.90 $6.27 $4.18 $10.45

6.67% $189,333.00

6.67% $442,666.00

6.67% $696,666.00

3.33% $94,666.00

3.33% $221,333.00

3.33% $348,333.00

1.67% $47,333.00 189.33%

1.67% $110,666.00 442.67%

1.67% $174,166.00 696.67%

ROI OVER 3 YEARS

According to the low projection of the film's profit potential, an investor would earn a percentage of the $5,680,000 profit. A $25,000 investment is 1.67% of the film's budget For profit sharing, investors will share 50% of the film's total profit of $5,680,000, or $2,840,000. 1.67% of $2,840,000 equals a dividend of $47,333 (at which point the initial $25,000 will have already been repaid). For detailed profit/loss breakdowns of low, expected and better projections for the film's box office performance, please see Table 2 (low projections), Table 3 (expected projections), Table 4 (better projections), and Table 5 (breakeven projections).

Table 2.

Return on Investment (LOW PROJECTIONS)
Burnt Man - feature (budget $1.5 million) Sameer Ketkar - executive producer

pg 20

Total Profit: $5.68 million

YEAR 1
$ Millions
THEATRICAL MARKET Domestic box office gross % total global box office % total gross sales all markets Opening Weekend Gross Foreign box office gross % total gross sales all markets Total Worldwide Gross % total gross sales all markets DVD MARKET Domestic DVD Gross % total gross sales all markets Foreign DVD Gross % total gross sales all markets Total DVD Gross DVD Market % Total Gross Sales TELEVISION MARKETS Pay TV % total gross sales all markets Network TV % total gross sales all markets Syndicated TV % total gross sales all markets Television Market % Total Gross Sales $10.00 60.61% 35.71% $2.00 $6.50 23.21% $16.50 58.93%

YEAR 2

YEAR 3

LOW PROJECTIONS

$6.00 21.43% $4.00 14.29% $10.00 35.71%

$1 3.57% $0.25 0.89% $0.25 0.89% 3.57% $16.50 $16.50 $27.50 $11.00 5.36% $28.00 $0.50

TOTAL GROSS, ALL MARKETS
Yearly Gross

YEAR 1

YEAR 2

YEAR 3

Table 2.

(cont'd)

pg 21

YEAR 1
$ Millions
DISTRIBUTION FEES Distributor Gross Estimated Collection (70% YR1, 20% YR2, 10% YR3) Theatrical Exhibitor Share (10%) DVD Distribution Fee (35%) TV Licensing Fee (25%) Yearly Distribution Fees Total Distribution Fees PRODUCTION COSTS Production Budget Prints and Advertising $1.50 $1.50 $0.30 20.00% $13.20 $13.20

YEAR 2
FEES AND PAYMENTS

YEAR 3

LOW PROJECTIONS

$11.55 $1.65

$2.20

$0.05

$3.50 $0.25 $5.95 $19.15 $0.13 $0.18 $19.33

TOTAL PROFIT GLOBAL ROI

$5.35 356.67%

$5.68 378.33%

YEAR 1

YEAR 2

YEAR 3

Table 3.

Return on Investment (Expected Projections)
Burnt Man - feature (budget $1.5 million) Sameer Ketkar - executive producer

pg 22

Total Profit: $13.27 million

YEAR 1
$ Millions
THEATRICAL MARKET Domestic box office gross % total global box office % total gross sales all markets Opening Weekend Gross Foreign box office gross % total gross sales all markets Total Worldwide Gross % total gross sales all markets DVD MARKET Domestic DVD Gross % total gross sales all markets Foreign DVD Gross % total gross sales all markets Total DVD Gross DVD Market % Total Gross Sales TELEVISION MARKETS Pay TV % total gross sales all markets Network TV % total gross sales all markets Syndicated TV % total gross sales all markets Television Market % Total Gross Sales

YEAR 2

YEAR 3

EXPECTED PROJECTIONS

$14.00 63.64% 29.60% $4.00 $8.00 16.91% $22.00 46.51% $12.00 25.37% $10.00 21.14% $22.00 46.51%

$1.80 3.81% $0.75 1.59% $0.75 1.59% 3.81% $22.00 $22.00 $45.80 $23.80 6.98% $47.30 $1.50

TOTAL GROSS, ALL MARKETS
Yearly Gross

YEAR 1

YEAR 2

YEAR 3

Table 3.

(cont'd)

pg 23

YEAR 1
$ Millions

YEAR 2
FEES AND PAYMENTS

YEAR 3

EXPECTED PROJECTIONS

DISTRIBUTION FEES Distributor Gross Estimated Collection (70% YR1, 20% YR2, 10% YR3) Theatrical Exhibitor Share (10%) DVD Distribution Fee (35%) TV Licensing Fee (25%) Yearly Distribution Fees Total Distribution Fees PRODUCTION COSTS Production Budget Prints and Advertising

$15.40 $2.20

$4.76

$0.15

$7.70 $0.45 $17.60 $17.60 $1.50 $1.50 $1.40 93.33% $12.29 819.33% $13.27 884.33% $12.91 $30.51 $0.38 $0.53 $31.04

TOTAL PROFIT GLOBAL ROI

YEAR 1

YEAR 2

YEAR 3

Table 4.

Return on Investment (Better Projections)
Burnt Man - feature (budget $1.5 million) Sameer Ketkar - executive producer

pg 24

Total Total Profit: $20.90 million

YEAR 1
$ Millions
THEATRICAL MARKET Domestic box office gross % total global box office % total gross sales all markets Opening Weekend Gross Foreign box office gross % total gross sales all markets Total Worldwide Gross % total gross sales all markets DVD MARKET Domestic DVD Gross % total gross sales all markets Foreign DVD Gross % total gross sales all markets Total DVD Gross DVD Market % Total Gross Sales TELEVISION MARKETS Pay TV % total gross sales all markets Network TV % total gross sales all markets Syndicated TV % total gross sales all markets Television Market % Total Gross Sales

YEAR 2

YEAR 3

BETTER PROJECTIONS

$21.00 61.76% 30.43% $7.00 $13.00 18.84% $34.00 49.28% $17.00 24.64% $12.00 17.39% $29.00 42.03%

$3 4.35% $1.50 2.17% $1.50 2.17% 4.35% $34.00 $34.00 $66.00 $32.00 8.70% $69.00 $3.00

TOTAL GROSS, ALL MARKETS
Yearly Gross

YEAR 1

YEAR 2

YEAR 3

Table 4.

(cont'd)

pg 25

YEAR 1
$ Millions

YEAR 2
FEES AND PAYMENTS

YEAR 3

BETTER PROJECTIONS

DISTRIBUTION FEES Distributor Gross Estimated Collection (70% YR1, 20% YR2, 10% YR3) Theatrical Exhibitor Share (10%) DVD Distribution Fee (35%) TV Licensing Fee (25%) Yearly Distribution Fees Total Distribution Fees PRODUCTION COSTS Production Budget Prints and Advertising $1.50 $1.50 $3.80 253.33% $18.50 1233.33% $20.90 1393.33% $27.20 $36.00

$23.80 $3.40

$6.40

$0.30

$10.15 $0.75 $17.30 $44.50 $0.30 $0.60 $45.10

TOTAL PROFIT GLOBAL ROI

YEAR 1

YEAR 2

YEAR 3

Table 5.

Return on Investment (Breakeven Projections)
Burnt Man - feature (budget $1.5 million) Sameer Ketkar - executive producer

pg 26

Total Profit: $0

YEAR 1
$ Millions
THEATRICAL MARKET box office Domestic

YEAR 2

YEAR 3

BREAKEVEN PROJECTIONS

gross % total global box office % total gross sales all markets Opening Weekend Gross Foreign box office gross % total gross sales all markets Total Worldwide Gross % total gross sales all markets DVD MARKET Domestic DVD Gross % total gross sales all markets Foreign DVD Gross % total gross sales all markets Total DVD Gross DVD Market % Total Gross Sales TELEVISION MARKETS Pay TV % total gross sales all markets Network TV % total gross sales all markets Syndicated TV % total gross sales all markets Television Market % Total Gross Sales

$3.10 60.78% 33.33% $0.75 $2.00 21.51% $5.10 54.84%

$2.00 21.51% $1.50 16.13% $3.50 37.63%

$0.50 5.38% $0.10 1.08% $0.10 1.08% 5.38% $5.10 $5.10 $9.10 $4.00 7.53% $9.30 $0.20

TOTAL GROSS, ALL MARKETS
Yearly Gross

YEAR 1

YEAR 2

YEAR 3

Table 5.

(cont'd)

pg 27

YEAR 1
$ Millions

YEAR 2
FEES AND PAYMENTS

YEAR 3

BREAKEVEN PROJECTIONS

DISTRIBUTION FEES Distributor Gross Estimated Collection (70% YR1, 20% YR2, 10% YR3) Theatrical Exhibitor Share (10%) DVD Distribution Fee (35%) TV Licensing Fee (25%) Yearly Distribution Fees Total Distribution Fees PRODUCTION COSTS Production Budget Prints and Advertising $1.50 $1.50 $(1.98) -132.00% $(0.13) -8.67% $0.00% $4.08 $4.08

$3.57 $0.51

$0.80

$0.02

$1.23 $0.13 $2.15 $6.23 $0.05 $0.07 $6.30

TOTAL PROFIT GLOBAL ROI

YEAR 1

YEAR 2

YEAR 3

Given the distribution between theatrical, DVD and TV grosses, a total gross of $9.3 million is needed to break even on Burnt Man. Anything more is profit.

Table 6. pg 28

Return on Investment ~ Comparable Films ~ ($25,000, $50,000, $100,000 investments)
On Burnt Man, the producers will share 30% profits, directors and talent will share 20%, and investors will share 50%.

Using the Burnt Man business model, the chart below shows how an investment of $25,000, $50,000, or $100,000 would pay out for five comparable films. PLEASE NOTE, investment return is profit after the initial investment has already been repaid.

$ Millions Production Budget TOTAL PROFIT Producers' Share (30%) Director/Talent Share (20%) Investors' Share (50%) $ Real Values $100,000 investment % of budget $100,000 Investment Return $50,000 investment % of budget $50,000 investment return $25,000 investment % of budget $25,000 Investment Return ROI OVER 3 YEARS

Saw $1.20 $75.66 $22.70 $15.13 $37.83

The Descent $6.00 $17.48 $5.25 $3.50 $8.74

Hostel $4.80 $18.31 $5.49 $3.66 $9.16

Cabin Fever $1.50 $13.51 $4.05 $2.70 $6.76

The Ruins $8.00 $0.11 $0.03 $0.02 $0.06

8.33%

1.67%

2.08%

6.67%

1.25% $687.50 0.63% $343.75 0.31% $171.88 0.69%

$3,152,499.00 $145,958.00 $190,424.00 $450,333.00 4.17% 0.83% 1.04% $95,212.00 0.52% $47,606.00 190.42% 3.33% $225,166.00 1.67% $112,583.00 450.33%

### $73,416.00 2.08% $786,864.00 3152.50% 0.42% $36,708.00 145.96%

For the film Saw, its total net profit after all fees and expenses were paid, was $75,660,000. The investors' share, using the Burnt Man business model, is 50%, or $37,830,000. An investment of $100,000 is 8.33% of the budget. For profit participation, the investor will receive 8.33% of $37,830,000, for a total dividend of $3,152,499. The initial $100,000 will have been repaid earlier. For a description of how the total profit was calculated for each film, see Table 7.

Table 7. pg 29

Comparable Films -- Successes
Burnt Man - feature (budget $1.5 million) Sameer Ketkar - executive producer This chart describes how the total global profit for 5 sample films was calculated. The time period is three years. $ Millions Production Budget Distributor Release Date Maximum Screens U.S. Box Office Gross Opening Wknd Gross Foreign Box Office Worldwide Box Office DVD Revenue Foreign DVD Revenue Television Revenue Prints and Ads Studio Distr. Fees (70% YR 1/20% YR 2/10% YR3) DVD Distr. Fees (35%) Television Exhib. Fees (25%) Theatrical Exhibitor ShareGlobal Total (10%) Revenue TOTAL PROFIT Global ROI *Estimated

Saw

The Descent

Hostel

Cabin Fever

The Ruins

$1.20 Lionsgate Oct-04 2,467 $55.15 $18.28 $47.90 $103.05 $100.00 $40.00 $5.00 $10.00

$6.00 Lionsgate Aug-06 2,095 $26.00 $8.90 $31.00 $57.00 $22.41 $15.00 $5.00 $8.00

$4.80 Lionsgate Jan-06 2,337 $47.33 $19.56 $33.25 $80.58 $29.88 $25.00 $2.00 $19.00

$1.50 $8.00 Lionsgate Paramount Sep-03 Apr-08 2,105 2,538 $21.16 $8.63 $9.39 $30.55 $30.00 $15.00 $1.00 $12.00 $17.43 $8.00 $5.27 $22.70 $10.33 $8.00 $0.50 $5.00

$100.64 $49.00 $1.25

$47.88 $13.09 $1.25

$67.58 $19.21 $0.50

$30.49 $15.75 $0.25

$19.61 $6.42 $0.13

$10.31 $248.05 $75.66 6305%

$5.70 $99.41 $17.48 291%

$8.06 $137.46 $18.31 382%

$3.06 $76.55 $13.51 901%

$2.27 $41.53 $0.11 1%

Average ROI: 1576.00%

TOTAL PROFIT is Total Global Revenue minus production budget, minus prints and advertising costs, minus distributor fees, minus DVD distribution fees, minus television exhibitor fees, minus theatrical exhibitor share. Total Global Revenue is the domestic box office gross, plus foreign box office gross, plus domestic and foreign DVD and television grosses.

Table 8.

Less Successful Horror Films

pg 30

The five films below are gory, supernatural, or torture-porn films that were not financially successful. Only one of them turned a profit. $ Millions Production Budget Distributor Release Date Maximum Screens U.S. Box Office Gross Opening Wknd Gross Foreign Box Office Worldwide Box Office DVD Revenue Foreign DVD Revenue Television Revenue Prints and Ads Studio Distr. Fees (70% YR 1/20% YR 2/10% YR 3) DVD Distr. Fees (35%) Television Exhib. Fees (25%) Theatrical Exhibitor ShareGlobal Total (10%) Revenue TOTAL PROFIT Global ROI *Estimated

Captivity

High Tension

Turistas

The Abandoned

The Return

$17.00 $2.85 $10.00 Lionsgate Lionsgate Fox Atomic Jul-07 Jun-05 Dec-06 1,061 $2.63 $1.43 $8.28 $10.91 $10.17 $2.00 $1.00 $8.00 1,323 $2.62 $1.90 $2.61 $5.23 $4.00 $2.00 $0.50 $2.00 1,572 $7.03 $3.58 $7.63 $14.65 $16.13 $6.00 $0.50 $2.00

$5.50 $15.00 Lionsgate Rogue Pictures Feb-07 Nov-06 1,000 $1.33 $0.78 $2.77 $4.10 $3.80 $1.50 $0.50 $1.00 1,986 $7.75 $4.48 $4.24 $11.99 $13.93 $5.00 $0.50 $1.50

$10.17 $4.26 $0.25

$4.91 $2.10 $0.13

$14.73 $7.75 $0.13

$3.98 $1.86 $0.13

$12.23 $6.63 $0.13

$1.09 $24.08 $(16.69) -98.19%

$0.52 $11.73 $(0.78) -27.33%

$1.47 $37.28 $1.21 12.14%

$0.41 $9.90 $(2.97) -54.00% Average ROI:

$1.20 $31.42 $(5.26) -35.06% -40.49%

TOTAL PROFIT is Total Global Revenue minus production budget, minus prints and advertising costs, minus distributor fees, minus DVD distribution fees, minus television exhibitor fees, minus theatrical exhibitor share. Total Global Revenue is the domestic box office gross, plus foreign box office gross, plus domestic and foreign DVD and television grosses.

Table 9.

Timeline for Production
($56,450 trailer shoot)

pg 31

PRE-PRODUCTION Duration Location Scouting 5 days Casting 2 weeks Screenplay purchase (installment)n/a Producer 10 days Director 1 week Poster Artist 2 weeks Web designer (starts work once poster image is completed) 1 week Script Doctor 2 weeks Viral Advertising ongoing Office supplies, copies ongoing Storyboard Artist 1 week SUBTOTAL: 4 weeks Promotional Trailer Shoot: PRODUCTION Production cast/crew Equipment POST PRODUCTION Crew/Equipment SUBTOTAL: Duration 3 days 3 days

Fee $4,500.00 $9,400.00 $3,000.00 $5,400.00 $3,150.00 $1,500.00

$1,500.00 $1,500.00 $1,000.00 $1,000.00 $1,500.00 $33,450.00

Fee $10,000.00 $5,000.00

3 weeks 4 weeks

$8,000.00 $23,000.00 $56,450.00

GRAND TOTAL: 8 WEEKS

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