
Confidential Information Memorandum
This Confidential Information Memorandum (CIM) provides a general overview of the proprietary business model utilized by Featurepro, Inc. (FPI) and Masterpeace Films (MP) to secure profitable motion picture financing, production, marketing and distribution.
The FPI/MP process includes, among other things, confirmed market-driven story
selection, pre-shopped International sales commitments, Bank Issued SBLC
investment protection, efficient waste-free production, completion bond budget
guarantee, 100% tax write-off, (We advise you to consult with your CPA or tax attorney), additional tax rebates, decentralized distribution, transparent revenue collection monitoring, 3rd Party Escrow investor disbursements.
"Investment protection, Completion bond budget guarantee, 100% tax write-off"
1. FPI/MP utilizes its proprietary market-tested “hit film formulations” to identify and green light screenplays determined to have the highest likelihood of box-office success.
2. Prior to beginning production, FPI/MP will work with an International Sales Agent
(ISA) to procure “bids” from foreign countries for the distribution rights to the proposed
film. This is achieved using the finalized and polished script, names of the proposed cast,
director, editor and cinematographer, the target budget, the proposed promotion
campaign, and any other elements significant within a specific country. These bids will
be payable upon delivery of the completed film. The ISA will ensure that the total bids are
enough to cover both the film’s budget and an additional 12%. Bids are preferred over
the traditional pre-sales because pre-sales are always heavily discounted (as much as
70-80%), while bids are only rarely discounted, and then only at 5-12%.
3. FPI/MP will take the total amount of the bids to one of our Banking partners, which will issue the investor a Standby Letter of Credit (SBLC) equal to 112% of the budget (investment principal), backed by a Corporate Guarantee. This Corporate Guarantee will ensure that any shortfalls on bid payments do not reduce the investor's minimum return of 112%.
4. A Completion Bond Company, backed by a Re-Insurance Company, such as Lloyds
of London, will guarantee the completion of the proposed film on-time and on-budget,
ensuring that no extra cash requirements are required.
5. Each production will use FPI/MP’s own specialized “prep” approach, saving 12-18 minutes every hour over regular productions, or 2-3 hours per day, for an average saving of $50,000 to $70,000 every day of filming. This approach is the result of years of professional experience in reducing needless waste allowing all FPI/MP) productions to “punch above our weight.”
6. FPI/MP expects an “exceptional” 90% + consumer test rating by conducting professional consumer tests of each finished production and will make any adjustments until these standards are met. Typical Hollywood Studio movie productions only require a 70% test rating to qualify for wide-release.
7. FPI/MP has access to the campaign promoters behind independent hit movies such
as “Rocky Balboa” $156 million, “The Passion of Christ” -$600 million and “The Narnia
Chronicles”- $745 million. The promoter’s influence reaches to millions of consumers.
They have demonstrated they are able to mobilize grassroots support for unique and
inspiring motion pictures that test well in each DMA or usually 50-100 Distinct Marketing Areas throughout the country.
8. All revenue will be processed through a third-party master collection account which
will mandate the escrow and accounting of all returns. Investors will be able to login
online 24/7 and check the date and amount of the return on their investment.
9. FPI/MP budgets each project with an entertainment experienced forensic CPA who
will utilize unique check-the-checker anomaly detector to affordably audit for accurate
revenue reporting and receiving.
10. FPI/MP will also be working closely with an established law firm specializing in pro-
active and pre-emptive collections. This is achieved primarily through contractually
adding aggressive “performance on-time” incentives, default payments, and arbitration
clauses. This ensures that contractual rights are duly and promptly enforced
throughout the global entertainment market.
11. Government Incentives will be fully utilized allowing 100% write-off for the investor,
with profits taxed domestically at 21% and foreign at 13.125%. In addition, any State or National Tax incentive/rebate program that is applicable will be incorporated in the
production allowing for increased profits.
12. In addition to the investor receiving their principal plus 12% from the initial foreign
market sales, they will also receive a 30% equity share of all other profits, including the
income from the U.S. domestic market and any ancillary markets such as TV, Cable,
etc.
This memorandum should not be viewed as a financial offer of any kind. An official offer can be provided should that be required, but the various approaches listed above, along with many other cost-saving and profit-increasing tactics have been designed to ensure that all FPI/MP Film and TV productions will be a solid and reliable investment, with risk-reduction FPI/MP’s highest concern.
