About CMC Productions' venture to produce an action/adventure movie at a low cost yet high quality.

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X
Action/Adventure Movies
 dominate the market with
36% of box office sales
 have the highest revenue
per movie
Venture Overview:
 Finance the production of a $20M-$30M caliber Movie for only $2M
 Distribute releases for theaters, DVD, PayPerView, etc
 Recover Financing+15% off the top; then split 50/50 with the Producer
 Receive Federal & State Tax Incentives on expenditures and income
 Experience Lower Cost & Tax Benefits & Market domination
= Less Risk & More Profit
Slide 1

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X In a Nutshell (Diagram)
Financer Producer Distributor Retailer Public
(CMC) Months
0- 6 Theaters
Movie Show,Sell, 6 - 15 Video/DVDs
$2M $20-30M Caliber
Rights or Rent 15-18 PayPerView
18-30 Pay TV
30 + Free TV
$2M+15%
off the top
ROI: 11x $68M $136M $
50%
= $33M
Tax Deductions and Credits Federal Government
50% Cash Tax Credits State Government
Numbers are projections
Slide 2

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X Our Action/Adventure Movie
5%-10% of Our Movie Caliber: $20M-$30M Budget
normal
budget Our Movie Budget: $2M = Low Cost, but High Quality
 Our acclaimed Producer/Director has a contract with
a Major 6 Studio for use of their entire library of
 unseen action footage, Most of the budget for
 from blockbuster movies, Action/Adventure movies
is for action scenes that
 shot at exotic locations,
cost multi-$Millions to
 by the best cinematographers, produce.
directors, and cameramen
 at a very low cost.
 And has the patent-pending technology and the talent for
weaving those high-quality, low-cost action scenes into a feature
action/adventure movie.
This is the key!! Slide 3

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X Our Edge This from a Major 6 exec
The action shots in a movie “[This contract is] the first of its
kind in the motion picture business.
budgeted at $20-$30M
just cannot compete with “We are proud that our footage boasts:
 the highest quality content,
the quality of the action  filmed by the best cinematographers,
shots available to us. directors, and cameramen in the
industry.
“Content … includes:
The clips in this library are taken from exciting stunts,
big-budget action sequences,
some of Hollywood’s biggest explosions,
blockbusters, including: police and military raids,
 “Salt” with production cost of $120M presidential motorcades,
large-scale car chases.
(Angelina Jolie)
 “Angels and Demons” at $140M “Much of the footage was shot in
exotic, international locations."
(Tom Hanks).
If our competition hits the average it’s If our competition brings in $5M,
a 2½ x ratio of gross profit to cost; for they lose a lot of money; if we do,
us it’s 34x ratio. we make money.
Slide 4

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X Projected ROI: 11x
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Mod Slide 5

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X Tax Benefits
for the Film Industry
• IRS Section 181 allows you to deduct qualifying Motion Picture production
expenses from passive income in the current tax year.
• IRS Section 199 allows you to deduct 9% of income generated by Motion
Pictures against (up to 50% of) W-2 income. (Aggregate projected income is ~10x
investment.)
• State tax credits are given by many states as an incentive for film
producers to spend money in those states.
– The producer earns the tax credit by spending production money in the state
– Then sells the tax credit through a broker to a company that does business in
the state.
– That is, the Producer transforms expenditures to tax credits to cash
Refer to: Tax Credits for Filmmakers – By U.S. State and Canadian Province
Slide 6

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X Produced and Directed
by Paul Greenberg
Paul Greenberg’s works have brought in $3 Billion worth of sales in over 100
countries and have won many awards. He is a voting member of the British
Academy of Film and Television Arts (BAFTA) and is Licensed Private Pilot. His
filmmaking companies are GreenbergDirect, Inc. and Man Made Production
Services, Inc.
Paul Greenberg and Steven
Spielberg attending the British
Academy of Film and Television Arts
(BAFTA) the United Kingdom’s
equivalent of the Academy Awards
except that it acknowledges the
film, TV and video games industries.
 9 ERA Awards
 14 Telly Awards
 7 Communicator Awards
 6 EmPixx Awards
 8 Aurora Awards
Slide 7

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X Casting by Gerald Wolff
• Securing “Name Talent” is important for maximizing revenue. However,
gaining access to these personalities can be difficult without personal
connections or being willing to pay huge fees.
• Gerald Wolff has these personal connections and a solid track record of
negotiating some of the lowest talent fees in the industry.
• With the many entertainment industry contacts in his rolodex, Mr. Wolff
has packaged and cast nearly 450 feature films. He has personal and
professional access to top executives and stars such as:
• Mickey Rourke, Christian Slater, Christopher Walken, James
Spader, Jason Patrick, Casper Van Diem, The Baldwin brothers
(Alec, William, Daniel and Stephen), Keanu Reeves, Martin
Sheen, Charlie Sheen, Emilio Estevez, Kiefer Sutherland, Sean
Penn, Nicolas Cage, Sylvester Stallone, Ving Rhames, and many
more.
Slide 8

9. Click to advance to next slide CMC Productions (561) 997-8922
X Executive Producers
• Carolee and Michael Cohen have been working as a team for well over a
decade getting start-up ventures financed and operational.
• In 2012 they co-founded CMC Productions LLC to:
– capitalize on this unique opportunity to produce feature films at a fraction
(5%-10%) of their normal cost; and
– put into practice their conviction that the investor can be given a better deal
with more assurances and less risk.
• Carolee Cohen, President, is a communications advocate. She is in constant
contact with prospects and investors to: a) keep the investor base informed
about progress in ongoing projects and about new projects and investment
opportunities; and b) to hear and handle investor concerns and requests.
Her efforts for the last 18 years have brought many millions of
investment dollars into a number of ventures.
• Michael Cohen, CEO, is a systems advocate. He has developed: a) business
models, business plans, private placement memoranda, investor packages,
and promotional materials; b) database application systems to record and
manage prospects, investors, investments, and the flow of information; and
c) office procedures, and other business operations processes – for other
companies in the past and now for this venture .
Slide 9

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X Financing
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Fr ve P
o ur
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of
Private Placement Memorandum
This “Memorandum” defines an “Offering” of “Units”
at a price of $50,000 per Unit
for a maximum “Capital Contribution” of $2,700,000
during the “Capitalization Period” of 3/3/2012–7/15/2012
Slide 10

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X Risk Reduction
 Off-the-top return of production financing + 15% accounts for ~85%
of your investment. Even if the Movie bombs it is likely to make enough to
cover the financing. That’s the power of having such a low cost to produce
the Movie.
 Tax Benefits based on production spending accounts for an additional
15%-25%; the aggregate of these two items accounts for full recovery of
your investment.
 Further, 70-75% of invested funds are escrowed in “Production
Financing” bank account. In the event that less than the minimum amount
required by the Producer is raised and the project is aborted:
 More than 70% of your investment is returned
 Investors get 100% of the money in the Production Financing account
 And they get any uncommitted money in the Operations account.
 The amount of investment funds that go into the Production Financing
bank account is shown on the previous slide.
Slide 11

12. CMC Productions (561) 997-8922
Slide Index
Release 4
X
# Title (hyperlinks)___ Brief Description of Contents
• Cover Slide Venture Overview
• In a Nutshell (Diagram) Flow from Money-In to Money-Out
• Our Action/Adventure Movie Low cost, high quality
• Our Edge Why we’re better
• Projected ROI: > 10x ROI
• Film Industry Tax Benefits Tax Benefits
• Produced and Directed by Paul Greenberg The gold of
this venture
• Casting by Gerald Wolff Star talent available to us
• Executive Producers Management
• Financing PPM, Proceeds, Use of Proceeds
• Risk Reduction for a video of some Lower Risk
Click here sample explosion shots
(will open in a browser window) Slide 12

13. Click to advance to next slide to see the Solution to this Problem
X
Action/Adventure Genre
• Appeal:
– Highest market share (36.8%) = more sales
– Highest revenue per movie ($60M) = more profit potential
• Problem:
– Highest cost = higher risk, lower profits
Highest
Highest Market Share!
Revenue!
36.8%
BUT. . .
Highest Cost
13
Slide

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X In a Nutshell (text)
• We finance a movie budget of $2M to produce an action/adventure movie rivaling movies
budgeted at $20M-$30M.
• In return, we get:
– off-the-top recovery of the $2M + 15%
– then a 50/50 split of the production company’s revenue
– for a projected ROI of 10x after 3-4 years of continuing revenue
– Federal and State tax incentives for additional income and risk reduction
• The Producer:
– is an award-winning talent whose works have generated more than $3B in sales.
– has a unique contract with a Major 6 Studio for access to its complete library of unseen
action shots made for some of Hollywood’s biggest blockbusters in exotic locations at a
cost of hundreds of millions.
– has a patent-pending technology to weave clips from the library into a script for an
action/adventure genre feature film
– can produce the movie in for a fraction (5%-10%) of the normal cost (i.e., $2M versus
$20M-$30M).
• Action/adventure genre movies:
– get 36% of the worldwide theater ticket sales
– those in the $20M-$30M budget category bring an average of $68M to the producer
– for an average gross profit of 2.2x – 3.4x.
– But in our case, with a budget of only $2M, the average gross profit is 34x.
– That is, lower cost = lower risk and higher profit.
14
Slide

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X Production Schedule, Budget
“Production Stages” are
explained on Slide 15
The Production Schedule
stipulates how much and
when financing is needed.
“Greenlight”, “in-the-can”
explained on Slide 15
The Financing Schedule stipulates
the milestone events associated
with release of escrowed
production funds.
Slide 15

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X Develop Produce Distribute $
  
FYI, if you care to take the time to read it.
Development The producer finds a story, identifies a theme, works with writers to
prepare a synopsis, prepare a treatment (a 25 to 30 page description of the story, its
mood, and characters), a film pitch, and present it to potential financiers. If the pitch is
successful and it gets the needed financial commitment then the film receives a "Green
Light", meaning that the project will go into production. The parties involved negotiate
a deal and sign contracts.
Pre-production Preparations are made for the shoot, in which cast and film crew are
hired, locations are selected, and sets are built. This is also the stage in which the ideas
for the film are created, rights to books/plays are bought, etc.
Production (Filming) The raw elements for the finished film are shot on location and on
sound stages (studios).
Post-Production The film is edited; production sound (dialogue) is concurrently (but
separately) edited, music tracks (and songs) are composed, performed and recorded, if a
film is sought to have a score; sound effects are designed and recorded; and any other
computer-graphic 'visual' effects are digitally added, all sound elements are mixed into
"stems" then the stems are mixed then married to picture and the film is fully
completed ("locked"). At the end of the Post-Production stage the film is said to be “in
the can” and ready for Distribution.
Distribution The distribution of a movie is the process through which it is made
available to a public audience for a price. This is accomplished by making deals with
exhibitors and retailers to make the movie available to the public through theaters,
video (DVD), pay per view, pay TV, and free TV. Slide 16