'Frightworld' Feature Film 'FRIGHTWORLD' FEATURE FILM

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					                'Frightworld' Feature Film




'FRIGHTWORLD'




FEATURE FILM
                                                                   'Frightworld' Feature Film




                       Business Plan – 'Frightworld' Feature Film

This document and the information provided within is provided solely for the purpose of
acquainting the reader with Chris Morgan Films and the 'Frightworld' feature film. Please
note that a separate limited liability company will be set up once we start to attract
investment for Frightworld. Therefore, investors will have the opportunity to invest in one
or more feature films. Investors may also be able to take advantage of the Enterprise
Investment Scheme in the UK, which allows tax relief on investments in shares in
UK-based companies. Please consult your tax adviser for details.

This business plan does not constitute an offer to sell. It has been submitted on a
confidential basis, solely for the benefit of selected, highly-qualified investors, and is not
for use by any other persons or for any other reasons.

By accepting delivery of this business plan, the recipient acknowledges and agrees that:
(i) in the event that the recipient does not wish to pursue this matter, the recipient will
return this copy to the address listed below as soon as practical (ii) the recipient will not
copy, fax, reproduce or distribute this confidential business plan, in whole or in part,
without permission and (iii) all of the information contained herein will be treated as
confidential.

                                      Controlled Copy


Issued to:

Issue date:

Copy no:

Issued by:      Chris Morgan, CEO, 21 Oakland Avenue, Long Eaton, NG10 3JL (UK)
Tel:            (0044) 7719 043426
email:          investors@chrismorganfilms.com
website:        www.chrismorganfilms.com
                                           'Frightworld' Feature Film


N.B. The duration of this business plan is 4 years,
  expected rate of return on investment 3 years
                                                                   'Frightworld' Feature Film

                                 Frightworld - the Sizzle

                                           Story

Tagline – Westworld or Disneyworld with scares, a horror theme park goes horribly
wrong.

The script is loosely based on Westworld, therefore it is based on an already successful
premise, but this is no guarantee of success.

                                           Money

The film will cost $7.5m to make and will take 4 weeks to film.

Subject to securing a distribution deal, the film could make $27 million box office, which
is based on an average of similar films (see later). Based on a distributor taking a 50%
cut of box office, this could result in $13.5 million coming back to the
producers/investors. After the investor recoups the initial investment of $7.5m, this could
result in an $6m profit to be split between investor and producer (without taking into
account DVD sales etc.). Please note that we are prepared to be flexible on percentages
and some of the producer's salaries will only be paid subject to certain conditions, such
as securing distribution.

Note – all of these figures are for illustration purposes only and we can in no way
guarantee that this will be the actual return, plus see 'Risk Statement' later. A typical rate
of return is 3 years, which compares well with many high-risk potential high-reward
ventures.

It should also be added that the film industry is one of the few industries that has
weathered the recession well – the film market for cinemas in the US alone in 2010 was
£10.56bn, down only 0.3% on the previous year, which in itself was 10% up on the
previous year (figures courtesy of www.boxofficemojo.com) and the highest figure on
record. When the international box office, DVD and other markets are added to this, the
figure is significantly higher. Therefore, as high-risk investment goes, investing in movies
is not a bad idea and there are also tax advantages (see later).

Horror is also one of the most popular genres at the Box Office, with major recent
successes including The Saw franchise films, the Hostel franchise films, and Asian
horror such as The Ring and The Grudge, subsequently remade by Hollywood. Note – a
franchise film operation is one where the original film spawns a number of sequels.
                                                                  'Frightworld' Feature Film

                                  The Production Team

Writer/producer – Chris Morgan                Senior Producer – Ron Lavery (photo
                                             awaited)




                                   Wishlist of Director

Note – it is difficult to attach directors and lead actors to productions without the finance
already being in place, it's something of a 'Catch 22' situation, hence the following, at
this stage, are just a wishlist, however, we are making efforts to try and secure their
services.

                           Director – Hideo Nakata




Note on actors

Horror movies aimed at young adults are not usually star-driven, therefore it is not
essential to have stars in lead roles. Instead, we will concentrate on attracting young,
up-and-coming talent into the roles.
                                                                  'Frightworld' Feature Film

                                 Frightworld - the Steak

                                         The Story

Logline/tagline

Westworld or Disneyworld with scares, a horror theme park goes horribly wrong.

Synopsis

Frightworld horror theme park. A death. Chief Scientist Larry is adamant that it's a guest,
but CEO Fiona Fear convinces him that it's one of the clones they put in the game to
give the 'monsters' something to kill, but she knows different.

College kids Laura, Jason, Amy, Patrick and Shyla decide to go somewhere different on
vacation. Frightworld is certainly different - a horror theme park where you can confront
your worst fears in 'Night of the Slasher', 'Zombie Paradise'. 'Vampireville' and 'Valley of
the Werewolf', fighting monsters cloned from human DNA.

First up is 'Night of the Slasher'. The kids go into a house and are joined by clones,
which are almost exact replicas of themselves in personality. They order pizza. After the
pizza delivery boy delivers the pizza, he is killed by the slasher and the slasher gets into
the house. He picks off guests and clones alike, until only Laura is left. Laura wins the
game by chopping the head off the slasher. In a final twist the slasher's wife and son try
to get revenge, but they too are dispatched.

Later, Laura has a nightmare that it's the slasher that chops her head off, a dream that
will come back to haunt her.

Next day they relax by the pool while deciding what to do. Patrick sees Angela, the clone
he met the night before, but she has no recollection of their encounter, her memory has
been erased. She tells a friend however that she knows him from somewhere. As Laura
won the previous night's game, she decides what they do. She decides that they all
should split up.

Fiona Fear takes delivery of a new load of chips, chips that are supposed to make the
monsters scarier. Larry is worried that they have not had chance to test the new chips
properly.

Shyla takes on 'Zombie Paradise', Patrick and Jason 'Valley of the Werewolf', Laura and
Amy 'Vampireville'. A bat takes a bite out of Amy. She feels ill and decides to head back
to the hotel, but before she can get there a vampire attacks her. One of the guests is
pulled from the bus at Zombie Paradise and eaten alive, unseen by Shyla. Jason is killed
by a werewolf.

All over the theme park, the monsters are turning into the real thing. Fiona reveals to
Larry that the whole theme park is a breeding ground for the monsters. With most of the
guests and Frightworld staff alike dead, only Laura is left of the kids and all the while the
slasher is coming for her, with bitter memories of their first encounter.
                                                               'Frightworld' Feature Film

                                     Meet the Team

Chris Morgan (screenwriter, producer) – bio

      First feature film Fight Night, available for distribution 2011.
      Screenwriter since 2003.
      Training – Lo-to-No Budget Producing, Directors Foundation Certificate (both
       Raindance, UK), John Truby screenwriting CDs, PRINCE 2 Project Management.
      Funding received – Government grant for career development in the film industry
       (East Midlands Media).
      Chris has also managed multi-million pound Government-funded projects and
       funding programmes, whilst working for the Department for Education and
       Employment, East Midlands Development Agency and Nottinghamshire
       Enterprises.

Therefore, whilst Chris is relatively new to film producing, having recently produced his
first feature, his experience of managing multi-million pounds of Government funding
and PRINCE 2 Project Management, the leading project management qualification in the
UK, should ensure your investment is as well-protected as it can be. Recognising his
relative inexperience in film producing, Chris brought experienced producer Ron Lavery
on board, having met him while attending a film event in Los Angeles.

Ron Lavery (senior producer)

Feature film credits, unless otherwise stated:

      Protect Me If You Can, reality TV
      Fatal Desire
      Losing Grace
      Frightmare
      LA Goddess
      No Goodbyes
      American Kickboxer 2
      Hindsight
      Dark Secrets
      Lethal Games
      Nudity Required
      Terror In Beverley Hills

In 1990, Ron turned to film distribution and in 2005, teamed up with Steven Bakos and
founded WestHam Films, an independent film distribution and production company.
                                                                    'Frightworld' Feature Film

Hideo Nakata – Director

We will be approaching Hideo Nakata to direct 'Frightworld'. Mr Nakata is the perfect
director for Frightworld, as he is something of a cult horror director, having directed one
of the biggest horror hits of recent years, 'Ring', or, more correctly, 'Ringu', plus 'Dark
Water' another major horror hit. Both of these films have subsequently been remade by
Hollywood. Mr Nakata has the advantage therefore of being an independent film-maker
who is well-known and his horror films appeal to the young adult market, which is one of
the major markets that we are aiming for with 'Frightworld'.

                               About Chris Morgan Films

Chris Morgan Films is an independent feature film production company. 'Independent' in
this context means that it will not be funded by one of the major film studios, such as
Warner Bros, Paramount etc. It is set up as a Limited Company in Britain, which means
that directors' liability is limited to the value of the shares in the company.

Chris Morgan Films was founded in 2011 with the sole purpose of making feature films.
Investors in Chris Morgan Films can take advantage of the Enterprise Investment
Scheme, which enables investors to invest in ordinary shares in the company, while
gaining tax relief on the investment. Investors who are unfamiliar with the scheme should
consult http://www.hmrc.gov.uk/eis/ and/or a tax lawyer.

Chris Morgan Films is currently seeking investment for a slate of 5 feature films in the
budget range $5-15 million – 1 biopic (true story), 3 horror, and 1 thriller.

                           Frightworld - Production Budget


                              Item                                         Budget ($)
                                                 Producers fees                      150000
                                                   Director's fee                    300000
                                                 Talent (actors)                    2000000
  Production costs (including locations, crew, accommodation,                       2500000
      catering, health and safety, transport and all equipment)
                                                      Insurance                         75000
                                                     Legal Fees                         75000
                                                      Marketing                      300000
                                                         Editing                    1500000
                                                   Answer Print                      100000
                                                   Contingency                       500000
                                                           Total                        7.5m
                                                                   'Frightworld' Feature Film

Notes

We set the budget by establishing what we could make the film for and still turn a
reasonable profit, so it is important to note that few of these costs are actually
established. Although we are confident of filming within the overall budget, some of the
individual budget headings may be movable.

I have been quoted for insurance in the past by Aon at 1-1.5% of the production budget,
therefore I have used this as a guideline. The answer print is the first print of the film and
it is usually cheaper to produce this yourself rather than leave it to the distributor – the
cost for this is about right.

Producers fees have been stripped to a minimum to enable the film to be made, some of
which will be based on achieving performance targets (see cashflow forecast). The
production costs will be higher for Frightworld than some of our other films, as location
costs will be higher – we will need to shoot in a fully-functioning theme park in close
season, budget for wardrobe and make-up is also expected to be quite high.

                                        The Market

The film market for cinemas in the US alone in 2010 was $10.56bn. While this is slightly
down on the 2009 figure of $10.59 billion, only by 0.3%, that year in itself was 10% up on
2008 and the highest figure on record by 0.3%, making last year the second highest on
record, despite the global recession. When the international box office, DVD and other
markets are added to this, the figure is significantly higher. The film industry is one of the
few industry sectors to 'buck the recession.

We looked at films that are similar in concept, mainly sci-fi horror, although the figure for
Westworld, the closest film in concept, was not available:

       Buffy the Vampire Slayer – made $16.6 million at the US Box Office, production
        budget n/a.
       Scanners – made $14.2 million at the US Box Office, production budget n/a.
       Fright Night – made $24.9 million at the US Box Office, production budget n/a.
       The Island of Dr Moreau – made $49.6 million at cinemas worldwide, production
        budget $40 million.
       Shaun of the Dead – made $30 million at cinemas worldwide, production budget
        n/a.

(figures courtesy of www.boxofficemojo.com)

An average of the box office for the above films is $27 million. Based on a distributor
taking a 50% cut of box office, this could result in $13.5 million coming back to the
producers/investors. After the investor recoups the initial investment of $7.5m, this could
result in a $6m profit to be split between investor and producer.
                                                                  'Frightworld' Feature Film

Note (as earlier) – all of these figures are for illustration purposes only and we can in no
way guarantee that this will be the actual return, plus see 'Risk Statement' later. A typical
rate of return is 3 years, which compares well with many high-risk potential high-reward
ventures.

                                 Marketing and publicity

The distributor is ultimately responsible for the advertising, marketing and publicity for
the film, however, there is plenty we will do to assist the process. Our marketing strategy
is based on the following:

   1. Attending film festivals (see below).

   2. Promotion through horror magazines, websites, blogs and so on.

   3. Interviews with relevant media, including television, radio, newspapers,
      magazines and so on.

   4. Use of social media, such as You Tube (with a trailer), Facebook, Twitter.

   5. The film will have its own website and 'blog' (a blog is a regular record of
      thoughts, opinions and experiences that you put on the internet for other people
      to read).
                                     Our competitors

As film producers, we are in competition with all of the major studios – for instance
Warner Brothers, Sony, Paramount, Buena Vista (Walt Disney), Universal and 20 th
Century Fox. There are also what are known as the 'mini majors'. Perhaps the best
known of these are companies such as Dreamworks (Steven Spielberg) and Pixar.

We are also in competition with other independent production companies. 'Independent'
in this context simply means financed with funding other than from major studios.

In the 1970s, the major studios downsized, which gave a lot more opportunities to
independent production companies such as ours. Indeed, the major studios usually have
their own independent production companies, they have 'first look' deals with a number
of independent production companies and they often finance or acquire independent
films for distribution.

We do consider that we have some unique selling points (USPs) for both Frightworld
and our other projects:

      Chris Morgan is also the writer of the scripts, which gives us an edge over
       competitors in terms of passion for our projects.
      Frightworld is set up for sequels (see notes on spin-offs and franchises, below),
       plus there are possible spin-offs and merchandising opportunities, including
       video games and other cross-platform media.
                                                                   'Frightworld' Feature Film

                           How can you get your money back

For any film to make a return, it must be 'distributed'. The job of the distributor is to sell
the film to the various media, such as cinemas, TV/cable/satellite, DVD/home video and
so on. Distributors are also responsible for marketing films to the general public and in
many cases are involved in financing films. For cinema releases, distributors have to
make individual copies of the films, which costs between $1,000-$1,500 per copy,
therefore you can begin to see where a lot of their costs come in.

In order to try to secure distribution deals, we will attend the major film festivals, which
are:

      Sundance - January
      Rotterdam – January
      Berlin – February
      Paris – March
      San Sebastian – April
      Tribeca – April
      Cannes - May
      Moscow – June
      Venice – August
      Toronto – September
      American Film Market (AFM) - November

At these festivals, distributors will secure rights to show films in specific territories.
Investors and producers begin to get their money back distributors have taken out their
costs (the costs of making copies of the film, marketing, advertising and so on), plus
their share of the profits.

Typically, the distributor takes between 35-50% of the sales revenues (source Louise
Levinson: Film Finance), although this varies according to contract and agreement. We
have based our figures on the distributor taking 50% of sales figures, including costs.

Other options for distribution include arranging a private screening at Mr Youngs cinema
in Soho and inviting distributors - this is a well-known means of getting distribution deals
done. Also, one of our producing partners, www.westhamfilms.com has a distribution
arm.

We will also list the film production in trade papers such as Variety and the Hollywood
Reporter, which may attract enquiries from distributors.

An average of returns for similar films at the box office is $27m (see above), plus
DVD/video sales and so on. This is based on returns for similar films (see above).
                                                                  'Frightworld' Feature Film

Spin-offs and franchises

Frightworld was written with a sequel in mind. Franchising is very successful in film
terms, particularly in the horror genre, with franchises such as the Alien films, Saw films,
Friday the 13th series, Hostel films and so on, being some of the most commercially
successful in movie history. Therefore, dependent on securing distribution, investors that
invest in Frightworld will also have the opportunity to invest in Frightworld 2.

We also consider that Frightworld has a certain amount of cross-platform appeal, for
instance, with a video game, comic books/graphic novels, characters and so on. We will
be seeking to sell these rights to distributors independently of the film rights, which gives
us another possible income stream.

                                     Risk Statement

Please note that we cannot guarantee this level of return these figures are for illustration
purposes only. Investment in the film industry is highly speculative and inherently risky.
There can be no assurance of the economic success of any motion picture, since the
revenues derived from the production and distribution of a motion picture depend
primarily upon its acceptance by the public, which cannot be predicted.

The commercial success of a motion picture also depends upon the quality and
acceptance of other competing films released into the marketplace at or near the same
time, general economic factors and other tangible and intangible factors, all of which can
change and cannot be predicted with certainty.

The entertainment industry in general, and the motion picture industry in particular, are
continuing to undergo significant changes, primarily due to technological developments.
Such changes have resulted in the availability of alternative and competing forms of
leisure time entertainment plus additional revenue sources, and could lead to future
reductions in the cost of producing and distributing motion pictures. In addition, the
theatrical (cinema) success of a motion picture remains a crucial factor in generating
revenue in other media, such as DVD/video, TV etc. Therefore, it is impossible to predict
with any certainty the overall effect these factors will have on the potential revenue from,
and profitability of, motion pictures.

Chris Morgan Films is, in itself in the organisational stage and is subject to all the risks
incident to the creation and development of a new business, including the absence of a
history of operations and minimal net worth. In order to prosper, the success of the
company will depend partly upon the ability of the management to produce a film of
exceptional quality at a lower cost that can compete in appeal with higher-budgeted films
of the same genre. In order to minimise this risk, the management plans to participate as
much as possible throughout the process and will aim to mitigate financial risks
wherever possible. Fulfilling this goal depends upon the timing of investor financing, the
ability to obtain distribution contracts with satisfactory terms, and the continued
participation of the current management.

However, the film industry is one of the few that has bucked the recession – see above
figures from www.boxofficemojo.com.
'Frightworld' Feature Film

				
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