What is the amount of “Bank Gap” or Subordinated Debt required to finance the following feature film?

Gross Production Budget                         $16,000,000

Production Deferments for ATL Crew & Vendors$     500,000

Minimum Guarantee Pre-Licensing Agreements:

Primary Territories            $7,000,000

Secondary Territories         $4,000,000          $11,000,000 (subtotal)

(Note: Senior Lender will advance 90% for primary and 50% for secondary territories; deposits on licensing agreements are equal to 20% of gross M.G. licensing amounts)

Estimated State Tax Incentive (22% of qualified budget expenditures of $12,000,000)

(Note: Senior Lender will advance 85% of Estimated State Tax Incentive)

Estimated Unsold Foreign Territorial Amounts (Ask: $7,000,000 / Takes $5,000,000)

Equity Investment (Equity Premium 20%);          $4,000,000

Profit Participation 50% of Net Proceeds)

*Note: the limit for “bank gap”