OPPORTUNITY
Here are the terms of the investment deal:
There are forty (40) equity units to investors at a price of $25,000 per unit equaling production funds of $1,000,000.
Investors will recoup their investment in its entirety pro rata and pari passu with all other investors in first priority from “first dollars” of producer’s gross proceeds consistent with the following schedule:
First: 100% to the investors, on a pari passu basis, until distributions to investors equal, on a cumulative basis, 100% of the aggregate capital contribution (including in-kind contributions). Each investor’s individual right to proceeds will depend on the proportion its respective capital contributions (including in-kind contributions) bears to the aggregate contributions of all investors.
Second: 100% to the investors on a pari passu basis until distributions to the investors under this Second and First above equal, on a cumulative basis, 120% of the aggregate capital contributions (including in-kind contributions). Each investor’s individual right to proceeds will depend on the proportion its respective capital contributions (including in-kind contributions) bears to the aggregate contributions of all investors.
Third: 100% to the payment of any contingent deferred amounts paid, earned or payable to any person or entity engaged to render or furnish services in connection with WEST END (which may include one or more producers, the writer and/or the director of WEST END) based upon, or computed in respect of gross proceeds or otherwise (whether payable before or after a breakeven point or other agreed level of receipts) prior to the point, if ever, that “Net Proceeds” are payable in accordance herewith; it being understood that such contingent deferment amounts, if any, shall be capped at one hundred thousand dollars ($100,000.00) unless otherwise agreed by the investors.
Fourth: 100% of net proceeds payable 50% to the investors and 50% to the owner/producers of WEST END.