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DONNIE BROCK P.I. in...

KNOCK KNOCK, WHOS DEAD?


A Film Noir Spoof

Investor Presentation October, 2013

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Smug Dragon Productions / W. Joseph Anderson 325 W 8th St, #708, Los Angeles, CA 90014 310.962.2605 www.donniebrockpi.com wjoseph.anderson@gmail.com Confidential

CONFIDENTIALITY & NON-DISCLOSURE

The information contained in this document is the property of Smug Dragon Productions and is subject to change without notice. It is intended to be shared with a recipient who is a potential investor of the project discussed herein or a potential allianc`e partner. In the event the person(s) reading this document does not wish to pursue this matter, this document will not be copied, e-mailed, faxed, reproduced, re-engineered, nor divulged to any other third party who is not a direct part of the direct business group of the recipient of this document. Distribution or duplication to any unauthorized person is prohibited without written permission of Smug Dragon Productions. You understand that the Company will endeavor to include information in the materials that it believes to be relevant for the evaluation. However, you also acknowledge that neither Smug Dragon Productions, W. Joseph Anderson nor any of their representatives make any representation or warranty as to the accuracy or completeness of any information provided; such material does not form the basis to any agreement between the parties hereto past the date hereof. You agree that neither the Company nor any of its representatives will have any liability to you or your representatives resulting from the use of the information provided such material does not form the basis to any agreement between the parties hereto past the date hereof.

2013 Smug Dragon Productions. All Rights Reserved

TABLE OF CONTENTS

I. DONNIE BROCK P.I. IN...KNOCK KNOCK, WHOS DEAD?

II. BUSINESS STRATEGY

III. FINANCIAL PROJECTIONS 14

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I. DONNIE BROCK P.I. in... KNOCK KNOCK, WHOS DEAD?

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DONNIE BROCK P .I. in... KNOCK KNOCK, WHOS DEAD?

Donnie Brock P.I. inKnock Knock, Whos Dead? combines the anything goes, larger than life comedy of films like Airplane!, Blazing Saddles, and Monty Python and the Holy Grail with the sex, violence, and intrigue of film noir classics like The Maltese Falcon and Double Indemnity. Its a play on the film noir conventions we all know and love the cigarettes, the tall shadows, the untrustworthy dames. *** Things could be worse for Donnie Brock P.I. Sure his wife left him, hes broke, and the last case he got to the bottom of was a case of beer, but at least hes got the love of a caring wife. Oh, shit, nevermind. Just when hes ready to give up all hope, theres a knock at the door... Threats have been made against the wealthy, mysterious Kayber family, and Donnies hired to find some answers. The whole affair stinks to high heaven, but hungry for a shot at redemption and even hungrier for food, Donnie cant help but take the case. It isnt long before he ends up embroiled in the familys messy affairs. Whom can he trust? Surely not Baron Kayber, the brilliant engineer, owner of Kayber Industries, and incorrigible drunk. And good luck with Godfrey Kayber, the sickly son whos never been the same since not going to war. But then theres the Barons beautiful new bride: Gloria. Even as the threats turn into bodies, and Donnies search takes him from secret factories to posh dinner parties to the crowded streets of Little Mexico, Gloria almost makes it all worthwhile. But time is running out and the questions keep piling up. What do the Reds want with the Barons new invention? Whos threatening the Kaybers? Is Gloria in love with Donnie or just using him? How many days past the expiration date is mayonnaise still good? Donnie survives car chases and donkey rides, fist fights and shootouts, awkward flirtations and killer mimes in his quest to find the truth. But does he have what it takes to crack the case, save the day, and get the girl? (Psst...he does.)

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DONNIE BROCK P .I. in... KNOCK KNOCK, WHOS DEAD?


Style: Film Noir Spoof Creator/Story by: Smug Dragon Productions Script Writers: William Brasington, Anton Handel, Benjamin Smolen, Nikolai von Keller, Diana Wright Director: Diana Wright Producer: W. Joseph Anderson Production Budget (all in costs, including limited P&A fund): $3.5 million Production Company: Smug Dragon Productions & W. Joseph Anderson Productions Market: Family audiences of all ages Screenplay: Completed Shoot Schedule and Breakdown: Completed (First Assistant Director - Michael Borden) Budget: Completed (Line Producer - Nicole Ettinger)

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II. BUSINESS STRATEGY

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BUSINESS STRATEGY

Smug Dragon focuses on producing top quality comedic movies within a cost effective budget that is below $10 million. The company aims to produce original character-based, story-driven comedic feature films for a broad-based audience of families, teens and adults, and auxiliary spin-off television series and video game properties, merchandising franchises, as well as content for new media such as mobile phones, iPod/iTunes and web entertainment.

DONNIE BROCK P.I. in...KNOCK KNOCK, WHOS DEAD?


Financing Sought: $3.5 million Budget: $2.5 million Initial P&A Spend: $1 million Development financing for Donnie Brock P.I. inKnock Knock, Whos Dead was secured through a highly successful crowd-sourced funding initiative, in which over $35,000 was raised in a months time. This funding allowed for the production of a high-quality promotional trailer, further script development, and the creation of a shooting schedule/breakdown and a full budget. The success of the crowd-sourced funding campaign certainly demonstrates the enthusiasm from film audiences and the general public for a spoof like Knock Knock, Whos Dead?.

FINANCING REQUIREMENTS FOR

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BUSINESS STRATEGY
FINANCING REQUIREMENTS, CONTINUED

After the success of the production and completion of the promotional trailer for Donnie Brock P.I. inKnock Knock, Whos Dead, Smug Dragon Productions is now raising a total of $3.5 million of additional financing. The total production budget for Donnie Brock P.I. inKnock Knock, Whos Dead is $2.5 million. We are raising an additional $1 million to be used for Print and Advertising (P&A) costs, allowing for a limited run engagement in Los Angeles and New York to initially promote the movie. It is typical for independent films, such as Best Picture winner The Hurt Locker, to open in limited release, with subsequent buzz or good press encouraging a major distributor to step in and offer a more widespread theatrical release. The additional $1 million in P&A costs protects the movie production investment, assuring that Donnie Brock P.I. inKnock Knock, Whos Dead has the opportunity to receive proper attention from distributors, the press and the public.

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BUSINESS STRATEGY
DONNIE BROCK P.I. in...KNOCK KNOCK, WHOS DEAD?
INVESTOR DEAL FOR

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For the total financing of $3.5 million sought for Knock Knock, Whos Dead?, the investor return will include the following: A first priority position pari passu with other investors on worldwide Smug Dragon Productions cash flows from Knock Knock, Whos Dead? until the $3.5 million funding is fully recouped. Thirty percent (30%) of profits from Knock Knock, Whos Dead? including, but not limited to, income from the motion picture theatrical release, home video/DVD, merchandising, licensing, toys, video games, television, pay TV, cable, satellite, soundtrack, web/internet, mobile phones and all other subsidiary and ancillary rights income, worldwide, in perpetuity. Five (5%) of the total equity of Smug Dragon Productions, providing investors with a direct benefit from the companys on-going productions. In the event the investor chooses to fund a smaller portion than the total funding, he or she will receive pro-rated profit and equity participation.

DONNIE BROCK P.I. in...KNOCK KNOCK, WHOS DEAD?


Based on the Knock Knock, Whos Dead revenue projections on page 19 of this proposal, an investors return on a $3.5 million investment is estimated to yield over and above any equity appreciation in Smug Dragon Productions: Net Investor Profit = $10.7 million (over $3.5 million) In addition to the above, the investors 5% equity will potentially yield significant amounts in dividends, assuming no sale of equity or IPO.

INVESTOR RETURN FOR

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BUSINESS STRATEGY
UNIQUELY POSITIONED CREATIVE TEAM

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Smug Dragon Productions is comprised of William Brasington, Anton Handel, Benjamin Smolen, Nikolai von Keller, and Diana Wright. Their sketches, shorts, and web series have been featured on or received recognition from Comedy Central, Funny or Die, Fark, Current TV, Channel 101, Dorkly, Atom, and DipDive, among others. They have also partnered in the past with comedic organizations like Cracked and Mondo Media to produce exclusive content. Smug Dragons members have appeared in an Oscar-nominated film; written for Emmy-winning television programs; optioned a pilot to Amazon Studios; placed in the Nickelodeon Writing Fellowship, National Playwrights Conference, and WB Writers Workshop; received a Watson Fellowship and Philadelphia Playwrights Award; won the LA Comedy Shorts Pilot Competition; and studied theater with the National Theater Institute, the SITI Company, and the Royal Shakespeare Company. *** W. JosephAnderson, the Executive Producer of Knock Knock, Whos Dead?, is a Los Angeles-based film producer and entertainment attorney. After a childhood in front of the camera,Joeswitched sides and has been working with filmmakers to turn concepts into realities. An honors graduate of Georgetown Law, Joecurrently maintains his own legal practice, focusing on entertainment transactional work and intellectual property protection. In 2011,Joeproduced the short film Vampire Vampire Vampire Vampire (Best Comedy Short at the Atlanta Horror Film Festival) with Big Signature Productions and in 2012 co-produced the feature documentary Open Mic Night After the Apocalypse, which will be released in 2013. Joecurrently serves as General Counsel and Director of Business Affairs to several independent production companies, including Salt Mine Studios and EnterAktion Studios. Additionally,Joesits on the board of directors and executive committee of the Morgan-Wixson Theatre in Santa Monica, a 501(c)(3) non-profit.

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BUSINESS STRATEGY
SPOOFS, SATIRES, AND PARODIES Performance Analysis

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They Are Profitable At the theater box-office, spoofs, satires, and parodies earn, on average, more than $60 million domestically and $60 million abroad, with a total return of 460%. Even upon removing the outliers that sit more than one standard deviation from the mean, aka the genres biggest successes, these films still average $81 million in total world gross with a 312% return. They Are Cheap The budget for the average spoof, satire, and parody is just over $20 million, with many made, even recently, for just a few million dollars. They Spawn Franchises Approximately half of the spoofs, satires, and parodies released over the past thirty years are sequels, some from franchises that are now as many as five movies deep. The Best Are Huge Successes While even the most critically maligned spoofs, satires, and parodies turn a substantial profit, the highest quality films usually provide the highest returns: Airplane! - 2283% return The Naked Gun 557% return Austin Powers 2 845% return Scary Movie 1363% return Shaun of the Dead 650% return

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BUSINESS STRATEGY
FEMALE COMEDY DIRECTORS

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The dearth of female directors and efforts to correct that imbalance have attracted substantial national attention. Donnie Brock P.I. in...Knock Knock, Whos Dead? is proud to have Diana Wright slated as its director, and expects to garner additional coverage and support based on her position. A commonly cited statistic is that women make up only seven percent of the members of the Directors Guild of America. That number is even more distressing for comedies. Over the past ten years, women have directed only nine of the top grossing two hundred comedies. Nine out of two hundred - thats 4.5%. Here are those films:
The Guilt Trip (2012, Anne Fletcher), The Proposal (2009, Anne Fletcher), Its Complicated (2009, Nancy Myers), Julie & Julia (2009, Nora Ephron), 27 Dresses (2008, Anne Fletcher), The Holiday (2006, Nancy Myers), Bewitched (2005, Nora Ephron), Bridget Jones Diary 2 (2004, Beeban Kidron), Somethings Gotta Give (2003, Nora Ephron)

Only four women directed those nine films and, even worse, if romantic comedies were removed from the list - a subgenre still dominated by male directors - the nine films would be reduced to two. By comparison, here are just a few of the remaining one hundred and ninety one top grossing comedies directed by men over the past ten years:
Ted, 21 Jump Street, The Campaign, This Is 40, American Reunion, The Dictator, This Means War, What To Expect When Youre Expecting, Thats My Boy, The Watch, Hangover 2, Bridesmaids, Horrible Bosses, Bad Teacher, Jack and Jill, No Strings Attached, Hall Pass, Big Mommas, Paul, Grown Ups, Due Date, Date Night, The Other Guys, The Bounty Hunter, Get Him to the Greek, Easy A, Hot Tub Time Machine, Cop Out, Vampires Suck, Shes Out of My League, The Switch, MacGruber, The Hangover, Couples Retreat, Hes Just Not That Into You, Zombie Land, Bruno, I Love You Man, Ghosts of Girlfriends Past, Funny People, Year One, Observe and Report, Fired Up, Adventureland, The Invention of Lying, Hancock, Get Smart, Four Christmases, Tropic Thunder, You Dont Mess With the Zohan, Pineapple Express, Role Models, Forgetting Sarah Marshall, Burn After Reading, The House Bunny, Harold and Kumar, Meet the Spartans, Zack and Miri Make A Porno, The Simpsons Movie, Knocked Up, Juno, Rush Hour 3, Superbad, Blades of Glory, License to Wed, Epic Movie, The Heartbreak Kid, Balls of Fury, Mr. Woodcock, Hot Fuzz, Talladega Nights, Borat, Click, The Devil Wears Prada, The Break Up, Scary Movie 4, Feailure to Launch, Jackass 2, RV, Little Miss Sunshine, Little Man, Wedding Crashers, Mr & Mrs Smith, Hitch, The Longest Yard, 40 Year Old Virgin, Monster In Law, Guess Who, Fun With Dick and Jane, Wallace And Gromit, Be Cool, Kicking and Screaming, Meet the Fockers, 50 First Dates, Dodgeball, Starsky and Hutch, Along Came Polly, Mean Girls, Anchorman, White Chicks, Barbershop 2, Without a Paddle, 13 Going on 30, Napoleon Dynamite, Bruce Almighty, Elf, Anger Management, Freaky Friday, How To Lose A Guy in 10 Days, American Wedding, Legally Blonde 2, Old School, Shanghai Knights, Bad Santa, Love Actually

2013 looks to be more of the same, with the current top ten comedies all directed by men. We hope to break that trend.

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III. FINANCIAL PROJECTIONS

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FINANCIAL PROJECTIONS
TENTATIVE MOVIE PRODUCTION SCHEDULE AND RELEASE
Project Start of Pre-Production & Production (Done) Start of Principal Photography January, 2014 Completion Estimated Release

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Knock Knock, Whos Dead?

March, 2014

Summer, 2014

Disclaimer: Smug Dragon has the right to change the date on which any project shall commence. In addition, the distributor has the right to change the suggested release date to accommodate the theater distribution schedule.

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FINANCIAL PROJECTIONS
ASSUMPTIONS: Theatrical Box Office Revenues and Costs

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It is expected that a major studio will manage the distribution of Donnie Brock P.I. inKnock Knock, Whos Dead?. The master distributor will be responsible for servicing and distributing the film, collecting the resulting receipts, remitting those receipts to Smug Dragon and providing reports of the distribution activity. The major studios, in this case representing the producing studio and theater owners, (also known as exhibitors), typically split box office receipts 50%-50% domestically. For the international box office, the percentage is closer to 45% for the studio. Smug Dragon also followed these scenarios. The film distributors usually negotiate a distribution fee between 10%-25%, and in some cases a participation in the profitability of the film(s). We have chosen 15% due to an assumption that our films will be financed by third parties. Typical studio printing and advertising/marketing costs range from $1 to $50 million. We have chosen $10 million, which is sufficient for advertising a feature film with a wide appeal. Talent participations are contractual profit participations, (or royalties), paid to writers, creators, creature designers, stars/ actors, producers, directors and composers. As a standard practice, these participations are given to key creative personnel as incentives, and only after all other costs are paid and the project is profitable. Royalty participations are estimated at 15% of net revenues, although, it is not uncommon in the industry that some talent participants may require gross participation.

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FINANCIAL PROJECTIONS
ASSUMPTIONS: Home Video/DVD
The video release window tends to be three to six months after the theatrical release.

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Since the home video distributor assumes all costs of manufacturing, marketing and distribution, the wholesales figures ($10 per unit) are split evenly: 50% for Smug Dragon and 50% going to the distributor.

ASSUMPTIONS: Television
Revenues are traditionally divided into two release windows Pay TV and Free TV. Pay TV The traditional pay TV window is when movies are made available on premium (pay) networks such as HBO and Showtime. This usually happens roughly one year following the domestic release of a movie. Based on the industry historical data, we project the royalty for our feature film to be 5% of the gross domestic box office revenues. Free TV (network & syndication) - After the pay window there is the broadcast window, or output deals, with one of the Big Four major broadcast networks: ABC, CBS, FOX and NBC. Continuity could be up to five to seven years following a films initial box office release; including reruns on a local television station or group of stations. Based on the study of various deals in the past five years, we estimate the royalty for our feature film to be about 10% of gross domestic box office.

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FINANCIAL PROJECTIONS

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ASSUMPTIONS: Merchandising, Licensing, Toys, and Games


The revenues generated from the licensing of rights to manufacture and distribute: video games, dolls, action figures, toys, clothing and similar commercial articles derived from characters or other elements of a motion picture. Soundtrack albums and licensing of rights to perform musical works from film music can also be a source of income. The video game industry recently surpassed the motion picture market in gross sales. Certain motion picture properties tend to open significant game opportunities, providing additional ancillary revenues. The license fee from all merchandising is projected to be 12%.

Not yet included in financial projections


Potential revenues from video iPod/iTunes, VOD, mobile phone entertainment and web entertainment. Additionally, revenues from derivative works such as theme park attractions, ice shows, musicals and plays

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FINANCIAL PROJECTIONS

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Robust project economics as estimated by the Company based on historical averages of approximately 30 spoofs, satires, and parodies from Airplane! (1980) to Scary Movie 5 (2013): Net Project Profit - $35.75 million Project ROI - 921%

Knock Knock, Whos Dead? Budget costs (all costs incl. R&D) Worldwide Box Office Gross Sales Exhibitor Fee Print & Advertising Distribution Fee DVD Gross Sales DVD Distribution Fee TV Gross Sales TV Distribution Fee Merchandising, Licensing, and Video Game Royalties Talent Participation Administration Fee NET PROJECT PROFIT

(Millions of Dollars) (2.5) 100 (50) (10) (15) 20 (10) 15 (3.75) .5 (7.5) (1) 35.75

Note: Based on averages over ten years.

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DONNIE BROCK P.I. in...KNOCK KNOCK, WHOS DEAD?

Smug Dragon Productions / W. Joseph Anderson 325 W 8th St, #708, Los Angeles, CA 90014 310.962.2605 www.donniebrockpi.com wjoseph.anderson@gmail.com

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