Okay I have a question for both sunday and jack. Sunday says Disney has a huge call on all future POWN revenue because of the terms of the agreement; even if they turn down a POWN creation Disney still gets a large share of the revenue from it. Jack says that Disney gets only $100,000 or so. Well, the way I read the paragraph below, I side with sunday here:
"At present, we [POWN] believe that, in a typical deal for feature films, we would receive an executive producer fee ranging between $450,000 and $850,000 per feature film project produced, plus a share of potential “back-end” revenues or profits, as well as a share of licensing and merchandising revenues. Although an amount in this range is payable to the Company by Silver Creek for any feature films produced, such amount would be subject to offsets to permit Silver Creek to recoup a portion of the advances and guaranteed payments that it is and has been paying the Company on a monthly basis."
To me, this says if POWN earns any revenue, Disney [Silver Creek] has first call on that revenue so that they can be repaid for "a portion of" ALL of the money - i.e., $2.5 million per year - they have advanced POWN since the start of the agreement. Jack, that does not square with your interpretation of only $100k. The key phrase, of course, is how to define "a portion of the advances and guaranteed payments"; what is the percentage of payback here? Does anyone know?
AI
