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Here's a quick guide to some terms commonly used within the movie business. This information may save your life someday. Pay attention.

Above the Line costs. Movie production costs include most development costs, intellectual property costs, costs relating to the producers (including the producer's fee, the executive producer's fee and their assistants), costs relating to the director (including the director's fee, DGA fees and any assistants), talent costs (including the principal cast, the supporting cast, extras, casting director and casting fees) and travel and living costs for any of these 'above the line' persons.

Adjusted Gross Receipts. A contractually defined term that, in our case, equals the cash available to our Company after paying all film, general and administrative and other corporate costs, income taxes, reserving for the investors, and reserving for any additional foreseeable contingent liabilities. In this prospectus we refer to the adjusted gross receipts of Security Threat Films, LLC or any subsidiary company as our "Adjusted Cash Balances".

Below the Line costs. Movie production costs encompassing production and post-production phases, including labor costs for production personnel (such as the director of photography, the general production staff, the lighting staff, the editors, etc.) as well as any equipment rentals, wardrobe or props rentals and purchases, insurance policies, location fees and editing costs.

Completion Bond. A form of insurance which provides that, should the producers run into significant problems completing the Film, the bond company would: 1) advance any sums in excess of the budget required to complete and deliver the Film; 2) complete and deliver the Film itself; or 3) shut-down the production and repay the financier monies spent toward the production of the Film.

Contingent compensation. Compensation to creative personnel and producers that is contingent upon the performance of the Film. This compensation may take the form of guild or union required residual payments, or of negotiated percentages of a film's gross or net returns.

Directors Guild of America (DGA). A guild representing motion picture and television directors and assistant directors.

Distribution fees. Fees that distributors charge for releasing a film in various territories. These fees are negotiated on a film by film basis and typically range between 30%-40% of the revenues a distributor receives from theatrical exhibitors.

Distribution revenues. Revenues generated as a result of exploiting a film in theatrical, home video, pay cable, pay-per-view, and other forums.

Dissolution. In this prospectus, dissolution refers to the termination of our company and disbursement of assets to stockholders.

Distributor (or Distribution Company). The entity that is primarily responsible for making copies of a film for theatrical or video exhibition, promoting and marketing a film to the public, and making arrangements with exhibitors to show the film in theaters or in other markets (or 'release windows').

Fixed Deferrals. Pre-negotiated deferred payments of flat fees sometimes granted to key personnel or talent, usually tied to a film's gross financial returns.

Gross Profit Participation. A form of contingent compensation based upon gross revenues before any costs (such as, distribution fees, financing costs and other corporate costs) are deducted.

Net Profit Participation. A form of profit participation based upon a negotiated definition of net revenues after deducting certain costs of a film, including distribution fees, financing costs and general corporate expenses. Sometimes defined as "adjusted gross" participation.

Producer's net profit. In our case this number is defined as 50% of our adjusted cash balances and consists of the aggregate total of the combination of any potential returns to our common stockholders and all persons who will receive contingent compensation through net participations.

Profit Participations. A negotiated form of contingent compensation granted to talent or personnel and paid out as a percentage of a film's net receipts, adjusted gross receipts or, adjusted cash balances. A form of contingent compensation.

Release Windows. Various channels or media within a specified territory timed sequentially beginning with a film's initial theatrical release. These include movie theatres; home video; pay-per-view; pay cable; network television; and syndicated television.

Residual payments. Obligations providing that a percentage of a film's gross revenues in certain markets must be paid to certain organizations, unions, or guilds for the benefit of their members. A form of contingent compensation.

Residual revenues. Monies received through ongoing revenue, which in many cases is negligible, pertaining to the continued exploitation of a film's copyrights after it has been commercialized in most primary markets.

Screen Actors Guild (SAG). A guild representing member film and television performers. It is probable that we will enter in order to procure key talent.

Security Threat Films, LLC (STF). An irreverent entertainment company focused on incredible financial compensation for investors, employees and founders.

Theatrical Exhibitor. The person or entity which shows a film in a theater and charges box office admission. The theatrical exhibitor typically takes approximately 50% of the box office return before passing on the remainder to the distribution company.

Writers Guild of America (WGA). A guild representing motion picture and television screenwriters.