# EDGAR Filing Document

**Accession Number:** 0001861670
**File Stem:** 0001861670-23-000001
**Filing Date:** 2023-2
**Character Count:** 213860
**Document Hash:** 2d2441853e8b68113fbad3a87c643651
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001861670-23-000001.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001861670-23-000001

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 5

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Toothy Cow Productions, LLC
- **CENTRAL INDEX KEY:** 0001861670
- **IRS NUMBER:** 862505886
- **STATE OF INCORPORATION:** TN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31754
- **FILM NUMBER:** 23600030

**BUSINESS ADDRESS:**
- **STREET 1:** 1100 BRYANA DRIVE
- **CITY:** FRANKLIN
- **STATE:** TN
- **ZIP:** 37064
- **BUSINESS PHONE:** 6152894438

**MAIL ADDRESS:**
- **STREET 1:** PO BOX 681142
- **CITY:** FRANKLIN
- **STATE:** TN
- **ZIP:** 37064

### Attached PDF Documents

**Attachment 1:** `FormC1.pdf`

# **UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
Washington, D.C. 20549**

# **FORM C**

# **UNDER THE SECURITIES ACT OF 1933**

Name of issuer: Toothy Cow Productions, LLC

Legal status of issuer

Form: Limited liability company

Jurisdiction of Incorporation/Organization: Tennessee

Date of organization: March 9, 2021

Physical address of issuer: PO Box 681142, Franklin TN 37068

Website of issuer:

Name of intermediary through which the Offering will be conducted: VAS Portal, LLC

CIK number of intermediary: 0001749383

SEC file number of intermediary: 007-00165

CRD number, if applicable, of intermediary: 298941

Amount of compensation to be paid to the intermediary, whether as a dollar amount or a percentage of the Offering amount, or a good faith estimate if the exact amount is not available at the time of the filing, for conducting the Offering, including the amount of referral and any other fees associated with the Offering:

4% of the successful amount raised in cash, 2% of the successful amount raised in the equity of the offering, plus reimbursements for any out-of-pocket expenses incurred by the portal with third-party service providers in connection with the offering.

Any other direct or indirect interest in the issuer held by the intermediary, or any arrangement for the intermediary to acquire such an interest:

The intermediary holds 307,035 preferred units that were issued in 2022 to the intermediary as compensation for services rendered in the issuer’s previous regulation crowdfunding offerings.

Type of security offered: Class A Preferred Units

Target number of Securities to be offered: 166,667

Price (or method for determining price): $1.50

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Target offering amount: $250,000.50

Oversubscriptions accepted:

☑ Yes
☐ No

Oversubscriptions will be allocated:

☐ Pro-rata basis
☑ First-come, first-served basis
☐ Other - provide a description:

Maximum offering amount (if different from target offering amount): $3,285,063

Deadline to reach the target offering amount: March 15, 2023

**NOTE: If the sum of the investment commitments does not equal or exceed the target offering amount at the Offering deadline, no Securities will be sold in the Offering, investment commitments will be canceled and committed funds will be returned.**

Current number of employees: 17

|  | Most recent fiscal year-end | Prior fiscal year-end |
| --- | --- | --- |
| Total Assets | $3,272,460 | $0.00 |
| Cash & Cash Equivalents | $3,268,842 | $0.00 |
| Accounts Receivable | $0.00 | $0.00 |
| Short-Term Debt | $0.00 | $0.00 |
| Long-Term Debt | $0.00 | $0.00 |
| Revenues/Sales | $0.00 | $0.00 |
| Cost of Goods Sold | $0.00 | $0.00 |
| Taxes Paid | $36,758 | $0.00 |
| Net Income | -$1,904,539* | $0.00 |

*the production of the show will be capitalized upon the completion of season one, based on the most recent audited financials as of Dec. 31, 2021

The jurisdictions in which the issuer intends to offer the Securities:

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY.

## OFFERING STATEMENT

Respond to each question in each paragraph of this part. Set forth each question and any notes, but not any instructions thereto, in their entirety. If disclosure in response to any question is responsive to one or more other questions, it is not necessary to repeat the disclosure. If a question or series of questions is

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inapplicable or the response is available elsewhere in the Form, either state that it is inapplicable, include a cross-reference to the responsive disclosure, or omit the question or series of questions.

Be very careful and precise in answering all questions. Give full and complete answers so that they are not misleading under the circumstances involved. Do not discuss any future performance or other anticipated event unless you have a reasonable basis to believe that it will actually occur within the foreseeable future. If any answer requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management, and principal shareholders may be liable to investors based on that information.

## THE COMPANY

1. Name of issuer: Toothy Cow Productions, LLC

## ELIGIBILITY

2. ☑ Check this box to certify that all of the following statements are true for the issuer:

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding. (For more information about these disqualifications, see Question 30 of this Question and Answer format).
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding? Yes ☐ No ☑

## DIRECTORS OF THE COMPANY

4. Provide the following information about each director (and any persons occupying a similar status or performing a similar function) of the issuer:

Business Experience: List the employers, titles and dates of positions held during past three years with an indication of job responsibilities:

| Director: | Principal Occupation: | Main Employer: | Dates of Service: |
| --- | --- | --- | --- |

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| Andrew Peterson | Musician & Author | Principle, Andrew Peterson Touring, Inc. (Touring and Recording Musician) President and Artistic Director, The Rabbit Room (Not for profit community and spiritual development with events and annual conference) President and Executive Producer, Toothy Cow Productions, LLC. / Shining Isle Productions, LLC. (Producing The Wingfeather Saga Animated Series) | April 2013 - Present (Andrew Peterson Touring, Inc.) 2008 - Present (The Rabbit Room) 2016 - Present (Shining Isle Productions, LLC.) March 2021 - Present (Toothy Cow Productions, LLC.) |
| --- | --- | --- | --- |
| J. Chris Wall | Film and TV Executive | CEO and Executive Producer, Toothy Cow Productions, LLC. / Shining Isle Productions, LLC. (Producing The Wingfeather Saga Animated Series) | March 2021 - Present (Toothy Cow Productions, LLC.) 2016 - Present (Shining Isle Productions, LLC.) |
| Ajay Madhok | General Partner | Angel Acceleration Fund | February 2023 - Present |

## OFFICERS OF THE COMPANY

5. Provide the following information about each officer and director (and any persons occupying a similar status or performing a similar function) of the issuer:

| Name | Position | Term of Office | Responsibilities |
| --- | --- | --- | --- |
| Andrew Peterson | President and Executive Producer | March 2021 - Present | Writer, Creative Director |
| J. Chris Wall | CEO and Executive Producer | March 2021 - Present | Showrunner, Business Administration |
| Keith Lango | CTO and CG Supervisor | September 2021 - Present | Technology, Animation |

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| Garrett Taylor | Art Director | September 2021 - Present | Art |
| --- | --- | --- | --- |
| Brock Starnes | COO and Executive Producer | March 2022 - Present | Distribution and Production |

Business Experience: List the employers, titles and dates of positions held during past three years with an indication of job responsibilities:

# **Andrew Peterson**

**Employer: Toothy Cow Productions, LLC; Shining Isle Productions, LLC.**

**Employer’s Principal Business: Animation Studio**

**Title: President and Executive Producer**

**Dates of Service: 2021 - Current**

Employer: The Rabbit Room

Employer’s Principal Business: Not for profit community and spiritual development with events and annual conference

Title: President and Artistic Director

Dates of Service: 2008 - Current

Employer: Shining Isle Productions, LLC.

Employer’s Principal Business: Developing The Wingfeather Saga Animated Series

Title: Co-Founder and President

Dates of Service: 2016 - Current

Andrew is a recording artist, songwriter, producer, filmmaker, and award-winning author of The Wingfeather Saga. In 2008, Andrew founded a non-profit arts organization called The Rabbit Room. The Rabbit Room hosts concerts and conferences and has published over 30 books to date.

Between the books, albums, and tours, Andrew has spoken regularly at conferences, universities, and seminaries around the country and in the U.K. on art, faith, and writing. He was writer-in-residence at Covenant College in 2015, and at John Brown University in 2014. He received the Association of Biblical Higher Education (ABHE) Delta Epsilon Chi Honor Society award, presented to an alumnus who has distinguished himself/herself by intellectual achievement, Christian character, and leadership ability. Most recently he was a keynote speaker in Cambridge, England for the C. S. Lewis Foundation’s Oxbridge Summer Conference.

# **J. Chris Wall**

Employer: Toothy Cow Productions, LLC

Employer’s Principal Business: Animation Studio

Title: CEO and Executive Producer

Dates of Service: 2021 - Present

Employer: Self Employed

Employer’s Principal Business: Producing Faith and Family Media

Title: Executive Producer

Dates of Service: 2016 - May 2021

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Employer: Shining Isle Productions, LLC.

Employer's Principal Business: Developing The Wingfeather Saga Animated Series

Title: Co-Founder and CEO

Dates of Service: 2016 - Present

Chris is a respected creator of family and faith-infused entertainment. His work has been enjoyed by millions of families after spending over 10 years working with Big Idea and Dreamworks Animation to produce the venerated animated series, VeggieTales. He led a multi-national team for '3-2-1 Penguins' airing on NBC/Qubo.

His career in animation has spanned over 20 years, beginning with Max Lucado's 'You Are Special' direct-to-video special, where he served as editor and voiced the lead character. He also created the acclaimed 'The Slugs & Bugs Show' with Brentwood Studios and RightNow Media.

### **Keith Lango**

Employer: Toothy Cow Productions, LLC.

Employer's Principal Business: Animation Studio

Title: CTO and CG Supervisor

Dates of Service: August 2021 - Present

Employer: Amazon Games Studios

Employer's Principal Business: Game Studio

Title: Cinematics & Marketing Art Lead

Dates of Service: December 2019 - August 2021

Keith is both a student and instructor in the art of animation and its technology. His passion for developing engaging experiences in animation has given him a wide and varying experience in the field and was fundamental to the creation of The Wingfeather Saga's distinct animation style. He has worked on 3-2-1 Penguins, VeggieTales and at Valve Corporation on video games like Portal 2. He brings a strength of animation technology experience as well as a deep knowledge of pipeline challenges that can stunt a production and stifle artist creativity and how to avoid them.

### **Garrett Taylor**

Employer: Toothy Cow Productions, LLC.

Employer's Principal Business: Animation Studio

Title: Art Director

Dates of Service: August 2021 - Present

Employer: Pixar Animation Studios

Employer's Principal Business: Animation Studio

Title: Art Director

Dates of Service: June 2011 - August 2021

Garrett is both an artist and an observer of the natural world. Coming from over 10 years at Pixar Animation Studio, his passion for building worlds has given him a deep understanding of creating beautiful and intriguing art. His career started as an intern for Pixar. Working his way to art director, he designed on many acclaimed films. His most recent works are on display in the movies *Luca* and *Lightyear*.

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# **Brock Starnes**

Employer: Toothy Cow Productions, LLC.

Employer’s Principal Business: Animation Studio

Title: COO and Executive Producer

Dates of Service: March 2022 - Present

Employer: Brentwood Studios

Employer’s Principal Business: Producing and distributing faith and family content

Title: Principal

Dates of Service: March 2010 - Present

Brock has advised and produced content for children and family entertainment properties. For the past 10+ years, he has served as Partner at Brentwood Studios where he advised clients in the areas of strategy, partnerships, and product development and served as Co-creator and Executive Producer of Michael W Smith’s children’s brand *Nurturing Steps* and *The Slugs & Bugs Show*. In 2018 he began working with Shining Isle Productions on The Wingfeather Saga brand and series. In 2022, he joined Toothy Cow Productions, LLC to serve as COO and Executive Producer of The Wingfeather Saga animated series.

# **Ajay Madhok**

Employer: Angel Acceleration Fund

Employer’s Principal Business: early-stage Venture Fund

Title: General Partner

Dates of Service: September 2022- Present

Employer: Angel Studios

Employer’s Principal Business: Media Distribution Studio

Title: Vice President of Strategy

Dates of Service: April 2021 - Present

Employer: mediaX at Stanford University

Employer’s Principal Business: Education

Title: Distinguished Visiting Scholar

Dates of Service: September 2019 - 2022

Ajay Madhok, a General Partner of Angel Acceleration Fund, empowers the next generation of brilliant storytellers to bring their stories to light. In addition, he is the VP of Strategy at Angel Studios and designs experiments for shaping demand and unlocking the supply of light-amplifying content.

He is a growth architect who has experienced innovation from both sides - helped grown-ups innovate and built startups to disrupt them. He is a mediaX Distinguished Scholar and an affiliate of the Graduate School of Business at Stanford University.

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## PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer’s outstanding voting equity securities, calculated on the basis of voting power.

| Name of Holder: | No. and Class of Securities Now Held: | % of Voting Power Prior to Offering: |
| --- | --- | --- |
| Shining Isle Productions, LLC* | 16,250,000 | 83.38% |

*Each of J. Chris Wall and Andrew Peterson are 37.50% owners in Shining Isle Productions.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer.

Company produces and manages the animated series The Wingfeather Saga, based on the popular 4-book series by Andrew Peterson. Since the release in 2008 of “On the Edge of the Dark Sea of Darkness” (Book One of *The Wingfeather Saga*), over 1M books have been sold. Originally released through a small imprint, the titles are now published with Penguin Random House.

Upon completion of the successful book series, Andrew Peterson partnered with J. Chris Wall (*VeggieTales* Producer) to create “*The Wingfeather Saga* Short Film” (2017). Fans helped raise over $250,000 on Kickstarter to bring the short film to life.

Chris and Andrew built a world class team around the short film that included Tom Owens (Dreamworks “How to Train Your Dragon”), Keith Lango (Valve Corp “Portal”) and Nicholas Kole among others.

The team is now developing a multi-season TV series adaptation of the 4 Wingfeather books created with world-class animation talent and an independent spirit. The series will incorporate an innovative style that blends CGI animation and hand-crafted environment paintings. The short film (2017) casts a vision by presenting a rich visual experience within an efficient production process.

The tv series is intended to be distributed through online video streaming services, television and home video. Including the development and distribution of licensing and merchandising products. The Company has entered into an Exclusive Distribution Agreement with Angel Studios who will seek to monetize the series like they have done with the *Chosen* through direct-to-consumer distribution, and licensing to other streaming and/or broadcast platforms. Producers intend to reinvest revenues to develop future seasons and episodes based on the 4 book series.

### Introductory Synopsis to the Series

The Wingfeather Saga chronicles the adventures of the Igiby family as they discover secrets, flee the evil Fangs of Dang, seek their place in the world, and make a stand against the mysterious ruler, Gnag the Nameless.

They will need their special gifts and all the love of their noble mother and ex-pirate grandfather to survive the venomous Fangs, sea dragons, flabbits, and (gulp) toothy cows!

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### The company's social, environmental, spiritual impact

The social impact of *The Wingfeather Saga* is directly inspired by the mission of The Rabbit Room, a not-for-profit co-founded by Andrew Peterson. The Rabbit Room cultivates and curates stories, music, and art to nourish Christ-centered communities for the life of the world. The magic of storytelling has the power to shape not only our minds, but the world around us. And story, like music, has the kind of magic that not only draws people closer to one another, but draws them further up and further into the great Story.

Practically our (working) mission at Toothy Cow Productions is in partnership with our audience, we seek to tell stories for kids and families that are adventurous, beautiful, and true using animation for film and television.

For too long, there have been a sparse amount of TV series for both parents and kids to enjoy together. Stories that unfold chapter by chapter and engage discussion and questions. Most adult shows are too explicit for younger children, and most kids shows make parents and siblings run away screaming. *The Wingfeather Saga* features whimsical world building, epic stakes, and redemptive storylines, all with a ticklish sense of humor. Families will appreciate how many-layered themes reinforce the strength of togetherness, identity, faith, and courage.

Our creative and technological endeavors have also yielded dramatic environmental savings in our production pipeline. Whereas a traditional animation pipeline would require 80 Kilowatt hours to render all 6 episodes of Season 1, utilizing innovative game-engine technology allows Season 1 to be completed utilizing only 10 Kilowatt hours of energy - a 60% savings of energy consumption.

A key metric we will be tracking is co-viewing. While we are aiming for a target audience of boys and girls aged 8-12, *The Wingfeather Saga* has been developed for families to experience it together. We are working with our distributor - Angel Studios - to develop mechanisms to track this outcome. We are additionally developing ancillary products and experiences outside of the TV series that bring families together for shared experiences and discussion.

We would see true success in fostering a space for additional stories to be developed and brought to market in this 'middle space' - between the faith-based and general markets - through the success in winning an audience for *The Wingfeather Saga*.

## RISK FACTORS

**A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.**

**In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.**

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The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

8. Discuss the material factors that make an investment in the issuer speculative or risky:

### **Risks Related to the Company and our Business**

*The Company’s assumptions concerning future operations may not be realized.*

The Company’s goal is to produce a commercially profitable episodic television series (the “Series”) in line with the budget as set forth in the table below. The Company’s projected results are dependent on the successful implementation of the Company’s business plan and strategies and are based on hypothetical assumptions and events over which the Company has only partial or no control.

While management believes that its goals and objectives are reasonable and achievable, no assurance can be given that they will be realized. The revenue we could generate will vary greatly based on factors that we cannot quantify, including things such as ultimate cost of production, methods of distribution later negotiated, audience interest, general economic outlook, etc.

*Management will have broad discretion as to the use of the proceeds from the offering.*

The Company’s management will have broad discretion as to the use of the net proceeds from the Offering for the purpose of producing and distributing the Series. Investors will be relying on the judgment of the Company’s management regarding the use of the proceeds for the purpose of producing the Series.

The production of the Series will require many other highly-skilled creative and production personnel. Although the Company expects to find high quality candidates to fill these positions, there can be no assurance of their cooperation and participation through completion of the Series. Replacing key talent could delay production or reduce the quality of the Series, which would impair the Company’s revenue. Also, many of these positions will require the Company to hire members of unions or guilds. As a result, the Company’s ability to terminate unsatisfactory or non-performing works could be adversely affected by existing union or guild contracts and regulations. This could delay production of the Series and significantly increase costs.

*The Company has a limited operating history upon which investors can evaluate the Company.*

The Company was recently formed for the purpose of developing, producing and distributing the Series. Accordingly, the Company has limited operating history on which prospective investors may evaluate the Company’s business and prospects. The Company has no revenues and requires the net proceeds from the sale of Preferred Units to fund development and production of the Series. If and when production of the Series commences, no assurance can be given that the Series will receive market acceptance when produced.

*The company is new and faces all of the risks of a start-up company.*

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The Company will encounter challenges and difficulties frequently experienced by early-stage companies, including the expenses, difficulties, complications and delays frequently encountered in connection with the formation and commencement of operations, the production and distribution of a movie, and the competitive environment in which the Company intends to operate. The Company may not successfully address any of these risks. If the Company does not successfully address these risks, the Company's business will be seriously harmed.

*The Company's success depends on the successful production and distribution of a single episodic television series and the Company is unable to diversify its investment to reduce its risk of failure.*

The Company will only produce the Series. No assurance can be given that the Company's management team will be able to successfully develop, produce and make arrangements for the distribution of the Series. Because the Company will have only one asset, the Series, the Company is more vulnerable to unanticipated occurrences than a more diversified business. The development, production, completion and distribution of the Series is subject to numerous uncertainties, including financing requirements, personnel availability and the release schedule of competing films. There may be additional problems which could adversely affect the Company's profitability, including (without limitation) public taste, which is unpredictable and susceptible to change; competition with other films and/or shows, motion pictures and other leisure activities; advertising costs; uncertainty with respect to release dates; and the failure of other parties to fulfill their contractual obligations and other contingencies. No assurance can be given that the Company will be able to successfully develop, produce, distribute, or realize any revenue from the Series. Failure to develop, produce, distribute or realize any such revenues will have a material adverse effect on the Company's business, operating results and financial condition.

Additionally, the Company's lack of diversification may make it vulnerable to oversupplies in the market. Most of the major U.S. production studios are part of large diversified corporate groups with a variety of other operations, including television networks and cable channels, which can provide means of distributing their products. The number of productions released by the Company's competitors, particularly the major U.S. production studios, in any given period may create an oversupply of product in the market and may make it difficult for the Company to succeed.

*Because the television industry business is highly speculative, the Company may never achieve profitability.*

The television industry is highly speculative and involves a substantial degree of risk. No assurance can be given of the economic success of any television series since the revenues derived from the production and distribution of such product primarily depend on its acceptance by the public, which cannot be predicted. The commercial success of a television series also depends on the quality and acceptance of competing products and shows released into the marketplace at or near the same time, the availability of alternative forms of entertainment and leisure time activities, general economic conditions and other tangible and intangible factors, all of which can change and cannot be predicted with certainty. We have no control over what other films or shows or content is released at the same time as our content and thus we cannot know, but it is always possible that another company's content may be more desirable than our own and we are unsuccessful in competing in the marketing. No assurance can be given that the Series will appeal to the public or that other shows and films may not be more appealing and therefore reduce the demand to view the Series. Accordingly, there is a substantial risk that the Series will not be commercially successful, in which case the Company may be unable to recoup costs associated with the production of the Series or realize revenues or profits from the sale of the Series.

*The Series may not succeed if it receives unfavorable reviews.*

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The financial success of a television series, in large measure, depends on the reaction of the public, which is often influenced by professional reviewers or critics for newspapers, television and other media. It is impossible to judge in advance what the reaction of these reviewers and critics will be to the Series. To the extent that the Series receives unfavorable reviews from these reviewers and critics, its chances of success may be substantially diminished.

# ***Technological advances may reduce demand for films and televisions.***

The entertainment industry in general, and the motion picture and television industry in particular, are continuing to undergo significant changes, primarily due to technological developments. Because of this rapid growth of technology, shifting consumer tastes and the popularity and availability of other forms of entertainment, it is impossible to predict the overall effect these factors will have on the potential revenue from and profitability of an episodic television series.

# ***The Company's actual operating results may differ from its initial estimates.***

The Company’s operating results depend on production costs, public tastes and promotion success. The Company expects to generate its future revenues from the distribution and exploitation of the Series and the rights therein. The Company’s future revenues will depend on getting the Series produced and into distribution, upon the timing and the level of market acceptance of the Series, as well as upon the ultimate cost to produce, distribute and promote it. The revenues derived from the distribution of the Series depend primarily on its acceptance by the public, which cannot be predicted and does not necessarily bear a direct correlation to the production costs incurred. The commercial success of the Series will also depend upon terms and conditions of its distribution, promotion and marketing and certain other factors. Accordingly, the Company’s revenues are, and will continue to be, extremely difficult to forecast.

# ***There is no guarantee revenues will remain consistent over time.***

It is likely that revenues generated from the Series will not remain consistent over time. Even if the Company is successful in creating, distributing and marketing the Series, revenues generated upon initial release of any seasons will likely decrease over time as subsequent seasons of the Series are released. Further, once production, distribution and marketing of the Series is complete, revenues from the Series are likely to decrease over time.

# ***The Series will be subject to the risks associated with the production and distribution of a television series.***

Production costs are currently just an estimate and may significantly increase over time depending on many unknown outside influences, or those that may be known as related to the specific costs of currently expected expenditures for items still not under contract at a fixed price. Additionally, Company’s funds will be used across multiple stages of the series production, including season one and season two.

# ***Force Majeure Events can materially impact our business.***

There are certain events, including but not limited to, (i) acts of God, floods, droughts, earthquakes, or other natural disasters, (ii) epidemics or pandemics, (iii) terrorist attacks, civil war, civil commotion or riots, war, threat of or preparation for war, armed conflict, imposition of sanctions, embargoes, (iv) interruption or failure of utility services, and so on (“Force Majeure Events”), that can have an impact on our business operations, supply chains, travel, commodity prices, consumer confidence and business forecasts. For example, it could complicate our ability to produce and distribute our Series. Implementing health and safety measures during production of the Series could add significant costs to our estimated production

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budgets and delay the release of the same. There may be other effects stemming from Force Majeure Events that are deleterious to our Company which we have not yet considered.

# ***The Company intends to distribute the Series on Angel Studios, Inc.***

The Company has a license agreement to distribute the Series through Angel Studios' streaming platform. Distribution channels and methods can also fall out of grace with users/viewers and we may not be able to adapt quickly enough to keep momentum for the adoption of viewers of our content.

# ***The Company will have to rely on the services of professionals and other key personnel who may be difficult to replace and the loss of any such persons could adversely affect the Company's business.***

If the Company is not able to retain the services of key personnel retained by management, there will be a material adverse effect on the Company. If any one of these individuals becomes incapacitated or otherwise becomes unavailable, a qualified successor would have to be engaged. The Company may elect to offer membership units in the Company to key production personnel (such as producers, writers, actors, stunt coordinators and unit production managers) as a means of obtaining the best possible crew at the lowest up-front cost. The Series' production and completion may be adversely affected if new personnel must be engaged, or if such personnel demand more favorable compensation. No assurance can be given that a qualified successor could be engaged. These professionals and key personnel also may be involved in other projects that may take them away from the production of the Series and cause delays, all of which may increase the cost of production of the Series and decrease the likelihood of being able to complete the Series, which would have an adverse effect on the Company's business and prospects.

# ***Most of our competitors, which include large and small studios and production companies, have significantly greater financial and marketing resources, as well as experience, than do we.***

We are a very small and unproven entity as compared to our competitors. We will compete with film studios, both large and small, production companies, independent producers and agencies. Most of the major U.S. studios are part of large diversified corporate groups with a variety of other operations, including television networks and cable channels, that can provide both the means of distributing their products and stable sources of earnings that may allow them better to offset fluctuations in the financial performance of their operations. The major studios have more resources with which to compete for ideas, storylines and scripts. This may have a material adverse effect on our business, results of operations and financial condition. In addition, established smaller studios, production companies and agencies have significantly greater financial and marketing resources than do we. Many have sophisticated websites and the ability to advertise in a wide variety of media. We will principally depend on the business contacts of our executive officers. There are no assurances that our approach will be successful.

# ***We will be required to raise additional capital to fully fund our business plan and expand our operations.***

Currently, we have not yet received a royalty for revenue-generating activities. The purpose of this offering is to raise up to $3,285,063 towards a total required production budget of $6.5M towards the production of the Series and Season Two. Part of this budget will be allocated to ongoing script and story development, with the balance allocated towards production. If the Company raises less than the maximum offering amount, it will either be required to seek alternative financing, which may not be available or may not be available on terms available to the company or investors, or the Company will be required to reduce its production and marketing budget.

Additional capital may not be available at such times or in amounts as needed by us. Even if capital is available, it might be available only on unfavorable terms. Any additional equity or convertible debt

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financing into which we enter could be dilutive to our then existing members. Any future debt financing into which we enter may impose covenants upon us that restrict our operations, including limitations on our ability to incur liens or additional debt, pay dividends, repurchase our equity, make certain investments and engage in certain merger, consolidation or asset sale transactions. Any debt financing or additional equity that we raise may contain terms that are not favorable to us or our members. If we raise additional funds through collaboration and licensing arrangements with third parties, it may be necessary to relinquish some rights to our scripts and manuscripts, or grant licenses on terms that are not favorable to us. If access to sufficient capital is not available as and when needed, our business will be materially impaired and we may be required to cease operations, curtail the acquisition, recycling or marketing of scripts and manuscripts, or we may be required to significantly reduce expenses, sell assets, seek a merger or joint venture partner, file for protection from creditors or liquidate all our assets.

*Substantial delays between the completion of this Offering and the production of the Series may cause the Company's expenses to be increased and it may take the Company longer to generate revenues.*

The Company cannot be certain when it will begin production of future seasons. Any actor playing a leading role, and other members of our production team will need to complete, delay or abandon other potential obligations before production of future seasons will begin. While the Company intends on beginning production of Season 2 as soon as April 2023 and after sufficient proceeds are raised, the Company has no way of predicting exactly when it will raise sufficient capital from the Offering to begin production of future seasons. Therefore, the Company has no way to predict the availability of its principal cast and creative staff.

*Budget overruns may adversely affect the Company's business.*

Actual production costs for the series may exceed their budget, sometimes significantly. Risks, such as labor disputes, death or disability of star performers, rapid high technology changes relating to special effects, or other aspects of production, such as shortages of necessary equipment, damage to film negatives, master tapes and recordings, or adverse weather conditions, may cause cost overruns and delay or frustrate completion of the Series. If any of the Series incurs substantial budget overruns, the Company may have to seek additional financing from outside sources to complete production. No assurance can be given as to the availability of such financing on terms acceptable to the company. In addition, if a production incurs substantial budget overruns, there can be no assurance that such costs will be recouped, which could have a significant adverse impact on the Company's business, results of operations or financial results.

*The Company's success depends on protecting its intellectual property.*

The Company's success will depend, in part, on its ability to protect its proprietary rights in the Series. The Company will rely primarily on a combination of copyright laws and other methods to protect its respective proprietary rights in the Series. However, there can be no assurance that such measures will protect the Company's proprietary information, or that its competitors will not develop screenplays for feature films otherwise similar to the Company's, or that the Company will be able to prevent competitors from developing a similar television series for production. The Company believes that its proprietary rights will not infringe on the proprietary rights of third parties. However, there can be no assurance that third parties will not assert infringement claims against the Company in the future with respect to the Series. Such assertion may require the Company to incur substantial legal fees and costs in order to protect its rights, or possibly enter into arrangements on terms unfavorable to it in order to settle such claims. To the extent that the Company fails to adequately protect its respective intellectual property rights in the Series, or if the financial burden of enforcing its rights becomes too cost-prohibitive, the Company may be unable to continue to implement its business strategy, which would have a material adverse-effect on the Company's business, prospects, financial condition, and results of operations.

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*The Company could potentially be found to have not complied with securities law in connection with this Offering related to “Testing the Waters.”*

Prior to filing this Form C, for the past offering in August 2022, the Company engaged in “testing the waters” permitted under Regulation Crowdfunding (17 CFR 227.206), which allows issuers to communicate with potential investors to determine whether there is interest in the offering. All communication sent is deemed to be an offer of securities for purposes of the antifraud provisions of federal securities laws. Some communications made during the testing the water campaign have been adjusted in this Form C to more accurately reflect our business plan and potential. Any investor who expressed interest prior to the date of this Offering should read this Form C thoroughly and rely only on the information provided herein and not on any statement made prior to the filing of the Form C. The communications sent to investors prior to the Offering are attached hereto.

*We may not generate sufficient cash flow to make distributions to you.*

There is no assurance that we will ever have income sufficient to cover our expenses and have sufficient cash flow to make distributions to you. Even if we make distributions, there can be no assurance concerning the timing or amounts of the distributions. You may be required to bear the economic risk of the investment for an indefinite period of time. Ultimately, each investor’s risk with respect to this offering includes the potential for a complete loss of their investment.

*The public and/or existing Wingfeather fanbase may not like our adaptation of the book.*

There is no assurance that the public and/or Wingfeather fan base will like or accept our TV series adaptation of the 4 Wingfeather books. It is impossible to judge in advance what the reaction of the public and/or existing Wingfeather fan base will be to the Series. To the extent that the Series receives unfavorable reviews from these individuals, its chances of success may be substantially diminished.

### **Risks Related to the Securities and the Offering**

*Investors will own non-voting Preferred Units and will have no ability to control or influence the business decisions of the Company.*

Investors in the offering will obtain non-voting Preferred Units. As a result, current management will continue to have control of the business decisions and operations of the Company. It is possible that management will not make successful management decisions in all cases.

Voting control is in the hands of a single entity, Shining Isle Productions. Subject to any fiduciary duties owed to owners or investors under Tennessee law, Shining Isle Productions may be able to exercise significant influence on matters requiring owner approval, including the election of Board of Managers, approval of significant company transactions, and will have unfettered control over the Company’s management and policies. You may have interests and views that are different from our management. The concentration of ownership could delay or prevent a change of control of the Company or otherwise discourage a potential acquirer from attempting to obtain control of the Company, which in turn could reduce the price potential investors are willing to pay for the Company. In addition, Shining Isle Productions could use its voting influence to maintain the Company’s existing management, delay or prevent changes in control of the Company, or support or reject other management and board proposals that are subject to owner approval.

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# ***Class B Preferred Investors may exercise a Put option that could negatively affect Class A Preferred Investors' interests.***

Pursuant to the Operating Agreement, Angel Acceleration Fund (the “Fund”), as the holder of the Class B Preferred Units, may elect to require the Company to purchase all of the Fund’s outstanding Class B Preferred Units upon certain events at a price per Class B Preferred Unit equal to the greater of (a) the original purchase price per Class B Preferred Unit and (b) the fair market value (referred to as a “Put Right”). If the Fund elects to exercise the Put Right and the Company does not have access to sufficient capital to pay the put price, the Company’s business will be materially impaired and it may be required to cease operations, or it may be required to significantly reduce expenses, sell assets, seek a merger or joint venture partner, file for protection from creditors or liquidate all its assets.

Even if capital is available, it may be on unfavorable terms, or the Company may be required to reduce its production and marketing budget. Furthermore, if the Fund elects to exercise the Put Right, there is no assurance the Company will ever have income sufficient to cover the put price, its expenses, and have sufficient cash flow to make distributions to the holders of the Class A Preferred Units.

# ***Investors may experience dilution or reduction in ownership percentages in the future if the Company raises additional units.***

The Company may, in the sole discretion of the Board of Managers, authorize and issue additional membership units to raise additional capital to fund subsequent seasons of the Series. Any such issuance would reduce the ownership percentage of investors in this Offering. If any issuances occur at the price per unit below the price paid by investors in this Offering, the ownership percentage of investors in this Offering may be diluted.

# ***The offering price of the Units may be arbitrarily determined.***

Since no public market exists for the Preferred Units, the offering price for the Preferred Units was not determined on an arm’s length basis and does not necessarily represent the fair market value of the Preferred Units. In determining the terms of the Offering, the Company gave consideration to the risks associated with its business plan, its assumptions regarding its future financial performance and other considerations it deemed relevant. However, the offering price of the Preferred Units may not bear any direct relationship to the foregoing considerations or any other generally accepted criteria of value and many of such criteria cannot be used in evaluating the offering price because the Company has no operating or financial history.

Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially start-ups, is difficult to assess and you may risk overpaying for your investment.

# ***There is no public market for the Preferred Units and such are subject to certain restrictions on transfer.***

Investors should regard the Preferred Units as an illiquid investment. No public market for the Preferred Units exists or is likely to develop in the near future. Any resale of the Preferred Units may require the transferor to register the transferred Preferred Units under applicable state securities laws, or find an exemption therefrom.

The Preferred Units may not be transferred by any purchaser of such securities during the 1-year period beginning when the securities were issued unless such securities are transferred:

(2) to an accredited investor;

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(3) as part of an offering registered with the U.S. Securities and Exchange Commission; or
(4) to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

*There is no guarantee of return on investment.*

There is no assurance that a purchaser will realize a return on its investment or that it will not lose its entire investment. For this reason, each investor should read the Form C and all Exhibits carefully and should consult with its own attorney and business advisor prior to making any investment decision.

## THE OFFERING

9. What is the purpose of this offering?

The purpose of this offering is to raise the funds to fund the creation of the second season of the Wingfeather Saga series, based on the best-selling book series.

10. How does the issuer intend to use the proceeds of this offering?

| Use of Funds: | If Target Offering Amount Sold: | If Maximum Offering Amount Sold: |
| --- | --- | --- |
| Portal Fees | $10,000 | $131,402.52 |
| Qualified Third-Party Fees | $10,000 | $30,000 |
| Production | $170,000 | $2,723,660.48 |
| Marketing | $50,000 | $250,000 |
| Business Administration | $10,000 | $150,000 |
| Totals: | $250,000 | $3,285,063 |

Stretch Goals

- Stretch Goal 1: $497,065 Episode 4
- Stretch Goal 2: $1,425,065 Episode 5
- Stretch Goal 3: $2,353,065 Episode 6
- Stretch Goal 4: $3,281,065 Episode 7

The above figures represent only estimated costs. This expected use of proceeds from this Offering represents our intentions based upon our current plans and business conditions. The amounts and timing of our actual expenditures may vary significantly depending on numerous factors. As a result, our management will have broad discretion over the allocation of the net proceeds from this Offering. We may find it necessary or advisable to use the net proceeds from this Offering for other purposes, and we will have broad discretion in the application of net proceeds from this Offering. In other

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words, we reserve the right to change the above use of proceeds if management believes it is in the best interests of the Company.

# 11. Testing the Waters Communications:

NA

(b.) How will the issuer complete the transaction and deliver securities to the investors?

If the offering reaches the target offering amount prior to the deadline, we may elect to do an initial closing of the offering and then continue to raise funds up to the maximum amount up to the deadline or until the maximum is raised. Upon closing, a notice will be sent to each investor indicating the amount of securities purchased. The preferred units will not be certificated. Investors may access their investments in their applicable VAS Portal, LLC user account.

# 12. How can an investor cancel an investment commitment?

**NOTE: Investors may cancel an investment commitment until 48 hours prior to the deadline identified in these offering materials.**

**The intermediary will notify investors when the target offering amount has been met.**

**If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five (5) business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment).**

**If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment.**

**If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor’s investment commitment will be canceled, and the committed funds will be returned.**

**You may cancel your investment with the above restrictions directly in your VAS Portal, LLC (Angel Funding) account by clicking on the cancel commitment button in your account profile under My Investments.**

## OWNERSHIP AND CAPITAL STRUCTURE

### The Offering

# 13. Describe the terms of the securities being offered:

The securities being sold are Class A Preferred Units (the “Preferred Units”) of Toothy Cow Productions, LLC, a Tennessee limited liability company. The Company is offering up to 2,190,042 of its Preferred Units in this Offering at a price of $1.50 per Preferred Unit. The Preferred Units will have a “preferred return” of 120% of the investor’s full investment before the holders of Common Units receive any profit payment.

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14. Do the securities offered have voting rights? ☐ Yes ☑

15. Are there any limitations on any voting or other rights identified above? ☑ Yes ☐

Explain: Pursuant to the Operating Agreement, the investors holding Preferred Units have limitations on their ability to transfer their interest and will not be able to vote on the decisions of the Company.

16. How may the terms of the securities being offered be modified?

The Board of Managers has been given the right to raise funds through equity crowdfunding. Any adjustments to this or any other offering may be made by the Board of Managers.

### **Restrictions on Transfer of the Securities Being Offered**

The securities being offered may not be transferred by any purchaser of such securities during the one-year period beginning when the securities were issued unless such securities are transferred:

- (1) to the issuer;
- (2) to an accredited investor;
- (3) as part of an offering registered with the U.S. Securities and Exchange Commission; or
- (4) to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

**NOTE: The term “accredited investor” means any person who comes within any of the categories set forth in Rule 501(a) of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.**

The term “member of the family of the purchaser or the equivalent” includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term “spousal equivalent” means a cohabitant occupying a relationship generally equivalent to that of a spouse.

### **Description of Issuer’s Securities**

17. What other securities or classes of securities of the issuer are outstanding? Describe the material terms of any other outstanding securities or classes of securities of the issuer.

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights | Other Rights |
| --- | --- | --- | --- | --- |
| Common Units | Unlimited | 18,304,582 | Yes |  |
| Class A Preferred Units | Unlimited | 6,947,749 | No | Preferred Return before Common Unit distributions. |

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| Class B Preferred Units | Unlimited | 666,667 | No, except to appoint and designate the Preferred Manager. | Preferred Return (which is shared on a pro rata basis with the Class A Preferred Units) before Common Unit distributions. The Class B Preferred Units are afforded certain rights, which are summarized below: 1. Access to Company’s facilities and personnel during normal business hours. 2. Certain quarterly and annual financial information. 3. Angel Acceleration Fund (“The Fund”) (as the holder of the Class B Preferred Units) and the Common Units have a right of first refusal if a Member desires to transfer their membership interests. 4. The Fund (as the holder of the Class B Preferred Units) has a preemptive right to purchase any “New Securities” (as defined in the Operating Agreement) proposed to be offered by the Company. 5. The Fund (as the holder of the Class B Preferred Units) may elect to have the Company repurchase its Class B Preferred Units upon certain trigger events. 6. The Fund (as the holder of the Class B Preferred Units) has the right to designate one individual (the “Preferred Manager”) to the Company’s Board of Managers. 7. The vote of the Preferred Manager, as designated by the Fund (as the holder of the Class B Preferred Units) is required for the Company to take certain actions. |
| --- | --- | --- | --- | --- |

18. How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of security identified above?

The securities could be diluted by future offerings. The holders of Preferred Units do not have voting rights.

19. Are there any differences not reflected above between the securities being offered and each other class of security of the issuer? ☐ Yes ☑

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20. How could the exercise of rights held by the principal shareholders identified in Question 6 above affect the purchasers of the securities being offered?

Because the investors in this offering do not control the day-to-day operations of the Company, the principal shareholders of the Company may make decisions that the investors do not approve of or that harm the interests of the investors.

21. How are the securities being offered being valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.

The price of the Preferred Units being offered in this Offering were determined based on an arms-length negotiation between the Company and the purchaser of the Company's Class B Preferred Units pursuant to its most recent 506(b) offering under Regulation D. The Company did not employ an investment banking firm or any other outside organization to make an independent valuation. As such, the offering price should not be considered indicative of the actual value of the securities offered pursuant to this Offering.

There are several ways to value a company, and none of them is perfect and all of them involve a certain amount of guesswork. The same method can produce a different valuation if used by a different person.

*Liquidation Value* - the amount for which the assets of the company can be sold, minus the liabilities owed. The value for most startups lies in their potential, as many early stage companies do not have many assets.

*Book Value* - this is based on an analysis of the company's financial statements, usually looking at the company's balance sheet as prepared by its accountants. However, the balance sheet only looks at costs (i.e., what was paid for the asset), and does not consider whether the asset has increased in value over time. In addition, some intangible assets, such as patents, trademarks or tradenames, are very valuable but are not usually represented at their market value on the balance sheet.

*Earnings Approach* - this is based on what the investor will pay (the present value) for what the investor expects to obtain in the future (the future return), taking into account inflation, the lost opportunity to participate in other investments, the risk of not receiving the return, and so on. However, predictions of the future are not certain and valuation of future returns is a best guess.

Different methods of valuation produce a different answer as to what your investment is worth. Future investors (including people seeking to acquire the Company) may value the Company differently. They may use a different valuation method, or different assumptions about the Company's business and its market. Different valuations may mean that the value assigned to your investment changes. It frequently happens that when a large institutional investor such as a venture capitalist or private equity firm makes an investment in a company, it values the company at a lower price than the initial investors did. If this happens, the value of the investment will go down.

22. What are the risks to purchasers of the securities relating to minority ownership in the issuer?

As a minority interest holder, the investors in this offering cannot control any day-to-day decisions of the Company that might affect the value of their interest. As an investor in the Preferred Units, you will not have any rights in regard to the actions of the Company, including additional issuances of securities, company repurchases of securities, a sale of the Company or its significant assets, or company transactions with related parties. Investors in this Offering will hold minority, non-voting interests.

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23. What are the risks to purchasers associated with corporation actions including:

- Additional issuances of securities;

If additional issuances are made, the investors in this Offering may become diluted.

- Issuer repurchases of securities;

The Company does not have the right to repurchase the securities unless the investor is attempting to transfer them.

- A sale of the issuer or of assets of the issuer; or

Because holders of Preferred Units do not have the right to vote, the Common Unit holders may vote to sell without the investor’s approval. The investors in this Offering have the right to receive a preferred return before the Common Unit holders receive any return.

- Transactions with related parties?

As an investor in the Preferred Units, you will not have any rights in regard to the actions of the Company, including company transactions with related parties.

24. Describe the material terms of any indebtedness of the issuer:

The Company does not have any debt currently outstanding.

25. What other exempt offerings has the issuer conducted within the past three years?

On 06/03/21, the Company completed a Regulation Crowdfunding offering in which it raised $4,997,423 toward the production of Season One.

On 05/05/22, the Company sold 500,000 Preferred Units to an investor pursuant to a 506(b) offering under Regulation D toward the pre-production of Season Two and other brand development.

On 08/31/22, the Company completed a Regulation Crowdfunding offering in which it raised $1,714,935 toward the pre-production of Season Two and other brand development.

On 02/01/23, the Company sold 666,667 Class B Preferred Units to an investor pursuant to a Rule 506(b) offering under Regulation D. Additionally, the Company agreed to sell 666,667 Class B Preferred Units and 1,333,333 Class B Preferred Units to an investor pursuant to Rule 506(b) of Regulation D, with closings anticipated to occur in or around April and September 2023, respectively. Funds to be used toward the production of Season Two and other brand development. The investor is an affiliate of Angel Studios, Inc.

26. Was or is the issuer of any entities controlled by or under common control with the issuer party to any transaction since the beginning of the issuer’s last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(6) of the Securities Act during the preceding 12-month period, including the amount the

22

issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:

(1) any director or officer of the issuer;
(2) any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting securities, calculated on the basis of voting power;
(3) if the issuer was incorporated or organized within the past three years, any promoter of the issuer; or
(4) any immediate family member of any of the foregoing persons.

☑ No to all of this.

☐ If yes, for each such transaction, disclose the following:

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history? ☑ Yes ☐ No

28. Describe the financial condition of the issuer, including, to the extent material, liquidity, capital resources and historical results of operations.

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included in this Offering. The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.

We are dependent on additional capital resources for our planned principal operations and are subject to significant risks and uncertainties, including failing to secure funding to operationalize our business or failing to profitably operate the business.

### Operations

*Year Ended December 31, 2021*

#### Expenses

The production of Season 1 is ongoing. The budget has been projected at $3,955,715. The final budget for Season 1 is projected to be $4,861,721.74.

Operating expenses were $1,904,539 in 2021.

#### Income Taxes

In March 2022, we elected to be taxed as a C-corporation, effective March 9, 2021. The IRS approved the election in April 2022.

### Liquidity and Capital Resources

*Year Ended December 31, 2021*

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In 2021, we issued 4,997,423 Preferred Units. The 2021 issuance provided the funds necessary towards production of Season 1. As of December 31, 2021, cash on hand was $3,268,842. Revenues from Season 1 of the series are expected to be used for operations and to advertise and market the series.

### **Capital Expenditures and Other Obligations**

As of December 31, 2021, $480,614 of capitalized production costs.
The Company does not have any debt currently outstanding.

### **Material Changes and Other Information**

The financial statements are an important part of this Form C and should be reviewed in their entirety. The Audited Financials for 2021 of the Company are attached hereto as Exhibit A.

As of September 30, 2022 Company had $1,977,118.93 cash assets on hand for the production of the series and the start of Season 2 pre-production. Operating expenses were $3,377,955.07 from January - September 2022.

Other than the above mentioned, we have not identified any known trends, uncertainties, demands, commitments or events involving our business that are reasonably likely to have a material effect on our revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause the reported financial information in this report to not be indicative of future operating results or financial condition.

29. Include the financial information specified below covering the two most recently completed fiscal years or the period(s) since inception, if shorter:

Please see the Audited Financials for 2021 attached hereto as Exhibit A.

30. With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated in the same form as described in Question 6 of this Question and Answer format, any promoter connected with the issuer in any capacity at the time of such sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2016:

(1) Has any such person been convicted, within 10 years (or five years, in the case of issuers, their predecessors and affiliated issuers) before the filing of this offering statement, of any felony or misdemeanor:

i. in connection with the purchase or sale of any security? ☐ Yes ☒ No
ii. involving the making of any false filing with the Commission? ☐ Yes ☒ No
iii. arising out of the conduct of the business of an underwriter, broker, dealer,

municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities?
☐ Yes ☒ No

(2) Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4A(b) of the

24

Securities Act that, at the time of filing of this offering statement, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:

i. in connection with the purchase or sale of any security? ☐ Yes ☒ No
ii. involving the making of any false filing with the Commission? ☐ Yes ☒ No
iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☒ No

(3) Is any such person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit Union Administration that:

i. at the time of the filing of this offering statement bars the person from:
(A) association with an entity regulated by such commission, authority, agency or officer? ☐ Yes ☒ No
(B) engaging in the business of securities, insurance or banking? ☐ Yes ☒ No
(C) engaging in savings association or credit union activities? ☐ Yes ☒ No
ii. constitutes a final order based on a violation of law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement? ☐ Yes ☒ No

(4) Is any such person subject to an order of the Commission entered pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:

i. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal? ☐ Yes ☒ No
ii. places limitations on the activities, functions or operations of such person? ☐ Yes ☒ No
iii. bars such person from being associated with any entity or from participating in the offering of any penny stock? ☐ Yes ☒ No

(5) Is any such person subject to any order of the Commission entered within five years before the filing of this offering statement that, at the time of the filing of this offering statement, orders the person to cease and desist from committing or causing a violation or future violation of:

i. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☒ No
ii. Section 5 of the Securities Act? ☐ Yes ☒ No

(6) Is any such person suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade? ☐ Yes ☒ No

25

(7) Has any such person filed (as a registrant or issuer), or was any such person or was any such person named as an underwriter in, any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued? ☐ Yes ☒ No

(8) Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4A(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

☐ Yes ☒ No

## OTHER MATERIAL INFORMATION

31. In addition to the information expressly required to be included in this Form, include:

(1) any other material information presented to investors; and
(2) such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

The Company is a subsidiary of Shining Isle Productions, LLC. The officers of the Company are employees, officers or owners of Shining Isle Productions, LLC.

Included in the offering are the following perks for investors:

- $100 tier:

"Investor-only updates and live streams"

- $350 tier:

"Name in the Credits of all Season 2 episodes"

- $1,000 tier:

"Early access to episodes"

- $5,000 tier:

"Limited-edition Season 2 poster"

- $10,000 tier:

"Invitation to Season 2 premiere"

Angel Studios has the exclusive rights to serve as Master Distributor of the series.

26

On August 30, 2021, the Company was approved for a grant from the State of Tennessee for up to $245,715 to off-set in-state Season 1 production expenditures. This grant has been approved, but the final number paid can change based on the approved in-state expenditures and guidance of the TN Entertainment Commission.

Company is an agreement with SAG-AFTRA to utilize their union actors in the production. SAG-AFTRA sets the terms for the minimum per episode and session fee paid per actor, union fees, and royalties. Company has a separate agreement with NPI Payroll to administer payments and as applicable, any royalties, to voice actors. All actors currently are on the SAG-AFTRA scale rate (base rate) for Season One. There is the possibility that for future seasons there will be increases to scale rate and/or actors rates.

On 02/01/2023, Company revised its Operating Agreement to include a new class of Units, Class B Preferred Units. Outstanding Preferred Shares were renamed Class A Preferred Units. The Operating Agreement is an important part of this Form C and should be reviewed in its entirety.

On 02/01/2023, Company issued 1,250,000 additional Common units to Shining Isle Productions, LLC for contribution of all right, title and interest in its Non-Photorealistic Rendering techniques that mixes 2D and 3D in a blended-media style.

On 02/01/2023, Company authorized additional Common Units for the employee incentive pool, from 2,500,000 to 3,500,000, to be used to engage and retain key employees.

On 02/01/2023, Company entered into a Consulting Services Agreement with Class B Unit investor, who will receive Common Unit grants pursuant to that consultant status.

## **ONGOING REPORTING**

32. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its website, no later than:

120 days after the end of each fiscal year covered by the report.

33. Once posted, the annual report may be found on the issuer's website at:

http://www.toothycowproductions.com

The issuer must continue to comply with the ongoing reporting requirements until:

(1) the issuer is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;
(2) The issuer has filed, since its most recent sale of securities pursuant to this part, at least one annual report pursuant to this section and has fewer than 300 holders of record;
(3) The issuer has filed, since its most recent sale of securities pursuant to this part, the annual reports required pursuant to this section for at least the three most recent years and has total assets that do not exceed $10,000,000;
(4) the issuer or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or
(5) the issuer liquidates or dissolves its business in accordance with state law.

27

**Attachment 2:** `AROperatingAgreement2.pdf`

# AMENDED AND RESTATED OPERATING AGREEMENT
OF
TOOTHY COW PRODUCTIONS, LLC

This Amended and Restated Operating Agreement (this “Agreement”) of Toothy Cow Productions, LLC (the “Company”), effective as of February 1, 2023 (the “Effective Date”), is entered into by and among the Company, those Members as set forth on the Members Schedule (as defined below), and all other Persons who become parties hereto as Members in accordance with the terms hereof.

## RECITALS

WHEREAS, the Company was formed under the laws of the State of Tennessee by the filing of Articles of Organization with the Secretary of State of the State of Tennessee on March 9, 2021.

WHEREAS, the Company entered into an Operating Agreement of the Company on March 9, 2021 (the “Original Agreement”).

WHEREAS, in connection with the Angel Investment (as defined below), the Members desire to amend and restate the Original Agreement in its entirety as set forth herein to, among other things: (a) create a new series of Preferred Units, to be designated “Class B Preferred Units”, (b) reclassify and designate the existing Preferred Units as “Class A Preferred Units”, (c) establish the rights, preferences, privileges, and restrictions of the Class B Preferred Units, and (d) make certain other changes as set forth herein.

WHEREAS, concurrently with the execution of this Agreement, Angel Acceleration Master Fund - A2 Blocker, a series of VCAL Blocker, LLC (“Angel Fund”) is acquiring Class B Preferred Units pursuant to the terms and conditions of that certain Unit Purchase Agreement, dated as of even date herewith (the “Purchase Agreement”) between Angel Fund and the Company. The transactions contemplated by the Purchase Agreement are referred to herein as the “Angel Investment”.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

### 1. DEFINITIONS

1.1. Scope. For purposes of this Agreement, unless the language or context clearly indicates that a different meaning is intended, capitalized terms have the meanings specified in this article.

1.2. Defined Terms.

1.2.1. “Act” means the Tennessee Revised Limited Liability Company Act and any successor statute, as amended from time to time.

1.2.2. “Affiliate” means any Person directly or indirectly controlling, controlled by, or under common control with another Person. “Control,” “controlled” and “controlling” means the power to direct or cause the direction of the management and policies of a Person and shall be deemed to exist if any Person directly or indirectly owns, controls, or holds the power to vote fifty percent (50%) or more of the voting securities of such other Person.

1.2.3. "Articles" means the Articles of Organization filed with the Secretary of State of the State of Tennessee to organize the Company as a limited liability company, including any amendments.

1.2.4. "Available Funds" means the Company's gross cash receipts from operations, less the sum of: (a) payments of principal, interest, charges, and fees pertaining to the Company's indebtedness; (b) expenditures incurred incident to the usual conduct of the Company's business; and (c) amounts reserved to meet the reasonable needs of the Company's business in the future as determined by the Manager in its sole discretion.

1.2.5. "Capital Account" of a Member means the capital account maintained for the Member in accordance with Section 3.9.

1.2.6. "Cause" means any of the following: (i) the future conviction of, or entering of a plea of guilty or nolo contendere to, a crime that constitutes a felony, or a misdemeanor or other similar crime involving moral turpitude, (ii) the continued breach of any obligations hereunder or under any other written agreement or covenant with the Company or any of its Affiliates after receipt of written notice and a 20-day opportunity to cure, (iii) the intentional or negligent breach of any material provision of any engagement agreement with the Company or any material misconduct of the respective Member, or (iv) or some other event, the occurrence of which reasonably justifies the immediate expulsion of that Member.

1.2.7. "Change of Control" means (i) the sale or exclusive license of all or substantially all of the assets of the Company, (ii) the merger by the Company with or into any other Person or (iii) the Company or the Members consummate a transaction that results in more than 50% of the Company's Units being owned by Persons who or which were not holders of Units immediately prior to such consummation.

1.2.8. "Class A Preferred Units" means the Units having the privileges, preference, duties, liabilities, obligations, and rights specified with respect to "Class A Preferred Units" in this Agreement, which have the same rights as those held by the Common Unit holders except that (a) the Class A Preferred Units do not carry a right to vote or participate in any meetings of the company, (b) the Class A Preferred Units only contain a right to information as required to be filed on an annual basis pursuant 17 CFR 227.202, (c) notwithstanding Article 6 of this Agreement, the Class A Preferred Units carry restrictions on transfer as identified in 17 CFR 227.501, as amended; and (d) the Class A Preferred Units include a right to preferred distributions as set forth in this Agreement.

1.2.9. "Class B Preferred Units" means the Units having the privileges, preference, duties, liabilities, obligations, and rights specified with respect to "Class B Preferred Units" in this Agreement.

1.2.10. "Code" means the Internal Revenue Code of 1986, as amended from time to time. All references herein to sections of the Code shall include any corresponding provision or provisions of succeeding law.

1.2.11. "Common Member" means a Member that holds Common Units.

1.2.12. "Common Requisite Members" means the holders of a majority of the Common Units held by the Common Members.

1.2.13. "Common Units" means Units with the rights of a Member as set out in this Agreement.

1.2.14. "Company" means Toothy Cow Productions, LLC, a Tennessee limited liability company.

1.2.15. "Control" means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

1.2.16. "Fair Market Value" means, as of any date, as to any Unit, the good faith determination by the Board of the fair value of each Unit as of the applicable reference date based upon the Company's results of operations and financial condition as reflected in its most recently available financial statements and other relevant factors.

1.2.17. "Loss" means, for any given tax year, the Company's loss for such tax year, as determined in accordance with accounting principles appropriate to the Company's method of accounting and consistently applied.

1.2.18. "Member" means an initial member of the Company and any Person who is subsequently admitted as an additional or substitute member of the Company pursuant to the terms of this Agreement.

1.2.19. "Membership Interest" or "Interest" means a Member's percentage interest in the Company, consisting of the Member's right to share in Profits, receive distributions, participate in the Company's governance and affairs, and approve the Company's acts. The Membership Interests of the Company shall be divided into Units. Changes in ownership of the Units after the date of this Agreement, including those necessitated by the admission and dissociation of Members, will be reflected in the Company's records. The allocation of the Units and the Membership Interests reflected in the Company's records from time to time is presumed to be correct for all purposes of this Agreement and the Act. Except as expressly provided otherwise herein, with respect to the interest of a Transferee, "Interest" or "Membership Interest" means a Transferee's percentage interest in distributions from the Company; provided that nothing in this sentence shall be interpreted to grant to a Transferee the right to vote on or otherwise participate in any matter as a Member hereunder other than the right to receive distributions as set forth in Section 4.3.

1.2.20. "New Securities" means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities. The term "New Securities" includes, without limitation, any new class of Units and any new Common Units, Class A Preferred Units, or Class B Preferred Units.

1.2.21. "Person" means any individual, association, cooperative, corporation, trust, partnership, joint venture, limited liability company, or other legal entity.

1.2.22. "Preferred Units" means the Units designated as either "Class A Preferred Units" or "Class B Preferred Units" of the Company, each with the privileges, preference, duties, liabilities, obligations, and rights specified herein.

1.2.23. "Profit" means, with respect to any given tax year, the Company's income for such tax year, as determined in accordance with accounting principles appropriate to the Company's method of accounting and consistently applied.
1.2.24. "Regulations" means proposed, temporary, or final regulations promulgated under the Code by the Department of the Treasury, as amended.
1.2.25. "Supermajority" means the affirmative vote of over sixty percent (60%) of the Common Units.
1.2.26. "Transfer" means, with respect to any Units, a sale, assignment, gift or any other disposition by a Member, whether voluntary, involuntary, or by operation of law.
1.2.27. "Transferee" means a Person who acquires any Units by Transfer from a Member or another Transferee and is not admitted as a Member in accordance with this Agreement. Notwithstanding anything herein to the contrary, a Transferee shall not have the rights of a Member, other than the right to receive distributions as set forth herein.
1.2.28. "Unit" means a portion of the Membership Interests of the Company, including any Common Units and any Preferred Units. The amount of Membership Interest represented by a Unit shall be equal to a fraction, the numerator of which is one (1) and the denominator of which is the number of all issued and outstanding Units of the Company. Additional Units may be issued pursuant to Section 6.5.

# 2. ORGANIZATION

2.1. Formation of the Company. The Company was organized as a Tennessee limited liability company pursuant to the Act by the filing of the Articles on March 9, 2021. This Agreement amends, restates, and supersedes the Original Agreement in its entirety. The rights, powers, duties, obligations and liabilities of the Members shall be determined pursuant to the Act and this Agreement. To the extent that the rights, powers, duties, obligations, and liabilities of any Member are different by reason of any provision of this Agreement than they would be under the Act in the absence of such provision, this Agreement shall, to the extent permitted by the Act, control.
2.2. Name of the Company. The name of the Company is Toothy Cow Productions, LLC, and all Company business shall be conducted in that name or such other name the Board may select from time to time and which is in compliance with applicable laws.
2.3. Registered Agent and Location of Records. The registered agent and registered office of the Company in the State of Tennessee shall be the registered agent and registered office set forth in the Articles or such other Person or location, as the case may be, as the Board may designate from time to time with the Secretary of State. The records of the Company required to be maintained by the Act shall be kept at the designated office identified in the Articles, or at such other designated office as the Board may designate from time to time, consistent with the Act.
2.4. Purposes of the Company. The Company is organized to create, promote, and distribute an animated television series (the "Wingfeather Series") based on the series of books known as The Wingfeather Saga and intellectual property, Unique Animation Technology (as defined in Section 6.11.2.3) licensed to the Company, including related products and services, and any and all business associated thereto.

2.5. Term of Existence. The Company commenced on the date its Articles were filed with the Secretary of State and shall continue in existence until the time fixed in the Articles, or such earlier time as may be determined in accordance with the terms of this Agreement.

### 3. CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS; AND UNITS

3.1. Capital Contributions. To date, the Members have made the capital contributions to the Company, in cash, services, or property, in the amounts recorded and set forth in the books and records of the Company.
3.2. Authorization of Preferred Units. The Company is hereby authorized to issue a class of Units designated as Preferred Units, which in turn is divided into two sub-series as follows: (a) Units designated as "Class A Preferred Units" and (b) Units designated as "Class B Preferred Units". Those certain investors who acquired Preferred Units of the Company prior to the date of this Agreement acknowledge that such Preferred Units are hereby reclassified and designated as "Class A Preferred Units," and such investors shall be deemed to own the Class A Preferred Units for all purposes. The Preferred Units issued and outstanding will be recorded and tracked on the Members Schedule. Except as set forth in this Agreement, all sub-series of Preferred Units shall have the same rights, preferences, powers, privileges and restrictions, qualifications and limitations.
3.3. Authorization of Common Units. The Company is hereby authorized to issue a class of Units designated as Common Units. The Common Units issued and outstanding will be recorded and tracked on the Members Schedule.
3.4. Authorization of Options Pool. The Company has authorized an option pool consisting of up to 3,500,000 of the Common Units of the Company, for the purchase of Common Units, to be issued by grant to employees and contractors of the Company. Any such options will be subject to vesting as enumerated in the grant agreement and tracked on the Members Schedule.
3.5. Allocation of Units. The Board shall maintain a schedule of all Members, their respective mailing addresses, and the amount and type, class, or series of Units held by them (the "Members Schedule"), and shall update the Members Schedule upon the issuance or transfer of any Units in accordance with this Agreement.
3.6. Subsequent Capital Contributions. No Member shall be obligated to make any future capital contributions to the Company, except as the Company and such Member may agree in writing.
3.7. Failure to Contribute Required Capital. If, after agreeing to make a capital contribution with the Company as allowed in Section 3.6, a Member fails to timely provide the capital contribution by the time agreed upon, the Company may take such action as it deems necessary, including instituting a court proceeding to obtain payment, canceling the delinquent Member's Units allocated to the Member for the capital contribution, or exercising any other right or remedy available at law or equity.
3.8. Return of Capital Contributions. No Member shall be entitled to withdraw any part of such Member's Capital Account or to receive any distribution from the Company, except as otherwise provided in this Agreement. No Member shall receive any interest, salary, or drawing with respect to such Member's Capital Account.

3.9. Capital Accounts of the Members. A separate Capital Account shall be maintained for each Member in accordance with the Code and the Regulations thereunder. Capital Accounts will be:

3.9.1. Increased by: (i) the amount of any money the Member contributes to the Company's capital; (ii) the fair market value of any property the Member contributes to the Company's capital, net of any liabilities the Company assumes or to which the property is subject; and (iii) the Member's share of Profits and any separately stated items of income or gain; and

3.9.2. Decreased by: (i) the amount of any money the Company distributes to the Member; (ii) the fair market value of any property the Company distributes to the Member, net of any liabilities the Member assumes or to which the property is subject; and (iii) the Member's share of Losses and any separately stated items of deduction or loss.

3.10. Revaluation of Capital Accounts Upon Occurrence of Certain Events. In accordance with the provisions of the Regulations, if money or property in other than a de minimis amount is contributed to the Company, or distributed by the Company to a Member, the Capital Accounts of the Members and carrying values of all the Company's property may be adjusted to reflect the fair market value of the company property on the date of adjustment, as set forth in the Regulations.

### 4. ALLOCATIONS AND DISTRIBUTIONS

4.1. Allocation of Profits and Losses. After giving effect to the special allocations contained in Section 4.2 and any others required to be made by the Code or the Regulations, Profits and Losses for each tax year shall be allocated to the Members in a manner such that the Capital Account of each Member, immediately after making such allocation is, as nearly as possible equal to the distributions that would be made to such Member pursuant to Section 4.3.

4.2. Special Allocations. Notwithstanding anything to the contrary contained herein, the following special allocations shall be made if the circumstances require.

4.2.1. Qualified Income Offset. Notwithstanding anything to the contrary contained herein, if a Member unexpectedly receives any adjustments, allocations, or distributions described in Section 1.704-1(b)(2)(ii)(d)(4), (5), or (6) of the Regulations or any amendment thereto, or receives an allocation of loss which produces a negative Capital Account for any Member while any other Member has a positive Capital Account, then items of Company income, including gross income, shall be specially allocated to such Member to the extent necessary to eliminate any Capital Account deficit. This article is intended to constitute a "qualified income offset" within the meaning of Section 1.704-1(b)(2)(ii)(d) of the Regulations.

4.2.2. Minimum Gain Chargeback. Notwithstanding anything to the contrary contained herein, if there is a net decrease in Company "minimum gain," as defined in Sections 1.704-2(b)(2) and 1.704-2(d) of the Regulations, during a taxable year, each Member shall be specially allocated, before any other allocation, items of income and gain for such taxable year (and, if necessary, subsequent years) in proportion to each Member's share of the net decrease in Company "minimum gain." This article is intended to comply with the "minimum gain chargeback" provisions of Section 1.704-(2)(f) of the Regulations.

4.2.3. Section 704(c) Allocation. Notwithstanding anything to the contrary contained herein, items of income, gain, loss, and deduction with respect to property contributed to the Company's capital will be allocated between the Members so as to take into account any variation

between book value and basis, to the extent and in the manner prescribed by Section 704(c) of the Code and related Regulations.

4.2.4. Member Nonrecourse Deductions. Items of the Company's loss, deductions, and expenditures described in Section 705(a)(2)(B) of the Code that are attributable to the Company's nonrecourse debt and are characterized as Member nonrecourse deductions under Section 1.704-2(i) of the Regulations will be allocated to the Members 'Capital Accounts in accordance with Section 1.704-2(i) of the Regulations.

4.2.5. Adjustments for Special Allocations. If the special allocations result in Capital Account balances that are different from the Capital Account balances the Members would have had if the special allocations were not required, the Company will allocate other items of income, gain, loss, and deduction in any manner it considers appropriate to offset the effects of the special allocations on the Members 'Capital Account balances. Any offsetting allocation required by this article is subject to and must be consistent with the special allocations.

4.3. Current Distributions of Available Funds. The Board shall have sole discretion regarding the amounts and timing of distributions of Available Funds to the Members, including to decide to forego payment of distributions in order to provide for the retention and establishment of reserves of, or payment to third parties of, such funds as it deems necessary with respect to the reasonable business needs of the Company (which needs may include the payment or the making of provision for the payment when due of the Company's obligations, including present and anticipated debts and obligations, capital needs and expenses, and reasonable reserves for contingencies). All distributions determined to be made by the Board shall be made in the following manner:

4.3.1. Prior to making any distributions to the Common Unit holders, the Company shall first make distributions to the Preferred Unit holders until they have received a cumulative return of one hundred twenty percent (120%) of their initial capital contribution.

4.3.2. Once the Preferred Unit holders have received a total of one hundred twenty percent (120%) of their initial capital contributions, then the Company shall distribute all further Profits in proportion to the Member's Membership Interest.

4.4. Substantial Economic Effect. The various provisions of this article are intended and will be construed to ensure that the allocations of the Company's income, gain, losses, deductions, and credits have substantial economic effect under the Regulations promulgated under Section 704(b) of the Code.

## 5. MEMBERS

5.1. Members. New Members may be admitted from time to time in connection with (a) an issuance of Units by the Company in accordance with the provisions of this Agreement, including but not limited to Section 7.6, and (b) a Transfer of Units in accordance with the provisions of this Agreement.

# 5.2. Manner of Acting Between Members.

# 5.2.1. Meetings.

5.2.1.1 Meeting Chairperson. All meetings of the Members shall be presided over by the chairperson of the meeting who shall be designated by Members holding a majority of the Units represented at the meeting. The chairperson of the meeting shall determine the order of business and the procedures to be followed at the meeting.

5.2.1.2 Special Meetings. A special meeting of the Members may be called at any time by any Manager or any Member(s) holding at least 25% of the issued and outstanding Common Units in the Company.

5.2.1.3 Notice of Meetings. Notice of any meeting of the Members shall be given by the Company no fewer than 3 days and no more than 60 days prior to the date of the meeting. Notices shall be delivered in the manner set forth in Section 12.6 and shall specify the purpose or purposes for which the meeting is called if it is a special meeting. The attendance of a Member at any meeting shall constitute a waiver of notice of such meeting, except where a Member attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened.

5.2.1.4 Quorum. Members whose aggregate Membership Interest exceeds 50% will constitute a quorum at a meeting of Members. No action may be taken at any meeting in the absence of a quorum.

5.2.1.5 Telephonic Meetings. The Members may participate in and act at any meeting of Members through the use of a conference telephone or other communications equipment by means of which all Persons participating in the meeting can hear each other. Participation in such meeting shall constitute attendance and presence in person at the meeting of the Person or Persons so participating.

5.2.1.6 Action by Members Without a Meeting. Except as expressly provided otherwise, any action required to be taken at a meeting of the Members or any other action which may be taken at a meeting of the Members, may be taken without a meeting if a consent in writing, setting forth the action so taken, is signed by Members having at least the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all Members were present and voting. Prompt notice of the taking of the action without a meeting by less than unanimous consent shall be given in writing to those Members who were entitled to vote but did not consent in writing.

# 5.2.2. Action by Members.

5.2.2.1 Voting Rights. Except as otherwise required by a non-waivable provision of the Act:

(a) Each Member shall be entitled to one vote per Common Unit on all matters upon which the Members have the right to vote under this Agreement;
(b) Other than to appoint and designate the Preferred Manager, subject to and in accordance with Section 7.2.1.2, the Class B Preferred Units shall not entitle the

holders thereof to vote on any matters required or permitted to be voted on by the members; and

(c) The Class A Preferred Units shall not entitle the holders thereof to vote on any matters required or permitted to be voted on by the members.

5.2.2.2 Required Vote. Except with respect to matters for which a greater minimum vote is required by the Act or this Agreement, the consent of Members holding more than 50% of the issued and outstanding Common Units of the Company shall constitute the action of the Members.

5.2.2.3 Voting by Proxy. Each Member entitled to vote at a meeting of Members or to express consent or dissent to action in writing without a meeting may authorize another Person or Persons to act for him or her by proxy. Such proxy shall be deposited at the Company's principal place of business not less than 48 hours before a meeting is held or action is taken, but no proxy shall be valid after eleven months from the date of its execution, unless otherwise provided in the proxy.

5.3. Resignation of a Member. A Member may resign from the Company as a Member by giving written notice to the Company and the other Members at least 60 days prior to the effective date of the resignation; however, except as expressly provided herein, a withdrawing Member is not entitled to a return of his or her capital contribution and acquires the status of a Transferee.

### 5.4. Information Rights of Members.

5.4.1. Angel Fund shall have access to the Company's facilities and personnel during normal business hours and with reasonable advance notice.

5.4.2. The Company will deliver to Angel Fund: (1) quarterly and annual financial statements and other information as determined by the Board, and (2) prior to the end of each fiscal year, an operating budget forecasting the Company's revenues, expenses, and cash position for the upcoming fiscal year.

5.5. Business Opportunities. Each Manager and Member and his or its respective affiliates shall be free to engage in any activity on their own or by the means of any entity, and each Manager's and Member's fiduciary duty of loyalty and the "corporate opportunity doctrine," as such doctrine has been described under general corporation law, is hereby eliminated to the maximum extent allowed by the Act. Without limiting the foregoing, no Manager or Member or his or its respective affiliates shall be required to refer opportunities to the Company, to account for any benefits from transactions in any way connected with the Company or its business nor are they under any obligation to refrain from, or disclose, dealings between the Company and such Manager or Member or his or its respective affiliates, other than as specifically set forth in this Agreement.

5.6. Fiduciary Duties. Each Manager and Member shall, in all events, account to the Company and to the Members for any benefit, and hold, as trustee for the Company and the Members, any profits derived by such Manager or Member or his or its respective officers, directors, employees, agents or other representatives, from any use by such Manager or Member of Company property, and such duty extends to any profits derived in the liquidation and winding up of the Company.

5.7. Expulsion of a Member. A Member may be expelled from the Company upon a majority vote of the Board and the other Members for Cause.

# 6. DISPOSITION AND CREATION OF MEMBERSHIP INTERESTS; PURCHASE OPTIONS

6.1. Transfer of Interests. Except as set forth in this Section 6.1 and permitted in Section 6.2 and 6.3:

6.1.1. no Member shall be entitled to Transfer all or any part of its Units except with the prior written consent of the Board,
6.1.2. Brock Starnes, as a holder of Common Units, shall not be entitled to Transfer more than ten percent (10%) of such Member's Common Units without the prior written consent of the Board (including the consent of the Preferred Manager until the occurrence of a Removal Event), and
6.1.3. Each of J. Chris Wall, Andrew Peterson, and Keith Lango, as members of Shining Isle Productions, LLC ("Shining Isle"), which is a holder of Common Units, shall not be entitled to Transfer more than ten percent (10%) of such individual's membership interests in Shining Isle without the prior written consent of the Board (including the consent of the Preferred Manager until the occurrence of a Removal Event),

in each case, which consent may be given or withheld, conditioned or delayed (as allowed by this Agreement or the Act) as the Board may determine in its sole and absolute discretion. Any attempted Transfer without such prior written consent shall be null and void ab initio, and the Transferee shall not become a Member. After the consummation of any permitted Transfer of all or any part of a Member's Units, the Units so Transferred shall continue to be subject to the terms and conditions of this Agreement, and any further Transfers shall be required to comply with the terms and provisions of this Agreement.

6.2. Permitted Transfers. The restrictions upon Transfer specified in Section 6.1, and the right of first refusal as provided for in Section 6.3, shall not apply to any Transfer of all or any part of a Member's Units (a) to one or more revocable trusts of which the Member is a trustee (or co-trustee with his or her spouse) established for the benefit of that Member and/or his or her spouse and/or any of their descendants, so long as (i) the Member, as a trustee, at all times has Control (including voting, administrative and management control) over the trust and the assets of the trust, (ii) the Member, as a trustee, is permitted under the operative trust instrument to bind the trust to this Agreement and (iii) the Member is a lifetime beneficiary of the trust, (b) to a corporation, partnership, limited liability company or other entity Controlled by that Member, or (c) with respect to Angel Fund, a transfer to any Person; provided, however, that any such Person acquiring Class B Preferred Units from Angel Fund shall not have any right to vote or participate in the management of the business, property and affairs of the Company, and shall be deemed to be an assignee and economic interest holder only with respect to the Transferred Class B Preferred Units (in each case, unless otherwise determined by the Board). Any such Transfer may be by gift, devise, intestate succession, sale, by operation of law, upon termination of trust or other voluntary or involuntary conveyance.

6.3. Right of First Refusal. Before a Member may Transfer a Membership Interest to any Person, the transferring Member or his or her legal representative shall give written notice (the "Transfer Notice") to the Company, the Common Members and Angel Fund of such Member's

intention to do so, as well as the identity of the proposed Transferee and the terms applicable to such proposed Transfer. For thirty (30) days following receipt of the Transfer Notice, the Company shall have the right to purchase all or any part of the transferring Member's Interest on the same terms and conditions set forth in the Transfer Notice. If the Company fails to exercise its right (as described above), in whole or in part, then for thirty (30) days following the expiration of such thirty-day period, each nontransferring Common Member and Angel Fund (the '**ROFR Eligible Members**') shall have the right to purchase (at the same price as applied to the Company) a proportionate share (based upon such ROFR Eligible Member's interest in the capital of the Company that is not subject to the proposed Transfer) of the transferring Member's Interest. If any ROFR Eligible Member waives, in whole or in part, its or their right to purchase, the unexercised right, or portion thereof, to which such waiver applies shall inure proportionately (based upon each such ROFR Eligible Member's interest in the capital of the Company which is not subject to the proposed Transfer, exclusive of the interest of any such Member waiving the option) to other ROFR Eligible Members, and such ROFR Eligible Members shall have an additional ten (10) days to purchase such portions of the unpurchased Membership Interests. Any portion of the Membership Interest that is covered by the Transfer Notice that is not purchased by the Company or the ROFR Eligible Members pursuant to the foregoing provisions of this Section 6.3 may be transferred by the transferring Member to the proposed Transferee described in the Transfer Notice on terms no more favorable to the Transferee than the terms described in the Transfer Notice. Such Transfer must be completed within ninety (90) days of the expiration of the final right of first refusal purchase period described above. Otherwise, the rights of first refusal described in this Section 6.3 shall again apply to the proposed Transfer. Except as expressly provided herein, neither the failure by the Company or any Member to purchase the interest of a transferring Member, nor the express or implied approval of such Transfer by the Company or any Member shall be construed as approval or consent to the Transferee of such Interest becoming a Member of the Company. The right of first refusal set forth in this Section 6.3 may not be assigned or transferred; provided that if the Company has elected to purchase the entire Membership Interest as provided for in a Transfer Notice, the Company shall have the right to assign its right to purchase such Membership Interests to one or more third parties (including existing Members) who agree in writing to perform the Company's related obligations.

6.4. **Rights of Mere Assignees.** If a Transferee is not admitted as a Member, the Transferee shall be entitled to receive the allocations and distributions attributable to the transferred Interest, but the Transferee shall not be entitled to inspect the Company's books and records, receive an accounting of the Company's financial affairs, or otherwise take part in the Company's business or exercise the rights of a Member under this Agreement or the Act. For purposes of any vote requiring the approval or disapproval of Members holding a particular percentage of the Membership Interests, any Interest held by a Transferee shall be deemed not to be a Membership Interest.

# 6.5. **Creating New or Additional Units or Membership Interests; Right of First Offer.**

6.5.1. Subject to Section 7.6, additional Persons may be admitted to the Company as Members and New Securities may be issued to those Persons and to existing Members upon the consent of Board and on such terms and conditions as the Board may determine, including the execution of a joinder agreement to this Agreement, and the Board may designate any Units issued after the date of this Agreement as 'profits interest units' within the meaning of the Regulations. Upon the issuance of additional Units, the Membership Interests of the existing members of the Company shall be decreased pro rata in accordance with their pre-issuance Membership Interests. The provisions of this Section shall not apply to Transfers of Membership Interests.

6.5.2. If the Company proposes to offer or sell any New Securities, the Company shall first offer such New Securities to the Angel Fund. The Company shall give notice (the “Offer Notice”) to the Angel Fund, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities. By notification to the Company within thirty (30) days after the Offer Notice is given, the Angel Fund may elect to purchase or otherwise acquire the New Securities as follows:

6.5.2.1. If the Company proposes to offer or sell any New Securities prior to June 2024, other than those offered pursuant to Section 1 of this Agreement, the Angel Fund may elect to purchase or otherwise acquire up to 3,243,243 Class B Preferred Units, at a purchase price of up to $1.85 per unit, with an aggregate purchase price of $6,000,000. The Angel Fund shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among itself, its Affiliates, and any other Person, whether or not such Affiliate or Person is already a member of the Company.

6.5.2.2. If the Company proposes to offer or sell any New Securities after June 2024, the Angel Fund may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such New Securities which equals the proportion that the Units then held by the Angel Fund bears to the total Units of the Company. The Angel Fund shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among itself and its Affiliates. If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired in the manner described in this Section 6.5.2.2, the Company may, during the ninety (90) day period following the expiration of the thirty (30) day exercise period above, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Angel Fund in accordance with this Section 6.5.2.6.5.1.2.

6.6. General Repurchase Rights. With respect to a Member (the “Affected Member”) that is an individual, upon (i) the death or disability of such Affected Member, or (ii) the event that, despite the general prohibition on Transfers contained in this Article 6, the Affected Member’s Units are found by a court or other authority to be transferred by operation of law to a third party (e.g., as a result of the divorce or bankruptcy of a Member) (each of items (i) through (iii) are referred to herein as a “Trigger Event” and collectively as the “Trigger Events”), the Company shall have the option to purchase all Units then held by such Affected Member and its Affiliates and transferees, including, without limitation, such person’s personal representative, trustee or other legal representative, in either case for their Fair Market Value. The Company shall exercise its option to purchase applicable Units pursuant to this Section by delivering written notice thereof within one-hundred twenty (120) days of becoming aware of the applicable Trigger Event. If the Company fails to exercise its right (as described above), in whole or in part, then for thirty (30) days following the expiration of such one hundred twenty-day period, the Common Members and Angel Fund who are not Affected Members (the “Eligible Members”) shall have the right to purchase a proportionate share (based upon such Member’s interest in the capital of the Company excluding the Units of the Affected Member) of the Affected Member’s Units. If any Eligible Member waives, in whole or in part, its or their right to purchase, the unexercised right, or portion thereof, to which such waiver applies shall inure proportionately to other Eligible Members, as the case may be, and such shall have an additional ten (10) days to purchase such portions of the

unpurchased Units. If the Company or the Eligible Members, as applicable, exercises its option pursuant to this Section, unless otherwise agreed by the Company, the Eligible Members and the seller, the purchase and sale of the applicable Units shall occur within thirty (30) days of the date the Company delivers written notice of its election to purchase such Units, and the Affected Member shall execute and deliver such documents and instruments as are reasonably requested by the Company to evidence the transfer of the Units, which shall be conveyed to the Company free and clear of all liens, claims and encumbrances. The purchase price for the Units described in this Section shall be payable forty percent (40%) at the closing of the purchase and sale of the Units, and the delivery of an unsecured promissory note for the remaining balance of the purchase price requiring equal quarterly payments over the following five (5) years following the closing and bearing interest at the rate of four percent (4%) per annum.

# 6.7. Repurchase on Expulsion or Dissociation.

6.7.1. Expulsion or Dissociation Not for Cause. In the event that any Member is expelled or dissociates from the Company for any reason other than for Cause, whether by the Company or by such Member for any reason or no reason, the Company shall have the right, exercisable upon written notice from the Company to such Member within ninety (90) days of the date of such expulsion or dissociation, to purchase all, but not less than all, of the Units of such Member for their Fair Market Value. If the Company fails to exercise its right (as described above), in whole or in part, then for thirty (30) days following the expiration of such ninety-day period, the Eligible Members, as applicable, shall have the right to purchase a proportionate share (based upon such Member's interest in the capital of the Company excluding the Units of the expelled or dissociated Member) of the expelled or dissociated Member's Units. If any Eligible Member waives, in whole or in part, its or their right to purchase, the unexercised right, or portion thereof, to which such waiver applies shall inure proportionately to other non-expelled or non-dissociated Eligible Member, and such non-expelled or non-dissociated Eligible Members shall have an additional ten (10) days to purchase such portions of the unpurchased Units. If the Company or the other Eligible Members exercise its or their option pursuant to this subsection, unless otherwise agreed by the Company and such Member, the purchase and sale of the applicable Units shall occur within thirty (30) days of the date the Company or the Eligible Members deliver written notice of its election to purchase such Units, and the Member shall execute and deliver such documents and instruments as are reasonably requested by the Company to evidence the transfer of the Units, which shall be conveyed to the Company free and clear of all liens, claims and encumbrances. The purchase price for the Units described in this subsection shall be payable forty percent (40%) at the closing of the purchase and sale of the Units, and the delivery of an unsecured promissory note for the remaining balance of the purchase price requiring equal quarterly payments over the following five (5) years following the closing and bearing interest at the rate of four percent (4%) per annum.

6.7.2. Expulsion for Cause or Material Malfeasance. In the event that any Member is expelled or dissociated from the Company for Cause, the Company shall have the right, exercisable upon written notice from the Company to such Member within ninety (90) days of the date of such expulsion, to purchase all, but not less than all, of the Units of such Member for Fair Market Value. If the Company fails to exercise its right (as described above), in whole or in part, then for thirty (30) days following the expiration of such ninety-day period, the Eligible Members shall have the right to purchase a proportionate share (based upon such Eligible Member's interest in the capital of the Company excluding the Units of the expelled Member) of the expelled Member's Units. If any Eligible Member waives, in whole or in part, its or their right to purchase, the unexercised right, or portion thereof, to which such waiver applies shall inure proportionately to other non-expelled Eligible Members, and such non-expelled Eligible Members shall have an additional ten (10) days to purchase such portions of the unpurchased Units. If the Company or the other Eligible

Members exercises its or their option pursuant to this subsection, unless otherwise agreed by the Company and such Member, the purchase and sale of the applicable Units shall occur within thirty (30) days of the date the Company or the Eligible Members deliver written notice of its election to purchase such Units, and the Member shall execute and deliver such documents and instruments as are reasonably requested by the Company to evidence the transfer of the Units, which shall be conveyed to the Company free and clear of all liens, claims and encumbrances. The purchase price for the Units described in this subsection shall be payable forty percent (40%) at the closing of the purchase and sale of the Units, and the delivery of an unsecured promissory note for the remaining balance of the purchase price requiring equal quarterly payments over the following five (5) years following the closing and bearing interest at the rate of four percent (4%) per annum.

### 6.8. Drag-Along Rights.

6.8.1. In the event that (a) the Board (subject to Section 7.6), and (b) the Common Requisite Members, approves a Change of Control in accordance with this Agreement, specifying that this Section shall apply to such transaction, then each Member hereby agrees:

6.8.1.1. if such Change of Control requires Member approval, with respect to all Units that such Member owns or over which such Member otherwise exercises voting power, to vote (A) all such Units in favor of, and adopt, such Change of Control (together with any related amendment to the Company's governance documents required in order to implement such Change of Control), and (B) in opposition to any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Change of Control;

6.8.1.2. if such Change of Control is to be effected by sale of the Units to a third party, to sell the same proportion of Units beneficially held by such Member as is being sold by all other Members and, except as permitted in this Section below, on the same terms and conditions as holders of the same class or series of Units are so selling;

6.8.1.3. to execute and deliver all related documentation and take such other action in support of the Change of Control as shall reasonably be requested by the Company in order to carry out the terms and provisions of this Section, including, without limitation, executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, indemnity agreement, escrow agreement, exchange agreement, consent, waiver, governmental filing, certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances) and any similar or related documents;

6.8.1.4. not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Units owned by such Member or its Affiliate in a voting trust or subject any Units to any arrangement or agreement with respect to the voting of such Units, unless specifically requested to do so by the acquirer in connection with the Change of Control;

6.8.1.5. not to assert or exercise any dissenters' rights or rights of appraisal under applicable law at any time with respect to such Change of Control; and

6.8.1.6. if the consideration to be paid in exchange for the Units in any Change of Control includes any securities and due receipt thereof by any Member would require under applicable law (A) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities, or (B) the provision to any Member of any information other than such information as a prudent issuer would generally furnish in an offering made solely to 'accredited investors' as defined in Regulation D, as promulgated under the Securities Act of 1933,

as amended, the Company may cause to be paid to any such Member in lieu thereof, against surrender of the Units which would have otherwise been sold by such Member, an amount in cash equal to the fair value (as determined in good faith by the Company) of the securities which such Member would otherwise receive as of the date of the issuance of such securities in exchange for such Member's Units.

6.8.2. Notwithstanding the foregoing, no Member will be required to comply in connection with any proposed Change of Control unless:

6.8.2.1. any representations and warranties to be made by such Member in connection with such proposed Change of Control are limited to representations and warranties related to authority, ownership and the ability to convey title to such Member's Units, including, without limitation, representations and warranties that (A) the Member holds all right, title and interest in and to the Units such Member purports to hold, free and clear of all liens and encumbrances, (B) the obligations of the Member in connection with the proposed Change of Control have been duly authorized, if applicable, (C) the documents to be entered into by the Member have been duly executed by the Member and delivered to the acquirer and are enforceable against the Member in accordance with their respective terms, and (D) neither the execution and delivery of documents to be entered into in connection with such proposed Change of Control, nor the performance of the Member's obligations thereunder, will cause a breach or violation of the terms of any agreement, law or judgment, order or decree of any court or governmental agency;

6.8.2.2. the Member shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with such proposed Change of Control, other than the Company (except to the extent that funds may be paid in proportion to the amount of consideration to be received by such Member out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any Member of any of identical representations, warranties and covenants provided by all Members);

6.8.2.3. the liability for indemnification, if any, of such Member in such proposed Change of Control and for the inaccuracy of any representations and warranties made by the Company in connection with such proposed Change of Control, is several and not joint with any other Person (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any Member of any of identical representations, warranties and covenants provided by all Members), and is pro rata in proportion to the amount of consideration paid to such Member in connection with such proposed Change of Control (in accordance with the provisions of the Company's governance documents);

6.8.2.4. the Member's liability shall be limited to such Member's applicable share (determined based on the respective proceeds payable to each Member in connection with such proposed Change of Control in accordance with the provisions of the Company's governance documents) of a negotiated aggregate indemnification amount that applies equally to all Members but that in no event exceeds the amount of consideration otherwise payable to such Member in connection with such proposed Change of Control, except with respect to claims related to fraud, intentional misrepresentation or willful misconduct by such Member, the liability for which need not be limited as to such Member;

6.8.2.5. upon the consummation of such proposed Change of Control, (A) each Member will receive the same form of consideration for their Units of such class or series as is received by other Members in respect of their Units of such same class or series; and

6.8.2.6. subject to the foregoing subsection 6.2.6.5, requiring the same form of consideration to be available to the Members, if any Members are given an option as to the form and amount of consideration to be received as a result of such proposed Change of Control, all Members will be given the same option.

6.8.3. Each Member hereby constitutes and appoints the Managers with full power of substitution, as the proxies of the party with respect to the matters set forth in this Section, and hereby authorizes each of them to represent and to vote, if and only if the party (i) fails to vote or (ii) attempts to vote (whether by proxy, in person or by written consent), in a manner which is inconsistent with the terms of this Agreement, all of such Member's Units in accordance with this Section. The proxy granted pursuant to the immediately preceding sentence is given in consideration of the agreements and covenants of the Company and the Members in connection with this Agreement and, as such, is coupled with an interest and shall be irrevocable unless and until this Agreement terminates. Each Member hereby revokes any and all previous proxies with respect to the Units and shall not hereafter, unless and until this Agreement terminates, purport to grant any other proxy or power of attorney with respect to any of the Units, deposit any of the Units into a voting trust or enter into any agreement (other than this Agreement), arrangement or understanding with any person, directly or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of the Units, in each case, with respect to any of the matters set forth herein.

6.9. Changes in Ownership of Members that are Not Natural Persons. Other than as provided in Section 6.1 or Section 6.2, with regards to any Member that is an entity, upon the occurrence of any event that results in the Transfer, whether voluntary or involuntary, of any equity interest in such entity to any Persons, such entity shall provide written notice to the Company with respect to such Transfer and the Company and the other Members shall have an option to purchase some or all of the transferring Member's Interest as provided for in Section 6.3.

6.10. Redeeming Membership Interests. Subject to Section 7.6, outstanding Units may be redeemed by the Company from time to time on such terms and subject to such conditions as the Board and the Member holding the applicable Membership Interest deem appropriate under the circumstances at such time.

### 6.11. Put Right.

6.11.1. Put of the Class B Preferred Units. Within a period of sixty (60) days following the occurrence of a Put Event (as defined below), upon written notice (the "Put Notice") to the Company, Angel Fund may elect to require the Company to purchase, out of funds lawfully available therefor, all (but not less than all) of the outstanding Class B Preferred Units (the "Put Right").

6.11.2. Put Event. A "Put Event" is the occurrence of any of the following:

6.11.2.1. the Company's failure to make distributions pursuant to Section 4.3 in amounts sufficient to result in Angel Fund receiving a cumulative return of one hundred twenty percent (120%) of its initial capital contribution following the completion and commercial distribution of twenty-six (26) episodes of the Wingfeather Series through streaming or theatrical or other licenses or sub-licenses by December 31, 2027;

6.11.2.2. Any Transfer that results in the removal of J. Chris Wall as a Manager of the Company; and

6.11.2.3. As it pertains to the development and production of the Wingfeather Series, the Wingfeather Series (x) fails to continue TV-quality production with Y7 to teen ratings (or like ratings), like accomplished in the short film (2017) and Season One Part One (December 2022); (y) fails to employ Non-Photorealistic Rendering techniques (or techniques of a similar quality) that mixes 2D and 3D in a blended-media style (the “Unique Animation Technology”), or (z) fails to be based on the best-selling 4-book fantasy series by Andrew Peterson.

6.11.3. Put Price. Any exercise of the Put Right shall be at a price per Class B Preferred Unit (the “Put Price”) equal to the greater of (a) the original purchase price per Class B Preferred Unit and (b) the Fair Market Value.

### 6.11.4. Payment of Put Price.

6.11.4.1. If the funds of the Company legally available for repurchase of the Class B Preferred Units are legally available upon Angel Fund’s exercise of the Put Right, then the Put Price shall be paid in full within 120 days of Angel Fund’s exercise of its Put Right hereunder.

6.11.4.2. If the funds of the Company legally available for repurchase of the Class B Preferred Units are insufficient for the repurchase as provided for in Section 6.11.4.1, then Put Price shall be paid by delivery of a promissory note. The promissory note (“Note”) shall be payable in thirty-six (36) equal monthly installments, with simple interest accruing at 2% per month. The Note shall provide that the maker of the Note shall have the right to prepay all or any part of the principal balance on the Note without penalty or premium and that any sums paid in any period in excess of the regular installment for that period shall be applied against installments thereafter falling due, in the inverse order of their maturity or against all of the remaining installments equally, at the option of the holder of the Note. The Note shall also provide that in case of default in the payment of any installment when due, the entire principal balance then remaining unpaid shall become immediately due and payable at the option of the holder, and shall provide for the payment by the maker of reasonable attorneys’ fees to the holder in the event suit is commenced because of any default. Upon receipt of an executed Note, all rights of Angel Fund shall cease with respect to the Class B Preferred Units, Angel Fund shall have no right to receive any future distributions, and shall be deemed to have ceased to be a Member and shall have relinquished any and all rights with respect to the Class B Preferred Units or portion thereof to be purchased by the Company, other than the right to receive the Put Price as provided for in this Section.

6.11.4.3. For the avoidance of doubt, each Member acknowledges and agrees that the payment of the Put Price hereunder shall not be deemed a distribution of Available Funds pursuant to Section 4.3, and no Member holding Class A Units shall be entitled to, nor claim any entitlement to, any distribution of Available Funds in the event of a Put Event.

6.11.5. Put or Otherwise Acquired Units. Any Class B Preferred Units which are purchased or otherwise acquired by the Company shall be automatically and immediately cancelled and shall not be reissued, sold or transferred.

### 7. MANAGEMENT OF THE COMPANY

7.1. Establishment and Authority of the Board. A board of managers of the Company (the “Board”) is hereby established and shall be comprised of natural Persons (each such Person, a “Manager”) who shall be appointed in accordance with the provisions of Section 7.2. The business and affairs of the Company shall be managed, operated, and controlled by or under the direction of the Board, and the Board shall have, and is hereby granted, the full and complete power, authority,

and discretion for, on behalf of, and in the name of the Company, to take such actions as it may in its sole discretion deem necessary or advisable to carry out any and all of the objectives and purposes of the Company, to exercise any rights and powers granted to the Company under this Agreement, and to exercise all power and authority vested in managers under the Act, in each case subject only to the terms of this Agreement.

# 7.2. Board Composition.

7.2.1. The Company and the Members shall take such actions as may be required to ensure that the number of managers constituting the Board is at all times three (3). The Board shall be comprised as follows:

7.2.1.1. Two (2) individuals designated by the Common Requisite Members (the "Common Managers"), who shall initially be J. Chris Wall and Andrew Peterson; and

7.2.1.2. The holder(s) of a majority of all Class B Preferred Units held by Angel Fund shall be entitled to designate one (1) individual to the Board to serve as a Manager (the "Preferred Manager"), who shall initially be [Ajay Madhok]. Notwithstanding the foregoing, in the event (x) Angel Fund fails to consummate the Second Closing (as defined in the Purchase Agreement) of no less than $1,000,000 on or before March 31, 2023 as provided for in the Purchase Agreement, or (y) Angel Fund fails to own at least fifty percent (50%) of the Class B Preferred Units issued to Angel Fund (each, a "Removal Event"), then in either such event, the Preferred Manager may be removed as a member of the Board by the Common Managers at any time after either one or both of the Removal Events by sending written notice of the removal of the Preferred Manager to the Company that sets forth the effective date of the removal of the Preferred Manager.

# 7.3. Removal; Resignation.

7.3.1. The Members entitled to designate a Manager pursuant to Section 7.2.1 may remove such Manager at any time with or without cause, effective upon written notice to the other Members.

7.3.2. Except upon a Removal Event as provided for in Section 7.2.1.2, in the event that a vacancy is created on the Board at any time due to the death, disability, retirement, resignation, or removal of a Manager, the Members that were initially entitled to designate such Manager pursuant to Section 7.2.1 shall have the exclusive right to designate an individual to fill such vacancy and the Company and each Member hereby agrees to take such actions as may be required to ensure the election or appointment of any such designee to fill such vacancy on the Board.

7.3.3. A Manager may resign at any time from the Board by delivering such Manager's written resignation to the Board.

# 7.4. Meetings.

7.4.1. The Board shall meet at such time and at such place as the Board may designate. Meetings of the Board may be held either in person or by means of telephone or video conference or other communications device that permits all Managers participating in the meeting to hear each other, at the offices of the Company, or such other place (either within or outside the State of Tennessee) as may be determined from time to time by the Board. Written notice of each regular meeting of the Board shall be given to each Manager at least three (3) days prior to each such meeting.

7.4.2. Special meetings of the Board shall be held on the call of any two (2) Managers upon at least five (5) days' prior written notice.

# 7.5. **Quorum; Action by Written Consent.**

7.5.1. Except as otherwise provided for in this Agreement, a majority of the Managers serving on the Board present in person or by proxy shall constitute a quorum for the transaction of business of the Board. Any Manager may participate in a meeting of the Board by means of telephone or video conference or other communications device that permits all Managers participating in the meeting to hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting.

7.5.2. Each Manager shall have one vote on all matters submitted to the Board. Except as specifically provided otherwise in this Agreement, with respect to any matter before the Board, the affirmative act of a majority of the Managers in attendance at any meeting of the Board at which a quorum is present shall be the act of the Board.

7.5.3. Notwithstanding the provisions of Section 7.4 and Section 7.5, any action required or permitted to be taken by the Board may be taken without a meeting if a written consent of a majority of the Managers shall approve such action. Any such consent shall have the same force and effect as a vote at a meeting of the Board where a quorum was present and may be stated as such in any document or instrument.

7.6. **Key Matters.** Notwithstanding anything to the contrary contained in this Agreement, until the occurrence of a Removal Event, the Company hereby covenants and agrees that it shall not, without approval of the Board, which approval must include the approval of the Preferred Manager:

7.6.1. Adversely change the rights of the Units of the Company;

7.6.2. Issue any New Securities to any Common Members existing as of the date of this Agreement;

7.6.3. Redeem or repurchase any Units (other than pursuant to employee or consultant agreements);

7.6.4. Decrease the number of Managers constituting the Board;

7.6.5. Liquidate, dissolve, or authorize any Change of Control of the Company;

7.6.6. Hire, fire, or materially increase the gross compensation of any executive officer in amounts inconsistent with past practice or business profitability;

7.6.7. Change the principal business of the Company;

7.6.8. Authorize any budget increases of more than two hundred fifty thousand dollars ($250,000) or approve any capital expenditures of more than two hundred fifty thousand dollars ($250,000) that are not already included in the Company's Production Budget, as attached to the Purchase Agreement between the Company and Angel Fund;

7.6.9. Materially amend the terms of any existing licensing any sub-licensing agreements (including agreements relating to any future film, series or other productions relating to the Wingfeather Series or associated intellectual property); or
7.6.10. Approve any delays in the production of the Wingfeather Series of more than ninety (90) days (reduced to thirty (30) days during principal photography); provided, however, that for the avoidance of doubt, neither the Preferred Manager's nor Angel Fund's prior approval or consent shall be required with respect to the content of the Wingfeather Series.

Notwithstanding anything to the contrary, effective upon the occurrence of a Removal Event, without further action, all rights specifically granted to the Preferred Manager in this Agreement shall be deemed stricken from this Agreement and this Agreement shall be interpreted as if such provisions were not contained therein.

7.7. Compensation of Managers. No Manager shall receive compensation for his or her management and supervision of the Company's business, unless a reasonable amount of compensation is agreed to by the majority consent of the disinterested Managers.
7.8. Managers as Fiduciaries. Each Manager shall exercise all powers and perform all duties in good faith, and shall act in all matters for the best interest of the Company, using reasonable inquiry, diligence, and prudence.
7.8.1. Exculpation. A Manager will not be liable to the Company or any Member for an act or omission done in good faith to promote the Company's best interests, unless the act or omission constitutes gross negligence, intentional misconduct, or a knowing violation of law.
7.8.2. Justifiable Reliance. A Manager may rely on the Company's records maintained in good faith and on information, opinions, reports, or statements received from any Person pertaining to matters that the Manager reasonably believes to be within the Person's expertise or competence.
7.8.3. Self-Dealing. A Manager may enter into a business transaction with the Company if the terms of the transaction are no less favorable to the Company than those of a similar transaction with an independent third party. Approval or ratification by the Members having no interest in the transaction constitutes conclusive evidence that the terms satisfy the foregoing condition.

# 7.9. Officers.

7.9.1. Appointment. The Board may appoint officers from time to time to carry on the day-to-day business and affairs of the Company and to conduct such other business as is directed by the Board.
7.9.2. Term. Officers shall be appointed for terms as designated by the Board.
7.9.3. Authority of Officers. The day-to-day business and affairs of the Company shall be managed by the Company's officers under the direction of the Board. As directed by the Board, the officers shall have the authority, power and discretion to make decisions affecting the day-to-day business and affairs of the Company, and to do the things that the officers deem necessary or appropriate to accomplish the business objectives of the Company as directed by the Board, except as otherwise (i) provided in this Agreement, (ii) specifically required by the non-waivable

provisions of the Act, or (iii) directed by the Board. Notwithstanding anything to the contrary in this Agreement, the following actions shall require the approval or consent of the Board:

7.9.3.1. change the business purpose of the Company;

7.9.3.2. take any action which would make it impossible to carry on the ordinary business or accomplish the purposes of the Company, except as otherwise provided in this Agreement;

7.9.3.3. amend or terminate any agreement or arrangement that was required to be approved by the consent of the Board at the time such agreement or arrangement was entered into;

7.9.3.4. initiate any lawsuit or other judicial proceeding or arbitration in the name of the Company;

7.9.3.5. authorize or approve the merger, consolidation or other combination of the Company with or into another entity;

7.9.3.6. enter into any agreement for the sale of all or substantial all of the assets of the business of the Company;

7.9.3.7. increase, modify, or decrease Officer compensation; or

7.9.3.8. take actions which, pursuant to this Agreement, specifically require action by, or the consent of, the Board, including without limitation each action described in Section 7.6.

### 8. INDEMNIFICATION

The Company shall indemnify each Member, Manager or officer for all expenses, losses, liabilities, and damages that such Person actually and reasonably incurs in connection with (a) the defense or settlement of any action arising out of or relating to the conduct of the Company's activities, as long as such Person acted in good faith and in a manner which he or she reasonably believed to be in the best interest of the Company, and, in the case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was illegal; or (b) the protection of the Company's property. However, the Company shall not indemnify any Person in any action in which such Person is adjudged to be liable for breach of a fiduciary duty owed to the Company or the Members under the Act or this Agreement or for liabilities which arise from such Person's gross negligence or willful misconduct.

### 9. BOOKS, RECORDS, REPORTS, AND BANK ACCOUNTS

9.1. **Maintenance of Books and Records.** The Company shall keep books and records of accounts at its designated office set forth in the Articles. In addition, the Company shall maintain the following at its designated office: (a) a current list in alphabetical order of the full name and last known business address of each Member; (b) a copy of the stamped Articles and all amendments thereto, together with executed copies of any powers of attorney pursuant to which any document has been executed; (c) copies of the Company's federal, state, and local income tax returns and reports and financial statements, if any, for the three most recent years; (d) copies of this Agreement and any amendments thereto; and (e) unless contained in this Agreement, the Articles, or in any amendments thereto, a writing setting out: (i) the amount of cash, a description and statement of the agreed value of the other property or services contributed by each Member and which each Member has agreed to contribute; (ii) the items as to which or events on the happening of which any additional contributions agreed to be made by each Member are to be

made; (iii) any right of a Member to receive, or of the Members to make, distributions which include a return of all or any part of the Member's contribution; and (iv) any events upon the happening of which the Company is to be dissolved and its affairs wound up. Records kept pursuant to this paragraph are subject to inspection and copying at the reasonable request, and at the expense, of any Member during ordinary business hours.

9.2. Schedules K-1. On or before the 90th day following the end of each fiscal year of the Company's existence, the Company shall cause each Member to be furnished with a federal (and where applicable state) income tax reporting Schedule K-1 or its equivalent.

9.3. Tax Year and Accounting Method. The Company's tax and fiscal years shall be the calendar year. The Company shall use the cash method of accounting, unless otherwise determined by the Board.

9.4. Tax Indemnification. Each Member hereby agrees to indemnify and hold harmless the Company and the other Members from and against any liability with respect to taxes, interest or penalties which may be asserted by reason of the Company's failure to deduct and withhold tax on amounts distributable or allocable to such Member. The provisions of this Section 9.4 shall survive the termination, dissolution, liquidation and winding up of the Company and the withdrawal of such Member from the Company or transfer of its Units. The Company may pursue and enforce all rights and remedies it may have against each Member under this Section 9.4.

### 9.5. Partnership Representative.

9.5.1. Appointment. The Members shall designate a Member to be the "Partnership Representative" of the Company pursuant to Section 6223(a) of the Code. The initial Partnership Representative shall be Benton Crane.

9.5.2. Removal. The Partnership Representative may be removed by the Members at any time with or without cause.

9.5.3. Eligibility. A Member is eligible to serve as the Partnership Representative only if the Member (or, if a revocable trust is a Member, the trustor of such trust) is then serving as a Manager, or no Member is then serving as a Manager.

9.5.4. Notice to Members. The Partnership Representative will inform the Members of all administrative and judicial proceedings pertaining to the determination of the Company's tax items and will provide the Members with copies of all notices received from the Internal Revenue Service regarding the commencement of a Company-level audit or a proposed adjustment of any of the Company's tax items.

9.5.5. Reimbursement. The Company will reimburse the Partnership Representative for reasonable expenses properly incurred while acting within the scope of the Partnership Representative's authority.

9.5.6. Tax Examinations and Audits. The Partnership Representative is authorized to represent the Company in connection with all examinations of the affairs of the Company by any taxing authority, including any resulting administrative and judicial proceedings, and to expend funds of the Company for professional services and costs associated therewith. Each Member agrees to cooperate with the Partnership Representative and to do or refrain from doing any or all things reasonably requested by the Partnership Representative with respect to the conduct of

examinations by taxing authorities and any resulting proceedings. Each Member agrees that any action taken by the Partnership Representative in connection with audits of the Company shall be binding upon such Members and that such Member shall not independently act with respect to tax audits or tax litigation affecting the Company. The Partnership Representative shall have sole discretion to determine whether the Company (either on its own behalf or on behalf of the Members) will contest or continue to contest any tax deficiencies assessed or proposed to be assessed by any taxing authority. The Partnership Representative may extend the statute of limitations for assessment of tax deficiencies against the Members attributable to any adjustment of any tax item.

9.5.7. BBA Elections and Procedures. In the event of an audit of the Company that is subject to the partnership audit procedures enacted under Section 1101 (the "BBA Procedures") of the Bipartisan Budget Act of 2015 ("BBA"), the Partnership Representative, in its sole discretion, shall have the right to make any and all elections and to take any actions that are available to be made or taken by the Partnership Representative or the Company under the BBA Procedures (including any election under Section 6226 of the Code as amended by the BBA). If an election under Section 6226(a) (as amended by the BBA) of the Code is made, the Company shall furnish to each Member for the year under audit a statement of the Member's share of any adjustment set forth in the notice of final partnership adjustment, and each Member shall take such adjustment into account as required under Section 6226(b) (as amended by the BBA) of the Code.

9.5.8. Tax Returns and Tax Deficiencies. Each Member agrees that such Member shall not treat any Company item inconsistently on such Member's federal, state, foreign or other income tax return with the treatment of the item on the Company's return. Any deficiency for taxes imposed on any Member (including penalties, additions to tax or interest imposed with respect to such taxes and any tax deficiency imposed pursuant to Section 6226 of the Code as amended by the BBA) will be paid by such Member and if required to be paid (and actually paid) by the Company, will be recoverable from such Member. To the extent that the Partnership Representative does not make an election under Section 6221(b) or Section 6226 (each as amended by the BBA) of the Code, the Company shall use commercially reasonable efforts to (i) make any modifications available under Section 6225(c)(3), (4), and (5) of the Code, as amended by the BBA, and (ii) if requested by a Member, provide to such Member information allowing such Member to file an amended federal income tax return, as described in Section 6225(c)(2) of the Code as amended by the BBA, to the extent such amended return and payment of any related federal income taxes would reduce any taxes payable by the Company.

9.5.9. Tax Status Election. Notwithstanding the foregoing Article 9, the Board shall have the authority to make tax elections as they deem in the best interest of the Company, to elect to be taxed as a corporation, in which case, Members will not receive a K-1 as outlined above, or any other election.

# 10. DISSOLUTION, LIQUIDATION AND TERMINATION

10.1. Events of Dissolution. Subject to Section 7.6, the Company shall be dissolved and shall commence winding up its affairs upon the first to occur of the following: (a) the time fixed in the Articles as the expiration of the term of the Company; (b) the consent of all of the Common Members in writing; (c) any event which makes it unlawful or impossible to carry on the Company's business; or (d) at such time as there is no longer at least one Member of the Company.

10.2. Exclusivity of Events. Unless specifically referred to in Section 10.1, no event, including an event of dissolution prescribed by the Act, will result in the Company's dissolution.

10.3. **Winding Up.** Upon dissolution, the affairs of the Company shall be wound up, as required by the Act, in the following manner:

10.3.1. **Appointment of Liquidator.** Upon the Company's dissolution, the Board will appoint a liquidator, who may but need not be a Member. The liquidator will wind up and liquidate the Company in an orderly, prudent, and expeditious manner in accordance with the following provisions of this article.

10.3.2. **Final Accounting.** The liquidator will make proper accountings beginning with the date on which the event of dissolution occurred to the date on which the Company is finally and completely liquidated.

10.3.3. **Duties and Authority of Liquidator.** The liquidator will make adequate provision for the discharge of all of the Company's debts, obligations, and liabilities (including liabilities to Members who are creditors). The liquidator may sell, encumber, or retain for distribution in kind any of the Company's assets. Any gain or loss recognized on the sale of assets will be allocated to the Members' Capital Accounts in accordance with the provisions of Section 4.1. With respect to any asset the liquidator determines to retain for distribution in kind, the liquidator will allocate to the Members' Capital Accounts the amount of gain or loss that would have been recognized had the asset been sold at its fair market value.

10.3.4. **Final Distribution.** The liquidator will distribute any assets remaining after the discharge or accommodation of the Company's debts, obligations, and liabilities to the Members pursuant to the order of priority set forth in Section 4.3 of this Agreement and in proportion to their Membership Interest held among Members of same class of Membership. The liquidator will distribute any assets distributable in kind to the Members in undivided interests as tenants in common. A Member whose Capital Account is negative will have no liability to the Company, the Company's creditors, or any other Member with respect to the negative balance.

10.3.5. **Required Filings.** The liquidator will file with the Division such statements, certificates, and other instruments, and take such other actions, as are reasonably necessary or appropriate to effectuate and confirm the cessation of the Company's existence.

## 11. INVESTMENT REPRESENTATIONS

11.1. **Representations and Warranties.** Each Member represents and warrants to the Company and the other Members that:

11.1.1. If the Member is an individual, the Member is at least the age of majority in the state of the Member's domicile.

11.1.2. The Membership Interest acquired by such Member will be acquired for investment purposes only, for his own account, and not with a view to resale, or offer for sale, or for sale in connection with the distribution or transfer thereof. Such Membership Interest is not being purchased for subdivision or fractionalization thereof; and such Member has no contract, undertaking, agreement, arrangement, or plans with any person or entity to sell, hypothecate, pledge, donate, or otherwise transfer to any such person or entity all or any part of his Interest.

11.1.3. The Member's present financial condition is such that the Member is under no present or contemplated future need to dispose of any portion of such Member's Interest to satisfy any existing or contemplated undertaking, need, or indebtedness.

11.2. **Acknowledgment of Certain Facts.** Each Member acknowledges his awareness and understanding of the following:

11.2.1. The purchase of the Membership Interest is a speculative investment that involves a high degree of risk of loss of the Member's entire investment.

11.2.2. The Member has both the knowledge and experience in financial matters sufficient to evaluate the purchase of the Interest and is able to bear the economic risk of the purchase.

11.2.3. No federal or state agency has made any finding or determination as to the fairness for public investment, nor any recommendation or endorsement of, an investment in Membership Interest.

11.2.4. There are restrictions on the transferability on each Membership Interest; there will be a limited market for the individual Membership Interests; and, accordingly, it may not be possible for the Member to liquidate readily, or at all, the Member's investment in the Company in case of an emergency or otherwise.

11.2.5. The Membership Interests have not been registered under the Securities Act of 1933 (the "Securities Act") or applicable state securities laws. It is the intent of the Company to operate its business so as not to require any such registration. This may limit significantly the transferability of such Interests.

11.2.6. The Member's Membership Interest has been acquired pursuant to an investment representation and shall not be sold, pledged, hypothecated, donated, or otherwise transferred, whether or not for consideration, except in compliance with the terms of this Agreement.

11.2.7. The Company does not file, and does not in the foreseeable future contemplate filing, periodic reports in accordance with the provisions of Section 13 or 15(d) of the Securities Exchange Act of 1934, and the Company has not agreed to register any of its securities for distribution in accordance with the provisions of the Securities Act or to take any actions respecting the obtaining of an exemption from registration for such securities or any transaction with respect thereto.

11.3. **Tax Matters.** The Company makes no representations as to the tax consequences to any Member as a result of the Member's purchase of a Membership Interest, or any other benefits available by virtue of the business, operations, or financial results of the Company. It is not intended that the Company be a tax shelter and it is uncertain that there will be any material tax benefits available to the Members by virtue of the business, operations, or financial results of the Company. The Company has been organized as a limited liability company under the laws of the State of Tennessee and, accordingly, it is intended that the Company be treated for federal and Tennessee state income tax purposes as a partnership.

11.4. **Acknowledgment of Access to Records.** Each Member acknowledges that such Member has been furnished and has reviewed the Articles and this Agreement of the Company and all amendments, if any, to those documents. Each Member further acknowledges that all instruments, documents, records, books, and financial information pertaining to this investment have been made available for inspection by such Member and its professional advisors and that the books and records of the Company will be available upon reasonable notice for inspection by such Member during reasonable business hours at the Company's principal place of business or as provided on its website.

# 12. GENERAL PROVISIONS

12.1. Entire Agreement; Amendments. This Agreement embodies the entire understanding between the Members concerning the Company and their relationship as Members and supersedes all prior negotiations, understandings, or agreements. Except as provided in Section 12.2, below, this Agreement may be amended or modified from time to time only by a written instrument adopted, executed, and agreed to by consent of Members holding a Supermajority of the issued and outstanding Common Units of the Company. Upon proper approval of an amendment to this Agreement, the Board is hereby authorized and instructed to execute such amendment.
12.2. Required Amendments. The Members and Managers will execute and file any amendment to the Articles required by the Act. If any such amendment results in inconsistencies between the Articles and this Agreement, this Agreement will be considered to have been amended in the manner necessary to eliminate the inconsistencies.
12.3. Power of Attorney. Each Member appoints each Manager, with full power of substitution, as the Member's attorney-in-fact, to act in the Member's name and to execute and file or amend (a) all certificates, applications, reports, and other instruments necessary to qualify or maintain the Company as a limited liability company in the states and foreign countries where the Company conducts its activities, (b) all instruments that effect or confirm changes or modifications of the Company or its status, including, without limitation, amendments to the Articles, and (c) all instruments of transfer necessary to transfer the Member's Membership Interest on the books and records of the Company or to effect the Company's dissolution and termination. The power of attorney granted by this article is irrevocable, coupled with an interest, will survive any incapacity of the Member, and shall be binding upon the Member's successors and assigns.
12.4. Nominees. Title to the Company's assets may be held in the name of the Company or any nominee (including any Member or Manager so acting), as the Company determines. The Company's agreement with any nominee may contain provisions indemnifying the nominee for costs or damages incurred as a result of the nominee's service to the Company.
12.5. Additional Instruments. Each Member will execute and deliver any document or statement necessary to give effect to the terms of this Agreement or to comply with any law, rule, or regulation governing the Company's formation and activities.
12.6. Form and Timing of Notice. All notices and demands required or permitted under this Agreement shall be in writing, as follows: (a) by actual delivery of the notice into the hands of the party entitled to receive it; (b) by mailing such notice by first class or registered or certified mail, in which case the notice shall be deemed to be given three days after the date of its mailing; (c) by Federal Express or any other overnight carrier, in which case the notice shall be deemed to be given the day after it is sent, or (d) by email to the email address of the Member as last provided to the Company, in which case the notice shall be deemed to be given on the day it is sent if delivered during the business day and on the next business day if it is delivered after the end of the business day. All notices which concern this Agreement shall be addressed to the address of each Member as provided on the cap table of the Company or to such other address as may be provided by a Member to the Company and the other Members pursuant to this Section 12.6.
12.7. Waiver of Rights. Except as specifically provided otherwise in this Agreement, no right under this Agreement may be waived except by an instrument in writing signed by the Person sought to be charged with the waiver.

12.8. Computation of Time. In computing any period of time under this Agreement, the day of the act or event from which the specified period begins to run is not included. The last day of the period is included, unless it is a Saturday, Sunday, or legal holiday, in which case the period will run until the end of the next day that is not a Saturday, Sunday, or legal holiday.
12.9. Severability. If any provision of this Agreement or the application of such provision to any Person or circumstance shall be held invalid, the remainder of the Agreement, or the application of such provision to Persons or circumstances other than those as to which it is held invalid, shall not be affected.
12.10. Parties and Successors Bound. This Agreement shall be binding upon the Members and their respective successors, assigns, heirs, devisees, legal representatives, executors and administrators.
12.11. Applicable Law. The laws of the State of Tennessee shall govern this Agreement, excluding any conflict of laws rules.
12.12. Rights of Creditors and Third Parties Under this Agreement. This Agreement is entered into between the Members for the exclusive benefit of the Company, the Managers, the Members, and their successors and assignees. This Agreement is expressly not intended for the benefit of any creditor of the Company, the Managers, the Members, or any other Person. Except and only to the extent provided by applicable statute, no such creditor or third party shall have any rights under this Agreement. None of the terms, covenants, obligations, or rights contained in this Agreement is or shall be deemed to be for the benefit of any Person other than the Company, the Managers, the Members, and their respective successor and assigns, and no such third person shall under any circumstances have any right to compel any actions or payments by the Managers or Members.
12.13. Mediation; Attorneys Fees. The parties will endeavor in good faith to resolve all disputes arising under or related to this Agreement by mediation according to the then prevailing rules and procedures of the American Arbitration Association. All fees and costs (including reasonable attorneys' fees) incurred pursuant to the resolution of any dispute to which this article applies shall be allocated to the losing party.
12.14. Waiver of Rights to Partition. Each Member irrevocably waives any right that he or she may have to maintain any action for partition with respect to property contributed to or acquired by the Company.
12.15. Headings and Captions. The headings in this Agreement are inserted for convenience and identification only and are in no way intended to describe, interpret, define, or limit the scope, extent, or intent of this Agreement or any provision.
12.16. Pronouns. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular, or plural, as the identity of the Person or context may require.
12.17. Designation of Successor upon Death of a Member. A Member who is an individual may designate in a separate written instrument, duly signed and acknowledged before a notary public, the Person or Persons to whom all or any part of his or her Membership Interest is to be transferred (subject to Article 6) at death. A copy of such instrument shall be delivered to the Company's designated office to be kept with the records required to be kept by the Company in Article 9 of this Agreement; however, the failure to deliver a copy of the instrument to the Company

shall not invalidate an otherwise valid designation. Any designation made pursuant to this article shall be revocable at any time by the Member who made it unless otherwise provided in the instrument. A subsequent designation shall be deemed to revoke a prior, inconsistent one.

12.18. **Disclosure and Waiver of Conflicts.** In connection with the preparation of this Agreement, the Members acknowledge and agree that: (a) the attorney that prepared this Agreement (“**Attorney**”) acted as legal counsel to the Company; (b) the Members have been advised by the Attorney that the interests of the Members are opposed to each other and are opposed to the interests of the Company and, accordingly, the Attorney’s representation of the Company may not be in the best interests of the Members; and (c) each of the Members has been advised by the Attorney to retain separate legal counsel. Notwithstanding the foregoing, the Members (a) desire the Attorney to represent the Company; (b) acknowledge that they have been advised to retain separate counsel and, other than Angel Fund, have waived their right to do so; and (c) jointly and severally forever waive any claim that the Attorney’s representation of the Company constitutes a conflict of interest.

12.19. **Counterparts.** This Agreement may be executed in counterparts, by original or facsimile signature, each of which will be considered an original.

[Signatures on Following Page]

IN WITNESS WHEREOF, the Members have executed this Agreement as of the date and year first set forth above.

TOOTHY COW PRODUCTIONS, LLC

By:

Name: James Chris Wall
Its: Manager

By:

Name: Andrew Peterson
Its: Manager

**Attachment 3:** `Audited_Financials_2.pdf`

Right Answers, Right Here.

# TANNER

Accountants & Advisors

TOOTHY COW PRODUCTIONS, LLC

Financial Statements

As of December 31, 2021 and For the Period from Inception (March 9, 2021)
through December 31, 2021

Together with Independent Auditors' Report

![img-0.jpeg](img-0.jpeg)

## Independent Auditors' Report

### To the Members of Toothy Cow Productions, LLC

#### Opinion

We have audited the accompanying financial statements of Toothy Cow Productions, LLC (the Company), which comprise the balance sheet as of December 31, 2021, and the related statements of operations, members’ equity, and cash flows for the period from inception (March 9, 2021) through December 31, 2021, and the related notes to financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Toothy Cow Productions, LLC as of December 31, 2021, and the results of its operations and its cash flows for the period from inception (March 9, 2021) through December 31, 2021 in accordance with accounting principles generally accepted in the United States of America.

#### Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the *Auditors’ Responsibilities for the Audit of the Financial Statements* section of our report. We are required to be independent of Toothy Cow Productions, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

#### Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

#### Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

36 S. State St., Suite 600, Salt Lake City, UT 84111-1400

In performing an audit in accordance with generally accepted auditing standards, we:

- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

July 29, 2022

36 S. State St., Suite 600, Salt Lake City, UT 84111-1400

# **Balance Sheet**

As of December 31,

**2021**

**Assets**

Current assets:

Cash and cash equivalents

$3,268,842

Other assets

3,618

Total assets

$3,272,460

**Liabilities and Members' Equity**

Current liabilities:

Accounts payable

$44,511

Accrued expenses

40,728

Total current liabilities

85,239

Commitments and contingencies

Members' equity

3,187,221

Total liabilities and members' equity

$3,272,460

See accompanying notes to financial statements.

1

## *Statement of Operations*

|  | For the period from Inception (March 9, 2021) through December |
| --- | --- |
| Operating expenses: |  |
| General and administrative | $1,904,539 |
| Operating loss | 1,904,539 |
| Loss before income taxes | 1,904,539 |
| Income tax provision | 9,624 |
| Net loss | $1,914,163 |

See accompanying notes to financial statements.

2

## Statement of Members' Equity

*For the Period from March 9, 2021 through December 31, 2021*

|  | Preferred |  | Common |  | Accumulated Deficit | Total Members' Equity |
| --- | --- | --- | --- | --- | --- | --- |
|  | Units | Amount | Units | Amount |  |  |
| Balance at Inception (March 9, 2021) | - | $ - | - | $ - | $ - | $ - |
| Issuance of common units | - | - | 15,000,000 | - | - | - |
| Issuance of preferred units, net of issuance costs of $253,189 | 4,997,423 | 4,744,234 | - | - | - | 4,744,234 |
| Issuance of common units in exchange for services | - | - | 357,150 | 357,150 | - | 357,150 |
| Net loss | - | - | - | - | (1,914,163) | (1,914,163) |
| Balance at December 31, 2021 | 4,997,423 | $4,744,234 | 15,357,150 | $357,150 | $(1,914,163) | $3,187,221 |

See accompanying notes to financial statements.

3

## Statement of Cash Flows

|  | For the period from Inception (March 9, 2021) through December 31, 2021 |
| --- | --- |
| Cash flows from operating activities: |  |
| Net loss | $(1,914,163) |
| Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: |  |
| Issuance of common units in exchange for services | 357,150 |
| Change in operating assets and liabilities |  |
| Other assets | (3,618) |
| Accounts payable and accrued liabilities | 85,239 |
| Net cash and cash equivalents used in operating activities | (1,475,392) |
| Cash flows from financing activities: |  |
| Issuance of preferred units, net of issuance costs | 4,744,234 |
| Net change in cash and cash equivalents | 3,268,842 |
| Cash and cash equivalents at beginning of period | - |
| Cash and cash equivalents at end of period | $3,268,842 |

See accompanying notes to financial statements.

4

# Notes to Financial Statements

### **1. Description of Organization and Summary of Significant Accounting Policies**

#### ***Organization***

Toothy Cow Productions, LLC (the Company) was incorporated on March 9, 2021 as a Tennessee corporation. The Company is a production company created for the purpose of developing, producing, and distributing a TV series called The WingFeather Saga.

#### ***Use of Estimates***

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Key management estimates include impairment of long-lived asset and valuation allowances for net deferred income tax assets.

#### ***Concentrations of Credit Risk***

The Company maintains its cash and cash equivalents in bank deposit accounts which, at times, exceed federally insured limits. To date, the Company has not experienced a loss or lack of access to its invested cash and cash equivalents; however, no assurance can be provided that access to the Company's invested cash and cash equivalents will not be impacted by adverse conditions in the financial markets.

Major vendors are defined as those vendors having expenditures made by the Company which exceed 10% of the Company's total operating expenses. The Company had two concentrations of vendors of Vendor A at 28% and Vendor B (Parent Company - see Note 4) at 22% for the period from inception (March 9, 2021) through December 31, 2021.

#### ***Cash and Cash Equivalents***

The Company considers all highly liquid investments with original maturities to the Company of three months or less to be cash equivalents. As of December 31, 2021, these cash equivalents consisted of money market funds.

#### ***Impairment of Long-Lived Assets***

The Company reviews its other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may be impaired. If it is determined that the estimated undiscounted future cash flows are not sufficient to recover the carrying value of the asset, an impairment loss is recognized in the statement of operations for the difference between the carrying value and the fair value of the asset. Management does not consider any of the Company's assets to be impaired as of December 31, 2021.

#### ***Advertising***

Advertising costs are expensed as incurred. Advertising expenses totaled $841,268 for the period from inception (March 9, 2021) through December 31, 2021.

#### ***Income Taxes***

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the tax bases of assets and liabilities. The deferred taxes represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred income tax assets are reviewed periodically for recoverability, and valuation allowances are provided when it is more likely than not that some or all of the deferred income tax assets may not be realized.

The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open tax years based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. The Company files income tax returns in the U.S. federal jurisdiction and certain state jurisdictions.

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### Subsequent Events

Management has evaluated events and transactions for potential recognition or disclosure through July 29, 2022, which is the date the financial statements were available to be issued.

### 2. Liquidity

The Company is pre-revenue as they completed the production of season 1 of the WingFeather Saga and do not plan to distribute season 1 until December 2022. The financial success of a television series depends on the reaction of the public and their ability to obtain additional regulation crowdfunding amounts. The Company has incurred significant net losses since inception that have accumulated to approximately $1,914,000 as of December 31, 2021. The Company used net cash of approximately $1,475,000 in operating activities from inception (March 9, 2021) through December 31, 2021. The net losses and use of cash in operating activities resulted from significant marketing efforts and the production of season 1. Management projects continued losses in 2022. However, the Company is preparing for another regulation crowdfunding through investors for up to $5,000,000. Although there can be no assurance, this funding is expected to provide the Company with resources necessary to continue its operations through at least July 29, 2023.

### 3. Preferred and Common Units

The Company has authorized 17,500,000 units of Preferred and Common units each. 15,000,000 of the Common units were issued as founder's units during 2021 to the parent of the Company for no cash consideration. The Preferred units were issued with the crowdfunding raise in which the units were issued at $1.00 per unit and the Company issued 4,997,423 units for total proceeds of $4,744,234, net of issuance costs of $253,189. During 2021, the Company issued 357,150 shares of Common units to a third-party in exchange for marketing services.

Prior to making any distributions to the Common unit holders, the Company must first make distributions to the Preferred unit holders until they have received a cumulative return of 120% of their initial capital contribution.

### Voting

Each member has a number of votes equal to the number of units held by such member, except that Preferred unit holders do not have a right to vote.

### 4. Related Party Transactions

The Company paid the parent company a combined total of $214,000 for marketing reimbursements from crowdfunding advertising of $39,000 and for a production fee of $175,000.

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## 5. Income Taxes

The provision for income taxes includes the following components for the period from inception (March 9, 2021) through December 31:

|  | 2021 |
| --- | --- |
| Current | $9,624 |
| Deferred | - |
|  | $9,624 |

Significant components of the Company's deferred income tax assets (liabilities) are as follows as of December 31:

|  | 2021 |
| --- | --- |
| Capitalized production costs | $480,614 |
| Net operating loss carryforwards | 14,622 |
| Valuation allowance | (495,236) |
|  | $ - |

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated is the cumulative loss incurred since inception. Such objective evidence limits the ability to consider other subjective evidence such as the Company's projections for future growth.

On the basis of this evaluation, a full valuation allowance of $495,236 as of December 31, 2021 has been recorded as it more likely than not that the deferred tax assets will not be realized. The valuation allowance increased by $495,236 for the period from inception (March 9, 2021) through December 31, 2021, and there is no tax benefit presented on the accompanying financial statements.

As of December 31, 2021, the Company had U.S. federal net operating loss carryforwards of approximately $66,000. The federal net operating loss carryforwards generated can be carried forward indefinitely.

The Company recognized the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authorities, based on technical merits. The reversal of uncertain tax positions will not affect the Company's effective tax rate to the extent that it continues to maintain a full valuation allowance against its deferred tax assets. The Company has no uncertain tax positions.

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**Attachment 4:** `SubscriptionAgreement1.pdf`

THE SECURITIES SET FORTH HEREIN ARE BEING OFFERED PURSUANT TO SECTION 4(A)(6) OF THE SECURITIES ACT OF 1933. THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. THERE ARE FURTHER RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN.

THE PURCHASE OF THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT.

# **Subscription Agreement**  
**CLASS A PREFERRED UNITS**  
IN  
TOOTHY COW PRODUCTIONS, LLC

The undersigned (the “**Investor**”) represents and understands that Toothy Cow Productions, LLC, a Tennessee limited liability company, (the “**Issuer**”), is offering up to 2,190,042 shares of its Class A Preferred Units (the “**Securities**”), for $1.50 per unit (the “**Purchase Price**”) in a Regulation CF offering (the “**Offering**”) subject to Issuer’s Form C SEC filing (the “**Form C**”) and the Issuer’s amended and restated operating agreement, dated as of February 1, 2023 (the “**Operating Agreement**”) (collectively, the Operating Agreement together with Form C, are the “**Offering Documents**”), each as may be amended. The Investor further understands that the Offering is being made without registration of the Securities under the Securities Act of 1933, as amended (the “**Securities Act**”), or any securities law of any state of the United States or of any other jurisdiction. The Offering has a minimum amount raised target of $250,000.50 (the “**Target Offering Amount**”) and a maximum offering target of $3,285,063 (the “**Maximum Offering Amount**”). The offering has a deadline to raise the Target Offering Amount of March 15, 2023 (the “**Offering Deadline**”). Once the Offering reaches the Target Offering Amount, the Issuer may elect to hold an initial Closing, as indicated below in Section 3 and continue to raise funds up to the Maximum Offering Amount.

This Subscription Agreement (this “**Subscription Agreement**”) relates to Investor’s agreement to purchase Securities in the amount set forth on the Signature Page hereto, to be issued by the Issuer, subject to the terms, conditions, acknowledgements, representations and warranties stated herein and in the Offering Documents for the sale of the Securities, as the same may be supplemented or amended. Capitalized terms used but not defined herein shall have the meanings given to them in the Offering Documents.

Investor understands that if Investor wishes to purchase Securities, Investor must complete this Subscription Agreement and submit the applicable Subscription Price in accordance with the instructions set forth in the Offering Documents and on the Portal’s page for this Offering. Investor understands that the purchase price per unit of Securities is $1.50.

In order to induce the Company to accept this Subscription Agreement for Securities and as further consideration for such acceptance, Investor hereby makes, adopts, confirms and agrees to all of the following covenants, acknowledgements, representations and warranties with the full

knowledge that the Company and its affiliates will expressly rely thereon in making a decision to accept or reject this Subscription Agreement.

1. Subscription. Subject to the terms and conditions hereof and the provisions of the Offering Documents, the Investor hereby irrevocably subscribes for the Securities set forth on the signature page hereto in the aggregate purchase amount or price there indicated (the “Total Purchase Price”), which is payable as described in Section 4 hereof. The Investor acknowledges that the Securities will be subject to restrictions on transfer as set forth in this Subscription Agreement.

2. Acceptance of Subscription and Issuance of Securities. It is understood and agreed that the Issuer shall have the sole right, in its complete discretion, to accept or reject this subscription, in whole or in part, for any reason and that the same shall be deemed to be accepted by the Issuer only when Investor has received a confirmation of closed investment notice from the crowdfunding portal (the “Portal”). Subscriptions need not be accepted in the order received, and the Securities may be allocated among subscribers.

3. The Closing. The closing of the purchase and sale of the Securities shall take place at 9:59 PM Pacific Time on the Offering Deadline or at such earlier time as set by Issuer (the “Closing”), subject to the following conditions:

(a) The Offering may not close if the cumulative subscriptions in the Offering have not reached the Target Offering Amount.

(b) The Offering may not close until the Offering has been open to the public for at least twenty-one (21) days after opening.

(c) The Offering may not close for any individual subscriber until such subscriber’s identity is verified and approved with the escrow agent (the “Escrow Agent”), and their funds have cleared the escrow account (the “Escrow Account”).

(d) If the Issuer sets a Closing earlier than the Offering Deadline, the Issuer shall send a notice five days prior to the Closing to all investors who have committed to invest in the Offering through a subscription agreement granting them an opportunity to cancel their commitment up to forty-eight (48) hours prior to the Closing. This notice will also identify if the Issuer will continue to accept commitments up to the Closing.

(e) The Offering may close in batches after the Offering Deadline as requirements are met for any such batch of subscribers.

4. Payment for Securities. The Investor shall pay to the Issuer the Total Purchase Price at the time of entering into this Subscription Agreement. Investor may pay the Total Purchase Price by ACH, credit card, or wire transfer. Payment shall be submitted to the Escrow Agent and held by the Escrow Agent until such time that it is either refunded to the Investor or distributed to the Issuer. If payment is never received by the Escrow Agent, Investor’s subscription will be canceled.

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1. 5. Termination. The Issuer and Investor may terminate this Subscription Agreement as follows:
   1. (a) The Investor may terminate this Subscription Agreement for any reason, but only up to forty-eight (48) hours before the Closing, or if the Investor enters into this Subscription Agreement during the last forty-eight (48) hours of the Offering, the Investor may not terminate this Subscription Agreement.
   2. (b) The Issuer may terminate this Subscription Agreement at any time and for any reason up until the time that Investor's subscription is accepted.
2. 6. Representations and Warranties of the Issuer. As of the Closing, the Issuer represents and warrants that:
   1. (a) The Issuer is duly formed and validly existing under the laws of the state of Tennessee, with full power and authority to conduct its business as it is currently being conducted and to own its assets; and has secured any other authorizations, approvals, permits and orders required by law for the conduct by the Issuer of its business as it is currently being conducted.
   2. (b) This Subscription Agreement, when executed and delivered by the Issuer, shall constitute the valid and legally binding obligations of the Issuer, enforceable against the Issuer in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.
   3. (c) The Securities, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Subscription Agreement and the Offering Documents, will be validly issued, fully paid and non-assessable.
3. 7. Representations and Warranties of the Investor. The Investor hereby represents and warrants to and covenants with the Issuer that:
   1. (a) The Investor has the capacity to purchase the Securities, enter into this Subscription Agreement and to perform all the obligations required to be performed by the Investor hereunder, and such purchase will not contravene any law, rule or regulation binding on the Investor or any investment guideline or restriction applicable to the Investor.
   2. (b) The Investor is a resident of the state set forth on the signature page hereto and is not acquiring the Securities as a nominee or agent or otherwise for any other person.
   3. (c) The Investor is a citizen of the United States of America.
   4. (d) The Investor is at least eighteen (18) years of age.

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(e) The Investor will comply with all applicable laws and regulations in effect in any jurisdiction in which the Investor purchases or sells the Securities and obtain any consent, approval or permission required for such purchases or sales under the laws and regulations of any jurisdiction to which the Investor is subject or in which the Investor makes such purchases or sales, and the Issuer shall have no responsibility therefor.

(f) The Investor has received a copy of the Offering Documents. The Investor has not been furnished any offering literature other than the Offering Documents and has relied only on the information contained therein.

(g) The Investor understands and accepts that the purchase of the Securities involves various risks, including the risks outlined in the Offering Documents. The Investor represents that it is able to bear any loss associated with an investment in the Securities.

(h) The Investor confirms that it is not relying on any communication (written or oral) of the Issuer or any of its affiliates, as investment advice or as a recommendation to purchase the Securities. It is understood that information and explanations related to the terms and conditions of the Securities provided in the Offering Documents or otherwise by the Issuer or any of its affiliates shall not be considered investment advice or a recommendation to purchase the Securities, and that neither the Issuer nor any of its affiliates is acting or has acted as an advisor to the Investor in deciding to invest in the Securities.

(i) The Investor is familiar with the business and financial condition and operations of the Issuer, all as generally described in the Offering Documents. The Investor has had access to such information concerning the Issuer and the Securities as it deems necessary to enable it to make an informed investment decision concerning the purchase of the Securities.

(j) The Investor understands that each of the Investor's representations and warranties contained in this Subscription Agreement will be deemed to have been reaffirmed and confirmed as of the Closing, taking into account all information received by the Investor.

(k) The Investor acknowledges that the Issuer has the right in its sole and absolute discretion to abandon the Offering at any time prior to the completion of the Offering. This Subscription Agreement shall thereafter have no force or effect and the Issuer shall return the previously paid Total Purchase Price of the Securities, without interest thereon, to the Investor.

(l) The Investor understands that no federal or state agency has passed upon the merits or risks of an investment in the Securities or made any finding or determination concerning the fairness or advisability of this investment.

(m) The Investor represents that it is not relying on (and will not at any time rely on) any communication (written or oral) of the Issuer, as investment advice or as a recommendation to purchase the Securities, it being understood that information and explanations related to the terms and conditions of the Securities and the other transaction

4

documents that are described in the Offering Documents shall not be considered investment advice or a recommendation to purchase the Securities.

(n) The Investor confirms that the Issuer has not (A) given any guarantee or representation as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Securities or (B) made any representation to the Investor regarding the legality of an investment in the Securities under applicable legal investment or similar laws or regulations. In deciding to purchase the Securities, the Investor is not relying on the advice or recommendations of the Issuer and the Investor has made its own independent decision that the investment in the Securities is suitable and appropriate for the Investor.

(o) The Investor has such knowledge, skill and experience in business, financial and investment matters that the Investor is capable of evaluating the merits and risks of an investment in the Securities. With the assistance of the Investor's own professional advisors, to the extent that the Investor has deemed appropriate, the Investor has made its own legal, tax, accounting and financial evaluation of the merits and risks of an investment in the Securities and the consequences of this Subscription Agreement. The Investor has considered the suitability of the Securities as an investment in light of its own circumstances and financial condition and the Investor is able to bear the risks associated with an investment in the Securities.

(p) The Investor is aware of its investment limitations based on Investor's annual net income, net worth and previous investments through other regulation crowdfunding offerings and is compliant with such limitations based on the Total Purchase Price.

(q) The Investor is acquiring the Securities solely for the Investor's own beneficial account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of the Securities. The Investor understands that the Securities have not been registered under the Securities Act or any State Securities Laws by reason of specific exemptions under the provisions thereof which depend in part upon the investment intent of the Investor and of the other representations made by the Investor in this Subscription Agreement. The Investor understands that the Issuer is relying upon the representations and agreements contained in this Subscription Agreement (and any supplemental information) for the purpose of determining whether this transaction meets the requirements for such exemptions.

(r) The Investor understands that the Securities are 'restricted securities' under applicable federal securities laws and that the Securities Act and the rules of the U.S. Securities and Exchange Commission (the '**Commission**') provide in substance that the Investor may dispose of the Securities only pursuant to an effective registration statement under the Securities Act or an exemption therefrom, and the Investor understands that the Issuer has no obligation or intention to register any of the Securities, or to take action so as to permit sales pursuant to the Securities Act (including Rule 144 thereunder). Accordingly, the Investor understands that under the Commission's rules, the Investor may dispose of the Securities principally only in 'private placements' which are exempt from registration under the Securities Act, in which event the transferee will acquire

5

“restricted securities” subject to the same limitations as in the hands of the Investor. Consequently, the Investor understands that the Investor must bear the economic risks of the investment in the Securities for an indefinite period of time.

(s) The Investor understands that the Securities may not be transferred by the Investor for a period of one year unless any such transfer is made pursuant to the exemptions found in the regulation crowdfunding statutes and rules.

(t) The Investor agrees: (A) that the Investor will not sell, assign, pledge, give, transfer or otherwise dispose of the Securities or any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration of the Securities under the Securities Act and all applicable State Securities Laws, or in a transaction which is exempt from the registration provisions of the Securities Act and all applicable State Securities Laws; and (B) that the Issuer and its affiliates shall not be required to give effect to any purported transfer of such Securities except upon compliance with the foregoing restrictions and any restrictions set forth in the Offering Documents.

8. Conditions to Obligations of the Investor and the Issuer. The obligations of the Investor to purchase and pay for the Securities specified on the signature page and of the Issuer to sell the Securities are subject to the satisfaction at or prior to the Closing of the following conditions precedent: the representations and warranties of the Issuer contained in Section 6 hereof and of the Investor contained in Section 7 hereof shall be true and correct as of the Closing in all respects with the same effect as though such representations and warranties had been made as of the Closing.

9. Obligations Irrevocable. The obligations of the Investor shall be irrevocable except as allowed under the laws of Regulation Crowdfunding.

10. Waiver, Amendment. Once this Subscription Agreement has been accepted by both parties, neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged or terminated except by an instrument in writing, signed by the party against whom any waiver, change, discharge or termination is sought.

11. Assignability. Neither this Subscription Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by either the Issuer or the Investor without the prior written consent of the other party.

12. Waiver of Jury Trial. THE INVESTOR IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT.

13. Submission to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases or sales of the Securities by the Investor (“Proceedings”), the Investor irrevocably submits to the jurisdiction of the federal or state chancery courts located in the County of Williamson, Franklin, Tennessee, which submission shall be exclusive unless none of such courts has lawful jurisdiction over such Proceedings.

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14. Governing Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee.

15. Section and Other Headings. The section and other headings contained in this Subscription Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Subscription Agreement.

16. Counterparts. This Subscription Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

17. Notices. All notices and other communications provided for herein shall be by email and shall be deemed to have been duly given on the day on which the receiver received such email if sent prior to 5:00 PM in the receiver's time and on the following business day if sent after 5:00 PM.

18. Binding Effect. The provisions of this Subscription Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns.

19. Survival. All representations, warranties and covenants contained in this Subscription Agreement shall survive (i) the acceptance of the subscription by the Issuer and the Closing, (ii) changes in the transactions, documents and instruments described in the Offering Documents which are not material or which are to the benefit of the Investor and (iii) the death or disability of the Investor.

[SIGNATURE PAGE FOLLOWS]

7

IN WITNESS WHEREOF, the Investor has executed this Subscription Agreement on:

Month ________________ Day ________________ Year ________________

INVESTOR:

By: ________________ Signature ________________

Name: ________________ Print ________________

State or Territory, and Country of Domicile: ________________ United States of America

Aggregate Subscription Amount: US$ ________________

The offer to purchase Securities as set forth above is confirmed and accepted by the Issuer as to ________________ Class A Preferred Units.

Date: ________________

By: ________________

8

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Toothy Cow Productions, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** TN

**Date of Organization:** 03-09-2021

**Physical Address:** PO BOX 681142, FRANKLIN, TN, 37064

**Issuer Website:** www.toothycowproductions.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** VAS Portal, LLC

**Intermediary CIK:** 0001749383

**Intermediary File Number:** 007-00165

**Intermediary CRD Number:** 298941

### Offering Information

**Compensation to Intermediary:** 4% of the successful amount raised in cash, 2% of the successful amount raised in the equity of the offering, plus reimbursements for any out-of-pocket expenses incurred by the portal with third-party service providers in connection with the offering.

**Financial Interest in Issuer:** The intermediary holds 307035 preferred units issued in 2022 as compensation for services in the previous regulation crowdfunding offerings

**Type of Security Offered:** Preferred Stock

**Number of Securities Offered:** 166667

**Price per Security:** $1.50

**Target Offering Amount:** $250,000.50

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $3,285,063.00

**Deadline to Reach Target Amount:** 03-15-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 17.00

**Total Assets (Most Recent Fiscal Year):** $3,272,460.00

**Total Assets (Prior Fiscal Year):** $0.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $3,268,842.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $0.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $36,758.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-1,904,539.00

**Net Income (Prior Fiscal Year):** $0.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING

### Signatures

**Issuer:** Toothy Cow Productions, LLC

**Signature:** James Chris Wall

**Title:** Manager

---

**Signature:** James Chris Wall

**Title:** Manager

**Date:** 02-08-2023

---

**Signature:** Andrew Peterson

**Title:** Manager

**Date:** 02-08-2023