# EDGAR Filing Document

**Accession Number:** 0001898520
**File Stem:** 0001670254-23-000166
**Filing Date:** 2023-2
**Character Count:** 207970
**Document Hash:** 8423d8cd6f9d248366bbd2fa361ec53c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000166.hdr.sgml**: 20230224

**ACCESSION NUMBER**: 0001670254-23-000166

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 10

**FILED AS OF DATE**: 20230224

**DATE AS OF CHANGE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Hazel's Ghost LLC
- **CENTRAL INDEX KEY:** 0001898520
- **IRS NUMBER:** 873746888
- **STATE OF INCORPORATION:** CA

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31865
- **FILM NUMBER:** 23665170

**BUSINESS ADDRESS:**
- **STREET 1:** 655 N. LUCERNE BLVD APT 12
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90004
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 5870 MELROSE AVE STE 3, PMB 692,
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90038

## Ex-99

### Attached PDF Documents

**Attachment 1:** `document_1.pdf`

# Form C

## Cover Page

Name of issuer:

Hazel's Ghost LLC

Legal status of issuer:

Form: Limited Liability Company

Jurisdiction of Incorporation/Organization: CA

Date of organization: 11/30/2021

Physical address of issuer:

5870 Melrose Ave Ste 3, PMB 692,
Los Angeles CA 90038

Website of issuer:

http://seancefilm.com/

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

CIK number of intermediary:

0001670254

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

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:

7.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer 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:

No

Type of security offered:

☐ Common Stock
☐ Preferred Stock
☐ Debt
☑ Other

If Other, describe the security offered:

Revenue Participation Agreement

Target number of securities to be offered:

50,000

Price:

$1.00000

Method for determining price:

Pro-rated portion of the total principal value of $50,000; interests will be sold in increments of $1.

Target offering amount:

$50,000.00

Oversubscriptions accepted:

☑ Yes
☐ No

If yes, disclose how oversubscriptions will be allocated:

☐ Pro-rata basis
☐ First-come, first-served basis
☑ Other

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

Maximum offering amount (if different from target offering amount):

$225,000.00

Deadline to reach the target offering amount:

4/29/2024

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 cancelled and committed funds will be returned.

Current number of employees:

0

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $520,877.00 | $0.00 |
| Cash & Cash Equivalents: | $8,828.00 | $0.00 |
| Accounts Receivable: | $0.00 | $0.00 |
| Short-term Debt: | $40,931.00 | $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: | $0.00 | $0.00 |
| Net Income: | ($2,500.00) | $0.00 |

Select 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, BS, GU, PR, VI, IV

## 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 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:

Hazel's Ghost LLC

# COMPANY 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.
- 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.

INSTRUCTION TO QUESTION 2: If any of these statements are not true, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

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.

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Rachel Stander | Producer | A Season of Rain | 2021 |
| Vivian Kerr | Actor | Freelance | 2021 |

For three years of business experience, refer to Appendix D: Director & Officer Work History.

# OFFICERS OF THE COMPANY

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

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Rachel Stander | Co-Manager | 2021 |
| Vivian Kerr | Co-Manager | 2021 |

For three years of business experience, refer to Appendix D: Director & Officer Work History.

INSTRUCTION TO QUESTION 5: For purposes of this Question 5, the term officer means a president, vice president, secretary, treasurer or principal financial officer, comptroller or principal accounting officer, and any person that routinely performing similar functions.

# 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 |
| --- | --- | --- |
| Vivian Kerr | Membership Interests | 50.0 |
| Rachel Stander Jones | Membership Interests | 50.0 |

*INSTRUCTION TO QUESTION 6: The above information must be provided as of a date that is no more than 120 days prior to the date of filing of this offering statement.*

*To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or share in such direction or control - as, for example, a co-trustee) they should be included as being “beneficially owned.” You should include an explanation of these circumstances in a footnote to the “Number of and Class of Securities Now Held.” To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.*

## BUSINESS AND ANTICIPATED BUSINESS PLAN

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

For a description of our business and our business plan, please refer to the attached Appendix A, Business Description & Plan

*INSTRUCTION TO QUESTION 7: Wefunder will provide your company’s Wefunder profile as an appendix (Appendix A) to the Form C in PDF format. The submission will include all Q&A items and “read more” links in an un-collapsed format. All videos will be transcribed.*

*This means that any information provided in your Wefunder profile will be provided to the SEC in response to this question. As a result, your company will be potentially liable for misstatements and omissions in your profile under the Securities Act of 1933, which requires you to provide material information related to your business and anticipated business plan. Please review your Wefunder profile carefully to ensure it provides all material information, is not false or misleading, and does not omit any information that would cause the information included to be false or misleading.*

## 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.**

**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:

The success of the picture will largely depend on the quality of the management of the Company. The Managers, with the advice and assistance of other professionals, will administer all business aspects of the Managers, the Company, and the picture. Although the Managers believe that the Managers have the necessary business and motion picture experience to supervise the management of the Company, there can be no assurance that the Managers will perform adequately or that the Company’s operations will be successful. Purchasers of interests will receive an economic interest in the Company, but shall not be participants in the management or the operations of the Managers, the Company, or the picture. Accordingly, except as otherwise set forth in this agreement, an investor will have no right to vote on, or to veto actions of the Managers, will have no creative control, and Manager-approved actions may be approved despite the investor’s dissent from such actions.

The Company has been in existence for a very short period of time, and is subject to all the risks incident to the creation and development of a new business, including the absence of a history of operations and minimal net worth. Furthermore, the Company has not produced or distributed a full-length motion picture. The Company and the Managers have, and will continue to endeavor to

employ or otherwise retain the services of those persons with the skills necessary to successfully produce and distribute a full-length feature film, but no assurances can be given that they will be successful in these efforts.

The Managers are not required to render exclusive services in connection with the picture or the Company. The Managers, the production team and the talent have interests in a variety of activities other than acting as Managers to the Company, including involvement with the production of other films. In addition, the Managers, the production team and the talent may organize companies that are similar to the Company in the future. The Managers may be principals in, or have profit interest in, the Company. Accordingly, conflicts of interest may arise in the allocation of the Managers', the production team's and/or the talent's time between the Company and one or more of these other activities. Additionally, the Managers may enter into services agreements with the Company. The terms of such agreement may not be the result of an arms-length transaction, but be considered to be equal to, or less than, industry standards for the associated services rendered to the Company.

There is no assurance that unforeseen events will not occur, resulting in the need to raise additional funds beyond what the Company and the Managers project. Furthermore, companies with limited operating histories, such as the Company and the Managers, do not always use capital in the most efficient manner thus, the Company and the Managers may need to raise additional capital to fund future operations and to satisfy future capital requirements of the Company. The failure to raise any additional needed funds could have a material adverse effect on the Company and the Managers. In addition, it is anticipated that raising additional funds will result in additional dilution of each Investor's equity investment. Subject to the terms of the agreement, though the Company and the Managers do not anticipate that additional financing will need to be obtained, there can be no assurance that additional capital will not be needed.

Some segments of the motion picture industry are highly competitive. The Company will be competing with the producers of other films in arranging for distribution in all available markets and media. In the distribution phase, competition will limit the availability of such markets and media required for the successful distribution of the picture. The picture will be competing directly with other motion pictures and indirectly with other forms of public entertainment. The Company will compete with numerous larger motion picture production companies and distribution companies, which have substantially greater resources, larger and more experienced production and distribution staffs, and established histories of successful production and distribution of motion pictures.

The picture's success is primarily dependent on audience acceptance of the picture, which is extremely difficult to predict and, therefore, inherently risky. Many films are produced each year and never released. Many films are released each year, which are not commercially successful and fail to recoup their production costs from United States theatrical distribution. Foreign and ancillary markets have therefore become increasingly important. Licensing of a motion picture in the ancillary markets is particularly dependent upon performance in domestic theatrical distribution. Neither the Managers nor the Company can predict the economic success of the picture because the revenue derived from the distribution of a motion picture (which does not necessarily bear any correlation to the production or distribution costs incurred) depends primarily upon its acceptance by the public, which cannot be accurately predicted. The economic success of a motion picture also depends upon the public's acceptance of competing films, 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. Neither the Managers nor the Company can assure Investors that the picture will generate enough revenue to offset its distribution and marketing costs, in which case the Company would not receive any net revenues for the picture.

The ultimate profitability of any motion picture depends upon its audience appeal in relation to the cost of its production and distribution. The audience appeal of a given motion picture depends, among other things, on unpredictable critical reviews and changing public tastes and such appeal cannot be anticipated with certainty.

The production and distribution of a motion picture involves the passage of a significant amount of time. Pre-production on a picture may extend for two to three months or more. Principal photography may extend for several weeks or more. Post- production may extend for three to four months or more. Distribution and exhibition of motion pictures generally and of the picture may continue for years before gross proceeds or net proceeds may be generated, if at all.

Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.

Rachel Stander and Vivian Kerr are part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.

INSTRUCTION TO QUESTION 8: Avoid generalized statements and include only those factors that are unique to the issuer. Discussion should be tailored to the issuer's business and the offering and should not repeat the factors addressed in the legends set forth above. No specific number of risk factors is required to be identified.

# The Offering

## USE OF FUNDS

9. What is the purpose of this offering?

The Company intends to use the net proceeds of this offering for working capital and general corporate purposes, which includes the specific items listed in Item 10 below. While the Company expects to use the net proceeds from the Offering in the manner described above, it cannot specify with certainty the particular uses of the net proceeds that it will receive from this Offering. Accordingly, the Company will have broad discretion in using these proceeds.

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

If we raise: $50,000

Use of Proceeds: The Company's plan for the remainder of 2023 is to use the equity on hand to start Post-Production, keeping on track with the timeline for finishing the film. The Company plans to simultaneously raise additional equity to cover basic Post-Production costs, which this minimum will allow us to do. This will include the 7.5% Wefunder intermediary fee.

If we raise: $225,000

Use of Proceeds: The additional funds up to $225,000 will cover all projected costs for deliverables and marketing necessary to successfully launch the finished film to the marketplace, as well as allow for additional Post-Production work on Sound, VFX, and Color Grade and the 7.5% Wefunder intermediary fee.

INSTRUCTION TO QUESTION 10: An issuer must provide a reasonably detailed description of any intended use of proceeds, such that investors are provided with an adequate amount of information to understand how the offering proceeds will be used. If an issuer has identified a range of possible uses, the issuer should identify and describe each probable use and the factors the issuer may consider in allocating proceeds among the potential uses. If the issuer will accept proceeds in excess of the target offering amount, the issuer must describe the purpose, method for allocating oversubscriptions, and intended use of the excess proceeds with similar specificity. Please include all potential uses of the proceeds of the offering, including any that may apply only in the case of oversubscriptions. If you do not do so, you may later be required to amend your Form C. Wefunder is not responsible for any failure by you to describe a potential use of offering proceeds.

## DELIVERY & CANCELLATIONS

11. How will the issuer complete the transaction and deliver securities to the investors?

Book Entry and Investment in the Co-issuer. Investors will make their investments by investing in interests issued by one or more co-issuers, each of which is a special purpose vehicle ("SPV"). The SPV will invest all amounts it receives from investors in securities issued by the Company. Interests issued to investors by the SPV will be in book entry form. This means that the investor will not receive a certificate representing his or her investment. Each investment will be recorded in the books and records of the SPV. In addition, investors' interests in the investments will be recorded in each investor's "Portfolio" page on the Wefunder platform. All references in this Form C to an Investor's investment in the Company (or similar phrases) should be interpreted to include investments in a SPV.

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 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 cancelled and the committed funds will be returned.

An investor's right to cancel. An investor may cancel his or her investment commitment at any time until 48 hours prior to the offering deadline.

If there is a material change to the terms of the offering or the information provided to the investor about the offering and/or the Company, the investor will be provided notice of the change and must re-confirm his or her investment commitment within five business days of receipt of the notice. If the investor does not reconfirm, he or she will receive notifications disclosing that the commitment was cancelled, the reason for the cancellation, and the refund amount that the investor is required to receive. If a material change occurs within five business days of the maximum number of days the offering is to remain open, the offering will be extended to allow for a period of five business days for the investor to reconfirm.

If the investor cancels his or her investment commitment during the period when cancellation is permissible, or does not reconfirm a commitment in the case of a material change to the investment, or the offering does not close, all of the investor's funds will be returned within five business days.

Within five business days of cancellation of an offering by the Company, the Company will give each investor notification of the cancellation, disclose the reason for the cancellation, identify the refund amount the investor will receive, and refund the investor's funds.

The Company's right to cancel. The Investment Agreement you will execute with us provides the Company the right to cancel for any reason before the offering deadline.

If the sum of the investment commitments from all investors does not equal or exceed the target offering amount at the time of the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.

## Ownership and Capital Structure

THE OFFERING

13. Describe the terms of the securities being offered.

Revenue Participation Agreement.

120% of Principal + 40% of Net Profits.

100% of proceeds are paid to investors pro-rata until 120% of principal investment is returned. Thereafter investors earn 40% of Net Profits.

The notes do not provide investors with any voting rights in the company.

See exact security attached as Appendix B, Investor Contracts.

Securities Issued by the SPV

Instead of issuing its securities directly to investors, the Company has decided to issue its securities to the SPV, which will then issue interests in the SPV to investors. The SPV has been formed by Wefunder Admin, LLC and is a co-issuer with the Company of the securities being offered in this offering. The Company's use of the SPV is intended to allow investors in the SPV to achieve the same economic exposure, voting power, and ability to assert State and Federal law rights, and receive the same disclosures, as if they had invested directly in the Company. The Company's use of the SPV will not result in any additional fees being charged to investors.

The SPV has been organized and will be operated for the sole purpose of directly acquiring, holding and disposing of the Company's securities, will not borrow money and will use all of the proceeds from the sale of its securities solely to purchase a single class of securities of the Company. As a result, an investor investing in the Company through the SPV will have the same relationship to the Company's securities, in terms of number, denomination, type and rights, as if the investor invested directly in the Company.

#### Voting Rights

If the securities offered by the Company and those offered by the SPV have voting rights, those voting rights may be exercised by the investor or his or her proxy. The applicable proxy is the Lead Investor, if the Proxy (described below) is in effect.

#### Proxy to the Lead Investor

The SPV securities have voting rights. With respect to those voting rights, the investor and his, her, or its transferees or assignees (collectively, the 'Investor'), through a power of attorney granted by Investor in the Investor Agreement, has appointed or will appoint the Lead Investor as the Investor's true and lawful proxy and attorney (the 'Proxy') with the power to act alone and with full power of substitution, on behalf of the Investor to: (i) vote all securities related to the Company purchased in an offering hosted by Wefunder Portal, and (ii) execute, in connection with such voting power, any instrument or document that the Lead Investor determines is necessary and appropriate in the exercise of his or her authority. Such Proxy will be irrevocable by the Investor unless and until a successor lead investor ('Replacement Lead Investor') takes the place of the Lead Investor. Upon notice that a Replacement Lead Investor has taken the place of the Lead Investor, the Investor will have five (5) calendar days to revoke the Proxy. If the Proxy is not revoked within the 5-day time period, it shall remain in effect.

#### Restriction on Transferability

The SPV securities are subject to restrictions on transfer, as set forth in the Subscription Agreement and the Limited Liability Company Agreement of Wefunder SPV, LLC, and may not be transferred without the prior approval of the Company, on behalf of the SPV.

14. Do the securities offered have voting rights?

☐ Yes
☑ No

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

See the above description of the Proxy to the Lead Investor.

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

The attached agreement contains the entire understanding of the Parties relating to the subject matter herein, and supersedes all other agreements between the Parties whether written or oral relating thereto, and may not be modified or amended except by written instrument executed by both of the parties hereto.

Pursuant to authorization in the Investor Agreement between each Investor and Wefunder Portal, Wefunder Portal is authorized to take the following actions with respect to the investment contract between the Company and an investor:

A. Wefunder Portal may amend the terms of an investment contract, provided that the amended terms are more favorable to the investor than the original terms; and
B. Wefunder Portal may reduce the amount of an investor's investment if the reason for the reduction is that the Company's offering is oversubscribed.

reason for the reduction is that the Company's offering is over-substituted.

## 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.

|  | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Class of Security | This is an LLC with no issued units. |  |  |

| Class of Security | Securities Reserved for Issuance upon Exercise or Conversion |
| --- | --- |

Warrants:

Options:

Describe any other rights:

This is an LLC with no issued units.

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?

Because the Investor holds no voting rights in the company, the holders of a majority-in-interest of voting rights in the Company could limit the Investor's rights in a material way. For example, those interest holders could vote to change the terms of the agreements governing the Company's operations or cause the Company to engage in additional offerings (including potentially a public offering). These decisions could affect gross revenues and diminish payments made to Investors.

Based on the risk that the company may never realize revenues or face a Default Event, the Investor may never see any returns.

Additional risks related to the rights of other security holders are discussed below, in Question 20.

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

There are no units issued in this offering. This is a Revenue Participation Agreement. For more information please review the Offering Details Document.

As a holder of a Funding Agreement you will have no voting rights, and limited ability, if at all, to influence out policies or any other corporate matter, including the election of directors, changes to the Company's governance documents, additional issuances of securities, company repurchases of securities, a sale of the

Company or of assets of the Company, or transactions with related parties.

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?

As holders of a majority-in-interest of voting rights in the Company, the unitholders may make decisions with which the Investor disagrees, or that negatively affect the gross revenues of the Company, and the Investor will have no recourse to change these decisions. The Investor's interests may conflict with those of other investors, and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the Investor.

For example, the unitholders may change the terms of the Operating Agreement for the company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The unitholders may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. Other holders of securities of the Company may also have access to more information than the Investor, leaving the Investor at a disadvantage with respect to any decisions regarding the securities he or she owns.

The unitholders have the right to redeem their securities at any time, unitholders could decide to force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its viability.

In cases where the rights of holders of convertible debt, SAFEs, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be negatively affected.

Based on the risks described above, the Investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.

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 offering price for the securities offered pursuant to this Form C has been determined arbitrarily by the Company, and does not necessarily bear any relationship to the Company's book value, assets, earnings or other generally accepted valuation criteria. In determining the offering price, the Company did not employ investment banking firms or other outside organizations to make an independent appraisal or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.

We will analyze factors such as those described above using a combination of financial and market-based methodologies to determine our business enterprise value. For example, we may use methodologies that assume that businesses operating in the same industry will share similar characteristics and that the Company's value will correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

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

An Investor in the Revenue Participation Agreement holds no position in the Company and will have no voting rights in the Company, and thus will be limited as to its ability to control or influence the governance and operations of the Company.

The marketability and value of the Investor's interest in the Company will depend upon many factors outside the control of the Investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision-making of its management, and the Investor will have no independent right to name or remove an officer or member of the management of the Company.

23. What are the risks to purchasers associated with corporate actions, including additional issuances of securities, issuer repurchases of securities, a sale of the issuer or of assets of the issuer or transactions with related parties?

Additional issuances of securities. Following the Investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the Investor in the Company. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but

such opportunity cannot be assured. The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the Investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor's interest in the Company.

Issuer repurchases of securities. The Company may have authority to repurchase its securities from unitholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interests held by other similarly situated investors to the Investor, and create pressure on the Investor to sell its securities to the Company concurrently.

A sale of the issuer or of assets of the issuer. As a minority owner of the Company, the Investor will have limited or no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the Investor will rely upon the executive management of the Company to manage the Company so as to maximize value for unitholders. Accordingly, the success of the Investor's investment in the Company will depend in large part upon the skill and expertise of the executive management of the Company. If the Management of the Company authorizes a sale of all or a part of the Company, or a disposition of a substantial portion of the Company's assets, there can be no guarantee that the value received by the Investor, together with the fair market estimate of the value remaining in the Company, will be equal to or exceed the value of the Investor's initial investment in the Company.

Transactions with related parties. The Investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management of the Company will be guided by their good faith judgement as to the Company's best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not arm's-length, but will be in all cases consistent with the duties of the management of the Company to its unitholders. By acquiring an interest in the Company, the Investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

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

Loan

| Issue date | 06/01/22 |
| --- | --- |
| Amount | $30,000.00 |
| Outstanding principal plus interest | $30,000.00 as of 02/20/23 |
| Interest rate | 0.0% per annum |
| Current with payments | Yes |

Revenue Participation Agreement: 120% return on principal with pro rata share of 40% net profits. The first $250k of investors received a 125% return on principal (instead of 120%).

Loan

| Issue date | 07/15/22 |
| --- | --- |
| Amount | $484,050.00 |
| Outstanding principal plus interest | $484,050.00 as of 02/18/23 |
| Current with payments | Yes |

Revenue Participation Agreement: 120% return on principal with pro rata share of 40% net profits. The first $250k of investors received a 125% return on principal (instead of 120%).

Loan

| Lender | Rachel Stander |
| --- | --- |
| Issue date | 01/14/23 |
| Amount | $60,000.00 |
| Outstanding principal plus interest | $60,000.00 as of 02/19/23 |
| Interest rate | 4.5% per annum |
| Maturity date | 10/02/23 |

Current with payments

Yes

INSTRUCTION TO QUESTION 24: name the creditor, amount owed, interest rate, maturity date, and any other material terms.

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 7/2022 | Regulation |  | $484,050 | General |
|  | Crowdfunding |  |  | operations |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a 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 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 equity 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;
4. or any immediate family member of any of the foregoing persons.

☑ Yes
☐ No

For each transaction specify the person, relationship to issuer, nature of interest in transaction, and amount of interest.

| Name | Rachel Stander |
| --- | --- |
| Amount invested | $60,000.00 |
| Transaction type | Loan |
| Issue date | 01/14/23 |
| Outstanding principal plus interest | $60,000.00 as of 02/19/23 |
| Interest rate | 4.5% per annum |
| Maturity date | 10/02/23 |
| Current with payments | Yes |
| Relationship | Founder |

Bridge Loan

INSTRUCTIONS TO QUESTION 26: The term transaction includes, but is not limited to, any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangements or relationships.

Beneficial ownership for purposes of paragraph (2) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering statement and using the same calculation described in Question 6 of this Question and Answer format.

The term "member of the family" includes any 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 person, and includes adoptive relationships. The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.

Compute the amount of a related party's interest in any transaction without regard to the amount of the profit or loss involved in the transaction. Where it is not practicable to state the approximate amount of the interest, disclose the approximate amount involved in the transaction.

# 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.

### **Management's Discussion and Analysis of Financial Condition and Results of Operations**

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

#### **Overview**

Back the female-led team of SÉANCE - a nuanced Gothic thriller about grief, adultery, and ghosts!

SEANCE allows us to build on the model of low-budget, high-quality filmmaking we established with our first feature, while moving into the genre space and setting our investors up to benefit from a marketplace that is hungry for well-made horror films.

We are a film production company making a Victorian Gothic horror thriller feature film that explores infidelity, regret, and what makes a marriage successful - or dooms it to failure.

We intend for the film to be completed and have enjoyed a successful run at major festivals such as Sundance, Tribeca, and South by Southwest, have sold to a major indie film distributor for first-run theatrical release, and ultimately have sold to a digital and streaming platform such as Netflix, Amazon, or Hulu, with our investors earning profits from all distribution channels, although this cannot be guaranteed.

#### **Milestones**

Hazel's Ghost LLC was incorporated in the State of California in November 2021.

Since then, we have:

- SÉANCE has already completed principal photography
- Director/Writer Vivian Kerr has pitched at HBO, HBOMax, Element Pictures, Tornante, Fabel Entertainment, and others
- As award-winning alumni of 50+ film festivals, we have strong relationships within the industry
- You want to support an all-female directing, writing, and producing team, and elevate female voices
- Director/Writer Vivian Kerr has been a professional actor for 15+ years, with extensive TV credits
- You love thoughtful psychological horror films in the vein of THE OTHERS, THE INNOCENTS, and GASLIGHT
- Vivian Kerr's scripts have placed Top 10 in Final Draft's Big Break, and Second-Round in both Sundance & Austin

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company's limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

#### **Historical Results of Operations**

Our company was organized in November 2021 and has limited operations upon which prospective investors may base an evaluation of its performance.

- *Revenues & Gross Margin*. For the period ended December 31, 2022, the Company had revenues of $0 compared to the year ended December 31, 2021, when the

Company had revenues of $0.

- *Assets.* As of December 31, 2022, the Company had total assets of $520,877, including $8,828 in cash. As of December 31, 2021, the Company had $0 in total assets, including $0 in cash.
- *Net Loss.* The Company has had net losses of $2,500 and net income of $0 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
- *Liabilities.* The Company's liabilities totaled $40,931 for the fiscal year ended December 31, 2022 and $0 for the fiscal year ended December 31, 2021.

### Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

### Liquidity & Capital Resources

To-date, the company has been financed with $574,050 in debt.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don't have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

### Runway & Short/Mid Term Expenses

Hazel's Ghost LLC cash in hand is $28,685.12, as of February 2023. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $111,414/month, for an average burn rate of $0 per month. Our intent is to be profitable in 24 months.

There have been no significant changes or trends in financials since December 2022. Money was spent on wrapping up production / principal photography expenses and moving towards post-production. Our expenses have dropped significantly since we have finished production.

We do not expect to be revenue-generating in the next 3-6 months. During that time, we will be working on post-production on the film. We expect to raise approximately $200,000 on Wefunder in the next 6 months, which we will use towards finishing post-production, submitting the film to film festivals, and beginning the PR/marketing stage of the film.

We expect the film to be completed in Fall/Winter of 2023 and ready to be sold in early 2024. We expect to see revenue in late 2024. We expect the initial revenue to be part of a MG (minimum guarantee) paid to the LLC from the distributor. That first round of money varies depending on the distributor's offer, which is largely based on what film festival the project debuts in. A MG can run anywhere between low five-figures and mid six-figures.

The film's post-production process has been additionally financed through a personal loan from co-Manager Rachel Stander to the LLC to supplement the costs of post-production. This loan repayment has already been factored into the expected final budget of the film and will not affect its profitability.

All projections in the above narrative are forward-looking and not guaranteed.

*INSTRUCTIONS TO QUESTION 28: The discussion must cover each year for which financial statements are provided. For issuers with no prior operating history, the discussion should focus on financial milestones and operational, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether historical results and cash flows are representative of what investors should expect in the future. Take into account the proceeds of the offering and any*

other known or pending sources of capital. Discuss how the proceeds from the offering will affect liquidity, whether receiving these funds and any other additional funds is necessary to the viability of the business, and how quickly the issuer anticipates using its available cash. Describe the other available sources of capital to the business, such as lines of credit or required contributions by shareholders. References to the issuer in this Question 28 and these instructions refer to the issuer and its predecessors, if any.

## FINANCIAL INFORMATION

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

Refer to Appendix C, Financial Statements

I, Vivian Kerr, certify that:

(1) the financial statements of Hazel's Ghost LLC included in this Form are true and complete in all material respects; and
(2) the financial information of Hazel's Ghost LLC included in this Form reflects accurately the information reported on the tax return for Hazel's Ghost LLC filed for the most recently completed fiscal year.

Vivian Kerr
Actor

## STAKEHOLDER ELIGIBILITY

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, 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 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 any 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

(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

If you would have answered "Yes" to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or bar occurred or been issued after May 16, 2016, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

INSTRUCTIONS TO QUESTION 30: Final order means a written directive or declaratory statement issued by a federal or state agency, described in Rule 503(c)(3) of Regulation Crowdfunding, under applicable statutory authority that provides for notice and an opportunity for hearing, which constitutes a final disposition or action by that federal or state agency.

No matters are required to be disclosed with respect to events relating to any affiliated issuer that occurred before the affiliation arose if the affiliated entity is not (i) in control of the issuer or (ii) under common control with the issuer by a third party that was in control of the affiliated entity at the time of such events.

## 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 Lead Investor. As described above, each investor that has entered into the Investor Agreement will grant a power of attorney to make voting decisions on behalf of that Investor to the Lead Investor (the "Proxy"). The Proxy is irrevocable unless and until a Successor Lead Investor takes the place of the Lead Investor, in which case, the Investor has a five (5) calendar day period to revoke the Proxy. Pursuant to the Proxy, the Lead Investor or his or her successor will make voting decisions and take any other actions in connection with the voting on investors'

behalf.

The Lead Investor is an experienced investor that is chosen to act in the role of Lead Investor on behalf of Investors that have a Proxy in effect. The Lead Investor will be chosen by the Company and approved by Wefunder Inc. and the identity of the initial Lead Investor will be disclosed to Investors before Investors make a final investment decision to purchase the securities related to the Company.

The Lead Investor can quit at any time or can be removed by Wefunder Inc. for cause or pursuant to a vote of investors as detailed in the Lead Investor Agreement. In the event the Lead Investor quits or is removed, the Company will choose a Successor Lead Investor who must be approved by Wefunder Inc. The identity of the Successor Lead Investor will be disclosed to Investors, and those that have a Proxy in effect can choose to either leave such Proxy in place or revoke such Proxy during a 5-day period beginning with notice of the replacement of the Lead Investor.

The Lead Investor will not receive any compensation for his or her services to the SPV. The Lead Investor may receive compensation if, in the future, Wefunder Advisors LLC forms a fund ("Fund") for accredited investors for the purpose of investing in a non-Regulation Crowdfunding offering of the Company. In such as circumstance, the Lead Investor may act as a portfolio manager for that Fund (and as a supervised person of Wefunder Advisors) and may be compensated through that role.

Although the Lead Investor may act in multiple roles with respect to the Company's offerings and may potentially be compensated for some of its services, the Lead Investor's goal is to maximize the value of the Company and therefore maximize the value of securities issued by or related to the Company. As a result, the Lead Investor's interests should always be aligned with those of Investors. It is, however, possible that in some limited circumstances the Lead Investor's interests could diverge from the interests of Investors, as discussed in section 8 above.

Investors that wish to purchase securities related to the Company through Wefunder Portal must agree to give the Proxy described above to the Lead Investor, provided that if the Lead Investor is replaced, the Investor will have a 5-day period during which he or she may revoke the Proxy. If the Proxy is not revoked during this 5-day period, it will remain in effect.

Tax Filings. In order to complete necessary tax filings, the SPV is required to include information about each investor who holds an interest in the SPV, including each investor's taxpayer identification number ("TIN") (e.g., social security number or employer identification number). To the extent they have not already done so, each investor will be required to provide their TIN within the earlier of (i) two (2) years of making their investment or (ii) twenty (20) days prior to the date of any distribution from the SPV. If an investor does not provide their TIN within this time, the SPV reserves the right to withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations as well as the SPV's reasonable estimation of any penalties that may be charged by the IRS or other relevant authority as a result of the investor's failure to provide their TIN. Investors should carefully review the terms of the SPV Subscription Agreement for additional information about tax filings.

INSTRUCTIONS TO QUESTION 30: If information is presented to investors in a format, media or other means not able to be reflected in text or portable document format, the issuer should include:

(a) a description of the material content of such information;

(b) a description of the format in which such disclosure is presented; and

(c) in the case of disclosure in video, audio or other dynamic media or format, a transcript or description of such disclosure.

# 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://seancefilm.com//invest

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

1. the issuer is required to file reports under Exchange Act Sections 13(a) or 15(d);
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 4(a)(6), including any payment in full of debt securities or any complete redemption of redeemable securities; or the issuer liquidates or dissolves in accordance with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

SEANCE Funding Agreement February 2023

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Rachel Stander

Vivian Kerr

Appendix E: Supporting Documents

ttw_communications_125474_175911.pdf

2023_HAZEL_S_GHOST_LLC_Operating_Agreement_FINAL_AMENDED.pdf

## Signatures

*Intentional misstatements or omissions of facts constitute federal criminal violations. See 18 U.S.C. 1001.*

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

SEANCE Funding Agreement February 2023

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Rachel Stander

Vivian Kerr

Appendix E: Supporting Documents

ttw_communications_125474_175911.pdf

2023_HAZEL_S_GHOST_LLC_Operating_Agreement_FINAL_AMENDED.pdf

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

Hazel's Ghost LLC

By

Vivian Kerr

Director / Writer / Actor

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Form C and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.

Rachel Stander Jones

co-manager

2/23/2023

Vivian Kerr

Director / Writer / Actor

2/23/2023

The Form C must be signed by the issuer, its principal executive officer or officers, its principal financial officer, its controller or principal accounting officer and at least a majority of the board of directors or persons performing similar functions.

I authorize Wefunder Portal to submit a Form C to the SEC based on the information I provided through this online form and my company's Wefunder profile.

As an authorized representative of the company, I appoint Wefunder Portal as the company's true and lawful representative and attorney-in-fact, in the company's name, place and stead to make, execute, sign, acknowledge, swear to and file a Form C on the company's behalf. This power of attorney is coupled with an interest and is irrevocable. The company hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of Wefunder Portal taken in good faith under or in reliance upon this power of attorney.

**Attachment 2:** `document_2.pdf`

WEFUNDER

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SÉANCE FILM

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# Back the female-led team of SÉANCE - a nuanced Gothic thriller about grief, adultery, and ghosts!

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

seancefilm.com Los Angeles CA

Female Founder Entertainment Film

OVERVIEW DETAILS UPDATES WHAT PEOPLE SAY ASK A QUESTION

# Highlights

1 SÉANCE has already completed principal photography
2 Director/Writer Vivian Kerr has pitched at HBO, HBOMax, Element Pictures, Tornante, Fabel Entertainment, and others
3 As award-winning alumni of 50+ film festivals, we have strong relationships within the industry
4 You want to support an all-female directing, writing, and producing team, and elevate female voices
5 Director/Writer Vivian Kerr has been a professional actor for 15+ years, with extensive TV credits
6 You love thoughtful psychological horror films in the vein of THE OTHERS, THE INNOCENTS, and GASLIGHT

7 Vivian Kerr's scripts have placed Top 10 in Final Draft's Big Break, and Second-Round in both Sundance & Austin

## Our Team

![img-1.jpeg](img-1.jpeg)

**Vivian Kerr** Director / Writer / Actor

Vivian Kerr is an LA-based actor, writer, producer, and director. Her debut feature, SCRAP, was a Top 10 Finalist in Final Draft's Big Break. It co-stars Anthony Rapp and Lana Parrilla and will premiere in 2022.

SEANCE allows us to build on the model of low-budget, high-quality filmmaking we established with our first feature, while moving into the genre space and setting our investors up to benefit from a marketplace that is hungry for well-made horror films.

![img-2.jpeg](img-2.jpeg)

**Rachel Stander** Producer

Rachel Stander is an independent producer working in narrative film and television. Under the banner of her production company, A Season of Rain, she is focused on cultivating and shepherding stories for the screen about challenging, complex women.

## WHO WE ARE

Meet us on Zoom! ---> https://calendly.com/seancefilm

"A Season of Rain" is a production company founded by Producer Rachel Stander in 2020.

![img-3.jpeg](img-3.jpeg)

![img-4.jpeg](img-4.jpeg)

![img-5.jpeg](img-5.jpeg)

Our first feature film, SCRAP, was successfully financed and shot in 2021:

![img-6.jpeg](img-6.jpeg)

![img-7.jpeg](img-7.jpeg)

![img-8.jpeg](img-8.jpeg)

![img-9.jpeg](img-9.jpeg)

SCRAP world premiered in competition at the prestigious Deauville American Film Festival in France in September 2022.

![img-10.jpeg](img-10.jpeg)

![img-11.jpeg](img-11.jpeg)

![img-12.jpeg](img-12.jpeg)

![img-13.jpeg](img-13.jpeg)

![img-14.jpeg](img-14.jpeg)

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Photography © Olivier Vigerte

We have built a stellar reputation in a short period of time for our professionalism and taste.

"SCRAP is a scrappy little film...beautiful cinematography and strong performances...beyond heartfelt."

- Debbie Elias, Behind the Lens

"Kerr evokes questions of femininity and motherhood...a story of redemption and reconciliation that invites us to find what is really significant in our own lives."

- Thomas Perillon, Le Bleu de Miroir

"Our favorite film in the competition..."

- Maximilien Pierrette, AlioCiné

"...an amazing, funny, and often touching film."

- Yohan Haddad, Toute La Culture

"...a Woody Allen-style American chronicle that evokes complicated subjects with lightness and humor."

- Antoine Corte, Bulles de Culture

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You can check out the trailer for SCRAP to see just what we can achieve on a low budget here:

https://youtu.be/C3WYceeErS4

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SCRAP will have its North American premiere at the Cinequest Film Festival in early March, before heading to Phoenix Film Festival for a Southwest premiere at the end of March.

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Which brings us to our second feature film...

## SÉANCE

We returned to Wefunder in 2022 with our second feature film, SÉANCE, a Victorian Gothic thriller.

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# Logline

A Victorian woman contemplating adultery is forced to take refuge from a storm at the home of her potential lover and his unstable wife, who claims to be haunted by their dead child.

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## Setting

California. The seaside. 1892.

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## The Characters

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'Emma' - A successful professional writer. Married to Albert, a slightly younger man and budding artist. Formerly married to George, on vacation with Albert by the seaside. Passionate, intelligent, a bit selfish, contemplating an affair with George.

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'Albert' - A talented, yet unknown artist; his muse is his wife, Emma, a slightly older woman who very much 'wears the pants' in the relationship and financially supports him. Intimidated by her, unable to satisfy her sexually, yet deeply in love with her, he desperately wants to fix their relationship. Slightly effeminate in appearance.

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"George" - Emma's former husband, now married to Lillian. The father of Hazel, a three-year-old girl who died several months earlier in a drowning accident. Still in love with Emma and wants to be with her. Wealthy, handsome, charismatic, a man's man.

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"Lillian" - George's wife, unable to forgive herself for the death of her daughter, Hazel. A traditional Victorian wife - pretty, delicate, still in the grieving process. Mentally unwell, a staunch believer in ghosts and spiritualism.

Tone

Mature, intelligent, psychological horror.

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"I've always loved the Impressionist painters. The characters of Emma and Albert are artists, and I'm interested in exploring how the look of SÉANCE can be influenced visually by the way artists in the late 19th century interpreted the world around them..."

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"...and it's also an exploration of marriage. What binds two people together and what tears them apart?"

-Vivian Kerr, writer/director

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The Cast

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from Harvard University

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CAST

CAST

## Connor Paolo as ALBERT

Connor is best known for his series regular roles in TV dramas GOSSIP GIRL (The CW, 2007-2012) and REVENGE (ABC, 2011-15). After appearing as younger versions of Kevin Bacon's detective Sean in Clint Eastwood's Oscar-nominated thriller MYSTIC RIVER and Colin Farrell's titular king in historical epic ALEXANDER, he then reunited with director Oliver Stone when he played Nicolas Cage's son Steven McLoughlin in disaster drama WORLD TRADE CENTER. He most recently impressed on the big screen with his performances in Tyler Shields' tale of betrayal OUTLAW and in the horror film FRIEND REQUEST.

CAST

## Jilon VanOver as GEORGE

Jilon is known to audiences for his portrayal of 'Ransom Bray' in the History Channel's Emmy Award winning miniseries, HATFIELDS & MCCOYS, as well as 'Tecton' in the Disney XD Original Series, MIGHTY MED. He recently played leading roles in the thriller DEEP WOODS and in the television movie CROWN PRINCE OF CHRISTMAS. He also recently played 'Sebastian' in 5 episodes of BETTER CALL SAUL. Other credits include AN AMISH MURDER, opposite Nece Campbell, and episodes of NCIS: LA, PSYCH, LAB RATS, and COLD CASE.

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CAST

## Vivian Kerr as LILLIAN

Vivian Kerr is an actor, writer, and director. Her first feature film, SCRAP, in which she played the lead role opposite Anthony Rupp (STAR TREK: DISCOVERY), Lana Parrilla (ONCE UPON A TIME), Beth Dover (ORANGE IS THE NEW BLACK), and Khleo Thomas (HOLES), had its world premiere at the 2022 Desauville-American Film Festival in France. Other work as an actor includes episodes of GREY'S ANATOMY, RIZZOLI & ISLES, SUPERSTORE, MASTERS OF SEX, CRIMINAL MINDS, NEW GIRL, CASTLE, FRANKLIN & BASH, and THE BOLD & THE BEAUTIFUL. She has a BA in Theatre from the University of Southern California.

Why is Horror so Successful?

Of all the scripts we could have chosen for our second feature film, SÉANCE rose to the top not only because its limited locations and cast size would allow us to produce an expensive-looking period piece for a modest budget, but also because, quite frankly, horror (or horror-adjacent) films sell really well!

WHAT THE DATA SAYS: PRODUCING LOW-BUDGET HORROR FILMS - https://americanfilmmarket.com/what-the-data-says-producing-low-budget-horror-films/
Hallowe... horror: Feeding audiences' appetites for cheap and bloody thrills - https://www2.deloitte.com/xe/en/insights/industry/technology/horror-movie-audience-statistics.html

# Comparable Films

# Independent Horror Films

| FILM | Year | Budget ($M) | Worldwide Box Office ($M) |
| --- | --- | --- | --- |
| You're Next | 2011 | $1 | $26.9 |
| It Follows | 2014 | $1 | $21.9 |
| The Visit | 2015 | $5 | $98.5 |
| Monsters | 2010 | $0.5 | $5.1 |
| As Above, So Below | 2014 | $5 | $41.9 |
| The Babadook | 2014 | $2 | $10.5 |
| It Comes at Night | 2017 | $5 | $19.7 |
| Let the Right One In | 2008 | $4 | $11.2 |

# Period Horror Films

| FILM | Year | Budget ($M) | Worldwide Box Office ($M) |
| --- | --- | --- | --- |
| Winchester | 2018 | $3.5 | $44.0 |
| The Others | 2001 | $17 | $209.9 |
| The Witch | 2015 | $4 | $40.4 |
| The Woman in Black | 2012 | $17 | $129 |
| Lady Macbeth | 2016 | $0.65 | $5.4 |

# SÉANCE's Journey Through Production

By summer 2022, we had secured the funds to go into production!

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We filmed SÉANCE over 19 days in December 2022, and are just starting post!

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We expect to premiere the film in early 2024 and have it on VOD by late 2024.

## A SNEAK PEEK AT PRODUCTION

We shot at three stunning historic homes all over Los Angeles...

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We are opening up a Round 2 on Wefunder to raise funds for additional Post-Production costs, as well as marketing and publicity so as to ensure a successful launch of the finished film.

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## The Terms

All of our current investment is under a Revenue Share Agreement, and we're offering those same terms to new investors!

Why? The film wouldn't exist without the backing of our Investors, so we want to make sure our Investors not only get a return on their Principal, but that they share in the film's profits long-term.

Once the film is in profit, each Investor first sees a return of 120% on Principal. The additional profit is split 40/60: 40% distributed to investors based on their pro-rata share, and 60% to Producers.

As Producers, we do not see any Profits under this Revenue Share Agreement until all investors have recouped their 120% of Principal. When the film succeeds, our Investors share in the rewards!

# Why Invest in SÉANCE?

We consider our Investors long-term collaborators.

We want you to be involved in the life of this film, and hopefully on our future films produced by A Season of Rain!

All of our Investors receive our regular newsletter detailing the progress on the film (only Investors get to know the inside scoop!), film festival invitations, set visits, and other perks for being part of our projects!

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# Perks!

We also want to make sure our Investors on WeFunder are rewarded for investing in SÉANCE, so we have some awesome Perks available as our way of saying THANK YOU!

Is there something you're interested in that's not available below? Email us at seancefilmofficial@gmail.com!

# $50,000+ Investment - Executive Producer

An EXECUTIVE PRODUCER credit in the end credits of the film.

+ Two tickets to the West Coast & East Coast premieres, or Regional premiere of your choice.
+ Invitation to a "cast & crew" screening in Los Angeles (travel/lodging not included).
+ A 1-hr Zoom session (acting lesson, script consultation, etc) with writer/director.
+ A script signed by the writer/director and producer.
+ A handwritten thank-you card from the Producers.

+ A shout out on SEANCE's social media (Instagram, Facebook, and Twitter).

# $20,000+ Investment - Co-Producer

A CO-PRODUCER credit in the end credits of the film.

+ Invitation to a "cast & crew" screening in Los Angeles (travel/lodging not included).
+ A 1-hr Zoom session (acting lesson, script consultation, etc) with writer/director.
+ A script signed by the writer/director and producer.
+ A handwritten thank-you card from the Producers.
+ A shout out on SEANCE's social media (Instagram, Facebook, and Twitter).

# $10,000+ Investment - Associate Producer

An ASSOCIATE PRODUCER credit in the end credits of the film.

+ A 1-hr Zoom session (acting lesson, script consultation, etc) with writer/director.
+ A script signed by the writer/director and producer.
+ A handwritten thank-you card from the Producers.
+ A shout out on SEANCE's social media (Instagram, Facebook, and Twitter).

# $5,000+ Investment - Very Special Thanks

A VERY SPECIAL THANKS credit in the end credits of the film.

+ A script signed by the writer/director and producer.
+ A handwritten thank-you card from the Producers.
+ A shout out on SEANCE's social media (Instagram, Facebook, and Twitter).

# $2,500+ Investment - Special Thanks

A SPECIAL THANKS credit in the end credits of the film.

+ A handwritten thank-you card from the Producers.
+ A shout out on SÉANCE's social media (Instagram, Facebook, and Twitter).

# $1,000+ Investment - Shout Out

A shout out on SÉANCE's social media (Instagram, Facebook, and Twitter).

# About Us

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Vivian Kerr is an LA-based actor, writer, producer, and director. In 2020, she was a Finalist in Sony Pictures TV's Rising Storytellers Search with her pilot FIVE POINTS, about the female-led gangs of 19th century New York, which was also invited into the 2021 Stowe Story Labs and selected as one of eight pilots for the 2021 Women's Weekend Film Challenge TV Pilot Accelerator.

Her feature script, SCRAP, was a Second Rounder in Sundance's Development Lab and a Top 10 Finalist in Final Draft's Big Break Screenwriting Competition. Co-starring Anthony Rapp, Lana Parrilla, Beth Dover, and Khleo Thomas, SCRAP is currently in post-production and will premiere in 2022, marking her feature film directorial debut.

Her feature script EXCHANGE placed in the Top 20% of the Nicholls Fellowship and a Top 5 Finalist in Screencraft's Action & Thriller Contest, and her pilot NEWSPAPERWOMAN was a Second-Rounder in the 2020 Austin Film Festival. She is currently in development on her pilot THE MITFORDS with Goldfinch in the UK.

As an actor, her work includes episodes of GREY'S ANATOMY, RIZZOLI & ISLES, SUPERSTORE, MASTERS OF SEX, CRIMINAL MINDS, NEW GIRL, CASTLE, FRANKLIN & BASH, and THE BOLD & THE BEAUTIFUL. She has a BA in Theatre from University of Southern California, and is repped by Authentic Talent for acting and Citizen Skull for literary.

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Rachel Stander is a producer working in narrative film and television. Her debut feature SCRAP, an intimate indie drama feature about the secrets we keep from the people who love us the most, premiered in Fall 2022. Previous work includes JULIAN, a dark comedy short film, and LYSISTRATA 2.0, a PSA-style get-out-the-vote project. Under the banner of her production company, A Season of Rain, Rachel is committed to cultivating and shepherding stories for the screen about challenging, complex women.

## Here's What People Say About Us

"Rachel is the kind of producer who can take any challenge and turn it into a win. Her attention to detail results in issues being handled before you even know there's a problem. Rachel's enthusiasm for what she does has helped my projects run smoothly, and I consider her a key and valuable collaborator."

-Kai Soremekun, Filmmaker

"I have cast Vivian in multiple sketches for Jimmy Kimmel Live! Not only is she incredibly talented, she is a versatile performer who is nothing but professional on set. Always great to work with!"

-Cecelia Pleva, Casting Director at Jimmy Kimmel Live!

"Rachel has the sensibility of an artist in her taste and selection of projects. And as a producer and leader, her attention to detail at every level of a project and organizational abilities are the top of her game. I would entrust any project to Rachel Stander and expect it to be handled with thorough care, integrity, innovation and higher standards."

-Karen Strassman, Actress / Voice Over Artist / Dialect Coach

"As Vivian's acting teacher and coach for the past six years, she is joyful, generous, serious, and successful. Vivian routinely pushes her boundaries. I have worked with hundreds of actors and Vivian stands out as one who is likely to make a major contribution to the art. I think that the late greats, Stella Adler and Sanford Meisner-with whom I had the opportunity to study-would celebrate Vivian's imagination, discipline, sensitivity, and intelligence."

-Saxon Trainor, *Acting Coach*

*“Rachel has impeccable taste and a leadership style that is calm and assured. Her strong work ethic and creative instincts elevate any project she’s involved with. She is that rare combination of creative, smart, funny, and extremely organized.”*

-Luz Beato, *Public Defense Attorney*

*“Vivian is an artist that brings depth and nuance to every character she writes or plays. Having been lucky enough to witness Vivian as an actress and a writer, she has the goods to deliver a feature film that is captivating, poignant and heartfelt.”*

-Cory Stonebrook, *Actor & Writer*

*“With her writing, acting, and directing Vivian infuses her characters with remarkable intimacy and understanding.”*

-Lauren Mora, *Actress & Producer*

*“I worked with Rachel for many years. A dependable and dedicated leader, she has always been able to see the big picture and achieve the goals of our vision and mission. She uses thoughtful discretion when needed, and beyond being a creative mastermind, she is incredibly fun and memorable to work with.”*

-Tiffany Yee, *Financial Advisor*

*“Vivian’s script reflects her gift of amazing storytelling. Her experience writing, acting, producing, and directing demonstrates that any project of hers will be successful!”*

-Mary Kate Schroeter, *Innovation Fellow, Chicago Dept of Family & Support Services*

*“Vivian is a problem solver-which is invaluable on set. Whether she is acting, directing, or producing, she can clearly and concisely see what needs to be done, and executes.”*

-Tiffany Trainer, *Actress, Producer & VO Artist*

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English

**Attachment 3:** `document_3.pdf`

## SÉANCE Film Lead Investor

Steven Clark, Associate Professor of Finance, UNC Charlotte

Here's why Steven invested $20,000:

*This is my third film investment and second with this team. Vivian and Rachel are masters of making beautiful films with recognizable talent, but on a modest budget. They're garnering attention within the independent film industry and are considered up-and-coming filmmakers to watch. As an investor in their previous film, SCRAP, I have observed them in each phase of production and even visited their sets. Vivian and Rachel are consummate professionals who are dedicated to their craft. I am confident that their high standards and artistry will be on full display in SÉANCE as well.*

**Attachment 4:** `document_4.pdf`

# Hazel's Ghost, LLC

Financial Statements

December 31, 2022 and 2021

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4401 Dominion Boulevard
Glen Allen, Virginia 23060
Tel: 804.747.0000
www.keitercpa.com

# HAZEL'S GHOST, LLC

# Table of Contents

|  | Page |
| --- | --- |
| Independent Auditor's Report | 1 |
| Financial Statements: |  |
| Balance Sheets | 3 |
| Statements of Operations | 4 |
| Statements of Changes in Members' Equity | 5 |
| Statements of Cash Flows | 6 |
| Notes to Financial Statements | 7 |

Keiter
Your Opportunity Advisors

# INDEPENDENT AUDITOR'S REPORT

To the Members
Hazel's Ghost, LLC
Los Angeles, California

# Opinion

We have audited the accompanying financial statements of Hazel's Ghost, LLC (the "Company"), which comprise the balance sheets as of December 31, 2022 and 2021, and the related statements of operations, changes in members' equity, and cash flows for the year ended December 31, 2022 and for the period from November 30, 2021 (inception) to December 31, 2021 and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Hazel's Ghost, LLC as of December 31, 2022 and 2021 and the results of its operations, members' equity, and its cash flows for the year ended December 31, 2022 and for the period from November 30, 2021 (inception) to December 31, 2021 in accordance with accounting principles generally accepted in the United States.

# Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. 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 these financial statements in accordance with accounting principles generally accepted in the United States, 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.

Certified Public
Accountants & Consultants
4401 Dominion Boulevard
Glen Allen, VA 23060
T:804.747.0000 F:804.747.3632

www.keitercpa.com

## Auditor's 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 auditor's 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, including omissions, 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.

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

- Exercise professional judgment and maintain professional skepticism throughout the audits.
- 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 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 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 audits.

February 14, 2023
Glen Allen, Virginia

# **HAZEL'S GHOST, LLC**

# Balance Sheets
December 31, 2022 and 2021

| Assets | 2022 | 2021 |
| --- | --- | --- |
| Current assets: |  |  |
| Cash | $8,828 | $ - |
| Deposits | 25,838 | - |
| Total current assets | 34,666 | - |
| Capitalized film costs | 486,211 | - |
| Total assets | $520,877 | $ - |
| Liabilities and Members' Equity |  |  |
| Current liabilities: |  |  |
| Accounts payable | $40,931 | $ - |
| Members' equity | 479,946 | - |
| Total liabilities and members' equity | $520,877 | $ - |

See accompanying notes to financial statements.

3

# **HAZEL'S GHOST, LLC**

# Statements of Operations

For the Year Ended December 31, 2022 and for the Period
from November 30, 2021 (inception) to December 31, 2021

|  | 2022 | 2021 |
| --- | --- | --- |
| Revenue | $ - | $ - |
| Operating expenses | 2,500 | - |
| Net loss | $(2,500) | $ - |

See accompanying notes to financial statements.

4

# **HAZEL'S GHOST, LLC**

Statements of Changes in Members' Equity  
 For the Year Ended December 31, 2022 and for the Period  
 from November 30, 2021 (inception) to December 31, 2021

|  | Members' Equity | Accumulated Deficit | Total |
| --- | --- | --- | --- |
| Balance, November 30, 2021 | $ - | $ - | $ - |
| Net loss | - | - | - |
| Balance, December 31, 2021 | - | - | - |
| Capital contributions | 518,750 | - | 518,750 |
| Syndication fees | (36,304) | - | (36,304) |
| Net loss | - | (2,500) | (2,500) |
| Balance, December 31, 2022 | $482,446 | $(2,500) | $479,946 |

See accompanying notes to financial statements.

5

# **HAZEL'S GHOST, LLC**

# Statements of Cash Flows  
 For the Year Ended December 31, 2022 and for the Period  
 from November 30, 2021 (inception) to December 31, 2021

|  | 2022 | 2021 |
| --- | --- | --- |
| Cash flows from operating activities: |  |  |
| Net loss | $(2,500) | $ - |
| Adjustments to reconcile net loss to net cash from operating activities: |  |  |
| Change in operating assets and liabilities: |  |  |
| Deposits | (25,838) | - |
| Capitalized film costs | (486,211) | - |
| Accounts payable | 40,931 | - |
| Net cash used in operating activities | (473,618) | - |
| Cash flows from financing activities: |  |  |
| Payments for syndication costs | (36,304) | - |
| Capital contributions | 518,750 | - |
| Net cash provided by financing activities | 482,446 | - |
| Net change in cash | 8,828 | - |
| Cash, beginning of period | - | - |
| Cash, end of period | $8,828 | $ - |

See accompanying notes to financial statements.

6

# HAZEL'S GHOST, LLC

## Notes to Financial Statements

### 1. Summary of Significant Accounting Policies:

**Nature of Business:** Hazel's Ghost, LLC (the 'Company') was formed on November 30, 2021 in the State of California. The Company was formed to produce a feature film and incur all production and operating costs in relation to the film production. Upon completion, the film will be marketed to agencies and distributors for sale. The Company did not begin operations until 2022.

**Management's Plans:** The Company's plan for the remainder of 2023 is to use the equity on hand to start Post-Production, keeping on track with the timeline for finishing the film. The Company plans to simultaneously raise additional equity to cover the remaining Post-Production costs as well as projected costs for deliverables and marketing necessary to successfully launch the finished film in market. The Company expects to premiere the film in early 2024 and work with a sales agent to secure a profitable sale of the film in 2024. If the film is sold as a complete buy-out to a distributor, once that profit has been disbursed to investors and producers according to the funding agreements, the Company intends to dissolve the SPV, Hazel's Ghost LLC, so as to incur no ongoing administrative expenses. The Company believes that by executing its strategic plan, it will enable it to continue for a reasonable period of time.

**Basis of Accounting:** The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States ('GAAP') as determined by the Financial Accounting Standards Board ('FASB') Accounting Standards Codification ('ASC').

**Use of Estimates:** The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

**Concentrations and Credit Risk:** Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company maintains its cash in one financial institution with balances that periodically exceed federally insured limits.

**Capitalized Film Costs:** The Company accounts for film costs in accordance with ASC 926 - Entertainment - Films which requires film costs and production overhead to be capitalized as incurred and subsequently amortized using the individual-film-forecast computation method. During 2022, the Company capitalized $486,211 in film and production overhead costs. No amortization has been recorded during 2022 as the film is still in the process of being produced. Amortization is expected to begin during 2023.

**Income Taxes:** The Company is treated as a partnership for federal and state income tax purposes, and its members report their respective share of the Company's taxable income or loss on their income tax returns. Accordingly, no provision or liability for income taxes has been included in the accompanying financial statements.

7

## HAZEL'S GHOST, LLC

### Notes to Financial Statements, Continued

#### 1. Summary of Significant Accounting Policies, Continued:

**Income Tax Uncertainties:** The Company follows FASB guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are 'more-likely-than-not' of being sustained 'when challenged' or 'when examined' by the applicable tax authority. Tax positions not deemed to meet the more-likely-then-not threshold would be recorded as a tax expense and liability in the current year. Management evaluated the Company's tax position and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. The Company is not currently under audit by any tax jurisdiction.

**Subsequent Events:** Management has evaluated subsequent events through February 14, 2023, the date the financial statements were available for issuance, and has determined there are no subsequent events to be reported in the accompanying financial statements.

#### 2. Members' Equity:

The Company raised $518,750 through private placement funds during 2022. Investors who contributed to the first $250,000 raised by the Company are considered 'Early Bird Investors' and receive priority distributions as defined in the funding agreement. All other investors receive distributions subordinate to the Early Bird Investors on a pro-rata basis as defined in the agreement.

8

**Attachment 5:** `document_5.pdf`

Contact

www.linkedin.com/in/rachelstander
(LinkedIn)
aseasonofrain.com/ (Company)

Top Skills

Film & TV Development
Film Production
Entertainment

# Rachel Stander

Producer at A Season of Rain
Los Angeles, California, United States

## Summary

Rachel Stander is a Los Angeles-based producer working in narrative film and television. She recently completed post-production on SCRAP, an intimate indie drama about family, shame, and the secrets we keep from the people who love us the most. Written and directed by Vivian Kerr, and starring Kerr alongside Anthony Rapp, Lana Parrilla, Beth Dover, and Khleo Thomas, SCRAP will premiere in 2022.

Next on her slate is SÉANCE, a Gothic psychological thriller set in 1890s California, and her second feature film collaboration with filmmaker Vivian Kerr. SÉANCE completed principal photography in December 2022.

Rachel's previous work highlights include JULIAN, a dark comedy short film, and LYSISTRATA 2.0, a PSA-style get-out-the-vote project. Under the banner of her production company, A Season of Rain, Rachel is committed to cultivating and shepherding stories for the screen about challenging, complex women.

Before graduating Magna Cum Laude from the University of Southern California with a degree in Theatre, Rachel studied dance at Barnard College, Columbia University, as well as at NYU's Tisch School of The Arts and Interlochen Center for the Arts.

## Experience

A Season of Rain
Producer
August 2018 - Present (4 years 7 months)
Los Angeles, CA

Creating meaningful narrative content, including the independent feature films SCRAP, which World Premiered at the 2022 Deauville-American Film Festival, and SÉANCE, which wrapped principal photography in late 2022.

Page 1 of 2

Fat Baby Pictures
Producer's Assistant
2014 - 2018 (4 years)
Los Angeles, CA

Worked with Writer/Director/Producer Stephanie Jackson during development and production of the award-winning digital series, "Does This Baby Make Me Look Fat?".

## Education

University of Southern California
Bachelor of Arts, Theatre/Theater · (2003 - 2005)

Barnard College
Coursework toward a Bachelor of Arts, Dance · (2000 - 2003)

Page 2 of 2

**Attachment 6:** `document_6.pdf`

Contact

www.linkedin.com/in/vivian-kerr
(LinkedIn)
www.imdb.com/name/nm2765658/
(Other)
viviankerr.com/ (Personal)

Top Skills

Writing
Acting
Entertainment

# Vivian Kerr

Actor & Filmmaker
Los Angeles, California, United States

## Summary

Vivian Kerr is an actor, writer, producer, and director.

Her script for SCRAP was a Top 10 Finalist in Final Draft's Big Break Screenwriting Competition, and a Second-Rounder in Sundance's Development Lab. Co-starring Anthony Rapp, Lana Parrilla, Beth Dover, and Khleo Thomas, SCRAP is her feature film debut as a writer, actor, and director, and will premiere in Fall 2022. Her next feature, SÉANCE, was recently selected for the 2022 Wscripted's Cannes Screenplay List.

In 2020, she was a Finalist in Sony Pictures TV's Rising Storytellers Search with her pilot FIVE POINTS about the female-led gangs of 19th century New York, which was also invited into the 2021 Stowe Story Labs and selected as one of eight pilots for the 2021 Women's Weekend Film Challenge TV Pilot Accelerator. Her feature script EXCHANGE placed in the Top 20% of the Nicholl Fellowship and a Top 5 Finalist in Screencraft's Action & Thriller Contest, and her pilot NEWSPAPERWOMAN was a Second-Rounder in the Austin Film Festival.

As an actor, her work includes episodes of GREY'S ANATOMY, RIZZOLI & ISLES, SUPERSTORE, MASTERS OF SEX, CRIMINAL MINDS, NEW GIRL, CASTLE, FRANKLIN & BASH, and THE BOLD & THE BEAUTIFUL. She has a BA in Theatre from the University of Southern California, during which time she spent a semester studying Shakespeare in London.

## Experience

Freelance
Actor
May 2005 - Present (17 years 10 months)

Page 1 of 2

Vivian is a professional actor in film, television, and theatre, and a member of both SAG-AFTRA and Actor's Equity. For her short film SCRAP, she was nominated for Best Actress at ten different film festivals in 2019. For her theatre work she has been nominated for an Ovation Award for Best Featured Actress in a Play, an LA Weekly Award, and a Los Angeles Drama Critics Circle Award.

## Education

University of Southern California

Bachelor of Arts - BA, Theatre

Page 2 of 2

**Attachment 7:** `document_7.pdf`

## Can you vouch for John Doe?

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Wefunder Inc. runs wefunder.com and is the parent company of Wefunder Advisors LLC and Wefunder Portal LLC. Wefunder Advisors is an exempt reporting adviser that advises SPVs used in Reg D offerings. Wefunder Portal is a funding portal (CRD #283503) that operates sections of wefunder.com where some Reg Crowdfunding offerings are made. Wefunder, Inc. operates sections of wefunder.com where some Reg A offerings are made. Wefunder, Inc. is not regulated as either a broker-dealer or funding portal and is not a member of FINRA.

Company Name is testing the waters to evaluate investor interest. No money or other consideration is being solicited; if sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and, then, only through Wefunder. Any indication of interest has no obligation or commitment of any kind.

**Attachment 8:** `document_8.pdf`

# Limited Liability Company Agreement of
Hazel's Ghost LLC
A Limited Liability Company

THIS OPERATING AGREEMENT (this "Agreement") of Hazel's Ghost LLC, (the "Company"), is executed and agreed to, for good and valuable consideration, by the undersigned members (the "Members").

# I. Formation.

A. State of Formation. This is a Limited Liability Company Operating Agreement (the "Agreement") for Hazel's Ghost LLC, a Manager-managed California limited liability Company (the "Company") formed under and pursuant to California law.
B. Operating Agreement Controls. To the extent that the rights or obligations of the Members or the Company under provisions of this Operating Agreement differ from what they would be under California law absent such a provision, this Agreement, to the extent permitted under California law, shall control.
C. Primary Business Address. The location of the primary place of business of the Company is: 655 N. Lucerne Blvd #12, Los Angeles, California, or such other location as shall be selected from time to time by the Members.
D. Registered Agent and Office. The Company's initial agent (the "Agent") for service of process is Vivian Kerr. The Agent's registered office is 655 N. Lucerne Blvd #12, Los Angeles, California. The Company may change its registered office, its registered agent, or both, upon filing a statement with the California Secretary of State.
E. No State Law Partnership. No provisions of this Agreement shall be deemed or construed to constitute a partnership (including, without limitation, a limited partnership) or joint venture, or any Member a partner or joint ventureer of or with any other Member, for any purposes other than for federal and state tax purposes.

# II. Purposes and Powers.

A. Purpose. The Company is created for the sole business purpose of developing, producing, completing, delivering, and marketing the motion picture presently entitled "Seance".

B. Powers. The Company shall have all of the powers of a limited liability Company set forth under California law.

C. Duration. The Company's term shall commence upon the filing of an Articles of Organization and all other such necessary materials with the state of California. The Company will operate until terminated as outlined in this Agreement unless:

1. A majority of the Members vote to dissolve the Company;

2. No Member of the Company exists, unless the business of the Company is continued in a manner permitted by California law;

3. It becomes unlawful for either the Members or the Company to continue in business;

4. A judicial decree is entered that dissolves the Company; or

5. Any other event results in the dissolution of the Company under federal or California law.

D. Script Rights. The formation and implementation of this Agreement is contingent upon Company raising the necessary funds as set forth in that certain Funding Agreement which is set forth as Attachment B to this Agreement and incorporated by reference as though set out at length. In the event that the necessary funds are not raised by December 31, 2022, it is expressly understood that Vivian Kerr will retain sole ownership rights of the script, and this LLC shall be dissolved.

### III. Members.

A. Members. The Members of the Company (jointly the "Members") and their Membership Interest at the time of adoption of this Agreement are as follows:

Vivian Kerr, 50%

Rachel Stander Jones, 50%

B. Initial Contribution. Each Member shall make an Initial Contribution to the Company. (The Initial Contributions of each shall be as described or defined in Attachment A, Initial Contributions of the Members. Such Contributions shall include intellectual property, time, effort, as well any initial Capital Contributions.) No Member shall be entitled to interest on their Initial Contribution. Except as expressly provided by this Agreement, or as required by law, no Member shall have any right to demand or receive the return of their Initial Contribution. Any modifications as to the signatories' respective rights as to the receipt of their initial contributions must be set forth in writing signed by all interested parties.

C. Limited Liability of the Members. Except as otherwise provided for in this Agreement or otherwise required by California law, no Member shall be personally liable for any acts, debts, liabilities or obligations of the Company beyond their respective Initial Contribution, including liability arising under a judgment, decree or order of a court. The Members shall look solely to the Company property for the return of their Initial Contribution, or value thereof, and if the Company property remaining after payment or discharge of the debts, liabilities or obligations of the Company is insufficient to return such Initial Contributions, or value thereof, no Member shall have any recourse against any other Member except as is expressly provided for by this Agreement or as otherwise allowed by law.

D. Death, Incompetency or Termination of a Member. Should a Member die, be declared incompetent, or withdraw from the Company by choice, the remaining Members will have the option to buy out that Member's Membership Interest in the Company. Should the Members agree to buy out the Membership Interest of the withdrawing Member, that Interest shall be paid for equally by the remaining Members and distributed in equal amounts to the remaining Members. The Members agree to hire an outside firm to assess the value of the Membership Interest. The Members shall equally be responsible for the cost of the outside firm. The Members will have 60 days to decide if they want to buy the Membership Interest together and disperse it equally. If all Members do not agree to buy the Membership Interest, individual Members will then have the right to buy the Membership Interest individually. If more than one Member requests to buy the remaining Membership Interest, the Membership Interest will be paid for and split equally among those Members wishing to purchase the Membership Interest. If all Members agree by unanimous vote, the Company may choose to allow a non-Member to buy the Membership Interest thereby replacing the previous

Member. If no individual Member(s) finalize a purchase agreement by 60 days, the withdrawing Member, or their estate, may dispose of their Membership Interest however they see fit, subject to the limitations in Section III (E) below. If a Member is a corporation, trust, partnership, limited liability Company or other entity and is dissolved or terminated, the powers of that Member may be exercised by its legal representative or successor. The name of the Company may be amended upon the written and unanimous vote of all Members if a Member withdraws, dies, is found incompetent or is terminated.

E. Creation or Substitution of New Members. Any Member may assign in whole or in part its Membership Interest only after granting their fellow Members the right of first refusal, as established in Section III (D) above.

1. Entire transfer. If a Member transfers all of its Membership Interest, the transferee shall be admitted to the Company as a substitute Member upon its execution of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement. Such admission shall be deemed effective immediately upon the transfer, and, simultaneously, the transferor Member shall cease to be a Member of the Company and shall have no further rights or obligations under this Agreement.

2. Partial transfer. If a Member transfers only a portion of its Membership Interest, the transferee shall be admitted to the Company as an additional Member upon its execution of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement.

3. Whether a substitute Member or an additional Member, absent the written consent of all existing Members of the Company, the transferee shall be a limited Member and possess only the percentage of the monetary rights of the transferor Member that was transferred without any voting power as a Member in the Company.

F. Member Voting.

1. Voting power. The Company's Members shall each have one Vote equal to the Vote of each other Member, regardless of the Member's share of Membership Interest in the Company.

2. Proxies. At all meetings of Members, a Member may vote in person or by proxy executed in writing by the Member or by his duly authorized attorney-in-fact. Such proxy shall be delivered to the other Members of

the Company before or at the time of the meeting. No proxy shall be valid after eleven months from the date of its execution, unless otherwise provided in the proxy.

G. Members' Duty to File Notices. The Members shall be responsible for preparation, maintenance, filing and dissemination of all necessary returns, notices, statements, reports, minutes or other information to the Internal Revenue Service, the state of California, and any other appropriate state or federal authorities or agencies. Notices shall be filed in accordance with the section titled "Notices" below. The Members may delegate this responsibility to a Manager at the Members' sole discretion.

H. Fiduciary Duties of the Members. The Members shall have no fiduciary duties whatsoever, whether to each other or to the Company, unless that Member is a Manager of the Company, in which instance they shall owe only the fiduciary duties of a Manager. No Member shall bear any liability to the Company or to other present or former Members by reason of being or having been a Member.

I. Waiver of Partition: Nature of Interest. Except as otherwise expressly provided in this Agreement, to the fullest extent permitted by law, each Member hereby irrevocably waives any right or power that such Member might have to cause the Company or any of its assets to be partitioned, to cause the appointment of a receiver for all or any portion of the assets of the Company, to compel any sale of all or any portion of the assets of the Company pursuant to any applicable law or to file a complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or termination of the Company. No Member shall have any interest in any specific assets of the Company.

J. Disclosure. All Members agree that nothing in this document shall be construed to make Members partners or to grant any interest in any other activity pursued by Members in any other projects except the one set forth in this agreement.

#### IV. Accounting and Distributions.

A. Fiscal Year. The Company's fiscal year shall end on the last day of December.

B. Records. All financial records including tax returns and financial statements will be held at the Company's primary business address or another location agreed upon by all Members and will be accessible to all Members.

C. Distributions. Distributions shall be issued on a quarterly basis, based upon the Company's fiscal year. The distribution shall not exceed the remaining net cash of the Company after making appropriate provisions for the Company's ongoing and anticipatable liabilities and expenses. Each Member shall receive a percentage of the overall distribution that matches that Member's percentage of Membership Interest in the Company.

### V. Tax Treatment Election.

The Company has not filed with the Internal Revenue Service for treatment as a corporation. Instead, the Company will be taxed as a pass-through organization. The Members may elect for the Company to be treated as a C-Corporation, S-corporation or a Partnership at any time. (Company shall disclose and define additional tax considerations in Attachment D, Tax Considerations.)

### VI. Board of Managers.

A. Creation of a Board of Managers. The Members may create a board of Managers (the "Board") consisting of Managers appointed at the sole discretion of the Members and headed by the Chairman of the Board. The Members may serve as Managers and may appoint, but are not required to appoint, a Member to serve as the Chairman. The Members may determine at any time in their sole and absolute discretion the number of Managers to constitute the Board, subject in all cases to any requirements imposed by California law. The authorized number of Managers may be increased or decreased by the Members at any time in their sole and absolute discretion, subject to California law. Each Manager elected, designated or appointed shall hold office until a successor Manager is elected and qualified or until such Manager's earlier death, resignation or removal.

B. Powers and Operation of the Board of Managers. The Board shall have the power to do any and all acts necessary, convenient or incidental to or for the furtherance of the Company's purposes described herein, including all powers, statutory or otherwise.

1. Meetings. The Board may hold meetings, both regular and special, within or outside the state of California. Regular meetings of the Board may be held without notice at such time and at such place as shall from time to time be determined by the Board. Special meetings of the Board may be called by the Chairman on not less than one day's notice to each Manager by telephone, electronic mail, facsimile, mail or any other means of communication.

i. At all meetings of the Board, a majority of the Managers shall constitute a quorum for the transaction of business and, except as otherwise provided in any other provision of this Agreement, the act of a majority of the Managers present at any meeting at which there is a quorum shall be the act of the Board. If a quorum shall not be present at any meeting of the Board, the Managers present at such meeting may adjourn the meeting until a quorum shall be present. Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting if all Managers consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board.

ii. Managers may participate in meetings of the Board by means of telephone conference or similar communications equipment that allows all persons participating in the meeting to hear each other, and such participation in a meeting shall constitute presence in person at the meeting. If all the participants are participating by telephone conference or similar communications equipment, the meeting shall be deemed to be held at the primary business address of the Company.

C. Compensation of Managers. The Board shall have the authority to fix the compensation of Managers. The Managers may be paid their expenses, if any, of attendance at meetings of the Board, which may be a fixed sum for attendance at each meeting of the Board or a stated salary as Manager. No such payment shall preclude any Manager from serving the Company in any other capacity and receiving compensation therefor.

D. Removal of Managers. Unless otherwise restricted by law, any Manager or the entire Board may be removed, with or without cause, by the Members, and any vacancy caused by any such removal may be filled by action of the Members.

E. Managers as Agents. To the extent of their powers set forth in this Agreement, the Managers are agents of the Company for the purpose of the Company's business, and the actions of the Managers taken in accordance with such powers set forth in this Agreement shall bind the Company. Except as provided in this Agreement, no Manager may bind the Company.

F. No Power to Dissolve the Company. Notwithstanding any other provision of this Agreement to the contrary or any provision of law that otherwise so empowers the Board, none of the Board shall be authorized or empowered, nor shall they permit the Company, without the affirmative vote of the Members, to institute proceedings to have the Company be adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against the Company or file a petition seeking, or consent to, reorganization or relief with respect to the Company under any applicable federal or state law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee (or other similar official) of the Company or a substantial part of its property, or make any assignment for the benefit of creditors of the Company, or admit in writing the Company's inability to pay its debts generally as they become due, or, to the fullest extent permitted by law, take action in furtherance of any such action.

G. Duties of the Board. The Board and the Members shall cause the Company to do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights (charter and statutory) and franchises. The Board also shall cause the Company to:

1. Maintain its own books, records, accounts, financial statements, stationery, invoices, checks and other limited liability Company documents and bank accounts separate from any other person;
2. At all times hold itself out as being a legal entity separate from the Members and any other person and conduct its business in its own name;
3. File its own tax returns, if any, as may be required under applicable law, and pay any taxes required to be paid under applicable law;
4. Not commingle its assets with assets of the Members or any other person, and separately identify, maintain and segregate all Company assets;

5. Pay its own liabilities only out of its own funds, except with respect to organizational expenses;
6. Maintain an arm's length relationship with the Members, and, with respect to all business transactions entered into by the Company with the Members, require that the terms and conditions of such transactions (including the terms relating to the amounts paid thereunder) are the same as would be generally available in comparable business transactions if such transactions were with a person that was not a Member;
7. Pay the salaries of its own employees, if any, out of its own funds and maintain a sufficient number of employees in light of its contemplated business operations;
8. Not guarantee or become obligated for the debts of any other person or hold out its credit as being available to satisfy the obligations of others;
9. Allocate fairly and reasonably any overhead for shared office space;
10. Not pledge its assets for the benefit of any other person or make any loans or advances to any person;
11. Correct any known misunderstanding regarding its separate identity;
12. Maintain adequate capital in light of its contemplated business purposes;
13. Cause its Board to meet or act pursuant to written consent and keep minutes of such meetings and actions and observe all other California limited liability Company formalities;
14. Make any permitted investments directly or through brokers engaged and paid by the Company or its agents;
15. Not require any obligations or securities of the Members; and
16. Observe all other limited liability formalities.

Failure of the Board to comply with any of the foregoing covenants shall not affect the status of the Company as a separate legal entity or the limited liability of the Members.

H. Prohibited Actions of the Board. Notwithstanding any other provision of this Agreement to the contrary or any provision of law that otherwise so empowers the Board, none of the Board on behalf of the Company, shall, without the unanimous approval of the Board, do any of the following:

1. Guarantee any obligation of any person;
2. Engage, directly or indirectly, in any business or activity other than as required or permitted to be performed pursuant to the Company's Purpose as described in Section II (A) above; or
3. Incur, create or assume any indebtedness other than as required or permitted to be performed pursuant to the Company's Purpose as described in Section II (A) above.

I. Manager Election. The Members hereby elect Rachel Stander Jones and Vivian Kerr as the Managers of the Company. The Managers shall be responsible for the day-to-day running of the operations and affairs of the Company; shall have such powers as are usually exercised by senior officers of California limited liability companies; and shall have the authority to bind the Company through the exercise of such powers subject to, and to the extent consistent with, the terms of this Agreement.

# VII. Fiduciary Duties of the Board.

A. Loyalty and Care. Except to the extent otherwise provided herein, each Manager shall have a fiduciary duty of loyalty and care similar to that of Managers of business corporations organized under the laws of California.
B. Competition with the Company. The Managers shall refrain from dealing with the Company in the conduct of the Company's business as or on behalf of a party having an interest adverse to the Company unless a majority, by individual vote, of the Board of Managers excluding the interested Manager, consents thereto. The Managers shall refrain from competing with the Company in the conduct of the Company's business unless a majority, by individual vote, of the Board of Managers excluding the interested Manager, consents thereto.
C. Duties Only to the Company. The Manager's fiduciary duties of loyalty and care are to the Company and not to the other Managers. The Managers shall

owe fiduciary duties of disclosure, good faith and fair dealing to the Company and to the other Managers. A Manager who so performs their duties shall not have any liability by reason of being or having been a Manager.

D. Reliance on Reports. In discharging the Manager's duties, a Manager is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by any of the following:

1. One or more Members, Managers, or employees of the Company whom the Manager reasonably believes to be reliable and competent in the matters presented.
2. Legal counsel, public accountants, or other persons as to matters the Manager reasonably believes are within the persons' professional or expert competence.
3. A committee of Members or Managers of which the affected Manager is not a participant, if the Manager reasonably believes the committee merits confidence.

### VIII. Dissolution and Liquidation.

A. Limits on Dissolution. The Company shall have a perpetual existence, and shall be dissolved, and its affairs shall be wound up only upon the provisions established in Section II (C) above.

Notwithstanding any other provision of this Agreement, the Bankruptcy of any Member shall not cause such Member to cease to be a Member of the Company and upon the occurrence of such an event, the business of the Company shall continue without dissolution.

Each Member waives any right that it may have to agree in writing to dissolve the Company upon the Bankruptcy of any Member or the occurrence of any event that causes any Member to cease to be a Member of the Company.

B. Winding Up. Upon the occurrence of any event specified in Section II(C), the Company shall continue solely for the purpose of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors. One or more Members, selected by the remaining Members, shall be

responsible for overseeing the winding up and liquidation of the Company, shall take full account of the liabilities of the Company and its assets, shall either cause its assets to be distributed as provided under this Agreement or sold, and if sold as promptly as is consistent with obtaining the fair market value thereof, shall cause the proceeds therefrom, to the extent sufficient therefor, to be applied and distributed as provided under this Agreement.

C. Distributions in Kind. Any non-cash asset distributed to one or more Members in liquidation of the Company shall first be valued at its fair market value (net of any liability secured by such asset that such Member assumes or takes subject to) to determine the profits or losses that would have resulted if such asset were sold for such value, such profit or loss shall then be allocated as provided under this Agreement. The fair market value of such asset shall be determined by the Members or, if any Member objects, by an independent appraiser (any such appraiser must be recognized as an expert in valuing the type of asset involved) approved by the Members.
D. Termination. The Company shall terminate when (i) all of the assets of the Company, after payment of or due provision for all debts, liabilities and obligations of the Company, shall have been distributed to the Members in the manner provided for under this Agreement and (ii) the Company's registration with the state of California shall have been canceled in the manner required by California law.
E. Accounting. Within a reasonable time after complete liquidation, the Company shall furnish the Members with a statement which shall set forth the assets and liabilities of the Company as at the date of dissolution and the proceeds and expenses of the disposition thereof.
F. Limitations on Payments Made in Dissolution. Except as otherwise specifically provided in this Agreement, each Member shall only be entitled to look solely to the assets of the Company for the return of its Initial Contribution and shall have no recourse for its Initial Contribution and/or share of profits (upon dissolution or otherwise) against any other Member.
G. Notice to California Authorities. Upon the winding up of the Company, the Member with the highest percentage of Membership Interest in the Company shall be responsible for the filing of all appropriate notices of dissolution with California and any other appropriate state or federal authorities or agencies as may be required by law. In the event that two or more Members have equally high percentages of Membership Interest in the Company, the Member with

the longest continuous tenure as a Member of the Company shall be responsible for the filing of such notices.

### IX. Exculpation and Indemnification.

A. No Member, Manager, employee or agent of the Company and no employee, agent or affiliate of a Member (collectively, the "Covered Persons") shall be liable to the Company or any other person who has an interest in or claim against the Company for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person's gross negligence or willful misconduct.

B. To the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement. Expenses, including legal fees, incurred by a Covered Person defending any claim, demand, action, suit or proceeding shall be paid by the Company. The Covered Person shall be liable to repay such amount if it is determined that the Covered Person is not entitled to be indemnified as authorized in this Agreement. No Covered Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Covered Person by reason of such Covered Person's gross negligence or willful misconduct with respect to such acts or omissions. Any indemnity under this Agreement shall be provided out of and to the extent of Company assets only.

C. A Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any person as to matters the Covered Person reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, or any other facts pertinent

to the existence and amount of assets from which distributions to the Members might properly be paid.

D. To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the Company or to any other Covered Person, a Covered Person acting under this Agreement shall not be liable to the Company or to any other Covered Person for its good faith reliance on the provisions of this Agreement. The provisions of the Agreement, to the extent that they restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the Members to replace such other duties and liabilities of such Covered Person.
E. The foregoing provisions of this Article IX shall survive any termination of this Agreement.
F. Managers disclose and define all currently known or anticipated risks to Investors in regards to investment in the Company in Attachment C, Risk Factors.

# X. Insurance.

The Company shall have the power to purchase and maintain insurance, including insurance on behalf of any Covered Person against any liability asserted against such person and incurred by such Covered Person in any such capacity, or arising out of such Covered Person's status as an agent of the Company, whether or not the Company would have the power to indemnify such person against such liability under the provisions of Article IX or under applicable law. This is separate and apart from any business insurance that may be required as part of the business in which the Company is engaged.

# XI. Settling Disputes.

All Members agree to enter into mediation before filing suit against any other Member or the Company for any dispute arising from this Agreement or Company. Members agree to attend one session of mediation before filing suit. If any Member does not attend mediation, or the dispute is not settled after one session of mediation, the Members are free to file suit. Any law suits will be under the jurisdiction of the state of California.

# XII. Independent Counsel.

All Members entering into this Agreement have been advised of their right to seek the advice of independent legal counsel before signing this Agreement. All Members and each of them have entered into this Agreement freely and voluntarily and without any coercion or duress.

# XIII. General Provisions.

A. Notices. All notices, offers or other communications required or permitted to be given pursuant to this Agreement shall be in writing and may be personally served or sent by United States mail and shall be deemed to have been given when delivered in person or three (3) business days after deposit in United States mail, registered or certified, postage prepaid, and properly addressed, by or to the appropriate party.
B. Number of Days. In computing the number of days (other than business days) for purposes of this Agreement, all days shall be counted, including Saturdays, Sundays and holidays; provided, however, that if the final day of any time period falls on a Saturday, Sunday or holiday on which national banks are or may elect to be closed, then the final day shall be deemed to be the next day which is not a Saturday, Sunday or such holiday.
C. Execution of Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which shall together constitute one and the same instrument.
D. Severability. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.
E. Headings. The Article and Section headings in this Agreement are for convenience and they form no part of this Agreement and shall not affect its interpretation.
F. Controlling Law. This Agreement shall be governed by and construed in all respects in accordance with the laws of the state of California (without regard to conflicts of law principles thereof).

G. Application of California Law. Any matter not specifically covered by a provision of this Agreement shall be governed by the applicable provisions of California law.

H. Amendment. This Agreement may be amended only by written consent of the Board and the Member. Upon obtaining the approval of any such amendment, supplement or restatement as to the Certificate, the Company shall cause a Certificate of Amendment or Amended and Restated Certificate to be prepared, executed and filed in accordance with California law.

I. Entire Agreement. This Agreement contains the entire understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained.

IN WITNESS WHEREOF, the Members have executed and agreed to this Limited Liability Company Operating Agreement, which shall be effective as of November 28, 2021.

This LLC Operating Agreement is executed and agreed to by:

Vivian Kerr

**Date:** November 28, 2021

Rachel Stander Jones

**Date:** November 28, 2021

# ATTACHMENT A

# INITIAL CONTRIBUTIONS OF THE MEMBERS

The Initial Contributions of the Members of Hazel's Ghost LLC are as follows:

Vivian Kerr

Contribution:

Vivian Kerr will be contributing intellectual property as the writer of this film.
Vivian Kerr will be contributing time and effort as a writer, director, producer, and
actor in this film.

Rachel Stander Jones

Contribution:

Rachel Stander Jones will be contributing time and effort as a producer of this film.

# ATTACHMENT B

# FUNDING AGREEMENT

This Agreement (the "Agreement") is made and entered into as of [EFFECTIVE DATE] (the "Effective Date") by and between Hazel's Ghost LLC (hereinafter "Company") on the one hand and [INVESTOR NAME] (hereinafter "Investor") on the other hand, in connection with Investor's provision of funds to Company for the purpose of producing, completing, delivering, and marketing the motion picture presently entitled "Seance" (the "Picture").

For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Investor and Company (each a "Party," and collectively, the "Parties") agree as follows:

# I. Investor Funds.

A. Subject to the terms and conditions of this Agreement and the information set forth in the disclosures outlined on WeFunder, Investor agrees to provide Company with the dollar amount of funds (Investment Amount) set forth on the signature page of this Agreement (the "Investor Funds"), which Investor Funds will be applied toward the production of, and, if funds remain, the marketing and distribution of, the Picture.
B. Investors that contribute to the first $250,000 of Investor Funds (the "Early Bird Investor Funds") to the offering contemplated by this Agreement (the "Offering") will be designated as ("Early Bird Investors").
C. Company will be responsible for securing the remainder of the budget for the Picture from additional equity financing contributions (the "Additional Equity Funds") and other sources (e.g., crowdfunding revenues, loans, etc.) (together, the "Additional Funds") from third party equity Investors (the "Additional Equity Investors") and other sources (together, the "Additional Investors").
D. Investor understands that his/her/its contribution shall only be provided and/or required upon Company having obtained all the necessary funding for the purpose of producing, completing, delivering, and marketing the Picture. If Company cannot, for any reason, obtain the necessary funding, Investor's contribution shall not be required and Investor shall have no interest whatsoever in the Picture now or in the future. Company shall have the sole discretion to determine if it has obtained the necessary funding.

# II. Adjusted Gross Proceeds.

A. Adjusted Gross Proceeds (as defined in Paragraph C below) shall be allocated as follows:

1. First, one hundred percent (100%) of Adjusted Gross Proceeds shall be paid to Early Bird Investor, Investor, and the Additional Equity Investors on a pro rata (based on the ratio that their respective financing contributions bears to the aggregate of the Early Bird Investor Funds, Investor Funds, and the Additional Equity Funds) and pari passu basis until such time, if ever, as the Early Bird Investor has received an amount equal to one hundred twenty five percent (125%) of Early Bird Investor Funds and the Investor has received an amount equal to one hundred twenty percent (120%) of the Investor Funds, and the Additional Equity Investors have received an amount equal to one hundred twenty percent (120%) of the Additional Equity Funds; and

2. following such time, if ever, as Early Bird Investor has recouped an amount equal to one hundred twenty five percent (125%) of the Early Bird Investor Funds and Investor has recouped an amount equal to one hundred twenty percent (120%) of Investor Funds and the Additional Equity Investors have recouped an amount equal to one hundred twenty percent (120%) of the Additional Equity Funds, then any remaining Adjusted Gross Proceeds shall be referred to as “Net Profits”, and shall be paid as follows: (a) sixty percent (60%) to Company (“Company’s Net Profits”); and (b) forty percent (40%), in the aggregate, to Early Bird Investors, Investors, and the Additional Equity Investors on a pro rata (based on the ratio that their respective financing contributions bears to the aggregate of the Early Bird Investor Funds, Investor Funds, the Additional Equity Funds and the Filmmaker Funds (as defined below)) and pari passu basis. All third-party participations in Net Profits (other than those payable to Additional Investors or those that constitute expenses as further described below) shall be borne out of Company’s share of Net Profits.

i. “Filmmaker Funds” is defined as all the additional funds required to produce and market the Picture in addition to Early Bird Investor Funds, Investor Funds, and the Additional Equity Funds, e.g. loans, advances, minimum guarantees, etc.

3. The 40% distribution split assumes that the Early Bird Investors, Investors, and Additional Investors contribute the entire budget of the Picture to the Company. To the extent that they contribute less than the entire budget, the 40% distribution split shall be adjusted on a pro rata basis. For purposes of clarity and by way of example, if $800,000 of a $1 million budget is raised by the Early Bird Investors, Investors, and Additional Equity Investors, that would equal 80% of the $1M, which would result in them receiving 80% of the 40% split, or 32% of the Net Profits.

B. As used herein, "Gross Proceeds" shall mean any and all amounts, including nonrefundable advances, received by Company from the exploitation of the Picture and all elements thereof and all rights therein, in any and all manner and media, now known or hereafter devised, worldwide, in perpetuity, notwithstanding anything to the contrary contained in this Agreement:

1. if a distributor(s) of the Picture pays for the costs of deliverables, such amounts shall not be included in Gross Proceeds;
2. any amounts used to fund production costs of the Picture shall not be included in Gross Proceeds;
3. any advance received from a record Company in connection with a soundtrack album for the Picture shall be included in Gross Proceeds only to the extent that such advance is not used to pay music or other production costs; and
4. tax credits or other tax incentives received in connection with the production of the Picture shall be included in Gross Proceeds only to the extent not used to repay financiers providing financing secured by such tax credits or incentives or used to directly fund production costs of the Picture.

C. "Adjusted Gross Proceeds" shall mean Gross Proceeds remaining after deduction of the following:

1. third party sales agent and producer representative fees and expenses;
2. actual, third party, out of pocket amounts incurred by or on behalf of Company in connection with the sale, marketing, licensing, delivery, distribution and/or exploitation of the Picture;
3. ongoing third party accounting costs and expenses actually incurred by or on behalf of Company in connection with the processing of payments to profit participants (including, without limitation, collection agent fees and expenses), and audit costs;
4. actual, third party, out of pocket expenses incurred by or on behalf of Company in connection with the ongoing ownership of the Picture (e.g., costs incurred in connection with the preservation and storage of negatives and master prints and digital storage of the Picture and any expenses incurred in connection with the copyrighting of the Picture);

1. 5. actual, third party, out of pocket expenses incurred in connection with the existence and management of Company (e.g., taxes, accounting fees, filing fees, etc.);
2. 6. any residual and/or pension, health and welfare payments paid to unions, guilds, or their members in accordance with the agreements between Company and the applicable guild with respect to the Picture (to the extent not assumed by the distributor(s) of the Picture);
3. 7. any amounts required to be withheld by law
4. 8. payments pursuant to music licensing 'step' deals which require additional payments based on the performance of the Picture;
5. 9. any actual, third party, out of pocket costs incurred by or on behalf of Company or its affiliates in connection with enforcement of Company's rights in the Picture, including, without limitation, actual, direct, out-of-pocket accounting, legal and auditor fees and expenses;
6. 10. any amounts used to repay loans received in connection with the production of the Picture;
7. 11. any deferred compensation and bonuses (e.g., box office bonuses, award bonuses,) payable to parties rendering services in connection with the Picture (to the extent not assumed by the distributor(s) of the Picture);
8. 12. any amounts paid to the completion guarantor of the Picture (if any) in repayment of sums advanced by such completion guarantor; and
9. 13. any reasonable reserve amounts, as determined by Company in its good faith business judgment, required to cover anticipated future costs or liabilities, provided that such reserve amounts shall be liquidated every twelve (12) months.

It is understood that Company makes no representations or warranties as to the amount of Gross Proceeds, if any, that Company will receive from the exploitation of the Picture.

### III. Auditing.

At any point following closure of this offering, or commencement of principal photography if earlier, Investor may request in writing an audit of Company's accounts for

the Picture. Such audit would be at the Investor's expense, shall require at least fourteen (14) days' written notice, and the Company shall fully cooperate with the Investor's auditor.

# IV. Credit.

If Investor invests at least [ $30,000 ] it shall receive an "Executive Producer" credit in the end credits; such screen credits shall be in a size of type, placement, font, and all other aspects to be determined by Company. Any inadvertent failure or omission as to credit shall not constitute a breach of this Agreement.

If Investor invests at least [ $20,000 ] it shall receive an "Co-Producer" credit in the end credits; such screen credits shall be in a size of type, placement, font, and all other aspects to be determined by Company. Any inadvertent failure or omission as to credit shall not constitute a breach of this Agreement.

If Investor invests at least [ $10,000 ] it shall receive an "Associate Producer" credit in the end credits; such screen credits shall be in a size of type, placement, font, and all other aspects to be determined by Company. Any inadvertent failure or omission as to credit shall not constitute a breach of this Agreement.

# V. Screening.

If Investor invests at least [ $20,000 ], an invitation to attend a 'cast and crew' screening, if any, of the Picture, as selected by Company, will be extended to Investor. Investor shall be solely responsible for any travel and other expenses related to such attendance.

# VI. Warranties and Representations; Intellectual Property.

Investor hereby warrants and represents to Company that Investor has the complete authority and power to enter into this Agreement. Investor acknowledges that it (or he/she) has received any and all material information related to the Picture, this investment, the entertainment industry, and how Company intends to generate revenue, and the expenses it expects to incur related hereto, and the risks of this investment, and Company has answered any and all questions Investor may have had; Investor acknowledges that it might not recoup part or all of its Investment. Investor acknowledges that all securities-related laws and regulations have been complied with by Company and its personnel, and Investor shall make no claim inconsistent with this acknowledgment. Investor acknowledges that it shall not be deemed as possessing or acquiring any interest in the copyright, trademark, or other rights in or to the Picture in any of its versions, including

any works derived therefrom, or the titles, loglines, treatments, screenplays, characters, plot, dialogue, themes, visuals, 'world' or 'universe', or other elements of the foregoing. Nor shall Investor be deemed as acquiring any shares, membership units, or other ownership interest in Company as an entity, except by separate agreement (such as an LLC Operating Agreement) executed by Investor and Company's authorized signatory.

## VII. Risk of Investment.

Investor acknowledges the following: (i) there can be no assurance that any Additional Funds will or will not be obtained; (ii) there can be no assurance that the Picture will be completed or that if completed the Picture will be released or distributed; (iii) there can be no assurance that the Picture will generate any revenues (including without limitation Gross Proceeds) or that any such revenues will be sufficient to return to Investor all or any part of the Investor Funds; (iv) investments in the motion picture industry involve a high degree of risk; and (v) the Investor has been advised to consult with his own advisor regarding legal matters and tax consequences involving this investment.

## VIII. Assignment.

Investor shall have no right to assign this Agreement or any part hereof, and acknowledges that this investment is not being done for purposes of resale; Investor acknowledges that any sale or other transfer of or related to this investment or Agreement may not be permitted under applicable securities regulations. Company shall have the right to assign this Agreement or any part hereof, however, any such assignment shall be made specifically subject to the terms and conditions and obligations of this Agreement.

## IX. No Equitable Relief.

In the event of a breach of this Agreement by Company, the rights and remedies of Investor shall be limited to the right to recover monetary damages, if any, in an action at law and in no event shall Investor be entitled to enjoin or restrain the production or distribution or exhibition of the Picture or any element thereof, or the use, publication, or dissemination of any advertising or marketing issued in connection therewith, and Investor irrevocably waives any right to equitable or injunctive relief.

## X. Indemnification.

Investor shall indemnify and hold harmless Company and the parents, affiliates, and subsidiary companies thereof, and the successors, licensees, and assigns thereof, and their

respective directors, Managers, employees, agents, personnel, shareholders, owners, representatives, from all third party claims, liabilities, damages, costs and reasonable legal fees arising from any breach or alleged breach of any warranty, representation or agreement made by Investor.

# XI. Agreement.

This Agreement shall be governed by and construed in accordance with the laws of the State of California. The parties agree and consent that the jurisdiction and venue of all matters relating to this Agreement will be vested exclusively in the federal, state and local courts within the State of California. This Agreement contains the entire understanding of the Parties relating to the subject matter herein, and supersedes all other agreements between the Parties whether written or oral relating thereto, and may not be modified or amended except by written instrument executed by both of the parties hereto. A waiver by either Party of any provision of this Agreement in any instance shall not be deemed to waive such provision for the future. All remedies, rights, undertakings, and obligations contained in this Agreement shall be cumulative and none of them shall be in limitation of any other remedy, right, undertaking, or obligation of either Party. Should any provision of this Agreement be determined to be void or voidable, it shall be curtailed only to the extent of such voidness or voidability, and shall otherwise not affect the validity of that provision or any other provision of this Agreement. Investor specifically acknowledges that acceptance of this investment is at the sole and absolute discretion of Company, and there shall not be deemed to be any agreement between Investor and Company unless and until this Agreement is countersigned by Company.

# XII. Settling Disputes.

All Parties agree to enter into mediation before filing suit against each other for any dispute arising from this Agreement. Parties agree to attend one session of mediation before filing suit. If the dispute is not settled by mediation, the Parties are free to file suit. Any law suits will be under the jurisdiction of the State of California, and subject to the laws of the state of California. The venue shall be in the County of Los Angeles, California.

[End of Page]

IN WITNESS WHEREOF, the parties have executed this agreement as of [EFFECTIVE DATE].

Investment Amount: $[AMOUNT]

Company:

Hazel's Ghost LLC

Founder Signature

Name: [FOUNDER NAME]

Title: [FOUNDER TITLE]

Investor:

[ENTITY NAME]

By: Investor Signature

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

Read and Approved (For IRA Use Only):

By: _________________________

The Investor is an “accredited Investor” as that term is defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act.

Please indicate Yes or No by checking the appropriate box:

☐ Accredited

☐ Not Accredited

# ATTACHMENT C

# Risk Factors

Making a subscription to the Company involves various risks relating both to the nature of the management of Company and the movie industry itself and such subscription is therefore suitable only for persons or entities with the financial capability of making and holding long-term investments who have no need for liquidity in this investment. Therefore, in addition to the matters set forth elsewhere in the agreement, prospective Investors should consider the following factors:

# A. Company-Related Risks

1. Reliance on Management - Except as set forth in this agreement, decisions with respect to the management of Company will be made by the Managers in the Managers' sole discretion. The success of the picture will largely depend on the quality of the management of the Company. The Managers, with the advice and assistance of other professionals, will administer all business aspects of the Managers, the Company, and the picture. Although the Managers believe that the Managers have the necessary business and motion picture experience to supervise the management of the Company, there can be no assurance that the Managers will perform adequately or that the Company's operations will be successful. Purchasers of interests will receive an economic interest in the Company, but shall not be participants in the management or the operations of the Managers, the Company, or the picture. Accordingly, except as otherwise set forth in this agreement, an Investor will have no right to vote on, or to veto actions of the Managers, will have no creative control, and Manager-approved actions may be approved despite the Investor's dissent from such actions.
2. Limited Operating History - The Company has been in existence for a very short period of time, and is subject to all the risks incident to the creation and development of a new business, including the absence of a history of operations and minimal net worth. Furthermore, the Company has not produced or distributed a full-length motion picture. The Company and the Managers have, and will continue to, endeavor to employ or otherwise retain the services of those persons with the skills necessary to successfully produce and distribute a full-length feature film, but no assurances can be given that they will be successful in these efforts.
3. Managers' Conflicts of Interest - The Managers are not required to render exclusive services in connection with the picture or the Company. The Managers, the production team and the talent have interests in a variety of activities other than acting as Managers to the Company, including involvement with the production of other films. In addition, the

Managers, the production team and the talent may organize companies that are similar to the Company in the future. The Managers may be principals in, or have profit interest in, the Company. Accordingly, conflicts of interest may arise in the allocation of the Managers', the production team's and/or the talent's time between the Company and one or more of these other activities. Additionally, the Managers may enter into services agreements with the Company. The terms of such agreement may not be the result of an arms-length transaction, but be considered to be equal to, or less than, industry standards for the associated services rendered to the Company.

4. Indemnification - Under certain circumstances set forth specifically in Article IX of the operating agreement, the Managers will be indemnified by the Company for any liabilities or losses arising out of the Managers' activities in connection with the Company. Indemnification under such provision could reduce or deplete the assets of the Company.
5. Working Capital requirements and the potential need for additional financing - There is no assurance that unforeseen events will not occur, resulting in the need to raise additional funds beyond what the Company and the Managers project. Furthermore, companies with limited operating histories, such as the Company and the Managers, do not always use capital in the most efficient manner thus, the Company and the Managers may need to raise additional capital to fund future operations and to satisfy future capital requirements of the Company. The failure to raise any additional needed funds could have a material adverse effect on the Company and the Managers. In addition, it is anticipated that raising additional funds will result in additional dilution of each Investor's equity investment. Subject to the terms of the agreement, though the Company and the Managers do not anticipate that additional financing will need to be obtained, there can be no assurance that additional capital will not be needed.
6. Loss on Dissolution or Termination - In the event of a dissolution or termination of the Company, the proceeds realized in the liquidation of assets, if any, will be distributed to the members only after the satisfaction of claims of creditors. Accordingly, the ability of a member to recover all or any portion of his or her or its investment under such circumstances will depend on the amount of funds so realized and the amount of claims to be satisfied therefrom.
7. Income tax consequences - There are various risks associated with the federal income tax aspects of an investment in the Company which should be carefully considered by each prospective Investor to determine whether an investment in the Company is suitable for such prospective Investor. Each prospective Investor is urged to consult his or her or its own tax

advisor with respect to the federal (as well as state and local) income tax consequences of an investment in the Company.

# B. Movie Industry Risks

1. Competitive Industry - Some segments of the motion picture industry are highly competitive. The Company will be competing with the producers of other films in arranging for distribution in all available markets and media. In the distribution phase, competition will limit the availability of such markets and media required for the successful distribution of the picture. The picture will be competing directly with other motion pictures and indirectly with other forms of public entertainment. The Company will compete with numerous larger motion picture production companies and distribution companies, which have substantially greater resources, larger and more experienced production and distribution staffs, and established histories of successful production and distribution of motion pictures.
2. Commercial Success - The picture's success is primarily dependent on audience acceptance of the picture, which is extremely difficult to predict and, therefore, inherently risky. Many films are produced each year and never released. Many films are released each year, which are not commercially successful and fail to recoup their production costs from United States theatrical distribution. Foreign and ancillary markets have therefore become increasingly important. Licensing of a motion picture in the ancillary markets is particularly dependent upon performance in domestic theatrical distribution.

Neither the Managers nor the Company can predict the economic success of the picture because the revenue derived from the distribution of a motion picture (which does not necessarily bear any correlation to the production or distribution costs incurred) depends primarily upon its acceptance by the public, which cannot be accurately predicted. The economic success of a motion picture also depends upon the public's acceptance of competing films, 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. Neither the Managers nor the Company can assure Investors that the picture will generate enough revenue to offset its distribution and marketing costs, in which case the Company would not receive any net revenues for the picture.

3. Production - Particularly as produced by independent filmmakers, each motion picture is a separate business venture with its own management, employees and equipment and its own budgetary requirements. There are substantial risks associated with film production, including death or disability of key personnel, other factors causing delays, destruction or

malfunction of sets or equipment, the inability of production personnel to comply with budgetary or scheduling requirements and physical destruction or damage to the picture itself. Although some of these problems may be covered by Company's insurance for the picture, significant difficulties such as these may materially increase the cost of production or may cause the entire project to be abandoned.

4. Dependence on Key Personnel - The Company's future success depends, in significant part, upon the continued service of the individuals that constitute the production team and the Managers' advisors. Neither the Company nor the Managers maintains key person life insurance for any team member or employee. Furthermore, the Company's and the Managers' success is dependent on the ability of the Company and the Managers to attract top talent, both within the production team and the cast of the picture. The Company's and the Managers' inability to attract such talent or the loss of the services of one or more members of the production team could have a material adverse effect on the Company's and the Managers' ability to successfully produce and distribute the picture. Additionally, the Company may elect to forego the purchase of a completion bond or other types of production related insurance for the picture, resulting in certain losses relating to any of the picture's key personnel, equipment, locations and/or film footage being uninsured which could have a material adverse effect on the Company's and the Managers' ability to successfully produce and distribute the picture.
5. Labor Disputes - There is no assurance that labor difficulties affecting production will not arise, including but not limited to union strikes. If such labor difficulties arise, film production and, hence, return to investing members could be delayed or diminished.
6. Audience Appeal - The ultimate profitability of any motion picture depends upon its audience appeal in relation to the cost of its production and distribution. The audience appeal of a given motion picture depends, among other things, on unpredictable critical reviews and changing public tastes and such appeal cannot be anticipated with certainty.
7. Cost Overruns - The costs of producing motion pictures are often underestimated and may be increased by reason of factors beyond the control of the producers. Such factors may include weather conditions, illness of technical and artistic personnel, artistic requirements, labor disputes, governmental regulations, equipment breakdowns, and other production disruptions. While the Company intends to engage production personnel who have demonstrated an ability to complete films within the assigned budget, the risk of a film running over budget or of not being completed is always significant and may have a substantial adverse impact on the profitability of the picture.

8. **Distribution** - The profitable distribution of a motion picture depends in large part on the availability of one or more capable and efficient distributors who are able to arrange for appropriate advertising and promotion, proper release dates and bookings in first-run and other theaters. There can be no assurance that profitable distribution arrangements will be obtained for the picture or that the picture can or will be distributed profitably or that the picture will be distributed at all.

9. **Long-term project** - The production and distribution of a motion picture involves the passage of a significant amount of time. Pre-production on a picture may extend for two to three months or more. Principal photography may extend for several weeks or more. Post-production may extend for three to four months or more. Distribution and exhibition of motion pictures generally and of the picture may continue for years before gross proceeds or net proceeds (as defined herein) may be generated, if at all.

10. **Foreign Distribution** - Foreign distribution of a motion picture (i.e., outside the United States and Canada) may require the use of various foreign distributors. Some foreign countries may impose government regulations on the distribution of films. In addition, revenues derived from the distribution of the picture in foreign countries, if any, may be subject to currency controls and other restrictions, which may temporarily or permanently prevent the inclusion of such revenue in gross proceeds.

11. **Investing members last in line** - A motion picture typically goes from the producer to the distributor who in turn may send it to territorial sub-distributors, who send it to theatrical exhibitors. The box office receipts generated by a motion picture travel this same route in reverse. The exhibitor takes a cut and sends the balance to the sub-distributor, who takes a cut and sends the balance to the distributor, who takes a cut and sends the balance to the producer. Within this system, Investors, who have had their money at risk for the longest time, are at the tail end of the box office receipts chain. Thus, if the Company, in negotiating a distribution deal, has to rely heavily on a participation at some defined level of the picture's revenue stream, revenues to the Company, and thus to Investors, are likely to be the last in line to benefit from such a revenue stream, if any.

12. **Industry Changes** - Neither the Managers nor the Company can predict the effect that rapid technological change, emerging distribution channels, or alternative forms of entertainment may have on the Company, the Managers or the motion picture industry. The entertainment industry in general, and the motion picture industry in particular, continue to undergo significant changes, primarily due to technological developments. Due to rapid growth of technology and shifting consumer tastes, neither the Managers nor the Company can accurately predict the overall effect that technological growth or the availability of alternative

forms of entertainment may have on the potential revenue from and profitability of the picture. In addition, certain outlets for the distribution of motion pictures may not obtain the public acceptance that is or was previously predicted. If certain distribution channels are accepted by the public, neither the Managers nor the Company can assure Investors that the Company will be successful in exploiting such channels. Moreover, to the extent that other distribution channels gain popular acceptance, it is possible that demand for existing distribution channels, such as DVDs, will decrease. If the Company is unable to exploit new distribution channels to the same extent expected as existing channels. Company's business, operations or financial condition could be materially adversely affected.

13. **Picture's Liabilities** - The Company will actively participate in the production and distribution of the picture. Because insurance covering such liability may not be available at a reasonable cost, or may simply not be obtained, the assets of the Company may be exposed to operating risks that may arise from the creation, exploitation and disposition of the picture.

### **C. Managers' Discretion Regarding Production and Distribution Matters**

1. Subject to the terms and conditions of this agreement, the Managers have reserved the specific authority to enter into agreements on behalf of the Company with motion picture or television studios, distributors and/or other third parties pursuant to which the Company, in exchange for such studios', distributors and/or other third parties' assistance in producing, distributing and/or otherwise exploiting the picture, may commit to pay such parties out of revenues generated by the picture at a point in the picture's revenue stream prior to Company's receipt of its gross proceeds. Such agreements may include, but are not limited to, flat fee arrangements, negative pickup deals or an outright sale of the picture, if in the judgment of the Managers, such a sale would be in the best interest of the Company. In addition, subject to the terms and conditions of the LLC agreement, the Managers have reserved the right (1) to produce the picture and seek the most advantageous distribution agreement for the picture, and (2) to enter into agreements on behalf of the Company which provide that persons rendering services or other materials or facilities in connection with the development, production, distribution or other exploitation of the picture shall receive, as salary or other compensation, deferred amounts or a percentage participation in Company revenue. Such reliance on the judgment and discretion of the Managers places a greater emphasis on the skills and judgment of the Managers, and the Managers' advisors and therefore makes it imperative that prospective Investors carefully examine the abilities of such Managers and the Managers' associates before choosing to provide any investment hereunder.

2. **Distributions and Liquidity** - The Managers will have absolute discretion in the timing of distribution of Company proceeds, if any, subject to the terms and conditions of this agreement. There can be no assurance that there will be any distributions or that aggregate distributions, if any, will equal or exceed the Investor's equity investment in the Company.

#### **D. Investment-related Risk**

1. An Investor who purchases interests in the Company should be aware that the investment in the Company is highly speculative and that such Investor risks losing his, her or its entire investment.
2. **Illiquidity of Investment** - There is no public market for the interests and one is not expected to develop. Each Investor should be aware that he/she/or it must bear the risks of an investment in the Company for an indefinite period of time because any transfer, sale or assignment of the interests is subject to the consent of the Managers in its discretion. Furthermore, the interests have not been registered under the securities act of 1933, as amended (the "act"), or any other applicable law, and therefore, cannot be sold and must be held indefinitely unless they are subsequently registered under the act, and any other applicable law, or, in the opinion of the Managers, exemptions from such registration are available. Any such registration is unlikely to occur in the future. In addition, no sale, transfer or assignment of an interest will be permitted if, in the opinion of counsel for the Company, such sale, transfer or assignment would violate the status of the original sale of the interests which formed the basis for the exemption from registration under the act, or any applicable state securities laws, pursuant to which such interests were offered, or cause a termination of the entity's treatment as a Company for federal income tax purposes.
3. **Inherent Uncertainty of Projections** - The indicative cashflows and certain forward looking statements are based on certain assumptions and other information available to the Managers. However, the underlying estimates, assumptions and future events are inherently uncertain, and unanticipated events may occur which would cause actual results to vary, perhaps materially from any forecasted results. Each Investor should be aware that many films do not get released or if released are not commercially successful, and lose money. As a consequence, each Investor should be aware that neither the Company nor the Managers guarantee or warrant any specific projected result of an investment in the Company. Accordingly, Investors should retain and rely upon the advice of their own professional advisors with respect to their individual suitability for an investment in the Company and the tax consequences resulting therefrom. The foregoing list of risk factors does not purport to be a complete explanation of the risks involved in an investment in the Company.

# ATTACHMENT D

# Tax Considerations

Because of the complexities of the tax consequences of an investment in the Company, participation in the Company should be considered by a prospective Investor only after obtaining adequate tax counseling from the prospective Investor's own tax advisor, and this offering is made on that basis. In particular, no prospective Investor should invest in the interests for the purpose of obtaining a tax benefit without consulting his, her or its own tax advisor.

Prospective Investors should be aware that the internal revenue service ("IRS") may not agree with all tax positions taken by the Company and that changes in the internal revenue code of 1986, as amended (the "code"), or the regulations or rulings or other decisions after the date of this memorandum may adversely affect the tax aspects of an investment in the Company.

The following is merely a summary of some important federal income tax risks and considerations affecting the Company and prospective Investors. It does not purport to be a complete analysis of all the provisions discussed nor a complete listing of all potential tax risks. Prospective Investors are urged to consult with their own tax advisors to determine the extent to which these rules will affect them.

1. Scope of the discussion; changes in tax laws - The following general discussion of certain of the federal income tax aspects of an investment in the Company is based upon the current provisions of the code, the existing and proposed regulations thereunder ("regulations"), published rulings and procedures of the IRS, and court decisions. No assurance can be given that legislative or administrative changes or court decisions will not occur that would require significant modification of the statements expressed in this section, nor can assurance be given that such changes may not be retroactive with respect to transactions entered into prior to the occurrence of such changes. The Company has not requested, and does not intend to request, any tax rulings from the IRS or an opinion of legal counsel with respect to any tax aspects of an investment in the Company.
2. Company Classification - The Company may be treated as a partnership for U.S. Federal Income Tax purposes unless an election is made to treat the Company as a corporation. The Managers may make an election to treat the Company as a corporation. A partnership is not subject, as an entity, to Federal Income Tax. Instead, each member is required to take into account, in determining his or her or its federal income tax, his or her or its distributive share of the Company's income, gains, losses, deductions and credits, whether or not any actual cash distributions are made to such member. A member of a partnership may offset his or her or its share of Company losses in a taxable year against his or her or its income from other

sources in such year, subject to certain limitations, including the basis, at-risk, and passive activity loss limitations.

3. Insufficient Cash Distributions - The Company's Investors are required to take into account in determining his or her or its federal income tax liability, his or her or its distributive share of income, gains, losses, deductions and credits of the Company, irrespective of any cash distributions made to such Investor during the taxable year. No guaranteed minimum annual distribution is intended with respect to the interests. If and when a cash distribution is made to the Investors, there can be no assurance that it will be sufficient to satisfy the income tax liability resulting from the ownership of interests.

4. Overview of the treatment of certain deductions - The Company will attempt to deduct all of the items described below in the time and manner set forth below at as early a time as the Managers believe the law permits. However, there are many factual and legal questions involved with respect to the availability and timing of deductions, only some of which are discussed below, and there can be no assurance that deductions claimed by the Company will be accepted by the IRS or by a court in all instances.

5. Allocations - Each Investor's allocable share of overall net income or loss, as well as any item of income, gain, loss, deduction or credit recognized by the Company, will be based upon the various allocations of such items set forth herein, unless the allocation is found not to have "substantial economic effect". The Managers believe that the allocations should have substantial economic effect because the Managers intend to maintain capital accounts in accordance with the regulations, distribute liquidation proceeds in accordance with the Investors' capital account balances, and include in the operating agreement qualified income offset and minimum gain charge-back provisions. In addition, allocations attributable to non-recourse debt, if any, will be determined no differently than any other allocations.

Should the IRS, on audit, make a determination with respect to any tax aspects of the Company, which the Managers deem is detrimental to the Company or the Investors, the Managers may employ any legal means necessary to challenge and/or defend against the IRS' determination. This could involve the incurrence of significant legal and accounting fees.

6. Limitations of deduction of losses - A Investor may be subject to certain limitations related to the ability to deduct losses allocated from the Company to him or her or it during any year. Due to the passive activity loss limitation and other limitations described herein, no Investor should assume, and no representation is made herein, that a tax deduction or credit will be available to him or her or it from the Company to reduce such Investor's federal income tax or Federal Taxable Income.

7. **Basis Limitation** - An Investor may be allowed to deduct his or her or its distributive share of the Company's losses or deductions for any taxable year only to the extent of the Investor's adjusted basis of his or her or its interests at the end of such year. Losses that exceed such adjusted basis may be carried forward indefinitely and, subject to other applicable limitations, deducted in succeeding years to the extent such adjusted basis at the end of each such succeeding year exceeds zero before reduction by any loss for such year. In addition, any money distributed (or deemed distributed) to an Investor in excess of his or her or its adjusted basis in his or her or its interests may be taxed as gain from the sale or exchange of his or her or its interests.

8. **Sale or other disposition of interests** - Gain or loss realized on the sale or exchange of all or part of a member's interests will generally be treated as capital gain or loss. A capital loss upon a sale or exchange may be subject to severe limitations on deductibility on the members' tax returns.

# **UNANIMOUS CONSENT RESOLUTION OF THE MANAGERS OF HAZEL'S
GHOST LLC
A California Limited Liability Company**

The undersigned, representing all the members and managers of Hazel's Ghost LLC, a California limited liability company (the "**Company**"), take the following actions by unanimous written consent of all the members and managers as of the 15th day of January 2023 (the "**Effective Date**") in accordance with Article VI, Paragraph B and Article XIII, Paragraph H of the Company's operating agreement (the "**Operating Agreement**"). Any undefined capitalized words used herein shall have the meaning as set forth in the Operating Agreement.

**RESOLVED**, that the Parties have amended the Operating Agreement and hereby enact and adopt such amendments via the full execution of that term first amendment to the Operating Agreement dated as of the 15th day of January 2023 ("**First Amendment**"), attached hereto as Exhibit A and incorporated herein by this reference.

**BE IT FURTHER RESOLVED** that the undersigned shall execute, acknowledge, deliver, and/or record all such additional documents Company may deem necessary to evidence and effectuate the changes hereunder.

The undersigned agree that this Resolution shall be added to the limited liability company records of the Company and made a part thereof, and the undersigned further agree that the resolution set forth above shall have the same force and effect as if adopted at a meeting duly noticed and held.

**IN WITNESS WHEREOF**, the undersigned have executed this Resolution as of the Effective Date.

**MANAGER**

By: Vivian Kerr
An Individual
Date: 01/15/23

**MANAGER**

By: Rachel Stander Jones
An Individual
Date: Jan-15-2023

# EXHIBIT A

# FIRST AMENDMENT dated January 15, 2023

# to Operating Agreement of

# Hazel's Ghost LLC, dated November 28, 2021

THIS FIRST AMENDMENT ("First Amendment") to the above OPERATING AGREEMENT ("Agreement") of Hazel's Ghost LLC, (the "Company"), is executed and agreed to by the two undersigned Members and currently-elected Managers (the "Managers") of the LLC in regards to the film currently entitled "SÉANCE" (the "Film"). All capitalized terms not otherwise defined in this First Amendment shall have the meaning attributed to it under the Agreement.

Agreement is hereby amended as follows:

I. Article II, Paragraph D shall be deleted and replaced in its entirety with the following:

D. Script Rights. The formation and implementation of this Agreement is contingent upon greenlight of the Film and the commencement of formal pre-production of the Film. In the event the Film is not greenlit and/or formal pre-production of the Film has not commenced by the 31st day of December 2022, it is expressly understood that Vivian Kerr will retain (or shall automatically revert) sole ownership rights of the screenplay of the Film, and this LLC shall be dissolved. The Members and Managers hereby acknowledge that the Film was greenlit and formal pre-production commenced prior to the 31st day of December 2022 and as such all rights (as granted under that certain assignment agreement between Company and Vivian Kerr) have vested in Company.

II. Article VII (Fiduciary Duties of the Board) shall be amended and the following Paragraph shall be added as a new Paragraph E as follows:

E. Financial Transparency.

1. There shall be no financial disbursements and/or financial commitments entered into of more than $100 without the written consent of both Managers. Written consent must be obtained prior to any payment or the incurring of any financial obligation in excess of $100.

2. No Manager may remove or transfer any sums of money in excess of $100 from any financial institution holding funds belonging to the LLC without the written consent of the other Manager.
3. Each Manager agrees that it will notify the other Manager at the end of each week in writing of any new sums he or she has incurred, paid, or expended during the preceding week on behalf of the LLC.
4. No Manager may open and/or utilize any financial institution in regards to the LLC without the inclusion of both Managers. This shall include but is not limited to the opening of any account, amending of any financial agreement with any financial institution, or the closing of any account at said financial institution.
5. Any documents received from any financial institution by one Manager that involve the finances of the LLC in any way shall immediately be provided to the other Manager with proof of such transmission. Said transmission may be by electronic mail provided that a record is kept of any such transmission.
6. In the event that any Manager proposes to enter into any contractual obligation of any type with any individual and/or business institution and/or government entity, any proposed agreement or contract shall be provided to the other Manager in writing in full prior to its execution.
7. In the event any Manager believes, for whatever reason, that there is an issue and/or problem that could affect the financial stability and/or the future operation of the LLC, said Manager agrees to communicate to the other Manager in writing via electronic email such concerns and/or issues within one week.
8. All platforms and accounts with shared LLC information and assets, including but not limited to Airtable, Wave, TaxAct, Google Drive documents (whether created with a Manager's personal Google account or the official SEANCE Google account), Instagram, Facebook, Twitter, and Vimeo, shall be accessible to both Managers at all times. If one Manager is unable to access a platform or account, the other Manager must provide assistance until access is restored. Each Manager agrees not to share such information, assets, and log-in information with other individuals and third-parties unless written consent is obtained by the other Manager.

**III.** Article VI (Board of Managers) shall be amended and the following Paragraphs shall be added as a new Paragraph J-M.

**J. Written Consent and Communication.**

1. For the purposes of this Agreement, “written consent” is defined as a document giving permission from one Manager to another to take a certain proposed action on behalf of the LLC.

2. “Written consent” may not be given over text message, iMessage, or SMS.

3. “Written consent” may only be given by electronic mail. For the purposes of this Agreement, the electronic mail addresses shall be “vivianmkerr@gmail.com” for Vivian Kerr and “rstander@aseasonofrain.com” for Rachel Stander Jones (known professionally as “Rachel Stander”). Those emails shall be considered binding until and unless a Manager communicates in writing to the other Manager a change of electronic mail address.

4. All communications made on behalf of the LLC by a Manager involving the financial transactions of the LLC shall be carbon copied to the other Manager. This includes, but is not limited to, any email from any Manager to any individual, vendor, or company regarding hiring or negotiation of services.

5. Any communication received by a Manager that in any way involves, references, and/or is connected to the LLC’s finances shall immediately be provided to the other Manager via electronic mail, or via USPS with proof of delivery.

6. All decisions between the Managers regarding the financial business of the LLC, including but not limited to hiring, payments, and contracts, are to be conducted in writing through electronic mail only, or via USPS with proof of delivery.

7. Both Managers recognize that “seancefilmofficial@gmail.com” is the Company’s official email address. At all times, both Managers must have access to this email account. If one Manager is unable to access the account, the other Manager must provide assistance until access is restored. Both Managers agree to archive all incoming correspondence to this

account that is relevant to the business of the LLC so that it is available for either Manager to review at a future date.

8. In the event that either Manager has engaged in correspondence with any entity and/or individual prior to this Amendment being signed regarding the finances of the LLC, including but not limited to hiring, payments, and contract negotiation, it is agreed that each Manager shall carbon-copy the Company's official email address, "seancefilmofficial@gmail.com", on all additional future correspondence with said entity and/or individual.

9. Both Managers agree to conduct, as much as is reasonable, all correspondence pertaining to the Company's operations using the email address "seancefilmofficial@gmail.com" and not via the Manager's personal electronic mail. This includes, but is not limited to, all hiring, payments, and contract negotiation. If business related to the LLC must, for whatever reason, be conducted with a Manager's personal email, both Managers agree to carbon copy "seancefilmofficial@gmail.com" and the other Manager on said email.

10. Both Managers recognize that there will be communication with independent contractors and vendors in regards to the artistic and logistical aspects of the Film. This includes but is not limited to notes and feedback, scheduling of work sessions, pick-ups, drop-offs, and technical questions. Managers will carbon copy both "seancefilmofficial@gmail.com" and the other Manager on such emails.

11. At any time, either Manager may request to be forwarded any and all past email communication made on behalf of the LLC, whether related to the financial, artistic, or logistical aspects of the Film.

12. Both Managers recognize that excessive delays in decision-making, whether financial, logistical, or creative, are not in the best interest of the LLC. As such, non-response will not be taken as non-consent with regard to proposed actions on behalf of the LLC. If three (3) good faith efforts over the course of ten (10) business days are made by one Manager of another to request consent and no response is given in either the affirmative or negative, the requesting Manager can presume consent and move forward.

### K. Post-Production.

1. Beginning on January 1, 2023, both Managers recognize the Film (described above) to be in the Post-Production period (“Post”). It is anticipated that Post-Production will occur from January 2023 until September 2023 and may be extended with the agreement of both Managers which shall be set forth in writing.

2. In January 2023, both Managers will collaborate to create a “Post-Production Budget” that will encompass all anticipated expenses for the Film’s completion and distribution. It is understood that the Managers will then collaborate in good faith during Post to raise any additional financing needed to complete and launch the Film.

3. All monies raised by the Managers to complete the Film shall be deposited into a joint business account and be accessible to both Managers at all times. Any future deposits into this account, or any other account holding the LLC’s funds, are understood by the Managers to be managed in accordance with the “Financial Transparency” (Article VII, Paragraph E) section of this Agreement.

4. If at any time during the Post-Production period, a Manager decides to loan the LLC funds, this will be done through a written Promissory Note or Loan Agreement.

5. The Managers agree that as of January 1, 2023, the following payments are still owed to each Manager for their work on the Film:

a. Vivian Kerr is owed $23,400.

b. Rachel Stander Jones is owed $18,900.

These amounts represent the total professional fees owed from the LLC to Vivian Kerr and Rachel Stander Jones during the Post-Production period. These two payments will be initiated once the Company’s joint business account balance exceeds $80,000.

### L. Credits and Artistic Control.

1. It is understood that Vivian Kerr is the sole Writer and Director of SÉANCE and will be credited as such in the main titles and/or end titles of the completed Film.

2. It is understood that both Vivian Kerr and Rachel Stander Jones are Producers of the film SÉANCE and will be credited as such in the main titles and/or end titles of the completed Film. It is agreed that both Vivian Kerr and Rachel Stander Jones will be submitted to use the Producers' Mark ("p.g.a.") as part of their credit on the Film. No other credited producers on the Film may be submitted to use the Producers' Mark ("p.g.a.") on the Film.
3. Unless specifically agreed to in writing, neither Manager on his or her own has the ability to remove or omit a credit from the Film whether from the main or end titles of the Film, from any press materials associated with the Film, or from any professional online databases that reference the Film, such as IMDb or Rotten Tomatoes. All adjustments to credits must be agreed to in writing between the Managers.
4. As co-Producers of the film SÉANCE and co-Managers of the LLC, Vivian Kerr and Rachel Stander Jones undertake in good faith to consult each other on all significant issues concerning the Film during the Post-Production period, including but not limited to those that pertain to the edit, color grade, music, sound edit, mixing, visual effects, creation of marketing materials, planning of release, etc.
5. The Managers acknowledge that no one other than the Director may supervise the editing of the first cut of the Film following completion of the editor's assembly cut. The Director shall prepare the Director's Cut of the Film for presentation to Rachel Stander Jones, who may make suggestions for changes and adjustments. However, both Managers acknowledge that Vivian Kerr has final cutting authority over the Film as defined by the DGA.
6. Managers acknowledge that Director Vivian Kerr will fully and meaningfully consult with Producer Rachel Stander Jones on additional Post-Production matters relating to the creation of the Color Grade, Sound Mix, Music, Titles, Poster and Marketing materials. However, both Managers acknowledge that exclusive creative and artistic control pertaining to the final cut of the film SÉANCE is the right of Vivian Kerr.
7. The Managers agree that the production company "A Season of Rain," created by Rachel Stander Jones, shall be credited on the Film as the primary production company. The credit shall include the language "an A Season of Rain Film" or "an A Season of Rain Production" to be

determined in writing by the Managers at a later date. The logo for A Season of Rain shall be included in the end titles of the Film, in a separate placement from vendor logos. If any other company logos appear before the film, the logo for A Season of Rain shall also appear before the film.

8. The Managers agree that the production company "Rue Dangeau", created by Vivian Kerr, shall be credited on the Film as an additional production company. Language and placement of this credit will be agreed upon in writing by both Managers at a later date.

# M. Film Festivals and Distribution.

1. It shall be the responsibility of the LLC's Managers to look for, discuss with, and attempt to set up the showing of the Film SÉANCE at film festivals both domestically and internationally. Each Manager agrees not to submit the Film to any festival or accept any festival showings without written consent of the other Manager.
2. It shall be the responsibility of the LLC's Managers to pursue the sale and distribution, both domestically and internationally, of the feature film SÉANCE. Each Manager agrees to inform the other Manager of any interest, offers, whether formal or informal, or contracts presented by any individual or company to a Manager in conjunction with the sale and distribution of the Film.
3. Prior to the signing of any sale or distribution agreement in regards to the Film, both Managers must provide the other with written consent.

# IV. Settling Disputes.

A. In the event there is any dispute between the partners arising out of this First Amendment, the Managers agree that any such dispute that cannot be resolved shall be submitted to binding arbitration under the laws of the state of California with venue set in Los Angeles County.
B. In the event the Managers cannot agree on an arbitrator, either Manager may submit a request to a judge in the Superior Court in and for the County of Los Angeles requesting that said judge appoint an arbitrator for the purposes of binding arbitration. It is the wish of the Managers that said arbitrator shall be a

retired California judge. Both parties agree that they will be responsible for one-half of the expenses of said arbitrator.

C. The Managers agree to operate in good faith and agree to execute any additional written documentation that may be necessary to enforce the terms of this Agreement.

D. In the event that there is any conflict between this FIRST AMENDMENT and the OPERATING AGREEMENT, the FIRST AMENDMENT shall control.

[signature page follows]

IN WITNESS WHEREOF, the Members have executed and agreed to this First Amendment to the Hazel's Ghost LLC Limited Liability Company Operating Agreement, which shall be effective as of January 15, 2023.

This First Amendment to the Hazel's Ghost LLC Operating Agreement is executed and agreed to by:

\_\_\_\_\_  
Vivian Kerr  
Date: 01/15/23

\_\_\_\_\_  
Rachel Stander Jones  
Date: Jan-15-2023

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Hazel's Ghost LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** CA

**Date of Organization:** 11-30-2021

**Physical Address:** 5870 Melrose Ave Ste 3, PMB 692,, Los Angeles, CA, 90038

**Issuer Website:** http://seancefilm.com/

**Is there a Co-Issuer?:** Yes

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 7.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Revenue Participation Agreement

**Number of Securities Offered:** 50000

**Price per Security:** $1.00

**Method for Determining Price:** Pro-rated portion of the total principal value of $50,000; interests will be sold in increments of $1.

**Target Offering Amount:** $50,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** As determined by the issuer

**Maximum Offering Amount:** $225,000.00

**Deadline to Reach Target Amount:** 04-29-2024

### Annual Report Disclosure Requirements

**Current Number of Employees:** 0

**Total Assets (Most Recent Fiscal Year):** $520,877.00

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

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $8,828.00

**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):** $40,931.00

**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):** $0.00

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

**Net Income (Most Recent Fiscal Year):** $-2,500.00

**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, B5, GU, PR, VI, 1V

### Signatures

**Issuer:** Hazel's Ghost LLC

**Signature:** Vivian Kerr

**Title:** Director / Writer / Actor

---

**Signature:** Rachel Stander Jones

**Title:** co-manager

**Date:** 02-23-2023

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**Signature:** Vivian Kerr

**Title:** Director / Writer / Actor

**Date:** 02-23-2023