SEVEN-X by Mike Wech

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FINANCING PLAN FOR SEVEN-X An Independent Feature Film Proposal for A Psychological Suspense/Horror Film Based On The Highly Rated Best Selling Novel SEVEN-X. Tenacious reporter Eddie Hansen becomes prey in a radical paranormal experiment after committing himself into an asylum to track a serial killer presumed executed by the state.

Reviewers have been raving about SEVEN-X eagerly anticipating its move to the big screen.

We are commited to putting together a film package that will attract top-level talent and have the commercial appeal to make SEVEN-X the next big horror/thriller franchise.

Contact: Mike Wech 818-524-9420 mikewech@gmail.com www.seven-x.com

TABLE OF CONTENTS Building a Profitable Film Franchise The Business of the Limited Liability Company Revenue Potential Reasonable Market Assumptions Estimated Revenue Waterfall/ Return on Investment Distribution of Revenues and Allocation of Profits & Losses Film Revenue Flowchart Time Table Marketing the SEVEN-X Franchise Distribution and Marketing Book Reviews Synopsis of SEVEN-X Film Budget Top Sheet Production Incentives Location/Casting Tax Consequences Sale of Partnership Interests/ Sale of the Film Rights and Obligations of the Members Rights and Obligations of the Manager Conflict of Interest Risk Statement About The Writer/Producer Safe Harbor Agreement

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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BUILDING A PROFITABLE FILM FRANCHISE It should come as no surprise to investors that the Independent Film Market is booming, even in a stagnant economy. Box office records are being smashed every year and one common denominator is that good films, particularly good horror films perform well domestically and internationally.

Of all horror genres, supernatural horror is the top performer. In 2013, The Conjuring scared up 137.4 million domestically and 180.6 in foreign sales for a staggering 318 Million Dollars in box office revenue alone. Mama rang up 71.6 million domestic and 74.8 international for an impressive 146.4 Million Dollars. Even the low budget Sinister managed to haul in 77.7 Million worldwide.

The common denominator is that these films were all supernatural horror films with moderate budgets, high production value and name talent.

Also in 2013, the novel SEVEN-X became a Best Seller on Amazon.com charting in the Top #25 in Horror with World War Z and Steven King’s Dr. Sleep amongst others. SEVEN-X also became the #1 Best Seller in Spiritual Mystery in the United Kingdom, Germany and Canada and #1 Religious Mystery and #1 Dark Horror novel on Amazon Kindle in the United States.

All this came from a self-published novel with NO advertising or marketing budget. Strictly rave reviews and word-of-mouth have driven SEVEN-X to its present performance, setting the groundwork and building a fan base for our successful film launch.

Independent Film Finance Consultant Louise Levinson stated, “The independent film business is looking good.” “For those of you who want to write business plans and raise money from investors, it is the best news of the year. While the revenue paradigm is going through a period of change, theatrical distribution still is important. The independent portion of the domestic box office ended the year at $3.4 billion (34 percent of the total box office), a 3 percent increase over 2010. While less than the 5% that we saw at the end of November, it is much better than the 4.5 percent backslide of the total box office, which is estimated to be $10.1 billion. “Insidious” showed that horror still pays!

All this leads me to paraphrase Field of Dreams with “If it is good, they will go.” Or as Dan Fellman, President of Domestic Distribution for Warner Bros. told the New York Times, “You have to go back and look at the content. Good movies always rise to the occasion! Bad ones, not so much.”

In forecasting how films will do, we take into account current trends, while covering a range of possibilities based on specific, similar films. There certainly are new alternatives for distributing a film rather than a traditional box office debut; however, how well they work and for what budgets is still to be determined. Despite proclamations that the box office will be gone in two years, let’s plan that it will still be alive and well. For now it is still the best game in town.

The following business plan presents you the opportunity to get in the game on the ground floor of the SEVEN-X film franchise. We outline in detail how we can not only compete, but also capture this market share and continue a strong franchise with a catalog of films.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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THE BUSINESS OF THE LIMITED LIABILITY COMPANY SEVEN-X Film Group, LLC is a Nevada Limited Liability company or LLC made up of a Manager, Mike Wech, Production Company and various Members who have purchased units in the company to finance, produce and cause the distribution of a feature length motion picture entitled, “SEVEN-X.” The anticipated MPAA rating of this film is PG-13 or R. The anticipated date for completion of the picture is August 2015. The estimated production budget for the film is $10,000,000 (Ten Million Dollars.)

Distribution of net profits received by the company will be 50% to the investors and 50% to the Manager and Production Company, which include all talent corridors and co-production payouts.

FIFTY limited liability company interests are being offered. Each interest costs $200,000 and is worth 1% of the total share of SEVEN-X FILM GROUP, LLC. Funds raised by the limited liability company for the production of the film “SEVEN-X” will be put into an escrow account under the name SEVEN-X FILM GROUP LLC. Initially, the first $500,000 will be used for continued development of the SEVEN-X FRANCHISE and to secure talent deals. The anticipated date for completion of financing (or for the return of escrow money to investors) is February 2015. The Manager strongly recommends that prospective Members carefully consider the risk factors described in this memorandum.

The mailing address for the Manager shall be: SEVEN-X FILM GROUP, LLC. c/o Mike Wech 5502 Corteen Pl. #210 Valley Village, CA 91607 THIS MEMORANDUM IS INFORMATIONAL IN NATURE AND IS NOT AN OFFERING TO SELL. IT IS BEING FURNISHED TO YOU BY REQUEST ONLY AND NO INFORMATION WITHIN SHOULD BE CONSTRUED AS A SOLICITATION FOR ANY OFFERING TO INVEST BY ANYONE RECEIVING.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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REVENUE POTENTIAL “SEVEN-X” is similar in structure and appeal to the films listed below. Independent reviewers of the novel have made comparisons to the films marked ***. If the SEVEN-X novel (4.1 of 5 stars) is an indicator of the film rating, SEVEN-X will garner a rating of approximately “8.2” While this is not a perfect indicator of potential, it’s useful to understand how comparable movies and their ratings have fared with global audiences and how “audience rating is directly related to box office success.”

Good movies always rise to the occasion!

BUDGET

User Rating

U.S. BOX OFFICE WORLDWIDE

Paranormal Activity 3 *** (#3) 5 million

6.1

104 million

201 million

8.0

232.9 million

441.3 million

The Exorcist *** 10 million

Shutter Island *** 80 million

8.0

128 million

294.8 million

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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The following chart illustrates the actual returns for comparable films from domestic and worldwide box office through ancillary market sales. These numbers were purchased through Baseline Intelligence, the most accurate and reliable source for film finance data for investors.

Last Exorcism, The

The Devil Inside

Paranormal Activity

Shutter Island

Exorcism of Emily Rose, The

Lionsgate

InSurge Pictures

Paramount

Paramount

Sony

Aug-­‐10

Jan-­‐12

Sep-­‐09

Feb-­‐10

Sep-­‐05

Maximum Screens (whole number)

2,874

2,551

2,712

3,356

3,045

Opening Gross (millions)

$20.34

$38.35

$0.08

$41.10

$30.05

Budget

$1.80

$1.00

$0.01

$80.00

$19.00

Prints & Ads

$6.01

$10.59

$10.47

$36.01

$32.73

Total Costs

$7.81

$11.59

$10.48

$116.01

$51.73

Box Office Gross

$41.03

$53.26

$107.92

$127.97

$75.07

Rentals

$20.11

$26.10

$52.88

$62.70

$36.79

Video Units (1000's)

124

144

158

388

268

DVD Units (1000's)

845

875

2,430

4,565

3,200

Video Revenue

$12.60

$13.08

$43.64

$57.85

$45.25

Domestic Ancillaries

$15.21

$17.24

$28.19

$30.23

$22.42

Domestic ROI

399%

316%

773%

84%

131%

Foreign Box Office

$32.04

$48.37

$85.02

$164.16

$82.97

Foreign Rentals

$13.46

$20.32

$35.71

$68.95

$34.85

Foreign Home Video

$20.32

$30.68

$63.20

$86.87

$57.50

Foreign Ancillaries

$10.50

$15.85

$24.64

$32.41

$33.11

Int'l Revenue

$44.27

$66.84

$123.55

$188.23

$125.45

Total Global Revenue

$92.19

$123.26

$248.27

$339.01

$229.92

Distribution Fees

$32.26

$43.14

$86.89

$118.65

$80.47

Income After Dist.

Fees

$59.92

$80.12

$161.37

$220.36

$149.45

Library Value

$3.00

$4.01

$10.00

$10.00

$10.00

Global ROI

806%

726%

1635%

199%

308%

Film Profit(r) ROI Report

Foreign Income and Global ROI

Domestic Income

Costs

Domestic Release

Distributor

Release Date

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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REASONABLE MARKET ASSUMPTIONS: Based on previous films of this genre (supernatural horror) , the Box Office Returns are always extremely high when a Highly Rated film in this genre is made. Lesser-made films with lower ratings have broken through to audiences based on a unique, interesting premise, subject matter and/or theme, with the common horror theme here being “exorcism” and the common genre being “supernatural horror/thriller.”

“SEVEN-X” not only has unique content in its approach to the supernatural horror genre, it also has a marketing and distribution plan that has not been utilized by any of these previous films, opening up further revenue streams outside traditional sources for the franchise.

Very few of these films have been based on books, and none utilize marketing a “A Living Story,” which will be explained in the marketing section of this proposal. Also none of the films utilize trans-media to “tell” the story, they simply use it to “sell” the story across various platforms. This additional value should help us compete in box office vicinity of the higher rated films of this genre.

Additionally, the setting of a Historical Insane Asylum has an enormous value with the underground youth, who religiously follow programs on this subject matter and are breaking into these abandoned historical landmarks and filming Youtube videos. Some videos exploring this phenomenon have garnered as many as 500,000 to 20+ million hits.

“Grave Encounters” explores the history of these mental asylum. Proper marketing to this core group can significantly improve box office results and follow-up book sales as we roll out the SEVEN-X campaign.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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SEVEN-X has all of the ingredients to create a successful franchise with minimal start up costs compared to studio films. Utilizing a low budget production with a high budget/ high concept story and execution, along with star actors with proven ability to drive pre-sales, foreign and domestic box office, should set us up to exceed expectations.

SEVEN-X offers roles that challenge actors who want to be the best at their craft. It gives them the opportunity not only to own a piece of the franchise, but to also receive critical acclaim for their work and keep them ahead of their competition in the eyes of the industry.

With the Management, Production Company and Distributor’s previous experience we can assure a high production value. With the right cast, sales team, marketing strategies and continued popularity of the SEVEN-X Book Series we can virtually insure box office success for multiple films.

A revenue waterfall follows which illustrates what the project will need to break-even using best estimates of how the different revenue paths might contribute to the bottom line. It shows that even a modest box office expectation can lead to a very healthy profit in the long term.

This waterfall was created from MoviePlan’s software, which calculates a conservative estimate based on percentages of the foreign and domestic box office, which drive ancillary sales. While distributor deals with each territory may very slightly, the estimates are based on industry standard sales, programmed into this spreadsheet. These numbers may be compared to the actual numbers provided by Baseline Intelligence for the comparable films above. You will see the estimate for SEVEN-X is conservative.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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SEVEN-X INCOME PROJECTIONS ($ MILLIONS)

SEVEN-X INCOME PROJEC

Domestic Theatrical Sales 49% 35%

Box Office Gross Less Exhibitor/ Theater Share Gross Film Rental Less Distributor Fee Less Prints and Advertising Domestic Theatrical Net Profit

1 2 3

Low

Medium

High

$25.0 $12.3 $12.8 $4.5 $5.0 $3.3

$50.0 $24.5 $25.5 $8.9 $5.0 $11.6

$100 49.0 51.0 17.9 5.0 28.2

1.0 1.0 0.2 5.5 7.7 2.7 5.0

$2.5 $2.5 $0.5 $13.8 19.3 $6.7 $12.5

$5.0 $5.0 $1.0 $27.5 $38.5 $13.5 $25.0

12.5 6.3 2.5 2.0 1.8

$31.3 15.6 $6.3 $2.0 $7.4

$62.5 $31.3 $12.5 $2.0 $16.8

1.2 1.2 6.9 9.3 3.7 5.6

$3.1 $3.1 $17.2 $23.4 $9.4 $14.0

$6.2 $6.2 $34.4 $46.8 $18.7 $28.1

$54.5 $15.6 $10.0 $5.6

123.9 $45.5 $10.0 $35.5

247.8 98.0 $10.0 88.0

56%

355%

880%

Domestic Ancillary Sales 5% 1%

35%

Pay Cable Network TV Revenue TV Syndication Home Video Market Gross Ancillary Sales Less Distributor Fee Domestic Ancillary Net Profit

4 5

Foreign Theatrical Sales 50% 40%

Box Office Gross Less Exhibitor/ Theater Share Less Distribution Fee Less Prints and Advertising Foreign Theatrical Net Profit

6 7

Foreign Ancillary Sales

40%

Pay Cable Revenue Television Revenue Home Video Market Gross Ancillary Sales Less Distribution Fee Foreign Ancillary Net Profit

8

Revenue and Profit Total Worldwide Revenue Total Revenue after Fees Less Film Negative Costs Total Net Profit

Total ROI

9 10 11

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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RETURN ON INVESTMENT As per the waterfall chart, if SEVEN-X grosses 25 million dollars at the domestic box office, it is assumed based on previous data that the film will garner at least 12.5 million in global box office sales.

Actual numbers from our comparable films fared much better, but this is a conservative estimate.

From the gross sales, the theater will deduct their take (49%) the distributor will take their fee (35%) and the costs of prints and advertising to release the film (5,000,000.00) will be recouped, leaving a domestic profit of 3.3 million dollars.

The rest of domestic sales use the calculations provided by MoviePlan, showing that Network and Pay Cable deals are usually about 5% of the domestic box office and TV syndication about 1%. The same ratio applies to the international market, showing a projection of 54.5 million dollars in worldwide revenue and a net profit of 5.6 million on a 10 million dollar investment for a 56% ROI. At 100 million in domestic box office, there is a net profit of 88 million or an 880% ROI. Should SEVEN-X become an international box office hit at 200 million, the net profit is 121 million or a mind-blowing return of 1,212% ROI.

DISTRIBUTION OF REVENUES AND ALLOCATION OF PROFITS & LOSSES Revenues from SEVEN-X will be derived from domestic and foreign theatrical distribution, sales to television, as well as money making ancillary rights, such as Blu-ray’s, DVDs, Video On Demand, pay cable and satellite television, soundtrack recordings, etc.

Revenues received by the distribution company are called gross film receipts. Gross film receipts will be subject to distribution and merchandising costs (usually prints and advertising), as well as the distributor’s percentage, as much as (50%) fifty percent.

After these deductions the gross film receipts shall equal net film receipts and shall be subject to production costs beyond the production financing limited liability company investment capital, such as loans, extended credit and deferred payments to talent and technical facilities; and the limited liability company overhead expenses.

After the foregoing deductions, the balance of net film receipts shall equal limited liability company distributable cash (net revenue after all cash) for the production financing limited liability company, and will be distributed 100 percent to the Members (Investors) until their initial investment, plus 15%, is recouped.

Thereafter, Limited Liability Company distributable cash shall be distributed 50% to the Members (Investors) and 50% to the Manager, Production Company and Corridor Agreements.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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Goodlow Law Services, who specialize in packaging film projects for investors, provided the following revenue flowchart. It is important to note that after initial costs are recouped, the investors receive 100% of their investment as first money back, plus interest before the net proceed and splitting of profits begin.

FEATURE FILM REVENUE FLOWCHART EXAMPLE Feature Film Gross Revenue (what you read in the papers)

Expenses

FOREIGN BUYERS Pay set price

FOREIGN SALES AGENT Takes a 15-30% commission

PRESALES/ ADVANCES/MGs

U.S. EXHIBITORS Keep 50% of ticket sales

Buy Outs & License Fees

GROSS PROCEEDS BEGIN

SALES REP/ AGENTS Takes a 10%-20% commission

Union U i required i d residuals id l

A-LIST Gross Participations

U.S. DISTRIBUTOR Keeps 15%+/- of revenue plus expenses

BROADCASTING/ VOD/DVD DOWNLOADS

LENDERS

COLLECTOR (1-2%)

Expenses

Packager/Agent/Finder/Professional Commissions/Deferrals

10% corridor for production co.

ANCILLARY REVENUE

Equity Investors Recoup 100% from 90% (plus interest)

TAX CREDITS

Deferrals & Un-recouped Production Expenses (capped)

Investors keep 50% of profits (paid Pari Passu Pro Rata)

© 2013 by FilmPro Finance

P&A

NET PROCEEDS BEGIN

Participations of Key Talent & Crew

Production Company keeps 50% of profits less profit participations

Executive Producers & CoProfessionals Copyright 2011

by FilmPro Finance LLC Producers

Producers keep remaining portion of Production Company profits 3

The following chart represents the timetable for various releases, showing how the cash flows back to investors after the release of the film.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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TIME TABLE The following is a tentative timetable for the benefit of the investor to better understand the time involved in making a motion picture. These are not firm commitments, but are anticipated time periods and may change as need requires.

PRESENT until JAN 2015 • Continue to sell and market SEVEN-X novel, build fan base, • Attract talent, hire crew and begin prep for filming. Script polishing • Begin casting, crew allocation, visual effects prep, makeup tests.

• Lock production schedule • Allocate equipment; props & costumes Begin set construction.

• Begin production design, visual effects sets, extensions, etc.

• JAN 2015- FEB 2015 • Begin location film prep with crew, production design and director of photography and rehearsals with actors.

• Casting completed. Crew allocation completed • Begin rehearsal. Rental Equipment, props & costumes secured.

MARCH/APRIL 2015 • Film SEVEN-X on location in Weston Virginia.

• Edit on set, assembling and backing up media. Begin scene rough cuts.

• Shoot any additional pickups or have local crew ready for Inserts if needed.

• Film additional studio scenes and continue editing rough-cut. Work with sound designer and composer to set schedule and prep. Continue visual effects composites.

APRIL-JUNE 2015 • Continue offline assembly edit and lock cut.

• Continue visual effects comps. Send outputs to sound designer, composer.

JULY/ AUGUST 2015 • Begin Foley, sound mix, finish score and prep for online assembly and masters.

• Begin color timing and online assembly.

• Finish online assembly, masters.

• Continue with marketing campaign. Before during and after production, management will be pitching and selling film for distributors based on attachments, product existing in market.

Once the film is completed, it is estimated that approximately one (1) year will be necessary for recoupment of production costs through normal distribution channels. The producers intend to use their best efforts in securing a distribution pattern that will not only maximize the rate of return to the Limited Partners, but also to insure that a generous profit can be realized.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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MARKETING THE SEVEN-X FRANCHISE SEVEN-X is unique in its base marketing strategies by combining the traditional revenue streams of film with a modern wave of trans-media platforms, utilizing print; Internet, film and television to continue to both TELL and SELL the story.

SEVEN-X is what I term “ A LIVING STORY.” It is structurally created using first and third person narrative, based on media reports, journals, investigative narrative, case records and communication between various parties involved in the UPHIR Behavioral Health Center investigation. This specific and unique style of narrative, not only translates easily to film, it also takes advantage of internet and streaming media to provide additional details to the story as it progresses into the trilogy and beyond. The narrative style allows the same “base” story to be told from multiple viewpoints and perspectives.

The immediate plan is for a TRILOGY OF BOOKS AND FILMS, connected with additional reports, journals, media and conversation from the main characters as if this story were happening straight out of today’s headlines. Fans of the SEVEN-X SERIES will constantly be kept up to date with the story and be offered inside information, tips and clues for the ongoing investigation of Eddie Hansen into his accusations of the unregulated experiments being conducted on the prisoners at UPHIR. Initial marketing and advertising costs are the foundation of the campaign which will feed upon itself in subsequent novels and the SEVEN-Xperience. As our fan base grows through each film and book, the cost of reaching each consumer goes down and anticipation for the next segment increases awareness outside our pre-existing fan base.

Case studies from the pre-launch of the novel show consumers wanting more content. The first novel was specifically designed in conjunction with the film to leave a cliffhanger with the audience satisfied and gasping for more. SEVEN-X was written for easy screenplay adaptation, using the film location and 90-120 minute three-act structure as the base for the novel. Over the course of three books, each book becomes a mini act, so the end of the first novel is the end of the first act in the overall story arc.

The demographic audience of the SEVEN-X is exciting because the book is appealing to both males and females in the 18-34 age group, plus and expanded market in the 35-54 age range, commanding a huge share of the market, which goes beyond horror.

90% of readers like SEVEN-X. Over 80% really like or love the book (4 or 5 star ratings) and around 50% of readers give SEVEN-X a five star rating! Book sales have also indicated that people who are not particular fans of the Horror Genre still really like SEVEN-X and find it both compelling and entertaining. With a focused marking effort, SEVEN-X has mass commercial appeal.

Providing the right talent to create a great film will make us poised to explode on to the market and outperform projections.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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DISTRIBUTION AND MARKETING LBYL Films, Sales and Distribution has a proven track record for successfully marking and distributing films to a global audience.

In addition, we can adopt specific business strategies to penetrate the market for a maximum return on the investment.

SEVEN-X in will work to secure CAST who are marketable and bankable assets to the film.

SEVEN-X will be cast to appeal to mainstream audiences both in the United States and Internationally.

In addition to casting, SEVEN-X is already building a core audience in the Horror/Suspense/Thriller Market with the preceding novel. In the first months of a self-published release, SEVEN-X climbed to #1 in Horror Books on Amazon.com.

SEVEN-X is ranked in the top Psychological Horror/Suspense Books on Amazon, based on word of mouth and impressive reviews, hitting #1 in the United States, UK and Germany.

The immediate goal of SEVEN-X is to sell/give 1,000,000+ copies worldwide over the next 18 months. With a million (plus) fans, we should reach the Low-Income Box Office Projection (20 million) as a worst-case scenario.

Limited giveaways with no marketing or brand recognition of SEVEN-X yielded over 10,000+ copies, based on book giveaway contests on Goodreads and Amazon with over 60,000 copies to date.

With a small amount of advertising and continued excellent reviews, planned giveaways should easily help us reach this goal. With a scheduled film release date of Christmas 2014, the goal is attainable and builds our SEVEN-X brand for immediate Box Office Success!

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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Below are excerpts from recent reviews: More can be found on the SEVEN-X website at http://www.seven-x.com Goodreads and Amazon.com

Erin said: “I LOVED it! I got the feel of Shutter Island + The Exorcist + Paranormal Activity.

Seven-X was so chilling, intense, well written, fast paced and kept me wanting more the whole time. I couldn't put the book down! This is one that is going to stick with me and I will think about for a long time. I really hope there will be a movie done at some point, or a sequel to the book or something!

S. Douglas said: Everyone fears being put in a position where you feel helpless. With Seven-X, Mike Wech manages to put you in that very same bone chilling position that you hope to escape but for morbid curiosity you voluntarily continue to read even your very soul is begging you to stop. Seven-X is truly a terrifying read, an adventure into the mouth of madness like no other.

Simone said: “Wow! This novel was fantastic! It was so well written that I was drawn in from the very first page. It was so accurate and seemed so real, I began to wonder if Eddie Hansen really existed. I loved the way it drew me in, put me on an emotional rollercoaster and wondering if Timothy’s accusations are true. This book gave me chills.”

T. Olivo said: I read this with only a break to sleep. I had read “It,” by Stephen King when I was in high school...no book has scared me before or since until Seven-X by Mike Wech. This novel devoured me! I didn't want to put it down. At the same time, I felt my heart racing from fear and the unbelievable twist and turns. It was as if I was with Eddie while he made his journey through his investigation at the behavioral hospital. I loved the style of writing, telling the story through Eddie's eyes and ears. It is like reading anyone's diary or journal...but so much more. You have to read this!

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC • 16

Felicia said: Wow. That was one of the creepiest books I have ever read. The end sent chills through me like no other. Make sure to read this book during daylight hours only.

Karen said: “I just devoured Seven X in one sitting. Yes, it was that good. Mike Wech has crafted a very entertaining and original story that will keep you turning pages until the end. What follows is an ending that begs for more...I am so glad that this is a trilogy so I can find out what happens next!

William said: Easily one of the best books I've read in awhile. A smart, intense, thinking man's thriller with a horror edge that immediately brings you into the action and keeps you there through every twist and turn. The writing is so vivid and the style is so unique, that it feels like you’re a part of the story.

Insanity!ishere said: Seven-X is the height of psychological thriller. These pages dig deep and it took me several days to finish this one as I had to put it down for me to absolutely absorb what I had read.

Melissa said: I really loved this book! I didn't want to put it down! It was very intense, creepy to the core, sent chills down my spine anticipating what was going to happen next! The wording was sensational! The way it was written made me feel as if I was right there with the main character Eddie Hanson in that mental hospital and experiencing the things he did while there! I highly recommend reading this book. I really hope this book gets made into a movie cause I will definitely be going to see this one!

C.S, Warn said: SEVEN-X is a well-written novel version of a film blockbuster bursting to fill a big screen. For me, it is damn creepy and I won't deny that. Reading this book is like listening to campfire stories that end up ruining your ability to sleep for a week! I am really looking forward to the movie and the rest of the trilogy.

Candy Davis said: Extremely intense! Wonderfully written! Scared the crap out of me! I loved this book. I could actually feel the hair on the back of my neck stand on end and feel the demon’s breath. It had me watching for shadows and listening for strange occurrences; not to mention turning on all of the lights in house as I walked into dark rooms SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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SEVEN-X SYNOPSIS Los Angeles Times Investigative Reporter Eddie Hansen's quest to get his story knows no boundaries. He built his reputation on getting the tough stories. When he receives confidential information that the infamous "SIDS KILLER," Annette Dobson's execution was fake, Eddie is compelled get her story.

The prison guard who released the information to Eddie goes missing, but clues lead him deep into the Guadalupe Mountains to the Uphir Behavioral Health Center where he believes Annette is being held.

Eddie voluntarily commits himself into the care of Dr. Alan Haworth, a controversial psychologist and Reverend William H. Billings, a local minister with expertise is in exorcism and spiritual warfare.

Armed with his camera and laptop Eddie compiles a diary of what he sees as forced experimental procedures on the prisoners. This could be worth millions if he breaks the story. But Eddie has to do it before the story breaks him.

As Eddie compiles evidence to back his claims, the world around him crumbles. Eddie sees and hears things that may or may not be real. But one thing he discovers cannot be refuted, Annette Dobson.

At the time of her controversial execution, Annette was pregnant. In the bowels of the asylum she is forced to have an exorcism and birth the child the world believes is dead as part an unregulated paranormal rehabilitation experiment.

Eddie finds the cold-blooded killer is not what she appears and she's guarded by a post-exorcism therapy Reverend Billing's terms the SEVEN-X phenomena. According to the Biblical records, when an evil spirit departs its host it will bring back SEVEN DEMONS more wicked than itself to reclaim the body!

As the demons manifest and organize their attack, Eddie is caught in the crossfire of paranormal activity. Warring forces attack his mind, soul and body and Eddie becomes an unwilling participant in the experiment and the subject of his own story.

To save himself from spiraling into madness, Eddie must discover the source of this unregulated experiment. Is experimental psychotherapy, drug testing, or is there a truly evil entity that demands Eddie's soul. The Only Way to Discover The Truth is to Devour SEVEN-X! SEE WHY PEOPLE ARE RAVING ABOUT SEVEN-X: AMAZON BARNES&NOBLE GOODREADS SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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BUDGET TOP SHEET

“Seven-X” BUDGET 12 hr-shoot day / 5 day week

Budget Dated:

Salim Khassa, Mike PREP: Wech, Tim 5Lowry Weeks (1/26/2015-03/06/2015) (03/09/2015-04/17/2015) SHOOT: 5 Weeks Mike Wech WRAP: 15 Weeks (04/27/2015-8/07/2015) ######## Location: West Virginia, Canada

Shoot Schedule:

25 days

Producer: Director: Writer:

ACCT#

DESCRIPTION

1100

STORY & SCREENPLAY

1200

PRODUCER

1300

DIRECTION

1400

CAST

1500

TRAVEL & LIVING

1600

A-T-L FRINGES TOTAL ABOVE-THE-LINE

DGA, WGA, SAG, IATSE, TEAMSTERS PAGE #

TOPSHEET TOTAL $94,656.00 $190,910.00 $219,392.00 $3,131,135.00 $63,635.00 $120,420.28 $3,820,148.28

2000

PRODUCTION STAFF

2100

EXTRA TALENT

2200

SET DESIGN

2300

SET CONSTRUCTION

$511,876.28

2500

SET OPERATIONS

$349,399.58

2600

SPECIAL EFFECTS

$132,276.02

2700

SET DRESSING

$565,675.06

2800

PROPERTY

$115,342.95

2900

WARDROBE

$124,554.82

3100

MAKEUP & HAIRDRESSING

$117,501.96

3200

ELECTRICAL

$351,426.77

3300

CAMERA

$310,289.49

3400

PRODUCTION SOUND

$122,240.04

3500

TRANSPORTATION

$342,936.41

3600

LOCATIONS

$360,518.26

3700

PIX VEHICLES/ANIMALS

$26,365.00

3800

FILM AND LAB

$14,000.00

3900

SPECIAL VISUAL EFFECTS

$26,365.00

4000

SECOND UNIT

$45,692.82

4100

TESTS

4300

PRODUCTION FRINGES TOTAL PRODUCTION

$383,091.16 $52,956.00 $174,350.13

$4,000.00 $543,015.87 $4,673,873.62 $1,808,152.28 $120,000.00

5000 5100

EDITING & PROJECTION MUSIC

5200

POST PRODUCTION SOUND

5300

POST PRODUCTION LABORATORY

$89,820.00

5400

OPTICAL EFFECTS

$35,000.00

5500

TITLES

$30,000.00

5700

POST-PRODUCTION FRINGES TOTAL POST PRODUCTION

$179,960.00

$14,413.00 $2,277,345.28

6500

PUBLICITY

6700

INSURANCE

$122,728.00

6800

GENERAL EXPENSES

$132,922.00

TOTAL OTHER TOTAL ABOVE-THE-LINE TOTAL BELOW-THE-LINE ABOVE & BELOW-THE-LINE TOTAL FRINGES

$43,635.00

$299,285.00 $3,820,148.28 $7,250,503.91 $11,070,652.18 $677,849.15

CONTINGENCY

$1,107,065.22

GRAND TOTAL

$12,177,717.40

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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PRODUCTION INCENTIVES Not included in the budget are tax incentives available to limit costs and help recoup the investment.

With our current five week schedule, 2 weeks can be shot in West Virginia with a 31% tax credit. (40% of budget) 3 weeks can be shot on Canadian Sound Stages to utilize their 40% overall rebate. (60% of budget) We have already contacted and have been working out deals with the West Virginia Film Commission and with various Canadian Studios and Production Companies.

Total Cost

WV 40% spend

Canada 60% spend

Talent $3,131,135 = Production $4,673,873 = Total Spend =

$1,252,454 $1,869,549 $3,122,003

Credit/Rebate

31%

40%

Money Back

$967,821

$1,872,402

APPROXIMATE TOTAL PRODUCTION INCENTIVES

+ + +

$1,876,681 $2,804,324 $4,681,005

= $2,840,222

We are also working out deals with Canadian and Korean visual effects teams who can offer up to 50% back on costs. With a 1.5 million visual effects budget we can be rebated anywhere from $500,000$750,000 SEVEN-X Film Budget $12,177,717 Production Rebates $2,840,222 Post Production Rebates -$500,000

-

Adjusted Budget After Incentives $8,837,495

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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LOCATION

A generous tax incentive of 31% is offered by the State of West Virginia and meetings with Jamie Cope of the Film Commission have an allocated budget by the State for the SEVEN-X project ready to go upon filing of the paperwork. West Virginia and the Trans-Allegheny Lunatic Asylum is proud to make SEVEN-X it’s home for our slate of films.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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In fact, the Trans-Allegheny Lunatic Asylum is the first to grant SEVEN-X permission to film a motion picture on the property.

Every filmmaker was denied as they want the premiere film to be special.

After reading SEVEN-X they were convinced that this is the film they want to show off the newly opened facility.

We have already established relationships with local crews, having worked with them on the SEVEN-X book trailer. Incentives on accommodations, food and equipment are very accessible and Weston, WV has been very cooperative in wanting SEVEN-X to film in the State. This will allow us to stay within our budgetary constraints. Additionally, we are working with the State of West Virginia and The Trans-Allegheny Lunatic Asylum to help renovate this historical landmark, and want to find ways to offer our investors tax breaks and incentives for this.

The SEVEN-X Film Group has been offered co-production agreements that will discount 3D-production, post-production, and visual effects. We are actively pursuing a studio partnership to build out some interior sets and use existing locations in the area for the remaining production schedule.

With a continuing series of films slated to be produced, set build outs and locations can maximize their value over the entire course of production.

Watch the SEVEN-X book trailer at http://www.sevenx.us to see the location and get more information on the SEVEN-Xperience.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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CASTING: SEVEN-X will be a showcase for upcoming talent and actors who are known commodities, levying international territories against the investment to recover capitol quicker, and insure marketability and security for the SEVEN-X FRANCHISE OF FILMS. A strong ensemble cast works well for sales, having used this formula for “Across The Line,” casting leads in their 50’s+ (post peak with proven track records and lesser fees) mixed with an up and coming leads or established A-List stars who can take profit participation and/or have production companies willing to enter into co-production agreements. This will ensure international sales and domestic box office success. Actors and their Agents/Managers understand that participation in a profitable franchise has security and extended opportunities for profits.

EDDIE HANSEN The role of Eddie Hansen can garner critical acclaim. It is the kind of role sought after by serious film actors looking to expand their career and their craft. This role is tailor made for the next breakout star, or for an A-List actor with his own production company to co-partner and share in the profits, while challenging himself and expanding his repertoire. Some A-List actors have been identified for this proposal. Our casting department will work vigorously to identify the next breakout star and work with sales agents, management and packaging agents to assist in completing the film package.

Jared Leto

Jake Gyllenhaal

Dominic Cooper

Bradley Cooper

Consider: Shia LeBeouf, Aaron Paul, Jeremy Renner, Chris Pine,

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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Annette Dobson The role of Annette Dobson is one of the more challenging roles to be offered to a female in recent cinema over 30 yrs of age. Annette must make us love, hate, pity and reverse our opinion of her with great versatility and emotion. This role will be sought after by serious actors looking to raise or maintain their profile as elite in their craft.

Juliette Lewis

Julianne Moore

Hilary Swank

Michelle Williams

Consider: Michelle Rodriguez, Audrey Tautou, Vera Farmiga, Rachel Weisz, Claire Danes

Dr. Alan Haworth A fun and manipulative role that blends cunning craftsmanship, high intelligence, a dose of insanity and love of power and control. This is the kind of critically acclaimed fun role for a character actor to devour.

Plus most of these actors do not command multi-million dollar salaries and are more interested in content at this point in their careers.

John Malkovich

John Lithgow

Christopher Walken

Ian McKellen

Consider: John Rhys-Davies, William Hurt, Crispin Glover, James Woods,

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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Rev. William Billings A tough, but sensitive role as an exorcist and spiritual mentor. An acclaimed role for a character actor to devour. Most actors in this age range do not command multi-million dollar salaries and are also more interested in content at this point in their careers.

Ving Rhames

Tiny Lister

Terry Crews

Danny Glover

There are also some fascinating supporting roles for character actors who faces or names we will instantly recognize putting together a great ensemble cast.

Other than the role of Eddie, most of the supporting actors will only need to work 8-12 days. The featured actors will work 3-5 days. A detailed shooting schedule will be created outlining each actor’s commitment as we maximize a schedule to maintain budget while allowing flexibility in negotiations.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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SALE OF PARTNERSHIP INTERESTS The Interests offered hereby have not been registered under the Securities Act of 1933, or any applicable state securities laws. The Interests are transferable only with the consent of the Manager, subject to certain conditions including registration of the Interests under the Securities Act of 1933 and any state securities laws, or the receipt of an opinion of counsel that such registration is not required. As Members will have no rights to require registration of their Interests, the Interests may only be resold in transactions exempt from the registration requirements of federal and state securities laws.

SALE OF THE FILM An investment in the Interests will be subject to certain risks arising out of federal income tax considerations, including: ▶ The possibility of the Internal Revenue Service audits and resulting possibility of amendments to the LLC and Members' tax returns; and ▶ Possible adverse tax consequences resulting from changes in the current tax code and/or administrative interpretations thereof; and ▶ Tax liability on the part of Members in the event that the LLC assets (e.g. the Motion Picture) are transferred voluntarily or by liquidation or foreclosure, if at the time of transfer the liabilities of the LLC (e.g. for borrowings secured by the Letters of Credit) exceed the LLC's basis in its assets (resulting in a taxable gain); such tax liability would exist even though the LLC would have no cash to distribute to its Members

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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RIGHTS AND OBLIGATIONS OF THE MEMBERS The Members in SEVEN-X FILM GROUP, LLC are so defined because their liability is limited to the extent of their capital contribution (i.e. their investment). The Members are protected against any liability beyond their investment, such as over budget costs, loans to the production, and lawsuits. Any liability beyond the investor’s capital contribution will be assumed by the Manager.

The investors are further limited in that they have no say in the running of the limited liability company.

The Manager maintains total control over the running of the business and total artistic control over the development, financing, and production of the picture. This includes spending money, maintaining books, hiring personnel, scheduling production, negotiating contracts, and all other activities necessary for completion of the project. The Manager recommends that anyone Interested in becoming a Member should consult the operating agreement for a complete understanding of his or her rights and obligations.

RIGHT AND OBLIGATIONS OF THE MANAGER The Manager will assume total control over the running of the limited liability company. The Manager maintains total control over the running of the business and total artistic control over the development and production of the film. This includes spending money, maintaining the books, hiring personnel, assembling components of the film package, negotiating a distribution deal, structuring the production company, and all other activities necessary for completion of the project.

The contributions of the Manager shall be the experience, expertise, time, talent, ability, contacts and enthusiasm required to fulfill the company's stated purpose.

The Manager intends to hire competent and qualified accountants from outside the company to handle all of the limited liability company book keeping, in addition to maintaining in-house records.

Company records can be made available to the Members upon request. Statements of limited liability company operations will be sent out to the Members on a quarterly basis (four times a year). The Manager recommends that anyone Interested in becoming a Member in the limited liability company should consult the articles of organization for a complete understanding of the rights and obligations of the Manager.

CONFLICT OF INTEREST The services of the Manager are non-exclusive. The Manager retains the right to be involved with other projects, even similar projects that may be in competition with the activities of the limited liability SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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RISK STATEMENT Motion picture investment entails a high degree of risk even when the picture is substantially packaged prior to financing. Recoupment of the investment and additional profits are largely a function of the film's cost of production and distribution in relation to its public appeal. The extent to which the picture will appeal to the public is largely dependent upon unpredictable critical reviews and public taste. The positive side is that there is potentially no limit to the amount of money a film can generate. However, if the film does poorly in sales and the Manager is unable to secure enough distribution agreements, the Members will lose their entire investment and will have no opportunity to recoup their investment by investment in, or cross collaboration with any other picture. The Manager is not liable for any monetary loss incurred by Members as a direct result of investment in SEVENX-FILM GROUP, LLC

ABOUT THE WRITER/PRODUCER Mike Wech is a writer, director and film editor living in Los Angeles, CA. Originally from Buffalo NY, Mike began his career in New York as an actor with appearances on Liquid Television, America's Most Wanted, One Life To Live and All My Children, as well as numerous stage plays.

With a taste of production, Mike moved behind the camera and began work as a writer crafting television commercials and shows like VH1's Fairway to Heaven, as well as his own material.

Over his career, Mike has worked as a Writer, Producer, Director, 1st AD, Script Supervisor, Production Coordinator, Camera Operator, Director of Photography, Assistant Editor, Editor, Post Production Supervisor, Motion Graphics, Visual Effects Artist and Colorist.

This broad array of work was a specific choice designed to understand every aspect of production from prep to post, with the goal of being able to effectively communicate the vision with each department and understand their needs; maximize value, understand technical guidelines and restraints in order to streamline production, maximize time and deliver the best quality within the budget constraints.

Mike’s first feature film, editor of the post apocalyptic "The Moment After2, The Awakening,” sold over one million dollars on DVD with a budget of 250k. More features and television shows followed including the critically acclaimed docu-drama "South Dakota" with Star Wars Producer Howard Kazanjian and Director Bruce Isacson, and the gritty crime drama, "The Exodus of Charlie Wright" starring Andy Garcia, Aidan Quinn, Gina Gershon and Luke Goss, directed by R. Ellis Frazier.

SEVEN-X is Mike’s debut novel and the first in the forthcoming SEVEN-X series of books and films. Every aspect of this story and structure was tailored to the business model outlined in this proposal.

We seek to maximize our investment, produce a high quality film and mitigate the risks associated with film investment.

Mike has established contacts and working relationships in the entertainment industry that can put together a top-notch team to work on the film from pre-production through post-production, insuring that the project stay within the budget allocated and be finished on time, with excellence and passion SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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SAFE HARBOR STATEMENT This memorandum describes the formation and operation of a Limited Liability Company to engage in the business of motion picture production and financing. The contents of this memorandum are confidential and are disclosed pursuant to a confidential relationship and may not be reproduced or otherwise used except for the purpose intended herein.

The interests described in this memorandum will not be registered under the Securities and Exchange Act of 1933 or any local securities law and are described as for investment only and not with a view to resale or distribution.

The purchase of interests described herein entails a high degree of risk and is suitable for purchase only by those who are qualified investors who can afford a total loss of their investment. Further, risk factors as contained in this memorandum (which does not include all possible factors) should be carefully evaluated by each prospective purchaser of a limited liability company interest herein.

The contents of this memorandum are not to be construed by any prospective purchaser of a limited liability company interest as business, legal, or tax advice and each such prospective purchaser will be required to demonstrate that he has the ability to evaluate the purchase of the limited liability company interests described herein or has retained the services of a representative who has such knowledge and expertise as may be necessary to evaluate purchase.

This memorandum is neither an offer to sell nor a prospectus, but is informational in nature.

SEVEN-X FINANCING PLAN • COPYRIGHT 2012 SEVEN-X FILM GROUP, LLC •

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