‘Each of us in Hollywood has the opportunity to assume the responsibility for creating films that elevate rather than denigrate, that shed light rather than dwell in darkness, that aim for the highest common good rather than the lowest.’

Jeffrey KatzenbergCo-founder of DreamWorks, SKG.

Often referred to as Stand By Me meets The Goonies, Saltwater Taffy is a race to the finish adventure for the entire family. The film will be produced by Michelle Manning, former Head of Production at Paramount Studios. 

Recognized as the second highest grossing female Executive in Hollywood history after Sherry Lansing, Michelle oversaw production expenditures of blockbuster films Forrest Gump, Saving Private Ryan and Titanic to name but a few. 

We are seeking $3.4M in capital to produce Saltwater Taffy, which is based on a total budget spend of $4,875,000. The difference and estimated $1,475,000 will come from the Film Incentive BC Tax Credit, a refundable labor-based incentive program for Canadian productions.

The choice to shoot Saltwater Taffy in Vancouver BC was not only based on the architectural likeness and small-town feel of Vancouver, but due largely to Producer Michelle Manning’s strong knowledge of the Canadian incentive program and crew relationships acquired during her current location work there for The Disney Channel.

The Saltwater Taffy investment model is based on extensive financial analysis of the film industry.  Veteran CEO Kelly Rodriques and finance executive Michael Steele collaborated with Unit Production Manager, Scott Putnam and Producer Michelle Manning to engineer a scalable budget and funding plan that specifically favors our investors. 

The investor group will be in first position until 120% of their investment is returned. All remaining revenues will be distributed proportionally based on investor and producer investments.

Executive Summary

As young children, our lives are filled with many amazing dreams of tomorrow. We believe we can accomplish anything and that nothing is out of reach. Because of our age, we aren’t worried about what other people think of us and we have an organic ability to listen to our heart’s desire. But, then… something happens.

We begin to grow up.

Faced with the peer pressure and the overwhelming drive of fitting in, we withdraw from our dreams and develop a dysfunctional habit of playing small. Over time, we find ourselves shying away from anything that might make us appear vulnerable to our peers and our self-worth is based on how many friends we have on Facebook, what label of clothing we wear, or how popular we are at school. Saddled with these bad mental habits, we begin to change our character and in the blink of an eye...

We lose sight of our dreams.

If a dysfunctional mental habit like this has the ability to derail a child’s future potential, is it possible for us to alter their direction by enhancing their entertainment experience? Welcome to Saltwater Taffy.

Our Potential Impact

- Confidentiality Notice -

This document and the information contained herein, is provided solely for the purpose of acquainting the reader with the Saltwater Taffy film. It is proprietary information and property of Saltwater Taffy LLC. By accepting this document, the recipient agrees to keep the contents in the strictest of confidence and will not reproduce or further distribute it without the express written consent of SEVEN. This document is solely a business plan covering aspects of the film, ‘Saltwater Taffy’ and is not to be construed as an offering for securities.

“Saltwater Taffy is like a #eld trip to Treasure Island with e Goonies. A pure joy to read

and explore!”

—Keil E. HilemanTeacher of the Year - Kansas

National Teacher of the Year - Finalist

 “My Students and I fell in love with Saltwater Taffy right from the start. What a great

adventure story!”

—Joy WeissTeacher of the Year - Arizona

“Saltwater Taffy is a riveting tale of adventure, friendship and buried treasure. Where was

this book when I was kid?”

—Gwen DesselleTeacher of the Year - Georgia

 “Saltwater Taffy entertains and educates.It’s Indiana Jones meets Stand By Me.

I love it.”

—LeAnn MorrisTeacher of the Year - Nevada

Released January 11, 2011, Saltwater Taffy is an award-winning best-selling children’s book. With over 15,000 copies in circulation and a third printing already underway, Saltwater Taffy has endorsements from 12 Teachers of the Year and is an Accelerated Reader title with school libraries across the country.

More than an award-winning children’s book or motion picture venture, the Saltwater Taffy brand platform is focused on family entertainment, child literacy, education and overall ‘tween-ager’ life potential and carries countless ancillary media spin-off opportunities. 

About The Book

eld trip to Treasure

The FilmSet during the 4th of July weekend in a seaside town, Saltwater Taffy follows the lives of five ‘Tween-age’ friends as they uncover a treasure map leading to the Lost Treasure of Jean Lafitte. The discovery takes them from one treasure-hunting adventure to the next as they try to outwit, out-think and out-maneuver everyone from a one-legged junkyard man and an overbearing town bully, to the creepy old man living at the top of the hill.

Like a compass guiding an explorer, Saltwater Taffy was created to not only entertain our children, but to help guide them towards their inner voice of confidence and strengthen their natural impulse for love. The more a child is able to develop an inner ‘heart compass’ habit, the more likely they grow up to become confident young men and women.

The Saltwater Taffy Brand

The box office analysis website The Numbers shows us that 19 Kids Fiction, also known as Family Films, were made in 2015 and 26 films were made in 2016. These films captured an impressive market share of 14.49% and 20.68 % respectively.

When compared to Contemporary Fiction, 398 films in 2015 and 340 in 2016, the kinder, gentler family film brand is the most prolific profiteers in the film business.

The Success of Family Films

RANK CREATIVE TYPE Movies 2016 Gross TICKETS SHARE1 Contemporary Fiction 340 $2,552,456,689 302,782,360 22.69%2 Kids Fiction 26 $2,327,035,823 276,042,197 20.68%3 Super Hero 9 $1,898,026,547 225,151,426 16.87%4 Science Fiction 34 $1,448,588,278 171,837,264 12.88%5 Fantasy 46 $1,369,133,690 162,412,037 12.17%6 Dramatization 79 $907,917,429 107,700,724 8.07%7 Historical Fiction 87 $664,245,631 78,795,401 5.90%8 Factual 154 $74,315,806 8,815,557 0.66%9 Multiple Creative Types 3 $3,140,488 372,535 0.03%

Market Share for Each Creative Type 2015

Market Share for Each Creative Type 2016

With a multitude of business line extensions and media spinoff properties, the Saltwater Taffy brand platform is focused on creating a ‘family event’ film, child literacy awareness, and education through Saltwater Taffy apps, games and 3D classroom content.

RANK CREATIVE TYPE MOVIES 2014 GROSS TICKETS SHARE1 Contemporary Fiction 398 $3,483,613,646 413,239,855 30.82%2 Science Fiction 40 $2,905,785,019 344,695,711 25.71%3 Kids Fiction 19 $1,637,457,850 194,241,729 14.49%4 Fantasy 61 $1,144,570,404 135,773,442 10.13%5 Dramatization 49 $1,061,425,548 125,910,477 9.39%6 Super Hero 4 $695,442,433 82,496,134 6.15%7 Historical Fiction 82 $305,689,186 36,262,022 2.70%8 Factual 145 $67,261,806 7,978,794 0.60%9 Multiple Creative Types 1 $2,412,493 286,179 0.02%

RANK CREATIVE TYPE MOVIES 2013 GROSS TICKETS SHARE1 Original Screenplay 467 $5,078,699,930 602,455,274 44.93%2 Fiction Book/Short Story 81 $2,386,907,541 283,144,387 21.12%3 Comic, Graphic Novel 14 $963,298,844 114,270,317 8.52%4 Fact-based Book or Article 23 $849,098,547 100,723,422 7.51%5 Real Life Events 175 $540,542,314 64,121,187 4.78%6 Based on TV Show 7 $504,048,430 59,792,218 4.46%7 Spin-Off 4 $360,965,180 42,819,118 3.19%8 Folk Tale/Legend/Fairytale 3 $238,447,498 28,285,585 2.11%9 Musical or Opera 2 $140,367,071 16,650,897 1.24%

10 Remake 10 $116,826,076 13,858,368 1.03%

RANK CREATIVE TYPE MOVIES 2014 GROSS TICKETS SHARE1 Original Screenplay 377 $4,726,505,209 560,676,585 42.01%2 Comic/Graphic Novel 15 $1,907,042,924 226,220,980 16.95%3 Fiction Book/Short Story 101 $1,852,767,135 219,782,529 16.47%4 Spin-Off 2 $649,112,965 77,000,351 5.77%5 Based on Real Life Events 206 $460,414,042 54,616,032 4.09%6 Fact-Based Book/Article 27 $419,676,251 49,783,650 3.73%7 Remake 11 $317,651,343 37,681,055 2.82%8 Based on Game 6 $238,684,480 28,313,696 2.12%9 Based on TV 3 $181,849,618 21,571,721 1.62%

10 Based on Toy 2 $154,155,310 18,286,513 1.37%

These numbers continue to prove the power of pre-branding when compared to films based on the original screenplay.

The Power of Pre-BrandingIn 2015, 81 films based on a Fiction Book or Short Story captured 21.12% share of the market and grossed $2.4 billion throughout the world. In 2016, 101 films based on a Fiction Book or Short Story captured a 16.47% and grossed $1.85 billion.

Market Share for Source Material in 2015

Market Share for Source Material in 2016

Profitability Study

The Dove Foundation, an organization dedicated to promoting family-oriented entertainment, found of the 8 million people who participated in their online survey about family entertainment, 94% believe that offensive content in TV, movies and the internet is on the rise. 93% want to see more wholesome family entertainment. 84% said if Hollywood made more family-oriented content, they would support it.

The Dove Foundation’s Film Profitability Study, shows us that Hollywood released 11x more R-rated movies than family films from 2005 - 2009, but family films produced 8x times more profit than R-rated content.

ROI by RATING

0%25%50%75%

100%125%150%

2005 2006 2007 2008 2009

3%20%12%

24%21%

47%45%62%

41%37% 40%58%

46%51%54% 61%82%

141%

55%61%

PG RPG13G

Potential Audience PoolAccording to the US Birth Registry from 2004 (children who are currently13 years old) to 2010 (children who are currently 7 years old), there are approximately 29.2M children in our target audience pool of children who are 7-13 years of age.

Unlike teenagers, this ‘tween’ market needs to be accompanied by an adult when they go to the movies. If one parent accompanies their child to the theater, our potential audience pool doubles to nearly 60M. Add in a second parent, nanny or parent friend, the potential audience pool reaches 90M.

Similar ‘PG’ Titles & Box Office Results

ROI Example Model

Budget: 20MGross: $42.5M Rating: PG

Budget: $19MGross: $44.5MRating: PG

Budget:$28MGross: $101.6MRating: PG

Budget: $36MGross: $58MRating: PG

Budget: N/AGross: $52MRating: PG

Budget:$37MGross: $95MRating: PG

Budget: $18MGross: $47MRating: PG

Budget: $22MGross: $77MRating: PG

Box Office Average for similar titles: $ 64,637,500

Theater Owner’s Take (average 50% ) < $ 32,318,750 >Distributor’s Take (12.5%) < $ 4,039,844 >Estimated Publicity & Advertising (10%) < $ 2,827,890 >Initial Investment < $ 3,400,000 >

Return on Investment $ 22,051,016Investor Pool ‘Use of money’ Return 12.5% < $ 2,756,377 >

Investor & Producer Profit Split 50%-50% $ 19,294,639

Similar ‘PG’ Titles - DVD & Blu-Ray Sales

Even though streaming VOD (VideoOnDemand) numbers arenʼt readily available since the model is so new and bound by constraints of NDA agreements, below is a ʻdigital salesʼ example for a deal with an outlet like iTunes.

iTunes 50% - 50%! ! Unit Price! ! Investor! ! Breakeven “Clicks”Purchases $14.99 $ 7.495 453,636Rentals# # # $ 4.99# # $ 2.495# #1,362,725

iTunes 60% - 40% Unit Price Investor Breakeven “Clicks”Purchases $14.99 $ 5.996 567,005Rentals# # # $ 4.99# # $ 1.996# #1,703,407

Online “Digital Market” Example:

DVD: N/ABluRay: N/ATotal: N/A

DVD: $4.5MBluRay: $1MTotal: $5.5M

DVD: $10.3MBluRay: $3.5MTotal: $13.8M

DVD: $13.3M BluRay: $6MTotal: 19.3

DVD: $15.7MBluRay: $4.7Total: $20.4M

DVD: $33.6MBluRay: $12.1MTotal: $45.7M

DVD: $17.1MBluRay: $3.9MTotal: 21M

DVD: $16.1MBluRay: $4.5MTotal: $20.6M

Budget: $1.15MGross: $64M DVD: $27MRating: PG

Budget: $18MGross: $45MDVD: $9.6MRating: PG

Budget:$28MGross: $101MDVD: $38MRating: PG

Budget: $18MGross: $122MDVD: $22MRating: PG

Budget:$55MGross: $110MDVD: $17.7Rating: PG

Budget: $28MGross: $97.7MDVD: $29MRating: PG-13

Budget: $700KGross: $17.5MDVD: N/ARating: R

Budget: $12MGross: $31.7MDVD: $3.4MRating: R

Independent Films & Box Office Results

Box Office Average for Independent Releases: $ 73,612,500

Theater Owner’s Take (average 45% - 55%) < $ 36,806,250 >Distributor’s Take (12.5%) < $ 4,600,781 >Estimated Publicity & Advertising (10%) < $ 3,220,547 >Initial Investment < $ 3,400,000 >

Return on Investment $ 25,584,922Investor Pool ‘Use of money’ Return 12.5% < $ 3,198,115 >

Investor & Producer Profit Split 50%-50% $ 22,386,807

ROI Example Model - Independent Release

Perhaps one of the most important ingredients of an independently financed film, other than having an amazing script, is the hiring of great actors through a veteran Casting Director. Michelle Manning has brought Gail Levin (Casting Director - Jerry Maguire, Almost Famous) on board as a Producer to oversee the casting of Saltwater Taffy. We couldn’t be more fortunate to have her established reputation with gifted actors and their agents as an integral part of the Saltwater Taffy producing team.

Unique Marketing IdeaCapitalizing on the HIDDEN CASH craze of 2014, where a San Francisco millionaire began hiding $100 bills and posting clues about their location via Twitter, we will host a series of Saltwater Taffy Buried Treasure Chests in key markets across the country.

Funded entirely through corporate sponsored cash and prizes, the only way to participate in the Saltwater Taffy Buried Treasure Hunt will be to see Saltwater Taffy in theaters.

Much like the treasure hunt featured in our film, moviegoers will be instructed via our ad-sponsored website, to collect secret messages placed throughout the film. When they sign up as a Saltwater TaffyAffiliate, users will receive additional clues based on how many other friends bring to the treasure hunt. The more the user sees the movie, the more friends they refer, the better their chances at solving the cipher. At no cost to the production, investors or distributor overhead, the idea escalates our repeat business model.

As you can see from the picture above, taken during the Hidden Cash frenzy in Hermosa Beach, California, people LOVE TO FIND BURIED TREASURE. To help get the ball rolling, Writer/Director Eric DelaBarre will spend $10,000 of his own money to mirror what the San Francisco millionaire did on Twitter. If this guy can get that type of turnout, not to mention national news coverage by giving away hundred dollar bills, imagine what we could do with Eric’s $10,000 marketing donation?

Celebrity Casting

Keith Devlin (Chief Scientist): A world famous Stanfordmathematician and the NPR Math Guy, Dr. Keith Devlin’s eight-year study of video games’ potential in math education resulted in the first book on the subject, Mathematics Education for a New Era.

John Romero (Chief Game Designer): John is a legendary game designer, programmer and artist whose work spans over 130 games, 107 of which have been published commercially, including the iconic works Wolfenstein 3D, DOOM and Quake.

Unique Market Position

According to birth rates from 2004 - 2010 our target audience (7-13 year olds) tops out at 29 million. Since parents are a ‘captive audience’ when they accompany their children to the movies, that potential audience tops 60 million. Set during a time when life was more ‘simple’ when compared to the hustle and bustle of today, we believe parents will fall in love with the nostalgic elements and overall moral-filled message of the Saltwater Taffy brand.

Unique Gaming ElementBrain Quake, the innovative game developer of educational gaming apps for children, has agreed to create a Saltwater Taffy app based on their successful cipher game engine. Through a proprietary distribution platform, they will distribute the Saltwater Taffy game into 22,000 elementary schools nationwide.

Investment Opportunity

Author Eric DelaBarre is past President of the Santa Monica Boys & Girls Club Council and a featured author in Boys Life Magazine, the official magazine for the Boy Scouts of America. Boys & Girls Clubs of America currently serves 4 million youth and the Boy Scouts of America serves 2.7 million with an additional 1 million parent volunteers.

Book endorsements from 12 Teachers of the Year and inclusion on the prestigious Accelerated Reader List with school libraries, helps to further mitigate risk through powerful youth organizations, educators and parental word-of-mouth opportunities.

Unique Evergreen Marketing

We are currently seeking $3.4M in capital to produce Saltwater Taffy, based on a total budget spend of $4,875,000. The difference and estimated $1,475,000 will come from the Film Incentive BC Tax Credit, a refundable labor-based incentive program for Canadian productions. After distributor fees and expenses, the investor group will be in first position until 120% of investment is returned. All remaining revenues will be distributed proportionally based on investor and producer agreements.

Financial DisclosureSeven Films LLC and its investors will employ a mutually agreed upon third party accounting firm to audit all financial expenditures associated with the film, as well as distribution of all profits. This plan of 100% transparency and full financial disclosure will eliminate any ‘creative accounting’ and ultimately maximize the ROI.

MICHELLE MANNINGProducer

Michelle Manning has been a respected member of the motion picture industry as a studio executive, producer and director for film and television for over thirty years. As President of Production for Paramount Pictures, Ms. Manning was responsible for managing all aspects of the development and production for Paramount Pictures motion pictures division.  Michelle joined Paramount in 1991 as Senior Vice President of Production and was promoted to Executive Vice President, Production in 1993.  In 1997 she became President of Production, overseeing Paramount

classic films like Forrest Gump (winner of six Academy Awards, including Best Picture), The Hours, (nominated for nine Academy Awards including Best Picture), Sydney Pollack’s The Firm starring Tom Cruise, The Talented Mr. Ripley, starring Matt Damon, Saving Private Ryan, starring Tom Hanks, and James Cameron’s Best Picture Winner, Titanic.

Before joining Paramount Pictures, Ms. Manning was Vice President of Production at Orion Pictures, where she served as production executive on Academy Award winning Best Pictures, The Silence of the Lambs and Dances With Wolves.

GAIL LEVINCasting Director/Producer

Gail Levin is a veteran Hollywood casting director best known for her work with Oscar-winning filmmaker Cameron Crowe. Her credits include Jerry Maguire, Lethal Weapon 2, Almost Famous, Vanilla Sky, and How To Lose A Guy in 10 Days. She cast a young Leonardo DiCaprio to star opposite Johnny Depp in What’s Eating Gilbert Grape, which earned DiCaprio his first Academy Award nomination.

Levin served as the Senior Vice President of Casting at Disney Telefilms from 1996 – 1999, and Executive Vice President of Features Casting at Paramount Pictures from 1999-2009. She is a member of the Academy of Motion Pictures Arts and Sciences and the Academy of Television Arts and Sciences.

Currently, Levin is casting the behind-the-scenes rock and roll comedy Roadies for HBO. Written and directed by Cameron Crowe, the series is produced by JJ Abrams through his Bad Robot production company.

Michelle Manning has been a respected member of the

director for film and television for over thirty years.

As President of Production for Paramount Pictures, Ms. Manning was responsible for managing all aspects of the development and

joined Paramount in 1991 as Senior Vice President of Production and was promoted to Executive Vice President, Production in 1993.

KELLY RODRIQUESExecutive Producer

Kelly Rodriques became CEO of Pensco Trust in 2010 to help navigate the company through its next phase of growth and has a proven track record of leading high-growth companies. He was instrumental in its sale to Opus Bank in 2016.

His executive experience spans private equity, software, and communications, with a particular focus on using technology to enable growth. As Operating Partner with Ignition Growth

Capital, a private equity firm based in Seattle, Kelly worked with emerging industry leaders to bring a rigorous system of assessment, strategy, and execution to their organizations. As CEO of Novo/Publicis, an internet marketing company, and Totality, a software and managed services provider, Kelly was instrumental in growing annual revenues and successfully selling these companies to Fortune 500 buyers.

A highly sought-after speaker, Kelly is well regarded for his passion and in-depth knowledge of how to use IRA retirement funds to invest in alternative investments — like private equity and real estate. He lives in Marin County, California with his wife and three children.

MICHAEL STEELEExecutive Producer

Over the past fifteen years, Michael Steele has been working in equity finance for Asia’s leading investment banks. He is known for rebuilding trading desks as Head of Equity Trading for Merrill Lynch, Credit Lyonnais and Nomura Bank.

Prior to equity finance, Michael was Partner at Howard Commercial, a venture capital arm of McDonald’s focused on bringing leading retail brands to Asia. Some of his clients included Starbucks, Costco and Warner Village Cinemas to name but a few. In 1997, Michael founded Enterprise Utilities, one of the first companies of its kind to

provide integrated cloud based communication services to Asia’s medium sized manufacturers.

He later sold Enterprise Utilities to a venture arm of President Enterprise, Taiwan’s largest retail conglomerate. Published in various technology publications, Michael continues to advise a number of emerging startups in Greater China and the Middle East. He and his wife are active philanthropists and live in Seattle, Washington with their daughter.

ERIC DELABARREWriter/Director

Eric DelaBarre is an award-winning author and filmmaker who began his career with Executive Producer Dick Wolf on NBC’s Emmy Award winning drama, Law & Order. After six seasons with Law & Order, and gaining membership to the Writer’s Guild of America, Eric left Wolf Films to become a Freelance Writer/Director. He wrote, produced and directed “Stop the Cycle,” a national, anti-smoking commercial for The American Lung Association and was nominated Best Director for the ITS Monitor Award.

Maxing out 22 credit cards, DelaBarre wrote, directed and produced the indie feature, Kate’s Addiction. Shot with a shoestring budget of $78,000, Eric was awarded “Filmmaker of the Future” at the Newport Beach International Film Festival and sold the picture to Lions Gate Films and Saban Entertainment for $490,000. The psychological thriller went on to gross more than $4.5 million in the domestic market alone.

Eric is a keynote speaker for elementary ‘Lit Jam’ festivals, past president of the Santa Monica Boys & Girls Club Council, and a best-selling ghostwriter with Random House/Harmony Books. He lives and works in Santa Monica, California with his wife, Julie (www.juliedelabarre.com) and their two children.

GREG BALDIDirector of Photography

From directing spot projects for Hyundai and Honda, to shooting action sequences on Jason Bourne, Jumanji, Quantum of Solace, both Avengers films, Jack Ryan: Shadow Recruit, Men in Black 3, The Dark Knight Rises, and The Amazing Spiderman 2, Greg Baldi’s career is varied, reflecting a unique set of talents.

He has cemented his reputation as the best kind of weapon - one specializing in bringing heart-pounding action to life.

On the branded entertainment front, Baldi’s work on the Hot Wheels Worlds Best Driver Movie - featuring Ronnie Renner, Casey Currie, Aaron Ross, Mario Andretti, Luke Johnson, Geoff Aaron and

Bryce Hudson - provided 22 minutes of action-packed fun for kids and adults of all ages. As a commercial Director/DP, Baldi was recently honored with a Gold award for Automotive Video at the Houston-Worldfest International Film Festival. Greg lives in Temecula, California with his wife and two boys.

with Guild of America,

Cycle,”Lung Association Monitor Award.

From directing spot projects for Hyundai and Honda, to shooting action sequences on both AThe Dark Knight Rises, career is varied, reflecting a unique set of talents.

He has cemented his reputation as the best kind of weapon - one specializing in bringing heart-pounding action to life.

On the branded entertainment front, Baldi’s work on the Hot Wheels Worlds Best Driver Movie - featuring Ronnie Renner, Casey Currie, Aaron Ross, Mario Andretti, Luke Johnson, Geoff Aaron and

W W W . W H A T A G R E A T B O O K . C O M

Over 47,000 students reached across the country...and counting.

“Friendships, bad guys and pirate treasure...what more could a young reader want. Kids will enjoy Saltwater Taffy so much they won’t even realize they are learning

some great life lessons.”

Paul Frick, PhDLicensed Psychologist

Professor of Psychology and Chair, University of New OrleansEditor, Journal of Clinical Child & Adolescent Psychology

ENDORSED BY ENDORSED BY 12 TEACHERS OF THE YEAR