CONFIDENTIAL — NON-BINDING SUMMARY OF TERMS

SUMMARY OF TERMS

Tim McGraw Entertainment Holdings, LLC

$300,000,000 Platform Equity Investment | January 2026

PARTIES & STRUCTURE
Issuer Tim McGraw Entertainment Holdings, LLC, a Delaware limited liability company ("TMEH" or the "Company")
Investors Qualified institutional and accredited investors (the "Investors")
Security Class A Membership Units of TMEH
INVESTMENT TERMS
Total Raise $300,000,000
  • Equity Investors: $150,000,000
  • Strategic Infrastructure Partner: $150,000,000
Pre-Money Valuation $200,000,000
Post-Money Valuation $500,000,000
Investor Ownership 60% of fully-diluted equity
Minimum Investment $5,000,000 (subject to Company discretion)
Use of Proceeds
  • Consolidation (EMCo, Down Home, Draft House): $110M (37%)
  • Platform Development (MCR, Festival, Expansion): $90M (30%)
  • Infrastructure (Working Capital, Corporate): $50M (17%)
  • MCI Optionality: $50M (17%)
GOVERNANCE
Board of Directors Seven (7) members:
  • Chairman: Tim McGraw (Founder)
  • CEO: Management designee
  • Vice Chairman: Strategic Partner designee
  • Investor Director: Lead Investor representative
  • Three (3) Independent Directors
Board Committees
  • Audit Committee: Chaired by Independent (Finance Expert)
  • Compensation Committee: Chaired by Independent
  • Strategy & ESG Committee: Chaired by Tim McGraw
Board Observer Rights Investors below board seat threshold receive non-voting observer rights
INVESTOR RIGHTS
Information Rights
  • Quarterly unaudited financial statements (within 45 days)
  • Annual audited financial statements (Big 4 auditor, within 90 days)
  • Annual budget and business plan
  • Quarterly investor calls
Board Seat Threshold Investors committing $50,000,000 or more entitled to one (1) voting board seat
Anti-Dilution Broad-based weighted average anti-dilution protection
Preemptive Rights Pro-rata participation rights in future equity offerings
ROFR Right of first refusal on secondary sales by other members
PROTECTIVE PROVISIONS
Investor Consent Required The following actions require approval of Investors holding a majority of Investor Units:
  • M&A transactions exceeding $25,000,000
  • Debt facilities exceeding $25,000,000 or 2.0x EBITDA
  • Issuance of equity (other than employee plans up to 10%)
  • Amendment to Operating Agreement affecting Investor rights
  • Material related party transactions
  • Material contracts exceeding $5,000,000 annual value
  • Change in auditor
Enhanced Rights ($50M+) Investors committing $50M+ receive:
  • Voting board seat
  • Consent on C-suite hires (CEO, CFO, President)
  • Exit veto on transactions returning less than 1.0x capital
DISTRIBUTIONS
Distribution Policy
  • Years 1-2: 0% (reinvestment phase)
  • Years 3-4: 40% of EBITDA
  • Years 5+: 50-60% of EBITDA
Distributions made quarterly, subject to maintenance of minimum liquidity reserves.
Distribution Waterfall Pro-rata based on ownership percentage
LIQUIDITY & EXIT
Tag-Along Rights Investors may participate pro-rata in any sale by Founder/Management
Drag-Along Rights Members holding 66% may compel sale, subject to:
  • Fair value floor (independent valuation)
  • No drag below 1.0x without enhanced investor consent
Registration Rights Demand registration (2x) and unlimited piggyback rights in event of IPO
IPO Lockup 180-day lockup following IPO
KEY PERSON PROVISIONS
Tim McGraw Commitment
  • Minimum 100 days per year dedicated to TMEH
  • Exclusivity: No competing ventures during investment period
  • 7-year commitment, Chairman Emeritus thereafter
Key Person Insurance $25,000,000 - $50,000,000 life and disability coverage on Tim McGraw
Health Notification Board notification within 72 hours of material health event
Succession Planning Formal succession plan to be developed within 12 months of closing
OTHER TERMS
Exclusivity Upon execution of term sheet, Company grants 60-day exclusivity to negotiate definitive agreements
Expenses Company to reimburse reasonable legal and due diligence expenses of lead investor(s), capped at $250,000
Governing Law Delaware
Confidentiality Terms confidential; disclosure only with consent or as required by law

Conditions to Closing

Non-Binding Nature

This Summary of Terms is intended as a basis for further discussion and is not intended to be, and does not constitute, a legally binding obligation. The terms set forth herein are subject to the completion of due diligence, negotiation of definitive agreements, and approval of all parties. No binding obligation shall arise until execution of definitive documentation. The provisions regarding Confidentiality and Exclusivity, however, shall be binding upon execution of this Summary of Terms.

TIM McGRAW ENTERTAINMENT HOLDINGS, LLC

By: _______________________

Name:

Title:

Date:

[INVESTOR NAME]

By: _______________________

Name:

Title:

Date: