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Confidential. For investor review only. Not for distribution.
Investor Document

Term Sheet

The economic terms governing investor participation in EVERYONE LLC. This is the source of truth for the deal. In the event of conflict between any other document and these terms, these terms control.

Updated July 6, 2026

Need the signable Word document? Download Exhibit A (.docx)

Summary of Terms

ItemTerm
IssuerEVERYONE LLC, a Delaware limited liability company
InstrumentProfit Participation Rights (not equity, not debt)
What You GetRight to share in Net Distributable Profits (NDP) from all revenue sources
What You Don't GetNo ownership, no shares, no voting rights, no governance
Minimum Investment$100,000
Use of FundsOperations, production, platform development, team wear launch
Return Structure50% of NDP until each investor reaches 2X, then a permanent 20% share, uncapped, in perpetuity

Profit Share Waterfall

The waterfall has two phases. In Phase 1, from the first dollar of Net Distributable Profits, investors receive 50% until each investor has received 2X their invested capital; the other 50% is split evenly across four buckets. Reaching 2X is a transition, not a termination. In Phase 2, which continues in perpetuity and uncapped, NDP is divided into five equal fifths, 20% each. Investors are never cut off.

PhaseInvestorsEVERYONE LLCTeamFundFoundation
Phase 1 (until each investor reaches 2X)50%12.5%12.5%12.5%12.5%
Phase 2 (after 2X, uncapped, forever)20%20%20%20%20%

Within any single year, if cumulative distributions cross 2X mid-year, the portion of that year's NDP that brings the investor up to exactly 2X is split at Phase 1 rates, and the remainder is split at Phase 2 rates. Participation is uncapped and continues in perpetuity: after doubling, investors step down to their permanent one-fifth share and keep participating for as long as the property generates profit.

Net Distributable Profits (NDP)

NDP is the money available for distribution after all costs are covered. It is calculated as follows:

  1. Gross Revenue (all sources: immersive venues, touring, streaming, team wear, book, platform, licensing, events)
  2. Less: Venue/Platform Splits (theater rental, ticketing fees, streaming platform takes, retail/wholesale partner markups)
  3. Less: Cost of Goods Sold (merchandise materials, manufacturing, fulfillment, shipping)
  4. Less: Marketing and Promotion (advertising, social media, PR, promo events, marketing salaries)
  5. Less: Operating Expenses (staff payroll, insurance, utilities, rent, professional services)
  6. Less: Production Budget (creative development, new production, content creation, equipment, subject to an annual limit)
  7. = Net Distributable Profits

These are normal and necessary business expenses. The waterfall ensures all costs are covered before profits are distributed. Specific ranges for each deduction category are set forth in the EVERYONE Business Plan.

Distribution Schedule

Distributions begin only after EVERYONE reaches profitability. Investors should expect no distributions for an extended period.

How the Pool Works

Pro Rata Allocation

Your share is determined pro rata based on your Investment Amount relative to the total capital raised from all Profit Participation investors. If you invest a larger amount, you receive a proportionally larger share of investor distributions. All investors in the same tranche share distributions on equal terms.

Most Favored Nation (MFN)

If the Company offers better economic terms to any investor at any time during the life of the offering, your terms automatically upgrade to match. There is no time limit on this protection. You always receive at least as favorable terms as any subsequent investor in the same offering. This is permanent.

The 2X Step-Down

Once your cumulative distributions equal 2X your original investment:

Within the year you cross 2X, the portion of NDP that brings you to exactly 2X is paid at your 50% Phase 1 rate, and the remainder that year is paid at your 20% Phase 2 rate. There is no point at which your participation ends.

Governance

Profit Participation investors have no governance rights. Specifically:

All company decisions are made by the founder-members, Zak and Zev Zaidman.

Transparency

The Company intends to provide investors with a voluntary annual summary covering revenue by category, expenses by category, Net Distributable Profits, distributions, and progress toward and past 2X. This summary is provided as a courtesy and does not constitute a contractual reporting obligation.

In addition, investors receive:

The Five Buckets (1/5 x 5)

Phase 2 is the EVERYONE thesis applied to money itself. Once investors are made whole and doubled, every dollar of profit is divided into five equal fifths, one for each party that makes the work exist:

Why it works this way, and why it matters: the people who take the earliest risk get an accelerated 50% return first, with downside protection. Then, rather than one party keeping all the upside, the value keeps flowing to everyone who contributed, for the life of the property. No one is cut off. No single party takes the whole reward. There are no required losers. The money structure mirrors the thesis: we are all on one team, and when the team wins, the whole team shares in it.

This Term Sheet is the source of truth for the economic terms. For the complete offering, review these documents in the Data Room:

DocumentWhat It Contains
Business PlanMarket opportunity, revenue projections, use of proceeds, competitive landscape, risk factors
Participation AgreementThe binding legal agreement: non-economic terms, transfer restrictions, investor qualifications, governing law, risk acknowledgment
Investment InvitationThe full investment case, narrative, and why this opportunity exists
Financial ModelRevenue projections, waterfall calculations, scenario analysis. Always current.
Accredited Investor QuestionnaireQualification verification for prospective investors

Questions? Contact core@everyone.team

This Term Sheet sets forth the definitive economic terms for EVERYONE LLC's Profit Participation Rights offering. It does not constitute legal advice. Prospective investors should consult with their own legal, tax, and financial advisors before making any investment decision. This is a private offering of securities to accredited investors only under Regulation D, Rule 506(b).

Last Updated: July 6, 2026 | Contact: core@everyone.team

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