Promotional Ticket Allotment Policy

1. Purpose

This Policy establishes the number of complimentary tickets that BLOXoffice (the "Co-op") and each Filmmaker are entitled to distribute for marketing and promotional purposes in connection with a Film distributed through the BLOXoffice platform. Complimentary tickets are a benefit of the cooperative relationship and a tool for building audience, press, and community engagement around each Film.

2. Scope — Distribution Types Covered

This Policy applies to complimentary ticket allotments across all BLOXoffice distribution types, including:

• Premiere / Launch Events (in-person or virtual)
• Video on Demand (VOD)
• Subscription Video on Demand (SVOD)
• Limited-Run or Time-Limited Screenings
• Press / Festival Preview Windows
• Any future distribution type offered by BLOXoffice

Each distinct release event or distribution window for a Film constitutes a separate allotment period unless BLOXoffice and the Filmmaker agree otherwise in writing.

3. Allotment Structure

3.1 Co-op Promotional Allotment

BLOXoffice is entitled to distribute complimentary tickets per Film per release event for the Co-op's own marketing, promotional, press, and community outreach purposes, up to the Co-op Allotment established by resolution of the Co-op Board. The Co-op Allotment is set at the inaugural organizational meeting and may be updated by the Board or a Board-appointed committee thereafter. Current allotment figures are published in BLOXoffice's filmmaker onboarding documentation and available upon request at legal@bloxoffice.net.

Authorized uses of the Co-op's allotment include:

• Press and media screeners (journalists, critics, bloggers)
• Festival programmer and industry professional access
• Partner organization outreach (arts organizations, film societies, educational institutions)
• Co-op governance participants and founding members
• Platform demonstration and investor relations
• Social media promotion and influencer outreach
• Legal Corner educational events and workshops

3.2 Filmmaker Promotional Allotment

Each Filmmaker is entitled to distribute complimentary tickets per Film per release event for the Filmmaker's own marketing and promotional purposes, up to the Filmmaker Allotment established by Co-op Board resolution. Individual filmmakers may request an adjustment to their allotment within Board-approved guidelines by submitting a written request to legal@bloxoffice.net. Current allotment figures are published in BLOXoffice's filmmaker onboarding documentation.

Authorized uses of the Filmmaker's allotment include:

• Cast and crew screeners
• Personal press and media outreach
• Film festival networking and industry contacts
• Social media and community promotion
• Private advance screenings for supporters, funders, and collaborators
• Educational and community screening invitations

3.3 Combined Maximum Cap

The combined total of Co-op allotment tickets and Filmmaker allotment tickets across all uses shall not exceed the Combined Cap established by Co-op Board resolution per Film per release event.

Where the Co-op and Filmmaker together request more than the Combined Cap, the parties shall agree in writing on the allocation. Absent agreement, the Co-op and Filmmaker allotments shall be reduced proportionally to remain within the Combined Cap.

The Co-op Board (or a Board-appointed committee) sets the Co-op Allotment, Filmmaker Allotment, and Combined Cap at the inaugural organizational meeting. The Board may adopt tiered allotments by film type (e.g., feature vs. short vs. series) and may delegate ongoing management of these figures to a designated committee. All changes are communicated to active filmmakers with 30 days' advance notice.

4. Delivery Mechanism

4.1 Current Implementation — Stripe Coupon Codes

Complimentary tickets are currently distributed via Stripe coupon codes generating 100% discounts. BLOXoffice will generate unique coupon codes in batches upon Filmmaker's written request.

Each coupon code:

• Generates a unique 100% discount on the applicable ticket type
• Is single-use unless otherwise specified
• Has a specified expiration date set at the time of issuance
• Is non-transferable for resale or commercial purposes (see Section 5.3)
• Is tracked in BLOXoffice's revenue dashboard separately from paid transactions

4.2 Future Implementation — Blockchain-Based Verification

BLOXoffice intends to migrate complimentary ticket distribution to a blockchain-based verification method in a future platform update, consistent with the broader NFT ticketing implementation. Under the planned system, complimentary tickets will be issued as zero-value NFT tickets on the Algorand blockchain, with the same on-chain provenance and access controls as paid NFT tickets.

5. Conditions of Use

5.1 Authorized Purposes Only

Complimentary tickets may only be used for the marketing and promotional purposes described in Sections 3.1 and 3.2. They may not be used for:

• Personal entertainment unrelated to promotion of the Film
• Compensation of employees, contractors, or vendors in lieu of payment
• Barter, trade, or exchange for goods or services
• Distribution to immediate family members for casual viewing (unless within the Filmmaker's authorized allotment and labeled as promotional)

5.2 No Cash Value

Complimentary tickets have no cash value. They are not redeemable for cash or credit. They are not included in revenue calculations for any party.

5.3 Non-Transferable for Resale or Commercial Purpose

Complimentary tickets (including Stripe coupon codes) may not be resold, listed on secondary markets, traded for value, or used for any commercial purpose other than promotion of the Film. Violation of this restriction may result in revocation of remaining allotment for the current release event.

5.4 Expiration

All complimentary tickets expire at the close of the applicable release event window or 90 days from issuance, whichever is earlier, unless BLOXoffice specifies a different expiration at the time of issuance.

5.5 No Revenue Credit

Complimentary ticket redemptions are tracked separately and do not count toward the Filmmaker's revenue totals or toward any minimum performance thresholds in the Filmmaker Distribution Agreement.

6. Request Process

6.1 Filmmaker Request

To request complimentary ticket codes, Filmmakers submit a written request to legal@bloxoffice.net (or through the in-platform dashboard when available) specifying:

• Film title
• Release event / distribution type
• Number of codes requested (up to the allotment maximum)
• Intended use (press screeners, cast/crew, social media, etc.)
• Requested expiration date

BLOXoffice will generate and deliver the requested codes within 5 business days of a complete request.

6.2 Co-op Internal Allotment

The Co-op's allotment is managed internally by BLOXoffice administration and does not require a formal request process. All Co-op complimentary ticket distributions are logged in the platform's promotional tracking system.

7. Reporting and Transparency

BLOXoffice will include a summary of complimentary ticket distributions in each Filmmaker's quarterly revenue report, including:

• Number of Co-op allotment tickets distributed for the Filmmaker's Film
• Number of Filmmaker allotment tickets distributed
• Remaining allotment balance for any open release events

This reporting is part of BLOXoffice's commitment to financial transparency under the Financial Transparency Policy.

9. Modifications

The Co-op Board (or a committee appointed by the Board) may modify allotment figures with 30 days' written notice to active Filmmakers. Modifications apply prospectively to new release events and do not affect allotments already issued for ongoing release events.

Material changes to the conditions, delivery mechanism, or scope of this Policy require notification to all active Filmmaker members.