Exhibit 4.1

THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

ANGEL STUDIOS, INC.

SUBORDINATED CONVERTIBLE PROMISSORY NOTE

$

FOR VALUE RECEIVED, Angel Studios, Inc., a Delaware corporation (the “Company”) promises to pay to (“Investor”), or its registered assigns, in lawful money of the United States of America the principal sum of $      , together with interest accrued from the date of this Subordinated Convertible Promissory Note (this “Note”) on the unpaid principal balance at a rate equal to 16.00% per annum, compounded monthly, and computed on the basis of the actual number of days elapsed and a year of 360 days. All unpaid principal, together with any then unpaid and accrued interest and other amounts payable hereunder, shall be due and payable on the earlier of (i) December 31, 2025 (the “Maturity Date”), or (ii) when, upon or after the occurrence of an Event of Default (as defined below), such amounts are declared due and payable by Investor or made automatically due and payable in accordance with the terms hereof. This Note is issued pursuant to the Note Purchase Agreement of even date herewith (as amended, modified or supplemented, the “Note Purchase Agreement”) between the Company and the Investor. Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Note Purchase Agreement.

The following is a statement of the rights of Investor and the conditions to which this Note is subject, and to which Investor, by the acceptance of this Note, agrees:

1. Definitions. As used in this Note, the following capitalized terms have the following meanings:

(a) “Change of Control” means (i) a sale of all or substantially all of the Company’s assets, (ii) a merger, consolidation or business combination transaction of the Company with or into another corporation, limited liability company or other entity, in each case pursuant to which stockholders of the Company prior to such merger, consolidation or business combination transaction own less than fifty percent (50%) of the voting interests in the surviving or resulting entity, or (iii) the consummation of a transaction, or series of related transactions, in which any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of all of the Company’s then outstanding voting securities; provided that (x) in no event shall the Merger (as defined in the Note Purchase Agreement) constitute a Change of Control for purposes of this Note, and (y) notwithstanding the foregoing, a transaction shall not constitute a Change of Control if its purpose is to (A) change the jurisdiction of the Company’s incorporation, or (B) create a holding company that will be owned in substantially the same proportions by the persons who hold the Company’s securities immediately before such transaction.

(b)            “Company” means the corporation initially executing and issuing this Note and any Person which shall succeed to or assume the obligations of the Company under this Note.

(c)            “Conversion Price” means $39.00 per share (as the same shall be adjusted to account for any stock dividends, recapitalizations, stock splits or other similar adjustments or events occurring after the date hereof).

(d)            “Event of Default” has the meaning given in Section 4 hereof.

(e)            “Investor” shall mean the Person specified as Investor in the introductory paragraph of this Note or any Person who shall at the time be the registered holder of this Note.

(f)            “Note Purchase Agreement” has the meaning given in the introductory paragraph hereof.

(g)            “Obligations” shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Company to Investor of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), now existing or hereafter arising under or pursuant to the terms of this Note and the Note Purchase Agreement, including, all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by the Company hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U. S. C. Section 101 et seq.), as amended from time to time (including post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding.

(h)            “Person” shall mean and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental authority.

(i)            “Securities Act” shall mean the Securities Act of 1933, as amended.

(j)            “Senior Indebtedness” shall mean, unless expressly subordinated to or made on a parity with the amounts due under this Note, (i) the principal of (and premium, if any), unpaid interest on and amounts reimbursable, fees, expenses, costs of enforcement and other amounts due in connection with, indebtedness of Company for (x) amounts raised in any loan from Trinity Capital Inc. up to $50,000,000, (y) notes issued on a revolving basis to finance print and advertising expenses for film and content releases, and (z) financing received from General Catalyst that is not secured by assets of the Company, and (ii) all obligations of the Company under the Settlement Agreement, dated August 26, 2020, by and among the Company (f/k/a VidAngel, Inc.), Neal Harmon, Jeffrey Harmon, Disney Enterprises, Inc., Lucasfilm Ltd. LLC, Twentieth Century Film Corporation, Warner Bros. Entertainment Inc., MVL Film Finance, LLC, New Line Productions, Inc. and Turner Entertainment Co (the “Settlement Agreement”).¹

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2.            Interest. Interest on this Note shall accrue until the Obligations are paid in full or converted into shares of the Company’s Class C Common Stock, in accordance with the terms of this Note; provide that if an Event of Default occurs, and is continuing, or the Obligations have not been paid in full or converted into shares of the Company’s Class C Common Stock on or before the Maturity Date, the interest rate on this Note thereafter shall be 20.00% per annum, compounding monthly.

3.            No Prepayment. The Company shall not have the right to prepay this Note.

4.            Events of Default. The occurrence of any of the following events or circumstances shall constitute an “Event of Default” under this Note and the Note Purchase Agreement, whatever the reason or cause for any such event or circumstance, and whether it is voluntary or is affected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental authority:

(a) Failure to Pay. The Company shall fail to pay when due any principal or interest payment hereunder or any other payment required under the terms of this Note and Investor shall provide written notice to the Company of such failure to pay; or

(b) Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) be unable, or admit in writing its inability, to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, (v) become insolvent (as such term may be defined or interpreted under any applicable statute), (vi) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vii) take any action for the purpose of effecting any of the foregoing; or

(c) Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within 30 days of commencement; or 1 The Settlement Agreement is an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Link: https://www.sec.gov/Archives/edgar/data/1671941/000165495420010072/vid_ex13.htm.

(d) Cross-Default. An event or circumstance occurs that, under any of the Senior Indebtedness, or other any other outstanding indebtedness for borrowed money, subject to any waiver, forbearance or applicable notice, cure or grace periods with respect to such event or circumstance thereunder, constitutes an event of default or other similar term.

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5.            Rights of Investor upon Default. Upon the occurrence or existence of any Event of Default (other than an Event of Default described in Sections 4(b) or 4(c)) and at any time thereafter during the continuance of such Event of Default, Investor may by written notice to the Company, declare all outstanding Obligations payable by the Company hereunder to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived. Upon the occurrence or existence of any Event of Default described in Sections 4(b) and 4(c), immediately and without notice, all outstanding Obligations payable by the Company hereunder shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived. In addition to the foregoing remedies, upon the occurrence or existence of any Event of Default, Investor may exercise any other right power or remedy granted to it by or under this Note or the Note Purchase Agreement or otherwise permitted to it by law, either by suit in equity or by action at law, or both.

6.            Conversion.

(a) Automatic Conversion. If, at any time before or on the Maturity Date, the Company’s common stock becomes, or directly or indirectly converts into or is exchanged for equity securities, listed on a national securities exchange, whether by closing of the Merger, as defined in the Note Purchase Agreement, via a direct listing, or otherwise, this Note will, immediately prior to the consummation of the Merger or other event resulting therein, automatically convert into a number of shares of the Company’s Class C Common Stock equal to (i) the total outstanding principal amount of this Note, together with all accrued and unpaid interest and any other amounts payable to the Investor under this Note less any applicable tax withholding amount the Company is required to pay to a governmental authority in connection with such conversion, divided by (ii) the Conversion Price. Notwithstanding the foregoing, this Note shall not automatically convert into shares in connection with the Merger unless Southport, and any other applicable party, has consented to the Investor’s joinder to the Registration Rights Agreement (as defined in the Note Purchase Agreement).

(b) Voluntary Conversion. At any time when this Note remains outstanding, including after the Maturity Date, the Investor may, at its sole discretion and on more than one occasion, elect by written notice to the Company to convert all or any portion of the total outstanding principal amount of this Note, together with all or any of the accrued and unpaid interest and any other amounts payable to the Investor under this Note, into a number of shares of the Company’s Class C Common Stock equal to (i) the total amount of principal and accrued and unpaid interest, or other amounts payable to the Investor under this Note, which the Investor has elected to convert, divided by (ii) the Conversion Price. If, at any time, the Investor elects to convert less than all of the outstanding principal amount of this Note, together with all or any of the accrued and unpaid interest and any other amounts payable to the Investor under this Note, the Company shall promptly deliver to the Investor a Note that will be identical to this Note, but that will provide for an outstanding principal amount as of the date of issuance equal to the total of the Obligations then outstanding, after giving effect to this paragraph.

(c) Fractional Shares; Effect of Conversion. No fractional shares shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional shares to Investor upon the conversion of this Note, the Company shall pay to Investor an amount equal to the product obtained by multiplying the Conversion Price by the fraction of a share not issued pursuant to the previous sentence. Upon conversion of this Note in full and issuance to the Investor by the Company of the shares of the Company’s Class C Common Stock as determined in accordance with Section 6(a), the Company shall be forever released from all its obligations and liabilities under this Note.

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7.            Change of Control. If, at any time while this Note remains outstanding, a Change of Control occurs, then, immediately prior to such Change of Control, the Company shall pay the Investor, in full satisfaction of the Obligations under this Note, an aggregate amount equal to the greater of (a) two times (2X) the Obligations outstanding under this Note at such time, or (b) the amount the Investor would have received if it had converted such Obligations, in full, into shares of the Company’s Class C Common Stock pursuant to Section 6(b) as of such date.

8.            Successors and Assigns. Subject to the restrictions on transfer described in Section 9 below, the rights and obligations of the Company and Investor shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

9.            Waiver and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of the Company and Investor.

10.         Transfer of this Note or Securities Issuable on Conversion Hereof. With respect to any offer, sale or other disposition of this Note or securities into which such Note may be converted, the Investor will give written notice to the Company prior thereto, describing briefly the manner thereof and representing that, to the Investor’s actual knowledge, without any inquiry, the proposed transferee is not a competitor of the Company, together with a written opinion of Investor’s counsel, or other evidence if reasonably satisfactory to the Company, to the effect that such offer, sale or other distribution may be effected without registration or qualification (under any federal or state law then in effect). Upon receiving such written notice and reasonably satisfactory opinion, if so requested, or other evidence, the Company, as promptly as practicable, shall notify Investor that Investor may sell or otherwise dispose of this Note or such securities, all in accordance with the terms of the notice delivered to the Company; provided, for the avoidance of doubt, that the Company may only restrict a sale or other disposition if such sale or other disposition fails satisfy any of the requirements set forth in the immediately preceding sentence. If a determination has been made pursuant to this Section 10 that the opinion of counsel for Investor, or other evidence, is not reasonably satisfactory to the Company, the Company shall so notify Investor promptly after such determination has been made. Each Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions. Subject to the foregoing, transfers of this Note shall be registered upon registration books maintained for such purpose by or on behalf of the Company. Prior to presentation of this Note for registration of transfer, the Company shall treat the registered holder hereof as the owner and holder of this Note for the purpose of receiving all payments of principal and interest hereon and for all other purposes whatsoever, whether or not this Note shall be overdue and the Company shall not be affected by notice to the contrary.

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11.         Subordination. The indebtedness evidenced by this Note is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of all of the Company’s Senior Indebtedness.

(a) Insolvency Proceedings. If there shall occur any receivership, insolvency, assignment for the benefit of creditors, bankruptcy, reorganization, or arrangements with creditors (whether or not pursuant to bankruptcy or other insolvency laws), sale of all or substantially all of the assets, dissolution, liquidation, or any other marshaling of the assets and liabilities of the Company, (i) no amount shall be paid by the Company in respect of the principal of, interest on or other amounts due with respect to this Note at the time outstanding, unless and until the principal of and interest on the Senior Indebtedness then outstanding shall be paid in full, and (ii) no claim or proof of claim shall be filed with the Company by or on behalf of Investor which shall assert any right to receive any payments in respect of the principal of and interest on this Note except subject to the payment in full of the principal of and interest on all of the Senior Indebtedness then outstanding.

(b) Default on Senior Indebtedness. If there shall occur an event of default which has been declared in writing with respect to any Senior Indebtedness, as defined therein, or in the instrument under which it is outstanding, permitting the holder to accelerate the maturity thereof and Investor shall have received written notice thereof from the holder of such Senior Indebtedness, then, unless and until such event of default shall have been cured or waived or shall have ceased to exist, or all Senior Indebtedness shall have been paid in full, no payment shall be made in respect of the principal of or interest on this Note, unless within one hundred eighty (180) days after the happening of such event of default, the maturity of such Senior Indebtedness shall not have been accelerated.

(c) Further Assurances. By acceptance of this Note, Investor agrees to execute and deliver customary forms of subordination agreement requested from time to time by holders of Senior Indebtedness, and as a condition to Investor’s rights hereunder, the Company may require that Investor execute such forms of subordination agreement; provided that such forms shall not impose on Investor terms less favorable than those provided herein.

12.         Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing and emailed, mailed or delivered to each party at the respective addresses of the parties as set forth in the Note Purchase Agreement, or at such other address or email address as the Company shall have furnished to Investor in writing. All such notices and communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by email (with receipt of appropriate confirmation), (iv) one business day after being deposited with an overnight courier service of recognized standing or (v) four days after being deposited in the U.S. mail, first class with postage prepaid.

13.         Modifying Terms. If prior to the conversion or full repayment of this Note, the Company issues a convertible promissory note or other convertible instrument after the date hereof, in a transaction similar to the transaction contemplated hereby, then, within five (5) days after the issuance of such convertible promissory note or convertible instrument, the Company shall deliver to the Investor a copy of such convertible promissory note or convertible instrument and any ancillary agreements thereto that have Conversion Price, interest rate, conversion, subordination or registration rights terms which may be more favorable to the holder of such note than such terms of this Note (the “Modifying Terms”). Thereafter, the Investor may, at its option, request that the Company amend this Note to match the Modifying Terms, in which case, the Company shall promptly amend this Note as requested, and upon such request, this Note shall be deemed so amended.

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14.         Usury. In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note.

15.         Tax Matters. The Company acknowledges that for United States federal and state income tax purposes this Note is, and at all times has been, intended by the Investor to be characterized as stock, and more particularly as common stock for purposes of Sections 304, 305, 306, 354, 368, 1036 and 1202 of the Internal Revenue Code of 1986, as amended. Accordingly, the Company will treat this Note consistent with the foregoing intent for all United States federal and state income tax purposes (including, without limitation, on their respective tax returns or other informational statements) provided that in no event shall the Company be required to violate any appliable tax law in taking any action (or refraining to do so) otherwise required by this sentence and further provided that the Company’s tax advisors preparing its tax returns approve of such treatment in connection with the filing thereof.

16.         Waivers. The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to this instrument.

17.          Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law provisions of the State of Delaware, or of any other state.

(Signature Page Follows)

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IN WITNESS WHEREOF, the undersigned executed this Note as of the date first written above.

COMPANY:
ANGEL STUDIOS, INC.
By:
Name: Neal Harmon
Title: Chief Executive Officer

[Signature Page to Subordinated Convertible Promissory Note]

IN WITNESS WHEREOF, the undersigned executed this Note as of the date first written above.

INVESTOR:
By:
Name:
Title:

[Signature Page to Subordinated Convertible Promissory Note]