# EDGAR Filing Document

**Accession Number:** 0001957666
**File Stem:** 0001670254-23-000050
**Filing Date:** 2023-1
**Character Count:** 399973
**Document Hash:** ddb626e99a6c20142a9f1c1aef685e31
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000050.hdr.sgml**: 20230130

**ACCESSION NUMBER**: 0001670254-23-000050

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 13

**FILED AS OF DATE**: 20230130

**DATE AS OF CHANGE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ranch Hand Supply Co LLC
- **CENTRAL INDEX KEY:** 0001957666
- **IRS NUMBER:** 842453319

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31690
- **FILM NUMBER:** 23564873

**BUSINESS ADDRESS:**
- **STREET 1:** 12501 PAULS VALLEY ROAD UNIT D
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78737
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 12501 PAULS VALLEY ROAD UNIT D
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78737

## Ex-99

### Attached PDF Documents

**Attachment 1:** `document_1.pdf`

# Form C

## Cover Page

Name of issuer:

Ranch Hand Supply Co. LLC

Legal status of issuer:

Form: Limited Liability Company

Jurisdiction of Incorporation/Organization: TX

Date of organization: 7/10/2019

Physical address of issuer:

12501 Pauls Valley Road

Unit D

Austin TX 78737

Website of issuer:

https://www.ranchriderspirits.com/

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

CIK number of intermediary:

0001670254

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

Amount of compensation to be paid to the intermediary, whether as a dollar amount or a percentage of the offering amount, or a good faith estimate if the exact amount is not available at the time of the filing, for conducting the offering, including the amount of referral and any other fees associated with the offering:

6.0% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

Any other direct or indirect interest in the issuer held by the intermediary, or any arrangement for the intermediary to acquire such an interest:

No

Type of security offered:

Common Stock
Preferred Stock
Debt
Other

If Other, describe the security offered:

Convertible Note

Target number of securities to be offered:

100,000

Price:

$1.00000

Method for determining price:

Pro-rated portion of the total principal value of $100,000; interests will be sold in increments of $1; each investment is convertible to one unit as described under Item 13.

Target offering amount:

$100,000.00

Oversubscriptions accepted:

Yes
No

If yes, disclose how oversubscriptions will be allocated:

Pro-rata basis
First-come, first-served basis
Other

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

Maximum offering amount (if different from target offering amount):

$1,235,000.00

Deadline to reach the target offering amount:

4/30/2023

NOTE: If the sum of the investment commitments does not equal or exceed the target offering amount at the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.

Current number of employees:

13

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $7,907,135.00 | $3,660,407.00 |
| Cash & Cash Equivalents: | $4,950,087.00 | $605,248.00 |
| Accounts Receivable: | $328,355.00 | $304,696.00 |
| Short-term Debt: | $9,147,315.00 | $989,615.00 |
| Long-term Debt: | $451,964.00 | $0.00 |
| Revenues/Sales: | $5,137,983.00 | $3,447,309.00 |
| Cost of Goods Sold: | $6,187,493.00 | $1,950,610.00 |
| Taxes Paid: | $0.00 | $0.00 |
| Net Income: | ($10,375,880.00) | ($501,105.00) |

Select the jurisdictions in which the issuer intends to offer the securities:

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, BS, GU, PR, VI, 1V

## Offering Statement

Respond to each question in each paragraph of this part. Set forth each question and any notes, but not any instructions thereto, in their entirety. If disclosure in response to any question is responsive to one or more other questions, it is not necessary to repeat the disclosure. If a question or series of questions is inapplicable or the response is available elsewhere in the Form, either state that it is inapplicable, include a cross-reference to the responsive disclosure, or omit the question or series of questions.

Be very careful and precise in answering all questions. Give full and complete answers so that they are not misleading under the circumstances involved. Do not discuss any future performance or other anticipated event unless you have a reasonable basis to believe that it will actually occur within the foreseeable future. If any answer

requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management and principal shareholders may be liable to investors based on that information.

## THE COMPANY

1. Name of issuer:

Ranch Hand Supply Co. LLC

## COMPANY ELIGIBILITY

2. ☑ Check this box to certify that all of the following statements are true for the issuer.

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding.
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

INSTRUCTION TO QUESTION 2: If any of these statements are not true, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding?

☐ Yes ☑ No

## DIRECTORS OF THE COMPANY

4. Provide the following information about each director (and any persons occupying a similar status or performing a similar function) of the issuer.

Director

Principal

Occupation

Managing

Main

Employer

Branch Duties

Year Joined as

Director

| Brian Murphy | Managing Member | Ranch Rider Spirits | 2019 |
| --- | --- | --- | --- |
| Quentin Cantu | Managing Member | Ranch Rider Spirits | 2019 |
| Brian Isern | President | BORA Venture Partners LLC | 2022 |
| Will Rives | CFO | Heaven Hill Distilleries | 2021 |

For three years of business experience, refer to Appendix D: Director & Officer Work History.

## OFFICERS OF THE COMPANY

5. Provide the following information about each officer (and any persons occupying a similar status or performing a similar function) of the issuer.

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Matt Molinari | COO | 2020 |
| Brian Murphy | Managing Member | 2019 |
| Quentin Cantu | Managing Member | 2019 |

For three years of business experience, refer to Appendix D: Director & Officer Work History.

*INSTRUCTION TO QUESTION 5: For purposes of this Question 5, the term officer means a president, vice president, secretary, treasurer or principal financial officer, comptroller or principal accounting officer, and any person that routinely performing similar functions.*

## PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power.

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |

No principal security holders.

*INSTRUCTION TO QUESTION 6: The above information must be provided as of a date that is no more than 120 days prior to the date of filing of this offering statement.*

*To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or*

share in such direction or control - as, for example, a co-trustee) they should be included as being “beneficially owned.” You should include an explanation of these circumstances in a footnote to the “Number of and Class of Securities Now Held.” To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

# BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer.

For a description of our business and our business plan, please refer to the attached Appendix A, Business Description & Plan

INSTRUCTION TO QUESTION 7: Wefunder will provide your company’s Wefunder profile as an appendix (Appendix A) to the Form C in PDF format. The submission will include all Q&A items and “read more” links in an un-collapsed format. All videos will be transcribed.

This means that any information provided in your Wefunder profile will be provided to the SEC in response to this question. As a result, your company will be potentially liable for misstatements and omissions in your profile under the Securities Act of 1933, which requires you to provide material information related to your business and anticipated business plan. Please review your Wefunder profile carefully to ensure it provides all material information, is not false or misleading, and does not omit any information that would cause the information included to be false or misleading.

# RISK FACTORS

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

8. Discuss the material factors that make an investment in the issuer speculative or risky:

We could become subject to supply chain issues down the line. In 2020 there were global can shortages. We

work with a can manufacturing plant in Austin, which we believe helps mitigate this risk moving forward - however, should our supply chain become impacted, our business may be as well.

We have relatively recently engaged with a new sales partner. Previously we have had an in-house sales team, and now we are outsourcing that part of the business. We are not the only brand sold by this new sales partner, so our ability to maintain their focus and attention on our brands will impact actual results.

The general economy could impact our business. Distributors and stores are holding onto less inventory on hand, which means that we're shipping less inventory to a single location.

We source our tequila from a distillery in Mexico. The Mexican government only allows one of those relationships at a time, which means that if something were to happen to them we would need to take the time to find a new distillery. An impact to our tequila supply could adversely impact our business.

We have experienced obsolescence of our finished goods inventory in the past, and while we have improved our production processes and material goods, it is possible we will experience further obsolescence. This would negatively impact our business.

Government regulation. As an alcohol business we are regulated at the state and federal level. Should government regulations change or should we fail to comply to them, our business may be impacted.

The Ready-To-Drink category is an emerging space that's highly competitive. Other competitors may be better funded and have more access to capital than we do.

Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the Company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.

*INSTRUCTION TO QUESTION 8: Avoid generalized statements and include only those factors that are unique to the issuer. Discussion should be tailored to the issuer's business and the offering and should not repeat the factors addressed in the legends set forth above. No specific number of risk factors is required to be identified.*

## The Offering

### USE OF FUNDS

9. What is the purpose of this offering?

The Company intends to use the net proceeds of this offering for working capital and general corporate purposes, which includes the specific items listed in Item 10 below. While the Company expects to use the net proceeds from the Offering in the manner described above, it cannot specify with certainty the particular uses of the net proceeds that it will receive from this Offering. Accordingly, the Company will have broad discretion in using these proceeds.

10. How does the issuer intend to use the proceeds of this offering?

If we raise: $100,000

Use of Proceeds: Inventory investment, distributor incentives, promotional activity, and other Corporate discretionary spend

If we raise: $1,235,000

Use of Proceeds: Inventory investment, further innovation development, distributor incentives, promotional activity, and other Corporate discretionary spend

INSTRUCTION TO QUESTION 10: An issuer must provide a reasonably detailed description of any intended use of proceeds, such that investors are provided with an adequate amount of information to understand how the offering proceeds will be used. If an issuer has identified a range of possible uses, the issuer should identify and describe each probable use and the factors the issuer may consider in allocating proceeds among the potential uses. If the issuer will accept proceeds in excess of the target offering amount, the issuer must describe the purpose, method for allocating oversubscriptions, and intended use of the excess proceeds with similar specificity. Please include all potential uses of the proceeds of the offering, including any that may apply only in the case of oversubscriptions. If you do not do so, you may later be required to amend your Form C. Wefunder is not responsible for any failure by you to describe a potential use of offering proceeds.

## DELIVERY & CANCELLATIONS

11. How will the issuer complete the transaction and deliver securities to the investors?

Book Entry and Investment in the Co-Issuer. Investors will make their investments by investing in interests issued by one or more co-issuers, each of which is a special purpose vehicle ("SPV"). The SPV will invest all amounts it receives from investors in securities issued by the Company. Interests issued to investors by the SPV will be in book entry form. This means that the investor will not receive a certificate representing his or her investment. Each investment will be recorded in the

books and records of the SPV. In addition, investors' interests in the investments will be recorded in each investor's 'Portfolio' page on the Wefunder platform. All references in this Form C to an Investor's investment in the Company (or similar phrases) should be interpreted to include investments in a SPV.

## 12. How can an investor cancel an investment commitment?

**NOTE: Investors may cancel an investment commitment until 48 hours prior to the deadline identified in these offering materials.**

The intermediary will notify investors when the target offering amount has been met. If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment).

If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment.

If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returned.

**An Investor's right to cancel.** An investor may cancel his or her investment commitment at any time until 48 hours prior to the offering deadline.

If there is a material change to the terms of the offering or the information provided to the Investor about the offering and/or the Company, the Investor will be provided notice of the change and must re-confirm his or her investment commitment within five business days of receipt of the notice. If the Investor does not reconfirm, he or she will receive notifications disclosing that the commitment was cancelled, the reason for the cancellation, and the refund amount that the investor is required to receive. If a material change occurs within five business days of the maximum number of days the offering is to remain open, the offering will be extended to allow for a period of five business days for the investor to reconfirm.

If the Investor cancels his or her investment commitment during the period when cancellation is permissible, or

during the period when cancellation is permissible, or does not reconfirm a commitment in the case of a material change to the investment, or the offering does not close, all of the Investor's funds will be returned within five business days.

Within five business days of cancellation of an offering by the Company, the Company will give each investor notification of the cancellation, disclose the reason for the cancellation, identify the refund amount the Investor will receive, and refund the Investor's funds.

The Company's right to cancel. The Investment Agreement you will execute with us provides the Company the right to cancel for any reason before the offering deadline.

If the sum of the investment commitments from all investors does not equal or exceed the target offering amount at the time of the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.

## Ownership and Capital Structure

### THE OFFERING

13. Describe the terms of the securities being offered.

Convertible note with $36,000,000.00 valuation cap; 20.000% discount; 8.0% interest.

See exact security attached as Appendix B, Investor Contracts.

Type of Security: Convertible Promissory Notes ("Notes").

Amount to be Offered: The goal of the raise is $100,000.00

Valuation Cap: $36,000,000.00

Discount: 20%

Maturity Date: 24 months from first note issuance

Interest Rate: 8.0%. Accrued interest on this Note shall be payable at maturity.

Conversion and Repayment

(a) Automatic Conversion. If a Qualified Financing occurs on or prior to the Maturity Date, then the outstanding principal amount of this Note and all accrued and unpaid interest on this Note shall automatically convert into fully paid and nonassessable Preferred Units issued in such Qualified Financing at the Conversion Price.

(b) Conversion at Maturity. At any time after the Maturity Date, if any principal or interest under this Note is then outstanding, then, at the election of the Investor, and at such time thereafter as designated thereby, the outstanding principal amount of this Note and all accrued and unpaid interest on this Note will automatically convert into fully paid and nonassessable Common Units at a price per unit equal to the Cap Price (the "Unit Optional Conversion").

(c) Conversion or Prepayment Premium upon a Change of Control. If a Change of Control occurs prior to a Qualified Financing, then at the election of the Investor either: (i) the Investor shall be paid a prepayment premium equal to all accrued and unpaid interest due on this Note as of immediately prior to such Change of Control plus one hundred percent (100%) of the outstanding principal amount of this Note, and the Note shall thereafter be cancelled and be of no further force or effect, whether or not it is delivered to the Company for cancellation; or (ii) the outstanding principal amount of this Note and all accrued and unpaid interest on this Note shall automatically convert as of immediately prior to such Change of Control into fully paid and nonassessable Common Units at a price per unit equal to the Cap Price (the "Change of Control Conversion").

"Qualified Financing" shall mean a transaction or series of transactions occurring on or after December 31, 2022, pursuant to which the Company issues and sells Preferred Units that do not rank junior to the Company's Class D Units with respect to their rights, preferences and privileges for aggregate gross proceeds of at least $1,000,000 (excluding all proceeds from the incurrence of indebtedness or other convertible instruments that are converted into such Preferred Units, or otherwise cancelled in consideration for the issuance of such Preferred Units) with the principal purpose of raising capital.

"Cap Price" shall mean the quotient obtained by dividing the Valuation Cap by (ii) the total number of Company units outstanding immediately prior to the initial closing of the Qualified Financing, Unit Optional Conversion or Change of Control Conversion, as applicable (assuming, without duplication, full

conversion or exercise of all outstanding convertible securities, rights, options and warrants, and, in the case of a Qualified Financing or Unit Optional Conversion only, the issuance of all units reserved for grant pursuant to the Company's equity incentive plans, but in all cases excluding conversion of the Note and other convertible instruments converted into units in connection with such transaction).

### **Senior Indebtedness**

The indebtedness evidenced by this Note is subordinated in right of payment to the prior payment in full of any Senior Indebtedness in existence on the date of this Note or hereafter incurred. 'Senior Indebtedness' shall mean, unless expressly subordinated to or made on a parity with the amounts due under this Note, all amounts due in connection with (i) indebtedness of the Company to banks or other lending institutions regularly engaged in the business of lending money (excluding venture capital, investment banking or similar institutions and their affiliates, which sometimes engage in lending activities but which are primarily engaged in investments in equity securities), and (ii) any such indebtedness or any debentures, notes or other evidence of indebtedness issued in exchange for such Senior Indebtedness, or any indebtedness arising from the satisfaction of such Senior Indebtedness by a guarantor.

### **Securities Issued by the SPV**

Instead of issuing its securities directly to investors, the Company has decided to issue its securities to the SPV, which will then issue interests in the SPV to investors. The SPV has been formed by Wefunder Admin, LLC and is a co-issuer with the Company of the securities being offered in this offering. The Company's use of the SPV is intended to allow investors in the SPV to achieve the same economic exposure, voting power, and ability to assert State and Federal law rights, and receive the same disclosures, as if they had invested directly in the Company. The Company's use of the SPV will not result in any additional fees being charged to investors.

The SPV has been organized and will be operated for the sole purpose of directly acquiring, holding and disposing of the Company's securities, will not borrow money and will use all of the proceeds from the sale of its securities solely to purchase a single class of securities of the Company. As a result, an investor investing in the Company through the SPV will have the same relationship to the Company's securities, in terms of number, denomination, type and rights, as if the investor invested directly in the Company.

## Voting Rights

If the securities offered by the Company and those offered by the SPV have voting rights, those voting rights may be exercised by the investor or his or her proxy. The applicable proxy is the Lead Investor, if the Proxy (described below) is in effect.

## Proxy to the Lead Investor

The SPV securities have voting rights. With respect to those voting rights, the investor and his, her, or its transferees or assignees (collectively, the “Investor”), through a power of attorney granted by Investor in the Investor Agreement, has appointed or will appoint the Lead Investor as the Investor’s true and lawful proxy and attorney (the “Proxy”) with the power to act alone and with full power of substitution, on behalf of the Investor to: (i) vote all securities related to the Company purchased in an offering hosted by Wefunder Portal, and (ii) execute, in connection with such voting power, any instrument or document that the Lead Investor determines is necessary and appropriate in the exercise of his or her authority. Such Proxy will be irrevocable by the Investor unless and until a successor lead investor (“Replacement Lead Investor”) takes the place of the Lead Investor. Upon notice that a Replacement Lead Investor has taken the place of the Lead Investor, the Investor will have five (5) calendar days to revoke the Proxy. If the Proxy is not revoked within the 5-day time period, it shall remain in effect.

## Restriction on Transferability

The SPV securities are subject to restrictions on transfer, as set forth in the Subscription Agreement and the Limited Liability Company Agreement of Wefunder SPV, LLC, and may not be transferred without the prior approval of the Company, on behalf of the SPV.

14. Do the securities offered have voting rights?

☐ Yes
☑ No

15. Are there any limitations on any voting or other rights identified above?

See the above description of the Proxy to the Lead Investor.

16. How may the terms of the securities being offered be modified?

Any provision of this Note may be amended, waived or modified upon the written consent of the Company and

modified upon the written consent of the Company and the Investor

Pursuant to authorization in the Investor Agreement between each Investor and Wefunder Portal, Wefunder Portal is authorized to take the following actions with respect to the investment contract between the Company and an investor:

1. Wefunder Portal may amend the terms of an investment contract, provided that the amended terms are more favorable to the investor than the original terms; and
2. Wefunder Portal may reduce the amount of an investor's investment if the reason for the reduction is that the Company's offering is oversubscribed.

### RESTRICTIONS ON TRANSFER OF THE SECURITIES BEING OFFERED:

The securities being offered may not be transferred by any purchaser of such securities during the one year period beginning when the securities were issued, unless such securities are transferred:

1. to the issuer;
2. to an accredited investor;
3. as part of an offering registered with the U.S. Securities and Exchange Commission; or
4. to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

NOTE: The term "accredited investor" means any person who comes within any of the categories set forth in Rule 501(a) of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

The term "member of the family of the purchaser or the equivalent" includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.

### DESCRIPTION OF ISSUER'S SECURITIES

17. What other securities or classes of securities of the issuer are outstanding? Describe the material terms of any other outstanding securities or classes of securities of the issuer.

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |

![img-0.jpeg](img-0.jpeg)

Describe any other rights:

**Voting:** Class A/B/C/D unit holders are entitled to one vote per unit; Class RR unit holders are not entitled to any voting rights.

**Liquidation preference:**

Except as set forth in Section 10.3(b) of the Operating Agreement, the Board shall calculate Net Cash Flow for distribution, and shall distribute such Net Cash Flow at such times as it determines in its discretion. Net Cash Flow shall be distributed to the Members as follows:

(i) With respect to Net Cash Flow from operations only:

a. First, (A) twenty percent (20%) to the Class A Members in proportion to their respective Percentage Interests and (B) eighty percent (80%) to the Preferred Members on a pari passu basis in proportion to their respective Unreturned Capital Amounts, in each case until such time as each Preferred Member's Unreturned Capital Amount has been reduced to zero; and

b. Second, to all Members in proportion to their respective Percentage Interests, provided that distributions with respect to any Class RR Units intended to qualify as “profits interests” shall be adjusted as necessary to comply with the requirements set forth in IRS Revenue Procedure 93-27 (as clarified by Revenue Procedure 2001-43).

(ii) With respect to all other Net Cash Flow (including Net Cash Flow related to the Winding Up and

liquidation of the Company and Net Cash Flow in connection with a Sale of the Company):

a. First, 100% to all Preferred Members, pro rata in proportion to each Member's Unreturned Capital Amount, until the Unreturned Capital Amounts of all Preferred Members have been reduced to zero; and

b. Next, to all Members in proportion to their respective Percentage Interests, provided that distributions with respect to any Class RR Units intended to qualify as 'profits interests' shall be adjusted as necessary to comply with the requirements set forth in IRS Revenue Procedure 93-27 (as clarified by Revenue Procedure 2001-43).

**'Preferred Member'** means any Member holding Preferred Units; provided, however, that if any Class A Member owns Preferred Units, such Class A Member will be considered a Preferred Member only with regard to the Preferred Units owned by such Class A Member, notwithstanding anything else in this Agreement to the contrary.

'Preferred Units' means, collectively, the Class B Units, the Class C Units and the Class D Units.

18. How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of security identified above?

The holders of a majority-in-interest of voting rights in the Company could limit the Investor's rights in a material way. For example, those interest holders could vote to change the terms of the agreements governing the Company's operations or cause the Company to engage in additional offerings (including potentially a public offering). A majority-in-interest must include approvals from BORA Venture Partners LLC and Heaven Hill Distilleries.

These changes could result in further limitations on the voting rights the Investor will have as an owner of equity in the Company, for example by diluting those rights or limiting them to certain types of events or consents. To the extent applicable, in cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional

equity, an Investor's interest will typically also be diluted. Based on the risk that an Investor's rights could be limited, diluted or otherwise qualified, the Investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns. Additional risks related to the rights of other security holders are discussed below, in Question 20.

19. Are there any differences not reflected above between the securities being offered and each other class of security of the issuer?

No.

20. How could the exercise of rights held by the principal shareholders identified in Question 6 above affect the purchasers of the securities being offered?

As holders of a majority-in-interest of voting rights in the Company, the unitholders may make decisions with which the Investor disagrees, or that negatively affect the value of the Investor's securities in the Company, and the Investor will have no recourse to change these decisions. The Investor's interests may conflict with those of other investors, and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the Investor.

For example, the unitholders may change the terms of the operating agreement for the Company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The unitholders may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company's securities in a way that negatively affects the value of the securities the Investor owns. Other holders of securities of the Company may also have access to more information than the Investor, leaving the Investor at a disadvantage with respect to any decisions regarding the securities he or she owns.

The unitholders may have the right to redeem their securities at any time. Unitholders could decide to force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its viability.

In cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the

Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional units, an Investor's interest will typically also be diluted.

21. How are the securities being offered being valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.

The offering price for the securities offered pursuant to this Form C has been determined arbitrarily by the Company, and does not necessarily bear any relationship to the Company's book value, assets, earnings or other generally accepted valuation criteria. In determining the offering price, the Company did not employ investment banking firms or other outside organizations to make an independent appraisal or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.

The initial amount invested in a Convertible Note is determined by the investor, and we do not guarantee that the Convertible Note will be converted into any particular number of units.

As discussed in Question 13, when we engage in Qualified Financing involving Preferred Units, Investors may receive a number of Preferred Units calculated with reference to the conversion price, which is equal to the lesser of (i) 80% of the cash price paid per unit for Equity Securities by the Investors in the Qualified Financing or (ii) the price equal to the quotient of the valuation cap of $36,000,000.00 (the 'Valuation Cap') divided by the aggregate number of outstanding units of the Company as of immediately prior to the initial closing of the Qualified Financing (assuming full conversion or exercise of all convertible and exercisable securities then outstanding, but excluding the units of equity securities of the Company issuable upon the conversion of the Notes or any other convertible instruments).

Because there will likely be no public market for our securities prior to an initial public offering or similar liquidity event, the price of the units that Investors will receive, and/or the total value of the Company's capitalization, will be determined by our board of directors. Among the factors we may consider in determining the price of units are prevailing market

conditions, our financial information, market valuations of other companies that we believe to be comparable to us, estimates of our business potential, the present state of our development and other factors deemed relevant. In the future, we will perform valuations of our units that take into account, as applicable, factors such as the following:

- unrelated third party valuations;

- the price at which we sell other securities in light of the relative rights, preferences and privileges of those;

- our results of operations, financial position and capital resources;

- current business conditions and projections;

- the marketability or lack thereof of the securities;

- the hiring of key personnel and the experience of our management;

- the introduction of new products;

- the risk inherent in the development and expansion of our products;

- our stage of development and material risks related to our business;

- the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the market conditions and the nature and history of our business;

- industry trends and competitive environment;

- trends in consumer spending, including consumer confidence;

- overall economic indicators, including gross domestic product, employment, inflation and interest rates; and

- the general economic outlook.

We will analyze factors such as those described above using a combination of financial and market-based methodologies to determine our business enterprise value. For example, we may use methodologies that assume that businesses operating in the same industry will exhibit similar characteristics and that the Company's value will correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

22. What are the risks to purchasers of the securities relating to minority ownership in the issuer?

An Investor in the Company will likely hold a minority position in the Company, and thus be limited as to its ability to control or influence the governance and

operations of the Company.

The marketability and value of the Investor's interest in the Company will depend upon many factors outside the control of the Investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision-making of its Management, and the Investor will have no independent right to name or remove an officer or member of the Management of the Company.

Following the Investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the Investor in the Company. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured.

The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the Investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor's interest in the Company.

23. What are the risks to purchasers associated with corporate actions, including additional issuances of securities, issuer repurchases of securities, a sale of the issuer or of assets of the issuer or transactions with related parties?

Additional issuances of securities. Following the Investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the Investor in the Company. The Investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be assured. The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the Investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor's interest in the Company.

Issuer repurchases of securities. The Company may have authority to repurchase its securities from unitholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interests held by other similarly situated investors to the Investor, and create pressure on the Investor to sell its securities to the Company concurrently.

A sale of the issuer or of assets of the issuer. As a minority owner of the Company, the Investor will have limited or no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the Investor will rely upon the executive management of the Company to manage the Company so as to maximize value for unitholders. Accordingly, the success of the Investor's investment in the Company will depend in large part upon the skill and expertise of the executive management of the Company. If the Management of the Company authorizes a sale of all or a part of the Company, or a disposition of a substantial portion of the Company's assets, there can be no guarantee that the value received by the Investor, together with the fair market estimate of the value remaining in the Company, will be equal to or exceed the value of the Investor's initial investment in the Company.

Transactions with related parties. The Investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management of the Company will be guided by their good faith judgement as to the Company's best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not arm's-length, but will be in all cases consistent with the duties of the management of the Company to its unitholders. By acquiring an interest in the Company, the Investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

24. Describe the material terms of any indebtedness of the issuer:

Convertible Note

| Issue date | 09/20/22 |
| --- | --- |
| Amount | $1,828,813.00 |
| Outstanding principal plus interest | $1,883,645.08 as of 12/30/22 |
| Interest rate | 12.0% per annum |
| Discount rate | 20.0% |
| Valuation cap | $15,000,000.00 |
| Maturity date | 09/21/24 |

The valuation cap is $12,000,000 for an Eligible Holder which shall mean an investor (i) to whom a Note is issued in the aggregate principal amount of at least $750,000 or (ii) (A) whose aggregate capital contributions to the Company (as calculated immediately prior to the

*Qualified Financing and including all purchase amounts under the Company's currently outstanding 'Series 2021-A' Notes held by such investor) exceed $1,250,000 and (B) who purchases a Note or Notes with an aggregate purchase amount equal to or exceeding $250,000.*

*If a Qualified Financing occurs on or prior to the Maturity Date, then the outstanding principal amount of this Note and all accrued and unpaid interest on this Note shall automatically convert into fully paid and nonassessable Preferred Units issued in such Qualified Financing at the Conversion Price. A Qualified Financing shall mean a transaction or series of transactions occurring on or after December 31, 2022, pursuant to which the Company issues and sells Preferred Units that do not rank junior to the Company's Class D Units with respect to their rights, preferences and privileges for aggregate with gross proceeds of at least $1,000,000 (excluding all proceeds from the incurrence of indebtedness or other convertible instruments that are converted into such Preferred Units, or otherwise cancelled in consideration for the issuance of such Preferred Units) with the principal purpose of raising capital.*

*Additional Convertible Notes expect to be funded after the initial closing of 12/30/22 noted above.*

As of December 2022, the company had outstanding equipment lease balances of $589,229. The leases have monthly payments of approximately $30,000. The end dates for the leases are 7/31/2024, 1/31/2025 and 12/31/2025.

*INSTRUCTION TO QUESTION 24: name the creditor, amount owed, interest rate, maturity date, and any other material terms.*

25. What other exempt offerings has the issuer conducted within the past three years?

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 5/2020 | Regulation D, Rule 506(b) | Preferred stock | $3,351,819 | General operations |
| 1/2021 | Regulation D, Rule 506(b) | Preferred stock | $5,999,606 | General operations |
| 9/2021 | Regulation D, Rule 506(b) | Convertible Note | $7,500,000 | General operations |
| 9/2022 | Regulation D, Rule 506(b) | Convertible Note | $1,828,813 | General operations |
| 12/2022 | Regulation D, Rule 506(b) | Preferred stock | $1,084,247 | General operations |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(6) of the Securities Act during the preceding 12- month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:

1. any director or officer of the issuer;
2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;
3. if the issuer was incorporated or organized within the past three years, any promoter of the issuer;
4. or (4) any immediate family member of any of the foregoing persons.

☑ Yes
☐ No

For each transaction specify the person, relationship to issuer, nature of interest in transaction, and amount of interest.

The Company had receivables from a prior subsidiary, which had a balance of $179,432 as of December 31st, 2020. In 2021, the owners determined that the subsidiary had been dissolved and thus would not be reimbursing the Company the total and therefore, the Company recorded bad debt expense for the total of $179,432 in 2021.

INSTRUCTIONS TO QUESTION 26: The term transaction includes, but is not limited to, any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangements or relationships.

Beneficial ownership for purposes of paragraph (2) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering statement and using the same calculation described in Question 6 of this Question and Answer format.

The term "member of the family" includes any child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the person, and includes adoptive relationships. The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.

Compute the amount of a related party's interest in any transaction without regard to the amount of the profit or loss involved in the transaction. Where it is not practicable to state the approximate amount of the interest, disclose the approximate amount involved in the transaction.

# FINANCIAL CONDITION
OF THE ISSUER

27. Does the issuer have an operating history?

☑ Yes
☐ No

28. Describe the financial condition of the issuer, including, to the extent material, liquidity, capital resources and historical results of operations.

## Management's Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

### Overview

One of the top tequila cocktails in the US & the original Ranch Water 🍀

### Milestones

Ranch Hand Supply Co LLC was organized in the State of Texas in July 2019.

Since then, we have:

- Started fast in Texas and outsold High Noon & Cutwater, currently #2 canned cocktail in the state
- Grew to become the #18 brand in the US in a large and high growth $2B canned cocktail market
- Generated $14m in revenue since launching our brand in January 2020
- Canned the original Ranch Water and sell more than all other Ranch Waters combined
- #2 canned cocktail in Whole Foods nationally. Clean ingredients resonate!

- Backed by Heaven Hill Brands, owners of Elijah Craig, Deep Eddy Vodka, Evan Williams and more
- Investor ambassadors include Defined Dish, Matt Pittman, Dylan Barbour, Scott Eastwood, JJ Redick

## Historical Results of Operations

Our company was organized in July 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.

- Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $5,137,983 compared to the year ended December 31, 2020, when the Company had revenues of $3,447,309. Our gross margin was -20.43% in fiscal year 2021, compared to 43.42% in 2020.
- Assets. As of December 31, 2021, the Company had total assets of $7,907,135, including $4,950,087 in cash. As of December 31, 2020, the Company had $3,660,407 in total assets, including $605,248 in cash.
- Net Loss. The Company has had net losses of $10,375,880 and net losses of $501,105 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- Liabilities. The Company's liabilities totaled $9,599,279 for the fiscal year ended December 31, 2021 and $989,615 for the fiscal year ended December 31, 2020.

## Liquidity & Capital Resources

To-date, the company has been financed with $10,435,672 in equity and $9,328,813 in convertibles.

After the conclusion of this Offering, should we surpass our $1,000,000 funding goal, our projected runway is 12 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don't have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the Offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this Offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this Offering is sold. The Company intends to

raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

## Runway & Short/Mid Term Expenses

Ranch Hand Supply Co LLC cash in hand is $700,000, as of December 2022. Over the last three months, revenues have averaged $200,000/month, cost of goods sold has averaged $164,000/month, and operational expenses have averaged $100,000/month, for an average burn rate of $64,000 per month. Our intent is to be profitable in 36 months.

Our highest sale season tends to be the summer. The winter is our down season. In June and July of 2022 we did $1M of revenue. Our trailing 12 month revenue is a little over $5M. In the winter months we decrease our expenses as we see sales slow down as well.

Our gross margin this year will be about 15%. In some months we are profitable, and in some months we are not (but we will not be profitable for the year). Our intention is to decrease overall spending and increase revenue, with majority of spend focused on Sales and Marketing, so that we move closer to profitability.

We are aiming to become break even by end of 2024 which is primarily dependent on gross margin. We anticipate if we can get our margin to around 40%, we can be cash-flow positive.

Our expectation is that moving forward our costs will be much more variable than fixed (as we outsource the sales team). We are getting into printed cans (rather than sleeved cans), which will help us increase our margin. Given our sales projections and estimated burn, we anticipate needing an additional $2m in capital in 2024 to hit break even.

All projections in the above narrative are forward-looking and not guaranteed.

INSTRUCTIONS TO QUESTION 28: The discussion must cover each year for which financial statements are provided. For issuers with no prior operating history, the discussion should focus on financial milestones and operational, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether historical results and cash flows are representative of what investors should expect in the future. Take into account the proceeds of the offering and any other known or pending sources of capital. Discuss how the proceeds from the offering will affect liquidity, whether receiving these funds and any other additional funds is necessary to the viability of the business, and how quickly the issuer anticipates using its available cash. Describe the other available sources of capital to the business, such as lines of credit or required contributions by shareholders. References to the

issuer in this Question 28 and these instructions refer to the issuer and its predecessors, if any.

## FINANCIAL INFORMATION

29. Include financial statements covering the two most recently completed fiscal years or the period(s) since inception, if shorter:

Refer to Appendix C, Financial Statements

I, Brian Murphy, certify that:

(1) the financial statements of Ranch Hand Supply Co.

LLC included in this Form are true and complete in all material respects ; and

(2) the financial information of Ranch Hand Supply Co.

LLC included in this Form reflects accurately the information reported on the tax return for Ranch Hand Supply Co. LLC filed for the most recently completed fiscal year.

Managing Member

## STAKEHOLDER ELIGIBILITY

30. With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, any promoter connected with the issuer in any capacity at the time of such sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2016:

(1) Has any such person been convicted, within 10 years (or five years, in the case of issuers, their predecessors and affiliated issuers) before the filing of this offering statement, of any felony or misdemeanor:

i. in connection with the purchase or sale of any security?

☐ Yes ☑ No

ii. involving the making of any false filing with the Commission? ☐ Yes ☑ No

iii. arising out of the conduct of the business of an

underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

(2) Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4A(b) of the Securities Act that, at the time of filing of this offering statement, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:

i. in connection with the purchase or sale of any security? ☐ Yes ☑ No
ii. involving the making of any false filing with the Commission? ☐ Yes ☑ No
iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

(3) Is any such person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit Union Administration that:

i. at the time of the filing of this offering statement bars the person from:
A. association with an entity regulated by such commission, authority, agency or officer? ☐ Yes ☑ No
B. engaging in the business of securities, insurance or banking? ☐ Yes ☑ No
C. engaging in savings association or credit union activities? ☐ Yes ☑ No
ii. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement? ☐ Yes ☑ No

(4) Is any such person subject to an order of the Commission entered pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:

i. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal? ☐ Yes ☑ No
ii. places limitations on the activities, functions or operations of such person? ☐ Yes ☑ No
iii. bars such person from being associated with any entity or from participating in the offering of any penny stock? ☐ Yes ☑ No

(5) Is any such person subject to any order of the Commission entered within five years before the filing of this offering statement that, at the time of the filing of this offering statement

orders the person to cease and desist from committing or causing a violation or future violation of:

i. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☑ No

ii. Section 5 of the Securities Act? ☐ Yes ☑ No

(6) Is any such person suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade?

☐ Yes ☑ No

(7) Has any such person filed (as a registrant or issuer), or was any such person or was any such person named as an underwriter in, any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?

☐ Yes ☑ No

(8) Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4A(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

☐ Yes ☑ No

If you would have answered "Yes" to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or bar occurred or been issued after May 16, 2016, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

INSTRUCTIONS TO QUESTION 30: Final order means a written directive or declaratory statement issued by a federal or state agency, described in Rule 503(a)(3) of Regulation Crowdfunding, under applicable statutory authority that provides for notice and an opportunity for hearing, which constitutes a final disposition or action by that federal or state agency.

No matters are required to be disclosed with respect to events relating to any affiliated issuer that occurred before the affiliation arose if the affiliated entity is not (i) in control of the issuer or (ii) under common control with the issuer by a third party that was in control of the affiliated entity at the time of such events.

# OTHER MATERIAL INFORMATION

31. In addition to the information expressly required to be included in this Form, include:

- (1) any other material information presented to investors; and
- (2) such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

The Lead Investor. As described above, each Investor that has entered into the Investor Agreement will grant a power of attorney to make voting decisions on behalf of that Investor to the Lead Investor (the "Proxy"). The Proxy is irrevocable unless and until a Successor Lead Investor takes the place of the Lead Investor, in which case, the Investor has a five (5) calendar day period to revoke the Proxy. Pursuant to the Proxy, the Lead Investor or his or her successor will make voting decisions and take any other actions in connection with the voting on Investors' behalf.

The Lead Investor is an experienced investor that is chosen to act in the role of Lead Investor on behalf of Investors that have a Proxy in effect. The Lead Investor will be chosen by the Company and approved by Wefunder Inc. and the identity of the initial Lead Investor will be disclosed to Investors before Investors make a final investment decision to purchase the securities related to the Company.

The Lead Investor can quit at any time or can be removed by Wefunder Inc. for cause or pursuant to a vote of investors as detailed in the Lead Investor Agreement. In the event the Lead Investor quits or is removed, the Company will choose a Successor Lead Investor who must be approved by Wefunder Inc. The identity of the Successor Lead Investor will be disclosed to Investors, and those that have a Proxy in effect can choose to either leave such Proxy in place or revoke such Proxy during a 5-day period beginning with notice of the replacement of the Lead Investor.

The Lead Investor will not receive any compensation for his or her services to the SPV. The Lead Investor may receive compensation if, in the future, Wefunder Advisors LLC forms a fund ("Fund") for accredited investors for the purpose of investing in a non-Regulation Crowdfunding offering of the Company. In such as circumstance, the Lead Investor may act as a portfolio manager for that Fund (and as a supervised

person of Wefunder Advisors) and may be compensated through that role.

Although the Lead Investor may act in multiple roles with respect to the Company's offerings and may potentially be compensated for some of its services, the Lead Investor's goal is to maximize the value of the Company and therefore maximize the value of securities issued by or related to the Company. As a result, the Lead Investor's interests should always be aligned with those of Investors. It is, however, possible that in some limited circumstances the Lead Investor's interests could diverge from the interests of Investors, as discussed in section 8 above.

Investors that wish to purchase securities related to the Company through Wefunder Portal must agree to give the Proxy described above to the Lead Investor, provided that if the Lead Investor is replaced, the Investor will have a 5-day period during which he or she may revoke the Proxy. If the Proxy is not revoked during this 5-day period, it will remain in effect.

Tax Filings. In order to complete necessary tax filings, the SPV is required to include information about each investor who holds an interest in the SPV, including each investor's taxpayer identification number ("TIN") (e.g., social security number or employer identification number). To the extent they have not already done so, each investor will be required to provide their TIN within the earlier of (i) two (2) years of making their investment or (ii) twenty (20) days prior to the date of any distribution from the SPV. If an investor does not provide their TIN within this time, the SPV reserves the right to withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations as well as the SPV's reasonable estimation of any penalties that may be charged by the IRS or other relevant authority as a result of the investor's failure to provide their TIN. Investors should carefully review the terms of the SPV Subscription Agreement for additional information about tax filings.

INSTRUCTIONS TO QUESTION 30: If information is presented to investors in a format, media or other means not able to be reflected in text or portable document format, the issuer should include:

- (a) a description of the material content of such information;
- (b) a description of the format in which such disclosure is presented; and
- (c) in the case of disclosure in video, audio or other dynamic media or format, a transcript or description of such disclosure.

ONGOING REPORTING

32. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its website, no later than:

120 days after the end of each fiscal year covered by the report.

33. Once posted, the annual report may be found on the issuer's website at:

https://www.ranchriderspirits.com/invest

The issuer must continue to comply with the ongoing reporting requirements until:

1. the issuer is required to file reports under Exchange Act Sections 13(a) or 15(d);
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 4(a)(6), including any payment in full of debt securities or any complete redemption of redeemable securities; or the issuer liquidates or dissolves in accordance with state law.

# APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

Ranch Rider Convertible Note

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Brian Isern

Brian Murphy

Matt Molinari

Quentin Cantu

Will Rives

Appendix E: Supporting Documents

RHSC_-_Class_D_-_AR_Company_Agreement_Final_.pdf

# Signatures

*Intentional misstatements or omissions of facts constitute federal criminal violations. See 18 U.S.C. 1001.*

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

Ranch Rider Convertible Note

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Brian Isern

Brian Murphy

Matt Molinari

Quentin Cantu

Will Rives

Appendix E: Supporting Documents

RHSC_-_Class_D_-_AR_Company_Agreement_Final_.pdf

*Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.*

Ranch Hand Supply Co. LLC

By

*Brian Murphy*

Co-founder, Co-CEO

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Form C and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.

*William Rives*

Director
1/27/2023

*Matt Molinari*

COO
1/27/2023

*Quentin Cantu*

Co-CEO
1/27/2023

*Brian Murphy*

Co-founder, Co-CEO
1/27/2023

*The Form C must be signed by the issuer, its principal executive officer or officers, its principal financial officer, its controller or principal accounting officer and at least a majority of the board of directors or persons performing similar functions.*

I authorize Wefunder Portal to submit a Form C to the SEC based on the information I provided through this online form and my company's Wefunder profile.

As an authorized representative of the company, I appoint Wefunder Portal as the company's true and lawful representative and attorney-in-fact in the company's name.

company's true and lawful representative and attorney-in-fact, in the company's name, place and stead to make, execute, sign, acknowledge, swear to and file a Form C on the company's behalf. This power of attorney is coupled with an interest and is irrevocable. The company hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of Wefunder Portal taken in good faith under or in reliance upon this power of attorney.

**Attachment 2:** `document_2.pdf`

![img-0.jpeg](img-0.jpeg)

INVEST IN RANCH RIDER SPIRITS CO.

Share

## One of the top tequila cocktails in the US & the original Ranch Water 😊

LEAD INVESTOR

**Dylan Barbour**

I've been a customer and fan of Ranch Rider for years. Brian + Quentin are experienced founders who understand what it takes to build a sustainable brand with even better taste. I cannot wait to see what these two accomplish in the near and distant future with the brand. Their financial growth over the past few years has been impressive, but not as impressive as the brand loyalty they've garnered from folks all over the country (and especially in ATX). I'm excited to further support the brand in any way I can.

Invested $1,000 this round & $37,760 previously

Learn about Lead Investors

ranchriderspirits.com

Austin Texas

Food & Beverage

B2C

Brewery

OVERVIEW UPDATES WHAT PEOPLE SAY ASK A QUESTION

# Highlights

1 Started fast in Texas: outsold High Noon & Cutwater. Currently the #2 canned cocktail in all TX
2 Generated $14m in revenue since launching our brand in January 2020
3 Grew to become the #18 brand in US in a large and high growth $2B canned cocktail market
4 We canned the original Ranch Water and sell more than all other Ranch Waters combined
5 #2 canned cocktail in Whole Foods nationally. Clean ingredients resonate!
6 Backed by Heaven Hill Brands, owners of Elijah Craig, Deep Eddy Vodka, Evan Williams and more
7 Investor ambassadors include Defined Dish, Matt Pittman, Dylan Barbour, Scott Eastwood, JJ Redick
8 Founded in a food truck on an investment from Texas professors: investors made 30%+ return

# Our Team

![img-1.jpeg](img-1.jpeg)

**Brian Murphy** Co-founder, Co-CEO

2x Founder. Texas MBA & Amherst College Alum. Former TaylorMade Golf & adidas Marketing, UPROXX/Barstool Sports Partnerships.

![img-2.jpeg](img-2.jpeg)

**Quentin Cantu** Co-founder, Co-CEO

3x Founder. Texas MBA. Former political advisor & Whole Foods consultant

![img-3.jpeg](img-3.jpeg)

**Matt Molinari** COO

MBA & CPA. 15 years CPG & hospitality experience (finance and operations)

SHOW MORE

## Simply the West 😊🚀

![img-4.jpeg](img-4.jpeg)

Founder commentary will go here! Feel free to drop any comments / questions on our page after you’ve taken a read through the deck. Thanks for taking a look.

- Brian & Quentin

# AGENDA

1. THE PROBLEM & OUR SOLUTION
2. THE TEAM & CATEGORY
3. OUR PERFORMANCE
4. WHAT'S NEXT

R_R

CONFIDENTIAL

![img-5.jpeg](img-5.jpeg)

Most canned beer

# alternatives on the market fall into one of two categories:

## 1) Sugary

Most canned cocktails on the market are packed with sugar: the leading margarita uses almost 7 packets!

![img-6.jpeg](img-6.jpeg)

![img-7.jpeg](img-7.jpeg)

![img-8.jpeg](img-8.jpeg)

We once almost dropped a wheelbarrow of sugar off to our friends at Cutwater (because we don't need any), but were fearful of a lawsuit.

## 2) Artificial tasting

Others, trying to avoid sugar, pack in lab-created erythritol, stevia, aspartame or 'natural'

![img-9.jpeg](img-9.jpeg)

flavors.

![img-10.jpeg](img-10.jpeg)

You know it when that liquid hits your lips: “something tastes artificial here”.

OUR SOLUTION:

## Ranch Rider Spirits Co.

Just premium spirits, sparkling water & fresh-squeezed citrus.

![img-11.jpeg](img-11.jpeg)

The Best of the West!

*The Original*  
**RANCH  
WATER**

We were the *first to can* this legendary Southwestern recipe in 2019. Ranch Water combines

![img-12.jpeg](img-12.jpeg)

**WHAT WE USE:**

All-natural, simple, ingredients you can pronounce & buy at the grocery store, and the highest quality of spirits.

**WHAT WE  
NEVER USE:**

Lab-created “natural flavors,” additives,

just three clean ingredients:
premium reposado tequila,
sparkling water, and fresh-
squeezed lime.

![img-13.jpeg](img-13.jpeg)

preservatives, sweeteners
or malt liquor.

We were the first to can this classic Texas bar call called "Ranch Water". It is a
trend that is catching fire nationwide and we are the #1 selling tequila-based
Ranch Water in the country!

![img-14.jpeg](img-14.jpeg)

Quality spirits and ingredients you can pronounce and buy at the grocery store: a
delicious combination.

# A difference
you can see

Using only premium spirits,
sparkling water and fresh-
squeezed citrus. Just like
you'd make them at home.
Our drinks have real color

![img-15.jpeg](img-15.jpeg)

because fruit has real
color.

![img-16.jpeg](img-16.jpeg)

Have you ever seen a clear grapefruit?

| HOW WE STACK UP |  |  |  |  |
| --- | --- | --- | --- | --- |
|  | RANCH RIDER No added sugar or anything made in a lab | CUTWATER Lab created flavors, cane sugar, citric acid, sodium citrate | HIGH NOON Lab-created flavors, citric acid, potassium citrate & sorbate | WHITE CLAW Lab created flavors, cane sugar, citric acid, sodium citrate |
| ADDITIVES |  |  |  |  |
| SUGAR | 0.4g Sugar | 27g Sugar | 2.9g Sugar | 2g Sugar |
| ALC BASE | Reposado Tequila & 6x Distilled Vodka | Well Tequila | Well Vodka | Malt-liquor |
| CALORIES | 119 Calories | 360 Calories | 100 Calories | 100 Calories |
| OWNER | Employee-owned | AB InBev | E & J Gallo | Mark Anthony Brands |

A product that cuts no corners, and a business that is employee-owned & operated!

![img-17.jpeg](img-17.jpeg)

CONFIDENTIAL

![img-18.jpeg](img-18.jpeg)

We raised $60k from professors & classmates to start a healthy food truck on campus. The food truck did almost $1m in revenue its first year and the investors made a great return. We now can the drinks we used to share with our customers after our shifts.

![img-19.jpeg](img-19.jpeg)

experiential retail experience

October 7, 2020

CONFIDENTIAL

# THE BOARD OF DIRECTORS

INVOLVED FOUNDERS WITH A LARGE SPIRITS SUPPLIER AS AN ACTIVE BOARD MEMBER & ADVISOR

![img-20.jpeg](img-20.jpeg)

QUENTIN
CANTU

BOARD MEMBER

- Co-founder & Texas MBA
- Oversees supply chain, ops, & production team of 15 employees
- Three-time founder

![img-21.jpeg](img-21.jpeg)

BRIAN
MURPHY

BOARD MEMBER

- Co-founder & Texas MBA
- Former TaylorMade Advisors Marketing, CA
- UPROXX and Burshot Sports Brand Partnerships, NYC

![img-22.jpeg](img-22.jpeg)

WILL
RIVES

BOARD MEMBER

- Current CFO of Heaven Hill Brands
- 10 yrs of M&A and financial experience of Heaven Hill Brands
- 7 yrs previously at Deloitte

![img-23.jpeg](img-23.jpeg)

BRIAN
ISERN

BOARD MEMBER

- Founder, President of BORA Venture Partners, LLC
- Co-Founder, President & Sole Manager of Sibling Capital Ventures LLC
- 10+ years in VC Industry

CONFIDENTIAL

A highly motivated and experienced team - changing the ready-to-drink category one can at a time!

# INVEST WITH THE BEST: CURRENT INVESTORS

INDUSTRY INVESTORS

![img-24.jpeg](img-24.jpeg)

Evan
Williams

Mezeal Vago

HEAVEN HILL BRANDS
BOARD MEMBER & #1 INVESTOR

BLUE RIDGE
SPIRITS & WINE MARKETING

BLUE RIDGE SPIRITS

EXCLUSIVE US SALES RELATIONSHIP

GOAT RODEO
CAPITAL
GOAT RODEO
INDUSTRY INVESTOR

KEY AMBASSADOR INVESTORS

![img-25.jpeg](img-25.jpeg)

DYLAN BARBOUR
FOLLOWERS: 1M

![img-26.jpeg](img-26.jpeg)

SCOTT EASTWOOD
FOLLOWERS: 4M

![img-27.jpeg](img-27.jpeg)

JJ REDICK
FOLLOWERS: 500,000

![img-28.jpeg](img-28.jpeg)

HANNAH G
FOLLOWERS: 2M

![img-29.jpeg](img-29.jpeg)

MEAT CHURCH
FOLLOWERS: 830,000

![img-30.jpeg](img-30.jpeg)

ALEX SNODGRASS
FOLLOWERS: 750,000

CONFIDENTIAL

Our industry investors help us navigate the murky waters of the alcohol category. Our ambassador investors help us get the word out about these delicious drinks.

# WE ARE IN A LARGE & GROWING CATEGORY

Prepared Cocktails Are Fastest Growing Segment In A Hot Category

![img-0.jpeg](img-0.jpeg)

Source: Nielsen 2022

![img-1.jpeg](img-1.jpeg)

CONFIDENTIAL

Canned cocktails and tequila are two hottest categories in spirits - sounds like a great combination!

![img-2.jpeg](img-2.jpeg)

INCREDIBLE SALES START

## Nielsen data measures consumers buying Ranch Rider from retailers

![img-3.jpeg](img-3.jpeg)

**HIGH UPSIDE** Ranch Rider is only distributed in 2% of US retail outlets!

We have three groups of customers who buy Ranch Rider: distributors, retailers and consumers. Sales from the most important group (consumers) are measured by Nielsen. This is the difference between “sell-in” and “sell-through”.

## RISING THE RANKS NATIONALLY

### KEY NATIONAL ACCOUNTS

Walmart

RANCH RIDER SPIRITS
IS THE NUMBER
2
CANNED COCKTAIL
BRAND IN TEXAS

RANCH RIDER SPIRITS
IS THE TOP
18
CANNED COCKTAIL
BRAND NATIONWIDE

RANCH RIDER SPIRITS
IS THE NUMBER
2
CANNED COCKTAIL
BRAND IN WHOLE FOODS

OUR RANCH WATER SELLS MORE
PER STORE THAN ANY OTHER
TEQUILA CAN IN THE COUNTRY

#1 VELOCITY TEQUILA SKU -NIELSEN

Nielsen 2022 355ml Canned Cocktails

CONFIDENTIAL

A big part of why we are raising $ from Wefunder is to invest in sales & marketing. When we secure a big chain placement, we need to make sure it is selling through. The category has been flooded with new entrants, and the brands that perform best at retail will be the ones that stick around.

## OUR TEQUILA PRODUCTS ARE ON FIRE

OUR RANCH WATER IS #1 IN SALES PER STORE OF ANY TEQUILA CAN IN THE NATION

![img-4.jpeg](img-4.jpeg)

Nielsen 2022 $ per point of ACV: 4, 6, 8 & 12-pack Tequila SKUs $500K+ T52

CONFIDENTIAL

This is what we mean when we say we are a top tequila cocktail in the country: our Ranch Water sells more per store than any canned tequila cocktail in the country!

## REAL COMMUNITY ENGAGEMENT

As a grassroots brand founded in a food truck (rather than a board room), we have built a community of engaged fans who help us build our journey.

We have almost 100k followers between social media & email, and 7x the engagement rate of other brands in the category. We have some incredible brand partners & a roster of creators who help us to expand our reach.

TECOVAS

Huckberry

![img-5.jpeg](img-5.jpeg)

![img-6.jpeg](img-6.jpeg)

Excited to add thousands more from Wefunder to our community!

NATIONAL PRESS LISTS

NATIONAL PRESS HITS

![img-7.jpeg](img-7.jpeg)

![img-8.jpeg](img-8.jpeg)

These uniquely Texan canned craft cocktails boomed after launching during the pandemic

![img-9.jpeg](img-9.jpeg)

CONFIDENTIAL

Here's some great press we've received:

https://www.foxnews.com/video/6277450100001

https://www.cnbc.com/2021/05/23/ranch-rider-spirits-canned-craft-cocktails-boomed-during-the-pandemic.html

![img-10.jpeg](img-10.jpeg)

# HOW WILL WE INVEST OUR CAPITAL?

Expanding our national footprint while increasing penetration in existing markets.

BLUE RIDGE

SPIRITS & WINE MARKETING

![img-11.jpeg](img-11.jpeg)

We just kicked off our partnership with Blue Ridge - a 45-person team of industry sales experts representing us across the entire US. We will be investing capital to generate new distribution and retail sales.

| BRAND | NATIONAL DISTRIBUTION (NIELSEN ACV $21) |
| --- | --- |
| HIGH NOON | 54% |
| CUTWATER | 31% |
| JACK DANIEL'S | 13% |
| RANCH RIDER | 2% |

If we can maintain our sales per store & expand distribution to reach the level of Jack Daniel's RTDs, we will surpass $40m in revenue.

CONFIDENTIAL

And if we hit Cutwater distribution - we will be at $100m in revenue!

*Forward looking projections cannot be guaranteed.

# CONTINUING TO LAUNCH NEW PRODUCTS

Our team at the distillery is constantly listening to feedback from our consumers and testing new concepts. We can't wait to share our innovation updates with Wefunder!

![img-12.jpeg](img-12.jpeg)

![img-13.jpeg](img-13.jpeg)

![img-14.jpeg](img-14.jpeg)

toddiddell Picklejuice Paloma?

40w Reply

therealtexanist Farm Water.

39w Reply

morganpru Cowboy Musk

39w Reply

CONFIDENTIAL

Drop your innovation ideas in the comments, we'd love to hear them! Some fun updates coming soon...

![img-15.jpeg](img-15.jpeg)

Ranch Rider ❤️ Wefunder

## STRONG BRANDS CAN WARRANT HIGH MULTIPLES
Strategic firms have historically acquired high-growth beverage brands for 5x - 7x revenue, with a premium paid for the highest quality brands.

|  | HIGH WEST | CASAMIGOS | CUTWATER |
| --- | --- | --- | --- |
| ACQUIRER | Constellation | Diageo | AB InBev |
| DATE | October 2016 | June 2017 | February 2019 |
| PRICE | $160m | $700m | $325m |
| MULTIPLE | 6.2x revenue | 14x revenue | 6.5x revenue |
| EARNOUT | N/A | +6x revenue | N/A |

CONFIDENTIAL

This is the response to the question to "so how am I going to get my money back?". If we execute the plan as an independent brand, a larger company could purchase the business at some point. Then we will all get paid!

POTENTIAL EXIT SCENARIOS

POTENTIAL EXIT SCENARIOS

Wefunder investors will make a return on their investment through a brand acquisition. See below for an analysis of the return potential:

| Wefunder Assumptions |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
| Total Investment | $1,200,000.00 |  |  |  |  |
| Ownership at Conversion | 4.5% |  |  |  |  |
| Future Dilution | 10% |  |  |  |  |
| Sensitivities |  |  |  |  |  |
|  | Exit Revenue | Exit Multiple | Enterprise Value at Exit | Proceeds to Wefunder | Return Multiple |
| Outperform Case | $60,000,000 | 8.0x | $480,000,000 | $19,440,000 | 16.2x |
| Base Case (Current Plan) | $40,000,000 | 7.0x | $280,000,000 | $11,340,000 | 9.5x |
| Underperform Case | $20,000,000 | 6.0x | $120,000,000 | $4,860,000 | 4.1x |

*These are estimates only. Actual returns could be zero.

CONFIDENTIAL

When you invest, help us by buying Riders & telling your friends - we could all make more money

Thanks for reading. Let us know if you have any comments / questions concerns and we will get back to you 😊

![img-16.jpeg](img-16.jpeg)

**Attachment 3:** `document_3.pdf`

# Subscription Agreement

[INVESTMENT AMOUNT]

[INVESTMENT DATE]

Ranch Rider I (the "SPV"), a series of Wefunder SPV, LLC (the "LLC"), is a special purpose vehicle that will invest all of its assets in securities issued by Ranch Hand Supply Co. LLC (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

I have reviewed the following information and documents in connection with this Subscription Agreement:

1. The information on the Wefunder website about the Company, I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that none of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC, nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
2. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
3. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "LLC Agreement"), which sets forth certain specific terms of the SPV;
4. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
5. The LLC Agreement, which sets forth other terms applicable to each SPV;
6. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
7. The Wefunder Investor Agreement; and
8. The Wefunder Terms of Service.

By making an investment in the SPV through the Wefunder website, I agree to be bound by this Subscription Agreement and the terms of the other agreements listed above with respect to my investment in the SPV.

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

A. This agreement ("Agreement") applies to each investment in a series ("SPV") of Wefunder SPV, LLC (the "LLC"). Each series is a separate pool of assets from every other series. Each SPV will invest all of its assets in securities issued by a single company ("Company") as set forth in the applicable series appendix ("Series Appendix") to the Wefunder SPV, LLC limited liability company agreement (LLC Agreement). The terms of the Company securities to be purchased by the SPV are summarized in an appendix ("Terms Appendix") attached to this Agreement.
B. Each SPV is formed by and operated by Wefunder Admin, LLC on behalf of the Company in whose securities that SPV invests.
C. Important information about the Company, about the related SPV, and more generally about investments through the Wefunder website, is available through the Wefunder website. The Investor should review that information, and all relevant Company Information (as defined below), carefully before making an investment in any SPV.
D. Each SPV will offer membership interests ("Interests") in that SPV pursuant to Regulation Crowdfunding under the U.S. Securities Act of 1933, as amended (the "Securities Act").
E. You hereby agree that each time you make an investment in any SPV, you will be deemed to have entered into this Agreement, and will be deemed to have made each representation and covenant contained in this Agreement.
F. Except as the context otherwise requires, any reference in this Subscription Agreement to:

1. a "SPV" shall mean "The LLC acting solely on behalf of and for the account of the SPV";
2. "Investor" and "you" shall mean a person (whether individually, jointly with another person, or through his or her individual retirement account) who has agreed to invest, or has invested, in any SPV; and
3. "Company Information" means:

a. The information on the Wefunder website about the Company. I acknowledge that this information was prepared solely by either the Company or a third party whose work has been verified by the Company, and that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or Wefunder Advisors, LLC (together, the "Wefunder entities," nor any of their affiliates, employees or agents, are responsible for the adequacy, completeness, or accuracy of this information;
b. The Form C relating to this investment, which provides information about investment in the Company through the use of the SPV;
c. The Series Appendix, an appendix to the Wefunder SPV, LLC limited liability company agreement (the "LLC Agreement"), which sets forth certain specific terms of the SPV;
d. The Terms Appendix, which summarizes the terms of the Company securities to be purchased by the SPV;
e. The LLC Agreement, which sets forth other terms applicable to each SPV;
f. This Subscription Agreement, which sets forth the terms governing your investment in the SPV, and that sets forth certain representations you are making in connection with your investment in the SPV;
g. The Wefunder Investor Agreement; and
h. The Wefunder Terms of Service.

INVESTOR'S REPRESENTATIONS AND COVENANTS

# 1. Investor's Review of Information and Investment Decision

1.1. The Investor has carefully read and understands the Company Information. The Investor acknowledges that it has made an independent decision to invest indirectly in the Company through the SPV and that, in making its decision to invest in a SPV, the Investor has relied solely upon the Company Information, any other relevant information on the Wefunder website, and independent investigations made by the Investor. The Investor understands that no representations or warranties have been made to the Investor by the LLC, the relevant SPV, any administrator appointed from time to time with respect to the SPV (the "Administrator"), any lead investor appointed from time to time with respect to the SPV (the "Lead Investor"), or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them regarding the Company.

1.2. The Investor has been provided an opportunity to request additional information concerning the Company and the offering through the Ask A Question feature on wefunder.com.

1.3. The Investor understands and agrees that neither Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC, any of their affiliates, nor any director, manager, officer, shareholder, member, employee or agent of Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC or any of their affiliates (each, a "Wefunder Party," and collectively, "Wefunder Parties") shall be liable in connection with any information or omission of information contained in materials prepared or supplied by the Company. Such materials may include, but are not limited to, information provided by the Company in the Form C related to the offering, information available through the Wefunder website, and materials distributed to the Investor by the SPV on behalf of a Company.

1.4. The Investor represents and agrees that no Wefunder Party has recommended or suggested any investment in a SPV, or any investment related to a Company, to the Investor.

1.5. Investor understands that no Wefunder Party is an adviser to Investor, and that Investor is not an advisory or other client of any Wefunder Party.

1.6. The Investor is not relying on any Wefunder Party or any other person or entity with respect to the legal, accounting, business, investment, pension, tax or other economic considerations involved in this investment other than the Investor's own advisers that are not affiliated with any of the foregoing persons.

1.7. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of the Investor's investment in the SPV and is able to bear such risks. The Investor has obtained, in the Investor's judgment, sufficient information to evaluate the merits and risks of such investment. The Investor has evaluated the risks of investing in the SPV, understands there are substantial risks of loss incidental to the purchase of an Interest and has determined that the Interest is a suitable investment for the Investor and consistent with the general investment objectives of the Investor.

# 2. Investor's Representations Related To Investment in a SPV.

2.1. The Investor is acquiring the Interest for its own account, for investment purposes only and not with an intent to resell or distribute the Interest (or any distributions received from the SPV in whole or in part), and the Investor agrees that it will not sell or otherwise transfer the Interest unless in compliance with Regulation Crowdfunding and other applicable securities laws, and with the terms and conditions of this Agreement.
2.2. The Investor's investment in the Interest is consistent with the investment purposes, objectives and cash flow requirements of the Investor and will not adversely affect the Investor's overall need for diversification and liquidity.
2.3. The Investor has all requisite power, authority and capacity to acquire and hold the Interest and to execute, deliver and comply with the terms of each of the instruments required to be executed and delivered by the Investor in connection with the Investor's subscription for the Interest, including without limitation this Subscription Agreement, and such execution, delivery and compliance does not conflict with, or constitute a default under, any instruments governing the Investor, any law, regulation or order, or any agreement or other undertaking to which the Investor is a party or by which the Investor may be bound. If the Investor is an entity, the person executing and delivering each of such instruments on behalf of the Investor has all requisite power, authority and capacity to execute and deliver such instruments, and, upon request by the SPV, will furnish to the SPV a true and correct copy of any instruments governing the Investor, including all amendments thereto. The signature on each of such instruments is genuine and each of such instruments constitutes a legal, valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms.
2.4. The Wefunder Parties are each hereby authorized and instructed to accept and execute any instructions in respect of the Interest given by the Investor in written or electronic form. The Wefunder Parties may rely conclusively upon and shall incur no liability in respect of any action take upon any notice, consent, request, instructions or other instrument believed in good faith to be genuine or to be signed by properly authorized persons of the Investor.
2.5. Pursuant to the requirements of Treas. Reg. § 301.6109-1(c), the Investor has provided, or agrees to provide upon the earlier of (i) two years of an acquisition of an Interest or (ii) twenty (20) days before any distribution is to be made from the SPV, his, her or its taxpayer identification number (e.g., social security number or employer identification number) under penalties of perjury and has or will attest that the Internal Revenue Service has not notified the Investor that he, she or it is subject to backup withholding.

# 3. The Manager Has The Right To Reject Any Subscription, In Whole Or In Part.

3.1. The Investor understands that the SPV will not register as an investment company under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), nor will it make a public offering of its securities within the United States.
3.2. The Investor understands that the value of all investments in any SPV made through individual retirement accounts ("IRAs") must be less than \(25\%\) of the value of the SPV's assets.

3.3. If the Investor is investing in a SPV through an employee benefit plan of any kind, including an individual retirement account (the "Plan"), and an individual or entity (the "Fiduciary") has entered into this Agreement on behalf of the Plan, the Fiduciary hereby makes the following representations, warranties, and covenants:

i. The Fiduciary is a fiduciary of the Plan who is authorized to invest Plan assets or is acting at the direction of a Plan fiduciary authorized to invest Plan assets. The Fiduciary has determined that an investment in the Fund is consistent with the Fiduciary's responsibilities to the Plan under Employee Retirement Income Security Act of 1974, as amended ("ERISA") or other applicable law, and is qualified to make such investment decision. The Fiduciary is authorized to make all representations, covenants and agreements set forth in this Agreement about and on behalf of the Investor, and the Fiduciary hereby agrees that, except for the representations, covenants and agreements contained in this section 3.3, all representations, covenants and agreements contained in this Agreement are made on behalf of the Investor who is investing through the Plan.

ii. The execution and delivery of this Subscription Agreement, and the investment contemplated hereby has been duly authorized by all appropriate and necessary parties pursuant to the provisions of the instrument or instruments governing the Plan and any related trust; and (B) will not violate, and is not otherwise inconsistent with, the terms of such instrument or instruments.

iii. The Fiduciary acknowledges that the assets of the Fund will be invested in accordance with the Company Information related to that Fund.

iv. The Plan's purchase and holding of an Interest will not constitute a non-exempt transaction prohibited under ERISA, Section 4975 of the Internal Revenue Code (the "Code"), or any similar laws or other federal, state, local, foreign or other laws or regulations applicable to the Plan and its investments. None of the Wefunder entities nor any of their affiliates, agents, or employees: (A) exercises any authority or control with respect to the management or disposition of assets of the Plan used to purchase an Interest; (B) renders investment advice for a fee (pursuant to an agreement or understanding that such advice will serve as a primary basis for investment decisions and that such advice will be based on the particular investment needs of the Plan), with respect to such assets of the Plan, or has the authority to do so, or (C) is an employer maintaining or contributing to, or any of whose employees are covered by, the Plan.

v. The Fiduciary understands and agrees to the fee arrangements described in the Company Information.

vi. The Fiduciary understands and agrees that, to prevent the assets of the SPV from being treated as "plan assets" for purposes of ERISA and Section 4975 of the Code, the Investor may be prohibited from purchasing or acquiring an Interest or may be required to redeem its Interest or a portion thereof.

3.4. The Investor acknowledges that the SPV and any Administrator, on the SPV's behalf, may not accept any investment from an Investor if the Investor cannot truthfully make the representations contained herein.

4. The Correctness And Accuracy Of All Information Provided By Investor To The LLC Or The SPV.

4.1. The Investor confirms that all information and documentation provided to the LLC, the SPV, and any Administrator, including, but not limited to, all information regarding the Investor's identity, taxpayer identification number, the source of the funds to be invested in the SPV, and the Investor's eligibility to invest in offerings under Regulation Crowdfunding, is true, correct and complete. Should any such information change or no longer be accurate, the Investor agrees and covenants that they will promptly notify the Wefunder Parties of such changes via the wefunder.com platform. The Investor agrees and covenants that he, she or it will maintain accurate and up-to-date contact information (including email and mailing address) on the wefunder.com platform and will promptly update such information in the event it changes or is no longer accurate.

4.2. The representations, warranties, agreements, undertakings and acknowledgments made by the Investor in this Subscription Agreement will be relied upon by the LLC, the SPV, and any Administrator in determining the Fund's compliance with federal and state securities laws, and shall survive the Investor's admission as a Member of the SPV.

4.3. All information that the Investor has provided to the LLC, the SPV, and any Administrator concerning the knowledge and experience of financial, tax and business matters of the Investor is correct and complete.

# 5. The Wefunder Parties' Right To Use Investor Information.

5.1. The Investor agrees and consents to the Wefunder Parties, their delegates and their duly authorized agents and any of their respective related, associated or affiliated companies obtaining, holding, using, disclosing and processing the Investor's data:

a. to facilitate the acceptance, management and administration of the Investor's subscription for an Interest on an on-going basis;
b. for any other specific purposes where the Investor has given specific consent to do so;
c. to carry out statistical analysis, market research, and tracking of investment performance over time;
d. to comply with legal or regulatory requirements applicable to the SPV and any Administrator or the Investor, including, but not limited to, in connection with anti-money laundering and similar laws;
e. for disclosure or transfer to third parties including the Investor's financial adviser (where appropriate), regulatory bodies, auditors, technology providers or to the SPV, any Administrator, any Lead Investor, and their delegates or their duly appointed agents and any of their respective related, associated or affiliated companies for the purposes specified above;
1. If the contents thereof are relevant to any issue in any action, suit or proceeding to which the LLC, the SPV, any Administrator, any Lead Investor, or their affiliates are a party or by which they are or may be bound;
g. for other legitimate business of the LLC, the SPV, any Administrator, or any Lead Investor.

5.2. The Investor acknowledges and agrees that it will provide additional information or take such other actions as may be necessary or advisable for the SPV or any Administrator (in the sole judgment of the SPV and/or any Administrator) to comply with any disclosure and compliance policies, related legal process or appropriate requests (whether formal or informal) or otherwise.
5.3. The Investor agrees and consents to disclosure by the LLC, the SPV and any of their agents, including any Administrator or any Lead Investor, to relevant third parties of information pertaining to the Investor in respect of disclosure and compliance policies or information requests related thereto. Without limiting the generality of the foregoing, the Investor agrees that information about the Investor may be provided to the Company in whose securities a SPV will or proposes to invest.
5.4. The Investor authorizes the LLC, the SPV, any Administrator, and each SPV service provider to disclose the Investor's nonpublic personal information to comply with regulatory and contractual requirements applicable to the SPV and its investments. Any such disclosure shall be permitted notwithstanding any privacy policy or similar restrictions regarding the disclosure of the Investor's nonpublic personal information.

# 6. Key Risk Factors

6.1. The Investor understands that investment in a SPV may involve a complete loss of the Investor's investment. In this regard, the Investor understands that such venture investments involve a high degree of risk, and that many or most venture company investments lose money. An Investor may ultimately receive cash, securities, or a combination of cash and securities (and in many cases nothing at all). If the Investor receives securities, the securities may not be publicly traded, and may not have any significant value.
6.2. The Investor understands and agrees that the Interests are subject to restrictions on transfer and cannot be redeemed. Instead, an Investor typically must hold his or her Interest in a SPV until the SPV has sold or otherwise disposed of its investments and the SPV distributes its investments to the investors in the SPV (a "Liquidation Event"). An Investor typically will not receive any distributions until such a Liquidation Event (and may not receive anything even upon a Liquidation Event), which may not occur for many years. The Investor must therefore bear the economic risk of holding their investment for an indefinite period of time.

6.3. The Investor understands and agrees that the Interests: (a) have not been registered under the Securities Act or any other law of the United States, or under the securities laws of any state or other jurisdiction, and therefore an Interest cannot be resold, pledged, assigned or otherwise disposed of unless it is so registered or an exemption from registration is available; and (b) can only be transferred as permitted under Regulation Crowdfunding and subject to the terms and conditions of this Agreement.

6.4. The Investor understands that no guarantees have been made to the Investor about future performance or financial results of the SPV, and an investment in the SPV may result in a gain or loss upon termination or liquidation of the SPV. It is possible that the investors in a SPV will have "phantom income," which could require them to pay taxes on their investment in a SPV even though the SPV does not distribute any income (or does not distribute sufficient income to pay the taxes).

6.5. The Investor understands and agrees that the SPV was formed by and is operated by Wefunder Admin, LLC on behalf of the Company. Investors will have no right to manage or influence the management of any SPV or of the LLC.

6.6. The Investor understands and agrees that the Company may appoint a Lead Investor and that, if appointed, pursuant to a power of attorney granted by the Investor in the Investor Agreement, the Lead Investor will exercise voting authority on behalf of the Investor with respect to the SPV securities the Investor owns.

6.7. The Investor represents that he or she has read and understands the risk factors contained in the Company Information. The Investor understands and agrees that each Company is solely responsible for providing risk factors, conflicts of interest, and other disclosures that investors should consider when investing in securities issued by that Company (including through a SPV), and that the Wefunder Parties have no ability to assure, and have not in any way assured, that any or all such risk factors, conflicts of interest and other disclosures have been presented fully and fairly, or have been presented at all.

6.8. The Investor understands that any privacy statements, reports or other communications regarding the SPV and the Investor's investment in the SPV (including annual and other updates, and tax documents) will be delivered via electronic means, including through wefunder.com. The Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, the Investor acknowledges that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. The Investor also acknowledges that an email from the Wefunder Parties may be accessed by recipients other than the Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. No Wefunder Party gives any warranties in relation to these matters.

6.9. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number under penalties of perjury, and attest that the Investor has not been notified by the Internal Revenue Service that he, she or it is subject to backup withholding, the SPV will be required to withhold from any proceeds otherwise payable to the Investor an amount necessary to satisfy the SPV's backup withholding obligations.

6.10. The Investor understands and agrees that if he, she or it does not provide a valid taxpayer identification number to the SPV, the SPV will withhold from any proceeds otherwise payable to the Investor an amount necessary for the SPV to satisfy its tax withholding obligations with respect to such amount. The SPV may also withhold any other amounts representing the SPV's reasonable estimation of penalties that may be charged by the Internal Revenue Service or any other taxing authority as a result of the Investor's failure to provide a valid taxpayer identification number.

# 7. Compliance With Anti-Money Laundering Laws.

7.1. The Investor represents and warrants that the Investor's investment was not directly or indirectly derived from illegal activities, including any activities that would violate U.S. Federal or State laws or any laws and regulations of other countries.

7.2. The Investor acknowledges that U.S. Federal law, regulations and Executive Orders administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") may prohibit the SPV, any Administrator, or any Lead Investor from, among other things, engaging in transactions with, and the provision of services to, persons on the list of Specially Designated Nationals and Blocked Persons and persons, foreign countries and territories that are the subject of U.S. sanctions administered by OFAC (collectively, the "OFAC Maintained Sanctions").

7.3. The Investor acknowledges that the SPV prohibits the investment of funds by any persons or entities that are (i) the subject of OFAC Maintained Sanctions, (ii) acting, directly or indirectly, in contravention of any applicable laws and regulations, including anti-money laundering regulations or conventions, or on behalf of persons or entities subject to an OFAC Maintained Sanction, (iii) acting, directly or indirectly, for a senior foreign political figure, any member of a senior foreign political figure's immediate family or any close associate of a senior foreign political figure, unless the SPV, after being specifically notified by the Investor in writing that it is such a person, conducts further due diligence, and determines that such investment shall be permitted, or (iv) acting, directly or indirectly, for a foreign shell bank (such persons or entities in (i) - (iv) are collectively referred to as "Prohibited Persons"). The Investor represents and warrants that it is not, and is not acting directly or indirectly on behalf of, a Prohibited Person.

7.4. To the extent the Investor has any beneficial owners, (i) it has carried out thorough due diligence to establish the identities of such beneficial owners, (ii) based on such due diligence, the Investor reasonably believes that no such beneficial owners are Prohibited Persons, (iii) it holds the evidence of such identities and status and will maintain all such evidence for at least five years from the date of the liquidation or termination of the SPV, and (iv) it will make available such information and any additional information requested by the SPV that is required under applicable regulations.

7.5. The Investor acknowledges and agrees that the SPV or any Administrator may "freeze the account" of the Investor, including, but not limited to, by suspending distributions from the SPV to which the Investor would otherwise be entitled, if necessary to comply with anti-money laundering statutes or regulations.

7.6. The Investor acknowledges and agrees that the SPV and/or any Administrator, in complying with anti-money laundering statutes, regulations and goals, may file voluntarily and/or as required by law suspicious activity reports ("SARs") or any other information with governmental and law enforcement agencies that identify transactions and activities that the SPV or any Administrator or their agents reasonably determine to be suspicious, or is otherwise required by law. The Investor acknowledges that the LLC, the SPV, and any Administrator are prohibited by law from disclosing to third parties, including the Investor, any filing or the substance of any SARs.

7.7. The Investor agrees that, upon the request of the LLC, the SPV, or any Administrator, it will provide such information as the LLC, the SPV, or any Administrator requires to satisfy applicable anti-money laundering laws and regulations, including, without limitation, background documentation about the Investor

# 8. Regulatory Provisions

8.1. The Investor understands that no federal or state agency has passed upon the Interests or made any findings or determination as to the fairness of this investment.

8.2. The Investor certifies that the information contained in the executed copy of Form W-9 submitted to the SPV (if any) and/or the taxpayer identification provided to the SPV is correct. The Investor agrees to provide such other documentation as the SPV determines may be necessary for the SPV to fulfill any tax reporting and/or withholding requirements.

8.3. The Investor understands and agrees that the Company may cause the SPV to make an election under Section 754 of the Internal Revenue Code (the "Code") or an election to be treated as an "electing investment partnership" for purposes of Section 743 of the Code. If the SPV elects to be treated as an electing investment partnership, the Investor shall cooperate with the SPV to maintain that status and shall not take any action that would be inconsistent with such election. Upon request, the Investor shall provide the SPV with any information necessary to allow the SPV to comply with (a) its obligations to make tax basis adjustments under Section 734 or 743 of the Code and (b) its obligations as an electing investment partnership.

8.4. The Investor consents to receive any Schedule K-1 (Partner's Share of Income, Deductions, Credits, etc.) from the SPV electronically via email, the Internet and/or another electronic reporting medium in lieu of paper copies. The Investor agrees that it will confirm this consent electronically at a future date in a manner set forth by the Company at such time and as required by the electronic receipt consent rules set forth by the Internal Revenue Service. The Investor may request a paper copy of the Investor's Schedule K-1 by contacting Wefunder Inc. at support@wefunder.com or such other email address as specified on the wefunder.com platform. Requesting a paper copy will not constitute a withdrawal of the Investor's consent to receive reports or other communications, including Schedule K-1, electronically. The Investor may withdraw its consent for electronic delivery or change its contact preferences for such delivery at any time by writing to support@wefunder.com or such other email address as specified on the wefunder.com platform. Such withdrawal will take effect promptly after receipt, unless otherwise agreed upon. Upon receipt of a withdrawal request, the SPV will confirm the withdrawal and the date on which it takes effect in writing (either electronically or on paper). A withdrawal of consent does not apply to a statement that was furnished electronically before the date on which the withdrawal of consent takes effect. The SPV will cease providing information electronically upon termination of the SPV. Notwithstanding the Investor's consent to receive materials electronically, the Investor still may be required to print and attach its Schedule K-1 to a federal, state or local tax return.

# 9. Miscellaneous Provisions

# 9.1. Indemnification

9.1.1. The Investor agrees to indemnify and hold harmless the LLC, the SPV, any Administrator, any Lead Investor, or any partner, member, officer, employee, agent, affiliate or subsidiary of any of them, and each other person, if any, who controls, is controlled by, or is under common control with, any of the foregoing, within the meaning of Section 15 of the Securities Act, and their respective officers, directors, partners, members, shareholders, owners, employees and agents (collectively, the "Indemnified Parties") against any and all loss, liability, claim, damage and expense whatsoever (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) arising out of or based upon (i) any false representation or warranty made by the Investor, or breach or failure by the Investor to comply with any covenant or agreement made by the Investor, in this Subscription Agreement or in any other document furnished by the Investor to any of the foregoing in connection with this transaction, or (ii) any action for securities law violations instituted by the Investor that is finally resolved by judgment against the Investor.

9.1.2. The Investor also agrees to indemnify each Indemnified Party for any and all costs, fees and expenses (including legal fees and disbursements) in connection with any damages resulting from the Investor's misrepresentation or misstatement contained herein, or the assertion of the Investor's lack of proper authorization from the beneficial owner to enter into this Subscription Agreement or perform the obligations hereof.

9.1.3. The Investor agrees to indemnify and hold harmless each Indemnified Party from and against any tax, interest, additions to tax, penalties, reasonable attorneys' and accountants' fees and disbursements, together with interest on the foregoing amounts at a rate determined by the SPV or any Administrator computed from the date of payment through the date of reimbursement, arising from the failure to withhold and pay over to the U.S. Internal Revenue Service or the taxing authority of any other jurisdiction any amounts computed, as required by applicable law, with respect to the income or gains allocated to or amounts distributed to the Investor with respect to its Interest during the period from the Investor's acquisition of the Interest until the Investor's transfer of the Interest in accordance with this Agreement, the LLC Agreement, and Regulation Crowdfunding.

9.1.4. If for any reason (other than the willful misfeasance or gross negligence of the entity that would otherwise be indemnified) the foregoing indemnification is unavailable to, or is insufficient to hold such Indemnified Party harmless, then the Investor shall contribute to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Investor on the one hand and the Indemnified Parties on the other but also the relative fault of the Investor and the Indemnified Parties, as well as any relevant equitable considerations.

9.1.5. The reimbursement, indemnity and contribution obligations of the Investor under this section shall be in addition to any liability that the Investor may otherwise have, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Indemnified Parties.

9.2. Limitation of Liability. The LLC is a Delaware "multi-series" limited liability company. As a multi-series limited liability company, the LLC may operate multiple series with the benefit of segregation of assets and liabilities among each of its series pursuant to the Delaware Limited Liability Company Act, as amended (the "Delaware Act"). Accordingly, the Investor hereby agrees that the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a series (including the SPV) shall be enforceable against the assets of that series only and not against the LLC generally or the assets of any other series. In addition, none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the LLC generally, or any particular series, shall be enforceable against the assets of any other series.

9.3. **Counsel** The Investor understands that Morrison & Foerster LLP serves as legal counsel on certain matters to Wefunder, Inc., Wefunder Portal, LLC, Wefunder Admin, LLC and Wefunder Advisors, LLC and not to the SPV or any Investor by virtue of its investment in the SPV, and that no independent counsel has been retained to represent the SPV or Investors in the SPV. The Investor also understands that Morrison & Foerster LLP has not independently verified any factual assertions made in the Company Information or on the Wefunder website and is not responsible for the SPV's compliance with its investment program or applicable law.

9.4. **Power of Attorney** The Investor hereby appoints each of the Company and Wefunder Admin, LLC as its true and lawful representative and attorney-in-fact, in its name, place and stead to make, execute, sign, acknowledge, swear to and file:

9.4.1. a Certificate of Formation of the LLC and any amendments required under the Delaware Act
9.4.2. the LLC Agreement and any duly adopted amendments;
9.4.3. any and all instruments, certificates and other documents that may be deemed necessary or desirable to effect the winding-up and termination of the LLC or the SPV (including a Certificate of Cancellation of the Certificate of Formation); and
9.4.4. any business certificate, fictitious name certificate, related amendment or other instrument or document of any kind necessary or desirable to accomplish the LLC's or the SPV's business, purpose and objectives or required by any applicable U.S., state, local or other law.

This power of attorney is coupled with an interest, is irrevocable, and shall survive and shall not be affected by the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the Investor; provided, however, that this power of attorney will terminate upon the substitution of another SPV member for all of the Investor's investment in the LLC or the SPV or upon the liquidation or termination of the LLC or the SPV. The Investor hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of the LLC, the SPV, and any Administrator taken in good faith under this power of attorney.

# 9.5. Confidentiality

9.5.1. The Investor agrees that the Company Information and all financial statements (if any), tax reports (if any), portfolio valuations (if any), private placement memoranda (if any), reviews or analyses of potential or actual investments (if any), reports or other materials prepared or produced by the SPV and/or any Administrator and all other documents and information concerning the affairs of the SPV and/or the Fund's investments, including, without limitation, information about the Company, and/or the persons directly or indirectly investing in the SPV (collectively, the "Confidential Information") that the Investor may receive pursuant to or in accordance with the use of the Wefunder website, an investment in one or more SPVs, or otherwise as a result of its ownership of an Interest in the SPV, constitute proprietary and confidential information about the SPV, any Administrator, and/or any Lead Investor (the "Affected Parties").

9.5.2. The Investor acknowledges that the Affected Parties derive independent economic value from the Confidential Information not being generally known and that the Confidential Information is the subject of reasonable efforts to maintain its secrecy. The Investor further acknowledges that the Confidential Information is a trade secret, the disclosure of which is likely to cause substantial and irreparable competitive harm to the Affected Companies or their respective businesses. The Investor shall not reproduce any of the Confidential Information or portion thereof or make the contents thereof available to any third party other than a disclosure on a need-to-know basis to the Investor's legal, accounting or investment advisers, auditors and representatives (collectively, "Advisers"), except to the extent compelled to do so in accordance with applicable law (in which case the Investor shall promptly notify the SPV of the Investor's obligation to disclose any Confidential Information) or with respect to Confidential Information that otherwise becomes publicly available other than through breach of this provision by the Investor.

9.5.3. To the fullest extent permitted by law, the Investor agrees not to request disclosure or inspection of any such information after the Investor is notified (whether in response to the Investor's request for information or otherwise) that the SPV has determined not to disclose such information.

9.5.4. The Investor agrees that the LLC, the SPV, and the SPV service providers would be subject to potentially irreparable injury as a result of any breach by the Investor of the covenants and agreements set forth in this Item 9.5, and that monetary damages would not be sufficient to compensate or make whole the LLC, the SPV, and the SPV services providers for any such breach. Accordingly the Investor agrees that the LLC, the SPV, and the SPV service providers shall be entitled to equitable and injunctive relief, on an emergency, temporary, preliminary and/or permanent basis, to prevent any such breach or the continuation thereof.

9.6. Amendments. Neither this Subscription Agreement nor any term hereof may be supplemented, changed, waived, discharged or terminated except with the written consent of the Investor and the Company on behalf of the relevant SPV. For the sake of clarity, the restriction on the Company in the preceding sentence applies solely to the form of this Subscription Agreement applicable to SPVs that have had a closing, and does not prevent the Company from changing the form and content of this Subscription Agreement for use in offerings of SPVs that have not had a closing.

9.7. Assignability and Transferability. This Subscription Agreement is not transferable or assignable by the Investor without the prior written consent of the Company on behalf of the SPV, and any transfer or assignment in violation of this provision shall be null and void. The Interests in the SPV being acquired by Investor herein may only be transferred by Investor in compliance with Regulation Crowdfunding and the terms and conditions of this Agreement. If Investor seeks to transfer the Interests, Investor shall first give written notice to the Company and Wefunder Admin, LLC, including the number of Interests that Investor desires to transfer, the proposed price, the name and contact information of the proposed buyer, and any other information that the Company or Wefunder Admin, LLC may reasonably request. To the extent possible, such notice shall be provided through the Wefunder.com website. Any transfer of Interests shall be subject to execution by Investor and the proposed transferee of appropriate documentation, as may be required by the Company or Wefunder Admin, LLC, in their discretion. Investor further acknowledges that pursuant to the LLC Agreement, Wefunder Admin, LLC (as Series Manager of the SPV), may impose additional restrictions on or prohibit the Transfer of Interests for any reason or no reason, in its sole discretion.

9.8. **Repurchase.** In the event that the SPV or any Administrator determines that it is likely that within twelve (12) months the securities of the SPV or the Company will be held of record by a number of persons that would require the SPV or the Company to register a class of its equity securities under the Securities Exchange Act of 1934, as amended ('Exchange Act'), as required by Section 12(g) or 15(d) thereof, the SPV shall have the option to repurchase the Interests from each Investor to the extent necessary to avoid the requirement to register a class of its securities under the Exchange Act. Such repurchase of Interests shall be for the greater of (i) the purchase price of the Interests, or (ii) the fair market value of the Interests, as determined by an independent appraiser of securities chosen by the Administrator. Any such repurchase may only occur with the consent of Wefunder Admin, LLC, as Series Manager of the SPV.

9.9. **Governing Law.** Consent to Jurisdiction. Notwithstanding the place where this Subscription Agreement may be executed by any of the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be construed under the laws of the State of Delaware. Any action or proceeding brought by the SPV or any SPV service provider against one or more investors in the SPV relating in any way to this Subscription Agreement or the LLC Agreement may, and any action or proceeding brought by any other party against the SPV or any SPV service provider relating in any way to this Subscription Agreement or the Company Information shall, be brought and enforced in the state courts of the State of Delaware located in Wilmington or (to the extent subject matter jurisdiction exists therefore) in the courts of the United States located in the District of Delaware; and the Investor and the SPV irrevocably submit to the jurisdiction of both such state and federal courts in respect of any such action or proceeding. The Investor and the SPV irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to laying the venue of any such action or proceeding in the courts of the State of Delaware located in Wilmington or in the courts of the United States located in the District of Delaware and any claim that any such action or proceeding brought in any such court has been brought in an inconvenient forum.

9.10. **Severability.** If any provision of this Subscription Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof that may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and to this extent the provisions hereof shall be severable.

9.11. **Headings.** The headings in this Subscription Agreement are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

9.12. **General.** This Subscription Agreement shall be binding upon the Investor and the legal representatives, successors and assigns of the Investor, shall survive the admission of the Investor as a member of a SPV, and shall, if the Investor consists of more than one person, be the joint and several obligation of all such persons.

*[Remainder of page intentionally left blank. Signature page follows.]*

The undersigned have executed this instrument as of the date first above written.

SPV

Ranch Rider I, as series of Wefunder SPV, LLC
By: Wefunder Admin, LLC, its Manager

By: Founder Signature

Date:

Name: Nicholas Tommarello

Title: Chief Executive Officer

Investor

[INVESTOR NAME]

By: Investor Signature

Date:

CONTACT INFORMATION:

Name: [INVESTOR NAME]

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF Ranch
Hand Supply Co. LLC SECURITIES BY Ranch Rider I, A
SERIES OF WEFUNDER SPV, LLC, A DELAWARE
LIMITED LIABILITY COMPANY

Type of Security: Convertible Note

Terms $36M valuation cap and 20% discount

To view a copy of the contract, please see Appendix B, Investor Contracts of
the Form C. The latest Form C or C/A filing be found here:
https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-
TYPE%3DC%2FA+or+FORM-
TYPE%3DC%29+and+CIK%3D0001957666&first=2016

**Attachment 4:** `document_4.pdf`

THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE IN THE UNITED STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

# RANCH HAND SUPPLY CO. LLC

# CONVERTIBLE PROMISSORY NOTE

$[AMOUNT]

[EFFECTIVE DATE]

FOR VALUE RECEIVED, Ranch Hand Supply Co. LLC, a Texas limited liability company (the “Company”) promises to pay to ________________ (“Investor”), or such Investor’s registered assigns, the principal sum of $[AMOUNT] ________, together with simple interest from the date of this Convertible Promissory Note (this “Note”) on the unpaid principal balance at a rate equal to 8% per annum, computed on the basis of the actual number of days elapsed and a year of 365 days.

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. Payments.

(a) Maturity. All unpaid principal, together with any then unpaid and accrued interest, shall be due and payable on the earlier of (i) 15 days after receipt by the Company from Investor of a written demand for payment, which demand shall not be made prior to date that is 24 months from first note issuance (the “Maturity Date”), or (ii) when, upon the occurrence and during the continuance of an Event of Default, such amounts are declared due and payable by the Investor or made automatically due and payable, in each case, in accordance with the terms hereof.

(b) General. Payment on the Note shall be in lawful money of the United States of America, and applied first to accrued interest and thereafter to the outstanding principal balance of the Note.

(c) Interest. Accrued interest on this Note shall be payable at maturity.

(d) Voluntary Prepayment. Any outstanding principal and accrued interest on this Note may be prepaid without penalty upon the written consent of the Investor.

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

“Cap Price” shall mean the quotient obtained by dividing the Valuation Cap by (ii) the total number of Company units outstanding immediately prior to the initial closing of the Qualified Financing, Unit Optional Conversion or Change of Control Conversion, as applicable (assuming, without duplication, full conversion or exercise of all outstanding convertible securities, rights, options and warrants, and, in the case of a Qualified Financing or Unit Optional Conversion only, the issuance of all units reserved for grant

pursuant to the Company’s equity incentive plans, but in all cases excluding conversion of the Note and other convertible instruments converted into units in connection with such transaction).

Control”** shall mean (i) any reorganization, merger or consolidation of the Company, other than (A) a conversion of the Company from a limited liability company into a corporation, if applicable, or (B) a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company, in each case, under (i) or (ii), other than as a result of the sale and issuance of the Company’s units with the principal purpose of raising capital.

Units”** shall mean the Company’s limited liability company interests designated as “Class D Units”, holding the rights and preferences provided for in the Company’s Amended and Restated Limited Liability Company Agreement, as the same may be amended and or restated from time to time.

“**Common Units**” shall mean a newly created class of the Company’s limited liability company interests, to be designated as “Common Units.”

Price**” shall mean a price per unit equal to the lesser of (i) 80% of the cash price per unit paid by the other purchasers of the Preferred Units sold in the Qualified Financing and (ii) the Cap Price.

“**Event of Default**” has the meaning given in **Section 3** hereof.

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

“**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.

“**Preferred Units**” shall mean Preferred Units or similar preferred limited liability company interests, as applicable, of the Company.

“**Qualified Financing**” shall mean a transaction or series of transactions occurring on or after December 31, 2022, pursuant to which the Company issues and sells Preferred Units that do not rank junior to the Company’s Class D Units with respect to their rights, preferences and privileges for aggregate gross proceeds of at least $1,000,000 (excluding all proceeds from the incurrence of indebtedness or other convertible instruments that are converted into such Preferred Units, or otherwise cancelled in consideration for the issuance of such Preferred Units) with the principal purpose of raising capital.

“**Valuation Cap**” shall mean $36,000,000.

References to “**units**” herein shall mean units or limited liability company interests, as applicable, of the Company.

3. **Events of Default.** If there shall be any Event of Default hereunder, at the option and upon the declaration of the Investor and upon written notice to the Company (which election and notice shall not be required in the case of an Event of Default under **Section 3(c)** or **3(d)**), this Note shall accelerate and all principal and unpaid accrued interest shall become due and payable, without presentment, demand, protest

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or any other notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding. The occurrence of any of the following shall constitute an '**Event of Default**' under this Note:

(a) *Failure to Pay*. The Company shall fail to pay when due any principal or interest payment on the due date hereunder and such payment shall not have been made within fifteen (15) days of the Company's receipt of written notice to the Company of such failure to pay;

(b) *Breach of Covenant*. The Company shall default in its performance of any covenant under any Note and such failure shall continue for fifteen (15) business days after the Company's receipt of written notice to the Company of such failure;

(c) *Voluntary Proceeding*. The Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing; or

(d) *Involuntary Proceeding*. An involuntary petition is filed against the Company (unless such petition is dismissed or discharged within 60 days under any bankruptcy statute now or hereafter in effect), or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Company.

In addition to the right of repayment, upon the occurrence and during the continuance of any Event of Default, the Investor may exercise any other right power or remedy granted to it or permitted to it by law, either by suit in equity or by action at law, or both.

#### 4. *Conversion*.

(a) *Automatic Conversion*. If a Qualified Financing occurs on or prior to the Maturity Date, then the outstanding principal amount of this Note and all accrued and unpaid interest on this Note shall automatically convert into fully paid and nonassessable Preferred Units issued in such Qualified Financing at the Conversion Price.

(b) *Conversion at Maturity*. At any time after the Maturity Date, if any principal or interest under this Note is then outstanding, then, at the election of the Investor, and at such time thereafter as designated thereby, the outstanding principal amount of this Note and all accrued and unpaid interest on this Note will automatically convert into fully paid and nonassessable Common Units at a price per unit equal to the Cap Price (the '**Unit Optional Conversion**').

(c) *Conversion or Prepayment Premium upon a Change of Control*. If a Change of Control occurs prior to a Qualified Financing, then at the election of the Investor either: (i) the Investor shall be paid a prepayment premium equal to all accrued and unpaid interest due on this Note as of immediately prior to such Change of Control *plus* one hundred percent (100%) of the outstanding principal amount of this Note, and the Note shall thereafter be cancelled and be of no further force or effect, whether or not it is delivered to the Company for cancellation; or (ii) the outstanding principal amount of this Note and all accrued and unpaid interest on this Note shall automatically convert as of immediately prior to such Change of Control into fully paid and nonassessable Common Units at a price per unit equal to the Cap Price (the '**Change of Control Conversion**').

(d) *Conversion Procedure*.

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(i) **Automatic Conversion.** If this Note is to be automatically converted pursuant to **Section 4(a)**, written notice thereof shall be delivered to Investor at the address last shown on the records of the Company for Investor or given by Investor to the Company specifying the Conversion Price, the principal amount of the Note to be converted, together with all accrued and unpaid interest, the date on which such conversion is expected to occur and calling upon such Investor to surrender to the Company, in the manner and at the place designated, the Note. Upon such conversion of this Note, Investor hereby agrees to execute and deliver to the Company all transaction documents entered into by other purchasers participating in the Qualified Financing, including, if requested by the Company, a purchase agreement, an investors' rights agreement and other ancillary agreements, with customary representations and warranties and transfer restrictions (including, without limitation, a 180-day lock-up agreement in connection with an initial public offering). Investor also agrees to deliver the original of this Note (or a notice to the effect that the original Note has been lost, stolen or destroyed and an agreement acceptable to the Company whereby the holder agrees to indemnify the Company from any loss incurred by it in connection with this Note) at the closing of the Qualified Financing for cancellation; *provided, however*, that upon the closing of the Qualified Financing, this Note shall be deemed converted and of no further force and effect, whether or not it is delivered for cancellation as set forth in this sentence. Any conversion of this Note pursuant to **Section 4(a)** shall be deemed to have been made immediately prior to the closing of the Qualified Financing and on and after such date the Persons entitled to receive the units issuable upon such conversion shall be treated for all purposes as the record holder of such units. In connection with such conversion, the Company will have the right to set a reference date for the conversion of accrued interest under this Note (which reference date shall be no sooner than five (5) business days prior to the closing of the Qualified Financing), such that interest accrued through such reference date will be converted and the balance of such accrued interest thereafter shall be paid in cash.

(ii) **Unit Optional Conversion or Change of Control Conversion.** If this Note is being converted into Common Units pursuant to **Sections 4(b) or (c)**, Investor shall deliver to the Company the original Note (or a notice stating that the original Note has been lost, stolen or destroyed and an agreement acceptable to the Company whereby the holder agrees to indemnify the Company from any loss incurred by it in connection with this Note) for cancellation and, unless this Note is being automatically converted pursuant to **Sections 4(b) or (c)**, give written notice to the Company at its principal corporate office of the election to convert the same pursuant to **Sections 4(b) or (c)**, as applicable, and shall state therein the amount of the outstanding principal and all accrued and unpaid interest on this Note to be converted. Upon such conversion, Investor hereby agrees to execute and deliver to the Company all transaction documents as requested by the Company, including an agreement that contains customary representations and warranties and transfer restrictions (including, without limitation, a 180-day lock-up agreement in connection with an initial public offering). Any conversion of this Note pursuant to **Sections 4(b) or (c)** shall be deemed to have been made upon the satisfaction of all of the conditions set forth in this **Section 4(d)(ii)** and on and after such date the Persons entitled to receive the units issuable upon such conversion shall be treated for all purposes as the record holder of such units; *provided, however*, in the event that this Note is being automatically converted pursuant to **Sections 4(b) or (c)**, the conversion of this Note shall be deemed to have been made on the date specified by the Investor, and this Note shall be of no further force and effect, whether or not it is delivered for cancellation.

(iii) **Fractional Units; Effect of Conversion.** No fractional units shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional units to the Investor upon the conversion of this Note, the Company shall pay to Investor an amount equal to the product obtained by multiplying the applicable conversion price by the fraction of a unit not issued pursuant to the previous sentence. Upon conversion of this Note in full and the payment of the amounts specified in this paragraph, Company shall be forever released from all its obligations and liabilities under this Note and this Note shall be deemed of no further force or effect, whether or not the original of this Note has been delivered to the Company for cancellation.

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5. **Representations and Warranties of the Investor.** The Investor hereby represents and warrants to the Company that the statements contained in the following paragraphs of this **Section 5** are all true and correct as of the date of this Note:

(a) **Securities Law Compliance.** The Investor has been advised that the Note and the securities issuable upon conversion thereof (collectively, the '**Securities**') have not been registered under the Act or any state securities laws and, therefore, cannot be resold unless they are registered under the Act and applicable state securities laws or (if the Note is deemed to be securities) unless an exemption from such registration requirements is available. The Investor is aware that the Company is under no obligation to effect any such registration with respect to the Securities or to file for or comply with any exemption from registration. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment, and is able to bear the economic risk of such investment for an indefinite period of time.

(b) **Access to Information.** The Investor acknowledges that the Company has given the Investor access to the corporate records and accounts of the Company and to all information in its possession relating to the Company, has made its officers and representatives available for interview by the Investor, and has furnished the Investor with all documents and other information required for the Investor to make an informed decision with respect to the purchase of the Securities.

6. **Information Rights.** So long as the Note is outstanding, the Company will furnish to the Investor upon request and when available (i) annual unaudited financial statements for each fiscal year of the Company, including an unaudited balance sheet as of the end of such fiscal year, an unaudited statement of operations and an unaudited statement of cash flows of the Company for such year, all prepared in accordance with generally accepted accounting principles and practices; and (ii) quarterly unaudited financial statements for each fiscal quarter of the Company (except the last quarter of the Company's fiscal year), including an unaudited balance sheet as of the end of such fiscal quarter, an unaudited statement of operations and an unaudited statement of cash flows of the Company for such quarter, all prepared in accordance with generally accepted accounting principles and practices, subject to changes resulting from normal year-end audit adjustments. If the Company has audited records of any of the foregoing, it shall provide those in lieu of the unaudited versions.

7. **Confidentiality.** Anything in this Note to the contrary notwithstanding, no Investor by reason of this Note shall have access to any trade secrets or classified information of the Company. The Company shall not be required to comply with any information rights in respect of any Investor whom the Company reasonably determines to be a competitor or an officer, employee, director or holder of five percent (5%) or more of a competitor. The Investor agrees that they will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Note other than disclosure to the Investor's attorneys, accountants, consultants, and other professionals, to the extent necessary to obtain their services in connection with monitoring the Investor's investment in the Company.

# 8. **Miscellaneous.**

(a) **California Securities Laws (if Applicable).** THE SALE OF THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION THEREOF HAVE NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION FOR SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES

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TO THIS NOTE ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

(b) Assignment and Transfer.

(i) 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. This Note may be transferred only upon its surrender to the Company for registration of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon, this Note shall be reissued to, and registered in the name of, the transferee, or a new Note for like principal amount and interest shall be issued to, and registered in the name of, the transferee. Interest and principal shall be paid solely to the registered holder of this Note. Such payment shall constitute full discharge of the Company's obligation to pay such interest and principal.

(ii) As a condition to any transfer of this Note, the Company may in its sole discretion require 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. 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 Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Act. The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.

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

(d) Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing and mailed, e-mailed or delivered to each party at the respective address or e-mail address set forth below such party's name on the signature page hereto (or, in each case, at such other address or e-mail address as such party shall have furnished to the other party in writing). All such notices and communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) when sent, if sent by electronic mail during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day, (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.

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

(f) No Rights as a Member. Nothing contained herein shall entitle Investor to any rights as a member of the Company or to be deemed the holder of any securities that may be construed to confer upon Investor, as such, any right to vote on, give or withhold consent to, or to receive notice of, any meeting or corporate or other member action relating to the Company.

(g) Further Assurances. The Investor agrees and covenants that at any time and from time to time the Investor will promptly execute and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out the full intent and purpose of this Note and to comply with state or federal securities laws or other regulatory approvals.

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(h) Expenses. If action is instituted to collect this Note, the Company promises to pay all costs and expenses, including, without limitation, reasonable attorneys' fees and costs, incurred in connection with such action.

(i) Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to the Investor, upon any breach or default of the Company under this Note shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. This Note shall be void and of no force or effect in the event that the Investor fails to remit the full principal amount to the Company within five calendar days of the date of this Note.

(j) Entire Agreement. This Note constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof, and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein

(k) 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 Texas, without regard to the conflicts of law provisions of the State of Texas, or of any other state.

(l) Waiver of Jury Trial. BY ACCEPTANCE OF THIS NOTE, INVESTOR HEREBY AGREES AND THE COMPANY HEREBY AGREES TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE.

(m) Counterparts. This Note may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Note.

(Signature Page Follows)

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The Company has caused this Note to be issued as of the date first written above.

COMPANY:

RANCH HAND SUPPLY CO. LLC

Founder Signature

By: ________________
Name: [FOUNDER_NAME]
Title: [FOUNDER_TITLE]

Address: 12501 Pauls Valley Rd, Unit D
Austin, Texas 78737

E-mail: brian@ranchriderspints.com

By: ________________
Name: [INVESTOR NAME]
Its: [INVESTOR TITLE]

**Attachment 5:** `document_5.pdf`

# **Ranch Hand Supply Co. LLC** (the “Company”) a Texas Limited Liability Company

Financial Statements (unaudited) and
Independent Accountant’s Review Report

Years ended December 31, 2020 & 2021

![img-0.jpeg](img-0.jpeg)

## INDEPENDENT ACCOUNTANT'S REVIEW REPORT

Ranch Hand Supply Co. LLC

We have reviewed the accompanying financial statements of the Company which comprise the statement of financial position as of December 31, 2020 & 2021 and the related statements of operations, statement of changes in member’s equity, and statement of cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management’s financial data and making inquiries of Company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

### Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

### Accountant’s Responsibility

Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

### Accountant’s Conclusion

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

### Going Concern

As discussed in Note 8, certain conditions indicate that the Company may be unable to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs.

Vince Mongio, CPA, CIA, CFE, MACC

*Vincenzo Mongio*

# **Statement of Financial Position**

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 4,950,087 | 605,248 |
| Accounts Receivable | 328,355 | 304,696 |
| Accounts Receivable - Related Party | - | 179,432 |
| Prepaid Expenses | 199,268 | 37,503 |
| Inventory | 1,349,923 | 1,631,018 |
| Total Current Assets | 6,827,633 | 2,757,897 |
| Non-current Assets |  |  |
| Furniture, Machinery & Equipment, Computers, and Leasehold Improvements, net of Accumulated Depreciation | 343,983 | 827,156 |
| Right-of-use Assets: Equipment, net of Accumulated Depreciation | 692,415 | - |
| Intangible Assets: Software, net of Accumulated Depreciation | 9,414 | 8,918 |
| Security Deposits | 33,690 | 66,436 |
| Total Non-Current Assets | 1,079,501 | 902,510 |
| TOTAL ASSETS | 7,907,135 | 3,660,407 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Accounts Payable | 874,015 | 323,831 |
| Accrued Expenses | 1,063,905 | 334,541 |
| Line of Credit | - | 325,000 |
| Sales Tax Payable | 191 | 256 |
| Convertible Note | 6,878,513 | - |
| Accrued Interest | 90,240 | - |
| Lease Liability - Current Portion | 240,451 | - |
| Other Liabilities | - | 5,987 |
| Total Current Liabilities | 9,147,315 | 989,615 |
| Long-term Liabilities |  |  |
| Lease Liability | 451,964 | - |
| Total Long-Term Liabilities | 451,964 | - |
| TOTAL LIABILITIES | 9,599,279 | 989,615 |
| EQUITY |  |  |
| Member's Equity | 9,364,767 | 3,351,820 |
| Accumulated Deficit | (11,056,909) | (681,029) |
| Total Equity | (1,692,142) | 2,670,791 |
| TOTAL LIABILITIES AND EQUITY | 7,907,135 | 3,660,407 |

### Statement of Operations

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenue | 5,137,983 | 3,447,309 |
| Cost of Revenue | 6,187,493 | 1,950,610 |
| Gross Profit | (1,049,510) | 1,496,699 |
| Operating Expenses |  |  |
| Advertising and Marketing | 3,216,305 | 641,834 |
| Bad Debt Expense - Related Party | 179,432 | - |
| General and Administrative | 5,563,646 | 1,156,486 |
| Research and Development | 75,852 | 5,716 |
| Rent and Lease | 90,000 | 8,775 |
| Depreciation | 30,198 | 77,066 |
| Total Operating Expenses | 9,155,433 | 1,889,878 |
| Operating Income (loss) | (10,204,943) | (393,180) |
| Other Income |  |  |
| Interest Income | 268 | 773 |
| Other | 28,091 | - |
| Total Other Income | 28,359 | 773 |
| Other Expense |  |  |
| Interest Expense | 96,856 | 107,270 |
| Other | 102,440 | 1,429 |
| Total Other Expense | 199,296 | 108,698 |
| Provision for Income Tax | - | - |
| Net Income (loss) | (10,375,880) | (501,105) |

### Statement of Changes in Member Equity

|  | Member Capital |  |  |  |
| --- | --- | --- | --- | --- |
|  | $ Amount | Accumulated Adjustments | Accumulated Deficit | Total Member Equity |
| Beginning Balance at 1/1/2020 | 1,101,818 | - | (179,924) | 921,894 |
| Capital Contributions | 2,250,002 | - | - | 2,250,002 |
| Net Income (Loss) | - | - | (501,105) | (501,105) |
| Ending Balance 12/31/2020 | 3,351,820 | - | (681,029) | 2,670,791 |
| Capital Contributions | 6,012,947 | - | - | 6,012,947 |
| Net Income (Loss) | - | - | (10,375,880) | (10,375,880) |
| Ending Balance 12/31/2021 | 9,364,766 | - | (11,056,909) | (1,692,142) |

# **Statement of Cash Flows**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | (10,375,880) | (501,105) |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Gain on Sale of Fixed Asset | - | 1,429 |
| Write-off of Security Deposit | 41,136 |  |
| Depreciation | 30,198 | 77,066 |
| Accounts Payable | 550,188 | 281,911 |
| Accrued Liabilities | 732,717 | 322,774 |
| Inventory | (35,153) | (1,240,752) |
| Accounts Receivable | (23,659) | (304,696) |
| Accounts Receivable - Related Party | 179,432 | 330,854 |
| Prepaids | 154,484 | (423,906) |
| Accrued Interest | 86,882 | 105,177 |
| Other | (3,901) | 5,173 |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | 1,712,324 | (844,971) |
| Net Cash provided by (used in) Operating Activities | (8,663,556) | (1,346,076) |
| INVESTING ACTIVITIES |  |  |
| Machinery, Equipment, and Furniture | (95,100) | (491,470) |
| Sale of Equipment | - | 10,000 |
| Computers | (43,523) | (16,713) |
| Software | (8,025) | (8,918) |
| Leasehold Improvements | (28,896) | (77,481) |
| Security Deposits | (8,390) | (48,636) |
| Net Cash provided by (used by) Investing Activities | (183,934) | (633,218) |
| FINANCING ACTIVITIES |  |  |
| Line of Credit | (325,000) | 325,000 |
| Convertible Notes | 6,878,513 | - |
| Lease Financing | 625,869 | - |
| Proceeds from sale of Class B units | - | 2,250,002 |
| Proceeds from sale of Class C units | 5,999,606 | - |
| Proceeds from Class RR units options exercised | 13,340 | - |
| Net Cash provided by (used in) Financing Activities | 13,192,329 | 2,575,002 |
| Cash at the beginning of period | 605,248 | 9,541 |
| Net Cash increase (decrease) for period | 4,344,839 | 595,707 |
| Cash at end of period | 4,950,087 | 605,248 |

# Ranch Hand Supply Co. LLC
Notes to the Unaudited Financial Statements
December 31st, 2021
$USD

# NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES

Ranch Hand Supply Co. LLC (“the Company”) was formed in Texas on July 10th, 2019. The Company is a ready to drink canned cocktail company making drinks that contain real spirits and no added sugar. The Company was founded in Austin, Texas and the production facility is located just outside of Austin in Dripping Springs. The Company has national distribution partners who service each state.

The Company will conduct a crowdfunding campaign under regulation CF in 2022 to raise operating capital.

# NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Our financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Our fiscal year ends on December 31. The Company has no interest in variable interest entities and no predecessor entities.

Basis of Consolidation

The financials of the Company include its wholly owned subsidiaries, Ranch Hand LLC, Rider Ventures LLC, and Ranch Rider Holdings LLC. Ranch Hand LLC is the operating entity containing all operations for the Company, as the Company acts solely as the holding entity for the equity of the owners. Rider Ventures LLC and Ranch Rider Holdings LLC have not had any activity since their inception. There were no transactions that required intercompany elimination.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include all cash balances, and highly liquid investments with maturities of three months or less when purchased.

Fair Value of Financial Instruments

ASC 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

These tiers include:

Level 1: defined as observable inputs such as quoted prices in active markets;
Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

### Concentrations of Credit Risks

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

### Revenue Recognition

The Company recognizes revenue from the sale of products and services in accordance with ASC 606, “Revenue Recognition” following the five steps procedure:

- Step 1: Identify the contract(s) with customers
- Step 2: Identify the performance obligations in the contract
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price to performance obligations
- Step 5: Recognize revenue when or as performance obligations are satisfied

The Company’s primary performance obligation is the delivery of products. Revenue is recognized at the time of shipment, net of estimated returns. Coincident with revenue recognition, the Company establishes a liability for expected returns and records an asset (and corresponding adjustment to cost of sales) for its right to recover products from customers on settling the refund liability.

### Concentration of Revenue

The Company generated a large portion of revenue primarily from one customer resulting in $4,875,617 or 95% of revenue and $3,248,920 or 94% of revenue being generated in 2021 and 2020, respectively, from this client. Company management believes it has a strong relationship with this customer and that the likelihood of anything happening to this customer to be low.

### Cost of Revenue

The Company incurred an increase in the cost of revenue as a percentage of total revenue from 57% in 2020 to 120% in 2021. Management concluded that the primary reason for the increase was due to three factors. Firstly, the Company recognized a $2.4M loss from obsolete products due to can stability and refermentation issues. The Company has taken steps to correct this issue by leasing pasteurizers to prevent any refermentation issues and have found a new can supplier whose cans are compatible with their liquid product. Second, the Company increased their depletion allowance resulting in increased discounts to their distributors in order to increase sales volume and expand their brand. Lastly, the Company had increased costs due to being unable to find labor resulting in outsourcing various labor at an increased rate.

### Other Income

The Company recognized other income of $28,091 in 2021. This amount was primarily generated from insurance proceeds due to the loss of a product, gain on the disposal of a fixed asset, as well as profit sharing from a discontinued food truck venture that was previously operated by one of the founders.

### Prepaids

The Company had prepaid expenses totaling $199,268 as of December 31st, 2021. The total consisted of prepaid marketing expenses in the amount of $73,543, prepaid rent in the amount of $32,333, prepaid sales expenses in the amount of $17,711, prepaid insurance in the amount of $16,928, prepaid subscriptions in the amount of $10,953, and miscellaneous other prepaid expenses totaling $47,800.

## Property and Equipment

Property and equipment are recorded at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income. Depreciation is provided using the straight-line method, based on useful lives of the assets.

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized as equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on this assessment there was no impairment for December 31, 2021.

A summary of the Company’s property and equipment is below.

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Disposals | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- | --- |
| Machinery & Equipment | 7 | 135,393 | (14,024) | (6,321) | 115,048 |
| Furniture | 7 | 36,305 | (4,971) | - | 31,334 |
| Computers | 3-5 | 61,534 | (19,428) | - | 42,106 |
| Leased Assets: Equipment | 3 | 736,644 | (44,229) | - | 692,415 |
| Leasehold Improvements | 5 | 190,967 | (35,472) | - | 155,495 |
| Grand Total | - | 1,160,842 | (118,125) | (6,321) | 1,036,397 |

## Capitalized Internal-Use Software Costs

We are required to follow the guidance of Accounting Standards Codification 350 (“ASC 350”), Intangibles- Goodwill and Other in accounting for the cost of computer software developed for internal-use and the accounting for web-based product development costs. ASC 350 requires companies to capitalize qualifying computer software costs, which are incurred during the application development stage, and amortize these costs on a straight-line basis over the estimated useful life of the respective asset.

Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life which is determined to be 3 years.

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Disposals | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- | --- |
| Software | 3 | 16,943 | (7,529) | - | 9,414 |
| Grand Total | - | 16,943 | (7,529) | - | 9,414 |

## Inventory

The Company had a total inventory balance of $1,349,923 as of December 31st, 2021. The Company performs monthly inventory counts and uses the FIFO (First-in, First-out) method of accounting to value its inventory.

### Accounts Receivable

Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms. Trade receivables are stated at the amount billed to the customer. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. Payments are generally collected upfront, but some of the merchants that products are sold through have a delay between collecting from the customer and sending to the Company.

The Company estimates an allowance for doubtful accounts based upon an evaluation of the current status of receivables, historical experience, and other factors as necessary. It is reasonably possible that the Company's estimate of the allowance for doubtful accounts will change.

See Note 3 - Related Party Transactions for details of related party receivable as well as the bad debt expense related to it that was recorded in 2021.

### Advertising Costs

Advertising costs associated with marketing the Company's products and services are generally expensed as costs are incurred.

### General and Administrative

General and administrative expenses consist of payroll and related expenses for employees and independent contractors involved in general corporate functions, including accounting, finance, tax, legal, business development, and other miscellaneous expenses.

### Other Expenses

The Company incurred other expenses of $102,440 in 2021. The Company determined this fairly represented the amount of inventory that was paid for but would not be retrievable upon settling their pending litigation, which is discussed in further detail in Note 7 - Subsequent Events disclosure.

### Rent and Lease

**Office Lease:** The Company leased its office space under a 2-year lease requiring monthly payments of $7,500. The lease was signed for a 2-year term that ran from November 2020 through November 2022. The lease was not renewed in November 2022.

**Facility Lease:** The Company leases 3 buildings that function as the production facility. The Terms of all three leases run through June 2024. The total rental for the three units is approximately $17,000 per month and is paid on the first of every month.

### Minimum Lease Payments for The Next 5 Years for Office and Facility Leases

| Year Ending December 31, | Payment |
| --- | --- |
| 2022 | 286,500 |
| 2023 | 204,000 |
| 2024 | 102,000 |
| 2025 | - |
| 2026 | - |
| Thereafter | - |

# Equipment Lease:

The Company entered into a finance lease agreement to lease manufacturing equipment with a starting lease liability of $736,644. The leases accrue interest at 9.82%. The lease began in August of 2021 and ends in July of 2024. The monthly lease payments include a payment of $14,733 in January of 2022 followed by 30 monthly payments of $25,783, which includes both principal and interest.

The agreement allows the Company to exercise the following options, by giving the lessor at least three months, but not more than twelve months written notice prior to the expiration of the base term (or any renewal term) of the end of term option it elects, including purchasing the equipment, extending or renewing the lease, or returning the equipment. If the Company has not elected any of those options, then the lessor shall have the right at the end of the base term to either cause the Company to purchase the equipment at fair market value, to extend the lease, or to return the equipment.

See Note 5 - Debt disclosure for additional information on lease as of December 31st, 2021. See Note 7 - Subsequent Events for additional information on lease after December 31st, 2021.

# Accrued Expenses

The Company had accrued expenses totaling $1,063,905 as of December 31st, 2021. The total primarily consisted of accrued bonuses totaling $425,000, accrued settlement expense totaling $308,920 (See Note 7 - Subsequent Events disclosure for additional details), accrued payroll totaling $169,483, and miscellaneous other accrued expenses totaling $160,502.

# Equity Based Compensation

The Company accounts for stock options issued to employees under ASC 718 (Stock Compensation). Under ASC 718, share-based compensation cost to employees is measured at the grant date, based on the estimated fair value of the award, and is recognized as an item of expense ratably over the employee's requisite vesting period. The Company has elected early adoption of ASU 2018-07, which permits measurement of stock options at their intrinsic value, instead of their fair value. An option's intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price of an option. In certain cases, this means that option compensation granted by the Company may have an intrinsic value of $0.

The Company measures compensation expense for its non-employee stock-based compensation under ASC 505 (Equity). The fair value of the option issued or committed to be issued is used to measure the transaction, as this is more reliable than the fair value of the services received. The fair value is measured at the value of the Company's common stock on the date that the commitment for performance by the counterparty has been reached or the counterparty's performance is complete. The fair value of the equity instrument is charged directly to expense and credited to additional paid-in capital.

There is not a viable market for the Company's common stock to determine its fair value, therefore management is required to estimate the fair value to be utilized in determining stock-based compensation costs. In estimating the fair value, management considers recent sales of its common stock to independent qualified investors, placement agents' assessments of the underlying common shares relating to our sale of preferred stock and validation by independent fair value experts. Considerable management judgment is necessary to estimate the fair value. Accordingly, actual results could vary significantly from management's estimates. Management has concluded that the estimated fair value of the Company's stock and corresponding expense is negligible.

The following is an analysis of options to purchase shares of the Company's units issued and outstanding:

|  | Total Options | Weighted Average Exercise Price |
| --- | --- | --- |
| Total options outstanding, January 1, 2020 | - | $- |
| Granted | 97,298 | $1.17 |
| Exercised | - | $- |
| Expired/cancelled | - | $- |
| Total options outstanding, December 31, 2020 | 97,298 | $1.17 |
| Granted | 345,036 | $2.67 |
| Exercised | (11,402) | $1.17 |
| Expired/cancelled | (45,787) | $1.34 |
| Total options outstanding, December 31, 2021 | 385,145 | $2.45 |
| Options exercisable, December 31, 2021 | 6,469 | $1.32 |

|  | Nonvested Options | Weighted Average Fair Value |
| --- | --- | --- |
| Nonvested options, January 1, 2020 |  |  |
| Granted | 97,298 | $- |
| Vested | (5,068) | $- |
| Forfeited | - | $- |
| Nonvested options, December 31, 2020 | 92,230 | $- |
| Granted | 345,036 | $- |
| Vested | (12,803) | $- |
| Forfeited | (45,787) | $- |
| Nonvested options, December 31, 2021 | 378,676 | $- |

**Warrants** - The Company accounts for stock warrants as either equity instruments, derivative liabilities, or liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (ASC 480), depending on the specific terms of the warrant agreement. The Warrants below do not have cash settlement provisions or down round protection; therefore, the Company classifies them as equity. Management considers the equity-based compensation expense for 2020 and 2021 to be negligible.

A summary of the warrant activity for the years ended December 31, 2020 and 2021 is as follows:

|  | Shares | Weighted-Average Exercise Price |
| --- | --- | --- |
| Outstanding on January 1, 2020 | - | - |
| Grants | 71,429 | 3.5 |
| Exercised | (71,429) | 3.5 |
| Canceled | - | - |
| Outstanding on December 31, 2020 | - | - |
| Grants | - | - |
| Exercised | - | - |
| Canceled | - | - |
| Outstanding on December 31, 2021 | - | - |

### Income Taxes

The Company is a pass-through entity therefore any income tax expense or benefit is the responsibility of the company’s owners. As such, no provision for income tax is recognized on the Statement of Operations.

### Recent Accounting Pronouncements

The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact on our financial statements.

### **NOTE 3 - RELATED PARTY TRANSACTIONS**

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions.

The Company had advanced funds to owners for a prior business venture, which had a balance of $179,432 as of December 31$^{st}$, 2020. In 2021, the owners determined that they would not be reimbursing the Company the total and therefore, the Company recorded bad debt expense for the total of $179,432 in 2021.

### **NOTE 4 - COMMITMENTS, CONTINGENCIES, COMPLIANCE WITH LAWS AND REGULATIONS**

The Company was involved with one pending litigation during the period under review, which led to a settlement agreement in 2022. See Note 7 - Subsequent Events disclosure for additional information. The Company had no other pending litigation outside of what is disclosed in Note 7 - Subsequent Events. The Company is currently complying with all relevant laws and regulations. The Company does not have any long-term commitments or guarantees.

### **NOTE 5 - DEBT**

#### **Capital Leases Payable:**

The following is an analysis of the leased assets included in Property and Equipment:

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Disposals | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- | --- |
| Leased Assets: Equipment | 3 | 736,644 | (44,229) | - | 692,415 |

#### **Minimum Lease Payments for The Next 5 Years for Leased Equipment**

| Year Ending December 31, | Payment |
| --- | --- |
| 2022 | 240,451 |
| 2023 | 277,253 |
| 2024 | 174,711 |
| 2025 | - |
| 2026 | - |
| Thereafter | - |

### Notes Payables:

The Company had drawn $325,000 down on a line of credit. The line of credit accrued interest at 1%. The balance was repaid in full on February 11th, 2021, and no additional utilization of the line occurred in 2021.

The Company had issued $6,878,513 of convertible notes out of an approved amount of $7,500,000 with the purpose of funding operations. The interest on the notes is 5%. The notes are convertible into shares of the Company’s common stock at a 20% discount during a change of control or qualified financing event of at least $1,000,000. In 2022, the remainder of the approved Notes were purchased bringing the total outstanding to $7,500,000. The Notes will convert into common stock in December of 2022 when the Company’s Series B closes. The Company accrued interest of $90,240 as of December 31st, 2021, related to these notes.

### Debt Principal Maturities 5 Years Subsequent to 2021

| Year | Amount |
| --- | --- |
| 2022 | $6,878,513 |
| 2023 | - |
| 2024 | - |
| 2025 | - |
| 2026 | - |
| Thereafter | - |

### NOTE 6 - EQUITY

The Company has authorized 3,935,542 company units with no par value. Of the authorized company units, 1,711,397.50 were Class A Units, all of which were issued and outstanding as of 2021, 1,161,924.6762 were Class B Units, all of which were issued and outstanding as of 2021, 562,220 were Class C Units, 562,182 of which were issued and outstanding as of 2021 and 500,000 Class RR Units of which 11,401.88 were issued and outstanding as of 2021.

The RR Units are granted with a vesting period of 25% at 1 Year and 1/36th per month over next 36 months for a total vesting period of 4 years after grant date.

**Voting:** Class A/B/C unit holders are entitled to one vote per unit; Class RR unit holders are not entitled to any voting rights.

### Liquidation preference:

With respect to Net Cash Flow from operations and in connection with a Sale of the Company. First, 20% to the Class A Members in proportion to their respective Percentage Interests and 80% to the Preferred Members on a pari passu basis in proportion to their respective Unreturned Capital Amounts, in each case until such time as each Preferred Member’s Unreturned Capital Amount has been reduced to zero; and second, to all Members in proportion to their respective Percentage Interests, provided that distributions with respect to any Class RR Units intended to qualify as “profits interests” shall be adjusted as necessary to comply with the requirements set forth in IRS Revenue Procedure 93-27 (as clarified by Revenue Procedure 2001-43).

With respect to Net Cash Flow related to the Winding Up and liquidation of the Company. First, 100% to all Preferred Members, pro rata in proportion to each Member’s Unreturned Capital Amount, until the Unreturned Capital Amounts of all Preferred Members have been reduced to zero; and next, to all Members in proportion to their respective Percentage Interests, provided that distributions with respect to any Class RR Units intended to qualify as “profits interests” shall be adjusted as necessary to comply with the requirements set forth in IRS Revenue Procedure 93-27 (as clarified by Revenue Procedure 2001-43).

# NOTE 7 - SUBSEQUENT EVENTS

The Company has evaluated events subsequent to December 31, 2021 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through December 21, 2022, the date these financial statements were available to be issued.

The Company raised a second round of Convertible Notes in 2022 totaling $2.2M as of the date of this review at an interest rate of 12%.

The Company entered into a settlement agreement with a previous vendor related to a contract entered into in 2020. Both parties listed in the settlement assert that the other party failed to fulfill its obligations under contract. The Company had accrued $308,920 related to the potential settlement as of December 31st, 2021. The settlement required the Company to pay out a total of $317,000 in 2022.

The Company reduced their workforce by 75% in July 2022 which substantially reduced its Internal Sales, Marketing and Administrative teams as well as its former CEO in an effort to reduce costs and move to an outsourced sales model.

The Company's line of credit was not renewed in December of 2022. The relationship was based on an annual renewal and the Company is pursuing other partners to provide a line of credit.

The Company entered into an agreement in 2022 to leaseback substantially all of its manufacturing equipment. There are 3 separate lease schedules under one Master Lease Agreement each for 36 months. The first lease, for $736k began on August 1st, 2021, for 36 months. The second lease was for $75,132 beginning January 1st, 2022 for 36 months. The third lease was for $103k beginning January 1st, 2022 for 36 months. All leases have an end of lease option to purchase equipment at FMV, extend the leases for an additional 12 months, or to return equipment to the lessor.

# NOTE 8 - GOING CONCERN

The accompanying balance sheet has been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The entity has realized losses every year since inception, incurred negative cash flows from operations, and may continue to generate losses.

During the next twelve months, the Company intends to finance its operations with funds from a crowdfunding campaign and revenue producing activities. The Company's ability to continue as a going concern in the next twelve months following the date the financial statements were available to be issued is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs. No assurance can be given that the Company will be successful in these efforts. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

# NOTE 9 - RISKS AND UNCERTAINTIES

## *COVID-19*

The spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and significant weakening. Governments and central banks have responded with monetary and fiscal interventions to stabilize economic conditions. The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses remains unclear currently. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods.

**Attachment 6:** `document_6.pdf`

Brian M. Isern - 3rd
Co-Founder, President & Managing Member at Sibling Capital Ventures LLC
Seattle, Washington, United States - Contact Info
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Sibling Capital Ventures LLC
Tulane University - A.B. Freeman School of Business
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Experience
Co-Founder & President
Sibling Capital Ventures LLC
Sep 2013 - Present - 9 yrs 5 mos
Venture Capital
Co-Founder, Vice President
Sibling Capital, LLC
2012 - Dec 2016 - 9 yrs
Venture Capital & Private Equity
Analyst, Investment Banking
Global Hunter Securities
May 2011 - Nov 2011 - 7 mos
Greater New Orleans Area
Oil & Gas
Investment Research Manager, Equity Research
Tulane University, Burkenroad Reports
Jan 2011 - May 2011 - 5 mos
Greater New Orleans Area
Education
Tulane University - A.B. Freeman School of Business
Master of Business Administration (MBA), Finance, Oil & Gas
2009 - 2011
The University of Alabama
Bachelor's degree
Skills
Private Equity
Endorsed by Jeffrey T. Dalton, MBA who is highly skilled at this
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## Brian Murphy - 2nd

Co-Founder at Ranch Rider Spirits Co.

Austin, Texas, United States - Contact Info

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Amherst College

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Well deserved!!!!

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Daniel Seong is the best!!

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Don't you quiz my boy on input costs Ian King!!

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## Experience

### Co-Founder

Ranch Rider Spirits Co. - Full-time

Jan 2020 - Present - 3 yrs 1 mo

### Co-Founder

Ranch Hand

Nov 2016 - Present - 6 yrs 3 mos

Austin, Texas

Stop eating shit for lunch.

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RANCH HARD

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Stop eating shit for lunch.

### Senior Associate

Dimensional Fund Advisors

May 2017 - Jul 2017 - 3 mos

Austin, Texas Area

### Director, Brand Partnerships

Show Cobra

Sep 2015 - Jun 2016 - 10 mos

Williamsburg

Show Cobra is the award winning creative and production agency that lives within Loveline, a music & technology company. We combine best in class production expertise with technology to mark ...see more

### Digital Account Executive / B2B Marketing

Uproxx Media

Apr 2013 - Aug 2015 - 2 yrs 5 mos

NYC

Uproxx is home to the largest and most relevant male focused online and mobile news, entertainment, and lifestyle destinations. Reaching more than 85 million highly-engaged users per month, W ...see more

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## Education

### Amherst College

Bachelor of Arts (BA), Economics

Activities and societies: First Team All-NESCAC Wide Receiver

### Evanston Township High School (ETHS)

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## Skills

#### Social Media

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**Brad Feld** ![red square icon]() 2nd  
Partner at Foundry  
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# **Matt Molinari, CPA** 3rd

Chief Operating Officer at Ranch Rider Spirits Co.

Austin, Texas Metropolitan Area - Contact Info

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University of Nevada-Reno

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# **About**

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# **Experience**

# **Ranch Rider Spirits Co.**

2 yrs 6 mos

# **Chief Operating Officer**

Jul 2022 - Present - 7 mos

# **Vice President of Finance And Operations**

Full-time

Jan 2021 - Jul 2022 - 1 yr 7 mos

Austin, Texas, United States

# **Vice President of Finance**

Full-time

Aug 2020 - Jan 2021 - 6 mos

Austin, Texas, United States

# **IFLY Indoor Skydiving**

4 yrs 4 mos

# **Director Of Revenue Management**

Aug 2019 - Jun 2020 - 11 mos

# **Director of Sales Finance**

Aug 2018 - Aug 2019 - 1 yr 1 mo

# **Director of Financial Planning and Analysis**

Mar 2016 - Aug 2018 - 2 yrs 6 mos

Austin, Texas Area

# **Squaw Valley Ski Holdings**

5 yrs 7 mos

# **Director of Financial Planning and Analysis**

Aug 2013 - Feb 2016 - 2 yrs 7 mos

# **Senior Financial Analyst**

Aug 2010 - Aug 2013 - 3 yrs 1 mo

# **Staff Accountant**

Reno Aces Baseball Club

Oct 2009 - Jul 2010 - 10 mos

# **Accounts Payable/Accounts Receivable Manager, Staff Accountant, Accounting Manager**

Squaw Valley Ski Holdings

Apr 2006 - Oct 2009 - 3 yrs 7 mos

# **Education**

# **University of Nevada, Reno**

MBA, Business/Accounting

2011 - 2012

# **University of Vermont**

Bachelor of Arts (B.A.)

2001 - 2005

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## Envelopes & Certifications

**Certified Public Accountant**
California Board of Accountancy
Issued Mar 2017
Credential ID 132648

**Notary Public**
Texas Office of the Secretary of State

**QuickBooks ProAdvisor Certification**
Quickbooks Software

## Volunteering

**Board of Directors**
Creekside Charter Management
Feb 2014 - Feb 2016 - 2 yrs 1 mo
Education

As acting Secretary & Treasurer I helped develop the mission and vision for Creekside Charter School / Squaw Valley Preparatory; in addition, I also lead the Finance Committee.

**Treasurer**
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Monitor, maintain and report on all the funds of the association and receive and disburse all monies in accordance with the budget as approved by the association membership.

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## Skills

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## Interests

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CHAPTER 4: THE ROLE OF THE CAUSES

## Causes

Arts and Culture - Education

**Attachment 9:** `document_9.pdf`

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## Quentin Cantu 2nd

Co-Founder at Ranch Rider Spirits Co.

Austin, Texas, United States - Contact Info

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The University of Texas at Austin

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## Experience

### Co-Founder

Ranch Rider Spirits Co.

Jan 2020 - Present - 3 yrs 1 mo

### Co-Founder

Ranch Hand

Nov 2016 - Jul 2020 - 3 yrs 9 mos

Austin, TX

Ranch Hand is a food and beverage startup in Austin, TX, that focuses on clean ingredients, a transparent supply chain, and innovative products, all with a focus on Texas and the Southwe ... see more

### Co-Founder

QE Intelligence

Feb 2016 - Oct 2017 - 1 yr 9 mos

Washington D.C. Metro Area

QE Intelligence is a full service research and communications firm for political and corporate clients across the globe. We have worked with Fortune 500 companies, Silicon Valley CEOs, and pre ... see more

## Education

### The University of Texas at Austin

Master of Business Administration (M.B.A.), Business Administration and Management, General
2016 - 2018

### The George Washington University

Bachelor's Degree, International Relations and Affairs

2008 - 2010

Activities and societies: The George Washington University Honors Program, National Society Of Collegiate Scholars

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## Interests

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### Alex Lieberman 2nd

Cofounder @ Morning Brew / Host @

Founder's Journal

123,657 followers

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**Attachment 10:** `document_10.pdf`

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## Will Rives - 3rd

CFO at Heaven Hill Distilleries

Louisville, Kentucky, United States - Contact info

239 connections

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Heaven Hill Distilleries

Rhodes College

## Activity

255 followers

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## Experience

Heaven Hill Distilleries
9 yrs 9 mos

- Chief Financial Officer
  May 2020 - Present - 2 yrs 9 mos
- VP, Finance & Accounting
  Jan 2019 - May 2020 - 1 yr
- Director of FP&A
  Jul 2018 - Jun 2019 - 1 yr

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Deloitte & Touche
6 yrs 8 mos

- Audit Manager
  Aug 2011 - Apr 2013 - 1 yr 9 mos
- Audit Senior
  Sep 2008 - Aug 2011 - 3 yrs
- Audit Assistant
  Sep 2006 - Aug 2006 - 2 yrs

## Education

Rhodes College
MS, Accountancy
2005 - 2006

Rhodes College
BS, Economics and Business Administration
2001 - 2005

Activities and societies: Summa Cum Laude, Golf, Phi Beta Kappa, Omicron Delta Kappa, Kappa Sigma

## Interests

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Ascent Consultants
614 followers

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Heaven Hill
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**Attachment 11:** `document_11.pdf`

THE SECURITIES REPRESENTED BY THIS AMENDED AND RESTATED COMPANY AGREEMENT HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. UNITS OF THE COMPANY MAY NOT BE TRANSFERRED OTHER THAN AS PROVIDED IN ARTICLE IX OF THIS AMENDED AND RESTATED COMPANY AGREEMENT.

# **AMENDED AND RESTATED COMPANY AGREEMENT  
OF  
RANCH HAND SUPPLY CO. LLC**

**THIS AMENDED AND RESTATED COMPANY AGREEMENT OF RANCH HAND SUPPLY CO. LLC** is executed and effective as of December 30, 2022 (the “*Effective Date*”) by the persons who sign and are identified as “*Members*” on the Unit Register attached hereto or as separately maintained by the Company in its discretion (as may be amended from time to time in accordance with this Agreement, the “*Unit Register*”).

# **RECITALS**

**WHEREAS:** The Class A Members formed the Company as a limited liability company pursuant to the TBOC (as defined below).

**WHEREAS:** The undersigned Members, constituting a Majority in Interest (as defined in the Prior Agreement), now desire to amend and restate the Amended and Restated Company Agreement of the Company, dated as of February 1, 2021 (as amended to date, the “*Prior Agreement*”), in its entirety in the manner set forth in this Agreement, in accordance with the Prior Agreement and as permitted under the TBOC.

# **AGREEMENT**

**NOW, THEREFORE,** in consideration of the mutual covenants contained herein and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Members hereby amend and restate the Prior Agreement in its entirety as follows:

# **ARTICLE I  
FORMATION OF COMPANY**

1.1 **Formation; Name of the Company.** The Class A Members have formed the Company as a limited liability company pursuant to the provisions of the TBOC for the purposes hereinafter set forth. The name of the Company shall be “Ranch Hand Supply Co. LLC”.

1.2 **Definitions.** For purposes of this Agreement, capitalized terms used but not defined within the body of this Agreement shall have the meanings specified in Exhibit A attached hereto.

1.3 **Term.** The term of the Company commenced on July 10, 2019 and shall continue until the termination of the Company in accordance with the provisions of Article X.

1.4 **Principal Office.** The principal office of the Company shall be 12501 Pauls Valley Rd, Unit D, Austin, TX 78737, or such other location or locations in the State of Texas as the Board (as defined below in Section 7.1) may determine. The books and records of the Company shall be kept at the principal office of the Company, or such other location or locations in the State of Texas as the Board may determine.

1.5 Registered Office: Registered Agent. The "Registered Office" of the Company in Texas shall be 12501 Pauls Valley Rd, Unit D, Austin, TX 78737, and the name of the "Registered Agent" at such address is Quentin Cantu. The Registered Office and/or Registered Agent may be changed by the Board from time to time in accordance with provisions of the TBOC.

1.6 Purpose. The Company was formed for the object and purpose of, and the nature of the business to be conducted and promoted by the Company is, engaging in any lawful act or activity for which limited liability companies may be formed under the TBOC, including the operation (by the Company or of any of its subsidiaries) of food service businesses including food trucks, restaurants and catering services, and as a spirits manufacturer for pre-mixed beverages.

1.7 No Partnership. The Members intend that the Company shall not be a partnership (including a limited partnership) or joint venture, and that no Member be a partner or joint venturer of any other Member, for any purposes other than applicable tax laws, and this Agreement may not be construed to suggest otherwise.

## ARTICLE II
## MANAGEMENT

2.1 Management by the Board. Except for situations in which the approval of the Members is required by this Agreement or by non-waivable provisions of the TBOC, the powers of the Company shall be exercised by or under the authority of, and the business and affairs of the Company shall be managed under the direction of the Board, as appointed pursuant to the provisions of this Agreement. In furtherance thereof, subject only to Section 2.3 and any other provision of this Agreement conferring a right of consent, approval or joinder of the Members, the Board shall have the full, exclusive and complete right, power and authority to manage, control and make all decisions and give (or withhold) all consents or approvals with respect to the business, operations, investments and affairs of the Company and its properties, and to do all things which, in the sole judgment of the Board, are necessary, proper or desirable to carry out and exercise the foregoing authority. The Board shall also have full power and authority to implement or cause to be implemented the decisions of the Members. Without limiting the generality of the foregoing, the Board, subject to the limitations imposed in this Agreement, or one or more officers designated by the Board shall have the following power and authority, exercisable in the sole discretion of the Board on behalf of the Company:

- (a) to take any action to protect or preserve the title and interests of the Company with respect to its assets;
- (b) to take any action, including protests, with regard to any tax or other assessments imposed with respect to the assets or operations of the Company;
- (c) subject to any limitations or Member approvals as required by Section 2.3, to appoint, employ, contract with or terminate employees, contractors, consultants, accountants, attorneys and other Persons in connection with the business and affairs of the Company;
- (d) to the extent funds of the Company are available, make or cause to be made, all disbursements to pay all debts and obligations of the Company;
- (e) to maintain all funds of the Company in one or more accounts with banks or other financial institutions;
- (f) to prepare and modify any budget for the Company;

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(g) to establish reserves for operations, improvements and contingencies for the Company;

(h) to make distributions to the Members;

(i) to take any action with respect to the enforcement of the rights, duties and obligations of the Company to any Person, including the conduct of any litigation or other proceeding, the incurring of legal fees and expenses, and the settlement of claims and suits;

(j) to take any action with respect to the compliance of the Company with applicable laws, ordinances, orders, rules, regulations and requirements;

(k) to take all action and exercise all power and authority delegated to the Board under any other provisions of this Agreement;

(l) to initiate, waive, contest, settle or compromise any legal proceeding, suit, claims or action concerning the Company;

(m) to institute any judicial action or administrative appeal against any tax authority with respect to the Company;

(n) to acquire or sell personal property, tangible or intangible;

(o) to file or otherwise take advantage of on behalf of the Company any proceedings in, or consent to the filing of any petition under, any federal or state bankruptcy, insolvency or other laws for the relief of debtors; and

(p) to take any action reasonably appropriate to carry out any of the foregoing powers or that the Board may deem necessary, appropriate or desirable in furtherance of the purposes of the Company.

The foregoing powers shall be exercised by the Board, or one or more officers designated by the Board, on the Company's behalf and in its name, as its acts and deeds. All actions taken and all decisions made by the Board pursuant to the foregoing powers shall be binding on the Company.

## 2.2 Reserved.

2.3 Majority Decisions. Notwithstanding any other provision of this Agreement, the Certificate of Formation, or the TBOC to the contrary, at any time when any Preferred Units are outstanding, the Company shall not, either directly or indirectly by amendment, merger, consolidation, recapitalization, reclassification, or otherwise, do any of the following without the written consent of a Majority in Interest and any such act or transaction entered into without such written consent shall be null and void ab initio, and of no force or effect:

(a) perform or take any action which would result in a winding up, termination or dissolution of the Company under this Agreement or by operation of law;

(b) amend or restate the Certificate of Formation;

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(c) merge or consolidate the Company with any other entity or change or reorganize the Company into any other legal form or take any action that would result in the Company no longer being taxed as a partnership for federal income tax purposes;

(d) sell, transfer or otherwise dispose of all or substantially all of the assets of the Company;

(e) acquire or sell any real property;

(f) commence a voluntary bankruptcy of the Company;

(g) alter the Company's purpose, as expressed in Section 1.6;

(h) cause or permit any subsidiary of the Company (including Ranch Hand Spirits Co. LLC) to do any of the foregoing items (a) through (g);

(i) admit any new member to, or grant to any person an economic interest in, any subsidiary of the Company;

(j) make any Person other than the Company a manager of any subsidiary of the Company, unless approved by the Board;

(k) amend and/or restate the operating agreement of any subsidiary of the Company, unless approved by the Board, and only to the extent such amendment and/or restatement does not otherwise change the effective voting control of such subsidiary;

(l) create or authorize the creation of, or issue any other security convertible into or exercisable for, any equity security of the Company unless the same ranks junior to the Class D Units with respect to their rights, preferences, and privileges, or increase the authorized number of Preferred Units or any class thereof;

(m) purchase or redeem any equity securities of the Company, other than equity securities of the Company repurchased from former employees and consultants in connection with the cessation of their service on terms approved by the Board; or

(n) adopt, amend, terminate, or repeal any equity (or equity-linked) compensation plan or increase the number of equity securities of the Company that may be granted or otherwise issued thereunder.

### 2.4 Reserved.

2.5 Limited Authority of Members. Other than as specifically provided for in this Agreement, no Member shall, individually in its capacity as a Member, (i) be permitted to take part in the business or control of the business or affairs of the Company, (ii) have any voice in the management or operation of any Company property, (iii) have the authority or power to act as agent for or on behalf of the Company or any other Member, or (iv) incur any expenditures or create or incur any indebtedness or obligations on behalf of or with respect to the Company.

2.6 Outside Activities. This Agreement shall not preclude or limit, in any respect, the right of any Member or its Related Parties to engage or invest in any business activity of any nature or description, including those which may be the same as or similar to the Company's business and in competition

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therewith. Any such activity may be engaged in independently or with others without any obligation whatsoever to offer the same to the Company or any other Member. Neither the Company, any Member nor any of their respective Related Parties shall have any right, by virtue of this Agreement, in or to such other investments or activities, or to the income or proceeds derived therefrom, and the pursuit of such investments and activities, even if competitive with the business of the Company, shall not be deemed wrongful or improper. Notwithstanding the foregoing, this Section 2.6 shall in no way limit any other agreement to which a Member, Manager or officer of the Company (or their Affiliates) may be party.

2.7 Power of Attorney. By the execution of this Agreement, the Members constitute and appoint the Board, as their true and lawful attorney-in-fact and agent with full power and authority to act in their name, place and stead in the execution, acknowledgment, delivering, filing and recording all assumed or fictitious name certificates and other documents that the Board deems necessary or reasonably appropriate for the following specific purposes:

(a) to qualify or continue the Company as a limited liability company in Texas and to qualify the Company to do business in the states in which the Company is required to qualify;

(b) to amend this Agreement to reflect any of the following:

(i) a change in the identity of any Member, the admission, substitution or withdrawal of any Member, or an adjustment to the Capital Contributions, number of Units or Percentage Interest of any Member, in each case in accordance with the terms of this Agreement, or to amend the Certificate of Formation as required by any such change or amendment;

(ii) a change in the name of the Company, the location of the principal place of business of the Company, the Registered Agent of the Company or the Registered Office of the Company, in each case in accordance with the terms of this Agreement;

(iii) a change that, in the Board's reasonable discretion, is necessary or advisable to qualify or continue the qualification of the Company as a limited liability company or to ensure that the Company will not be treated as other than a partnership for federal income tax purposes;

(iv) a change that, in the Board's reasonable discretion, (A) does not adversely affect the Members in any material respect, or (B) is necessary or advisable to satisfy any requirements, condition or guidelines contained in any opinion, directive, order, ruling or regulation of any federal or state agency or judicial authority or contained in any federal or state statute (including the TBOC);

(v) an amendment that in the Board's reasonable discretion is necessary or advisable in connection with the authorization or issuance of any class or series of equity in accordance with this Agreement, subject to the receipt of any consent of the Members required in connection with such issuance by Section 2.3;

(vi) any amendment of this Agreement expressly permitted in this Agreement to be made by the Board without the Members' consent (including as permitted by Sections 3.3, 9.10 or 12.4) or any amendment of this Agreement made following receipt of the Members' consent as required by this Agreement or applicable provisions of the TBOC; or

(c) to reflect the termination of the Company after the same has been terminated in accordance herewith.

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The power of attorney granted herein shall be deemed to be coupled with an interest and shall, to the extent permitted by law, survive the dissolution and liquidation of a Member, and shall be binding on any assignee or vendee of any Unit(s) hereunder, including any of the distributive rights relating thereto.

# ARTICLE III
CAPITAL OF THE COMPANY

3.1 Capital Contributions. Each Member shall contribute as their initial capital contributions (if any), the assets (if any) listed opposite such Member's name in the column entitled "Capital Contribution" on the Unit Register (as may be amended from time to time in accordance with this Agreement) to the capital of the Company concurrently with such Member's execution and delivery thereof. Any Member may make such further capital contributions as such Member and the Board may mutually determine from time to time. Any future capital contributions by any Member will be reflected on the Unit Register. Except as otherwise provided in this Agreement, no Member shall have any obligation to make any additional contributions of capital to the Company or to make any loan to the Company, and no Member shall have any liability to the Company or any other Member by virtue of refusing to make any additional contributions of capital or loans to the Member. Notwithstanding the prior sentence, nothing herein shall prevent a Member from lending money to the Company under terms and conditions approved by the Board.
3.2 Return of Capital Contributions. No Member is entitled to the return of its Capital Contributions or to be paid interest in respect of either its Capital Account or any Capital Contributions made by it to the Company. No unrepaid Capital Contributions shall be deemed or considered to be a liability of the Company or of any Member. No Member shall be required to contribute or loan any cash or property to the Company to enable the Company to return any Member's Capital Contributions.
3.3 Members; Contributions; Units and Percentage Interests. The name, address, Capital Contributions and Percentage Interest of, and the number and class of Units held by, each Member shall be set forth on the Unit Register, which shall be amended by the Board from time to time to reflect the issuance or transfer of Units, and the admission of substituted or additional Members. The Units owned by Members hereunder shall not be represented by certificates.
3.4 Initial Units; Additional Issue of Units. The interest of the Members in the Company shall be represented by Units, which shall entitle the holder to the rights and are subject to the conditions and terms as set forth in this Agreement. Initially, the Board has authorized the issuance of the Units set forth on the Unit Register to be issued to the Members upon the execution of this Agreement or the satisfaction of any other conditions identified by the Board. An aggregate of 1,711,397.5 Class A Units are issued and outstanding and held between Brian R. Murphy and Quentin Cantu, as reflected on the Unit Register. The Board may cause the Company to issue additional Class A Units only on such terms and conditions as are approved by a Preferred Unit Majority. The Company is authorized to issue up to 1,161,924.6762 Class B Units (the "Authorized Class B Units"), up to 562,182 Class C Units (the "Authorized Class C Units"), and up to 3,248,434 Class D Units (the "Authorized Class D Units" and, collectively with the Authorized Class B Units and the Authorized Class C Units, the "Authorized Preferred Units"), in each case either to persons who sign Subscription Agreements to purchase Preferred Units, through warrants exercisable for Preferred Units, or through promissory notes convertible into Preferred Units, to raise such additional capital as the Board determines is needed for the Company to expand operations or for general working capital purposes. The issuance of (up to) such Authorized Preferred Units is hereby approved and ratified in all respects, and no further action by the Board or any Member shall be necessary in order to consummate the issuance thereof, provided that the purchase price per Preferred Unit issued on or after the Effective Date is at least $3.06239 (if issued upon the conversion of the accrued balance of a convertible promissory note) and at least $3.82799 (if issued for cash, through Capital Contributions). In addition, the Company is authorized to issue such additional Preferred Units as may be required to comply with the terms of any

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warrants or convertible notes, including as a result of accumulated interest or the effect of the discount and valuation cap terms of any convertible notes. After issuance of the Authorized Preferred Units (and such additional Units as may be required under the terms of the Company's warrants or convertible notes), the Board may cause the Company to issue new Units (of any class other than Class A Units or Class RR Units) only on such terms as are approved by a Majority in Interest, subject to the provisions of Sections 3.7 and 3.8 below.

3.5 Loans and Withdrawal of Capital Contributions. No Member shall be permitted to borrow, or to make an early withdrawal of, any portion of the capital contributed by such Member except as otherwise provided herein.

3.6 Limited Liability of Members. No Member shall be liable for the debts, liabilities, contracts or other obligations of the Company except to the extent of any unpaid Capital Contributions a Member has agreed to make to the Company and a Member's share of the assets (including undistributed revenues) of the Company; and in all events, a Member shall be liable and obligated to make payments of its Capital Contributions only as and when such payments are due in accordance with the terms of this Agreement, and no Member shall be required to make any loans to the Company.

# 3.7 Preemptive Rights.

(a) Subject to compliance with applicable securities laws, if the Company proposes to offer or sell any New Securities (each, a "New Issuance"), the Company hereby grants each Major Investor the right to purchase up to his/her/its Pro Rata Share of the New Securities that are the subject of such New Issuance (the "Subject Securities"). A Major Investor shall be entitled to apportion such right hereby granted to it in such proportions as it deems appropriate among itself and its Affiliates.

(b) The Company shall give written notice to all Major Investors (an "Issuance Notice") of any proposed New Issuance within seven (7) days after its approval in accordance with Section 3.4. The Issuance Notice shall set forth the material terms and conditions of the proposed New Issuance, including: (A) a description of the Subject Securities; (B) the proposed issuance date (the "Issuance Date"), which shall be at least thirty (30) days after the date of the Issuance Notice; and (C) the proposed purchase price of the Subject Securities (including, if applicable, the proposed purchase price per unit).

(c) Each Major Investor may, for a period of 15 days following the receipt of an Issuance Notice (the "Exercise Period"), elect to purchase up to his/her/its Pro Rata Share of the Subject Securities for the price set forth in the Issuance Notice. A Major Investor electing to purchase a portion of the Subject Securities must do so by delivering a written notice to the Company (an "Exercise Notice"), which shall constitute a binding and irrevocable offer by such Major Investor to purchase the portion of the Subject Securities described therein. The failure of a Major Investor to deliver an Exercise Notice by the end of the Exercise Period shall constitute a waiver of his/her/its rights under this Section 3.7(c) with respect to the Subject Securities in question.

(d) Each Major Investor exercising his/her/its rights under this Section shall, no later than the Issuance Date, deliver to the Company the purchase price for the portion of the Subject Securities purchased by him/her/it by certified or bank check or wire transfer of immediately available funds.

(e) Notwithstanding the foregoing, this Section 3.7 shall not apply to (i) the issuance of incentive-based Units pursuant to Section 3.8, (ii) any Preferred Units other than Preferred Units in excess of the Authorized Preferred Units contemplated by Section 3.4, (iii) equity securities of the Company issued as a distribution on outstanding Units, (iv) equity securities of the Company issued by reason of a unit split, split-up, or distribution on outstanding Units.

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(f) The Major Investors (which Major Investors must include both Heaven Hill and BORA, in each case for so long as such member continues to beneficially own its Preferred Unit Threshold) holding at least a majority of the Preferred Units then outstanding and held by all Major Investors may waive, on behalf of all Major Investors, the rights of first offer set forth in this Section 3.7 with respect to any proposed offer or sale of New Securities, even if certain Major Investors nonetheless, by agreement with the Company, purchase some or all such New Securities.

3.8 Incentive-Based Units. Notwithstanding anything to the contrary provided in Section 3.4, but subject to Section 2.3, the Board shall be permitted, without the prior approval of any Member (except as provided in Section 2.3), to create and issue up to fifteen percent (15%) of the Company's Fully-Diluted Units, to be designated as "Class RR Units," to the Company's employees, officers, Managers, consultants, advisors or service providers pursuant to any plan, agreement or similar arrangement approved by the Board, such amount to be calculated immediately following such issuances, to be net of any cancellations, expirations or repurchases, and to be adjusted for any Unit dividend, split, combination or other recapitalization with respect to the Units. Class RR Units shall not be entitled to vote on any matters presented to the Members for a vote, and such Class RR Units shall not be considered outstanding for purposes of determining voting percentages and thresholds. For the avoidance of doubt, this Section 3.8 shall be interpreted such that the aggregate Class RR Units that may be issued or issuable pursuant to this Section 3.8 shall not exceed 15% of the Company's Fully-Diluted Units without approval of a Majority in Interest, provided, however, that the Company shall in no case be required to reduce the number of Class RR Units available for issuance under any such plan, agreement or similar arrangement below the number of Class RR Unit awards then outstanding.

# ARTICLE IV
ALLOCATIONS AND DISTRIBUTIONS

# 4.1 Allocations.

(a) In General. The recognition and classification of the items of income, gain, loss and deduction of the Company (whether recognized prior to or during Winding Up) shall be the same for purposes of this Section 4.1 as their recognition and classification for federal income tax purposes determined (i) without regard to any Section 754 Election (as defined below) which may have been made, (ii) without regard to any provision of the Code which provides that an item of income or gain is not includable in gross income or that an expenditure is not deductible or chargeable to a capital account, and (iii) without regard to any items allocated pursuant to Section 4.1(d).

(b) Net Income and Loss. Subject to the regulatory and special allocations in Section 4.1(c), and after taking into account distributions and contributions during such fiscal year, the Net Income and Net Loss, if any, of the Company for any fiscal year shall be allocated among the Members in a manner such that if the Company were dissolved on the last day of such fiscal year, its affairs wound up, its assets sold at a value equal to their book value, the sale proceeds distributed to the Members in accordance with their respective Capital Account balances immediately after making such allocations and after taking into account distributions and contributions made during such fiscal year, such allocations would cause, as nearly as possible, each Member's Adjusted Capital Account to equal the distributions that would be made to such Members pursuant to Section 10.3(b). To the extent necessary to produce the results prescribed in this Section 4.1(b), items of income and gain may be allocated separately from items of loss, deduction and credit. For the avoidance of doubt, in determining such allocations, each Member's Adjusted Capital Account shall be calculated by reference to the tax (not book) basis of such Member's Capital Account.

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(c) Restrictions on Allocations. Notwithstanding anything in this Section 4.1 to the contrary:

(i) The Net Loss allocated to a Member pursuant to Section 4.1(b) shall not exceed the maximum amount of Net Loss that can be so allocated without causing such Member to have a negative Adjusted Capital Account at the end of the year. All Net Loss in excess of the limitation set forth in this Section 4.1(c)(i) shall be allocated to the Members with positive Adjusted Capital Account balances, in proportion to such balances.

(ii) In the event a Member receives any adjustments, allocations or distributions described in Treasury Regulations § 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Net Income shall be specially allocated to such Member in an amount and manner sufficient to eliminate, to the extent required by the Treasury Regulations, the negative Adjusted Capital Account of such Member as quickly as possible. This Section 4.1(c)(ii) is intended to constitute a qualified income offset under Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

(iii) Notwithstanding any other provision of this Agreement, but subject to the exceptions referenced in Treasury Regulations § 1.704-2(i)(4), if there is a net decrease in Member Minimum Gain during any year, items of income and gain for such year (and, if necessary subsequent years) shall first be allocated to each Member with a share of that Member Minimum Gain in proportion to, and to the extent of, an amount equal to such Member's share of the net decrease in Member Minimum Gain (as such share is determined in accordance with Treasury Regulations § 1.704-2(i)(4)). The items to be so allocated shall be determined in accordance with Treasury Regulations § 1.704-2(i)(4), or any successor provision. This Section 4.1(c)(iii) is intended to constitute a minimum gain chargeback under Treasury Regulation Section 1.704-2(f) and shall be interpreted consistently therewith.

(iv) Nonrecourse Deductions for any taxable year shall be allocated among the Members in the same manner as are the other profits and losses of the Company for such year. Member Nonrecourse Deductions for any taxable year should be allocated among the Members in accordance with Treasury Regulations § 1.704-2(i)(1).

(v) The allocations set forth in this Section 4.1(c) ("Regulatory Allocations") are intended to comply with certain requirements of Treasury Regulations §§ 1.704-1 and 1.704-2. Notwithstanding any other provision of this Section 4.1 (other than the Regulatory Allocations), the Regulatory Allocations shall be taken into account in allocating other Net Income and Net Loss among the Members so that, to the extent possible, the net amount of such allocations of other Net Income and Net Loss and the Regulatory Allocations to the Members shall be equal to the net amount that would have been allocated among the Members if the Regulatory Allocations had not occurred.

(d) Income Tax Allocations. Items of income, gain, loss and deduction with respect to an asset contributed to the Company by a Member that has a fair market value at the time of such contribution which is different from its adjusted tax basis shall, for tax purposes only, be allocated among the Members in the manner provided under Section 704(c) of the Code and Treasury Regulations thereunder so as to take into account any variation between the basis of the property to the Company and its fair market value at the time of contribution. The Board will determine all allocations pursuant to this Section 4.1(d) using any reasonable method that is permitted under Treasury Regulations Section 1.704-3. Any recapture of (i) depreciation, depletion or any other item of deduction shall be allocated, in accordance with Treasury Regulations Sections 1.1245-1(e) and 1.1254-5, to the Members who received the benefit of such deductions and (ii) credits shall be allocated to the Members in accordance with applicable law. Allocations pursuant to this Section 4.1(d) are solely for purposes of federal, state, and local taxes and shall not affect, or in any way be taken into account in computing, any Member's Capital

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Account or share of Net Income, Net Losses, other items or distributions pursuant to any provision of this Agreement.

## 4.2 Computation of Capital Account.

(a) The balance of the “Capital Account” of a Member is initially zero and as of any date is increased by (i) the amount of cash contributed by that Member to the Company on or prior to that date, (ii) the fair market value (as determined in good faith by the Board) of any property (reduced by any liabilities which are assumed by the Company or to which such property is subject) which is contributed by that Member to the Company on or prior to that date and (iii) any item of Company income or gain which is allocated to such Member pursuant to Section 4.1 on or prior to that date; and is decreased by (iv) any Company deduction or loss which is allocated to such Member pursuant to Section 4.1 on or prior to that date, (v) the amount of cash distributed by the Company to such Member on or prior to that date and (vi) the fair market value (as determined in good faith by the Board) of any property (reduced by any liabilities which are assumed by the distributee Member or to which the property is subject) which is distributed by the Company to the Member on or prior to that date. For Capital Account purposes, depreciation, cost recovery deductions and gain or loss on sale or other disposition shall take into account the book basis, and not the tax basis, of the assets of the Company. Allocations pursuant to Section 4.1(d) shall not be taken into account for Capital Account purposes.

(b) The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Treasury Regulations. In the event the Board shall determine that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto, are computed in order to comply with such Treasury Regulations, the Board may make such modification, provided that it is not likely to have a material effect on the amounts distributable to any Member upon the termination of the Company. The Board also shall make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Treasury Regulations Section 1.704-1(b).

## 4.3 Distributions.

(a) Except as set forth in Section 10.3(b) herein, the Board shall calculate Net Cash Flow for distribution, and shall distribute such Net Cash Flow at such times as it determines in its discretion. Net Cash Flow shall be distributed to the Members as follows:

(i) With respect to Net Cash Flow from operations only:

a. First, (A) twenty percent (20%) to the Class A Members in proportion to their respective Percentage Interests and (B) eighty percent (80%) to the Preferred Members on a pari passu basis in proportion to their respective Unreturned Capital Amounts, in each case until such time as each Preferred Member’s Unreturned Capital Amount has been reduced to zero; and

b. Second, to all Members in proportion to their respective Percentage Interests, provided that distributions with respect to any Class RR Units intended to qualify as “profits interests” shall be adjusted as necessary to comply with the requirements set forth in IRS Revenue Procedure 93-27 (as clarified by Revenue Procedure 2001-43).

(ii) With respect to all other Net Cash Flow (including Net Cash Flow related to the Winding Up and liquidation of the Company and Net Cash Flow in connection with a Sale of the Company):

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a. First, 100% to all Preferred Members, pro rata in proportion to each Member's Unreturned Capital Amount, until the Unreturned Capital Amounts of all Preferred Members have been reduced to zero; and

b. Next, to all Members in proportion to their respective Percentage Interests, provided that distributions with respect to any Class RR Units intended to qualify as 'profits interests' shall be adjusted as necessary to comply with the requirements set forth in IRS Revenue Procedure 93-27 (as clarified by Revenue Procedure 2001-43).

(b) With respect to each taxable year of the Company, subject to a determination of Net Cash Flow by the Board pursuant to Section 4.3(a), the Board shall make one or more distributions to each Member in such amounts that, when added to any other distributions made by the Company pursuant to Section 4.3(a) or this Section 4.3(b) during or with respect to such taxable year, equals thirty percent (30%) of such Member's allocable share (determined under Section 4.1) of the Company's Net Income from such taxable year, or such other amount as determined by the Board in its sole discretion. At the discretion of the Board, distributions pursuant to this Section 4.3(b) may be made periodically during the taxable year to correspond with the timing of any estimated tax payments to the Internal Revenue Service (or other taxing authority) required of the Members. Any amount distributed pursuant to this Section 4.3(b) shall be treated as an advance distribution of amounts otherwise distributable to the Members pursuant to Section 4.3(a). For the avoidance of doubt, no distributions under this Section 4.3(b) shall be made with respect to the taxable year in which a liquidation event occurs.

4.4 Allocations Upon Transfer. Upon the transfer of any Member's interest, the income, gain, loss and deduction of the Company shall be allocated among the transferor and transferee of the interest in the Company by using an interim closing of the Company's books and records as of the last day of the month in which the transfer occurs or in accordance with any other permissible method under Code Section 706 and the regulations thereunder, as determined by the Board in its reasonable discretion.

### ADMINISTRATIVE AND TAX MATTERS

5.1 Books and Records. The books and records of the Company shall be kept, at the expense of the Company, by one or more officers designated by the Board, at its principal places of business or at such other place as the Board may designate. The books and records of the Company shall be maintained on a calendar year basis, using such basis of accounting as the Board may determine from time to time. The books and records of the Company shall reflect all Company transactions and shall be appropriate and adequate for conducting the Company business.

5.2 Inspection. The books and records of the Company shall be maintained at the administrative office, and shall be open to inspection by the Members at all reasonable times during any business day with reasonable advance notice of such inspection.

5.3 Bank Accounts; Investments. All funds of the Company shall be deposited in its name in an account or accounts maintained in a national or state bank or banks or brokerage account or accounts designated from time to time by the Board. The funds of the Company shall not be commingled with the funds of any other Person. Checks shall be drawn upon the Company account or accounts only for the purposes of the Company and shall be signed by such signatory party or parties as may be designated from time to time by the Board. The Board shall have the right to deposit Company funds that, from time to time, are not required for the operation of the business of the Company in interest bearing bank accounts or to purchase commercial paper, treasury bills or other short-term instruments or interests as the Board deems necessary, appropriate or advisable.

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5.4 Tax Audits. In the event of an audit of the federal income tax return of the Company by the Internal Revenue Service, and pursuant to Code section 6223 and related Code sections, the Members hereby designate the Administrative Member as the "partnership representative" of the Company (the "PR"). The PR shall be specifically authorized by the Members to (i) engage attorneys and/or accountants to represent the Company in connection with such audit and any subsequent actions relating thereto, (ii) to negotiate and enter into, subject to approval by the Board, an agreement with the Internal Revenue Service which shall be binding on all the Members, (iii) to seek administrative and judicial review of any administrative adjustments of Company items made by the Internal Revenue Service, and (iv) to take such other actions which relate to the tax audit of the Company. The PR shall inform the Members of all material administrative and judicial proceedings which may arise with respect to the Company tax returns. The PR shall provide each Member with a copy of any notice received from the Internal Revenue Service regarding any proposed adjustments resulting from such an audit and any finalized adjustments resulting from such an audit. In the event a Member other than the PR receives a notice of a proposed adjustment from the Internal Revenue Service, such Member shall, immediately upon receipt thereof, provide such notice to the PR so that the PR may take such actions as the PR deems necessary. The PR shall exercise ordinary business judgment in carrying out the duties and responsibilities designated above, and unless gross negligence, fraud, deceit or willful misconduct shall be involved, the PR shall not be liable or obligated to the Members for any mistake of fact or judgment made by the PR in carrying out such duties and responsibilities which result in any loss to the Members. If the PR determines in the PR's sole, absolute and uncontrolled discretion to not contest the finalized partnership adjustments, the Company is authorized to elect to issue adjusted information returns (e.g., amended Schedule K-1's to the Partnership's Form 1065) to each of the Persons who or which were Members (or assignees of Members) in the tax year which is the subject of such finalized partnership adjustments, and such Persons shall promptly amend their respective individual returns for such year to take any adjustments into account on such returns and promptly pay any tax, penalties and interest attributable to such adjustments. The provisions of this Section 5.4 shall remain binding on a Person after that Person ceases to be a Member. Each Member agrees to indemnify, defend and hold harmless the Company, the PR and the other Members in respect to any taxes, penalties, or interest as a result of that Member's failure to file an amended tax return or pay that Member's taxes and additions to tax.

### 5.5 Tax Returns and Elections.

(a) Tax Returns. Subject to the direction and control of the Board, the Administrative Member shall prepare and file (or cause to be prepared and filed) all income tax returns of the Company and shall furnish copies thereof to the Members. The Administrative Member, on behalf of the Company and at the time and in the manner provided in Treasury Regulation Section 1.745-1(b), may make an election to adjust the basis of Company property in the manner provided in Sections 734(b) and 743(b) of the Code (a "Section 754 Election").

(b) Income Tax Elections. The Board shall have the right to make any applicable elections under the Code which, in its best judgment, are in the best interest of the Company, other than an election to treat the Company as other than a partnership for federal income tax purposes. The Company will make an election under Section 754 of the Code. Each Member will, upon reasonable request by the Company, supply to the Company any information in such Member's possession that is reasonably necessary to give proper effect to such election.

(c) No Inconsistent Treatment. Each Member agrees that such Member shall not treat any Company item on such Member's federal, state, foreign, or other income tax return inconsistently with the treatment of the item on the Company's return.

5.6 Reimbursement. The Administrative Member shall be entitled to reimbursement out of Company funds for any and all actual costs and expenses incurred by the Administrative Member on behalf

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of the Company, while acting on behalf of the Company, including the administrative and tax matters described in this Article V.

### 5.7 Certain Rights of Major Investors.

(a) **Delivery of Financial Statements.** Without limiting any other rights any Major Investor may have (whether such rights are set forth in this Agreement or another agreement or arise under applicable law), the Company shall deliver to each Major Investor, provided that the Board has not reasonably determined that such Major Investor is a competitor of the Company:

(i) as soon as practicable, but in any event within 120 days after the end of each fiscal year of the Company (1) a balance sheet as of the end of such year and (2) statements of income and of cash flows for such fiscal year, but such financial statements need not be audited;

(ii) as soon as practicable, but in any event within 45 days after the end of each quarter of each fiscal year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance sheet as of the end of such fiscal quarter;

(iii) as soon as practicable, but in any event within 10 days after the reasonable request by a Major Investor, a statement showing the number of equity securities of the Company (and securities convertible into or exercisable for equity securities of the Company) outstanding and the number of equity securities of the Company reserved for issuance pursuant to any plan or similar arrangement, if any, all in sufficient detail to permit such Major Investor to calculate its percentage equity ownership in the Company; and

(iv) such other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major Investor may from time to time reasonably request; provided, however, that the Company shall not be obligated under this Section 5.7(a) to provide information (1) that the Company reasonably determines in good faith to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in a form acceptable to the Company); or (2) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

If, for any period, the Company has any subsidiary whose accounts are consolidated with those of the Company, then in respect of such period the financial statements delivered pursuant to the foregoing sections shall be the consolidated and consolidating financial statements of the Company and all such consolidated subsidiaries.

(b) **Inspection.** The Company shall permit each Major Investor (provided that the Board has not reasonably determined that such Major Investor is a competitor of the Company), at such Major Investor’s expense, to visit and inspect the Company’s properties; examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Investor; provided, however, that the Company shall not be obligated pursuant to this Section 5.7(b) to provide access to any information that the Company reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

(c) **Termination of Information Rights.** The covenants set forth in Sections 5.7(a) and 5.7(b) shall terminate and be of no further force or effect (i) immediately before the consummation of the

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first underwritten public offering of securities of the Company (or any successor to the Company) under the Securities Act, (ii) when the Company (or any successor to the Company) first becomes subject to the periodic reporting requirements of Sections 12(g) or 15(d) of the Securities Exchange Act of 1934, as amended, or (iii) upon the closing of a Sale of the Company, whichever event occurs first.

(d) Confidentiality. Each Major Investor agrees that such Major Investor will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor or make decisions with respect to its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Section 5.7, unless such confidential information (i) is known or becomes known to the public in general (other than as a result of a breach of this Section 5.7(d) by such Major Investor), (ii) is or has been independently developed or conceived by such Major Investor without use of the Company's confidential information, or (iii) is or has been made known or disclosed to such Major Investor by a third party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that a Major Investor may disclose confidential information (w) to its attorneys, accountants, consultants, and other professionals to the extent reasonably necessary to obtain their services in connection with monitoring its investment in the Company; (x) to any prospective purchaser of any securities of the Company from such Major Investor, if such prospective purchaser agrees to be bound by the provisions of this Section 5.7(d); (y) to any existing or prospective Affiliate, partner, member, stockholder, or wholly owned subsidiary of such Major Investor in the ordinary course of business, provided that such Major Investor informs such Person that such information is confidential and directs such Person to maintain the confidentiality of such information; or (z) as may otherwise be required by law, regulation, rule, court order, or subpoena, provided that such Major Investor promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required disclosure. For purposes of this Section 5.7, each of BORA and Heaven Hill shall be deemed not to be a competitor of the Company.

## ARTICLE VI
MEMBERS

6.1 Meetings. Meetings of Members shall be held at any place stated in any proper notice of meeting, whether within or without the State of Texas. Meetings shall be held only when called by (a) the Board, or (b) a Majority in Interest.

6.2 Notice of Meetings. Written or printed notice stating the place, day and hour of each meeting of the Members and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) nor more than sixty (60) days before the date of the meeting, either personally or by mail or email or similar communication, by or at the direction of the person(s) calling the meeting, to each Member entitled to vote at the meeting.

6.3 Quorum of and Action by Members. The presence at a meeting of Members, in person or by proxy, of the Members holding at least the minimum number of Units required to act upon a matter shall be requisite to and shall constitute a quorum at such meeting for the transaction of business, except as otherwise provided by statute, the Certificate of Formation or this Agreement. A Member shall be entitled to one vote for each of its Units which is entitled to vote on a matter submitted to a vote of the Members. With respect to any matter, the affirmative vote or consent of a Majority in Interest entitled to vote on such matter shall be required to constitute the act of the Members; provided that the election of Managers shall be governed by the provisions of Article VII hereof. Unless otherwise provided in the Certificate of Formation or this Agreement, the Members represented in person or by proxy at a meeting of Members at which a quorum is not present may adjourn the meeting until such time and to such place as may be determined by a vote of a Majority in Interest present in person or by proxy at that meeting. At any such

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adjourned meeting at which a quorum shall later be present or represented, any business may be transacted that might have been transacted at the meeting as originally convened.

6.4 Proxies. No proxy shall be valid after eleven (11) months from the date of its execution unless otherwise provided in the proxy. Each proxy shall be revocable unless the proxy form conspicuously states that the proxy is irrevocable and the proxy is coupled with an interest. Each proxy shall be delivered to the Board prior to or at the time of the meeting.

6.5 Action Without a Meeting. Any action required by the TBOC to be taken at any annual or special meeting of Members, or any action which may be taken at any annual or special meeting of Members, may be taken without a meeting, without prior notice, and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the Members holding at least the number of Units entitled to vote required for such action and shall be delivered to the Board within a reasonable period of time thereafter.

6.6 Telephone Meetings. Subject to the provisions of applicable law and this Agreement regarding notice of meetings, Members may, unless otherwise restricted by the Certificate of Formation or this Agreement, participate in and hold a meeting by using conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this Section 6.6 shall constitute presence in person at such meeting, except when a person participates in the meeting for the sole purpose of objecting to the transaction of any business on the ground that the meeting was not lawfully called or convened.

## ARTICLE VII
## MANAGERS

### 7.1 Board of Managers.

(a) The powers of the Company shall be exercised by or under authority of, and the business and affairs of the Company shall be managed and controlled under the direction of, a board of managers (the "Board" and, individually, each member of the Board is a Manager). The Board shall have full and complete discretion to manage and control the business and affairs of the Company, to make all decisions affecting the business and affairs of the Company, and to take all such actions as it deems necessary or appropriate to accomplish the purposes of the Company. Notwithstanding the foregoing, unless the Board then consists of only one (1) seated Manager, no Manager in his or her individual capacity shall have the authority to manage the Company or approve matters relating to, or otherwise to bind the Company, such powers being reserved to all the Managers acting pursuant to Section 7.6 through the Board, and to such officers and agents of the Company as designated by the Board.

(b) As of the Effective Date, the total authorized number of Managers constituting the Board is five (5).

(c) As of the Effective Date, the Managers shall be Brian Murphy, Quentin Cantu (collectively, Brian Murphy and Quentin Cantu are referred to as the "Founders"), Will Rives (the initial Heaven Hill Designee, who is deemed to be approved by the Founders to be the Heaven Hill Designee), and Brian Isern (the initial BORA Designee, who is deemed to be approved by the Founders to be the BORA Designee), and there shall be one vacancy on the Board.

(d) For so long as Nelson County Distilling Company (including its Affiliates, "Heaven Hill") continues to beneficially own its Preferred Unit Threshold (as defined herein): (i) Heaven Hill shall be entitled to designate one individual to be a member of the Board (such individual, the

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"Heaven Hill Designee"); (ii) the Heaven Hill Designee may be removed and replaced at any time, with or without cause, by the request of Heaven Hill, subject to the affirmative vote of both of the Founders, which approval shall not be unreasonably withheld, conditioned, or delayed; (iii) the Heaven Hill Designee may not be removed or replaced for any reason without the written consent of Heaven Hill; and (iv) the Heaven Hill Designee shall be a member of the Board.

(e) For so long as BORA continues to beneficially own its Preferred Unit Threshold: (i) BORA shall be entitled to designate one individual to be a member of the Board (such individual, the "BORA Designee"); (ii) the BORA Designee may be removed and replaced at any time, with or without cause, by the request of BORA, subject to the affirmative vote of both of the Founders, which approval shall not be unreasonably withheld, conditioned, or delayed; (iii) the BORA Designee may not be removed or replaced for any reason without the written consent of BORA; and (iv) the BORA Designee shall be a member of the Board.
(f) Two members of the Board shall be the Founders, or individuals designated by the Founders.
(g) One member of the Board shall be an individual designated by the other members of the Board.
(h) To the extent that Section 7.1(d) or Section 7.1(e) shall not be applicable, any member of the Board who would otherwise have been designated in accordance with the terms thereof shall instead be voted upon, and may be removed, by a Majority in Interest.
(i) No Person shall have any liability as a result of designating an individual to be a member of the Board for any act or omission by such designated individual in his or her capacity as a member of the Board, nor shall any Person have any liability as a result of voting for any such designated individual in accordance with the provisions of this Agreement.
(j) Each Member agrees to vote, or cause to be voted, all equity securities of the Company owned by such Member, or over which such Member has voting control, and to execute written consents without taking a vote, from time to time and at all times, in whatever manner as shall be necessary to ensure that the provisions of this Section 7.1 are carried out and given full force and effect.

7.2 Term of Office: Resignation. Subject to Section 7.1, a Manager shall serve as a Manager until the earlier of (i) such Manager's death (in the case of an individual), (ii) such Manager's incompetence (in the case of an individual), (iii) such Manager's dissolution or initiation of bankruptcy proceedings (in the case of an entity), (iv) such Manager's resignation or removal, or (v) such time as a new Manager is appointed by the Members in accordance with Section 7.3. Any Manager may resign at any time. Such resignation shall be made in writing and shall take effect at the time specified therein, or if no time be specified, at the time of its receipt by the remaining Managers, or if none, to any Member. The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation.
7.3 Removal: Filling of Vacancies. Subject to Section 7.1, any Manager may be removed, with or without cause, by the affirmative vote of a Majority in Interest, and any vacancy occurring in a Manager position may be filled by the affirmative vote of a Majority in Interest, subject to the rights of the Founders to approve the removal and/or replacement of the Heaven Hill Designee and BORA Designee, as provided for in Sections 7.1(d) and 7.1(e), respectively.
7.4 Reimbursement of Manager. All reasonable out-of-pocket expenses incurred by the Board, or one or more officers designated by the Board, in managing and conducting the business and affairs of

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the Company shall be paid or reimbursed by the Company in accordance with the policy of the Company adopted by the Board.

7.5 Committees. The Board may designate committees, each committee to consist of one or more Managers, which committees shall have such power and authority and shall perform such functions as may be provided in such resolution.

7.6 Quorum and Act of Managers or Committee. In managing the business and affairs of the Company and exercising its powers, the Board shall only act (i) collectively through meetings and/or written consents as provided in this Agreement; (ii) through committees established pursuant to this Agreement; and (iii) through Managers or officers to whom authority and duties have been delegated pursuant to this Agreement. A majority of all of the Managers (or, in the case of a committee of the Board, the total number of members of such committee) constitutes a quorum for the purpose of transacting business at a meeting of the Board or committee of the Board. The affirmative vote of a majority of the Managers then serving on the Board (or, in the case of a committee of the Board, the total number of members then serving on such committee) constitutes an act of the Board or committee of the Board, as applicable.

7.7 Conflict of Interest. The Heaven Hill Designee may be excluded from meetings of the Board and/or access to related information and materials, or portions thereof, if the Board (excluding the Heaven Hill Designee) determines in good faith, upon advice of counsel, that such exclusion is reasonably necessary (i) to preserve the establishment of attorney-client privilege, (ii) to protect confidential or proprietary information provided to the Company by a Competitor of Heaven Hill (e.g. pricing of bulk tequila), (iii) to protect confidential information concerning any transaction relating to a Sale of the Company involving any Competitor of Heaven Hill, or (iv) to resolve such information, materials and/or meetings that involve a conflict of interest transaction or matter involving Heaven Hill. In the event of a conflict between the terms of this Section 7.7 and that certain Letter Agreement by and between the Company and Heaven Hill dated June 8, 2020 (the “*Letter Agreement*”), the terms of this Agreement will control and compliance with this Section 7.7 shall be deemed in compliance with the Letter Agreement.

7.8 Action by Written Consent. An action of the Board or of a committee of the Board, as applicable, may be taken without holding a meeting, without providing notice, or without taking a vote if a written consent or consents stating the action to be taken is obtained from the number of Managers, or committee members, as appropriate, necessary to have at least the minimum number of votes that would be necessary to take the action at a meeting at which each Manager, or committee member, as applicable, entitled to vote on the action is present and votes.

## ARTICLE VIII

8.1 Officers. The Board may designate one or more individuals (who may or may not be Managers) to serve as officers of the Company. The Company shall have such officers as the Board may from time to time determine, which officers may (but need not) include a President, one or more Vice Presidents (and in case of each such Vice President with such descriptive title, if any, as the Board shall deem appropriate), a Secretary and a Treasurer. Any two or more offices may be held by the same person.

8.2 Compensation. The officers of the Company shall be entitled to such compensation as may be determined from time to time by the Board.

8.3 Term of Office: Removal, Filling of Vacancies. Each officer of the Company shall hold office until his or her successor is chosen and qualified in his or her stead or until his or her earlier death,

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resignation, retirement, disqualification or removal from office. Any officer designated by the Board may be removed at any time by the Board whenever in their judgment the best interests of the Company will be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Designation of an officer shall not of itself create contract rights. If the office of any officer becomes vacant for any reason, the vacancy may be filled by the Board.

8.4 President. The President shall be the chief executive officer of the Company and, subject to the provisions of this Agreement, shall have general supervision of the affairs of the Company and shall have general and active control of all its business. The President shall have power and general authority to execute bonds, deeds and contracts in the name of the Company, to cause the employment or appointment of such employees and agents of the Company as the proper conduct of operations may require and to fix their compensation, subject to the provisions of this Agreement; to remove or suspend any employee or agent who shall have been employed or appointed under his authority or under authority of an officer subordinate to him; and in general to exercise all the powers usually pertaining to the office of president of a corporation, except as otherwise provided by statute, the Certificate of Formation or this Agreement.

8.5 Vice Presidents. Each Vice President that is designated by the Board shall generally assist the President and shall have such powers and perform such duties and services as shall from time to time be prescribed or delegated to him or her by the President or the Board, subject to the provisions of this Agreement.

8.6 Secretary. The Secretary, if one is designated by the Board, shall see that notice is given of all meetings of Members and special meetings of the Board and shall keep and attest true records of all proceedings at all meetings thereof. He or she shall have authority to attest any and all instruments or writings to which the same may be affixed. He or she shall keep and account for all books, documents, papers and records of the Company except those for which some other officer or agent is properly accountable. The Secretary shall generally perform all duties usually pertaining to the office of secretary of a corporation.

8.7 Treasurer. The Treasurer, if one is designated by the Board, shall have supervision of the books of account of the Company, their arrangement and classification and shall supervise the accounting and auditing practices of the Company. The Treasurer shall generally perform all duties usually pertaining to the office of treasurer of a corporation and such other duties as may be delegated to the Treasurer by the Board from time to time.

8.8 Additional Powers and Duties. In addition to the foregoing especially enumerated duties, services and powers, the several officers of the Company shall perform such other duties and services and exercise such further powers as may be provided by statute, the Certificate of Formation or this Agreement, or as the Board may from time to time determine or as may be assigned to them by any competent superior officer, subject to the provisions of this Agreement.

## ARTICLE IX
## TRANSFERS OF INTERESTS

9.1 Transfers of Units. No Member may sell, assign, transfer, mortgage, pledge, collaterally assign, convey, donate, contribute, grant an equity interest in or otherwise dispose of or alienate (hereinafter collectively called "Transfer") all or any part of its Units unless such Transfer is effected as follows:

(a) the Transfer is approved by prior written consent of the Board; or

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(b) the Transfer is made pursuant to Sections 9.2, 9.3, 9.4, 9.5, 9.6, 9.7 or 9.8 hereof;

(c) the Transfer is a Transfer by a Member of all (but not less than all) of its Units to one Person (but not more than one Person) who qualifies as an Affiliate of such Member, provided such Person agrees in writing to be bound by this Agreement as and to the same extent as such Member.

Any attempted Transfer in violation of the provisions of this Article IX shall be void *ab initio*. For the avoidance of doubt, and notwithstanding anything else in this Agreement to the contrary, any Transfer made pursuant to Section 9.1(a) or (c) shall not be subject to the rights of first refusal set forth in Sections 9.2 or 9.3.

9.2 Class A Member Right of First Refusal. In the event that a Class A Member desires to sell (a “*Offering Class A Member*”), and has received a bona fide offer in writing from any third party other than a Member to buy any portion of such Class A Member’s Units, such Class A Member shall first notify the Company and the Preferred Members in writing of the proposed sale (the “*Class A Transfer Notice*”). Each Class A Transfer Notice shall contain all material terms of the proposed Transfer including a copy of the written offer received, the name and address of the prospective purchaser (or transferee), the purchase price and terms of payment, the date and place of the proposed Transfer, and the number and description of the Units proposed to be Transferred by the Offering Class A Member (the “*Offered Class A Interest*”). If the purchase price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined, in good faith, by the Board, and the Company and/or any Preferred Member exercising the right of first refusal set forth in this Section 9.2 shall have the right, at its option, to purchase all, but not less than all, of the Offered Class A Interest for such cash equivalent value.

(a) The Company shall have an option for a period of forty-five (45) days from the date the Class A Transfer Notice is given (the “*Company Class A Option Period*”) to elect to purchase or designate a purchaser for all (but not less than all) of the Offered Class A Interest at the same price and subject to the same material terms and conditions as described in the Class A Transfer Notice. The Company may exercise such purchase option and, thereby, purchase all (but not less than all) of the Offered Class A Interest, by notifying the Offering Class A Member and the Preferred Members in writing, before expiration of the Company Class A Option Period. If the Company gives the Offering Class A Member notice that it desires to purchase all (but not less than all) of the Offered Class A Interest, then payment for the Offered Class A Interest shall be, at the election of the Company, by delivering the consideration set forth in the Class A Transfer Notice or by check or wire transfer, against delivery of the Offered Class A Interest to the Company at a place agreed upon between the parties and at the time of the scheduled closing therefor, which shall be no later than the later of (i) ninety (90) days after the date the Class A Transfer Notice is given or (ii) the date contemplated in the Class A Transfer Notice for the closing with the prospective third party transferee(s).

(b) To the extent the Company does not exercise its right of first refusal as to all of the Offered Class A Interest pursuant to Section 9.2(a), then the Preferred Members shall have an option for a period of forty five (45) days from the expiration of the Company Class A Option Period (the “*Preferred Member Option Period*”) to purchase all (but not less than all) of the Offered Class A Interest at the same price and subject to the same material terms and conditions as described in the Class A Transfer Notice. If more than one Preferred Member elects to purchase the Offered Class A Interest, they shall, absent an agreement to the contrary, acquire all (but not less than all) of the Offered Class A Interest pro rata based on their respective Percentage Interests. The Preferred Members may exercise such purchase option and, thereby, purchase all (but not less than all) of the Offered Class A Interest, by notifying the Offering Class A Member and the Company in writing, before expiration of the Preferred Member Option Period. Payment by the Preferred Members for the Offered Class A Interest shall be made by delivering the consideration

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set forth in the Class A Transfer Notice or by check or wire transfer at a place agreed upon between the parties and at the time of the scheduled closing therefor, which shall be no later than the later of (i) one hundred twenty (120) days after the date the Class A Transfer Notice is given or (ii) the date contemplated in the Class A Transfer Notice for the closing with the prospective third party transferee(s).

(c) The Company and the Preferred Members shall also have the right to collectively acquire the Offered Class A Interest in accordance with the procedure set forth above, provided they collectively acquire all (and not less than all) of the Offered Class A Interest. If the Company and the Preferred Members have not exercised their respective rights of first refusal within the time periods specified in Sections 9.2(a) and 9.2(b), respectively, then the Offering Class A Member shall be free to sell the Offered Class A Interest to such prospective purchaser on the same terms and conditions as outlined in the Class A Transfer Notice, and provided that, in the event the closing of such sale does not occur within one hundred twenty (120) days of the date of the Class A Transfer Notice, they shall once again be subject to the rights of first refusal provided herein.

9.3 Preferred Member Right of First Refusal. Other than with respect to Class D Units, in the event that a Preferred Member desires to sell (a "Offering Preferred Member"), and has received a bona fide offer in writing from any third party other than a Member to buy any portion of such Preferred Member's Units (other than, for the avoidance of doubt, such Preferred Member's Class D Units, which Units shall not be subject to this Section 9.3), such Preferred Member shall first notify the Company and the Class A Members in writing of the proposed sale (the "Preferred Transfer Notice"). Each Preferred Transfer Notice shall contain all material terms of the proposed Transfer including a copy of the written offer received, the name and address of the prospective purchaser (or transferee), the purchase price and terms of payment, the date and place of the proposed Transfer, and the number and description of the Units proposed to be Transferred by the Offering Preferred Member (the "Offered Preferred Interest"). If the purchase price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined, in good faith, by the Board, and the Company and/or any Class A Member exercising the right of first refusal set forth in this Section 9.3 shall have the right, at its option, to purchase all, but not less than all, of the Offered Preferred Interest for such cash equivalent value.

(a) The Company shall have an option for a period of forty-five (45) days from the date the Preferred Transfer Notice is given (the "Company Preferred Option Period") to elect to purchase or designate a purchaser for all (but not less than all) of the Offered Preferred Interest at the same price and subject to the same material terms and conditions as described in the Preferred Transfer Notice. The Company may exercise such purchase option and, thereby, purchase all (but not less than all) of the Offered Preferred Interest, by notifying the Offering Preferred Member and the Class A Members in writing, before expiration of the Company Preferred Option Period. If the Company gives the Offering Preferred Member notice that it desires to purchase all (but not less than all) of the Offered Preferred Interest, then payment for the Offered Preferred Interest shall be, at the election of the Company, by delivering the consideration set forth in the Preferred Transfer Notice or by check or wire transfer, against delivery of the Offered Preferred Interest to the Company at a place agreed upon between the parties and at the time of the scheduled closing therefor, which shall be no later than the later of (i) ninety (90) days after the date the Preferred Transfer Notice is given or (ii) the date contemplated in the Preferred Transfer Notice for the closing with the prospective third party transferee(s).

(b) To the extent the Company does not exercise its right of first refusal as to all of the Offered Preferred Interest pursuant to Section 9.3(a), then the Class A Members shall have an option for a period of forty five (45) days from the expiration of the Company Preferred Option Period (the "Class A Option Period") to purchase all (but not less than all) of the Offered Preferred Interest at the same price and subject to the same material terms and conditions as described in the Preferred Transfer Notice. If more than one Class A Member elects to purchase the Offered Preferred Interest, they shall, absent an agreement

20

to the contrary, acquire all (but not less than all) of the Offered Preferred Interest pro rata based on their respective Percentage Interests. The Class A Members may exercise such purchase option and, thereby, purchase all (but not less than all) of the Offered Preferred Interest, by notifying the Offering Preferred Member, the other Class A Members and the Company in writing, before expiration of the Class A Option Period. Payment by the Class A Members for the Offered Preferred Interest shall be made by delivering the consideration set forth in the Preferred Transfer Notice or by check or wire transfer at a place agreed upon between the parties and at the time of the scheduled closing therefor, which shall be no later than the later of (i) one hundred twenty (120) days after the date the Preferred Transfer Notice is given or (ii) the date contemplated in the Preferred Transfer Notice for the closing with the prospective third party transferee(s).

(c) The Company and the Class A Members shall also have the right to collectively acquire the Offered Preferred Interest in accordance with the procedure set forth above, provided they collectively acquire all (and not less than all) of the Offered Preferred Interest. If the Company and the Class A Members have not exercised their respective rights of first refusal within the time periods specified in Sections 9.3(a) and 9.3(b), respectively, then the Offering Preferred Member shall be free to sell the Offered Preferred Interest to such prospective purchaser on the same terms and conditions as outlined in the Preferred Transfer Notice, and provided that, in the event the closing of such sale does not occur within one hundred twenty (120) days of the date of the Preferred Transfer Notice, they shall once again be subject to the rights of first refusal provided herein.

### 9.4 Option on Occurrence of Operative Event.

(a) Upon the occurrence of an Operative Event with respect to any Preferred Member, the Company shall have the option to acquire, upon the terms set out in this Section 9.4, the Units then or theretofore held by such Preferred Member. Upon the occurrence of any such Operative Event, the Preferred Member subject to such Operative Event (and/or its representative(s), former spouse or the trustee in bankruptcy, if applicable) (such Preferred Member, its representative(s), former spouse and/or the trustee in bankruptcy being herein referred to as the "Subject Member"), shall submit a written offer to sell such Units to the Company by United States Certified Mail, Return Receipt Requested, which notice shall refer to the provisions of this Section 9.4. The Company shall have an exclusive option for a period of one hundred eighty (180) days after its receipt of such notice to elect to purchase all (but not less than all) of said Units. The aggregate purchase price for such Units shall be an amount equal to the Agreed Price as of the date of such Operative Event, less the expenses of appraisal, if any, and any disposition costs, which shall be paid by the Subject Member. The purchase price shall be paid over a period of five (5) years in equal annual installments, with the first such installment being on the date that is one (1) year after the closing date of such purchase and sale, and there shall be no penalty for prepayment; unpaid principal balances shall bear interest at a variable rate per annum equal to the prime rate of interest published from time to time in the Wall Street Journal, Southwest Edition, or its successors, in effect from time to time, plus 1%, limited to the maximum lawful rate. If the Company elects to exercise its option to purchase the Subject Member's Units, a closing shall occur at the offices of the Company on or before thirty (30) days after the date of exercise of such option, or at such other time and place as the parties may agree. At such closing, the Subject Member and/or the trustee in bankruptcy (if applicable) shall deliver such instruments of transfer as the Company may reasonably require so as to transfer the Subject Member's Units to the Company in exchange for the Company's agreement to pay the purchase price herein provided. The payment to be made to the Subject Member or its representative pursuant to this Section 9.4 shall be in complete liquidation and satisfaction of all the rights and interest of the Subject Member (and of all Persons claiming by, through, or under the Subject Member) in and in respect of the Company, including such Units, any rights in specific Company property, and any rights against the Company and (insofar as the affairs of the Company are concerned) against the Members.

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(b) In the event that the Company does not elect to exercise the option upon the occurrence of an Operative Event pursuant to this Section 9.4 within such one hundred eighty (180) day time period, then the Class A Members (the "Nonsubject Members") shall have the option to acquire, upon the terms set out in this Section 9.4, the Units of the Subject Member. Upon the expiration of such one hundred eighty (180) day time period as provided in Section 9.4(a) or upon the earlier receipt of written notice from the Company that it has elected not to exercise its option pursuant to Section 9.4(a), the Subject Member shall submit a written offer to sell such Units to the Nonsubject Members by United States Certified Mail, Return Receipt Requested, which notice shall refer to the provisions of this Section 9.4. The Nonsubject Members shall have an exclusive option for a period of one hundred eighty (180) days after receipt of such notice to elect to purchase all (but not less than all) of said Units. The aggregate purchase price for such Units shall be an amount equal to the Agreed Price as of the date of such Operative Event, less the expenses of appraisal, if any, and any disposition costs, which shall be paid by the Subject Member. The right to purchase pursuant to this paragraph will be pro rata, according to the Percentage Interests of all Nonsubject Members desiring to exercise the option. If one or more, but not all of the Nonsubject Members, elects to exercise the option, then, in order for any of such Nonsubject Members to exercise the option, those of the Nonsubject Members willing to exercise the option must also agree to purchase, on whatever proportionate basis is acceptable to such Nonsubject Members, the entire interest of the Subject Member, and not less than such entire interest. The purchase price shall be paid over a period of five (5) years in equal annual installments, with the first such installment being on the date that is one (1) year after the closing date of such purchase and sale, and there shall be no penalty for prepayment; unpaid principal balances shall bear interest at a variable rate per annum equal to the prime rate of interest published from time to time in the Wall Street Journal, Southwest Edition, or its successors, in effect from time to time, plus 1%, limited to the maximum lawful rate. If the Nonsubject Members elect to exercise their options to purchase the Subject Member's Units, a closing shall occur at the offices of the Company on or before thirty (30) days after the date of exercise of such option, or at such other time and place as the parties may agree. At such closing, the Subject Member and/or the trustee in bankruptcy (if applicable) shall deliver such instruments of transfer as the Nonsubject Members may reasonably require so as to transfer the Subject Member's Units to the Nonsubject Members in exchange for the Nonsubject Members' agreement to pay the purchase price herein provided. The payment to be made to the Subject Member or its representative pursuant to this Section 9.4 shall be in complete liquidation and satisfaction of all the rights and interest of the Subject Member (and of all Persons claiming by, through, or under the Subject Member) in and in respect of the Company, including such Units, any rights in specific Company property, and any rights against the Company and (insofar as the affairs of the Company are concerned) against the Members.

(c) Prior to or upon the occurrence of any Operative Event which shall cause, or threaten to cause, the involuntary disposition of any Preferred Member's Units (or any portion thereof or interest therein), the Preferred Member subject thereto (or his, her or its representative) shall send written notice thereof to the Company, by certified or registered mail, return receipt requested, disclosing in full the nature and details of such actual or threatened involuntary disposition, and the provisions of Section 9.4 shall apply; provided, that the option of the Company pursuant to Section 9.4 shall extend for sixty (60) days from the later of such involuntary disposition or the sending of such notice.

9.5 Drag-Along Rights. Subject to Section 2.3, if a Majority in Interest (the "Dragging Members"), desire to sell all, but not less than all, of their Units to any third party, or to merge the Company with or into any other entity, then the Dragging Members may, at their option, require all other Members (the "Drag-Along Members") to participate in such sale or such merger on the same terms and conditions. The Dragging Members shall provide written notice of the proposed sale or merger to the Drag-Along Members ("Drag-Along Notice"). The Drag-Along Notice shall identify the acquirer, the aggregate consideration for which a sale or merger is proposed to be made, the proposed closing date and location, and all other material terms and conditions of the sale. In the case of a proposed merger, the Company and the Members shall follow all the procedures applicable to the proposed merger, and all Members agree to

22

vote to approve such merger and no Member shall have or exercise any dissenters' rights. On the proposed closing date, each Member shall deliver such documents as are required to be executed in connection with such sale, against delivery to such Member of the consideration therefor. If, on the proposed closing date, the closing of the proposed sale does not occur for any reason (other than the default of the Drag-Along Members), then each of the Drag-Along Members shall retain their Units subject to all the terms, conditions, restrictions, and options set forth in this Agreement.

Notwithstanding the foregoing, a Drag-Along Member will not be required to comply with this subsection in connection with any proposed sale or merger transaction described above (the '*Proposed Sale*') unless:

(i) any representations and warranties to be made by such Drag-Along Member in connection with the Proposed Sale are limited to representations and warranties related to authority to sell, ownership and the ability to convey title to such Units;

(ii) the Drag-Along Member shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with the Proposed Sale, except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any Member of any identical representations, warranties and covenants provided by all Members; and

(iii) the liability for indemnification, if any, of such Drag-Along Member in the Proposed Sale and for the inaccuracy of any representations and warranties made by the Company or its Members in connection with such Proposed Sale, is several and not joint with any other Person (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any Member of any identical representations, warranties and covenants provided by all Members), and is pro rata in proportion to, and does not exceed, the amount of net consideration paid to such Drag-Along Member in connection with such Proposed Sale.

9.6 Tag-Along Rights. If at any time a Majority in Interest (the '*Tagging Members*') propose to sell or transfer all or any portion of their Units to any Person (other than pursuant to one or more Transfers permitted by Section 9.1(c) or one or more purchases by the Company pursuant to Section 9.7), the other Members (the '*Tag-Along Members*') shall have the right to sell, pursuant to the terms applicable to the proposed sale or transfer by the Tagging Members, all or a portion of the Tag-Along Members' Units as follows: (i) if the Tagging Members propose to sell or transfer all of their Units (whether in a single transaction or series of transactions), each Tag-Along Member shall have the right to sell or transfer all or any portion of such Tag-Along Member's Units, as determined by such Tag-Along Member; (ii) if the Tagging Members propose to sell or transfer less than all of their Units, each Tag-Along Member shall have the right to sell all or any portion of such Tag-Along Member's Units, as determined by such Tag-Along Member, up to but not in excess of the number of Units determined by multiplying: (x) the number of Units which the Tagging Members propose to sell or transfer and (y) the Percentage Interest of such Tag-Along Member. The Units to be sold or transferred by the Tagging Members shall be reduced by the number of Units that the Tag-Along Members duly elect to include in the proposed sale or transfer, unless the proposed purchaser agrees to increase the Units to be acquired to include the Units the Tag-Along Members elect to include in the proposed sale or transfer.

The Tagging Members shall deliver a written notice to the Company and the Tag-Along Members notifying them of the Tagging Members' desire to sell or transfer such interest to the proposed purchaser (the '*Notice of Sale or Transfer*'). The Notice of Sale or Transfer shall specify the name and address of the proposed purchaser, the number of Units which the Tagging Members propose to sell or transfer, the consideration to be paid for the Units which the Tagging Members propose to sell or transfer, and all other

23

material terms and conditions of the proposed transaction.

Within thirty (30) days of receipt of the Notice of Sale or Transfer, each Tag-Along Member may exercise its right to participate in the sale or transfer by providing the Tagging Members with written notice thereof (the “*Acceptance Notice*”). The Acceptance Notice shall indicate the maximum number of Units which the Tag-Along Member wishes to sell or transfer pursuant to the terms and conditions stated in the Notice of Sale or Transfer.

Within ten (10) days after the date on which the Acceptance Notice was due, the Tagging Members shall notify the Tag-Along Member that provided such Acceptance Notice of the number of Units held by the Tag-Along Member that will be included in the sale and the date on which the transaction will be closed.

In connection with a transfer of Units by the Tag-Along Members pursuant to this Section 9.6 (the “*Tag-Along Sale*”):

(i) any representations and warranties to be made by the Tag-Along Members in connection with the Tag-Along Sale will be limited to representations and warranties related to authority to sell, ownership and the ability to convey title to such Units;

(ii) the Tag-Along Members shall not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with the Tag-Along Sale, except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any Member of any identical representations, warranties and covenants provided by all Members; and

(iii) the liability for indemnification, if any, of the Tag-Along Members in the Tag-Along Sale and for the inaccuracy of any representations and warranties made by the Company or its Members in connection with such Tag-Along Sale, is several and not joint with any other Person (except to the extent that funds may be paid out of an escrow established to cover breach of representations, warranties and covenants of the Company as well as breach by any Member of any identical representations, warranties and covenants provided by all Members), and is pro rata in proportion to, and does not exceed, the amount of the net consideration paid to such Tag-Along Members in connection with such Tag-Along Sale.

Notwithstanding anything in this Section 9.6 to the contrary, this Section 9.6 shall only apply to Transfers with respect to which: (i) the Company and the Members have not exercised their respective rights in full under Section 9.2 and/or Section 9.3 to purchase all of the Offered Interest, and (ii) the Dragging Members have not exercised their rights under Section 9.5.

9.7 Purchase by Company. Subject to Section 2.3, with the prior written consent of the Board, the Company may acquire a portion or all of a Member’s Units, upon such terms, provisions, and conditions as may be agreed upon by the Company and such Member.

9.8 Disposition upon Termination of Marital Relationship. If the marital relationship of a Member is terminated by death or divorce and such Member does not succeed to his or her spouse’s community interest in the Member’s Units (or any part thereof), such Member shall have the first option to purchase all his or her spouse’s interest in such Units, and, upon such Member’s election to exercise such option, his or her spouse or the executor or administrator of such spouse’s estate shall be obligated to sell such interest in such Units. The price at which such interest shall be purchased shall be an amount equal to the purchase price as would be determined as provided in Section 9.4 hereof, as if an Operative Event had occurred (and for purposes of determining the “Agreed Price,” such Member’s spouse shall be deemed the

24

"Subject Member" and such Member shall be deemed the "Nonsubject Member"). At the election of the Nonsubject Member, the purchase price may be paid in cash or in the form of an unsecured promissory note which shall be paid over a period of five (5) years in equal annual installments, with the first such installment being on the date that is one (1) year after the closing date of such purchase and sale, and there shall be no penalty for prepayment; unpaid principal balances shall bear interest at a variable rate per annum equal to the prime rate of interest published from time to time in the Wall Street Journal, Southwest Edition, or its successors, in effect from time to time, plus 1%, limited to the maximum lawful rate. The Board shall resolve any dispute among the parties involved in the transaction regarding the documentation of such promissory note. The Nonsubject Member's first option must be exercised within ninety (90) days after such death or divorce. Should such Member fail to exercise such option within such ninety (90) day period, such failure shall constitute an Operative Event hereunder, and the provisions of Section 9.4 shall apply.

9.9 Status After Transfer. No Member shall have the right, without the consent of the Board, to constitute its assignee as a Member (whether or not such transfer is permitted under this Article IX). A Person that receives any Units but that is not admitted to the Company as a substituted or additional Member (each such Person, an "Unadmitted Assignee") shall only be entitled to share in the Net Income and Net Losses of the Company and will not be entitled to any other rights, including voting rights and rights listed within the TBOC, and the Units held by any Unadmitted Assignee shall not be counted for voting or quorum purposes, including for purposes of determining the Percentage Interests. Any Person receiving any Units (whether or not such Person becomes a Member) shall not be entitled to Transfer its Units or any rights therein without fulfilling the conditions of this Article IX to the same extent and in the same manner as any Member that desires to effect a Transfer of Units.

9.10 Transfer Documents. Notwithstanding any other provision hereof to the contrary, the Company shall not recognize, for any purpose, any purported Transfer of all or any portion of or interest in a Member's Units unless and until the provisions of this Article IX have been satisfied and there shall have been delivered to the Company a dated notification of such Transfer (i) executed, acknowledged, and sworn to by both the Member effecting such Transfer and the Person to whom such interest is Transferred, (ii) if the assignee wishes to become a substituted Member, the acceptance by such assignee of all of the terms and provisions of this Agreement (including a grant by such assignee to the Board and any successors thereto and each of its officers of the power of attorney set forth in Section 2.7), and (iii) containing a representation that such Transfer was made in accordance with all applicable laws and regulations. Each Transfer shall be effective as of the first day of the calendar month immediately following the month in which the Company actually receives the aforesaid notification of Transfer.

9.11 Transfer Costs. All costs incurred by the Company in connection with the Transfer of an interest in the Company shall be borne and paid by the Member making the Transfer within ten (10) days after the receipt by such Member (or such Member's estate or legal representative, as applicable) of the Company's invoice for the amount due.

9.12 Admission of a Substituted Member. The Board may admit an assignee of any Unit(s) as a substituted Member. Upon admission, a substituted Member shall be subject to all provisions of this Agreement as if originally a party hereto as a Member.

9.13 Additional Members. Subject to Sections 2.3, 3.4, and 3.7, additional Persons may be admitted to the Company as Members and Units may be created and issued to those Persons with the approval of the Board. The terms of admission or issuance must specify the Units to be issued to each such Person and the Capital Contributions applicable thereto and may provide for the creation of different classes or groups of Members and having different rights, powers and duties. The Board shall reflect the creation of any new class or group in an amendment to this Agreement indicating the different rights, powers, and duties, and such an amendment need be executed only by the Board. Any such admission shall be effective

25

only after the new Member and, if applicable, such Member's spouse, has executed and delivered to the Board a document including the new Member's notice address and agreement to be bound by this Agreement. The provisions of this Section 9.13 shall not apply to Transfers of Units.

9.14 Effect of Change in Members. Subject to all of the provisions of this Agreement, admission of any new Member or the withdrawal, death, incapacity, dissolution, liquidation, bankruptcy or substitution of any Member shall not interrupt the continuity of or cause the winding up or termination of the Company.

9.15 Withdrawal. A Member does not have the right or power to withdraw from the Company as a Member, unless such Member has received the written consent of the Board. Notwithstanding the foregoing, the transfer by a Member of all of his or her Units in accordance with the provisions of this Article IX shall be deemed a withdrawal from the Company by such Member.

9.16 Market Stand-off. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company's initial public offering, no Member shall sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for value or agree to engage in any of the foregoing transactions with respect to any equity securities of the Company without the prior written consent of the Company or its underwriters, for such period of time after the effective date of such registration statement as may be requested by the Company or such underwriters (not to exceed one hundred eighty (180) days). This Section 9.16 shall only remain in effect for the two (2) year period following the effective date of the Company's initial public offering. Each Member shall be subject to the market stand-off provisions of this Section 9.16 only if the officers, Managers and five percent (5%) equity holders of the Company are also subject to similar or more restrictive arrangements. In the event of any Unit dividend, split, recapitalization or other change affecting the Company's outstanding equity effected without receipt of consideration, then any new, substituted or additional securities distributed with respect to the Units shall be immediately subject to the provisions of this Section 9.16, to the same extent the Units are at such time covered by such provisions.

## ARTICLE X
### WINDING UP AND TERMINATION

10.1 Causes.

(a) In General. Each Member expressly waives any right which it might otherwise have to cause a winding up or termination of the Company except as set forth in this Section 10.1. Subject to Section 2.3, the Company shall go into a state of winding up and its affairs should be wound up only upon the occurrence of any of the following events:

- (i) the agreement of a Majority in Interest;
- (ii) the entry of a decree of judicial dissolution under Chapter 11 of the TBOC;

or

(iii) the occurrence of any other circumstance which, as determined by the Board in its sole discretion, makes it unlawful, impossible or impracticable to carry on the Company's business.

(b) Member. Except as expressly provided above, the Bankruptcy, death or dissolution and liquidation of a Member shall not result in the winding up or termination of the Company, but the

26

rights of such Member to share in revenues and costs and to receive distributions of Net Cash Flow shall, upon the happening of such an event, devolve upon such Member's legal representative or successors-in-interest, as the case may be, subject to this Agreement, and the Company shall continue as a limited liability company. Without prejudice to the obligation of the affected Member hereunder, the Member's legal representative or successors-in-interest shall be liable for all of the obligations of the Member. In no event shall the legal representative or successors-in-interest of a Member become a substituted Member except in accordance with the provisions of Article IX.

### 10.2 Liquidator.

(a) In General. If the Company is to be wound up or has liquidated or become bankrupt, a Member or a liquidator selected by the Board shall commence to wind up the affairs of the Company and to liquidate and sell its assets. The party actually conducting such liquidation in accordance with the foregoing sentence, whether a Manager, a Member or a liquidator, is herein referred to as the "Liquidator." The Liquidator (if other than a Manager or a Member) shall have sufficient business expertise and competence to conduct the Winding Up and termination of the Company and, in the course thereof, to cause the Company to perform any contracts which the Company has or thereafter enters into. The Liquidator shall have full right and unlimited discretion to determine the time, manner and terms of any sale or sales of Company property pursuant to such liquidation, having due regard for the activity and condition of the relevant market and general financial and economic conditions. The Liquidator (other than a Manager or a Member) appointed as provided herein shall be entitled to receive such reasonable compensation for its services as shall be agreed upon by the Liquidator and the Board.

(b) Successor Liquidator. The Liquidator may resign at any time by giving fifteen (15) days' prior written notice and, if the Liquidator is not a Manager, may be removed at any time, with or without cause, by the Board by a written notice of removal. Upon the death, dissolution, removal or resignation of the Liquidator, a successor and substitute Liquidator (who shall have and succeed to all the rights, powers and duties of the original Liquidator) will, within thirty (30) days thereafter, be appointed by the Board evidenced by written appointment and acceptance. The right to appoint a successor substitute Liquidator in the manner provided herein shall be recurring and continuing for so long as the functions and services of the Liquidator are authorized to continue under the provisions thereof, and every reference herein to the Liquidator will be deemed to refer also to any such successor or substitute Liquidator appointed in the manner herein provided.

(c) Powers. The Liquidator shall have and may exercise, without further authorization or consent of any of the parties hereto or their legal representatives or successors-in-interest, all of the powers conferred upon the Board under the terms of this Agreement to the extent necessary or desirable in the good faith judgment of the Liquidator to perform its duties and functions. The Liquidator (if not a Manager or a Member) shall, while acting in such capacity on behalf of the Company, be entitled to the indemnification rights set forth in Section 11.3.

### 10.3 Liquidation.

(a) Procedures. In the course of the Winding Up and terminating the business and affairs of the Company, its assets (other than cash) shall be sold, its liabilities and obligations to creditors (including any loan made by Members) and all expenses incurred in its liquidation shall be paid, and all resulting revenues and costs shall be credited or charged to the Capital Accounts of the Members in accordance with Article IV. All Company property shall be sold upon liquidation of the Company and no Company property shall be distributed in kind to the Members except by agreement of the Majority in Interest.

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(b) Distribution. The net proceeds from such sales (after deducting all selling costs and expenses in connection therewith), together with (at the expiration of the period referred to in Section 10.4) the balance in the reserve account referred to in Section 10.4, shall be distributed as set forth below:

(i) first, to the creditors of the Company, including creditors who are Members, in the order of priority provided by law, in satisfaction of all liabilities and obligations of the Company (of any nature whatsoever, including fixed or contingent, matured or unmatured, legal or equitable, secured or unsecured), whether by payment or the making of reasonable provision for payment thereof; and

(ii) thereafter, to the Members in accordance with Section 4.3(a)(ii).

(c) Negative Capital Accounts. No Member shall be required to restore any deficit balance existing on its Capital Account at any time (including upon the liquidation and termination of the Company).

(d) Miscellaneous. The Liquidator shall be instructed to use all reasonable efforts to effect complete liquidation of the Company within one year after the date the event requiring the winding up of the Company occurs. Each holder of any Units shall look solely to the assets of the Company for all distributions and shall have no recourse therefor (upon termination or otherwise) against the Company, the Board or the Liquidator, except for any gross negligence or willful misconduct. Upon the completion of the liquidation of the Company and the distribution of all Company funds, the Board (or a Member or the Liquidator, as the case may be) shall have the authority to execute and record all documents required to effectuate the termination of the Company.

10.4 Creation of Reserves. After making payment or provision for payment of all debts and liabilities of the Company and all expenses of liquidation, the Liquidator may set up, for a period not to exceed one (1) year after the date of termination, such cash reserves as the Liquidator may deem reasonably necessary for any contingent or unforeseen liabilities or obligations of the Company; provided, however, that any unused portion of the reserves shall be distributed to the Members within four (4) years of the date on which such reserves were created.

10.5 Final Audit. Within a reasonable time following the completion of the liquidation, the Liquidator shall supply to each of the Members a statement, certified by the Company's Independent Accountants if a Member shall so request, which shall set forth the assets and the liabilities of the Company as of the date of complete liquidation, each Member's pro rata portion of distributions pursuant to Section 10.3, and the amount retained as reserves by the Liquidator pursuant to Section 10.4.

## ARTICLE XI
### STANDARD OF CARE; EXCULPATION; INDEMNIFICATION

11.1 Standard of Care. In the performance of their respective duties under this Agreement, and with respect to any action taken by the Board or the Members (including the Administrative Member in its capacity as such), or one or more officers designated by the Board, on behalf of or with respect to the Company, the Board and the Members (including the Administrative Member in its capacity as such) shall use reasonable, good faith efforts to conduct the business of the Company in good and businesslike manner and in accordance with good business practice.

11.2 Exculpation. Neither any Manager, any Member, any Related Party of a Manager or Member nor any Liquidator (each a "Covered Person") shall be liable to the Company or any Member

28

under any theory of law, including tort, contract or otherwise (INCLUDING A COVERED PERSON'S OWN NEGLIGENCE) for any loss, damage or claim incurred by reason of any act or omission by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement, including any such loss, damage or claim attributable to errors in judgment, negligence or other fault of such Covered Person, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of gross negligence or willful misconduct of such Covered Person. A Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such other Person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses or any other facts pertinent to the existence and amount of assets from which distributions to Members might properly be paid.

11.3 Indemnification. To the fullest extent permitted by applicable law, each Covered Person shall be entitled to indemnification from the Company for any loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement, except that no Covered Person shall be entitled to be indemnified in respect to any loss, damage or claim incurred by reason of gross negligence or willful misconduct of such Covered Person; provided, however, that any indemnity under this Article XI shall be provided out of and to the extent of Company assets only, and no Covered Person shall have any personal liability on account thereof. THE FOREGOING INDEMNITY IS INTENDED TO INDEMNIFY EACH COVERED PERSON FOR HIS OWN ACTS OF NEGLIGENCE AND SHALL APPLY IRRESPECTIVE OF ANY CLAIM OF CONCURRENT OR CONTRIBUTORY NEGLIGENCE ON THE PART OF SUCH COVERED PERSON. The indemnification provided by this Section 11.3 shall not be deemed exclusive of any other rights to indemnification to which those seeking indemnification may be entitled under any agreement or otherwise.

11.4 Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding for which indemnity is sought under this Agreement shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized under this Article XI.

11.5 Insurance. The Company will maintain its current Directors and Officers liability insurance policy, on behalf of the Managers and such other persons as the Board shall determine, in an amount and on terms and conditions satisfactory to the Board until such time as the Board determines that such insurance should be discontinued. If the Company or any of its successors or assignees consolidates with or merges into any other Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the successors and assignees of the Company assume the obligations of the Company with respect to indemnification of members of the Board as in effect immediately before such transaction, whether such obligations are contained in this Agreement, the Certificate of Formation, or elsewhere, as the case may be.

## ARTICLE XII
## MISCELLANEOUS

12.1 Notices and Approvals. All notices or requests or approvals provided for or permitted to be given pursuant to this Agreement must be in writing and shall be deemed effectively given upon the

29

earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. Each Member consents to the delivery of any notice at the electronic mail address provided by the Member to the Company, as updated from time to time by notice to the Company, or as on the books of the Company. To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason, the foregoing consent shall be deemed to have been revoked until a new or corrected electronic mail address has been provided, and such attempted electronic notice shall be ineffective and deemed to not have been given. Each Member agrees to promptly notify the Company of any change in such Member's electronic mail address, and that failure to do so shall not affect the foregoing.

12.2 Choice of Law. THIS AGREEMENT IS ENTERED INTO AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE APPLICABLE LAWS OF THE STATE OF TEXAS. This Agreement shall be subject to all valid applicable laws and official orders, rules and regulations, and, in the event this Agreement or any portion thereof is, or the operations contemplated hereby are, found to be inconsistent with or contrary to any such laws or official orders, rules and regulations, the latter shall be deemed to control, and this Agreement shall be regarded as modified accordingly, and, as so modified, shall continue in full force and effect; provided, however, that nothing herein contained shall be construed as a waiver of any right to question or contest any such law, order, rule or regulation in any forum having jurisdiction in the premises.

12.3 Successors and Assigns. This Agreement shall be binding upon the Members, their heirs, executors, administrators, legal representatives, successors and permitted assigns.

12.4 Amendments. This Agreement, and any term hereof, may be amended or waived from time to time by agreement of a Majority in Interest; provided, however, that (a) no variations, modifications, amendments waivers or changes herein or hereof shall be binding upon any party or parties hereto unless reduced to writing and executed by the requisite Members approving such amendment; (b) nothing in this Section 12.4 shall limit the right of the Board to amend this Agreement in accordance with the terms of this Agreement, including Sections 2.7, 3.3 or 9.13; and (c) in the event any amendment would materially and adversely affect the rights or obligations of any class of Units or any Member in a different manner than all other classes of Units or Members (as applicable), such amendment shall also require the approval of a Majority in Interest of the class that would be materially and adversely affected thereby or approval of the applicable Member. Notwithstanding anything in this Agreement to the contrary, (i) any provision of this Agreement that establishes a percentage of a class of Units required to take or approve any action may not be amended in a way that would have the effect of reducing such required percentage unless such amendment is approved by Members of such class holding not less than the percentage of the Units of such class sought to be reduced; and (ii) nothing in this Section 12.4 shall be deemed to limit the right of the Company to create additional classes of Units or to create and issue additional Units, subject to the receipt of any approvals required pursuant to Sections 2.3, 3.4, and 3.7.

12.5 Entire Agreement. This Agreement embodies the entire agreement and understanding among the Members relating to the subject matter hereof, and shall supersede all their prior agreements and understandings relating to such subject matter, including the Prior Agreement.

12.6 Further Assurances. Each Member agrees to execute, with acknowledgment or affidavit if required, any and all documents and writings which may be necessary or expedient in connection with the formation of the Company and the achievement of its purposes, specifically including all such agreements, certificates, tax statements, tax returns and other documents as may be required of the Company or its

30

Members by the laws of the United States of America, the State of Texas or any political subdivision or agency thereof.

12.7 Company Property. The Members agree that the property and other assets of the Company are and shall be owned by the Company as an entity. Each Member, accordingly, does not own an undivided interest in such assets and properties.

12.8 Construction. Whenever required by the context, as used in this Agreement, the singular number shall include the plural and the neuter shall include the masculine or feminine gender, and vice versa. In this Agreement, unless a clear contrary intention appears, the term “including” shall be construed to be expansive rather than limiting in nature and to mean “including, without limitation.” The Article and Section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent or for any purpose, to limit or define the text of any Article or Section.

12.9 Counterparts. This Agreement may be executed in counterparts, each of which shall be an original but all of which shall constitute but one document.

12.10 Disputes. The parties agree that if a controversy or claim between them arises and results in litigation, the courts of Travis County, Texas or the courts of the United States of America located in Travis County, Texas shall have exclusive jurisdiction to hear and decide such matter, and such parties hereby submit to the jurisdiction of such courts.

12.11 Specific Enforcement. The parties recognize that the parties’ respective rights under this Agreement are unique, and, accordingly, the parties to this Agreement shall, in addition to such other remedies as may be available to them hereunder have the right to enforce their rights hereunder by actions for specific performance and injunctive and other equitable relief to the extent permitted by law.

12.12 Representation. Each of the Members represents, acknowledges and agrees that it has been represented by its own separate counsel with respect to financial, accounting, tax, legal and such other matters as it has deemed appropriate in connection with its investment in the Company. No Member has relied on any representations or advice from the Company, any other Member, any Affiliate of any other Member, or any employee, officer, director, agent or representative of any of the foregoing with respect to financial, account, tax, legal or other similar matters in connection with its investment in the Company.

12.13 Spouses’ Community Interest Subject to this Agreement. The respective spouses of the individual Members join in the execution of this Agreement to evidence that the respective community interests of each, if any, in and to any of the Members’ Units is subject to the terms and provisions of this Agreement in all respects as if such spouses were a Member hereunder with respect to such community interest. Any option to purchase a Member’s Units pursuant to this Agreement shall include any interest therein owned by the spouse of such Member.

12.14 Limitation of Liability. Pursuant to Article 581-1 *et seq.* of the Texas Revised Civil Statutes (the “*Texas Securities Act*”), the liability under the Texas Securities Act of a lawyer, accountant, consultant, the firm of any of the foregoing, and any other person engaged to provide services relating to an offering of securities of the Company (“*Service Providers*”) is limited to a maximum of three times the fee paid by the Company or seller of the Company’s securities, unless the trier of fact finds that such Service Provider engaged in intentional wrongdoing in providing the services. By executing this Agreement, each Member hereby acknowledges the disclosure contained in this paragraph.

12.15 Right to Receive Offer of Participation. In the event either of the Class A Members (directly or through an Affiliate) decides to raise funds through outside equity investors to acquire or operate

31

after the date hereof one or more additional “Ranch Hand” restaurants, food trucks or other food service businesses to be owned by one or more future limited liability companies; one or more additional spirit distilleries or manufacture or any additional “Ranch Hand” branded business model that uses the name “Ranch Hand” in the beverage or restaurant industry, the Class A Members agree to provide each of the Major Investors with an offer to participate in such investment on whatever terms and conditions that the Class A Members may seek outside equity funding, which may or may not be the same or similar to the rights and preferences of the Preferred Members set forth in this Agreement, and the Major Investors shall have fourteen (14) calendar days to notify the Company of their desire to participate in such investment. To the extent the Major Investors desire to acquire the entire amount sought through outside equity investors in such future limited liability company, they shall each be allowed to purchase a pro rata amount of such offered equity investment based on such Major Investors’ Percentage Interests (in each case, subject to reduction for similar rights held by investors in other limited liability companies founded by the Class A Members), or in such different amounts as they may agree among themselves. Once a Major Investor has elected not to participate in a subsequent outside equity funding, such Major Investor shall have no further rights to receive an offer of participation in any subsequent outside equity funding by the Class A Members of any future limited liability companies formed to acquire, own and operate additional “Ranch Hand” restaurants, food trucks or other food service businesses.

12.16 No Ownership or Interest in Certain Other Entities Owning an Alcohol Permit. Each Preferred Member acknowledges and understands that a subsidiary of the Company possesses, or will apply for, and maintain a permit for the manufacture and sale of alcohol. Each Preferred Member further acknowledges and understands that Texas law prohibits a Preferred Member from being an owner in the Company if such Preferred Member owns, directly or indirectly, an ownership interest in the business (including equity, equity options, convertible debt or similar interests) of (i) a retailer of alcohol products, (ii) a distributor of alcohol products (including a vineyard), or (iii) a retail package liquor store (off-premise liquor store) (each, a “*Prohibited Ownership*”). Each Preferred Member represents and warrants that it does not, directly or indirectly, own any interest in a Prohibited Ownership, and covenants and agrees with the Company that it will not, directly or indirectly, during the term of this Agreement, acquire, directly or indirectly, an interest in a Prohibited Ownership. Each Preferred Member agrees to promptly respond to any Company requests for information or data concerning Texas Alcoholic Beverage Commission licenses or for other regulatory agencies in connection with the Company’s operations and sale of alcoholic beverages.

[SIGNATURES ON FOLLOWING PAGES]

32

DocuSign Envelope ID: 71ACF800-680C-47C8-B93F-1700948CF5C3

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

# **MANAGERS:**

DocuSigned by:

Brian Murphy

Brian R. Murphy

Quentin Cantu

Will Rives

Brian Isern

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 53975536-FE98-4F67-A429-794D4AA1FE3F

**IN WITNESS WHEREOF**, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

**MANAGERS:**

Brian R. Murphy

DocuSigned by:  
B041CA36749-0499

Quentin Cantu

Will Rives

Brian Isern

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT
OF
RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: C6EE17E8-F097-42CF-A174-88CFBE1C056C

**IN WITNESS WHEREOF**, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

**MANAGERS:**

Brian R. Murphy

Quentin Cantu

DocuSigned by:  
C4C9C0F2F04F410

Will Rives

Brian Isern

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT
OF
RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 540B9FE7-FBB9-4054-9149-8F327C799F0E

**IN WITNESS WHEREOF**, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

**MANAGERS:**

Brian R. Murphy

Quentin Cantu

Will Rives

DocuSigned by:

9A92C67B2133456

Brian Isern

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT
OF
RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 71ACF800-680C-47C8-B93F-1700948CF5C3

**IN WITNESS WHEREOF**, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

**CLASS A MEMBER:**

DocuSigned by:

Brian R. Murphy

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT
OF
RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 53975536-FE98-4F67-A429-794D4AA1FE3F

**IN WITNESS WHEREOF**, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

**CLASS A MEMBER:**

DocuSigned by:  
\_\_\_\_\_  
Quentin Cantu 06419A3674F0499

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT  
OF  
RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 1CCECA8C-F083-40B6-8E91-09A535B959DF

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Anne Randall
Name: Anne Randall

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: E169B56B-92AA-429B-9946-31DB12E306CC

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Stage One Capital

By:

Name:

Title:

Rick Wittenbraker

GP

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: E48F2448-67E3-444B-8FFA-BD163AE0CC2B

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Dylan Barbour

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 8C74132A-A9E7-41FF-A7D7-CD1193E8BAD1

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Laura Craddick

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: EFF6AC4F-E731-46FF-92B9-A64222340750

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

KG Partners, LLC

DocuSigned by:
By: _________________________
Name: Ryan Gravelle
Title: Member

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: D465D257-F3D5-4D87-8DB1-E1BC50FBDCD5

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Kyle Hency
Name: KYLE HENCY

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 5F2DCB40-439E-4AA8-A3A1-523CC7772371

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Greg McWhir

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 466FC6B7-3296-43BA-8B7B-F9B8808CC817

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Vintra Holdings, LLC

DocuSigned by:

Vincent Sica

By: _________________________

Name: Vincent Sica

Title: Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: C3F1569C-B656-4EF4-8504-3C834344CB02

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: [Signature]
Name: William Castillo

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: A919D07B-F2F9-477D-8616-AA86A5A1879C

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

HP Ryder Partnership

DocuSigned by:
By: Case McCoy
Name: Case McCoy
Title: Managing Partner

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 166C2021-DC57-42B4-9DB5-9BDECEBE7739

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Marshall Newhouse
Name:

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 7067D333-3A00-48E5-99AE-B7ED6CAAD516

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

RRSC Investment Group, LLC

By:

Name:

Title:

DocuSigned by:

Jeff Burke

E. 2006, 1973, 1984, 1985

Jeff Burke

Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 540B9FE7-FBB9-4054-9149-8F327C799F0E

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

BORA Fund II LP

By: BORA Venture Partners LLC, general partner

By: BRIAN ISERN

Name: Brian Isern

Title: President

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 540B9FE7-FBB9-4054-9149-8F327C799F0E

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

BORA Fund I LP

By: BORA Venture Partners LLC, general partner

BRIAN ISERN

By: _________________________

Name: Brian Isern

Title: President

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 64038577-B174-42B1-AD68-B932BACC95C8

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Brad Rives

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 539E0072-5595-4FB3-96D1-CDD99F85ED02

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

BTK LLC

DocuSigned by:
By: Erin Koen
Name: Erin Koen
Title: Managing Member

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 6A34FF92-6856-4BAC-A2A6-1BE41A0AE367

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

CAVU Holdings, Ltd

By:

Name:

Title:

Tim Berry

DocuSigned by:

Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 158BF0E4-415C-4D9D-B0D4-0F61E3F9C21A

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Charles Geren

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: E66F182B-6658-4FC3-B216-7C557D3B86D5

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Craig Allen
Name: Craig Allen

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 225CD43E-56C6-49D6-ADD9-C7E448762E97

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Dave & Odette Annable

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 1C5A2F05-0D22-4EFC-A63C-4BE144928D5C

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: David Hughes
Name: David Hughes

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 05ECA32F-1A9F-4556-9AE8-6E3752348598

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Daniel Foreman

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 4A425305-5FD4-4841-A8FA-3C27C1546FBA

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: 
Name: Freddy Ford

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: CCFB409A-A2B1-43D9-959E-7097B058BD0E

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Frederick Lyon
Name: Frederick and Rebecca Lyon

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 90AE9E3B-3EB7-45F5-9CE3-ED10AE2A9050

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: James Greenway
Name: James Greenway

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 0F03EA62-C8C5-4703-B6E8-DF5F97C169D7

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Guajillo RE Investments, LLC

DocuSigned by:

By: Ty Thaggard

Name: Ty Thaggard

Title: Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 87DE7B2E-C307-4505-B4A0-AF3690339126

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Hannah Godwin
Name: Hannah Godwin

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: CB0914FB-D652-4C57-B2DE-EDA901AC4555

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

**PREFERRED MEMBER (INDIVIDUAL):**

By: _________________________
Name: _________________________

By: _________________________
Name: _________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

**PREFERRED MEMBER (ENTITY):**

NAME OF PREFERRED MEMBER:

JH Cahoots LLC

DocuSigned by:
By: Kyle Harder
Name: Kyle Harder
Title: Member

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT
OF
RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 6B9F46F1-28E8-45FD-94E0-12DC38C33A8D

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Katie Kornel

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 4CE4E15C-6987-4E17-B20D-599CBEAB861F

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Marshall Williams
Name: Marshall Williams

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 07AF8DD8-290C-4464-B809-4512CCF44DCA

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
Matt Gorman
By: 2029-8513C3D7454
Name: Matt Gorman

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 509D002A-853D-4D36-9501-416E419766C5

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
Mike Idell
By: ________________________
Name: Michael Idell

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 28A09BCF-CF7E-419A-AA72-0DA1F3CC078F

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Mindy Ellmer
Name: Mindy Ellmer

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 8A249FB7-126F-4457-BA42-DC76E851D44E

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Mollylea LLC

DocuSigned by:

By: Stephen Emery

Name: J. Stephen Emery Jr.

Title: Managing Member

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: C6EE17E8-F097-42CF-A174-88CFBE1C056C

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Nelson County Distilling Company

DocuSigned by:
By: Allan Latts
Name: Allan Latts
Title: COO

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 1E461449-A06D-4B9F-85AD-4A5980F815EE

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: John Nugent
Name: John Nugent

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 564436AC-1400-44AF-BA28-D33ADFD04B58

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Dave & Odette Annable
Name:

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 56CFCDC6-D451-4112-9E46-040CF70C9EE2

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Open Road Capital

By: _________________________ DocuSigned by:
Elliott Hill

Name: _________________________ ELLIOTT HILL

Title: _________________________ Manager- Open Road Capital

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 7460E8E3-AE4D-47D5-9A6C-008679F6DF8A

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Ranch Rider Investments LLC

By:

DocuSigned by:

Name:

Aaron Ross

Title:

Aaron Ross

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 1F093673-5143-4FEE-92FD-B32EE1F6D7BB

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

RH RR Ventures LLC

By:

Name:

Title:

DocuSigned by:

Carlos Carreras

Carlos Carreras

Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: DAF7AB32-DF6D-4283-B336-B3775D4D2108

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

RR ARTX, LLC

By:

Name: Bradley McBride

Title: Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 0A4D7495-22F4-4571-81BE-8E3E753DE9D9

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: Elliott Schwartz
Name: Elliott Schwartz

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: AB150870-E317-454F-ACF8-251B8042C00E

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Paul Egan
Name: Shakey Graves (Alejandro Rose-Garcia)

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 23991155-4AA5-4758-B4F8-51A7F7A395DA

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Swami's Trust

DocuSigned by:
By: Scott Reeves
Name: Scott Reeves
Title: Mr

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: B4603847-14FC-41CA-B587-D14B37916641

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

TIR Land Holdings, LLC

By:

Name:

Title:

DocuSigned by:

Stephen Clarke

Stephen Clarke

Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 67EEB8D5-5F38-4D13-B289-29B8D7E60F25

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Johnathan Tate
Name:

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: A042D36E-2429-408B-97E2-DF97CD4B31F7

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

David Tierney

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: A305AA10-304B-4761-B7AE-D74BBEB748C7

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Time 4 More LLC

DocuSigned by:

By: Hadi Fakhoury

Name: Hadi Fakhoury

Title: Hadi Fakhoury Mgr

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: EFABD567-F03F-45B6-83C0-8ACE361EF438

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Zach Martin
Name: Zach Martin & Becca Tobin

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: F61BB76A-2BEB-42E0-9713-08315227FCF1

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Dustin Donnell
Name: Dustin Donnell

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 079C6BC6-8926-40BD-92B5-DF6AE9D77AFB

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Hegi Family Holdings, Ltd.

DocuSigned by:

Brian Hegi

By:

6598476958C7A63

Name:

Brian F. Hegi

Title:

General Partner

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 7A5B6FB9-8CB4-49C5-9FDC-B72148B1301C

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Matt Altenau
Name: Matt Altenau

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: DD9B352B-94CF-4AD2-A670-4E4482CA4085

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Matt Pittman
Name: Matt Pittman

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 72F48734-3475-43A4-9D48-C3538EFCA310

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

The David and Elizabeth Smith Revocable Trust

DocuSigned by:
By: David Smith
Name: David Smith
Title: Trustee

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: 8F6DE36D-50C5-4C03-B0A6-0F6024AED4E7

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

Bharath Potti

By: ________________________
Name: ________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ________________________
Name: ________________________
Title: ________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: F0893E62-0F38-4F43-9DD7-3715F09B2020

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

DocuSigned by:
By: Joseph Pounder
Name: Joseph Pounder

By: ____
Name: ____, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

By: ____
Name: ____
Title: ____

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

DocuSign Envelope ID: BED12C3E-BF61-4C0E-8DBC-6FC5E94B0195

IN WITNESS WHEREOF, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

## PREFERRED MEMBER (INDIVIDUAL):

By: _________________________

Name: _________________________

By: _________________________

Name: _________________________, Spouse of the Member

Signing Above (pursuant to Section 12.13 of the

Agreement)

## PREFERRED MEMBER (ENTITY):

NAME OF PREFERRED MEMBER:

Loggia Group LLC

By:

Name:

Title:

DocuSigned by:

Joseph Bauer

Joseph Bauer

Manager

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT

OF

RANCH HAND SUPPLY CO. LLC

**IN WITNESS WHEREOF**, the undersigned Members and Managers have caused this Agreement to be duly adopted by the Company effective as of the Effective Date.

**PREFERRED MEMBER (INDIVIDUAL):**

By: _________________________
Name: _________________________

By: _________________________
Name: _________________________, Spouse of the Member
Signing Above (pursuant to Section 12.13 of the
Agreement)

**PREFERRED MEMBER (ENTITY):**

NAME OF PREFERRED MEMBER:

_________________________

By: _________________________
Name: _________________________
Title: _________________________

SIGNATURE PAGE TO AMENDED AND RESTATED COMPANY AGREEMENT
OF
RANCH HAND SUPPLY CO. LLC

# EXHIBIT A

# DEFINITIONS

In addition to the terms defined elsewhere in this Agreement, the following terms shall have the following meanings:

"Adjusted Capital Account" means, with respect to any Member, such Member's Capital Account as of the end of the relevant year, after giving effect to the following adjustments: (i) credit to such Capital Account any amounts which the Member is obligated to contribute to the Company, (ii) credit to such Capital Account the Member's share of Member Minimum Gain and the Member's share of Minimum Gain; and (iii) debit to such Capital Account the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6). The foregoing definition of Adjusted Capital Account is intended to comply with the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

"Administrative Member" means Brian R. Murphy, or such other Person as may be appointed by the Board from time to time to perform certain administrative functions on behalf of the Company.

"Affiliate" means, when used with respect to a specified Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with the specified Person, provided that the Company shall not be deemed to be an Affiliate of any Member. For purposes of this definition "control," when used with respect to any specified Person, means the power to direct the management and policies of the Person, directly or indirectly, whether through the ownership of voting securities or other equity interests, by contract, by family relationship or otherwise; and the terms "controlling" and "controlled" have the meanings correlative to the foregoing.

"Agreed Price" means, with respect to the purchase of the Units of any Preferred Member pursuant to Article IX upon the occurrence of any Operative Event, an amount equal to the fair market value of such Units as determined by mutual agreement of the Subject Member and the Company or the Nonsubject Members, as the case may be; provided, however, that if the Subject Member and the Company or the Nonsubject Members, as the case may be, have not so agreed on such fair market value on or before the 30th day following any exercise by the Company or the Nonsubject Members of their option to purchase the Subject Member's Units pursuant to Section 9.4, either the Subject Member or the Company or the Nonsubject Members, as the case may be, may, by notice to the other, require the determination of fair market value to be made by one or more independent appraisers as described below. The Subject Member shall select one appraiser, and the Company or the Nonsubject Members, as the case may be, shall select another appraiser. The selected appraiser(s) shall proceed promptly to determine the fair market value (which shall take into account any applicable discounts for minority interest and lack of marketability) of such Units. The determination of the fair market value of such Units by the appraiser(s) selected as hereinabove provided shall be final and binding on all parties; and if two appraisers are unable to agree on the fair market value of such Units, said two appraisers shall select a third appraiser whose determination as to fair market value shall be final and binding on all parties. Each appraiser shall deliver a written report of his or her appraisal to the Company or the Nonsubject Members, as the case may be, and the Subject Member.

"Agreement" means this instrument, as amended, modified or restated from time to time pursuant to Section 12.4 hereof. All references to Sections are herein made, unless noted otherwise, to Sections of this Agreement.

“*Bankrupt*” or “*Bankruptcy*” means, in respect of a Member, the occurrence of any of the following with respect to such Member:

(a) commencement by such Member of any proceeding seeking relief under any bankruptcy or insolvency law, including a reorganization, arrangement, readjustment of debt, receivership, trusteeship or liquidation (hereinafter referred to as “*Bankruptcy Proceedings*”);

(b) acquiescence by such Member to any Bankruptcy Proceeding commenced or brought against such Member by any other party or parties, it being deemed that such Member has acquiesced to any such Bankruptcy Proceeding that is not dismissed within sixty (60) days after the commencement thereof or if such Member, by action, inaction or answer, approves of, consents to, admits the material allegations of any petition filed in connection therewith or defaults in answering any such petition;

(c) final adjudication of such Member to be bankrupt or insolvent;

(d) expiration of sixty (60) days without termination, dismissal or discharge of the appointment of a trustee, receiver or liquidator, with or without such Member’s consent, for all or any substantial part of the property of such Member, whether or not including such Member’s Units; or

(e) execution by such Member of an assignment for the benefit of creditors.

“*BORA*” means (i) BORA Fund I and (ii) BORA Fund II. For purposes of this Agreement, BORA Fund I and BORA Fund II shall be deemed to be Affiliates of each other.

“*BORA Fund I*” means BORA Fund I LP, a Delaware limited partnership, and any successors thereto.

“*BORA Fund II*” means BORA Fund II LP, a Delaware limited partnership, and any successors thereto.

“*Capital Contributions*” of a Member means the aggregate amount of cash and the net fair market value (as determined in good faith by the Board) of property contributed to the Company pursuant to Article III and as set forth opposite such Member’s name on the Unit Register, as the same may be amended from time to time in accordance with the terms of this Agreement.

“*Certificate of Formation*” means the Certificate of Formation of the Company dated July 10, 2019, as the same may be amended and/or restated from time to time.

“*Class A Member*” means Brian R. Murphy and Quentin Cantu, or any other Member holding Class A Units; provided, however, that if any Preferred Member owns Class A Units, such Preferred Member will be considered a Class A Member only with regard to the Class A Units owned by such Preferred Member, notwithstanding anything else in this Agreement to the contrary.

Unit*” means a fractional share of the issued and outstanding membership interests of the Company held by a Member holding Class A Units as set forth on the Unit Register and the rights and obligations associated with such membership interests at the relevant time, including the allocation, distribution, consent, approval and management rights granted to the holders of Class A Units and any and all other benefits to which the holders of Class A Units may be entitled as provided in this Agreement, together with the obligations of such holders to comply with all the terms and provisions of this Agreement.

"Class B Unit" means a fractional share of the issued and outstanding membership interests of the Company held by a Member holding Class B Units as set forth on the Unit Register and the rights and obligations associated with such membership interests at the relevant time, including the allocation, distribution, consent, approval and management rights granted to the holders of Class B Units and any and all other benefits to which the holders of Class B Units may be entitled as provided in this Agreement, together with the obligations of such holders to comply with all the terms and provisions of this Agreement.

"Class C Unit" means a fractional share of the issued and outstanding membership interests of the Company held by a Member holding Class C Units as set forth on the Unit Register and the rights and obligations associated with such membership interests at the relevant time, including the allocation, distribution, consent, approval and management rights granted to the holders of Class C Units and any and all other benefits to which the holders of Class C Units may be entitled as provided in this Agreement, together with the obligations of such holders to comply with all the terms and provisions of this Agreement.

"Class D Unit" means a fractional share of the issued and outstanding membership interests of the Company held by a Member holding Class D Units as set forth on the Unit Register and the rights and obligations associated with such membership interests at the relevant time, including the allocation, distribution, consent, approval and management rights granted to the holders of Class D Units and any and all other benefits to which the holders of Class D Units may be entitled as provided in this Agreement, together with the obligations of such holders to comply with all the terms and provisions of this Agreement.

"Class RR Unit" means a fractional share of the issued and outstanding membership interests of the Company held by a Member holding Class RR Units, as set forth on the Unit Register and the rights and obligations associated with such membership interests at the relevant time, including the allocation, distribution, consent, approval and management rights granted to the holders of Class RR Units (if any) and any and all other benefits to which the holders of Class RR Units may be entitled as provided in this Agreement, together with the obligations of such holders to comply with all the terms and provisions of this Agreement.

"Code" means the Internal Revenue Code of 1986, as amended from time to time, and the corresponding provisions of any successor statute.

"Company" has the meaning set forth in the introductory paragraph of the Agreement.

"Company Year" means the calendar year.

"Competitor of Heaven Hill" means any supplier, producer, or manufacturer in the alcoholic beverage industry.

"Fully-Diluted Units" means the total Units then outstanding (including all options, rights to purchase, rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Units, including all options and warrants) and all Class RR Units authorized and available for issuance to the Company's employees, officers, Managers, consultants, advisors or service providers pursuant to any plan, agreement or similar arrangement approved by the Board.

"Independent Accountants" means the independent accountants selected by the Board.

"Major Investor" means any Preferred Member that, individually or together with such Preferred Member's Affiliates, holds at least 75,000 Preferred Units.

"Majority in Interest" means, (i) if determined prior to the date on which each Preferred Member's Unreturned Capital Amount has been reduced to zero in accordance with Section 4.3(a)(i), the approval of (A) the Members holding at least a majority of the outstanding Class A Units, voting as a separate class, and (B) the Preferred Unit Majority, or, with regard to any class of Units entitled to vote, the approval of the Members holding at least a majority of the outstanding Units of such applicable class, and (ii) if determined on or after the date on which each Preferred Member's Unreturned Capital Amount has been reduced to zero in accordance with Section 4.3(a)(i), the approval of the Members holding at least a majority of the outstanding Units of all classes of the Company entitled to vote, with all classes of Units entitled to vote voting as a single class, or, with regard to any class of Units entitled to vote, the approval of the Members holding at least a majority of the outstanding Units of such applicable class; provided, in each case under clauses (i) and (ii), that, (A) for so long as Heaven Hill continues to beneficially own its Preferred Unit Threshold, a "Majority in Interest" must include Heaven Hill, and, (B) for so long as BORA continues to beneficially own its Preferred Unit Threshold, a "Majority in Interest" must include BORA.

"Manager" means any Person serving as a manager of the Company and serving as such in accordance with this Agreement, but does not include any Person who has ceased to be a manager of the Company.

"Member" means any Person executing this Agreement as of the date of this Agreement as a member or hereafter admitted to the Company as a member as provided in this Agreement, who holds Units, but does not include any Person who has ceased to be a member in the Company.

"Member Minimum Gain" means the aggregate of the partner nonrecourse debt minimum gain amounts of the Company computed in accordance with Treasury Regulations Section 1.704-2(i)(3).

"Member Nonrecourse Deductions" shall be determined in accordance with the principles of Treasury Regulations Section 1.704-2(i)(1). The amount of Member Nonrecourse Deductions for a year is determined in accordance with Treasury Regulations Section 1.704-2(i)(2) and generally equals the net increase, if any, in the amount of Member Minimum Gain during that year, determined pursuant to Treasury Regulations Section 1.704-2(i)(3).

"Minimum Gain" means the aggregate gain, if any, that would be realized by the Company for purposes of computing income or loss with respect to each Company asset if each Company asset was disposed of by the Company in a taxable transaction in full satisfaction of all nonrecourse liabilities of the Company secured by such asset. Minimum Gain with respect to each Company asset shall be further determined in accordance with the rules of Treasury Regulations Section 1.704-2(d) and any subsequent rule or Treasury Regulation governing the determination of minimum gain. A Member's share of Minimum Gain at the end of any Company Year shall equal the aggregate Nonrecourse Deductions allocated to such Member (or his predecessors in interest) up to that time, less such Member's (and predecessors') aggregate share of decreases in Minimum Gain determined in accordance with Treasury Regulations Section 1.704-2(g).

"Net Cash Flow" means, with respect to any period, all cash revenues and receipts of the Company (excluding Capital Contributions); less (i) cash expended (other than to the extent expended from reserves established in accordance with clause (ii) of this definition) for debts and expenses of the Company and interest and principal payments on any indebtedness of the Company and (ii) reserves that the Board reasonably determines to be advisable. For purposes of determining Net Cash Flow, depreciation and amortization shall not be considered an expense of the Company. Net Cash Flow shall include all proceeds of any sale or other disposition of the assets of the Company, including a Sale of the Company. Net Cash Flow shall be determined consistent with the Company's financial statements, which shall be prepared in accordance with accounting principles used for federal income tax purposes.

“Net Income” means for a taxable year of the Company the excess of (i) the income and gain of the Company for such year determined in accordance with the accounting principles described in Section 4.1(a), over (ii) the deductions and losses of the Company for such year determined in accordance with the accounting principles described in Section 4.1(a).

“Net Loss” means for a taxable year of the Company the excess of (i) the deductions and losses of the Company for such year determined in accordance with the accounting principles described in Section 4.1(a), over (ii) the income and gain of the Company for such year determined in accordance with the accounting principles described in Section 4.1(a).

“New Securities” means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

“Nonrecourse Deductions” means the excess, if any, of the net increase in the amount of Minimum Gain during a Company Year over the aggregate amount of any distributions during such year of proceeds of a nonrecourse liability that are allocable to an increase in Minimum Gain. The Nonrecourse Deductions of a year shall consist first of depreciation with respect to each item of Company property to the extent of the increase in Minimum Gain attributable to nonrecourse liabilities of the Company secured by such Company property, with the remainder of any Nonrecourse Deductions made up of a pro rata portion of the Company’s other items of loss. Nonrecourse Deductions shall be further determined in accordance with the rules of Treasury Regulations Sections 1.704-2(b)(1) and 1.704-2(c) and any subsequent rule or regulation governing the determination of nonrecourse deductions.

“Operative Event”, with respect to any Preferred Member, shall mean any of the following events:

(i) the death of such Preferred Member;

(ii) subject to Section 9.8, the termination of the marital relationship of such Preferred Member by death or divorce if such Preferred Member does not succeed to his or her spouse’s community interest in the Preferred Member’s Units or purchase such interest pursuant to the terms hereof, or the entering into of any property settlement arrangement or agreement in connection therewith, pursuant to which such Preferred Member’s interest in his or her Units is to be diluted, lessened, encumbered or impaired;

(iii) the Bankruptcy of such Preferred Member;

(iv) the occurrence of an event that constitutes, or would result in, a Transfer of such Preferred Member’s Units in violation of this Agreement;

(v) the withdrawal of such Preferred Member in violation of this Agreement;

and

(vi) the filing by such Preferred Member of any action seeking a judicial dissolution of the Company under Chapter 11 of the TBOC.

“Percentage Interest” means, with regard to any Member, the percentage of the Company’s total outstanding Units held by such Member.

“Person” means an individual, corporation, association, limited liability company, limited liability partnership, partnership, estate, trust, unincorporated organization or other entity or a government or any agency or political subdivision thereof.

“Preferred Member” means any Member holding Preferred Units; provided, however, that if any Class A Member owns Preferred Units, such Class A Member will be considered a Preferred Member only with regard to the Preferred Units owned by such Class A Member, notwithstanding anything else in this Agreement to the contrary.

“Preferred Units” means, collectively, the Class B Units, the Class C Units, and the Class D Units.

“Preferred Unit Majority” means the Preferred Members who collectively hold at least a majority of all issued and outstanding Preferred Units held by all Preferred Members, voting together as a single class; provided that (i) for so long as Heaven Hill continues to beneficially own its Preferred Unit Threshold, a “Preferred Unit Majority” must include Heaven Hill, and (ii) for so long as BORA continues to beneficially own its Preferred Unit Threshold, a “Preferred Unit Majority” must include BORA.

“Preferred Unit Threshold” means, (i) with respect to Heaven Hill, at least 50,000 Preferred Units and (ii) with respect to BORA, at least 219,278 Preferred Units, in each case under clauses (i) and (ii) subject to appropriate adjustment in the event of any unit distribution, unit split, combination, or other similar recapitalization with respect to the Preferred Units after the Effective Date).

“Pro Rata Share” means, with regard to any Member, the proportion that the outstanding Units held by such Member (including all outstanding Class RR Units held by such Member) bears to the total Units then outstanding (including all options, rights to purchase, rights convertible into, or exercisable or exchangeable for (in each case, directly or indirectly), Units, including all options and warrants, but not including Class RR Units authorized and available for issuance to the Company’s employees, officers, Managers, consultants, advisors or service providers pursuant to any plan, agreement or similar arrangement approved by the Board).

“Related Party” means, as to any Member, (i) any Affiliate of such Member, (ii) any employee, manager, officer, director, member, shareholder or partner of such Member or of any Affiliate of such Member, (iii) any member of the family of any Person that is a Related Party of such Member, and (iv) all agents (whether or not disclosed) acting on behalf of or by the discretion of any of the foregoing.

“Sale of the Company” means either:

(1) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including any reorganization, merger or consolidation or stock transfer, but excluding any such transaction effected primarily for the purpose of changing the domicile of the Company), unless the Company's equityholders of record immediately prior to such transaction or series of related transactions hold, immediately after such transaction or series of related transactions, at least \(50\%\) of the voting power of the surviving or acquiring entity (provided that the sale by the Company of its securities for the purposes of raising additional funds shall not constitute a Sale of the Company hereunder); or
(2) a sale of all or substantially all of the assets of the Company.

“Securities Act” means the Securities Act of 1933, as amended.

"TBOC" means the Texas Business Organizations Code, as amended, and any successor statute.

"Treasury Regulations" means the Income Tax Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

"Units" means the Units of the Company, including the Class A Units, the Class B Units, the Class C Units, the Class D Units and the Class RR Units; provided, however, that with respect to any Unadmitted Assignee, a Unit shall not include any rights except as expressly set forth in Section 9.9.

"Unreturned Capital Amount" means, with respect to a Preferred Member, an amount equal to such Preferred Member's initial cash Capital Contributions, as set forth on the Unit Register, increased by any Capital Contributions made by such Preferred Member to the Company and decreased by distributions to such Preferred Member pursuant to Sections 4.3(a)(i)a and 4.3(a)(ii)a as of the date on which the Unreturned Capital Amount is being determined.

"Winding Up" means the process of winding up the business and affairs of the Company as a result of the occurrence of an event requiring the winding up of the Company.

# **RANCH HAND SUPPLY CO. LLC**  
**UNIT REGISTER**

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Ranch Hand Supply Co. LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** TX

**Date of Organization:** 07-10-2019

**Physical Address:** 12501 Pauls Valley Road, Austin, TX, 78737

**Issuer Website:** https://www.ranchriderspirits.com/

**Is there a Co-Issuer?:** Yes

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 6.0% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Convertible Note

**Number of Securities Offered:** 100000

**Price per Security:** $1.00

**Method for Determining Price:** Pro-rated portion of the total principal value of $100,000; interests will be sold in increments of $1; each investment is convertible to one unit as described under Item 13.

**Target Offering Amount:** $100,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** As determined by the issuer

**Maximum Offering Amount:** $1,235,000.00

**Deadline to Reach Target Amount:** 04-30-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 13

**Total Assets (Most Recent Fiscal Year):** $7,907,135.00

**Total Assets (Prior Fiscal Year):** $3,660,407.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $4,950,087.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $605,248.00

**Accounts Receivable (Most Recent Fiscal Year):** $328,355.00

**Accounts Receivable (Prior Fiscal Year):** $304,696.00

**Short-Term Debt (Most Recent Fiscal Year):** $9,147,315.00

**Short-Term Debt (Prior Fiscal Year):** $989,615.00

**Long-Term Debt (Most Recent Fiscal Year):** $451,964.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $5,137,983.00

**Revenues/Sales (Prior Fiscal Year):** $3,447,309.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $6,187,493.00

**Cost of Goods Sold (Prior Fiscal Year):** $1,950,610.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-10,375,880.00

**Net Income (Prior Fiscal Year):** $-501,105.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, B5, GU, PR, VI, 1V

### Signatures

**Issuer:** Ranch Hand Supply Co. LLC

**Signature:** Brian Murphy

**Title:** Co-founder, Co-CEO

---

**Signature:** William Rives

**Title:** Director

**Date:** 01-27-2023

---

**Signature:** Matt Molinari

**Title:** COO

**Date:** 01-27-2023

---

**Signature:** Quentin Cantu

**Title:** Co-CEO

**Date:** 01-27-2023

---

**Signature:** Brian Murphy

**Title:** Co-founder, Co-CEO

**Date:** 01-27-2023