# EDGAR Filing Document

**Accession Number:** 0001854861
**File Stem:** 0001670254-23-000128
**Filing Date:** 2023-2
**Character Count:** 336569
**Document Hash:** 174ce6ab9ff9a290e7c5ba03165fa63c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000128.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0001670254-23-000128

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 10

**FILED AS OF DATE**: 20230216

**DATE AS OF CHANGE**: 20230216

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SMART Tire Company, Inc.
- **CENTRAL INDEX KEY:** 0001854861
- **IRS NUMBER:** 852515533
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31817
- **FILM NUMBER:** 23637827

**BUSINESS ADDRESS:**
- **STREET 1:** 1755 N TULARE WAY
- **CITY:** UPLAND
- **STATE:** CA
- **ZIP:** 91784
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 1450 FIRESTONE PKWY, UNIT E
- **CITY:** AKRON
- **STATE:** OH
- **ZIP:** 44301

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer

The SMART The Company, Inc.

Legal status of issuer

Loan Corporation

Jurisdiction of Incorporation/Organization DE

Date of organization 8/12/2020

Physical address of issuer

1422 Freeland Parkway Unit 6

Akron OH 44308

Website of issuer

https://smartthecompany.com

Name of intermediary through which the offering will be conducted

Wefunder Portal LLC

CIA number of intermediary:

0001870254

SEC file number of intermediary:

007-00033

CRO number / application of intermediary:

201003

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 issuer amount is not available at the time of the filing, for conducting the offering, including the amount of interest and any other fees associated with the offering.

75% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses if 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.

Yes

Type of security offered:

☐ Common Stock

☑ Preferred Stock

☐ Gold

☐ Other

If Other, describe the security offered:

Target number of securities to be offered:

21,739

Price:

$5.00000

Method for determining price:

Deciding one money valuation $54,454,081.00 (or $50,036,227.40 for investors in the first $100,000.00) by number of shares outstanding on fully diluted basis.

Target offering amount:

$96,000.00

Overreductions accepted:

☑ Yes

☐ No

If yes, describe how overreductions will be allocated:

☐ Free-rate basis

☐ Third-party, First-served basis

☐ Other

If other, describe how overreductions will be allocated:

As determined by the issuer

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

$4,500,000.00

Dealted to result the target offering amount:

4,750,000.00

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 payment of employees:

$

|  | Past month (first year-end) | Prior fiscal year-end |
| --- | --- | --- |
| Total Assets | $849,780.00 | $570.00 |
| Cash & Cash Equivalents | $840,101.00 | $576.00 |
| Unrealized Receivables | $0.00 | $0.00 |
| Short-term Debt | $41,000.00 | $0.00 |
| Long-term Debt | $1,961,476.00 | $2,100.00 |
| Non-current Debt | $0.00 | $0.00 |
| Cash of Goodwill | $0.00 | $0.00 |
| Taxes Paid | $0.00 | $0.00 |
| Net Income | ($436,415.00) | ($1,524.00) |

Select the jurisdiction 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, ME, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OR, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI, WI

## Offering Statement

Required to each question in each paragraph of this post, but both such questions and any notes, but are not intended to be taken. If disclosure is required to any question is requested, or one or more other questions, it is not necessary to report for disclosure. If a question or series of questions is applicable or the response is available, therefore in the front, either one day or a week, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days, or two or three days

Do not control and provide a screening of questions. Give full and complete answers to that they are not misleading under the circumstances involved. Do not discuss any direct performance or other anticipated contribution you have to assemble them in before that it will actually occur within the Intermedial Action. If any senior requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management and principal shareholders may be liable to common fraud on this information.

### THE COMPANY

1. Name of Issuer:

The SMART Tire Company, Inc.

### COMPANY ELIGIBILITY

2. (1) Check the box to certify that all of the following statements are true for the issuer:
- Department owner, 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 his reports pursuant to Section 13 or Section 1001 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 available to rely on this exemption under Section 4(a)(1) of the Securities Act as a result of a disqualification specified in Rule 30(3(a)) of Regulation Crowdfunding.
- Has filed with the Commission and provided by investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering (substantial) for the such shorter period that the issuer was required to file such reports.
- Not a development scope company that can be specific business plan or R&D has indicated that its business plan is to engage in a transfer 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)(1) of the Securities Act.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 30(2 of Regulation Crowdfunding)?

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

4. Provide the following information about each director (and any person) occupying a similar status or performance of their functions of the issuer:

| Director | Principal Occupation | Main Engineer | Year Served as Director |
| --- | --- | --- | --- |
| Earl Cole | CEO | The SMART Tire Company | 2020 |
| Brian Yonese | CTO | The SMART Tire Company | 2020 |

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 person) occupying a similar status or performance of their functions of the issuer:

| Officer | Position (list) | Year Served |
| --- | --- | --- |
| Earl Cole | CEO | 2020 |
| Earl Cole | President | 2020 |
| Brian Yonese | Secretary | 2020 |
| Brian Yonese | Treasurer | 2020 |

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

INSTRUCTION TO QUESTION 1: The purpose of this document is to provide information on the information contained in this document, including the information contained in this document, and the information contained in this document, including the information contained in this document.

### PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent positions date, who is the listed list (some of 10 percent or more of the issuer's outstanding voting assets securities, calculated on the basis of voting power).

| Name of holder | No. and Class of Securities (see text) | % of voting losses (loss or offering) |
| --- | --- | --- |
| Brian Yonese | 4500000.0 Common stock | <0.5 |
| Earl Cole | 4500000.0 common stock | <0.5 |

INSTRUCTION TO QUESTION 1: The name information must be provided on the basis of the information contained in this document, including the information contained in this document, including the information contained in this document, including the information contained in this document.

All information contained in this document, including the information contained in this document, must be provided to the person in the event of a change in the position of the issuer. The issuer is not a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor a member of the issuer, nor

### 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: If you do not have a copy of the document, please refer to the attached Appendix A, Business Description & Plan.

The information contained in this document is provided in the following section of the 1980s. The report is the question that the report is not to be considered by the information contained in this document. The report is not to be considered by the information contained in this document.

### 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 reasons for loss or loss made an investment in the issuer's application or voting.
Our future success depends on the availability of single monetary slips materials. Disruptions to our supply chain could adversely affect the business.
The company is a supplier to government contracts. Our future success depends in some cases on successful bids for government funding in collaboration with partners.

Medical Service. The company produces premium products with higher price points. A downturn in consumer markets could affect future sales.

Partner stability. From time to time, the company collaborates with other technology companies. Layoffs and project cancellations may be outside of our control.

Technical risk. The company is developing new products using advanced materials that may fail to meet their performance goals.

We risk heavily on our technology and intellectual property, but we may be unable to adequately or cost effectively protect or enhance our intellectual property rights, thereby weakening our competitive position and increasing operating costs.

We face competition from other companies. Additionally, more well-established and better-capitalized companies could enter our market. Competition could affect our ability to scale our business as planned.

The Company might not sell enough securities in this offering to meet its development or operating needs and fulfill its plans beyond 2025, in which case the Company might be required to reduce staff or cancel new products.

The Company will continue its research and development activities for its entire consumer products and begin its production operations which require capital. There is no certainty that the initial financing will be sufficient to establish that the initial product line is viable, in which case additional development financing will be required. After successful development of the initial product, the Company expects that it will need at least $2 million in additional capital to grow and expand the business successfully with additional manufacturing ability, inventory and distribution reach. If the Company is successful, the Company will certainly have to obtain further additional capital beyond the foregoing to expand manufacturing, inventory and distribution reach. As such, it is absolutely certain that the Company will need additional financing. The ability of the Company to secure future capital will depend on many factors, including continued progress in product success, the cost of manufacturing and production, market requirements, advertising costs and fluctuations in raw material prices. The Company does not know whether additional financing will be available when needed, or whether it can be obtained or come favorable to the Company or its existing decision - particularly in light of current economic conditions, the availability of credit, and other sources of capital. The Company may raise any necessary funds through public or private equity offerings, debt financings or additional corporate collaboration and licensing arrangements. To the extent the Company raises additional capital by issuing equity securities, the Company's numbers and experience dilution. If the Company raises funds through debt financings, they may become subject to restrictive covenants. To the extent that the Company raises additional funds through collaboration and product licensing arrangements, the Company may be required to reinsure some states to the Company's proprietary information or product trade secrets and protected intellectual property or grant licenses on terms that are not favorable to the Company. If adequate funds are not available, the Company may be required to delay, scale back or minimize their research and development programs or obtain funds through collaborative partners or others that may require the Company to reinsure rights to certain of the Company's potential product offerings that they would not otherwise reinsure. These can be no assurance that additional financing will be available on acceptable terms or at all, if and when required.

Earl Cole, the Company's co-founder and CEO, and Brian Yeovle, the Company's co-founder and CFO, each currently own equivalent equity ownership in the Company, which collectively aggregates approximately 80% of the Company's outstanding equity. The co-founders are currently the Company's sole members of its Board of Directors, and therefore have significant control over the management of the Company and the direction of its policy and efforts. This concentrated control in the Company will limit investors' ability to influence Company markets.

Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may look at 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.

The Company may never receive a future equity financing or elect to cancel the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a rate of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illegal, with no secondary market on which to sell them. The Securities are not equity interests, here no ownership rights, here no rights to the Company's assets or profits and here no voting rights or ability to direct the Company or its actions.

PRODUCTION IN SYSTEMS is a real property of the company and the best and the best of the best of the best. The company is not a member of the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business and the company's business

# The Offering

# USE OF FUNDS

1. 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 to the reverse 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.

2. How does the lower interest in the proceeds of the offering?

If no more: $99,999

100 of 62.5% towards general operating expenses (payroll, R&D)

73% WeTunder fees

If no more: $1,000,000

100 of 40% towards salaries and benefits

30% towards new equipment

13.5% research & development expenses

70% WeTunder fees

5% sales and marketing

5% for rent and utilities

If no more: $4,025,817

100 of 40% towards salaries and new fees

20% towards manufacturing equipment

12.5% research & development expenses

10% additional cash reserve

70% WeTunder Fees

7% sales and marketing

3% toward rent, utilities and lab upgrades

PRODUCTION IN SYSTEMS is the most recent year's annual report, which is a major event that is not a result of the annual report. The report is not a result of the annual report, which is a major event that is not a result of the annual report.

According to the new capital data, the value of investment is based on the value of the investment. The value of investment is based on the value of the investment.

# DELIVERY & CANCELLATIONS

1. How will the issuer compare the transaction and other securities to the investment?

Book Entry and Investment in the Co-Issuer Investors will make their investments by investing in interests issued by one or more companies, each of which is a central purpose vehicle ("SPV"). The SPV will invest all amounts in reserves 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 such investors' "inverdict" page on the Interbank 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.

2. How can an investor report 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 recombination 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 debt 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 re-confirm.

If the investor cancels his or her investment commitment 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 pro 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

1. Describe the terms of the securities being offered:

Record Round: $54,494,896.00 pre-money valuation

See exact security attached as Appendix B, Investor Contracts

The SMART The Company, Inc. is offering up to $95,055 shares of Series Seed Preferred Stock, at a price per share of $0.60.

Investors in the first $500,000.00 of the offering will receive stocks at a price per share of $4.60, and a pre-money valuation of $20,096,207.00.

The campaign maximum is $4,921,896.00 and the campaign minimum is $90,000.40.

# Information Rights

The Company shall furnish to each Purchaser holding that number of shares equal to or in excess of the question determined by dividing (1) the Major Purchaser Dollar Threshold by (1) the Series Seed & Purchase Price, rounded up to the next whole share (as adjusted for stock splits, stock dividends, combinations, recapitalizations or the like) (a "Major Purchaser") when available (2) 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 income statement, and an unaudited statement of cash flows, all prepared in accordance with generally accepted accounting principles and practices, and (3) 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 income statement, and an unaudited statement of cash flows, 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 three or less of the unaudited versions.

"Major Purchaser Dollar Threshold" means $500,000.

# Inspection Rights

The Company shall permit each Major Purchaser to visit and inspect the Company's properties, to examine its books of account and records and to discuss the Company's affairs, finances and accounts with its officers, all at such reasonable times as may be requested by such Major Purchaser.

# Additional Rights and Obligations

If the Company issues securities in its next equity financing after the date hereof (the "Next Financing") that (1) (a) have rights, preferences or privileges that are more favorable than the terms of the shares of Series Seed Preferred Stock, such as prior-based consolidation provisions, or (b) provide all such future investors other contractual terms such as registration rights, and (c) is approved as specified, as a Next Financing by a majority of the financial standing shares of Series Seed Preferred Stock held by all Purchasers, which approved shall not be unreasonably withheld, the Company shall provide substantially equivalent rights to the Purchasers with respect to the shares of Series Seed Preferred Stock (with appropriate adjustment for economic terms or other contractual rights), subject to such Purchaser's execution of any documents, including, if applicable, investor rights, tax rate, voting, and other agreements, executed by the investors purchasing securities in the Next Financing (such documents, the "Next Financing Documents"). Any Major Purchaser will remain a Major Purchaser for all purposes in the Next Financing Documents to the extent such concept exists. The Company shall pay the reasonable fees and expenses, net to exceed $5,000 in the aggregate, of one coupon for the Purchasers in connection with the Purchaser's review, execution, and delivery of the Next Financing Documents. Notwithstanding anything herein to the contrary, subject to the provisions of

Section 8.11 of the attached subscription agreement, upon the execution and delivery of the Next Financing Documents by Purchasers holding a majority of the then-restitending shares of Series Seed Preferred Stock held by all Purchasers, this Agreement (excluding any then-existing and outstanding obligations) shall be executed and restated by and into such Next Financing Documents and shall be terminated and all no further force or effect.

# **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 interest in the SPV to investors. The SPV has been formed by Wefunder Ashes, LLC and is a confluence 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 loss 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 successes (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) take 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.

# **Restrictions 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?

Not to allow description of its Proxy in the Lead Investor.

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

Except as specified in Section 1.2.2 of the attached subscription agreement, any term may be amended, terminated or waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Purchasers holding a majority of the then-restitending shares of Series Seed Preferred Stock (or Common Stock issued on conversion thereof), provided, however, that any amendment to Section 7.1(a) or Section 7.1(c) of the attached subscription agreement will also require the additional written consent of the holders of a majority of the outstanding shares of the Company's Common Stock then held by all of the Common Stock holders.

Refused 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 set forth.
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 to any purchaser of such securities during the one year preceding notice when the securities were issued, unless such securities are transferred:

1. As the issuer:
2. As an unshipped investor:
3. as part of an offering registered with the U.S. Securities and Exchange Commission or
4. as a member of the family of the purchaser or the equivalent, as is not provided by the purchaser, it is not covered that the transfer of a member of the family of the purchaser or the equivalent, as in connection with the decision in terms of the purchaser or other certain circumstances.

NOTE: The term "rescribed investor" means any person who comes within any of the categories set forth in Rule 10.5(a) of Regulation D, or who the other reasonably authentic person 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, cigars, cigar, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos, cigarillos

# **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 |
| --- | --- | --- | --- |
| Common | 9,888,757 | $5,000,000 | Yes |
| Preferred | 1,886,765 | $60,919 | Yes |

# **Securities Reserved for Issuance upon Exercise or Conversion**

Warrants:

Options: 1000000

Describe any other rights.

Preferred stock has a 1x liquidation preference over common stock.

18. How may the rights of the securities being offered be distinctly limited, disclosed or supplied 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 release in additional information (including potentially a

DETAIL SUMMARY

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, capitalists, in cases where the rights of holders of convertible risks, SARES, or other outstanding options or warrants are exercised, or if new assets are granted under our equity compensation plans, an investor's interests in the Company may be diluted. This means that the pre-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.

12. Are there any differences not reflected above between the securities being offered and such other risks of security of the issuer?

No.

20. How could the exercise of rights held by the principal shareholders identified in question 9 below affect the publication of the securities being offered?

As holders of a majority in interest of voting rights in the Company, the shareholders 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 response 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 an advantageous to the investor.

For example, the shareholders may change the terms of the articles of incorporation for this 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 shareholders 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 shareholders have the right to redeem their securities at any time. Shareholders could decide to make the Company to redeem their securities at a time that is not favorable to the investor and is damaging to the Company. Investors' not may affect the value of the Company and/or its viability. In cases where the rights of holders of convertible risks, SARES, or other outstanding options or warrants are exercised, or if new assets are granted under our equity compensation plans, an investor's interests in the Company may be diluted. This means that the pre-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 stock, an investor's interest will typically also be diluted.

Based on the risks described above, the investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.

21. How are the securities being offered being secured? Include examples of methods for how such securities may be issued 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 trade, 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.

In the future, we will perform valuations of our common stock that less into account factors such as the following:

1. unvalued third party valuations of our common stock;
2. the price at which we sell other securities, such as convertible stock or preferred Stock, in light of the rights, preferences and privileges of our those securities related to those of our common stock;
3. our results of operations, financial position and capital resources;
4. current business conditions and projections;
5. the lack of repeatability of our common stock;
6. the hiring of any personnel and the experience of our management;
7. the introduction of new products;
8. the risk inherent in the development and expansion of our products;
9. our stage of development and national risks related to our business;
10. the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business;
11. industry trends and competitive environment;
12. trends in consumer spending, including consumer confidence;
13. overall economic indicators, including gross domestic product, employment, inflation and interest rates; and
14. 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 share similar characteristics and that the Company's value will compare 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 Board Of Directors, and the investor will have no independent right to name or remain an officer or member of the Board Of Directors 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 decisions 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 securities of securities, lower resurgences of securities, a lack of the issuer or of assets of the issuer or transactions with vested parties?

Additional resources of securities. Following the investor's investment in the Company, the Company may sell interests to additional investors, which will share 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 decisions 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.

House inspections of securities. The Company may have authority to re-enact as securities from shareholders, which may serve to decrease any liquidity in the market for such securities, decrease the percentage interests held by other centrally 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 issuer will be entered 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 and the Board of Directors of the Company to manage the Company so as to maximize value for shareholders. 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 and the Board of Directors of the Company. If the Board Of Directors of the Company authorizes a sale of all or a part of the Company, or a dissection of a substantial portion of the Company's assets, there can be no guarantee that the investor will pay 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 and Board of Directors 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 even though, but will be in all cases consistent with the duties of the management of the Company to its shareholders. 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.

14. Describe the material terms of any indebtedness of the issuer.

Name

INDUSTRY/INDUSTRY (if any, to reflect potential securities, based on actual distribution)

15. What other interest offerings has the issuer conducted within the past three years?

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 11/2020 | Section 41(a)(1) |  | $100 | General operations |
| 12/2020 | Section 41(a)(2) |  | $2,000 | General operations |
| 1/2021 | Section 41(a)(2) |  | $2,000 | General operations |
| 2/2021 | Section 41(a)(2) |  | $1,200 | General operations |
| 3/2021 | Section 41(a)(3) |  | $1,000 | General operations |
| 3/2021 | Section 41(a)(3) |  | $1,500 | General operations |
| 5/2021 | Section 41(a)(2) |  | $1,500 | General operations |
| 5/2021 | Section 41(a)(2) |  | $800 | General operations |
| 6/2021 | Section 41(a)(2) | SAFE | $10,000 | General operations |
| 6/2021 | Registration Crowdfunding | SAFE | $1,246,481 | General operations |
| 10/2021 | Section 41(a)(2) | SAFE | $40,000 | General operations |
| 11/2022 | Registration Crowdfunding | Preferred stock | $65,187 | General operations |
| 12/2022 | Section 41(a)(2) |  | $20,000 | General operations |
| 12/2022 | Section 41(a)(3) |  | $36,000 | General operations |

16. Here is the issuer to any entity controlled by or under common control and the issuer's party to any transaction (and the beginning of the issuer's last fiscal year or any currently proposed transaction, where the amount invested exceeds five percent of the aggregate amount of capital raised by the issuer to interest in Section 41(a)(1) of the Securities Act and/or its provisions). In such period, including the amount the issuer seeks to issue in the current offering, in which any of the following persons have or is to have a direct or indirect material interest:

1. any director or officer of the issuer

2. any person who is, or of the most recent practicable date, the beneficial owner of (1) pursuant to more of the issuer's outstanding notice issued securities, calculated on the basis of notice issued.

3. If the issuer was incorporated or organized within the past three years, any promoter of the issuer

4. or any immediate family member of any of the foregoing persons

☐ Yes
☐ No

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

Name Brian Yates

Amount invested $100.00

Transaction type Other

Issue date 11/31/20

Relationship Founder / owner

Capital contribution $100

Name Brian Yates

Amount invested $2,000.00

Transaction type Other

Issue date 11/30/20

Relationship Founder / owner

Capital contribution

Name Brian Yates

Amount invested $2,000.00

Transaction type Other

Issue date 10/30/21

Relationship Founder / owner

Capital contribution

Name Brian Yates

Amount invested $1,200.00

Transaction type Other

Issue date 02/21/21

Relationship Founder / owner

Capital contribution

Name Brian Yates

Amount invested $1,000.00

Transaction type Other

Issue date 03/28/21

Relationship Founder/owner
Founder/owner

Name Brian Yorens
Amount invested $1,500.00
Transaction type Other
Issue date 05/30/21
Relationship Founder/owner
Founder/owner

Name Brian Yorens
Amount invested $1,500.00
Transaction type Other
Issue date 05/30/21
Relationship Founder/owner
Founder/owner

Name Brian Yorens
Amount invested $500.00
Transaction type Other
Issue date 05/30/21
Relationship Founder/owner
Founder/owner

Name Brian Yorens
Amount invested $25,000.00
Transaction type Other
Issue date 12/31/22
Relationship Founder/owner
Founder/owner

Name Deborah Moore
Amount invested $25,000.00
Transaction type Other
Issue date 12/31/22
Relationship Family member of founder/owner (Brian Yorens)
Founder/owner

INSTRUCTIONS IN QUESTION 24. Do not use this material, but do not use it, and should be used to use it in the form of a document, or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information or a document with the same information

In the case of the first time, the first time is a result of the first time.

The first time is a result of the first time.

The first time is a result of the first time.

## FINANCIAL CONDITION OF THE ISSUER

[1] Does the issuer have an operating license?

☐ Yes
☐ No

[2] Describe the financial condition of the issuer, including, in the event material, liquidity, capital resources and financial 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

Reinventing fees w/NASA for SIT electric, submercuries and space industries.

Pneumatic (air filled) tires haven't changed much in 100 years. However, NASA has been working for decades developing new tire technologies for outer space. Our mission is to bring this space eye innovation back down to earth, so we cater to a new era of electric and submercuries vehicles. Safer, cleaner transportation can impact all of our lives.

We move the world's first fuel-efficient, eco-friendly, lightweight & smooth-riding access tires.

In 5 years, SMART tires aims to be the two of choice for bicycles & scooters, cutting trackoffs between air-filled and access tires.

We're aiming for our tires to embark on NASA missions to Mars and the moon, including the First Vulcan mission in decades.

Back on earth, we're hoping to be launching the first tires specially made for EVs, saving billions of lbs of rubber & plastic waste, increasing energy efficiency, and eliminating flats.

Next up we're looking to save millions of gallons of jet fuel.

Projections mentioned above cannot be guaranteed.

#### Milestones

The SMART Tire Company, Inc. was originally organized as an LLC in August 2020. In March of 2021, the Company reorganized as a Delaware corporation. Patents mentioned in this Form C are owned by the Company.

Since then, we have:

- Founder Motors and Air Official Collaboration
- Exclusive NASA license & 2x new patent pending the inventions
- Multiple Global 500 Aerospace Customers with Space Industry Revenue
- $300M market opportunity in industrial lines, key supplier to future SIT electric space industry
- $500M customer waiting list for our groundbreaking METL® bicycle wheelsets
- Patented space tire for the Mars and Moon supply chain
- 12x years and $50M development funding and research previously involved

into this technology (different entity)

The Company is subject to risks and uncertainties common to early-stage companies. Given the Company's limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future.

## Historical Results of Operations

Our company was organized in August 2020 and has limited operations upon which prospective investors may have an evaluation of its performance.

- Amount of time shown. For the period ended December 31, 2021, the Company had revenues of $0 compared to the year ended December 31, 2020, when the Company had revenues of $0.

- Issue. As of December 31, 2021, the Company had total assets of $569,780, including $545,123 in cash. As of December 31, 2020, the Company had $570 in total assets, including $576 in cash.

- Income. The Company has had net losses of $436,418 and net losses of $0.004 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.

- Expense. The Company's liabilities totaled $5,433,637 for the fiscal year ended December 31, 2021 and $2,400 for the fiscal year ended December 31, 2020.

## Liquidity & Capital Resources

To date, the company has been financed with $156,362 in equity and $1,866,381 in SAFE's.

After the conclusion of this Offering, closed we fell our minimum funding target, our projected turnkey is 3 months before we need to raise further capital.

We plan to use the proceeds as set forth in the 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 have capital in 12 months. Except as otherwise described in the 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 low-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

The SMART Tire Company, Inc. cash in hand is $45,431.24, as of February 2025. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $30/month, and operational expenses have averaged $50,000.00/month. For an average burn rate of $50,000.00 per month. Our intent is to be profitable in 12 months.

The company currently has $500,000 as account receivables, and an additional $50,000 anticipated revenue from an accelerator / paid proof of concept program. Overall burn rate remains around $50,000/month.

The company anticipates a minimum of $500,000 in revenue over the next 3 months. Projected 6-month revenue is $200,000 - $500,000 based on current clients and sales. Depending on the outcome of major NASA contracts, this could be substantially higher. We expect to incur approximately $300k in expenses over the next six months.

The company is not currently profitable. The company is currently a supplier to multiple NASA bids for the Lunar Tension Vehicle. Selection for this contract would contribute greatly to reaching profitability in 2023. Otherwise, we anticipate revenue to exceed expenses by 2024. Approximate funding needs to profitability are estimated at $196,604, but may vary greatly with the overall of grants, contracts etc. over the next 12 months.

The company has applied for one SBR Phase I grant through the National Science Foundation, and is evaluating others. Upon the revenue is currently - $100k in open invoices, and we expect at least this much additional revenue over the short term duration of the campaign.

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

PERMITTING AGREEMENT. To obtain a report on the results of the following: (1) the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of the results of

## FINANCIAL INFORMATION

23. Include financial statements covering the two most recently completed fiscal years on the period(s) of our December, 31, 2018.

Refer to Appendix C, Financial Statements

1. Note Notes: notify the

(1) the financial statements of The SMART Tire Company, Inc. included in this Form are true and complete in all material respects; and

(2) the financial information of The SMART Tire Company, Inc. included in this Form reflects accurately the information reported on the tax return for The SMART Tire Company, Inc. filed for the most recently completed fiscal year.

Brian Yennie
CTO

## STAKEHOLDER ELIGIBILITY

24. With respect to the issues, any presentation of the issues, any affected issues, any directors, officers, persons, partners or managing members of the issues, any beneficial owner of 20 percent or more of the issues is outstanding and no equity, securities, any employee connection with the issues in any capacity of the firm of such acts, any person that has been or will be paid (directly or indirectly) to the extent of the company's performance or compensation with such acts of securities, or any general partner, directors, officers or managing members of any such activities prior to May 16, 2020.

(1) Not any such person have consented, within 10 years (or two years, at the time of request, their predecessors and affected issues) before the filing of this offering statement, of any felony or misdemeanor:

- In connection with the acceptance or sale of any security ☐ Yes ☑ No
- involving the making of any false filing with the Commission ☐ Yes ☑ No
- arising out of the conduct of the business of an underwriter, former, dealer, municipal securities dealer, investment adviser, funding public or paid solicitor of purchasers of securities ☐ Yes ☑ No

(2) In any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within the court before the filing of the information required by Section 8(4)(b) of the Securities Act, that, at the time of filing of this offering statement, warrants, or expires, such person from engaging in continuing to engage in any conduct or practice:

- In connection with the acceptance or sale of any security ☐ Yes ☑ No
- involving the making of any false filing with the Commission ☐ Yes ☑ No
- arising out of the conduct of the business of an underwriter, former, dealer, municipal securities dealer, investment adviser, funding public or paid solicitor of purchasers of securities ☐ Yes ☑ No

(3) If any such person subject to a final order of a state securities commission or agency or officer of a state performing like functions, a state authority that supersizes or warrants, being, during associations of credit orders, a state insurance commission or a agency or officer of a state performing like functions, an appropriate federal banking agency, the U.S. Commercial Futures Trading Commission, or the National Credit Union Administration that:

1. at the time of the filing of this offering statement (see the person's form)
   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 associations or credit union activities ☐ Yes ☐ No
2. constitutes a true order based on a decision of any law or regulation that prohibits fraudulent,178c(s) or or shrugged conduct and for which the order was entered within the 18-year period ending in the date of the filing of this offering statement?
   ☐ Yes ☐ No

(4) If any such person subject to an order of the Commission entered pursuant to Section 5(2)(a) or 5(2)(c) of the Exchange Act or Section 2010(a) or (b) of the Investment Advisory Act of 1994 that, at the time of the filing of this offering statement:

1. accorded to several such person's organizations in a matter, (state, municipal securities, dealer, investment adviser or funding portal) ☐ Yes ☐ No
2. elects, certificates, or the activities, functions or operations of such person?
   ☐ Yes ☐ No
3. (a) such person that's being associated with any entity or from participating in the offering of any party (state) ☐ Yes ☐ No

(5) If any such person subject to any order of the Commission entered within five years before the filing of this offering statement has, at the time of the filing of this offering statement, either the person to cease and desist from submitting or passing a situation or future violation of:

1. any common law(s) and (have provision of the federal securities laws, including without limitation Section 5(1)(b) of the Securities Act, Section 8(2)(c) of the Exchange Act, Section 8(2)(d) of the Exchange Act and Section 5(2)(e) of the Investment Advisory Act of 1994 or any other rule or regulation thereunder) ☐ Yes ☐ No
2. Section 5 of the Securities Act? ☐ Yes ☐ No

(6) If any such person submitted or rejected from membership in, or submitted or signed from association with a member of, a registered federal securities exchange or a registered national or affiliated securities association for any act or omission to act (institutionally covered) inconsistent with such and equitable principles of fraud?

☐ Yes ☐ No

(7) If so, any such person filed (as a regulator or issuer), or not any such person or not, any such person named as an administrator in any registration statement or regulation in offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, due order, or order suspended for Resolution 8 exemption, or a any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a copy order or suspension order should be issued?

☐ Yes ☐ No

(8) If any such person subject to a limited States Postal Service false representation order entered within five years before the filing of the information required by Section 5(2)(b) of the Securities Act, or in any such person, at the time of filing of this offering statement, subject to a temporary redistribution order or maximum in addition with respect to a result offered by the United States Postal Service to constitute a change or decree 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 condition, order, judgment, decree, suspension, separation or tax occurred or been issued after May 18, 2016, then you are NOT eligible to rely on this exemption under Section 4(a)(3) of the Securities Act.

INSTRUCTIONS TO QUESTION 4: If a funder's name or title does not in the same, a statement must be filed in writing within 5 years after the filing of this offering statement. If a funder's name or title does not in the same, a statement must be filed in writing within 5 years after the filing of this offering statement.

If a person can register for his financial statements or any other information, a statement must be filed in writing within 5 years after the filing of this offering statement. If a funder's name or title does not in the same, a statement must be filed in writing within 5 years after the filing of this offering statement.

## OTHER MATERIAL INFORMATION

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

1. (1) any other material information presented to inventory and
2. (2) such further material information, if any, do not be necessary to make the required statements, at the right of the labor force or other 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 title ("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 (or 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 sale of Investors as detailed in the Lead Investor Agreement. In the event the Lead Investor suits 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 fixed ("Fund") for accredited investors for the purpose of investing in a non-regulation (constituting) offering of the Company. In such an 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 risk.

Although the Lead Investor may act in multiple cases with respect to the Company's offerings and may potentially be compensated for some of its services, the Lead Investor's goal is to minimize 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 change from the interests of Investors, as discussed in section 4 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., adult 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 center of (i) two (2) years of leading time 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.

The following table provides the information in English:

## ONGOING REPORTING

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

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

23. Once posted, the annual report may be found on the issuer's website at:
http://smart.treas.lawnet

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

1. the issuer is required to file reports under Exchange Act Sections 1(b)(1) or 1(b)(2).
2. the issuer has filed at least one annual report and has fewer than 500 holders of record.
3. the issuer has filed at least three annual reports and has held assets that do not exceed $10 million.
4. the issuer or another party purchaser or repurchaser will of the securities issued pursuant to Section 4(a)(1)(i), including any payment in full of debt securities or any complete redemption of redeemable securities, at the issuer's discretion or discretion in accordance with their law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird
Early Bird SMART Tire Subscription Agreement Feb 2023
SPV Subscription Agreement
SMART Tire Subscription Agreement Feb 2023

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Brian Yennie
Earl Cole

Appendix E: Supporting Documents

## Signatures

Intentional misstatements or omissions of facts constitute federal criminal violations. See 18 U.S.C. 3401.

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 - Early Bird
Early Bird SMART Tire Subscription Agreement Feb 2023
SPV Subscription Agreement
SMART Tire Subscription Agreement Feb 2023

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Brian Yennie

Earl Cole

Appendix E: Supporting Documents

Pursuant to the requirements of Sections 4(a)(1) and 4(c) of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.196 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.

The SMART Tire Company, Inc.

By

Brian Yennie

CTO

Pursuant to the requirements of Sections 4(a)(1) and 4(c) of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.196 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.

Earl Cole

CEO
2/15/2023

Brian Yennie

CTO
2/15/2023

The issuer is required to file reports on the financial statements of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.196 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.

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.

All the following documents will be used to determine the amount of Wefunder Portal to file:

Company's trust and lawful representative and attorney for EOL 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`

INVEST IN THE SMART TIRE COMPANY

## Reinventing tires w/NASA for $1T electric, autonomous and space industries

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

www.smart-tire.com

www.smart-tire.com

LEAD INVESTOR

**Thomas Wadlin** Senior Software Engineer, United National Motors, on Twitter, on Google

For investing with The SMART Tire Company because it has great value to both its equipment with autonomous vehicles as well as one of the powerful business, cycling, investor to reach the worldwide fuel efficient, safe and high performance future of transportation. He holds $1000 tires, and shares all his other company building the technology needed including the major fuel manufacturers. I am for among the first inborn of the MTA, one time and each had to use 'gambling' for full, however.

Invested $1,000 this round $3,000,000 previously

## Highlights

1. Hyundai Motors and Kia Official Collaboration
2. Exclusive NASA license & 5s new patent pending tire inventions
3. Multiple Global 500 Aerospace Customers with Space Industry Revenue
4. $300B market opportunity in terrestrial tires, key supplier to future $1T private space industry
5. 5000+ customer waiting list for our groundbreaking METLTM bicycle wheelsets
6. Patented space tire for the Mars and Moon supply chain
7. 12+ years and $10M+ in govt funding and research invested into this technology (different entity)
8. Partnerships: NASA, Hyundai, Kia, Felt Bicycles, The Ohio State University, University of Akron

## Our Team

**Earl Cole CEO**

Tectators: Reason, Stanford & University of Washington business program mentor, worked with mega knobs @Disney, @Rhonda, @Google, Proud father (x2), serial entrepreneur and unanimous Senior champion.

Pneumatic (air-filled) tires haven't changed much in 500 years. However, NASA has been working for decades developing new tire technologies for outer space. Our mission is to bring this space age innovation back down to earth, as we usher in a new era of electric and autonomous vehicles. Safer, cleaner transportation can impact all of our lives.

**Brian Yennie CTO**

3x cross-industry technical founder. Previously @IDEX, @Brownson, @Newscard. Creator of first eco-friendly virtual world for kids. National Mech Scheller, Owner / admin @CellcoStrong.

**Jim Benzing Principal Engineer**

R&D 100 Award Winner, original inventor of the laser spring tire, NASA consultant, 20+ tire patents. 43 years at Goodyear include developing production manufacturing equipment and oversizing factory reflouts on 4 continents.

**Charles Weinberg Senior Engineer, Shape Memory Alloys**

PhD in Mechanical Engineering from University of Minnesota. Studied structural design with shape memory alloys and co-authored papers on new nitrrol applications 8 forms.

**William Farah, Esq General Counsel, Venture Capital Advisor**

Entrepreneur & lawyer. Consultant for SOS Ventures. Director @ First Step Foundation and former ATP tour tennis pro.

**Karen Jones, MBA Advisor, Federal Aviation Administration**

Exclusive MSA with 20+ years experience working for the government in supply chain logistics and employee relations. Enterprise operations for the FAA in dealing with businesses, government and labor regulations within the aviation industry.

**Angela Helin Advisor & Investor**

Principal Lead Engineer, SpaceX

Brennan Swain | Patent / IP Counsel

## The SMART Tire Company

### NASA: Space Tire Company

In the 1960's, NASA began its own tire development for space exploration. You might recognize their first attempt, riding around on the moon:

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

The requirements were extreme. After all, the moon is a pretty harsh environment. But what has happened to that technology since? We've sent rovers to Mars, probes to deep space, but no more manned missions. Until now. With the US and other countries planning manned missions back to the moon, and someday to Mars, we're going to need truly incredible tires to get the job done.

Not to worry. For the past 12 years, with over $10M in research committed, NASA has continued developing the ultimate tire.

### Down to Earth: The SMART Tire Company

The SMART (Shape Memory Alloy Radial Technology) Tire Company was formed for the express purpose of commercializing a new category of tireless tire invented for the future of space exploration. Starting with the extreme capabilities of this Mars-grade technology, we've developed new, patented tires designs for cycling, automotive, trucking and aerospace applications. We've also created the ultimate lunar tire, capable of carrying multiple astronauts plus cargo across the south pole of the moon as part of the Artemis program (manned return to the moon).

The SMART Tire Company is disrupting an old but evergreen industry (tires) with new technology at the intersection of two rapidly emerging trillion dollar industries: electric vehicles (including autonomous) and space exploration. *Reinventing the tire* for the new era of transportation.

### Disrupting the $300B+ Global Tire Industry

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

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

### Problem

Despite our best efforts, flat tires are a fact of life -- about 1 flat per driver, per year in the USA. Tire failures contributes to over 20% of roadside emergencies.

and reduce fuel efficiency every day on every vehicle, as they slowly leak pressure.

The tire industry is incredibly dirty. Every year, over 50B pounds of used tires become waste. Most of this waste stream goes into landfills or is burned in enormous tire yards. 20-30% of all ocean micro-plastics come from tires.

Fuel efficiency is a major concern for every vehicle on and off the road. SMART tires are based on technology designed for vehicles running on solar power on another planet. Did you know up to 30% of fuel efficiency comes from the rolling resistance of tires?

Future applications are even more demanding. Electric vehicles carry heavier loads over longer distances, with less margin for error. An autonomous (driverless) ride is useless and unsafe with a flat tire, and we will need a technology originally invented to solve exactly that problem.

Space exploration is here to stay. Whether it's NASA, SpaceX, ESA or Blue Origin, the future of space includes land vehicles carrying heavier and heavier load. SMART Tire is the only company in the world developing tires capable of these kinds of missions.

## Today's Tires

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

Flat Tires

200M per year (USA)

Solid Waste

50B lbs per year (Global)

Ocean Plastics

20% of all ocean microplastics

Fuel Efficiency

30% of fuel efficiency from rolling resistance of tires

Electric Vehicles

Heavier electric vehicles wear out tires even faster, create safety hazards

## Solution

No flats. More fuel efficient, sustainable AND designed for the future of electric vehicles, autonomous vehicles and space applications. What's not to love?

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

The advantages of this type of tire are obvious. Not only does it eliminate potential losses with temperature or pressure affecting a gas-filled tire, it also eliminates the possibility of deflation.

- Car & Driver Magazine

## SMART Advantages

Buy goodbye to everyday tire problems

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

## Technology

Born from the mission requirements at NASA, these tires were originally invented to withstand continuous use on Mars. That means operating at extreme temperatures from down to -230C, never, ever going flat, remaining lightweight, and staying energy efficient.

The "superelastic" tire was invented when two different disciplines worked together. Having built previous extraterrestrial tires out of steel and aluminum, NASA had a problem: the tires were taking too much permanent damage from the terrain. Enter cutting edge material science: a special metal alloy (Nickel Titanium or NiTiTiO) that can recover completely from the same types of deformation that were damaging the steel.

Shape memory alloys are capable of undergoing phase transitions at the molecular level with reversible strains an order of magnitude more than ordinary materials, before undergoing permanent deformation. The use of a NiTi shape memory alloy produces a superelastic tire that is elastic like rubber, yet strong

time treatment.

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

Watch Heather Oreece, PhD, demonstrate the resiliency of a shape memory alloy tire, which can be crushed all the way to the wheel rim with no permanent damage!

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

Building on these superelastic properties, the chief engineer of The SMART Tire Company is also the original inventor of the lunar spring tire, which was awarded an R&D 100 award ('the Oscars of Innovation'). NASA Glenn Research Center, now collaborating with STC under a Space Act Agreement, originally developed the superelastic aspects.

The original Lunar Roving Vehicle contract was awarded in 1969 to Boeing, and the budget was over £102M (in 2022 USD). This kind of high-tech, high budget, low volume work is a perfect revenue source for SMART Tire. The Artemis program has manned return to the moon as its primary objective, and a budget of $10B.

Pictured below: a SMART lunar tire built to take advantage of superelastic materials, uses a patented structural design to be the first ever 'space tire' suited for heavy vehicles on the Moon and Mars. The tire weighs less than 18 pounds and is strong enough to carry manned vehicles and cargo at extreme extraterrestrial temperatures.

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

Building on this foundation, STC has developed terrestrial designs that leverage these same properties in an eco-friendly, fuel-efficient, and extremely durable (never flat) tire.

We are taking the magic of shape memory alloys, integrating them with rubber treads, and delivering a product which is literally the best of both worlds, from Mars to Earth!

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

A. 10-11

## Applications

The applications for a high performance airless tire are nearly endless, making up a significant portion of the tire industry, which stands to grow to $500B by 2030.

- Cycling: flats and tire inflation are an everyday pain
- Mobility Floats: constant tire maintenance causes expensive downtime
- Electric Vehicles: are heavier and harder on ordinary tires
- Autonomous: specific safety & maintenance concerns with flats
- Military: tires need to go off-road, get soldiers home safe, and survive
- Airlines: a commercial jet can save 25,000 lbs of jet fuel every year
- Space: future missions to the Moon and Mars need stronger, more reliable tires
- Trucking: where an 18 wheeler becomes a 10 wheeler, saves on fuel and never gets a flat
- Racing: consistently perform at the highest speeds and distances without tire failures

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

## Photo Gallery

Third Cover: Deep Green, Summer Line, Joseph's Fire and the World's Spring Line. SMART Tires: One, META, a design type.

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

## Competition

The global tire industry is highly fragmented, with the top 3 manufacturers (Bridgestone, 41 Michelin, 97 Goodyear) each holding less than 10% market share. No major competitor specializes in airless tires or has ever developed a high performing airless product. Current attempts are flat free, but are heavy, loud, have high rolling resistance, provide a rough ride, and are less fuel-efficient. Big tire companies are in no hurry to change the old system and business model they put into place (in the early 20th century) and continue to profit from today.

Intense airless tires have similar designs with the same flavor, loud, heavy, fuel coefficient, use even more rubber and aluminum, and with a rough ride.

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

No amount of rubber, polyurethane and plastic components can produce a competitive airless tire, as explained by the years of hybrid development. The approach.

This is the same old rubber & plastic technology, repeated and rebooted for over a century. The competition has invested billions of dollars in capital assets that revolve around rubber and pneumatic (air-filled) designs, with no end in sight.

In addition, the world is moving rapidly to electric vehicles, and people are asking, Do Electric Vehicles Need Special Tires? (spoiler alert: they sure do).

SMART tires replace conventional materials with the power of shape memory alloys, which are then integrated through proprietary methods with durable rubber trends for road use. Our tire technology is a legitimate disruptor and game-changer.

The SMART Tire Company is patent pending on several critical aspects required to integrate shape memory alloy tires with modern vehicles, including treads and wheels, and will aggressively defend our right to exclusively commercialize those inventions, worldwide.

Of course, one way the competition can capitalize on this airless revolution, is to license or acquire the technology from The SMART Tire Company.

## Team

The SMART Tire Company has a multidisciplinary team that combines deep tire

industry experience with material science, space exploration, early stage startups, intellectual property law, manufacturing and product marketing.

Experience isn't enough, though. We're also passionate about affecting change and giving back. Our founder, Earl, created the Perthes Kids Foundation, a global nonprofit charity to benefit children with a rare disease. CTO Brian Yennie's first business was an eco-friendly virtual world, that donated a portion of all proceeds to wildlife charities, a full decade before the Metaverse became a trend.

Revolutionizing the tire industry is not just a potential unicorn company in the making, it means cleaner and safer transportation for everyone, worldwide.

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

## Business Model

Our mission is to bring shape memory alloy tires to as many markets as possible, as quickly as possible by developing the core technology, and licensing or co-developing with the right global partners. We are currently building an intellectual property must around the technology through key US and international patents, nearing the launch of our beachhead product for market validation, and have secured our first contractual revenue from the largest aerospace company in the world, for one of the highest profile missions ever: the return of astronauts to the moon.

In July of 2003, Tesla was founded to disrupt one of the most successful inventions of all time: the combustion engine. Nearly 20 years later, electric vehicles are the future of transportation, and Tesla stock soared to a market cap of over $1 trillion.

Now, STC is after something else that affects the environmental impact, fuel efficiency and performance of every vehicle on and off the road: the tires. With this new innovation, The SMART Tire Company is poised to take a large and profitable share of the global tire market, which will grow to $500B/year by 2030 (not guaranteed).

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

## What's a beachhead product?

According to Bill Aulst, Managing Director of the Martin Trust Center for MIT Entrepreneurship, a beachhead market is the "holy grail of specificity". After hundreds of hours of customer discovery and research, STC has found the answer: micro-mobility. Be sure to check out our global media coverage in TechCrunch, Fast Company, Pink Bike, Mashable, Popular Science and TV networks CBS, ABC, FOX, TFI and many others, to get a glimpse of the excitement around our new SMART tire products.

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

Knowing we had found the right customers for the first ever SMA tires, SMART has developed a go-to-market strategy centered around a cost competitive carbon fiber wheelset with integrated SMART tires, and scooter wheels specially designed for urban mobility fleets.

Micromobility products are chosen to generate daily revenue in the fastest growing mobility segment, with lower regulatory requirements, faster time-to-market and preventing demand.

|  | Building | Location |
| --- | --- | --- |
| From | Transparent/Advisory/Time/Attachment | Research & research related |
| Research School | MD, MN | MD |
| Leisure Project | MD-2023 | MD-2024 |
| Cost | $200 per line ($300 in long-term) education | $20 per line |
| Charge | DM/Cashier-Blue ($300-$400 per 1 year time) | Plant ($400 per 1 year time) (MD-2024) |
| Value Drop | Highest performance at 1 year time (for market) | New data as needed by the current plan to meet market demand and market standards |
| Thanking | DM/Cashier-Blue ($400-$600 per 1 year time) (for 1 year time) (for market) (for market) (for market) | Type: Mktg by 1000 per line |

### Key Accomplishments

- Space Act Agreement with NASA Glenn Research Center to continue optimizing shape memory alloy tire designs
- Reduced the material cost of our bicycle tires by 90% since 2020, as part of our go-to-market strategy
- Developed world's first heavy load space tire, for manned missions to the Moon and Mars
- Signed contract w/ Fortune 100 aerospace company for lunar tire development
- Patent pending methods for wheel and rubber tread integrations with shape memory alloys
- University collaboration to develop special alloy joining methods
- Opened a state-of-the-art 5000 sq ft research & development facility in Akron, Ohio
- Recently exhibited at major conferences in San Francisco (TechCrunch), London (MOVE) & Paris (Viva Technology) with overwhelming excitement from attendees

### Partners

A few of the great companies and organizations working with The SMART Tire Company are listed below. Early partners include large aerospace companies, micromobility providers, bike manufacturers, and world-class research institutions. We are currently developing relationships with additional automakers and private space companies.

#### Partners

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

"ALONE WE CAN DO SO LITTLE; TOGETHER WE CAN DO SO MUCH."

### One Last Word

Join us! Made in the USA, eco-friendly, NASA-invented technology, backed by YOU, our visionary, amazing supporters. Help us achieve our goal of *Reimagining the wheel*TM and building the next great American tire company... The SMART Tire Company!

To learn even more, visit https://smarttirecompany.com, or drop us a message at hello@smarttirecompany.com.

To join the waiting list for SMART bicycle tires, please visit our cycling page at https://smarttirecompany.com/cycling

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

DISRUPTING THE $300B GLOBAL TIRE MARKET

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

Reimagining the wheel.TM
Reinventing the tire.TM

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

# **The Smart Tire Company II (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**The Smart Tire Company II** (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 **The SMART Tire Company, Inc.** (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

The Smart Tire Company II, 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 The SMART Tire Company, Inc. SECURITIES BY The Smart Tire Company II, A SERIES OF WEFUNDER SPV, LLC, A DELAWARE LIMITED LIABILITY COMPANY

Type of Security: Priced Round

Terms $5 per share and a $54.5M pre-money valuation

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%3D0001854861&first=2016

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

# **The Smart Tire Company II EB (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**The Smart Tire Company II EB** (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 **The SMART Tire Company, Inc.** (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

The Smart Tire Company II EB, 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 The SMART Tire Company, Inc. SECURITIES BY The Smart Tire Company, LLC. A SERIES OF WEFUNDER SPV, LLC. A DELAWARE LIMITED LIABILITY COMPANY

Type of Security: Priced Round

Terms: $4.60 per share and a $50.1M pre-money valuation

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%3D0001854861&first=2016

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

# THE SMART TIRE COMPANY SERIES SEED PREFERRED STOCK INVESTMENT AGREEMENT

This Series Seed Preferred Stock Investment Agreement (this "Agreement") is dated as of the Agreement Date and is between the Company, the Purchasers and the Key Holders (as set forth on Schedule 1).

The parties agree as follows:

1. DEFINITIONS. Capitalized terms used and not otherwise defined in this Agreement or the Exhibits and Schedules thereto have the meanings set forth in Exhibit A.
2. INVESTMENT. Subject to the terms and conditions of this Agreement, including the Agreement Terms set forth in Exhibit B, (i) each Purchaser shall purchase at the applicable Closing and the Company shall sell and issue to each Purchaser at such Closing that number of shares of Series Seed-5 Preferred Stock and Series Seed-6 Preferred Stock set forth opposite such Purchaser's name on Schedule 1, at a price per share equal to the Series Seed-5 Purchase Price and the Series Seed-6 Purchase Price; and (ii) each Purchaser, the Company, and each Key Holder agrees to be bound by the obligations set forth in this Agreement and to grant to the other parties hereto the rights set forth in this Agreement.
3. ENTIRE AGREEMENT. This Agreement (including the Exhibits and Schedules hereto) together with the Restated Charter constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

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# EXHIBIT A

# DEFINITIONS

# 1. OVERVIEW DEFINITIONS.

"Agreement Date" means [EFFECTIVE DATE]

"Company" means The Smart Tire Company

"Governing Law" means the laws of the state of Delaware.

"Dispute Resolution Jurisdiction" means the federal or state courts located in the state of Delaware.

"State of Incorporation" means Delaware.

"Stock Plan" means 2021 Equity Incentive Plan.

# 2. BOARD COMPOSITION DEFINITIONS.

"Board Designee" means any member of the Board designated pursuant to Section 7 of this Agreement.

"Common Board Member Count" means two.

"Common Control Holders" means the Key Holders who are then providing services to the Company as a consultant or employee.

# 3. TERM SHEET DEFINITIONS.

"Major Purchaser Dollar Threshold" means $500,000.

"Purchase Price" means $4.60 per share with respect to the Series Seed-5 Preferred Stock and $5.00 per share with respect to the Series Seed-6 Preferred Stock.

"Series Seed-5 Purchase Price" means $4.60 per share

"Series Seed-6 Purchase Price" means $5.00 per share

"Total Series Seed Investment Amount" means $4,921,816.60

"Unallocated Post-Money Option Pool Percent" means 8.72%.

# 4. RESULTING CAP TABLE DEFINITIONS.

"Common Shares Issued and Outstanding Pre-Money" means 10,890,919 shares.

"Total Post-Money Shares Reserved for Option Pool" means 1,000,000 shares.

"Number of Issued And Outstanding Options" means 50,000.

"Unallocated Post-Money Option Pool Shares" means 950,000.

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## SCHEDULE 1

## SCHEDULE OF PURCHASERS & KEY HOLDERS

PURCHASERS:

| Name, Address and E-Mail of Purchaser | Series Seed-5 Preferred Stock Shares Purchased | Series Seed-6 Preferred Stock Shares Purchased |  |  |  | Cash Payment | Total Purchase Amount |
| --- | --- | --- | --- | --- | --- | --- | --- |

Schedule 1-1

## SCHEDULE 1, Cont.
## KEY HOLDERS:

| Name, Address and E-Mail of Key Holder | Shares of Common Stock Held |
| --- | --- |
| Earl Cole | 4,500,000 |
| Brian Yennie | 4,500,000 |

Schedule 1-3

# EXHIBIT B

# AGREEMENT TERMS

# 1. PURCHASE AND SALE OF SERIES SEED PREFERRED STOCK.

# 1.1 Sale and Issuance of Series Seed Preferred Stock.

1.1.1 The Company shall adopt and file the Company's Second Amended and Restated Certificate of Incorporation, in substantially the form of Exhibit C attached to this Agreement (as the same may be amended, restated, supplemented or otherwise modified from time to time) (the "Restated Charter") with the Secretary of State of the State of Incorporation on or before the Initial Closing.

1.1.2 Subject to the terms and conditions of this Agreement, (i) each investor listed as a "Purchaser" on Schedule 1 (each, a "Purchaser") shall purchase at the applicable Closing and the Company agrees to sell and issue to each Purchaser at such Closing that number of shares of Series Seed Preferred-5 Stock and Series Seed Preferred-6 Stock of the Company (together, the "Series Seed Preferred Stock") set forth opposite such Purchaser's name on Schedule 1, at a purchase price per share equal to the Purchase Price. The Purchase Price will equal $4.60 per share until the Company has cumulatively sold at least 108,696 of Series Seed Preferred-5 Stock for total consideration of $500,001.60, and will increase to $5.00 per share until the Company has cumulatively sold 884,363 shares of Series Seed Preferred-6 Stock for a total of $4,421,815.00.

# 1.2 Closing; Delivery.

1.2.1 The initial purchase and sale of the shares of Series Seed Preferred Stock hereunder shall take place remotely via the exchange of documents and signatures on the Agreement Date or the subsequent date on which one or more Purchasers execute counterpart signature pages to this Agreement and deliver the Purchase Price to the Company (which date is referred to herein as a "Initial Closing").

1.2.2 At any time and from time to time during the one hundred twenty (120) day period immediately following the Initial Closing (the "Additional Closing Period"), the Company may, at one or more additional closings (each an "Additional Closing" and together with the Initial Closing, each, a "Closing"), without obtaining the signature, consent or permission of any of the Purchasers in the Initial Closing or any prior Additional Closing, offer and sell to investors (the "New Purchasers"), at a per share purchase price equal to the Purchase Price, up to that number of shares of Series Seed Preferred Stock that is equal to 108,696 shares of Series Seed Preferred-5 Stock multiplied by the Series Seed-5 Purchase Price plus 884,363 shares of Series Seed Preferred-6 Stock multiplied by the Series Seed-6 Purchase Price (the "Total Shares Authorized for Sale") less the number of shares of Series Seed Preferred Stock actually issued and sold by the Company at the Initial Closing and any prior Additional Closings. New Purchasers may include persons or entities who are already Purchasers under this Agreement. Each of the New Purchasers purchasing shares of Series Seed Preferred Stock at each Additional Closing will execute counterpart signature pages to this Agreement and each New Purchaser will, upon delivery by such New Purchaser and acceptance by the Company of such New Purchaser's signature page and delivery of the aggregate Purchase Price by such New Purchaser to the Company, become a party to, and bound by, this Agreement to the same extent as if such New Purchaser had been a Purchaser at the Initial Closing and each such New Purchaser shall be deemed to be a Purchaser for all purposes under this Agreement as of the date of the applicable Additional Closing.

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1.2.3 Promptly following each Closing, if required by the Company's governing documents, the Company shall deliver to each Purchaser participating in such Closing a certificate representing the shares of Series Seed Preferred Stock being purchased by such Purchaser at such Closing against payment of the Purchase Price therefor by check payable to the Company, by wire transfer to a bank account designated by the Company, by cancellation or conversion of indebtedness or other convertible securities of the Company issued primarily for capital raising purposes (e.g., simple agreement for future equity) to such Purchaser or by any combination of such methods.

2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby represents and warrants to each Purchaser that the following representations are true and complete as of the date of the Agreement Date, except as otherwise indicated.

2.1 Organization, Good Standing, Corporate Power and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Incorporation and has all corporate power and corporate authority required (a) to carry on its business as presently conducted and as presently proposed to be conducted and (b) to execute, deliver and perform its obligations under this Agreement. The Company is duly qualified to transact business as a foreign corporation and is in good standing under the laws of each jurisdiction in which the failure to so qualify or be in good standing would have a material adverse effect on the business, assets (including intangible assets), liabilities, financial condition, property, or results of operations of the Company.

### 2.2 Capitalization.

2.2.1 The authorized capital of the Company consists, immediately prior to the Initial Closing (unless otherwise noted), of the following:

(a) Common stock of the Company (the "Common Stock"), of which that number of shares of Common Stock equal to (a) the Common Shares Issued and Outstanding Pre-Money are issued and outstanding as of immediately prior to the Initial Closing, (b) the Total Post-Money Shares Reserved for Option Pool have been reserved for issuance pursuant to the Stock Plan, and of such Total Post-Money Shares Reserved for Option Pool, that number of shares of Common Stock equal to the Number of Issued And Outstanding Options are currently subject to outstanding options and that number of shares of Common Stock equal to the Unallocated Post-Money Option Pool Shares remain available for future issuance to officers, directors, employees and consultants pursuant to the Stock Plan. The ratio determined by dividing (x) the Unallocated Post-Money Option Pool Shares by (y) the Fully-Diluted Share Number (as defined below) is equal to the Unallocated Post-Money Option Pool Percent. All of the outstanding shares of Common Stock are duly authorized, validly issued, fully paid and nonassessable and were issued in material compliance with all applicable federal and state securities laws. The Stock Plan has been duly adopted by the Board of Directors of the Company (the "Board") and approved by the Company's stockholders. For purposes of this Agreement, the term "Fully-Diluted Share Number" shall mean that number of shares of the Company's capital stock equal to the sum of (i) all shares of the Company's capital stock (on an as-converted basis) issued and outstanding, assuming exercise or conversion of all options, warrants and other convertible securities and (ii) all shares of the Company's capital stock reserved and available for future grant under any equity incentive or similar plan.

(b) 1,886,765 shares of the preferred stock of the Company, par value $0.0001 per share (the "Preferred Stock"), of which 16,996 shares have been designated Series Seed-1 Preferred Stock, 16,996 of which are issued and outstanding immediately prior to the Initial Closing; 691,026 shares have been designated Series Seed-2 Preferred Stock, 691,026 of which are issued and outstanding immediately prior to the Initial Closing; 173,728 shares have

B-2

been designated Series Seed-3 Preferred Stock, 173,728 of which are issued and outstanding immediately prior to the Initial Closing; 11,956 shares have been designated Series Seed-4 Preferred Stock, 11,956 of which are issued and outstanding immediately prior to the Initial Closing; 108,696 shares have been designated Series Seed-5 Preferred Stock, none of which are issued and outstanding immediately prior to the Initial Closing; and 884,363 shares have been designated Series Seed-6 Preferred Stock, none of which are issued and outstanding immediately prior to the Initial Closing.

2.2.2 There are no outstanding preemptive rights, options, warrants, conversion privileges or rights (including but not limited to rights of first refusal or similar rights), orally or in writing, to purchase or acquire any securities from the Company including, without limitation, any shares of Common Stock, or Preferred Stock, or any securities convertible into or exchangeable or exercisable for shares of Common Stock or Preferred Stock, except for (a) the conversion privileges of the Series Seed Preferred Stock pursuant to the terms of the Restated Charter and (b) the securities and rights described in this Agreement.

2.3 Subsidiaries. The Company does not currently own or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, limited liability company, association, or other business entity. The Company is not a participant in any joint venture, partnership or similar arrangement.

2.4 Authorization. All corporate action has been taken, or will be taken prior to the applicable Closing, on the part of the Board and stockholders that is necessary for the authorization, execution and delivery of this Agreement by the Company and the performance by the Company of the obligations to be performed by the Company as of the date hereof under this Agreement. This Agreement, when executed and delivered by the Company, shall constitute the valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, or (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

2.5 Valid Issuance of Shares. The shares of Series Seed Preferred Stock, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will be duly authorized, validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by a Purchaser.

3. REPRESENTATIONS AND WARRANTIES AND COVENANTS OF THE PURCHASERS. Each Purchaser hereby represents and warrants to the Company, severally and not jointly, as follows.

3.1 Authorization. The Purchaser has full power and authority to enter into this Agreement. This Agreement, when executed and delivered by the Purchaser, will constitute a valid and legally binding obligation of the Purchaser, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application relating to or affecting the enforcement of creditors' rights generally, or (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

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3.2 Economic Risk. Purchaser has such knowledge, skill and experience in business, financial and investment matters that Purchaser is capable of evaluating the merits and risks of an investment in the Series Seed Preferred Stock. With the assistance of Purchaser's own professional advisors, to the extent that Purchaser has deemed appropriate, Purchaser has made its own legal, tax, accounting and financial evaluation of the merits and risks of an investment in the Series Seed Preferred Stock and the consequences of this Agreement. Purchaser has considered the suitability of the Series Seed Preferred Stock as an investment in light of its own circumstances and financial condition and Purchaser is able to bear the risks associated with an investment in the Series Seed Preferred Stock and its authority to invest in the Series Seed Preferred Stock.

### 3.3 Purchase Entirely for Own Account.

3.2.1 This Agreement is made with the Purchaser in reliance upon the Purchaser's representation to the Company, which by the Purchaser's execution of this Agreement, the Purchaser hereby confirms, that the shares of Series Seed Preferred Stock to be acquired by the Purchaser will be acquired for investment for the Purchaser's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the shares of Series Seed Preferred Stock. The Purchaser has not been formed for the specific purpose of acquiring the shares of Series Seed Preferred Stock.

3.2.2 The undersigned agrees that the undersigned will not sell, assign, pledge, give, transfer or otherwise dispose of the Securities or any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to Section 227.501 of Regulation Crowdfunding (or pursuant to Rule 144 if the Purchaser is an accredited investor and is purchasing the Securities pursuant to Regulation D).

3.4 3.2.3 Purchaser acknowledges that neither the Company nor any other person offered to sell the Securities to it by means of any form of general solicitation or advertising, except online advertisement through the WeFunder.com, including but not limited to: (A) any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio or (B) any seminar or meeting whose attendees were invited by any general solicitation or general advertising.

3.5 HIGH RISK INVESTMENT. THE UNDERSIGNED UNDERSTANDS THAT AN INVESTMENT IN THE SECURITIES INVOLVES A HIGH DEGREE OF RISK. The undersigned acknowledges that (a) any projections, forecasts or estimates as may have been provided to the undersigned are purely speculative and cannot be relied upon to indicate actual results that may be obtained through this investment; any such projections, forecasts and estimates are based upon assumptions which are subject to change and which are beyond the control of the Company or its management; (b) the tax effects which may be expected by this investment are not susceptible to absolute prediction, and new developments and rules of the Internal Revenue Service (the "IRS"), audit adjustment, court decisions or legislative changes may have an adverse effect on one or more of the tax consequences of this investment; and (c) the undersigned has been advised to consult with his own advisor regarding legal matters and tax consequences involving this investment.

3.6 Restricted Securities. The Purchaser understands that the Series Seed Preferred Stock are restricted from transfer for a period of time under applicable federal securities laws and that the Securities Act and the rules of the SEC provide in substance that the undersigned may dispose of the

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Series Seed Preferred Stock only pursuant to an effective registration statement under the Securities Act, an exemption therefrom or as further described in Section 227.501 of Regulation Crowdfunding (or in Rule 144 if the Purchaser is an accredited investor and is purchasing the Series Seed Preferred Stock pursuant to Regulation D), after which certain state restrictions may apply. The undersigned understands that the Company has no obligation or intention to register any of the Series Seed Preferred Stock, or to take action so as to permit sales pursuant to the Securities Act. Even if and when the Series Seed Preferred Stock become freely transferable, a secondary market in the Series Seed Preferred Stock may not develop. Consequently, the undersigned understands that the undersigned must bear the economic risks of the investment in the Series Seed Preferred Stock for an indefinite period of time.

3.7 Including the amount set forth on Schedule 1, in the past 12 month period, the Purchaser has not exceeded the investment limit as set forth in Rule 100(a)(2) of Regulation Crowdfunding.

3.8 No Public Market. The Purchaser understands that no public market now exists for the shares of Series Seed Preferred Stock, and that the Company has made no assurances that a public market will ever exist for the shares of Series Seed Preferred Stock.

3.9 Legends. The Purchaser understands that the shares of Series Seed Preferred Stock and any securities issued in respect of or exchange for the shares of Series Seed Preferred Stock, may bear any one or more of the following legends: (a) any legend set forth in, or required by, this Agreement; (b) any legend required by the securities laws of any state to the extent such laws are applicable to the shares of Series Seed Preferred Stock represented by the certificate so legended; and (c) the following legend:

"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED."

3.10 Exculpation Among Purchasers. The Purchaser acknowledges that it is not relying upon any person, other than the Company and its officers and directors, in making its investment or decision to invest in the Company. The Purchaser agrees that neither any Purchaser nor the respective controlling persons, officers, directors, partners, agents, or employees of any Purchaser shall be liable to any other Purchaser for any action heretofore taken or omitted to be taken by any of them in connection with the purchase of the shares of Series Seed Preferred Stock.

3.11 Residence. If the Purchaser is an individual, then the Purchaser resides in the state identified in the address of the Purchaser set forth on the signature page hereto and/or on Schedule 1; if the Purchaser is a partnership, corporation, limited liability company or other entity, then the office or offices of the Purchaser in which its principal place of business is identified in the address or addresses of the Purchaser set forth on the signature page hereto and/or on Schedule 1. In the event that the Purchaser is not a resident of the United States, such Purchaser hereby agrees to make such additional representations and warranties relating to such Purchaser's status as a non-United States resident as reasonably may be requested by the Company and to execute and deliver such documents or agreements

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as reasonably may be requested by the Company relating thereto as a condition to the purchase and sale of any shares of Series Seed Preferred Stock by such Purchaser.

3.12 No "Bad Actor" Designees. If the Purchaser has the right to designate or participate in the designation of a Board Designee, the Purchaser represents and warrants to the Company that, to the Purchaser's knowledge, no Disqualification Event is applicable to the Purchaser's initial designee named above except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii-iv) or (d)(3) of the Securities Act is applicable. Any Board Designee to whom any Disqualification Event is applicable, except for a Disqualification Event as to which Rule 506(d)(2)(ii-iv) or (d)(3) of the Securities Act is applicable, is hereinafter referred to as a "Disqualified Designee". The Purchaser with the right to designate or participate in the designation of a Board Designee covenants and agrees (A) not to designate or participate in the designation of any Board Designee who, to the Purchaser's knowledge, is a Disqualified Designee and (B) that in the event the Purchaser becomes aware that any individual previously designated by the Purchaser is or has become a Disqualified Designee, the Purchaser will as promptly as practicable take such actions as are necessary to remove such Disqualified Designee from the Board and designate a replacement Board Designee who is not a Disqualified Designee.

#### 4. COVENANTS OF THE COMPANY.

#### 4.1 Information Rights.

4.1.1 Basic Financial Information. The Company shall furnish to each Purchaser holding that number of shares equal to or in excess of the quotient determined by dividing (x) the Major Purchaser Dollar Threshold by (y) the Series Seed-6 Purchase Price, rounded up to the next whole share (as adjusted for stock splits, stock dividends, combinations, recapitalizations or the like) (a "Major Purchaser") when available (1) 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 income statement, and an unaudited statement of cash flows, all prepared in accordance with generally accepted accounting principles and practices; and (2) 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 income statement, and an unaudited statement of cash flows, 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.

4.1.2 Confidentiality. Anything in this Agreement to the contrary notwithstanding, no Purchaser by reason of this Agreement shall have access to any trade secrets or confidential information of the Company. The Company shall not be required to comply with any information rights of any Purchaser whom the Company reasonably determines to be a competitor or an officer, employee, director, or holder of ten percent (10%) or more of a competitor. Each Purchaser shall keep confidential and shall 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 Agreement other than to any of the Purchaser's attorneys, accountants, consultants, and other professionals, to the extent necessary to obtain their services in connection with monitoring the Purchaser's investment in the Company.

4.1.3 Inspection Rights. The Company shall permit each Major Purchaser to visit and inspect the Company's properties, to examine its books of account and records and to discuss the Company's affairs, finances and accounts with its officers, all at such reasonable times as may be requested by such Major Purchaser.

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4.2 Additional Rights and Obligations. If the Company issues securities in its next equity financing after the date hereof (the "Next Financing") that (i) (a) have rights, preferences or privileges that are more favorable than the terms of the shares of Series Seed Preferred Stock, such as price-based anti-dilution protection, or (b) provide all such future investors other contractual terms such as registration rights, and (ii) is approved as qualifying as a Next Financing by a majority of the then-outstanding shares of Series Seed Preferred Stock held by all Purchasers, which approval shall not be unreasonably withheld, the Company shall provide substantially equivalent rights to the Purchasers with respect to the shares of Series Seed Preferred Stock (with appropriate adjustment for economic terms or other contractual rights), subject to such Purchaser's execution of any documents, including, if applicable, investor rights, co-sale, voting, and other agreements, executed by the investors purchasing securities in the Next Financing (such documents, the "Next Financing Documents"). Any Major Purchaser will remain a Major Purchaser for all purposes in the Next Financing Documents to the extent such concept exists. The Company shall pay the reasonable fees and expenses, not to exceed $5,000 in the aggregate, of one counsel for the Purchasers in connection with the Purchasers' review, execution, and delivery of the Next Financing Documents. Notwithstanding anything herein to the contrary, subject to the provisions of Section 8.11, upon the execution and delivery of the Next Financing Documents by Purchasers holding a majority of the then-outstanding shares of Series Seed Preferred Stock held by all Purchasers, this Agreement (excluding any then-existing and outstanding obligations) shall be amended and restated by and into such Next Financing Documents and shall be terminated and of no further force or effect.

4.3 Assignment of Company's Preemptive Rights. The Company shall obtain at or prior to the Initial Closing, and shall maintain, a right of first refusal with respect to transfers of shares of Common Stock by each holder thereof, subject to certain standard exceptions. If the Company elects not to exercise its right of first refusal with respect to a proposed transfer of the Company's outstanding securities by any Key Holder, the Company shall assign such right of first refusal to the Major Purchasers. In the event of such assignment, each Major Purchaser shall have a right to purchase that portion of the securities proposed to be transferred by such Key Holder equal to the ratio of (a) the number of shares of the Company's Common Stock issued or issuable upon conversion of the shares of Series Seed Preferred Stock owned by such Major Purchaser, to (b) the number of shares of the Company's Common Stock issued or issuable upon conversion of the shares of Series Seed Preferred Stock owned by all Major Purchasers.

4.4 Reservation of Common Stock. The Company shall at all times reserve and keep available, solely for issuance and delivery upon the conversion of the Series Seed Preferred Stock, all Common Stock issuable from time to time upon conversion of that number of shares of Series Seed Preferred Stock equal to the Total Shares Authorized for Sale, regardless of whether or not all such shares have been issued at such time.

# 5. RESTRICTIONS ON TRANSFER; DRAG ALONG.

5.1 Limitations on Disposition. Each person owning of record shares of Common Stock of the Company issued or issuable pursuant to the conversion of the shares of Series Seed Preferred Stock and any shares of Common Stock of the Company issued as a dividend or other distribution with respect thereto or in exchange therefor or in replacement thereof (collectively, the "Securities") or any assignee of record of Securities (each such person, a "Holder") shall not make any disposition of all or any portion of any Securities unless:

(a) there is then in effect a registration statement under the Securities Act, covering such proposed disposition and such disposition is made in accordance with such registration statement; or

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(b) such Holder has notified the Company of the proposed disposition and has furnished the Company with a statement of the circumstances surrounding the proposed disposition, and, at the expense of such Holder or its transferee, with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such securities under the Securities Act.

Notwithstanding the provisions of Sections 5.1(a) and (b), no such registration statement or opinion of counsel will be required: (i) for any transfer of any Securities in compliance with the Securities and Exchange Commission's Rule 144 or Rule 144A, or (ii) for any transfer of any Securities by a Holder that is a partnership, limited liability company, a corporation, or a venture capital fund to (A) a partner of such partnership, a member of such limited liability company, or stockholder of such corporation, (B) an affiliate of such partnership, limited liability company or corporation (including, any affiliated investment fund of such Holder), (C) a retired partner of such partnership or a retired member of such limited liability company, (D) the estate of any such partner, member, or stockholder, or (iii) for the transfer without additional consideration or at no greater than cost by gift, will, or intestate succession by any Holder to the Holder's spouse or lineal descendants or ancestors or any trust for any of the foregoing; provided that, in the case of clauses (ii) and (iii), the transferee agrees in writing to be subject to the terms of this Agreement to the same extent as if the transferee were an original Purchaser under this Agreement.

5.2 "Market Stand-Off" Agreement. To the extent requested by the Company or an underwriter of securities of the Company, each Holder and Key Holder, and any transferee thereof (each, a "Stockholder"), will not, without the prior written consent of the managing underwriters in the IPO (as defined below), offer, sell, make any short sale of, grant or sell any option for the purchase of, lend, pledge, otherwise transfer or dispose of (directly or indirectly), enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership (whether any such transaction is described above or is to be settled by delivery of Securities or other securities, in cash, or otherwise), any Securities or other shares of stock of the Company then owned by such Stockholder, or enter into an agreement to do any of the foregoing, for up to 180 days following the effective date of the registration statement of the initial public offering of the Company (the "IPO") filed under the Securities Act. For purposes of this Section 5.2, "Company" includes any wholly owned subsidiary of the Company into which the Company merges or consolidates. The Company may place restrictive legends on the certificates representing the shares subject to this Section 5.2 and may impose stop transfer instructions with respect to the Securities and such other shares of stock of each Stockholder (and the shares or securities of every other Person subject to the foregoing restriction) until the end of such period. Each Stockholder will enter into any agreement reasonably required by the underwriters to the IPO to implement the foregoing within any reasonable timeframe so requested. The underwriters for any IPO are intended third-party beneficiaries of this Section 5.2 and will have the right, power and authority to enforce the provisions of this Section 5.2 as though they were parties hereto.

5.3 Drag Along Right. If a Deemed Liquidation Event (as defined in the Restated Charter) is approved by each of (i) the holders of a majority of the shares of Common Stock then-outstanding (other than those issued or issuable upon conversion of the shares of Series Seed Preferred Stock), (ii) the holders of a majority of the shares of Common Stock then issued or issuable upon conversion of the shares of Series Seed Preferred Stock then-outstanding and (iii) the Board, then each Stockholder shall vote (in person, by proxy or by action by written consent, as applicable) all shares of capital stock of the Company now or hereafter directly or indirectly owned of record or beneficially by such Stockholder (collectively, the "Shares") in favor of, and adopt, such Deemed Liquidation Event and to execute and deliver all related documentation and take such other action in support of the Deemed Liquidation Event as may reasonably be requested by the Company to carry out the terms and provision of this Section 5.3, including executing and delivering instruments of conveyance and transfer, and any

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purchase agreement, merger agreement, indemnity agreement, escrow agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances) and any similar or related documents. The obligation of any party to take the actions required by this Section 5.3 will not apply to a Deemed Liquidation Event if the other party involved in such Deemed Liquidation Event is an affiliate or stockholder of the Company holding more than 10% of the voting power of the Company. "Stockholder" means each Holder and Key Holder, and any transferee thereof.

5.4 Exceptions to Drag Along Right. Notwithstanding the foregoing, a Stockholder need not comply with Section 5.3 above in connection with any proposed Sale of the Company (the "Proposed Sale") unless:

(a) any representations and warranties to be made by the Stockholder in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such Shares, including representations and warranties that (i) the Stockholder holds all right, title and interest in and to the Shares the Stockholder purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of the Stockholder in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by the Stockholder have been duly executed by the Stockholder and delivered to the acquirer and are enforceable against the Stockholder in accordance with their respective terms and, (iv) neither the execution and delivery of documents to be entered into in connection with the transaction, nor the performance of the Stockholder's obligations thereunder, will cause a breach or violation of the terms of any agreement, law, or judgment, order, or decree of any court or governmental agency;

(b) the Stockholder will not be liable for the inaccuracy of any representation or warranty made by any other Person in connection with the Proposed Sale, other than the Company (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 stockholder of any identical representations, warranties and covenants provided by all stockholders);

(c) the liability for indemnification, if any, of the Stockholder in the Proposed Sale and for the inaccuracy of any representations and warranties made by the Company or its Stockholders 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 stockholder of any identical representations, warranties, and covenants provided by all stockholders), and except as required to satisfy the liquidation preference of the Series Seed Preferred Stock, if any, is pro rata in proportion to, and does not exceed, the amount of consideration paid to such Stockholder in connection with such Proposed Sale;

(d) liability will be limited to the Stockholder's applicable share (determined based on the respective proceeds payable to each Stockholder in connection with the Proposed Sale in accordance with the provisions of the Restated Charter) of a negotiated aggregate indemnification amount that applies equally to all Stockholders but that in no event exceeds the amount of consideration otherwise payable to the Stockholder in connection with the Proposed Sale, except with respect to claims related to fraud by the Stockholder, the liability for which need not be limited as to the Stockholder;

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(e) upon the consummation of the Proposed Sale, (i) each holder of each class or series of the Company's stock will receive the same form of consideration for their shares of such class or series as is received by other holders in respect of their shares of such same class or series of stock unless the holders of a majority of Series Seed Preferred Stock elect otherwise, (ii) each holder of a series of Series Seed Preferred Stock will receive the same amount of consideration per share of such series of Series Seed Preferred Stock as is received by other holders in respect of their shares of such same series, (iii) each holder of Common Stock will receive the same amount of consideration per share of Common Stock as is received by other holders in respect of their shares of Common Stock, and (iv) unless the holders of at least a majority of the Series Seed Preferred Stock elect to receive a lesser amount, the aggregate consideration receivable by all holders of the Preferred Stock and Common Stock shall be allocated among the holders of Preferred Stock and Common Stock on the basis of the relative liquidation preferences to which the holders of each respective series of Preferred Stock and the holders of Common Stock are entitled in a Deemed Liquidation Event (assuming for this purpose that the Proposed Sale is a Deemed Liquidation Event) in accordance with the Company's Restated Charter in effect immediately prior to the Proposed Sale.

5.5 Additional Stockholders. In the event that, after the Agreement Date, the Company enters into an agreement with any Person to issue shares of capital stock of the Company to such Person, following which such Person will hold shares of capital stock of the Company constituting 1% or more of the Company's then outstanding capital stock (treating for this purpose all shares of Common Stock issuable upon exercise of or conversion of outstanding options, warrants or convertible securities, as if exercised and/or converted or exchanged), then the Company will cause such Person, as a condition precedent to entering into such agreement, to become a party to this Agreement by executing a counterpart signature page to this Agreement or an adoption agreement in a form reasonably satisfactory to the Company, agreeing to be bound by and subject to the terms of this Agreement as a Stockholder and thereafter such Person will be deemed a Stockholder for all purposes under this Agreement.

# 6. PARTICIPATION RIGHT.

6.1 General. Each Major Purchaser has the right of first refusal to purchase the Major Purchaser's Pro Rata Share of any New Securities (as defined below) that the Company may from time to time issue after the date of this Agreement, provided, however, the Major Purchaser will have no right to purchase any such New Securities if the Major Purchaser cannot demonstrate to the Company's reasonable satisfaction that such Major Purchaser is at the time of the proposed issuance of such New Securities an "accredited investor" as such term is defined in Regulation D under the Securities Act. A Major Purchaser's "Pro Rata Share" for means the ratio of (a) the number of shares of the Company's Common Stock issued or issuable upon conversion of the shares of Series Seed Preferred Stock owned by such Major Purchaser, to (b) the Fully-Diluted Share Number.

6.2 New Securities. "New Securities" means any Common Stock or Preferred Stock, whether now authorized or not, and rights, options or warrants to purchase Common Stock or Preferred Stock, and securities of any type whatsoever that are, or may become, convertible or exchangeable into Common Stock or Preferred Stock; provided, however, that "New Securities" does not include: (a) shares of Common Stock issued or issuable upon conversion of any outstanding shares of Preferred Stock; (b) shares of Common Stock or Preferred Stock issuable upon exercise of any options, warrants, or rights to purchase any securities of the Company outstanding as of the Agreement Date and any securities issuable upon the conversion thereof; (c) shares of Common Stock or Preferred Stock issued in connection with any stock split or stock dividend or recapitalization; (d) shares of Common Stock (or options, warrants or rights therefor) granted or issued after the Agreement Date to employees,

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officers, directors, contractors, consultants or advisers to, the Company or any subsidiary of the Company pursuant to incentive agreements, stock purchase or stock option plans, stock bonuses or awards, warrants, contracts or other arrangements that are approved by the Board; (e) shares of the Company's Series Seed Preferred Stock issued pursuant to this Agreement; (f) any other shares of Common Stock or Preferred Stock (and/or options or warrants therefor) issued or issuable primarily for other than equity financing purposes and approved by the Board; and (g) shares of Common Stock issued or issuable by the Company to the public pursuant to a registration statement filed under the Securities Act.

6.3 Procedures. If the Company proposes to undertake an issuance of New Securities, it shall give notice to each Major Purchaser of its intention to issue New Securities (the "Notice"), describing the type of New Securities and the price and the general terms upon which the Company proposes to issue the New Securities. Each Major Purchaser will have (10) days from the date of notice, to agree in writing to purchase such Major Purchaser's Pro Rata Share of such New Securities for the price and upon the general terms specified in the Notice by giving written notice to the Company and stating therein the quantity of New Securities to be purchased (not to exceed such Major Purchaser's Pro Rata Share).

6.4 Failure to Exercise. If the Major Purchasers fail to exercise in full the right of first refusal within the 10-day period, then the Company will have one hundred twenty (120) days thereafter to sell the New Securities with respect to which the Major Purchasers' rights of first refusal hereunder were not exercised, at a price and upon general terms not materially more favorable to the purchasers thereof than specified in the Company's Notice to the Major Purchasers. If the Company has not issued and sold the New Securities within the 120-day period, then the Company shall not thereafter issue or sell any New Securities without again first offering those New Securities to the Major Purchasers pursuant to this Section 6.

# 7. ELECTION OF BOARD OF DIRECTORS.

7.1 Voting; Board Composition. Subject to the rights of the stockholders to remove a director for cause in accordance with applicable law, during the term of this Agreement, each Stockholder shall vote (or consent pursuant to an action by written consent of the stockholders) all shares of capital stock of the Company now or hereafter directly or indirectly owned of record or beneficially by the Stockholder (the "Voting Shares"), or to cause the Voting Shares to be voted, in such manner as may be necessary to elect (and maintain in office) as the members of the Board:

(a) that number of individuals, if any, equal to the Common Board Member Count (collectively, the "Common Board Designees") designated from time to time in a writing delivered to the Company and signed by Common Control Holders who then hold shares of issued and outstanding Common Stock of the Company representing a majority of the voting power of all issued and outstanding shares of Common Stock then held by all Common Control Holders;

Subject to the rights of the stockholders of the Company to remove a director for cause in accordance with applicable law, during the term of this Agreement, a Stockholder shall not take any action to remove an incumbent Board Designee or to designate a new Board Designee unless such removal or designation of a Board Designee is approved in a writing signed by the party or parties, as applicable, entitled to designate the Board Designee. Each Stockholder hereby appoints, and shall appoint, the then-current Chief Executive Officer of the Company, as the Stockholder's true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to vote all shares of the Company's capital stock held by the Stockholder as set forth in this Agreement and to execute all appropriate instruments consistent with this Agreement on behalf of the Stockholder if, and only if, the Stockholder (a) fails to vote or (b) attempts to vote (whether by proxy, in person or by written consent), in

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a manner which is inconsistent with the terms of this Agreement, all of the Stockholder's Voting Shares or execute such other instruments in accordance with the provisions of this Agreement within five days of the Company's or any other party's written request for the Stockholder's written consent or signature. The proxy and power granted by each Stockholder pursuant to this Section are coupled with an interest and are given to secure the performance of the Stockholder's duties under this Agreement. Each such proxy and power will be irrevocable for the term of this Agreement. The proxy and power, so long as any Stockholder is an individual, will survive the death, incompetency and disability of such Stockholder and, so long as any Stockholder is an entity, will survive the merger or reorganization of the Stockholder or any other entity holding Voting Shares.

### 8. GENERAL PROVISIONS.

8.1 Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties to this Agreement or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. No Stockholder may transfer Shares unless each transferee agrees to be bound by the terms of this Agreement.

8.2 Governing Law. This Agreement is governed by the Governing Law, regardless of the laws that might otherwise govern under applicable principles of choice of law.

8.3 Counterparts; Facsimile or Electronic Signature. This Agreement may be executed and delivered by facsimile or electronic signature and in two or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable law) or other transmission method and any counterpart so delivered will be deemed to have been duly and validly delivered and be valid and effective for all purposes.

8.4 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. References to sections or subsections within this set of Agreement Terms shall be deemed to be references to the sections of this set of Agreement Terms contained in Exhibit B to the Agreement, unless otherwise specifically stated herein.

8.5 Notices. All notices and other communications given or made pursuant to this Agreement must be in writing and will be deemed to have been given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by facsimile or electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications must be sent to the respective parties at their address as set forth on the signature page or Schedule 1, or to such address, facsimile number or electronic mail address as subsequently modified by written notice given in accordance with this Section 8.5.

8.6 No Finder's Fees. Each party severally represents to the other parties that it neither is nor will be obligated for any finder's fee or commission in connection with this transaction. Each Purchaser shall indemnify, defend, and hold harmless the Company from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction

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(and the costs and expenses of defending against such liability or asserted liability) for which the Purchaser or any of its officers, employees, or representatives is responsible. The Company shall indemnify, defend, and hold harmless each Purchaser from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

8.7 Attorneys' Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees, costs, and necessary disbursements in addition to any other relief to which the party may be entitled. Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery, and performance of the Agreement.

8.8 Amendments and Waivers. Except as specified in Section 1.2.2, any term of this Agreement may be amended, terminated or waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Purchasers holding a majority of the then-outstanding shares of Series Seed Preferred Stock (or Common Stock issued on conversion thereof); provided, however, that any amendment to Section 7.1(a) or Section 7.1(c) will also require the additional written consent of the holders of a majority of the outstanding shares of the Company's Common Stock then held by all of the Common Control Holders. Notwithstanding the foregoing, the addition of a party to this Agreement pursuant to a transfer of Shares in accordance with Section 8.1 will not require any further consent. Any amendment or waiver effected in accordance with this Section 8.8 will be binding upon the Purchasers, the Key Holders, each transferee of the shares of Series Seed Preferred Stock (or the Common Stock issuable upon conversion thereof) or Common Stock from a Purchaser or Key Holders, as applicable, and each future holder of all such securities, and the Company. It is specifically intended that entering into the Next Financing Agreements in a form substantially similar to the form agreements set as forth as Model Legal Documents on http://www.nvca.org shall be considered an amendment to this Agreement provided that it is done in accordance with this Section 8.8.

8.9 Severability. The invalidity or unenforceability of any provision of this Agreement will in no way affect the validity or enforceability of any other provision.

8.10 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, will impair any such right, power or remedy of such non-breaching or non-defaulting party nor will it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor will any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, are cumulative and not alternative.

8.11 Termination. Unless terminated earlier pursuant to the terms of this Agreement, (x) the rights, duties and obligations under Sections 4, 6 and 7 will terminate immediately prior to the closing of the IPO, (y) notwithstanding anything to the contrary herein, this Agreement (excluding any then-existing obligations) will terminate upon the closing of a Deemed Liquidation Event as defined in the Company's Restated Charter, as amended from time to time and (z) notwithstanding anything to the

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contrary herein, Section 1, Section 2, Section 3, Section 4.1.2 and this Section 8 will survive any termination of this Agreement.

8.12 **Dispute Resolution.** Each party (a) hereby irrevocably and unconditionally submits to the personal jurisdiction of the Dispute Resolution Jurisdiction for the purpose of any suit, action, or other proceeding arising out of or based upon this Agreement; (b) shall not commence any suit, action or other proceeding arising out of or based upon this Agreement except in the Dispute Resolution Jurisdiction; and (c) hereby waives, and shall not assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject to the personal jurisdiction of the Dispute Resolution Jurisdiction, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement, or the subject matter hereof and thereof may not be enforced in or by the Dispute Resolution Jurisdiction.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the parties have executed this agreement as of [EFFECTIVE DATE].

Number of Shares: [SHARES]

Aggregate Purchase Price: $[AMOUNT]

COMPANY:

The SMART Tire Company, Inc.

Founder Signature

Name: [FOUNDER_NAME]

Title: [FOUNDER_TITLE]

Read and Approved (For IRA Use Only):

SUBSCRIBER:

[ENTITY NAME]

By:

Investor Signature

By:

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

The Subscriber is an “accredited investor” as that term is defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act.

Please indicate Yes or No by checking the appropriate box:

☐ Accredited

☑ Not Accredited

SIGNATURE PAGE

TO

SUBSCRIPTION AGREEMENT

# **EXHIBIT C**

# **FORM OF RESTATED CHARTER**

State of Delaware
Secretary of State
Division of Corporations
Delivered 11:20 AM 01/18/2023
FILED 11:20 AM 01/18/2023
SR 20230171540 - File Number 3429158

# **THE SMART TIRE COMPANY INC.**

# **SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

(Pursuant to Sections 242 and 245 of the
General Corporation Law of the State of Delaware)

The Smart Tire Company Inc., a corporation organized and existing under and by virtue of the provisions of the General Corporation Law of the State of Delaware (the "*General Corporation Law*"), does hereby certify as follows.

1. The name of this corporation is The Smart Tire Company Inc. and that this corporation was originally incorporated pursuant to the General Corporation Law on March 12, 2021 under the name The Smart Tire Company Inc..
2. The Board of Directors of this corporation duly adopted resolutions proposing to amend and restate the Amended and Restated Certificate of Incorporation of this corporation, declaring said amendment and restatement to be advisable and in the best interests of this corporation and its stockholders, and authorizing the appropriate officers of this corporation to solicit the consent of the stockholders therefor, which resolution setting forth the proposed amendment and restatement is as follows.

RESOLVED, that the Amended and Restated Certificate of Incorporation of this corporation be amended and restated in its entirety to read as set forth on Exhibit A attached hereto and incorporated herein by this reference.

3. Exhibit A referred to above is attached hereto as Exhibit A and is hereby incorporated herein by this reference. This Second Amended and Restated Certificate of Incorporation was approved by the holders of the requisite number of shares of this corporation in accordance with Section 228 of the General Corporation Law.
4. This Second Amended and Restated Certificate of Incorporation, which restates and integrates and further amends the provisions of this corporation's Amended and Restated Certificate of Incorporation, has been duly adopted in accordance with Sections 242 and 245 of the General Corporation Law.

**IN WITNESS WHEREOF**, this Second Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of this corporation on January 17, 2023.

**EARL COLE**
**PRESIDENT**

# Exhibit A

# THE SMART TIRE COMPANY INC.

# SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

# ARTICLE I
NAME

The name of this corporation is The Smart Tire Company Inc. (the "Corporation").

# ARTICLE II: REGISTERED OFFICE.

The address of the registered office of the Corporation in the State of Delaware is 651 N. Broad Street, Suite 201, Middletown, New Castle County, Delaware, 19709. The name of its registered agent at such address is LegalInc Corporate Services Inc.

# ARTICLE III: DEFINITIONS.

As used in this Restated Certificate (the "Restated Certificate"), the following terms have the meanings set forth below:

"Board Composition" means that the holders of record of the shares of Common Stock, exclusively and as a separate class, shall be entitled to elect two director(s) of the Corporation, and any additional directors will be elected by the affirmative vote of a majority of the Common Stock.

"Original Issue Price" means $4.60 per share for the Series Seed-1 Preferred Stock, $0.7355 per share for the Series Seed-2 Preferred Stock, $4.597 per share for the Series Seed-3 Preferred Stock, $4.14 per share for the Series Seed-4 Preferred Stock, $4.60 per share for the Series Seed-5 Preferred Stock and $5.00 per share for the Series Seed-6 Preferred Stock.

"Requisite Holders" means the holders of a majority of the outstanding shares of Preferred Stock (voting as a single class on an as-converted basis).

# ARTICLE IV: PURPOSE.

The nature of the business or purposes to be conducted or promoted is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law.

# ARTICLE V: AUTHORIZED SHARES.

The total number of shares of all classes of stock that the Corporation has authority to issue is 13,773,530, consisting of (a) 11,886,765 shares of Common Stock of the Corporation, par value $0.00001 per share ("Common Stock"), and (b) 1,886,765 shares of Preferred Stock of the Corporation, par value $0.00001 per share ("Preferred Stock"). Preferred Stock may be issued from time to time in one or more series, each of such series to consist of such number of shares and to have such terms, rights, powers and preferences, and the qualifications and limitations with respect thereto, as stated or expressed herein. 16,996 shares of the Preferred Stock of the Corporation are hereby designated "Series Seed-1 Preferred Stock", 691,026 shares of the Preferred Stock of the Corporation are hereby designated "Series Seed-2 Preferred Stock", 173,728 shares of the Preferred Stock of the Corporation are hereby designated "Series Seed-3 Preferred Stock", 11,956 shares of the Preferred Stock of the Corporation are hereby designated

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"Series Seed-4 Preferred Stock", 108,696 shares of the Preferred Stock of the Corporation are hereby designated "Series Seed-5 Preferred Stock" and 884,363 shares of the Preferred Stock of the Corporation are hereby designated "Series Seed-6 Preferred Stock". The Series Seed-1 Preferred Stock, Series Seed-2 Preferred Stock, Series Seed-3 Preferred Stock, Series Seed-4 Preferred Stock, Series Seed-5 Preferred Stock and Series Seed-6 Preferred Stock are referred to collectively as the "Series Seed Preferred Stock".

### A. COMMON STOCK

The following rights, powers privileges and restrictions, qualifications, and limitations apply to the Common Stock.

1. General. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights, powers and privileges of the holders of the Preferred Stock set forth in this Restated Certificate.
2. Voting. The holders of the Common Stock are entitled to one vote for each share of Common Stock held at all meetings of stockholders (and written actions in lieu of meetings). Unless required by law, there shall be no cumulative voting. The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by (in addition to any vote of the holders of one or more series of Preferred Stock that may be required by the terms of the Restated Certificate) the affirmative vote of the holders of shares of capital stock of the Corporation representing a majority of the votes represented by all outstanding shares of capital stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law.

### B. PREFERRED STOCK

The following rights, powers and privileges, and restrictions, qualifications and limitations, shall apply to the Preferred Stock. Unless otherwise indicated, references to "Sections" in this Part B of this Article V refer to sections of this Part B.

### 1. Liquidation, Dissolution, or Winding Up; Certain Mergers, Consolidations and Asset Sales.

1.1 Payments to Holders of Preferred Stock. In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Corporation or any Deemed Liquidation Event (as defined below), before any payment shall be made to the holders of Common Stock by reason of their ownership thereof, the holders of shares of Preferred Stock then outstanding must be paid out of the funds and assets available for distribution to its stockholders, an amount per share equal to the greater of (a) the applicable Original Issue Price for such series of Preferred Stock, plus any dividends declared but unpaid thereon, or (b) such amount per share as would have been payable had all shares of Preferred Stock been converted into Common Stock pursuant to Section 3 immediately prior to such liquidation, dissolution or winding up or Deemed Liquidation Event. If upon any such liquidation, dissolution, or winding up or Deemed Liquidation Event of the Corporation, the funds and assets available for distribution to the stockholders of the Corporation are insufficient to pay the holders of shares of Preferred Stock the full amount to which they are entitled under this Section 1.1, the holders of shares of Preferred Stock will share ratably in any distribution of the funds and assets available for distribution in proportion to the respective amounts that would otherwise be payable in respect of the shares of Preferred Stock held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

1.2 Payments to Holders of Common Stock. In the event of any voluntary or involuntary liquidation, dissolution, or winding up or Deemed Liquidation Event of the Corporation, after

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the payment of all preferential amounts required to be paid to the holders of shares of Preferred Stock as provided in Section 1.1, the remaining funds and assets available for distribution to the stockholders of the Corporation will be distributed among the holders of shares of Common Stock, pro rata based on the number of shares of Common Stock held by each such holder.

### 1.3 Deemed Liquidation Events.

1.3.1 Definition. Each of the following events is a "Deemed Liquidation Event" unless the Requisite Holders elect otherwise by written notice received by the Corporation at least five (5) days prior to the effective date of any such event:

(a) a merger or consolidation in which (i) the Corporation is a constituent party or (ii) a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or consolidation involving the Corporation or a subsidiary in which the shares of capital stock of the Corporation outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for equity securities that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the equity securities of (1) the surviving or resulting party or (2) if the surviving or resulting party is a wholly owned subsidiary of another party immediately following such merger or consolidation, the parent of such surviving or resulting party; provided that, for the purpose of this Section 1.3.1, all shares of Common Stock issuable upon exercise of options outstanding immediately prior to such merger or consolidation or upon conversion of Convertible Securities (as defined below) outstanding immediately prior to such merger or consolidation shall be deemed to be outstanding immediately prior to such merger or consolidation and, if applicable, deemed to be converted or exchanged in such merger or consolidation on the same terms as the actual outstanding shares of Common Stock are converted or exchanged; or

(b) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole, or, if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Corporation, except where such sale, lease, transfer or other disposition is to the Corporation or one or more wholly owned subsidiaries of the Corporation.

1.3.2 Amount Deemed Paid or Distributed. The funds and assets deemed paid or distributed to the holders of capital stock of the Corporation upon any such merger, consolidation, sale, transfer or other disposition described in this Section 1.3 will be the cash or the value of the property, rights or securities paid or distributed to such holders by the Corporation or the acquiring person, firm or other entity. The value of such property, rights or securities shall be determined in good faith by the Board.

## 2. Voting.

2.1 General. On any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting), each holder of outstanding shares of Preferred Stock may cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Fractional votes shall not be permitted and any fractional voting rights available on an as-converted basis (after aggregating all shares into which shares of Preferred Stock held by each holder could

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be converted) will be rounded to the nearest whole number (with one-half being rounded upward). Except as provided by law or by the other provisions of this Restated Certificate, holders of Preferred Stock shall vote together with the holders of Common Stock as a single class on an as-converted basis, shall have full voting rights and powers equal to the voting rights and powers of the holders of Common Stock, and shall be entitled, notwithstanding any provision of this Restated Certificate, to notice of any stockholder meeting in accordance with the Bylaws of the Corporation.

2.2 Election of Directors. The holders of record of the Corporation's capital stock are entitled to elect directors as described in the Board Composition. Any director elected as provided in the preceding sentence may be removed with or without cause by the affirmative vote of the holders of the shares of the class, classes, or series of capital stock entitled to elect the director or directors, given either at a special meeting of the stockholders duly called for that purpose or pursuant to a written consent of stockholders. At any meeting held for the purpose of electing a director, the presence in person or by proxy of the holders of a majority of the outstanding shares of the class, classes, or series entitled to elect the director constitutes a quorum for the purpose of electing the director.

2.3 Preferred Stock Protective Provisions. At any time when at least 35% of the initially issued shares of Preferred Stock remain outstanding, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without (in addition to any other vote required by law or the Restated Certificate) the written consent or affirmative vote of the Requisite Holders, given in writing or by vote at a meeting, consenting, or voting (as the case may be) separately as a single class:

(a) alter the rights, powers or privileges of the Preferred Stock set forth in the Restated Certificate or Bylaws, as then in effect, in a way that adversely affects the Preferred Stock;
(b) increase or decrease the authorized number of shares of any class or series of capital stock;
(c) authorize or create (by reclassification or otherwise) any new class or series of capital stock having rights, powers, or privileges set forth in the certificate of incorporation of the Corporation, as then in effect, that are senior to or on a parity with any series of Preferred Stock;
(d) redeem or repurchase any shares of Common Stock or Preferred Stock (other than pursuant to employee or consultant agreements giving the Corporation the right to repurchase shares upon the termination of services pursuant to the terms of the applicable agreement);
(e) declare or pay any dividend or otherwise make a distribution to holders of Preferred Stock or Common Stock;
(f) increase or decrease the number of directors of the Corporation;
(g) liquidate, dissolve, or wind-up the business and affairs of the Corporation, effect any Deemed Liquidation Event, or consent, agree or commit to do any of the foregoing without conditioning such consent, agreement or commitment upon obtaining the approval required by this Section 2.3.

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3. Conversion. The holders of the Preferred Stock have the following conversion rights (the "Conversion Rights"):

### 3.1 Right to Convert.

3.1.1 Conversion Ratio. Each share of Preferred Stock is convertible, at the option of the holder thereof, at any time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and nonassessable shares of Common Stock as is determined by dividing the Original Issue Price for the series of Preferred Stock by the Conversion Price of such series of Preferred Stock in effect at the time of conversion. The "Conversion Price" for each series of Preferred Stock means the Original Issue Price for such series of Preferred Stock, which initial Conversion Price, and the rate at which shares of Preferred Stock may be converted into shares of Common Stock, is subject to adjustment as provided in this Restated Certificate.

3.1.2 Termination of Conversion Rights. Subject to Section 3.3.1 in the case of a Contingency Event (as defined below), in the event of a liquidation, dissolution, or winding up of the Corporation or a Deemed Liquidation Event, the Conversion Rights will terminate at the close of business on the last full day preceding the date fixed for the first payment of any funds and assets distributable on such event to the holders of Preferred Stock.

3.2 Fractional Shares. No fractional shares of Common Stock will be issued upon conversion of the Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, the Corporation shall pay cash equal to such fraction multiplied by the fair market value of a share of Common Stock as determined in good faith by the Board. Whether or not fractional shares would be issuable upon such conversion will be determined on the basis of the total number of shares of Preferred Stock the holder is at the time converting into Common Stock and the aggregate number of shares of Common Stock issuable upon such conversion.

### 3.3 Mechanics of Conversion.

3.3.1 Notice of Conversion. To voluntarily convert shares of Preferred Stock into shares of Common Stock, a holder of Preferred Stock shall surrender the certificate or certificates for the shares of Preferred Stock (or, if such registered holder alleges that any such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate), at the office of the transfer agent for the Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent), together with written notice that the holder elects to convert all or any number of the shares of the Preferred Stock represented by the certificate or certificates and, if applicable, any event on which the conversion is contingent (a "Contingency Event"). The conversion notice must state the holder's name or the names of the nominees in which such holder wishes the certificate or certificates for shares of Common Stock to be issued. If required by the Corporation, certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form reasonably satisfactory to the Corporation, duly executed by the registered holder or such holder's attorney duly authorized in writing. The close of business on the date of receipt by the transfer agent (or by the Corporation if the Corporation serves as its own transfer agent) of the certificates (or lost certificate affidavit and agreement) and notice (or, if later, the date on which all Contingency Events have occurred) will be the time of conversion (the "Conversion Time"), and the shares of Common Stock issuable upon conversion of the shares represented by such certificate shall be deemed to be outstanding of record as of such time. The Corporation shall, as soon as practicable after the Conversion Time, (a) issue and deliver to the holder, or to the holder's nominees, a certificate or certificates for the number of full shares of Common Stock issuable upon the

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conversion in accordance with the provisions of this Restated Certificate and a certificate for the number (if any) of the shares of Preferred Stock represented by the surrendered certificate that were not converted into Common Stock, (b) pay in cash such amount as provided in Section 3.2 in lieu of any fraction of a share of Common Stock otherwise issuable upon such conversion and (c) pay all declared but unpaid dividends on the shares of Preferred Stock converted.

3.3.2 Reservation of Shares. For the purpose of effecting the conversion of the Preferred Stock, the Corporation shall at all times while any share of Preferred Stock is outstanding, reserve and keep available out of its authorized but unissued capital stock, , that number of its duly authorized shares of Common Stock as may from time to time be sufficient to effect the conversion of all outstanding shares of Preferred Stock; and if at any time the number of authorized but unissued shares of Common Stock is not be sufficient to effect the conversion of all then-outstanding shares of the Preferred Stock, the Corporation shall use its best efforts to cause such corporate action to be taken as may be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes, including, without limitation, engaging in best efforts to obtain the requisite stockholder approval of any necessary amendment to this Restated Certificate. Before taking any action that would cause an adjustment reducing the Conversion Price of a series of Preferred Stock below the then-par value of the shares of Common Stock issuable upon conversion of such series of Preferred Stock, the Corporation shall take any corporate action that may be necessary so that the Corporation may validly and legally issue fully paid and nonassessable shares of Common Stock at such adjusted Conversion Price.

3.3.3 Effect of Conversion. All shares of Preferred Stock that shall have been surrendered for conversion as provided in this Restated Certificate shall no longer be deemed to be outstanding and all rights with respect to such shares will immediately cease and terminate at the Conversion Time, except only the right of the holders of such shares to receive shares of Common Stock in exchange for such shares, to receive payment in lieu of any fraction of a share otherwise issuable upon such conversion as provided in Section 3.2, and to receive payment of any dividends declared but unpaid on such shares. Any shares of Preferred Stock so converted will be retired and cancelled by the Corporation and may not be reissued.

3.3.4 No Further Adjustment. Upon any conversion of shares of Preferred Stock, no adjustment to the Conversion Price of the applicable series of Preferred Stock will be made with respect to the converted shares for any declared but unpaid dividends on such series of Preferred Stock or on the Common Stock delivered upon conversion.

3.4 Adjustment for Stock Splits and Combinations. If the Corporation at any time or from time to time after the date on which the first share of Series Seed-5 Preferred Stock is issued by the Corporation (such date referred to herein as the "Original Issue Date" for such series of Preferred Stock) effects a subdivision of the outstanding shares of Common Stock, the Conversion Price of each series of Preferred Stock in effect immediately before such subdivision will be proportionately decreased so that the number of shares of Common Stock issuable upon conversion of each share of such series will be increased in proportion to the increase in the aggregate number of shares of Common Stock outstanding. If the Corporation at any time or from time to time after the Original Issue Date for a series of Preferred Stock combines the outstanding shares of Common Stock, the Conversion Price of each series of Preferred Stock in effect immediately before such combination will be proportionately increased so that the number of shares of Common Stock issuable upon conversion of each share of such series will be decreased in proportion to the decrease in the aggregate number of shares of Common Stock outstanding. Any adjustment under this Section 3.4 becomes effective at the close of business on the date the subdivision or combination becomes effective.

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3.5 Adjustment for Certain Dividends and Distributions. If the Corporation at any time or from time to time after the Original Issue Date for a series of Preferred Stock makes or issues, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event the Conversion Price for such series of Preferred Stock in effect immediately before the event will be decreased as of the time of such issuance or, in the event a record date has been fixed, as of the close of business on such record date, by multiplying such Conversion Price then in effect by a fraction:

(a) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of the issuance or the close of business on the record date, and

(b) the denominator of which is the total number of shares of Common Stock issued and outstanding immediately before the time of such issuance or the close of business on the record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

Notwithstanding the foregoing, (i) if such record date has have been fixed and the dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, such Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter such Conversion Price shall be adjusted pursuant to this Section 3.5 as of the time of actual payment of such dividends or distributions; and (ii) no such adjustment shall be made if the holders of such series of Preferred Stock simultaneously receive a dividend or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock that they would have received if all outstanding shares of such series of Preferred Stock had been converted into Common Stock on the date of the event.

3.6 Adjustments for Other Dividends and Distributions. If the Corporation at any time or from time to time after the Original Issue Date for a series of Preferred Stock shall makes or issues, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Corporation (other than a distribution of shares of Common Stock in respect of outstanding shares of Common Stock), then and in each such event the Corporation shall make, simultaneously with the distribution to the holders of Common Stock, a dividend or other distribution to the holders of the series of Preferred Stock in an amount equal to the amount of securities as the holders would have received if all outstanding shares of such series of Preferred Stock had been converted into Common Stock on the date of such event.

3.7 Adjustment for Reclassification, Exchange and Substitution. If at any time or from time to time after the Original Issue Date for a series of Preferred Stock the Common Stock issuable upon the conversion of such series of Preferred Stock is changed into the same or a different number of shares of any class or classes of stock of the Corporation, whether by recapitalization, reclassification, or otherwise (other than by a stock split or combination, dividend, distribution, merger or consolidation covered by Sections 3.4, 3.5, 3.6 or 3.8 or by Section 1.3 regarding a Deemed Liquidation Event), then in any such event each holder of such series of Preferred Stock may thereafter convert such stock into the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification or other change by holders of the number of shares of Common Stock into which such shares of Preferred Stock could have been converted immediately prior to such recapitalization, reclassification or change.

3.8 Adjustment for Merger or Consolidation. Subject to the provisions of Section 1.3, if any consolidation or merger occurs involving the Corporation in which the Common Stock (but not a series of Preferred Stock) is converted into or exchanged for securities, cash, or other property (other than a transaction covered by Sections 3.5, 3.6 or 3.7), then, following any such consolidation or merger, the

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Corporation shall provide that each share of such series of Preferred Stock will thereafter be convertible, in lieu of the Common Stock into which it was convertible prior to the event, into the kind and amount of securities, cash, or other property which a holder of the number of shares of Common Stock of the Corporation issuable upon conversion of one share of such series of Preferred Stock immediately prior to the consolidation or merger would have been entitled to receive pursuant to the transaction; and, in such case, the Corporation shall make appropriate adjustment (as determined in good faith by the Board) in the application of the provisions in this Section 3 with respect to the rights and interests thereafter of the holders of such series of Preferred Stock, to the end that the provisions set forth in this Section 3 (including provisions with respect to changes in and other adjustments of the Conversion Price of such series of Preferred Stock) shall thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other property thereafter deliverable upon the conversion of such series of Preferred Stock.

3.9 Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price of a series of Preferred Stock pursuant to this Section 3, the Corporation at its expense shall, as promptly as reasonably practicable but in any event not later than 15 days thereafter, compute such adjustment or readjustment in accordance with the terms of this Restated Certificate and furnish to each holder of such series of Preferred Stock a certificate setting forth the adjustment or readjustment (including the kind and amount of securities, cash, or other property into which such series of Preferred Stock is convertible) and showing in detail the facts upon which such adjustment or readjustment is based. The Corporation shall, as promptly as reasonably practicable after the written request at any time of any holder of any series of Preferred Stock (but in any event not later than 10 days thereafter), furnish or cause to be furnished to such holder a certificate setting forth (a) the Conversion Price of such series of Preferred Stock then in effect and (b) the number of shares of Common Stock and the amount, if any, of other securities, cash, or property which then would be received upon the conversion of such series of Preferred Stock.

3.10 Mandatory Conversion. Upon either (a) the closing of the sale of shares of Common Stock to the public in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended or (b) the date and time, or the occurrence of an event, specified by vote or written consent of the Requisite Holders at the time of such vote or consent, voting as a single class on an as-converted basis (the time of such closing or the date and time specified or the time of the event specified in such vote or written consent, the "Mandatory Conversion Time"), (i) all outstanding shares of Preferred Stock will automatically convert into shares of Common Stock, at the applicable ratio described in Section 3.1.1 as the same may be adjusted from time to time in accordance with Section 3 and (ii) such shares may not be reissued by the Corporation.

3.11 Procedural Requirements. The Corporation shall notify in writing all holders of record of shares of Preferred Stock of the Mandatory Conversion Time and the place designated for mandatory conversion of all such shares of Preferred Stock pursuant to Section 3.10. Unless otherwise provided in this Restated Certificate, the notice need not be sent in advance of the occurrence of the Mandatory Conversion Time. Upon receipt of the notice, each holder of shares of Preferred Stock shall surrender such holder's certificate or certificates for all such shares (or, if such holder alleges that such certificate has been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Corporation to indemnify the Corporation against any claim that may be made against the Corporation on account of the alleged loss, theft or destruction of such certificate) to the Corporation at the place designated in such notice, and shall thereafter receive certificates for the number of shares of Common Stock to which such holder is entitled pursuant to this Section 3. If so required by the Corporation, certificates surrendered for conversion shall be endorsed or accompanied by written instrument or instruments of transfer, in form reasonably satisfactory to the Corporation, duly executed by the registered holder or such holder's attorney duly authorized in writing. All rights with respect to the Preferred Stock converted pursuant to Section 3.10, including the rights, if any, to receive notices and vote (other than as a holder of

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Common Stock), will terminate at the Mandatory Conversion Time (notwithstanding the failure of the holder or holders thereof to surrender the certificates at or prior to such time), except only the rights of the holders thereof, upon surrender of their certificate or certificates (or lost certificate affidavit and agreement) therefor, to receive the items provided for in the next sentence of this Section 3.11. As soon as practicable after the Mandatory Conversion Time and the surrender of the certificate or certificates (or lost certificate affidavit and agreement) for Preferred Stock, the Corporation shall issue and deliver to such holder, or to such holder's nominee(s), a certificate or certificates for the number of full shares of Common Stock issuable on such conversion in accordance with the provisions hereof, together with cash as provided in Section 3.2 in lieu of any fraction of a share of Common Stock otherwise issuable upon such conversion and the payment of any declared but unpaid dividends on the shares of Preferred Stock converted. Such converted Preferred Stock shall be retired and cancelled and may not be reissued as shares of such series, and the Corporation may thereafter take such appropriate action (without the need for stockholder action) as may be necessary to reduce the authorized number of shares of Preferred Stock (and the applicable series thereof) accordingly.

4. **Dividends.** The Corporation shall declare all dividends pro rata on the Common Stock and the Preferred Stock on a pari passu basis according to the number of shares of Common Stock held by such holders. For this purpose each holder of shares of Preferred Stock will be treated as holding the greatest whole number of shares of Common Stock then issuable upon conversion of all shares of Preferred Stock held by such holder pursuant to Section 3.

5. **Redeemed or Otherwise Acquired Shares.** Any shares of Preferred Stock that are redeemed or otherwise acquired by the Corporation or any of its subsidiaries will be automatically and immediately cancelled and retired and shall not be reissued, sold or transferred. Neither the Corporation nor any of its subsidiaries may exercise any voting or other rights granted to the holders of Preferred Stock following any such redemption.

6. **Waiver.** Any of the rights, powers, privileges and other terms of the Preferred Stock set forth herein may be waived prospectively or retrospectively on behalf of all holders of Preferred Stock by the affirmative written consent or vote of the holders of the Requisite Holders.

7. **Notice of Record Date.** In the event:

(a) the Corporation takes a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon conversion of the Preferred Stock) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security; or
(b) of any capital reorganization of the Corporation, any reclassification of the Common Stock of the Corporation, or any Deemed Liquidation Event; or
(c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Corporation,

then, and in each such case, the Corporation shall send or cause to be sent to the holders of the Preferred Stock a written notice specifying, as the case may be, (i) the record date for such dividend, distribution, or right, and the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon the conversion of the Preferred

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Stock) will be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Preferred Stock and the Common Stock. The Corporation shall send the notice at least 20 days before the earlier of the record date or effective date for the event specified in the notice.

8. Notices. Except as otherwise provided herein, any notice required or permitted by the provisions of this Article V to be given to a holder of shares of Preferred Stock must be mailed, postage prepaid, to the post office address last shown on the records of the Corporation, or given by electronic communication in compliance with the provisions of the General Corporation Law, and will be deemed sent upon such mailing or electronic transmission.

# ARTICLE VI: PREEMPTIVE RIGHTS.

No stockholder of the Corporation has a right to purchase shares of capital stock of the Corporation sold or issued by the Corporation except to the extent that such a right may from time to time be set forth in a written agreement between the Corporation and the stockholder.

# ARTICLE VII: STOCK REPURCHASES.

In accordance with Section 500 of the California Corporations Code, a distribution can be made without regard to any preferential dividends arrears amount (as defined in Section 500 of the California Corporations Code) or any preferential rights amount (as defined in Section 500 of the California Corporations Code) in connection with (i) repurchases of Common Stock issued to or held by employees, officers, directors, or consultants of the Corporation or its subsidiaries upon termination of their employment or services pursuant to agreements providing for the right of said repurchase, (ii) repurchases of Common Stock issued to or held by employees, officers, directors or consultants of the Corporation or its subsidiaries pursuant to rights of first refusal contained in agreements providing for such right, (iii) repurchases of Common Stock or Preferred Stock in connection with the settlement of disputes with any stockholder, or (iv) any other repurchase or redemption of Common Stock or Preferred Stock approved by the holders of Preferred Stock of the Corporation.

# ARTICLE VIII: BYLAW PROVISIONS.

A. AMENDMENT OF BYLAWS. Subject to any additional vote required by this Restated Certificate or bylaws of the Corporation (the "Bylaws"), in furtherance and not in limitation of the powers conferred by statute, the Board is expressly authorized to make, repeal, alter, amend and rescind any or all of the Bylaws.

B. NUMBER OF DIRECTORS. Subject to any additional vote required by this Restated Certificate, the number of directors of the Corporation will be determined in the manner set forth in the Bylaws.

C. BALLOT. Elections of directors need not be by written ballot unless the Bylaws so provide.

D. MEETINGS AND BOOKS. Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws may provide. The books of the Corporation may be kept outside the State of Delaware at such place or places as may be designated from time to time by the Board or in the Bylaws.

# ARTICLE IX: DIRECTOR LIABILITY.

A. LIMITATION. To the fullest extent permitted by law, a director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty

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as a director. If the General Corporation Law or any other law of the State of Delaware is amended after approval by the stockholders of this Article IX to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the General Corporation Law as so amended. Any repeal or modification of the foregoing provisions of this Article IX by the stockholders will not adversely affect any right or protection of a director of the Corporation existing at the time of, or increase the liability of any director of the Corporation with respect to any acts or omissions of such director occurring prior to, such repeal or modification.

B. INDEMNIFICATION. To the fullest extent permitted by applicable law, the Corporation is authorized to provide indemnification of (and advancement of expenses to) directors, officers and agents of the Corporation (and any other persons to which General Corporation Law permits the Corporation to provide indemnification) through Bylaw provisions, agreements with such agents or other persons, vote of stockholders or disinterested directors or otherwise, in excess of the indemnification and advancement otherwise permitted by Section 145 of the General Corporation Law.

C. MODIFICATION. Any amendment, repeal, or modification of the foregoing provisions of this Article IX will not adversely affect any right or protection of any director, officer or other agent of the Corporation existing at the time of such amendment, repeal or modification.

# ARTICLE X: CORPORATE OPPORTUNITIES.

The Corporation renounces any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, or in being informed about, an Excluded Opportunity. "Excluded Opportunity" means any matter, transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of, (i) any director of the Corporation who is not an employee of the Corporation or any of its subsidiaries, or (ii) any holder of Preferred Stock or any affiliate, partner, member, director, stockholder, employee, agent or other related person of any such holder, other than someone who is an employee of the Corporation or any of its subsidiaries (a "Covered Person"), unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise comes into the possession of, a Covered Person expressly and solely in such Covered Person's capacity as a director of the Corporation.

* * * * *

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

# **THE SMART TIRE COMPANY, INC.**

Financial Statements For The Years Ended December 31, 2021 and 2020

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

Jason M. Tyra
C P A P L L C

# Independent Auditor's Report

To Management
The Smart Tire Company, Inc.
Upland, CA

We have audited the accompanying financial statements of The Smart Tire Company, Inc. (a Delaware corporation), which comprise the balance sheet as of December 31, 2021 and 2020, and the related statements of income, shareholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.

# 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 control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

# Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

1700 Pacific Avenue, Suite 4710
Dallas, TX 75201
(P) 972-201-9008
info@tyracpa.com
www.tyracpa.com

## Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Smart Tire Company, Inc. as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Jason M. Tyra, CPA, PLLC
Dallas, TX
December 1, 2022

1700 Pacific Avenue, Suite 4710
Dallas, TX 75201
(P) 972-201-9008
info@tyracpa.com
www.tyracpa.com

# THE SMART TIRE COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 2021 AND 2020

|  | 2021 | 2020 |
| --- | --- | --- |
| ASSETS |  |  |
| CURRENT ASSETS |  |  |
| Cash | $845,135 | $576 |
| Prepaid Expenses | 57,628 | - |
| Other Receivable | 80 | - |
| TOTAL CURRENT ASSETS | 902,843 | 576 |
| NON-CURRENT ASSETS |  |  |
| Fixed Assets | 58,465 | - |
| Accumulated Depreciation | (5,847) | - |
| Security Deposit | 14,329 | - |
| TOTAL NON-CURRENT ASSETS | 66,947 | - |
| TOTAL ASSETS | $969,790 | $576 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| CURRENT LIABILITIES |  |  |
| Accounts Payable | 41,661 | - |
| TOTAL CURRENT LIABILITIES | 41,661 | - |
| NON-CURRENT LIABILITIES |  |  |
| SAFE Notes | 1,356,381 | - |
| Related Party Loans | 9,595 | 2,100 |
| TOTAL LIABILITIES | 1,407,637 | 2,100 |
| SHAREHOLDERS' EQUITY |  |  |
| Common Stock (10,000,000 shares authorized; 9,000,000 issued; $0.00001 par value) | 90 | - |
| Retained Deficit | (437,937) | (1,524) |
| TOTAL SHAREHOLDERS' EQUITY | (437,847) | (1,524) |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $969,790 | $576 |

See Independent Accountant's Audit Report and accompanying notes, which are an integral part of these financial statements. 1

# THE SMART TIRE COMPANY, INC.
INCOME STATEMENT
FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

|  | 2021 | 2020 |
| --- | --- | --- |
| Operating Expense |  |  |
| Payroll | 200,209 | - |
| General & Administrative | 153,495 | 24 |
| Research & Development | 34,303 | - |
| Legal & Professional | 20,890 | - |
| Rent | 15,599 | - |
| Advertising & Marketing | 9,631 | 1,500 |
| Depreciation | 5,847 | - |
| Stock Compensation Expense | 90 | - |
|  | 440,064 | 1,524 |
| Net Loss from Operations | (440,064) | (1,524) |
| Other Expense |  |  |
| Interest Earned | 3,821 | - |
| Taxes | (170) | - |
| Net Loss | $(436,413) | $(1,524) |
| Net Loss Per Share |  |  |
| Weighted average common shares outstanding - Basic | 9,000,000 | - |
| Net Loss per share | $(0.05) | $ - |

See Independent Accountant's Audit Report and accompanying notes, which are an integral part of these financial statements.

2

# THE SMART TIRE COMPANY, INC.
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

Cash Flows From Operating Activities

| Net Loss For The Period | $(436,413) | $(1,524) |
| --- | --- | --- |
| Change in Accounts Payable | 41,661 | - |
| Depreciation | 5,847 | - |
| Change in Other Receivable | (80) | - |
| Change In Prepaid Expenses | (57,628) | - |

| Net Cash Flows From Operating Activities | (446,613) | (1,524) |
| --- | --- | --- |

Cash Flows From Investing Activities

| Refundable Security Deposit | (14,329) | - |
| --- | --- | --- |
| Purchase of Fixed Assets | (58,465) | - |

| Net Cash Flows From Investing Activities | (72,794) | - |
| --- | --- | --- |

Cash Flows From Financing Activities

| Issuance of SAFE Notes | 1,356,381 | - |
| --- | --- | --- |
| Issuance of Related Party Loans | 7,495 | 2,100 |
| Issuance of Common Stock | 90 | - |

| Net Cash Flows From Financing Activities | 1,363,966 | 2,100 |
| --- | --- | --- |

| Cash at Beginning of Period | 576 | - |
| --- | --- | --- |
| Net Increase In Cash | 844,559 | 576 |
| Cash at End of Period | $845,135 | $576 |

See Independent Accountant's Audit Report and accompanying notes, which are an integral part of these financial statements.

3

# **THE SMART TIRE COMPANY, INC.**  
 **STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY**  
 **FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020**

|  | Common Stock |  | Additional Paid in Capital | Retained Deficit | Total Shareholders' Equity |
| --- | --- | --- | --- | --- | --- |
|  | Number | Amount |  |  |  |
| Balance at August 12, 2020 (Inception) | - | - | $ - | $ - | $ - |
| Net Loss |  |  |  | (1,524) | (1,524) |
| Balance at December 31, 2020 | - | $ - | $ - | $(1,524) | $(1,524) |
| Issuance of Stock | 9,000,000 | 90 |  |  | 90 |
| Net Loss |  |  |  | (436,413) | (436,413) |
| Balance at December 31, 2021 | 9,000,000 | $90 | $ - | $(437,937) | $(437,847) |

See Independent Accountant's Audit Report and accompanying notes, which are an integral part of these financial statements.

4

# THE SMART TIRE COMPANY, INC.  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2021 AND 2020---

# NOTE A- ORGANIZATION AND NATURE OF ACTIVITIES

The Smart Tire Company, LLC (“the Company”) is a corporation organized under the State of Delaware domiciled in California. The Company will design and produce vehicle tires made from advanced materials.

In March of 2021, the Company reorganized as a Delaware corporation.

# NOTE B- GOING CONCERN MATTERS

The financial statements have been prepared on the going concern basis, which assumes that the Company will continue in operation for the foreseeable future. However, management has identified the following conditions and events that created an uncertainty about the ability of the Company to continue as a going concern. The Company sustained net operating losses in 2021 of $436,413 and 2020 of $1,524.

The following describes management’s plans that are intended to mitigate the conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to raise additional capital to continue operations through a Reg CF offering. The Company’s ability to meet its obligations as they become due is dependent upon the success of management’s plans, as described above.

These conditions and events create an uncertainty about the ability of the Company to continue as a going concern through December 5, 2023 (one year after the date that the financial statements are available to be issued). The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

# NOTE C- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Company’s fiscal year ends December 31.

# Significant Risks and Uncertainties

The Company is subject to customary risks and uncertainties associated with development of new technology including, but not limited to, the need for protection of intellectual property, dependence on key personnel, costs of services provided by third parties, the need to obtain additional financing, and limited operating history.

The Company currently has no developed products for commercialization and there can be no assurance that the Company’s research and development will be successfully commercialized. Developing and commercializing a product requires significant capital, and based on the current operating plan, the Company expects to continue to incur operating losses as well as cash outflows from operations in the near term.

5

# THE SMART TIRE COMPANY, INC.  
NOTES TO FINANCIAL STATEMENTS (CONTINUED)---

### Use of Estimates

The preparation of financial statements in conformity with GAAP 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. Changes in estimates are recorded in the period they are made. Actual results could differ from those estimates. There are no significant estimates used in the preparation of these financial statements.

### 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.

### Revenue

Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

The Company intends to earn revenue from the design, production, and sale of vehicle tires made from advanced materials.

### Fixed Assets

The Company capitalizes assets with an expected useful life of one year or more, and an original purchase price of $1,000 or more. Depreciation is calculated on a straight-line basis over management's estimate of each asset's useful life.

### Prepaid Expense

The Company makes advance payments as part of its Space Act Agreement with NASA. All of their services are paid in advance as a de facto retainer to keep the project funded.

### Lease and Security Deposit

The Company currently occupies office space under a non-cancellable operating lease. The lease expires on August 31, 2026, and may be renewed at the option of the Company at the then-current market rate. Future monthly payments due under the lease are as follows:

2022- \$2,388  
2023- \$2,460  
2024- \$2,534  
2025- \$2,610  
2026- \$2,688

As part of the lease arrangement, a refundable security deposit was paid amounting to $14,329.

6

# THE SMART TIRE COMPANY, INC.  
NOTES TO FINANCIAL STATEMENTS (CONTINUED)---

### Interest Earned

As of December 31, 2021, the Company earned bank account interest amounting to $3,821.

### Intellectual Property

In 2021 and 2020, the Company entered into several agreements to license certain intellectual property from the U.S. National Aeronautics and Space Administration which it intends to use in its manufacturing processes (“the Intellectual Property”).

The 2020 Intellectual Property agreement calls for 4.2% of net sales for products manufactured under license, to be paid to the licensor as a royalty, with a minimum payment of $3,000 per year beginning in the fourth year of the license agreement.

The 2021 Intellectual Property agreement calls for 2.5% of the first one million net sales, 3.0% of the next four million of net sales, and 4.0% of net sales in excess of five million for products manufactured under the license, to be paid to the licensor as a royalty, with an upfront fee of $5,000 upon the execution of the agreement. Broken out by its respective year, the company agreed to pay the licensor an annual minimum royalty of:

2022- \$10,000  
2023- \$10,000  
2024- \$25,000  
2025- \$50,000

### Advertising

The Company records advertising expenses in the year incurred.

### Net Income Per Share

Net earnings or loss per share is computed by dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive

### Income Taxes

In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law and the new legislation contains several key tax provisions that affected the Company, including a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring deferred tax assets and liabilities, as well as reassessing the net realizability of our deferred tax assets and liabilities. The tax rate change had no impact to the Company’s net loss as the Company has not incurred a tax liability or expense for the year ended December 31, 2021 and has a full valuation allowance against its net deferred tax assets.

7

# THE SMART TIRE COMPANY, INC.  
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Company applies ASC 740 Income Taxes (“ASC 740”). Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial statement reported amounts at each period end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax expense for the period, if any and the change during the period in deferred tax assets and liabilities. ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. A tax benefit from an uncertain position is recognized only if it is “more likely than not” that the position is sustainable upon examination by the relevant taxing authority based on its technical merit.

The Company is subject to tax filing requirements as a corporation in the federal jurisdiction of the United States. The Company sustained a net operating loss during the fiscal year 2021. Net operating losses will be carried forward to reduce taxable income in future years. Due to management’s uncertainty as to the timing and valuation of any benefits associated with the net operating loss carryforwards, the Company has elected to recognize an allowance to account for them in the financial statements, but has fully reserved it. Under current law, net operating losses may be carried forward indefinitely.

The Company is subject to franchise tax filing requirements in the State of Delaware domiciled in California.

# Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, *Leases (Topic 842)*, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for most leases previously classified as operating leases. Subsequently, the FASB has issued amendments to clarify the codification or to correct unintended application of the new guidance. The new standard is required to be applied using a modified retrospective approach, with two adoption methods permissible: (1) apply the leases standard to each lease that existed at the beginning of the earliest comparative period presented in the financial statements or (2) apply the guidance to each lease that had commenced as of the beginning of the reporting period in which the entity first applies the new lease standard.

In June 2016, the FASB issued ASU No. 2016-13, *Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments*. The pronouncement changes the impairment model for most financial assets and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. Subsequently, the FASB issued an amendment to clarify the implementation dates and items that fall within the scope of this pronouncement. This standard is effective beginning in the first quarter of 2020. The adoption of ASU 2016-13 is not expected to have a material effect on the Company’s financial position, results of operations or cash flows.

8

# THE SMART TIRE COMPANY, INC.  
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

In January 2017, the FASB issued ASU No. 2017-04, *Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment*, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This standard is effective beginning in the first quarter of 2019, with early adoption permitted. The adoption of ASU 2017-04 is not expected to have a material effect on the Company's financial statements.

In June 2018, the FASB issued ASU No. 2018-07, *Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting*, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. As a result, most of the guidance in ASC 718 associated with employee share-based payments, including most requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. This standard is effective beginning in the first quarter of 2019, with early adoption permitted. The adoption of ASU 2018-07 is not expected to have a material effect on the Company's financial statements.

# NOTE D- DEBT

During the year ended December 31, 2021, the Company issued Simple Agreements for Future Equity ('SAFE'). The SAFE agreements have no maturity date and bear no interest. The SAFE agreements provide a right to the holder to future equity in the Company in the form of SAFE Preferred Stock. SAFE Preferred Stock are shares of a series of Preferred Stock issued to the investor in an equity financing, having identical rights, privileges, preferences and restrictions as the shares of standard Preferred Stock offered to non-holders of SAFE agreements other than with respect to: (i) the per share liquidation preference and the conversion price for purposes of price-based anti-dilution protection, which will equal the conversion price; and (ii) the basis for any dividend rights, which will be based on the conversion price. The number of shares issued to the holder is determined by either (1) the face value of the SAFE agreement divided by the price per share of the standard preferred stock issued, if the pre-money valuation is less than or equal to the valuation cap; or (2) a number of shares of SAFE Preferred Stock equal to the face value of the SAFE agreement divided by the price per share equal to the valuation cap divided by the total capitalization of the company immediately prior to an equity financing event. Total capitalization of the company includes all shares of capital stock issued and outstanding and outstanding vested and unvested options as if converted.

If there is a liquidity event (as defined in the SAFE agreements), the investor will, at their option, either (i) receive a cash payment equal to the face value of the SAFE agreement ('Purchase Amount') or (ii) automatically receive from the Company a number of shares of common stock equal to the Purchase Amount divided by the price per share equal to the valuation cap divided by the Liquidity Capitalization ('Liquidity Price') (as defined in the SAFE agreements). If there are not enough funds to pay the holders of SAFE agreements in full, then all of the Company's available funds will be distributed with equal priority and pro-rata among the SAFE agreement holders in proportion to their Purchase Amounts and they will automatically receive the number of shares of common stock equal to the remaining unpaid Purchase Amount divided by the Liquidity Price.

If there is a dissolution event (as defined in the SAFE agreements), the Company will pay an amount equal to the Purchase Amount, due and payable to the investor immediately prior to, or concurrent with, the

9

# THE SMART TIRE COMPANY, INC.  
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

consummation of the dissolution event. The Purchase Amount will be paid prior and in preference to any distribution of any of the assets of the Company to holders of outstanding capital stock. If immediately prior to the consummation of the dissolution event, the assets of the Company legally available for distribution to all SAFE holders, are insufficient to permit the payment to their respective Purchase Amounts, then all of the assets of the Company legally available for distribution will be distributed with equal priority and pro-rata among the SAFE holders as a single class.

The SAFE agreements will expire and terminate upon either (i) the issuance of shares to the investor pursuant to an equity financing event or (ii) the payment, or setting aside for payment, of amounts due to the investor pursuant to a liquidity or dissolution event.

As of December 31, 2021, no SAFE agreements had been converted into equity, nor had any terminated or expired based on the terms of the agreements.

As of December 31, 2021, the Company had $1,356,381 of SAFE obligations outstanding, with a valuation cap ranging from $8,000,000 or $50,000,000. Upon conversion, the SAFE agreements will convert into shares of preferred stock.

The Company accounts for the SAFE agreements under ASC 480 (Distinguishing Liabilities from Equity), which requires that they be recorded at fair value as of the balance sheet date. Any changes in fair value are to be recorded in the statement of income. The Company has determined that the fair value at the date of issuance, and as of December 31, 2021 are both consistent with the proceeds received at issuance, and therefore there is no mark-to-market fair value adjustments required, or reflected in income for the year ended December 31, 2021.

# Related Party Loans

Since 2020, the company has issued a series of related party loans in exchange for cash for the purpose of funding continuing operations (“the Related Party Loans”). The loans do not accrue interest and are payable at a future date to be determined by management.

# NOTE E- EQUITY

Under the Company’s articles of incorporation, the Company is authorized to issue up to 10,000,000 shares of $0.00001 par value Common Stock.

Common Stock: Common shareholders have the right to vote on certain items of Company business at the rate of one vote per share of stock. Common Stock ranks behind all issues of Preferred Stock in liquidation preference

As of December 31, 2021, the number of shares issued and outstanding by class was as follows:

| Common Stock | 9,000,000 |
| --- | --- |

10

# THE SMART TIRE COMPANY, INC.  
NOTES TO FINANCIAL STATEMENTS (CONTINUED)---

# NOTE F- FAIR VALUE MEASUREMENTS

Fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows:

*Level 1* - Observable inputs, such as quoted prices for identical assets or liabilities in active markets;

*Level 2* - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly, such as quoted prices for similar assets or liabilities, or market-corroborated inputs; and

*Level 3* - Unobservable inputs for which there is little or no market data which require the reporting entity to develop its own assumptions about how market participants would price the assets or liabilities.

The valuation techniques that may be used to measure fair value are as follows:

*Market approach* - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

*Income approach* - Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models, and excess earnings method.

*Cost approach* - Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost).

# NOTE G- CONCENTRATIONS OF RISK

Financial instruments that potentially subject the Company to credit risk consist of cash and cash equivalents. The Company places its cash and cash equivalents with a limited number of high-quality financial institutions and at times may exceed the amount of insurance provided on such deposits.

# NOTE H- SUBSEQUENT EVENTS

Management considered events subsequent to the end of the period but before December 1, 2022, the date that the financial statements were available to be issued.

Subsequent to the period, the company amended and restated their articles of incorporation to increase the number of authorized common shares to 11,683,886 at $0.0001 par value and is authorized to issue up to 1,683,887 of $0.00001 par value preferred stock

Subsequent to the period, the Company issued approximately 12,428 preferred shares in exchange for cash proceeds of approximately $59,170.

11

**Attachment 7:** `document_7.pdf`

Contact

www.linkedin.com/in/yennie
(LinkedIn)

Top Skills

Start-ups

Node.js

ElasticSearch

# Brian Yennie

CTO | Founder | Engineer | Hardware | Clean Tech
Los Angeles Metropolitan Area

Experience

The SMART Tire Company

Co-Founder

August 2020 - Present (2 years 7 months)

Los Angeles Metropolitan Area

IDEX

Senior Software Engineer

September 2018 - Present (4 years 6 months)

Building the leading decentralized cryptocurrency exchange

CelticsStrong

Chief Celtics Fan

August 2018 - Present (4 years 7 months)

Boston, MA

Owner/ operator of the #1 Boston Celtics fan forum

Fanstreme

Co-Founder

June 2016 - Present (6 years 9 months)

Greater Los Angeles Area

Vesta Home (formerly Showroom)

VP of Technology

February 2018 - September 2018 (8 months)

Greater Los Angeles Area

Showroom

Senior Software Engineer

August 2016 - February 2018 (1 year 7 months)

Greater Los Angeles Area

https://byshowroom.com/

Sifaka Productions

Founder / CTO

January 2007 - August 2016 (9 years 8 months)

Page 1 of 2

FunGoPlay
Director of Technology
November 2010 - August 2012 (1 year 10 months)

Worldwide Biggies
Director of Technology, Virtual Worlds
June 2010 - November 2010 (6 months)

QLD Learning
CTO
April 2002 - October 2006 (4 years 7 months)

Curriculum Facilitators Corp.
Software Engineer
January 1999 - April 2002 (3 years 4 months)

# Education

Dartmouth College
Mathematics and Computer Science · (1998 - 1999)

Carleton College
Mathematics and Computer Science · (1997 - 1998)

Page 2 of 2

**Attachment 8:** `document_8.pdf`

Contact

www.linkedin.com/in/earlcole
(LinkedIn)

Top Skills

Digital Media
Marketing
Advertising

Certifications

Blockchain: Beyond the Basics
Supply Chains for Manufacturing:
Capacity Analytics, edx
Business and Impact Planning for
Social Enterprises, edx
Global Strategy

Honors-Awards

Rare Champion of Hope Award
Nominee
Reasons To Believe Award Winner
CBS Sole Survivor Winner
1st Place "People's Choice Award"
Winner
NASA Certificate of Appreciation,
Startup Series

Publications

Tire company startup to use NASA
technology
Survivor Winner Outwits the NCAA
What is the adult experience of
Perthes disease?
How one founder partnered with
NASA...
First Unanimous Winner Ever

Patents

Interactive Region-Based Advertising
Into Real Time Video Content
System and Method for Integrating
Interactive Advertising Into Real
Time Video Content

# Earl Patrick Cole

CEO at The SMART Tire Company | Innovator | Motivator | Producer
| Philanthropist
Los Angeles Metropolitan Area

Summary

Highly-driven Serial Entrepreneur, Senior Executive, Keynote
Speaker and Investor, turning creative & scientific ideas into
powerful narratives, policies and socially-responsible business
strategies. A focused and empathetic leader leveraging 15+ years
of designing smart technology solutions to fuel disruptive innovation,
commercialization and sustainability.

Passionate about developing/marketing products and content
that positively impacts consumers and culture around the world,
increasing value through diversity, equity, inclusion, and purpose.
Traveled to over 50 countries and love learning new things, meeting
new people, sharing in different ideas, critical thinking, emerging
technologies, music, art and science.

Feel free to message me anytime. Although I'm busy working on the
future (and the #GirdDad life), I still make time to live in the present.
So, what's your story?

Experience

The SMART Tire Company
Co-Founder & CEO
August 2020 - Present (2 years 7 months)
Los Angeles, California, United States

Proprietary and sustainable technologies for the electric mobility, automotive,
aerospace, trucking and transportation industries, using advanced materials
and innovative design. Private company and NASA partner.

As seen on Shark Tank, TechCrunch, Fast Company, Mashable, Popular
Science, Car & Driver, Bike Radar, Yahoo!, GOOD, Engadget, Business
Insider, NASA.gov and more.

Page 1 of 7

Interactive Advertising and Metadata
Into Real Time Video Content
E-Commerce Into Real Time Video
Content Advertising

Techstars

2 years

Mentor, Techstars NYC Accelerator

2022 - Present (1 year)

New York City Metropolitan Area

Mentor, Techstars Starbust Space Accelerator

2021 - Present (2 years)

Los Angeles, California, United States

Mentor, Comcast NBCUniversal LIFT Labs Accelerator

2021 - Present (2 years)

Philadelphia, Pennsylvania, United States

California State University, Chico

Engineering Leadership Advisory Council

2021 - Present (2 years)

Greater Sacramento

NASA - National Aeronautics and Space Administration

Licensee & Partner

2020 - Present (3 years)

Cleveland, Ohio, United States

Space Act Agreement with NASA Glenn Research Center to further develop and commercialize licensed technologies involving superelastic shape memory alloys. Exclusive license & partnership for select tire/wheel technologies derived from the Mars Rover Program and newly developed IP through STC collaboration and terrestrial/extraterrestrial applications.

Stanford Seed

Consultant

2020 - Present (3 years)

Stanford, California, United States

Seed is a Stanford Graduate School of Business-led initiative that's working to end the cycle of global poverty. The Stanford Institute for Innovation in Developing Economies, partners with entrepreneurs and businesses in emerging markets throughout Africa and South Asia, to build thriving enterprises that transform lives and make a positive impact in their communities.

University of Washington - Michael G. Foster School of Business

Page 2 of 7

3 years

Mentor, Master of Science in Entrepreneurship (Graduate Program)

2020 - Present (3 years)

Seattle, Washington, United States

Judge, Buerk Center for Entrepreneurship, Dempsey Startup Competition

2020 - Present (3 years)

Judge, Hollomon Health Innovation Challenge (Graduate Program)

2020 - Present (3 years)

Seattle, Washington, United States

Fanstreme

Co-Founder

2016 - Present (7 years)

Greater Los Angeles Area

Fanstreme develops custom applications and interactive technologies for professional sports and entertainment properties, launching creative content and brand promotions through emerging platforms, AI, Web3, and digital media that fully engages fans 24/7.

Owns and operates fandom platforms and content (i.e. CelticsStrong.com, LAClippers Forum, Pandemptionship, PlayersBracket, Survivor Metaverse), NFT ecosystems and social media channels, generating revenue through brand advertising, influencer partnerships and blockchain assets.

Perthes Kids Foundation

15 years 6 months

Founder & Chair of the Board

March 2015 - Present (8 years)

Greater Los Angeles Area

Established the first national nonprofit health organization (501c3) to support children and families affected by Legg-Calvé-Perthes disease, a rare form of osteonecrosis (5 out of every 100,000 kids diagnosed) that makes it painful to walk, run, or even play, like most children.

Through global advocacy, innovative programs, and cause-based marketing, was able to grow organization to currently being the largest patient organization in the world dedicated to this particular disease, and a leader in the rare disease and health community.

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Implements community programming and fundraising events to advocate for research, education and awareness, in conjunction with doctors, hospitals, government and corporate partners, raising funds for various charity initiatives.

- Perthes Kids Foundation
- Perthes Kids Foundation Australia & New Zealand Ltd.
- Perthes Kids Foundation UK
- Perthes Kids en Español
- Camp Perthes International
- International Perthes Study Group (Partner)
- Perthes Disease Research Institute (2024)

President & CEO

July 2013 - Present (9 years 8 months)

Created Camp Perthes in 2013, a summer camp program for kids and volunteers diagnosed with Perthes disease, that has expanded internationally serving hundreds of families every year, around the globe, with locations/partners in the USA, Australia, UK, Spain, Italy, Colombia, Argentina, South Africa, India & Japan.

Founder

September 2007 - Present (15 years 6 months)

As a former rare patient and Kansas City native, founded a charitable fund (Earl Cole Fund) to raise money and awareness for Perthes disease research and education, in partnership with the University of Kansas Medical Center and KU Endowment Fund.

Brave Spark

Head of Business Development & Content, North America

2018 - 2018 (less than a year)

London, England, United Kingdom

Lead the day-to-day of an award-winning London/UK-based content agency's expansion into North America (contract), specializing in cost-effective marketing and brand imagination, creating memorable content for clients like Pepsi, Jeep, Warner Bros. & Arsenal Football - from TV production, mobile marketing applications, to VR and interactive campaigns.

Identified, analyzed and developed sales opportunities to pitch and manage agency creative services to companies and brands (e.g.: NBA, Bose, NBC,

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Lexus, Tastemade & Brand Jordan), through new and previous business/
media relationships and RFPs.

# GOOD Worldwide Inc

Brand Partnerships Consultant

2015 - 2015 (less than a year)

Los Angeles, California

Conceptualized and executed socially impactful partnership activations, digital
marketing and media campaigns, celebrating global citizens, inspirational
change-makers, and causes for media publishing agency's portfolio of Fortune
1000 companies and non-profits looking to "Do Good" in the world. Clients:
Google/Nest, Lululemon, Apple, Patagonia, Starbucks, Walgreens, The United
Nations Foundation and more. Company merged with Upworthy to become the
world leader in social good media and consulting.

# Smush Mobile Technologies

Co-Founder & Managing Partner

2013 - 2015 (2 years)

Santa Monica, CA

Defined company vision and launched first SMS mobile marketing company
(hardware & software) providing affordable products and data subscription
service to small- to medium-sized businesses, generating over 200 clients in
less than two years in partnership with T-Mobile Business.

# Particle 5 Interactive

Co-Founder & CEO

2010 - 2013 (3 years)

Los Angeles, CA

Invented/pioneered and co-developed proprietary, in-video/photo advertising
technology for mobile platforms, through a method we named "product
placement tagging" and video streaming innovation for TV and social media
content. Ability to tag, highlight, touch/tap on products within content on-screen
to reveal more info about product, purchase, or save item for later viewing. *
Technology now referred to as "shoppable tags" and widely used on Instagram
& Facebook/Meta as of 2017 to present day.

# CBS Corporation

Survivor Winner, Fiji

2007 - 2012 (5 years)

New York, NY

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Proven leader and team player in one of the most dire of mental, physical and social situations, first contestant ever to be voted as unanimous winner of this challenging game and iconic reality TV series, also invited to return as a contestant 4 other seasons post original appearance.

Hosted or appeared in, several TV specials/talk shows/events around the world. Used celebrity to establish talent management company, and partnered with Armed Forces Entertainment (US Military) to create and produce entertainment-based events around the world, concert tours, charity fundraisers, autograph signings, and meet & greets, with cast members from popular Reality TV franchises, Survivor, American Idol, Big Brother, The Amazing Race and So You Think You Can Dance, for overseas U.S. Military troops in Guam, Japan, Singapore, Okinawa, Diego Garcia, Italy, Egypt and Germany.

# Muse Communications

Senior Account Executive, Honda

2005 - 2007 (2 years)

Hollywood, CA

Developed and managed targeted automotive campaigns and 360 promotional strategies for full-service, multicultural, advertising agency's top account, Honda, facilitating and executing a multimillion dollar, annual ad budget for Honda Civic, Accord and Acura (digital, social, print, radio & TV commercials).

# The Walt Disney Company

5 years

# Film Development

2000 - 2003 (3 years)

Burbank, California, United States

Managed Walt Disney Studios Writers Program, worked closely with in-house screenwriters, film producers and creative executives, read/covered script submissions, developed and pitched story ideas for Walt Disney Productions.

# Brand Marketing

1998 - 2000 (2 years)

Burbank, California, United States

Coordinated marketing campaigns for Buena Vista Home Entertainment major DVD releases for (Disney & Pixar) feature animation properties and franchises: Toy Story, Finding Nemo, Lion King, A Bug's Life, Pocahontas, Hunchback of Notre Dame and Beauty & The Beast.

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## Education

University of Southern California

Doctoral Student, USC Rossier School (Ed.D), Organizational Change and Leadership Doctorate Program (deferred)

Stanford University Graduate School of Business

Executive Program for Nonprofit Leaders (EPNL), Entrepreneurship and Social Innovation

Massachusetts Institute of Technology

Executive Education, Sloan School of Management / Computer Science and Artificial Intelligence Lab, Artificial Intelligence and Implications for Business Strategy

Harvard Business School

HBS Executive Education Program, Entrepreneurship/Entrepreneurial Studies

University of Washington

B.A., Marketing, Business Administration and Management, General

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### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** The SMART Tire Company, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 08-12-2020

**Physical Address:** 1450 Firestone Parkway, Unit E, Akron, OH, 44301

**Issuer Website:** https://smarttirecompany.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:** 7.5% 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:** Preferred Stock

**Number of Securities Offered:** 21739

**Price per Security:** $5.00

**Method for Determining Price:** Dividing pre-money valuation $54,454,595.00 (or $50,098,227.40 for investors in the first $500,001.60) by number of shares outstanding on fully diluted basis.

**Target Offering Amount:** $99,999.40

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** As determined by the issuer

**Maximum Offering Amount:** $4,921,816.60

**Deadline to Reach Target Amount:** 04-30-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 3

**Total Assets (Most Recent Fiscal Year):** $969,790.00

**Total Assets (Prior Fiscal Year):** $576.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $845,135.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $576.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $41,661.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $1,365,976.00

**Long-Term Debt (Prior Fiscal Year):** $2,100.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $170.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-436,413.00

**Net Income (Prior Fiscal Year):** $-1,524.00

**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:** The SMART Tire Company, Inc.

**Signature:** Brian Yennie

**Title:** CTO

---

**Signature:** Earl Cole

**Title:** CEO

**Date:** 02-15-2023

---

**Signature:** Brian Yennie

**Title:** CTO

**Date:** 02-15-2023