# EDGAR Filing Document

**Accession Number:** 0001807577
**File Stem:** 0001670254-23-000153
**Filing Date:** 2023-2
**Character Count:** 275309
**Document Hash:** 20915aebd7914fcbea5db922374d1362
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000153.hdr.sgml**: 20230221

**ACCESSION NUMBER**: 0001670254-23-000153

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 11

**FILED AS OF DATE**: 20230221

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cornbread CBD, PBC
- **CENTRAL INDEX KEY:** 0001807577
- **IRS NUMBER:** 832734432
- **STATE OF INCORPORATION:** KY

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31840
- **FILM NUMBER:** 23645011

**BUSINESS ADDRESS:**
- **STREET 1:** 2517 DATA DRIVE
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40299
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 2517 DATA DRIVE
- **STREET 2:** SUITE 203
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40299

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

Cornbread CBD, PBC

Legal status of issuer:

Form: Other

Other (specify): Public Benefit Corporation

Jurisdiction of Incorporation/Organization: KY

Date of organization: 1/31/2019

Physical address of issuer:

2517 Data Drive

Louisville KY 40299

Website of issuer:

https://www.cornbreadhemp.com

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

OK number of intermediary:

0001670254

SEC No number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

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

6.5% 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.

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

No

Type of security offered:

☐ Common Stock

☑ Preferred Stock

☐ Debt

☐ Other

If Other, describe the security offered:

Target number of securities to be offered:

3,760

Price:

$13.25000

Method for determining price:

Dividing pre-money valuation of $9,998,258 by number of shares outstanding on fully diluted basis, not including the 238,683 outstanding preferred shares that were sold at the same share price to accredited investors before this Reg CF campaign took place.

Target offering amount:

$50,009.40

Oversubscriptions accepted:

☑ Yes

☐ No

If yes, disclose how oversubscriptions will be allocated:

☐ Pro-rata basis

☐ First-come, first-served basis

☑ Other

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

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

$324,994.95

Deadline to reach the target offering amount:

4/30/2023

NOTE: If the sum of the investment commitments does not equal or exceed the target

Investing amounts at the offering (see Section 4) and the following: Investment commitments will be cancelled and committed funds will be returned.

Current number of employees:

22

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $608,450.00 | $536,549.00 |
| Cash & Cash Equivalents: | $253,583.00 | $401,142.00 |
| Accounts Receivable: | $6,409.00 | $3,948.00 |
| Short-term Debt: | $692,518.00 | $25,132.00 |
| Long-term Debt: | $98,763.00 | $446,441.00 |
| Revenues/Sales: | $1,855,863.00 | $429,871.00 |
| Cost of Goods Sold: | $609,590.00 | $177,363.00 |
| Taxes Paid: | $175.00 | $0.00 |
| Net Income: | ($147,807.00) | ($9,022.00) |

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

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

## Offering Statement

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

Be very careful and precise in answering all questions. Give full and complete answers so that they are not misleading under the circumstances involved. Do not discuss any future performance or other anticipated event unless you have a reasonable basis or believe that it will actually occur within the foreseeable future. If any answer requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management and principal shareholders may be liable to investors based on that information.

### THE COMPANY

1. Name of issuer:

Cornbread CEO, PBC

### COMPANY ELIGIBILITY

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

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

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

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

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

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

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Eric J. Zipperle | CEO | Combread Hemp | 2019 |
| James C. Higdon, III | Chief Communications Officer | Combread Hemp | 2019 |

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

### OFFICERS OF THE COMPANY

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

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Eric J. Zipperle | President | 2019 |
| Eric J. Zipperle | CEO | 2019 |
| James C. Higdon, III | Vice President | 2019 |

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

INSTRUCTION TO QUESTION 1: For purposes of this Question 1, the term officer means a president, vice president, secretary, successor or principal financial officer, comptroller or principal accounting officer, and any person that regularly performs similar functions.

TECHNICAL SECURITY HOLDERS

# PRINCIPAL SECURITY HOLDERS

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

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| James C. Higdon, III | 287712.0 Common | 44.4 |
| Eric J. Zipperle | 287712.0 Common | 44.4 |

INSTRUCTION REQUESTION 6. The above information must be provided as of a date that is between than 120 days prior to the date of filing of this offering statement.

To calculate total voting power include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to own or endorse the voting of such securities. If the person has the right to acquire voting power of such securities within 90 days, including through the exercise of any option, accrued on right, the conversion of a security, or other arrangement, or if securities are held to a member of the family through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or share in such direction or control - as, for example, a corporation that should be included as being "benefitable on sale"). You should include an explanation of these circumstances in a format to the "Number of and Class of Securities Now Held". To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

# BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the anticipated business plan of the issuer. For a description of our business and our business plan, please refer to the attached Appendix A. Business Description & Plan

INSTRUCTION REQUESTION 7. Webender will provide your company's Webender profile as an appendix (Appendix A) to the Form C to PDF format. The submission will include all Q&A items and "total more" links to an uncollapsed format. All values will be researched.

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

# RISK FACTORS

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

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

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

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

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

Reliance on Third Party Growers. The Corporation will not grow hemp, and therefore the Corporation will rely upon licensed farmers to grow and provide the hemp. There can be no assurance that these farmers will be able to produce hemp in any given season, that they will comply with applicable laws, that they will be able to produce consistent, high quality hemp, or that they will sell an adequate supply of hemp to the Corporation's processors. Farmland availability, farmer availability, weather conditions, insects, human error, and government regulation and intervention are among many factors that could limit the production of hemp. Excessive demand for hemp by competitors, exclusive supply contracts with competitors, and high crop prices are among many factors that could impact the ability of the Corporation's processors to obtain the hemp raw material they need to produce their products. Furthermore, every hemp plant is different, and therefore every batch of hemp CBD products will be different. Thus, consistency in quality of both the hemp and the CBD product could be a problem.

Role of Marketing Professionals. The success of the Corporation will depend in part upon the skill and marketing expertise of the Corporation's marketing professionals. There can be no assurance that such professionals will continue to be associated with the Corporation throughout the life of the Corporation or that replacements will perform well.

Reliance on the Management Team. The Corporation will be managed by Eric J. Zipperle, as President, and James Cecil Higdon, III, as Vice President (the "Management Team"). The Corporation's future profitability will depend largely upon the business acumen of the Management Team generally, and the President specifically. The President has the power to fill any vacancies caused by the death, disability, or resignation of a member of the Management Team. Although additional persons may join the Corporation's Management Team, the Corporation's success is dependent in part on the continued availability to the Corporation of the services of the President. Likewise, the Corporation's success will depend, to a great extent, on the judgment and ability of the Management Team and its key personnel. The loss of the services of a member of the Management Team could have a materially adverse effect on the ability of the Management Team to successfully manage the Corporation's business.

Marketing Risks. To date, CBD companies have been unable to take advantage of certain marketing tools like Google Adwords and Facebook Ads. Because of the nature of business of hemp companies, large corporations like Facebook and Google have refused to allow the marketing of such products. As such, there can be no assurance that the rules related to the current marketing model (instagram) will not change. As the market changes every day, new rules and regulations are being implemented that could have a negative effect on the Corporation and its profitability.

Restrictions on Promoting CBD Products. The FDA and the pharmaceutical industry have grown increasingly concerned at the proliferation of CBD products claiming to treat or cure certain diseases or conditions. Existing and future restrictions and controversies over what legally can and cannot be said about a CBD product could have a chilling effect on sales and could expose the Corporation to litigation. Furthermore, the lack of FDA regulations and the delay in enacting these regulations could suppress the growth of the CBD market generally, which could negatively impact the Corporation.

Hemp Industry Risks Generally. The Corporation's business will be subject to the risks inherent in the ownership and operation of hemp-related business. These risks include, but are not limited to, those associated with the burdens of ownership of a hemp related business; general and local economic conditions; changes in supply of and demand for hemp and hemp CBD products (as a result, for instance, of a market collapse); the financial resources of consumers; changes in hemp policy; environmental and other laws; supply shortages; various uninsured or unfavorable risks; natural disasters; changes in government regulations (such as shipping hemp products across state lines); changes in hemp related taxes; negative developments in the economy that depress buying activity; environmental liabilities; terrorist attacks; war; and other factors that are beyond the control of the Corporation's board of directors and officers ('Company Management').

Supply Chain Risks. Although the supply chain for the Corporation's products is largely contained within the Commonwealth of Kentucky, it does receive its labeling and packaging from vendors elsewhere in the United States. Additionally, the containers used by the Corporation for its product packaging (glass bottles, glass jars, plastic lids) are procured through the global supply chain. Certain disruptions of the global supply chain could affect availability and pricing of these materials.

Potential Regulation of the Hemp Industry. There has not been any significant discussion recently regarding enhanced governmental scrutiny and/or increased regulation of the hemp industry. However, it is uncertain what form and in what jurisdictions such enhanced scrutiny, if any, ultimately may take. As a result, there can be no assurance that the foregoing will not have an adverse impact on the Corporation or otherwise impede the Corporation's ability to effectively achieve its business objectives.

Problems with Shared State-Federal Regulatory Power. The Farm Bill contemplates the ability of a state government and the federal government to cooperate and effectively work together to facilitate the growth and maintenance of the CBD industry. Delays and breakdowns at the federal level, state level or both could adversely affect the Corporation.

Backlash from the Healthcare Industry. Existing players in the U.S. healthcare system who could lose sales volume or revenues due to increased sales of CBD products pose a continuing short-term and long-term threat to the CBD industry because of their tremendous financial resources and lobbying capabilities.

General Economic Conditions. The hemp industry generally and the success of the Corporation's business activities both will be affected by general economic and market conditions, as well as by changes in laws and national, international and state political and socioeconomic circumstances. A sustained downturn in the United States or global economy (or any particular segment thereof) could adversely affect the Corporation's profitability or impede the Corporation's ability to maintain or continue any growth in sales.

Market Conditions. The Corporation's strategy may be based, in part, upon the premise that qualifying hemp will be available for purchase by the Corporation at a price that the Corporation considers favorable. Further, the Corporation's strategy relies, in part, upon local hemp farmers outperforming other geographical areas. No assurance can be given that hemp CBD will always be obtainable at favorable prices or that the market for such hemp will hold in value, as the case may be, since this will depend, in part, upon events and factors outside the control of the Corporation.

Highly Competitive Market. The activity of buying a large amount of hemp CBD inventory for resale is highly competitive and involves a high degree of uncertainty. The Corporation will be competing for customers with other local and national hemp CBD brands, as well as the numerous large players that continue to enter the market every day. Hemp CBD is a limited commodity, and there can be no assurance that a large-scale retailer will not buy the entire supply, leaving small businesses out of business. There can be no assurance that governmental intervention into the market will not have a negative impact on the profitability and success of the Corporation.

Taxation and Other Causes of Price Increases. Federal, state and local governments may create and assess new forms of taxes on the sale, processing and/or storage of hemp and CBD products, thereby making the cost to the consumer prohibitive. As witnessed in the domestic tobacco industry, these taxes could substantially decrease the demand for the Corporation's products. Furthermore, because the Corporation anticipates selling a substantial portion of retail products to millennials, any factor that adversely impacts a millennial's disposable income could adversely impact the Corporation. Additionally, inflation and inflationary pressures in the economy could cause an increase in costs for materials and ingredients for the Corporation and decreased consumer confidence which could negatively impact the Corporation's growth.

No Assurance of Investment Return. The Corporation cannot provide assurance that the Corporation will be profitable, that it will be able to generate returns for its Shareholders, or that the returns will be commensurate with the risks of investing in the Stock. There can be no assurance that any Shareholder will receive any distribution from the Corporation. Accordingly, an investment in the Corporation should only be considered by persons who can afford a loss of their entire investment.

Public Benefit Corporation Risks. The Corporation is a public benefit corporation, meaning the Corporation takes into account the interest of all stakeholders, not just shareholders. As such, the Corporation will make decisions based on the morality and efficacy of the issue at hand, and not necessarily the profitability of such decisions. Therefore, there can be no assurance that the Corporation will continue to remain profitable after its social initiatives are accounted for and realized.

Dilution from Issuances of Additional Stock. If the Corporation issues additional shares of its stock other than in accordance with existing ownership percentages, a Shareholder's ownership interest in the Corporation will be diluted.

No Market for Stock; Restrictions on Transfers. Stock in the Corporation has not been registered under the 1933 Act, the securities laws of any U.S. state or the securities laws of any other jurisdiction and, therefore, cannot be sold unless they are subsequently registered under the 1933 Act and other applicable securities laws, or an exemption from registration is available. The Corporation does not contemplate making a registration under the 1933 Act or other securities laws. There is no public market for Stock in the Corporation, and one is not expected to develop. A Shareholder will not be permitted to assign, sell, exchange or transfer any of the Shareholder Stock, except as provided in the Shareholder Agreement. Shareholders must be prepared to bear the risks of owning Stock for an extended period of time.

Wolvency and Lack of Liquidity. For a variety of reasons, it is possible that the Corporation may run out of cash prior to reaching a sales volume that yields sufficient cash inflow to pay the Corporation's debts and expenses as they come

due in the ordinary course of business.

Unavailability of insurance against Certain Catastrophic Losses. The Corporation intends to maintain property, commercial general liability and workers compensation insurance with limits and policy specifications that Company Management believes are customary for this industry. However, certain losses of a catastrophic nature, such as wars, natural disasters, terrorist attacks or other similar events, may be either uninsurable or, insurable at such high rates that to maintain such coverage would cause an adverse impact on the related investments. In general, losses related to terrorism are becoming harder and more expensive to insure. Most insurers are excluding terrorism coverage from their air-risk policies. In some cases, the insurers are offering significantly limited coverage against terrorist acts for additional premiums, which can increase greatly the total costs of casualty insurance for a property. As a result, the Corporation's business and properties may not be insured against terrorism.

Environmental Liabilities. The Corporation may be exposed to substantial risk of loss arising from the selling CBD products having undisclosed or unknown environmental, health or occupational safety issues, or arising from inadequate reserves, insurance or insurance proceeds for such matters that have been previously identified. Under various federal, state and local laws, ordinances and regulations, an owner of a hemp related business potentially may be liable to consumers purchasing products made from affected hemp. Such laws may now or hereafter impose joint and several liability, which can result in a party being obligated to pay for greater than its share, or even all, of the liability involved. Such liability also potentially could be imposed without regard to whether the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of such substances may adversely affect the owner's ability to sell hemp products or to borrow funds using inventory as collateral, which could have an adverse effect on the Corporation's returns. The Corporation is also at risk of any catastrophic environmental event that may lead to a shortage of Kentucky grown hemp that would be detrimental to the availability of Cornbread CBD products.

Banking Risks. There have been many stories of certain banks suddenly shutting down and freezing certain accounts. A financial event may occur that will negatively impact the operation of the Corporation and its profitability. Such risks include having funds frozen by the Corporation's bank, shutting down the payment processor so that transactions fail to process, and charging higher prices to provide banking and financing services that may be out of the realm of profitability for the Corporation. Additionally, the Corporation may find it difficult to secure financing from traditional banking institutions because of the banking industry's skepticism of the CBD industry and insufficient collateral.

Trademark Risks. The U.S. Patent and Trademark Office does not issue patents or trademarks to hemp CBD businesses, citing the lack of regulations from the U.S. Food and Drug Administration. The Corporation has filed a trademark application for "Cornbread" and is the first company to do so. However, this proper filing of the appropriate paperwork might not prevent the Corporation from being forced to defend its exclusive use of the word "Cornbread" on consumer packaged goods.

Certification Risks. The Corporation holds a certificate from the USDA National Organic Program. The Corporation's good standing with consumers depends in part on maintaining this certification. In the past, the Corporation successfully defended itself against complaints made by competitors to the USDA organic program. Should the Corporation lose the ability to market itself as USDA organic, its revenues and profitability could suffer. This is also true of any other certification of license that the Corporation may receive in the future, including but not limited to: B Corp certification, GMP certification, hemp processor license, food safety certification, Leaping Burry certification, etc.

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

INSTRUCTION REQUESTION 9. Avoid prescribed documents and include only those factors that are unique to the issues. This notice should be referred to the issuer's business and the offering and should not report the factors addressed to the issuer's net profit above. No specific number of risk factors as required to be identified.

# The Offering

## USE OF FUNDS

9. What is the purpose of this offering?

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

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

If not listed: $50,009

Use of proceeds: From the first $50K raised, 93.5% will go to digital marketing ad spend, and 6.5% towards the Wefunder fee.

If not listed: $324,995

Use of proceeds: From our maximum target of $325K, we plan to spend 44% on lab equipment, 27% on materials and inventory, 22.5% on growth marketing, and 6.5% on Wefunder fees.

INSTRUCTION REQUESTION 10. The issuer must provide a reasonably detailed description of any intended use of proceeds, such that investors are provided with an adequate amount of information to understand how the offering proceeds will be used. If an issuer has identified a range of possible uses, the issuer should identify and describe such probable use and the factors the issuer may consider in allocating proceeds among the potential user. If the issuer will accept proceeds in excess of the unique offering amount, the issuer must describe the purpose, method for allocating unaccompanied items, and intended use of the various proceeds with similar specificity. Please include all potential uses of the proceeds of this offering, including any that may apply only in the case of unaccompanied items. If you do not do so, you may have to respond to a second year from 1. Wefunder is not responsible for any failure by you to describe a potential use of offering proceeds.

DELIVERY & CANCELLATIONS

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

Book Entry and Investment in the Co-Issuer. Investors will make their investments by investing in interests issued by one or more co-issuers, each of which is a special purpose vehicle ("SPV"). The SPV will invest all amounts it receives from investors in securities issued by the Company. Interests issued to investors by the SPV will be in book entry form. This means that the investor will not receive a certificate representing his or her investment. Each investment will be recorded in the books and records of the SPV. In addition, investors' interests in the investments will be recorded in each investor's "Portfolio" page on the Wefunder platform. All references in this Form C to an investor's investment in the Company (or similar phrases) should be interpreted to include investments in a SPV.

12. How can an investor cancel an investment commitment?

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

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

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

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

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

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

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

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

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

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

## Ownership and Capital Structure

### THE OFFERING

13. Describe the terms of the securities being offered:

Priced Round: $9,998,268 pre-money valuation

See exact security attached as Appendix B, Investor Contracts

Cornbread CBD, PBC is offering up to 24,565 shares of Preferred Stock, at a price per share of $13.23.

The campaign maximum is $324,994.95 and the campaign minimum is $10,009.40.

### Securities Issued by the SPV

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

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

### Voting Rights

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

# Proxy to the Lead Investor

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

# Restriction on Transferability

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

14. Do the securities offered have voting rights?

☐ Yes
☑ No

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

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

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

This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by all parties.

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

A. Wefunder Portal may amend the terms of an investment contract, provided that the amended terms are more favorable to the Investor than the original terms; and

B. Wefunder Portal may reduce the amount of an investor's investment if the reason for the reduction is that the Company's offering is oversubscribed.

# RESTRICTIONS ON TRANSFER OF THE SECURITIES BEING OFFERED:

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

1. to the issuer;

2. to an accredited investor;

3. as part of an offering registered with the U.S. Securities and Exchange Commission; or

4. to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstances.

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

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

# DESCRIPTION OF ISSUER'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Preferred | 1,000,000 | 238,693 | No |
| Common | 1,000,000 | 647,352 | Yes |

Securities Reserved for Issuance upon Exercise or Conversion

Warrants:

Options:

109,375

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 materially limited, diluted or qualified by the rights of any other class of security identified above?

The holders of a majority-in-interest of voting rights in the Company could limit the Investor's rights in a material way. For example, those interest holders could vote to change the terms of the agreements governing the Company's operations or cause the Company to engage in additional offerings (including potentially a public offering).

These changes could result in further limitations on the voting rights the Investor will have as an owner of equity in the Company, for example by diluting those rights or limiting them to certain types of events or consents.

To the extent applicable, in cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if now awards.

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

Based on the risk that an Investor's rights could be limited, diluted or otherwise qualified, the Investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.

Additional risks related to the rights of other security holders are discussed below, in Question 20.

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

No.

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

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

For example, the shareholders may change the terms of the Articles of Incorporation for the company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The 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 force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its viability. In cases where the rights of holders of convertible debt, SAPES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional 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 valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.

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

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

1. unrelated third party valuations of our common stock;
2. the price at which we sell other securities, such as convertible debt or preferred Stock, in light of the rights, preferences and privileges of our those securities relative 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 marketability of our common stock;
6. the hiring of key 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 material 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 correlate to those characteristics, and/or methodologies that compare transactions in similar securities issued by us that were conducted in the market.

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

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

The marketability and value of the Investor's interest in the Company will depend upon many factors outside the control of the Investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision-making of its Board Of Directors, and the Investor will have no independent right to name or remove 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 declining of an opportunity or the inability of the investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the Investor's interest in the Company.

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

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

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

A sale of the issuer or of assets of the issuer. As a minority owner of the Company, the Investor will have limited or no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the Investor will rely upon the executive management of the Company 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 disposition of a substantial portion of the Company's assets, there can be no guarantee that the value received by the Investor, together with the fair market estimate of the value remaining in the Company, will be equal to or exceed the value of the Investor's initial investment in the Company.

Transactions with related parties. The Investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management 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 arm's length, 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.

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

Loan

| Lender | U.S. Small Business Administration |
| --- | --- |
| Issue date | 06/08/20 |
| Amount | $54,200.00 |
| Outstanding principal plus interest | $52,690.90 as of 01/01/23 |
| Interest rate | 3.75% per annum |
| Maturity date | 06/09/50 |
| Current with payments | Yes |

On June 9, 2020, the Company executed the standard loan documents required for securing a loan (the "KIDL loan") from the United States Small Business Administration ("the SBA") under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company's business. The principal amount of the KIDL loan is $54,000, with proceeds to be used for working capital purposes. Interest on the KIDL loan accrues at the rate of 3.75% per annum and installment payments, including principal and interest, are due monthly beginning twenty-four months from the date of the KIDL loan in the amount of $265. The balance of principal and interest is payable thirty years from the date of the promissory note. In connection with the KIDL loan, the Company executed the KIDL loan documents, which include the SBA Secured Disaster Loan Note, dated June 9, 2020, and the Security Agreement, dated June 9, 2020, each between the SBA and the Company. This loan is secured by the assets of the Company.

Loan

| Lender | Lawrence Doyle |
| --- | --- |
| Issue date | 04/14/21 |
| Amount | $100,000.00 |
| Outstanding principal plus interest | $50,000.00 as of 01/01/23 |
| Interest rate | 0.0% per annum |
| Maturity date | 04/15/24 |
| Current with payments | Yes |

During 2021, the Company purchased from Lawrence Doyle, a shareholder 71,928 shares common stock placed in treasury, payable in four annual installments of $25,000 with the first payment beginning in 2021. A non-interest bearing promissory note has been issued for the portion of the amount unpaid. This loan is unsecured.

Loan

| Lender | Gill Holland |
| --- | --- |
| Issue date | 09/19/22 |
| Amount | $300,000.00 |
| Outstanding principal plus interest | $300,000.00 as of 01/01/23 |
| Interest rate | 7.0% per annum |

| Maturity date | 09/30/25 |
| --- | --- |
| Current with payments | Yes |

Gill Holland, an investor, loaned the Company $500,000 in September 2022 to facilitate the down payment of the seller-financed acquisition of the assets of the Company's processing partners.

Loan

| Lender | Henry Scott Baesler |
| --- | --- |
| Issue date | 10/05/22 |
| Amount | $900,000.00 |
| Outstanding principal plus interest | $830,862.01 as of 01/06/23 |
| Interest rate | 6.0% per annum |
| Maturity date | 09/30/25 |
| Current with payments | Yes |

This is the seller-financed portion of the acquisition of our processing partner. In October 2022, we purchased the assets of our processor for $1.2mm, paid for with $300,000 in cash and another $300,000 borrowed from investor Gill Holland for a $600,000 down payment, with the remaining $900,000 in this seller-financed instrument.

None.

INSTRUCTION REQUISITION 24: make the creditors, amount owed, interest rate, maturity date, and any other material terms.

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 10/2020 | Regulation Crowdfunding | Convertible Note | $392,871 | General operations |
| 12/2022 | Regulation D. Rule 906(b) | Preferred stock | $1,675,000 | General operations |

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

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

☐ Yes
☑ No

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

Beneficial ownership for purposes of paragraph (1) shall be determined as of a date that is no more than 120 days prior to the date of filing of this offering, statement and using the same calculation described in Question 6 of this Question and Answer format.

The term "number of the family" includes any child, any child, grandchild, parent, acquaintance, grandparent, spouse or spousal equivalent, sibling, mother in law, father in law, son in law, daughter in law, brother in law, or close to law, of the person, and includes adoption relationships. The term "spiritual equivalent" means a calculation in copying a relationship generally equivalent to that of a spouse.

Compute the amount of a related party's interest in any transaction without regard to the amount of the preferred loan involved in the transaction. Where it is not practicable to raise the approximate amount of the interest, disclose the approximate amount involved in the transaction.

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history?

☑ Yes
☐ No

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

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

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

### Overview

USDA Organic CBD from Kentucky, 300% YOY Growth, $3.5M 12-month revenue.

Before Combread Hemp, there were no CBD brands that embraced the full history of cannabis in America. Combread Hemp embraces Kentucky's full 250 years of cannabis tradition, even when it wasn't legal. Our brand represents our passion to bring cannabis comfort into the mainstream of American life.

Our mission is to help our customers live life to its fullest potential by improving their quality of life. We do this by providing the highest quality USDA organic CBD products made from Kentucky-grown hemp flowers, with the highest legal level of THC.

In five years, we hope (but not overactive) to see Combread Hemp as a nationally

In the years, we have been a good deal for the company's business and the company's business recognized CBD brand available in major retailers nationwide.

#### Milestones

Cornbread CBD, PBC was incorporated in the State of Kentucky in January 2019.

Since then, we have:

- 300% YOY Growth; in 2022 we are beating our projections by 12% through the end of August
- $3.5M in Trailing Twelve-Month Revenue
- Raised $392K on Wefunder in 2020 from 900 investors
- 5.3 LTV:CAC and 85% gross margins
- 50% customer reorder rate

#### Historical Results of Operations

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

- **Business & Gross Margin.** For the period ended December 31, 2021, the Company had revenues of $1,855,863 compared to the year ended December 31, 2020, when the Company had revenues of $429,871. Our gross margin was 67.15% in fiscal year 2022, compared to 58.74% in 2021.
- **Assets.** As of December 31, 2021, the Company had total assets of $608,450, including $253,583 in cash. As of December 31, 2020, the Company had $536,549 in total assets, including $401,142 in cash.
- **Net Loss.** The Company has had net losses of $147,807 and net losses of $9,022 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- **Liabilities.** The Company's liabilities totaled $791,281 for the fiscal year ended December 31, 2021 and $471,573 for the fiscal year ended December 31, 2020.

#### Related Party Transaction

Refer to Question 26 of this Form C for disclosure of all related party transactions.

#### Liquidity & Capital Resources

To-date, the company has been financed with $1,775,000 in equity and $392,871 in convertible notes.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 18 months before we need to raise further capital.

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

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

#### Runway & Short/Mid Term Expenses

Cornbread CBD, PBC cash in hand is $756,666, as of February 2023. Over the last three months, revenues have averaged $713,667/month, cost of goods sold has averaged $64,935/month, and operational expenses have averaged $357,527/month, for an average net margin of $291,208 per month. Our intent is to be profitable in 18 months.

In 2022, our finances and operations have changed in the following ways: 1) We acquired our processor, which hardens our most around our operations, reduces our COGS, and increases our gross margins from 80% to more than 90%. 2) Our revenue has increased from $1.9mm in 2021 to $5mm for 2022. 3) Before going live on Wefunder, we have raised $1.675mm in Reg D Investment.

In the next 6 months (Q1 & Q2 2023), we are hoping for $4,160,076 in revenue and $4,084,949 in expenses.

According to our cash flow projections, we need to raise $1,906,917 before becoming profitable at the end of 2023. When we complete the Wefunder portion of our raise, we will have raised a total of $2,000,000, which will get us to the point of profitability.

Besides Wefunder, we have raised $1.675mm in this seed round through Reg D Investors. We are also averaging over $700,000 in monthly revenue, over the past 3 months (Sept-Nov 2022).

We will cover short-term burn throughout the Wefunder campaign with Reg D Investments and monthly revenue.

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

INSTRUCTIONS TO QUESTION 26: The discussion must cover each year for which financial statements are provided. For issuers with or prior operating history, the discussion should focus on financial statements and instruments, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether it is not a result and cash flows are warranted of what investors should expect in the future. This does not constitute the proceeds of the offering and any other issuers or pending sources of capital. Discuss how the proceeds from the offering will affect liquidity, whether involving these funds and any other additional funds is necessary to the inability of the business, and how quickly the issuer anticipates entry to available cash. Describe the other available sources of capital in the business, such as loss of credit or impaired contributions by shareholders. References to the issuer in this Question 26 and these instructions refer to the issuer and its predecessors, if any.

## FINANCIAL INFORMATION

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

Refer to Appendix C, Financial Statements

I, James C. Higdon, III, certify that:

(1) the financial statements of Cornbread CBD, PBC included in this Form are true and complete in all material respects; and

(2) the financial information of Cornbread CBD, PBC included in this Form reflects accurately the information reported on the tax return for Cornbread CBD, PBC filed for the most recently completed fiscal year.

James C. Higdon, III
Chief Communications Officer

## STAKEHOLDER ELIGIBILITY

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

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

i. in connection with the purchase or sale of any security? ☐ Yes ☑ No

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

iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

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

i. in connection with the purchase or sale of any security? ☐ Yes ☑ No

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

iii. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities? ☐ Yes ☑ No

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

i. at the time of the filing of this offering statement bars the person from:

A. association with an entity regulated by such commission, authority, agency or officer? ☐ Yes ☑ No

B. engaging in the business of securities, insurance or banking? ☐ Yes ☑ No

C. engaging in savings association or credit union activities? ☐ Yes ☑ No

ii. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or discipline conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement? ☐ Yes ☑ No

(4) Is any such person subject to an order of the Commission entered pursuant to Section 10(b) or 10(b)(c) of the Exchange Act or Section 205(a) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:

i. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal? ☐ Yes ☑ No

ii. places limitations on the activities, functions or operations of such person? ☐ Yes ☑ No

iii. bars such person from being associated with any entity or from participating in the offering of any penny stock? ☐ Yes ☑ No

(5) Is any such person subject to any order of the Commission entered within five years before the filing of this offering statement that, at the time of the filing of this offering statement, orders the person to cease and desist from committing or causing a violation or future violation of:

i. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 5(a)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☑ No

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

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

☐ Yes ☑ No

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

☐ Yes ☑ No

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

☐ Yes ☑ No

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

INSTRUCTIONS TO QUESTION 10: Final order means a written directive or declaratory statement issued by a federal or state agency. Any other action is taken in the interest of the Federal Securities Commission and/or applicable, or may be taken into consideration.

for notice and an opportunity for hearing, which constitutes a final disposition or action by that federal or state agency.

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

## OTHER MATERIAL INFORMATION

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

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

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

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

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

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

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

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

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

INSTRUCTIONS TO QUESTION 31. Information is presented to investors in a format, media or other means not able to be reflected in text or partially document format, the issuer should include:

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

## ONGOING REPORTING

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

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

33. Once posted, the annual report may be found on the issuer's website at:
https://www.combreadhemp.com/invest

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

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

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

Cornbread Hemp Subscription Agreement Final

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Eric J. Zipperle

James C. Higdon, III

Appendix E: Supporting Documents

## Signatures

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

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

Cornbread Hemp Subscription Agreement Final

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Eric J. Zipperle

James C. Higdon, III

Appendix E: Supporting Documents

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

Cornbread CBD, PBC

By

Jim Higdon

Co-founder & CCO

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

Eric Zipperle

Co-founder & President
2/16/2023

Jim Higdon

Co-founder & CCO
2/16/2023

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

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

As an authorized representative of the company, I appoint Wefunder Portal as the company's true and lawful representative and attorney-in-fact, in the company's name, 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 makes any and all defenses that may be available to contest, negate

or disaffirm the actions of Wehinder Partai taken in good faith under or in reliance upon this power of attorney.

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

CORNBREAD HEMP®

# The fastest growing CBD brand in America, shipped nationwide from Kentucky

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

cornbreadhemp.com Louisville KY

Ecommerce Consumer Goods Retail

## Highlights

1. 300% YoY Growth
2. $6.5M gross revenue in 2022
3. Raised $392K on Wefunder in 2020 from 900 investors; then raised $1.675M in 2022 in Reg D.
4. 5.3 LTV:CAC and 90% gross margins
5. Acquired our processing and manufacturing partner in October of 2022 to be vertically integrated.
6. USDA organic, GMP certified, third-party lab tested, FDA registered.
7. Monthly automatic order subscribers tripled in 2022 and is growing more than 20% MoM.

# Our Team

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

## **Eric Zipperle** Co-founder & CEO

As co-founder and CEO of Cornbread Hemp, Eric wears many hats, including chief financial officer and chief marketing officer. Before Cornbread, Eric launched two e-commerce startups, with an MBA and bachelors in accounting from Bellarmine University.

Before Cornbread Hemp, there were no CBD brands (to our knowledge) that embraced the full history of cannabis in America. To solve this problem, Cornbread Hemp builds on Kentucky's 250-year cannabis tradition, even when it wasn't legal.

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

## **Jim Higdon** Co-founder & CCO

As co-founder and chief communications officer, Jim uses his reporting background to expand Cornbread Hemp's reach through PR, affiliate marketing, and fundraising. He holds degrees from Centre College, Brown, and Columbia.

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

## **Jon Katz** Marketing Board Advisor

As the Chief Marketing Officer of Fanchest, Jon oversaw the startup's growth from $100K to $10M over three years before his exit in 2019. He is now VP of marketing at Billd. He advises Cornbread on our marketing efforts.

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

## **Dr. Leslie Mudd** Pharmaceutical & Medical Research Board Advisor

Dr. Mudd led the oncology pharmacy team at the Brown Cancer Center at the University of Louisville Hospital. She advises the Cornbread leadership team and our customers on CBD-drug interactions, as well as consulting on product development.

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

## **Tanya Hahn** Wholesale Manager

Tanya comes to Cornbread with experiencing launching new products into Kroger and Whole Foods. To date, her biggest accomplishment at Cornbread is getting Cornbread Hemp products into the Dorothy Lane stores in Ohio.

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

## **Melissa Ryan Chipman** Customer Service and Community Engagement

With experience in other Louisville-based start-ups, Melissa has taken the lead in our category-leading customer service department and community engagement through social media management.

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

## **Kait Flora** E-Commerce Manager

Kait covers a wide range of IT duties at Cornbread, from e-commerce platform maintenance to SEO optimization to customer experience.

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

## **Frida Gonzalez May** Graphic Designer

Frida is Cornbread Hemp's rock star graphic designer, responsible for too much to list here. Check out the hero image on the Cornbread Hemp homepage for an example of Frida's work.

## **Karen Theobald** Inventory/Merchandising Manager

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

Karson Theobald Inventory/Merchandising Manager

Karson came to Cornbread with a wealth of experience working in the legal cannabis market in Oregon, where she learned unique systems of managing cannabis inventory.

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

Dan Aziz Advisory Board

Dan is the founder and CEO of a CPG, DTC focussed brand, for the past 10 years. There he raised over $13 million from Angels, PE and VC. He has extensive experience in retail, DTC and Amazon, where he has built 7-figure business in each channel.

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

James Reid Brand Director

James is a Gold Clio award-winning producer, whose expertise ranges from feature documentaries to brand development to commercials for global brands including AT&T, Nissan, Bud Light, Honda, and Salesforce.

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

Donald C Freytag Advisor and EOS consultant

Don helps the Cornbread leadership team implement the Entrepreneur Operating System as designed by Gino Wickman's Traction book.

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

Mandy Bliss Advisor and Nurse Practitioner

Mandy Bliss is a board-certified nurse practitioner who advises the leadership team on trends in nursing practices related to cannabinoid therapy. She is also spearheading Cornbread Hemp's outreach to medical professionals.

## The Story of Cornbread Hemp

Cornbread Hemp is the fastest growing CBD brand in America, shipped nationwide from a single USDA organic farm in Kentucky. Family-owned and operated, Cornbread Hemp has quickly become one of America's most recognized and revered CBD brands.

Cornbread Hemp co-founder Jim Higdon grew up in the small town where the Cornbread Mafia was headquartered, which is where the name "cornbread" comes from. In 2012, Jim published the official nonfiction account of his hometown, "The Cornbread Mafia: A Homegrown Code of Silence and the Biggest Marijuana Bust in American History." The book's success launched Jim into a journalism career, where he covered cannabis for POLITICO, Washington Post, and more.

While reporting on the 2018 Farm Bill that would re-legalize hemp, Jim realized that there were no companies making authentic, high quality CBD products that embraced America's deep history of hemp. That's when he approached his cousin, Eric Zipperle, to start a cannabis company to deliver that higher quality product, while also representing the 250-year tradition of Kentucky cannabis.

product, while also representing the 250-year tradition of Kentucky cannabis.

In 2019, Eric and Jim co-founded Cornbread Hemp with $100,000 in angel investment.

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

## More than 1,000% growth since 2019

We shipped our first CBD products in April 2019, and by the end of that year we were gaining momentum. But when the COVID lockdown started in early 2020, we turned to Wefunder to support our growth and raised nearly $400,000 from 900 investors.

In 2021, we grew rapidly thanks to the funds we deployed from our Wefunder investors into the digital marketing landscape, ending the year at nearly $2M in net revenue (after discounts).

In 2022, we continued our aggressive growth and ended the year with $5.5M in net revenue. We acquired our processor to become vertically integrated and improve our margins, which are now above 90%. And, we raised $1,675,000 in a Reg D raise from 12 investors on the exact same terms that we are offering Wefunder investors.

## Our proven metrics

Fueling our impressive growth is a 5.3 LTV-to-CAC ratio and better than 90% product margins that allow us to quickly recycle acquisition dollars, reinvesting positive cash flows into further marketing efforts that allow for quicker market expansion.

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

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

## Market growth and future outlook

The market for Cornbread Hemp products is growing in a number of ways. For starters, the CBD market is poised to grow into a $55.8 billion industry by 2028. Of course, this is a forward-looking statement that cannot be guaranteed.

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

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

## Our market position

According to a recent study, only 5 percent of CBD brands are USDA certified organic. That puts Cornbread Hemp in a very elite group, and inside this group, none of the other brands (to our knowledge) offer Flower-OnlyTM extraction with up to 2mg of THC per serving.

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

**SUPERIOR QUALITY**
All major brands are sacrificing quality for price, ignoring consumers searching for premium CBD products.

**INDUSTRY LEADERSHIP**
We build credibility and brand awareness by sharing our singular expertise through unique media relationships.

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

# LEANING INTO THC

While the competition focuses on

THC-free, our customers value the most

effective CBD products, which contain the

highest legal level of THC.

To learn more about our product quality,

visit the LGP Slide in the appendix.

## Creating customer loyalty

More than 50% of our monthly revenues come from return customers, including $300,000 in MRR from subscribers. Our customer reviews speak for themselves:

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

# YOU FOUND THE BEST

"Stop looking for another brand to try, these are the best. I tried over 6 different brands, these are awesome. And they taste great, and their customer service is top-notch. Also I love their lotion!"

★★★★★

John G. 10/8/21

# IT IS AUTHENTIC!

"I tried other brands who offered steep discounts and gimmicks like flavors and Combread remains the grown-up choice. After six visits the long term results are like yoga in a bottle, better sleep, more presentness, and greater equanimity. There is an authenticity to this brand that I admire."

★★★★★

Larrin K. 9/22/21

# BETTER THAN BIG CBD

"I have tried several different CBD oils, Charlotte's Web and MedTema among them. They worked ok, but Combread exceeded my expectations."

★★★★★

Kathy K - 08/01

## Go-to-market strategy

We are finding new customers every day by scaling our PR and affiliate marketing, increasing our social media ad spend, partnering with influencers and radio hosts, and geo-targeting our marketing resources for maximum impact. As a result of our increased awareness, retail expansion will begin in 2023.

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

# AFFILIATE & PR

Leveraging Jim's industry expertise and media relationships for PR and affiliate partnerships, which drive brand credibility and Google search results.

# REGIONAL TARGETING

Leveraging our unique brand identity to build awareness in regional markets that offer little to no competition.

# TRADITIONAL ADVERTISING

We have developed strategic partnerships that allow us unique access to advertise on Facebook, Google, & SnapChat, in addition to CTV and radio.

# RETAIL EXPANSION

We are partnering with the best natural foods broker in the country, Presence Marketing, to enter top-tier retailers like Fresh Thyme, Earth Fare, & Sprouts.

# We're just getting started

At the peak of the market in 2019, there were thousands of CBD brands clamoring for customers. Today, only the strong brands have survived and Cornbread Hemp is experiencing rapid growth - 300% year over year.

Cornbread Hemp is now positioned to own a sizable share of the CBD market by being an authentic brand from Kentucky with a scalable supply chain of the highest quality organic hemp on Earth, according to us.

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

## Here's the plan

To meet our projections, we acquired our processing partner in October 2022. This acquisition will pay for itself in 3 years with reduced COGS and increased margins, and it has made Cornbread Hemp a vertically integrated company with a scalable supply chain.

In 2022, we launched a seed round with a goal of raising $1.5M. As the round gained steam, we received permission from our investors to oversubscribe the round with a new goal of $2M. We closed the Reg D portion of the round in December with a total amount raised of $1,675,000 from 12 investors.

Now, we are coming to Wefunder to raise the remaining $325,000 on the exact same terms as our Reg D investors to get us to our goal of $2M raised.

For the $325,000 we are raising on Wefunder, we plan to put the first $50K raised directly into our digital ads budget. Of the remaining $275,000, we plan to put $100K towards inventory, $75K towards growth consultants, $50K towards our trade show budget; and another $50K towards digital ad spend.

## Downloads

Cornbread Seed Deck Wefunder.pdf

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

Cornbread Hemp Lead Investor: Gregg Rochman

Investing $6,500

Why they're investing:

*Over the past year I have had the pleasure of using Cornbread Hemp CBD products to great effect. They are high quality and delicious, with gorgeous packaging... and the marketing is fantastic. Eric (CEO) is a savvy leader with detailed knowledge of the industry and his business. He can speak as effortlessly about the current minutia as he can about the long play.*

*Eric and Jim (CCO) run this business like start up veterans. Modern metrics tracking, incorporating EOS, and a true sense of joy amongst the whole team are just some of the reasons I am on board with Cornbread Hemp. This is gonna be a fun ride, get on board!*

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

# **Cornbread Hemp II (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**Cornbread Hemp 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 **Cornbread CBD, PBC** (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

Cornbread Hemp 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
Cornbread CBD, PBC SECURITIES BY Cornbread Hemp
II. A SERIES OF WEFUNDER SPV, LLC, A DELAWARE
LIMITED LIABILITY COMPANY

**Type of Security:** Priced Round

**Terms** $13.23 per share and a $10M 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%3D0001807577&first=2016

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

# SUBSCRIPTION AGREEMENT

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. THERE ARE FURTHER RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN.

THE PURCHASE OF THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT.

Cornbread CBD, PBC

2517 Data Drive

Jeffersontown, KY 40299

Ladies and Gentlemen:

The undersigned ("Purchaser") understands that Cornbread CBD, PBC, a public benefit corporation organized under the laws of Kentucky (the "Company"), is offering an aggregate of 24,565 shares of its Series Seed Preferred Stock, no par value (the "Series Seed Preferred Stock") through Section 4(a)(6) of the Securities Act of 1933, as amended (the "Securities Act"). This offering is made pursuant to relevant documents related to the Company and the Series Seed Preferred Stock provided by the Company to the persons considering subscribing for the Series Seed Preferred Stock through the Company's Wefunder crowdfunding portal (collectively, the "Offering Documents"). Purchaser further understands that the offering is being made without registration of the Series Seed Preferred Stock under the Securities Act, or any securities law of any state of the United States or of any other jurisdiction (collectively, "State Securities Laws").

1. Subscription. Subject to the terms and conditions hereof and the provisions of the Offering Documents, Purchaser hereby irrevocably subscribes for the Series Seed Preferred Stock set forth in the signature page hereto for the aggregate purchase price set forth in the signature page, which is payable as described in Section 4 hereof. Purchaser acknowledges that the Series Seed Preferred Stock will be subject to restrictions on transfer as set forth in this subscription agreement (the "Subscription Agreement").
2. Acceptance of Subscription and Issuance of Series Seed Preferred Stock. It is understood and agreed that the Company shall have the sole right, at its complete discretion, to accept or reject this subscription, in whole or in part, for any reason and that the same shall be deemed to be accepted by the Company only when it is signed by a duly authorized officer of the Company and delivered to Purchaser at the Closing referred to in Section 3 hereof. Subscriptions need not be accepted in the order received, and the Series Seed Preferred Stock may be allocated among subscribers. Notwithstanding anything in this Subscription Agreement to the contrary, the Company shall have no obligation to issue any of the Series Seed Preferred Stock to any person who is a resident of a jurisdiction in which the issuance of Series Seed Preferred Stock to such person would constitute a violation of the securities, "blue sky" or other similar laws of such jurisdiction (collectively referred to as the "State Securities Laws").

1

3. The Closing. The closing of the purchase and sale of the Series Seed Preferred Stock (the "Closing") shall take place via remote exchange of documents on April 30, 2023, or at such other time and place as the Company may designate by notice to Purchaser.

4. Payment for Series Seed Preferred Stock. Payment for the Series Seed Preferred Stock shall be received by Wefunder from Purchaser by wire transfer of immediately available funds or other means approved by the Company at or prior to the Closing, in the amount as set forth in the signature page hereto.

5. Representations and Warranties of the Company. As of the Closing, the Company represents and warrants that the Company has been duly incorporated and is validly existing under the laws of Kentucky, with full power and authority to conduct its business as it is currently being conducted and to own its assets; and has secured any authorizations, approvals, permits and orders required by law for the conduct by the Company of its business as it is currently being conducted.

6. Representations and Warranties of Purchaser. Purchaser hereby represents and warrants to and covenants with the Company that:

(a) General.

(i) Purchaser has all requisite authority (and in the case of an individual, the capacity) to purchase the Series Seed Preferred Stock, enter into this Subscription Agreement and to perform all the obligations required to be performed by Purchaser hereunder, and such purchase will not contravene any law, rule, or regulation binding on Purchaser or any investment guideline or restriction applicable to Purchaser.

(ii) Purchaser is a resident of the state set forth on their Wefunder profile and is not acquiring the Series Seed Preferred Stock as a nominee or agent or otherwise for any other person.

(iii) Purchaser will comply with all applicable laws and regulations in effect in any jurisdiction in which Purchaser purchases or sells Series Seed Preferred Stock, or Common Stock upon conversion of Purchaser's Series Seed Preferred Stock, and obtain any consent, approval or permission required for such purchases or sales under the laws and regulations of any jurisdiction to which Purchaser is subject or in which Purchaser makes such purchases or sales, and the Company shall have no responsibility therefor.

(b) Information Concerning the Company.

(i) Purchaser has received a copy of the Offering Documents. Purchaser has not been furnished any offering literature other than the Offering Documents, and Purchaser has relied only on the information contained therein.

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(ii) Purchaser understands and accepts that the purchase of the Series Seed Preferred Stock involves various risks, including the risks outlined in the Offering Documents and in this Subscription Agreement. Purchaser represents that it is able to bear any loss associated with an investment in the Series Seed Preferred Stock.

(iii) Purchaser confirms that it is not relying on any communication (written or oral) of the Company or any of its affiliates, as investment or tax advice or as a recommendation to purchase the Series Seed Preferred Stock. It is understood that information and explanations related to the terms and conditions of the Series Seed Preferred Stock provided in the Offering Documents or otherwise by the Company or any of its affiliates shall not be considered investment or tax advice or a recommendation to purchase the Series Seed Preferred Stock, and that neither the Company nor any of its affiliates is acting or has acted as an advisor to Purchaser in deciding to invest in the Series Seed Preferred Stock. Purchaser acknowledges that neither the Company nor any of its affiliates has made any representation regarding the proper characterization of the Series Seed Preferred Stock for purposes of determining Purchaser's authority to invest in the Series Seed Preferred Stock.

(iv) Purchaser is familiar with the business and financial condition and operations of the Company, all as generally described in the Offering Documents. Purchaser has had access to such information concerning the Company and the Series Seed Preferred Stock as it deems necessary to enable it to make an informed investment decision concerning the purchase of the Series Seed Preferred Stock.

(v) Purchaser understands that, unless Purchaser notifies the Company in writing to the contrary at or before the Closing, each of Purchaser's representations and warranties contained in this Subscription Agreement will be deemed to have been reaffirmed and confirmed as of the Closing, taking into account all information received by Purchaser.

(vi) Purchaser acknowledges that the Company has the right in its sole and absolute discretion to abandon this offering at any time prior to the completion of the offering. This Subscription Agreement shall thereafter have no force or effect, and the Company shall return the previously paid subscription price of the Series Seed Preferred Stock, without interest thereon, to Purchaser.

(vii) Purchaser understands that no federal or state agency has passed upon the merits or risks of an investment in the Series Seed Preferred Stock or made any finding or determination concerning the fairness or advisability of this investment.

(c) Investment Limits. In the event Purchaser is not an accredited investor as defined under Rule 501(a) of Regulation D, promulgated under the Securities Act, Purchaser represents that:

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(i) Either of Purchaser's net worth or annual income is less than $124,000, and that the amount Purchaser is investing pursuant to this Subscription Agreement, together with all other amounts invested in offerings under Section 4(a)(6) of the Securities Act within the previous 12 months, is less than or equal to the greater of (A) 5% of the greater of Purchaser's annual income or net worth, or (B) $2,500; or

(ii) Both of Purchaser's net worth and annual income are more than $124,000, and that the amount Purchaser is investing pursuant to this Subscription Agreement, together with all other amounts invested in offerings under Section 4(a)(6) of the Securities Act within the previous 12 months, is less than or equal to up to 10% of the greater of Purchaser's annual income or net worth, and does not exceed $124,000.

# (d) Non-Reliance.

(i) Purchaser represents that it is not relying on (and will not at any time rely on) any communication (written or oral) of the Company, as investment advice or as a recommendation to purchase the Series Seed Preferred Stock, it being understood that information and explanations related to the terms and conditions of the Series Seed Preferred Stock and the other transaction documents that are described in the Offering Documents shall not be considered investment advice or a recommendation to purchase the Series Seed Preferred Stock.

(ii) Purchaser confirms that the Company has not (A) given any guarantee or representation as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Series Seed Preferred Stock or (B) made any representation to Purchaser regarding the legality of an investment in the Series Seed Preferred Stock under applicable legal investment or similar laws or regulations. In deciding to purchase the Series Seed Preferred Stock, Purchaser is not relying on the advice or recommendations of the Company and Purchaser has made its own independent decision that the investment in the Series Seed Preferred Stock is suitable and appropriate for Purchaser.

# (e) Status of Purchaser.

(i) 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 Subscription 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

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the risks associated with an investment in the Series Seed Preferred Stock, and it is authorized to invest in the Series Seed Preferred Stock.

(ii) Purchaser agrees to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S. federal and State Securities Laws in connection with the purchase and sale of the Series Seed Preferred Stock.

(f) Restrictions on Transfer or Sale of Series Seed Preferred Stock.

(i) Purchaser agrees that during the one-year period beginning on the date on which it acquired Series Seed Preferred Stock pursuant to this Subscription Agreement, it shall not transfer such Series Seed Preferred Stock except:

(A) To the Company;

(B) To an accredited investor within the meaning of Rule 501 of Regulation D under the Securities Act;

(C) As part of an offering registered under the Securities Act with the Commission; or

(D) To a member of Purchaser's family or the equivalent, to a trust controlled by Purchaser, to a trust created for the benefit of a member of the family of Purchaser or equivalent, or in connection with the death or divorce of Purchaser or other similar circumstance.

(ii) Purchaser is acquiring the Series Seed Preferred Stock solely for Purchaser's own beneficial account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of the Series Seed Preferred Stock. Purchaser understands that the Series Seed Preferred Stock have not been registered under the Securities Act or any State Securities Laws by reason of specific exemptions under the provisions thereof which depend in part upon the investment intent of Purchaser and of the other representations made by Purchaser in this Subscription Agreement. Purchaser understands that the Company is relying upon the representations and agreements contained in this Subscription Agreement (and any supplemental information) for the purpose of determining whether this transaction meets the requirements for such exemptions.

(iii) In addition to the restrictions set forth in Section 6(f)(i) above, Purchaser understands that the Series Seed Preferred Stock are "restricted securities" under applicable federal securities laws and that the Securities Act and the rules of the U.S. Securities and Exchange Commission (the "Commission") provide in substance that Purchaser may dispose of the Series Seed Preferred Stock only pursuant to an effective registration statement under the Securities Act or an exemption from the registration requirements of the Securities Act, and Purchaser understands that the Company has no obligation or intention to register any of the

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Series Seed Preferred Stock or the offering or sale thereof, or to take action so as to permit offers or sales pursuant to the Securities Act or an exemption from registration thereunder (including pursuant to Rule 144 thereunder). Accordingly, Purchaser understands that under the Commission's rules, Purchaser may dispose of the 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, after which certain state restrictions may apply. Purchaser 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 for the Series Seed Preferred Stock may not develop. Consequently, Purchaser understands that Purchaser must bear the economic risks of the investment in the Series Seed Preferred Stock for an indefinite period of time.

(iv) Purchaser agrees: (A) that Purchaser will not sell, assign, pledge, give, transfer, or otherwise dispose of the Series Seed Preferred Stock or any interest therein, or make any offer or attempt to do any of the foregoing, unless the transaction is registered under the Securities Act and complies with the requirements of all applicable State Securities Laws, or the transaction is exempt from the registration provisions of the Securities Act and all applicable requirements of State Securities Laws; (B) that the certificates representing the Series Seed Preferred Stock will bear a legend making reference to the foregoing restrictions; and (C) that the Company and its affiliates shall not be required to give effect to any purported transfer of such Series Seed Preferred Stock, except upon compliance with the foregoing restrictions.

7. Conditions to Obligations of Purchaser and the Company. The obligations of Purchaser to purchase and pay for the Series Seed Preferred Stock specified in the signature page hereto and of the Company to sell those Series Seed Preferred Stock, are subject to the satisfaction at or prior to the Closing of the following conditions precedent: the representations and warranties of the Company contained in Section 5 hereof and of Purchaser contained in Section 6 hereof shall be true and correct as of the Closing in all respects with the same effect as though such representations and warranties had been made on and as of the Closing.

8. Obligations Irrevocable. The obligations of Purchaser shall be irrevocable.

9. Investor Rights Agreement. Upon acceptance of this Subscription Agreement by the Company, the Purchaser joins and agrees to be bound by the Investor Rights Agreement (the "Investor Rights Agreement") attached hereto as Exhibit A and made a part hereof and incorporated herein by reference. Further, by executing this Subscription Agreement, Purchaser acknowledges and agrees that upon acceptance of this Subscription Agreement, the Purchaser will be an "Investor" (as defined in the Investor Rights Agreement) and the Purchaser will be subject to the terms and conditions of the Investor Rights Agreement.

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10. Legend. The certificates representing the Series Seed Preferred Stock sold pursuant to this Subscription Agreement will be imprinted with a legend in substantially the following form:

"THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR SUCH OTHER APPLICABLE LAWS."

11. Waiver, Amendment. Neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged or terminated except by an instrument in writing, signed by the party against whom any waiver, change, discharge or termination is sought.
12. Assignability. Neither this Subscription Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by either the Company or Purchaser without the prior written consent of the other party, and any attempted assignment without such prior written consent shall be void.
13. Waiver of Jury Trial. PURCHASER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT.
14. Submission to Jurisdiction. With respect to any suit, action, or proceeding relating to any offers, purchases, or sales of the Series Seed Preferred Stock by Purchaser ("Proceedings"), Purchaser irrevocably submits to the jurisdiction of the federal and state courts located in the City of Louisville, Kentucky and County of Jefferson, Kentucky, which submission shall be exclusive, unless none of such courts has lawful jurisdiction over such Proceedings.
15. Governing Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky.

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16. Section and Other Headings. The section and other headings contained in this Subscription Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Subscription Agreement.
17. Counterparts. This Subscription Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.
18. Notices. All notices and other communications provided for herein shall be in writing and shall be deemed to have been duly given if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the addresses set forth on the signature page hereto (or such other address as either party shall have specified by notice in writing to the other).
19. Binding Effect. The provisions of this Subscription Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors, and assigns.
20. Survival. All representations, warranties and covenants contained in this Subscription Agreement shall survive (i) the acceptance of the subscription by the Company and the Closing, (ii) changes in the transactions, documents and instruments described in the Offering Documents which are not material or which are to the benefit of Purchaser, and (iii) the death or disability of Purchaser.
21. Notification of Changes. Purchaser hereby covenants and agrees to notify the Company upon the occurrence of any event prior to the closing of the purchase of the Series Seed Preferred Stock pursuant to this Subscription Agreement which would cause any representation, warranty, or covenant of Purchaser contained in this Subscription Agreement to be false or incorrect.
22. Severability. If any term or provision of this Subscription Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Subscription Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

[SIGNATURE PAGE FOLLOWS]

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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:

Cornbread CBD, PBC

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

DocuSign Envelope ID: 6F0AA592-7990-45EF-9EC7-0330F44C7ACD

# INVESTOR RIGHTS AGREEMENT

THIS INVESTOR RIGHTS AGREEMENT (this "Agreement"), is made as of 2/15/2023 by and among Cornbread CBD, PBC, a Kentucky public benefit corporation (the "Company"), the Investors (as defined below) listed on Schedule A and the Founders (as defined below) listed on Schedule B.

WHEREAS, each Founder is the beneficial owner of shares of Capital Stock, or of options to purchase Common Stock;

WHEREAS, the Company and the Investors are parties to those certain Series Seed Preferred Subscription Agreements (each, a "Subscription Agreement"), pursuant to which the Investors have agreed to purchase shares of the Series Seed Preferred Stock of the Company, no par value ("Series Seed Preferred Stock"); and

WHEREAS, the Founders and the Company desire to further induce the Investors to purchase the Series Seed Preferred Stock;

NOW, THEREFORE, the Company, the Founders and, the Investors agree as follows:

# 1. Definitions.

1.1. "Affiliate" means, with respect to any specified Investor, any other Investor who directly or indirectly, controls, is controlled by or is under common control with such Investor, including, without limitation, any general partner, managing member, officer, director or trustee of such Investor, or any venture capital fund or other investment fund now or hereafter existing which is controlled by one (1) or more general partners, managing members or investment advisers of, or shares the same management company or investment adviser with, such Investor.

1.2. "Board of Directors" means the board of directors of the Company.

1.3. "Capital Stock" means (a) shares of Common Stock and Series Seed Preferred Stock (whether now outstanding or hereafter issued in any context), (b) shares of Common Stock issued or issuable upon conversion of Series Seed Preferred Stock, and (c) shares of Common Stock issued or issuable upon exercise or conversion, as applicable, of stock options, warrants or other convertible securities of the Company, in each case now owned or subsequently acquired by any Founder, any Investor, or their respective successors or permitted transferees or assigns. For purposes of the number of shares of Capital Stock held by an Investor or Founder (or any other calculation based thereon), all shares of Series Seed Preferred Stock shall be deemed to have been converted into Common Stock at the then applicable conversion ratio.

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1.4. "Change of Control" means a transaction or series of related transactions in which a person, or a group of related persons, acquires from stockholders of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company.

1.5. "Common Stock" means shares of Common Stock of the Company, no par value.

1.6. "Company Notice" means written notice from the Company notifying the selling Founders and each Investor that the Company intends to exercise its Secondary Refusal Right as to some or all of the Transfer Stock with respect to any Proposed Founder Transfer.

1.7. "Investor Notice" means written notice from any Investor notifying the Company and the selling Founder(s) that such Investor intends to exercise its Right of First Refusal as to a portion of the Transfer Stock with respect to any Proposed Founder Transfer.

1.8. "Investor(s)" means the persons named on Schedule A hereto, each person to whom the rights of an Investor are assigned pursuant to Section 5.9, each person who hereafter becomes a signatory to this Agreement pursuant to Section 5.11 and any one of them, as the context may require.

1.9. "Founders Registrable Securities" means (i) the shares of Common Stock held by the Founders, and (ii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of such shares.

1.10. "Founders" means the persons named on Schedule B hereto, each person to whom the rights of a Founder are assigned pursuant to Section 3.1, each person who hereafter becomes a signatory to this Agreement pursuant to Section 5.9 and any one of them, as the context may require.

1.11. "Proposed Founder Transfer" means any assignment, sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of or any other like transfer or encumbering of any Transfer Stock (or any interest therein) proposed by any of the Founders.

1.12. "Proposed Transfer Notice" means written notice from a Founder setting forth the terms and conditions of a Proposed Founder Transfer.

1.13. "Prospective Transferee" means any person to whom a Founder proposes to make a Proposed Founder Transfer.

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1.14. "Registrable Securities" means (i) the Common Stock issuable or issued upon conversion of the Series Seed Preferred Stock; (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company, acquired by the Investors after the date hereof; (iii) the Founder Registrable Securities; and (iv) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Section 5.9, and excluding for purposes of Section 2.8 any shares for which rights have terminated pursuant to this Agreement.
1.15. "Restated Articles" means the Company's Amended and Restated Articles of Incorporation, as amended and/or restated from time to time.
1.16. "Right of Co-Sale" means the right, but not an obligation, of an Investor to participate in a Proposed Founder Transfer on the terms and conditions specified in the Proposed Transfer Notice.
1.17. "Right of First Refusal" means the right, but not an obligation, of each Investor, or its permitted transferees or assigns, to purchase some or all of the Transfer Stock with respect to a Proposed Founder Transfer, on the terms and conditions specified in the Proposed Transfer Notice.
1.18. "Secondary Notice" means written notice from an Investor notifying the Company and the selling Founder that the Investor does not intend to exercise its Right of First Refusal as to all shares of any Transfer Stock with respect to a Proposed Founder Transfer, on the terms and conditions specified in the Proposed Transfer Notice.
1.19. "Secondary Refusal Right" means the right, but not an obligation, of the Company to purchase up to its pro rata portion (based upon the total number of shares of Capital Stock then held by all Investors) of any Transfer Stock not purchased pursuant to the Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice.
1.20. "Series Seed Preferred Stock" means collectively, all shares of Series Seed Preferred Stock.
1.21. "Transfer Stock" means shares of Capital Stock owned by a Founder, or issued to a Founder after the date hereof (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like).

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1.22. "Undersubscription Notice" means written notice from an Investor notifying the Company and the selling Founder that such Investor intends to exercise its option to purchase all or any portion of the Transfer Stock not purchased pursuant to the Right of First Refusal or the Secondary Refusal Right.

2. Agreement Among the Company, the Investors and the Founders.

2.1. Information Rights.

(a) Basic Financial Information. The Company will furnish to an Investor 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 statement of operations and an unaudited statement of cash flows of the Company for such year, all prepared in accordance with generally accepted accounting principles and practices; and (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 statement of operations and an unaudited statement of cash flows of the Company for such quarter, all prepared in accordance with generally accepted accounting principles and practices, subject to changes resulting from normal year-end audit adjustments. If the Company has audited records of any of the foregoing, it shall provide those in lieu of the unaudited versions.

(b) Confidentiality. Anything in this Agreement to the contrary notwithstanding, an Investor shall not by reason of this Agreement have access to any trade secrets or confidential information of the Company. The Company shall not be required to comply with any information rights if the Company reasonably determines an Investor to be a competitor or an officer, employee, director or holder of ten percent (10%) or more of a competitor. Each Investor agrees that it will keep confidential and will not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential information obtained from the Company pursuant to the terms of this Agreement other than to any of such Investor's attorneys, accountants, consultants, and other professionals, to the extent necessary to obtain their services in connection with monitoring such Investor's investment in the Company.

2.2. Participation Right.

(a) General. Each Investor shall have the right of first refusal to purchase such Investor's Pro Rata Share (as defined below) of all (or any part) of any New Securities (as defined in Section 2.2(b) below) that the Company may from time to time issue after the date of this Agreement, provided, however, notwithstanding anything contained in this Agreement to the contrary, an Investor shall have no right to purchase any such New Securities if such Investor cannot demonstrate to the Company's reasonable satisfaction that: (i) such Investor is at the time of the proposed issuance of

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such New Securities an “accredited investor” as such term is defined in Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) or that such Investor’s investment will comply with the then in effect investment limitations for non-accredited investors investing in offerings under Section 4(a)(6) of the Securities Act, and (ii) the purchase of any New Securities by such Investor is exempt from registration under the Securities Act or any state securities laws. An Investor’s “Pro Rata Share” for purposes of this right of first refusal is 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 an Investor, to (b) the Fully-Diluted Share Number.

(b) New Securities. “New Securities” shall mean any Common Stock or Preferred Stock of the Company, whether now authorized or not, and rights, options or warrants to purchase such Common Stock or Preferred Stock, and securities of any type whatsoever that are, or may become, convertible or exchangeable into such Common Stock or Preferred Stock; provided, however, that the term “New Securities” does not include: (a) shares of Common Stock issued or issuable upon conversion of the outstanding shares of all the series of the 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 date of this Agreement 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 hereafter to employees, 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 of Directors; (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 of Directors; 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.

(c) Procedures. In the event that the Company proposes to undertake an issuance of New Securities, it shall give an Investor a written notice of its intention to issue New Securities (the “New Securities Notice”), describing the type of New Securities and the price and the general terms upon which the Company proposes to issue such New Securities given in accordance with Section 5.5. An Investor shall have ten (10) days from the date such New Securities Notice is effective, as determined pursuant to Section 5.5 based upon the manner or method of notice, to agree in writing to purchase such Investor’s Pro Rata Share of such New Securities for the price and upon the general terms specified in the New Securities Notice by giving written notice to the Company and

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stating therein the quantity of New Securities to be purchased (not to exceed such Investor's Pro Rata Share).

(d) Failure to Exercise. In the event that an Investor fails to exercise in full the right of first refusal within such ten (10) day period, then the Company shall have one hundred twenty (120) days thereafter to sell the New Securities with respect to which such Investor's 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 New Securities Notice to the Investors. In the event that the Company has not issued and sold the New Securities within such one hundred twenty (120) day period, then the Company shall not thereafter issue or sell any New Securities without again first offering such New Securities to the Investors pursuant to this Section 2.3.

### 2.3. Restrictions on Transfer; Drag Along.

(a) 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") hereby agrees not to make any disposition of all or any portion of any Securities unless and until:

(i) 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

(ii) such Holder shall have notified the Company of the proposed disposition and shall have 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 2.3(a)(i) and Sections 2.3(a)(ii) above, no such registration statement or opinion of counsel shall 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, without limitation, 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 by gift, will or intestate succession by any Holder to his or her spouse or lineal descendants or ancestors or any trust for any of the foregoing; provided that

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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 Investor hereunder and in the case of clause (iii) the transfer was without additional consideration or at no greater than cost.

(b) "Market Stand-Off" Agreement. Each Holder hereby agrees that it shall not, to the extent requested by the Company or an underwriter of securities of the Company, sell or otherwise transfer or dispose of any Securities or other Securities of stock of the Company then owned by such Holder (other than to donees or partners of the Holder who agree to be similarly bound) for up to one hundred eighty (180) days following the effective date of any registration statement of the Company filed under the Securities Act; provided however that, if during the last seventeen (17) days of the restricted period the Company issues an earnings release or material news or a material event relating to the Company occurs, or prior to the expiration of the restricted period the Company announces that it will release earnings results during the 16-day period beginning on the last day of the restricted period, and if the Company's securities are listed on the Nasdaq Stock Market and Rule 2711 thereof applies, then the restrictions imposed by this Section 2.3(b) shall continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event; provided, further, that such automatic extension shall not apply to the extent that the Financial Industry Regulatory Authority has amended or repealed NASD Rule 2711(f)(4), or has otherwise provided written interpretive guidance regarding such rule, in each case, so as to eliminate the prohibition of any broker, dealer, or member of a national securities association from publishing or distributing any research report, with respect to the securities of an emerging growth company (as defined in the Jumpstart Our Business Startups Act of 2012) prior to or after the expiration of any agreement between the broker, dealer, or member of a national securities association and the emerging growth company or its stockholders that restricts or prohibits the sale of securities held by the emerging growth company or its stockholders after the initial public offering date. In no event will the restricted period extend beyond two hundred fifteen (215) days after the effective date of the registration statement. For purposes of this Section 2.3(b), the term "Company" shall include any wholly-owned subsidiary of the Company into which the Company merges or consolidates. To enforce the foregoing covenant, the Company shall have the right to place restrictive legends on the certificates representing the shares subject to this Section 2.3(b) and to impose stop transfer instructions with respect to the Securities and such other shares of stock of each Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period. Each Holder further agrees to enter into any agreement reasonably required by the underwriters to implement the foregoing within any reasonable timeframe so requested.

(c) Drag Along Right. In the event that 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 Requisite

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Holders (as defined in the Articles of Incorporation) of Preferred Stock, and (iii) the Board of Directors approve a Deemed Liquidation Event (as defined in the Articles of Incorporation), then each shareholder of the Company holding at least one percent (1%) of the capital stock of the Company hereby agrees to 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 Shareholder of the Company (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 shall reasonably be requested by the Company in order to carry out the terms and provision of this Section 2.3(c), including without limitation executing and delivering instruments of conveyance and transfer, and any 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 2.3(c) shall not apply to a Deemed Liquidation Event where 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. "Shareholder" shall mean each Holder and the Founders, and any transferee thereof.

(d) Exceptions to Drag Along Right. Notwithstanding the foregoing, a Shareholder of the Company will not be required to comply with Section 2.3(c) above in connection with any proposed Sale of the Company (the "Proposed Sale") unless:

(i) any representations and warranties to be made by such Shareholder of the Company 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 but not limited to representations and warranties that (i) the Shareholder of the Company holds all right, title and interest in and to the Shares such Shareholder of the Company purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of the Shareholder of the Company in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by the Shareholder of the Company have been duly executed by the Shareholder of the Company and delivered to the acquirer and are enforceable against the Shareholder of the Company 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 Shareholder of the Company'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;

(ii) the Shareholder of the Company shall 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

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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 of identical representations, warranties and covenants provided by all stockholders);

(iii) the liability for indemnification, if any, of such Shareholder of the Company in the Proposed Sale and for the inaccuracy of any representations and warranties made by the Company or its Shareholders of the Company 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 of identical representations, warranties and covenants provided by all stockholders), and except as required to satisfy the liquidity 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 Shareholder of the Company in connection with such Proposed Sale;

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

(v) 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 at least 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 Articles of Incorporation in effect immediately prior to the Proposed Sale.

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## 2.4. Right of First Refusal.

(a) Grant. Subject to the terms of Section 3 below, each Founder hereby unconditionally and irrevocably grants to the Investors a Right of First Refusal to purchase all or any portion of Transfer Stock that such Founder may propose to transfer in a Proposed Founder Transfer, at the same price and on the same terms and conditions as those offered to the Prospective Transferee. Provided, however, notwithstanding anything contained in this Agreement to the contrary, no Investor shall have the right to purchase any such Transfer Stock if such Investor cannot demonstrate to the Company's and Founders' reasonable satisfaction that: (i) such Investor is at the time of the Proposed Founder Transfer an "accredited investor" as such term is defined in Regulation D under the Securities Act or that such Investor's investment will comply with the then in effect investment limitations for non-accredited investors investing in offerings under Section 4(a)(6) of the Securities Act; and (ii) that the purchase of any Transfer Stock under the Proposed Founder Transfer by such Investor is exempt from registration under the Securities Act or any state securities laws.

(b) Notice. Each Founder proposing to make a Proposed Founder Transfer must deliver a Proposed Transfer Notice to the Company and each Investor not later than forty-five (45) days prior to the consummation of such Proposed Founder Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including price and form of consideration) of the Proposed Founder Transfer, the identity of the Prospective Transferee and the intended date of the Proposed Founder Transfer. To exercise its Right of First Refusal under this Section 2, an Investor must deliver an Investor Notice to the selling Founder and the Company within fifteen (15) days after delivery of the Proposed Transfer Notice specifying the number of shares of Transfer Stock to be purchased by the Investor. In the event of a conflict between this Agreement and any other agreement that may have been entered into by a Founder with the Investor that contains a preexisting right of first refusal, the Investor and the Founder acknowledge and agree that the terms of this Agreement shall control and the preexisting right of first refusal shall be deemed satisfied by compliance with Section 2.4(a) and this Section 2.4(b).

(c) Grant of Secondary Refusal Right to the Company. Subject to the terms of Section 3 below, each Founder hereby unconditionally and irrevocably grants to the Company a Secondary Refusal Right to purchase all or any portion of the Transfer Stock not purchased by the Investors pursuant to the Right of First Refusal, as provided in this Section 2.4(c). If the Investors do not provide an Investor Notice exercising their Right of First Refusal with respect to all Transfer Stock subject to a Proposed Founder Transfer, the Investors must deliver a Secondary Notice to the selling Founder and to the Company to that effect no later than fifteen (15) days after the selling Founder delivers the Proposed Transfer Notice to the Investors. To exercise its Secondary Refusal Right, the Company must deliver a Company Notice to the selling Founder and the Investors

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within ten (10) days after the Investors' deadline for delivery of the Secondary Notice as provided in the preceding sentence.

(d) Undersubscription of Transfer Stock. If options to purchase have been exercised by the Investors and the Company pursuant to Sections 2.4(b) and (c) with respect to some but not all of the Transfer Stock by the end of the ten (10) day period specified in the last sentence of Section 2.4(c) (the "Company Notice Period"), then the Company shall, within five (5) days after the expiration of the Company Notice Period, send written notice (the "Company Undersubscription Notice") to those Investors who fully exercised their Right of First Refusal within the Notice Period (the "Exercising Investors"). Each Exercising Investor shall, subject to the provisions of this Section 2.4(d), have an additional option to purchase all or any part of the balance of any such remaining unsubscribed shares of Transfer Stock on the terms and conditions set forth in the Proposed Transfer Notice. To exercise such option, an Exercising Investor must deliver an Undersubscription Notice to the selling Founder and the Company within ten (10) days after the expiration of the Notice Period. In the event there are two (2) or more such Exercising Investors that choose to exercise the last-mentioned option for a total number of remaining shares in excess of the number available, the remaining shares available for purchase under this Section 2.4(d) shall be allocated to such Exercising Investors pro rata based on the number of shares of Transfer Stock such Exercising Investors have elected to purchase pursuant to the Right of First Refusal (without giving effect to any shares of Transfer Stock that any such Exercising Investor has elected to purchase pursuant to the Company Undersubscription Notice). If the options to purchase the remaining shares are exercised in full by the Exercising Investors, the Company shall immediately notify all of the Exercising Investors and the selling Founder of that fact.

(e) Forfeiture of Rights. Notwithstanding the foregoing, if the total number of shares of Transfer Stock that the Investors and the Company have agreed to purchase in the Investor Notices, Company Notice, and Undersubscription Notices is less than the total number of shares of Transfer Stock, then the Investors and the Company shall be deemed to have forfeited any right to purchase such Transfer Stock, and the selling Founder shall be free to sell all, but not less than all, of the Transfer Stock to the Prospective Transferee on terms and conditions substantially similar to (and in no event more favorable than) the terms and conditions set forth in the Proposed Transfer Notice, it being understood and agreed that (i) any such sale or transfer shall be subject to the other terms and restrictions of this Agreement, including, without limitation, the terms and restrictions set forth in Sections 2.5 and 5.9(b); (ii) any future Proposed Founder Transfer shall remain subject to the terms and conditions of this Agreement, including this Section 2; and (iii) such sale shall be consummated within forty-five (45) days after receipt of the Proposed Transfer Notice by the Company and, if such sale is not consummated within such forty-five (45) day period, such sale shall again become subject to the Right of First Refusal and Secondary Refusal Right on the terms set forth herein.

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(f) Consideration; Closing. If the consideration proposed to be paid for the Transfer Stock is in property, services or other non-cash consideration, the fair market value of the consideration shall be as determined in good faith by the Board of Directors and as set forth in the Investor Notice. If any Investor or the Company cannot for any reason pay for the Transfer Stock in the same form of non-cash consideration, such Investor or the Company may pay the cash value equivalent thereof, as determined in good faith by the Board of Directors and as set forth in the Investor Notice. The closing of the purchase of Transfer Stock by the Investors and the Company shall take place, and all payments from the Investors and the Company shall have been delivered to the selling Founder, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Founder Transfer; and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice.

### 2.5. Right of Co-Sale.

(a) Exercise of Right. If any Transfer Stock subject to a Proposed Founder Transfer is not purchased pursuant to Section 2.4 above and thereafter is to be sold to a Prospective Transferee, each respective Investor may elect to exercise its Right of Co-Sale and participate on a pro rata basis in the Proposed Founder Transfer as set forth in Section 2.5(b) below and, subject to Section 2.5(d), otherwise on the same terms and conditions specified in the Proposed Transfer Notice. Each Investor who desires to exercise its Right of Co-Sale (each, a "Participating Investor") must give the selling Founder written notice to that effect within fifteen (15) days after the deadline for delivery of the Secondary Notice described above, and upon giving such notice such Participating Investor shall be deemed to have effectively exercised the Right of Co-Sale.

(b) Shares Includable. Each Participating Investor may include in the Proposed Founder Transfer all or any part of such Participating Investor's Capital Stock equal to the product obtained by multiplying (i) the aggregate number of shares of Transfer Stock subject to the Proposed Founder Transfer (excluding shares purchased by the Participating Investors or the Company pursuant to the Right of First Refusal or the Secondary Refusal Right) by (ii) a fraction, the numerator of which is the number of shares of Capital Stock owned by such Participating Investor immediately before consummation of the Proposed Founder Transfer (including any shares that such Participating Investor has agreed to purchase pursuant to the Right of First Refusal) and the denominator of which is the total number of shares of Capital Stock owned, in the aggregate, by all Participating Investors immediately prior to the consummation of the Proposed Founder Transfer (including any shares that all Participating Investors have collectively agreed to purchase pursuant to the Right of First Refusal), plus the number of shares of Transfer Stock held by any selling Founder.

(c) Purchase and Sale Agreement. The Participating Investors and the selling Founder agree that the terms and conditions of any Proposed Founder Transfer in

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accordance with this Section 2.5 will be memorialized in, and governed by, a written purchase and sale agreement with the Prospective Transferee (the "Purchase and Sale Agreement") with customary terms and provisions for such a transaction, and the Participating Investors and the selling Founder further covenant and agree to enter into such Purchase and Sale Agreement as a condition precedent to any sale or other transfer in accordance with this Section 2.2.

# (d) Allocation of Consideration.

(i) Subject to Section 2.5(d)(ii), the aggregate consideration payable to the Participating Investors and the selling Founder shall be allocated based on the number of shares of Capital Stock sold to the Prospective Transferee by each Participating Investor and the selling Founder as provided in Section 2.5(b), provided that if a Participating Investor wishes to sell Series Seed Preferred Stock, the price set forth in the Proposed Transfer Notice shall be appropriately adjusted based on the conversion ratio of the Series Seed Preferred Stock into Common Stock.

(ii) In the event that the Proposed Founder Transfer constitutes a Change of Control, the terms of the Purchase and Sale Agreement shall provide that the aggregate consideration from such transfer shall be allocated to the Participating Investors and the selling Founder in accordance with the Restated Articles as if (A) such transfer were a Deemed Liquidation Event (as defined in the Restated Articles), and (B) the Capital Stock sold in accordance with the Purchase and Sale Agreement were the only Capital Stock outstanding.

(e) Purchase by Selling Founder; Deliveries. Notwithstanding Section 2.5(c) above, if any Prospective Transferee(s) refuse(s) to purchase securities subject to the Right of Co-Sale from any Participating Investor or Investors or upon the failure to negotiate in good faith a Purchase and Sale Agreement reasonably satisfactory to the Participating Investors, no Founder may sell any Transfer Stock to such Prospective Transferee(s) unless and until, simultaneously with such sale, such Founder purchases all securities subject to the Right of Co-Sale from such Participating Investor or Investors on the same terms and conditions (including the proposed purchase price) as set forth in the Proposed Transfer Notice and as provided in Section 2.5(d)(i); provided, however, if such sale constitutes a Change of Control, the portion of the aggregate consideration paid by the selling Founder to such Participating Investor or Investors shall be made in accordance with the first sentence of Section 2.5(d)(ii). In connection with such purchase by the selling Founder, such Participating Investor or Investors shall deliver to the selling Founder any stock certificate or certificates, properly endorsed for transfer, representing the Capital Stock being purchased by the selling Founder (or request that the Company effect such transfer in the name of the selling Founder). Any such shares transferred to the selling Founder will be transferred to the Prospective Transferee against payment therefor in consummation of the sale of the Transfer Stock pursuant to the terms and

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conditions specified in the Proposed Transfer Notice, and the selling Founder shall concurrently therewith remit or direct payment to each such Participating Investor the portion of the aggregate consideration to which each such Participating Investor is entitled by reason of its participation in such sale as provided in this Section 2.5(e).

(f) Additional Compliance. If any Proposed Founder Transfer is not consummated within forty-five (45) days after receipt of the Proposed Transfer Notice by the Company, the Founders proposing the Proposed Founder Transfer may not sell any Transfer Stock unless they first comply in full with each provision of this Section 2. The exercise or election not to exercise any right by any Investor hereunder shall not adversely affect its right to participate in any other sales of Transfer Stock subject to this Section 2.5.

# 2.6. Effect of Failure to Comply.

(a) Transfer Void; Equitable Relief. Any Proposed Founder Transfer not made in compliance with the requirements of this Agreement shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall not be recognized by the Company. Each party hereto acknowledges and agrees that any breach of this Agreement would result in substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate. Therefore, the parties hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective orders, injunctive relief and other remedies available at law or in equity (including, without limitation, seeking specific performance or the rescission of purchases, sales and other transfers of Transfer Stock not made in strict compliance with this Agreement).

(b) Violation of First Refusal Right. If any Founder becomes obligated to sell any Transfer Stock to any Investor or the Company under this Agreement and fails to deliver such Transfer Stock in accordance with the terms of this Agreement, such Investor and/or the Company may, at its option, in addition to all other remedies it may have, send to such Founder the purchase price for such Transfer Stock as is herein specified and transfer to the name of the Company or such Investor (or request that the Company effect such transfer in the name of an Investor) on the Company's books any certificates, instruments, or book entry representing the Transfer Stock to be sold.

(c) Violation of Co-Sale Right. If any Founder purports to sell any Transfer Stock in contravention of the Right of Co-Sale (a "Prohibited Transfer"), each Participating Investor who desires to exercise its Right of Co-Sale under Section 2.5 may, in addition to such remedies as may be available by law, in equity or hereunder, require such Founder to purchase from such Participating Investor the type and number of shares of Capital Stock that such Participating Investor would have been entitled to sell to the Prospective Transferee had the Prohibited Transfer been effected in compliance with the terms of Section 2.5. The sale will be made on the same terms, including, without

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limitation, as provided in Section 2.5(d)(i) and the first sentence of Section 2.5(d)(ii), as applicable, and subject to the same conditions as would have applied had the Founder not made the Prohibited Transfer, except that the sale (including, without limitation, the delivery of the purchase price) must be made within ninety (90) days after the Participating Investor learns of the Prohibited Transfer, as opposed to the timeframe proscribed in Section 2.5. Such Founder shall also reimburse each Participating Investor for any and all reasonable and documented out-of-pocket fees and expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Participating Investor's rights under Section 2.5.

### 2.7. Election of Board of Directors.

(a) Voting: Board Composition. Subject to the rights of the Shareholders to remove a director for cause in accordance with applicable law, during the term of this Agreement, each Shareholder 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 Shareholder (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 of Directors:

(i) One individual (the "Higdon Board Designee") designated from time to time in a writing delivered to the Company and signed by Jim Higdon ("Higdon") for so long as Higdon continues to own beneficially at least one (1) share of issued and outstanding Common Stock of the Company, which individual shall initially be Higdon;

(ii) One individual (the "Zipperle Board Designee") designated from time to time in a writing delivered to the Company and signed by Eric Zipperle ("Zipperle") for so long as Zipperle continues to own beneficially at least one (1) share of issued and outstanding Common Stock of the Company, which individual shall initially be Zipperle;

(iii) One individual (the "Series Seed Board Designee" and together with the Higdon Board Designee and Zipperle Board Designee, each a "Board Designee") designated from time to time in a writing delivered to the Company and signed by the Requisite Holders who then hold a majority of the thenoutstanding shares of Series Seed Preferred Stock.

Notwithstanding anything in this Agreement to the contrary, the Board of Directors shall have the right to remove the Series Seed Board Designee, with or without cause, upon an affirmative vote of the majority of the members of the Board of Directors. Upon removal from the position of Series Seed Board Designee, such individual shall not be reappointed as the Series Seed Board Designee pursuant to this Section 2.7 without the consent of the majority of the members of the Board of Directors. Except as set forth in the foregoing, and subject to the rights of the

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Shareholders of the Company to remove a director for cause in accordance with applicable law, during the term of this Agreement, a Shareholder 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 parties entitled to designate the Board Designee. Each Shareholder hereby appoints, and shall appoint, the thencurrent Chief Executive Officer of the Company, as the Shareholder'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 Shareholder as set forth in this Agreement and to execute all appropriate instruments consistent with this Agreement on behalf of the Shareholder if, and only if, the Shareholder (a) fails to vote or (b) attempts to vote (whether by proxy, in person or by written consent), in a manner which is inconsistent with the terms of this Agreement, all of the Shareholder'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 Shareholder's written consent or signature. The proxy and power granted by each Shareholder pursuant to this Section 2.7 are coupled with an interest and are given to secure the performance of the Shareholder'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 Shareholder is an individual, will survive the death, incompetency and disability of such Shareholder and, so long as any Shareholder is an entity, will survive the merger or reorganization of the Shareholder or any other entity holding Voting Shares.

### 3. Exempt Transfers.

3.1. Exempted Transfers. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Sections 2.4 and 2.5 shall not apply (a) in the case of a Founder that is an entity, upon a transfer by such Founder to its stockholders, members, partners or other equity holders, (b) to a repurchase of Transfer Stock from a Founder by the Company at a price no greater than that originally paid by such Founder for such Transfer Stock and pursuant to an agreement containing vesting and/or repurchase provisions approved by a majority of the Board of Directors, (c) to a pledge of Transfer Stock that creates a mere security interest in the pledged Transfer Stock, provided that the pledgee thereof agrees in writing in advance to be bound by and comply with all applicable provisions of this Agreement to the same extent as if it were the Founder making such pledge, or (d) in the case of a Founder that is a natural person, upon a transfer of Transfer Stock by such Founder made for bona fide estate planning purposes, either during his or her lifetime or on death by will or intestacy to his or her spouse, including any life partner or similar statutorily-recognized domestic partner, child (natural or adopted), or any other direct lineal descendant of such Founder (or his or her spouse, including any life partner or similar statutorily-recognized domestic partner) (all of the foregoing collectively referred to as "family members"), or any other person approved by unanimous consent of the Board of Directors, or any custodian or trustee of any trust, partnership or limited liability company for the benefit of, or the ownership

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interests of which are owned wholly by such Founder or any such family members; provided that in the case of clause(s) (a), (c), or (d), the Founder shall deliver prior written notice to the Investors of such pledge, gift or transfer and such shares of Transfer Stock shall at all times remain subject to the terms and restrictions set forth in this Agreement and such transferee shall, as a condition to such Transfer, deliver a counterpart signature page to this Agreement as confirmation that such transferee shall be bound by all the terms and conditions of this Agreement as a Founder (but only with respect to the securities so transferred to the transferee), including the obligations of a Founder with respect to Proposed Founder Transfers of such Transfer Stock pursuant to Section 2; and provided further in the case of any transfer pursuant to clause (a) or (d) above, that such transfer is made pursuant to a transaction in which there is no consideration actually paid for such transfer.

3.2. Exempted Offerings. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Section 2 shall not apply to the sale of any Transfer Stock (a) to the public in an offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (a "Public Offering"); or (b) pursuant to a Deemed Liquidation Event (as defined in the Restated Articles).

3.3. Prohibited Transferees. Notwithstanding the foregoing, no Founder shall transfer any Transfer Stock to (a) any entity which, in the determination of the Board of Directors, directly or indirectly competes with the Company; or (b) any customer, distributor or supplier of the Company, if the Board of Directors should determine that such transfer would result in such customer, distributor or supplier receiving information that would place the Company at a competitive disadvantage with respect to such customer, distributor or supplier, unless otherwise approved by the Board of Directors.

4. Legend. Each certificate, instrument, or book entry representing shares of Transfer Stock held by the Founders or issued to any permitted transferee in connection with a transfer permitted by Section 3.1 hereof shall be notated with the following legend:

THE SALE, PLEDGE, HYPOTHECATION, OR TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT BY AND AMONG THE STOCKHOLDER, THE CORPORATION AND CERTAIN OTHER HOLDERS OF STOCK OF THE CORPORATION. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

Each Founder agrees that the Company may instruct its transfer agent to impose transfer restrictions on the shares notated with the legend referred to in this Section 4 above to enforce

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the provisions of this Agreement, and the Company agrees to promptly do so. The legend shall be removed upon termination of this Agreement at the request of the holder.

# 5. Miscellaneous.

5.1. Term. This Agreement shall automatically terminate upon the earlier of (a) immediately prior to the consummation of the Company's IPO; and (b) the consummation of a Deemed Liquidation Event (as defined in the Restated Articles).
5.2. Stock Split. All references to numbers of shares in this Agreement shall be appropriately adjusted to reflect any stock dividend, split, combination or other recapitalization affecting the Capital Stock occurring after the date of this Agreement.
5.3. Ownership. Each Founder represents and warrants that such Founder is the sole legal and beneficial owner of the shares of Transfer Stock subject to this Agreement and that no other person or entity has any interest in such shares (other than a community property interest as to which the holder thereof has acknowledged and agreed in writing to the restrictions and obligations hereunder).
5.4. Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Kentucky and to the jurisdiction of the United States District Court for the Western District of Kentucky for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Kentucky and to the jurisdiction of the United States District Court for the Western District of Kentucky, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, 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 may not be enforced in or by such court.

WAIVER OF JURY TRIAL: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER

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WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

5.5. Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (a) personal delivery to the party to be notified, (b) when sent, if sent by 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 (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their address as set forth on Schedule A or Schedule B hereof, as the case may be, or to such email address or address as subsequently modified by written notice given in accordance with this Section 5.5. To the extent that any notice given by means of electronic transmission is returned or undeliverable for any reason, the electronic notice shall be ineffective and deemed to not have been given until a new or corrected electronic mail address has been provided. Each Investor and Founder agrees to promptly notify the Company of any change in its electronic mail address, and that failure to do so shall not affect the foregoing.

5.6. Entire Agreement. This Agreement (including, the Exhibits and Schedules hereto) together with the other Offering Documents (as defined in the Subscription Agreement) constitutes 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 are expressly canceled.

5.7. 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, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall 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 shall 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, shall be cumulative and not alternative.

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5.8. Amendment; Waiver and Termination. This Agreement may be amended, modified or terminated (other than pursuant to Section 5.1 above) and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (a) the Company, (b) the Founders, and (c) the holders of a majority of the shares of Common Stock issued or issuable upon conversion of the then outstanding shares of Series Seed Preferred Stock held by the Investors (voting as a single separate class and on an as-converted basis). Any amendment, modification, termination or waiver so effected shall be binding upon the Company, the Investors, the Founders and all of their respective successors and permitted assigns whether or not such party, assignee or other shareholder entered into or approved such amendment, modification, termination or waiver. Notwithstanding the foregoing, (i) this Agreement may not be amended, modified or terminated and the observance of any term hereunder may not be waived with respect to any Investor or Founder without the written consent of such Investor or Founder unless such amendment, modification, termination or waiver applies to all Investors and Founders, respectively, in the same fashion, (ii) this Agreement may not be amended, modified or terminated and the observance of any term hereunder may not be waived with respect to any Investor without the written consent of such Investor, if such amendment, modification, termination or waiver would adversely affect the rights of such Investor in a manner disproportionate to any adverse effect such amendment, modification, termination or waiver would have on the rights of the other Investors under this Agreement, (iii) the consent of the Founders shall not be required for any amendment, modification, termination or waiver if such amendment, modification, termination or waiver does not apply to the Founders, and (iv) Schedule A hereto may be amended by the Company from time to time in accordance with the Subscription Agreement to add information regarding an additional Investor without the consent of the other parties hereto. The Company shall give prompt written notice of any amendment, modification or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, modification, termination or waiver. No waivers of or exceptions to any term, condition or provision of this Agreement, in any one (1) or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

### 5.9. Assignment of Rights.

(a) The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

(b) Any successor or permitted assignee of any Founder, including any Prospective Transferee who purchases shares of Transfer Stock in accordance with the

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terms hereof, shall deliver to the Company and the Investors, as a condition to any transfer or assignment, a counterpart signature page hereto pursuant to which such successor or permitted assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor of such successor or permitted assignee.

(c) The rights of the Investors hereunder are not assignable without the Company's written consent (which shall not be unreasonably withheld, delayed or conditioned), except (i) by an Investor to any Affiliate, or (ii) to an assignee or transferee who acquires at least a majority of the issued and outstanding shares of Capital Stock (as adjusted for any stock combination, stock split, stock dividend, recapitalization or other similar transaction), it being acknowledged and agreed that any such assignment, including an assignment contemplated by the preceding clauses (i) or (ii) shall be subject to and conditioned upon any such assignee's delivery to the Company and the other Investors of a counterpart signature page hereto pursuant to which such assignee shall confirm their agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the assignor of such assignee.
(d) Except in connection with an assignment by the Company by operation of law to the acquirer of the Company, the rights and obligations of the Company hereunder may not be assigned under any circumstances.

5.10. Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

5.11. Additional Investors. Notwithstanding anything to the contrary contained herein, if the Company issues additional shares of the Company's Series Seed Preferred Stock after the date hereof, any purchaser of such shares of Series Seed Preferred Stock may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement and thereafter shall be deemed an "Investor" for all purposes hereunder.
5.12. Governing Law. This Agreement shall be governed by the internal law of the Commonwealth of Kentucky, without regard to conflict of law principles that would result in the application of any law other than the law of the Commonwealth of Kentucky.
5.13. 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.
5.14. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN

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Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

5.15. Aggregation of Stock. All shares of Capital Stock held or acquired by Affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.
5.16. Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each Investor shall be entitled to specific performance of the agreements and obligations of the Company and the Founders hereunder and to such other injunction or other equitable relief as may be granted by a court of competent jurisdiction.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties have executed this Right of First Refusal and Co-Sale Agreement as of the date first written above.

COMPANY:

CORNBREAD CBD, PBC

By: Eric Zipperle
21AF7544024549E

Name: ____
CEO

Title:

FOUNDERS:

Signature: Jim Higdon
22A2C86F67A14F7

Signature: Eric Zipperle
21AF7544024549E

INVESTORS:

Signatures provided in joinder joinder agreement or in joinder provisions of applicable Subscription Agreements.

SIGNATURE PAGE TO

INVESTOR RIGHTS AGREEMENT

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## SCHEDULE A

### INVESTORS

**Name and Address**

Kentucky Science and Technology Corporation

Gill & Augusta Holland

Andrew Mays

GRA, LLC

Cascade Bay Trading Co., LLC

Vertical Realty Group, LLC

Render Capital

Roy & Jennifer Cullinan

Colin Mackin

Joseph Leo Mackin

Noah Mackin

Theresa Lenhardt

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## SCHEDULE B

## FOUNDERS

Name

Jim Higdon

Eric Zipperle

854869:10

# JOINDER AGREEMENT

Reference is hereby made to that certain Investor Rights Agreement (as the same may be amended, restated, supplemented, or otherwise modified from time to time, the “Agreement”), dated as [EFFECTIVE DATE], by and among CORNBREAD CBD, PBC, a Kentucky public benefit corporation (the “Company”), the Investors (as defined in the Agreement) and the Founders (as defined in the Agreement). The undersigned hereby agrees that upon execution and delivery of this Joinder Agreement, it shall become a party to the Agreement as an “Investor” for all purposes thereunder and shall be fully bound by, and subject to, all of the terms, conditions, and provisions of the Agreement applicable to Investors thereunder as though an original party thereto.

Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Agreement.

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date set forth below.

INVESTOR:

Investor Signature

(Signature)

[ENTITY NAME]

(Printed Name)

Date: [EFFECTIVE DATE]

ACCEPTED

CORNBREAD CBD, PBC

By: Founder Signature

Name: [FOUNDER_NAME]

Title: [FOUNDER_TITLE]

Date: [EFFECTIVE DATE]

855884.1

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

# CORNBREAD CBD, PBC  
FINANCIAL STATEMENTS  
AND SUPPLEMENTARY INFORMATION  
YEARS ENDED DECEMBER 31, 2021 AND 2020

# CONTENTS

|  | Page |
| --- | --- |
| Independent accountants' review report | 1 |
| Balance sheets | 3 |
| Statements of income | 4 |
| Statements of shareholders' equity (deficit) | 5 |
| Statements of cash flows | 6 |
| Notes to financial statements | 7 |
| Supplementary information: |  |
| Schedule 1, Operating expenses | 15 |

b

W

BOWDEN & WOOD

CERTIFIED PUBLIC ACCOUNTANTS

MARK A. SCHAEFFER, CPA
NICHOLAS M. SCHAEFER, CPA
BRIAN E. MOSS, CPA
PHILIP J. AMSHOFF, CPA
JOHN D. ERB, CPA
JESSICA N. ENGLER, CPA
JOSEPH J. O'CONNOR

ASSOCIATES

JUDY L. GIBSON, CPA

KIMBERLY M. STILLWELL, CPA

JOHN L. BUNTON, CPA

September 28, 2022

# INDEPENDENT ACCOUNTANTS' REVIEW REPORT

To the Shareholders
Cornbread CBD, PBC
Louisville, Kentucky

We have reviewed the accompanying financial statements of Cornbread CBD, PBC (a Kentucky public benefit corporation), which comprise the balance sheets as of December 31, 2021 and 2020 and the related statements of income and shareholders' equity and cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

# Management's Responsibility for the Financial Statements

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

# Accountants' Responsibility

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

We are required to be independent of Cornbread CBD, PBC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our reviews.

304 MIDDLETOWN PARK PLACE

LOUISVILLE, KENTUCKY 40243-2555

(502) 583-0262

FAX (502) 583-0230

www.bowdenandwood.com

1

Page 2

September 28, 2022

## Accountants' Conclusion

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

## Supplementary Information

The supplementary information included in Schedule 1 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. We have not audited or reviewed such information and we do not express an opinion, a conclusion, nor provide any assurance on it.

Respectfully submitted,

Bowden & Wood

Bowden & Wood, PLLC

Certified Public Accountants

2

# CORNBREAD CBD, PBC  
BALANCE SHEETS  
DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash | $253 583 | $401 142 |
| Accounts receivable | 6 409 | 3 948 |
| Prepaid expenses and deposits | 115 362 | 700 |
| Inventory | 181 657 | 35 514 |
| Materials in process | -0- | 30 125 |
| Total current assets | 557 011 | 471 429 |
| Property and equipment, net (note B) | 20 643 | 34 111 |
| Other noncurrent assets: |  |  |
| Amortization intangibles, net (note B) | 30 796 | 31 009 |
| Total other noncurrent assets | 30 796 | 31 009 |
| Total assets | 608 450 | 536 549 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| Accounts payable | 9 748 | -0- |
| Credit cards payable | 40 125 | 23 948 |
| Accrued expenses | 1 013 | -0- |
| Accrued wages payable | 6 241 | -0- |
| Accrued sales and use taxes | 10 262 | 379 |
| Provision for income taxes | 175 | 175 |
| Current portion of notes payable | 624 954 | 630 |
| Total current liabilities | 692 518 | 25 132 |
| Noncurrent liabilities: |  |  |
| Notes payable (notes C and D) | 98 763 | 446 441 |
| Total noncurrent liabilities | 98 763 | 446 441 |
| Shareholders' equity (deficit): |  |  |
| Common stock, no par value - 1,000,000 shares authorized, 755,727 shares issued and 71,928 outstanding | 100 100 | 100 100 |
| Convertible debt issuance costs (note D) | (25 728) | (25 728) |
| Treasury stock - 71,928 shares at cost | (100 000) | -0- |
| Accumulated deficit | (157 203) | (9 396) |
| Total shareholders' equity (deficit) | (182 831) | 64 976 |
| Total liabilities and shareholders' equity | 608 450 | 536 549 |

See independent accountants' review report and notes to financial statements.

3

# CORNBREAD CBD, PBC  
STATEMENTS OF INCOME  
FOR THE YEARS ENDED DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Sales | $1 855 863 | $429 871 |
| Cost of sales | 609 590 | 177 363 |
| Gross profit | 1 246 273 | 252 508 |
| Operating expenses | 1 399 805 | 258 223 |
| Operating loss | (153 532) | (5 715) |
| Other income (expenses): |  |  |
| PPP loan forgiven | 4 437 | -0- |
| Grants | 6 000 | -0- |
| Interest expense | (2 048) | (991) |
| Amortization expense | (2 489) | (2 316) |
| Total other income (expense) | 5 900 | 3 307 |
| Loss before income taxes | (147 632) | (9 022) |
| Income tax expense | 175 | -0- |
| Net loss | (147 807) | (9 022) |

See independent accountants' review report and notes to financial statements.

4

# CORNBREAD CBD, PBC  
STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)  
FOR THE YEARS ENDED DECEMBER 31,

|  | Capital stock | Convertible debt issuance costs | Treasury stock | Accumulated deficit | Total |
| --- | --- | --- | --- | --- | --- |
| Balance, December 31, 2019 | $100 100 | $ -0- | $ -0- | $(374) | $99 726 |
| Convertible debt issuance costs | -0- | (25 728) | -0- | -0- | (25 728) |
| Net loss | -0- | -0- | -0- | (9 022) | (9 022) |
| Balance, December 31, 2020 | 100 100 | (25 728) | -0- | (9 396) | 64 976 |
| Cost of 71,928 shares of common stock in treasury | -0- | -0- | (100 000) | -0- | (100 000) |
| Net loss | -0- | -0- | -0- | (147 807) | (147 807) |
| Balance, December 31, 2021 | 100 100 | (25 728) | (100 000) | (157 203) | (182 831) |

See independent accountants' review report and notes to financial statements.

5

# CORNBREAD CBD, PBC  
STATEMENTS OF CASH FLOWS  
FOR THE YEARS ENDED DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss | $(147 807) | $(9 022) |
| Adjustments to reconcile net loss to net cash (used) provided by operating activities: |  |  |
| Depreciation and amortization | 15 958 | 9 315 |
| Changes in assets and liabilities: |  |  |
| (Increase) decrease in assets: |  |  |
| Accounts receivable | (2 461) | 6 053 |
| Prepaid expenses and deposits | (114 662) | (700) |
| Inventories | (146 143) | 17 156 |
| Materials in process | 30 125 | (25 257) |
| Increase (decrease) in liabilities: |  |  |
| Accounts payable | 9 748 | -0- |
| Credit cards payable | 16 177 | 3 538 |
| Accrued expenses | 1 013 | -0- |
| Accrued wages payable | 6 241 | -0- |
| Accrued sales and use taxes | 9 883 | 262 |
| Net cash (used) provided by operating activities | (321 928) | 1 345 |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| Purchase of fixed assets | -0- | (38 819) |
| Purchase of organizational and start up costs | (2 277) | (3 849) |
| Net cash used by investing activities | (2 277) | (42 668) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| Proceeds from notes payable | 276 646 | 447 071 |
| Payment of convertible debt issuance costs | -0- | (25 728) |
| Purchase of common stock to treasury | (100 000) | -0- |
| Net cash provided by financing activities | 176 646 | 421 343 |
| NET (DECREASE) INCREASE IN CASH | (147 559) | 380 020 |
| CASH AT BEGINNING OF YEAR | 401 142 | 21 122 |
| CASH AT END OF YEAR | 253 583 | 401 142 |
| SUPPLEMENTAL CASH FLOW DATA |  |  |
| Interest paid | 2 048 | 991 |
| Income tax paid | 175 | -0- |

See independent accountants' review report and notes to financial statements.

6

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS

# A ACCOUNTING POLICIES

# CORPORATE INFORMATION

Cornbread CBD, PBC ('the Company') is a corporation formed under the laws of the Commonwealth of Kentucky as a Public Benefit Corporation (B Corporation) with purpose to engage in the sale of hemp products and to provide a positive effect and make healthy and environmentally safe products.

# NATURE OF OPERATIONS

The Company derives revenue from the formulation and resale of USDA organic CBD products across multiple distribution channels including retail and online sales.

# BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.

# USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

# ADVERTISING

The Company expenses advertising costs as incurred. Advertising expense amounted to $1,026,622 and $170,688 for the years ended December 31, 2021 and 2020, respectively.

# MAJOR SUPPLIER

Substantially all raw product and supplies are supported by purchases from two suppliers. These products however, are available from many other sources.

# CASH AND CASH EQUIVALENTS

The Company considers monetary instruments with original maturity of three months or less to be cash equivalents.

# CONCENTRATION OF CREDIT RISK

The Company maintains its cash in bank deposit accounts at a high quality financial institution. The balances, at times, may exceed federally insured limits.

# ACCOUNTS RECEIVABLE

Accounts receivable consist of amounts billed to customers for inventory shipped or work completed for which payments has not yet been received. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. An allowance for doubtful accounts is not presented since management believes that all receivables are collectible.

Receivables balance at January 1, 2020 was $10,001.

7

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# A ACCOUNTING POLICIES (continued)

# INCOME TAXES

The Company follows the provisions of FASB ASC 740-10-25, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FASB ASC 740-10-25 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions.

The Company records uncertain tax positions on the basis of a two-step process in which: (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position; and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authorities.

The Company recognizes interest and penalties related to unrecognized tax positions as part of the income tax provision in the accompanying statements of income and statements of shareholders' equity (deficit) and includes accrued interest and penalties in income taxes payable in the balance sheets.

# INVENTORY

The Company's inventory includes raw materials, supplies, and completed products that are held-for-sale. Management's experience suggests that losses due to obsolescence or spoilage to be immaterial. Therefore, no amount has been recognized as a reserve for losses in inventory. Inventory is stated at cost.

# PROPERTY AND EQUIPMENT

Property and equipment are stated at cost. Invoices or other individual items that come under consideration for capitalization are generally expensed on a case-by-case basis in order to determine the appropriateness of capitalization or expensing the entire amount currently. Depreciation and amortization of property and equipment are computed by the straight-line method based upon the estimated useful lives of the assets. The cost and accumulated depreciation or amortization are removed from the accounts when assets are disposed of or retired and any resultant gains or losses are included in other income.

# AMORTIZABLE INTANGIBLES

Amounts included in amortizable intangibles are startup and organizational costs. These costs are being amortized over a period of 15 years on a straight-line basis.

# REVENUE RECOGNITION

Sales revenue is recognized upon shipment and of products. Allowances for sales returns and discounts are recorded as a component of net sales in the period the allowances are recognized.

8

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# B PROPERTY AND EQUIPMENT

Property, equipment and intangibles consisted of the following at December 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Property and equipment | $41 463 | $41 462 |
| Accumulated depreciation | 20 820 | 7 351 |
| Property and equipment, net | 20 643 | 34 111 |
| Organizational and startup costs | 37 335 | 35 059 |
| Accumulated amortization | 6 539 | 4 050 |
| Amortizable intangibles, net | 30 796 | 31 009 |
| Depreciation expense | 13 469 | 6 999 |
| Amortization expense | 2 489 | 2 316 |

# C LONG-TERM DEBT

Notes payable consisted of the following at December 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Convertible debt instruments, see note D for detail | $392 871 | $392 871 |
| Note payable to shareholder, see note D for detail | 75 000 | -0- |
| SBA EIDL loan, see note D for detail | 55 846 | 54 200 |
| Wayflyer loan, see note D for detail | 200 000 | -0- |
| Total notes payable | 723 717 | 447 071 |
| Less current maturities | (624 954) | (630) |
| Long term portion | 98 763 | 446 441 |

Maturities of note payable due after one year are:

Year ended December 31,

| 2023 | $26 155 |
| --- | --- |
| 2024 | 26 199 |
| 2025 | 1 245 |
| 2026 | 1 292 |
| Thereafter | 43 872 |
|  | 98 763 |

9

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# D NOTES PAYABLE

# NOTE PAYABLE TO SHAREHOLDER

During 2021, the Company purchased from a shareholder 71,928 shares common stock placed in treasury, payable in four annual installments of $25,000 with the first payment beginning in 2021. A non-interest bearing promissory note has been issued for the portion of the amount unpaid and has been recorded as long-term debt as stated in note C. This loan is unsecured.

# CONVERTIBLE DEBT INSTRUMENTS

During 2020, the Company entered into subordinated note purchase agreements with various investors, whereby the Company borrowed $392,871 and incurred issuance costs of $25,728. Proceeds received by the Company are in consideration for convertible promissory notes issued to the investors, whereby $4.71 invested is convertible to 1 unit of no par value common stock. The maturity dates are in 2022 and are non-interest bearing. The Company anticipates all notes will be converted in 2022 and has presented the issuance costs as a direct reduction of shareholder's equity on the balance sheet. The loans are unsecured.

# EIDL LOAN

On June 9, 2020, the Company executed the standard loan documents required for securing a loan (the 'EIDL loan') from the United States Small Business Administration ('the SBA') under its Economic Injury Disaster Loan assistance program in light of the impact of the COVID-19 pandemic on the Company's business. The principal amount of the EIDL loan is $54,000, with proceeds to be used for working capital purposes. Interest on the EIDL loan accrues at the rate of 3.75% per annum and installment payments, including principal and interest, are due monthly beginning twenty-four months from the date of the EIDL loan in the amount of $265. The balance of principal and interest is payable thirty years from the date of the promissory note. In connection with the EIDL loan, the Company executed the EIDL loan documents, which include the SBA Secured Disaster Loan Note, dated June 9, 2020, and the Security Agreement, dated June 9, 2020, each between the SBA and the Company. This loan is secured by the assets of the Company.

# WAYFLYER LOAN

During 2021, the Company sold $206,500 of future trade receivables to Wayflyer, an unrelated entity with a discount of 3.25%, or $6,500. The Company has recognized the cash received and discount sold on the transfer as a secured borrowing (see note C). This note bears no interest and the transferee of the trade receivables has recourse only on future trade receivables.

# E EQUITY BASED COMPENSATION

In 2020, the Company adopted a shareholder subscription option plan for the purposes of attracting and retaining both qualified employees as well as board advisory members. Options issued under the plan vest at the rate of 50% per year and grant the holder the right to purchase the Company's common stock at an exercise price determined using a value set by an independent appraiser.

10

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# E EQUITY BASED COMPENSATION (continued)

The Company set the value per share for purposes of the Buy and Sell Agreement and for granting stock options at $0.70 per share effective in 2020.

During 2021, the Company redeemed stock under an agreement with one shareholder as separately stated on the Statements of Shareholders' Equity (Deficit) as 'cost of shares of common stock in treasury'. On May 11, 2021, the Company entered into a stock redemption agreement with a shareholder who owned 143,856 shares of common stock and has agreed to allow the Company to redeem 71,928 shares set price per share of $1.39.

The Company granted nonqualified stock options to 2 employees, 1 angel investor, and 5 advisors during 2020 to purchase a total of 744,240 shares of stock at $0.70 per share, the value in effect when the options were authorized by the Company. There were no stock options granted during 2021.

The following is an analysis of options to purchase shares of the Company's stock issued and outstanding as of December 31, 2021 and 2020:

|  | Options Outstanding | Weighted Average Exercise Price |
| --- | --- | --- |
| Options outstanding at January 1, 2020 | - 0 - | $ - 0 - |
| Granted during the year | 744 240 | 0.70 |
| Forfeited during the year | - 0 - | - 0 - |
| Exercised during the year | (143 856) | 0.70 |
| Options outstanding at December 31, 2020 | 600 384 | 0.70 |
| Granted during the year | - 0 - | - 0 - |
| Forfeited during the year | - 0 - | - 0 - |
| Sold during the year | 71 928 | 1.39 |
| Options outstanding at December 31, 2021 | 672 312 | 0.77 |

As of the date of this report, all authorized options were vested and exercisable.

11

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# F COMMITMENTS AND CONTINGENCIES

# LEASE NOTE

In March 2020, the Company signed a month-to-month lease for warehouse space through July 2024 for monthly rent of $700. In 2021, this lease was terminated, and the Company moved to a new location. In April 2021, the Company signed a lease for warehouse space through July 2024 for monthly rent of $1,600. Rent expense was $11,500 and $7,102 for the years ended December 31, 2021 and 2020, respectively.

Future minimum lease payments are as follows for the years ending December 31:

| 2022 | $19 200 |
| --- | --- |
| 2023 | 19 200 |
| 2024 | 11 200 |
|  | 49 600 |

# H LOAN FORGIVENESS

In 2021, the Company received a $4,437 loan from a bank under the Paycheck Protection Program (PPP) established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan was to be forgiven to the extent loan proceeds were used for eligible expenses such as payroll and other expenses described in the CARES Act. The Company used the loan proceeds for qualifying expenses and the entire loan was forgiven in 2021.

# I RECENT ACCOUNTING PRONOUNCEMENTS

In February 2016, the FASB issued ASU 2016-02, “*Leases (Topic 842)*.” This update includes a lease accounting model that recognizes two types of leases - finance leases and operating leases. The standard requires that a lessee recognize on the balance sheet assets and liabilities relating to leases with terms of more than 12 months. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as a finance or operating lease. The update is effective for the Company beginning in January 2022. The Company would be required to record a “right of use” asset and a lease liability payable. The Company is currently evaluating the impact of this adoption.

# J COMMON STOCK - NO PAR VALUE

The Company has been authorized to issue 1,000,000 shares. At December 31, 2021 and 2020, 755,727 and 143,856 shares were issued and 71,928 and 143,856 were outstanding, respectively.

# K SUBSEQUENT EVENTS

The Wayflyer note payable for $200,000 as described in note D was paid in full in March 2022. An additional $169,650 was received from the Wayflyer platform in April 2022 and was subsequently paid in full in July 2022.

12

# CORNBREAD CBD, PBC  
NOTES TO FINANCIAL STATEMENTS (continued)

# L ADDITIONAL SUBSEQUENT EVENT NOTES

The Company intends to perform another crowd funding offering in 2022 for the purpose of raising operating capital.

In 2022, the Company issued 113,359 shares of Series Seed Preferred Stock to qualified investors. Net proceeds received from the Series Seed Preferred Stock issuance totaled approximately $900,000.

In 2022, the Company entered into a purchase agreement to acquire a supplier. As of the date of this report, the purchase agreement has not been finalized.

COVID-19 and its related economic impact on businesses of all sizes began prior to the issuance of these financial statements. While it is too early to determine the full impact of COVID-19 and while no specific detrimental effects have been identified, management anticipates that there will be at least some negative impact on the financial condition of the Company. In response, management is monitoring staffing levels and other operational expenses as circumstances require.

Management has evaluated subsequent events through the date of this report, which is the date the financial statements were available to be issued.

13

Schedule 1

# CORNBREAD CBD, PBC  
OPERATING EXPENSES  
FOR THE YEARS ENDED DECEMBER 31,

|  | 2021 | 2020 |
| --- | --- | --- |
| Advertising and marketing | $1 026 622 | $170 688 |
| Blog writing | -0- | 7 732 |
| Booth and event fees | -0- | 1 401 |
| Bank and processing fees | 97 135 | 6 103 |
| Uniforms | -0- | 1 353 |
| Equipment | -0- | 584 |
| Insurance | 9 690 | 5 506 |
| Legal and professional | 20 527 | 4 384 |
| Meals and entertainment | 7 259 | 652 |
| Office supplies | 35 155 | 15 865 |
| Commissions | 152 136 | 21 298 |
| Research and development | 179 | 756 |
| Taxes and licenses | 27 | 3 188 |
| Travel | 5 407 | 558 |
| Utilities | 9 222 | 2 145 |
| Website development | -0- | 1 909 |
| Depreciation expense | 13 469 | 6 999 |
| Rent | 11 500 | 7 102 |
| Contractors | 8 066 | -0- |
| Repairs and maintenance | 175 | -0- |
| Other operating expenses | 3 236 | -0- |
| Total | 1 399 805 | 258 223 |

See independent accountants' review report.

15

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

Contact

www.linkedin.com/in/eric-zipperle-65051a83 (LinkedIn)

Top Skills

Accounting

Energetic team player

Enthusiasm to learn

Certifications

Global Commerce and Strategy

# Eric Zipperle

Co-founder & CEO, Cornbread Hemp
Louisville, Kentucky, United States

## Summary

Bachelors of Accounting and Masters of Business Administration
from Bellarmine University

## Experience

Cornbread Hemp

Co-Founder & CEO

November 2018 - Present (4 years 4 months)

Louisville, Kentucky Area

Kentucky's first ever provider of USDA organic CBD products, Cornbread Hemp is rooted in Kentucky hemp tradition that dates all the way back to 1775. Co-founded with James Higdon, author the book Cornbread Mafia, Cornbread Hemp operates direct to consumer and partners with top-shelf retailers across the country to provide the highest quality USDA organic CBD products that are made for comfort.

## Education

Bellarmine University

Master of Business Administration (MBA) + Bachelors of Accounting, Accounting/MBA · (2012 - 2016)

Trinity High School

· (2008 - 2012)

Page 1 of 1

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

Contact

www.linkedin.com/in/jameshigdon
(LinkedIn)
www.cornbreadhemp.com/
(Company)

Top Skills

Blogging
Editing
History

Publications

THE CORNBREAD MAFIA

# Jim Higdon

Co-founder at Cornbread Hemp Co
Louisville, Kentucky, United States

## Summary

Co-founder of Cornbread Hemp, maker of the best USDA organic full spectrum CBD+THC products in America.

## Experience

Cornbread Hemp Co

Co-founder, chief communications officer
January 2019 - Present (4 years 2 months)
Louisville, Kentucky Area

Visit us at CornbreadHemp.com and follow us on Instagram:
@CornbreadHemp.

THE NEARLY FORGOTTEN HISTORY OF PORTLAND,
KENTUCKY

Author

December 2018 - Present (4 years 3 months)
Louisville, Kentucky Area

A narrative history of Louisville's most important neighborhood, starring Daniel Boone, Henry Clay, Lewis & Clark, John James Audubon, Abraham Lincoln, Charles Dickens, and Mark Twain.

Brown Alumni Club of Kentucky

President

February 2015 - Present (8 years 1 month)

As president of the local chapter of the Brown Alumni Club, it's my job to help coordinate with Brown alums in the area, employed in the medical, legal, academic, non-profit and creative fields, to provide them with networking and continued education opportunities.

If you have a connection to Brown and live in Kentucky or the Louisville area, please let me know.

Self employed

Freelance Journalist

Page 1 of 3

January 2014 - Present (9 years 2 months)

Louisville, Kentucky Area

I cover drug policy and Kentucky news for POLITICO Magazine and the Washington Post.

## POLITICO

freelancer

2015 - Present (8 years)

## Leadership Louisville Center

Bingham Fellow

January 2015 - October 2015 (10 months)

Louisville, Kentucky Area

As part of the 2015 class of the Bingham Fellowship, I designed a non-partisan social engagement program, where legislators and Metro council members meet with constituents at branch libraries across Metro Louisville on Saturday mornings during the legislative session. This program, Cafe LOUIE, continues to be well attended through the 2017 session.

## CORNBREAD MAFIA, Lyons Press, an imprint of Globe/Pequot reporter/writer

January 2006 - April 2012 (6 years 4 months)

Investigating and reporting a book-length narrative non-fiction manuscript about a superlative true-crime story set in Kentucky, which has caused me to become the first journalist subpoenaed by the Obama administration. Represented by Writer's House in NYC.

## Tehran Bureau

editor

May 2009 - January 2010 (9 months)

Edited breaking news for one of the first English-language websites devoted to news from Iran, a job that heated up since the national crisis following the contested election on June 12. On tight deadlines, I edited roughly written stories from writers inside Iran whose native language was not English, and then reworked them into finish products for TB's online readership.

## The New York Times

Web producer

August 2005 - December 2005 (5 months)

Page 2 of 3

Worked as an online producer for National, Metro, Politics and Sports desks. Covered the Sports desk during the baseball post-season. Improved familiarity with HTML, photo editing and fast-paced deadline production.

## The Courier-Journal

online intern

June 2005 - August 2005 (3 months)

Interned in the online department; helped the C-J explore blogging for the first time.

## Education

Columbia University - Graduate School of Journalism

MS, book writing and multi-media reporting · (2004 - 2005)

Brown University

MFA, Writing · (1998 - 2000)

Centre College

BA, English and studio art · (1994 - 1998)

Marion County High School

· (1990 - 1994)

Page 3 of 3

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

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

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

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

# INVESTMENT OPPORTUNITY

## Cornbread Hemp

Q1, 2023

**ERIC ZIPPERLE**

Chief Executive Officer

eric@cornbreadhemp.com

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

**JIM HIGDON**

Chief Communications Officer

jim@cornbreadhemp.com

PRIVATE & CONFIDENTIAL

# WHY DID WE START CORNBREAD HEMP?

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

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

# CBD MARKET
PROJECTIONS
(USA)

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

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

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

in Billion USD
Source: Fortune Business Insights

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# CORNBREAD GROWTH '19-'22

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

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

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

# OUR
PROVEN
METRICS

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

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

# 5.3
LTV:CAC

Lifetime Value / Customer Acquisition Cost
(An LTV:CAC ratio of 3:1 is standard, and 4:1 is above average.)

We closed this
acquisition in
October 2022!

85%
Margins

93%
Post Acquisition Margins

(We are acquiring our hemp processor with debt
financing for vertical integration.)

# Our average order value compared with other DTC supplements on Shopify:

## Order metrics

New customer AOV i

**$72** falls in the **top 50%**

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

Repeat customer AOV i

**$95** falls in the **top 25%**

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

# Our retention compared with other DTC supplements on Shopify:

## Retention

New customer repurchase rate, 90 day i

**36.6%** falls in the **top 25%**

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

New customer repurchase rate, 180 day i

**39.7%** falls in the **top 25%**

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

# OUR POSITIONING

Filling the premium CBD market gap.

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

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

## SUPERIOR QUALITY

All major brands are sacrificing quality for price, ignoring consumers searching for premium CBD products.

## INDUSTRY LEADERSHIP

We build credibility and brand awareness by sharing our singular expertise through unique media relationships.

## LEANING INTO THC

While the competition focuses on THC-free, our customers value the most effective CBD products, which contain the highest legal level of THC.

To learn more about our product quality, visit the USP Slide in the appendix.

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

# OUR DEFENSIBLE POSITION

## KENTUCKY SUPPLY CHAIN

We are acquiring our hemp processing partner with $1.5M of debt financing to increase our margins to 93%.

## AUTHENTIC BRANDING

The “Cornbread” story directly connects our brand to the 250-year history of Kentucky hemp.

## HIGHEST QUALITY PRODUCTS

Full spectrum, Flower-OnlyTM, USDA certified organic CBD with the most THC the law allows.

## THOUGHT LEADERSHIP

Through unique media relationships, we leverage our brand identity to educate and advocate for greater access to both hemp and cannabis.

# GO-TO-MARKET STRATEGY

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

## AFFILIATE & PR

Leveraging Jim's industry expertise and media relationships for PR and affiliate partnerships, which drive brand credibility and Google search results.

## REGIONAL TARGETING

Leveraging our unique brand identity to build awareness in regional markets that offer little to no competition.

## TRADITIONAL ADVERTISING

We have developed strategic partnerships that allow us unique access to advertise on Facebook, Google, & SnapChat, in addition to CTV and radio.

## RETAIL EXPANSION

We are partnering with the best natural foods broker in the country, Presence Marketing, to enter top-tier retailers like Fresh Thyme, Earth Fare, & Sprouts.

We are the #1 search result for "full spectrum CBD gummies" on Google!

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

# OUR COMPETITION

A fragmented market, with no focus on quality cannabis.

|  | CORNBREAD HEMP | CHARLOTTE'S WEB | MEOTERRA | CBDMO |
| --- | --- | --- | --- | --- |
| HIGHEST LEGAL THC | ☑ | ☐ | ☐ | ☐ |
| USDA ORGANIC | ☑ | ☐ | ☐ | ☐ |
| FLOWER-ONLY | ☑ | ☐ | ☐ | ☐ |
| MARKET SHARE % |  | 3.6 | 1.7 | 1.6 |

The top 20 brands control only 19% of the market. Source: Brightfield Group

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

## OUR TIMING

The CBD industry is only 8 years old, and market share is heavily fragmented.

The top 20 brands control only 19% of the market, which is projected to grow 25X by 2028.

The opportunity to lead the US CBD market is ripe for a brand with true authenticity, expertise, and quality.

We believe it is an opportunity to lead not just the CBD market, but the cannabis industry as a whole.

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# CUSTOMER PRAISE

A Sample of 1,700+ Five-Star Reviews

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

## YOU FOUND THE BEST

“Stop looking for another brand to try, these are the best, I tried over 6 different brands, these are awesome. And they taste great, and their customer service is top notch. Also I love their lotion!”

John G. 10/8/21

## IT IS AUTHENTIC!

“I tried other brands who offered steep discounts and gimmicks like flavors and Cornbread remains the grown-up choice. After six vials the long term results are like yoga in a bottle: better sleep, more presentness, and greater equanimity. There is an authenticity to this brand that I admire.”

Lorrin K. 9/22/21

## BETTER THAN MEDTERRA

“I have tried several different CBD oils, Charlotte’s Web and MedTerra among them. They worked ok, but Cornbread exceeded my expectations.”

Kathy K - 06/01

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

# GENERATING BUZZ

through our proven media & PR strategy:

FOOD&WINE

"I and my colleague, senior editor Kat Kinsman, have made these extra-strength gummies part of our routine."

Chicago Tribune

"A highly potent CBD oil made with superior quality."

BuzzFeed

"perfect to help relax the mind and body"

Health

"it's not easy to stand out in the crowd, but Cornbread Hemp manages to do just that."

mindbodygreen

"a palatable but powerful treat"

NEW YORK

"this CBD is really kind of magical."

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

In three years of business, we have professionalized our operating procedures and HR benefits by implementing:

- EOS and weekly L10 meetings
- Health insurance
- 401(k)'s
- Employee share pool
- Paid vacations
- Foundation laid for certified B-Corp
- USDA organic certification

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

ONLY $325K
LEFT TO SELL!

# THE OPPORTUNITY:

CORNBREAD HEMP IS RAISING A

# $2 MILLION SEED ROUND

$1,675,000 RAISED UNDER REG D

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

$500K IN ANGEL AND CROWDFUND CAPITAL TO DATE.

# USE OF FUNDS
FOR REG CF CAMPAIGN

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

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

## THREE YEAR GOALS

Creating a runway of 24 months to scale.

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

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

2022 ▶

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

- ☑ Revenue goal: $4.5M
- ☑ Hiring for marketing
- ☑ Acquire hemp processor
- ☑ Solidify regional market share

2023 ▶

- ☑ Revenue goal: $12M
- ☑ Hiring for operations and sales
- ☑ Establish regional retail
- ☑ Expand regional market share.

2024 ▶

- ☑ Revenue goal: $30M
- ☑ Hiring for leadership
- ☑ Solidify national market share
- ☑ Establish national retail

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# Why did we acquire our processor?

A partnership that produced the first USDA certified organic CBD products from Kentucky.

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

## Reduced COGS

Acquiring our processor will increase our margins from 85% to 93%, which saves more than $4M over 3 years.

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

## Gummy Manufacturing

Our processor is the only USDA organic CBD gummy manufacturer in the US, which makes Cornbread one of the only companies to offer USDA organic CBD gummies.

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

## USDA Organic & Kentucky Based

USDA organic certification takes years to obtain, and only 5% of CBD companies are certified organic. We are one of them.

# FUTURE PROJECTIONS

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

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

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

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

## Before we exit...

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

The full value of the Cornbread brand won't be realized until the development of the "Cornbread Mafia" book-to-film project. Our projections through 2025 do not include the potential growth from this opportunity.

### The "Cornbread Mafia" book

- Fifteen printings since 2012
- 50,000+ copies sold
- National best-seller

### The "Cornbread Mafia" podcast

- Projected release date: Q1 2023
- Cornbread Hemp is the exclusive sponsor

### The "Cornbread Mafia" TV series

- Currently in discussions with major talent
- Estimated production 2024 - 2025

THIS SLIDE CONTAINS FORWARD-LOOKING STATEMENTS THAT CANNOT BE GUARANTEED.

# WHAT A RELIEF.TM

Thank you for your consideration.

Office: +1(502) 289-1552

eric@cornbreadhemp.com

jim@cornbreadhemp.com

www.cornbreadhemp.com

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

## MEET OUR
CO-FOUNDERS

**JIM HIGDON, CCO**

- › Author of The Cornbread Mafa
- › Cannabis reporter for POLITICO
- › Hemp industry expert

**ERIC ZIPPERLE, CEO**

- › Junior executive, Belle Nobel Entertainment
- › Launched Mint Julep Tours Nashville
- › Accounting degree & MBA, Bellarmine

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

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Cornbread CBD, PBC

**Legal Status:** Other

**Jurisdiction of Incorporation/Organization:** KY

**Date of Organization:** 01-31-2019

**Physical Address:** 2517 Data Drive, Louisville, KY, 40299

**Issuer Website:** https://www.cornbreadhemp.com

**Is there a Co-Issuer?:** Yes

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 6.5% 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:** 3780

**Price per Security:** $13.23

**Method for Determining Price:** Dividing pre-money valuation of $9,998,268 by number of shares outstanding on fully diluted basis, not including the 238,693 outstanding preferred shares that were sold at the same share price to accredited investors before this Reg CF campaign took place.

**Target Offering Amount:** $50,009.40

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $324,994.95

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 22

**Total Assets (Most Recent Fiscal Year):** $608,450.00

**Total Assets (Prior Fiscal Year):** $536,549.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $253,583.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $401,142.00

**Accounts Receivable (Most Recent Fiscal Year):** $6,409.00

**Accounts Receivable (Prior Fiscal Year):** $3,948.00

**Short-Term Debt (Most Recent Fiscal Year):** $692,518.00

**Short-Term Debt (Prior Fiscal Year):** $25,132.00

**Long-Term Debt (Most Recent Fiscal Year):** $98,763.00

**Long-Term Debt (Prior Fiscal Year):** $446,441.00

**Revenues/Sales (Most Recent Fiscal Year):** $1,855,863.00

**Revenues/Sales (Prior Fiscal Year):** $429,871.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $609,590.00

**Cost of Goods Sold (Prior Fiscal Year):** $177,363.00

**Taxes Paid (Most Recent Fiscal Year):** $175.00

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

**Net Income (Most Recent Fiscal Year):** $-147,807.00

**Net Income (Prior Fiscal Year):** $-9,022.00

**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:** Cornbread CBD, PBC

**Signature:** Jim Higdon

**Title:** Co-founder & CCO

---

**Signature:** Eric Zipperle

**Title:** Co-founder & President

**Date:** 02-16-2023

---

**Signature:** Jim Higdon

**Title:** Co-founder & CCO

**Date:** 02-16-2023