# EDGAR Filing Document

**Accession Number:** 0001846165
**File Stem:** 0001670254-23-000184
**Filing Date:** 2023-3
**Character Count:** 295946
**Document Hash:** 80b18a6ad78f2e8256c3f4ea99d07b34
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000184.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001670254-23-000184

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 16

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MBZ Parts
- **CENTRAL INDEX KEY:** 0001846165
- **IRS NUMBER:** 853907305
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31900
- **FILM NUMBER:** 23689008

**BUSINESS ADDRESS:**
- **STREET 1:** 55853 ONAGA TRL
- **CITY:** YUCCA VALLEY
- **STATE:** CA
- **ZIP:** 92284
- **BUSINESS PHONE:** 7604185160

**MAIL ADDRESS:**
- **STREET 1:** 55853 ONAGA TRL
- **CITY:** YUCCA VALLEY
- **STATE:** CA
- **ZIP:** 92284

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

MBZ Parts Inc.

Legal status of issuer:

Form: Corporation

Jurisdiction of Incorporation/Organization: CA

Date of organization: 10/13/2020

Physical address of issuer:

237 W Orange Show Ln

San Bernardino CA 92408

Website of issuer:

http://www.mbzparts.com

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

CIK number of intermediary:

0001670254

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283503

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

7.5% of the offering amount upon a successful fundraise,

and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

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:

20,834

Price:

$2.50000

Method for determining price:

Dividing pre-money valuation $2,939,062.00 (or $2,821,500.00 for investors in the first $79,999.20) by number of shares outstanding on fully diluted basis.

Target offering amount:

$50,001.60

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):

$299,999.20

Deadline to reach the target offering amount:

4/30/2023

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

Current number of employees:

6

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $50,947.00 | $15,000.00 |
| Cash & Cash Equivalents: | $12,205.00 | $0.00 |
| Accounts Receivable: | $13,232.00 | $0.00 |
| Short-term Debt: | $361,715.00 | $38,140.00 |
| Long-term Debt: | $31,562.00 | $0.00 |
| Revenues/Sales: | $21,646.00 | $0.00 |
| Cost of Goods Sold: | $14,010.00 | $0.00 |
| Taxes Paid: | $0.00 | $0.00 |
| Net Income: | ($419,191.00) | ($23,140.00) |

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 thereto, in their entirety. If disclosure in response to any question is responsive to one or more other questions, it is not necessary to repeat the disclosure. If a question or series of questions is inapplicable or the response is available elsewhere in the Form, either state that it is inapplicable, include a cross-reference to the responsive disclosure, or omit the question or series of questions.

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

misleading, the Company, its management and principal shareholders may be liable to investors based on that information.

# THE COMPANY

1. Name of issuer:

MBZ Parts Inc.

# COMPANY ELIGIBILITY

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

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

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

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

☐ Yes ☑ No

# DIRECTORS OF THE COMPANY

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

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Sheila P. Heaney | Owner | ReInvent The Wheel | 2020 |

| Eliza Behlen | Inventory & Supply Chain Manager | ReInvent The Wheel | 2020 |
| --- | --- | --- | --- |
| Fred Watts | Lead Technician | ReInvent The Wheel | 2021 |

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

# OFFICERS OF THE COMPANY

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

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Sheila P. Heaney | President | 2020 |
| Sheila P. Heaney | CEO | 2020 |
| Sheila P. Heaney | CFO | 2020 |
| Sheila P. Heaney | Founder | 2020 |
| Eliza Behlen | Secretary | 2020 |

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

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

# PRINCIPAL SECURITY HOLDERS

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

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| ReInvent The Wheel LLC (100% owned by Sheila Heaney) | 750000.0 Common Stock | 76.87 |

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

To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or share in such direction or control - as, for example, a co-trustee) they should be included as being "beneficially owned." You should include an explanation of these circumstances in a footnote to the "Number of and Class of Securities Now Held." To

circumstances in a jobhouse to the Number of and Class of Securities Now Here. To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

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

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

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

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

## RISK FACTORS

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

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

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

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

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

The Company has debt and only modest revenue. When we began fundraising in 2021, MBZ Parts (the 'Company' or simply 'we') had not generated revenue. Additionally, we have been incurring debts during the start-up phase of our business which we estimate will

total approximately $200,000 to $300,000 associated with the purchase of parts inventories, tools, equipment, data, digital assets, leasing facilities, and professional services. We anticipate it will take time for revenues to substantially exceed start-up costs and ongoing expenses, if this will ever occur. We cannot provide any guarantees that the business will ever be profitable. February 2023 Update: In 2022 we undertook a major liquidation of part of our inventory and sold many items at wholesale prices to downsize the Company's footprint in our warehouse and quickly generate revenue so as to pay all of our expenses in the meantime. Thus, we had enough revenue to cover all of our expenses in 2023. We are now planning to find another business to occupy part of our warehouse to reduce our share of costs for our large warehouse space. We hope to generate a profit in 2023 as a result of lowering our costs of our warehouse space and selling more of our inventory at retail prices, however, there are no guarantees we will actually make a profit this year or in future years due to our numerous expenses, debts, and all of the risks discussed in this risk factors statement.

Risks Associated with Raising Capital are numerous.

We will rely on external financing to fund our operations. As of this writing, only some of that financing has  been obtained and our current crowdfunding campaign is intended to raise the rest that we expect we will need for the foreseeable future. There is no guarantee that we will be successful in raising the funds necessary to carry out our business plan. There is risk that our cost estimates are too low or that we have overlooked some necessary expenses, and that we will actually require greater investment capital than is planned at this time. Therefore, there is considerable risk that the business' resources will need to be devoted to capital raising for months or years before we are able to fully implement our business plan. In the meantime, the market could change in numerous ways, such as by the entry of additional competitors or growth of some or our existing competitors, our costs could increase, and other changes to market could occur, causing delays in achieving profitability, and possibly even causing our business to fail. We anticipate, based on our current proposed plans and assumptions relating to our operations that, if we raise approximately $600,000 to $800,000 in the first half of 2021, it will be sufficient to begin operating as planned. However, these estimates might be flawed and we may need to raise additional capital which, could divert our resources to raising capital instead of on critical operations, which could negatively impact our business in numerous ways.

February 2023 Update: We have raised approximately $166,000 prior to accepting any investments through crowdfunding on Wefunder. We hope to raise up to $299,999.20 through investment crowdfunding via Wefunder.com in 2023. The Company business plan has been adapted to require slightly less capital than we originally envisioned. The risks of insufficient capitalization and as described in this risk factors statement remain significant.

We may be under-estimating some or all of the following factors related to our funding needs and to our overall success:

- The actual cost of beginning and expending our operations;

- The financial terms and timing of any collaborations, licensing or other arrangements into which we may enter;

- The rate of progress and cost of development activities;

- The need to respond to technological changes and increased competition;

- The cost and delays in development of our website that may result from changes in regulatory requirements applicable to our products and our reliance on contract labor in our website development and management;

- Unforeseen difficulties in establishing and maintaining an effective sales and distribution system; and Lack of demand for and market acceptance of our products and services.

Given our lack of business history, conventional bank and other institutional sources of financing are unavailable to us. We may have difficulty obtaining additional funding and we cannot assure you that additional capital will be available to us when needed. If additional capital is available, we cannot guarantee that it will be available on favorable terms. We may need to borrow money on terms that could impose significant restrictions on our operations. We may need to devote substantial amounts of staff and officers’ time on raising capital instead of on business operations. Other potential sources of capital could be scarce or come with other significant costs and other drawbacks. If adequate funds are not available, we may have to delay, scale back, or eliminate some of our operations or our research development and commercialization activities. Under these circumstances, if the Company is unable to acquire additional capital or is required to raise it on terms that are less satisfactory than desired, it may have a material adverse effect on its financial condition.

We have no operating history upon which you can evaluate our performance, and accordingly, our

prospects must be considered in light of the risks that any new company encounters.

This business was recently incorporated and has no history upon which an evaluation of our prospects and future performance can be made. While our business plan describes some aspects of our parent company, Reinvent the Wheel LLC, that have some operating history and that will be transferred to MBZ Parts, we cannot assume that this transfer will occur completely smoothly and any past success with components of our business does not assure future success for the MBZ Parts Company which we foresee will be considerably more complex. Our proposed operations are subject to all business risks associated with a new enterprise. The likelihood of our creation of a viable business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the inception of a new business, operation in a competitive industry, and the continued development of advertising, promotions, and a corresponding client base. There can be no assurances that we will ever operate profitably.

February 2023 Update: We have been operating out of our San Bernardino, California facility since May 2021 and thus we have generated revenues from sales as shown in our financial statements, however, this is only a short operating history so the lack of operating history on which to evaluate the business remains a risk.

In order for the Company to compete and grow, it must attract, recruit, retain and develop the necessary personnel who have the needed experience.

MBZ Parts will be highly dependent on the key personnel who are introduced in our business plan. Recruiting and retaining highly qualified personnel is critical to our success. To successfully implement our business plan we will need to hire additional personnel as well as retain our existing management team. We face intense competition for personnel. The failure to attract and retain personnel with appropriate expertise could delay or halt the development of our business. If we experience difficulties in hiring and retaining personnel in key positions, we could suffer from delays in implementing our business plan, loss of customers and sales, and diversion of management resources, which could adversely affect operating results. Any of our staff, officers, consultants, and advisors may currently be employed by third parties or may in the future become employed by third parties which limit their availability to us. At this time we do not have a plan detailing how to replace any of our key personnel in the case of death, disability, or termination of employment for any reason.

# Control of the Company Rests with Key Personnel

Control of the company currently lies with its founder and CEO, Sheila P. Heaney, through her single member LLC (ReInvent the Wheel, an Oregon LLC). There are several other minority shareholders who hold some voting rights in the corporation, however, Ms. Heaney is a controlling shareholder and will remain as such for the foreseeable future until there is some major refinancing event or sale of the entire business. Investors must rely upon the business judgment and skills of Ms. Heaney, any directors elected to the board of directors by her and any minority shareholders, and any advisors that the corporation chooses to consult.

The Company's success depends on the experience and skill of the board of directors, its executive officers, and key employees. In particular, the Company is dependent on Ms. Heaney who is the CEO of the Company. There can be no assurance that she will continue to work for the Company for any particular period of time. The loss of Ms. Heaney or any member of the board of directors or any executive officer could harm the Company's business, financial condition, cash flow and results of operations.

# Automotive Parts Sales are part of a Competitive Global Industry

We face competition with respect to sales of Mercedes-Benz parts as described in the Market Analysis in our business plan. Our competitors include major companies worldwide in addition to numerous local and regional companies. Some of our competitors have significantly greater financial, technical, technological, and human resources than we have. Some of our competitors have superior brand recognition and marketing and thus may be better equipped than us to gain business. For example, some of our competitors have relationships with insurance companies that refer customers to them. These competitors likely also compete with us in recruiting and retaining qualified personnel and internet sales technologies among other resources. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies, or by making greater investment in marketing, website development, human resources, or parts inventories. As with any enterprise providing sales of goods or services through the internet, we face the risk that any number of competitors may be forming without our knowledge, and that any such new competitors could suddenly emerge with large amounts of investment capital available to overshadow our marketing efforts.

Accordingly, our competitors, new or old, may be able to sell products more rapidly or effectively than we are able to, which would adversely affect our competitive position, the likelihood that our business will generate meaningful additional revenues from our products.

We rely on other companies to provide parts.

We depend on various other sources for our parts inventory and all of these sources are vulnerable to disruptions caused by natural disasters, severe weather, acts of terrorism, nuclear facility accidents, pandemics, labor disputes, civil unrest, changing market conditions, and other forces that are impossible to predict. Vendor consolidation could also limit the number of suppliers from which we may purchase products and could materially affect the prices we pay for these products. We would suffer an adverse impact if our vendors limit or cancel the return privileges that currently protect us from inventory obsolescence.

Our ability to find qualified vendors and access products in a timely and efficient manner is often challenging, particularly with respect to goods sourced outside the United States. Our procurement of goods and services from anywhere, but especially those from outside the United States is subject to risks associated with political or financial instability, trade restrictions, tariffs, currency exchange rates, changing international relations, transport capacity and costs and other factors relating to foreign trade. In addition, our procurement of all our goods and services is subject to the effects of price increases, which we may or may not be able to pass through to our customers. Our ability to continue to obtain parts inventory could easily be disrupted by any of these circumstances.

We depend on third-party service providers and software licensors, and we outsource providers for our web catalog services. MBZ Parts works with contracted web developers. We rely on other third parties for licensing other software. These services could be disrupted and affect our ability to process, record, and report transactions with our customers and suppliers, among other core business functions. Such interruptions could occur for numerous reasons, most of which are outside our control. Such interruptions could result in pursuing a replacement web development team which could considerably increase our costs.

Quality management plays an essential role in determining and meeting customer requirements, preventing defects, improving the Company's products and services and maintaining the integrity of the data

that supports the safety and efficacy of our products.

Our future success depends on our ability to maintain and continuously improve our quality control program. An inability to address a quality or safety issue in an effective and timely manner may cause negative publicity and/or a loss of customer confidence in us, which may result in the loss of sales and difficulty in successfully launching new products.

#### Risks Related to Insurance Coverage

While we have been working with an insurance broker who has been diligently searching for adequate insurance policies to cover our business, as of this writing we do not yet have insurance policies in place to cover all foreseeable liabilities of our business. There is a risk that we won't be able to maintain adequate insurance to cover all potential liabilities or that we will need to spend more money on insurance than as forecast in our current budget projections. The business of dismantling used vehicles and selling used parts is a difficult enterprise to insure due to its known risks, and many major insurance companies do not offer insurance policies for this type of business.

Additionally, workers' compensation insurance coverage for this type of work is very expensive.

A successful legal claim brought against us in excess of available insurance, not covered by insurance at all, or not covered by indemnification agreements, or any claim that results in significant adverse publicity against us, could have an adverse effect on our business and our reputation.

February 2023 Update: We have obtained all insurance policies which we believe to be necessary or prudent for our business, however, costs of insurance premiums continues to be a significant expense and these costs could rise in the future if we need to make claims for coverage and for various other reasons outside of our control.

One of the potential risks we face in the distribution of our products is liability resulting from low quality parts infiltrating the supply chain.

Because we source parts from various sources, we rely on various suppliers and their quality control measures, which comes with risks. In addition, in many situations we obtain parts salvaged from used vehicles, whose history is unknown to us so we must rely on our own inspection and testing of parts for quality control. While we have procedures to inspect products for quality, we

may obtain parts which appear to be in good condition but are actually of poor quality. It's possible we may occasionally inadvertently sell low quality parts to customers, which would negatively impact our customers' experience and could decrease customer demand for our parts and services. In addition, if there are serious injuries due to our faulty parts we could be subject to legal liability for such injuries and there can be no assurance that the insurance coverage we maintain will be sufficient or available in adequate amounts or at a reasonable cost.

Product safety and quality concerns, including concerns related to perceived quality of materials, could negatively affect the Company's business.

The Company's success depends in large part on its ability to maintain consumer confidence in the safety and quality of all our products and of Mercedes-Benz automobiles in general. If products taken to market are or become defective or damaged, the Company may be required to conduct costly product recalls and may become subject to product liability claims and negative publicity, which would cause our business to suffer. In addition, regulatory actions, activities by nongovernmental organizations and public debate and concerns about perceived negative safety and quality consequences of the Mercedes brand or particular automotive parts may erode consumers' confidence in the safety and quality issues, whether or not justified, and could result in additional governmental regulations concerning the marketing and labeling of the Company's products, negative publicity, or actual or threatened legal actions, all of which could damage the reputation of the Company's products and may reduce demand for our products.

Manufacturing or design defects, unanticipated use of our products, or inadequate disclosure of risks relating to the use of the products can lead to injury or other adverse events.

In the event that parts sold by MBZ Parts were to be defective, we could be liable not just for the cost of the part but also for injuries or property damage resulting for the defective part, even if we did not manufacture or repair the part. While we plan to carry products liability insurance, a major safety incident may be inadequately covered by insurance, which could jeopardize the business.

Further, in the event that a new model Mercedes is released with design defects prompting safety concerns and recalls, the reputation of the Mercedes-Benz brand

could be impacted, thus impacting the market for Mercedes-Benz vehicles and parts generally, which could have an adverse effect on our sales.

We may implement new lines of business or offer new products and services within existing lines of business.

We are contemplating numerous potential additional lines of business for the future of MBZ Parts. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and marketing new lines of business and/or new products and services, we may invest significant time and resources with uncertain returns on investment of our resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove feasible. For the same reasons as discussed elsewhere in this statement on risk factors related to being a new business, we may not be successful in introducing new products and services, or those new products may not achieve market acceptance. As a result, our business, financial condition or results of operations may be adversely affected.

In general, demand for our products is highly correlated with general economic conditions.

As a luxury car parts business, a substantial portion of our revenue is derived from discretionary spending by individuals, which typically falls during times of economic instability which are likely to occur at some point in the future. Declines in economic conditions in the U.S. or in other countries in which we operate may adversely impact our financial results. Poor economic conditions, and related factors, including consumer confidence, employment levels, interest rates, availability of credit, costs of housing and consumer products, tax rates, consumer debt levels, and fuel and energy costs could reduce consumer spending or change consumer purchasing habits in ways that harm our business.

Changing economic conditions and their impacts on our business are difficult to predict, so we or the industry may have excess inventory which may result in declines in prices for our products and low or no profits overall.

If the number of vehicles on the road or the number of vehicles involved in accidents declines or the number of cars being repaired declines, or the mix of the types of vehicles in the overall vehicle population changes, our business could suffer.

Our business depends on vehicle miles driven, vehicle

accidents, and mechanical failures, and is affected by changing consumer trends and economic conditions, among others, which are difficult to predict and not within our control. For example, increasing use of ride hailing apps (e.g. Uber, Lyft) could reduce the number of vehicles on the road. This could reduce sales of both new and used cars and reduce the need for mechanical repairs and maintenance, as motorists seek alternative transportation options. Other trends that might increase or decrease demand for automotive parts include many factors such as congestion of traffic, the number of auto accidents, which varies based on changing consumer behavior and effectiveness of accident avoidance systems in new vehicles and the condition of roadways. These changing conditions are difficult to predict and could have positive or negative impacts on demand for our products.

Intellectual property claims relating to aftermarket products could adversely affect our business.

Original equipment manufacturers (“OEMs”) have attempted to use claims of intellectual property infringement against manufacturers and distributors of aftermarket products to restrict or eliminate the sale of aftermarket products that are the subject of the claims. To the extent OEMs and other manufacturers obtain design patents or trademarks and are successful in asserting claims of infringement of these patents or trademarks against us, we could be restricted or prohibited from selling certain aftermarket products, which could have an adverse effect on our business. We may be subject to costs and uncertainties of litigation as well as restrictions on our ability to sell aftermarket parts that replicate parts covered by those design patents or trademarks.

We collect and store certain personal information that our customers provide to purchase products or services, enroll in promotional programs, register on our web site, process payments, or otherwise communicate and interact with us. Collection and storage of this information comes with inherent risks.

We may share information about such persons with vendors that assist with certain aspects of our business. Security could be compromised and confidential customer or business information misappropriated. Loss of customer or business information could disrupt our operations, damage our reputation, and expose us to claims from customers, financial institutions, payment card associations and other persons, any of which could have an adverse effect on our business, financial condition and results of operations. In addition, compliance with tougher privacy and information

security laws and standards may result in significant expense due to increased investment in technology and the development of new operational processes.

Additionally, California and the European Union have in the past several years enacted new consumer privacy laws seeking to protect consumers' internet data privacy, and other jurisdictions may soon follow suit. These consumer privacy laws may apply to our business because we collect, use, and share information about our customers. While we plan to implement reasonable efforts to comply with these laws, these laws create legal risks for us. Despite our efforts to comply with consumer privacy laws, this area of the law is new and quickly evolving, therefore, we could fail to comply with all aspects of relevant laws despite reasonable efforts made to stay abreast of changing laws and best practices for compliance, and therefore we could be subject to fines, penalties or other liabilities and we may need to expend considerable resources on legal counsel, information technology systems, and operating resources to ensure we comply with these laws.

Increasing costs associated with information security - such as investment in technology, the costs of compliance with consumer protection laws and costs resulting from consumer fraud - could cause our business and results of operations to suffer materially.

There can be no assurance that advances in computer capabilities or other developments will prevent the compromise of our payment transaction processing and personal data storage systems.

If any such compromise of our security or the security of information residing with our business associates or third parties were to occur, we could be liable and it could have a material adverse effect on our reputation, operating results and financial condition.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties, disrupt our

operations and the services we provide to customers, and damage our reputation, and cause a loss of confidence in our products and services, which could adversely affect our business/operating margins, revenues and competitive position.

An intentional or unintentional disruption, failure, misappropriation or corruption of our network and information systems could severely affect our business.

In addition to possible aforementioned 'cyber attacks' and other malicious activity, other incidents could give rise to an information security breach, such as natural disasters, power outages, or by the theft, destruction, loss, misappropriation or release of confidential customer data or intellectual property by our own employees. Consequences of such incidents could include loss of sales.

Maintaining, extending and expanding our reputation and brand image are essential to our business success. We seek to maintain, extend, and expand our brand image through numerous marketing channels. Our success in maintaining, extending, and expanding our brand image depends on our ability to adapt to a rapidly changing media environment. We increasingly rely on social media and online advertising campaigns. The growing use of social and digital media increases the speed and extent that information or misinformation and opinions can be shared. Negative posts or comments about us, our brands or our products on social or digital media, whether or not valid, could seriously damage our brands and reputation.

Our business could be affected by currency fluctuations, capital and exchange controls, expropriation and other restrictive government actions, changes in intellectual property legal protections and remedies, trade regulations and procedures and actions affecting approval, production, pricing, and marketing of, our products, as well as by political unrest, unstable governments and legal systems and inter-governmental disputes.

Any of these changes could adversely affect our business and we believe these risks may be especially high as we expand to marketing in countries outside the US whose economic and legal systems are less stable.

Our major supplier relies on salvage permits and must conform to numerous regulatory requirements which poses risks.

Our parent company, ReInvent the Wheel, LLC, is a licensed salvage yard in Merlin, Oregon. We plan for

MBZ Parts to become the licensed entity and to assume the salvage operations in Merlin in the near future. Salvage operations must obtain licenses and permits from state and local governments to conduct their operations and these licenses and permits must be renewed from time to time. In addition, there are numerous regulations affecting these operations and failure to comply can result in fines. We may rely on other salvage yards for parts from time to time. There can be no assurance that future approvals of necessary licenses and permits will be granted to either our parent company or to our Company. In the event that ReInvent the Wheel fails to maintain necessary permits and licenses, we would lose a major supplier of parts and if MBZ Parts fails to obtain all necessary permits and licenses then our ability to implement our business plan will be significantly hindered for as long as we are unable to obtain those permits or licenses.

We will be leasing facilities, which is inherently risky compared to owning our own facilities.

We are currently looking for a facility to lease in southern California. We do not plan to raise enough capital to purchase a facility, however, leasing commercial property is inherently risky. We intend to seek legal counsel to advise us in negotiating a lease agreement, however, the real estate market in California fluctuates considerably and there can be no guarantees that we will find a facility to lease on favorable terms. To have the proper facilities we need for our operations, we may need to incur the costs of major tenant improvements on a facility that we lease for limited periods of time, which might not be cost efficient. There can be no guarantees that we will be able to afford to maintain our lease, which could make us vulnerable to liability. There can be no guarantees that we will not encounter other challenges associated with leasing property, such as conflicts with the landlord, hidden flaws in the building structure which cause disruptions to our operations, and other challenges associated with leasing property.

February 2023 Update: We are leasing a facility in San Bernardino, California and the costs of maintaining this lease are quite high in comparison to our revenues thus far. We are pursuing an arrangement with another business to share the facility so as to reduce our cost burden, however, sharing our facility with another business will entail some challenges and risks. Overall, accessing and maintaining facilities necessary for our inventory storage and sales in our region continues to be a challenge and to pose risks as described above.

Climate Change May Adversely Affect Our Operations

Climate change, including the impact of global warming, creates physical and financial risk. Physical risks from climate change include an increase in sea level and changes in weather conditions, such as an increase in changes in precipitation, droughts, heat waves, and extreme weather events. Recent severe wildfire events in California have caused intermittent poor air quality, loss of buildings and other structures to fire, and prompted evacuations. Such wildfire events are expected to occur more frequently due to climate change. These events, if they occur near our facilities, could create significant disruptions to our operations and to the economy overall, resulting in loss of revenue for our business. Increasing frequency and severity of wildfires may not be the only impact of climate change on our business. Sever weather events in other regions could impact our suppliers, which could impact us. Overall, climate change could have a material adverse effect on our business.

Climate Change Regulations May Adversely Impact our Business.

Legislation and regulation regarding climate change could incentivize use of electric vehicles and discourage or prohibit use of older vehicles such as the classic Mercedes cars whose parts our business sells. Therefore, climate and other environmental regulations could drastically reduce or eliminate demand for many of our products, causing our future revenues to be much less than projected. We cannot currently predict if and when such legislation or regulation might occur, nor the precise effect such legislation and regulation may have on our operations, but it could be significantly impact us.

Even without legislation or rules incentivizing electric vehicles, consumer trends favoring electric vehicles due to their lack of tailpipe emissions could impact demand for classic cars and their parts.

We handle toxic materials and environmental regulations impact our business.

We are subject to various federal and state environmental protection regulations governing vehicle emissions (which are affected by car parts), hazardous substances in our facilities, waste water, and other matters. California in particular has especially strict auto emissions standards among other environmental laws which impact the automotive industry nation-wide.

Should California, Oregon, or any jurisdiction in which we sell parts adopt stricter automobile emissions standards we may be further constrained as far as parts we are able to sell. Some of our parts inventory could substantially decline in value suddenly if stricter emission standards are enacted which eliminate or reduce the utility of some of our parts.

We are also required to obtain environmental permits from governmental authorities for certain of our operations. If we violate or fail to obtain or comply with these laws, regulations, or permits, we could be fined or otherwise sanctioned by regulators or lose our operating permits. We could also become liable if employees or other parties are improperly exposed to hazardous materials. We have an environmental management process designed to facilitate and support our compliance with these requirements; we cannot assure you, however, that we will at all times be in complete compliance with such requirements.

We have made and will continue to make capital and other expenditures relating to environmental matters. Although we presently do not expect to incur any capital or other expenditures relating to environmental controls or other environmental matters in amounts that would be material to us, we may be required to make such expenditures in the future.

Under certain environmental laws, we could be held responsible for all of the costs relating to any contamination at, or migration to or from, our own or our predecessors' past or present facilities and at independent waste disposal sites. These laws often impose liability even if the owner or operator did not know of, or was not responsible for, the release of such hazardous substances. Many of our facilities are located on or near properties with a history of industrial use that may have involved hazardous materials. As a result, some of our properties may be contaminated. Some environmental laws hold current or previous owners or operators of real property liable for the costs of cleaning up contamination. These environmental laws also impose liability on any person who disposes of, treats, or arranges for the disposal or treatment of hazardous substances, regardless of whether the affected site is owned or operated by such person, and at times can impose liability on companies deemed under law to be a successor to such person.

Customers or other third parties may also make claims against owners or operators of properties, or successors to such owners or operators, for personal injuries and property damage associated with releases of hazardous or toxic substances.

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 US Bank

Issue date 12/31/20

Amount $25,000.00

Outstanding principal plus interest $24,994.00 as of 02/23/23

Interest rate 6.0% per annum

Maturity date 01/01/24

Current with payments Yes

LOC Account

Loan

Lender Francis William Michel Jr

Issue date 04/25/21

Amount $80,000.00

Outstanding principal plus interest $80,000.00 as of 01/31/23

Interest rate 12.0% per annum

Maturity date 12/31/23

Current with payments Yes

LOC account

Loan

Lender Francis William Michel Jr

Issue date 05/19/21

Amount $40,000.00

Outstanding principal plus interest $40,000.00 as of 02/27/23

Interest rate 36.0% per annum

Maturity date 05/20/24

Current with payments Yes

LOC account

Loan

Lender Eliza Behlen

Issue date 06/29/21

Amount $31,562.00

Outstanding principal plus interest $34,299.00 as of 02/27/23

| Interest | 02/23/23 |
| --- | --- |
| Interest rate | 6.0% per annum |
| Maturity date | 06/25/29 |
| Current with payments | Yes |

# *Loan*

| Lender | SBA |
| --- | --- |
| Issue date | 01/31/22 |
| Amount | $100,100.00 |
| Outstanding principal plus interest | $98,636.00 as of 01/31/23 |
| Interest rate | 3.0% per annum |
| Maturity date | 12/25/52 |
| Current with payments | Yes |

*EIDL loan.*

# *Loan*

| Lender | Fred Behlen |
| --- | --- |
| Issue date | 12/26/22 |
| Amount | $30,000.00 |
| Outstanding principal plus interest | $30,160.00 as of 02/23/23 |
| Interest rate | 3.3% per annum |
| Maturity date | 04/01/23 |
| Current with payments | Yes |

# *Loan*

| Lender | Paypal |
| --- | --- |
| Issue date | 01/05/23 |
| Amount | $11,967.00 |
| Outstanding principal plus interest | $8,232.00 as of 02/23/23 |
| Interest rate | 16.0% per annum |
| Maturity date | 04/24/23 |
| Current with payments | Yes |

# *Loan*

| Lender | Stripe |
| --- | --- |
| Issue date | 01/05/23 |
| Amount | $13,052.00 |
| Outstanding principal plus interest | $12,979.00 as of 02/23/23 |
| Interest rate | 10.0% per annum |

**Maturity date** 02/28/24
**Current with payments** Yes

*Loan*

**Lender** ReInvent The Wheel
**Issue date** 02/19/23
**Amount** $100,000.00
**Outstanding principal plus interest** $79,608.00 as of 02/19/23
**Interest rate** 36.0% per annum
**Maturity date** 09/01/21
**Current with payments** Yes

*Flux LOC account with parent company*

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

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 1/2021 | Regulation D, Rule 506(c) | Common stock | $20,000 | General operations |
| 1/2021 | Regulation D, Rule 506(c) | Common stock | $166,000 | 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(a)(6) of the Securities Act during the preceding 12- month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:

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

☑ Yes
☐ No

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

| Name | Francis William Michel Jr |
| --- | --- |
| Amount Invested | $80,000.00 |
| Transaction type | Loan |
| Issue date | 04/25/21 |
| Outstanding principal plus interest | $80,000.00 as of 01/31/23 |
| Interest rate | 12.0% per annum |
| Maturity date | 12/31/23 |
| Current with payments | Yes |
| Relationship | Shareholder |

| Name | Francis William Michel Jr |
| --- | --- |
| Amount Invested | $40,000.00 |
| Transaction type | Loan |
| Issue date | 05/19/21 |
| Outstanding principal plus interest | $40,000.00 as of 02/27/23 |
| Interest rate | 36.0% per annum |
| Maturity date | 05/20/24 |
| Current with payments | Yes |
| Relationship | Shareholder |

| Name | Eliza Behlen |
| --- | --- |
| Amount Invested | $31,562.00 |
| Transaction type | Loan |
| Issue date | 06/29/21 |
| Outstanding principal plus interest | $34,299.00 as of 02/23/23 |
| Interest rate | 6.0% per annum |
| Maturity date | 06/25/29 |
| Current with payments | Yes |
| Relationship | Employee |

| Name | Rebecca Behlen |
| --- | --- |
| Amount Invested | $5,000.00 |
| Transaction type | Loan |
| Issue date | 12/05/21 |
| Outstanding principal plus | $0.00 as of |

| interest | 12/30/22 |
| --- | --- |
| Interest rate | 0.0% per annum |
| Maturity date | 03/07/22 |
| Relationship | Sibling of employee |

| Name | Eliza Behlen |
| --- | --- |
| Amount Invested | $9,000.00 |
| Transaction type | Loan |
| Issue date | 12/05/21 |
| Outstanding principal plus interest | $0.00 as of 12/30/22 |
| Interest rate | 0.0% per annum |
| Maturity date | 03/07/22 |
| Relationship | Employee |

| Name | Fred Behlen |
| --- | --- |
| Amount Invested | $35,000.00 |
| Transaction type | Loan |
| Issue date | 03/01/22 |
| Outstanding principal plus interest | $0.00 as of 08/23/22 |
| Interest rate | 0.0% per annum |
| Maturity date | 08/24/22 |
| Relationship | Parent of employee |

| Name | Fred Behlen |
| --- | --- |
| Amount Invested | $30,000.00 |
| Transaction type | Loan |
| Issue date | 12/26/22 |
| Outstanding principal plus interest | $30,160.00 as of 02/23/23 |
| Interest rate | 3.3% per annum |
| Maturity date | 04/01/23 |
| Current with payments | Yes |
| Relationship | Parent of company employee |

| Name | ReInvent The Wheel |
| --- | --- |
| Amount Invested | $100,000.00 |
| Transaction type | Loan |
| Issue date | 02/19/23 |
| Outstanding principal plus interest | $79,608.00 as of 02/19/23 |
| Interest rate | 36.0% per annum |

| Interest rate | 30.0% per annum |
| --- | --- |
| Maturity date | 09/01/21 |
| Current with payments | Yes |
| Relationship | Parent Company |

ReInvent The Wheel LLC (“RTW”) owns the majority of shares in MBZ Parts Inc (“MBZ”). Currently, MBZ owes RTW debt and is making irregular payments and accumulating interest. MBZ subleases a portion of the property at 500 Peach St in Merlin, OR from RTW. Currently, MBZ has a contract for technical mechanic services provided by RTW in Merlin.

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

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

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

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

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history?

☐ 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

MBZ Parts is an online-based seller of Classic Mercedes parts.

## Milestones

MBZ Parts Inc. was incorporated in the State of California in October 2020.

Since then, we have:

- Strong Global Demand, Large International Market - $800M for parts up to 1993 alone
- Stable Industry in Uncertain Economic Times - Auto Parts Sales Grew During Lockdown
- Passionate Customer Base - 13,000+ Newsletter Subscribers
- Secure & Diverse Supply Chain - Already own $2M retail worth of inventory
- Few Industry Competitors - Many are aging out of the industry
- Data hurdles limit competition and growth; we're ready to implement our Tech Solution
- Parent company has been in business for 10 years

## Historical Results of Operations

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

- *Revenues & Gross Margin.* For the period ended December 31, 2021, the Company had revenues of $21,646 compared to the year ended December 31, 2020, when the Company had revenues of $0. Our gross margin was 35.28% in fiscal year 2021.
- *Assets.* As of December 31, 2021, the Company had total assets of $50,947, including $12,205 in cash. As of December 31, 2020, the Company had $15,000 in total assets, including $0 in cash.

- *Net Loss*. The Company has had net losses of $419,191 and net losses of $23,140 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.

- *Liabilities*. The Company’s liabilities totaled $393,277 for the fiscal year ended December 31, 2021 and $38,140 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 $480,681 in debt and $186,000 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 9 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 3 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

MBZ Parts Inc. cash in hand is $33,486, as of February 2023. Over the last three months, revenues have averaged $31,000/month, cost of goods sold has averaged $6,266/month, and operational expenses have averaged $38,453/month, for an average burn rate of $13,719 per month. Our intent is to be profitable in 4 months.

Since the date our financials cover, we sold a significant

portion of our used parts inventory collection via wholesale purchases in 2022, though a great deal of inventory remains. We have downsized our operations in San Bernardino so that we can sublease out the majority of our warehouse space. We do not have a contract yet, but have multiple interested parties. We have completed the purchase of assets and operations from ReInvent The Wheel LLC, with final effective date of 1/9/23. (MBZ purchased all parts-related assets and operations from RTW. RTW still exists and operates a repair shop in Merlin, but has no parts-related operations). We are now producing retail-based revenue.

We expect revenue over the next three months to be a slight increase over the previous 3 months, to around $70k, and to around $90k in the next 6 months, as we have completed wholesale sales but now have all retail sales under our umbrella. We anticipate significant revenue growth this coming spring, as we continue to list more products into our digital catalog, and as our notoriety as a company grows. Once the warehouse sublease is underway, our expenses will reduce significantly, though we plan to hire additional team members that will close that gap within 4-6 months. We expect expenses during this timeframe to average 55k/month in 3 months, and to $65k/month in 6 months.

MBZ Parts roughly broke even in 2022, but may have had a slight profit (books are not yet finalized).

Currently our operations are not profitable as our rent expenses are too high. We expect to be profitable within 3-4 months, after we have secured a sublessee and our revenue has increased slightly. Additional capital will allow this to happen sooner, as our interest expenses are currently high.

We have received some private equity investment prior to our Wefunder raise, and we are accessing loans for the remainder of the capital we need to get operational.

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

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

such as lines of credit or required contributions by shareholders. References to the issuer in this Question 28 and these instructions refer to the issuer and its predecessors, if any.

## FINANCIAL INFORMATION

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

Refer to Appendix C, Financial Statements

I, Sheila P. Heaney, certify that:

(1) the financial statements of MBZ Parts Inc. included in this Form are true and complete in all material respects ; and

(2) the financial information of MBZ Parts Inc. included in this Form reflects accurately the information reported on the tax return for MBZ Parts Inc. filed for the most recently completed fiscal year.

Sheila P. Heaney
Owner

## STAKEHOLDER ELIGIBILITY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

☐ Yes ☑ No

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

☐ Yes ☑ No

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

☐ Yes ☑ No

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

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

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

# OTHER MATERIAL INFORMATION

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

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

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

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

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

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

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

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

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

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

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

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

# ONGOING REPORTING

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

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

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

http://www.mbzparts.com/invest

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

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

# APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird

Early Bird MBZ Subscription Agreement

SPV Subscription Agreement

MBZ Subscription Agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Eliza Behlen

Fred Watts

Sheila P. Heaney

Appendix E: Supporting Documents

ttw\_communications\_82866\_205918.pdf  
ttw\_communications\_82866\_205916.pdf  
ttw\_communications\_82866\_205914.pdf  
ttw\_communications\_82866\_205916.pdf  
ttw\_communications\_82866\_205925.pdf  
ttw\_communications\_82866\_205925.pdf  
Articles\_of\_Incorporation\_-\_MBZ\_Parts.pdf  
Bylaws\_Final\_signed.pdf  
RTW\_and\_MBZ\_Explained.pdf  
Risk\_Factors.pdf---

# Signatures

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

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird

Early Bird MBZ Subscription Agreement

SPV Subscription Agreement

MBZ Subscription Agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Eliza Behlen

Fred Watts

Sheila P. Heaney

Appendix E: Supporting Documents

ttw\_communications\_82866\_205918.pdf  
ttw\_communications\_82866\_205916.pdf

ttw_communications_82866_205914.pdf
ttw_communications_82866_205916.pdf
ttw_communications_82866_205925.pdf
ttw_communications_82866_205925.pdf
Articles_of_Incorporation_-_MBZ_Parts.pdf
Bylaws_Final_signed.pdf
RTW_and_MBZ_Explained.pdf
Risk_Factors.pdf

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

MBZ Parts Inc.

By

Sheila Heaney

CEO & Founder

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.

eliza s behlen

Inventory & Supply Chain Manager
2/28/2023

Sheila Heaney

CEO & Founder
2/28/2023

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

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

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

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

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

■ PITCH VIDEO ■ INVESTOR PANEL

INVEST IN MBZ PARTS

## Transforming the Classic Mercedes Parts Industry

LEAD INVESTOR

**Bex Behlen**

I am excited to invest in MBZ Parts because upon hearing the pitch I realized that practical and ambitious were not mutually exclusive concepts. Sheila's analysis of the market, assessment of capacity, and strategy for scale blew me away by how real it feels. Sheila's experience and connections in the Classic Mercedes niche uniquely position her to embark on this project shrewdly and confidently. There is a gaping hole in this market and, given the investment, I'm confident Sheila's strategy will transform the way vintage auto parts are bought, sold and resold in a major way.

Invested $1,000 this round

mbzparts.com

San Bernardino CA

Female Founder

B2B

Ecommerce

Consumer Goods

Retail

# Highlights

1 Strong Global Demand, Large International Market - $800M for parts up to 1993 alone
2 Stable Industry in Uncertain Economic Times - Auto Parts Sales Grew During Lockdown
3 Passionate Customer Base - 13,000+ Newsletter Subscribers
4 Secure & Diverse Supply Chain - Already own $2M retail worth of inventory
5 Few Industry Competitors - Many are aging out of the industry
6 Data hurdles limit competition and growth; we're ready to implement our Tech Solution
7 Parent company has been in business for 10 years
8 Founder has Extensive Experience - 22 years Ecommerce & 18 years business mgmt

# Our Team

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

**Sheila Heaney** CEO & Founder

23 years ecommerce experience. 19 years experience of business ownership & management. 15 years hands-on with Classic Mercedes.

Classic Mercedes-Benz vehicles are incredible feats of engineering that have preserved beautifully. They appeal across cultural and age lines. The parts are hard to shop for and many competitors are aging out of the industry.

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

### **Z Behlen** Inventory & Supply Chain Manager

6 years with the company. Vast knowledge of our products. 8 years supply chain mgmt exp.

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

### **Fred Watts** Consulting Technician

9 years with the company. Large amount of technical knowledge about Classic MB drivetrains & other systems

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

### **Elizabeth Gallucci** Salvage Operations Manager

3 years with the company. 5 years prior mgmt exp. Grew up with Classic MB, in a car family

## The MBZ Parts Story

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

## OUR STORY

MBZ Parts specializes in Classic Mercedes Parts. We sell New, Used & Rebuilt Parts for all Classic Mercedes-Benz models. Our modern Ecommerce portal allows customers to browse by chassis using linked images below, the multi-level browser above, or they can search for the part they're looking for.

We have thousands of OEM and aftermarket parts for classic Mercedes from a large network of salvage and new parts suppliers all over the world.

For classic Mercedes-Benz owners, access to parts means the difference between

a rusting vehicle under a tarp and a gleaming vintage machine cruising down a roadway. Without parts, these extraordinary vehicles are consigned to history.

MBZ Parts is transforming the classic Mercedes-Benz parts industry. Fueled by our custom digital catalog, $2M worth of parts, and years of hands-on experience with classic Mercedes vehicles, we’re pushing closer to our goal to be #1 in our niche in the US.

## OUR CUSTOMERS

For our customers, their classic Mercedes models are woven into the fabric of their lives, playing a part in weddings, graduations, reunions, parades, car shows, and so much more.

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

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

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

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

"Once more the folks at MBZ Parts have come through for me with a very necessary part, a part that if I was unable to get for my Turbo Diesel W126, of which I am the original owner. MBZ Parts has supplied me with other necessary parts and they really are experts at providing exactly what I need. I'm keeping my almost 40 year-old S-Class, forever, and MBZ Parts will continue to be my partner for parts always as well."

-Jay Shaw

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

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

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

MBZ PARTS

Our customers come from all over the world, from all walks of life, from every generation. One thing that binds them together is their love for their classic Mercedes-Benz vehicles and their passion for restoring them. Many of our customers plan to hand their classic models down to future generations; others have inherited their cars from loved ones, cars that are imbued with tremendous emotional significance.

At MBZ Parts, our easy-to-use website, our huge inventory, and our exceptional customer service backed by unparalleled product knowledge ensures that our customers can continue restoring their treasured vehicles for decades to come.

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

The classic Mercedes-Benz parts industry has, prior to the founding of MBZ Parts, been a fragmented field that struggled to keep up with 21st-century technology. Many parts purveyors specialize in certain models, or they only provide parts for a few model years. And without a functional eCommerce site

provide parts for a few model years. And without a functional eCommerce site, even those limited parts inventories were inaccessible to all but local customers.

With our website providing access to parts from all vintage Mercedes-Benz models from the '50s through the early '90s, MBZ Parts makes it easy for owners to continue restoring their vehicles. And those owners are committed to keeping their vehicles in cruising condition. Global annual sales of classic Mercedes parts top $800 million.

Our business is growing rapidly, and we expect it to explode in the coming months. Our inventory is vast, we have a large and passionate customer base, and our team has a deep knowledge and understanding. But our secret sauce - what really sets us apart from every competitor - is our modern, easy-to-use eCommerce site, powered by our custom digital catalog.

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

While others in our industry struggle to embrace technology, we have leaped ahead, providing customers with an unparalleled online shopping experience. Our WeFunder campaign will help us put the finishing touches on our site as well as support an expansion of our digital and physical infrastructure.

OUR COMPETITION

## Specialty Suppliers

- New/Rebuilt interior & Drivetrain Parts
- Poor eCommerce & B2C exposure

## High Value Vehicle Specialists

- Only offer parts for SLs and S-Class
- minimal used parts inventory

## Mercedes-Benz

- Franchise model limits parts resale potential
- No centralized eCommerce
- Vehicle fitment data dependent on small number of specialists

## Large Euro Ecommerce

- Minimal niche knowledge
- New parts only

## Direct

- Few resellers offer used & new parts for all classic models
- Adsitco: Indiana location has minimal access to used parts inventory or passionate customers
- eBay: Inconsistent knowledge and product quality among sellers
- New parts only

Every member of our leadership team is a car lover and has an intense appreciation for the engineering and aesthetic behind classic Mercedes-Benz vehicles. This appreciation has only deepened through our experience with the individual parts themselves, as the elegance and quality are apparent in every detail. We've dedicated ourselves to making sure that these cars can be preserved and appreciated for decades to come.

## Downloads

Oakland Inventory Video Tour.MOV

RTW and MBZ Explained.pdf

Articles of Incorporation - MBZ Parts.pdf

Bylaws Final signed.pdf

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

THE SECURITIES ARE BEING OFFERED PURSUANT TO SECTION 4(A)(6) AND REGULATION CROWDFUNDING OF THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. NO FEDERAL OR STATE SECURITIES ADMINISTRATOR HAS REVIEWED OR PASSED ON THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS FOR THESE SECURITIES. THERE ARE SIGNIFICANT RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN AND NO RESALE MARKET MAY BE AVAILABLE AFTER RESTRICTIONS EXPIRE. THE PURCHASE OF THESE 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 WITHOUT A CHANGE IN THEIR LIFESTYLE.

# MBZ Parts Investment Agreement

This investment agreement ("Agreement") is entered into on [EFFECTIVE DATE] between the following parties: MBZ Parts, a California corporation ("Company"), and [Investor Name] ("Investor").

# 1. OFFERING BACKGROUND AND TIMELINE.

a. **Crowdfunding Campaign.** Company is conducting an investment crowdfunding campaign through Wefunder, a crowdfunding intermediary whose website is wefunder.com (the "Portal"). The Company is conducting an offering (the "Offering") under Section 4(a)(6) of the Act and Regulation Crowdfunding promulgated thereunder. This Offering is made pursuant to the Form C of the Company that has been filed by the Company with the Securities and Exchange Commission, among other materials related to the Offering made available on the Portal, which may be amended from time to time.

b. **Share Price.** The Company is offering preferred shares ("Shares") at a purchase price of $2.40 per share for the first $79,999.20 invested by subscribers through the Portal, and thereafter at a purchase price of $2.50 per share, however, Investor will become an investor in Company indirectly through purchasing an interest in an LLC ("SPV") formed to hold the Shares in Company for the benefit of Investor. The sole purpose of the SPV is to hold Shares for subscribers to the Offering. Investor will not own any Shares in the Company directly, but rather, Investor will own an interest in the SPV and the SPV will be a shareholder in the Company. Investor's investment in said SPV will herein be referred to as the "Securities."

c. **Investment deadline.** The Company has set a deadline for investment pursuant

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 1 of 10

to this Offering on the Portal (“*Offering Deadline*”) and such deadline may be extended in the sole discretion of the Company.

- d. **Closing.** Subject to the conditions described in the subsequent paragraph, the closing of the sale and purchase of the Securities pursuant to this Agreement (the “*Closing*”) shall take place through the Portal within five (5) business days after the investment deadline (“*Offering Deadline*”) as posted on the Portal for the Company’s Offering (the “*Closing Date*”).
- e. **Closing Conditions.** The Closing is conditioned upon satisfaction of all the following conditions:
  - i. prior to the Offering Deadline, the Company shall have received aggregate subscriptions for Securities in an aggregate investment amount of at least the Target Offering Amount (as defined in paragraph (g) below);
  - ii. at the time of the Closing, the Company shall have received into the escrow account established with the Portal and the escrow agent in cleared funds, and is accepting, subscriptions for Securities having an aggregate investment amount of at least the Target Offering Amount; and
  - iii. the representations and warranties of the Company and of the undersigned contained in this Agreement 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 as of the Closing.
- f. **Termination of Offering.** The undersigned understands that the Company may terminate the Offering at any time for any reason until the Closing of the Offering. The undersigned further understands that during and following termination of the Offering, the Company may undertake offerings of other securities, which may or may not be on terms more favorable to an investor than the terms of this Offering.
- g. **Minimums and Maximums.** The minimum amount of money the Company needs to raise on the Portal in order to successfully Close the Offering is \$50,001.60 (“*Target Offering Amount*”). The maximum amount of investment the Company will accept during this Offering is \$299,999.20 (“*Maximum Offering Amount*”). If the sum of the investment commitments does not equal or exceed the Target Offering Amount at the Offering Deadline, then either (i) the Company will extend the Offering Deadline or (ii) no Securities will be sold in the Offering, investment commitments will be cancelled, and committed funds will be returned to Investor. If the Offering is oversubscribed above the Target Offering Amount then the Company will sell Securities on a basis to be determined by the Company. The Company reserves the right to Close the offering anytime and for any reason after reaching the Target Offering Amount and prior to reaching the

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 2 of 10

Maximum Offering Amount. The Company may also continue the Offering after Closing of the sale of Securities purchased pursuant to this Agreement, but in any circumstance, the Company will not sell securities in excess of the Maximum Offering Amount in the course of this Offering. Per investor, there is a $200 minimum investment and a maximum investment limits as set by law based on investor's financial condition.

h. Cancellation by Investor. Investor may cancel an investment commitment until 48 hours prior to the Offering Deadline. The Portal will notify Investor when the Target Offering Amount has been met.
i. Early Closing. If an issuer reaches the Target Offering Amount prior to the Offering Deadline, 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).
j. Release of Funds to Company. If 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 and the Investor will receive Securities in exchange for his or her investment.
k. Changes in Offering. Company reserves the right to change the terms of the Offering prior to Closing. Should the terms of the Offering change, the Offering Deadline will be extended if practical, and Investor will have the opportunity to cancel their investment or reconfirm their investment in accordance with the changes.

# 2. SECURITIES PURCHASED

a. Offering Documents. The undersigned, has received, read, and understood the offering documents, including the components listed in this section (the "Offering Documents") as presented on Wefunder.com pursuant to Company's Offering.

i. MBZ Parts Amended and Restated Articles of Incorporation
ii. MBZ Parts Bylaws
iii. MBZ Parts financial statements
iv. SEC Form C and accompanying materials posted on the Platform, including the document titled Risk Factors
v. This Investment Agreement

b. Investor hereby applies to become an investor in the Securities.

c. This Agreement shall become effective upon Closing, and once Company has received payment in full from Investor.

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 3 of 10

d. This Agreement is not transferable or assignable by Investor without consent of Company, which consent Company may withhold for any reason.
e. This Agreement, on acceptance by Company, shall be binding on the heirs, executors, administrators, successors, and assigns of Investor.
f. Restrictions on Transfer. The Securities issued in this transaction are subject to 17 C.F.R. § 227.501 and as such may not be transferred by any purchaser of these securities during the one-year period beginning when the Securities were issued to Investor, unless such securities are transferred to any of the following:
  i. Company,
  ii. an accredited investor,
  iii. as part of an offering registered with the Securities and Exchange Commission; or
  iv. to a member of the family of Investor or the equivalent, to a trust controlled by Investor, to a trust created for the benefit of a member of the family of Investor or the equivalent, or in connection with the death or divorce of Investor or other similar circumstance.

3. INVESTOR'S REPRESENTATIONS AND WARRANTIES. Investor represents and warrants as follows:

a. This Agreement has been duly executed and delivered by Investor and constitutes the legal, valid, binding, and enforceable obligation of Investor.
b. Investor represents that Investor has full power and authority to enter into this Agreement.
c. Investor understands that Investor is purchasing an interest in SPV which will hold Shares in the Company on Investor's behalf. The sole purpose of the SPV is to hold Shares in the Company on behalf of investors to lessen the burden of the Company in managing a large number of small shareholders. Therefore, Investors does not hold all rights ordinarily held by shareholders of a corporation pursuant to the corporation laws of the State of California (such as rights to attend an annual shareholders' meeting, among other rights). Investor understands that the Company has appointed a "Lead Investor" to represent investors to the Company and that Investor may be bound by decisions made by that Lead Investor regarding shareholder voting and other corporate matters.
d. Investor acknowledges and understands that Company is relying on exemptions from registration or qualification of the securities offered herein, therefore, the Offering Documents have not been reviewed or approved by any securities regulators.
e. The Company will pay the Portal a commission equal to 7.5% of gross monies

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 4 of 10

raised in the Offering. Otherwise, no broker, finder, or investment banker is entitled to any fee or commission in connection with the transactions contemplates hereby based on arrangements made by or on Investor's behalf. This provision does not prohibit the Company from engaging a broker to assist in selling the Securities, however, any such arrangement will be fully disclosed to Investor.

f. Investor has read and is familiar with this Agreement and the Offering Documents. Further, Investor has carefully reviewed and understands the risks of, and other considerations relating to, a purchase of the stock in the Company. Investor recognizes that an investment in the Company's business is highly speculative and involves a high degree of risk, including those risks described in the Offering Documents under the heading Risk Factors. Further, Investor acknowledges that while Company has attempted to thoroughly describe all foreseeable risks related to this investment in the statement of Risk Factors provided to Investor, that Company may not have been able to fully anticipate all possible risks and Company is relying in part of Investor's good judgment or Investor's reliance on professional advisors in evaluating the merits and risks of this investment.

g. Investor understands that this is a highly illiquid investment and Investor represents that he/she/they/it has adequate means of providing for his/her/their/its current needs and personal contingencies, and could afford to lose the entire amount of this investment. Further, Investor understands that there are no guarantees of financial return on investment in this offering and that Investor is risking the loss of the entire investment made pursuant to this Agreement.

h. Including the amount set forth on the signature page hereto, in the past 12-month period, the undersigned has not exceeded the investment limit as set forth in Rule 100(a)(2) of Regulation Crowdfunding.

i. Investor understands that Company will use and rely upon all of the representations, warranties, and information provided herein.

j. Investor believes he/she/they/it have had sufficient opportunity to ask questions of Company and to receive all material information necessary for making an informed investment decision with regards to purchase of Securities under this Agreement. Investor has sufficient knowledge, skill, and experience in business and finance to evaluate the merits of this investment.

k. Investor is not relying on the Company nor any of its officers, directors, or shareholders for independent legal, accounting financial, or tax advice in connection with Investor's evaluation of the risks and merits of investment, nor the consequences and risks of the investment. Furthermore, Investor has had the opportunity to seek independent legal, financial, and tax advice regarding this

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 5 of 10

investment.

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

m. Investor is purchasing this investment for his/her/their/its own account and not with intention of resale. The undersigned understands that the Company has no obligation or intention to register any of the Securities or Shares, or to take action so as to permit sales pursuant to the Securities Act. Even if the Securities or Shares become freely transferable, a secondary market in the Securities or Shares may not develop. Consequently, the undersigned understands that the undersigned must bear the economic risks of the investment in the Securities for an indefinite period of time.

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

o. The undersigned 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 Agreement shall thereafter have no force or effect and the Company shall return any previously paid subscription price of the Securities, without interest thereon, to the undersigned.

4. **COMPANY REPRESENTATIONS.** Company represents and warrants as follows:

a. **Corporate Power.** The Company has been duly incorporated as a corporation under the laws of the State of California.

b. **Enforceability.** This Agreement, when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except (a) as

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 6 of 10

limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, or (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

c. **Valid Issuance.** The Shares, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement and the Form C, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer arising under this Agreement, the Amended and Restated Articles of Incorporation and Bylaws of the Company, or under applicable state and federal securities laws and liens or encumbrances created by or imposed by a subscriber.

d. **No Conflict.** The execution, delivery and performance of and compliance with this Agreement and the issuance of the Shares will not result in any violation of, or conflict with, or constitute a default under, the Company's Amended and Restated Articles of Incorporation and Bylaws as amended, and will not result in any violation of, or conflict with, or constitute a default under, any agreements to which the Company is a party or by which it is bound, or any statute, rule or regulation, or any decree of any court or governmental agency or body having jurisdiction over the Company, except for such violations, conflicts, or defaults which would not individually or in the aggregate, have a material adverse effect on the business, assets, properties, financial condition or results of operations of the Company.

# 5. **MISCELLANEOUS PROVISIONS.**

a. **Choice of law.** This Agreement shall be construed in accordance with and governed by the laws of the State of California. With respect to any legal action or proceeding related to this Agreement or to any offers and sales of stock in the Company, parties agree to submit to the jurisdiction of the state and federal courts having jurisdiction over the city and county where Company's principal office is located.

b. **Mediation.** Should any legal dispute arise between parties pertaining to this Agreement, parties shall submit that dispute to mediation by a mediator experienced in business law disputes, agreed upon by all parties, before any legal proceeding in court or arbitration may be initiated. The parties will share equally in the costs of mediation. The mediation shall continue until the parties have resolved their dispute, until the parties have mutually agreed that a resolution by mediation is not possible, or until a finding by the mediator that a resolution by mediation is not possible.

c. **Indemnification.** The undersigned agrees to indemnify and hold harmless the Company and its directors, officers and agents (including legal counsel) from any

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 7 of 10

and all damages, losses, costs and expenses (including reasonable attorneys' fees) that they, or any of them, may incur by reason of the undersigned's failure, or alleged failure, to fulfill any of the terms and conditions of this subscription or by reason of the undersigned's breach of any of the undersigned's representations and warranties contained herein.

- d. **Entire Agreement.** This Agreement represents the entire agreement between the parties with respect to the purchase of stock by Investor and supersedes and replaces any and all prior written or oral agreements regarding the subject matter of this Agreement.
- e. **Consent to Email Notices.** By signing this Agreement, Investor consents to electronic notices for all purposes pertaining to Investor's business dealings with MBZ Parts and the SPV, including notices pursuant to this Agreement, among other things. SPV may withdraw its consent to electronic communication at any time upon written notice to the corporation directed to the Secretary or CEO of the corporation via email or US mail. Investor may not withdraw consent to electronic communication except as prescribed by any applicable law. If any party's email or mailing address changes, it is that party's responsibility to notice the others.
- f. **Waiver.** Either party's failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, nor prevent the party from thereafter enforcing any other provision of this Agreement. The rights granted both parties hereunder are cumulative and shall not constitute a waiver of either party's right to assert any other legal remedy available to it.
- g. **Severability.** Should any provision of this Agreement be found to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable to the greatest extent permitted by law.
- h. **Amendment of Agreement.** This Agreement may only be amended by a written instrument signed by all parties.
- i. **Counterparts.** This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
- j. **Electronic Execution and Delivery.** A digital reproduction, portable document format (\*.pdf\*) or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by electronic signature (e.g. DocuSign or similar services), electronic mail or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective for all purposes.

MBZ PARTS INVESTMENT AGREEMENT for Wefunder campaign Page 8 of 10

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

Number of Shares: [SHARES]

Aggregate Purchase Price: $[AMOUNT]

COMPANY:

MBZ Parts Inc.

Founder Signature

Name: [FOUNDER_NAME]

Title: [FOUNDER_TITLE]

Read and Approved (For IRA Use Only):

SUBSCRIBER:

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

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

# **MBZ Parts I (THE "SPV"),**

a series of Wefunder SPV, LLC, a Delaware limited liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

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

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

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

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

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

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

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

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

# 6. Key Risk Factors

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

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

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

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

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

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

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

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

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

# 7. Compliance With Anti-Money Laundering Laws.

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

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

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

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

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

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

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

# 8. Regulatory Provisions

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

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

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

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

# 9. Miscellaneous Provisions

# 9.1. Indemnification

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

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

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

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

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

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

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

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

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

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

# 9.5. Confidentiality

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV

MBZ Parts I, as series of Wefunder SPV, LLC
By: Wefunder Admin, LLC, its Manager

By: Founder Signature

Date:

Name: Nicholas Tommarello

Title: Chief Executive Officer

Investor

[INVESTOR NAME]

By: Investor Signature

Date:

CONTACT INFORMATION:

Name: [INVESTOR NAME]

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF MBZ
Parts Inc. SECURITIES BY MBZ Parts I, A SERIES OF
WEFUNDER SPV, LLC, A DELAWARE LIMITED
LIABILITY COMPANY

**Type of Security:** Priced Round

**Terms** $2.50 per share and a $2.94M 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%3D0001846165&first=2016

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

# MBZ Parts I EB (THE "SPV"),

a series of Wefunder SPV, LLC, a Delaware limited

liability company (the "LLC")

# Subscription Agreement

[INVESTMENT AMOUNT]

[INVESTMENT DATE]

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

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

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

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

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

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

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

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

# 6. Key Risk Factors

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

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

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

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

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

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

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

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

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

# 7. Compliance With Anti-Money Laundering Laws.

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

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

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

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

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

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

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

# 8. Regulatory Provisions

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

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

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

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

# 9. Miscellaneous Provisions

# 9.1. Indemnification

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

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

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

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

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

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

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

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

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

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

# 9.5. Confidentiality

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV

MBZ Parts I EB, as series of Wefunder SPV, LLC
By: Wefunder Admin, LLC, its Manager

By: Founder Signature

Date:

Name: Nicholas Tommarello

Title: Chief Executive Officer

Investor

[INVESTOR NAME]

By: Investor Signature

Date:

CONTACT INFORMATION:

Name: [INVESTOR NAME]

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF MBZ
Parts Inc. SECURITIES BY MBZ Parts I, E.B. A SERIES
OF WEFUNDER SPV, LLC, A DELAWARE LIMITED
LIABILITY COMPANY

**Type of Security:** Priced Round

**Terms** $2.40 per share and a $2.82M 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%3D0001846165&first=2016

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

**MBZ Parts, Inc.** (the “Company”) a California Corporation

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

Years ended December 31, 2020 & 2021

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

## INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To Management MBZ Parts, Inc.

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

### Management's Responsibility for the Financial Statements

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

### Accountant's Responsibility

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

### Accountant's Conclusion

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

### Going Concern

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

Vince Mongio, CPA, CIA, CFE, MACC

*Vincenzo Mongio*

# **Statement of Financial Position**

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 12,205 | - |
| Accounts Receivable | 13,232 | - |
| Other | 9,877 | - |
| Total Current Assets | 35,314 | - |
| Non-current Assets |  |  |
| Fixtures, net of Accumulated Depreciation | 6,340 | - |
| Security Deposits | 9,293 | 15,000 |
| Total Non-Current Assets | 15,633 | 15,000 |
| TOTAL ASSETS | 50,947 | 15,000 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Accounts Payable | 110,162 | - |
| Line of Credit - Related Party | 120,000 | 38,140 |
| Line of Credit | 24,057 | - |
| Short Term Debt - Related Party | 67,582 | - |
| Accrued Interest - Related Parties | 39,488 | - |
| Other Liabilities | 427 | - |
| Total Current Liabilities | 361,715 | 38,140 |
| Long-term Liabilities |  |  |
| Notes Payable - Related Party | 31,562 | - |
| Total Long-Term Liabilities | 31,562 | - |
| TOTAL LIABILITIES | 393,278 | 38,140 |
| EQUITY |  |  |
| Common Stock | 186,000 | - |
| Stock Subscription Receivable | (86,000) | - |
| Accumulated Deficit | (442,331) | (23,140) |
| Total Equity | (342,331) | (23,140) |
| TOTAL LIABILITIES AND EQUITY | 50,947 | 15,000 |

### Statement of Operations

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenue | 21,646 | - |
| Cost of Revenue | 14,010 | - |
| Gross Profit | 7,636 | - |
| Operating Expenses |  |  |
| Advertising and Marketing | 25,714 | - |
| General and Administrative | 188,231 | 3,140 |
| Rent and Lease | 169,073 | 20,000 |
| Depreciation | 760 | - |
| Total Operating Expenses | 383,778 | 23,140 |
| Operating Income (loss) | (376,142) | (23,140) |
| Other Income |  |  |
| Other | 15,000 | - |
| Total Other Income | 15,000 | - |
| Other Expense |  |  |
| Interest Expense - Related Parties | 39,488 | - |
| Interest Expense | 18,561 | - |
| Total Other Expense | 58,049 | - |
| Earnings Before Income Taxes | (419,191) | (23,140) |
| Provision for Income Tax Expense/(Benefit) | - | - |
| Net Income (loss) | (419,191) | (23,140) |

### Statement of Changes in Shareholder Equity

|  | Common Stock |  | Subscription Receivable | APIC | Accumulated Deficit | Total Shareholder Equity |
| --- | --- | --- | --- | --- | --- | --- |
|  | # of Shares Amount | $ Amount |  |  |  |  |
| Beginning Balance at 10/13/2020 (Inception) | - | - | - | - | - | - |
| Net Income (Loss) | - | - | - | - | (23,140) | (23,140) |
| Ending Balance 12/31/2020 | - | - | - | - | (23,140) | (23,140) |
| Issuance of Common Stock | 824,375 | 186,000 | (86,000) | - | - | 100,000 |
| Additional Paid in Capital | - | - | - | - | - | - |
| Net Income (Loss) | - | - | - | - | (419,191) | (419,191) |
| Ending Balance 12/31/2021 | 824,375 | 186,000 | (86,000) | - | (442,331) | (342,331) |

# **Statement of Cash Flows**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | (419,191) | (23,140) |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Depreciation | 760 | - |
| Accounts Payable and Accrued Expenses | 110,162 | - |
| Inventory | - | - |
| Accounts Receivable | (13,232) | - |
| Accrued Interest - Related Parties | 39,488 | - |
| Other | (9,450) | - |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | 127,728 | - |
| Net Cash provided by (used in) Operating Activities | (291,463) | (23,140) |
| INVESTING ACTIVITIES |  |  |
| Furniture & Fixtures | (7,100) | - |
| Security Deposit | 5,707 | (15,000) |
| Net Cash provided by (used by) Investing Activities | (1,393) | (15,000) |
| FINANCING ACTIVITIES |  |  |
| Line of Credit - Related Party | 81,860 | 38,140 |
| Line of Credit | 24,057 | - |
| Notes Payable - Related Party | 99,144 | - |
| Stock Subscription Receivable | (86,000) | - |
| Issuance of Common Stock | 186,000 | - |
| Net Cash provided by (used in) Financing Activities | 305,061 | 38,140 |
| Cash at the beginning of period | - | - |
| Net Cash increase (decrease) for period | 12,205 | - |
| Cash at end of period | 12,205 | - |

# MBZ Parts, Inc.

# Notes to the Unaudited Financial Statements

# December 31st, 2021

# SUSD

# NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES

MBZ Parts, Inc (“the Company”) was formed in California on October 13th, 2020. The Company earns revenue via the sale of auto parts.

The Company will conduct a crowdfunding campaign under regulation CF in 2023 to raise operating capital.

# NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# Basis of Presentation

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

# Use of Estimates and Assumptions

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

# Cash and Cash Equivalents

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

# Fair Value of Financial Instruments

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

These tiers include:

Level 1: defined as observable inputs such as quoted prices in active markets;

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

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

# Concentrations of Credit Risks

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

## Revenue Recognition

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

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

The Company recognizes revenue when it satisfies its obligation by transferring control of the good or service to the customer. A performance obligation is satisfied over time if one of the following criteria are met:

- a. the customer simultaneously receives and consumes the benefits as the entity performs;
- b. the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or
- c. the entity’s performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date.

The Company’s performance obligation is the delivery of products. Revenue is recognized at the time of shipping.

## Property and Equipment

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

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

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

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Disposals | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- | --- |
| Fixtures | 7 | 7,100 | (760) | - | 6,340 |
| Grand Total | - | 7,100 | (760) | - | 6,340 |

## Accounts Receivable

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

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

#### Advertising Costs

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

#### General and Administrative

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

#### Rent and Lease

The Company leases its warehouse space under a 3-year operating lease. The current lease term ends April 30$^{th}$, 2024. The lease provides the Company with the right to two optional 3-year extensions and is cancelable upon three months written notice. The lease required a security deposit of $9,293.

| Year Ending April 30th, | Payment |
| --- | --- |
| 2022 | 9,022 |
| 2023 | 9,293 |
| 2024 | 9,572 |
| 2025 | 9,859 |
| 2026 | 10,155 |
| 2027 | 10,460 |
| 2028 | 10,774 |
| 2029 | 11,098 |

#### Equity Based Compensation

The Company did not have any equity-based compensation as of December 31$^{st}$, 2021.

#### Income Taxes

The Company is subject to corporate income and state income taxes in the state it does business. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine 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, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company

does not have any uncertain tax provisions. The Company’s primary tax jurisdictions are the United States and California. The Company’s primary deferred tax assets are its net operating loss (NOL) carryforwards which approximates its retained earnings as of the date of these financials. A deferred tax asset as a result of NOLs have not been recognized due to the uncertainty of future positive taxable income to utilize the NOL.

#### Recent Accounting Pronouncements

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

### NOTE 3 - RELATED PARTY TRANSACTIONS

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

On December 6$^{th}$, 2021, the Company entered into a short-term loan agreement for $5,000 with a family member of a board member to help transition to wholesale sales for 2022. The loan did not accrue interest and was due on March 7$^{th}$, 2022. The balance of the loan was $5,000 as of December 31$^{st}$, 2021.

On December 6$^{th}$, 2021, the Company entered into a short-term loan agreement for $25,000 with a family member of a board member to help transition to wholesale sales for 2022. The loan did not accrue interest and was due on March 7$^{th}$, 2022. The balance of the loan was $25,000 as of December 31$^{st}$, 2021. See Note 7 - Subsequent Events for additional details on this loan.

On December 6$^{th}$, 2021, the Company entered into a short-term loan agreement for $9,000 with a related party to help transition to wholesale sales for 2022. The loan did not accrue interest and was due on March 7$^{th}$, 2022. The balance of the loan was $9,000 as of December 31$^{st}$, 2021.

On December 6$^{th}$, 2021, the Company paid $31,562 of debt owed to a company owned by the founder by taking on a term loan of the same value owed to a board member. The loan accrued interest of 5% and contains principal payments of $564 beginning on July 25$^{th}$, 2023. The loan is due in June of 2029. The balance of the loan was $31,562 as of December 31$^{st}$, 2021.

On April 26$^{th}$, 2021, the Company paid $80,000 of debt owed to a company owned by the founder by taking on a LOC note of the same value owed to a shareholder. The line of credit carries a 12% interest rate and is due on demand.

On May 20$^{th}$, 2021, the Company entered into a LOC agreement with a shareholder totaling $40,000 to help transition to wholesale sales for 2022. The line of credit carries a 36% interest rate and is due on demand.

The Company entered into a loan agreement with a related party. The amount does not accrue interest and is due on demand. The balance of the loan was $28,582 as of December 31$^{st}$, 2021.

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

We are currently not involved with or know of any pending or threatening litigation against the Company or any of its officers. Further, the Company is currently complying with all relevant laws and regulations. The Company does not have any long-term commitments or guarantees.

## NOTE 5 - LIABILITIES AND DEBT

The Company entered into a LOC agreement with a third party. The line of credit accrues interest of 6.75%. The balance of the LOC was $24,057 as of December 31st, 2021.

See Note 3 - Related Parties for details of loans and LOCs entered into with related parties.

### *Debt Summary*

| Debt Instrument Name | Principal Amount | Interest Rate | Maturity Date | For the Year Ended December 2021 |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | Current Portion | Non-Current Portion | Total Indebtedness | Accrued Interest |
| Notes Payable - Related Party 1 | 5,000 | None | Due on Demand | 5,000 | - | 5,000 | - |
| Notes Payable - Related Party 2 | 25,000 | None | Due on Demand | 25,000 | - | 25,000 | - |
| Notes Payable - Related Party 3 | 28,582 | None | Due on Demand | 28,582 | - | 28,582 | - |
| Notes Payable - Related Party 4 | 9,000 | None | Due on Demand | 9,000 | - | 9,000 | - |
| Notes Payable - Related Party 5 | 31,562 | 5% | 2029 | - | 31,562 | 31,562 | 1,999 |
| Line of Credit - Related Party | 80,000 | 12% | Due on Demand | 80,000 | - | 80,000 | 16,212 |
| Line of Credit - Related Party | 40,000 | 36% | Due on Demand | 40,000 | - | 40,000 | 21,277 |
| Line of Credit | 24,057 | 6.75% | Due on Demand | 24,057 | - | 24,057 | - |
| Total |  |  |  | 211,638 | 31,562 | 243,201 | 39,488 |

### **Debt Principal Maturities 5 Years Subsequent to 2021**

| Year | Amount |
| --- | --- |
| 2022 | 211,638 |
| 2023 | 2,820 |
| 2024 | 6,768 |
| 2025 | 6,768 |
| 2026 | 6,768 |
| Thereafter | 8,439 |

## NOTE 6 - EQUITY

The Company has authorized 1,800,000 common shares with no par value. 824,375 common shares were issued and outstanding as of December 31st, 2021.

**Voting:** Common stockholders are entitled to one vote per share.

**Dividends:** The holders of common stock are entitled to receive dividends when and if declared by the Board of Directors.

The Company has authorized 200,000 preferred shares with no par value. No preferred shares have been issued.

**Voting:** Preferred stockholders are entitled to one vote per share

**Dividends:** The holders of common stock are entitled to receive dividends when and if declared by the Board of Directors. Dividends on preferred stock are in preference to and prior to any payment of any dividend on common stock. As of December 31, 2021, no dividends had been declared.

**Liquidation preference:** In the event of any liquidation, dissolution or winding up of the Company, the holders of preferred stock are entitled to receive prior to, and in preference to, any distribution to the common stockholders.

## NOTE 7 - SUBSEQUENT EVENTS

The Company has evaluated events subsequent to December 31, 2021 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through February 14, 2023, the date these financial statements were available to be issued.

The Company paid $200,000 to a related party company in exchange for all parts-related assets and operations. These operations were transferred in January of 2023. The Company paid this amount by assuming various liabilities of the related party company, which consisted of a SBA EIDL note of $100,100 and a loan from a shareholder for $86,000.

The short-term loan totaling $25,000 disclosed in Note 3 - Related Parties was increased to $35,000 on March 2$^{nd}$, 2022, and fully repaid on August 24$^{th}$, 2022. The Company entered into a separate short-term loan with the same related party for $25,000 on December 29$^{th}$, 2022, which does not accrue interest, and is due on demand.

## NOTE 8 - GOING CONCERN

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

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

## NOTE 9 - RISKS AND UNCERTAINTIES

### *COVID-19*

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

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

# Z BEHLEN

Meticulous, Detail-Oriented, Committed

## EDUCATION

**The University of Chicago**, Chicago, IL

*Bachelor of the Arts*, March 2011

**Homewood-Flossmoor Community High School**, Flossmoor, IL

*Diploma*, June 2007

## WORK EXPERIENCE

### ReInvent the Wheel / MBZ Parts

*Sales Manager*, February 2019 - Present

- In this position I manage other team members, oversee all orders, manage supplier relations, assign prices to parts not already in our catalog, reference the MB electronic parts catalog for interchange and technical information, and respond to customer inquiries.

*Inventory Assistant*, July 2020 - Present

- After hiring our current Lead Sales Agent, I began to take on catalog maintenance and expansion duties. In this position I correct any errors I find in our existing catalog (part numbers, dimensions, or interchange information), and I also add new listings to our site from the databases created by our fulfillment manager (photos and dimensions of new and used parts.) I also seek out new potential suppliers and distributors for parts that are not available from conventional supply chains.

*Sales Assistant*, May 2018 - February 2019

- In this position I processed orders from eBay and our website, delegated tasks to the shipping agent, answered the phones, provided customer service for email/direct inquiries, and familiarized myself with our online catalog and physical inventory in Merlin. As my knowledge base and our sales grew, I was promoted to Sales Manager.

*Shipping Agent, Assistant Salvage Technician*, January 2013 - December 2013

- As one of the first regular employees of ReInvent the Wheel, I shipped orders from our eBay store and pulled parts from cars in the salvage yard as needed to fulfill orders and maintain inventory.

**Personal Support Worker**, Grants Pass, OR

*November 2015 - June 2018*

- In this position I supported a woman with disabilities in meeting her basic needs, and expanded her opportunities to grow and thrive through providing consistent, attentive care.

**United States Postal Service**, Wolf Creek, OR and Glendale, OR

*Rural Mail Carrier Substitute*, March 2014 - November 2016

- This position, though on-call, primed me well for my work at ReInvent the Wheel. Mail carriers must be extremely detail-oriented and fast-paced, as well as courteous and professional.

## SKILLS

Proficient in using the Mercedes-Benz Electronic Parts Catalog, Microsoft Office, and Adobe Photoshop, Acrobat. Excellent organizational memory, clear and direct communication skills. Conversant in Spanish, French, and Hindi.

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

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

# FRED WATTS JR

| Grants Pass, OR 97526

## Summary

Trustworthy individual offering over 10 years working as qualified Automotive Technician in the automotive industry. Focused and enthusiastic promoting exceptional skill in diagnosing issues and performing repairs. Broad knowledge of machines, production processes and maintenance processes.

## Skills

Testing and repair, Product inspections, Quality control, Maintenance and repair, Equipment maintenance, Managerial knowledge, Automotive knowledge.

## Experience

Reinvent the Wheel LLC | Merlin, OR
**General Manager Lead Technician**
11/2015 - Current

In this position I do all repairs on customer cars and custom engine swaps. I diagnose cars in the salvage yard, rebuild parts and pull parts for orders. I also go shopping for company supplies locally. I provide technical support to my team to make sales, and for our online customers, as well as fill in for shipping department when needed. Demonstrated excellent mechanical knowledge of machines and tools, including design, use, repair and maintenance.

Reinvent the Wheel LLC | Merlin, OR
**Salvage Manager**
06/2013 - 11/2015

As the Salvage Manager I inspected and diagnosed cars and motors, Test parts, Dismantled cars and also Managed others in the same process. Used tools and equipment to remove Interior and exterior parts, windshields, flooring and other parts. Added tags to parts and moved to correct storage locations.

Creekside Automotive | Grants Pass, OR
**Auto Repair Assistant**
08/2008 - 12/2012

- Completed repairs and maintenance to major vehicle models to meet safety specifications. Performed customer work and warranty repairs in compliance with manufacturer standards. Performed maintenance inspections, tune-ups, oil changes and other key services. Completed simple and advanced repairs according to specifications for systems such as brakes, exhaust and electrical. Wrote service orders, accepted payments and updated customer accounts to maintain CRM system, and ordered parts online.

Fred's Land Maintenance and Lawn Care | Grants Pass, OR
**Owner/Operator**
10/2004 - 08/2008

I owned and operated my own business, We maintained a few apartment complexes, Major clean up, Preconstruction for houses being built. Collaborated with building managers to assess ongoing needs and plan preventive maintenance schedules. Worked with customers to meet their needs and expectations.

Craig's Construction | Grants Pass, OR
**Laborer**
10/2003 - 09/2004

In this Job i assisted on building houses from the ground up. Used picks and shovels to dig, spread and level dirt and gravel. Performed heavy labor such as ditch digging, paving and hauling. Collected and removed debris from work sites to maintain team productivity and minimize safety hazards. Built

and disassembled scaffolds, bracing and barricades to assist in vertical construction activities. Prepared sites for concrete work by breaking up damaged concrete and leveling or contouring ground. Worked with supervisor's in all environments.

Grants Pass Equipment Rental | Grants Pass, OR
Yard Worker
02/2000 - 10/2003

In this job i maintained tractors, bobcats, skidsteer. I Made deliveries to customers and other businesses, Set up tents. I also Answered phones and made reservations.

## Education and Training

Hidden Valley High School | Grants Pass, OR
High School Diploma
06/1999

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

Contact

www.linkedin.com/in/sheila-heaney-mbz (LinkedIn)

# Sheila Heaney

Owner and Founder of ReInvent The Wheel, Parent Company of MBZ Parts, MBZ 4x4, MBZ Diesel and MBZ Classic
Merlin, Oregon, United States

## Summary

I have a lot of expansion plans for my Classic Mercedes-focused business ventures and am looking for business connections to be a part of the growth.

## Experience

MBZ Parts

CEO & Founder

January 2013 - Present (10 years 3 months)

REINVENT THE WHEEL LLC

Owner

January 2013 - Present (10 years 3 months)

Merlin, Oregon, United States

MBZ 4x4

Owner

April 2017 - Present (6 years)

Page 1 of 1

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

FILED
Secretary of State
State of California
A0871004
Filing Number
06/09/2021
Filing Date

# AMENDED AND RESTATED ARTICLES OF INCORPORATION OF

# MBZ PARTS
A CALIFORNIA CORPORATION

The undersigned certify that:

1. They are the President and CEO and the Secretary of this corporation whose name is MBZ Parts and whose entity number is C4652618.
2. The amendment and restatement of Articles of Incorporation provided herein has been duly approved by the board of directors.
3. The amended and restated Articles of Incorporation provided herein has been duly approved by the required vote of shareholders in accordance with Sections 902 and 903 of the Corporations Code, the total number of outstanding shares of common stock entitled to vote with respect to this amendment is 811,875, and the vote was unanimous with all shareholders participating, thus the number of votes cast in favor of the amendment exceeded the requisite vote of a majority of shares outstanding (pursuant to Corporations Code Section 152) for such an amendment.
4. The Articles of Incorporation of this Corporation are restated in their entirety as set forth in Exhibit 1 and Exhibit 1 is hereby formally incorporated by reference as if fully set forth herein.

The undersigned declare under penalty of perjury under the laws of the State of California that the matters set forth in this certificate are true and correct to the best of their knowledge.

DATE: 6/4/21
Sheila P Heaney, President and CEO
DATE: 6/4/2021
Eliza Behlen, Secretary

A0871004

# Exhibit 1

# ARTICLES OF INCORPORATION

# OF  
MBZ Parts

**ARTICLE 1. CORPORATE NAME.** The name of the corporation is MBZ Parts.

**ARTICLE 2. CORPORATE PURPOSE.** The purpose of the corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of California other than the banking business, the trust company business or the practice of a profession permitted to be incorporated by the California Corporations Code.

# **ARTICLE 3. STOCK.**

(a) Authorized Shares. The corporation is authorized to issue two classes of shares to be designated “preferred” and “common,” herein referred to as “preferred shares” or “preferred stock” and “common shares” or “common stock,” respectively. Common shares shall have all voting rights except for those voting rights expressly reserved for holders of preferred shares in these Articles or by law. The total number of common shares authorized is 1,800,000 shares.

(b) Preferred Shares. The total number of preferred shares authorized is 200,000 shares. Upon any voluntary or involuntary liquidation, dissolution, or winding up of the corporation, Preferred Shares shall receive the sum of the original purchase price per share plus all accrued and unpaid dividends or the fair market value, whichever is greater.

(c) Reserved.

(d) Dividends. The holders of the preferred shares of each series, in preference to the holders of the common shares, shall be entitled to receive dividends, out of any funds legally available therefor, as and when declared by the Board of Directors, payable annually no later than four months after the close of the fiscal year, or in the sole discretion of the board, dividends may be declared but payable at a later date. Dividends shall accrue and be cumulative in the case of shares of each series (1) if issued on or prior to the record date for the first dividend on shares of such series, then from the date fixed for the purpose by the Board of Directors, as provided in paragraph (e), but (2) if issued during the period commencing immediately after the record date for a dividend on shares of such series and terminating at the close of the payment date for such dividend, then from such last-mentioned dividend payment date, otherwise (3) from the quarterly dividend payment date next preceding the date of issue of such shares.

(e) Dividends-Equal Payment. No dividend shall be paid on, or declared or set apart for, any share of preferred stock for any annual dividend period unless at the same time a like proportionate dividend for the same dividend period, ratably in proportion to the respective annual dividend rates fixed therefor, shall be paid on, or declared and set apart for, all preferred shares of all series then issued and outstanding and entitled to receive such dividend.

(f) Dividends-Cumulative Rights. In no event, so long as any preferred shares shall be outstanding, shall any distribution, as in this paragraph defined, be made as to any of the common shares, unless and until all dividends on the preferred shares of all series for all past dividend periods and for the then current period shall have been paid or declared and a sum sufficient for the payment thereof set apart. “Distribution” as used in this paragraph (f) means the transfer of cash or property without consideration, whether by way of dividend or otherwise (except a dividend in shares of the corporation) or the purchase or redemption of shares of the corporation for cash or property, including any such transfer, purchase, or redemption by a subsidiary of the corporation. The time of any distribution by way of dividend shall be the date of declaration thereof and the time of any distribution by purchase or redemption of shares shall be the date cash or property is transferred by the corporation, whether or not pursuant to a contract of an earlier date; provided that where a negotiable debt security is issued in exchange for shares, the time of the distribution is the date when the corporation acquires the shares in such exchange.

(g) Liquidation Preferences-In General. In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the affairs of the corporation, before any distribution or payment shall be made to the holders of the

A0871004

common shares, the holders of the preferred shares of each series shall be entitled to be paid in full together with accrued and unpaid dividends to such distribution payment date, whether or not earned or declared.

(h) Liquidation Preferences-Insufficient Assets. If, on any voluntary or involuntary liquidation, dissolution, or winding up of the affairs of the corporation, the assets of the corporation are insufficient to permit full payment to the preferred shareholders as herein provided, then the holders of all series of the preferred shares shall share ratably in any distribution of assets in proportion to the full amounts to which they would otherwise be respectively entitled.
(i) Liquidation Preferences-Participation Rights When Assets Sufficient. If, on any liquidation, dissolution, or winding up of the affairs of the corporation, payment shall have been made in full to the holders of the preferred shares, as provided in the preceding paragraphs, the remaining assets and funds of the corporation shall be distributed equally to all outstanding shares, preferred and common, share for share.
(j) Liquidation Preferences-Dissolution as Not Including Merger on Sale of Assets. Neither the merger of the corporation with or into another corporation nor the sale of all or substantially all of its assets shall be deemed a liquidation, dissolution, or winding up of the affairs of the corporation within the meaning of paragraphs (g) through (i).
(k) Redemption-Conditions of Redemption. The preferred shares of any series may be redeemed, in whole or in part, at the option of the corporation, by the vote of its Board of Directors, or, in the case of any one or more series, under any sinking fund or other requirement for redemption of any such series fixed by the Board of Directors at any time or from time to time, at the fair market value of such shares. If at the time of redemption the corporation has not yet achieved profitability then there shall be a rebuttable presumption that the fair market value of the shares is the original purchase price plus any unpaid but accrued dividends. If the corporation and the shareholder are unable to mutually agree on the fair market value of the shares then the corporation will hire a disinterested appraiser to make a final determination as to the value of the shares.
(1) Redemption-Partial Redemption. If less than all of the preferred shares of any series is to be redeemed, redemption shall be made in such amount and by such method, either by lot or pro rata, as shall from time to time be determined by the Board of Directors.
(m) Redemption-Notice. Notice of any proposed redemption shall be given by electronic methods unless any shareholders of shares to be redeemed have not consented to electronic notices then notice shall be given by first-class mail, postage prepaid, to each holder of record of shares to be redeemed as of the date of mailing or record date fixed in accordance with law, addressed to the holder at the address of such holder appearing on the books of the corporation, or given by the holder to the corporation for the purpose of notice, or if no such address appears or is given at the place where the principal executive office of the corporation is located, no earlier than sixty (60) nor later than twenty (20) days before the date fixed for redemption. The failure to mail the notice as aforesaid shall not invalidate the redemption of the shares. The notice of redemption shall set forth the following: (1) the series of shares or part of any series of shares to be redeemed; (2) the date fixed for redemption; (3) the redemption price; and (4) the place at which the shareholders may obtain payment of the redemption price on surrender of their share certificate.
(n) Redemption-Unpaid Dividends on Other Shares. No redemption by the corporation of any shares of any series of preferred shares shall be made unless full cumulative dividends on all shares of all series of preferred shares then outstanding that are not to be redeemed or purchased, to the end of the then current dividend period, shall have been paid or declared and set apart for payment and unless funds sufficient to meet all matured obligations of the corporation have been set aside.
(o) Voting Rights-Removal of Directors. Subject to the provisions of Section 303 of the California Corporations Code, any Director may be removed from office by the affirmative vote of a majority of the outstanding shares of the class of shares by which his successor would be elected. A special meeting of the holders of shares of such class may be called by a majority vote of the Board of Directors for the purpose of removing a Director in accordance with the provisions of this paragraph. The President of the corporation shall, in any event, within then (10) days after delivery to the corporation at its principal executive office of a request to such effect signed by the holders of at least twenty-five (25) percent of the outstanding shares of such class, call a special meeting for such purpose to be held within forty (40) days after the delivery of such request. In lieu of the holding of a special meeting to remove a Director as is provided in this paragraph, such removal may be effected by the written consent of a majority of the outstanding shares of the class of shares by which the Director's successor would be elected.

A0871004

(p) Protective Voting Provisions-Change of Preferences. While any preferred shares of any series are outstanding, the corporation, without first obtaining the consent, either expressed in writing or by affirmative vote at a meeting called for that purpose, of at least two thirds (2⁄3) of all of the shares of all series of preferred shares then outstanding, shall not change, amend, or repeal any of the provisions of these Articles of Incorporation applicable to the preferred shares that would adversely affect the rights, preferences, privileges, and restrictions of the preferred shares or authorize the Board of Directors to do so. In case any series of the preferred shares at the time outstanding would be so affected in a different manner than any other series of the preferred shares then outstanding by any such action, such series so affected shall be entitled to vote as a series, and the corporation shall not take such action without the consent or affirmative vote, as above provided, of at least two thirds (2⁄3) of the total number of shares of such series then outstanding, in addition to or as a specific part of the consent or affirmative vote herein above otherwise required.

(q) Protective Voting Provisions-Other Changes. While any preferred shares of any series are outstanding, the corporation, without first obtaining the consent, either expressed in writing or by affirmative vote at a meeting called for that purpose, of at least two thirds (2⁄3) of all of the shares of all series of preferred shares then outstanding, as a class, shall not (1) increase the presently authorized number of preferred shares, (2) effect an exchange, reclassification, or cancellation of all or part of the preferred shares or effect an exchange, or create a right of exchange, of all or part of the shares of another class into preferred shares, (3) cancel or otherwise affect dividends on the preferred shares that have accrued but have not been paid, (4) create any new class of shares (or any security convertible into such shares) ranking on a parity with or having rights, preferences, or privileges prior to the preferred shares, or (5) merge with or into any other corporation except a wholly owned subsidiary having no funded debt or preference stock outstanding in the hands of the public, or sell or lease all, or substantially all, of its property or assets.

(r) Nonassessability of Shares. All shares shall be issued as fully paid, nonassessable shares, and not otherwise.

#### **ARTICLE 4. INDEMNIFICATION AND LIMITATION OF LIABILITY.**

(a) This corporation is authorized to indemnify its directors, officers, shareholders, and other agents to the fullest extent permissible under California law.

(b) The liability of shareholders, directors, and officers of this corporation for monetary damages shall be eliminated to the fullest extent permissible under California law.

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

# BYLAWS OF MBZ Parts  
A California Corporation

# ARTICLE I: MEETINGS OF SHAREHOLDERS

Section 1.1. PLACE AND CONDUCT OF MEETINGS. Meetings of shareholders will be held at any place within or outside the State of California designated by the board of directors. In the absence of a designation by the board, shareholders' meetings will be held at the corporation's principal executive office.

If authorized by the board of directors (in its sole discretion) and subject to the consent requirement in California Corporations Code §20(b) and any guidelines and procedures adopted by the board of directors, shareholders not physically present at a meeting of shareholders may, by electronic transmission by and to the corporation or by electronic video screen communication, participate in a meeting of shareholders and vote (in person or by proxy).

A meeting of shareholders may be conducted, in whole or in part, by electronic transmission by and to the corporation or by electronic video screen communication if the following two conditions are met:

(a) The corporation implements reasonable measures to provide shareholders (in person or by proxy) a reasonable opportunity to participate in the meeting and to vote on matters submitted to the shareholders; and

(b) If any shareholder votes or takes other action at the meeting by means of electronic transmission to the corporation or electronic video screen communication, a record of that vote or action is maintained by the corporation.

Any request by the corporation to a shareholder under California Corporations Code §20(b) for consent to conduct a meeting of shareholders by electronic transmission must include a notice that absent consent of the shareholder, the meeting will be held at a physical location.

Section 1.2. ANNUAL MEETING. The annual meeting of shareholders will be held each year on a date and at a time designated by the board of directors. The date so designated will be within fifteen months after the last annual meeting. At each annual meeting, directors will be elected and any other proper business within the power of the shareholders may be transacted.

Section 1.3. SPECIAL MEETING. A special meeting of the shareholders may be called at any time by the board of directors, by the chief executive officer, by the president, or by one or more shareholders holding shares that in the aggregate are entitled to cast ten percent or more of the votes at that meeting.

If a special meeting is called by anyone other than the board of directors, the person or persons calling the meeting will make a request in writing, delivered personally or sent by registered mail, by telegram, or by electronic transmission to the chief executive officer, the president, or

*Bylaws of MBZ Parts Page 1 of 17 Adopted 1/25/2021*

secretary, specifying the time and date of the meeting (which shall not be less than 35 nor more than 60 days after receipt of the request) and the general nature of the business proposed to be transacted. Within 20 days after receipt, the officer receiving the request will cause notice to be given to the shareholders entitled to vote, stating that a meeting will be held at the time requested by the person(s) calling the meeting, and stating the general nature of the business proposed to be transacted. If notice is not given within 20 days after receipt of the request, the person or persons requesting the meeting may give the notice.

Section 1.4. NOTICE OF SHAREHOLDERS' MEETINGS. All notices of meetings of shareholders will be sent or otherwise given not fewer than ten nor more than 60 days before the date of the meeting. Shareholders entitled to notice will be determined in accordance with Section 11 of this Article III. The notice will specify the place, date, and hour of the meeting, and (i) in the case of a special meeting, the general nature of the business to be transacted, or (ii) in the case of the annual meeting, those matters that the board of directors, at the time of giving the notice, intends to present for action by the shareholders. If directors are to be elected, the notice will include the names of all nominees whom the board intends, at the time of the notice, to present for election.

If the meeting is to be held in whole or in part by electronic transmission, the notice shall state the means of electronic transmission by and to the corporation or electronic video screen communication, if any, by which shareholders may participate in that meeting.

The notice will also state the general nature of any proposed action to be taken at the meeting to approve any of the following matters:

- (i) A transaction in which a director has a financial interest, within the meaning of California Corporations Code §310;
- (ii) An amendment of the articles of incorporation under Corporations Code §902, §14604, or §14610;
- (iii) A reorganization under Corporations Code §1201;
- (iv) A voluntary dissolution under Corporations Code §1900; or
- (v) A distribution in dissolution that requires approval of the outstanding shares under Corporations Code §2007.

Section 1.5. MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE.

Notice of any shareholders' meeting will be given either personally or by email to the address appearing on the corporation's books or given by the shareholder to the corporation for purposes of notice. If no email address appears on the corporation's books and has not been given as specified above, notice will be mailed to the address appearing on the corporation's books or given by the shareholder to the corporation for purposes of notice. Notice is deemed to have been

Bylaws of MBZ Parts Page 2 of 17 Adopted 1/25/2021

given at the time when delivered personally, sent via email, or deposited in the mail or sent by other means of written communication.

If any notice or report emailed and then mailed to a shareholder at the email address (if available) and mailing address appearing on the corporation's books is returned and cannot be delivered, all future notices or reports will be deemed to have been duly given without further emailing or mailing if the corporation holds the document available for the shareholder on written demand at the corporation's principal executive office for a period of one year after the date the notice or report was given to all other shareholders.

Notice shall not be given by electronic transmission by the corporation after either of the following: (i) The corporation is unable to deliver two consecutive notices to the shareholder by that means, or (ii) the inability to so deliver such notices to the shareholder becomes known to the secretary, any assistant secretary, the transfer agent, or other person responsible for the giving of the notice.

Section 1.6. QUORUM. The presence in person or by proxy of the holders of a majority of the shares entitled to vote at any meeting of the shareholders will constitute a quorum for the transaction of business, wherein presence in person may be in the form of appearing via video or conference call. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave fewer than a quorum, if any action taken is approved by at least a majority of the shares required to constitute a quorum, unless the General Corporation Law requires the vote of a greater number of shareholders or a vote by classes.

Section 1.7. ADJOURNED MEETING; NOTICE. Any shareholders' meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the vote of the majority of the shares represented at that meeting, either in person or by proxy, but in the absence of a quorum, no other business may be transacted at that meeting, except as provided in Section 6 of this Article III.

When any meeting of shareholders, either annual or special, is adjourned to another time or place, notice of the adjourned meeting shall be both announced via email to all shareholders and announced at the meeting at which the adjournment is taken, unless a new record date for the adjourned meeting is fixed, or unless the adjournment is for more than 45 days after the date set for the original meeting, in which case notice shall be given. At any adjourned meeting, the corporation may transact any business that might have been transacted at the original meeting.

Section 1.8. VOTING. The shareholders' vote may be by voice vote, hand vote, or by written ballot, provided, however, that any election for directors must be by ballot if demanded by any shareholder before the voting has begun. On any matter other than the election of directors, any shareholder may vote part of the shares the shareholder is to vote in favor of the proposal and refrain from voting the remaining shares or vote them against the proposal, but, if the shareholder fails to specify the number of shares that the shareholder is voting affirmatively, it will be conclusively presumed that the shareholder's approving vote is with respect to all shares that the shareholder is entitled to vote. If a quorum is present (or if a quorum has been present

*Bylaws of MBZ Parts Page 3 of 17 Adopted 1/25/2021*

earlier at the meeting but some shareholders have withdrawn), the affirmative vote of a majority of the shares represented and voting, provided such shares voting affirmatively also comprise a majority of the number of shares required for a quorum, will constitute an act of the shareholders unless the vote of a greater number or a vote by classes is required by law or by the articles of incorporation.

At a shareholders' meeting at which directors are to be elected, no shareholder will be entitled to cumulate votes (i.e., cast for any candidate a number of votes greater than the number of votes which that shareholder normally would be entitled to cast), unless the candidates' names have been placed in nomination before commencement of the voting and a shareholder has given notice at the meeting, before the voting has begun, of the shareholder's intention to cumulate votes. If any shareholder has given such a notice, then all shareholders entitled to vote may cumulate their votes for candidates in nomination. Thus each such shareholder may give one candidate a number of votes equal to the number of directors to be elected multiplied by the number of votes to which that shareholder's shares are normally entitled, or may distribute the shareholder's votes on the same principle among any or all of the candidates. The candidates receiving the highest number of votes, up to the number of positions to be filled, will be elected.

Section 1.9. WAIVER OF NOTICE OR CONSENT BY ABSENT SHAREHOLDERS. The transactions of any meeting of shareholders, either annual or special, however called and noticed and wherever held, will be as valid as though they were had at a meeting duly held after regular call and notice, if a quorum is present either in person or by proxy, and if each person entitled to vote who was not present in person or by proxy, either before or after the meeting, signs a written waiver of notice or a consent to holding the meeting or an approval of the minutes of the meeting. The waiver of notice or consent need not specify either the business to be transacted or the purpose of any annual or special meeting of the shareholders, except that the waiver of notice or consent must state the general nature of the action or proposed action if such action is specified in the California Corporations Code §601(f), such as the following matters:

- (a) A transaction in which a director has a financial interest, within the meaning of Corporations Code §310;
- (b) An amendment of the articles of incorporation under Corporations Code §902, §14604, or §14610;
- (c) A reorganization under Corporations Code §1201;
- (d) A voluntary dissolution under Corporations Code §1900; or
- (e) A distribution in dissolution that requires approval of the outstanding shares under Corporations Code §2007.

All waivers, consents, and approvals will be filed with the corporate records or made a part of the minutes of the meeting.

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A shareholder's attendance at a meeting also constitutes a waiver of notice of that meeting, unless the shareholder at the beginning of the meeting objects to the transaction of any business on the ground that the meeting was not lawfully called or convened. In addition, attendance at a meeting does not constitute a waiver of any right to object to consideration of matters required by law to be included in the notice of the meeting which were not so included, if that objection is expressly made at the meeting.

Section 1.10. SHAREHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING. Any action that could be taken at an annual or special meeting of shareholders may be taken without a meeting and without prior notice, if a consent in writing, setting forth the action so taken, is signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take that action at a meeting at which all shares entitled to vote on that action were present and voted.

Directors may be elected by written consent of the shareholders without a meeting only if the written consents of all outstanding shares entitled to vote are obtained, except that vacancies on the board (other than vacancies created by removal) not filled by the board may be filled by the written consent of the holders of a majority of the outstanding shares entitled to vote.

All consents will be filed with the secretary of the corporation and will be maintained in the corporate records. Any shareholder or other authorized person who has given a written consent may revoke it by a writing received by the secretary of the corporation before written consents of the number of shares required to authorize the proposed action have been filed with the secretary.

Unless the consents of all shareholders entitled to vote have been solicited in writing, prompt notice will be given of any corporate action approved by shareholders without a meeting by less than unanimous consent, to those shareholders entitled to vote who have not consented in writing. As to approvals required by California Corporations Code §310 (transactions in which a director has a financial interest), §317 (indemnification of corporate agents), §1201 (corporate reorganization), or §2007 (certain distributions on dissolution), notice of the approval will be given at least ten days before the consummation of any action authorized by the approval.

Section 1.11. RECORD DATE FOR SHAREHOLDER NOTICE OF MEETING, VOTING, AND GIVING CONSENT.

(a) For purposes of determining the shareholders entitled to receive notice of and vote at a shareholders' meeting or give written consent to corporate action without a meeting, the board may fix in advance a record date that is not more than 60 nor less than ten days before the date of a shareholders' meeting, or not more than 60 days before any other action.

(b) If no record date is fixed:

(i) The record date for determining shareholders entitled to receive notice of and vote at a shareholders' meeting will be the business day next preceding the day on which notice is given, or, if notice is waived as provided in Section 9 of this Article III, the business day next preceding the day on which the meeting is held.

*Bylaws of MBZ Parts Page 5 of 17 Adopted 1/25/2021*

(ii) The record date for determining shareholders entitled to give consent to corporate action in writing without a meeting, if no prior action has been taken by the board, will be the day on which the first written consent is given.

(iii) The record date for determining shareholders for any other purpose will be as set forth in Section 1 of Article IX of these bylaws.

(c) A determination of shareholders of record entitled to receive notice of and vote at a shareholders' meeting will apply to any adjournment of the meeting unless the board fixes a new record date for the adjourned meeting. However, the board will fix a new record date if the adjournment is to a date more than 45 days after the date set for the original meeting.

(d) Only shareholders of record on the corporation's books at the close of business on the record date will be entitled to any of the notice and voting rights listed in subsection (a) of this section, notwithstanding any transfer of shares on the corporation's books after the record date, except as otherwise required by law.

Section 1.12. PROXIES. Every person entitled to vote for directors or on any other matter will have the right to do so either in person or by one or more agents authorized by a written proxy signed by the person and filed with the secretary of the corporation. A proxy will be deemed signed if the shareholder's name is placed on the proxy (whether by manual signature, typewriting, telegraphic transmission, or otherwise) by the shareholder or the shareholder's attorney in fact. A validly executed proxy that does not state that it is irrevocable will continue in full force and effect unless (i) revoked by the person executing it, before the vote pursuant to that proxy, by a writing delivered to the corporation stating that the proxy is revoked, or by attendance at the meeting and voting in person by the person executing the proxy or by a subsequent proxy executed by the same person and presented at the meeting; or (ii) written notice of the death or incapacity of the maker of that proxy is received by the corporation before the vote pursuant to that proxy is counted; provided, however, that no proxy will be valid after the expiration of 11 months from the date of the proxy, unless otherwise provided in the proxy. The revocability of a proxy that states on its face that it is irrevocable will be governed by the provisions of the California Corporations Code §§705(e) and 705(f).

## ARTICLE II: BOARD OF DIRECTORS

Section 2.1. POWERS. Subject to the provisions of the California General Corporation Law and any limitations in the articles of incorporation and these bylaws relating to action required to be approved by the shareholders or by the outstanding shares, the business and affairs of the corporation will be managed and all corporate powers will be exercised by or under the direction of the board of directors. One or more members of the board of directors may be referred to as 'director' or 'board member.' The board of directors acts as a body and individual directors have no power to make decisions for or bind the corporation.

*Bylaws of MBZ Parts Page 6 of 17 Adopted 1/25/2021*

Section 2.2. NUMBER AND QUALIFICATION OF DIRECTORS. The authorized number of directors will be no fewer than three (3) nor more than five (5). The exact number of authorized directors will be fixed, within the limits specified above, by the board of directors. The maximum or minimum number of directors cannot be changed, nor can a fixed number be substituted for the maximum and minimum numbers, except by a duly adopted amendment to the articles of incorporation or by an amendment to this bylaw duly approved by a majority of the outstanding shares entitled to vote. An amendment that would reduce the minimum number to fewer than five, however, cannot be adopted if the votes cast against its adoption at a shareholders' meeting or the shares not consenting to an action by written consent are equal to more than one-sixth (16 2/3 percent) of the outstanding shares entitled to vote. No amendment may change the stated maximum number of authorized directors to a number greater than two times the stated minimum number minus one.

Section 2.3. ELECTION AND TERM OF OFFICE OF DIRECTORS. Directors will be elected at each annual meeting of the shareholders to hold office until the next annual meeting. Each director, including a director elected to fill a vacancy, will hold office until the expiration of the term for which elected and until a successor has been elected and qualified.

No reduction of the authorized number of directors will have the effect of removing any director before that director's term of office expires.

Section 2.4. VACANCIES. A vacancy in the board of directors will be deemed to exist (i) if a director dies, resigns, or is removed by the shareholders or an appropriate court, as provided in the California Corporations Code §303 or §304; (ii) if the board of directors declares vacant the office of a director who has been convicted of a felony or declared of unsound mind by an order of court; (iii) if the authorized number of directors is increased; or (iv) if at any shareholders' meeting at which one or more directors are elected the shareholders fail to elect the full authorized number of directors to be voted for at that meeting.

Any director may resign effective on giving written notice to the chair of the board, the president, the secretary, or the board of directors, unless the notice specifies a later effective date. If the resignation is effective at a future time, the board may elect a successor to take office when the resignation becomes effective.

Except for a vacancy caused by the removal of a director, vacancies on the board may be filled by approval of the board or, if the number of directors then in office is less than a quorum, by (i) the affirmative vote of a majority of the directors then in office at a meeting held pursuant to notice or waivers of notice complying with Corporations Code §307, or (ii) a sole remaining director.

A vacancy on the board caused by the removal of a director may be filled only by the shareholders, except that a vacancy created when the board declares the office of a director vacant as provided in clause (ii) of the first paragraph of this section of the bylaws may be filled by the board of directors.

*Bylaws of MBZ Parts Page 7 of 17 Adopted 1/25/2021*

The shareholders may elect a director at any time to fill a vacancy not filled by the board of directors.

The term of office of a director elected to fill a vacancy will run until the next annual meeting of the shareholders, and such a director will hold office until a successor is elected and qualified.

Section 2.5. PLACE OF MEETINGS; TELEPHONE MEETINGS. Regular meetings of the board of directors may be held at any place within or outside the State of California as designated from time to time by the board. In the absence of a designation, regular meetings will be held at the principal executive office of the corporation. Special meetings of the board will be held at any place within or outside the State of California designated in the notice of the meeting, or if the notice does not state a place, or if there is no notice, at the principal executive office of the corporation. Any meeting, regular or special, may be held by conference telephone, electronic video screen communication, or electronic communication. Participation in a meeting through conference telephone or electronic video screen communication will constitute presence in person at the meeting as long as all directors participating in the meeting are able to hear one another, all directors can communicate with the other directors concurrently, and each director is provided the means of participating fully.

Section 2.6. ANNUAL DIRECTORS' MEETING. Immediately after each annual shareholders' meeting, the board of directors will hold a regular meeting at the same place, or at any other place that has been designated by the board of directors, to consider matters of organization, election of officers, and other business as desired. Notice of this meeting will not be required unless some time and place other than the place of the annual shareholders' meeting and immediately after the shareholders' meeting has been designated.

Section 2.7. OTHER REGULAR MEETINGS. Other regular meetings of the board of directors will be held without call at times to be fixed by the board of directors from time to time. Such regular meetings may be held without notice.

Section 2.8. SPECIAL MEETINGS. Special meetings of the board of directors may be called for any purpose or purposes at any time by the president, any vice president, the secretary, or any two directors.

Special meetings will be held on four days' notice by mail or 48 hours' notice delivered personally or by telephone (including a voice messaging system or other system or technology designed to record and communicate messages), telegraph, or electronic transmission by the corporation. Oral notice given personally or by telephone, or written notice given by electronic mail or facsimile, may be transmitted either to the director or to a person at the director's office who can reasonably be expected to communicate it promptly to the director. Written notice, if used, will be addressed to each director at the address shown on the corporation's records. The notice need not specify the purpose of the meeting, nor need it specify the place if the meeting is to be held at the principal executive office of the corporation.

Section 2.9. QUORUM. A majority of the authorized number of directors will constitute a quorum for the transaction of business, except to adjourn as provided in Section 11 of this

*Bylaws of MBZ Parts Page 8 of 17 Adopted 1/25/2021*

Article IV. Every act or decision done or made by a majority of the directors present at a meeting duly held at which a quorum is present will be regarded as the act of the board of directors, subject to the provisions of Corporations Code §310 (concerning approval of contracts or transactions in which a director has a direct or indirect material financial interest), §311 (concerning appointment of committees), and §317(c) (concerning indemnification of directors). A meeting at which a quorum is initially present may continue to transact business, despite a withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for that meeting.

Section 2.10. WAIVER OF NOTICE. Notice of a meeting, although otherwise required, need not be given to any director who (i) either before or after the meeting signs a waiver of notice or a consent to holding the meeting without being given notice, (ii) signs an approval of the minutes of the meeting, or (iii) attends the meeting without protesting the lack of notice before or at the beginning of the meeting. Waivers of notice or consents need not specify the purpose of the meeting. All waivers, consents, and approvals of the minutes will be filed with the corporate records or made a part of the minutes of the meeting.

Section 2.11. ADJOURNMENT TO ANOTHER TIME OR PLACE. Whether or not a quorum is present, a majority of the directors present may adjourn any meeting to another time or place provided that they notify all shareholders of record of the new time and place by announcement at the adjourned meeting and by email to all shareholders of record.

Section 2.12. ACTION WITHOUT A MEETING. Any action required or permitted to be taken by the board of directors may be taken without a meeting, if all members of the board of directors individually or collectively consent in writing to that action. Any action by unanimous written consent will have the same force and effect as a unanimous vote of the board of directors at a duly held meeting. All written consents will be filed with the minutes of the proceedings of the board of directors.

Section 2.13. FEES AND COMPENSATION OF DIRECTORS. Directors and members of committees of the board may be compensated for their services, and will be reimbursed for expenses, as fixed or determined by resolution of the board of directors. This section will not be construed to preclude any director from serving the corporation in any other capacity, as an officer, agent, employee, or otherwise, or from receiving compensation for those services.

### ARTICLE III: COMMITTEES

Section 3.1. COMMITTEES OF THE BOARD. The board of directors may, by resolution adopted by a majority of the authorized number of directors, designate one or more committees, each consisting of two or more directors. The board may designate one or more directors as alternate members of any committee to replace any absent member at a committee meeting. The appointment of committee members or alternate members requires the vote of a majority of the authorized number of directors. A committee may be granted any or all of the powers and authority of the board, to the extent provided in the resolution of the board of directors establishing the committee, except no committee may take any of the following actions:

*Bylaws of MBZ Parts Page 9 of 17 Adopted 1/25/2021*

- (i) Approving any action for which the California Corporations Code also requires the approval of the shareholders or of the outstanding shares;
- (ii) Filling vacancies on the board of directors or any committee of the board;
- (iii) Fixing directors' compensation for serving on the board or a committee of the board;
- (iv) Adopting, amending, or repealing bylaws;
- (v) Amending or repealing any resolution of the board of directors that by its express terms is not so amendable or repealable;
- (vi) Making distributions to shareholders, except at a rate or in a periodic amount or within a price range determined by the board of directors; or
- (vii) Appointing other committees of the board or their members.

Section 3.2. MEETINGS AND ACTION OF COMMITTEES. Meetings and action of committees will be governed by, and held and taken in accordance with, bylaw provisions applicable to meetings and actions of the board of directors, with such changes in the context of those bylaws as are necessary to substitute the committee and its members for the board of directors and its members, except that (i) the time of regular meetings of committees may be determined either by resolution of the board of directors or by resolution of the committee; (ii) special meetings of committees may also be called by resolution of the board of directors; and (iii) notice of special meetings of committees will also be given to all alternative members who will have the right to attend all meetings of the committee. The board of directors may adopt rules for the governance of any committee not inconsistent with these bylaws.

#### ARTICLE IV: OFFICERS

Section 4.1. OFFICERS. The officers of the corporation will be a president, a secretary, and a treasurer. The corporation may also have, at the discretion of the board of directors, a chair of the board, one or more vice presidents, one or more assistant secretaries, one or more assistant treasurers, and such other officers as may be appointed in accordance with Section 3 of this Article VI. Any number of offices may be held by the same person. The president shall also be the chief executive officer of the corporation unless the board creates a separate CEO position to be filled by a person other than the president.

Section 4.2. APPOINTMENT OF OFFICERS. The officers of the corporation will be appointed by the board of directors, and will serve at the pleasure of the board of directors, unless the board expressly empowers the president to appoint officers.

Section 4.3. SUBORDINATE OFFICERS. The board of directors may appoint, and may empower the president to appoint, other officers as required by the business of the corporation, whose duties will be as provided in the bylaws, or as determined from time to time by the board of directors or the president.

*Bylaws of MBZ Parts Page 10 of 17 Adopted 1/25/2021*

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** MBZ Parts Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** CA

**Date of Organization:** 10-13-2020

**Physical Address:** 237 W Orange Show Ln, San Bernardino, CA, 92408

**Issuer Website:** http://www.mbzparts.com

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

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 7.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Preferred Stock

**Number of Securities Offered:** 20834

**Price per Security:** $2.50

**Method for Determining Price:** Dividing pre-money valuation $2,939,062.00 (or $2,821,500.00 for investors in the first $79,999.20) by number of shares outstanding on fully diluted basis.

**Target Offering Amount:** $50,001.60

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $299,999.20

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 6

**Total Assets (Most Recent Fiscal Year):** $50,947.00

**Total Assets (Prior Fiscal Year):** $15,000.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $12,205.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $13,232.00

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

**Short-Term Debt (Most Recent Fiscal Year):** $361,715.00

**Short-Term Debt (Prior Fiscal Year):** $38,140.00

**Long-Term Debt (Most Recent Fiscal Year):** $31,562.00

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

**Revenues/Sales (Most Recent Fiscal Year):** $21,646.00

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

**Cost of Goods Sold (Most Recent Fiscal Year):** $14,010.00

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

**Taxes Paid (Most Recent Fiscal Year):** $0.00

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

**Net Income (Most Recent Fiscal Year):** $-419,191.00

**Net Income (Prior Fiscal Year):** $-23,140.00

**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:** MBZ Parts Inc.

**Signature:** Sheila Heaney

**Title:** CEO & Founder

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**Signature:** eliza s behlen

**Title:** Inventory & Supply Chain Manager

**Date:** 02-28-2023

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**Signature:** Sheila Heaney

**Title:** CEO & Founder

**Date:** 02-28-2023