# EDGAR Filing Document

**Accession Number:** 0001862481
**File Stem:** 0001670254-23-000210
**Filing Date:** 2023-3
**Character Count:** 497336
**Document Hash:** 31a6e49d8aeba183e3e3c023e42c5ad2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000210.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001670254-23-000210

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 17

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CG Consolidated, LLC
- **CENTRAL INDEX KEY:** 0001862481
- **IRS NUMBER:** 814615628
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31943
- **FILM NUMBER:** 23711711

**BUSINESS ADDRESS:**
- **STREET 1:** 9185 RESEARCH BLVD.
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78758
- **BUSINESS PHONE:** (512) 330-4819

**MAIL ADDRESS:**
- **STREET 1:** 9185 RESEARCH BLVD.
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78758

## Ex-99

### Attached PDF Documents

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

# Form C

# Cover Page

Name of issuer:

CC Consolidated, LLC

Issue Name of issuer:

Firm Limited Liability Company

Jurisdiction of Incorporated/Organization TX

Date of organization 12/5/2016

Physical Address of issuer:

2507 W. Anderson Ln. #202-808

Austin TX 78767

Website of issuer:

http://www.complgladcher.com

Name of intermediary through which the offering will be conducted:

Wellesley Portal LLC

Citizenship of intermediary:

00006/0254

SEC ID number of intermediary:

007-00015

CNS number of applicable, of intermediary:

200000

Amount of compensation to be paid by the intermediary whether as a dollar amount is 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 computing the offering, including the amount of interest and any other fees associated with the offering.

A 5% of the offering amount upon a successful fundraiser, and for addition to reimbursement for out-of-pocket third party reserves it pays or incurs on behalf of the issuer in connection with the offering.

See other direct or indirect interest in the issuer filed by the intermediary or any arrangement for the intermediary to assume such an interest.

Ref.

Type of security offered:

☐ Common Stock

☐ Preferred Stock

☐ Other

☐ Other

If Other, describe the security offered:

Simple Agreement for Future Equity (SAFE)

Target number of securities to be offered:

1,000,000

Price:

$1,000,000

Method by determine payment:

Pro-rated portion of the total principal value of $1,000,000. Interests will be held in investments of $1 each investment is convertible to one unit as described under item 15.

Target offering amount:

$1,000,000.00

Interim assumptions, accepted:

☐ Yes

☐ No

If yes, elective new interim assumptions will be allocated:

☐ Pre-paid basis

☐ First come, first served basis

☐ Other

If other, describe new interim assumptions will be allocated:

As determined by the issuer

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

$1,000,000.00

Deadline to reach the target offering amount:

$100,000

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 committee funds will be returned.

Current number of employees:

94

|  | Post-issued fiscal year-end | Post-fiscal year-end |
| --- | --- | --- |
| Total Assets | $14,077,000.00 | $4,331,776.00 |
| Equity & Debt Equivalents | $7,929,050.00 | $4,313,710.00 |
| Insurance Receivables | $102,640.00 | $16,009.00 |
| Short-term Debt | $5,300,000.00 | $5,744,707.00 |
| Long-term Debt | $1,420,000.00 | $10,783.00 |
| Non-cash Assets | $13,209,000.00 | $19,090,000.00 |
| Loan of Issued Assets | $17,750,000.00 | $15,762,496.00 |
| Total Assets | $102,942.00 | $164,602.00 |
| Net Income | ($975,287.00) | $2,333,707.00 |

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

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

# Offering Statement

Request for each question to reach paragraph of this page, the table will give the total any issues, because any instructions, claims, or legal actions. If disclosure is required in any question, it represents no one or more other questions. It is not necessary to replace the disclosure. If a question or matter of position is inapplicable or the response is available elsewhere in the Form, either state law 5-3, inapplicable, which occurs reference to the responses disclosure, or must be given to an external question.

Do only credits and general summary of questions. One full and complete answer to this item are not included under the circumstances involved. Do not discuss any future performance or other anticipated costs unless you have a reasonable time to follow that it will actually cause to be the reasonable choice. If any answer requiring significant information is received, comments, incomplete or misleading, the Company, its management and principal shareholders may be liable to increase.

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# THE COMPANY

1. Name of Owner

CG Consolidated, LLC

# COMPANY ELIGIBILITY

2. When this box is certify that all of the following statements are true for the issuer.

- Organized under, and subject by the laws of a State or territory of the United States as the District of Columbia.
- The issuer must be in compliance to the reports pursuant to Section III or Section 1000 of the Securities Exchange Act of 1933.
- You are to receive company registered or required to be registered under the Investment Company Act of 1933.
- You indicate to rely on this exemption under Section 4(2)(c) of the Securities Act as a result of a disqualification specified in Rule 3(2)(a) of Regulation (Contribution).
- You find with the Commission and provided to investors, to the extent required, the majority of such events required by Regulation (Contribution) during the two years immediately preceding the filing of the offering statement (or for such interest period that the issuer was required to file such reports).
- You a development stage company that applies for specific business plan or (to) not indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

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

3. See the issuer or any of its predecessors previously listed to comply with the ongoing reporting requirements of Rule 2(2) of Regulation (Contribution).

☐ Yes ☑ No

# DIRECTORS OF THE COMPANY

4. Indicate the following information about each director (and any person) occupying a similar status in performing a similar function of the issuer:

| Director | Principal Occupation | New Business | Year Ended to Director |
| --- | --- | --- | --- |
| Michael Thomas | Partnership Partners | Commercial | 2001 |
| Jeffrey Davidson | Private Equity | Capital |  |
| George Clark | Co-CEO | Camp Gladiator | 2006 |
| Allison Davidson | Partner | Serpyone Capital | 2007 |
|  | Co-CBO | Camp Gladiator | 2016 |

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

# OFFICERS OF THE COMPANY

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

| Officer | Position/Date | Year Ended |
| --- | --- | --- |
| Jeffrey Davidson | CEO | 2016 |
| Allison Davidson | CEO | 2016 |

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

INSTRUCTIONS: If a person of the position is in a position, the number of persons in the position is 100, and the number of persons in the position is 100, and the number of persons in the position is 100, and the number of persons in the position is 100, and the number of persons in the position is 100, and the number of persons in the position is 100, and the number of persons in the position is 100, and the number of persons in the position is 100

# PRINCIPAL SECURITY ROLDERS

6. Provide the name and ownership level of each person, as of the most recent examination 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 Voucher | No. and Class of Securities (from 1983 to 1993) | % of Voting Power (from 1993 to 1997) |
| --- | --- | --- |
| Camp Gladiator, Inc. | ASSEMBLED Contract Units, 50% earned by Jeff Davidson 50% earned by Allison Davidson | 85.08 |

INSTRUCTIONS: If the issuer is the sole proprietor of the issuer, the issuer has a position in the position of the issuer.

In addition, the issuer is the sole proprietor of the issuer, and the issuer has a position in the position of the issuer. The issuer has a position in the position of the issuer, and the issuer has a position in the position is 100, and the issuer has a position in the position is 100, and the issuer has a position in the position is 100, and the issuer has a position in the position is 100, and the issuer has a position in the position is 100, and the issuer has a position in the position is 100, and the issuer has a position in the position is 100

# BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe in detail the business of the issuer and the principal 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
INSTRUCTIONS: If a person of the issuer is the sole proprietor of the issuer, the issuer has a position in the position of the issuer. The description of the plan will be used to determine the position of the issuer.

The issuer will be a representative of the issuer's position. If the issuer is the sole proprietor of the issuer, the issuer will be a representative of the issuer. The description of the plan will be used to determine the position of the issuer.

# 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. Should the overall factors be more or less important in the issuer's position or risks:

We are working to develop and introduce new programs in a market with many competitors. These programs may attract customers at a slower rate or in more volume than expected.

As a result of the performance of our new programs, misstatements, impacts, or other factors, we could fail to recruit a sufficient number of trainers needed to continue to grow the business.

Because our initiative is dependent on developing new software, technological competition, inefficiencies, failure to achieve various deadlines, or other problems could occur that could delay the launch of new or more programs.

Our existing business and programs could decline as a result of changes in the competitive environment and competitive offerings, changes in the misstatements, environment, or changes in consumer preferences.

Legal or regulatory issues could arise that may create financial difficulty or hardship for the company that limit our ability to operate within certain states or locales, or that may require what business model has already within certain states or locales. Such issues could include, but are not limited to, challenges to our intellectual property, tax rulings or unfavorable tax audits; benefits related to our programs, operations, or marketing practices; and evolving laws and regulations affecting independent contractor and "agreement" business models.

Our business and Co-CBO, Jeff Davidson, Inc. have a position in the position.

The company is a member representative and wealth manager for 30 years. All contracts to maintain an advisory practice and double his time across both businesses. While it is our expectation that he will continue to decide as much of his business time to the management of the Company as is, it is possible that his external obligations could affect his availability for Company matters from time to time.

Additionally, Mr. Davidson's involvement in the securities industry has certain regulatory implications that could potentially affect the Company and the offering. Mr. Davidson turned up a registered representative with Comitex Advisors ("CJA") at the time of the Company's Series A Interstate. Although notice of the financing was provided to the management, formal written approval for E&A involvement was not obtained prior to the commencement of the financing, which ultimately resulted in his being discharged from LA. FINRA subsequently made an inquiry related to the discharge, and Mr. Davidson has been working with FINRA to provide information related to the Series A Interstate over the past year. Potential actions that could result from the inquiry range arising from an action, to a potential suspension of time and are unknown at the time. While the exact timing of FINRA's final determination is also unknown, it is possible that an adverse determination made prior to the completion of this offering could impact the Company's ability to raise the full offering amount.

In 2022, the Company experienced a decline in its outdoor business due to ongoing projects from the Covid-19 pandemic. While the Company's nuclear contracts for 2022 are not yet complete, the Company anticipates that they will ultimately refund a loss of approximately $6 million in 2022. In response, the Company has significantly reduced operating expenses in order to reduce net losses going forward. The Company has also pivoted its business model and is offering new products and services that, despite they succeed in paying money transfers, have the potential to further improve financial performance.

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

The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never underlie a liquidity event such as a sale of the Company at an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous broader restrictions, and will have no rights. Biquet, with no secondary market are intact to sell there. The Securities are not equity interests, have no ownership rights, have no rights to the Company's assets or profits and have no voting rights or ability to direct the Company or its actions.

DEBTORS ARE REQUESTED AT A NEW PROVIDED MANAGEMENT OFFICER AND HAVE BEEN USED IN A NEW PROVIDED MANAGEMENT OFFICER. The results should be subject to the current changes and the offering will therefore cause the future additional to the benefit and situation. In specific events of the future we request to be identified.

## The Offering

### USE OF FUNDS

1. What is the purpose of this offering?

The Company intends to use the net proceeds of this offering for working capital and general corporate purposes, which includes the specific items listed in item 12 below. While the Company expects to use the net proceeds from the offering in the manner described above, it cannot specify with company the particular uses of the net proceeds that it will receive from the Offering. Accordingly, the Company will hear broad discretion in using these proceeds.

2. How does this house interest to use the proceeds of this offering?

3. In order: $1,000,000

Use of 25% Marketing (Hiring has now employed), 25% New Product Development, 40.5% Software Development & Engineering (living three now employed), 0.5% towards Midunder intermediary fee

4. In order: $1,000,000

Use of Raising additional funds allows us to continue investing in product and engineering improvements we're making to the platform.

20% Marketing, 50% New Product Development, 50% Software Development & Engineering (living 10 engineers), 5% towards Midunder intermediary fees

DEBTORS ARE REQUESTED AT A NEW PROVIDED MANAGEMENT OFFICER AND HAVE BEEN USED IN A NEW PROVIDED MANAGEMENT OFFICER. The results should be subject to the current changes and the offering will therefore cause the future additional to the benefit and situation. In specific events of the future we request to be identified.

### DELIVERY & CANCELLATIONS

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

Bank Entry and Investment in the Company. Investors will make their investments by investment interests issued by one or more companies, each of which is a special purpose service ("SPV"). The SPV will invest an amount in business from investors in securities issued by the Company. Interests issued to investors by the SPV will be in book entry form. This means that the investor will not receive a certificate representing his or her investment. Such investment will be recorded in cash in accordance with the SPV. In addition, investors' interests in the investments will be recorded in cash investors' "Portfolio" page on the Midunder platform. All references in this Form C to an investor's investment in the Company can utilize principal should be interpreted to include investments in a SPV.

2. How can an investor consult an investment commitment?

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

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

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

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

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

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

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

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

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

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

# Ownership and Capital Structure

# THE OFFERING

12. Describe the terms of the securities being offered.

To make a copy of the SAPE you will purchase, please see

Appendix B, Investor Contracts.

The entire terms of the SAPE are provided below.

The SAPE's, like any offering securities in the form of a Simple Agreement for Future Equity ("SAFE"),

which provides investors the right to preferred units in the Company ("Preferred Units"),

where and if the Company sponsors an equity offering that involves Preferred Units, on the standard terms offered to other investors.

Commodity's Preferred Units: Board on our SAPE's, when we engage in an offering of equity interests involving preferred units.

Investors will receive a number of units of preferred units calculated using the method that results in the greater number of preferred units.

i. the total value of the investor's investment, divided by the price of preferred units issued to new investors multiplied by the discount rate (60%), or

ii. if the valuation for the company is more than $100,000,000.00 (the "Valuation Cap"), the amount invested by the investor divided by the quotient of

(a) the Valuation Cap divided by

(b) the total amount of the Company's capitalization at that time.

iii. for investors up to the first $1,700,000.00 of the securities, investors will receive a valuation cap of $75,000,000.00 and a discount rate of 75.0%.

Additional Analyzer Assumes (a). For purposes of option (b) above, the Company's capitalization calculated as of immediately prior to the Equity Financing and contract double-counting, in each case calculated on an as-connected to Common Loans (sec.)

- Includes all units of Capital Units issued and outstanding

- Includes all Accounting Securities

- Includes all (i) issued and outstanding Options and (ii) Promised Options, and

- Includes the Unissued Option Pool, except that any increase to the Unissued Option Pool in connection with the Equity Financing and only to increase to the extent that the number of Promised Options exceeds the Unissued Option Pool prior to such increase.

Equity Flows: If the Company has an initial public offering or is acquired by merged units, or otherwise taken over by another company or new owners prior to investors in the SAPE's respective preferred units, investors will receive

- proceeds equal to the greater of (i) the Purchase Amount (the "Cash-Out Amount") or (ii) the amount payable on the number of units of Common Units equal to the Purchase Amount divided by the Liquidity Price (the "Conversion Amount")

Equity Flows: In a Liquidity Point or Dissociative Point, this Safe is intended to operate the standard cooperating Preferred Units. The Investor's right to receive its Cash-Out Amount is:

1. under its payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (in the extent such convertible promissory notes are not actually or indirectly converted into Capital Units).

2. for par with payments for either Sates and/or Preferred Units, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Sates and/or Preferred Units, the applicable Proceeds will be disintegrated into due to the Investor and such other Sates and/or Preferred Units in proportion to the full payments that would otherwise be due and a similar to payments for Common Units.

# Securities Issued by the SPV

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

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

# Voting Rights

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

# Proxy to the Lead Investor

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

# Restriction on Transferability

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

13. Do the securities offered have voting rights?

☐ Yes
☑ No

14. Any these, any restrictions on any voting or other rights identified, shown

See the alternative space of the Proxy to the Lead Investor.

15. Were they the terms of the securities being offered on this SAPE?

Any provision of this Safe may be amended, waived or modified by written consent of the Company and either:

i. the investor or

ii. the investor mentioned all of their outstanding Sates with the same "from Proxy Valuation Cap" and "Discount Rate" as the Safe (and Sates being one or both of such Sates) will be considered to be the same with respect to such terms(s), provided that with respect to above(s).

iii. the Purchase Amount may not be amended, waived or modified in this opinion.
iv. the consent of the investor and such holder of such Sates must be satisfied

shares if not obtained), and
C. such amendment, waiver or modification hereto of such holders in the same
statement, "Majority revidened" refers to the holders of the applicable group
of Saks whose bills have a total Purchase Amount greater than 20% of the
total Purchase Amount of all of such applicable group of Saks.

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

- A. Verfurther Portal may amend the terms of an investment contract, provided
that the intended terms are more favorable to the investor than the original
terms, and
- B. Verfurther Portal may reduce the amount of an investor's investment if the
reason for the reduction is that the Company's offering is over-submitted.

# **INSTRUCTIONS ON TRANSFER OF THE SECURITIES BEING OFFERED:**

The securities being offered may not be transferred to any producer of such securities during the two-year
periodic/decay time for exercise was based when and whether as indicated:

- 1. In the event
- 2. In an accredited investor
- 3. In general in effecting a proposal with the U.S. Securities and Exchange Commission or
- 4. In a statement of the family of the purchaser or the agent, there is no consent of the purchaser, or a
must respect the payment of a member of the family of the purchaser or the agent, or in connection
with the death or absence of the purchaser or other similar circumstances.

NOTE: The term "accredited investor" means any person who serves within any of the
categories set forth in Rule 9(1)(a) of Regulation D, or who the other reasonably believes
comes within any of such categories, at the time of the sale of the securities is that person.

The term "member of the family of the purchaser or the equivalent" includes a state
responsible, ground-trick, current, educational, participation, sponsor or special equivalent, sibling,
number of persons, and a member, description of the securities, or other means of
the purchaser, and includes exception representation. The term "special equivalent" means a
consultant accepting a relationship generally equivalent to that of a spouse.

# **DESCRIPTION OF ISSUER'S SECURITIES**

1. Whilst other securities as insured of securities of the issuer are not including ("Describe the
following terms of any other satisfactory securities or claims of securities at the issuer:

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Series A Preferred Units | 25,000,000 | 15,210,000 | Yes |
| Common Units | 65,000,000 | 62,600,000 | Yes |

| Class of Security | Securities Reserved for Issuance upon Exercise or Conversion |
| --- | --- |
| Relevance: |  |
| Options: |  |

Describe any other rights:
Investors in the S&FG, if converted as part of an equity financing will receive
preferred units. Preferred units have a liquidation preference over common units.

The Series A Preferred Units have liquidation preferences that entitle these
ambitions to retirees, as part of a qualifying transaction and prior and in
preference to holders of the Company's Common Units. Equitable preference
amounts less any aggregate amounts already distributed. The Series A liquidation
preference is an amount equal to (1) until the fifth anniversary of the original
Series A issue date, (2) times the original Series A issue price, (3) on
or after the fifth anniversary of the original Series A issue date, (4) times the
original Series A issue price, and (5) once after the tenth anniversary of the
original Series A issue date, (6) times
the original Series A issue price. After the Series A liquidation preference is paid,
the holders of the Common Units will receive an aggregate amount equal to the
product of (a) the original Series
A liquidation preference distribution amount and Common Units distribution
amount times (b) such Common Unitholders' percentage interest. Thereafter, the
holders of the Preferred Units and Common Units will share pro rata in any
consisting proceeds, after allocation on a pro rata basis
to the Company's Lurely Term Incentive Plan award holders, in proportion to their
relative percentage interests. At December 31, 2021, the Series A Preferred Units
fund a liquidation
preference of $14,793,000. Holders of the Preferred Units have the right to one
note for each unit held. Following the tenth anniversary of the original issuance of
the Series A Preferred Units, on an annual basis during the
period May 4th to June 2nd, the holders of a majority of the Series A Preferred
Units then outstanding can request that the Company distribute to each holder of
Series A Preferred Units an amount equal to such holder's unpaid liquidation
preference as discussed above. The
distribution would be required to be made within one year from the date the
request is made and would not affect the amount of units held. Due to the fact
that the distribution can be impaired at
the option of the Series A Preferred Unit holders, the Company is accepting the
amount of the potential future distribution over a ten year period which
represents the time from the original
issuance date to the date of surface distribution. The amount accepted as of
December 31, 2021 is included in Accrual future distribution right on the
accompanying consolidated balance sheet.

Effective October 15, 2021, the Company adopted the CC Consolidated LLC Long-
term Incentive Plan (the "Plan"). The Plan provides for the issuance of Master
Equity Units ("PELs") to employees of the Company. The Company has authorized
up to 15,000,000 PELs for issuance under the Plan; PELs will based on years of
service according to a four-year vesting schedule, with 20% of the units vesting as
each anniversary unless a different vesting schedule is specified for a since PEL
issuance. Following any distributions made to Preferred or Common Unit holders
other than available such, except for tax distributions made to Plentions or other
distributions that are explicitly excluded from Plan participation at the time by the
Company's Board of Managers, or distributions made upon a deemed liquidation
of the Company as
described in the Plan document, the Company shall pay the PELs holders an
amount equal to 10% of the total distribution made, and such total distribution
includes the distribution to the PELs holders and to the Preferred and Common
Unit holders. Individual PELs holders will receive a pro rata portion of that
distribution according to their total vested PELs, relative to the total
vested PELs in the Plan. As the Company does not plan to pay distributions in the
new future, nor is a deemed liquidation event probable, no compensation expense
has been recorded related.
To these awards, At December 31, 2021, of the total units authorized, $1,000,000
units were available for issuance under the Plan. As of December 31, 2021, the
Company had 4,615,000 PELs outstanding, of which 4,465,750 were vested
based on the contractual vesting schedules.

2. Note that the rights of the securities being offered are expressly limited, diluted or qualified
by the rights of any other class of security identified as such:

The holders of a minority-in-interest of voting rights in the Company could limit
the investor's rights in a material way. For example, those entered holders could
note to change the terms of the agreements governing the Company's operations
or cause the Company to release in additional effective (including potentially a
public offering).

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

To the extent applicable, in cases where the rights of holders of convertible debt,
SAFES, or other outstanding options or warrants are exercised, or if new awards
are granted under our equity compensation plans, an investor's interests in the
Company may be diluted. This means that the pro-rata portion of the Company
represented by the investor's securities will decrease, which would also diminish
the investor's voting and/or economic rights. In addition, as discussed above, if a
majority-in-interest of holders of securities with voting rights cause the Company
to issue additional equity, an investor's interest will typically also be diluted.

Based on the risk that an investor's rights could be limited, diluted or otherwise
qualified, the investor would lose all or part of his or her investment in the
securities in the offering, and may never use another return.

Additional risks related to the rights of other security holders are discussed below in Question 23.

14. How many any differences can influence sexual behavior the securities being offered and each other share of security of the house?

No.

23. How could the exercise of rights liability the unbiased investments specified in Question 6 above affect the purchasers of the securities being offered?

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

For example, the unitholders may change the terms of the operating agreement for the company, change the terms of securities issued by the Company, change management of the Company, and then force out minority holders of securities. The unitholders may make changes that affect the tax treatment of the Company in value that are unfavorable to practice favorable to them. They may also refer to engage in non-offering, unable to register certain of the Company's securities in a way that negatively affects the value of the securities the investor owns. Other holders of securities of the Company may also have access to more information about the investor, leaving the investor at a disadvantage with respect to any decisions regarding the securities to or the users.

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

In cases where the rights of holders of convertible debt, S/HES, or other outstanding options or warrants are exercised, all if new awards are granted under our equity compensation plans, an investor's interests in the Company may be shared. The means that the per-city portion of the Company represented by the investor's securities will decrease, which could also diminish the investor's selling and/or economic rights. In addition, as discussed above, if a majority in interest of holders of securities with equity rights owes the Company to those additional units, an investor's interest will typically also be offered.

27. How are the securities being offered being issued? Include examples of methods for how such securities may be issued by the issuer in the future, including during subsequent securities review.

The offering price for the securities offered pursuant to this Item 7 has been determined primarily by the Company, and does not necessarily bear any investment in the Company's basic 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 all independent, appraisal or evaluation. Accordingly, the offering price should not be considered to be indicative of the actual value of the securities offered hereby.

The initial amount invested in a S/HES is determined by the investor, and we do not guarantee that the S/HES will be converted into any particular number of units. As discussed in Question 6b, when we engage in an offering of equity interests involving Preferred Units, investors may receive a number of Preferred Units, calculated as either (1) the total value of the investor's investment, divided by the price of the Preferred Unit being issued by new investors, or (2) if the valuation for the company is more than the Valuation Cap, the amount invested divided by the number of (1) the Valuation Cap divided by (2) the total amount of the Company's capitalization at that time.

Because there will likely be no public market for our securities prior to an initial credit offering or similar liquidity event, the price of the Preferred Units that investors will receive, and/or the total value of the Company's capitalization, will be determined by our management. Among the factors we may consider in determining the price of Preferred Units on prevailing market conditions, our financial information, market valuations of other companies that we believe to be comparable to us, estimates of our business potential, the present state of our development and other factors deemed relevant.

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

- unrelated third-party valuations;

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

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

- current business conditions and projections;

- the marketability or lack thereof of the securities;

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

- the introduction of new products;

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

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

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

- industry trends and competitive environment;

- trends in consumer spending, including consumer confidence;

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

- the general economic outlook.

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

25. 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 unavailability 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 by government or accordance with the strategic direction and decision-making of its management, and the investor will have no independent right to name or remove unofficial or member of the Management of the Company.

Following the investor's investment in the Company, the Company may, will increase its additional reserves, 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.

25. What are the risks to purchasers associated with corporate actions, including additional issuance of securities, issue repurchases of securities, a use of the issuer or of assets of the issuer or transactions with its third parties?

Additional issuance of securities. Following the investor's investment in the Company, the Company may, will interest 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.

Issue repurchases of securities. The Company may have authority to repurchase its securities from unitholders, which may have to decrease any liquidity in the market for such securities, increase the percentage interest held by other similarly situated investors to the investor, and create pressure on the investor to satisfy securities to the Company temporarily.

A sale of the issuer or of assets of the issuer. As a minority owner of the Company, the investor will have limited or no ability to influence a potential sale of the

Company or a substantial portion of its assets. Thus, the investor will rely upon the executive management of the Company to manage the Company as to its exercise value for and before. Accordingly, the success of the investor's investment in the Company will depend in large part upon the skill and expertise of the executive management of the Company. If the Management of the Company authorizes a sale of all or a part of the Company, or a disposition of a substantial portion of the Company's assets, there can be no guarantee that the value received by the investor, together with the fair market estimate of the value remaining in the Company, will be equal to or exceed the value of the investor's initial investment in the Company.

Transactions with related parties. The investor should be aware that those written accounts within the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management of the Company will be guided by their good faith judgment 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 and in doubt that will be in all cases consistent with the status of the management of the Company or its subsidiaries. By acquiring an interest in the Company, the investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

14. Describe the names of terms of any shareholders of the issuer

Loan

Leader Plain/Coastal Bank

Issue date 06/09/19

Amount $800,000.00

Outstanding principal plus interest $302,070.00 as of 01/05/23

Interest rate 0.0% per annum

Maturity date 06/10/24

Current with payments Yes

The loan is primarily processed to its investors

Loan

Leader Swanton McLean

Issue date 06/09/19

Amount $1,000,000.00

Outstanding principal plus interest $385,000.00 as of 01/05/23

Interest rate 0.0% per annum

Maturity date 06/10/24

Current with payments Yes

Loan from good value to capital is to be purchased to company shareholders

Loan

Leader Small Business Administration

Issue date 06/14/23

Amount $2,000,000.00

Outstanding principal plus interest $2,000,000.00 as of 01/10/23

Interest rate 3.70% per annum

Maturity date 06/15/23

Current with payments Yes

The use of your 1993, may be a good deal with the business and business and business 1923. The best is making this in August 1993.

INSTRUCTIONS: 1. Note the written consent must come out, usually due and no other material error.

15. What other exempt offering has the issue conducted within the past three years?

| Offering Date | Exemption Date | Security Type | Amount Sold | Age of Research |
| --- | --- | --- | --- | --- |
| 1/2022 | Expiration 31 | Series A | $10,000,000 | General |
|  | Run 1/05/23 | Preferred Units |  | periodicals |

16. Who or a third issuer of any articles contracted for or under common control with the issuer's party being formed in terms of the beginning of the issuer's last fiscal year, or any continuing proposed transaction, where the issuer's included interests had arrived at the aggregate amount of capital served by the issuer in relation to election results of the business. As during the preceding 15-month period, including the amount the issuer party to receive the current offering in which any of the following persons had or is to have a direct or indirect interest 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 an account or more of the issuer's outstanding non-accident securities, calculated on the basis of the company's business.

3. If the issuer was incorporated or registered within the past three years, any promotion of the issuer

4. In the demand the family member of any of the foregoing persons

☐ Yes

☐ No

INSTRUCTIONS: 1. The use of a business is not a business, and the business is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business, which is a business

The following table provides the information in a tabular format:

The term "member of the party" includes all of its members, and the party's members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members' members

C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C. C

## FINANCIAL CONDITION OF THE ISSUER

17. Enter the issuer from an operating issuer?

☐ Yes

☐ No

18. Describe the financial condition of the issuer, including its (current) interest, liquidity, cash and interest and benefits 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 issues 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 towards making 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

A Two-Sided Fitness & Realtors Platform For Trainers & Consumers

Milestones

CG Consolidated, LLC was organized in the State of Texas in December 2016. The company has several subsidiaries: CG Varian, LLC (Glen Camp Breakers); CG Growth Systems, LLC; CG IT Holdings, LLC; and CG Trading, LLC.

Since 1965, we have:

• Phase 1/2020 • Phase 2/2021

- 100% E-Essence # of Participants
- Brunei Inc. 3000 Humane from 2015-2021 & Inc. Top 100 Female Founders in 2020
- 24th Increase in Launched Trainers Non-Over-Tree
- Over 10M Views for Live Streaming & On-Demand Online Workouts
- 90% Increase in Masterpieces for December '22 & January '23 Compared to December '21 & January '23
- EOM was previously raised during Game A

# **Historical Results of Operations**

- Bureau of Live Music, For the period ended December 31, 2020, the Company had received of $13,223,084 compared to the year ended December 31, 2020, when the Company had received of $33,005,000. Our gross margin was 24.66% in fiscal year 2021, compared to 29.33% in 2020.
- Home, As of December 31, 2020, the Company had total assets of $14,073,867, including $7,629,012 in cash. As of December 31, 2020, the Company had $9,335,778 in total assets, including $4,913,735 in cash.
- Service, The Company has had net losses of $870,267 and net income of $2,500,757 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- Outdoor, The Company's liabilities totaled $7,722,469 for the fiscal year ended December 31, 2021 and $3,481,800 for the fiscal year ended December 31, 2020.

# **Liability & Capital Resources**

To date, the company has been financed with $5,346,000 in debt and $81,210,000 in equity.

After the conclusion of this Offering, should we fill our minimum funding target, our projected runway is 30 months before we tend 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 source of capital in the immediate future.

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

CG Consolidated, LLC cash in hand is $3,646,000, as of January 2021. Over the last three months, revenues have averaged $3,676,154/month, cost of goods sold has averaged $3,476,688/month, and operational expenses have averaged $1,667,782/month, for an average loan rate of $686,317 per month. Our intent is to be profitable in 12 months.

Since we date our financials cover (and due to COVID), in-person fitness activities declined, resulting in customer client and slower acquisition of new customers. There is ongoing preparation, we have acquired the assets of two entities and we invested significantly in a new nutrition coaching product offering. However, our operating expense can only be also declined in recent months as we have classified and reorganized business operations, including an act from a large facility lease.

We expect our monthly revenues to average $2.5 to $2.6 million in the coming 3-6 months. We expect to see about $3M to $3.2M in expenses during the same period.

We believe we can be profitable on a go-forward monthly run rate basis by the end of 2023 with a purchase of $4.5 million. This will allow us to build critical technology infrastructure to roll out "OR 3.0" with multiple new programs, continue to drive strong human recording, and grow customer awareness of our newest offerings leading to new program subscriptions.

Our current cash balance is sufficient to cover short-term loan throughout the campaign. Our other sources of capital include our existing cash and potential capital available from our existing pool of private equity investors.

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

INTERNATIONAL PROVISIONS: In the above mentioned year, the Company's financial structure is based on the financial structure of the Company's financial structure. The Company's financial structure is based on the financial structure of the Company's financial structure. The Company's financial structure is based on the financial structure of the Company's financial structure.

# **FINANCIAL INFORMATION**

All the above financial statements covering the four most recently completed fiscal years to the intended listed company, if known

Refer to Appendix C, Financial Statements

- I, other (please, and/or do)
- (1) the financial statements of CG Consolidated, LLC included in this Form are true and complete in all material respects; and
- (2) the financial information of CG Consolidated, LLC included in this Form reflects accurately the information reported on the tax return for CG Consolidated, LLC filed for the most recently completed fiscal year

# **STAKEHOLDER ELIGIBILITY**

All, with respect to the issues, any predecessor of the issues, any affiliated issuer, any member, officer, parent or other or managing member of the issuer, any beneficial owner of all persons or more of the issuer's outstanding voting equity securities, any pursuant committal with the issuer in any capacity of the firm of a company, any person that is a issuer of the issuer's property or property of a corporation for jurisdiction of suesqueers in connection with a seizure of securities or any general partner, director, officer or managing member of any such solicitor, prior to May 31, 2015.

(1) This are such person (ever convicted), within 12 years (or five years), in the case of reports, then predecessors and affiliates issuing before the filing of this offering statement, of any felony or misstatement:

- in connection with the purchase or sale of any security ☐ Yes ☐ No
- involving the making of any false filing with the Consolidated ☐ Yes ☐ No
- in taking part of the conduct of the business of an independent, limited, direct, municipal employee, investment advisor, funding public or your solicitor of purchasers of securities ☐ Yes ☐ No

- (2) In any such person (where for any public judgment or decree of any court of competent jurisdiction entered within this Form) before the filing of this offering is required by Section 10(2)(b) of the Securities Act that, at the time of filing of this offering statement, contains or erodes such person from engaging or continuing to engage in any conduct or practice:
  - in connection with the purchase or sale of any security ☐ Yes ☐ No
  - involving the making of any false filing with the Consolidated ☐ Yes ☐ No
  - in taking part of the conduct of the business of an independent, limited, direct, municipal employee, investment advisor, funding public or your solicitor of purchasers of securities ☐ Yes ☐ No

(3) In any such person (where for a final review of a statement, the performance of the offer or a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement, a copy of a statement

Commencing Futures Trading Commission on the National Credit Union Administration that:

1. in the time of the filing of this offering document, have the person to be:
   a. responsible and accurately negotiated by such commission, authority, agency or officer? ☐ Yes ☐ No
   b. shopping for the business of securities, insurance or banking? ☐ Yes ☐ No
   c. shopping for foreign securities or credit or to a partner? ☐ Yes ☐ No
2. constitutes a final order based on a violation of any law or regulation that permits, insurers, members of or in the future to conduct, and for which the order was entered within the 10 year period ending on the date of the filing of this offering document? ☐ Yes ☐ No

(4) It also certifies that the information contained in this document is true and correct. It is not a representation of the information contained in this document. It is not a representation of the information contained in this document. It is not a representation of the information contained in this document.

3. In order to maintain such company's registration as a foreign policy, a national securities dealer, investment adviser or funding carrier? ☐ Yes ☐ No
4. In order to maintain such a company's registration as a foreign policy, a national securities dealer, investment adviser or funding carrier? ☐ Yes ☐ No
5. In order to maintain such a company's registration as a foreign policy, a national securities dealer, investment adviser or funding carrier? ☐ Yes ☐ No

(5) It also certifies that the information contained in this document is true and correct. It is not a representation of the information contained in this document. It is not a representation of the information contained in this document.

1. In order to maintain such a company's registration as a foreign policy, a national securities dealer, investment adviser or funding carrier? ☐ Yes ☐ No
2. In order to maintain such a company's registration as a foreign policy, a national securities dealer, investment adviser or funding carrier? ☐ Yes ☐ No

(6) It also certifies that the information contained in this document is true and correct. It is not a representation of the information contained in this document. It is not a representation of the information contained in this document.

☐ Yes ☐ No

(7) The information contained in this document is true and correct. It is not a representation of the information contained in this document. It is not a representation of the information contained in this document.

☐ Yes ☐ No

(8) It also certifies that the information contained in this document is true and correct. It is not a representation of the information contained in this document. It is not a representation of the information contained in this document.

☐ Yes ☐ No

If you would have received "Yes" to any of these questions and the corrections, notes, judgment, entries, statements, questions or fact occurred in their issues after May 15, 2016, then you are NOT eligible to rely on this promotion under Section 4(a)(5) of the Securities Act.

INSTRUCTIONS TO QUESTION 4: If you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check

In order to be required to be a result of the following: (1) the following is a result of the following:

## OTHER MATERIAL INFORMATION

1. In addition to the information contained in this document, the information contained in this document is true and correct.

2. If any other material information presented to investors, and

3. If such further material information, if any, is true for investors to obtain 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 Successer Lead Investor takes the place of the Lead Investor, in which case, the investor has a fine ($) 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 notice on investors' behalf.

The Lead Investor is an experienced investor that is chosen to act in the role of Lead Investor as behalf of Investors that have a Proxy in effect. The Lead Investor will be chosen by the Company and approved by Wafundor Inc. and its 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 put at any time or can be released by Wafundor Inc. for failure or pursuant for 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 Successer Lead Investor who must be approved by Wafundor Inc. The identity of the Successer Lead Investor will be disclosed to investors, and those that have a Proxy in effect can choose to either take 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 SFA. The Lead Investor may receive compensation if, in the future, Wafundor Advisors LLC have a fund ("Fund") for assembled invoices for the purpose of investing in a non-integration (re)ordinating offering of this Company in such an circumstance, the Lead Investor may act as a portfolio manager for that Fund (and as a supervised person of Wafundor 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 shared with those of Investors. It is, however, established to cover certain 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 Wafundor 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 revised during this 5-day period, it will remain in effect.

The 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 center of (1) two (2) years of missing item investment or (3) 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 on 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 4: If you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check, you must pay the deposit or pay agent, and if you have received a check or a check

In the case of the most recent and the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent, the most recent

## ONGOING REPORTING

1. The issue will file a report immediately with the Securities & Exchange Commission, actually and until the report will be written on the sheet.

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

22. Once you have the annual report, you will find on the report's website at:
https://www.yeastlaw.com/ineast

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

1. the letter is required to file reports under Exchange Act Sections 1341 or 1348;
2. the owner has filed at least one annual report and has fewer than 300 holders of record;
3. the owner has filed at least three annual reports and has total assets that do not exceed $30 million;
4. the issuer or another party purchaser or repurchase all of the securities issued pursuant to Section 4(a)(5), including any payment in full of debt securities or any complete redemption of redeemable securities; or the issuer liquidates or disadmits its securities with such law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird
Early Bird SAFE (Simple Agreement for Future Equity)
SPV Subscription Agreement
SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials !

Appendix D: Director & Officer Work History

Allison Davidson
George Clark
Jeffrey Davidson
Michael Tremain

Appendix E: Supporting Documents

the_communications_123515_203127.pdf
2022_Third_A_R_Company_Agreement_CG_Consolidated_LLC_-_As_of_1-10-22.pdf

## Signatures

Institutional circumstances or equivalent of facts constitute federal criminal violations. See 18 U.S.C. 3401

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement - Early Bird
Early Bird SAFE (Simple Agreement for Future Equity)
SPV Subscription Agreement
SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials !

Appendix D: Director & Officer Work History

Allison Davidson
George Clark
Jeffrey Davidson
Michael Tremain

Appendix E: Supporting Documents

the_communications_123515_203127.pdf
2022_Third_A_R_Company_Agreement_CG_Consolidated_LLC_-_As_of_1-10-22.pdf

Pursuant to the requirements of Sections 4(a)(5) and 6(b) 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.

CG Consolidated, LLC

By

Jeff Davidson

Co-Founder & Co-CEO

Pursuant to the requirements of Sections 4(a)(5) and 6(b) 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.

Page name

Page name

Title

Title

Date of issue

Date and year

Date

Michael Tremain

Board Member
5/6/2023

Jeff Davidson

Co-Founder & Co-CEO
5/6/2023

Allison Davidson

Co-Founder and Co-CEO
2/26/2023

Jeff Davidson

Co-Founder & Co-CEO
2/26/2023

Pending Signatures

George F. Hall - gofandings@geco.com
Michael Torson - waceman@geco.com

The Form C must be signed by the person who principal represents a officer or officer in the principal business office, the committee or principal as member of the board of directors or persons performing similar positions.

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

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

INVEST IN CAMP GLADIATOR (CG)

## The Only Turn-key Fitness & Nutrition Platform For Trainers & Consumers

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

HOME INVESTORS

**Michael Tonnan**

PTA's unique 800 and 800 platform (2000) was of the Houston, Texas and building a highly intensive model for fitness. Trainers and Nutrition Leaders to offer their signature family members, 24 members, and 30 through. Training for small groups and services and attention will allow to direct additional programs such as yoga, running, low-mixed, and more. I continue to be very interested with this material to assist them during the lead on reimagining the future of leisure.

Invested $10,000 this round 8
$6,000,000 (overhead)

### Highlights

1. Over $350M Lifetime Revenue
2. 500k Lifetime # of Participants & Over 40M Workouts
3. Launched Online Workouts In Under 30 days & Added 15k+ Members Globally In 60 Days
4. Over 1.5M Online Workouts Views
5. 248% Increase In Launched Trainers In '22 vs. '21
6. 89% Increase In Memberships For December '22 & January '23 vs. December '21 & January '22
7. $10M Was Previously Raised During Series A
8. 5-time Inc. 5000 Honoree From 2013-2021 & Inc. Top 100 Female Founders In 2020

### Our Team

**Ally Davidson** Co-Founder & Co-CEO

Founded two companies and was awarded Ernst & Young Entrepreneur of the Year in 2016 after winning the NBC TV competition, American Gladiators and becoming the Grand Champion in 2008.

**Jeff Davidson** Co-Founder & Co-CEO

As Founder, Member of the Equitable Hall of Fame, and extensive experience as a leader, entrepreneur, and wealth manager.

**Howard Schaffer** CMO

Part of two successful wins, in 2019 Beneplus sold to Entertainment Benefits Group (EBG) and in 2015 Gifers.com was sold to Jiff Davis.

**Matt** SVP of Sales & Operations

20+ years leading Sales and Revenue Ops teams, from start-ups to Fortune 100, $75MM to $450MM, and one successful exit at Hardy in 2021.

**Nico Martinez** CTO

Led the Ticketmaster team who built the $35+ ticket mode platform and reduced Cloud costs for Comcast HDUniversal 5MM from $8MM to $220M/year.

### Pitch

The Only Turn-key Fitness & Nutrition Platform For Trainers & Consumers

1. Hitting Trainers & Coaches Scale (HR) (overheads)
2. Connecting Consumers to programs that work

## The Total Addressable Market Is Exploding

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

FOR FIRST OPPORTUNITY

### Fitness Trainers & Nutrition Coaches Need A Platform To Grow Their Business

They are experts in their field, but they're not great at operations.

Trainers & Coaches Need:

- To Offer a Book Programs, In-Person & Online
- Help Reaching New Customers
- Social Media & Email Expertise
- To Build A Brand From Scratch

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

## Why Trainers & Coaches Choose CG's Platform

CG provides the most comprehensive marketing and business support in the industry.

With CG, Trainers & Coaches Get:

- Technology To Deliver A Sell Programs
- Marketing Tools & Training
- Sales Strategies
- Business Insurance & Support
- A Brand Customers Already ♥

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

FOR SECOND OPPORTUNITY

### Consumers' Fitness & Nutrition Needs Have Changed

They have tried programs that don't work for them.

Consumers Are Tired Of:

- Unused Gym Memberships
- Exercising Alone
- Minimal Guidance
- Diet Fails

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

## Why Consumers Choose CG For Fitness & Nutrition

Consumers want customizable programs with proven results.

With CG, Consumers Get:

- Personalized Modifications
- Hybrid Fitness Options
- Affordable Personal Training
- Sustainable Healthy Habits
- Community & Accountability

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

FOUR MINISTRY TRENDS

### CG Programs

CG has 8 of the 10 top fitness trends for 20231

1. Outdoor Exercise
2. Strength Training
3. Weight Loss Programs
4. Personal Training
5. HIIT (high-intensity interval training)
6. Bodyweight Training
7. Live & On-Demand Online Fitness
8. Health Coaching

HOW IT WORKS

## Trainers Sell Monthly Fitness & Nutrition Memberships

### IN-PERSON TRAINING

- Signature "Camp" Workouts
- CG Strength Training
- Heart & Small Groups
- Customized Pricing

### ONLINE WORKOUTS

- Alcoline, Aconitase On Demand Library
- Live Streaming Workouts
- Starting At $50/Month

### NUTRITION COACHING

- Customized Meal Plans
- Weekly Advisory Lists
- Calorie & Maize Tracking
- Meeting At $25/Month

## Thousands of Trainers, Coaches & Customers Already ♥ CG

### SYSTEM

**$35M+** Lifetime Revenue

### COMPUTER

**1M+** Future Workouts

**900k** Lifetime Revenue

**4,000+** CG Nutrition Partner Since Aug. 2022

### TRAINING & COACHING

**900+** Certified Trainers & Nutrition Coaches

**2,300+** Lab/Minic Acting the School Status

### NUTRITION

**82 NPS Score** 2022 Purchase Score from Public Awareness

**4.4/5** Partner Ruling on Nutrition Coaches on Jan. 2023

## Trainer Testimonials

### CG Trainer

"Beginning a course with CG was exactly what I wanted. I thought she understood and love to improve others. Keep in the best version of myself."

-4000

### CG Trainer

"I've been a CG Trainer for over 3 years, over 20 years, my life must depend on things to me. Time, freedom, and flexibility."

-Roger

## Customer Testimonials

### Fitness & Nutrition Customer Testimonial

"I've been all in, I'm the heartbeat I've ever been. A person smokes your up to stop in another and you'll be the CG is for everyone."

-Drew

### Fitness & Nutrition Customer Testimonial

"I'm a big and a little healthy with CG has been one of the best investments I've made for myself. I continue to be a person to grow."

-Cameron

## No Fitness & Nutrition Platform Directly Competes with CG

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

We believe that Trainers & Coaches are more invested as entrepreneurs with unlimited earning potential.

We're evolving our platform to give them the tools and training to run their own businesses under the CG brand.

-Ally Davidson, Co-Founder & Co-CEO

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

Forward looking projections cannot be guaranteed.

REVENUE MODEL
B2B
We are modeled like Airbnb and Uber for Fitness and Nutrition
Trainers & Coaches Are Independent Contractors
• OS receives 15% - 30% of the sales revenue from monthly fitness and nutrition memberships

REVENUE MODEL
B2C
Fitness & Nutrition Customers Choose Monthly Memberships

| Online Only Workouts | Outdoor & Online Workouts | OS Strength Setting | OS Nutrition Coaching |
| --- | --- | --- | --- |
| Starting At $15/month | Starting At $50/month | Customized Pricing | Starting At $35/month |

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

Forward looking projections cannot be guaranteed.[{"box_2d": [244, 654, 534, 779], "label": "text", "caption": "Field Leadership
Over 70 Years Of Combined Expertise In Fitness & Nutrition

| Team Program | Project Manager | Health Promotion | Health Promotion | Co-Op |
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**Attachment 3:** `document_3.pdf`

**Camp Gladiator I (THE "SPV"),**
a series of **Wefunder SPV, LLC**, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**Camp Gladiator 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 **CG Consolidated, LLC** (the "Company"). By making an investment in the SPV through the **Wefunder website**, I understand and agree to the representations set forth below.

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

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

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

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

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

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

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

# 6. Key Risk Factors

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

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

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

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

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

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

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

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

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

# 7. Compliance With Anti-Money Laundering Laws.

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

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

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

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

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

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

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

# 8. Regulatory Provisions

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

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

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

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

# 9. Miscellaneous Provisions

# 9.1. Indemnification

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

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

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

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

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

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

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

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

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

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

# 9.5. Confidentiality

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV

Camp Gladiator 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 CG
Consolidated, LLC SECURITIES BY Camp Gladiator I, A
SERIES OF WEFUNDER SPV, LLC, A DELAWARE
LIMITED LIABILITY COMPANY

**Type of Security:** Future Equity

**Terms** $100M valuation cap and 20% discount

To view a copy of the contract, please see **Appendix B, Investor Contracts** of
the Form C. The latest Form C or C/A filing be found here:
https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-
TYPE%3DC%2FA+or+FORM-
TYPE%3DC%29+and+CIK%3D0001862481&first=2016

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

**Camp Gladiator I EB (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**Camp Gladiator 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 **CG Consolidated, LLC** (the "Company"). By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

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

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

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

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

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

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

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

# 6. Key Risk Factors

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

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

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

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

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

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

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

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

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

# 7. Compliance With Anti-Money Laundering Laws.

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

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

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

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

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

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

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

# 8. Regulatory Provisions

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

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

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

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

# 9. Miscellaneous Provisions

# 9.1. Indemnification

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

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

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

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

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

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

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

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

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

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

# 9.5. Confidentiality

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV

Camp Gladiator 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 CG
Consolidated, LLC SECURITIES BY Camp Gladiator I
EB. A SERIES OF WEFUNDER SPV, LLC. A
DELAWARE LIMITED LIABILITY COMPANY

**Type of Security:** Future Equity

**Terms** $75M valuation cap and 25% discount

To view a copy of the contract, please see **Appendix B, Investor Contracts** of
the Form C. The latest Form C or C/A filing be found here:
https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-
TYPE%3DC%2FA+or+FORM-
TYPE%3DC%29+and+CIK%3D0001862481&first=2016

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

THIS INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED IN THIS SAFE AND UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

CG Consolidated, LLC

# **SAFE**
(Simple Agreement for Future Equity)

THIS CERTIFIES THAT in exchange for the payment by [INVESTOR NAME] (the "Investor") of [INVESTMENT AMOUNT] (the "Purchase Amount") on or about [EFFECTIVE DATE], CG Consolidated, LLC, a Texas limited liability company (the "Company"), hereby issues to the Investor the right to certain units, subject to the terms described below.

This Safe is one of the forms available at http://ycombinator.com/documents and the Company and the Investor agree that neither one has modified the form, except to fill in blanks and bracketed terms, and remove the requirement to be accredited investor and make the form applicable to a limited liability company.

The "Post-Money Valuation Cap" is $100,000,000

The "Discount Rate" is 80%

See Section 2 for certain additional defined terms.

# 1. Events

(a) Equity Financing. If there is an Equity Financing before the termination of this Safe, on the initial closing of such Equity Financing, this Safe will automatically convert into the number of Safe Preferred Units equal to the Purchase Amount divided by the Conversion Price.

In connection with the automatic conversion of this Safe into Safe Preferred Units, the Investor will execute and deliver to the Company all of the transaction documents related to the Equity Financing, provided, that such documents (i) are the same documents to be entered into with the purchasers of Standard Preferred Units, with appropriate variations for the Safe Preferred Units if applicable, and (ii) have customary exceptions to any drag-along applicable to the Investor, including (without limitation) limited representations, warranties, liability and indemnification obligations for the Investor.

(b) Liquidity Event. If there is a Liquidity Event before the termination of this Safe, this Safe will automatically be entitled (subject to the liquidation priority set forth in Section 1(d) below) to receive a portion of Proceeds, due and payable to the Investor immediately prior to, or concurrent with, the consummation of such Liquidity Event, equal to the greater of (i) the Purchase Amount (the "Cash-Out Amount") or (ii) the amount payable on the number of units of Common Units equal to the Purchase Amount divided by the Liquidity Price (the "Conversion Amount"). If any of the Company's securityholders are given a choice as to the form and amount of Proceeds to be received in a Liquidity Event, the Investor will be given the same choice, provided that the Investor may not choose to receive a form of consideration that the Investor would be ineligible to receive as a result of the Investor's failure to satisfy any requirement or limitation generally applicable to the Company's securityholders, or under any applicable laws.

Notwithstanding the foregoing, in connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce the cash portion of Proceeds payable to the Investor by the amount determined by its board of directors in good faith for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, provided that such reduction (A) does not reduce the total Proceeds payable to such Investor and (B) is applied in the same manner and on a pro rata basis to all securityholders who have equal priority to the Investor under Section 1(d).

In connection with Section 1(b)(i), the Purchase Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with, the consummation of the Liquidity Event. If there are not enough funds to pay (i) holders of units of any series of Preferred Units issued before the date of this instrument ("Senior Preferred Holders") and (ii) the Investor and holders of other Safes (collectively, the "Cash-Out Investors") in full, then all of the Company's available funds will be distributed (i) first to the Senior Preferred Holders and (ii) second with equal priority and pro rata among the Cash-Out Investors in proportion to their Purchase Amounts, and the Cash-Out Investors will automatically receive the number of units of Common Units equal to the remaining unpaid Purchase Amount divided by the Liquidity Price. In connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce, pro rata, the Purchase Amounts payable to the Cash-Out Investors by the amount determined by the Board in good faith to be advisable for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Cash-Out Investors will automatically receive the number of units of Common Units equal to the remaining unpaid Purchase Amount divided by the Liquidity Price.

(c) Dissolution Event. If there is a Dissolution Event before the termination of this Safe, the Investor will automatically be entitled (subject to the liquidation priority set forth in Section 1(d) below) to receive a portion of Proceeds equal to the Cash-Out Amount, due and payable to the Investor immediately prior to the consummation of the Dissolution Event.

(d) Liquidation Priority. In a Liquidity Event or Dissolution Event, this Safe is intended to operate like standard non-participating Preferred Units. The Investor's right to receive its Cash-Out Amount is:

(i) Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into Units);

(ii) On par with payments for other Safes and/or Preferred Units, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Safes and/or Preferred Units, the applicable Proceeds will be distributed pro rata to the Investor and such other Safes and/or Preferred Units in proportion to the full payments that would otherwise be due; and

(iii) Senior to payments for Common Units.

The Investor's right to receive its Conversion Amount is (A) on par with payments for Common Units and other Safes

and/or Preferred Units who are also receiving Conversion Amounts or Proceeds on a similar as-converted to Common Units basis, and (B) junior to payments described in clauses (i) and (ii) above (in the latter case, to the extent such payments are Cash-Out Amounts or similar liquidation preferences).

(e) Termination. This Safe will automatically terminate (without relieving the Company of any obligations arising from a prior breach of or non-compliance with this Safe) immediately following the earliest to occur of: (i) the issuance of Capital Units to the Investor pursuant to the automatic conversion of this Safe under Section 1(a); or (ii) the payment, or setting aside for payment, of amounts due the Investor pursuant to Section 1(b) or Section 1(c).

2. Definitions

"Capital Stock" means the capital stock of the Company, including, without limitation, the "Common Units" and the "Preferred Units."

"Change of Control" means (i) a transaction or series of related transactions in which any "person" or "group" (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for the election of members of the Company's board of directors, (ii) any reorganization, merger or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company.

"Company Capitalization" is calculated as of immediately prior to the Equity Financing and (without double-counting, in each case calculated on an as-converted to Common Units basis):

- Includes all Units issued and outstanding;
- Includes all Converting Securities;
- Includes all (i) issued and outstanding Options and (ii) Promised Options; and
- Includes the Unissued Option Pool, except that any increase to the Unissued Option Pool in connection with the Equity Financing shall only be included to the extent that the number of Promised Options exceeds the Unissued Option Pool prior to such increase.

"Conversion Price" means either: (1) the Safe Price or (2) the Discount Price, whichever calculation results in a greater number of Safe Preferred Units.

"Converting Securities" includes this Safe and other convertible securities issued by the Company, including but not limited to: (i) other Safes; (ii) convertible promissory notes and other convertible debt instruments; and (iii) convertible securities that have the right to convert into Units.

"Direct Listing" means the Company's initial listing of its Common Units (other than Common Units not eligible for resale under Rule 144 under the Securities Act) on a national securities exchange by means of an effective registration statement on Form S-1 filed by the Company with the SEC that registers shares of existing Units of the Company for resale, as approved by the Company's board of directors. For the avoidance of doubt, a Direct Listing shall not be deemed to be an underwritten offering and shall not involve any underwriting services.

"Discount Price" means the price per units of the Standard Preferred Units sold in the Equity Financing multiplied by the Discount Rate.

"Dissolution Event" means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company's creditors or (iii) any other liquidation, dissolution or winding up of the Company (excluding a Liquidity Event), whether voluntary or involuntary.

"Dividend Amount" means, with respect to any date on which the Company pays a dividend on its outstanding Common Units, the amount of such dividend that is paid per share of Common Units multiplied by (x) the Purchase Amount divided by (y) the Liquidity Price (treating the dividend date as a Liquidity Event solely for purposes of calculating such Liquidity Price).

"Equity Financing" means a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Units at a fixed valuation, including but not limited to, a pre-money or post-money valuation.

"Initial Public Offering" means the closing of the Company's first firm commitment underwritten initial public offering of Common Units pursuant to a registration statement filed under the Securities Act.

"Liquidity Capitalization" is calculated as of immediately prior to the Liquidity Event, and (without double-counting, in each case calculated on an as-converted to Common Units basis):

- Includes all Units issued and outstanding;
- Includes all (i) issued and outstanding Options and (ii) to the extent receiving Proceeds, Promised Options;
- Includes all Converting Securities, other than any Safes and other convertible securities (including without limitation of Preferred Units) where the holders of such securities are receiving Cash-Out Amounts or similar liquidation preference payments in lieu of Conversion Amounts or similar "as-converted" payments; and
- Excludes the Unissued Option Pool.

"Liquidity Event" means a Change of Control or an Initial Public Offering.

"Liquidity Price" means the price per unit equal to the Valuation Cap divided by the Liquidity Capitalization.

"Options" includes options, RSUs, SARs, warrants or similar securities, vested or unvested.

"Proceeds" means cash and other assets (including without limitation stock consideration) that are proceeds from the Liquidity Event or the Dissolution Event, as applicable, and legally available for distribution.

"Promised Options" means promised but ungranted Options that are the greater of those (i) promised pursuant to agreements or understandings made prior to the execution of, or in connection with, the term sheet or letter of

intent for the Equity Financing or Liquidity Event, as applicable (or the initial closing of the Equity Financing or consummation of the Liquidity Event, if there is no term sheet or letter of intent), (ii) in the case of an Equity Financing, treated as outstanding Options in the calculation of the Standard Preferred Unit's price per unit, or (iii) in the case of a Liquidity Event, treated as outstanding Options in the calculation of the distribution of the Proceeds.

"Safe" means an instrument containing a future right to Units, similar in form and content to this instrument, purchased by investors for the purpose of funding the Company's business operations. References to "this Safe" mean this specific instrument.

"Safe Preferred Units" means the units of the series of Preferred Units issued to the Investor in an Equity Financing, having the identical rights, privileges, preferences and restrictions as the Standard Preferred Units, other than with respect to: (i) the per unit liquidation preference and the initial conversion price for purposes of price-based anti-dilution protection, which will equal the Conversion Price; and (ii) the basis for any dividend rights, which will be based on the Conversion Price.

"Safe Price" means the price per unit equal to the Post-Money Valuation Cap divided by the Company Capitalization.

"Standard Preferred Units" means the shares of the series of Preferred Units issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

"Unissued Option Pool" means all Units that are reserved, available for future grant and not subject to any outstanding Options or Promised Options (but in the case of a Liquidity Event, only to the extent Proceeds are payable on such Promised Options) under any equity incentive or similar Company plan.

"Units" means the equity interests of the Company, including, without limitation, the "Common Units" and "Preferred Units".

# 3. Company Representations

(a) The Company is a limited liability company duly organized, validly existing and in good standing under the laws of its state of limited liability company (the "Company"), hereby issues to the Investor the right to certain formation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.
(b) The execution, delivery and performance by the Company of this Safe is within the power of the Company and has been duly authorized by all necessary actions on the part of the Company (subject to section 3(d)). This Safe constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To its knowledge, the Company is not in violation of (i) its certificate of formation or operating agreement; (ii) any material statute, rule or regulation applicable to the Company or (iii) any material debt or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.
(c) The performance and consumption of the transactions contemplated by this Safe do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material debt or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien on any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.
(d) No consents or approvals are required in connection with the performance of this Safe, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Units issuable pursuant to Section 1.
(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

# 4. Investor Representations

(a) The Investor has full legal capacity, power and authority to execute and deliver this Safe and to perform its obligations hereunder. This Safe constitutes valid and binding obligation of the Investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.
(b) The Investor has been advised that this Safe and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this Safe and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

# 5. Miscellaneous

(a) Any provision of this Safe may be amended, waived or modified by written consent of the Company and either (i) the Investor or (ii) the majority-in-interest of all then-outstanding Safes with the same "Post-Money Valuation Cap" and "Discount Rate" as this Safe (and Safes lacking one or both of such terms will be considered to be the same with respect to such term(s)), provided that with respect to clause (ii): (A) the Purchase Amount may not be amended, waived or modified in this manner; (B) the consent of the Investor and each holder of such Safes must be solicited (even if not obtained); and (C) such amendment, waiver or modification treats all such holders in the same manner. "Majority-in-interest" refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than 50% of the total Purchase Amount of all of such applicable group of Safes.

(b) Any notice required or permitted by this Safe will be deemed sufficient when delivered personally or by overnight courier or sent by email to the relevant address listed on their Wefunder account, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party's address listed on their Wefunder account, as subsequently modified by written notice.

(c) The Investor is not entitled, as a holder of this Safe, to vote or be deemed a holder of Units for any purpose other than tax purposes, nor will anything in this Safe be construed to confer on the Investor, as such, any rights of a Company member or rights to vote for the election of directors or on any matter submitted to Company members, or to give or withhold consent to any corporate action or to receive notice of meetings, until units have been issued on the terms described in Section 1. However, if the Company pays a dividend on outstanding shares of Common Units (that is not payable in shares of Common Units) while this Safe is outstanding, the Company will pay the Dividend Amount to the Investor at the same time.

(d) Neither this Safe nor the rights in this Safe are transferable or assignable, by operation of law or otherwise, by either party without the prior written consent of the other, provided, however, that this Safe and/or its rights may be assigned without the Company's consent by the Investor (i) to the Investor's estate, heirs, executors, administrators, guardians and/or successors in the event of Investor's death or disability, or (ii) to any other entity who directly or indirectly, controls, is controlled by or is under common control with the Investor, including, without limitation, any general partner, managing member, officer or director of the Investor, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, the Investor, and provided, further, that the Company may assign this Safe in whole, without the consent of the Investor, in connection with a reorganization to change the Company's domicile or convert the Company into a corporation.

(e) In the event any one or more of the provisions of this Safe is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Safe operate or would prospectively operate to invalidate this Safe, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this Safe and the remaining provisions of this Safe will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.

(f) All rights and obligations hereunder will be governed by the laws of the State of Texas, without regard to the conflicts of law provisions of such jurisdiction.

(g) The parties acknowledge and agree that for United States federal and state income tax purposes this Safe is, and at all times has been, intended to be characterized equity for all income tax purposes of. Accordingly, the parties agree to treat this Safe consistent with the foregoing intent for all United States federal and state income tax purposes (including, without limitation, on their respective tax returns or other informational statements).

*(Signature page follows)*

IN WITNESS WHEREOF, the undersigned have caused this instrument to be duly executed and delivered.

**COMPANY:**

CG Consolidated, LLC

By: *Founder Signature*

Name:

Title:

**INVESTOR:**

[INVESTOR NAME]

By: *Investor Signature*

Name: [INVESTOR NAME]

Title:

☐ Accredited Investor
☐ Unaccredited Investor

**Read and Approved (for IRA use only)**

By:

Name:

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

THIS INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED IN THIS SAFE AND UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

CG Consolidated, LLC

# **SAFE**
**(Simple Agreement for Future Equity)**

THIS CERTIFIES THAT in exchange for the payment by [INVESTOR NAME] (the "Investor") of [INVESTMENT AMOUNT] (the "Purchase Amount") on or about [EFFECTIVE DATE], CG Consolidated, LLC, a Texas limited liability company (the "Company"), hereby issues to the Investor the right to certain units, subject to the terms described below.

This Safe is one of the forms available at http://ycombinator.com/documents and the Company and the Investor agree that neither one has modified the form, except to fill in blanks and bracketed terms, and remove the requirement to be accredited investor and make the form applicable to a limited liability company.

The "Post-Money Valuation Cap" is $75,000,000

The "Discount Rate" is 75%

See Section 2 for certain additional defined terms.

# 1. Events

(a) Equity Financing. If there is an Equity Financing before the termination of this Safe, on the initial closing of such Equity Financing, this Safe will automatically convert into the number of Safe Preferred Units equal to the Purchase Amount divided by the Conversion Price.

In connection with the automatic conversion of this Safe into Safe Preferred Units, the Investor will execute and deliver to the Company all of the transaction documents related to the Equity Financing, provided, that such documents (i) are the same documents to be entered into with the purchasers of Standard Preferred Units, with appropriate variations for the Safe Preferred Units if applicable, and (ii) have customary exceptions to any drag-along applicable to the Investor, including (without limitation) limited representations, warranties, liability and indemnification obligations for the Investor.

(b) Liquidity Event. If there is a Liquidity Event before the termination of this Safe, this Safe will automatically be entitled (subject to the liquidation priority set forth in Section 1(d) below) to receive a portion of Proceeds, due and payable to the Investor immediately prior to, or concurrent with, the consummation of such Liquidity Event, equal to the greater of (i) the Purchase Amount (the "Cash-Out Amount") or (ii) the amount payable on the number of units of Common Units equal to the Purchase Amount divided by the Liquidity Price (the "Conversion Amount"). If any of the Company's securityholders are given a choice as to the form and amount of Proceeds to be received in a Liquidity Event, the Investor will be given the same choice, provided that the Investor may not choose to receive a form of consideration that the Investor would be ineligible to receive as a result of the Investor's failure to satisfy any requirement or limitation generally applicable to the Company's securityholders, or under any applicable laws.

Notwithstanding the foregoing, in connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce the cash portion of Proceeds payable to the Investor by the amount determined by its board of directors in good faith for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, provided that such reduction (A) does not reduce the total Proceeds payable to such Investor and (B) is applied in the same manner and on a pro rata basis to all securityholders who have equal priority to the Investor under Section 1(d).

In connection with Section 1(b)(i), the Purchase Amount will be due and payable by the Company to the Investor immediately prior to, or concurrent with, the consummation of the Liquidity Event. If there are not enough funds to pay (i) holders of units of any series of Preferred Units issued before the date of this instrument ("Senior Preferred Holders") and (ii) the Investor and holders of other Safes (collectively, the "Cash-Out Investors") in full, then all of the Company's available funds will be distributed (i) first to the Senior Preferred Holders and (ii) second with equal priority and pro rata among the Cash-Out Investors in proportion to their Purchase Amounts, and the Cash-Out Investors will automatically receive the number of units of Common Units equal to the remaining unpaid Purchase Amount divided by the Liquidity Price. In connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce, pro rata, the Purchase Amounts payable to the Cash-Out Investors by the amount determined by the Board in good faith to be advisable for such Change of Control to qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Cash-Out Investors will automatically receive the number of units of Common Units equal to the remaining unpaid Purchase Amount divided by the Liquidity Price.

(c) Dissolution Event. If there is a Dissolution Event before the termination of this Safe, the Investor will automatically be entitled (subject to the liquidation priority set forth in Section 1(d) below) to receive a portion of Proceeds equal to the Cash-Out Amount, due and payable to the Investor immediately prior to the consummation of the Dissolution Event.

(d) Liquidation Priority. In a Liquidity Event or Dissolution Event, this Safe is intended to operate like standard non-participating Preferred Units. The Investor's right to receive its Cash-Out Amount is:

(i) Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into Units);

(ii) On par with payments for other Safes and/or Preferred Units, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Safes and/or Preferred Units, the applicable Proceeds will be distributed pro rata to the Investor and such other Safes and/or Preferred Units in proportion to the full payments that would otherwise be due; and

(iii) Senior to payments for Common Units.

The Investor's right to receive its Conversion Amount is (A) on par with payments for Common Units and other Safes

and/or Preferred Units who are also receiving Conversion Amounts or Proceeds on a similar as-converted to Common Units basis, and (B) junior to payments described in clauses (i) and (ii) above (in the latter case, to the extent such payments are Cash-Out Amounts or similar liquidation preferences).

(e) Termination. This Safe will automatically terminate (without relieving the Company of any obligations arising from a prior breach of or non-compliance with this Safe) immediately following the earliest to occur of: (i) the issuance of Capital Units to the Investor pursuant to the automatic conversion of this Safe under Section 1(a); or (ii) the payment, or setting aside for payment, of amounts due the Investor pursuant to Section 1(b) or Section 1(c).

2. Definitions

"Capital Stock" means the capital stock of the Company, including, without limitation, the "Common Units" and the "Preferred Units."

"Change of Control" means (i) a transaction or series of related transactions in which any "person" or "group" (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of the Company having the right to vote for the election of members of the Company's board of directors, (ii) any reorganization, merger or consolidation of the Company, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of the Company or such other surviving or resulting entity or (iii) a sale, lease or other disposition of all or substantially all of the assets of the Company.

"Company Capitalization" is calculated as of immediately prior to the Equity Financing and (without double-counting, in each case calculated on an as-converted to Common Units basis):

- Includes all Units issued and outstanding;
- Includes all Converting Securities;
- Includes all (i) issued and outstanding Options and (ii) Promised Options; and
- Includes the Unissued Option Pool, except that any increase to the Unissued Option Pool in connection with the Equity Financing shall only be included to the extent that the number of Promised Options exceeds the Unissued Option Pool prior to such increase.

"Conversion Price" means either: (1) the Safe Price or (2) the Discount Price, whichever calculation results in a greater number of Safe Preferred Units.

"Converting Securities" includes this Safe and other convertible securities issued by the Company, including but not limited to: (i) other Safes; (ii) convertible promissory notes and other convertible debt instruments; and (iii) convertible securities that have the right to convert into Units.

"Direct Listing" means the Company's initial listing of its Common Units (other than Common Units not eligible for resale under Rule 144 under the Securities Act) on a national securities exchange by means of an effective registration statement on Form S-1 filed by the Company with the SEC that registers shares of existing Units of the Company for resale, as approved by the Company's board of directors. For the avoidance of doubt, a Direct Listing shall not be deemed to be an underwritten offering and shall not involve any underwriting services.

"Discount Price" means the price per units of the Standard Preferred Units sold in the Equity Financing multiplied by the Discount Rate.

"Dissolution Event" means (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company's creditors or (iii) any other liquidation, dissolution or winding up of the Company (excluding a Liquidity Event), whether voluntary or involuntary.

"Dividend Amount" means, with respect to any date on which the Company pays a dividend on its outstanding Common Units, the amount of such dividend that is paid per share of Common Units multiplied by (x) the Purchase Amount divided by (y) the Liquidity Price (treating the dividend date as a Liquidity Event solely for purposes of calculating such Liquidity Price).

"Equity Financing" means a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells Preferred Units at a fixed valuation, including but not limited to, a pre-money or post-money valuation.

"Initial Public Offering" means the closing of the Company's first firm commitment underwritten initial public offering of Common Units pursuant to a registration statement filed under the Securities Act.

"Liquidity Capitalization" is calculated as of immediately prior to the Liquidity Event, and (without double-counting, in each case calculated on an as-converted to Common Units basis):

- Includes all Units issued and outstanding;
- Includes all (i) issued and outstanding Options and (ii) to the extent receiving Proceeds, Promised Options;
- Includes all Converting Securities, other than any Safes and other convertible securities (including without limitation of Preferred Units) where the holders of such securities are receiving Cash-Out Amounts or similar liquidation preference payments in lieu of Conversion Amounts or similar "as-converted" payments; and
- Excludes the Unissued Option Pool.

"Liquidity Event" means a Change of Control or an Initial Public Offering.

"Liquidity Price" means the price per unit equal to the Valuation Cap divided by the Liquidity Capitalization.

"Options" includes options, RSUs, SARs, warrants or similar securities, vested or unvested.

"Proceeds" means cash and other assets (including without limitation stock consideration) that are proceeds from the Liquidity Event or the Dissolution Event, as applicable, and legally available for distribution.

"Promised Options" means promised but ungranted Options that are the greater of those (i) promised pursuant to agreements or understandings made prior to the execution of, or in connection with, the term sheet or letter of

intent for the Equity Financing or Liquidity Event, as applicable (or the initial closing of the Equity Financing or consummation of the Liquidity Event, if there is no term sheet or letter of intent), (ii) in the case of an Equity Financing, treated as outstanding Options in the calculation of the Standard Preferred Unit's price per unit, or (iii) in the case of a Liquidity Event, treated as outstanding Options in the calculation of the distribution of the Proceeds.

"Safe" means an instrument containing a future right to Units, similar in form and content to this instrument, purchased by investors for the purpose of funding the Company's business operations. References to "this Safe" mean this specific instrument.

"Safe Preferred Units" means the units of the series of Preferred Units issued to the Investor in an Equity Financing, having the identical rights, privileges, preferences and restrictions as the Standard Preferred Units, other than with respect to: (i) the per unit liquidation preference and the initial conversion price for purposes of price-based anti-dilution protection, which will equal the Conversion Price; and (ii) the basis for any dividend rights, which will be based on the Conversion Price.

"Safe Price" means the price per unit equal to the Post-Money Valuation Cap divided by the Company Capitalization.

"Standard Preferred Units" means the shares of the series of Preferred Units issued to the investors investing new money in the Company in connection with the initial closing of the Equity Financing.

"Unissued Option Pool" means all Units that are reserved, available for future grant and not subject to any outstanding Options or Promised Options (but in the case of a Liquidity Event, only to the extent Proceeds are payable on such Promised Options) under any equity incentive or similar Company plan.

"Units" means the equity interests of the Company, including, without limitation, the "Common Units" and "Preferred Units".

# 3. Company Representations

(a) The Company is a limited liability company duly organized, validly existing and in good standing under the laws of its state of limited liability company (the "Company"), hereby issues to the Investor the right to certain formation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.
(b) The execution, delivery and performance by the Company of this Safe is within the power of the Company and has been duly authorized by all necessary actions on the part of the Company (subject to section 3(d)). This Safe constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To its knowledge, the Company is not in violation of (i) its certificate of formation or operating agreement; (ii) any material statute, rule or regulation applicable to the Company or (iii) any material debt or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.
(c) The performance and consumption of the transactions contemplated by this Safe do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material debt or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien on any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.
(d) No consents or approvals are required in connection with the performance of this Safe, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Units issuable pursuant to Section 1.
(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

# 4. Investor Representations

(a) The Investor has full legal capacity, power and authority to execute and deliver this Safe and to perform its obligations hereunder. This Safe constitutes valid and binding obligation of the Investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.
(b) The Investor has been advised that this Safe and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this Safe and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

# 5. Miscellaneous

(a) Any provision of this Safe may be amended, waived or modified by written consent of the Company and either (i) the Investor or (ii) the majority-in-interest of all then-outstanding Safes with the same "Post-Money Valuation Cap" and "Discount Rate" as this Safe (and Safes lacking one or both of such terms will be considered to be the same with respect to such term(s)), provided that with respect to clause (ii): (A) the Purchase Amount may not be amended, waived or modified in this manner; (B) the consent of the Investor and each holder of such Safes must be solicited (even if not obtained); and (C) such amendment, waiver or modification treats all such holders in the same manner. "Majority-in-interest" refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than 50% of the total Purchase Amount of all of such applicable group of Safes.

(b) Any notice required or permitted by this Safe will be deemed sufficient when delivered personally or by overnight courier or sent by email to the relevant address listed on their Wefunder account, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party's address listed on their Wefunder account, as subsequently modified by written notice.

(c) The Investor is not entitled, as a holder of this Safe, to vote or be deemed a holder of Units for any purpose other than tax purposes, nor will anything in this Safe be construed to confer on the Investor, as such, any rights of a Company member or rights to vote for the election of directors or on any matter submitted to Company members, or to give or withhold consent to any corporate action or to receive notice of meetings, until units have been issued on the terms described in Section 1. However, if the Company pays a dividend on outstanding shares of Common Units (that is not payable in shares of Common Units) while this Safe is outstanding, the Company will pay the Dividend Amount to the Investor at the same time.

(d) Neither this Safe nor the rights in this Safe are transferable or assignable, by operation of law or otherwise, by either party without the prior written consent of the other, provided, however, that this Safe and/or its rights may be assigned without the Company's consent by the Investor (i) to the Investor's estate, heirs, executors, administrators, guardians and/or successors in the event of Investor's death or disability, or (ii) to any other entity who directly or indirectly, controls, is controlled by or is under common control with the Investor, including, without limitation, any general partner, managing member, officer or director of the Investor, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, the Investor, and provided, further, that the Company may assign this Safe in whole, without the consent of the Investor, in connection with a reorganization to change the Company's domicile or convert the Company into a corporation.

(e) In the event any one or more of the provisions of this Safe is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Safe operate or would prospectively operate to invalidate this Safe, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this Safe and the remaining provisions of this Safe will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.

(f) All rights and obligations hereunder will be governed by the laws of the State of Texas, without regard to the conflicts of law provisions of such jurisdiction.

(g) The parties acknowledge and agree that for United States federal and state income tax purposes this Safe is, and at all times has been, intended to be characterized equity for all income tax purposes of. Accordingly, the parties agree to treat this Safe consistent with the foregoing intent for all United States federal and state income tax purposes (including, without limitation, on their respective tax returns or other informational statements).

*(Signature page follows)*

IN WITNESS WHEREOF, the undersigned have caused this instrument to be duly executed and delivered.

**COMPANY:**

CG Consolidated, LLC

By: *Founder Signature*

Name:

Title:

**INVESTOR:**

[INVESTOR NAME]

By: *Investor Signature*

Name: [INVESTOR NAME]

Title:

☐ Accredited Investor
☐ Unaccredited Investor

**Read and Approved (for IRA use only)**

By:

Name:

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

# **CG Consolidated, LLC and Subsidiaries**

Consolidated Financial Statements

December 31, 2021 and 2020

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

# TABLE OF CONTENTS

|  | Page No. |
| --- | --- |
| Independent Auditor's Report | 1 - 2 |
| Consolidated Balance Sheets | 3 |
| Consolidated Statements of Operations | 4 |
| Consolidated Statements of Changes in Members' Equity | 5 |
| Consolidated Statements of Cash Flows | 6 - 7 |
| Notes to Consolidated Financial Statements | 8 - 20 |

armanino

# INDEPENDENT AUDITOR'S REPORT

To the Members and Management of
CG Consolidated, LLC
Austin, Texas

# Opinion

We have audited the accompanying consolidated financial statements of CG Consolidated, LLC (a Texas limited liability company) and Subsidiaries (the "Company"), which comprise the consolidated balance sheet as of December 31, 2021, and the related consolidated statements of operations, changes in members' equity, and cash flows for the year then ended, and the related notes to the consolidated financial statements.

In our opinion, the 2021 consolidated financial statements referred to above present fairly, in all material respects, the financial position of CG Consolidated, LLC and Subsidiaries as of December 31, 2021, and the results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

# Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of CG Consolidated, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

# Prior Period Financial Statements

The consolidated financial statements as of December 31, 2020, were audited by Holtzman Partners, LLP, whose practice became part of Armanino LLP as of January 1, 2022, and whose report dated March 26, 2021, expressed an unmodified opinion on those statements.

# Responsibilities of Management for the Financial Statements

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

[LOGO]

MOORE

An independent firm
associated with Moore
Global Network Limited

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about CG Consolidated, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

### **Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America, we:

- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of CG Consolidated, LLC's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about CG Consolidated, LLC's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Armanino LLP
Austin, Texas

April 1, 2022

2

# CG Consolidated, LLC and Subsidiaries  
 Consolidated Balance Sheets  
 December 31, 2021 and 2020

|  | 2021 | 2020 |
| --- | --- | --- |
| ASSETS |  |  |
| Current assets |  |  |
| Cash and cash equivalents | $7,629,012 | $4,913,713 |
| Inventory, net | 1,082,090 | 745,175 |
| Prepaid expenses and other, inclusive of Employee Retention Tax |  |  |
| Credit in 2021 (see Note 10) | 4,124,640 | 1,183,774 |
| Total current assets | 12,835,742 | 6,842,662 |
| Property and equipment, net | 1,050,441 | 1,417,523 |
| Other assets | 190,904 | 1,075,593 |
| Total assets | $14,077,087 | $9,335,778 |
| LIABILITIES AND MEMBERS' EQUITY |  |  |
| Current liabilities |  |  |
| Accounts payable | $724,381 | $865,851 |
| Accrued expenses | 1,615,479 | 1,567,982 |
| Accrued independent trainer fees | 917,426 | 928,959 |
| Deferred revenue | 1,311,948 | 1,485,146 |
| Notes payable, current portion | 730,895 | 896,259 |
| Total current liabilities | 5,300,129 | 5,744,197 |
| Deferred rent, net of current portion | 94,877 | 138,592 |
| Notes payable, net of current portion and discount | 375,442 | 579,111 |
| Accrued future distribution right | 1,952,021 | - |
| Total liabilities | 7,722,469 | 6,461,900 |
| Members' equity | 6,354,618 | 2,873,878 |
| Total liabilities and members' equity | $14,077,087 | $9,335,778 |

The accompanying notes are an integral part of these consolidated financial statements.

3

# CG Consolidated, LLC and Subsidiaries  
 Consolidated Statements of Operations  
 For the Years Ended December 31, 2021 and 2020

|  | 2021 | 2020 |
| --- | --- | --- |
| Revenues | $53,223,084 | $59,095,865 |
| Cost of revenues | 37,758,580 | 41,762,490 |
| Gross profit | 15,464,504 | 17,333,375 |
| Operating expenses |  |  |
| Sales and marketing | 7,270,351 | 5,885,323 |
| General and administrative | 6,740,533 | 6,571,652 |
| Research and development | 4,273,841 | 3,225,578 |
| Total operating expenses | 18,284,725 | 15,682,553 |
| Income (loss) from operations | (2,820,221) | 1,650,822 |
| Other income |  |  |
| Interest income and other | 283,040 | 291,997 |
| Forgiveness of Paycheck Protection Program loan | - | 1,002,300 |
| Interest expense and other | (255,319) | (126,760) |
| Gain from Employee Retention Tax Credit | 2,000,155 | - |
| Total other income | 2,027,876 | 1,167,537 |
| Income (loss) before provision for income taxes | (792,345) | 2,818,359 |
| Income taxes | 182,942 | 264,602 |
| Net income (loss) | $(975,287) | $2,553,757 |

The accompanying notes are an integral part of these consolidated financial statements.

4

# CG Consolidated, LLC and Subsidiaries
Consolidated Statements of Changes in Members' Equity
For the Years Ended December 31, 2021 and 2020

|  | Class A Common Units |  | Series A Preferred Units |  | Total |
| --- | --- | --- | --- | --- | --- |
|  | Units | Amount | Units | Amount |  |
| Balance, January 1, 2020 | - | $1,566,121 | - | $ - | $1,566,121 |
| Distributions | - | (1,246,000) | - | - | (1,246,000) |
| Net income | - | 2,553,757 | - | - | 2,553,757 |
| Balance, December 31, 2020 | - | 2,873,878 | - | - | 2,873,878 |
| Distributions | - | (300,000) | - | - | (300,000) |
| Issuance of Common Units upon capital restructuring | 65,000,000 | - | - | - | - |
| Issuance of Series A Preferred Units, net of Issuance costs of $977,952 | - | - | 9,860,000 | 8,882,048 | 8,882,048 |
| Accretion of future distribution right | - | - | - | (1,952,021) | (1,952,021) |
| Repurchase of common units | (2,174,000) | (2,174,000) | - | - | (2,174,000) |
| Net loss | - | (399,878) | - | (575,409) | (975,287) |
| Balance, December 31, 2021 | 62,826,000 | $ - | 9,860,000 | $6,354,618 | $6,354,618 |

The accompanying notes are an integral part of these consolidated financial statements.

5

# CG Consolidated, LLC and Subsidiaries  
 Consolidated Statements of Cash Flows  
 For the Years Ended December 31, 2021 and 2020

|  | 2021 | 2020 |
| --- | --- | --- |
| Cash flows from operating activities |  |  |
| Net income (loss) | $(975,287) | $2,553,757 |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |  |  |
| Depreciation and amortization expense | 414,407 | 433,496 |
| Amortization of debt discount | 27,578 | 27,578 |
| Gain on forgiveness of PPP loan | - | (1,002,300) |
| Changes in operating assets and liabilities |  |  |
| Inventory | (336,915) | (48,293) |
| Prepaid expenses and other, inclusive of Employee Retention Tax Credit in 2021 (see Note 10) | (2,940,866) | (513,902) |
| Other assets | 884,689 | (1,020,977) |
| Accounts payable | (141,470) | 454,952 |
| Accrued expenses | 47,497 | 14,353 |
| Accrued independent trainer fees | (11,533) | 174,111 |
| Deferred revenue | (173,198) | (337,356) |
| Deferred rent | (43,715) | (34,116) |
| Net cash provided by (used in) operating activities | (3,248,813) | 701,303 |
| Cash flows from investing activities |  |  |
| Purchase of property and equipment | (47,325) | (5,832) |
| Proceeds from sale of property and equipment | - | 5,000 |
| Net cash used in investing activities | (47,325) | (832) |
| Cash flows from financing activities |  |  |
| Member distributions | (300,000) | (1,246,000) |
| Repayment of notes payable | (396,611) | (337,855) |
| Proceeds from issuance of notes payable | - | 996,900 |
| Proceeds from issuance of Series A Preferred Units, net | 8,882,048 | - |
| Repurchase of Common Units | (2,174,000) | - |
| Net cash provided by (used in) financing activities | 6,011,437 | (586,955) |
| Net increase in cash and cash equivalents | 2,715,299 | 113,516 |
| Cash and cash equivalents, beginning of year | 4,913,713 | 4,800,197 |
| Cash and cash equivalents, end of year | $7,629,012 | $4,913,713 |

# Supplemental disclosures of cash flow information

| Cash paid during the year for |  |  |
| --- | --- | --- |
| Interest | $27,480 | $41,761 |
| Taxes, net of refunds | $272,610 | $265,000 |

The accompanying notes are an integral part of these consolidated financial statements.

6

# CG Consolidated, LLC and Subsidiaries  
Consolidated Statements of Cash Flows  
For the Years Ended December 31, 2021 and 2020

|  | 2021 | 2020 |
| --- | --- | --- |
| Supplemental schedule of noncash investing and financing activities |  |  |
| Accretion of future distribution right | $1,952,021 | $ - |

The accompanying notes are an integral part of these consolidated financial statements.

7

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 1. NATURE OF OPERATIONS

CG Consolidated, LLC and its subsidiaries, (collectively, the “Company”), is an outdoor and virtual group-fitness program that offers workouts, typically in a given cycle consisting of multiple weeks (“Camp”). It provides technology, marketing, and administrative support to hundreds of independent contractor and franchisee trainers (“Independent Trainers”) in multiple states and metropolitan markets. Independent Trainers select and operate their outdoor locations, operate virtual workout sessions, choose their workout plans, sell Camp, sell the Company’s membership program (“BOLD”), and other Company products and services including branded athletic gear, and ultimately train Company customers in a group environment. The Company was founded in 2008. As of December 13, 2020, the Company converted its basic independent contractor model into a franchise model. Related to this, in 2020, the Company formed two new subsidiaries: CG Growth Systems, LLC to run franchise operations, and CG IP Holdings, LLC to hold intellectual property (IP) rights for internally developed IP. Effective December 31, 2020, the Company dissolved one of its subsidiaries, CG Trainers, LLC. Effective September 15, 2021, the Company formed the subsidiary CG Training, LLC.

# 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# Basis of accounting and consolidation

The 2020 consolidated financial statements include the accounts of CG Consolidated, LLC, and its wholly owned subsidiaries: CG Nation, LLC (dba Camp Gladiator), CG Growth Systems, LLC, CG IP Holdings, LLC, and CG Trainers, LLC. The 2021 consolidated financial statements include the accounts of CG Consolidated, LLC, and its wholly owned subsidiaries: CG Nation, LLC (dba Camp Gladiator), CG Growth Systems, LLC, CG IP Holdings, LLC, and CG Training, LLC. The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as defined by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). All significant intercompany balances and transactions have been eliminated in consolidation.

# Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

# Cash and cash equivalents

The Company considers all highly liquid investments acquired with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates market value, because of the short maturity of these instruments.

8

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

# Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents. The Company maintains its cash and cash equivalent balances in highly rated financial institutions, which at times may exceed federally insured limits. The Company has not experienced any loss relating to cash and cash equivalents in these accounts. No customer comprised more than 10% of total revenues in 2021 and 2020.

# Fair Value of financial instruments

The Company’s financial instruments consist principally of cash and cash equivalents, accounts payable, accrued expenses and notes payable. The carrying amounts of these financial instruments are considered to approximate their respective fair values due to the short-term nature of such financial instruments. Cash equivalents, measured at fair value on a recurring basis, are categorized based on quoted prices in active markets.

# Inventories

Inventories consist of Camp Gladiator branded exercise clothing, workout mats, and other gear. Inventories are stated at the lower of cost (average cost method) or net realizable value. The Company performs a periodic review of inventory that considers future demand and market conditions. If these conditions are less favorable than forecasted, the Company may be required to record a writedown to net realizable value. An allowance of $148,283 and $9,634 was recorded as of December 31, 2021 and 2020, respectively.

# Property and equipment, net

Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, generally 3 to 10 years. Leasehold improvements are amortized over the shorter of the remaining terms of the respective leases or the remaining useful lives of the improvements. When depreciable assets are sold, retired, or disposed of, the related cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in other income (expense) in the Company’s consolidated statements of operations in the period incurred. Major additions and betterments are capitalized. Repairs, maintenance, and minor replacements that do not materially improve or extend the lives of the respective assets are charged to operating expense as incurred.

9

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

# Long-Lived assets

Long-lived assets, which consist primarily of capitalized software implementation costs, are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if impairment exists. If the asset is determined to be impaired, the impairment loss is measured based on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of carrying value or net realizable value. No indicators of impairment were identified during the years ended December 31, 2021 or 2020.

# Capitalized software development costs

In accordance with the applicable guidance, the Company is required to capitalize specific software development costs, including costs to develop software, including websites, or the software components of its solutions, as well as software programs to be used solely to meet its internal needs, when applicable. The costs incurred in the preliminary stages of development related to research, project planning, training, maintenance, general and administrative activities, and overhead are expensed as incurred. Once an application has reached the application development stage, internal and external costs incurred in the performance of application development stage activities, including costs of materials, services, and payroll and payroll-related costs for employees and third-party consultants, are required to be capitalized, until the software is substantially complete and ready for its intended use. Costs related to post implementation activities, including the design or maintenance of websites, are expensed as incurred. To date, the period between completion of the preliminary project stage and the software being substantially complete and ready for its intended use has been short and software development costs that would have qualified for capitalization during those periods have been insignificant. The Company’s software development costs are included in research and development expense in the accompanying consolidated statements of operations.

ASC 350-40 requires hosting arrangements that are service contracts to follow the guidance for internal-use software to determine which implementation costs can be capitalized. In accordance with ASC 350-40, (i) capitalized implementation costs are classified in the same balance sheet line item as the amounts prepaid for the related hosting arrangement; (ii) amortization of capitalized implementation costs are presented in the same income statement line item as the service fees for the related hosting arrangement; and (iii) cash flows related to capitalized implementation costs are presented within the same category of cash flow activity as the cash flows for the related hosting arrangement (i.e. operating activity).

10

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

# Capitalized software development costs (continued)

As of December 31, 2021 and 2020, the net carrying value of capitalized implementation costs related to hosting arrangements that were incurred during the application development stage was approximately $968,000 and $1.2 million, respectively. These costs related primarily to the implementation by an external party of a new customer relationship management application. Capitalized implementation costs are amortized using the straight-line method over the expected remaining term of the hosting arrangement, which was originally estimated to be 63 months, but was reduced for certain applications subsequent to December 31, 2021. This change has been applied on a prospective basis commencing in 2022. Amortization of capitalized implementation costs for the years ended December 31, 2021 and 2020 was approximately $279,000 and $36,000, respectively, which is included in the same line item in the consolidated statements of operations as the expense for fees for the associated hosting arrangement. Capitalized implementation costs that will be expensed during the succeeding twelve month period are included in Prepaid expenses and other and the remaining portion is included in Other assets in the accompanying consolidated balance sheets.

# Deferred revenue

Deferred revenue consists of prepayments by the Company’s customers for Camp purchases, Camp subscriptions, and unshipped gear merchandise. Deferred revenue for Camp purchases and Camp subscriptions are recognized over the contract periods as the revenue recognition criteria are met. Contract periods are typically either 5 weeks, 6 months, 12 months, or 24 months. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as current deferred revenue and any remaining portion is recorded as noncurrent. As of December 31, 2021 and 2020, all deferred revenue is classified as current.

# Accrued independent trainer fees

The Company contracted with a large number of Independent Trainers, most of whom provide training services to its customers, and effective December 13, 2020 continued to contract with Independent Trainers as franchisees through its subsidiary CG Growth Systems, LLC, in addition to contracting beginning in 2021 with non-franchisee Independent Trainers through its subsidiary CG Training, LLC. Independent Trainers are paid a combination of service fees made up of commissions, location income sharing, and other service fees. Each Independent Trainer is paid approximately every five weeks, and unpaid fees earned by the Independent Trainers as of the end of each accounting period are accrued.

# Shipping and handling costs

Amounts billed to customers related to shipping and handling for sales transactions are included in revenue with corresponding costs recorded in cost of revenues.

11

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

# Cost of revenues

Cost of revenues primarily consists of payments to Independent Trainers, rent at Camp locations, cost of items provided to customers as part of their Camp or membership purchase, cost of merchandise sold, shipping and handling costs, payment processing costs, direct costs related to the customer support team, and the costs relating to executing revenue-generating events for the Company’s customers and Independent Trainers.

# Advertising

The Company expenses advertising costs as incurred. Advertising expenses were $1,447,836 and $1,217,189 for the years ended December 31, 2021 and 2020, respectively, and are included in sales and marketing expenses in the accompanying consolidated statements of operations.

# Sales taxes

The Company records sales and other taxes collected from customers and subsequently remitted to government authorities as increases to cash with a corresponding offset to sales tax payable. The Company removes the sales tax payable balances from the balance sheet as cash is remitted to the tax authority.

# Income taxes

As limited liability companies, the Company and its subsidiaries are not directly liable for federal income taxes. Such taxes are the responsibility of the individual members. Income and losses for tax purposes may differ from the financial statement amounts and may be allocated to the members on a different basis for tax purposes than for financial statement purposes. The members’ equity balances as reflected in the accompanying consolidated financial statements do not necessarily represent the members’ tax basis of their respective interests. The Company is subject to entity-level state franchise tax in the state of Texas and entity-level state franchise and/or income tax in other states that the Company operates within. Expense related to these taxes are reflected in “Income taxes” in the accompanying consolidated statements of operations. Accruals related to these taxes are included in “Accrued expenses” on the accompanying consolidated balance sheets.

12

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

# Recent accounting pronouncements

In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). This standard requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The standard also expands the required quantitative and qualitative disclosures surrounding leases. In July 2018 this standard was updated and improved through ASU 2018-10 and ASU 2018-11. In June 2020, the FASB issued ASU 2020-05, which changed the effective date for entities other than public business entities to annual periods beginning after December 15, 2021. Early adoption is permitted. This standard will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. However, per ASU 2018-11, the Company can elect to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. Management is currently evaluating the effect of these provisions on the Company’s financial position and results of operations.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. In November 2019, the FASB issued ASU 2019-10, which changed the effective date for entities other than public business entities to annual periods beginning after December 15, 2022. Early adoption is permitted. This standard will be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Management is currently evaluating the effect of these provisions on the Company’s financial position and results of operations.

# Reclassifications

Certain prior year balances have been reclassified to conform to current year presentation.

# Subsequent events

Subsequent events have been evaluated through April 1, 2022, which represents the date the financial statements were available to be issued. See specific subsequent events disclosed in Note 11.

13

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 3. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

|  | 2021 | 2020 |
| --- | --- | --- |
| Fitness equipment | $436,913 | $436,913 |
| Furniture and office equipment | 223,360 | 216,471 |
| Vehicle and related equipment | 26,040 | 26,040 |
| Leasehold improvements | 2,217,343 | 2,195,582 |
| Other equipment | 264,328 | 245,653 |
|  | 3,167,984 | 3,120,659 |
| Accumulated depreciation and amortization | (2,117,543) | (1,703,136) |
|  | $1,050,441 | $1,417,523 |

Depreciation expense relating to the Company’s property and equipment was $414,407 and $433,496 for the years ended December 31, 2021 and 2020, respectively, and is included in operating expenses in the accompanying consolidated statements of operations.

# 4. NOTES PAYABLE

On December 1, 2014, the Company entered into a note payable agreement with the landlord of its leased office facilities for a principal amount of $100,000. Principal and interest are payable in equal monthly installments beginning on January 1, 2015. The note payable matured on February 1, 2020 and bore interest at an annual rate of 5.5%. This note payable was paid in full as of December 31, 2020.

In June 2019, the Company entered into a note payable agreement with a financial institution for a principal amount of $850,000. Principal and interest are payable in equal monthly installments beginning on July 10, 2019. The note payable matures on the earlier of June 10, 2024 or on-demand at the request of the lender and bears interest at 5% per annum. Certain equipment of the Company is pledged as collateral for the note payable. The Company is required to meet certain financial and nonfinancial covenants. As of December 31, 2021, the Company was in technical default of certain financial covenants required under this agreement. The lender is in the process of waiving the covenant violation. As of December 31, 2021 and 2020, $490,895 and $656,259 remained outstanding on the note payable, respectively. As the financial institution can demand payment of the note payable at any time, the full outstanding balance on the note payable is presented as a current liability in the accompanying consolidated balance sheets.

14

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 4. NOTES PAYABLE (continued)

In September 2019, the Company entered into a note payable agreement with a member of the Company in the amount of $1,500,000 to repurchase the outstanding Class B Interests, which represented 7.5% of the outstanding interests in the Company. A lump sum of $300,000 was payable within 60 days of closing and the remaining principal and interest are payable in equal monthly installments beginning on October 1, 2019. The note payable matures on September 30, 2024 and contains no stated interest rate. The Company recorded a $140,183 discount on the note using a 5% discount rate, which is amortized to interest expense over the term of the loan. As of December 31, 2021 and 2020, $44,558 and $80,889 of the debt discount was unamortized, respectively, and $660,000 and $900,000 remained outstanding on the note payable, respectively.

The future maturities of the notes payable are as follows:

| Year ending December 31, |  |
| --- | --- |
| 2022 | $730,895 |
| 2023 | 240,000 |
| 2024 | 180,000 |
|  | 1,150,895 |
| Less: debt discount | (44,558) |
|  | $1,106,337 |

# 5. COMMITMENTS AND CONTINGENCIES

The Company leases office facilities under a non-cancellable operating lease expiring in 2024. The term of the lease is considered its initial obligation period, which does not include option periods. The office lease has one optional three-year renewal period, rent holidays, and rent escalation clauses. The Company recognizes expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the lease as deferred rent. The Company also leases Camp locations on a month to month or short-term basis.

The Company subleases a portion of its parking lot to third parties under an agreement that expired in December 2019 and renews on a monthly basis, but has been terminated as of September 30, 2021. The Company also subleases a portion of its office space to a third party under an agreement that expires in August 2022. Sublease income of $34,675 and $2,500 for the years ended December 31, 2021 and 2020, respectively, is included in interest income and other in the accompanying consolidated statements of operations.

Rent expense, net of subleases and inclusive of common area maintenance and real estate taxes, under operating leases included in the results of operations was $401,456 and $406,511 for the years ended December 31, 2021 and 2020, respectively.

15

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 5. COMMITMENTS AND CONTINGENCIES (continued)

The scheduled minimum lease payments under the lease terms are as follows:

# Year ending December 31,

| 2022 | $277,826 |
| --- | --- |
| 2023 | 336,200 |
| 2024 | 230,150 |
|  | $844,176 |

# Litigation

In the normal course of business, the Company may become involved in various lawsuits and legal proceedings. While the ultimate results of these matters cannot be predicted with certainty, management does not expect them to have a material adverse effect on the financial position or results of operations of the Company.

# 6. MEMBERS' EQUITY

The Company agreement outlines the rights and obligations of all members of the Company. All net profits and net losses and all related items of income, gain, loss, deduction and credit are allocated among the members in accordance with their respective percentage interests. In May 2021, the Company reorganized the capital structure of the Company by amending the Company agreement to remove reference to Class A and Class B Members and authorized the issuance of Common Units and Preferred Units as described below.

# Common Units

Effective in May 2021, the Company has authorized for issuance up to 65,000,000 Common Units. In May 2021, all 65,000,000 units were issued to the existing Class A Members. In May and September 2021, 2,000,000 and 174,000 Common Units, respectively, were repurchased by the Company at a price of $1 per unit. As of December 31, 2021, 62,826,000 Common Units were issued and outstanding. The Common Units are subject to certain restrictions as to sale or transfer. The holders of Common Units have the right to one vote for each unit held.

# Preferred Units

The Company has authorized for issuance up to 25,000,000 Series A Preferred Units. In May through December 2021, the Company issued a total of 9,860,000 Series A Preferred Units with an original issue price of $1 per unit for cash proceeds of $9,860,000. The Company had issuance costs of $977,952 associated with this transaction.

16

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 6. MEMBERS' EQUITY (continued)

# Preferred Units (continued)

The Series A Preferred Units have liquidation preferences that entitle these unitholders to receive, as part of a qualifying transaction and prior and in preference to holders of the Company's Common Units, liquidation preference amounts less any aggregate amounts already distributed. The Series A liquidation preference is an amount equal to (i) until the fifth anniversary of the original Series A issue date, 1.5 times the original Series A issue price, (ii) on or after the fifth anniversary of the original Series A issue date, 2 times the original Series A issue price, and (iii) on or after the tenth anniversary of the original Series A issue date, 2.5 times the original Series A issue price. After the Series A liquidation preference is paid, the holders of the Common Units will receive an aggregate amount equal to the product of (a) the unpaid Series A liquidation preference distribution amount and Common Units distribution amount times (b) such Common Unitholders' percentage interest. Thereafter, the holders of the Preferred Units and Common Units will share pro rata in any remaining proceeds, after allocation on a pro rata basis to the Company's Long Term Incentive Plan award holders, in proportion to their relative percentage interests. At December 31, 2021, the Series A Preferred Units had a liquidation preference of $14,790,000.

Holders of the Preferred Units have the right to one vote for each unit held. Following the tenth anniversary of the original issuance of the Series A Preferred Units, on an annual basis during the period May 4th to June 3rd, the holders of a majority of the Series A Preferred Units then outstanding can request that the Company distribute to each holder of Series A Preferred Units an amount equal to such holder's unpaid liquidation preference as discussed above. The distribution would be required to be made within one year from the date the request is made and would not affect the amount of units held. Due to the fact that the distribution can be triggered at the option of the Series A Preferred Unit holders, the Company is accreting the amount of the potential future distribution over a ten year period, which represents the time from the original issuance date to the date of earliest distribution. The amount accreted as of December 31, 2021 is included in Accrued future distribution right on the accompanying consolidated balance sheet.

17

# CG Consolidated, LLC and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2021 and 2020

6. MEMBERS' EQUITY (continued)

Long-term incentive plan

Effective October 15, 2021, the Company adopted the CG Consolidated, LLC Long Term Incentive Plan (the "Plan"). The Plan provides for the issuance of Phantom Equity Units ("PEUs") to employees of the Company. The Company has authorized up to 10,000,000 PEUs for issuance under the Plan. PEUs vest based on years of service according to a four-year vesting schedule, with 25% of the units vesting on each anniversary, unless a different vesting schedule is specified for a given PEU issuance. Following any distributions made to Preferred or Common Unit holders either from available cash, except for tax distributions made to Members or other distributions that are explicitly excluded from Plan participation at the time by the Company's Board of Managers, or distributions made upon a deemed liquidation of the Company as described in the Plan document, the Company shall pay the PEU holders an amount equal to 10% of the total distribution made, and such total distribution includes the distribution to the PEU holders and to the Preferred and Common Unit holders. Individual PEU holders will receive a pro rata portion of that distribution according to their total vested PEUs, relative to the total vested PEUs in the Plan. As the Company does not plan to pay distributions in the near future, nor is a deemed liquidation event probable, no compensation expense has been recorded related to these awards. At December 31, 2021, of the total units authorized, 5,065,000 units were available for issuance under the Plan. As of December 31, 2021, the Company had 4,935,000 PEUs outstanding, of which 4,468,750 were vested based on the contractual vesting schedules.

7. DEFINED CONTRIBUTION PLAN

The Company has a defined contribution retirement plan qualifying under Section 401(k) of the Internal Revenue Code of 1986. Employer contributions to the plan totaled $277,635 and $209,925 for the years ended December 31, 2021 and 2020, respectively.

8. REVENUE RECOGNITION

Revenues are recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company is expected to be entitled to in exchange for those goods or services over the term of the agreement. Executed contracts include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenues are recognized net of discounts and any taxes collected from customers, which are subsequently remitted to governmental authorities.

Revenue is recognized based on the following five-step model in accordance with ASC 606, Revenue from Contracts with Customers:

1. Identification of the contract with a customer
2. Identification of the performance obligations in the contract
3. Determination of the transaction price
4. Allocation of the transaction price to the performance obligations in the contract

18

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 8. REVENUE RECOGNITION (continued)

# 5. Recognition of revenue when, or as, the Company satisfies a performance obligation

The Company derives its revenues from Camp subscriptions, fitness challenges and events, and the sale of merchandise. Camp subscription fees are generally processed on a monthly basis at the beginning of the respective subscription period. Customers simultaneously receive and consume the benefits provided by the Company’s performance of the Camp subscriptions. Therefore, revenue is recognized over the Camp subscription period using a time elapsed measure of progress following receipt of camp subscription fees. Fitness challenge and event revenue is recognized at the point in time when the challenge or event takes place. Merchandise revenue is recognized at the point in time when ownership, risks, and rewards transfer, which is generally when the product is shipped to the customer.

# Disaggregation of revenue from contracts with customers

The following table disaggregates the Company’s revenue based on the timing of satisfaction of performance obligations for the years ended December 31:

# Timing of revenue recognition

|  | 2021 | 2020 |
| --- | --- | --- |
| Performance obligations satisfied over time | $49,388,552 | $55,358,451 |
| Performance obligations satisfied at a point in time | 3,834,532 | 3,737,414 |
|  | $53,223,084 | $59,095,865 |

The Company has determined it does not have significant incremental costs of obtaining or fulfilling contracts with customers. Any costs are recorded within operating expenses as incurred.

19

# CG Consolidated, LLC and Subsidiaries  
Notes to Consolidated Financial Statements  
December 31, 2021 and 2020

# 9. PAYCHECK PROTECTION PROGRAM LOAN

As part of the federal government's response to the economic impacts of COVID-19, in March 2020, the Coronavirus Aid, Relief, and Economic Security Act ('CARES Act') was enacted which, among other measures, provided for the Paycheck Protection Program (PPP) administered by the U.S. Small Business Administration (SBA). On April 17, 2020, the Company received a PPP loan in the amount of $996,900. Amounts due under the PPP loan bear interest at 1% per annum. Initially, monthly payments of principal and interest were deferred for 6 months after the note issuance date, with all unpaid principal and interest due upon maturity on April 17, 2022. On June 5, 2020, the Paycheck Protection Flexibility Act of 2020 (the 'Flexibility Act') was signed into law. The Flexibility Act extended the payment deferral period to either 1) the date that the SBA notifies the borrower of the amount of loan forgiveness or 2) 10 months after the end of the covered period for loan forgiveness, as defined in the PPP loan, if the borrower does not apply for loan forgiveness. The Company applied for forgiveness and notification of forgiveness of the outstanding principal and interest was received on November 16, 2020. Loan forgiveness is reflected in other income in the accompanying consolidated statement of operations.

# 10. EMPLOYEE RETENTION CREDIT

Under the provisions of the CARES Act and the subsequent extension of the CARES Act, the Company was eligible for a refundable employee retention tax credit ('ERC') subject to certain criteria. The ERC provides eligible employers a refundable tax credit against the employer's share of social security taxes. During the year ended December 31, 2021, the Company recognized a $2 million gain from ERC which is reflected in other income in the accompanying consolidated statements of operations. Approximately $608,000 of the credit relates to payroll expenses incurred during the year ended December 31, 2020, however the Company did not qualify for the credit until 2021 which was retroactive back to expenses incurred beginning in March 2020. The Company has filed for refunds of the ERC and the full balance of the credit due to the Company is included in Prepaid expenses and other in the accompanying consolidated balance sheet as of December 31, 2021.

# 11. SUBSEQUENT EVENTS

In January 2022, 350,000 Series A Preferred Units were issued at a price of $1 per unit for total cash proceeds of $350,000. Subsequently, 217,500 Common Units were repurchased by the Company at a price of $1 per unit for a total amount of $217,500.

20

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

2301 W ANDERSON LN #102-108
AUSTIN, TEXAS 78757

# ALLY DAVIDSON

Ally Davidson is a high-energy, fun and passionate leader. Her incredible instinct and mission-driven work has allowed her great success and countless followers. Ally's work is focused on positively impacting lives, and she leads by working with, and through, others to achieve this mission.

## EXECUTIVE EXPERIENCE

### Camp Gladiator - Co-Founder, Co-CEO

Award-winning, national group fitness company that spans over five states. Founded with the mission to positively impact the health, fitness, and ultimately the lives of as many people as possible.

2008 - PRESENT

- Provide visionary leadership for strategic company objectives
- Build and ensure product quality with all locations nationwide
- Oversee product advancement and integration in all markets
- Embody the brand and company values
- Lead long-term planning and management of the Executive Team
- Advance leadership development for Trainers nationally
- Produce a recruiting program for potential Trainer candidates
- Drive Trainer education and onboarding

### CG Victory - Co-Founder

Faith-based, 501c3 nonprofit youth adventure camp with the mission to share the joy of Christ by laughing, loving and living adventurously.

2008 - PRESENT

- Provide vision for the product and ensures it delivers
- Supports the overall direction and goals

## EDUCATION, AWARDS & PROFESSIONAL ASSOCIATIONS

Texas State University - BS/BA Exercise and Sports Science 2006

American Gladiator Grand Champion - 2008

Entrepreneur of the Year - Ernst & Young 2016

Fittest CEO - Austin Fit Magazine 2015

5000 Fastest Growing Companies - INC. 2013-2021

The C12 Group - 2016-PRESENT

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

Contact

www.linkedin.com/in/georgeclark
(LinkedIn)
www.generousgiving.com (Other)
www.ttf.org (Other)
www.houstonchristian.com (Other)

# George Clark

Partner at Gerygone Capital
Houston, Texas, United States

## Experience

Camp Gladiator
Board Member
March 2021 - Present (2 years 1 month)
Houston, Texas, United States

NEW LEAF PUBLISHING GROUP, INC
Chairman
December 2022 - Present (4 months)
Houston, TX

Gerygone Capital
Partner
2018 - Present (5 years)
Houston

Home Interiors
Chairman of the Board
2008 - Present (15 years)
Houston

Generous Giving
Board Member, Former Chairman
2010 - Present (13 years)

The Trinity Forum
Board Member
July 2001 - Present (21 years 9 months)

Freestone Partners
Managing Director
September 2000 - Present (22 years 7 months)

Caladium, LLC
Vice Chairman
June 2008 - 2016 (8 years)

Page 1 of 2

National Christian Foundation of Houston

Board Member

2006 - 2016 (10 years)

Sweet Leaf Tea

Board Member

November 2007 - June 2011 (3 years 8 months)

PBS Lumber

Board Member

August 2006 - August 2008 (2 years 1 month)

Dan Loc Bolt & Gasket

Board Member

2002 - 2007 (5 years)

Houston

Northstar Partners, LLC

Co-Founder

1998 - 2000 (2 years)

Insurance consulting services to the private equity industry.

Custom Chenille Embroidery

Sales

July 1990 - July 1992 (2 years 1 month)

# Education

The University of Texas at Austin

BA, History · (1986 - 1990)

Page 2 of 2

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

Contact

214-563-1190 (Mobile)
jeff@campgladiator.com

www.linkedin.com/in/
jeffdavidson49 (LinkedIn)

Top Skills

Fundraising
Leadership
Recruiting

# Jeff Davidson

Founder & CEO at Camp Gladiator, Hall of Fame Financial Advisor,
4 Time Founder, Texas Longhorn

Austin, Texas, United States

## Summary

Jeff Davidson, alongside his wife Ally, is the Co-Founder and
Co-CEO of Camp Gladiator - one of the fastest growing fitness
companies in the United States. Camp Gladiator was created after
Jeff & Ally participated on the NBC show American Gladiators in
2008 and has grown to over 1,000 team members with locations
across the country. Jeff began his career in finance with Equitable
Advisors and became one of the most distinguished advisors within
the firm, qualifying for Equitable's prestigious Hall of Fame. Jeff and
Ally also founded and co-manage CG Victory, a non-profit kids camp
that operates throughout Texas. Jeff's passion in life is serving
others and fulfilling his life mission of sharing the joy of Christ by
laughing, loving, and living adventurously.

## Experience

Camp Gladiator

Co-Founder & Co-CEO

September 2008 - Present (14 years 7 months)

Austin, Texas

Camp Gladiator is a leader and innovator in the fitness space. CG began as
an outdoor boot camp and has evolved into a full-service fitness platform for
over 1,000 fitness trainers and nutrition coaches. CG is a 9 time qualified
for the Inc 5,000 and is operating in all 50 states and has customers in 16
countries.

CG Victory

Founder & Board Member

June 2008 - Present (14 years 10 months)

Austin, Texas, United States

Jeff, alongside his wife Ally founded the non-profit CG Victory. Over the last
15 years they have grown the organization to serve thousands of youth across
the state of Texas. CG Victory offers Ignite day camp and Legends overnight

Page 1 of 2

camp to kids aged 7-18. The organization is a 501c3 and offers scholarships to at risk youth across the state.

## 49 Financial

Founder

January 2016 - Present (7 years 3 months)

Austin, Tx

After a storied career as an advisor and Executive leader at Equitable, Jeff was one of the founding 5 members of 49 Financial. Jeff worked to develop the vision, brand, and overall business model. 49 Financial quickly became the fastest growing firm within the Equitable before leaving to go independant in 2019.

## Equitable Advisors

Regional Senior Vice President

January 2003 - January 2022 (19 years 1 month)

Austin, TX

Jeff's career at Equitable started as a Financial Advisor where he was an 18 time qualifier to the Million Dollar Round Table and one of the youngest members of their prestigious Hall of Fame. Jeff rose through the ranks becoming Vice President at the age of 26, where he lead the top team in the company. In 2008 Jeff was promoted to Senior Vice President where he partnered in leading the Texas branch to 3 consecutive Gold President's Trophies as the top branch within the firm, ultimately growing the organization to the 11th largest firm of its type in the world (according to GAMA). Jeff retired from Equitable as one of the most decorated producers and managers in company history.

## Flameboyant

Founder and CEO

January 2001 - December 2002 (2 years)

Austin, TX

## Education

The University of Texas at Austin

Bachelor's degree, Engineering Route To Business · (1997 - 2001)

Page 2 of 2

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

Contact

www.linkedin.com/in/michael-tremain-30115b28 (LinkedIn)

Top Skills

Construction

Business Development

HVAC

# Michael Tremain

Managing Partner, Private Equity at Sovereign's Capital

Greater Chattanooga

## Experience

Sovereign's Capital

Managing Partner

September 2019 - Present (3 years 7 months)

United States

Sovereign's Capital is a values-driven private equity firm providing flexible capital solutions to values-driven entrepreneurs leading venture and lower middle market businesses.

TrinRock Capital

Senior Operating Partner and Portfolio CEO

September 2015 - September 2019 (4 years 1 month)

Houston, Texas Area

TrinRock Capital is a boutique private equity firm that makes control investments in manufacturing, distribution and service companies across multiple industries in the lower and middle market. Though we specialize in majority recapitalizations of owner operated and family held businesses, we have a broad range of investment experience that includes start-up ventures, project financings, distressed turnarounds and bankruptcy reorganizations. TrinRock likes to partner with entrepreneurs and operators who possess a deep level of industry expertise and a proven track record of success.

Westbrook Service Corporation

President & CEO

August 2010 - July 2015 (5 years)

Westbrook is a mechanical services and solutions company meeting the HVAC, plumbing, electric and gas needs of residential, commercial and construction customers in Central Florida.

ProSource America

President & CEO

January 2009 - July 2010 (1 year 7 months)

BlueSky Strategic Partners

Partner

Page 1 of 2

January 2008 - December 2008 (1 year)

Spraggins Builder Services

President & CEO

January 2003 - December 2007 (5 years)

BlueSky Ministries

Founder & President

August 2001 - December 2002 (1 year 5 months)

JoePix/PhotoPoint

Founder & President

1999 - 2001 (2 years)

Hard Rock Cafe International

Director, Business Development & Internet

1997 - 1999 (2 years)

The Walt Disney Company - Imagineering

Senior Analyst, New Business Strategy

1994 - 1996 (2 years)

Andersen Consulting

Strategy Analyst

1993 - 1994 (1 year)

## Education

The London School of Economics and Political Science (LSE)

MA, International Political Economy · (1996 - 1997)

University of North Carolina at Chapel Hill

BA, Economics & Political Science · (1989 - 1993)

Page 2 of 2

**Attachment 12:** `document_12.pdf`

12/23/22, 2:27 PM

CAMP GLADIATOR Mail - Heads up on a survey!

[LOGO]

Phil Murray <phil@campgladiator.com></phil@campgladiator.com>

# Heads up on a survey!

1 message

Jeff Davidson <jeff@campgladiator.com>

To: Jeff Davidson <jeff@campgladiator.com>

Bcc: hq@campgladiator.com

Sun, Dec 11, 2022 at 5:59 PM

CG Nation,

We are going to be sending a survey out to campers early this week to gather data on an interesting opportunity we have been given (crowdfunding). See the attached video for more information!

Thank you,

Jeff

--

JEFF DAVIDSON

Co-Founder / Co-CEO

campGladiator.com

This message and ALL attachments are intended only for the use of individual(s) or entity to which it is originally addressed and may contain information which is privileged, confidential, proprietary, or exempt from disclosure under applicable law. Even if you are the intended recipient, you are strictly prohibited from disclosing, distributing, copying or in any way using this message and/or attachments without the expressed written permission of the author. If you have received this communication in error, please notify the sender and destroy and/or delete any copies and any back-ups you may have received.

IMG-3115.MOV
15117K

https://mail.google.com/mail/u/1/?ik=53cf64a7f3&view=pt&search=all&permthid=thread-f%3A1751964131862202219&simpl=msg-f%3A1751964131862202219

1/1

**Attachment 13:** `document_13.pdf`

12/23/22, 2:26 PM

CAMP GLADIATOR Mail - More Info about Crowd Funding

[LOGO]

Phil Murray <phil@campgladiator.com></phil@campgladiator.com>

# More Info about Crowd Funding

1 message

Jeff Davidson <jeff@campgladiator.com>

To: Jeff Davidson <jeff@campgladiator.com>

Bcc: hq@campgladiator.com

Mon, Dec 12, 2022 at 11:07 PM

CG Nation,

A few questions came in today about the video and the survey we are working on, so wanted to provide some more information!

## What is CG's Fundraising history, and do we need to raise more funds in the future?

CG was bootstrapped (financed by Jeff & Ally) from 2008 until 2020, and ran profitably but lean all of those years. After Covid and our pivot to virtual fitness, we realized that raising some capital would be very helpful to improve our infrastructure, could support expansion, and would also be helpful in the event Covid persisted. We set out to raise 25M in funds and got a committed partner in May of 2021. Prior to completing the round, the Delta wave broke out, and we wound up raising around 40% of our target. Jeff & Ally maintained control of the company with a minority partner - Sovereign's Capital. Looking back, while it would have been nice to raise more funds, at that time we were looking to invest mostly in the virtual fitness platform, and that landscape has changed considerably since then. We realized the Covid pandemic needed to fully pass before trying to complete our fundraise and made plans for late 2022 or 2023. As we developed the vision for CG 2.0 earlier this year, we targeted summer of 2023 for our next fundraising round.

## If/When CG raises more funds, what will the investment go towards?

If you attended Next, you saw a lot of detail around our roadmap and plans for the first quarter of 2023. As we covered there, we intend to increase our payout to trainers, improve our tools for trainers, modernize our infrastructure by moving to stripe, and roll-out small group & 1x1. If/when we raise additional funds, our plans are to push our roadmap throughout 2023 into 2024 and continue to improve the tools we provide trainers, support new programs that can be added to the platform, do additional marketing and explore creative new ways to generate leads for our trainers. Basically use every penny to try and make your experience better.

## How is CG's financial position today?

CG is fortunate to be in a good financial position with a strong cash balance. We saw the economic downturn very early in 2022 and reduced our expense structure by around 17% in April. Most other companies have taken similar action since then. As mentioned above, our plan has been to target this year for our next round of funding assuming the climate is decent.

## What is Crowd Funding, and is that like Kick Starter?

Crowd Funding has been around for about a decade, and put simply, it allows people of all backgrounds to have small shares of ownership in a company, and they typically get cool VIP/Owner perks. Kick Starter is used to sell products or raise money to do projects. CG was approached and pitched by WeFunder, who specializes in helping startups as well as established companies and brands do a fundraising round with a combination of lead investors, advocates, customers, and the 1.4 million person WeFunder community. WeFunder was the first, is the largest, and pioneered the space. Check out their FAQ

## Who would our lead investors be?

Jeff & Ally Davidson of course! We believe completely in the vision of 2.0 and would make a sizable investment into the round! There are several other existing investors and prominent individuals that have expressed interest in coming alongside us. Lead investors are expected to invest 100k or more.

## Would Trainers have the ability to participate and own part of CG?

Yes! Trainers, campers, friends, family, advocates, and investors. There will also be separate VIP perks for Trainers that invest. The minimum investment is $100 and companies put a maximum on the total amount raised so it is first come first

https://mail.google.com/mail/u/1/?ik=53cf64a7f3&view=pt&search=all&permthid=thread-f%3A1752074072483200398&simpl=msg-f%3A1752074072483200398

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12/23/22, 2:26 PM

CAMP GLADIATOR Mail - More Info about Crowd Funding

serve. Some companies on WeFunder sell out in a couple weeks... others might run their campaign for 90 days.

### Why not just do a fundraising round like last time with Venture Capital or Private Equity?

We very well may! As mentioned above, our plan was to do a traditional round in the summer of 23 and in early November we were approached by WeFunder with this opportunity in Q1 of next year. As you may have seen, it is a very difficult time to raise money with Private Equity right now with all the layoffs and challenges in financial markets, so we were hoping to get a few months into next year before starting that process.

### So what is this survey all about?

It's pretty simple - WeFunder suggests checking the response from customers before making this process official. If customers are confused or not that excited then it might not make sense. If there is a lot of enthusiasm, it could be a good option. Before getting into the serious discussions our Board has asked us to do the customer survey. We will send you a copy of the email and survey tomorrow.

### When will we decide and when would this happen?

Our goal is to do a full evaluation by the end of December. This includes the survey, interviewing other companies that have done this successfully, and researching competitive platforms. At that point we should have the information to make a decision. We would likely run our campaign in February or March.

### Summary

Given our ambitious goals for improving the platform and doing everything we can to fulfill our mission, it is highly likely CG will conduct another fundraising round at some point in 2023. Crowd Funding may or may not be a good option, but it is at least worth doing a survey and evaluating the results. If we decide to move in this direction, we will let you know well before we go public and will provide you with information and resources to direct campers towards.

We love you guys, and will continue to do everything we can to help each of you be more successful!

Jeff

--
JEFF DAVIDSON
Co-Founder / Co-CEO
campGladiator.com

*This message and ALL attachments are intended only for the use of individual(s) or entity to which it is originally addressed and may contain information which is privileged, confidential, proprietary, or exempt from disclosure under applicable law. Even if you are the intended recipient, you are strictly prohibited from disclosing, distributing, copying or in any way using this message and/or attachments without the expressed written permission of the author. If you have received this communication in error, please notify the sender and destroy and/or delete any copies and any back-ups you may have received.*

https://mail.google.com/mail/u/1/?ik=53cf64a7f3&view=pt&search=all&permthid=thread-f%3A1752074072483200398&simpl=msg-f%3A1752074072483200398

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**Attachment 14:** `document_14.pdf`

12/23/22, 2:22 PM

CAMP GLADIATOR Mail - Fwd: [Test]:Exciting opportunity to invest in CG!

[LOGO]

Phil Murray <phil@campgladiator.com></phil@campgladiator.com>

### Fwd: [Test]:Exciting opportunity to invest in CG!

Jeff Davidson <jeff@campgladiator.com>

To: Jeff Davidson <jeff@campgladiator.com>

Bcc: trainers@campgladiator.com

Tue, Dec 13, 2022 at 3:12 PM

CG Nation,

See below for the email and short survey we plan on sending out. If you are wondering what this is about, see the email I sent late last night with the FAQ's. We are sending this to BOLD campers that have checked in recently, so not everyone will get it. The purpose of this is to determine if this strategy is worth pursuing or not. Thanks!

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

Hi Jeff,

It's an exciting time in our 14-year history!

As you know, CG has grown our platform to include:

- Over 660 weekly, live-streamed Online workouts
- 700 On-Demand video workouts that have received over 1M views
- Over 400 CG Nutrition Coaches serving thousands of members across the country
- 1,000+ independent Trainers operating in 13 states with over 2,000 locations hosting 28,000 workouts each month

The success of these programs has helped us expand our mission for CG to positively impact the health and fitness of as many lives as possible!

Because of our success, we have been approached by the industry-leading company in Crowdfunding with an opportunity to raise capital to accelerate CG's process for launching new programs, as well as expanding and improving our existing programs. For example, our Campers and Trainers have asked for personal training, small group training, yoga, running, low-impact workouts, and youth programs, and we have plans to support these in 2023. With these additional programs,

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CAMP GLADIATOR Mail - Fwd: [Test]:Exciting opportunity to invest in CG!

Trainers would have even more opportunity to build a long-term career in fitness.

### What is Crowdfunding?

Crowdfunding allows anyone and everyone to become an investor and have ownership in a company they believe in. Because Crowdfunding is made up of a large community, you would be able to invest as little as $100, with the option to invest much more. Thousands of companies have used Crowdfunding to launch new programs and products!

### What does this mean for you?

You could share in CG's growth the same way any investor would and with favorable terms. You would be investing* because you believe in CG, our programs, our community, and our future, and you want to be part of our growth and success. We also plan to provide "Ownership Perks" like exclusive Gear.

### Interested in this exciting opportunity?

*Please take our short survey* to get more information! This is not a reservation or commitment. We're curious if you have interest in joining this investment community and learning more.

By responding, you'll be the FIRST to know our plans for the future.

Thank you for making CG what it is today! We are excited to continue growing.

Ally Davidson
Founder & Co-CEO

*Investing in startups is inherently risky, and returns aren't immediate.

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

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

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CAMP GLADIATOR Mail - Fwd: [Test]:Exciting opportunity to invest in CG!

CG Nation LLC dba Camp Gladiator

2301 W Anderson Ln.

Austin, TX 78757, US

You received this email because you are subscribed to Marketing Information from Camp Gladiator.

Update your email preferences to choose the types of emails you receive.

Unsubscribe from all future emails

JEFF DAVIDSON

Co-Founder / Co-CEO

campGladiator.com

This message and ALL attachments are intended only for the use of individual(s) or entity to which it is originally addressed and may contain information which is privileged, confidential, proprietary, or exempt from disclosure under applicable law. Even if you are the intended recipient, you are strictly prohibited from disclosing, distributing, copying or in any way using this message and/or attachments without the expressed written permission of the author. If you have received this communication in error, please notify the sender and destroy and/or delete any copies and any back-ups you may have received.

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## Camp Gladiator Investment Survey

* 1. What's your full name?

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

* 2. What's your email address?

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

* 3. Potential investment amount - this is not a reservation or commitment, only a measure of interest:

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

Done

**Attachment 15:** `document_15.pdf`

# THIRD AMENDED AND RESTATED

COMPANY AGREEMENT

OF

CG CONSOLIDATED, LLC

A TEXAS LIMITED LIABILITY COMPANY

MAY 4, 2021

THE MEMBERSHIP INTERESTS (AS DEFINED HEREIN) GOVERNED BY THIS THIRD AMENDED AND RESTATED COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS. SUCH MEMBERSHIP INTERESTS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND LAWS OR EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER SUBSTANTIAL RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN.

# TABLE OF CONTENTS

| ARTICLE 1 DEFINITIONS AND CONSTRUCTION | 2 |
| --- | --- |
| Section 1.1 Definitions | 2 |
| Section 1.2 Construction | 13 |
| ARTICLE 2 ORGANIZATION | 13 |
| Section 2.1 Continuation | 13 |
| Section 2.2 Name | 13 |
| Section 2.3 Registered Office; Registered Agent; Principal Office; Other Offices | 13 |
| Section 2.4 Purposes | 14 |
| Section 2.5 Foreign Qualification | 14 |
| Section 2.6 Term | 14 |
| Section 2.7 No State Law Partnership | 14 |
| Section 2.8 Title to Company Assets | 14 |
| Section 2.9 Subsidiaries | 14 |
| ARTICLE 3 MEMBERS; UNITS | 15 |
| Section 3.1 Members | 15 |
| Section 3.2 Units | 15 |
| Section 3.3 Preemptive Rights | 17 |
| Section 3.4 No Other Persons Deemed Members | 17 |
| Section 3.5 No Liability of Members | 18 |
| ARTICLE 4 CAPITAL CONTRIBUTIONS | 18 |
| Section 4.1 Capital Contributions | 18 |
| Section 4.2 Return of Capital Contributions | 18 |
| Section 4.3 Advances by Members | 18 |
| Section 4.4 Capital Accounts | 18 |
| ARTICLE 5 DISTRIBUTIONS; ALLOCATIONS | 19 |
| Section 5.1 Regular Distributions | 19 |
| Section 5.2 Tax Distributions | 20 |
| Section 5.3 Allocations of Profits or Losses | 20 |
| Section 5.4 Special Allocations | 20 |
| Section 5.5 Income Tax Allocations | 22 |
| Section 5.6 Other Allocation Rules | 23 |
| Section 5.7 Limitation Upon Distributions | 23 |
| Section 5.8 Withholding Authorized | 23 |
| ARTICLE 6 TRANSFERS | 25 |
| Section 6.1 General Rules | 25 |
| Section 6.2 Permitted Transfers | 25 |
| Section 6.3 Right of First Refusal Provisions | 25 |
| Section 6.4 Co-Sale (Tag-Along) Provisions | 27 |
| Section 6.5 Drag-Along Obligations | 28 |
| Section 6.6 Conditions to Transfers; Continued Applicability of Agreement | 30 |

i

# TABLE OF CONTENTS
(Cont'd)

|  | Page |
| --- | --- |
| Section 6.7 Conversion to a Corporation; Public Offering | 30 |
| Section 6.8 Registration Rights | 32 |
| Section 6.9 Right of First Offer | 32 |
| ARTICLE 7 MANAGEMENT; OFFICERS | 32 |
| Section 7.1 Management by Managers | 32 |
| Section 7.2 Board of Managers | 33 |
| Section 7.3 Meetings of the Members | 37 |
| Section 7.4 Provisions Applicable to All Meetings | 38 |
| Section 7.5 Officers | 39 |
| ARTICLE 8 TEN-YEAR DISTRIBUTION RIGHT | 40 |
| Section 8.1 Ten-Year Distribution Right | 40 |
| Section 8.2 Legally Available Funds | 40 |
| Section 8.3 Catch-Up Payment | 40 |
| ARTICLE 9 ADDITIONAL COVENANTS | 40 |
| Section 9.1 Protective Provisions | 40 |
| Section 9.2 Reports | 41 |
| Section 9.3 Confidentiality | 41 |
| Section 9.4 Fiduciary Duties; Business Opportunities | 42 |
| ARTICLE 10 EXCULPATION AND INDEMNIFICATION | 44 |
| Section 10.1 Exculpation | 44 |
| Section 10.2 Indemnification | 44 |
| Section 10.3 Advance Payment | 45 |
| Section 10.4 Indemnification of Employees and Agents | 45 |
| Section 10.5 Appearance as a Witness | 45 |
| Section 10.6 Nonexclusivity of Rights | 45 |
| ARTICLE 11 TAXES | 46 |
| Section 11.1 Tax Returns | 46 |
| Section 11.2 Tax Partnership | 46 |
| Section 11.3 Tax Elections | 46 |
| Section 11.4 Partnership Representative | 47 |
| ARTICLE 12 DISSOLUTION, WINDING-UP AND TERMINATION | 47 |
| Section 12.1 Dissolution | 47 |
| Section 12.2 Winding-Up and Termination | 47 |
| Section 12.3 Certificate of Cancellation | 49 |
| ARTICLE 13 GENERAL PROVISIONS | 49 |
| Section 13.1 Attorneys' Fees and Expenses | 49 |
| Section 13.2 Books | 49 |
| Section 13.3 Bank Accounts | 49 |

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# TABLE OF CONTENTS
(Cont'd)

|  | Page |
| --- | --- |
| Section 13.4 Notices | 49 |
| Section 13.5 Entire Agreement; Supersedure | 50 |
| Section 13.6 Effect of Waiver or Consent | 50 |
| Section 13.7 Amendment or Restatement | 50 |
| Section 13.8 Binding Effect | 51 |
| Section 13.9 Governing Law; Submission to Jurisdiction | 51 |
| Section 13.10 | 51 |
| Section 13.11 Severability | 52 |
| Section 13.12 Further Assurances | 52 |
| Section 13.13 Waiver of Certain Rights | 53 |
| Section 13.14 Counterparts | 53 |

Schedules:

Schedule 1 Members Holding Preferred Units and Information Related Thereto
Schedule 2 Members Holding Common Units and Information Related Thereto

Exhibits:

Exhibit A Form of Adoption Agreement

iii

# **THIRD AMENDED AND RESTATED  
COMPANY AGREEMENT  
OF  
CG CONSOLIDATED, LLC**

*A Texas Limited Liability Company*

This Third Amended and Restated Company Agreement of CG Consolidated, LLC, a Texas limited liability company (the “*Company*”), dated as of May 4, 2021 (the “*Effective Date*”), is adopted, executed and agreed to, for good and valuable consideration, by the Company and the Members (as defined below).

## BACKGROUND

The Company was formed on December 6, 2016, by the filing of a Certificate of Formation with the Secretary of State of the State of Texas, under the name “CG Consolidated, LLC.”

The Company’s initial Company Agreement was entered into on December 31, 2016, was amended and restated pursuant to the First Amended and Restated Company Agreement entered into effective as of January 1, 2017, and was further amended and restated pursuant to the Second Amended and Restated Company Agreement entered into effective as of September 12, 2019 (the “*Existing Agreement*”).

On the Effective Date, certain of the Members have purchased Series A Preferred Units from the Company (the “*Initial Series A Financing Closing*”) pursuant to the Series A Preferred Unit Purchase Agreement dated as of the Effective Date by and among the Company and such Members (the “*Series A Purchase Agreement*”).

On the Effective Date, the Company repurchased Common Units from certain Members (the “*Initial Founder Repurchase*”) pursuant to the Common Unit Repurchase Agreement dated as of the Effective Date by and among the Company and such Members (the “*Repurchase Agreement*”).

The Company and the Founding Member, as the sole Member of the Company prior to the effectiveness of this Agreement and the transactions contemplated by the Series A Purchase Agreement, and in satisfaction of the condition to the obligations of the Members acquiring Series A Preferred Units pursuant to the terms of the Series A Purchase Agreement, desire to reorganize the capital structure of the Company and set forth the respective interests, rights, powers, authority, duties, responsibilities, liabilities and obligations of the Members with respect to the Company and provide for the management and the conduct of the business and affairs of the Company by amending and restating the Existing Agreement in its entirety as set forth in this Agreement.

## AGREEMENT

In consideration of the foregoing and the covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,

the Company and the Founding Member hereby amend and restate the Existing Agreement in its entirety, and the Company and the Members hereby agree as follows:

## DEFINITIONS AND CONSTRUCTION

### Section 1.1 *Definitions.*

(a) In addition to terms defined in the body of this Agreement, capitalized terms used herein shall have the following meanings:

“*Accounting Firm*” means such national or regional accounting firm as approved by the Board.

“*Adjusted Capital Account*” means the Capital Account maintained for each Member, (i) increased by any amounts that such Member is obligated to restore (or is treated as obligated to restore under Treasury Regulation Sections 1.704-1(b)(2)(ii)(c), 1.704-2(g)(1) and 1.704-2(i)(5)), and (ii) decreased by any amounts described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6) with respect to such Member. The foregoing definition of “Adjusted Capital Account” is intended to comply with the provisions of Treasury Regulation Sections 1.704-1(b)(2)(ii)(d) and 1.704-2 and shall be interpreted consistently therewith.

“*Adoption Agreement*” means an agreement substantially in the form of Exhibit A hereto pursuant to which a Person agrees to be bound by the terms and conditions of this Agreement and agrees that any Units held by such Person shall be subject to the terms and conditions of this Agreement.

“*Affiliate*” of a Person means (i) any Person Controlling, Controlled by or Under Common Control with such Person and/or (ii) with respect to an equityholder the Founding Member, a trust, partnership, limited liability company, corporation or other entity that is (x) for bona fide estate planning purposes, (y) solely for the benefit of such equityholder of the Founding Member, his or her spouse, his or her sibling, parent or one or more of his or her lineal descendants, or any spouse of any of the foregoing, and (z) Controlled by such equityholder of the Founding Member. For the avoidance of doubt, as of the date of this Agreement, the Founding Member is an Affiliate of each Founder for purposes of this Agreement.

“*Agreement*” means this Third Amended and Restated Company Agreement of CG Consolidated, LLC, as amended and/or restated from time to time in accordance with the provisions hereof, including the Exhibits and Schedules hereto.

“*Allocation Period*” means the period (i) commencing on the Effective Date or, for any Allocation Period other than the initial Allocation Period, the first day after the end of the immediately preceding Allocation Period and (ii) ending (A) on the last day of each Fiscal Year, (B) on the day immediately preceding any day on which an adjustment to the Book Value of the Company’s properties pursuant to clauses (ii)(A), (ii)(B), (ii)(C) or (ii)(E) of the definition of Book Value occurs, (C) immediately after any day on which an adjustment to the Book Value of the Company’s properties pursuant to clause (ii)(D) of the definition of Book Value occurs or (D) on any other date determined by the Board.

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“*Assumed Tax Liability*” means, with respect to any Member for each Fiscal Year, the product of (a) the U.S. federal taxable income (other than taxable income incurred in connection with (i) a Deemed Liquidation Event, Dissolution Event or an Initial Public Offering; (ii) the receipt or deemed receipt of a guaranteed payment or capital shift by such Member; or (iii) the forfeiture or repurchase of Membership Interests from such Member or another Member) allocated by the Company to such Member in such Fiscal Year, less the U.S. federal taxable loss allocated by the Company to such Member in such Fiscal Year (disregarding the effect of any deduction under Section 199A of the Code and the deductibility of state and local income taxes for U.S. federal income tax purposes (unless such deductibility is not subject to any limitations)); multiplied by (b) 5% *plus* the highest applicable U.S. federal income tax rate (including any tax rate imposed on “net investment income” by Code Section 1411) applicable to an individual or, if higher, a corporation with respect to the character of U.S. federal taxable income or loss allocated by the Company to such Member (e.g., capital gains or losses, dividends, ordinary income, etc.) with respect to such Fiscal Year.

“*Available Cash*” means all cash, revenues and funds received by the Company from Company operations, less the sum of the following, to the extent paid or set aside by the Company: (i) all principal and interest payments then due on indebtedness of the Company and all other sums paid or due to lenders; (ii) all cash expenditures incurred in the operation of the Company’s business; and (iii) any Reserves.

“*Bipartisan Budget Act*” means Sections 6221 through 6241 of the Code, together with any final or temporary Treasury Regulations, Revenue Rulings and case law interpreting Sections 6221 through 6241 of the Code (and any analogous provision of state or local tax law).

“*Book Value*” means, with respect to any property of the Company, such property’s adjusted basis for U.S. federal income tax purposes, except as follows:

(i) The initial Book Value of any property contributed by a Member to the Company shall be the Fair Market Value of such property as of the date of such contribution;

(ii) The Book Values of all properties shall be adjusted to equal their respective Fair Market Values in connection with (A) the acquisition of an interest or an additional interest in the Company by any new or existing Member in exchange for more than a *de minimis* Capital Contribution to the Company or in exchange for the performance of more than a *de minimis* amount of services to or for the benefit of the Company, (B) the distribution by the Company to a Member of more than a *de minimis* amount of property as consideration for an interest in the Company, (C) the liquidation of the Company within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g)(1), (D) the acquisition of an interest in the Company by any new or existing Member upon the exercise of a non-compensatory option in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(s), or (E) any other event to the extent determined by the Board to be permitted and necessary to properly reflect Book Values

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in accordance with the standards set forth in Treasury Regulation Section 1.704-1(b)(2)(iv)(q); provided, however, that adjustments pursuant to clauses (ii)(A), (ii)(B) and (ii)(D) above shall be made only if the Board determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company. If any non-compensatory options are outstanding upon the occurrence of an event described in clauses (ii)(A) through (ii)(E) above, the Company shall adjust the Book Values of its properties in accordance with Treasury Regulation Sections 1.704-1(b)(2)(iv)(f)(1) and 1.704-1(b)(2)(iv)(h)(2);

(iii) The Book Value of property distributed to a Member shall be adjusted to equal the Fair Market Value of such property as of the date of such distribution; and

(iv) The Book Value of all property shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such property pursuant to Code Section 734(b) (including any such adjustments pursuant to Treasury Regulations Section 1.734-2(b)(1)), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m) and clause (vi) of the definition of Profits and Losses or Section 5.4(h); provided, however, that the Book Value of property shall not be adjusted pursuant to this clause (iv) to the extent that the Board determines that an adjustment pursuant to clause (ii) hereof is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (iv).

If the Book Value of property has been determined or adjusted pursuant to clauses (i), (ii) or (iv) hereof, such Book Value shall thereafter be adjusted by the Depreciation taken into account with respect to such property for purposes of computing Profits, Losses and other items allocated pursuant to Section 5.3 through Section 5.6.

“*Business Day*” means any day other than a Saturday, a Sunday, or a holiday on which national banking associations in Austin, Texas are authorized by Law to close.

“*Capital Account*” means the Capital Account established and maintained for each Member pursuant to Section 4.4.

“*Capital Contribution*” means, with respect to any Member, the amount of money and the initial Book Value of any property (other than money) contributed to the Company by the Member pursuant to Article 4. Any reference in this Agreement to the Capital Contribution of a Member shall include a Capital Contribution of its predecessors in interest to the extent the Capital Contribution was made in respect of the Units transferred to such Member.

“*Certificate*” means the Certificate of Formation of the Company filed with the Texas Secretary of State on December 6, 2016.

“*Code*” means the Internal Revenue Code of 1986.

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“*Common Member*” means any Member holding Common Units.

“*Control*”, including the correlative terms “*Controlling*”, “*Controlled by*” and “*Under Common Control with*”, means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract, trust or otherwise) of a Person. For the purposes of the preceding sentence, control shall be deemed to exist when a Person possesses, directly or indirectly, through one or more intermediaries, (i) in the case of a corporation or other entity (including a limited liability company), more than 50% of the outstanding voting securities thereof having the power to elect a majority of the board of directors or other Persons performing similar functions; or (ii) in the case of a partnership (including a limited partnership), the power to designate the general partner.

“*Covered Audit Adjustment*” means an adjustment to any partnership-related item (within the meaning of Section 6241(2)(B) of the Code) to the extent such adjustment results in an “imputed underpayment” as described in Section 6225(b) of the Code or any analogous provision of state or local law.

“*Deemed Liquidation Event*” means (i) a merger, consolidation or reorganization of the Company in which the holders of the outstanding Units immediately prior to such transaction will hold less than a majority of the voting power of the surviving or acquiring company’s outstanding Equity Securities immediately after such transaction or (ii) a sale of all or substantially all of the assets of the Company or the exclusive licensing of all or substantially all of the Company’s intellectual property in a single transaction or series of related transactions; *provided*, that the treatment of any transaction or series of related transactions as a Deemed Liquidation Event may be waived with the prior written consent of the Requisite Preferred Holders.

“*Depreciation*” means, for each Allocation Period, an amount equal to the depreciation, amortization or other cost recovery deduction allowable for U.S. federal income tax purposes with respect to property for such Allocation Period, except that (i) with respect to any such property the Book Value of which differs from its adjusted tax basis for U.S. federal income tax purposes and which difference is being eliminated by use of the “remedial method” pursuant to Treasury Regulation Section 1.704-3(d), Depreciation for such Allocation Period shall be the amount of book basis recovered for such Allocation Period under the rules prescribed by Treasury Regulation Section 1.704-3(d)(2), and (ii) with respect to any other such property the Book Value of which differs from its adjusted tax basis for U.S. federal income tax purposes at the beginning of such Allocation Period, Depreciation shall be an amount which bears the same ratio to such beginning Book Value as the U.S. federal income tax depreciation, amortization, or other cost recovery deduction for such Allocation Period bears to such beginning adjusted tax basis; *provided, however*, that, if the adjusted tax basis of any property at the beginning of such Allocation Period is zero dollars ($0.00), Depreciation with respect to such property shall be determined with reference to such beginning value using any reasonable method selected by the Board.

“*Economic Risk of Loss*” has the meaning set forth in Treasury Regulation Section 1.752-2(a).

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“*Eligible Investor*” means a Person (i) who is an accredited investor (as defined under Rule 501 of Regulation D of the Securities Act) or (ii) who demonstrates to the reasonable satisfaction of the Company that the issuance of the applicable Securities to such Person would be exempt from the registration requirements of applicable state and federal securities laws.

“*Equity Securities*” means any Units or similar security, including (i) securities containing equity features and securities containing profit participation features, or any security convertible or exchangeable, with or without consideration, into or for any Units or similar security, or any security carrying any warrant or right to subscribe for or purchase any Units or similar security, or any such warrant or right to subscribe for or purchase shares, interests, participations or other equivalents, and (ii) common shares, preferred shares, membership interests in a limited liability company, limited or general partner interests in a partnership, interests in a trust, interests in joint ventures, interests in other unincorporated organizations or any other equivalent of such ownership interest.

“*Exchange Act*” means the Securities Exchange Act of 1934 and any successor statute, as amended from time to time, and the rules and regulations promulgated by the SEC thereunder.

“*Excluded Issuance*” means any issuance of Units or other Securities by the Company or any of its Subsidiaries, upon Board approval and, if applicable, approval of the Requisite Holders as provided in Section 9.1, (i) as a dividend or distribution on the Units; (ii) by reason of a subdivision or reorganization (by any unit split, unit dividend, combination, recapitalization or otherwise) of the Units; (iii) pursuant to any written profits interest, stock option, stock purchase, stock incentive, stock appreciation right, restricted stock, restricted stock unit or other similar plan or arrangement (including, for the avoidance of doubt, the Incentive Plan) issued in accordance with this Agreement; (iv) to banks, equipment lessors or other financial institutions, or to real property lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction; (v) to third party suppliers or third party service providers in connection with the provision of goods or services; (vi) pursuant to the acquisition of another limited liability company, corporation or other entity by the Company by merger, purchase of substantially all of the assets or other reorganization or business combination; or (vii) in connection with collaboration, license, development, marketing or other similar agreements, including joint ventures, partnerships, strategic alliances or similar transactions.

“*Fair Market Value*” means (i) with respect to a particular security that is traded and reported in the manner and period described in clauses (A) or (B) below, determined on any given day, (A) the last reported sale price regular way or, in case no such reported sale takes place on such day, the average of the last closing bid and asked prices regular way, in either case on the principal national securities exchange on which the applicable securities are listed or admitted to trading, or (B) if not listed or admitted to trading on any national securities exchange, the average of the closing bid and asked prices as furnished by two members of the Financial Industry Regulatory Authority selected from time to time by the Company for that purpose; provided, however, that, notwithstanding anything to the contrary in the foregoing provisions of this clause (i), if the date for which the Fair Market Value is determined is the first day when trading for such security is reported on a national securities exchange, the Fair Market Value shall be the “price to public” or equivalent set forth on the cover page for the final prospectus relating

6

to the initial public offering of such security or (ii) with respect to any property not described in clause (i), the fair market value of such property determined by the Board, in good faith, which determination shall be binding absent fraud. All such determinations shall be equitably adjusted for any subdivision or reorganization of the Units (by any unit splits, unit dividends, combinations, recapitalizations, or otherwise) or similar transactions during such period.

“*Fiscal Year*” means the fiscal year of the Company, which will end on December 31 of each year or on such other date as determined by the Board, in each case only if such year is permitted by the Code as the taxable year of the Company.

“*Founder*” means each of Allison Davidson and Jeffrey Davidson.

“*Founding Member*” means Camp Gladiator, Inc., a Texas corporation, and each Member that holds Units pursuant to a Permitted Transfer from such Person.

“*GAAP*” means United States generally accepted accounting principles and policies as in effect from time to time.

“*Incentive Plan*” means the CG Consolidated 2021 Profit Sharing Plan, the Notice of Grant of Profit Sharing Rights, including the Profit Sharing Rights Agreement, in each case as approved by the Board following the Effective Date (including at least one of the Series A Managers).

“*Initial Public Offering*” means the initial sale of Units pursuant to an effective registration statement under the Securities Act (other than a registration statement on Form S-8, Form S-4 or any successor forms).

“*Involuntary Transfer*” means a Transfer resulting from the death of a Person or another involuntary Transfer ordered by a court of competent jurisdiction (including in connection with a divorce or bankruptcy proceeding).

“*Law*” means any applicable constitutional provision, statute, act, code (including the Code), law, regulation, rule, ordinance, order, decree, ruling, proclamation, resolution, judgment, decision, declaration, or interpretative or advisory opinion or letter of a governmental agency or authority.

“*Majority Interest*” means the Members holding a majority of the issued and outstanding Units.

“*Member*” means any Person executing this Agreement as of the Effective Date or thereafter admitted to the Company as a Member as provided in this Agreement, but such term does not include any Person who has ceased to be a Member in the Company as provided in Section 3.1(c).

“*Member Nonrecourse Debt*” has the meaning assigned to the term “partner nonrecourse debt” in Treasury Regulation Section 1.704-2(b)(4).

7

“*Member Nonrecourse Debt Minimum Gain*” has the meaning assigned to the term “partner nonrecourse debt minimum gain” set forth in Treasury Regulation Section 1.704-2(i)(2).

“*Member Nonrecourse Deduction*” has the meaning assigned to the term “partner nonrecourse deduction” in Treasury Regulation Section 1.704-2(i)(1).

“*Membership Interest*” means the interest of a Member, in its capacity as such, in the Company, including rights to distributions (liquidating or otherwise), allocations, information, and all other rights, benefits and privileges enjoyed by that Member (under the TBOC, the Certificate, this Agreement or otherwise) in its capacity as a Member, and all obligations, duties and liabilities imposed on that Member (under the TBOC, the Certificate, this Agreement, or otherwise) in its capacity as a Member.

“*Minimum Gain*” has the meaning assigned to the term “partnership minimum gain” in Treasury Regulation Sections 1.704-2(b)(2) and 1.704-2(d).

“*Nonrecourse Deduction*” has the meaning assigned to that term in Treasury Regulation Section 1.704-2(b)(1).

“*Partnership Representative*” has the meaning assigned to that term in Section 6223 of the Code and any “designated individual,” if applicable, as defined in the Treasury Regulations promulgated thereunder (including, in each case, any similar capacity or role under relevant state or local law).

“*Percentage Interest*” means, with respect to any Member, the percentage equal to the aggregate number of Common Units and Preferred Units held by such Member divided by the aggregate number of Common Units and Preferred Units held by all of the Members.

“*Permitted Transfer*” means (i) any Involuntary Transfer, (ii) any Transfer to an Affiliate of such Person or (iii) any Transfer by a Member to such Member’s spouse, parent, siblings, descendants (including adoptive relationships and stepchildren) and the spouses of each such Person (“*Family Members*”), or a trust under which such Member and/or Family Members or such Member are the sole beneficiaries, or a charitable remainder trust the income from which will be paid to such Member or Family Members of such Member during their lifetime, or a corporation, partnership or limited liability company, the stockholders, partner or members of which are only such Member and/or Family Members of such Member; *provided* that any such Transfer shall only constitute a Permitted Transfer for so long as the Transferee retains the relationship that caused such Transfer to be a Permitted Transfer and no consideration is actually paid in connection with such Transfer.

“*Person*” means any natural person, limited liability company, corporation, limited partnership, general partnership, joint stock company, joint venture, association, company, trust, bank trust company, land trust, business trust, or other organization, whether or not a legal entity, and any governmental agency or authority.

“*Preferred Member*” means any Member holding Preferred Units.

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“*Profits*” or “*Losses*” means, for each Allocation Period, an amount equal to the Company’s taxable income or loss for such period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments (without duplication):

(i) any income of the Company that is exempt from U.S. federal income tax and not otherwise taken into account in computing Profits and Losses pursuant to this definition of “Profits” or “Losses” shall be added to such taxable income or loss;

(ii) any expenditures of the Company described in Code Section 705(a)(2)(B), or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses pursuant to this definition of “Profits” or “Losses” shall be subtracted from such taxable income or loss;

(iii) in the event the Book Value of any asset is adjusted pursuant to clause (ii) or (iii) of the definition of Book Value, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the Book Value of the asset) or an item of loss (if the adjustment decreases the Book Value of the asset) from the disposition of such asset and shall, except to the extent allocated pursuant to Section 5.4 be taken into account for purposes of computing Profits or Losses, as applicable;

(iv) gain or loss resulting from any disposition of property with respect to which gain or loss is recognized for U.S. federal income tax purposes shall be computed by reference to the Book Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Book Value;

(v) in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Allocation Period;

(vi) to the extent an adjustment to the adjusted tax basis of any asset pursuant to Code Section 734(b) is required, pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Account balances as a result of a distribution other than in liquidation of a Member’s interest in the Company, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or an item of loss (if the adjustment decreases such basis) from the disposition of such asset and shall be taken into account for purposes of computing Profits or Losses, as applicable; and

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(vii) any items that are allocated pursuant to Section 5.4 shall not be taken into account in computing Profits and Losses, but the amounts of the items of income, gain, loss or deduction available to be specially allocated pursuant to Section 5.4 will be determined by applying rules analogous to those set forth in clauses (i) through (vi) above.

"Forced Distribution Election Notice" means a written notice from the Requisite Preferred Holders requesting that the Company distribute the remaining Unpaid Series A Liquidation Preference of the outstanding Series A Preferred Units pursuant to Article 8.

"Qualified Public Offering" means any firm commitment underwritten public offering pursuant to an effective registration statement filed under the Securities Act, or any comparable statement under any similar federal statute then in force, covering the offer and sale of Equity Securities of the Company (or its successor) at a price per unit that is at least three times the Series A Original Issue Price and with aggregate offering proceeds to the Company (or its successor) of at least $50,000,000 (without deducting underwriting discounts, expenses and commissions).

"Requisite Preferred Holders" means the holders of a majority of the Series A Preferred Units then outstanding. If the approval of the Requisite Preferred Holders is required by any provision of this Agreement, such provision shall require the affirmative vote at a meeting or the written consent of the Requisite Preferred Holders, voting or consenting (as the case may be) separately as a series.

"Reserves" means funds set aside or amounts allocated to reserves which shall be maintained in amounts deemed sufficient in the judgment of the Board for working capital and to pay taxes, insurance, debt service or other costs or expenses incident to the ownership or operation of the Company's business.

"SEC" means the Securities and Exchange Commission of the United States.

"Securities" means (a) Equity Securities, (b) debt securities with equity features, (c) securities directly or indirectly exercisable for, or convertible into, Equity Securities or debt securities with equity features or (d) phantom securities or rights whose value fluctuates based upon changes in the value of any of the foregoing, or changes in the terms of any of the foregoing.

"Securities Act" means the Securities Act of 1933 and any successor statute, as amended from time to time, and the rules and regulations promulgated by the SEC thereunder.

"Series A Liquidation Preference" means, with respect to each Series A Preferred Unit, an amount equal to (i) until the fifth anniversary of the Series A Original Issue Date, 1.5 times the Series A Original Issue Price, (ii) on or after the fifth anniversary of the Series A Original Issue Date until the tenth anniversary of the Series A Original Issue Date, 2.0 times the Series A Original Issue Price and (iii) on or after the tenth anniversary of the Series A Original Issue Date, 2.5 times the Series A Original Issue Price.

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“*Series A Original Issue Date*” means the date on which the first Series A Preferred Unit is issued.

“*Series A Original Issue Price*” means $1.00 per Series A Preferred Unit, which shall be equitably adjusted for any subdivision or reorganization of the Units (by any unit splits, unit dividends, combinations, recapitalizations or otherwise) or other similar transactions with respect to such Series A Preferred Units after the issuance of such Series A Preferred Units.

“*Subsidiary*” means (i) any corporation or other entity (including a limited liability company) a majority of the shares or other ownership interests (including membership interests) of which having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions is at the time owned, directly or indirectly, by the Company or any direct or indirect Subsidiary of the Company or (ii) a partnership (including a limited partnership) in which the Company or any direct or indirect Subsidiary of the Company is a general partner.

“*Tax Distribution*” means, with respect to any Member for any Fiscal Year, the excess, if any, of (a) the Assumed Tax Liability of such Member for such Fiscal Year, over (b) the amount of distributions made to such Member pursuant to Section 5.1 during such Fiscal Year.

“*Tax Distribution Date*” means, with respect to each Fiscal Year, the first April 15 following the end of such Fiscal Year.

“*TBOC*” means the Texas Business Organizations Code and any successor statute, as amended from time to time.

“*Transfer*”, including the correlative terms “*Transferring*” or “*Transferred*”, means any direct or indirect transfer, assignment, sale, gift, pledge, hypothecation or other encumbrance, or any other disposition (whether voluntary or involuntary or by operation of law), of Units (or any interest (pecuniary or otherwise) therein or right thereto), including (i) derivative or similar transactions or arrangements whereby a portion or all of the voting or economic interest in, or risk of loss or opportunity for gain with respect to, Units are transferred or shifted to another Person, and (ii) in the case of Units held by any Affiliate of a Person that is a trust, partnership, limited liability company, corporation or other entity, the appointment of a trustee, general partner, managing member or similar action that would result in such Person ceasing to Control such entity.

“*Treasury Regulations*” means final or temporary regulations promulgated by the U.S. Department of the Treasury pursuant to and in respect of provisions of the Code, as they may be amended from time to time.

“*Unpaid Series A Liquidation Preference*” means, with respect to a holder of Series A Preferred Units, as of the time of determination, the excess, if any, of (i) the Series A Liquidation Preference of such holder’s Series A Preferred Units as of such time over (ii) the aggregate amount of prior distributions made by the Company to such holder pursuant to Section 5.1, Section 8.1 and Section 12.2(c)(iii) in respect of such Series A Preferred Units. For

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the avoidance of doubt, in no event shall the Unpaid Series A Liquidation Preference be less than $0.00.

(b) Each of the following terms is defined in the Section set forth opposite such term:

| Term | Section |
| --- | --- |
| Additional Member | Section 3.1(b) |
| Affected Member | Section 4.4(b) |
| authorized person | Section 7.5(a) |
| Board | Section 7.1 |
| Chairman | Section 7.2(a)(iii) |
| Common Managers | Section 7.2(a)(i) |
| Common Units | Section 3.2(a)(i) |
| Company | Preamble |
| Company Notice | Section 6.3(b) |
| Company Offered Units | Section 3.3(a) |
| Damages | Section 10.2 |
| Dissolution Event | Section 12.1(a) |
| Drag-Along Person | Section 6.5(a) |
| Effective Date | Preamble |
| Electing Purchaser | Section 3.3(c) |
| Election Period | Section 3.3(b) |
| Eligible Purchaser | Section 3.3(a) |
| Existing Agreement | Recitals |
| Forced Distribution Date | Section 8.1 |
| Forced Distribution Right | Section 8.1 |
| Former Manager | Section 7.2(b) |
| Initial Members | Section 3.1(a) |
| Initial Founder Repurchase | Recitals |
| Initial Series A Financing Closing | Recitals |
| IPO Recapitalization | Section 6.7(a) |
| IPO Reorganization | Section 6.7(a) |
| Managers | Section 7.1 |
| Negotiation Notice | Section 6.9 |
| Negotiation Period | Section 6.9 |
| Non-Electing Purchaser | Section 3.3(c) |
| Offered Price | Section 6.3(a) |
| Offer Notice | Section 3.3(b) |
| Officers | Section 7.5(a) |
| Overallotment Notice | Section 3.3(c) |
| Participating Member | Section 6.4(a) |
| Payment Date | Section 8.3 |
| Preferred Units | Section 3.2(a)(i) |
| Proceeding | Section 10.2 |
| Proportionate Share | Section 6.3(c) |
| Proposed Co-Sale Transfer | Section 6.4(b) |

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| Term | Section |
| --- | --- |
| Proposed Purchaser | Section 3.3(a) |
| Proposed Transferee | Section 6.3(a) |
| Public Entity | Section 6.7(a) |
| Registrable Securities | Section 6.8 |
| Renounced Business Opportunity | Section 9.4(a) |
| Repurchase Notice | Section 8.3 |
| Requesting Investor | Section 3.3(b) |
| ROFO Best Offer | Section 6.9 |
| Seller | Section 6.3(a) |
| Seller's Notice | Section 6.3(a) |
| Series A Managers | Section 7.2(a)(i) |
| Series A Preferred Units | Section 3.2(b)(i) |
| Series A Purchase Agreement | Recitals |
| Third-Party Buyer | Section 6.5(a) |
| Transfer Units | Section 6.3(a) |
| Units | Section 3.2(a)(i) |

**Section 1.2** *Construction.* Unless the context requires otherwise: (a) the gender (or lack of gender) of all words used in this Agreement includes the masculine, feminine and neuter; (b) references to Articles and Sections are to articles and sections of this Agreement; (c) references to Exhibits and Schedules are to exhibits and schedules attached to this Agreement, each of which is made a part of this Agreement for all purposes; (d) references to money are to legal currency of the United States of America; (e) the word 'or' shall not be exclusive and (f) the word 'including' means 'including without limitation'.

## ORGANIZATION

**Section 2.1** *Continuation.* The rights and obligations of the Members will be determined pursuant to the TBOC and this Agreement. To the extent that there is any conflict or inconsistency between any provision of this Agreement and any non-mandatory provision of the TBOC, the provisions of this Agreement control and take precedence.

**Section 2.2** *Name.* The name of the Company is 'CG Consolidated, LLC', and all Company business must be conducted in that name or such other name or names that comply with Law and as the Board may select.

**Section 2.3** *Registered Office; Registered Agent; Principal Office; Other Offices.* The registered office of the Company required by the TBOC to be maintained in the State of Texas shall be the office of the initial registered agent named in the Certificate or such other office (which need not be a place of business of the Company) as the Board may designate in the manner provided by Law. The registered agent of the Company in the State of Texas shall be the initial registered agent named in the Certificate or such other Person or Persons as the Board may designate in the manner provided by Law. The principal office of the Company shall be at such place as the Board may designate, which need not be in the State of Texas. The Company may have such other offices as the Board may designate.

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Section 2.4 Purposes. The purposes of the Company are to engage in any lawful business or activity which a limited liability company may carry on under the TBOC.

Section 2.5 Foreign Qualification. Prior to the Company's conducting business in any jurisdiction other than the State of Texas, to the extent that the nature of the business conducted requires the Company to qualify as a foreign limited liability company under the Law of that jurisdiction, the Company shall satisfy all requirements necessary to so qualify. At the request of the Company, each Member shall execute, acknowledge, swear to and deliver all certificates and other instruments conforming with this Agreement that are reasonably necessary or appropriate to qualify or continue the Company as a foreign limited liability company in all such jurisdictions in which the Company may conduct business (provided, however, that no Member will be required to file any general consent to service of process or to qualify as a foreign entity in any jurisdiction in which it is not already so qualified), or to cancel or terminate such qualification, and each Member hereby grants each Officer of the Company a limited power-of-attorney to execute any such documents on its behalf.

Section 2.6 Term. The existence of the Company commenced upon the filing of Certificate of Formation with the Secretary of State of the State of Texas on December 6, 2016, and the Company shall have a perpetual existence unless and until dissolved, wound up and terminated in accordance with Article 12.

Section 2.7 No State Law Partnership. The Members do not intend for the Company to be a partnership (including a limited partnership) or joint venture, and no Member shall be a partner or joint venturer of any other Member by reason of this Agreement for any purpose other than for U.S. federal and state income tax purposes, and this Agreement shall not be interpreted to provide otherwise.

Section 2.8 Title to Company Assets. Title to the Company's assets, whether real, personal or mixed and whether tangible or intangible, shall be vested in the Company as an entity, and no Member, Manager or Officer, individually or collectively, shall have any ownership interest in the Company's assets or any portion thereof.

Section 2.9 Subsidiaries. Subject to Section 9.1, the Company may organize and capitalize one or more Subsidiaries, in addition to any Subsidiaries in existence as of the Effective Date, for the purpose of carrying out the purposes of the Company described in Section 2.4. The Officers and Managers shall manage each Subsidiary; provided, however, that, subject to Section 7.2(g) and Section 7.5(c), no Officer or Manager shall be entitled to any fees, including management, performance or incentive fees, by reason of such Officer's or Manager's management of a Subsidiary. The operating results of each Subsidiary shall be aggregated with the operating results of the Company for purposes of determining distributions and allocations pursuant to this Agreement.

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## MEMBERS; UNITS

### Section 3.1 *Members.*

(a) Initial Members. As of the Effective Date, each of the Persons whose name is set forth on Schedule 1 (Members Holding Preferred Units) and Schedule 2 (Members Holding Common Units) (the “*Initial Members*”) was admitted to the Company as a Member upon such Person’s execution and delivery to the Company of this Agreement.

(b) Additional Members. In addition to the Initial Members, the following Persons shall be deemed to be Members and shall be admitted as Members without any further action by the Company, the Board or any Member: (i) any Person to whom Units are Transferred by a Member so long as such Transfer is made in compliance with this Agreement and any other agreements applicable to such Units and (ii) any Person to whom the Company issues Units after the Effective Date so long as such issuance is made in compliance with this Agreement, in each case of clause (i) and (ii), upon such Person’s execution and delivery to the Company of an Adoption Agreement and such other agreements required hereunder or otherwise reasonably required by the Board (each, an “*Additional Member*”). Admission of an Additional Member shall become effective on the date such Person’s name is recorded on the books and records of the Company, at which time Schedule 1 or Schedule 2, as applicable, shall be updated to include each such Additional Member as a Member.

(c) Cessation of Members. Any Person admitted or deemed admitted as a Member pursuant to Section 3.1(a) or Section 3.1(b) shall cease to have the rights of a Member under this Agreement at the time that such Person is no longer a record owner of any Units, but such Person shall remain bound by Section 5.8 and Section 9.3 and by the terms of any other applicable agreements with the Company. A Person may not voluntarily resign as a Member in any other manner prior to a Dissolution Event.

### Section 3.2 *Units.*

(a) Units; Unit Certificates.

(i) The Membership Interests of the Company have been divided into two classes of units referred to as “*Preferred Units*” and “*Common Units*.” The Preferred Units and Common Units are collectively referred to herein as the “*Units*.” To the extent any number of Units is set forth in this Agreement, such number of Units shall be equitably adjusted for any subdivision or reorganization of the Units (by any unit splits, unit dividends, combinations, recapitalizations or otherwise) or similar transactions.

(ii) The Units shall initially be uncertificated. The Board may determine that the Units shall be certificated, in which case the Units shall be represented by certificates in such form as the Board shall from time to time approve, recorded in a register thereof maintained by the Company and subject to rules for the issuance thereof as the Board may from time to time

15

reasonably determine. If a mutilated Unit certificate is surrendered to the Company, or if a Member claims and submits an affidavit or other evidence reasonably satisfactory to the Company to the effect that the Unit certificate has been lost, destroyed or wrongfully taken, the Company shall issue a replacement Unit certificate. If required by the Company, such Member shall, prior to the issuance of such replacement Unit certificate, provide an indemnity bond, or other form of indemnity, sufficient in the reasonable judgment of the Company to protect the Company against any loss which may be suffered. The Company may charge such Member for its reasonable out-of-pocket expenses in replacing a Unit certificate which has been mutilated, lost, destroyed or wrongfully taken.

# (b) Unit Designations; Issuances.

(i) 25,000,000 Preferred Units designated as “*Series A Preferred Units*” are authorized for issuance to the Initial Members. Additional Preferred Units may be authorized for issuance by the Company upon approval of the Board and, if applicable, the Requisite Preferred Holders as provided in Section 9.1, in which event this Agreement shall be amended to include the terms of such additional Preferred Units (such amendment to be approved by the Board and, if applicable, the Requisite Preferred Holders as provided in Section 9.1). As of the Effective Date (after giving effect to the consummation of the Initial Series A Financing Closing), the applicable Initial Members hold a total of 7,600,000 Series A Preferred Units. Schedule 1 sets forth the relative ownership and actual or deemed initial Capital Contributions of the Preferred Members immediately following the consummation of the Initial Series A Financing Closing. Schedule 1 shall be amended from time to time to reflect the names and addresses of the Preferred Members, the aggregate number of each series of Preferred Units held by each such Preferred Member, and the aggregate Capital Contributions of each such Preferred Member.

(ii) 65,000,000 Common Units are authorized for issuance to the Initial Members. Additional Common Units may be authorized for issuance by the Company upon approval of the Board and, if applicable, the Requisite Preferred Holders as provided in Section 9.1. As of the Effective Date (after giving effect to the Initial Founder Repurchase), the applicable Initial Members hold a total of 63,000,000 Common Units. Schedule 2 sets forth the relative ownership and actual or deemed initial Capital Contributions of the Common Members immediately following the Initial Founder Repurchase. Schedule 2 shall be amended from time to time to reflect the names and addresses of the Common Members, the aggregate number of Common Units held by each such Common Member, and the aggregate Capital Contributions of each such Common Member.

(c) Voting Rights. The Members shall have no right to vote on any matter, except as specifically set forth in this Agreement or as may be required under the TBOC. On any

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matter requiring the approval of the members of the Company, each Common Member shall have one (1) vote per Common Unit held of record by such Common Member, and each Preferred Member shall have one (1) vote per Preferred Unit held of record by such Preferred Member. Except as may otherwise be required by Law or as provided in this Agreement, the Common Members and the Preferred Members shall vote together as a single class on all matters requiring the approval of the members of the Company.

### Section 3.3 *Preemptive Rights.*

(a) If the Company or any of its Subsidiaries proposes to issue or sell any additional Units or other Securities, excluding any Excluded Issuance (collectively, the “*Company Offered Units*”), to any Person (the “*Proposed Purchaser*”), each Eligible Investor (each, an “*Eligible Purchaser*”) shall have the right to purchase its Percentage Interest of the Company Offered Units as provided below in Section 3.3(b).

(b) The Company shall give each Eligible Purchaser at least thirty (30) days’ prior written notice of any proposed issuance of Company Offered Units (the “*Offer Notice*”), which notice shall set forth in reasonable detail the proposed price, terms and conditions and timing thereof, and shall offer to each Eligible Purchaser the opportunity to purchase all or any portion of its Percentage Interest (calculated as of the date of such notice) of the Company Offered Units at the same price, on the same terms and conditions and at the same time as the Company Offered Units are proposed to be issued by the Company or the applicable Subsidiary of the Company. If any Eligible Purchaser wishes to exercise its preemptive rights, it must do so by delivering written notice to the Company within thirty (30) days after the receipt of the Offer Notice (the “*Election Period*”). Each Eligible Purchaser’s notice shall state the number of Company Offered Units such Eligible Purchaser (each a “*Requesting Investor*”) would like to purchase up to a maximum amount equal to such Requesting Investor’s Percentage Interest of the Company Offered Units.

(c) Any Company Offered Units that are not purchased by the Eligible Purchasers pursuant to the provisions of this Section 3.3 may be sold by the Company or the applicable Subsidiary of the Company to any other Person without further compliance with the provisions of this Section 3.3 at a price not less than the issuance price described in the relevant Offer Notice and on the same terms and conditions as described in the relevant Offer Notice at any time during the 90-day period following the expiration of the Election Period. Thereafter, the Company and its Subsidiaries shall be required to comply again with the requirements of this Section 3.3 with respect to any issuance of any Company Offered Units.

(d) The rights granted in this Section 3.3 shall terminate upon the consummation of a Qualified Public Offering or a Deemed Liquidation Event.

### Section 3.4 *No Other Persons Deemed Members.*

Unless admitted or deemed admitted to the Company as a Member as provided in this Agreement, no Person (including an assignee of rights with respect to Units or a transferee of Units, whether voluntary, by operation of law or otherwise) shall be, or shall be considered, a Member. The Company may elect to deal only with Persons so admitted as Members (including their duly authorized representatives). Any distribution by the Company to the Person shown on the Company’s records as a Member, or to its legal representatives, shall relieve the Company of all liability to any other Person who may

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have an interest in such distribution by reason of any Transfer by the Member or for any other reason.

**Section 3.5** *No Liability of Members.* Except as otherwise provided under the TBOC, the debts, liabilities, contracts and other obligations of the Company (whether arising in contract, tort or otherwise) shall be solely the debts, liabilities, contracts and other obligations of the Company, and no Member in its capacity as such shall be liable personally (a) for any debts, liabilities, contracts or any other obligations of the Company, except to the extent and under the circumstances set forth in any non-modifiable or non-waivable provision of the TBOC or in any separate written instrument signed by the applicable Member, or (b) for any debts, liabilities, contracts or other obligations of any other Member. No Member shall have any responsibility to contribute to or in respect of the debts, liabilities, contracts or other obligations of the Company or to return distributions made by the Company, except as expressly provided herein or required by any non-modifiable or non-waivable provision of the TBOC.

## CAPITAL CONTRIBUTIONS

**Section 4.1** *Capital Contributions.* As of the Effective Date and after giving effect to the Initial Series A Financing Closing and the Initial Founder Repurchase, each Initial Member has made (or has been deemed to have made) the initial Capital Contributions set forth on Schedule 1 and Schedule 2. No Member has any obligation to make any additional Capital Contribution to the Company.

**Section 4.2** *Return of Capital Contributions.* Except as provided in Article 5, a Member is not entitled to the return of any part of its Capital Contributions or to be paid interest in respect of either its Capital Account or its Capital Contributions. An unrepaid Capital Contribution is not a liability of the Company or of any Member. A Member is not required to contribute or to lend any cash or property to the Company to enable the Company to return any Member's Capital Contributions.

**Section 4.3** *Advances by Members.* Any Member may, with the consent of the Board (including the affirmative approval of at least one (1) of the Series A Managers pursuant to Section 7.2(i)), advance (as a loan and not as a Capital Contribution) monies to or on behalf of the Company on such terms as the Board and such Member mutually agree.

### Section 4.4 *Capital Accounts.*

(a) A separate Capital Account will be established and maintained for each Member in accordance with the requirements of Treasury Regulation Section 1.704-1(b)(2)(iv). Each Member's Capital Account (i) will be increased by: (A) the amount of money contributed by such Member to the Company including, to the extent applicable, pursuant to Section 4.4(b); (B) the initial Book Value of property contributed by such Member to the Company (net of liabilities secured by the contributed property that the Company is considered to assume or take subject to under Section 752 of the Code); (C) allocations to such Member of Profits pursuant to Section 5.3 and any other items of income and gain allocated to such Member pursuant to Section 5.4; and (D) any other increases allowed or required by Treasury Regulation

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Section 1.704-1(b)(2)(iv); and (ii) will be decreased by: (A) the amount of money distributed to such Member by the Company; (B) the Book Value of property distributed to such Member by the Company (net of liabilities secured by such distributed property that such Member is considered to assume or take subject to under Section 752 of the Code); (C) allocations to such Member of Losses pursuant to Section 5.3 and any other items of deduction and loss allocated to such Member pursuant to Section 5.4; and (D) any other decreases allowed or required by Treasury Regulation Section 1.704-1(b)(2)(iv). A Member that has more than one class or series of Units shall have a single Capital Account that reflects all such Units; provided, however, that the Capital Accounts shall be maintained in such manner as will facilitate a determination of the portion of each Capital Account attributable to each class or series of Units.

(b) If any Company Level Tax (i) for purposes of maintaining Capital Accounts and allocating Profits and Losses, is treated as an expense of the Company, and (ii) for purposes of Article 5, relates to one or more Members (each such Member, an “*Affected Member*”) and is recoverable from such Affected Members in accordance with Section 5.8, then to the extent that the Board determines it is appropriate for purposes of properly maintaining Capital Accounts (including by avoiding duplicative reductions thereto), the Company (A) shall allocate the expense with respect to such tax to the Affected Members in accordance with Section 5.4(i), (B) to the extent the Company recovers the Company Level Tax by payment from the Affected Members (whether directly or in repayment of a deemed loan), shall increase the Affected Members’ Capital Accounts by the amount of such payment in accordance with clause 4.4(a)(i)(A) (notwithstanding that, for all other purposes of this Agreement, the amount of such payment shall not be treated as a Capital Contribution and shall not reduce the amount that the Affected Members are otherwise obligated to contribute to the Company), and (C) to the extent the Company recovers the Company Level Tax by reducing the distributions to which the Affected Members would otherwise be entitled to receive, shall not reduce the Capital Account of the Affected Members by the amount of the distributions that were offset (notwithstanding that for purposes of Article 5, the amount of such distributions that were offset will be treated as having been distributed to the Affected Members).

(c) In the event of a permitted Transfer of a Membership Interest, the Capital Account of the transferor shall become the Capital Account of the transferee to the extent it relates to the Transferred Membership Interest in accordance with Section 1.704-1(b)(2)(iv)(I) of the Treasury Regulations.

(d) Except as otherwise required by the TBOC, no Member shall have any liability to restore all or any portion of a deficit balance in such Member’s Capital Account.

## **ARTICLE 5 DISTRIBUTIONS; ALLOCATIONS**

### Section 5.1 Regular Distributions.

(a) Subject to Section 5.2, Article 8 and Section 12.2(c), Available Cash and other property shall be distributed to the Members solely at such times and in such amounts as shall be approved by the Board; provided, however, that any Available Cash arising out of a Deemed Liquidation Event shall be distributed in accordance with Section 12.2(c)(iii). The

19

cumulative amount of Available Cash and, if applicable, such other property determined by the approval of the Board to be available for distribution under this Section 5.1 shall be distributed to the Preferred Members and Common Members pro rata in proportion to their relative Percentage Interests (determined as of the date of the distribution).

**Section 5.2 Tax Distributions.** Notwithstanding anything to the contrary in this Article 5, the Company shall, subject to the availability of Available Cash, make cash distributions to each Member on the Tax Distribution Date with respect to each Fiscal Year to the extent of the required Tax Distribution, if any, of such Member for such Fiscal Year; *provided, however*, the Company may, upon election by the Board in its sole discretion, make such cash distributions on a quarterly basis based upon estimates of the required Tax Distribution in a manner sufficient to permit the Members to satisfy their respective quarterly estimated tax payment obligations. All quarterly tax distributions to a Member shall be treated as an advance of, and shall offset, the cash distribution payable to the Member (pursuant to this Section 5.2) on the next Tax Distribution Date. Any distributions made pursuant to this Section 5.2 to a Member shall be treated as an advance payment of, and shall on a dollar-for-dollar basis reduce, the amounts otherwise distributable to such Member pursuant to Section 12.2(c)(iii) or distributable to such Member pursuant to Section 8.1, as applicable, in subsequent distributions or payments.

**Section 5.3 Allocations of Profits or Losses.** After giving effect to the allocations pursuant to Section 5.4, Profits and Losses (and, to the extent reasonably determined necessary and appropriate by the Board to achieve the resulting Capital Account balances described below, any allocable items of gross income, gain, loss and deduction includable in the computation of Profits and Losses) for each Allocation Period shall be allocated among the Members during such Allocation Period, in such a manner as shall cause the Capital Accounts of the Members (as adjusted to reflect the allocations under Section 5.4 and all distributions through the end of such Allocation Period) to equal, as nearly as possible, (a) the amount such Members would receive if all assets of the Company on hand at the end of such Allocation Period were sold for cash equal to their Book Values, all liabilities of the Company were satisfied in cash in accordance with their terms (limited in the case of non-recourse liabilities to the Book Value of the property securing such liabilities), and all remaining or resulting cash was distributed to the Members (i) in accordance with Section 12.2(c)(iii) (in the event this Section 5.3 is being applied (1) in connection with a Deemed Liquidation Event or Dissolution Event or (2) in the year during which the Forced Distribution Right is exercised or any year thereafter) or (ii) in accordance with Section 5.1 (in the event this Section 5.3 is not being applied (x) in connection with a Deemed Liquidation Event or Dissolution Event or (y) in the year during which the Forced Distribution Right is exercised or any year thereafter), in each case, minus (b) such Member's share of Minimum Gain and Member Nonrecourse Debt Minimum Gain, computed immediately prior to the hypothetical sale of assets, and the amount any such Member is treated as obligated to contribute to the Company, computed immediately after the hypothetical sale of assets.

**Section 5.4 Special Allocations.** The following allocations shall be made in the following order:

(a) Nonrecourse Deductions shall be allocated to the Members as determined by the Board, to the extent permitted by the Treasury Regulations.

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(b) Member Nonrecourse Deductions attributable to Member Nonrecourse Debt shall be allocated to the Members bearing the Economic Risk of Loss for such Member Nonrecourse Debt as determined under Treasury Regulation Section 1.704-2(b)(4). If more than one Member bears the Economic Risk of Loss for such Member Nonrecourse Debt, the Member Nonrecourse Deductions attributable to such Member Nonrecourse Debt shall be allocated among the Members according to the ratio in which they bear the Economic Risk of Loss. This Section 5.4(b) is intended to comply with the provisions of Treasury Regulation Section 1.704-2(i) and shall be interpreted consistently therewith.

(c) Notwithstanding any other provision hereof to the contrary, if there is a net decrease in Minimum Gain for an Allocation Period (or, if there was a net decrease in Minimum Gain for a prior Allocation Period and the Company did not have sufficient amounts of income and gain during prior periods to allocate among the Members under this Section 5.4(c)), items of income and gain shall be allocated to each Member in an amount equal to such Member's share of the net decrease in such Minimum Gain (as determined pursuant to Treasury Regulation Section 1.704-2(g)(2)). This Section 5.4(c) is intended to constitute a minimum gain chargeback under Treasury Regulation Section 1.704-2(f) and shall be interpreted consistently therewith.

(d) Notwithstanding any provision hereof to the contrary except Section 5.4(c) (dealing with Minimum Gain), if there is a net decrease in Member Nonrecourse Debt Minimum Gain for an Allocation Period (or, if there was a net decrease in Member Nonrecourse Debt Minimum Gain for a prior Allocation Period and the Company did not have sufficient amounts of income and gain during prior Allocation Periods to allocate among the Members under this Section 5.4(d)), items of income and gain shall be allocated to each Member in an amount equal to such Member's share of the net decrease in Member Nonrecourse Debt Minimum Gain (as determined pursuant to Treasury Regulation Section 1.704-2(i)(4)). This Section 5.4(d) is intended to constitute a partner nonrecourse debt minimum gain chargeback under Treasury Regulation Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

(e) Notwithstanding any provision hereof to the contrary except Section 5.4(a) and Section 5.4(b), no Losses or other items of loss or deduction shall be allocated to any Member to the extent that such allocation would cause such Member to have a deficit balance in its Adjusted Capital Account (or increase any existing deficit balance in its Adjusted Capital Account) at the end of such Allocation Period. All Losses and other items of loss and deduction in excess of the limitation set forth in this Section 5.4(e) shall be allocated to the Members who do not have a deficit balance in their Adjusted Capital Accounts in proportion to their relative positive Adjusted Capital Accounts but only to the extent that such Losses and other items of loss and deduction do not cause any such Member to have a deficit in its Adjusted Capital Account.

(f) Notwithstanding any provision hereof to the contrary except Section 5.4(c) and Section 5.4(d) (dealing with Minimum Gain and Member Nonrecourse Debt Minimum Gain, respectively), a Member who unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) shall be allocated items of income and gain (consisting of a pro rata portion of each item of income, including gross income, and gain for the Allocation Period) in an amount and manner sufficient to eliminate any deficit balance in such Member's Adjusted Capital Account as quickly as possible; provided, however, that an allocation pursuant to this Section 5.4(f) shall be made only if and to the extent

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that such Member would have deficit Adjusted Capital Account balance after all other allocations provided for in Section 5.3, Section 5.4, and Section 5.5 have been tentatively made as if this Section 5.4(f) were not in this Agreement. This Section 5.4(f) is intended to constitute a qualified income offset under Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

(g) In the event that any Member has a deficit balance in its Adjusted Capital Account at the end of any Allocation Period, such Member shall be allocated items of Company gross income and gain in the amount of such deficit as quickly as possible; *provided, however*, that an allocation pursuant to this Section 5.4(g) shall be made only if and to the extent that such Member would have a negative balance in its Adjusted Capital Account after all other allocations provided for in Section 5.3, Section 5.4, and Section 5.5 have been tentatively made as if Section 5.4(f) and this Section 5.4(g) were not in this Agreement.

(h) To the extent an adjustment to the adjusted tax basis of any Company property pursuant to Code Section 734(b) (including any such adjustment pursuant to Treasury Regulation Section 1.734-2(b)(1)) is required pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as the result of a distribution to any Member in complete liquidation of such Member's Membership Interest, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be allocated to the Members in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(m)(2) if such Treasury Regulation Section applies, or to the Member to whom such distribution was made if Treasury Regulation Section 1.704-1(b)(2)(iv)(m)(4) applies.

(i) Items of income, gain, loss, expense or credit resulting from a Covered Audit Adjustment shall be allocated to the Members in accordance with the applicable provisions of the Bipartisan Budget Act.

### **Section 5.5 *Income Tax Allocations.***

(a) All items of income, gain, loss and deduction for U.S. federal income tax purposes shall be allocated in the same manner as the corresponding item is allocated pursuant to Section 5.3 or Section 5.4, except as otherwise provided in this Section 5.5.

(b) In accordance with Code Section 704(c) and the applicable Treasury Regulations thereunder (including the Treasury Regulations applying the principles of Code Section 704(c) to changes in Book Values), income, gain, loss and deduction with respect to any Company property having a Book Value that differs from such property's adjusted U.S. federal income tax basis shall, solely for U.S. federal income tax purposes, be allocated among the Members in order to account for any such difference using the 'traditional method' under Treasury Regulation Section 1.704-3(b) or such other method or methods as determined by the Board to be appropriate and in accordance with the applicable Treasury Regulations.

(c) Any (i) recapture of depreciation, or any other item of deduction shall be allocated, in accordance with Treasury Regulation Sections 1.1245-1(e) and 1.1254-5, to the

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Members who received the benefit of such deductions (taking into account the effect of remedial allocations), and (ii) recapture of grants or credits shall be allocated to the Members in accordance with applicable Law.

(d) Tax credits of the Company shall be allocated among the Members as provided in Treasury Regulation Sections 1.704-1(b)(4)(ii) and 1.704-1(b)(4)(viii).

(e) If, as a result of an exercise of a non-compensatory option to acquire a Membership Interest, a Capital Account reallocation is required under Treasury Regulation Section 1.704-1(b)(2)(iv)(s)(3), the Company shall make corrective allocations pursuant to Treasury Regulation Section 1.704-1(b)(4)(x).

(f) Allocations pursuant to this Section 5.5 are solely for purposes of U.S. federal, state and local taxes and, except as otherwise specifically provided, shall not affect, or in any way be taken into account in computing, any Member's Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement.

### Section 5.6 *Other Allocation Rules.*

(a) All items of income, gain, loss, deduction and credit allocable to a Membership Interest in the Company that may have been Transferred shall be allocated between the transferring Member and the transferee in accordance with a method selected by the Board and permissible under Code Section 706 and the Treasury Regulations thereunder.

(b) The Members' proportionate shares of the 'excess nonrecourse liabilities' of the Company, within the meaning of Treasury Regulation Section 1.752-3(a)(3), shall be allocated among the Members in a manner determined by the Board and permissible under the Treasury Regulations.

(c) The definition of Capital Account set forth in Section 4.4(a) and the allocations set forth in Section 5.3, Section 5.4 and Section 5.5 and the preceding provisions of this Section 5.6 are intended to comply with the Treasury Regulations. If the Board determines that the determination of a Member's Capital Account or the allocations to a Member are not in compliance with the Treasury Regulations or should be adjusted as a result of an exercise of remedies pursuant to Section 5.8, the Board is authorized to make any appropriate adjustments.

### Section 5.7 *Limitation Upon Distributions.*

No distribution shall be declared and paid (a) unless, after the distribution is made, the Fair Market Value of the Company's assets is at least equal to all of the Company's liabilities or (b) if the declaration or payment would cause the Company or any of its Subsidiaries to breach any material agreement.

### Section 5.8 *Withholding Authorized.*

Each of the Company and its Subsidiaries may withhold from distributions, allocations or portions thereof if it is required to do so by any applicable Law, and each Member hereby authorizes the Company and its Subsidiaries to withhold or pay on behalf of or with respect to such Member any amount of U.S. federal, state, provincial, local or foreign taxes that the Board determines, in good faith, that the Company or any of its Subsidiaries is required to withhold or pay with respect to any amount distributable or allocable to such Member pursuant to this Agreement. To the extent that any tax is paid by (or withheld from

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amounts payable to) the Company or any of its Subsidiaries and the Board determines, in good faith, that such tax relates to one or more specific Members (including any Company Level Taxes), such tax shall be treated as an amount of taxes withheld or paid with respect to such Member pursuant to this Section 5.8. Any determinations made by the Board pursuant to this Section 5.8 shall be binding upon the Members. For all purposes under this Agreement, any amounts withheld or paid with respect to a Member pursuant to this Section 5.8 shall offset any distributions to which such Member is entitled concurrently with such withholding or payment and shall be treated as having been distributed to such Member pursuant to Section 5.1 or Section 12.2(c)(iii), as applicable, at the time such offset is made. Further, to the extent that the cumulative amount of such withholding or payment for any period exceeds the distributions to which such Member is entitled concurrently with such withholding or payment, the amount of such excess shall be considered a loan from the Company to such Member, with interest accruing at the greater of (1) the applicable underpayment rate for such period, as specified in Section 6621 of the Code and (2) the primary rate of interest then publicly quoted by J.P. Morgan Chase & Co. or, at the request of the Board, the amount of such excess shall be promptly paid to the Company by the Member on whose behalf such withholding is required to be made; *provided, however*, that any such payment shall not be treated as a Capital Contribution and shall not reduce the amount that a Member is otherwise obligated to contribute to the Company. Any such loan shall be satisfied out of distributions to which such Member would otherwise be subsequently entitled (and to the extent satisfied out of such distributions, such amounts shall be treated as distributed to such Member pursuant to Section 5.1 or Section 12.2(c)(iii), as applicable, at the time of such satisfaction) until such loan becomes due and payable in full, which shall occur upon the earlier of (i) the date immediately prior to the date on which the Public Entity first becomes an “issuer” within the meaning of the Sarbanes-Oxley Act of 2002, or (ii) such time as the Board requests that the Member pay such amount to the Company. Each Member hereby unconditionally and irrevocably grants to the Company a security interest in such Member’s Units to secure such Member’s obligation to pay to the Company any amounts required to be paid pursuant to this Section 5.8. Each Member shall take such actions as the Company may request in order to perfect or enforce the security interest created hereunder. Each Member shall indemnify and hold harmless the Company, the other Members, the Partnership Representative and the Board from and against any liability (including any liability for Company Level Taxes) with respect to income attributable to or distributions or other payments made to such Member. Notwithstanding any other provision of this Agreement, (i) any Person who ceases to be a Member shall be treated as a Member for purposes of this Section 5.8 and (ii) the obligations of a Member pursuant to this Section 5.8 shall survive indefinitely with respect to any taxes withheld or paid by the Company or a Subsidiary of the Company that relate to the period during which such Person was actually a Member, regardless of whether such taxes are assessed, withheld or otherwise paid during such period; *provided, however*, that if the Board determines in its sole discretion that seeking indemnification for Company Level Taxes from a former Member is not practicable, or that seeking such indemnification has failed, then, in either case, the Board may (A) recover any liability for Company Level Taxes from the substituted Member that acquired directly or indirectly the applicable Membership Interest in the Company from such former Member or (B) treat such liability for Company Level Taxes as a Company expense.

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# ARTICLE 6

### Section 6.1 *General Rules.*

(a) No Member may Transfer all or any portion of its Units without (i) obtaining the advance written approval of the Board (except in the case of (A) a Permitted Transfer, (B) a Transfer to the Company or another Member pursuant to Section 6.3, (C) a Transfer by a Participating Member pursuant to Section 6.4 or (D) a Transfer by a Drag-Along Person pursuant to Section 6.5) and (ii) otherwise complying with the terms of this Article 6. Any attempted Transfer that is not in accordance with this Article 6 shall be, and is hereby declared, null and void *ab initio*.

(b) Notwithstanding anything to the contrary in this Agreement, including this Article 6, nothing in this Agreement shall give a Member the right to Transfer any Units if such Member is prohibited from effecting such Transfer by the terms of another agreement to which such Member is bound, but such Member will be obligated to participate in a Transfer under Section 6.5 even if Transfers are prohibited in any other such agreement. In the event of a conflict between this Agreement and any other agreement that may have been entered into by the Company and a Member that contains a right of first refusal, the Company and the Member acknowledge and agree that the terms of this Agreement shall control and the right of first refusal shall be deemed satisfied by compliance with Section 6.3.

(c) No Member shall Transfer all or any of its Units if such Transfer would (i) subject the Company to the reporting requirements of the Exchange Act or (ii) without the prior consent of the Board, cause the Company to lose its status as a partnership for U.S. federal income tax purposes or cause the Company to be classified as a 'publicly traded partnership' within the meaning of Code Section 7704.

(d) The Members agree that a breach of the provisions of this Article 6 may cause irreparable injury to the Company and the Members for which monetary damages (or other remedy at law) are inadequate in view of (i) the complexities and uncertainties in measuring the actual damages that would be sustained by reason of the failure of a Person to comply with such provisions and (ii) the uniqueness of the Company's business and the relationship among the Members. Accordingly, the Members agree that the provisions of this Article 6 may be enforced by specific performance, injunction or other equitable relief.

### Section 6.2 *Permitted Transfers.*

A Member may make a Permitted Transfer of all or a portion of its Units without complying with Section 6.3 or Section 6.4.

### Section 6.3 *Right of First Refusal Provisions.*

(a) Except as provided in Section 6.2, a Transfer by a Participating Member pursuant to Section 6.3 or a Transfer pursuant to Section 6.5 or Section 6.7, before any Member (a 'Seller') may effect a Transfer to any Person (it being understood and agreed that no Member may effect any Transfer without first complying with Section 6.1), such Seller shall deliver to the Company and each other Member a written notice signed by the Seller (the 'Seller's Notice') stating (i) the Seller's bona fide intention to Transfer Units, (ii) the name and address of each

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proposed transferee (each a “Proposed Transferee”), (iii) the number and class of Units to be Transferred to each Proposed Transferee (the “Transfer Units”), (iv) the bona fide cash price or other consideration per Transfer Unit for which the Seller proposes to Transfer such Units (the “Offered Price”), and (v) the proposed date on which the Seller proposes to Transfer such Units to the Proposed Transferee(s). A copy of any written offer by the Proposed Transferee to acquire the Transfer Units from the Seller, if available, shall be attached to the Seller’s Notice. If a copy of a written offer is not available, a statement of the terms and conditions of the offer and any other material facts shall be attached to the Seller’s Notice.

(b) Upon receipt of a Seller’s Notice, and upon approval by the Board, the Company shall have the irrevocable and exclusive option to purchase all or any portion of the Transfer Units. The Company shall deliver a written notice to the Seller and each other Member of its election to purchase all or any portion of such Transfer Units (the “Company’s Notice”) within ten (10) days after the receipt of the Seller’s Notice. The delivery of the Company Notice under this Section 6.3 shall constitute an irrevocable commitment by the Company to purchase such Transfer Units.

(c) To the extent that the Company does not elect to purchase all of the Transfer Units or fails to deliver the Company Notice within the applicable period, each of the other Members shall have the irrevocable and exclusive option to purchase up to that number of the Transfer Units equal to the product of (i) the number of Transfer Units not elected to be purchased by the Company multiplied by (ii) such Member’s Percentage Interest (the “Proportionate Share”). Within 30 days after the receipt of the Company’s Notice, each Member shall deliver a written notice to the Seller and the Company of its election to purchase all or any portion of such remaining Transfer Units. To the extent any Member does not elect to purchase its full Proportionate Share of such remaining Transfer Units or fails to deliver a notice within the applicable period, each other Member that has elected to purchase its full Proportionate Share shall be entitled by delivering written notice to the Seller and the Company within ten (10) days following the receipt of such notice, to purchase up to all of the remaining Transfer Units. If there is an oversubscription, the oversubscribed amount shall be allocated among the fully electing Members based on their relative Proportionate Shares, subject to any maximum amount of Transfer Units specified by any Member in its notice. The delivery of a notice of election under this Section 6.3(c) shall constitute an irrevocable commitment to purchase such Transfer Units.

(d) The purchase price for the Transferred Units to be purchased by the Company or the Members shall be the Offered Price. If the Offered Price includes consideration other than cash, that portion’s value shall be the Fair Market Value. Payment of the purchase price shall be made within the later of the date initially set for the Transfer in the Seller’s Notice or five days after the expiration of all applicable periods set forth in this Section 6.3. Payment of the purchase price shall be made, at the option of the Company or the purchasing Member (i) in cash (by wire transfer or check), (ii) by cancellation of all or a portion of any outstanding indebtedness of the Seller to the Company or such Member or (iii) by any combination of the foregoing. Upon delivery of the purchase price, the Seller shall have no further rights as a Member holding the Transfer Units, and the Seller shall immediately cause all certificate(s), if any, evidencing such Transfer Units to be surrendered for transfer to the Company or the purchasing Member, together with such other duly executed instruments or documents executed by the Seller as may be reasonably requested by the Company or the purchasing Member.

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(e) If the Company and the Members have not elected to purchase all of the Transfer Units, then, subject to the Members' right of co-sale set forth in Section 6.4, the Seller may transfer the remaining Transfer Units to any Proposed Transferee named in the Seller's Notice, at the Offered Price or a higher price; *provided, however*, that such Transfer is (i) consummated within 90 days after the expiration of all applicable periods set forth in this Section 6.3, (ii) is on terms and conditions no more favorable to the Proposed Transferee than the terms proposed in the Seller's Notice, and (iii) is in accordance with all the terms of this Agreement. If the Transfer Units are not so Transferred during such period, then the Seller may not Transfer any of such Transfer Units without complying again in full with the provisions of this Section 6.3.

(f) The rights granted in this Section 6.3 shall terminate upon the consummation of a Qualified Public Offering.

### Section 6.4 *Co-Sale (Tag-Along) Provisions.*

(a) Except as provided in Section 6.2, each Member that does not elect to purchase any Transfer Units proposed to be Transferred by a Seller pursuant to Section 6.3 shall have the right, exercisable upon written notice to the Seller and the Company within 30 days after the receipt of the Company Notice, to sell all or any part of the Preferred Units and/or Common Units held by such Member to the Proposed Transferee on a pro rata basis as set forth in Section 6.4(b) and, subject to Section 6.4(c), otherwise on the same terms and conditions specified in the Seller's Notice (each Member delivering such notice, a '*Participating Member*').

(b) Each Participating Member may include in the proposed Transfer by the Seller (the '*Proposed Co-Sale Transfer*') all or any part of such Participating Member's Units equal to the product of (i) the aggregate number of Transfer Units subject to the Proposed Co-Sale Transfer (excluding Transfer Units purchased by the Company or the Members pursuant to Section 6.3) by (ii) a fraction, the numerator of which is the number of Units owned by such Participating Member immediately before consummation of the Proposed Co-Sale Transfer and the denominator of which is the sum of (A) the total number of Units owned, in the aggregate, by all Participating Members immediately prior to the consummation of the Proposed Co-Sale Transfer, *plus* (B) the number of Units owned by the Seller. To the extent one or more of the Participating Members exercises such right of participation in accordance with the terms and conditions set forth herein, the number of Transfer Units that the Seller may sell in the Proposed Co-Sale Transfer shall be correspondingly reduced.

(c) The Participating Members and the Seller agree that the terms and conditions of any Proposed Co-Sale Transfer in accordance with this Section 6.4 will be memorialized in, and governed by, a purchase agreement with customary terms and provisions for such a transaction, and the Participating Members and the Seller further covenant and agree to enter into such purchase agreement as a condition precedent to any sale or other Transfer in accordance with this Section 6.4; *provided, however*, that each Participating Member shall only be required to represent and warrant as to customary matters about itself (such as due authorization, absence of conflicts and enforceability) and as to the unencumbered title to the Units to be sold by such Person, and in no event shall any Participating Member's obligations thereunder exceed the consideration to be received by such Person in such transaction.

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(d) Subject to the following sentence, the aggregate consideration payable to the Participating Members and the Seller shall be allocated based on the number of Units sold to the Proposed Transferee by each Participating Member and the Seller as provided in Section 6.4(b).

(e) Notwithstanding Section 6.4(c), if any Proposed Transferee refuses to purchase securities subject to this Section 6.4 from any Participating Member or upon the failure to negotiate in good faith a purchase agreement reasonably satisfactory to the Participating Members, no Seller may sell any Transfer Units to such Proposed Transferee unless and until, simultaneously with such sale, the Seller purchases all securities subject to this Section 6.4 from such Participating Member(s) on the same terms and conditions (including the proposed purchase price) as set forth in the Seller's Notice and as otherwise provided in this Section 6.4. In connection with such purchase by the Seller, such Participating Member(s) shall deliver to the Seller any stock certificate or certificates, properly endorsed for transfer, representing the Units being purchased by the Seller (or request that the Company effect such transfer in the name of the Seller). Any such Units Transferred to the Seller will be transferred to the Proposed Transferee against payment therefor in consummation of the sale of the Transfer Units pursuant to the terms and conditions specified in the Seller's Notice, and the Seller shall concurrently therewith remit or direct payment to each such Participating Member the portion of the aggregate consideration to which each such Participating Member is entitled by reason of its participation in such sale as provided in this Section 6.4(e).

(f) If any Proposed Co-Sale Transfer by a Seller is not consummated within 90 days after the expiration of all applicable periods set forth in Section 6.3 and this Section 6.4, then the Seller may not Transfer any of such Transfer Units without complying again in full with the provisions of this Section 6.4.

(g) The rights granted in this Section 6.4 shall terminate upon the consummation of a Qualified Public Offering.

### Section 6.5 *Drag-Along Obligations.*

(a) If a Deemed Liquidation Event is approved in writing by (i) the Board, (ii) the holders of a majority of the outstanding Common Units and (iii) the holders of a majority of the outstanding Series A Preferred Units, and such written approval by the holders of Common Units and Series A Preferred Units specifies that this Section 6.5 shall apply to such transaction, then each Member hereby agrees that such Member (each, a '*Drag-Along Person*') shall be required to comply with this Section 6.5, including, in the case of a sale of Units, by Transferring to such proposed transferee (a '*Third-Party Buyer*') or, in the case of a recapitalization, Transferring to the Company a number of Units held by such Drag-Along Person up to the product (rounded to the nearest whole Unit) of (i) the aggregate number of Units proposed to be acquired by the Third-Party Buyer or the Company and (ii) a fraction, the numerator of which equals the number of Units owned by such Drag-Along Person and the denominator of which equals the total number of Units outstanding.

(b) In connection with a Transfer pursuant to this Section 6.5, each Drag-Along Person shall only: (i) be required to represent and warrant as to customary corporate matters about

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itself (such as due authorization, absence of conflicts and enforceability) and as to the unencumbered title to the Units to be sold by such Person, (ii) be required to bear its pro rata share of any post-closing indemnity obligations (*provided, however*, that such indemnity obligations shall be several and not joint and several, except with respect to any proceeds held in escrow or a similar arrangement), and (iii) be subject to the same post-closing purchase price adjustments, escrow terms, offset rights and holdback terms as each other Member, proportionate to the Units sold by such Person and (iv) be required to deliver customary releases, stock powers, letters of transmittal or other similar transfer documentation, in each case, on the same terms, provisions and documents as each other Member (*provided, however*, that in no case shall any Preferred Member be required to execute any non-competition agreement or agree to any such covenant). Notwithstanding the foregoing, in no event shall any Drag-Along Person's obligations exceed the consideration to be received by such Person in such transaction.

(c) All of the consideration payable to the Members in a Deemed Liquidation Event first may be aggregated by the Company (or the designated paying agent), as disbursing agent, before distributing any such consideration to any of the Members. The Company (or such paying agent), acting solely as the disbursing agent of the Members, shall then distribute the aggregate consideration to the Members in the same manner such consideration would have been distributed had such distribution been made under Section 12.2(c)(iii) of this Agreement. If the Deemed Liquidation Event involves the issuance of any stock or other equity consideration in a transaction not involving a public offering and any Member otherwise entitled to receive consideration in such transaction is not an Eligible Investor, then the Company may require each Member that is not an Eligible Investor (A) to receive solely cash in such transaction, (B) to otherwise be cashed out (by redemption or otherwise) by the Company or any other Member prior to the consummation of such transaction and/or (C) to appoint a purchaser representative (as contemplated by Rule 506 of Regulation D of the Securities Act) selected by the Company, in each case with the intent being that such Member that is not an Eligible Investor receive substantially the same value that such Member would have otherwise received had such Member been an Eligible Investor.

(d) No Drag-Along Person shall have or exercise any dissenters' or appraisal rights in connection with a Deemed Liquidation Event under this Section 6.5 or assert any claim or commence any suit challenging the Deemed Liquidation Event or alleging a breach of any fiduciary duty (including aiding and abetting breach of fiduciary duty) in connection with the valuation, negotiation, entry into or consummation of the Deemed Liquidation Event. Each Drag-Along Person shall vote in favor of a Deemed Liquidation Event approved in the manner described above. Each Drag-Along Person hereby releases, and will execute such further instruments as the Company reasonably requests to further evidence the waiver of, such dissenters' and appraisal rights.

(e) Each Member hereby makes, constitutes and appoints the secretary of the Company as its true and lawful attorney-in-fact for it and in its name, place and stead and for its use and benefit, to sign, execute, certify, acknowledge, swear to, file and record any instrument that is now or may hereafter be deemed necessary by the Company in its reasonable discretion to carry out fully the provisions and the agreements, obligations and covenants of such Member in this Section 6.5, as fully as such Member might or could do personally, and hereby ratifies and confirms all that any such attorney-in-fact shall lawfully do or cause to be done by virtue of the

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power of attorney granted hereby. The power of attorney granted pursuant to this Section 6.5(e) is a special power of attorney, coupled with an interest, and is irrevocable, and shall survive the bankruptcy, insolvency, dissolution or cessation of existence of the applicable Member.

### Section 6.6 *Conditions to Transfers; Continued Applicability of Agreement.*

(a) As a condition to any Transfer permitted under this Agreement (including Permitted Transfers), (i) any transferee of Units shall be required to become a party to this Agreement, by executing (together with such Person's spouse, if applicable) an Adoption Agreement. If any Person acquires Units from a Member in a Transfer, notwithstanding such Person's failure to execute an Adoption Agreement in accordance with the preceding sentence (whether such Transfer resulted by operation of law or otherwise), such Person shall be bound by and such Units shall be subject to this Agreement as if such Units were still held by the transferor, and (ii) unless otherwise determined by the Board, (A) at least ten (10) Business Days before such Transfer, the transferring Member shall deliver to the Company an affidavit of non-foreign status with respect to such transferring Member that satisfies the requirements of Section 1446(f)(2) of the Code or other documentation establishing a valid exemption from withholding pursuant to Section 1446(f) of the Code or (B) contemporaneously with the Transfer, the transferee shall withhold and remit to the Internal Revenue Service the amount of tax required to be withheld upon the Transfer by Section 1446(f) of the Code (and provides evidence to the Company of such withholding and remittance promptly thereafter).

(b) No Units may be Transferred by a Person (other than pursuant to an effective registration statement under the Securities Act or pursuant to a Permitted Transfer) unless the transferee first delivers to the Company, at the transferring Member's sole cost and expense, evidence reasonably satisfactory to the Company (such as an opinion of counsel in customary form) to the effect that such Transfer is not required to be registered under the Securities Act; *provided, however*, that the Company, with the approval of the Board, may waive any requirement to deliver a legal opinion or other such evidence under this Section 6.6(b).

### Section 6.7 *Conversion to a Corporation; Public Offering.*

(a) In connection with an Initial Public Offering, the Board may (but shall not be obligated to) (i) cause the conversion of all or any portion of the Company or Subsidiary of the Company into a corporation, by (A) the Transfer of all of the assets of the Company, subject to the Company's liabilities, or the Transfer of any portion of such assets and liabilities, to one or more corporations in exchange for shares of any such corporations and the subsequent distribution of the cash proceeds following the sale of such shares in accordance with the provisions of this Agreement, at such time as the Board may determine, to the Members, (B) the conversion of the Company or a Subsidiary of the Company into a corporation pursuant to the TBOC, (C) the Transfer by each Member of Units held by such Member to one or more corporations in exchange for shares of any such corporation (including by merger of the Company into a corporation), or (D) by filing an election pursuant to Treasury Regulation Section 301.7701-3(c) or (ii) cause the Company to use any other structure or means by which to effect an Initial Public Offering, including by the conversion of the Company or any portion of the Company or any Subsidiary of the Company into one or more corporations, limited liability companies, limited partnerships or other business entities (any such conversion or other means described in clauses (i) or (ii), a '**IPO**'

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**Reorganization”** and the resulting entity (whether the Company or a Subsidiary or other Affiliate of the Company or any successor thereto) whose Equity Securities are sold in the Initial Public Offering, the **“Public Entity”**. The Members shall take all actions reasonably requested by the Board in connection with the consummation of such IPO Reorganization, including consenting to, voting for and waiving any dissenters rights, appraisal rights or similar rights and participating in any exchange or other transaction required in connection with such IPO Reorganization. No Member shall have any right to vote, consent to or approve any IPO Reorganization.

(b) In connection with any IPO Reorganization involving a Transfer of Units, each holder of Units agrees to the Transfer of its Units in accordance with the terms of conversion or exchange, as applicable, as provided by the Board. The Board shall determine the Fair Market Value of the assets or Units Transferred in connection with any IPO Reorganization and the number of shares of capital stock, options or other securities that each Member shall receive in consideration therefor. In connection with any such IPO Reorganization, each holder of Units shall receive, in exchange for the Units held by such holder, capital stock, options or other securities with substantially similar economic and other rights, privileges and preferences as the Units being exchanged had prior to the consummation of such IPO Reorganization as reasonably determined by the Board and taking into account the equity value of the Public Entity implied by the price and amount of securities sold in the Initial Public Offering; *provided, however*, that unless otherwise determined by the Board, the securities received by the holders of Units subject to vesting and transfer restrictions shall remain subject to substantially similar vesting and transfer restrictions following the Initial Public Offering (except for any acceleration of vesting resulting from the Initial Public Offering pursuant to an agreement between the Company and the holder thereof). Each holder of Units further agrees that as of the effective date of such conversion or exchange any Unit outstanding thereafter that shall not have been tendered for conversion or exchange shall represent only the right to receive the amount of shares, options or other securities as provided in the terms of such conversion or exchange.

(c) Each of the Members shall take all necessary or desirable actions reasonably requested by the Board in connection with the consummation of an Initial Public Offering, including compliance with the requirements of all laws and regulatory bodies that are applicable or that have jurisdiction over such Initial Public Offering. If such Initial Public Offering is an underwritten offering and the managing underwriters advise the Company in writing that in their opinion the Company’s capital structure would adversely affect the marketability of the offering, each Member shall consent to and vote for a recapitalization, reorganization or exchange (each, a **“IPO Recapitalization”**) of any class of the Company’s Equity Securities into securities that the managing underwriters and the Board find acceptable and shall take all necessary and desirable actions in connection with the consummation of such IPO Recapitalization; *provided, however*, that each holder of a class of Units shall receive the same type of security with respect to such Units and shall be subject to the same restrictions on lock-up and transferability unless otherwise agreed to by the Members. If requested by the managing underwriters, each of the Members shall execute customary lock-up agreements with respect to their Units or any securities received by them in any attendant IPO Reorganization or IPO Recapitalization.

(d) Notwithstanding anything to the contrary herein, in connection with any IPO Reorganization or IPO Recapitalization involving the issuance or distribution of Equity Securities to the Members, the Board, in its sole discretion, may elect to make such issuance or

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distribution subject to restrictions (including the use of escrow accounts, lock-ups or other contractual restrictions on the beneficial rights in respect of such Equity Securities) so long as such restrictions do not adversely affect the intended economic rights, preferences, privileges or powers of the Members in respect of their Units, as applicable, pursuant to Section 5.1.

**Section 6.8** *Registration Rights.* At or prior to the consummation of an Initial Public Offering, the Public Entity and the Members shall enter (and each of the Members shall cause the Public Entity to enter) into a registration rights agreement in customary form providing for registration rights of the Equity Securities of the Public Entity of the same class or series sold in the Initial Public Offering (the “*Registrable Securities*”), which registration rights agreement shall provide such Members the right to (a) up to two (2) demand registrations for the sale of Registrable Securities pursuant to Form S-1 (or any successor thereto) with an aggregate gross offering price to the public of at least $10 million exercisable by the holders of a majority of the Registrable Securities, (b) up to two (2) demand registrations for the sale of Registrable Securities pursuant to Form S-3 (or any other form permitting incorporation by references similar to Form S-3) per year with an aggregate gross offering price of at least $5 million exercisable by the holders of at least thirty percent (30%) of the Registrable Securities and (c) unlimited “piggyback” registration rights in favor of all holders of Registrable Securities, in each case, subject to customary exclusions and limitations.

**Section 6.9** *Right of First Offer.* In the event the Company desires to enter into a Deemed Liquidation Event, then the Company shall provide written notice to each of the Preferred Members of such desire (a “*Negotiation Notice*”). For a period of 30 days after delivery of the Negotiation Notice (the “*Negotiation Period*”), the Preferred Members shall have the right to make an offer to the Company with respect to entering into a Deemed Liquidation Event. The Company shall not, at any time within the 12-month period following the end of the Negotiation Period, enter into a Deemed Liquidation Event unless the terms of such Deemed Liquidation Event are in the aggregate as good as or better than the best offer made by the Preferred Members during the Negotiation Period (the “*ROFO Best Offer*”), as determined by the Board in its sole discretion; *provided*, that if at any time during such 12-month period the Company requests that the Preferred Members affirm in writing their willingness to enter into a Deemed Liquidation Event on the terms of the ROFO Best Offer and the Preferred Members do not make such affirmation within two (2) Business Days of such request, then the requirement that the terms of any Deemed Liquidation Event be as good as or better than the ROFO Best Offer shall cease to apply.

## MANAGEMENT; OFFICERS

### Section 7.1 *Management by Managers.*

(a) The Company shall be managed by “managers” (as such term is used in the TBOC) according to the remaining provisions of this Article 7. Except with respect to certain consent or approval requirements provided in this Agreement, no Member by virtue of having the status of a Member shall have any management power over the business and affairs of the Company or actual or apparent authority to enter into contracts on behalf of, or to otherwise bind, the Company. The “managers” are referred to as “*Managers*” throughout this Agreement. The business and affairs of the Company shall be managed by the Managers elected in accordance with

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Section 7.2 and acting exclusively through the Board of Managers of the Company (the “**Board**”) in accordance with this Agreement. To the extent that the Board designates Officers pursuant to Section 7.5, the day-to-day activities of the Company shall be conducted on the Company’s behalf by the Officers, who shall be agents of the Company.

(b) In addition to the powers that now or hereafter can be granted under the TBOC and to all other powers granted under any other provision of this Agreement, subject to any consent or approval of the Members expressly required by this Agreement and the other provisions of this Agreement, the Board shall have full power and authority to do all things on such terms as they may deem necessary or appropriate to conduct, or cause to be conducted, the business and affairs of the Company.

## Section 7.2 *Board of Managers.*

(a) Composition; Initial Managers.

(i) The Board shall consist of natural persons who need not be Members or residents of the State of Texas. Subject to the remaining provisions of this Section 7.2, the Board shall consist of five (5) Managers, and the Managers shall be designated as follows: (A) two (2) Managers (each, a “**Series A Manager**”) shall be designated by the holders of a majority of the outstanding Series A Preferred Units, who shall initially be Michael Tremain and George Clark, and (B) three (3) Managers (each, a “**Common Manager**”) shall be designated by the holders of a majority of the outstanding Common Units, who shall initially be Allison Davidson and Jeffrey Davidson (with one (1) Common Manager seat initially vacant). The undersigned Members hereby ratify and appoint the foregoing individuals as Managers as of the Effective Date. In the event that the foregoing Board designation rights are not fully exercised, the Board shall consist of the number of individuals actually designated pursuant to this Section 7.2(a)(i). Each Manager shall have one (1) vote; *provided*, that if either Series A Manager seat is vacant, the sole Series A Manager shall have two (2) votes until such vacancy is filled and if a Common Manager seat is vacant, the Common Managers then appointed shall have a number of votes equal to a quotient, the numerator of which is three (3) and the denominator of which is the number of Common Managers then serving until such vacancy is filled (meaning, for example, that during the period that one Common Manager seat is initially vacant the other Common Managers shall each have one and one-half (1.5) votes).

(ii) Each individual designated to serve on the Board in accordance with this Section 7.2 shall serve until (A) a successor is duly designated, (B) until his or her removal in accordance with Section 7.2(c), or (C) his or her earlier voluntary resignation, retirement, death or disability, as applicable.

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(iii) The chairperson of the Board (the “*Chairman*”), if any, shall be designated by the majority vote of all the Managers. The Chairman shall preside at all meetings of Members and the Board and shall perform such other duties as from time to time may be assigned by the Board.

(b) Vacancies. Any vacancy created by the death, disability, retirement, voluntary resignation or proper removal (*i.e.*, removal in accordance with Section 7.2(c)) of any individual designated under Section 7.2(a) (a “*Former Manager*”) shall be filled by a Person designated by the Person or Persons that designated the applicable Former Manager.

(c) Removal. A Manager designated in accordance with Section 7.2(a) may not be removed from the Board during his or her term of office except by the Person or Persons authorized to designate such Manager (it being understood and agreed that the Person or Persons authorized to designate such Manager shall be permitted to designate a different natural person).

(d) Managers’ Indemnification and Insurance. The Company shall indemnify all of the Managers to the extent set forth in Section 10.2. The Company shall use its best efforts to obtain, effective as of the Effective Date, and thereafter at all times maintain directors’ and officers’ liability insurance policies on terms and in amounts reasonably satisfactory to the Requisite Preferred Holders, and all of the Managers shall be included as insureds under such policies. The Company’s directors’ and officers’ liability insurance policies shall not be cancellable by the Company without prior approval of the Requisite Preferred Holders and shall include non-rescindable “Side A” coverage. If the Company undergoes a Deemed Liquidation Event, the agreement governing such transaction shall provide that each successor to the Company assumes the Company’s obligations with respect to indemnification of Managers, on terms no less favorable to the Managers as those set forth in this Agreement.

(e) Quorum; Required Vote for Board Action. Subject to the other voting requirements applicable to the Board contained in this Agreement, a quorum for the transaction of business at a meeting of the Board shall exist when at least a majority of the Managers then in office (including at least one (1) Series A Manager and one (1) Common Manager) are present in person (including by telephone, video conference or similar communications equipment) or represented by proxy thereat. Except as otherwise set forth in this Agreement, all decisions of the Board shall require the affirmative vote at any meeting of the Board at which a quorum is present of the Managers having a majority of the votes held by all of the Managers. If a quorum is not present at any meeting of the Board, the Managers present at such meeting may adjourn the meeting and such adjourned meeting shall be recalled immediately by the Chairman on at least two (2) Business Days’ personal, written or electronic notice (*e.g.*, email) to each Manager.

(f) Meetings of the Board; Notices. The Board shall meet at least quarterly, unless otherwise approved by the Board. Regular meetings of the Board shall be held on such dates, and at such times and at such place or places within or without the State of Texas, as shall be designated from time to time by the resolution of the Board. Special meetings of the Board may be called by the Chairman upon written notice. The Secretary shall give to the Managers at least two (2) Business Days’ personal, written or electronic notice (*e.g.*, email) of any meetings of the Board, with such notice containing a statement of the purposes of any special meeting.

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(g) Reimbursement; Compensation. All Managers shall be entitled to be reimbursed by the Company for their respective reasonable out-of-pocket costs and expenses incurred in the course of attending any meeting of the Board (including travel expenses).

(h) Committees of the Board.

(i) The Board may, by resolution passed by Managers having a majority of the votes of all of the Managers, designate one or more committees. Any such designated committee shall have and may exercise such of the powers and authority of the Board in the management of the business and affairs of the Company as may be provided in such resolution. Any such designated committee shall include at least one (1) Series A Manager and at least one (1) Common Manager.

(ii) Any committee designated in accordance with this Section 7.2(h) shall choose its own chairperson, shall keep regular minutes of its proceedings and report the same to the Board when requested, shall fix its own rules or procedures (not inconsistent with the rules and procedures of the Board under this Agreement), and shall meet at such times and at such place or places as may be provided by such rules or procedures, or by resolution of such committee, except as otherwise provided in the resolution of the Board designating such committee. At every meeting of any such committee, the presence of the Managers holding a majority of the votes of all the members of such committee (including at least one (1) Series A Manager and one (1) Common Manager) shall constitute a quorum, and the affirmative vote at any meeting at which a quorum is present of the Managers having a majority of the votes of all of the members of such committee shall be necessary for the adoption of any resolution. If a quorum is not present at any meeting of a committee of the Board, the Managers present at such meeting may adjourn the meeting and such adjourned meeting shall be recalled immediately by the Chairman on at least two (2) Business Days' personal, written or electronic notice (e.g., email) to each Manager that is a member of such committee.

(i) Board Reserved Matters. For so long as at least 50% of the Series A Preferred Units issued pursuant to the Series A Purchase Agreement are outstanding, no Member, Manager, Officer, agent or employee of the Company or any of its Subsidiaries shall undertake, or cause the Company or any of its Subsidiaries to undertake, whether directly or indirectly by merger, consolidation or otherwise, any of the following matters without the approval of the Board, including the affirmative approval of at least one (1) of the Series A Managers:

(i) enter into any corporate strategic relationship or series of related relationships involving the payment or contribution by the Company of assets with a value, as determined in good faith by the Board, greater than $250,000 in the aggregate;

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(ii) make any loan or advance to, or own any stock or other securities of, or guarantee, directly or indirectly, any indebtedness of, any other corporation, partnership or other entity, with the exception of a wholly owned subsidiary and trade credit extended in the ordinary course of business;

(iii) enter into or be a party to any new transaction with any Manager or Officer of the Company or any “associate” (as defined in Rule 12b-2 promulgated under the Exchange Act) of any such person (including entering into any expense- or profit-sharing arrangement with Founder Ally Davidson concerning her upcoming autobiographical book or promotion thereof);

(iv) make any acquisition, whether through a merger or purchase of all or substantially all of the assets or capital stock or other equity interests, of another entity or otherwise;

(v) incur any aggregate indebtedness in excess of $1,000,000, other than trade credit incurred in the ordinary course of business, or mortgage, pledge or otherwise grant a security interest in all or substantially all of the assets or intellectual property of the Company;

(vi) approve annual budgets or material amendments therefrom, or approve an alteration to the specific agreed-upon working capital uses of the proceeds from the transactions contemplated by the Series A Purchase Agreement;

(vii) hire, fire or change the compensation of any executive officer, including approving any grants pursuant to the Incentive Plan, or pay a bonus to either Founder or any family member of either Founder, or increase the salary of either Founder or any family member of either Founder, or lessen or amend the material duties of either Founder or any family member of either Founder as an employee of the Company; or

(viii) agree to effect or implement any of the foregoing.

(j) Board Observer. The holders of a majority of the outstanding Series A Preferred Units shall have the right to appoint an observer (the “*Observer*”) to attend and participate (but solely as an observer without the right to vote on any issue put before the Board) in all meetings of the Board, which individual shall be a representative of EP3, LLC for so long as EP3, LLC holds any Units. The Company shall give the Observer (i) notification of each meeting at the same time and in the same manner as the other participants receive notice of such meeting and (ii) all written materials and other information given to the other participants in connection with such meeting; *provided*, that the Observer shall agree to hold in confidence and trust all information so provided; *provided, further* that the Company reserves the right to withhold any information and to exclude the Observer from any meeting or portion thereof if access to such information or attendance at such meeting could adversely affect the attorney-client privilege

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between the Company and its counsel, as determined in the reasonable discretion of the Board. The Board shall have the right to appoint additional observers, at its discretion, from time to time. Any observer may be required to enter into a confidentiality agreement as a condition to attendance at any such meeting.

### Section 7.3 *Meetings of the Members.*

(a) Place of Meetings. All meetings of the Members shall be held at the principal office of the Company, or at such other place or places within or without the State of Texas as shall be specified or fixed in the notices (or waivers of notice) thereof.

(b) Quorum; Required Vote for Member Action; Adjournment of Meetings. Except as expressly provided otherwise by this Agreement, or as may otherwise be required by any non-modifiable or non-waivable provision of the TBOC, the holders of a majority of the Units then outstanding and entitled to vote at any meeting of Members, voting together as a single class, present in person (including by telephone, video conference or similar communications equipment) or represented by proxy thereat, shall constitute a quorum at any such meeting for the transaction of business, and the affirmative vote of a majority of those present shall constitute the act of the Members. The Members present at a duly organized meeting may continue to transact business until adjournment, provided a quorum is present until adjournment.

#### (c) Record Date.

(i) The Secretary shall give to the Members at least ten (10) days personal, written or electronic notice (e.g., email) of any meetings of the Members of the Company. For the purpose of determining Members entitled to notice of or to vote at any meeting of Members, or any adjournment thereof, or entitled to consent to any matter, or for the purpose of any other lawful action, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing such record date is adopted by the Board, and which record date shall not be more than sixty (60) nor less than ten (10) days prior to the date of such meeting. If no record date is fixed by the Board, the record date for determining Members entitled to notice of or to vote at a meeting of Members shall be the close of business on the day next preceding the day on which notice of such meeting is given, or, if notice is waived in accordance with this Agreement, the close of business on the day next preceding the day on which the meeting of Members is held.

(ii) A determination of Members of record entitled to notice of or to vote at a meeting of Members shall apply to any adjournment of the meeting; *provided, however*, that the Board may fix a new record date for the adjourned meeting.

(iii) If, in accordance with this Agreement, action without a meeting of Members is proposed to be taken in accordance with Section 7.4(c), the Board may fix a record date for determining Members

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entitled to consent in writing to such action, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which record date shall not be more than ten (10) days subsequent to the date upon which the resolution fixing the record date is adopted by the Board. If no record date has been fixed by the Board, the record date for determining Members entitled to consent to action in writing without a meeting shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Company by delivery to its registered office, its principal office or to an Officer of the Company having custody of the book in which proceedings of meetings of Members are recorded.

(d) Non-Voting Members. Notwithstanding anything to the contrary in this Section 7.3, to the maximum extent permitted by Law, the Board is only required to send notices of meetings to Persons entitled to vote at such meetings.

**Section 7.4 Provisions Applicable to All Meetings.** In connection with any meeting of the Board, any committee thereof or any meeting of the Members, the following provisions shall apply:

(a) Waiver of Notice Through Attendance. Attendance of a Person at such meeting (including attendance by telephone, video conference or similar communications equipment pursuant to Section 7.4(d)) shall constitute a waiver of notice of such meeting, except where such Person attends the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

(b) Proxies. A Manager or committee member may vote at a Board or committee meeting by a written proxy executed by that Person and delivered to another Manager or committee member. A Member entitled to vote at a Members' meeting may vote at a Members' meeting by a written proxy executed by that Person and delivered to the Secretary. A proxy shall be revocable unless it is stated to be irrevocable.

(c) Action by Written Consent. Any action required or permitted to be taken at such a meeting may be taken without a meeting and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the Managers, members of a committee of the Board or the Members, as applicable, having not fewer than the minimum number of votes that would be necessary to take the action at a meeting at which all Managers, all members of the committee or all of the Members, as applicable, entitled to vote on the action were present and voted. Notice of actions taken by written consent shall be delivered to the other Managers, committee members or Members, as applicable, no later than the second Business Day following the date the requisite consent is obtained.

(d) Meetings by Telephone. Anything to the contrary herein notwithstanding, Managers, members of any committee of the Board or the Members, as applicable, may participate in and/or hold any meeting by means of conference telephone, video conference or similar communications equipment by means of which all Persons participating in the meeting can hear each other, and the votes of any Managers, members of any committee of the Board or the

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Members, as applicable, participating by conference telephone, video conference or similar communications equipment shall be given full effect. The Secretary shall facilitate such participation by each Manager, committee member and Member by including in any notice of meeting conference telephone dial-in numbers, video conference links or similar information, in addition to information regarding physical location of the meeting applicable to those attending in person.

### Section 7.5 *Officers.*

(a) *Officers.* Subject to the authority of the Board, the day-to-day management and control of the Company, and its business and affairs shall be conducted or exercised by, or under the direction and authority of, the officers of the Company (the “*Officers*”). The Company may have such officers who hold such offices as may be determined from time to time by the Board. In addition to or in lieu of Officers, the Board may authorize any Person to take any action or perform any duties on behalf of the Company and any such Person may be referred to as an “*authorized person*.” An employee or other agent of the Company shall not be an authorized person unless specifically appointed as such by the Board.

(b) *Election and Term.* The Board may remove and replace the Officers at such times as it deems advisable. The Board may elect, from time to time, such other Officers as the Board may determine. Each Officer shall serve until his or her successor is elected and qualified or until his or her earlier death, disability, retirement, voluntary resignation or proper removal.

(c) *Compensation.* Except for any fees, salaries or compensation expressly set forth in an employment agreement between the Company and an Officer dated as of the Effective Date, no fees, salaries or compensation (including any severance) shall be awarded or paid to the Officers without the affirmative consent of the Board or in accordance with employment agreements, compensation or reimbursement policies adopted by the Board.

(d) *Duties of Officers.* The Officers, in the performance of their duties as such, shall owe to the Company fiduciary duties of the type owed by the officers of a corporation to such corporation and its stockholders under the laws of the State of Texas; *provided* that such duties shall not be deemed breached by the taking of actions taken in good faith at the express direction of the Board.

(e) *Emergency Officer Designation.* In the event of the death of both Allison Davidson and Jeffrey Davidson, if Allison Davidson or Jeffrey Davidson is then serving as an Officer, then the Board, sitting without Allison Davidson and Jeffrey Davidson if Allison Davidson and Jeffrey Davidson were serving as the Common Managers at the time of their death, may designate an interim Officer to act in such capacity. At such time as the vacancies in the Common Managers resulting from such deaths have been filled, the full Board shall either confirm the appointment of the interim Officer on a non-interim basis or such interim Officer shall be automatically removed and the full Board shall appoint a replacement Officer.

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## TEN-YEAR DISTRIBUTION RIGHT

**Section 8.1** *Ten-Year Distribution Right.* Unless prohibited by Texas law governing distributions to members, at any time within 30 days following an anniversary of the Effective Date, but in no event prior to the tenth anniversary of the Effective Date, if the Unpaid Series A Liquidation Preference of any outstanding Series A Preferred Units is greater than $0.00, upon the Company's receipt of a Forced Distribution Election Notice, the Company shall distribute to each holder of such Series A Preferred Units an amount equal to such holder's Unpaid Series A Liquidation Preference (the '*Forced Distribution Right*') on or prior to the date that is one year following receipt by the Company of the Forced Distribution Election Notice (the '*Forced Distribution Date*').

**Section 8.2** *Legally Available Funds.* If on the Forced Distribution Date Texas law governing distributions to members prevents the Company from distributing the entire Unpaid Series A Liquidation Preference, those funds that are legally available shall be used for such purpose. At any time after the Forced Distribution Date when additional funds of the Company are legally available for distribution, such funds shall immediately be distributed in respect of the Company's obligations under Section 8.1, and such funds shall not be used for any other purpose.

**Section 8.3** *Catch-Up Payment.* If the Company makes a distribution to the holders of Series A Preferred Units in respect of their Unpaid Series A Liquidation Preference pursuant to Section 8.1, the Company shall either (a) distribute such amounts pursuant to Section 5.1 (such that the holders of Common Units shall also receive a distribution on a pro rata basis in respect of their Common Units) or (b) treat such distributions pursuant to Section 8.1 as an advance of future distributions pursuant to Section 5.1 and Section 12.2(c)(iii), such that prior to any further distributions being made in respect of the Series A Preferred Units, the holders of Common Units shall receive 'catch-up' distributions in respect of their Common Units until each such holder has received distributions in an aggregate amount equal to the amount they would have received absent this Article 8.

## ADDITIONAL COVENANTS

**Section 9.1** *Protective Provisions.* At any time when at least 50% of the Series A Preferred Units issued pursuant to the Series A Purchase Agreement remain outstanding, the Company shall not, directly or indirectly (through a Subsidiary, by amendment to this Agreement or by merger, consolidation or otherwise), do any of the following, or cause or permit any of the following to be done, without (in addition to any other consent or vote required by the TBOC or this Agreement) the approval of the Requisite Preferred Holders:

(a) liquidate, dissolve or wind-up the affairs of the Company, or effect any Deemed Liquidation Event that provides for proceeds for distribution to the holders of Series A Preferred Units in an amount less than the Unpaid Series A Liquidation Preference of a Series A Preferred Unit at such time;

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(b) amend, alter or repeal any provision of the Company's Certificate of Formation or this Agreement;

(c) create or authorize (by reclassification or otherwise) the creation of or issue any Equity Security or effect any IPO Reorganization or IPO Recapitalization;

(d) increase or decrease the size of the Board;

(e) create any non-wholly owned Subsidiaries or spin out or sell any Subsidiary of the Company or any entity created by the Company;

(f) repurchase or redeem any Equity Securities, other than the purchase of Units from the Founding Member as contemplated by the Series A Purchase Agreement;

(g) adopt or amend the Incentive Plan or create any other new equity or phantom equity incentive plan, or other incentive plan or bonus plan; or

(h) agree to effect or implement any of the foregoing.

**Section 9.2 Reports.** The Company shall deliver the following reports and information to each Preferred Member:

(a) As soon as available and in any event within 90 days after the end of each Fiscal Year, an audited consolidated and consolidating balance sheet of the Company and its Subsidiaries as of the end of such Fiscal Year and the related audited consolidated and consolidating statements of operations, members' equity and cash flows for such Fiscal Year;

(b) As soon as available and in any event within 30 days after the end of each of the fiscal quarters of each Fiscal Year, an unaudited consolidated and consolidating balance sheet of the Company and its Subsidiaries as of the end of such fiscal quarter and the related unaudited consolidated and consolidating statements of operations, members' equity and cash flows for such fiscal quarter (in each case, which shall be subject to revision at the end of the applicable Fiscal Year); and

(c) Upon request, reasonable access to the Company's management team to discuss the Company's operations.

**Section 9.3 Confidentiality.** Each Manager and Member acknowledges that it may, as a result of their ownership of Units or their designees' service on the Board (if applicable), receive information from or regarding the Company, any of its Subsidiaries, the other Managers or Members or Affiliates of any of the foregoing in the nature of trade secrets or that otherwise is confidential, the release of which may be damaging to the Company, any of its Subsidiaries (including Persons with whom they may conduct business), the other Managers or Members or Affiliates of any of the foregoing. Each Manager and Member shall hold in confidence and shall not use for any purpose other than performing its duties as a Manager or monitoring its investment in the Company any information it receives regarding the Company, any of its Subsidiaries (including Persons with whom they may conduct business), the other Managers or Members or Affiliates of any of the foregoing that is identified as, or would reasonably be expected to be,

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confidential, and shall not disclose it to any Person (other than another Manager or Member) except for disclosures (a) compelled by Law or required or requested by subpoena or request from a court, regulator or a stock exchange (*provided, however*, that the Manager or Member shall notify the Company or the Manager or Member affected by such disclosure, as applicable, promptly and prior to making such disclosure, if practicable, and shall disclose only that portion of such information required to be disclosed and shall use all reasonable efforts, at the cost of the Company or the Manager or Member affected, to preserve the confidentiality thereof), (b) to Affiliates, advisers or representatives of the Manager or Member (*provided, however*, that such Affiliates, advisors or representatives are informed of the confidential nature of such information and owe a duty of confidentiality and non-use at least as restrictive as in this Section 9.3, and that the disclosing Manager or Member remains liable for any breach by its Affiliates, advisors and/or representatives), (c) of information that the Manager or Member also has received from a source independent of the Company, any of its Subsidiaries, any other Manager or Member or Affiliates of any of the foregoing, as applicable, that the Manager or Member reasonably believes obtained that information without breach of any obligation of confidentiality, (d) reasonably necessary for the exercise of a Manager's or Member's rights or the enforcement of the duties and obligations under this Agreement, (e) permitted by the Company or the Manager or Member affected by such disclosure, as applicable, (f) by any Manager, to the Member or Members who designated such Manager unless such disclosure could adversely affect the attorney-client privilege between the Company and its counsel or involves competitively sensitive information reasonably identified by the Company or (g) by any Member that is a private equity fund or sponsor, hedge fund or institutional investor to its investors, potential investors, members, partners or Affiliates so long as each such Person is made aware of the confidential nature of such information and subject to substantially similar confidentiality and non-use requirements. The Managers and Members agree that breach of the provisions of this Section 9.3 may cause irreparable injury to the Company or the other Managers or Members for which monetary damages (or other remedy at law) are inadequate in view of (a) the complexities and uncertainties in measuring the actual damages that would be sustained by reason of the failure of a Manager or Member to comply with such provisions and (b) the uniqueness of the Company's and each other Manager's or Member's business and the confidential nature of the information described in this Section 9.3. Accordingly, the Managers and Members agree that the provisions of this Section 9.3 may be enforced by specific performance, injunction or other equitable relief. The Company, other Managers' or Members' and their Affiliates' right to seek specific performance, injunction or other equitable relief pursuant to this Section 9.3 will be in addition to any other remedies they may have at law or in equity. No waiver of any violation of this Agreement will be implied from any failure by the Company, other Managers or Members or their Affiliates to take action under this Section 9.3. In addition to the disclosures permitted above, the holders of the Series A Preferred Units may disclose to third parties the fact that each has invested in the Company; *provided, however*, that any such disclosure omits the dollar amount and terms of such investment.

**Section 9.4 Fiduciary Duties; Business Opportunities.** Each Member agrees that any duty of loyalty, duty of care or fiduciary duties imposed under the TBOC or other applicable Law on the Members and their designees and the Managers shall be defined and limited as provided in this Section 9.4.

(a) Fiduciary Duties. To the fullest extent permitted by the TBOC, none of the Managers or Members, in their capacity as such, shall have any duty (including any fiduciary duty)

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to the Company or any of the Members, and the Managers' sole duty shall be to comply with the terms of this Agreement. It is the intent and agreement of the Members that except as set forth in Section 7.5(d) with respect to an Officer acting in its capacity as such, all fiduciary duties be, and hereby are, eliminated and no fiduciary duties shall apply to any action or omission taken by the Board, any Manager (in such Manager's capacity as such) or any Member (in such Member's capacity as such) or any of their respective Affiliates, employees, agents and representative hereunder or in connection with the Company

(b) Business Opportunities. To the fullest extent permitted by Law, the Company hereby renounces any (i) requirement or expectation that the Managers of the Company will devote substantially all of their business time to the Company; provided, however, that they devote a sufficient amount of their business time to discharge all of their duties, and (ii) interest or expectancy in, or in being offered an opportunity to participate in, any business opportunity, transaction or other matter in which a Member or Manager (or any of their Affiliates) participates or desires to participate in, unless any such business opportunity is presented to such a Person expressly and solely in such Person's capacity as a Manager of the Company (each such business opportunity other than those presented to such a Person in such Person's capacity as a Manager of the Company is referred to as a "Renounced Business Opportunity"); provided, that each Preferred Member shall present any such opportunity presented to them related to the outdoor/virtual fitness training industry to the Company and the Board for discussion, and such opportunity shall only constitute a Renounced Business Opportunity if such discussion does not result in an agreed approach to the opportunity. Except as provided in the foregoing proviso, no Member or Manager (or any of their Affiliates) shall have any obligation to communicate or offer any Renounced Business Opportunity to the Company, and any such Person may pursue any Renounced Business Opportunity solely for its own account.

(c) Additional Provisions Related to Duties of Members.

(i) To the fullest extent permitted by the TBOC, a Person, in performing his duties and obligations as a Member under this Agreement, shall be entitled to act or omit to act considering only such factors, including the separate interests of such Member, as such Member chooses to consider, and any action of a Member or failure to act, taken or omitted in good faith reliance on the foregoing provisions shall not, as between the Company and the other Members, on the one hand, and the applicable Member, on the other hand, constitute a breach of any duty (including any fiduciary or other similar duty, to the extent such exists under the TBOC or any other applicable Law) on the part of such Member to the Company or any other Member.

(ii) The Members (in their own names and in the name and on behalf of the Company) hereby waive to the fullest extent permitted by the TBOC, any duty or other obligation, if any, that a Member may have to the Company or another Member, pursuant to the TBOC or any other applicable Law, to the extent necessary to give effect to the terms of this Section 9.4.

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## EXCULPATION AND INDEMNIFICATION

### Section 10.1 *Exculpation.*

(a) No Manager, Officer, Partnership Representative or authorized person or any Manager, Officer or authorized person who is or was serving at the request of the Company as a member, manager, director, officer, partner, venturer, proprietor, trustee, employee, authorized person, agent or similar functionary of another foreign or domestic limited liability company, corporation, partnership, joint venture, sole proprietorship, trust, employee benefit plan or other enterprise shall be liable to the Company or any Member for monetary damages arising from any actions taken, or actions omitted to be taken, in his or her capacity as such except for (i) liability for acts or omissions that constitute fraud, gross negligence, willful misconduct or a knowing violation of Law, (ii) a willful breach of this Agreement by such Person or (iii) in the case of an Officer in its capacity as such, liability from any breach of any duty (including fiduciary duties) owed by such Officer to the Company, in each case, as determined by a final, nonappealable order of a court of competent jurisdiction. Notwithstanding anything to the contrary in this Agreement, to the maximum extent permitted by Law, the Company or any Member, as applicable, shall bear the burden of establishing a prima facie case that a Manager, Officer or authorized person is not entitled to be exculpated pursuant to this Section 10.1. In addition, by resolution of the Board, the Company may, but is not obligated to, exculpate any employee or agent of the Company to the same degree that a Manager, Officer or authorized person is exculpated under this Section 10.1.

(b) Each Member, in its sole and absolute discretion, may exercise or refrain from exercising any rights or privileges that such Member may have pursuant to this Agreement, or at law or in equity, and such Member shall not incur or be subject to any liability or obligation to the Company, any other Member or any other Person by reason of exercising or refraining from exercising any such rights or privileges.

### Section 10.2 *Indemnification.*

The Company shall enter into a written indemnification agreement, in a form approved by the Board, with each Manager pursuant to which the Company shall indemnify and advance expenses to each Manager; *provided, however*, that to the extent any Manager is also an Officer of the Company, such indemnification agreement shall also provide indemnification and advancement rights to such Manager with respect to such Manager's service as an Officer of the Company. Subject to the limitations set forth in this Article 10, each Person who was or is made a party or is threatened to be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative (hereinafter a '*Proceeding*'), or any appeal in such a Proceeding or any inquiry or investigation that could lead to such a Proceeding, by reason of the fact that it, or a Person of whom it is the legal representative, is or was a Manager or Officer or while a Manager or Officer is or was serving at the request of the Company as a member, manager, director, officer, partner, venturer, proprietor, trustee, employee, authorized person, agent or similar functionary of another foreign or domestic limited liability company, corporation, partnership, joint venture, sole proprietorship, trust, employee benefit plan or other enterprise, shall be, except as permitted below in this Section 10.2, indemnified by the Company (as the indemnitor of first resort) to the fullest extent permitted by the TBOC, as the same exists or may hereafter be amended (but, in the case

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of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than said Law permitted the Company to provide prior to such amendment) against judgments, penalties (including excise and similar taxes and punitive damages), fines, settlements and reasonable expenses (including attorneys' fees) actually incurred by such Person in connection with such Proceeding (all of such amounts and expenses referred to in this Section 10.2 are referred to collectively as '*Damages*'), and indemnification under this Article 10 shall continue as to a Person who has ceased to serve in the capacity which initially entitled such Person to indemnity hereunder. Notwithstanding anything to the contrary in this Section 10.2, a Person shall not be entitled to indemnification hereunder if it is determined by a nonappealable order of a court of competent jurisdiction that, with respect to the matter for which such Person seeks indemnification (i) such Person engaged in acts or omissions that constitute fraud, gross negligence, willful misconduct or a knowing violation of Law, (ii) such Person's conduct constitutes a willful breach of this Agreement or (iii) in the case of an Officer in its capacity as such, such Officer's conduct constitutes a breach of a duty (including fiduciary duties) owed by such Officer to the Company. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of *nolo contendere* or its equivalent shall not, of itself, create a presumption that the Person is not entitled to be indemnified pursuant to this Section 10.2.

**Section 10.3 Advance Payment.** The right to indemnification conferred in this Article 10 shall include the right to be paid or reimbursed by the Company for the reasonable expenses incurred by a Person entitled to be indemnified under Section 10.2 who was, is or is threatened to be made a named defendant or respondent in a Proceeding in advance of the final disposition of the Proceeding and without any determination as to the Person's ultimate entitlement to indemnification; *provided, however*, that the payment of such expenses incurred by any such Person in advance of the final disposition of a Proceeding shall be made only upon delivery to the Company of a written affirmation by such Person of its good faith belief that it has met the standard of conduct necessary for indemnification under this Article 10 and a written undertaking, by such Person, to repay all amounts so advanced if it shall ultimately be determined that such indemnified Person is not entitled to be indemnified under this Article 10 or otherwise.

**Section 10.4 Indemnification of Employees and Agents.** The Company, by adoption of a resolution of the Board or entry into a written indemnification agreement approved by the Board, may, but shall not be obligated to, indemnify and advance expenses to an employee or agent of the Company who is not a Manager, Officer or authorized person to the same extent and subject to the same conditions under which it may indemnify and advance expenses to Managers, Officers and authorized persons under this Article 10.

**Section 10.5 Appearance as a Witness.** Notwithstanding any other provision of this Article 10, the Company may, by adoption of a resolution of the Board, pay or reimburse expenses incurred by a Manager, Officer, authorized person or Member in connection with its appearance as a witness or other participation in a Proceeding at a time when he or she is not a named defendant or respondent in the Proceeding.

**Section 10.6 Nonexclusivity of Rights.** The right to indemnification and the advancement and payment of expenses conferred in this Article 10 shall not be exclusive of any other right that a Manager, Officer, authorized person or other Person indemnified pursuant to this

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Article 10 may have or hereafter acquire by vote of the Board or by written indemnification agreement approved by the Board.

## ARTICLE 11
TAXES

**Section 11.1 *Tax Returns.*** The Company shall prepare and timely file all U.S. federal, state, provincial, local and foreign tax returns and information returns required to be filed by the Company. Unless otherwise determined by the Board, any income tax return of the Company shall be prepared by the Accounting Firm. Each Member shall furnish to the Company all pertinent information in its possession relating to the Company's operations that is necessary to enable the Company's tax returns to be timely prepared and filed. The Company shall deliver a Schedule K-1 to each of the Members as soon as practicable after the close of each taxable year, together with such additional information as may be reasonably requested by the Members in order for the Members to file their respective tax returns reflecting the Company's operations. The Company shall bear the costs of the preparation and filing of its returns.

**Section 11.2 *Tax Partnership.*** Except as provided in Section 6.7, it is the intention of the Members that the Company be classified as a partnership for U.S. federal income tax purposes. Unless otherwise approved by the Board, neither the Company nor any Member shall make an election for the Company to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar provisions of applicable state law or to be classified as other than a partnership pursuant to Treasury Regulation Section 301.7701-3.

**Section 11.3 *Tax Elections.*** The Company shall make the following elections on the appropriate tax returns:

- (a) to adopt the calendar year as the Company's Fiscal Year, if permitted under the Code;
- (b) to adopt the accrual method of accounting for U.S. federal income tax purposes;
- (c) to elect to amortize the organizational expenses of the Company as permitted by Code Section 709(b); and
- (d) any other election the Board may deem appropriate, including a "push out" election under Section 6226 of the Code. Upon request of the Board, each Member shall cooperate in good faith with the Company in connection with the Company's efforts to elect out of the application of the company-level audit and adjustment rules of the Bipartisan Budget Act, if applicable.

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**Section 11.4 Partnership Representative.** The Board may appoint and replace a Partnership Representative and authorize the Partnership Representative to take any and all actions determined by the Board and permissible under the Bipartisan Budget Act. Pursuant to Section 13.7, the Board shall have the authority to amend this Section 11.4 to give effect to the provisions of the Bipartisan Budget Act and each Member agrees to be bound by the provisions of any such amendment. The Partnership Representative is hereby authorized to take such actions and to execute and file all statements and forms on behalf of the Company that are approved by the Board and are permitted or required by the applicable provisions of the Bipartisan Budget Act (including a “push-out” election under Section 6226 of the Code or any analogous election under state or local tax law) or in connection with any other tax proceeding. Each Member shall cooperate with the Partnership Representative and do or refrain from doing any or all things requested by the Partnership Representative and approved by the Board (including paying any and all resulting taxes, additions to tax, penalties and interest in a timely fashion) in connection with any examination of the Company’s affairs by any federal, state, or local tax authorities, including resulting administrative and judicial proceedings. No Member shall have any claim against the Partnership Representative, any Manager or the Company for any actions taken (or any failures to take action) by such Persons in good faith. All reasonable, documented cost or expense incurred by the Partnership Representative in connection with its duties, including the preparation for or pursuance of administrative or judicial proceedings, shall be paid by the Company.

## **ARTICLE 12**
**DISSOLUTION, WINDING-UP AND TERMINATION**

### **Section 12.1 Dissolution.**

(a) General. Subject to Section 12.1(b), the Company shall dissolve and its affairs shall be wound up on the first to occur of the following events (each a “*Dissolution Event*”), and no other event shall cause the Company’s dissolution:

- (i) the approval of the Board, a Majority Interest and, if applicable, the Requisite Preferred Holders as provided in Section 9.1; or
- (ii) the entry of a decree of judicial dissolution of the Company under Section 11.314 of the TBOC.

(b) Continuance of the Company. To the maximum extent permitted by the TBOC, the death, retirement, resignation, expulsion, bankruptcy or dissolution of a Member shall not constitute a Dissolution Event and, notwithstanding the occurrence of any such event or circumstance, the business of the Company shall be continued without dissolution.

**Section 12.2 Winding-Up and Termination.** On the occurrence of a Dissolution Event, the Board may select one or more Persons to act as liquidator or may itself act as liquidator. The liquidator shall proceed diligently to wind up the affairs of the Company and make final distributions as provided herein and in the TBOC. The costs of winding up shall be borne as a Company expense, including reasonable compensation to the liquidator if approved by the Board. Until final distribution, the liquidator shall continue to operate the Company property with all of

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the power and authority of the Board. The steps to be accomplished by the liquidator are as follows:

(a) **Accounting.** As promptly as possible after dissolution and again after final winding-up, the liquidator shall cause a proper accounting to be made by the Accounting Firm of the Company's assets, liabilities and operations through the last calendar day of the month in which the dissolution occurs or the final winding up is completed, as applicable.

(b) **Satisfaction of Obligations.** The liquidator shall pay, satisfy or discharge from Company funds all of the debts, liabilities, contracts and other obligations of the Company (including all expenses incurred in winding up and any advances described in Section 4.3); *provided, however*, that the liquidator may establish one or more cash escrow funds (in such amounts and for such terms as the liquidator may reasonably determine) for the payment of contingent liabilities.

(c) **Distribution of Assets.** All remaining assets of the Company shall be distributed to the Members as follows:

(i) the liquidator may sell any or all Company property, including to the Members on arm's length terms, and any resulting gain or loss from each sale shall be computed and allocated to the Capital Accounts of Members in accordance with the provisions of Section 5.3 and Section 5.4;

(ii) with respect to all Company property that has not been sold, the Fair Market Value of that property shall be determined and the Capital Accounts of Members shall be adjusted to reflect the manner in which the unrealized income, gain, loss and deduction inherent in property that has not been reflected in the Capital Accounts previously would be allocated among Members if there were a taxable disposition of that property for the Fair Market Value of that property on the date of distribution;

(iii) the property of the Company shall be distributed:

(A) *first*, to each Preferred Member with an Unpaid Series A Liquidation Preference that is greater than $0.00, pro rata among such Preferred Members based on their relative Unpaid Series A Liquidation Preferences, until each such Preferred Member has been distributed an aggregate amount sufficient to cause such Preferred Member's Unpaid Series A Liquidation Preference to be reduced to $0.00;

(B) *second*, to Common Members, pro rata among such Common Members based on the number of Common Units held, until each such Common Member has received an aggregate amount in respect of their Common Units equal to the product of (1) the aggregate amount of distributions made pursuant to

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Section 12.2(c)(iii)(A) and this Section 12.2(c)(iii)(B) *times* (2) such Common Member's Percentage Interest; and

(C) *thereafter*, to the Preferred Members and Common Members pro rata in proportion to their relative Percentage Interests.

(d) **Distributions in Kind.** All distributions in kind to the Members shall be made subject to the liability of each distributee for costs, expenses, debts, liabilities, contracts and other obligations theretofore incurred or for which the Company has committed prior to the date of termination and those costs, expenses, debts, liabilities, contracts and other obligations shall be allocated to the distributee pursuant to this Section 12.2. The distribution of cash and/or property to a Member in accordance with the provisions of this Section 12.2 constitutes a complete return to the Member of its Capital Contributions and all the Company's property and constitutes a compromise to which all Members have consented. To the extent that a Member returns funds to the Company, it has no claim against any other Member for those funds.

**Section 12.3 *Certificate of Cancellation.*** On completion of the distribution of Company assets as provided herein, the Board (or any Person or Persons as the TBOC may require or permit) shall file a Certificate of Termination with the Secretary of State of Texas, terminate and cancel any other filings made pursuant to Section 2.5, and take such other actions as may be necessary to terminate the existence of the Company. Upon the effectiveness of the Certificate of Termination, the existence of the Company shall cease, except as may be otherwise provided by the TBOC or other applicable Law.

### GENERAL PROVISIONS

**Section 13.1 *Attorneys' Fees and Expenses.*** If any action, suit or other proceeding is instituted concerning or arising out of this Agreement or any transaction contemplated under this Agreement, the prevailing party shall recover all of such party's costs and attorneys' fees incurred in each such action, suit or other proceeding, including any and all appeals or petitions from such action, suit or other proceeding.

**Section 13.2 *Books.*** To the extent required by the TBOC, the Company shall maintain or cause to be maintained complete and accurate records and books of account of the Company's affairs at the principal office of the Company.

**Section 13.3 *Bank Accounts.*** The Company may establish one or more separate bank and investment accounts and arrangements, which shall be maintained in the Company's name with financial institutions and firms that the Board may reasonably determine. The Company shall not commingle the Company's funds with the funds of any Member.

**Section 13.4 *Notices.*** Except as expressly set forth to the contrary in this Agreement, all notices, requests or consents provided for or permitted to be given under this Agreement must be in writing and must be delivered to the recipient in person, by courier or mail or by facsimile, or e-mail transmission; and a notice, request or consent given under this Agreement is effective on receipt by the Person to receive it. Notices given by facsimile or e-mail shall be deemed to have been received (a) on the day on which the sender receives answer back confirmation if such

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confirmation is received before or during normal business hours of any Business Day or (b) on the next Business Day after the sender receives answer back confirmation if such confirmation is received (i) after normal business hours on any Business Day or (ii) on any day other than a Business Day. All notices, requests and consents to be sent to a Member must be sent to or made at the addresses given for that Member on Schedule 1 or Schedule 2, as applicable, or such other address as that Member may specify by notice to the other Members in accordance with this Section 13.4. Subject to Section 7.4(a), whenever any notice is required to be given by Law, the Certificate or this Agreement, a written waiver thereof, signed by the Person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice.

**Section 13.5 *Entire Agreement; Supersedure.*** This Agreement and any other agreements expressly mentioned herein, including the Series A Purchase Agreement and the Repurchase Agreement, constitute the entire agreement of the Members relating to the Company and supersede all prior contracts or agreements with respect to the Company, whether oral or written.

**Section 13.6 *Effect of Waiver or Consent.*** No delay or omission to exercise any right, power or remedy accruing to any Person, upon any breach or default by any Person in the performance by that Person of its obligations with respect to the Company, shall impair any such right, power or remedy of such Person; nor shall it be construed to be a waiver of any such breach or default or an acquiescence in such breach or default or of any similar breach or default occurring after such breach or default; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default occurring before or after such breach or default. Any waiver, consent or approval of any kind or character on the part of any Person of any breach or default under this Agreement must be made in writing and signed by the Person against whom such waiver, consent or approval is to be enforced, and shall be effective only to the extent specifically set forth in such writing. All remedies, whether under this Agreement or by Law or otherwise afforded to any party, shall be cumulative and not alternative.

**Section 13.7 *Amendment or Restatement.*** Except as expressly set forth herein (including Section 9.1), this Agreement may be amended or restated, and any provision of this Agreement may be waived, only by a written instrument adopted, executed and agreed to by the Company (upon Board approval) and approval of the Members holding a Majority Interest (without limiting the foregoing, the Members hereby agree to be bound by any such amendment or waiver so approved that by its terms is binding upon all of the Members); *provided, however*, that:

(a) to the extent that a provision of this Agreement requires a specified vote of the Members, or the vote of some or all of the holders of a specified class or series of Units, then any amendment or waiver of that provision will also require the consent of such specified vote of the Members or the vote of the requisite holders of such specified class or series of Units, as applicable;

(b) the Company (with Board approval) may amend Schedule 1 or Schedule 2 without the consent of any Person to reflect new Members admitted in accordance with this

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Agreement, changes to the number of outstanding Units issued to any Member in accordance with this Agreement, changes to the notice addresses and other similar relevant information;

(c) the Board may amend the provisions of this Agreement without the consent of any Person to comply with the provisions of the Bipartisan Budget Act and any Treasury Regulations or other administrative pronouncements promulgated thereunder in any manner reasonably determined by the Board; and

(d) except as permitted by Section 13.7(c), this Agreement shall not be amended without the consent of each Person adversely affected if such amendment would modify the limited liability of a Member or otherwise on its face affect such Member disproportionately and adversely (determined separately for each class and series of Units).

The Certificate may be amended or restated only with the approval of the Company (upon Board approval, approval of a Majority Interest and, if applicable, the Requisite Preferred Holders as provided in Section 9.1); *provided, however*, that no such amendment or restatement of the Certificate may effect any change described in this Section 13.7 without the consent of the Member or Members whose consent would be required under such clauses if such change were being effected through an amendment or restatement of this Agreement. The Company shall provide copies of any amendment or restatement of this Agreement or the Certificate to the Members promptly (and, in any event, within ten (10) Business Days) following its adoption in accordance with this Agreement.

**Section 13.8 Binding Effect.** This Agreement is binding on and inures to the benefit of the Members and their respective heirs, legal representatives, successors and permitted assigns.

# **Section 13.9 Governing Law; Submission to Jurisdiction.**

(a) This Agreement is governed by and shall be construed in accordance with the Laws of the State of Texas, excluding any conflict-of-laws rule or principle that might refer the governance or the construction of this Agreement to the Law of another jurisdiction. The Company and the Members (a) hereby irrevocably and unconditionally submit to the jurisdiction of the courts of the State of Texas located in Travis County, Texas and to the jurisdiction of the United States District Court for the Western District of Texas, Austin Division, for the purpose of any suit, action or other proceeding arising out or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in such above named courts, and (c) hereby waive, and agree not to assert, by way of motion, as a defense or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. **THE MEMBERS WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE MEMBERS AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE MEMBERS TO IRREVOCABLY WAIVE TRIAL BY JURY, AND THAT ANY DISPUTE**

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# **BETWEEN THEM RELATING TO THIS AGREEMENT SHALL INSTEAD BE TRIED BY A COURT OF COMPETENT JURISDICTION SITTING WITHOUT A JURY.**

(b) The foregoing notwithstanding, but subject to subsection (c) below, any dispute, controversy or claim between or among Members and the Company arising out of or relating to this Agreement (“Disputes”) will be finally settled by arbitration in Austin, Texas in accordance with the then-existing American Arbitration Association (“AAA”) Arbitration Rules. The arbitration award shall be final and binding on both parties. Any arbitration conducted under this Section 13.9 shall be private, and shall be heard by a single arbitrator (the “Arbitrator”) selected in accordance with the then-applicable rules of the AAA. The parties agree to use commercially reasonable efforts to identify an arbitrator who will execute and deliver to the parties a written Statement of Faith that directly reflects that certain Statement of Faith used by the National Christian Foundation. The Arbitrator shall expeditiously hear and decide all matters concerning the Dispute. Except as expressly provided to the contrary in this Agreement, the Arbitrator shall have the power to (i) gather such materials, information, testimony and evidence as the Arbitrator deems relevant to the Dispute before him or her (and each party will provide such materials, information, testimony and evidence requested by the Arbitrator), and (ii) grant injunctive relief and enforce specific performance. All Disputes shall be arbitrated on an individual basis, and each party hereto hereby foregoes and waives any right to arbitrate any Dispute as a class action or collective action or on a consolidated basis or in a representative capacity on behalf of other persons or entities who are claimed to be similarly situated, or to participate as a class member in such a proceeding. The decision of the Arbitrator shall be reasoned, rendered in writing, be final and binding upon the disputing parties and the parties agree that judgment upon the award may be entered by any court of competent jurisdiction. The party whom the Arbitrator determines is the prevailing party in such arbitration shall receive, in addition to any other award pursuant to such arbitration or associated judgment, reimbursement from the other party of all reasonable legal fees and costs associated with such arbitration and associated judgment.

(c) Notwithstanding subsection (b) above, either party may make a timely application for, and obtain, judicial emergency or temporary injunctive relief to enforce any of the provisions of Article 9; *provided, however*, that the remainder of any such Dispute (beyond the application for emergency or temporary injunctive relief) shall be subject to arbitration under this Section 13.9.

(d) Nothing in this Section 13.9 shall prohibit a party to this Agreement from (i) instituting litigation to enforce any arbitration award, or (ii) joining the other parties to this Agreement in a litigation initiated by a person or entity that is not a party to this Agreement.

**Section 13.11 Severability.** If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons or circumstances shall be enforced to the greatest extent permitted by Law.

**Section 13.12 Further Assurances.** In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and deliver any additional

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documents and instruments and perform any additional acts that may be reasonably necessary or appropriate to effectuate and perform the provisions of this Agreement and those transactions.

**Section 13.13 Waiver of Certain Rights.** Each Member irrevocably waives any right it may have to maintain any action for dissolution of the Company or for partition of the property of the Company.

**Section 13.14 Counterparts.** This Agreement may be executed in any number of counterparts, including facsimile counterparts and counterparts executed in portable document format (PDF) or with electronic signatures, with the same effect as if all signing parties had signed the same document. All counterparts shall be construed together and constitute the same instrument.

*[Signature Pages Follow]*

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DocuSign Envelope ID: D1539A0C-276B-488E-8572-0E9BBFF049D9

**IN WITNESS WHEREOF**, the Company and the undersigned Members have executed this Agreement as of the Effective Date.

**THE COMPANY:**

**CG CONSOLIDATED, LLC**

By:

DocuSigned by:  
9E9997D0D0E4A4

Name: Allison Davidson
Title: Co-Chief Executive Officer

SIGNATURE PAGE TO
THIRD AMENDED AND RESTATED COMPANY AGREEMENT
OF
CG CONSOLIDATED, LLC

DocuSign Envelope ID: D1539A0C-276B-488E-8572-0E9BBFF049D9

**THE INITIAL MEMBERS:**

**CAMP GLADIATOR, INC.**

DocuSigned by:
By: [Signature]
Name: Allison Davidson
Title: President

SIGNATURE PAGE TO
THIRD AMENDED AND RESTATED COMPANY AGREEMENT
OF
CG CONSOLIDATED, LLC

**THE INITIAL MEMBERS:**

**CG INVESTMENT PARTNERS, LP**

By: CG Investment Partners GP, LLC, its general partner

By:

Name: Michael Tremain

Title: President

SIGNATURE PAGE TO
THIRD AMENDED AND RESTATED COMPANY AGREEMENT
OF
CG CONSOLIDATED, LLC

**THE INITIAL MEMBERS:**

**SOVEREIGN'S CG, LLC**

By:

Name: Lukas Roush

Title: Manager

SIGNATURE PAGE TO
THIRD AMENDED AND RESTATED COMPANY AGREEMENT
OF
CG CONSOLIDATED, LLC

## EXHIBIT A

### FORM OF ADOPTION AGREEMENT

This Adoption Agreement (this “*Adoption Agreement*”) is executed as of [_________] pursuant to the terms of the Third Amended and Restated Limited Liability Agreement of CG Consolidated, LLC dated as of 4, 2021, and the Schedules and Exhibits thereto, a copy of which is attached hereto (as amended and/or restated from time to time in accordance with the provisions thereof, the “*LLC Agreement*”), by the undersigned holder of Units (the “*Unitholder*”). By the execution of this Adoption Agreement, the Unitholder agrees as follows:

1. **Acknowledgment.** The Unitholder acknowledges that Unitholder is acquiring [Preferred Units/Common Units] (the “*Units*”), subject to the terms and conditions of the LLC Agreement. Capitalized terms used herein without definition are defined in the LLC Agreement and are used herein with the same meanings set forth therein.

2. **Agreement.** The Unitholder (a) agrees that the Units acquired by the Unitholder shall be subject to the terms and conditions of the LLC Agreement and (b) hereby joins in, and agrees to be bound by, the LLC Agreement as a [Preferred Member/Common Member] with the same force and effect as if the Unitholder was originally a party thereto.

3. **Representations, Warranties and Covenants.** The Unitholder represents and warrants to the Company and the other Members, and covenants and agrees with the Company and the other Members, as follows:

- (a) *Organization; Existence.* Unitholder, if the Unitholder is a Person other than a natural person, is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its formation.
- (b) *Power; Authority.* Unitholder has full power and authority to execute and deliver this Adoption Agreement and the other documents, instruments, certificates or agreements executed and delivered by a Member in connection with being admitted to the Company as a Member (the “*Investment Documents*”) to which it is a party and to perform its obligations hereunder and thereunder, and the execution and delivery by Unitholder of this Adoption Agreement and each other Investment Document to which it is a party, and the performance of all obligations hereunder and thereunder, have been duly authorized by all necessary action.
- (c) *Enforceability.* This Adoption Agreement and each other Investment Document to which Unitholder is a party has been duly and validly executed and delivered by Unitholder and, assuming due execution and delivery of this Adoption Agreement and each other Investment Document to which Unitholder is a party by the other parties hereto and thereto, constitutes the binding obligation of Unitholder enforceable against Unitholder in accordance with its terms, except as such enforceability may be limited by

applicable bankruptcy, insolvency, reorganization or similar Laws affecting creditors' rights generally, and by principles of equity.

(d) No Conflicts. The execution, delivery and performance by Unitholder of this Adoption Agreement and each other Investment Document to which Unitholder is a party will not, with or without the giving of notice or the lapse of time, or both, (i) violate any provision of Law to which Unitholder is subject, (ii) violate any order, judgment or decree applicable to Unitholder, (iii) if the Unitholder is a Person other than a natural person, conflict with, or result in a breach or default under, any term or condition of its certificate of incorporation or bylaws, certificate of limited partnership or partnership agreement, certificate of formation or limited liability company agreement, trust agreement or similar governing document(s), as applicable, or (iv) conflict with, or result in a breach of default under, any term or condition of any material agreement or instrument to which Unitholder is a party or by which it is bound or to which its assets are subject. No consent, approval, authorization or order of any court or governmental agency or authority or of any third party which has not been obtained is required in connection with the execution, delivery and performance by Unitholder of this Adoption Agreement or any of the other Investment Documents to which it is a party.

(e) Investment Matters. Unitholder is acquiring Units in the Company for its own account, for investment purposes, and not with a view to or in connection with the resale or other distribution of such Units. [Unitholder is an Eligible Investor.] Unitholder understands and agrees that the Units have not been registered under the Securities Act and are "restricted securities." Unitholder has knowledge of finance, securities and investments generally, experience and skill in investments based on actual participation, and has the ability to bear the economic risks of Unitholder's investment in the Company.

(f) Units Subject to Agreements. Unitholder understands that the Units acquired by it shall, upon issuance by the Company, without any further action on the part of the Company or such Person, be subject to the terms, conditions and restrictions contained in the LLC Agreement, including all amendments and restatements thereof as are made in accordance with the provisions of such agreement.

(g) No Brokers. Neither Unitholder nor any of its Affiliates, or any Person related by blood, marriage or adoption to any of the foregoing, or any Person in which any of the foregoing owns a beneficial interest, has employed or retained any broker, agent or finder in connection with this Adoption Agreement or the transactions contemplated herein, or paid or agreed to pay any brokerage fee, finder's fee, commission or similar payment to any Person on account of this Adoption Agreement or any of the other Investment Documents to which Unitholder is a party or the transactions

Exhibit A

provided for herein or therein, which fee, commission or payment will constitute an obligation payable by the Company or any other Member; and Unitholder shall indemnify and hold harmless the Company and the other Members from any costs, including attorneys' fees, and liability arising from the claim of any broker, agent or finder employed or retained by Unitholder in connection with this Adoption Agreement or any of the other Investment Documents to which Unitholder is a party or the transactions provided for herein or therein.

(h) Survival of Representations and Warranties. All representations and warranties made by Unitholder in this Adoption Agreement shall be considered to have been relied upon by the Company and the other Members and shall survive the execution and delivery of this Adoption Agreement regardless of any investigation made by or on behalf of any such party.

4. Notice. Any notice required by the LLC Agreement shall be given to Unitholder at the address listed beside Unitholder's signature below.

5. Joinder. The spouse of the undersigned Unitholder, if applicable, executes this Adoption Agreement to acknowledge its fairness and that it is in such spouse's best interests, and to bind such spouse's community interest, if any, in the Units to the terms and conditions of the LLC Agreement. If the undersigned Unitholder delivers this signature page to the Company without the signature of his or her spouse below, then he or she hereby represents to the Company and the other Members that he or she has no spouse.

[Signature Page Follows]

Exhibit A

**UNITHOLDER:**

By: _________________________

Information for Notices:

_________________________

_________________________

Facsimile: (___) ___-____

Email: _______________

Exhibit A

# **SPOUSAL AGREEMENT**

The undersigned, being the spouse of [__________], a holder of Membership Interests in and a Member of the Company, agrees to be bound by the provisions of the Third Amended and Restated Limited Liability Agreement of CG Consolidated, LLC dated as of May 4, 2021, and the Schedules and Exhibits thereto, a copy of which is attached hereto (as amended and/or restated from time to time in accordance with the provisions thereof, the “*LLC Agreement*”), to the extent applicable to the undersigned, including any provisions applicable to a Member’s spouse or former spouse or the interest of a Member’s spouse or former spouse in any Membership Interest.

The undersigned agrees that **[his/her]** interest, if any, in any Membership Interests or Units of the Company subject to the Agreement shall be irrevocably bound by the LLC Agreement and further understands and agrees that any community property interest that **[he/she]** may have in such Membership Interests or Units of the Company shall be similarly bound by the Agreement.

The undersigned is aware that the legal, financial and related matters contained in the Agreement are complex and that **[he/she]** is free to seek independent professional guidance or counsel with respect to this Spousal Agreement. The undersigned represents and warrants that **[he/she]** has either sought such guidance or counsel or determined after reviewing the Agreement carefully that **[he/she]** waives such right.

Signature of spouse: _________________________

Printed name of spouse:_________________________

Exhibit A

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** CG Consolidated, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** TX

**Date of Organization:** 12-06-2016

**Physical Address:** 2301 W. Anderson Ln. #102-108, Austin, TX, 78757

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

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

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 6.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Simple Agreement for Future Equity (SAFE)

**Number of Securities Offered:** 1000000

**Price per Security:** $1.00

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

**Target Offering Amount:** $1,000,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $5,000,000.00

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 94

**Total Assets (Most Recent Fiscal Year):** $14,077,087.00

**Total Assets (Prior Fiscal Year):** $9,335,778.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $7,629,012.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $4,913,713.00

**Accounts Receivable (Most Recent Fiscal Year):** $132,842.00

**Accounts Receivable (Prior Fiscal Year):** $36,000.00

**Short-Term Debt (Most Recent Fiscal Year):** $5,300,129.00

**Short-Term Debt (Prior Fiscal Year):** $5,744,197.00

**Long-Term Debt (Most Recent Fiscal Year):** $2,422,340.00

**Long-Term Debt (Prior Fiscal Year):** $717,703.00

**Revenues/Sales (Most Recent Fiscal Year):** $53,223,084.00

**Revenues/Sales (Prior Fiscal Year):** $59,095,865.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $37,758,580.00

**Cost of Goods Sold (Prior Fiscal Year):** $41,762,490.00

**Taxes Paid (Most Recent Fiscal Year):** $182,942.00

**Taxes Paid (Prior Fiscal Year):** $264,602.00

**Net Income (Most Recent Fiscal Year):** $-975,287.00

**Net Income (Prior Fiscal Year):** $2,553,757.00

**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:** CG Consolidated, LLC

**Signature:** Jeff Davidson

**Title:** Co-Founder & Co-CEO

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**Signature:** Michael Tremain

**Title:** Board Member

**Date:** 03-06-2023

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**Signature:** Jeff Davidson

**Title:** Co-Founder & Co-CEO

**Date:** 03-06-2023

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**Signature:** Allison Davidson

**Title:** Co Founder and Co CEO

**Date:** 02-28-2023

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**Signature:** Jeff Davidson

**Title:** Co-Founder & Co-CEO

**Date:** 02-28-2023