# EDGAR Filing Document

**Accession Number:** 0001967944
**File Stem:** 0001644600-23-000052
**Filing Date:** 2023-3
**Character Count:** 503385
**Document Hash:** bb190406cc5a32f73f3bff7280449741
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001644600-23-000052.hdr.sgml**: 20230330

**ACCESSION NUMBER**: 0001644600-23-000052

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 8

**FILED AS OF DATE**: 20230330

**DATE AS OF CHANGE**: 20230330

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Blokable, LLC
- **CENTRAL INDEX KEY:** 0001967944
- **IRS NUMBER:** 861345959
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-32089
- **FILM NUMBER:** 23781356

**BUSINESS ADDRESS:**
- **STREET 1:** 1750 CREEKSIDE OAKS DR STE 130
- **CITY:** SACRAMENTO
- **STATE:** CA
- **ZIP:** 95833
- **BUSINESS PHONE:** 8009286778

**MAIL ADDRESS:**
- **STREET 1:** 1750 CREEKSIDE OAKS DR STE 130
- **CITY:** SACRAMENTO
- **STATE:** CA
- **ZIP:** 95833

### Attached PDF Documents

**Attachment 1:** `BlokableFormC.pdf`

# **PART II**

# **OFFERING MEMORANDUM DATED MARCH 30, 2023**

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

Blokable, LLC  
1750 Creekside Oaks Drive, Suite 130  
Sacramento, CA 95833  
www.blokable.com

# **Up to \$5,000,000 in CF Convertible Notes**

# **Minimum Investment Amount: \$500**

Blokable, LLC (“Blokable,” “the Company,” “we,” or “us”), is offering up to $5,000,000 worth of Series 2023-CF convertible promissory notes (the “Security,” “Securities,” and “CF Convertible Notes”). The minimum target amount under this Regulation CF offering (the “Offering”) is $25,000 (the “Target Amount”). The Company must reach its Target Amount of $25,000 by June 28, 2023, the end date of the offering. Unless the Company raises at least the Target Amount of $25,000 under the Offering by June 28, 2023, no securities will be sold in this offering, investment commitments will be cancelled, and committed funds will be returned.

**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.

This disclosure document contains forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to the company’s management. When used in this disclosure document and the company offering materials, the words “estimate”, “project”, “believe”, “anticipate”, “intend”, “expect”, and similar expressions are intended to identify forward-looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties that could cause the Company’s action results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these

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forward-looking statements to reflect events or circumstances after such state or to reflect the occurrence of unanticipated events.

*In the event that we become a reporting company under the Securities Exchange Act of 1934, we intend to take advantage of the provisions that relate to “Emerging Growth Companies” under the JOBS Act of 2012, including electing to delay compliance with certain new and revised accounting standards under the Sarbanes-Oxley Act of 2002.*

#### **Due Diligence**

Due diligence by CrowdCheck, Inc.

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

*Annual Interest Rate subject to adjustment of 10% bonus for StartEngine shareholders. See 10% Bonus below.*

#### **Investment Incentives and Bonuses\***

##### **Combo/Avid Investor Perk**

Invest $2,000+ within the first week and receive Monthly investor updates.

Invest $5,000+ within the first two weeks and receive Monthly investor updates and your name will be inscribed on the ‘Housing Revolutionaries’ wall in lobby of Factory 1.

Invest $10,000+ within the three weeks and receive Monday investor updates, dinner with company leadership in Sacramento and your name will be inscribed on the ‘Housing Revolutionaries’ wall in lobby of Factory 1 + your name will be inscribed on the ‘Housing Revolutionaries’ wall in lobby of 707 E Street.

##### **Amount-Based**

###### **Tier 1 | \$2,000+**

Invest $2,000+ and receive a quarterly investor email update.

###### **Tier 2 | \$5,000+**

Invest $5,000+ and receive a monthly investor update.

###### **Tier 3 | \$10,000+**

Invest $10,000+ and receive a Monthly investor update + dinner with company leadership in Sacramento.

###### **Tier 4 | \$25,000+**

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Invest $25,000+ and receive a monthly investor update + dinner with company leadership in Sacramento+ name inscribed on 'Housing Revolutionaries' wall in the lobby of Factory 1.

#### **Tier 5 | \$50,000+**

Invest $50,000+ and receive a monthly investor update + dinner with company leadership in Sacramento + name inscribed on 'Housing Revolutionaries' wall in lobby of Factory 1 + name inscribed on 'Housing Revolutionaries' wall in lobby of 707 E Street.

#### **Tier 6 | \$100,000+**

Invest $100,000+ and receive a monthly investor update + all expenses 2-day trip to Sacramento and private dinner with company leadership + Name inscribed on 'Housing Revolutionaries' wall in lobby of Factory 1 + Name inscribed on 'Housing Revolutionaries' wall in lobby of 707 E Street.

*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.*

### **The 10% Bonus for StartEngine Investors**

Blokable will offer a 10% additional bonus interest for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

Eligible StartEngine investors will receive a 10% increase in the annual interest rate on the Series 2023-CF convertible notes, or CF Convertible Notes, being offered in this Offering. This means your annual interest rate will be 6.60% instead of 6.00%.

This 10% Bonus is only valid during the investor's eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any).

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# TABLE OF CONTENTS

| THE COMPANY AND ITS BUSINESS | 8 |
| --- | --- |
| RISK FACTORS | 11 |
| MANAGERS, EXECUTIVE OFFICERS, AND EMPLOYEES | 14 |
| OWNERSHIP AND CAPITAL STRUCTURE | 16 |
| USE OF PROCEEDS | 17 |
| FINANCIAL DISCUSSION | 18 |
| RELATED PARTY TRANSACTIONS | 20 |
| RECENT OFFERINGS OF SECURITIES | 21 |
| SECURITIES BEING OFFERED AND RIGHTS OF THE SECURITIES OF THE COMPANY | 21 |
| DILUTION | 26 |
| REGULATORY INFORMATION | 27 |
| STARTENGINE'S INVESTING PROCESS | 27 |

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# THE COMPANY AND ITS BUSINESS

# Overview

Blokable, LLC is a limited liability company formed on December 29, 2020 under the laws of the state of Delaware, which assumed all operations and assets of the company in its current form, pursuant to a merger with a predecessor entity, Blokable, Inc., on February 1, 2021. The predecessor entity had been conducting the company's operations since March 2016 until that time.

# What We Do

We are a developer of proprietary multifamily housing, using manufacturing that is designed to reduce total development costs and maximize returns.

# Market Need

Over the past decade, U.S. housing production has not kept pace with economic growth and the U.S. housing market is currently undersupplied by 6.8 million units. This crisis has been in the works for over a decade due to many factors, including increasing U.S. population growth, increasingly restrictive building regulatory requirements, growing scarcity of available developable land, continually escalating construction and materials costs, increasing demand for building performance and resiliency, and increasing demand for environmental, social, and governance ("ESG") compliance.

The well-documented solution for the housing shortage, both market rate as well as affordable housing, is to add density (aka multi-story apartment buildings as opposed to Accessory Dwelling Units ("ADUs") or single-family units). F6.8

# Blokable's Solution

Enter Blokable. We are a unique, vertically-integrated modular housing development platform that aims to create housing at scale. Blokable uses manufacturing and technological advances in an effort to compress development costs and time, reduce risks, and organize an otherwise inefficient process. We seek to create higher-quality, environmentally sustainable buildings, while achieving efficiencies and scale we believe have not yet been achieved in the industry. Our vision is to bring transformative economic, social, and environmental benefits to the world, revolutionizing development to fix the housing crisis and create wealth opportunities for investors, residents, and communities who support and embrace a better way of life.

Using five key pillars, our model, which we refer to as Modular Development by Blokable ("Modular Development"), is aiming to disrupt traditional development:

1. Vertically integrated development platform, which is designed to minimize predevelopment and development costs and time, maximize control of the process, and significantly reduce conflict and resistance
2. Suite of digital tools to design, permit, manufacture, construct and own multifamily housing
3. Pre-engineered, standardized building system that is land agnostic and flexible in application
4. Repeatable building assembly process allowing leveraging of robotics and automation
5. Increased factory production capacity

To date, we have completed 15 Blokable housing units ("Bloks"), 3 ADUs and a 12-unit multifamily apartment project, titled Phoenix Rising, on four different sites in Washington, California, and Colorado, building from a 60,000 square foot manufacturing prototyping facility as the company validated its engineering, assembly sequences, shipping logistics, and regulatory inspections and approvals. The Company earned revenue of

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approximately $1,540,000 for Phoenix Rising, primarily in 2019 and 2020. The Company also sold the first two ADUs for total proceeds of approximately $142,000. The Company has earned additional revenue from development services related to project planning totaling approximately $420,000.

After completing the Phoenix Rising project in Washington state, Blokable shut down its prototyping facility there to focus on 5-story building system engineering, Building Information Modeling (“BIM”) and Bill of Materials (“BOM”) systems development, and to prepare to ramp up manufacturing in California. The ability of the system to build projects with up to 5 residential levels represents the vast majority of the multifamily development opportunity in most markets. We have also filed patent applications for, among other things, our conventional and resilient structural joints.

Blokable is entering into a lease for a large-scale manufacturing facility in Northern California that it expects to make operational in late 2023. If or when we reach full-scale advanced manufacturing, we expect our next factory to produce enough modular units, or Bloks, to build over 2,000 apartments every year, with a projected aggregate market value of over $1 billion (market comparable values in major California markets in which Blokable plans to develop have a Class A per unit value in excess of $500,000). We hope that, with this highly-scalable manufacturing process and building system, we will ultimately be able to expand our supply chain and factory network to serve markets across the U.S.

## Industry Landscape

By some estimates, the U.S. currently faces a shortage of up to 6.8 million homes - a gap that continues to grow each year as housing development fails to keep up with demand. In California alone, there are an estimated 3.5 million new housing units needed by 2025. This widening gap between supply and demand is causing home prices to surge. Meanwhile, the cost to build housing keeps escalating, as rising materials costs and an aging construction labor force exert upward pressure on construction costs. At the same time, significant capital continues to flow into the multifamily industry. As of January 2023, the Mortgage Bankers’ Association estimates that multifamily loan originations volume was $439 billion in 2022 and will be $393 billion in 2023.

Blokable doesn’t sell a product and thus doesn’t compete with other modular and prefab companies or alternative building service suppliers that sell their products and services to developers. Rather, Blokable competes in real estate rental markets with traditional developers who build on longer timelines and at higher costs as they design, engineer, and construct one-off projects. By developing and owning multifamily housing with its proprietary building system and vertically integrated business model, Blokable intends to lower the cost and time of development.

The Blokable Building System, the bones under the integrated Modular DevelopmentTM platform, was designed first and foremost to provide innovative versatility enabling our properties to meet market demands now and into the future with the unit and building features that we believe renters expect. Our standardized building product and system is designed for manufacturing and engineered to exceed the toughest building codes in the highest-rent submarkets in the country. Blokable has completed all-electric projects in Washington, Colorado, and California that operate at below market costs.

Bloks are manufactured to about 95% completion in the factory. By law, the factory component of the build is regulated by the state, not local municipalities, reducing the scope of local review and approval, which is often the most significant cause of project delays in more traditional housing development projects. This also minimizes the amount of construction work that must be done at the project site and therefore reduces the risk of cost overruns and construction delays compared with traditional development.

Blokable is unlike traditional modular and prefabricated construction companies that simply sell goods and services to developers and make a modest profit margin that is subject to the competitive pressures of alternatives available to the purchaser. By taking a comprehensive, vertically-integrated approach to the housing development problem, Modular DevelopmentTM by Blokable seeks to reduce costs at all phases of development, including pre-

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development, development, construction, and ownership and operations. Using the pre-engineered Blokable Building System to simplify development and leveraging manufacturing rather than onsite construction to complete most of the build, Blokable can significantly reduce time, cost, and risk. Such reductions will increase the value created from the real estate development process, which Blokable as the developer will be in position to capture.

Blokable seeks to benefit from technological and business model innovations that capture all wealth-creation opportunities that the real estate development process can create from cost savings, development fees, refinance proceeds, operating cash flow, and asset sale proceeds. And with our ability to build cheaper, faster, and, in our opinion, better, we expect the value of our projects will be much higher than traditional developments, especially as costs for traditional builds continue to escalate. At scale, these same innovations also provide for the development of affordable-to-own and affordable-to-rent housing at a fraction of traditional costs, allowing for us to help support wealth-creation opportunities for underserved buyers and the community.

## Company Structure and History

The Company originated as Blokable, Inc. in March 2016, and operated as Blokable, Inc. until February 2021. In February 2021, in order to leverage the benefits of pass-through taxation, we engaged in a reorganization to convert into a limited liability company, which was structured as a merger. Blokable, LLC was formed, and Blokable, Inc. was merged into Blokable, LLC.

We also formed Blokable Operations, LLC, which is a subsidiary of the Company that employs all staff. The Company owns 99.5% of Blokable Operations, LLC, and Blokable Management, LLC owns the other .5%.

Other subsidiaries wholly-owned by the Company, but without any current operations, include Blokable Holdings, LLC, Blokable Acquisitions, LLC, and Blokable Administrative, Inc.

## Employees

All employees devoting time to advancing Company matters and operations are employees of Blokable Operations, LLC. The Company does not have any direct employees. Currently, Blokable Operations, LLC maintains 14 full-time employees and no part-time employees.

## Regulation

Because we work in the housing industry, we are subject to significant regulation by various governmental agencies. Where we engage in land development on a project site, we are subject to local regulations as it relates to local building ordinances. This includes things like permit processes for starting work on properties and zoning regulations. In some cases, as with zoning regulations, state authorities may override local ordinance requirements. With regard to the construction of the modular components and the buildings themselves (the Bloks), which are constructed at the factory location and then shipped to the project site, we are subject only to state regulation. Outside of normal labor regulations and tax regulations, Blokable is not subject to federal requirements related to our buildings or structures.

## Intellectual Property

The Company has 40 trademarks either registered or pending, and 4 patent applications either published or pending, a full list of which is attached hereto as Exhibit F.

The Company has filed patent applications for its conventional and resilient structural joints, filed in July and September of 2021, respectively. These joints are enhancements of our initial joint structure that enable our Bloks to be stacked and connected, and are meant to simplify manufacturing, further improve structural performance, and produce highly resilient structures. The conventional joint is used in standard structures developed in low to

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moderate seismic zones. The resilient joint is designed for project development in high seismic zones. The resilient joint is repairable following seismic damage. Rather than losing a building as a result of damage resulting in government determination that it is no longer occupiable, the joint is designed to be repairable on-site, making the building occupiable and protecting asset value. The Company also has one additional patent published and awaiting next action, but is not yet fully awarded.

While we would certainly prefer to protect the intellectual property we create to make it more difficult for others to take advantage of our research and development, our business does not depend upon the patents described above being granted. As we do not compete in a sales market, even if a competitor were to use our exact joint, it would not present a threat to our business. Blokable is capable of developing projects using existing joint design and, should the patents for the conventional and resilient joint be rejected for any reason, it will not impact Blokable's operation. Patents on these joints will, however, help protect the Company's intellectual property in regards to the joints, preventing others from unfairly benefiting from Blokable's research and development.

## Litigation

The Company is not involved in any litigation, and its management is not aware of any pending or threatened legal actions relating to its intellectual property, conduct of its business activities, or otherwise.

## Property

The Company leases an office in Sacramento, California. It originally entered into the lease for a six-month term on May 18, 2021, which it subsequently has extended for two additional six-month terms since that time.

While the Company has sold most of the Bloks it has completed to date, it currently still owns one Blok. The National Renewable Energy Lab ('NREL'), a part of the Department of Energy, transported the Blok from its original location in Seattle, Washington, to NREL's site in Golden, Colorado, to showcase the Blok as an example of innovative building methods. Further, NREL is using the Blok as a highly energy efficient baseline to test new products and components for energy efficient building.

In addition, utilizing part of the proceeds of this Offering, the Company intends to lease a 150,000 square foot manufacturing facility and intends to outfit that facility with appropriate manufacturing equipment, fabrication tooling and equipment for building assembly. Blokable will also utilize proceeds to integrate Inventor, Revit, and NetSuite workflow for architectural design, building specifications, ordering, supply chain management, and logistics.

## RISK FACTORS

The SEC requires the company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

These are the risks that relate to the company:

### **If the company cannot raise sufficient funds, it will not succeed.**

The company is offering the Securities in the amount of up to $5,000,000 in this Offering, with a Target Offering Amount of $25,000. Even if the maximum amount is raised, the Company will need additional funds in the future in order to grow, and if it cannot raise those funds for whatever reason, including reasons relating to the company

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itself or to the broader economy, it may not survive. If the company manages to raise only the minimum amount of funds sought, it will have to find other sources of funding for some of the plans outlined in 'Use of Proceeds.'

# **Actual or threatened epidemics, pandemics, outbreaks, or other public health crises may adversely affect the company's business.**

The company's business could be materially and adversely affected by the risks, or the public perception of the risks, related to an epidemic, pandemic, outbreak, or other public health crisis, such as the recent outbreak of COVID-19. The risk, or public perception of the risk, of a pandemic or media coverage of infectious diseases could adversely affect the value of the Security and the financial condition of the company's investors or prospective investors, resulting in reduced demand for the Security generally. 'Shelter-in-place' or other such orders by governmental entities could also disrupt the company's operations, if those employees of the company who cannot perform their duties from home are unable to report to work.

# **The Company depends on key personnel and faces challenges recruiting needed personnel.**

The Company's future success depends on the efforts of a small number of key personnel. In addition, due to its limited financial resources and the specialized expertise required, as the Company expands it may not be able to recruit the individuals needed for its growing business needs. There can be no assurance that the Company will be successful in attracting and retaining the personnel the company requires to operate and be innovative.

# **During the Company's phase of expansion where sub-contractors are utilized, the availability of such sub-contractors can be impacted by demand from competing users.**

The Company is in the process of moving away from a batch-build process to a more automated manufacturing process with internal staff. Initial projects will depend upon the utilization of sub-contractors to accomplish certain building tasks in the factory. Blokable uses sub-contractors during this period to minimize staffing costs and to allow rapid prototyping and development of manufacturing techniques that will lead to the creation of more automated building processes and sub-assembly logic. The downside of such an approach is that Blokable must compete with other developers and contractors for such labor, which may lead to reduced availability and increased cost of such labor.

# **Government regulations may cause project delay, increase our expenses, or otherwise increase the cost of project development which could have a negative impact on our operations.**

We are subject to state and local building codes, and land development projects are subject to permitting processes at the state and local level. While Blokable is initially building smaller projects and sites for such projects will be chosen and projects sized to minimize permitting risks, there is always a risk that entitlements are delayed. Further, during development of a project unforeseen events or conditions could increase the cost of a proposed project, which could negatively impact the costs of the project and income or value to be received from such project.

# **Increases in the cost of debt and/or equity financing for real estate development projects are possible and the cost of completing projects could be materially impacted by such market changes.**

Blokable is a real estate development company, like all entities involved in any aspect of the real estate industry we are subject to local, national, and global market forces that affect the cost and availability of financing for project development. Such market forces as well as market failures and interruptions can cause cost of funds shocks that make projects much more expensive or in some cases impossible to finance or refinance.

# **Increases in the cost of raw materials, or supply disruptions, could have a material adverse effect on our business.**

Our raw materials consist of steel, drywall, plumbing and other traditional building materials, which primarily are sourced from, or dependent on, materials sourced from domestic vendors and foreign vendors in some cases. While the raw materials used in manufacturing are available from multiple sources, which serves to generally minimize cost and availability risks, the costs of these materials may increase due to general market forces, shipping costs, or reduced supply availability of these materials more generally. Further, global or local natural disruptions, including the COVID-19 pandemic, may

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impact the supply chain, including limiting work in factories producing the materials into useable forms or impacts on the supply chain. Disruptions in supply could result in delays in our production line, delaying development of projects.

# **The ability to achieve a profit or positive return on any individual real estate development project is not guaranteed.**

Real estate development involves inherent risk - including, but not limited to, market risk, entitlement risk, construction risk, and financing risk. Any one or combination of such risks could cause material project cost increases, revenue decreases, and/or delays that reduce (or eliminate) the opportunity to pay back the investment in an individual development project or achieve a project-level profit.

# **We intend to seek additional capital that will result in stockholder dilution or that may have rights senior to those of holders of the Security in this Offering.**

The Company will need additional capital to continue operating. Any disruption in the capital markets could make it more difficult and expensive for us to raise additional capital. Even if it does make successful offerings in the future, it may result in your investment being diluted, and, as a result, your investment being worth less. If additional funds are raised through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of the Securities.

# **You may not have access to the same information that later investors may have.**

The Company is currently considering conducting an offering under Regulation A under the Securities Act subsequent to this offering under Regulation CF, although there can be no assurance that the offering statement for that offering will be qualified, or will not be terminated. The Regulation A offering statement may contain more information, or different information, than is contained in this Form C. By investing in this offering, you are taking the risk that you would have made a different investment decision if you had had access to that information.

# ***Risks Related to the Securities***

# **No guarantee of return on investment.**

There is no assurance that a purchaser will realize a return on its investment or that it will not lose its entire investment. For this reason, each purchaser should read the Form C and all Exhibits carefully and should consult with its own attorney and business advisor prior to making any investment decision.

# **The terms of the Securities have been arbitrarily set by the Company.**

The terms of the CF Convertible Notes have been determined by the Company internally. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially early-stage companies, is difficult to assess and you may risk overpaying for your investment.

# **You cannot easily resell the Securities.**

There are restrictions on how you can resell your securities for the next year. More importantly, there is no market for these securities, and there might never be one. The ability of the company to ever go public or get acquired by a bigger company is uncertain. That means the money you paid for these securities could be tied up for a long time.

# **The Company's management has discretion as to use of proceeds.**

The net proceeds from this offering will be used for the purposes described under 'Use of Proceeds.' The company reserves the right to use the funds obtained from this offering for other similar purposes not presently contemplated which it deems to be in the best interests of the company and its investors in order to address changed circumstances or opportunities. As a result of the foregoing, the success of the company will be substantially dependent upon the discretion and judgment of management with respect to application and

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allocation of the net proceeds of this offering. Investors in the CF Convertible Notes hereby will be entrusting their funds to the company's management, upon whose judgment and discretion the investors must depend.

# **Future fundraising may affect the rights of investors.**

In order to expand, the company will raise funds again in the future, either by offerings of securities or through borrowing from banks or other sources. The terms of future capital raising, such as loan agreements, may include covenants that give creditors greater rights over the financial resources of the company.

# **A convertible note is not the same as preferred equity.**

Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold. A convertible note, which is the security being offered here, is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.

# **The amount raised in this offering may include investments from company insiders or immediate family members.**

Officers, directors, executives, and existing owners with a controlling stake in the company (or their immediate family members) may make investments in this offering. Any such investments will be included in the raised amount reflected on the campaign page.

# **MANAGERS, EXECUTIVE OFFICERS, AND EMPLOYEES**

# **Overview**

This table shows the principal people on the Company's management team:

| Name | Position | Term of Office | Approx. hours per week (if not full time) |
| --- | --- | --- | --- |
| Executive Officers: |  |  |  |
| Nelson Del Rio | Co-CEO | Indefinite | Full-time |
| Aaron Holm | Co-CEO / CFO / Secretary | Indefinite | Full-time |
| Stephen Chun | Chief Development Officer | Indefinite | Full-time |
| Timothy Miller | Chief Product Officer | Indefinite | Full-time |
| Board of Managers*: |  |  |  |
| Nelson Del Rio | Manager | Indefinite | 2 |
| Aaron Holm | Manager | Indefinite | 2 |
| Jason Calacanis | Manager | Indefinite | 2 |
| Yongbai Choi | Manager | Indefinite | 2 |

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*The Company's Operating Agreement requires five Managers on the Board of Managers. The Company currently is in the process of replacing one of its Managers that has recently retired.*

## Experience of Management

### Nelson Del Rio, Co-CEO, Manager, and Co-Founder

Nelson Del Rio has been with Blokable as an advisor since 2016, and became one of the Co-Chief Executive Officers in 2017. Nelson has served as Co-CEO for the last five years, during which time he has been responsible for implementing the business plan for Modular Development, raising the funds necessary to operate the company, guiding development of all product design and prototyping activity, and have negotiated all contracts and relationships. He has personally designed and worked with the team to implement the engineering necessary to achieve Blokable's Modular Development goals, including the standard and resilient joints, and its build and assembly structures. Nelson graduated from Harvard Law School in 1987 and has been an active and continuous member of the California State Bar since 1987. Nelson began his career as a Merger and Acquisition Attorney at Skadden, Arps, Slate, Meagher & Flom, and then went on to become an active impact investor, developer, and philanthropist. In addition to his retail, land and other type of real estate acquisitions and development, Nelson is best known for his efforts in early single asset securitization, as well as the creation of the public-private partnership, design-build paradigm in use today in connection with government and other facilities. He has used his business, tax, legal, finance, construction, and development background in Blokable to create the same highly efficient development structure he created in the past in commercial development. Nelson has also served on Blokable's Board of Managers since 2017.

### Aaron Holm, Co-CEO, Manager, and Co-Founder

Aaron Holm is one of Blokable's Co-Chief Executive Officers. Launching Blokable in 2016, Aaron has served in the capacity of Co-CEO since that time, during which time he has been responsible for implementing the business plan for Modular Development, raising the funds necessary to operate the company, guiding development of all product design and prototyping activity, and have negotiated all contracts and relationships. Prior to Blokable, Aaron has founded and led businesses and product teams, notably spearheading Amazon's first two physical retail businesses, Amazon Go and Amazon Books. Prior to his time at Amazon, Aaron, among other projects, co-founded Mylio, a software startup that protected and organized large libraries of personal photographs and memories. He also co-founded Industrial Color, a global leader in digital media Software as a Service, where he built a world-class team and digital media infrastructure. Aaron was CTO and head of the software business. Aaron has put his deep experience applying advanced technology to transform traditional industries to work at Blokable. He understands the complications inherent to the development of physical space and the opportunity to create the technology and logistics platform necessary to enable Blokable's Housing Development-as-a-Service model. Aaron has also served on Blokable's Board of Managers since the Company's inception.

### Steve Chun, Chief Development Officer

Steve Chun is Blokable's Chief Development Officer, joining the Company in 2021, where he leads the Company's real estate development platform and financial efforts. A veteran real estate development and investment executive, Steve brings to Blokable uniquely broad-based, vertically-integrated multifamily expertise that encompasses all phases of the real estate life cycle - from acquisitions and financing to development to asset management and operations. From 2013 to 2019, Steve was Managing Director in the Executive Office of Lerner Enterprises, the largest private real estate developer in the Washington, D.C. market. Prior to Lerner, he was a Vice President from 2006 to 2012 at Woodridge Capital Partners, a leading real estate development and investment firm in Los Angeles with large-scale projects across the United States. In addition to extensive real estate transactional experience, he has highly-diversified residential development experience that ranges from low-density multifamily product to luxury high-rise towers, as well as master-planned residential communities and large-scale mixed-use projects. Earlier in his career, he was a mergers and acquisitions and private equity lawyer

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at a Wall Street law firm and at Oaktree Capital Management. He holds an M.B.A. from the Tuck School of Business at Dartmouth, a J.D. from the University of Michigan Law School and a B.A. from Dartmouth College.

# ***Timothy Miller, Chief Product Officer, and Co-Founder***

Timothy Miller started at Blokable in 2016, acting in the capacity as Blokable’s Chief Product Officer. Timothy is responsible for all aspects of the Blokable Building System, the backbone of the Modular Development platform, overseeing all aspects of the product engineering and technology teams. Through the lens of architect, human-centric industrial designer, and business strategist, he has successfully created and expanded on customer experience for industry leaders including Boeing, Best Buy, Amazon, and LATAM Airlines. He has worked as a design leader within both agency and corporate environments, most notably with Amazon Go, TEAGUE, and HOK Architects. At Blokable, Tim’s career has come full circle, bringing his unique experience to the challenge of creating a new category of housing.

# ***Jason Calacanis, Manager***

Jason Calacanis has been on Blokable’s Board of Managers since 2017. Jason is a technology entrepreneur, angel investor, and the host of the popular podcasts This Week in Startups and Angel. Jason co-founded Launch in 2012 and has been the CEO during that time, where he is responsible for approving investments, overseeing, and leading the strategy and execution of the startup accelerator program, founder university, and regional pitch competitions. Jason also leads fundraising and investor relations for the Launch Fund and Launch Syndicate which invest directly into Launch portfolio companies. Prior to founding Launch, as a “scout” for one of the top Silicon Valley venture capital firm Sequoia Capital and later as an angel investor, Jason has invested in 150+ early-stage startups including 6 “unicorns” (billion-dollar valuations). His book “Angel: How to Invest in Technology Startups: Timeless Advice from an Angel Investor Who Turned $100,000 into $100,000,000” was published by HarperCollins in July 2017.

# ***Yongbai Choi, Manager***

YB Choi has been on Blokable’s Board of Managers since 2019. YB Choi has been a part of the Venture Capital team at Vulcan Capital since 2008 focusing on early-stage investments driving core technology innovation broadly across many sectors. Prior to joining Vulcan, YB was a manager in the IP Acquisitions and Investments group at Microsoft Corporation. Before joining Microsoft, he was a member of the mergers and acquisitions group at Oppenheimer & Co. (formerly CIBC World Markets) and, earlier, worked in the health care investment banking group at Cowen & Co. YB received his BS in Engineering Management Systems from Columbia University. He advises venture investing students at the University of Washington as a W Fund Fellow and is a frequent participant as a judge or panelist at events and conferences focused on early-stage technology investment.

# **OWNERSHIP AND CAPITAL STRUCTURE**

# **Ownership**

There are no beneficial owners of 20 percent or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, as of January 31, 2023.

The following table describes our capital structure as of January 31, 2023:

| Class of Equity | Authorized Limit | Issued and Outstanding | Reserved, Not-issued |
| --- | --- | --- | --- |
| Common Units | 15,000,000 | 3,201,706 | 514,461* |

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| Series Seed Preferred Units | 2,228,749 | 2,212,642 | 0 |
| --- | --- | --- | --- |
| Series A Preferred Units | 5,170,678 | 5,170,678 | 0 |
| Convertible Notes** | up to $7,500,000 | $4,710,343.04 |  |
| Common Unit Warrants |  | 22,246 |  |
| Series Seed Preferred Unit Warrants |  | 16,107 |  |

* This accounts for the currently unissued shares of the Company's employee equity plan, or Grant of Common Shares Plan, as set forth in the Operating Agreement, pursuant to which the Company is authorized to issue up to 1,466,768 Common Units, and of which 952,307 were outstanding as of December 31, 2022.

**The convertible notes have an interest rate of 6%, a maturity date of April 2024.

## USE OF PROCEEDS

The Company anticipates using the proceeds from this offering in the following manner:

| Purpose or Use of Funds | Allocation After Offering Expenses for a $25,000 Raise | Allocation After Offering Expense for a $5,000,000 Raise |
| --- | --- | --- |
| Offering Expenses | $16,375 | $1,030,000 |
| Salaries & Related Expenses | $8,625 | $1,458,000 |
| Factory & Facility Related Expenses |  | $330,000 |
| Research & Development and Other Third Party Services |  | $1,205,000 |
| Real Estate Pursuit Costs |  | $409,000 |
| Debt Repayment |  | $568,000 |

### Salaries & Related Expenses

Salaries and related expenses consist of all expenses related to employment, including salaries and wages paid to employees, medical coverage, payroll and related taxes, benefits administration, and any other expenses directly related to employment. These funds will be used to pay salaries to current employees, which include the product development team, the real estate team, and administrative functions. In addition, these funds will be used to hire additional team members on the product development and real estate teams in order to work towards the product engineering goals and progress on the showcase project.

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### **Factory & Facility Related Expenses**

Factory and facility related expenses consist of rent payments for current leased space used in Sacramento and additional costs for leasing expenses for entering into the lease on prototyping space and the lease for the 150,000 square foot factory space.

### **Research & Development and Other Third Party Services**

Third party services consist of expenses paid to third party consultants. Of the total amount, we anticipate spending approximately $600,000 on product engineering efforts, including structural testing of the joints and fire testing, as well as additional structural design expenses, architecture design expenses, and consultation and review of mechanical systems and fire, life, and safety systems. The remaining professional services expenses relate to (1) ERP and other software systems, which are necessary for operating the Company; (2) general accounting and legal services, used for general operations and tax compliance; (3) recruiting expenses for hiring new team members on the production engineering and real estate teams; and (4) general office expenses and travel.

### **Real Estate Pursuit Costs**

Real estate pursuit costs consist of costs necessary for our next development project, a 21-unit showcase project to be located in downtown Sacramento, California (see the section below entitled 'Financial Discussion-Milestones and Plan of Operations' for more information). Costs include architectural and engineering fees for project design and approvals, planning fees paid for project planning, state and local permit fees necessary to begin land development on the property, due diligence costs for the land under contract, and other relevant expenses necessary to build at the desired location.

### **Debt Repayment**

Debt repayment consists of scheduled principal and interest payments on the Company's loan payable with Silicon Valley Bank.

**The identified uses of proceeds are subject to change at the sole discretion of the officers and directors based on the business needs of the company.**

## FINANCIAL DISCUSSION

### Financial statements

Our financial statements can be found in Exhibit B to the Form C of which this Offering Memorandum forms a part. The financial statements were audited by Fruci & Associates II, PLLC. The following discussion should be read in conjunction with our audited financial statements and the related notes included in this Offering Statement. The following discussion also includes information based on our unaudited operating data for 2023 and is subject to change once we complete our fiscal year, prepare our financial statements and our accountant completes a financial audit of those statements.

The Company's net revenues for the years ended December 31, 2022 and 2021 were $765 and $44,937, respectively. The company's revenue in 2022 and 2021 primarily consisted of collections on sales of an individual Blok that was completed in 2020, but the revenue was recognized on a cash basis in accordance with accounting principles generally accepted in the United States. During the period, the company was focused on engineering, research, and development, and was not focused on revenue generation. The cost of sales are those expenditures directly related to the revenue generating activities.

The Company's operating expenses consist of salaries paid to employees along with related taxes, benefits, and travel expenses, third party professional services for research and development, third party professional services for general company operations, and other general office expenses.

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As a result of the foregoing factors, the Company's net losses from operations were $4,906,607 and $5,550,020 for the years ended December 31, 2022 and 2021, respectively.

Other expenses primarily consist of interest expense on the loan payable with Silicon Valley Bank, interest on the existing convertible notes, and other losses on asset disposition or forgiveness of debt.

Other income consists of lease income resulting from a sublease for factory space, and grant income from a grant from the IN2 partnership, which provided the opportunity to receive up to $250,000 in technical assistance from the National Renewable Energy Lab and a cash award.

Since the end of the period covered by the financial statements, the Company has not generated revenues.

### **Plan of Operations and Milestones**

Blokable is a vertically integrated modular developer, where using the Blokable Building System, we build Bloks at a manufacturing facility that are subsequently shipped to building locations 95% complete, with construction then being finished on site. Blokable has completed 15 Bloks in total to date. This includes 3 individual Bloks that were prototyping units, two of which are currently used as permanent housing units and one that is currently used at the National Renewable Energy Lab campus in Golden, CO to showcase building innovation and for testing energy usage. In addition, Blokable built 12 apartments across two buildings, 7 one bedroom units and 5 studio units, in Auburn, Washington.

Blokable's unique business model allows us to use innovation and cost reduction strategies to generate long-term wealth. In order to realize this vision, Blokable needs to build out a real estate development system and outfit a manufacturing facility that is large enough to allow us to add manufacturing capacity to support the growing development pipeline, as further described below.

We have established the following milestones in our plan of operations:

#### *Manufacturing Facility*

In order to produce the Bloks that are part of the Blokable Building System, we are planning to lease a 150,000 square foot facility that can later be expanded to over 300,000 square feet. During our initial phase, we will also work out of a small prototyping area to test systems and processes and to begin planning for larger-scale manufacturing capacity.

#### *Structural Testing*

The Blokable Building System is designed to meet the regulatory requirements necessary of multi-family buildings. As a continuation of the design and engineering process, we will begin structural testing on next generation, patent pending, conventional and resilient joints. After structural testing, we will work towards bringing the new design into production of the Blokable Building System. The new joints represent advanced structural component manufacturing, and like our current design, will be certified for use in all areas of California.

#### *Showcase Development Project - 707 E Street*

We are working towards development of a 21-unit showcase project to be located in downtown Sacramento, California. As part of our business model, we are the developer of this project, which involves project design, engineering work, planning, and permitting. In order to complete this work, we will need to hire the necessary team members to complete the real estate development process.

### **Liquidity and Capital Resources**

The Company has not committed to make any capital expenditures. The Company is in discussions with a landlord for a lease on a 150,000 square foot facility for manufacturing. The Company has a signed letter of intent for a

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property located in Sacramento, for which the company is currently performing due diligence; however, the company is not required to move forward with the purchase.

The Company had approximately $635,000 cash on hand as of January 31, 2023. In February 2023, the Company closed on additional $240,000 of funding on the Convertible Notes. Currently, we estimate our burn rate (net cash out) to be on average $312,000 per month.

The Company is currently conducting a concurrent Regulation D offering under Rule 506(c). As of March 21, 2023, the Company has raised $1,000 in that offering. Under the terms of that offering, the Company is offering a convertible note to investors, which carries a 20% discount at conversion, rather than the 10% discount offered under the terms of the CF Convertible Notes offered in this Offering, but does not carry the StarEngine Owner's bonus or other perks.

### **Indebtedness**

In 2020, the Company entered into a Loan and Security Agreement with Silicon Valley Bank that permits the Company growth capital advances totaling $4,000,000, bearing interest at the greater of (i) 1% above the prime rate, or (ii) 5.25%, with interest payable monthly. The Company borrowed the entire $4,000,000 in January 2020. Prior to June 30, 2021, no principal payments were required, and the Company paid interest on the outstanding balance monthly. Beginning June 30, 2021, the Company began to pay $111,111 principal plus interest monthly, which will continue until maturity in June 2024. Collateral related to the Loan and Security Agreement consists of substantially all assets of the Company.

Beginning in 2022, the Company entered into Secured Subordinated Convertible Promissory Notes (the 'Secured Convertible Notes') with investors. The Company issued $4,217,681 in Secured Convertible Notes that closed in 2022. The principal and unpaid accrued interest on the Secured Convertible Notes are payable 24 months following the initial closing date, which was April 29, 2022. The Secured Convertible Notes accrue interest at a rate of 6% per year, paid at maturity. As of December 31, 2022, the outstanding accrued interest on the Secured Convertible Notes is $135,676. The Secured Convertible Notes convert to equity securities upon a qualified financing of at least $30 million, along with other criteria as further defined in the Secured Convertible Notes, at a price of 80 percent of the price paid by cash purchasers in the qualified financing (as defined in the Secured Convertible Note documents). Collateral related to the Secured Convertible Notes consists of substantially all assets of the company, but is subordinate to the obligations of the loan payable.

### **Trends and COVID-19**

In March 2020, the World Health Organization made the assessment that the outbreak of a novel coronavirus (COVID-19) can be characterized as a pandemic. As a result, uncertainties have arisen that may have a significant negative impact on the operating activities and results of the company. The occurrence and extent of such an impact will depend on future developments, including (i) the duration and spread of the virus, (ii) government quarantine measures, (iii) voluntary and precautionary restrictions on travel or meetings, (iv) the effects on the financial markets, and (v) the effects on the economy overall, all of which are uncertain.

### **RELATED PARTY TRANSACTIONS**

From time to time the Company may engage in transactions with related persons. Related persons are defined as any director or officer of the Company; any person who is the beneficial owner of twenty percent (20%) or more of the Company's outstanding voting equity securities, calculated on the basis of voting power; any promoter of the Company; any immediate family member of any of the foregoing persons or an entity controlled by any such person or persons. Additionally, the Company will disclose here any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, to which the issuer was or is to be a party and the amount

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involved exceeds five percent (5%) of the aggregate amount of capital raised by the issuer in reliance on section 4(a)(6), including the Target Offering Amount of this Offering, and the counter party is either (i) any director or officer of the issuer; (ii) any person who is, as of the most recent practicable date but no earlier than 120 days prior to the date the offering statement or report is filed, the beneficial owner of twenty percent (20%) or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power; (iii) if the issuer was incorporated or organized within the past three years, any promoter of the issuer; or (iv) any member of the family of any of the foregoing persons, which includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive relationships. The term *spousal equivalent* means a cohabitant occupying a relationship generally equivalent to that of a spouse.

No qualifying transactions have occurred during the relevant period.

#### RECENT OFFERINGS OF SECURITIES

Prior to 2019, the Company raised $6,072,312 in 3 different offerings, in a combination of priced equity and convertible instruments from investors. Since then, the Company has made the following issuances of securities in the past three years:

- On August 13, 2019, we issued 5,170,679 shares of Series A Preferred Shares in reliance on Regulation D of the Securities Act, for consideration of $21,905,194 of cash proceeds and debt forgiveness. The proceeds of this offering were used for research and development, general company operations, and to build one prototype accessory dwelling units and two buildings consisting of 5 one-bedroom units and 7 studio units.
- From April 29, 2022 through February 28, 2023, we closed on $5,000,000 in Secured Convertible Notes in reliance on Section 4(a)(2) of the Securities Act. The proceeds of this offering were used for research and development, including engineering and planning for manufacturing, and general business expenses.

#### SECURITIES BEING OFFERED AND RIGHTS OF THE SECURITIES OF THE COMPANY

*The following descriptions summarize important terms of our capital interests. This summary reflects the Company's Amended and Restated Operating Agreement and does not purport to be complete and is qualified in its entirety by its Amended and Restated Operating Agreement and its Bylaws. For a complete description of the company's capital interests, you should refer to its Amended and Restated Operating Agreement and its Bylaws and applicable provisions of the Delaware Limited Liability Company Act.*

##### General

The Company's authorized securities consist of (i) up to 15,000,000 Common Shares, (ii) up to 7,399,427 Preferred Shares, of which 2,228,749 are designated as Series Seed Preferred Shares and 5,170,678 are designated as Series A Preferred Shares (collectively, the "Shares"), and up to $7,500,000 of Convertible Notes. As of January 31, 2023, there were 3,201,706 Common Shares, 2,228,749 Series Seed Preferred Shares, 5,170,678 Series A Preferred Shares, and $4,760,343.04 Convertible Notes issued and outstanding. For this Offering, the Company is issuing Series 2023-CF convertible promissory notes, with a minimum investment amount per investor of $500.

##### Security Being Offered in This Offering

The Security being offered in this Offering is a Series 2023-CF convertible promissory note. The Security will convert into preferred shares of a class of preferred shares of the Company's limited liability interests sold in the Qualified Financing, as defined below. Such class of preferred shares will be created prior to conversion.

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**Amount Outstanding:** $0.00

**Maturity Date:** March 31, 2025

**Interest Rate:** 6%

**Discount Rate:** 10%

**Valuation Cap:** $125,000,000

**Conversion Trigger:** $30,000,000 preferred financing round (the “Qualified Financing”)

### ***Subordination***

The indebtedness evidenced by the Securities shall be expressly subordinated, to the extent and in the manner set forth in the subordination agreement by and among the Company, the investors in this Offering, and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, in substantially the form attached as Exhibit A to the CF Convertible Note Subscription Agreement, in right of payment to the prior payment in full of all of the Company’s Senior Indebtedness (as defined in the Subscription Agreement), and each investor hereby agrees to enter into such agreements and take such additional action as may be necessary to perfect such subordination.

### ***Conversion; Repayment Premium Upon Sale of the Company***

(a) In the event that the Company issues and sells shares of its Preferred Shares to investors (the “Equity Investors”) on or before the date of the repayment in full of the CF Convertible Note in a transaction or series of transactions pursuant to which the Company issues and sells shares of its Preferred Shares resulting in gross proceeds to the Company of at least $30,000,000 (excluding the conversion of the CF Convertible Notes and any other debt) (a “Qualified Financing”), then it converts into Preferred Shares at conversion price equal to the lesser of (i) 90% of the per share price paid by the Investors or (ii) the price equal to the quotient of $125,000,000 divided by the aggregate number of outstanding common shares of the Company as of immediately prior to the initial closing of the Qualified Financing (assuming full conversion or exercise of all convertible and exercisable securities then outstanding other than the CF Convertible Notes.)

(b) If the conversion of the Note would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Investor otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current fair market value of one share of the class and series of capital stock into which the CF Convertible Note has converted by such fraction.

(c) Notwithstanding any provision of the CF Convertible Note to the contrary, if the Company consummates a Sale of the Company (as defined below) prior to the conversion or repayment in full of the CF Convertible Note, then (i) the Company will give the Investor at least 15 days prior written notice of the anticipated closing date of such Sale of the Company and (ii) at the closing of such Sale of the Company, in full satisfaction of the Company’s obligations under the CF Convertible Note, the Company will pay to the Investor an aggregate amount equal to the greater of (a) 1.11 times the aggregate amount of the principal and all accrued and unpaid interest under the CF Convertible Note or (b) the amount of proceeds that would be payable to the Investor pursuant to the Sale of the Company if all Investors were to, immediately prior to the Sale of the Company, convert the aggregate amount of the principal and all accrued and unpaid interest under the CF Convertible Notes into the Company’s Common Shares at a price per share equal to the quotient obtained by dividing (x) $125,000,000 by (y) the aggregate number of outstanding shares of the Company as of immediately prior to the Sale of the Company (assuming full conversion or exercise of all convertible and exercisable securities then outstanding other than the CF Convertible Notes).

(d) For the purposes of the CF Convertible Note: “Sale of the Company” shall mean (i) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, continue to hold at least a majority of the voting power of the surviving entity in substantially the same proportions (or, if the surviving entity is a wholly

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owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; (ii) any transaction or series of related transactions to which the Company is a party in which in excess of 50% of the Company's voting power is transferred; *provided, however*, that a Sale of the Company shall not include any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is cancelled or converted or a combination thereof; or (iii) a sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company.

### ***Preferred Shares Upon Conversion***

The class of preferred shares sold in the Qualified Financing will be created prior to conversion, with the authorized number of preferred shares to be created at that time. Such class of shares will have substantially the same rights and preferences as the Company's existing Preferred Shares.

#### Voting Rights

The preferred shares sold in the Qualified Financing will have voting rights.

#### Other Rights and Preferences

The preferred shares sold in the Qualified Financing will have substantially the same rights and preferences as the Company's existing Preferred Shares. See section below entitled 'Rights of Authorized Securities of the Company.'

### **Rights of Authorized Securities of the Company**

The rights of each class of members are set forth in the Amended and Restated Operating Agreement of Blokable, LLC dated February 1, 2021 (the 'Operating Agreement'). This is only a summary.

#### ***Voting***

All Shares are voting shares except Shares issued under the Company's equity participation plan that are unvested shares or shares subject to a repurchase option in favor of the Company, and all Common Shares and Preferred Shares vote together on an as-converted basis and not as a class. For purposes of determining the voting interest of a Member, a Member's voting power is based upon the number of Shares held on an as-converted basis.

#### ***Distributions and Liquidation Preference***

If the Company elects to make distributions to the members, the holders of the Series A and Series Seed Preferred Shares are entitled to priority distributions in proportion to the unpaid preferred liquidation preference of each Member (as defined in the Operating Agreement). Distributions will be made as follows: (i) first, to the Series A Preferred Members pro rata in proportion to the unpaid preferred liquidation Preference attributable to their Series A Preferred Shares until each such Series A Preferred Member has received aggregate distributions with respect to its Series A Preferred Shares, (ii) then, to the Series Seed Preferred Members pro rata in proportion to the unpaid preferred liquidation preference attributable to their Series Seed Preferred Shares until each such Series Seed Preferred Member has received aggregate distributions with respect to its Series Seed Preferred Shares, and (iii) thereafter, to the Series A Preferred, Series Seed Preferred, and Common Members pro rata in proportion to the number of Shares held by each at the time of the distribution.

As of December 31, 2022, the unpaid preferred liquidation preference for Series Seed Preferred Shares is $4.5113 per unit and for Series A Preferred Shares is $4.52 per unit. The total liquidation preference is $9,981,891 for the Series Seed Preferred Shares and $23,371,464 for the Series A Preferred Shares as of December 31, 2022.

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### ***Conversion***

Series A Preferred Shares and Series Seed Preferred Shares can be converted into Common Shares at any time at the option of the holder or automatically upon the election of the majority of Preferred Shares or the closing of a qualified initial public offering. The initial conversion rate per share is determined by dividing the original issue price by the conversion price.

### ***Preemptive Rights***

If the Company proposes to offer or sell any Additional Shares (as defined in the Operating Agreement), the Company must first offer such Additional Shares to each Major Holder (of Series A Preferred Shares, as further defined in the Operating Agreement). A Major Holder will be entitled to apportion the right of first in such proportions as it deems appropriate, among itself and its affiliates.

### ***Drag-Along Rights***

In the event that (i) the Selling Investors (as defined in the Operating Agreement); (ii) the Board of Managers; and (iii) the holders of a majority of the then outstanding Common Shares held by the Key Holders who are then providing services to the Company as officers, employees or consultants, voting as a separate class approve a sale of the Company, each Member and the Company hereby agree:

- (a) if such transaction requires Member approval, with respect to all Shares that such Member owns or over which such Member otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Shares in favor of, and adopt, such sale of the Company and to vote in opposition to any and other proposals that could delay or impair the ability of the Company to consummate such sale;
- (b) if such transaction is a Share Sale (as defined in the Operating Agreement), to sell the same proportion of Shares of securities of the Company beneficially held by such Member as is being sold by the Selling Investors to the person to whom the Selling Investors propose to sell their Shares, and on the same terms and conditions as the other Members of the Company;
- (c) not to deposit, and to cause their affiliates not to deposit any Shares of the Company owned by such party or Affiliate in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically requested to do so by the acquirer in connection with the sale of the Company; and
- (d) to refrain from exercising any dissenters' rights or rights of appraisal under applicable law at any time with respect to such sale of the Company, or the consummation of the transactions contemplated thereby.

### ***Board of Managers Election Rights***

#### **For Common Shares**

The Board of Managers shall include two (2) representatives of the holders of the majority of Common Shares, (a) one of whom shall be designated by Aaron Holm, with restrictions as further provided in the Operating Agreement, and (b) the other of whom shall be designated by Nelson Del Rio, with restrictions as further provided in the Operating Agreement. Aaron Holm is the current Manager designated by Aaron Holm, and Nelson Del Rio is the current Manager designated by Nelson Del Rio.

#### **For Series A Preferred Shares**

The Board of Managers shall include two (2) representatives of the holders of the majority of Series A Preferred Shares, (a) one of whom shall be designated by VCVC IV LLC, with restrictions as further provided in the Operating Agreement, and (b) the other of whom shall be designated from time to time by the holders of a majority of the

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then-outstanding Series A Preferred Shares. Yongbai Choi is the current representative designated by VCVC IV LLC, and Mitchell Kapor was the representative designated by the holders of a majority of outstanding Series A Preferred Shares, who has recently retired and who the Company is in the process of replacing.

To the extent that any of the conditions in this section are not satisfied, then the corresponding manager shall be designated by the holders of a majority of the Common Shares, in the case of the Common Shares provision, and the holders of a majority of the Series A Preferred Shares, in the case of the Series A Preferred Shares provision.

### **Outstanding Options and Warrants**

The Company may from time to time issue warrants to purchase membership shares at prices to be determined by the Board of Managers. The Company issued a warrant to a holder in October 2016 with the option to purchase 16,107 shares of Series Seed Preferred Shares at an exercise price of $1.50 per share with an expiration date of October 2023. The holder may exercise the option or exercise a conversion right to convert the warrant into the proportionate number of shares equal to difference between the then aggregate fair market value of the 16,107 shares upon exercise of the warrant minus the aggregate exercise price of the shares divided by the fair market value. In addition, in connection with the Loan and Security Agreement with Silicon Valley Bank, the Company issued a warrant to purchase Common Shares. The Company authorized 22,246 shares to be purchased, and agreed in February 2021 to adjust the exercise price to $.01 per share. The holder may at any time and from time to time exercise the warrant, in whole or in part, by delivering to the Company the original of the Warrant together with a duly executed Notice of Exercise.

The Company may issue Common Shares to employees, consultants, or Managers pursuant to the terms of its Grant of Common Shares Plan (the “Plan”) set forth in the Operating Agreement. The Board of Managers may issue up to 1,466,768 shares under the Plan as of December 31, 2022 and 2021. During 2021, the Board of Managers issued 1,025,205 Common Shares under the Plan, of which 808,023 were issued for cash proceeds of $83 and 217,182 were issued without cash payment. During the year, 66,542 were forfeited and 30,105 were repurchased. At December 31, 2021, 928,558 shares were outstanding, and of those shares, 353,358 were fully vested. During 2022, the Board issued an additional 69,500 shares under the Plan for cash proceeds of $7. During the year 42,834 shares were repurchased and 2,917 shares were forfeited. At December 31, 2022, 952,307 shares are outstanding, and of those shares, 596,931 are fully vested.

### **What it Means to be a Minority Holder If or When Equity Securities Are Issued**

As an investor in the Securities of the Company, you will not have any rights in regard to the corporate actions of the company, including additional issuances of securities, company repurchases of securities, a sale of the company or its significant assets, or company transactions with related parties. If or when the Securities convert into equity, you will still only be a minority holder of those equity interests, and you will not have any rights in regard to the corporate actions of the company, including additional issuances of securities, company repurchases of securities, a sale of the company or its significant assets, or company transactions with related parties.

### **Transferability of securities**

For a year, the securities can only be resold:

- In an IPO or other public offering registered with the SEC;

25

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

# Transfer Agent

The intermediary will act as the SEC-registered transfer agent in this Offering, through its entity StartEngine Secure, LLC.

# DILUTION

Investors should understand the potential for dilution. The investor's stake in a company could be diluted due to the company issuing additional shares. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, angel investment), employees exercising stock options, or by conversion of certain instruments (e.g., convertible bonds, preferred shares or warrants) into stock.

If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most early-stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

The type of dilution that hurts early-stage investors most occurs when the company sells more shares in a "down round," meaning at a lower valuation than in earlier offerings. An example of how this might occur is as follows (numbers are for illustrative purposes only):

- In June 2020 Jane invests $20,000 for shares that represent 2% of a company valued at $1 million.
- In December the company is doing very well and sells $5 million in shares to venture capitalists on a valuation (before the new investment) of $10 million. Jane now owns only 1.3% of the company but her stake is worth $200,000.
- In June 2021 the company has run into serious problems and in order to stay afloat it raises $1 million at a valuation of only $2 million (the "down round"). Jane now owns only 0.89% of the company and her stake is worth only $26,660.

This type of dilution might also happen upon conversion of convertible notes into shares. Typically, the terms of convertible notes issued by early-stage companies provide that in the event of another round of financing, the holders of the convertible notes get to convert their notes into equity at a "discount" to the price paid by the new investors, i.e., they get more shares than the new investors would for the same price. Additionally, convertible notes may have a "price cap" on the conversion price, which effectively acts as a share price ceiling. Either way, the holders of the convertible notes get more shares for their money than new investors. In the event that the financing is a "down round" the holders of the convertible notes will dilute existing equity holders, and even more than the new investors do, because they get more shares for their money. Investors should pay careful attention to the aggregate total amount of convertible notes that the company has issued (and may issue in the future, and the terms of those notes).

If you are making an investment expecting to own a certain percentage of the company or expecting each share to hold a certain amount of value, it's important to realize how the value of those shares can decrease by actions taken by the company. Dilution can make drastic changes to the value of each share, ownership percentage, voting control, and earnings per share.

26

## **How we determined the offering price**

The Company determined the terms of the CF Convertible Notes internally.

## **REGULATORY INFORMATION**

### **Disqualification**

Neither the company nor any of its officers or managing members are disqualified from relying on Regulation Crowdfunding.

### **Annual reports**

The company is required to file a report electronically with the SEC annually and post the report on its website no later than 120 days after its fiscal year end (December 31). Once posted, the annual report may be found on the company's website at www.blokable.com.

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

(1) it is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;
(2) it has filed at least one annual report pursuant to Regulation Crowdfunding and has fewer than three hundred holders of record and has total assets that do not exceed $10,000,000;
(3) it has filed at least three annual reports pursuant to Regulation Crowdfunding;
(4) it or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or
(5) it liquidates or dissolves its business in accordance with state law.

### **Compliance failure**

The Company has not previously failed to comply with the requirements of Regulation Crowdfunding.

## **STARTENGINE'S INVESTING PROCESS**

### **Platform Compensation**

As compensation for the services provided by StartEngine Capital, the issuer is required to pay to StartEngine Capital a fee consisting of a 5.5-13% (five and one-half to thirteen) commission based on the dollar amount of securities sold in the Offering and paid upon disbursement of funds from escrow at the time of a closing. The commission is paid in cash and in securities of the Issuer identical to those offered to the public in the Offering at the sole discretion of StartEngine Capital. Additionally, the issuer must reimburse certain expenses related to the Offering. The securities issued to StartEngine Capital, if any, will be of the same class and have the same terms, conditions, and rights as the securities being offered and sold by the issuer on StartEngine Capital's website.

As compensation for the services provided by StartEngine Capital, investors are also required to pay StartEngine Capital a fee consisting of a 0-3.5% (zero to three and a half percent) service fee based on the dollar amount of securities purchased in each investment.

27

## Information Regarding Length of Time of Offering

**Investment Cancellations:** Investors will have up to 48 hours prior to the end of the offering period to change their minds and cancel their investment commitments for any reason. Once within 48 hours of ending, investors will not be able to cancel for any reason, even if they make a commitment during this period.

**Notifications:** Investors will receive periodic notifications regarding certain events pertaining to this offering, such as the company reaching its offering target, the company making an early closing, the company making material changes to its Form C, and the offering closing at its target date.

**Material Changes:** Material changes to an offering include but are not limited to: A change in minimum offering amount, change in security price, change in management, material change to financial information, etc. If an issuing company makes a material change to the offering terms or other information disclosed, including a change to the offering deadline, investors will be given five business days to reconfirm their investment commitment. If investors do not reconfirm, their investment will be cancelled, and the funds will be returned.

### Hitting The Target Goal Early & Oversubscriptions

StartEngine Capital will notify investors by email when the target offering amount has hit 25%, 50% and 100% of the funding goal. If the issuer hits its goal early, the issuer can create a new target deadline at least 5 business days out from the date it hits its goal early. Investors will be notified of the new target deadline via email and will then have the opportunity to cancel up to 48 hours before the new deadline.

Oversubscriptions: We require all issuers to accept oversubscriptions. This may not be possible if: 1) it vaults an issuer into a different category for financial statement requirements (and they do not have the requisite financial statements); or 2) they reach $5M in investments. In the event of an oversubscription, investments will be allocated at the discretion of the issuer, with priority given to StartEngine Owners Bonus members.

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 canceled and committed funds will be returned.

If a StartEngine issuer reaches its target offering amount prior to the deadline, it may conduct an initial closing of the offering early if they provide notice of the new offering deadline at least five business days prior to the new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). StartEngine will notify investors when the issuer meets its target offering amount. Thereafter, the issuer may conduct additional closings until the offering deadline.

**Rolling and Early Closings:** The company may elect to undertake rolling closings, or an early closing after it has received investment interests for its target offering amount. During a rolling closing, those investors that have committed funds will be provided five days' notice prior to acceptance of their subscriptions, release of funds to the company, and issuance of securities to the investors. During this time, the company may continue soliciting investors and receiving additional investment commitments. Investors should note that if investors have already received their securities, they will not be required to reconfirm upon the filing of a material amendment to the Form C. In an early closing, the offering will terminate upon the new target date, which must be at least five days from the date of the notice.

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### **Minimum and Maximum Investment Amounts**

In order to invest, commit to an investment or communicate on our platform, users must open an account on StartEngine Capital and provide certain personal and non-personal information including information related to income, net worth, and other investments.

### **Investor Limitations**

Investors are limited in how much they can invest on all crowdfunding offerings during any 12-month period. The limitation on how much they can invest depends on their net worth (excluding the value of their primary residence) and annual income. If either their annual income or net worth is less than $124,000, then during any 12-month period, they can invest up to the greater of either $2,500 or 5% of the greater of their annual income or Net worth. If both their annual income and net worth are equal to or more than $124,000, then during any 12-month period, they can invest up to 10% of annual income or net worth, whichever is greater, but their investments cannot exceed $124,000. If the investor is an “accredited investor” as defined under Rule 501 of Regulation D under the Securities Act, as amended, no investment limits apply.

### **Updates**

Information regarding updates to the offering and to subscribe can be found here, www.startengine.com/blokable.

29

# **Exhibit Index**

Exhibit A - Subscription Agreement & Convertible Note

Exhibit B - Video Transcripts

Exhibit C - Campaign Page

Exhibit D - Patent and Trademark List

Exhibit E - Operating Agreement

# **Financial Statements**

30

**Attachment 2:** `BlokableFinancialsUpdated2.pdf`

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

# **BLOKABLE, LLC**

Consolidated Financial Statements

As of December 31, 2022 and 2021

(With Independent Accountants’ Audit Report Thereon)

# **BLOKABLE, LLC**

# **Table of Contents**

|  | Page(s) |
| --- | --- |
| Independent Accountants' Audit Report | 1-2 |
| Consolidated Financial Statements: |  |
| Consolidated Balance Sheets | 3 |
| Consolidated Statements of Operations | 4 |
| Consolidated Statements of Members' Deficit | 5 |
| Consolidated Statements of Cash Flows | 6 |
| Notes to Consolidated Financial Statements | 7-14 |

F&A

# INDEPENDENT AUDITORS' REPORT

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

To the Board of Directors and Management of
Blokable, LLC
Sacramento, California

# Opinion

We have audited the consolidated financial statements of Blokable, LLC ("the Company") (a Delaware limited liability company), which comprise the consolidated balance sheets as of December 31, 2022 and 2021, and the related consolidated statements of operations, members' deficit, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Blokable, LLC as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

# Basis for Opinion

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

# Substantial Doubt About the Company's Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has suffered recurring losses from operations, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

# Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the 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 financial statements that are free from material misstatement, whether due to fraud or error.

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

Members of:
WSCPA
AICPA
PCPS

802 North Washington
PO Box 2163
Spokane, Washington
99210-2163

P 509-624-9223
TF 1-877-264-0485
mail@fruci.com
www.fruci.com

## Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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 generally accepted auditing standards 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, including omissions, 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 financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the 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 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 Blokable, 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 financial statements.
- Conclude, whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Blokable, 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.

Spokane, Washington
February 10, 2023

# **Blokable, LLC**  
 **Consolidated Balance Sheets**  
 December 31, 2022 and 2021

|  | 2022 | 2021 |
| --- | --- | --- |
| Assets |  |  |
| Current assets: |  |  |
| Cash | $357,137 | $2,386,107 |
| Land Deposits | 150,665 | - |
| Other receivables | 31,237 | 53,500 |
| Prepaid expenses | 83,428 | 101,312 |
| Total current assets | 622,467 | 2,540,919 |
| Long-term assets: |  |  |
| Property and equipment, net | 155,311 | 223,763 |
| Intangible assets, net | 8,633 | 16,501 |
| Right-of-use asset for operating leases, net | 39,714 | 237,230 |
| Total long-term assets | 203,658 | 477,494 |
| Total assets | $826,125 | $3,018,413 |
| Liabilities and Members' Deficit |  |  |
| Current liabilities: |  |  |
| Accounts payable | $121,073 | $72,749 |
| Accrued liabilities | 350,094 | 216,819 |
| Other current liabilities | 12,975 | 85,525 |
| Current portion of operating lease liability | 36,019 | 258,471 |
| Current portion of loan payable | 1,333,333 | 1,333,333 |
| Total current liabilities | 1,853,494 | 1,966,897 |
| Long term liabilities: |  |  |
| Convertible notes issued to current shareholders | 3,827,506 | - |
| Convertible notes issued to other holders | 390,175 | - |
| Loan payable, less current portion | 662,126 | 1,989,857 |
| Total long-term liabilities | 4,879,807 | 1,989,857 |
| Total liabilities | 6,733,301 | 3,956,754 |
| Members' Deficit: |  |  |
| Members' deficit | (5,868,319) | (919,714) |
| Noncontrolling interest | (38,857) | (18,627) |
| Total members' deficit | (5,907,176) | (938,341) |
| Total liabilities and members' deficit | $826,125 | $3,018,413 |

See accompanying notes to consolidated financial statements and independent accountants' audit report.

3

# **Blokable, LLC**  
 **Consolidated Statements of Operations**  
 Years Ended December 31, 2022 and 2021

|  | 2022 | 2021 |
| --- | --- | --- |
| Revenue earned | $765 | $44,937 |
| Cost of revenue earned | 2,153 | 50,477 |
| Gross loss | (1,388) | (5,540) |
| Research and development expenses | 2,032,294 | 3,203,183 |
| General and administrative expenses | 2,872,460 | 2,341,297 |
| Total expenses | 4,904,754 | 5,544,480 |
| Loss from operations | (4,906,142) | (5,550,020) |
| Other income (expense): |  |  |
| Interest income | 1,814 | 3,156 |
| Interest expense | (301,373) | (212,197) |
| Grant income | 53,243 | 127,895 |
| Lease income | 189,139 | 211,263 |
| Other loss on asset disposition | (5,518) | (38,049) |
| Loss on forgiveness of debt | - | (15,120) |
| Total other income (expense) | (62,695) | 76,948 |
| Net loss | (4,968,837) | (5,473,072) |
| Net loss attributable to noncontrolling interests | (20,230) | (18,627) |
| Net loss attributable to Blokable, LLC | $(4,948,607) | $(5,454,445) |

See accompanying notes to consolidated financial statements and independent accountants' audit report.

4

# **Blokable, LLC**  
 **Consolidated Statements of Members' Deficit**  
 Years Ended December 31, 2022 and 2021

|  | Common shares Authorized: 15,000,000 |  | Series Seed Preferred Shares Authorized: 2,228,749 |  | Series A Preferred Shares Authorized: 5,170,678 |  | Additional members' equity | Accumulated deficit | Non controlling interest | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Shares | Amount | Shares | Amount | Shares | Amount |  |  |  |  |
| Balance, January 1, 2021 | - | $ - | - | $ - | - | $ - | $30,429,280 | $(25,903,977) | $ - | $4,525,303 |
| Share based compensation | - | - | - | - | - | - | 9,237 | - | - | 9,237 |
| Net loss | - | - | - | - | - | - | - | (493,260) | - | (493,260) |
| Balance, January 31, 2021 | - | $ - | - | $ - | - | $ - | $30,438,517 | $(26,397,237) | $ - | $4,041,280 |
| Reorganization effective February 1, 2021 | 1,144,590 | 1,367,942 | 2,212,642 | 5,906,919 | 5,170,678 | 23,163,656 | (30,438,517) | - | - | - |
| Issuance of membership shares | 2,137,514 | 194 | - | - | - | - | - | - | - | 194 |
| Repurchase or forfeiture of membership shares | (96,647) | (3) | - | - | - | - | - | - | - | (3) |
| Net loss | - | - | - | - | - | - | - | (4,961,185) | (18,627) | (4,979,812) |
| Balance, December 31, 2021 | 3,185,457 | $1,368,133 | 2,212,642 | $5,906,919 | 5,170,678 | $23,163,656 | $ - | $(31,358,422) | $(18,627) | $(938,341) |
| Issuance of membership shares | 69,500 | 7 | - | - | - | - | - | - | - | 7 |
| Repurchase or forfeiture of membership shares | (45,751) | (5) | - | - | - | - | - | - | - | (5) |
| Net loss | - | - | - | - | - | - | - | (4,948,607) | (20,230) | (4,968,837) |
| Balance, December 31, 2022 | 3,209,206 | $1,368,135 | 2,212,642 | $5,906,919 | 5,170,678 | $23,163,656 | $ - | $(36,307,029) | $(38,857) | $(5,907,176) |

See accompanying notes to financial statements and independent accountants' audit report.

5

# **Blokable, LLC**  
 **Consolidated Statements of Cash Flows**  
 Years Ended December 31, 2022 and 2021

|  | 2022 | 2021 |
| --- | --- | --- |
| Cash flows from operating activities: |  |  |
| Net loss | $(4,968,837) | $(5,473,072) |
| Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| Depreciation and amortization | 70,162 | 71,900 |
| Share-based compensation expense | - | 9,237 |
| Loss on asset disposal | 5,518 | 38,049 |
| Loss on forgiveness of debt | - | 15,120 |
| Change in operating assets and liabilities: |  |  |
| Accounts receivable | - | 47,467 |
| Other receivables | 22,263 | 105,989 |
| Deposits and other assets | 17,884 | (896) |
| Right-of-use asset for operating leases | 197,516 | 365,971 |
| Accounts payable and accrued liabilities | 169,128 | (118,085) |
| Accrued loss on projects | - | (7,014) |
| Contract liabilities | - | (6,157) |
| Other current liabilities | (60,079) | 33,938 |
| Operating lease liability | (222,452) | (371,185) |
| Net cash used in operating activities | (4,768,897) | (5,288,738) |
| Cash flows from investing activities: |  |  |
| Disposal of property and equipment | 4,000 | 2,500 |
| Purchases of property and equipment | (3,360) | (25,466) |
| Land deposits | (150,665) | - |
| Cash used in investing activities | (150,025) | (22,966) |
| Cash flows from financing activities: |  |  |
| Proceeds from membership unit issuances | 7 | 194 |
| Repurchase of membership units | (5) | (3) |
| Proceeds from convertible notes issued to current shareholders | 3,827,506 | - |
| Proceeds from convertible notes issued to other holders | 390,175 | - |
| Repayment of long term debt | (1,327,731) | (657,081) |
| Net cash provided by financing activities | 2,889,952 | (656,890) |
| Net decrease in cash | (2,028,970) | (5,968,594) |
| Cash at beginning of year | 2,386,107 | 8,354,701 |
| Cash at end of year | $357,137 | $2,386,107 |
| Supplemental disclosure of cash flow information: |  |  |
| Cash paid during the year for interest | $160,900 | $205,527 |

See accompanying notes to consolidated financial statements and independent accountants' audit report.

6

# **BLOKABLE, LLC**  
Notes to Consolidated Financial Statements  
December 31, 2022 and 2021

# **(1) Summary of Significant Accounting Policies**

# **(a) Organization and Principles of Consolidation**

Blokable, Inc. was incorporated under the laws of the state of Delaware on March 22, 2016. Blokable, LLC was formed on December 29, 2020, as a wholly owned subsidiary of Blokable, Inc. Effective February 1, 2021, a reorganization was completed whereby Blokable, Inc.'s existing shareholders exchanged their shares in Blokable, Inc. for membership interests in Blokable, LLC; Blokable, LLC formed a new subsidiary, Blokable Operations, LLC, and currently owns 99.5% of the outstanding shares, and all prior employees of Blokable, Inc. were hired by Blokable Operations, LLC; and Blokable, Inc. was merged with and into Blokable, LLC. Upon completion of the merger, Blokable, Inc. was dissolved. Blokable, LLC currently owns 99.5% of Blokable Operations, LLC. References to the Company in these consolidated financial statements refer to Blokable, Inc. prior to the reorganization and to Blokable, LLC subsequent to the reorganization.

The Company is a vertically integrated multi-family housing developer that manufactures steel frame modules (Bloks) delivered to the construction site 95% complete. The Company's headquarters are based in Sacramento, CA.

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Noncontrolling interests represent interests in Blokable Operations, LLC not owned by the Company.

Limited liability companies (LLCs) are formed in accordance with the laws of the state in which they are organized. An LLC is generally an unincorporated association of one or more persons, and its members have limited personal liability for the obligations or debts of the entity. An LLC can elect to be taxed as a corporation or partnership for federal income tax purposes. The Company has elected to be taxed as a partnership.

# **(b) Use of Estimates**

Preparation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include amounts reported for long-term contracts, share-based compensation, lease liabilities and right-of-use assets.

# **(c) Fair Value Measurements**

Fair value is defined as the price that would be received to sell an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. Fair value should be based on the assumptions market participants would use when pricing an asset. U.S. generally accepted accounting principles establish a fair value hierarchy that prioritizes investments based on those assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets (observable inputs) and the lowest priority to an entity's assumptions (unobservable inputs). Fair value measurements are grouped into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value:

Level 1: Unadjusted quoted market prices for identical assets or liabilities in active markets as of the measurement date.

7

# **BLOKABLE, LLC**
Notes to Consolidated Financial Statements
December 31, 2022 and 2021

Level 2: Other observable inputs, either directly or indirectly, including: quoted prices for similar assets/liabilities in active markets; quoted prices for identical or similar assets in non-active markets; inputs other than quoted prices that are observable for the asset/liability; and inputs that are derived principally from or corroborated by other observable market data.

Level 3: Unobservable inputs that cannot be corroborated by observable market data.

The carrying amounts reported in the balance sheets of the Company approximate fair value.

**(d) Contracts with Customers**

The Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue which it expects to be entitled for the transfer of promised goods or services to its customers. The guidance provides a five-step model for recognizing revenue from contracts with customers as follows:

- Identify the contract with a customer
- Identify the performance obligation(s) in the contract
- Determine the transaction price
- Allocate the transaction price to the performance obligations in the contract
- Recognize revenue when or as performance obligations are satisfied

The Company's construction contracts include multiple promises, which management reviews at contract inception to determine whether they represent multiple-performance obligations. This review consists of determining whether promises or groups of promises are capable of being distinct and distinct within the context of the contract. The Company's construction contracts are considered to have a single performance obligation because the Company provides a significant service of integrating a complex set of tasks and components into a single asset.

Management has concluded performance obligations related to construction contracts are satisfied over time because the Company's performance typically creates or enhances an asset that the customer controls as the asset is created or enhanced. The Company recognizes revenue as performance obligations are satisfied and control of the promised good and/or service is transferred to the customer. The Company measures the progress toward complete satisfaction of the performance obligations using an input ("cost-to-cost") method. Under the cost-to-cost method, costs incurred to date are generally the best depiction of transfer of control.

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods and services to the customer. The consideration promised in a contract with a customer may include both fixed amounts and variable amounts (for example bonuses, incentives, penalties and liquidated damages) to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. When applicable, the Company estimates the amount of variable consideration at the amount to which it expects to be entitled.

The Company recognizes changes in contract estimates on a cumulative catch-up basis in the period in which the changes are identified. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the period it is identified.

Recognizing changes in the transaction price requires significant judgments of various factors including, but not limited to, dispute resolution developments and outcomes, anticipated negotiation results, and the cost of

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# **BLOKABLE, LLC**  
Notes to Consolidated Financial Statements  
December 31, 2022 and 2021

resolving such matters. If the transaction price is changed and no additional distinct goods or services are added, the effect of a change in the transaction price and the measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. When a contract is modified to deliver additional goods or services that are distinct and the increase in price of the contract is for the same amount as the standalone selling price of the additional goods or services included in the modification, the modification is accounted for as a separate contract.

Accounts receivable are governed by the contract terms and are recorded based on contracted prices when the Company obtains an unconditional right to payment under the terms of its contracts. Certain construction contracts include retention provisions to provide assurance to its customers that the Company will perform in accordance with the contract terms. The balances billed but not paid by customers pursuant to these provisions generally become due upon completion and acceptance of the project work or products by the customer.

Contract assets represent revenues recognized in excess of amounts billed or available to be billed where the right to payment is not unconditional. Contract liabilities represent billings in excess of revenues recognized.

All contract costs, including those associated with change orders, unresolved contract modifications, claims to or from customers, and back-charge recoveries, are recorded as incurred, and revisions to estimated total costs are reflected as soon as the obligation to perform is determined. Contract costs include all direct labor, material, subcontractors, equipment and indirect costs related to contract performance. General and administrative expenses are charged to operations as incurred.

Costs to obtain contracts (precontract costs) that are not expected to be recovered from the customer are expensed as incurred and included in general and administrative expenses on the consolidated statement of operations. Precontract costs that are explicitly chargeable to the customer even if the contract is not obtained are included in accounts receivable on the consolidated balance sheet.

The Company's revenues resulted from contracts with two customers.

# **(e) Grant Income**

In 2019, the Company was accepted into a grant program that partners with the National Renewable Energy Lab (NREL) to investigate environmental impacts of new technology at market scale. The award provided the opportunity to receive up to $250,000 in technical assistance from NREL and a cash award. Over the period of the grant, the Company recognized grant income for the in-kind services provided by NREL as the services were performed. The Company recognized the cash award as grant income when the Company completed the underlying requirements for the Company's portions of the service. The grant program was completed in 2022.

# **(f) Cash**

Cash includes cash on hand and cash in banks. The Company maintains cash balances in bank deposit accounts in the state of California; the deposits are insured by the Federal Deposit Insurance Corporation up to $250,000 per bank. The Company has not experienced any losses in these accounts for the years-ended December 31, 2022 and 2021.

# **(g) Other Receivable**

Other receivables are carried at the estimated collectable amount based on management's estimate of collectability by evaluating individual balances. As part of the research and development activities of the

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# **BLOKABLE, LLC**  
Notes to Consolidated Financial Statements  
December 31, 2022 and 2021

Company, the Company claims a tax credit for qualified research expenses, including wages paid to employees, contractor or vendor payments, and supplies used in qualified research activities. For a five-year period after first claiming the qualified research expenses, the Company can apply the tax credit to receive a refund on certain payroll taxes. Upon filing the quarterly tax return, the Company recognizes a receivable for the amount of the tax credit claimed on the quarterly tax return.

# **(h) Land Deposits**

As part of the project development pipeline, the Company may enter into land purchase agreements that require a deposit, which enable the Company to perform certain due diligence procedures on the land under contract. The terms of the escrow agreements vary by each contract signed, and may or may not be refundable based on the terms of the agreement. The Company records a current asset for the land deposit at cost when the purchase of the property may occur within one year.

# **(i) Property and Equipment**

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated service lives of the related assets, which range from three to 13 years. Leasehold improvements consist of improvements to the factory that is leased to the Company. Once the improvements are completed and are placed in service they are depreciated over the lesser of the life of the asset or the lease term.

# **(j) Intangible Assets**

Intangible assets include trademarks which are amortized on the straight-line basis over the estimated useful life, which is 15 years.

# **(k) Income Taxes**

The Company has elected to be taxed as partnership for federal tax purposes. Accordingly, the taxable income or losses of the partnership flows through to the members and is reported on their respective income tax returns; therefore, no provision for income taxes is made in these consolidated financial statements.

Management believes that the federal income tax treatment of the respective items entering into the determination of taxable income or losses is supportable based upon the interpretation of the United States Internal Revenue Code and its regulations, public rulings, and court decisions in effect as of the date of these consolidated financial statements. Since the federal income tax treatment of certain items may be based on conflicting or imprecise authoritative pronouncements, such treatment may be successfully challenged by the Internal Revenue Service.

# **(l) Significant Risks and Uncertainties**

The Company is closely monitoring the impact of the COVID-19 pandemic, including the spread of new variants of the virus, on all aspects of its business. The situation surrounding the COVID-19 pandemic remains fluid, and the Company continues to actively manage its response and assess potential impacts to its financial position and operating results, as well as potential adverse developments to its business.

# **(2) Liquidity and Going Concern**

The Company has incurred losses from operations and negative operating cash flows and has a net capital deficiency. Management plans to issue additional membership shares and close on additional debt funding in 2023. Based on multiple successful capital raises and debt fundings, management believes that these transactions will be completed successfully; however, since they are outside of the Company's control, they are not deemed probable to occur. This potential inability to obtain sufficient funding raises substantial doubt about

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# **BLOKABLE, LLC**  
 Notes to Consolidated Financial Statements  
 December 31, 2022 and 2021

the Company's ability to continue as a going concern for twelve months from the date of issuance of these consolidated financial statements. In the event that the Company is unable to secure funding, there is a risk that it may not be able to meet its ongoing obligations and continue its business. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

# **(3) Property and Equipment**

Property and equipment consist of the following at December 31, 2022 and 2021:

|  | 2022 | 2021 |
| --- | --- | --- |
| Machinery and equipment | $199,997 | 225,997 |
| Office equipment | 16,193 | 16,193 |
| Leasehold improvements | - | 137,324 |
| Software and computers | 134,782 | 131,422 |
| Total property and equipment | 350,972 | 510,936 |
| Less accumulated depreciation | (195,661) | (287,173) |
| Property and equipment, net | $155,311 | 223,763 |

Depreciation expense was $68,812 and $70,552 for the years ended December 31, 2022 and 2021, respectively.

# **(4) Loan Payable**

In 2020, the Company entered into a Loan and Security Agreement with a commercial bank that permits the Company growth capital advances totaling $4,000,000, bearing interest at the greater of (i) 1% above the prime rate, or (ii) 5.25%, with interest payable monthly. Repayment of advances are interest only through June 30, 2021, then $111,111 principal plus interest monthly until maturity in June 2024. Collateral related to the Loan and Security Agreement consists of substantially all assets of the company.

In connection with the Loan and Security Agreement, the Company issued a warrant to purchase Common Shares. The Company authorized 22,246 shares to be purchased, and agreed in February 2021 to adjust the exercise price to $.01 per share. The holder may at any time and from time to time exercise the warrant, in whole or in part, by delivering to the Company the original of the Warrant together with a duly executed Notice of Exercise.

# **(5) Convertible Notes**

In 2022, the Company entered into Secured Subordinated Convertible Promissory Notes (the Convertible Notes) with investors. The Company is authorized to issue up to $7,500,000 in Convertible Notes, of which, $4,217,681 closed in 2022. The principal and unpaid accrued interest on the Convertible Notes are payable 24 months following the initial closing date, which was April 29, 2022. The Convertible Notes accrue interest at a rate of 6% per year, paid at maturity. The Convertible Notes convert to equity securities upon a qualified financing of at least $30 million, along with other criteria as further defined in the Notes, at a price of 80 percent of the price paid by cash purchasers in the qualified financing. Collateral related to the Convertible Notes consists of substantially all assets of the Company, but is subordinate to the obligations of the Loan Payable.

Certain Notes were issued to current investors in the Company, on the same terms and conditions as other investors. Of the total issuances, $3,827,506 were issued to entities that currently own membership shares of the Company.

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# **BLOKABLE, LLC**  
Notes to Consolidated Financial Statements  
December 31, 2022 and 2021

# **(6) Members' Deficit**

The company is authorized to issue three classes of membership shares: Common Shares, Series Seed Preferred Shares, and Series A Preferred Shares. The rights of each class of members are set forth in the Amended and Restated Operating Agreement of Blokable, LLC dated February 1, 2021 (the Operating Agreement). Except as otherwise noted, as part of the reorganization transaction that occurred on February 1, 2021, shareholders of Blokable exchanged their respective shares in Blokable, Inc. for the same number of membership shares in Blokable, LLC.

As of February, 2021, there was an outstanding balance of $289,499 on a promissory note from a shareholder, originally issued for $578,998, which was issued in exchange for common stock shares. The note receivable was comprised of a recourse portion and non-recourse portion. At the time of the reorganization, the shareholder returned the shares in Blokable, Inc. in exchange for forgiveness of the note. The Company recognized a loss of $15,120 for the accrued and unpaid interest on the non-recourse portion of the note. The 441,983 shares were cancelled as part of the reorganization.

If the Company elects to make distributions to the members, the holders of the Series A and Series Seed Preferred Shares are entitled to priority distributions in proportion to each member's unpaid preferred liquidation preference. As of December 31, 2022, the unpaid preferred liquidation preference for Series Seed Preferred Shares is $4.5113 per unit and for Series A Preferred Shares is $4.52 per unit. The total liquidation preference is $9,981,891 for the Series Seed Preferred Shares and $23,371,464 for the Series A Preferred Shares as of December 31, 2022.

All shares are voting shares except unvested shares or shares subject to a repurchase option in favor of the Company, and all Common Shares and Preferred Shares vote together on an as-converted basis and not as a class. Series A Preferred Shares and Series Seed Preferred Shares can be converted into Common Shares at any time at the option of the holder or automatically upon the election of the majority of Preferred Shares or the closing of a qualified initial public offering. The initial conversion rate per share is determined by dividing the original issue price by the conversion price.

# **(7) Grant of Common Shares Plan**

The Company may issue Common Shares to employees, consultants, or Managers pursuant to the terms of the Grant of Common Shares Plan set forth in the Operating Agreement. Shares may also be issued outside of the Plan. The Board of Managers may issue up to 1,466,768 shares under the Plan as of December 31, 2022 and 2021. The Board sets the price for the shares issued under the Plan, and the price may be zero. At the discretion of the Board, the shares may be subject to vesting. If a member's shares are subject to vesting, any unvested shares upon termination of the employee or consultant relationship with the Company are subject to forfeiture or repurchase, depending on the terms of the original grant of shares. Repurchased or forfeited shares are available to be reissued under the plan.

During 2021, the Board issued 1,025,205 Common Shares under the Plan, of which 808,023 were issued for cash proceeds of $83 and 217,182 were issued without cash payment. During the year, 66,542 were forfeited and 30,105 were repurchased. At December 31, 2021, 928,558 shares were outstanding, and of those shares, 353,358 were fully vested. During 2022, the Board issued an additional 69,500 shares under the Plan for cash proceeds of $7. During the year 42,834 shares were repurchased and 2,917 shares were forfeited. At December 31, 2022, 952,307 shares are outstanding, and of those shares, 596,931 are fully vested.

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# **BLOKABLE, LLC**  
Notes to Consolidated Financial Statements  
December 31, 2022 and 2021

# **(8) Warrants**

The Company may from time to time issue warrants to purchase membership shares at prices to be determined by the Board. As part of the reorganization transaction, all existing warrants were transferred into the corresponding share type with the same expiration dates. The Company issued a warrant to a holder in October 2016 with the option to purchase 16,107 shares of Series Seed Preferred Shares at an exercise price of $1.50 per share with an expiration date of October 2023. The holder may exercise the option or exercise a conversion right to convert the warrant into the proportionate number of shares equal to difference between the then aggregate fair market value of the 16,107 shares upon exercise of the warrant minus the aggregate exercise price of the shares divided by the fair market value.

# **(9) Lease Obligations and Subleases**

The Company's leases include offices and factories in both Washington and California. The leases require the Company to pay insurance, property taxes and certain other operating expenses applicable to the respective leased property. In March 2020, the Company subleased the factory space to a tenant for the then remaining term of the lease. The Company recognized the lease income from the sublease on a straight-line basis. The sublease terminated in September 2022.

The Company's leases are classified as operating leases. For these leases, the Company has recognized a lease liability equal to the present value of the remaining lease payments, and a right-of-use asset equal to the lease liability, subject to certain adjustments, such as for prepaid or accrued rents. The Company made an accounting policy election to use a risk-free discount rate for its leases comparable to corresponding lease terms to determine the present value of the lease payments. The weighted average discount rate for operating leases was 1.74% and 1.72% for the years ended December 31, 2022 and 2021, respectively.

The Company has made an accounting policy election not to recognize right-of-use assets and lease liabilities for leases with a lease term of 12 months or less, including renewal options that are reasonably certain to be exercised, that also do not include an option to purchase the underlying asset that is reasonably certain of exercise. Instead, lease payments for these leases are recognized as lease cost on a straight-line basis over the lease term.

Certain of the Company's leases include variable lease costs to reimburse the lessor for real estate tax and insurance expenses, and certain nonlease components that transfer a distinct service to the Company, such as common area maintenance services. The Company has elected to expense these variable lease costs as those costs are paid for all classes of leased assets.

Lease expense was $327,064 and $432,034 for the years ended December 31, 2022 and 2021, respectively. In addition, the Company paid $55,480 and $59,817 of variable lease costs that were expensed as incurred for the years ended December 31, 2022 and 2021, respectively.

Dates due for outstanding leases extend to 2023, with monthly payments of $3,695 to $6,934. No renewal options exist for rental properties.

Aggregate amounts of maturities of the Company's lease liabilities are as follows:

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# **BLOKABLE, LLC**  
Notes to Consolidated Financial Statements  
December 31, 2022 and 2021

|  | 2022 |
| --- | --- |
| Years ending December 31: |  |
| 2022 | $ - |
| 2023 | 36,950 |
| Total future lease payments | 36,950 |
| Present value of future lease payments: |  |
| Discounted lease liabilities | 931 |

# **(10) Subsequent Events**

The Company has evaluated subsequent events through February 10, 2023 the date at which these consolidated financial statements were available to be issued, and except as noted below, has determined that there are no subsequent events that require adjustment or disclosure.

In January 2023, the Company closed on additional $542,662 of Convertible Notes. The Convertible Notes have the same terms and conditions as the Convertible Notes closed in 2022, including an interest rate at 6% per year and a maturity date in April 2024. Of the total issuances in January 2023, $437,662 were issued to entities that currently own membership shares of the Company.

In January 2023, the Company terminated an escrow agreement for land and received $125,665 as a refund on land deposits.

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**Attachment 3:** `BlokableSubAgmtandCN.pdf`

## CONVERTIBLE NOTE SUBSCRIPTION AGREEMENT

**THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.** THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET EXISTS FOR THE SECURITIES, AND NO PUBLIC MARKET IS EXPECTED TO DEVELOP FOLLOWING THIS OFFERING.

**THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE 'SECURITIES ACT'), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND STATE SECURITIES OR BLUE SKY LAWS.** ALTHOUGH AN OFFERING STATEMENT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE 'SEC'), THAT OFFERING STATEMENT DOES NOT INCLUDE THE SAME INFORMATION THAT WOULD BE INCLUDED IN A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND IT IS NOT REVIEWED IN ANY WAY BY THE SEC. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF THE SUBSCRIPTION AGREEMENT OR ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO SUBSCRIBER IN CONNECTION WITH THIS OFFERING OVER THE WEB-BASED PLATFORM MAINTAINED BY STARTENGINE CAPITAL LLC (THE 'INTERMEDIARY'). ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

**INVESTORS ARE SUBJECT TO LIMITATIONS ON THE AMOUNT THEY MAY INVEST, AS SET OUT IN SECTION 4(d).** THE COMPANY IS RELYING ON THE REPRESENTATIONS AND WARRANTIES SET FORTH BY EACH SUBSCRIBER IN THIS SUBSCRIPTION AGREEMENT AND THE OTHER INFORMATION PROVIDED BY SUBSCRIBER IN CONNECTION WITH THIS OFFERING TO DETERMINE THE APPLICABILITY TO THIS OFFERING OF EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

**PROSPECTIVE INVESTORS MAY NOT TREAT THE CONTENTS OF THE SUBSCRIPTION AGREEMENT, THE OFFERING STATEMENT OR ANY OF THE OTHER MATERIALS AVAILABLE ON THE INTERMEDIARY'S WEBSITE (COLLECTIVELY, THE 'OFFERING MATERIALS') OR ANY COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS OFFICERS, EMPLOYEES OR AGENTS AS INVESTMENT, LEGAL OR TAX ADVICE.** IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND THE RISKS INVOLVED. EACH PROSPECTIVE INVESTOR SHOULD CONSULT THE INVESTOR'S OWN COUNSEL, ACCOUNTANT AND OTHER PROFESSIONAL ADVISOR AS TO INVESTMENT, LEGAL, TAX AND OTHER RELATED MATTERS CONCERNING THE INVESTOR'S PROPOSED INVESTMENT.

**THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY.** THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THE

OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

**THE INFORMATION PRESENTED IN THE OFFERING MATERIALS WAS PREPARED BY THE COMPANY SOLELY FOR THE USE BY PROSPECTIVE INVESTORS IN CONNECTION WITH THIS OFFERING.** NO REPRESENTATIONS OR WARRANTIES ARE MADE AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN ANY OFFERING MATERIALS, AND NOTHING CONTAINED IN THE OFFERING MATERIALS IS OR SHOULD BE RELIED UPON AS A PROMISE OR REPRESENTATION AS TO THE FUTURE PERFORMANCE OF THE COMPANY.

**THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION AND FOR ANY REASON WHATSOEVER TO MODIFY, AMEND AND/OR WITHDRAW ALL OR A PORTION OF THE OFFERING AND/OR ACCEPT OR REJECT IN WHOLE OR IN PART ANY PROSPECTIVE INVESTMENT IN THE SECURITIES OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS THAN THE AMOUNT OF SECURITIES SUCH INVESTOR DESIRES TO PURCHASE.** EXCEPT AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THEIR DATE. NEITHER THE DELIVERY NOR THE PURCHASE OF THE SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THAT DATE.

TO: %%NAME_OF_ISSUER%%

Ladies and Gentlemen:

# 1. Note Subscription.

(a) The undersigned (“Subscriber”) hereby subscribes for and agrees to purchase a Convertible Note (the “Securities”), of %%NAME_OF_ISSUER%%, a %%STATE_INCORPORATED%%, %%COMPANY_TYPE%% (the “Company”), upon the terms and conditions set forth herein. The rights of the Securities are as set forth in the Convertible Note and any description of the Securities that appears in the Offering Materials is qualified in its entirety by such document.

(b) By executing this Subscription Agreement, Subscriber acknowledges that Subscriber has received this Subscription Agreement, a copy of the Offering Statement of the Company filed

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with the SEC and any other information required by the Subscriber to make an investment decision.

(c) This Subscription may be accepted or rejected in whole or in part, at any time prior to a Closing Date (as hereinafter defined), by the Company at its sole discretion. In addition, the Company, at its sole discretion, may allocate to Subscriber only a portion of the number of Securities Subscriber has subscribed for. The Company will notify Subscriber whether this subscription is accepted (whether in whole or in part) or rejected. If Subscriber's subscription is rejected, Subscriber's payment (or portion thereof if partially rejected) will be returned to Subscriber without interest and all of Subscriber's obligations hereunder shall terminate.

(d) The aggregate value of Securities sold shall not exceed $5,000,000 (the 'Oversubscription Offering'). Providing that subscriptions for $%MIN_FUNDING_AMOUNT% Securities are received (the 'Minimum Offering'), the Company may elect at any time to close all or any portion of this offering, on various dates at or prior to the Termination Date (each a 'Closing Date').

(e) In the event of rejection of this subscription in its entirety, or in the event the sale of the Securities (or any portion thereof) is not consummated for any reason, this Subscription Agreement shall have no force or effect.

# 2. Purchase Procedure.

(a) Payment. The purchase price for the Securities shall be paid simultaneously with the execution and delivery to the Company of the signature page of this Subscription Agreement, which signature and delivery may take place through digital online means. Subscriber shall deliver a signed copy of this Subscription Agreement, along with payment for the aggregate purchase price of the Securities in accordance with the online payment process established by the Intermediary.

(b) Escrow arrangements. Payment for the Securities shall be received by Bryn Mawr Trust Company (the 'Escrow Agent') from the undersigned by transfer of immediately available funds or other means approved by the Company prior to the applicable Closing, in the amount as set forth in on the signature page attached hereto below and otherwise in accordance with Intermediary's payment processing instructions. Upon such Closing, the Escrow Agent shall release such funds to the Company. The undersigned shall receive notice and evidence of the digital entry of the number of the Securities owned by Subscriber reflected on the books and records of the Company (reflected either (i) under Subscriber's name or (ii) under StartEngine Primary, LLC as nominee) as recorded by StartEngine Secure, LLC (an SEC registered Transfer Agent service operated by StartEngine Crowdfunding, Inc.) or other SEC registered transfer agent as designated by the Company, which books and records shall bear a notation that the Securities were sold in reliance upon Regulation CF.

(c) **Special provisions for cryptocurrency payments.** Notwithstanding Section 2(b), cryptocurrency payments will be received by the Escrow Agent from the undersigned and converted to U.S. dollars once per day. Once converted to U.S. dollars, the undersigned will be subscribed for the number of Securities he is eligible to receive based upon the investment value in U.S. dollars (the 'Final Investment Amount'). Subscriber understands that the Final Investment Amount will be determined following the exchange of the cryptocurrency to U.S. dollars at the current exchange rate, minus the Digital Asset Handling Fee of the Escrow Agent. Cryptocurrency payments received at any time other than business hours in New York City (9:00am to 4:00pm Eastern Time, Monday through Friday) will be converted to U.S. dollars on

3

the next business day. Subscriber further understands and affirms that Subscriber will be subscribed for the Securities equaling one-hundred percent (100%) of the Final Investment Amount. In the event that the Final Investment Amount exceeds the annual limit for the Subscriber, or that the Final Investment Amount exceeds the number of Securities available to the Subscriber, Subscriber will be refunded the amount not applied to his subscription. Any refunds, including those for cancelled investments, will be made only in the same cryptocurrency used for the initial payment and will be refunded to the same digital wallet address from which the initial payment was made.

3. **Subordination.** The indebtedness evidenced by the Securities shall be expressly subordinated, to the extent and in the manner set forth in the subordination agreement by and among the Company, the Subscribers, and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, in substantially the form attached as Exhibit A to this Agreement (the “Subordination Agreement”), in right of payment to the prior payment in full of all of the Company’s Senior Indebtedness (as defined in the Securities), and each Subscriber hereby agrees to enter into such agreements and take such additional action as may be necessary to perfect such subordination

# 4. Representations and Warranties of the Company.

The Company represents and warrants to Subscriber that the following representations and warranties are true and complete in all material respects as of the date of each Closing Date, except as otherwise indicated. For purposes of this Agreement, an individual shall be deemed to have “knowledge” of a particular fact or other matter if such individual is actually aware of such fact. The Company will be deemed to have “knowledge” of a particular fact or other matter if one of the Company’s current officers has, or at any time had, actual knowledge of such fact or other matter.

(a) **Organization and Standing.** The Company is a %%COMPANY_TYPE%% duly formed, validly existing and in good standing under the laws of the State of %%STATE_INCORPORATED%%. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement, and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

(b) **Eligibility of the Company to Make an Offering under Section 4(a)(6).** The Company is eligible to make an offering under Section 4(a)(6) of the Securities Act and the rules promulgated thereunder by the SEC.

(c) **Issuance of the Securities.** The issuance, sale and delivery of the Securities in accordance with this Subscription Agreement has been duly authorized by all necessary corporate action on the part of the Company. The Securities, when so issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be duly and validly issued and outstanding and will constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms. The company will take measures necessary so the conversion of shares will be authorized and issued when required.

(d) **Authority for Agreement.** The execution and delivery by the Company of this Subscription Agreement and the consummation of the transactions contemplated hereby (including the issuance, sale and delivery of the Securities) are within the Company’s powers and have been duly authorized by all necessary corporate action on the part of the Company. Upon

4

full execution hereof, this Subscription Agreement shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) with respect to provisions relating to indemnification and contribution, as limited by considerations of public policy and by federal or state securities laws.

(e) No filings. Assuming the accuracy of the Subscriber's representations and warranties set forth in Section 4 hereof, no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to the Company in connection with the execution, delivery and performance by the Company of this Subscription Agreement except (i) for such filings as may be required under Section 4(a)(6) of the Securities Act or the rules promulgated thereunder or under any applicable state securities laws, (ii) for such other filings and approvals as have been made or obtained, or (iii) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Company to perform its obligations hereunder.

(f) Financial statements. Complete copies of the Company's financial statements consisting of the statement of financial position of the Company as at December 31, 2022 and the related consolidated statements of income and cash flows for the two-year period then ended or since inception (the 'Financial Statements') have been made available to the Subscriber and appear in the Offering Statement and on the site of the Intermediary. The Financial Statements are based on the books and records of the Company and fairly present the financial condition of the Company as of the respective dates they were prepared and the results of the operations and cash flows of the Company for the periods indicated. Fruci & Associates II, PLLC, which has audited or reviewed the Financial Statements, is an independent accounting firm within the rules and regulations adopted by the SEC. The Financial Statements comply with the requirements of Rule 201 of Regulation Crowdfunding, as promulgated by the SEC.

(g) Proceeds. The Company shall use the proceeds from the issuance and sale of the Securities as set forth in the Offering Materials.

(h) Litigation. There is no pending action, suit, proceeding, arbitration, mediation, complaint, claim, charge or investigation before any court, arbitrator, mediator or governmental body, or to the Company's knowledge, currently threatened in writing (a) against the Company or (b) against any consultant, officer, manager, director or key employee of the Company arising out of his or her consulting, employment or board relationship with the Company or that could otherwise materially impact the Company.

5. Representations and Warranties of Subscriber. By executing this Subscription Agreement, Subscriber (and, if Subscriber is purchasing the Securities subscribed for hereby in a fiduciary capacity, the person or persons for whom Subscriber is so purchasing) represents and warrants, which representations and warranties are true and complete in all material respects as of the date of the Subscriber's Closing Date(s):

(a) Requisite Power and Authority. Such Subscriber has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement, the Operating Agreement and other agreements required hereunder and to carry out their provisions. All action on Subscriber's part required for the lawful execution and delivery of this Subscription

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Agreement and other agreements required hereunder have been or will be effectively taken prior to the Closing. Upon their execution and delivery, this Subscription Agreement and other agreements required hereunder will be valid and binding obligations of Subscriber, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors' rights and (b) as limited by general principles of equity that restrict the availability of equitable remedies.

(b) Investment Representations. Subscriber understands that the Securities have not been registered under the Securities Act. Subscriber also understands that the Securities are being offered and sold pursuant to an exemption from registration contained in the Act based in part upon Subscriber's representations contained in this Subscription Agreement.

(c) Illiquidity and Continued Economic Risk. Subscriber acknowledges and agrees that there is no ready public market for the Securities and that there is no guarantee that a market for their resale will ever exist. Subscriber must bear the economic risk of this investment indefinitely and the Company has no obligation to list the Securities on any market or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Securities. Subscriber acknowledges that Subscriber is able to bear the economic risk of losing Subscriber's entire investment in the Securities. Subscriber also understands that an investment in the Company involves significant risks and has taken full cognizance of and understands all of the risk factors relating to the purchase of Securities.

(d) Resales. Subscriber agrees that during the one-year period beginning on the date on which it acquired Securities pursuant to this Subscription Agreement, it shall not transfer such Securities except:

- (i) To the Company;
- (ii) To an "accredited investor" within the meaning of Rule 501 of Regulation D under the Securities Act;
- (iii) As part of an offering registered under the Securities Act with the SEC; or
- (iv) To a member of the Subscriber's family or the equivalent, to a trust controlled by the Subscriber, to a trust created for the benefit of a member of the family of the Subscriber or equivalent, or in connection with the death or divorce of the Subscriber or other similar circumstance.

(e) Investment Limits. Subscriber represents that either:

- (i) Either of Subscriber's net worth or annual income is less than $124,000, and that the amount it is investing pursuant to this Subscription Agreement, together with all other amounts invested in offerings under Section 4(a)(6) of the Securities Act within the previous 12 months, is either less than (A) 5% of the lower of its annual income or net worth, or (B) $2,500; or
- (ii) Both of Subscriber's net worth and annual income are more than $124,000, and that the amount it is investing pursuant to this Subscription Agreement, together with all other amounts invested in offerings under Section 4(a)(6) of the Securities Act within the previous 12 months, is less than 10% of the lower of its annual income or net worth, and does not exceed $124,000.

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(f) **Subscriber information.** Within five days after receipt of a request from the Company, the Subscriber hereby agrees to provide such information with respect to its status as a shareholder (or potential shareholder) and to execute and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company is or may become subject. **Subscriber further agrees that in the event it transfers any Securities, it will require the transferee of such Securities to agree to provide such information to the Company as a condition of such transfer.**

(g) **Company Information.** Subscriber has read the Offering Statement. Subscriber understands that the Company is subject to all the risks that apply to early-stage companies, whether or not those risks are explicitly set out in the Offering Materials. Subscriber has had an opportunity to discuss the Company's business, management and financial affairs with managers, officers and management of the Company and has had the opportunity to review the Company's operations and facilities. Subscriber has also had the opportunity to ask questions of and receive answers from the Company and its management regarding the terms and conditions of this investment. Subscriber acknowledges that except as set forth herein, no representations or warranties have been made to Subscriber, or to Subscriber's advisors or representative, by the Company or others with respect to the business or prospects of the Company or its financial condition.

(h) **Valuation.** The Subscriber acknowledges that the price of the Securities was set by the Company on the basis of the Company's internal valuation and no warranties are made as to value. The Subscriber further acknowledges that future offerings of Securities may be made at lower valuations, with the result that the Subscriber's investment will bear a lower valuation.

(i) **Domicile.** Subscriber maintains Subscriber's domicile (and is not a transient or temporary resident) at the address shown on the signature page.

(j) **Foreign Investors.** If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. Subscriber's subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Subscriber's jurisdiction.

# 6. Revisions to Manner of Holding.

Subscriber understands that as a condition to investment in the Securities, the undersigned may be required to establish an account with StartEngine Primary LLC, and that the Securities will be recorded on the books of the Company as being held by StartEngine Primary LLC, as 'Nominee' in omnibus as legal holder of record of the securities. Subscriber will appear on the books of the Custodian as the beneficial owner of the Securities. Subscriber agrees that in the event Subscriber does not provide information sufficient to effect such arrangement in a timely manner, the Company may repurchase the Securities at a price to be determined by the board of directors of the Company (the 'Board of Directors'). Subscriber further agrees to transfer its holdings of securities issued under Section 4(a)(6) of the Act into 'street name' in a brokerage account in Subscriber's name, provided that the Company pay all costs of such transfer. Subscriber agrees that in the event Subscriber does not provide information

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sufficient to effect such transfer in a timely manner, the Company may repurchase the Securities at a price to be determined by the Board of Directors.

# 7. Indemnity.

The representations, warranties and covenants made by the Subscriber herein shall survive the closing of this Agreement. The Subscriber agrees to indemnify and hold harmless the Company and its respective officers, directors and affiliates, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys' fees, including attorneys' fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing in connection with this transaction.

# 8. Governing Law; Jurisdiction. This Subscription Agreement shall be governed and construed in accordance with the laws of the State of \*\*\*STATE\_INCORPORATED\*\*\*.

EACH OF THE SUBSCRIBERS AND THE COMPANY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE STATE OF \*\*\*STATE\_INCORPORATED\*\*\*\*, AND NO OTHER PLACE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS SUBSCRIPTION AGREEMENT MAY BE LITIGATED IN SUCH COURTS. EACH OF SUBSCRIBERS AND THE COMPANY ACCEPTS FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS AND HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT. EACH OF SUBSCRIBERS AND THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND IN THE ADDRESS SPECIFIED IN SECTION 9 AND THE SIGNATURE PAGE OF THIS SUBSCRIPTION AGREEMENT.

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE ACTIONS OF EITHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF, EACH OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY. EACH OF THE PARTIES HERETO FURTHER WARRANTS AND REPRESENTS THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT. IN THE EVENT OF LITIGATION, THIS SUBSCRIPTION AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

# 9. Notices.

Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and

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when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) emailed, telecopied or cabled, on the date of such delivery to the address of the respective parties as follows:

If to the Company, to: %%ADDRESS_OF_ISSUER%%

If to a Subscriber, to Subscriber's address as shown on the signature page hereto

or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by telecopy or cable shall be confirmed by letter given in accordance with (a) or (b) above.

# 10. Miscellaneous.

(a) All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require.

(b) This Subscription Agreement is not transferable or assignable by Subscriber.

(c) The representations, warranties and agreements contained herein shall be deemed to be made by and be binding upon Subscriber and its heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns.

(d) None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Subscriber.

(e) In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never the subject of agreement.

(f) The invalidity, illegality or unenforceability of one or more of the provisions of this Subscription Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Subscription Agreement in such jurisdiction or the validity, legality or enforceability of this Subscription Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

(g) This Subscription Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof.

(h) The terms and provisions of this Subscription Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer, and no provision hereof shall confer, third-party beneficiary rights upon any other person.

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(i) The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.

(j) This Subscription Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

(k) If any recapitalization or other transaction affecting the stock of the Company is affected, then any new, substituted or additional securities or other property which is distributed with respect to the Securities shall be immediately subject to this Subscription Agreement, to the same extent that the Securities, immediately prior thereto, shall have been covered by this Subscription Agreement.

(l) No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

[SIGNATURE PAGE FOLLOWS]

# ---%%NAME\_OF\_ISSUER%%  
SUBSCRIPTION AGREEMENT SIGNATURE PAGE

The undersigned, desiring to purchase Convertible Notes of %%NAME_OF_ISSUER%%, by executing this signature page, hereby executes, adopts and agrees to all terms, conditions and representations of the Subscription Agreement.

(a) The aggregate purchase price for the Convertible Notes %%VESTING_AMOUNT%% the undersigned hereby irrevocably subscribes for is:

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(b) The Securities being subscribed for will be owned by, and should be recorded on the Company's books as held in the name of:

%%SUBSCRIBER_SIGNATURE%%
By: %%INVESTOR_SIGNATURES%%
Name: %%VESTING_AS%%
Title: %%INVESTOR_TITLE%%
Email: %%VESTING_AS_EMAIL%%

Date %%NOW%%.

* * * * *

This Subscription is accepted
on %%NOW%%.

%%NAME_OF_ISSUER%%
By:
%%ISSUER_SIGNATURE%%

[CONVERTIBLE NOTE FOLLOWS]

THIS INSTRUMENT AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE ACT. FOR ONE YEAR FROM THE DATE OF THIS INSTRUMENT, SECURITIES SOLD IN RELIANCE ON REGULATION CROWDFUNDING UNDER THE ACT MAY ONLY BE TRANSFERRED TO THE COMPANY, TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501 OF REGULATION D UNDER THE ACT, AS PART OF AN OFFERING REGISTERED UNDER THE SECURITIES ACT WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC"), OR TO A MEMBER OF INVESTOR'S FAMILY OR THE EQUIVALENT, TO A TRUST CONTROLLED BY THE INVESTOR, TO A TRUST CREATED FOR THE BENEFIT OF A MEMBER OF THE FAMILY OF THE INVESTOR OR EQUIVALENT, OR IN CONNECTION WITH THE DEATH OR DIVORCE OF THE INVESTOR OR OTHER SIMILAR CIRCUMSTANCE. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF THE SUBSCRIPTION AGREEMENT OR ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO INVESTOR IN CONNECTION WITH THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

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# **CONVERTIBLE PROMISSORY NOTE  
SERIES 2023 - CF**

\$%%VESTING_AMOUNT%%

%%NOW%%

For value received %%NAME_OF_ISSUER%%, a %%STATE_INCORPORATED%% corporation (the “Company”), promises to pay to %%VESTING_AS%%, the investor party hereto (“Investor”) who is recorded in the books and records of the Company as having subscribed to this convertible promissory note (the “Note”) the principal amount set forth above and on the signature page of his/her subscription agreement (the “Subscription Agreement”), together with accrued and unpaid interest thereon, each due and payable on the date and in the manner set forth below. This Note is issued as part of a series of similar convertible promissory notes issued by the Company pursuant to Regulation Crowdfunding (collectively, the “Crowdfunding Notes”) to qualified purchasers on the funding portal StartEngine Capital LLC (collectively, the “Investors”).

1. **Repayment.** All payments of interest and principal shall be in lawful money of the United States of America and shall be made pro rata among all Investors. All payments shall be applied first to accrued interest, and thereafter to principal. The outstanding principal amount of the Note shall be due and payable upon the demand of Investor at any time on or after March 31, 2025 (the “Maturity Date”).

2. **Interest Rate.** The Company promises to pay simple interest on the outstanding principal amount hereof from the date hereof until payment in full, which interest shall be payable at the rate of 6 % per annum or the maximum rate permissible by law, whichever is less. Interest shall be due and payable on the Maturity Date and shall be calculated on the basis of a 365-day year for the actual number of days elapsed.

# 3. **Conversion; Repayment Premium Upon Sale of the Company.**

(a) In the event that the Company issues and sells shares of its Preferred Shares to investors (the “**Equity Investors**”) on or before the date of the repayment in full of this Note in a transaction or series of transactions pursuant to which the Company issues and sells shares of its Preferred Shares resulting in gross proceeds to the Company of at least $30,000,000 (excluding the conversion of the Notes and any other debt) (a “**Qualified Financing**”), then it converts into Preferred Shares at conversion price equal to the lesser of (i) 90% of the per share price paid by the Investors or (ii) the price equal to the quotient of $125,000,000 divided by the aggregate number of outstanding common shares of the Company as of immediately prior to the initial closing of the Qualified Financing (assuming full conversion or exercise of all convertible and exercisable securities then outstanding other than the Notes.)

(b) If the conversion of the Note would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Investor otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the

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then current fair market value of one share of the class and series of capital stock into which this Note has converted by such fraction.

(c) Notwithstanding any provision of this Note to the contrary, if the Company consummates a Sale of the Company (as defined below) prior to the conversion or repayment in full of this Note, then (i) the Company will give the Investor at least 15 days prior written notice of the anticipated closing date of such Sale of the Company and (ii) at the closing of such Sale of the Company, in full satisfaction of the Company’s obligations under this Note, the Company will pay to the Investor an aggregate amount equal to the greater of (a) 1.11 times the aggregate amount of the principal and all accrued and unpaid interest under this Note or (b) the amount of proceeds that would be payable to the Investor pursuant to the Sale of the Company if all Investors were to, immediately prior to the Sale of the Company, convert the aggregate amount of the principal and all accrued and unpaid interest under the Notes into the Company’s Common Shares at a price per share equal to the quotient obtained by dividing (x) $125,000,000 by (y) the aggregate number of outstanding shares of the Company as of immediately prior to the Sale of the Company (assuming full conversion or exercise of all convertible and exercisable securities then outstanding other than the Notes).

(d) For the purposes of this Note: “**Sale of the Company**” shall mean (i) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, continue to hold at least a majority of the voting power of the surviving entity in substantially the same proportions (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; (ii) any transaction or series of related transactions to which the Company is a party in which in excess of 50% of the Company’s voting power is transferred; *provided, however*, that a Sale of the Company shall not include any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is cancelled or converted or a combination thereof; or (iii) a sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company.

4. **Maturity.** At any time on or after the Maturity Date, unless this Note has been previously converted in accordance with the terms of this Note or otherwise been repaid pursuant to Section 1, at the election of the Requisite Holders (as defined below), the entire outstanding principal balance and all unpaid accrued interest shall automatically be converted into Preferred Shares at a price per security equal to the quotient of $125,000,000 divided by the aggregate number of outstanding shares of the Company as of immediately prior to such conversion (assuming full conversion or exercise of all convertible and exercisable securities then outstanding other than the Notes). Such Preferred Shares will have rights and preferences substantially similar to those of the Company’s then-outstanding Preferred Shares, and such conversion will be subject to the Investor’s execution of the Company’s then-effective operating agreement and any other agreements entered into by the Company and its holders of preferred shares in order to accommodate the terms set forth herein.

5. **Expenses.** In the event of any default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred by Investor in enforcing and collecting this Note.

6. **Prepayment.** The Company may not prepay this Note prior to the Maturity Date without the written consent of 51% in interest of the Investors (the “**Requisite Holders**”).

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7. **Default.** In the event of any '**Event of Default**' hereunder, the Convertible Notes shall accelerate and all principal and unpaid accrued interest shall become due and payable. Each of the following shall constitute an '**Event of Default**', provided, however that the 51% of the interest of Investors may waive any Event of Default as set forth:

1. a) The Company's failure to pay when due any amount payable by it hereunder and such failure continues uncured for 10 business days.
2. b) The Company's failure to comply with any of its reporting obligations under Regulation Crowdfunding and such failure continues uncured for 10 business days.
3. c) Voluntary commencement by the Company of any proceedings to have itself adjudicated as bankrupt.
4. d) The entry of an order or decree under any bankruptcy law that adjudicates the Company as bankrupt, where the order or decree remains unstayed and in effect for 90 days after such entry.
5. e) The entry of any final judgment against the Company for an amount in excess of \$100,000, if undischarged, unbonded, undismissed or not appealed within 30 days after such entry.
6. f) The issuance or entry of any attachment or the receipt of actual notice of any lien against any of the property of the Company, each for an amount in excess of \$100,000, if undischarged, unbonded, undismissed or not being diligently contested in good faith in appropriate proceedings within 30 days after such issuance, entry or receipt.
7. g) Any representation or warranty made by the Company under the Convertible Note Subscription Agreement shall prove to have been false or misleading in any material respect when made or deemed to have been made; provided that no Event of Default will occur under this clause if the underlying issue is capable of being remedied and is remedied within 30 days of the earlier of the Company becoming aware of the issue.

8. **Waiver.** The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

9. **Governing Law.** This Note shall be governed by and construed under the laws of the state of %%STATE_INCORPORATED%%, as applied to agreements among %%STATE_INCORPORATED%% residents, made and to be performed entirely within the state of %%STATE_INCORPORATED%%, without giving effect to conflicts of laws principles.

10. **Parity with Other Notes.** The Company's repayment obligation to the Investor under this Note shall be on parity with the Company's obligation to repay all Notes issued pursuant to the Agreement. In the event that the Company is obligated to repay the Notes and does not have sufficient funds to repay the Notes in full, payment shall be made to Investors of the Notes on a pro rata basis. The preceding sentence shall not, however, relieve the Company of its obligations to the Investor hereunder.

11. **Modification; Waiver.** Any term of this Note may be amended or waived with the written consent of the Company and the Requisite Holders.

12. **Assignment.** Subject to compliance with applicable federal and state securities laws (including the restrictions described in the legends to this Note), this Note and all rights hereunder are transferable in

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whole or in part by the Investor to any person or entity upon written notice to the Company. Thereupon, this Note shall be registered in the Company's books and records in the name of, the transferee. Interest and principal shall be paid solely to the registered holder of this Note. Such payment shall constitute full discharge of the Company's obligation to pay such interest and principal.

**13. Electronic Signature.** The Company has signed this Note electronically and agrees that its electronic signature is the legal equivalent of its manual signature on this Note.

**%%NAME_OF_ISSUER%%:**

By: ____%%ISSUER_SIGNATURE%%____

Name: %%NAME_OF_ISSUER%%

Title: %%ISSUER_TITLE%%

**Investor:**

By: %%INVESTOR_SIGNATURES%%

Name: %%VESTING_AS%%

Title: %%INVESTOR_TITLE%%

Email: %%VESTING_AS_EMAIL%%

[Remainder of page left blank]

Exhibit A Follows

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# Exhibit A

## SUBORDINATION AGREEMENT

This Subordination Agreement (the “Agreement”) is made as of [______, 2023], by and between each of the undersigned creditors (each a “Creditor” and collectively “Creditors”), and **SILICON VALLEY BANK**, a division of First-Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A. (as successor to Silicon Valley Bank) (“Bank”).

### Recitals

A. **BLOKABLE, LLC**, a Delaware limited liability company (“Borrower”) has requested and/or obtained certain loans or other credit accommodations from Bank which are or may be from time to time secured by assets and property of Borrower.

B. Each Creditor has extended loans or other credit accommodations to Borrower, and/or may extend loans or other credit accommodations to Borrower from time to time.

C. To induce Bank to extend credit to Borrower and, at any time or from time to time, at Bank’s option, to make such further loans, extensions of credit, or other accommodations to or for the account of Borrower, or to purchase or extend credit upon any instrument or writing in respect of which Borrower may be liable in any capacity, or to grant such renewals or extension of any such loan, extension of credit, purchase, or other accommodation as Bank may deem advisable, each Creditor is willing to subordinate: (i) all of Borrower’s indebtedness and obligations to each Creditor (including, without limitation, principal, premium (if any), interest, fees, charges, expenses, costs, professional fees and expenses, and reimbursement obligations), plus any dividends and/or distributions or other payments pursuant to call, put, or conversion features in connection with equity securities of Borrower issued to or held by such Creditor, whether presently existing or arising in the future (the “Subordinated Debt”) to all of Borrower’s indebtedness and obligations to Bank; and (ii) all of such Creditor’s security interests, if any, to all of Bank’s security interests in Borrower’s property.

**NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:**

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D. Each Creditor subordinates to Bank any security interest or lien that such Creditor may have in any property of Borrower. Notwithstanding the respective dates of attachment or perfection of the security interests of such Creditor and the security interests of Bank, all now existing and hereafter arising security interests of Bank in any property of Borrower and all proceeds thereof (the 'Collateral'), including, without limitation, the 'Collateral', as defined in a certain Loan and Security Agreement between Borrower, the other credit parties thereto and Bank dated as of January 10, 2020 (as the same may from time to time be further amended, modified, supplemented or restated, including without limitation, by that certain Deferral Agreement dated as of April 3, 2020, that certain Consent and First Amendment to Loan and Security Agreement dated as of September 14, 2020, that certain Consent and Second Amendment to Loan and Security Agreement dated as of February 1, 2021, and that certain Consent and Third Amendment to Loan and Security Agreement dated as of February 12, 2021, collectively, the 'Loan Agreement'), shall at all times be senior to the security interests of such Creditor. Each Creditor hereby (a) acknowledges and consents to (i) Borrower granting to Bank a security interest in the Collateral, (ii) Bank filing any and all financing statements and other documents as deemed necessary by Bank in order to perfect Bank's security interest in the Collateral, and (iii) the entering into of the Loan Agreement and all documents in connection therewith by Borrower, (b) acknowledges and agrees that the Senior Debt, the entering into of the Loan Agreement and all documents in connection therewith by Borrower, and the security interest granted by Borrower to Bank in the Collateral shall be permitted under the provisions of the Subordinated Debt documents (notwithstanding any provision of the Subordinated Debt documents to the contrary), (c) acknowledges, agrees and covenants that no Creditor shall contest, challenge or dispute the validity, attachment, perfection, priority or enforceability of Bank's security interest in the Collateral, or the validity, priority or enforceability of the Senior Debt, and (d) acknowledges and agrees that the provisions of this Agreement will apply fully and unconditionally even in the event that Bank's security interest in the Collateral (or any portion thereof) shall be unperfected.

E. All Subordinated Debt is subordinated in right of payment to all obligations of Borrower to Bank now existing or hereafter arising, including, without limitation, the Obligations (as defined in the Loan Agreement), together with all costs of collecting such obligations (including attorneys' fees), including, without limitation, all obligations under any agreement in connection with the provision by Bank to Borrower of products and/or credit services facilities, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services, all interest accruing after the commencement by or against Borrower of any bankruptcy, reorganization or similar proceeding (such obligations, collectively, the 'Senior Debt').

17

F. No Creditor will demand or receive from Borrower (and Borrower will not pay to any Creditor) all or any part of the Subordinated Debt, by way of payment, prepayment, setoff, lawsuit or otherwise, nor will any Creditor exercise any remedy with respect to any property of Borrower, nor will any Creditor accelerate the Subordinated Debt, or commence, or cause to commence, prosecute or participate in any administrative, legal or equitable action against Borrower, until such time as (a) the Senior Debt (other than inchoate indemnity obligations) has been fully paid in cash, (b) Bank has no commitment or obligation to lend any further funds to Borrower, and (c) all financing agreements between Bank and Borrower are terminated. Nothing in the foregoing paragraph shall prohibit a Creditor from (i) converting all or any part of the Subordinated Debt into equity securities of Borrower or (ii) delivering equity securities of Borrower to Creditor upon exercise of a warrant for such equity securities of Borrower, provided that, if such securities have any call, put or other conversion features that would obligate Borrower to declare or pay dividends, make distributions, or otherwise pay any money or deliver any other securities or consideration to the holder, each Creditor hereby agrees that Borrower may not declare, pay or make such dividends, distributions or other payments to such Creditor, and such Creditor shall not accept any such dividends, distributions or other payments except as may be permitted in the Loan Agreement/documents evidencing the Senior Debt.

G. Each Creditor shall promptly deliver to Bank in the form received (except for endorsement or assignment by such Creditor where required by Bank) for application to the Senior Debt any payment, distribution, security or proceeds received by such Creditor with respect to the Subordinated Debt other than in accordance with this Agreement.

H. In the event of Borrower's insolvency, reorganization or any case or proceeding under any bankruptcy or insolvency law or laws relating to the relief of debtors, including, without limitation, any voluntary or involuntary bankruptcy, insolvency, receivership or other similar statutory or common law proceeding or arrangement involving Borrower, the readjustment of its liabilities, any assignment for the benefit of its creditors or any marshalling of its assets or liabilities (each, an 'Insolvency Proceeding'), (a) this Agreement shall remain in full force and effect in accordance with Section 510(a) of the United States Bankruptcy Code, (b) the Collateral shall include, without limitation, all Collateral arising during or after any such Insolvency Proceeding, and (c) Bank's claims against Borrower and the estate of Borrower shall be paid in full before any payment is made to any Creditor.

I. Each Creditor shall give Bank prompt written notice of the occurrence of any default or event of default under any document, instrument or agreement evidencing or relating to the Subordinated Debt, and shall, simultaneously with giving any notice of default to Borrower, provide Bank with a copy of any notice of default given to Borrower. Each Creditor acknowledges and agrees that any default or event of default under the Subordinated Debt documents shall be deemed to be a default and an event of default under the Senior Debt documents.

18

J. Until the Senior Debt (other than inchoate indemnity obligations) has been fully paid in cash and Bank's agreements to lend any funds to Borrower have been terminated, Each Creditor irrevocably appoints Bank as such Creditor's attorney-in-fact, and grants to Bank a power of attorney with full power of substitution, in the name of such Creditor or in the name of Bank, for the use and benefit of Bank, without notice to such Creditor, to perform at Bank's option the following acts in any Insolvency Proceeding involving Borrower:

K. To file the appropriate claim or claims in respect of the Subordinated Debt on behalf of such Creditor if such Creditor does not do so prior to 30 days before the expiration of the time to file claims in such Insolvency Proceeding and if Bank elects, in its sole discretion, to file such claim or claims; and

L. To accept or reject any plan of reorganization or arrangement on behalf of such Creditor and to otherwise vote such Creditor's claims in respect of any Subordinated Debt in any manner that Bank deems appropriate for the enforcement of its rights hereunder.

In addition to and without limiting the foregoing: (x) until the Senior Debt has been fully paid in cash and Bank's agreements to lend any funds to Borrower have been terminated, no Creditor shall commence or join in any involuntary bankruptcy petition or similar judicial proceeding against Borrower, and (y) if an Insolvency Proceeding occurs: (i) no Creditor shall assert, without the prior written consent of Bank, any claim, motion, objection or argument in respect of the Collateral in connection with any Insolvency Proceeding which could otherwise be asserted or raised in connection with such Insolvency Proceeding, including, without limitation, any claim, motion, objection or argument seeking adequate protection or relief from the automatic stay in respect of the Collateral, (ii) Bank may consent to the use of cash collateral on such terms and conditions and in such amounts as it shall in good faith determine without seeking or obtaining the consent of any Creditor as (if applicable) holder of an interest in the Collateral, (iii) if use of cash collateral by Borrower is consented to by Bank, no Creditor shall oppose such use of cash collateral on the basis that such Creditor's interest in the Collateral (if any) is impaired by such use or inadequately protected by such use, or on any other ground, and (iv) no Creditor shall object to, or oppose, any sale or other disposition of any assets comprising all or part of the Collateral, free and clear of security interests, liens and claims of any party, including such Creditor, under Section 363 of the United States Bankruptcy Code or otherwise, on the basis that the interest of such Creditor in the Collateral (if any) is impaired by such sale or inadequately protected as a result of such sale, or on any other ground (and, if requested by Bank, such Creditor shall affirmatively and promptly consent to such sale or disposition of such assets), if Bank has consented to, or supports, such sale or disposition of such assets.

19

M. Each Creditor represents and warrants that such Creditor has provided Bank with true and correct copies of all of the documents evidencing or relating to the Subordinated Debt. Each Creditor shall immediately affix a legend to the instruments evidencing the Subordinated Debt stating that the instruments are subject to the terms of this Agreement. By the execution of this Agreement, each Creditor hereby authorizes Bank to amend any financing statements filed by such Creditor against Borrower as follows: 'In accordance with a certain Subordination Agreement by and among the Secured Party, the Debtor and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A. (as successor to Silicon Valley Bank)) ('Silicon Valley Bank'), the Secured Party has subordinated any security interest or lien that Secured Party may have in any property of the Debtor to the security interest of Silicon Valley Bank in all assets of the Debtor, notwithstanding the respective dates of attachment or perfection of the security interest of the Secured Party and Silicon Valley Bank.'

N. No amendment of the documents evidencing or relating to the Subordinated Debt shall directly or indirectly modify the provisions of this Agreement in any manner which might terminate or impair the subordination of the Subordinated Debt or the subordination of the security interests or liens that Creditors may have in any property of Borrower. By way of example, such instruments shall not be amended to (a) increase the rate of interest with respect to the Subordinated Debt, or (b) accelerate the payment of the principal or interest or any other portion of the Subordinated Debt. Bank shall have the sole and exclusive right to restrict or permit, or approve or disapprove, the sale, transfer or other disposition of property of Borrower except in accordance with the terms of the Senior Debt. Upon written notice from Bank to Creditors of Bank's agreement to release its lien on all or any portion of the Collateral in connection with the sale, transfer or other disposition thereof by Bank (or by Borrower with consent of Bank), each Creditor shall be deemed to have also, automatically and simultaneously, released its lien on the Collateral, and each Creditor shall upon written request by Bank, immediately take such action as shall be necessary or appropriate to evidence and confirm such release. All proceeds resulting from any such sale, transfer or other disposition shall be applied first to the Senior Debt until payment in full thereof, with the balance, if any, to the Subordinated Debt, or to any other entitled party. If any Creditor fails to release its lien as required hereunder, such Creditor hereby appoints Bank as attorney in fact for such Creditor with full power of substitution to release such Creditor's liens as provided hereunder. Such power of attorney being coupled with an interest shall be irrevocable.

1. All necessary action on the part of each Creditor, its officers, directors, partners, members and shareholders, as applicable, necessary for the authorization of this Agreement and the performance of all obligations of such Creditor hereunder has been taken. This Agreement constitutes the legal, valid and binding obligation of each Creditor, enforceable against each Creditor in accordance with its terms. The execution, delivery and performance of and compliance with this Agreement by each Creditor will not (a) result in any material violation or default of any term of any of such Creditor's charter, formation or other organizational documents (such as Articles or Certificate of Incorporation, bylaws, partnership agreement, operating agreement, etc.) or (b) violate any material applicable law, rule or regulation.

20

O. If, at any time after payment in full of the Senior Debt (other than inchoate indemnity obligations) any payments of the Senior Debt must be disgorged by Bank for any reason (including, without limitation, any Insolvency Proceeding), this Agreement and the relative rights and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made and each Creditor shall immediately pay over to Bank all payments received with respect to the Subordinated Debt to the extent that such payments would have been prohibited hereunder. At any time and from time to time, without notice to any Creditor, Bank may take such actions with respect to the Senior Debt as Bank, in its sole discretion, may deem appropriate, including, without limitation, terminating advances to Borrower, increasing the principal amount, extending the time of payment, increasing applicable interest rates, renewing, compromising or otherwise amending the terms of any documents affecting the Senior Debt and any collateral securing the Senior Debt, and enforcing or failing to enforce any rights against Borrower or any other person. No such action or inaction shall impair or otherwise affect Bank's rights hereunder. Each Creditor waives any benefits of California Civil Code Sections 2809, 2810, 2819, 2845, 2847, 2848, 2849, 2850, 2899 and 3433.

P. This Agreement shall bind any successors or assignees of Creditors and shall benefit any successors or assigns of Bank, provided, however, each Creditor agrees that, prior and as conditions precedent to each Creditor assigning all or any portion of the Subordinated Debt: (a) each Creditor shall give Bank prior written notice of such assignment, and (b) such successor or assignee, as applicable, shall execute a written agreement whereby such successor or assignee expressly agrees to assume and be bound by all terms and conditions of this Agreement with respect to such Creditor. This Agreement shall remain effective until terminated in writing by Bank. This Agreement is solely for the benefit of Creditors and Bank and not for the benefit of Borrower or any other party. Each Creditor further agrees that if Borrower is in the process of refinancing any portion of the Senior Debt with a new lender, and if Bank makes a request of Creditors, Creditors shall agree to enter into a new subordination agreement with the new lender on substantially the terms and conditions of this Agreement.

Q. Each Creditor hereby agrees to execute such documents and/or take such further action as Bank may at any time or times reasonably request in order to carry out the provisions and intent of this Agreement, including, without limitation, ratifications and confirmations of this Agreement from time to time hereafter, as and when requested by Bank.

R. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. The words 'executed,' 'execution,' 'signed,' 'signature' and words of like import in this Agreement shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act

21

S. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without giving effect to conflicts of laws principles. Creditors and Bank submit to the exclusive jurisdiction of the state and federal courts located in Santa Clara County, California in any action, suit, or proceeding of any kind, against it which arises out of or by reason of this Agreement. CREDITORS AND BANK WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN.

WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES' AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph.

22

T. This Agreement represents the entire agreement with respect to the subject matter hereof, and supersedes all prior negotiations, agreements and commitments. No Creditor is relying on any representations by Bank or Borrower in entering into this Agreement, and each Creditor has kept and will continue to keep itself fully apprised of the financial and other condition of Borrower. This Agreement may be amended only by written instrument signed by Creditors and Bank.

U. In the event of any legal action to enforce the rights of a party under this Agreement, the party prevailing in such action shall be entitled, in addition to such other relief as may be granted, all reasonable costs and expenses, including reasonable attorneys' fees, incurred in such action.

*[Balance of Page Intentionally Left Blank]*

23

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written.

“Bank”

**SILICON VALLEY BANK**

By:_________________________

Name:_______________________

Title:______________________

**[Signature Page to Subordination Agreement]**

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written.

“Creditor”

|____________________|

By:_________________________

Name:______________________

Title:______________________

**[Signature Page to Subordination Agreement]**

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written.

“Creditor”

|____________________|

By:_________________________

Name:______________________

Title:______________________

**[Signature Page to Subordination Agreement]**

The undersigned approves of the terms of this Agreement.

“Borrower”

**BLOKABLE, LLC**

By: _________________________

Name: _________________________

Title: _________________________

**[Signature Page to Subordination Agreement]**

# JOINDER TO SUBORDINATION AGREEMENT

The undersigned hereby agrees to become a party in the capacity of a '**Creditor**' to that certain Subordination Agreement dated as of [_______, 2023], by and among **SILICON VALLEY BANK**, a division of First-Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A. (as successor to Silicon Valley Bank)) ('**Bank**'), and the parties identified on the signature pages thereto as Creditors with respect to debt owing to Bank and Creditors by **BLOKABLE, LLC**, a Delaware limited liability company (as the same may be amended, restated, supplemented or otherwise modified from time to time, the '**Subordination Agreement**'), and to be bound by the terms and conditions thereof in such capacity effective as of the date thereof. The undersigned hereby makes all representations and warranties contained in the Subordination Agreement to Bank as of the date hereof. The undersigned hereby authorizes this Joinder to be attached as a counterpart signature page to the Subordination Agreement and hereby designates the address below as the undersigned's notice for address under the Subordination Agreement.

'Creditor'

\_\_\_\_\_

By:_________________________________________________________

Address:_____________________________________________________

Attention:_____________________________________________________

Phone:_____________________________________________________

Fax:_________________________________________________________

Email:_______________________________________________________

Date of Signature:_________________________

**[Signature Page to Subordination Agreement]**

**Attachment 4:** `BlokableVideoTranscripts.pdf`

1. **Hero Video - to be used above the ‘amount raised’ status (all graphics - no VO)**

- Intro Segment - Single Slide Introducing the Company
  - Copy:
    - § *Blokable - A Revolution in Housing Development*
    - § *The world’s first and only vertically integrated development platform for mass production of multifamily housing*
    - § *Creating luxury, workforce and low-income housing by lowering cost, not quality*
    - § *Dramatic environmental and social impact*
- Segment 1 - Single Blok Assembly Line
  - Lead-in: *State of the Art Engineering and Manufacturing*
  - Caption: *Sophisticated Blok engineering in a standardized system designed for assembly line production*
- Segment 2 - Full Factory Animation
  - Lead-in: *Production at Scale*
  - Caption: *Advanced manufacturing will enable Blokable to produce thousands of Bloks every year out of a single factory*
  - Phased Production Captions
    - § *Phase 1*
      - *Manufacturing Ramp Up*
    - § *Phase 2*
      - *Full-Scale Advanced Manufacturing*
      - *400+ Bloks per Month*
      - *Over 2,000 Apartments per Year*
- Segment 3 - Blok Combination / Floor Plan Animation
  - Lead-in: *Unparalleled Apartment Floor Plan Flexibility*
  - Caption 1 (for still of joint): *Bloks are connected by a patent-pending resilient structural joint that is easily repaired after seismic events*
  - Caption 2 (after the animation resumes): *Bloks combine to create an almost endless number of highly appealing floor plans, with the features that renters desire*
  - Apartment Floor Plan Types
    - § *Studio*
    - § *One Bedroom*
    - § *Two Bedroom*
    - § *Three Bedroom*
- Segment 4 - Project Blok Stacking Sequence
  - No lead-in; Segment 3 segues directly into Segment 4 (just cross-fade)
  - Caption: *Bloks leave the factory over 90% complete and are assembled onsite to create high-quality, multi-story apartment buildings*
- Segment 5 - Project Rendering Slideshow
  - No lead-in; Segment 4 segues directly into Segment 5 (just cross-fade)
  - Caption: *Blokable’s Building System is able to create a wide range of multifamily product types that can meet practically any market*
  - Product Type Labels (for slideshow)
    - § *Large-Scale Midrise*
    - § *Small - Midsize Infill*
    - § *Suburban Walkup*

# 2. The Pitch -

Speaker 1 (00:01):

Creating homes used to be simple. Resources were abundant, land was plentiful, and labor was mostly free. As neighbors worked together to build each other's houses, but as communities grew from small towns into cities, density increased larger amounts of housing were needed. At the same time that land and resources became increasingly scarce, governments began to regulate housing developments to ensure safety and fairness, and to develop housing. Within these rules and regulations, the construction sector formed trade specialists were established, and their work became increasingly complicated. As buildings diversified development experts emerged to manage the complexities of buying land and building entitlements, and as trade and development specialties grew, the financial markets evolved, providing financing for land acquisition, construction, and large scale ownership. All of this complexity has increased the cost of development, pushing up the price of housing for purchase and rent. Simultaneously, population growth and macroeconomic forces have changed job types and incomes leading to people spending an increasing percentage of their money on housing.

(01:10):

As a result, housing development has stopped being about the creation of communities and homes and has instead become a barrier to wealth creation. Lack of affordable housing means middle class and lower income families have restricted access to high quality healthcare and education, and they get trapped in this situation because they have to spend all their money on the cost of living and are unable to build wealth. So how would a new Paradigm for Housing Development address this downward spiral? Blokable removes this complexity through an innovative physical product and our business model. This pre-engineered and pre-designed process greatly reduces typical development costs and time. Our blocks are manufactured in a controlled environment, leaving the factory 95% complete, requiring a bare minimum of on-site installation work further reducing total construction time and costs. Our finished blocks are then connected and configured to create studios one, two, and three bedroom apartments, as well as open common areas, meaning Blokable can create higher quality and lower cost middle density housing compared to traditional methods.

(02:18):

Thanks to the unique durability of the Blokable building system and the fact that each block comes with block sense installed, our buildings are resilient and lower cost to operate and maintain. As we lower the cost to build, we reduce the need for outside equity investments or subsidies to help finance our developments. This difference between our total cost to build and the cost of alternative development options represents the equity we generate in our projects. The question then becomes who should benefit from the equity created through this more efficient process? If we sell the Blokable building system to developers or builders, this cost benefit is absorbed by the industry rather than to our business and the communities we want to serve. Instead, Blokable is vertically integrated and circumvents the need for the traditional development process. As the developer, we have created a two market approach, partnering with market rate landowners through Blokable Inc.

(03:13):

And not-for-profit partners Through Blokable Equity. Blokable and Blokable equity control the build and end product using the Blokable building system and create equity for their respective market. As a market rate developer, Blokable reduces and then eliminates the need for outside investor equity. As a not-for-profit developer, blokable equity reduces and then eliminates the need for government subsidy. Reducing development and building costs means we reduce the

need for outside equity investment in subsidy and create new equity which flows to our stakeholders. Serving both market rate and affordable housing markets allows us to address the housing problem using economies of scale to continuously drive down costs. As Blokable scales, we will further lower costs by expanding our regional production network. By developing affordable and market rate housing, we create regional housing supply and jobs add to our library of approved architectural designs and leverage our supply chain and logistics network. We call this the Network Effect for Housing Creation. Blokable tackles the affordable housing crisis through its business model and its innovative blokable building system, creating wealth for our business through private market rents while developing not-for-profit housing, which transfers equity into the hands of the communities. We serve two approaches for two different markets bringing solutions to the housing crisis. To find out more, go to blokable.com.

### 3. The Problem - **Blokable - A Revolution in Housing Development**

- o VO - There is a critical shortage of housing in the US
  - § Graphics:
    - · 6.8 million shortage graphic
- o VO - The traditional housing development process is inefficient and cannot begin to meet the need
  - § News headlines graphic
- o VO - Blokable is a revolution in housing development, and uses manufacturing to reduce cost, not quality (graphic: reveal bullets with VO one by one over a multi-family rendering as background)
  - § Building a vertically integrated development platform for mass production of multifamily housing
  - § Creating luxury, workforce, and low-income housing by reducing cost, not quality
  - § Developing for long-term ownership and wealth creation
  - § Significant environmental and social impact
- o VO- Blokable vertically integrates manufacturing, development, and operations together into a tax-efficient corporate structure that drives down costs and increases real estate returns
  - § Graphic - vertically integrated flywheel (without financial information)
- o VO - Since 2016, Blokable has methodically invested in engineering, prototyping, software, and manufacturing to prepare for mass production
  - § Videos:
    - · 1. Building system and resilient joint animations - title “engineering”
    - · 2. valley cities - title slate “prototyping”
    - · 3. Software screen capture - title slate “software”
    - · 4. Factory fly through & steel machine --- title slate “manufacturing”
- o VO - Blokable doesn’t sell boxes to developers, Blokable builds and owns multi-family real estate
  - § Graphic: 3 x multi-family renders
- o VO - Blokable’s innovative building system and manufacturing reduces development costs

§ Graphic: 'cost reduction in LA through ramp up phases'
o VO - And the company's vertically integrated business model is designed to capture the wealth creation and appreciation
§ Graphics: 2025, 2027, and 2029 completed apts, asset value, and cashflow graphic
o ...and create significant environmental and social impact
§ National Renewable Energy Lab - projected impact
§ Homeownership slide
- End Title - Blokable - A Revolution in Housing Development

#### 4. The Market # 1 - Blokable Building System - Ready for Manufacturing

No Voiceover - all graphics and captions

- 1 - Integrated Architectural and Supply Chain Systems
- 2 - Manufacturing Ready Building Assembly
  - o Fire Barrier Design
  - o Resilient Structure
  - o Centralized Mechanical Systems
  - o Plumbing
  - o Electrical
  - o Energy Efficiency
- 3 - Connections / Resilient Structure
  - o Conventional
  - o Resilient
  - o Bathroom Module
  - o Centralized Mechanical Systems
    - § A centralized ERV system that connects directly to the building system. This means savings through fewer parts, greater system resiliency, improved energy efficiency, and rapid installation
  - o Electrical Systems - Centralized electrical system
- Phased Manufacturing Ramp up Approach
  - o Exterior frame assembly
  - o Floor Systems
  - o Bathroom pod
  - o Wall Sub-Assembly, Water Supply and Electrical
  - o Mechanical Sub-Assembly Roof Framing
  - o Exterior wall, Window and Roof Material
  - o Drywall Finish and Paint
  - o White Glove Finishes and Millwork
  - o Water Barrier and Seal Up
  - o Final Wrap and Prepare for Shipping
  - o Final Stage for Delivery
  - o Phase 1 - 30-40 Bloks per month
    - § Floor & Wall Assembly
    - § Metals & Mechanical Systems Prep
    - § Bath Sub-Assembly
    - § Drywall & Paint
    - § Millwork & Finish Preparation

§ Shipping & Staging  
o Phase 2 - 400 Bloks per month

# **5. The Market # 2 - Introducing Blokable at Phoenix Rising - The First Modular DevelopmentTM**

David Frockt:

The units are terrific. I think they're going to provide the people who live here with the dignity of having four walls and a life to hopefully help them with the services that they're going to be provided right here on site. So, I'm very excited about that.

I'm David Frockt. I serve as a state senator from the Seattle area, and I serve as the vice chair of our Senate Ways and Means Committee, responsible for our capital construction budget, and was proud to lead the appropriation that put some money into this particular project.

Shekh Ali:

I was really surprised with what Blokable came in with. They had the design in mind, they had the idea in mind, and they took this project and we did not have to do a whole lot. It was fairly simple, very straightforward. Blokable managed the whole project on its own and completed this project with Valley City's involvement was to a minimum.

Timothy Miller:

So the buildings we're standing in front of today were built in our factory in Vancouver, Washington, brought here on trucks and placed into this exact location you're seeing.

What's great about modular and what we do with modular at Blokable is that these are actually permanent buildings, very long-lasting life, all steel construction. We use a pretty typical mini-split system, but because these buildings are incredibly tight, meaning they don't leak very much air, we don't have to overutilize this system. But it also requires that we have an energy recovery ventilation system. You don't hear it in the background, it's in our mechanical space. But what it does is it brings in fresh air from the outside filters, it then pushes it inside the building, and at the same time exhausts the older air outside, keeping this a continually fresh environment, which helps us mitigate any bacteria, molds, and other unhealthy air particles that might be in the air in a typical building.

So because we make really tight buildings at Blokable, a key feature, and we think an important part of what comfort is all about, is the ability to make the space quiet. And it's really quiet.

Shekh Ali:

How quiet it is, how calming and how safe it feels in the room, that's what is amazing. And like I said, I would live in this house. The way it's designed, the way it's put together.

Stephanie Welty:

So what Blokable can achieve in housing and reducing the cost of housing in a real way instead of a subsidized way, is really about the kinds of efficiencies that came out of the automobile industry 100 years ago. Where, costs were reduced, both for materials, for labor, the amount of time that it takes to construct a vehicle. All of those kinds of efficiencies we believe we can bring to housing. And so for communities, this is about very high quality housing and housing that not only is cost-effective to purchase, but cost-effective to own and to operate.

Nelson Del Rio:

And what we've done has taken everything in house and said we will control the entire process, we will self-perform on everything. That means we control the risk, we control the timing, we minimize all the outside variables and maximize the outcome on the project.

With vertically integrated modular, we can speed up the pre-design and pre-development process, we can lower the cost of that, minimize our risk, and then control the entire build process from day one. And every time we make an improvement, we take that lesson and move it to the next building, which means the next building costs less to build, becomes more efficient. And as you build that chain of efficiencies over time, your equity increases.

Aaron Holm:

There are a few things about the project that are really worth noting. Things that we've achieved largely because of the investment that we've made in R&D and engineering. This is an all electric project, which is a standard that we're moving to in the West Coast. A lot of cities have already banned gas in new residential and commercial construction. We're already there. We've built an all electric project, it's zero energy. I mean, it's incredible in terms of its energy performance, which is a big deal when you think about the amount of housing that needs to be built. But we've also done it using a vertically integrated model that works both in not-for-profit and market rate development. So an incentive structure where, as we drive down the cost of housing development, we create equity on the market rate side that we can return to our investors and then we also create a lower cost structure that removes and reduces the need for subsidy on the affordable housing side.

So, this project is really bringing together the vertical integration of the development model and bringing modular into the correct business model, the expression of very high performance building product that we've created that we think represents the future of quality for housing. And then also a public-private model that allows us to do that both on market rate and affordable housing.

David Frockt:

I think the one thing we've got to work on and we need to continue to work on is to try to move the wheels of government and the private sector and the partnership and make it work more rapidly because the problem is so massive we can't wait, we've got to move quicker. But I feel very good about what I'm seeing so far today.

YB Choi:

I'm YB Choi. I help lead early stage venture capital investing at Vulcan, which is the organization that was started by Paul Allen back in the late '80s.

Yeah, so we see a really bright future and potential for Blokable, particularly with the vertical integration. I mean, that's kind of things we've seen here is how much was needed in terms of innovation within the process as a whole, not just the hardware. And so being able to overcome all the obstacles that are inherent in the system and in the industry makes it for a really large opportunity that Blokable can go after.

## 6. Why Invest #1 - Blokable - Rethinking Housing Development

Speaker 1 (00:24):

We started Blokable four years ago with a goal to standardize, productize the way we build housing vertically, integrate the housing development process and radically change the cost structure and

scalability of housing development. Vertically integrating the process, we reduce a ton of waste from the system and we create a model where as we scale the costs come down. I'm Aaron Holman. I'm the co CEO of Blokable.

Speaker 2 (00:52):

My name is Stephanie Welty and I am Vice President of Finance and Operations for Blokable Housing is extremely expensive and has become relatively more so over the last especially 15 years. One of the significant issues, and this began actually back in the seventies, was zoning and large tracks of land being zoned for single family housing. So that has put a severe constraint on what can be built, where it has to be subsidized. So what we call affordable isn't really affordable. It's subsidized with taxpayer dollars, doesn't even scratch the surface. So the more I learned about how affordable housing works in reality, in a way, the more discouraged I became, because there's not enough money, there's not enough resources to build the supply that needs to be built. We have seen that for every dollar of subsidy that goes into the housing market, housing prices actually increase because that supply is constrained. So throwing more money at it is not the solution. What Blokable can achieve in housing and reducing the cost of housing in a real way instead of a subsidized way, is really about the kinds of efficiencies that came out of the automobile industry a hundred years ago, where costs were reduced, both for materials, for labor, the amount of time that it takes to construct a vehicle. All of those kinds of efficiencies we believe we can bring to housing.

Speaker 1 (02:27):

So we've been at it for four years. We spent the vast majority of that time on engineering, standardizing the building system, and really building a really high quality building envelope that's environmentally efficient, but that can also be built at scale.

Speaker 3 (02:41):

My name is Luke Shefsky and my role is Senior Director of Innovation and Fabrication. I create the perfect building, and as that building is created, then we hand it over to a production and that that's how we multiply these buildings.

(03:00):

We took it apart and figured it out to a point where we pushed the industry, which was not pushed before, and put these things on a path that will become scalable, repeatable, at the same predictable outcome. So this is an opportunity to have high quality buildings that you control. We take codes that are toughest codes in us, and then we build to that code, and then in Blokable we up it even more. So we use heavy gauge steel that once it's put together, it'll last for a very long time. We target our buildings by having a beautiful envelope that is almost like a well-tailored suit, right? And it fits and it's air tie and there's systems inside that work 24 7 to make sure that the building has enough air and the moisture is removed. We can multiply the same building and have multiple factories and have the same result every time. So it becomes easier down the road as we mass produce this, that building. If the code changes, it's still good

Speaker 1 (04:13):

By really completely rethinking the building process, rethinking quality, rethinking materials, rethinking supply chain. We can build them in a controlled environment and we can really take a manufacturing approach. The way our system works is as we scale, we drive out the cost of building and we reduce the cost to develop new housing. We create new supply in the marketplace.

Speaker 2 (04:32):

And so for communities, this is about very high quality housing and housing that not only is cost effective to purchase, but cost effective to own and to operate. And so really it's economy of scale, mass production that is going to bring the cost savings that the industry really needs.

## **7. Why Invest # 2 - Phoenix Rising - Resident's Perspective - How Blokkable Brought Housing Security**

Speaker 1:

We're here at Phoenix Rising at Valley Cities where we have our Blokkable at Phoenix Rising Project. It's 12 units of multi-family housing, seven one bedroom apartments, and five studios that we developed in partnership with the State of Washington and with Valley Cities, and that we completed in December of 2020. And we're here today to speak with Corin, who's moved in here in March of 2021. And we want to talk to Corin to get a sense of how she likes the apartment, to have the stable, safe, quiet housing to live in and be able to visit with her kids. So we're very excited and very grateful that Corin is speaking with us today.

Speaker 2:

My name is Corrine. I live in D seven in the one bedroom over here and the Blokkable with the yellow door.

They couldn't cover my time off anymore. I had four surgeries in the past two years. I lost my apartment, I lost my job and it's, it's not something that you just want to do, it just happens. It's a part of life. When you don't have anything and you get something, it's just an amazing feeling. You feel like you got your life back again. You have a shelter, you have a protection, you have warmth. You have a place to make food, a place to shower, and you know, have a bedroom. You have privacy. You know, just have a home to call your own. That's an amazing blessing in itself. I love the air conditioning, the central air and heat. I love the hardwood floors because you don't have to worry about vacuuming them. It's easy to mop and sweep the Blokkable. The modules are soundproof. You don't hear anything, nothing. It's so quiet. My son turns up the TV so loud and my neighbors don't hear it. I think we need more Blokkable around the Seattle area. I really do. When I moved in here, I made a promise to myself. I want to bring humanity, like human decency back into the world and just be nice to people like you haven't walked in their shoes, you don't know what they're going through.

Speaker 1:

We at Blokkable believe housing is a human right. The reason why we're building this housing is because it has a real impact on people's lives, and we'd love to encourage other communities to work with us so that we can bring more and more people into safe, secure, and dignified housing.

**Attachment 5:** `BlokableCampaignPageRec.pdf`

Blokable is not free or open to the public at this moment.

Add to
Alex Mink

# INVEST IN BLOKABLE TODAY!
Revolutionizing Housing Development

After 6 years and over $30 million of investment in R&D and prototyping, Blokable is ready to take on the housing crisis. Having validated its engineering, assembly process, and costs with our Phoenix Rising Development in Auburn, We, the company is now ready to ramp up 'Modular Development' and related manufacturing efforts to create recently multifamily housing, that is California and then across the country and around the world.

Show here

The help of a housing crisis is available through the program.
Health is on the new model of the building. Supply and maintenance
is also made to do so, providing the potential and future future
investment.

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

STORING ABOUT THING DOLLISION INVESTING FAILS

# REASONS TO INVEST

- There is a massive housing shortfall in the U.S., and demand continues to outpace supply. In California alone, there are an estimated 3.5 million new housing units needed by 2025.* With such enormous demand, the opportunity for Blokable to develop multifamily housing at scale is almost limitless.
- With its state-of-the-art building system that is engineered for manufacturing, Blokable's multifamily housing is superior in quality but much lower in cost and time to build than traditional development.
- Blokable is entering into a lease for a large-scale manufacturing facility in Northern California that it expects to make operational in late 2023.

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

*Market information provided by McKinsey Council

# THE PITCH

# Revolutionizing housing development

Blokable is a developer of multifamily real estate - widely considered to be the asset class with the strongest and most attractive fundamentals (topics) - using a proprietary modular building system with cutting-edge technology and engineering that can build cheaper, faster, and better. And with Blokable's highly innovative, vertically integrated business model, the company and its investors have the potential to capture the considerable value created by real estate development.

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

*The above graphic is a computer-generated rendering of a representative real estate project that can be built with Blokable's building system.

Modular Development* by Blokable is designed to maximize the efficiencies and value of technology, process, and business model innovation.

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

*The above class contains graphics that use computer-generated rendering of a representative real estate project that can be built with Blokable's building system.

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

*The above graphic is a computer-generated rendering of a representative real estate project that can be built with Blokable's building system.
Upon conversion to Blokable equity, your investment enables you to participate directly in the company's ownership of the numerous real estate projects it develops, giving you the opportunity to be part of the tremendous value creation that is possible from successful real estate development. To date, Blokable has raised over $30M from a world-class group of investors, including Cercano Management (Microsoft co-founder Paul Allen's venture capital group), Kaper Capital, Jason Calacaris, Marc Bernoff (co-founder and CEO of Salesforce), Building Ventures, Revolution Ventures, Third Sphere, Climate Capital, and others.

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

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

The data graphic is a computer-generated modeling of a representative real estate project that can be built with Blokable's building system.

# THE PROBLEM & OUR SOLUTION

## Fixing the housing crisis

We believe there's a simple reason that real estate development has a bad reputation: development is designed to capture and keep wealth for the very few. It's an inefficient, disorganized, and messy process that suffers from skyrocketing construction costs and a shrinking labor force.

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

Traditional Real Estate Development is Inefficient, Disorganized, and Costly.

The costs and inefficiencies of traditional real estate development are the fundamental reason for today's housing crisis (Source). Supply is simply incapable of meeting demand, and the shortage and lack of affordability of housing have only been getting worse over time. Innovation and disruption in construction will not bring meaningful change; we must disrupt development itself (Source).

# BLOKABLE

A REVOLUTION IN HOUSING DEVELOPMENT

Modular DevelopmentTM by Blokable is an end-to-end solution that offers a better way forward. It's one model that addresses the root problems for both market-rate and affordable housing. It's a wealth creation movement that gives you access to the tremendous upside potential that real estate development offers on an unprecedented scale.

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

# Modular DevelopmentTM

An end-to-end solution designed to compress development costs and time, reduce risks, eliminate the unknowns, and organize an otherwise inefficient process.

It uses vertical integration and manufacturing and technological advances to compress development costs and time, reduce risks, eliminate the unknowns, and create order from chaos.

It creates higher-quality, environmentally sustainable buildings while achieving efficiencies and scale that the industry has never known.

It revolutionizes development to fix the housing crisis and create wealth for investors, residents, and communities who support and embrace a better way of life.

# THE MARKET & OUR TRACTION

Multifamily real estate is a massive industry that is widely considered to have the strongest market fundamentals and long-term outlook. As a result, enormous amounts of capital continue to pour into this asset class. In 2022, multifamily investment volume was reported to be approximately $279 Billion, with multifamily loan originators in 2022 reported to be $499 Billion - these amounts represent by far the largest shares of investment and lending, respectively, of any commercial real estate asset class (Source).

Since 2016, Blokable has invested over $30M in building system and manufacturing engineering, regulatory approvals, software systems integration, and prototyping to create a building system that can be manufactured for development of 5-story-over-podium multifamily housing in the State of California, which has the strictest building code requirements in the country. This building system has unparalleled sophistication and flexibility, with the ability to create virtually limitless floor plans and unit types as well as the apartment features that renters expect - including open floor plans, 9-foot ceilings, floor-to-ceiling windows, and expensive balconies. The system also supports highly varied building architecture and aesthetics that can fit into any neighborhood. Whether it is luxury, workforce, or affordable housing, Blokable is designed to be able to meet any market.

# Ready for manufacturing

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

*The above chart contains graphics that can complete generated recordings of a representative and events project that can be built with Blokable's building system.

The Blokable Building System is "land agnostic," meaning it can be built in high seismic or high wind zones, in any weather conditions, and on any soil types, without the need for internal shear walls, bracing, or tension rods as structural support. This breakthrough approach allows Blake, and even an entire building, to vary in size and shape without any change in required engineering or manufacturing, thereby enabling an efficient assembly process that uses a minimum number of parts and creates Blake that leave the factory approximately 95% complete.

| Cutting-Edge Engineering |  |
| --- | --- |
| $30M Invented in building system and manufacturing engineering, prototyping, and regulatory approvals. | 40%+ Production is materials in Blue design resulting from continuous design and engineering, optimization efforts over the last two years. |
| 2+ Years in partnership with the National Renewable Energy Lab (NREL) to measure and optimize building system energy proficiency. | 5 Number of stories in our building system engineering, which can be placed on top of a concrete podium or built on-grade. |
| 10 - 400+ Apartment units that can be built in a green Blokable multifamily project. | 2 Prototyping facilities: 2001-2015: 30,000 sq ft 2016-2021: 60,000 sq ft |

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

The ability of the system to build projects with up to 5 residential levels represents the vast majority of the multifamily development opportunity in most markets. After completing the Phoenix Rising project in Washington State, Blokable shut down its prototyping facility there to focus on 5-story building system engineering, Building Information Modeling (BIM) and Bill of Materials (BOM) systems development, and to prepare to ramp up manufacturing in California.

During this engineering and systems integration investment period, Blokable partnered with the National Renewable Energy Lab as part of the 362 initiative to test, validate, and optimize the energy efficiency and performance of the Blokable Building System. As an output of the partnership, NREL published a peer-reviewed technical report indicating that Blokable's engineering and business model would achieve significant environmental impact by building 10,000 units by the end of 2030 when compared to business as usual multi-family development and construction. A summary of the report findings:

- Reduce Greenhouse Gas Emissions by 60%
- Reduce Construction Material Waste by 95%
- Reduce Vehicle Miles Traveled by 67%
- Avoid 2.4 Million Tons of Emitted Carbon

WHY INVEST

## Blokable builds real estate equity for investors and the community

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

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

### Invest Today

Help us allow the creation of wealth in underserved buyers and the community at no cost to Blokable and its investors or to government.

Unlike other modular, framing, or panelized system-based companies, Blokable does not sell a product to developers. Blokable develops housing using a more efficient, cost-effective process that maximizes returns, and we receive more favorable tax treatment as an owner of

real estate rather than the seller of goods and services. This unique business model can be up to 30 times more profitable than the product sales model that other modular and prefab companies follow.

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

Blokable and its investors benefit from technological and business model innovations that capture all wealth that the real estate development process can create from cost savings, development fees, refinance proceeds, operating cash flow, and asset sale proceeds. And with our ability to build cheaper, faster, and better, we believe the value of the equity in our projects will be higher than traditional developments, especially as costs for traditional builds continue to escalate.

At scale, the same innovation also provides for the development of affordable housing at a fraction of traditional costs. Not only will this provide much greater housing opportunities for lower-income segments of the population, but through Blokable's 'Affordable To Own' program it will also enable wealth creation among underserved buyers and the community at no cost to Blokable or to government.

### Revolutionizing Housing Development

What is space and cost: $30 million of investment in R&D and prototyping, Blokable is ready to take on the housing crisis. Having validated its engineering, assembly process, and costs with our Phoenix Rising Development in Auburn, WA, the company is now ready to take up Modular Development\* and related manufacturing efforts to create needed multihonory housing, that is California and then across the country and around the world.

Please note:  
The flag of offering is truly available through the Project  
Hawaii, U.S. The investment is a key driver, the tax and interest  
A high impact of risk, including the potential loss of your entire  
investment.

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

**$0 Raised**

### REASONS TO INVEST

There is a massive housing shortfall in the U.S., and demand continues to outpace supply. In California alone, there are an estimated 3.5 million new housing units needed by 2025.\* With such enormous demand, the opportunity for Blokable to develop multihonory housing at scale is almost limitless.

With its state-of-the-art building system that is engineered for manufacturing, Blokable's multihonory housing is superior in quality but much lower in cost and time to build than traditional development.

Blokable is entering into a lease for a large-scale manufacturing facility in Northern California that it expects to make operational in late 2023.

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

Blokable is a key driver, the tax and interest

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

Blokable is a key driver, the tax and interest

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

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

## ABOUT

1750 Creekside Oaks Dr. Suite 130 Sacramento, CA 95833

View Site

After 6 years and over $50 million of investment in R&D and prototyping, Biskable is ready to take on the housing crisis. Having validated its engineering, assembly process, and costs with our Phoenix Rising Development in Autumn, WA, the company is now ready to ramp up Modular Development® and related manufacturing efforts to create needed multiformity housing, then in California and then across the country and around the world.

## TEAM

### Nelson Del Rio Co-CEO

Nelson Del Rio has been with Biskable as an advisor since 2006, and became one of the Co-Chief Executive Officers in 2017. Nelson has served as Co-CEO for the last five years, during which time he has been responsible for implementing the business plan for Modular Development, raising the funds necessary to operate the company, guiding development of all product design and prototyping activity, and have negotiated all contracts and relationships. He has personally designed and worked with the team to implement the engineering assistance to achieve Biskable's Mexican Development goals, including the standard and resilient parts, and his build and assembly structures. Nelson graduated from Harvard Law School in 1987 and has been an active and continuous member of the California State Bar since 1987. Nelson began his career as a merger and evaluation Attorney at Pasadena, Arap, Baku, Bhaghat & Hore, and then went on to become an active impact investor, developer, and philanthropist. It is additional to his older, hard and other type of real estate acquisitions and development. Nelson is best known for his efforts in early single-asset securitization, as well as the creation of the public private partnership, design credit paradigm in our today in connection with government and other facilities. He has used his business, tax, legal, finance, production and development background in Biskable to create the same highly efficient development structure he created in the past in commercial development. Nelson has also served on Biskable's Board of Managers since 2017.

### Aaron Hoke Co-CEO, CFO, Secretary

Aaron Hoke is one of Biskable's Co-Chief Executive Officers, Launching Biskable in 2016. Aaron has served in the capacity of Co-CEO since that time, during which time he has been responsible for implementing the business plan for Modular Development, raising the funds necessary to operate the company, guiding development of all product design and prototyping activity, and have negotiated all contracts and relationships. Prior to Biskable, Aaron has founded and led businesses and product teams, notably spearheading Amazon's first real estate product business, Amazon Inc and Amazon Books. Prior to his time at Amazon, Aaron, among other projects, on recorded Mylar, a software startup that protected and organized large features of personal photograph and memories. He also co-founded Industrial Gobo, a global leader in digital media Software as a Service, which he took a world class team and digital media infrastructure. Aaron won 170 mill front of the software business. Aaron has put his deep experience applying advanced technology to maintain multibrand industries to work at Biskable. He understands the complications inherent to the development of physical space and the opportunity to create the technology and logistics platform necessary to enable Biskable's Housing Development as a Service model. Aaron has also served on Biskable's Board of Managers since the company's inception.

### Stephen Chua Chief Development Officer

Steven Chua is Biskable's Chief Development Officer, joining the Company in 2021, where he leads the Company's real estate development platform and financial efforts. At various real estate development and investment scenarios, Steve brings to Biskable company broad-based, vertically integrated multifamily expertise that encompasses all phases of the real estate life cycle-from acquisitions and financing to development to asset management and operations. From 2013 to 2024, Steve was Managing Director in the Executive Officer of Junior Enterprises. His largest success real estate developer in the Washington, D.C. market. Prior to Junior, he was a Vice President from 2006 to 2016 at Washington Capital Partners, a leading real estate development and investment firm in Los Angeles, with large-scale projects across the United States. In addition to extensive real estate transactional experience, he has highly diversified residential development experience that ranges from low directly multifamily projects to many multi-rise resorts, as well as master-sponsored residential communities and large-scale model-use projects. Earlier in his career, he was a merger and acquisitions and private equity lawyer in a Wall Street bar firm and at Oaktown Capital Management. He holds an M.B.A. from the Tuck School of Business at Dartmouth, a US from the University of Michigan Law School and a B.A. from Dartmouth College.

### Timothy Miller Chief Product Officer

Timothy Miller started at Biskable in 2016, acting in the capacity as Biskable's Chief Product Officer. Timothy is responsible for all aspects of the Biskable Building System. He has been of the Modular Development platform, now owing all aspects of the product engineering and technology teams. Through the lens of facilities, he was a work in industrial designs, and business strategies, he has successfully created and expanded on customer experience for industry leaders including Boeing, Bled Buy, Amazon, and LPDM Airlines. He has worked on a design model within both agency and corporate environments, most notably with Amazon Inc. TAKOAK, and Hulk Worldwide. At Biskable, Tim is a new real estate bid firm, bringing his unique experience to the challenge of creating a new category of housing.

### Jason Loewenik Board Member

Jason Loewenik is a technology entrepreneur, angel investor, and the host of the popular parkwork. The Week in Startups and Anger As a 'sister' for has Simon Selye venture capital the ' เดอุปไซด์ Capital and later as an angel investor. Jason has invested in 2001 early-stage startups including a ' exclusive' Seltzer dollar valuations. His book 'Anger: How to break in Technology Startups: Timeless Above's Son as Angel Investor Who Turned $100,000 into $100,000,000' was published by HarperCollins in July 2007. He lives in San Francisco, California.

### YB Chen Board Member

YB Chen has been a part of the Converse Management (previously Nelson Capital) team since 2006. Encourage an early-stage investment driving core technology innovation broadly across many sectors. Prior to joining Converse, YB was a manager in the IP Acquisitions and Investments group at Microsoft Corporation. Before joining Microsoft, he was a member of the mergers and acquisitions group at Oppenheimer & Co. (formerly CUB) World Partners and, earlier, worked in the health care investment banking group at Green & Co. YB received his $5 in Engineering Management Systems from Columbia University. He advises Venture Investing students at the University of Washington as a IP Fund Fellow and is at Harvard, participant as a judge in general of events and conferences focused on early-stage technology investment.

## TERMS

### Biskable

#### Overview

CURRENT DATE

Mar 31, 2025

VALUATION LIST

BIZUM

#### Breakdown

FOR INDEPENDENT

GROSSLY RATE

10.0%

CONVERTIBLE

Preferred Units

SEC Recent Filing

Financials

Notes

What is a Convertible Note?

A convertible note offers you the right to receive Preferred Units in Midwales. The amount of Preferred Units you will receive in the future will be determined at the next month, based on which the Company serves at least $1,000,000 in a specified weekly borrowing. The highest conversion rate will be 2% compared to 1/2015 (1/2015) at the current rate of 1.5%. Note you will receive a 1/2015 increase of 1.5% in the current rate of 1.5%. The first increase in 1/2015 (1/2015) will be 1.5% compared to 1/2015 (1/2015). The next rate will be 1.5% compared to 1/2015 (1/2015). The next rate will be 1.5% compared to 1/2015 (1/2015).

Through General Note subject to adjustment of 1/2% losses for Sterling's Unsecured, the 1/2% losses below.

Investment Incentives and Benefits

Loyalty Held (Income) Paid

Gross $1,000+ within the first year until current Monthly Income update

Gross $1,000+ within the first two weeks until current Monthly Income update and your name will be inscribed on the "Hearing Reimbursement" and in Table of Figure 2.

Gross $1,000+ within three weeks until current Monthly Income update, shown with company leadership in Sacramento and your name will be inscribed on the "Hearing Reimbursement" and in Table of Figure 2.1. your name will be inscribed on the "Hearing Reimbursement" and in Table of 1/2.1.2 (Note).

Amount Based

Tier 1: $1,000+

Gross $1,000+ and receive a quarterly income rental update

Tier 2: $1,000+

Gross $1,000+ and receive a monthly income update

Tier 3: $1,000

Gross $1,000+ and receive a Monthly Income update - shown with company leadership in Sacramento

Tier 4: $1,000

Gross $1,000+ and receive a monthly income update - shown with company leadership in Sacramento - name inscribed on "Hearing Reimbursement" and in the table of Figure 2.

Tier 5: $1,000

Gross $1,000+ and receive a monthly income update - shown with company leadership in Sacramento - name inscribed on "Hearing Reimbursement" and in Table of Figure 2.1. name inscribed on "Hearing Reimbursement" and in Table of 1/2.1.2 (Note).

Tier 6: $1,000

Gross $1,000+ and receive a monthly income update - all expenses in day not to Sacramento and private driven will company leadership in Sacramento and your name is inscribed on "Hearing Reimbursement" and in Table of Figure 2.1. Name inscribed on "Hearing Reimbursement" and in Table of 1/2.1.2 (Note).

To claim in income parts (from an investment, the most-paid) is single investment in the same offering that meets the minimum paid requirement. Since income from profit will not be granted if an investor controls multiple investments that, when combined, meet the joint requirement, all parts occur when the offering is completed.

The 10th Series for the Market Investors

Midwales will offer a 10% additional bonus interest for all investments that are committed by investors that are eligible for the Sterling's Crowdfunding Inc. (SFR) 1 Series.

Eligible Sterling's investors will receive a 10% increase in the annual interest rate on the Series 2020-21 convertible notes, or 21 convertible notes, being offered in the offering. This means your annual interest rate will be 4.50% instead of 6.50%.

This 10% bonus is only used during the investor's eligibility period, except in eligible for this bonus and plan items and for (This) are as a capital or more and the company's business to maintain existing plan. This will have the firm opportunity to meet relevant risks in the offering become available if your investment was extended to the

Investors will receive the highest single bonus that are eligible for among the bonuses based on the amount charged and the rate of offering required (2%)

Corporate Use of Personal

Overtime - This Company might have a regular use of Personal that may include tax and non-employee miscellaneous and (E) public income protection and policy made to each such a financial measure. Any expense related "Administrative Expense" that is not money by administrative purposes. Any expense related "Travel and Entertainment", any expense that is for the purposes of their company prior to such payment.

# JOIN THE DISCUSSION

What's on your mind?

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Ice breaker! What brought you to this investment?

# HOW INVESTING WORKS

Cancel anytime before 48 hours before a willing vote or the offering and date.

| YEAR | BUDGET | FORCE IN | FORCE | FORCE |
| --- | --- | --- | --- | --- |
| UP | OVER | TRAVEL | RELATION | INVESTED |

# WHY STARTENGINE?

☐ OWNERS
We want you to succeed and get the most out of your money by offering investors and investment aid
☐ SALES
How did it your life, the new job is keeping it the way?
☐ COVER A CHILD TRUST
Based in over 200 short-ups and collections

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# **Important Message**

This document is intended for use only when the information is provided in the United States and may not be reproduced, distributed, or transmitted. The information contained in this document is not intended for use by the U.S. Government. The information contained in this document is not intended for use by the U.S. Government. The information contained in this document is not intended for use by the U.S. Government.

www.startengine.com is a member of the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

The information contained in this document is not intended for use only when the information is provided in the United States and may not be reproduced, distributed, or transmitted. The information contained in this document is not intended for use by the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

www.startengine.com is a member of the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

The information contained in this document is not intended for use only when the information is provided in the United States and may not be reproduced, distributed, or transmitted. The information contained in this document is not intended for use by the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

The information contained in this document is not intended for use only when the information is provided in the United States and may not be reproduced, distributed, or transmitted. The information contained in this document is not intended for use by the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

The information contained in this document is not intended for use only when the information is provided in the United States and may not be reproduced, distributed, or transmitted. The information contained in this document is not intended for use by the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

The information contained in this document is not intended for use only when the information is provided in the United States and may not be reproduced, distributed, or transmitted. The information contained in this document is not intended for use by the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

www.startengine.com is a member of the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

The information contained in this document is not intended for use only when the information is provided in the United States and may not be reproduced, distributed, or transmitted. The information contained in this document is not intended for use by the U.S. Department of Energy, Inc. (St. Louis, MO) and is a member of the U.S. Department of Energy, Inc. (St. Louis, MO).

**Attachment 6:** `BlokablePatentsandTrademarks.pdf`

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

| Title | Serial No. | Filing Date | Status |
| --- | --- | --- | --- |
| Modular Housing and Related Systems and Manufacture | 17/052,442 US2021/0172164 U.S. non-prov. app. | 02NOV2020 | Published Awaiting next action Declarations due |
| Resilient Connector and Methods of Use of Same | 17/855,618 U.S. non-prov. app. | 30JUN2022 | Pending Awaiting 1 st Office Action |
| Resilient Connector and Methods of Use of Same | PCT/US2022/035839 PCT app. | 30JUN2022 | Pending Nat. Stg. due 02JAN2024 |
| Hollow Structural Section Connector and Methods of Use of Same | 17/945,880 U.S. non-prov. app. | 15SEP2022 | Pending Awaiting 1 st Office Action |
| Hollow Structural Section Connector and Methods of Use of Same | PCT/US2022/076488 PCT app. | 15SEP2022 | Pending Nat. Stg. due 21MAR2024 |

Blokable Confidential

Page: 1 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKABLE |  | 38460.6001/BH Bahrain Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0062577 27-Oct-2016 | 2016/48 | 1322700 27-Oct-2016 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| BLOKABLE |  | 38460.6001/CA Canada Class(es): 37 Client: Blokable, LLC Agent Name: Gowling WLG - Toronto Assignee: Blokable, LLC | 1806718 27-Oct-2016 |  | TMA1043481 22-Jul-2019 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: T6794344CA Office: Portland | Registered 22-Jul-2029 |
| BLOKABLE |  | 38460.6001/EG Egypt Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0062577 27-Oct-2016 | 2016/48 | 1322700 27-Oct-2016 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |

Page: 2 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKABLE |  | 38460.6001/EM European Union Intellectual Property Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0062577 27-Oct-2016 | 2016/48 | 1322700 27-Oct-2016 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| BLOKABLE |  | 38460.6001/GB United Kingdom Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0062577 27-Oct-2016 | 2016/48 | UK00801322700 27-Oct-2016 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered 27-Oct-2026 |
| BLOKABLE |  | 38460.6001/IR Iran Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0062577 27-Oct-2016 | 2016/48 | 1322700 27-Oct-2016 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |

Page: 3 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKABLE |  | 38460.6001/MAP | A0062577 | 2016/48 | 1322700 | Registered |
|  |  | Madrid Protocol (TM) | 27-Oct-2016 | 08-Dec-2016 | 27-Oct-2016 | 27-Oct-2026 |
|  |  | Class(es): 37 |  |  | Attorneys/Staff: K1C, K1C, C4V8 |  |
|  |  | Client: Blokable, LLC |  |  | Client Ref: |  |
|  |  | Agent Name: |  |  | Agent Ref: |  |
|  |  | Assignee: Blokable, LLC |  |  | Office: Portland |  |
| BLOKABLE |  | 38460.6001/OM | A0062577 | 2016/48 | 1322700 | Registered |
|  |  | Oman | 27-Oct-2016 |  | 27-Oct-2016 |  |
|  |  | Class(es): 37 |  |  | Attorneys/Staff: K1C, K1C, C4V8 |  |
|  |  | Client: Blokable, LLC |  |  | Client Ref: |  |
|  |  | Agent Name: |  |  | Agent Ref: |  |
|  |  | Assignee: Blokable, LLC |  |  | Office: Portland |  |
| BLOKABLE |  | 38460.6001/SY | A0062577 | 2016/48 | 1322700 | Registered |
|  |  | Syria | 27-Oct-2016 |  | 27-Oct-2016 |  |
|  |  | Class(es): 37 |  |  | Attorneys/Staff: K1C, K1C, C4V8 |  |
|  |  | Client: Blokable, LLC |  |  | Client Ref: |  |
|  |  | Agent Name: |  |  | Agent Ref: |  |
|  |  | Assignee: Blokable, LLC |  |  | Office: Portland |  |

Page: 4 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKABLE |  | 38460.6001/TR Turkey Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0062577 27-Oct-2016 | 2016/48 | 1322700 27-Oct-2016 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| BLOKABLE |  | 38460.6001/US United States of America Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | 87/018539 28-Apr-2016 | 20-Sep-2016 | 5247461 18-Jul-2017 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered 18-Jul-2027 |
| BLOKSENSE |  | 38460.6002/BH Bahrain Class(es): 42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0071912 05-Dec-2017 | 2018/4 | 1388346 05-Dec-2017 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |

Page: 5 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKSENSE |  | 38460.6002/CA Canada | 1871189 04-Dec-2017 | 3411 11-Mar-2020 | TMA1081869 28-Sep-2020 | Registered 28-Sep-2030 |
|  |  | Class(es): 09,42 |  | Attorneys/Staff: K1C, K1C, C4V8 |  |  |
|  |  | Client: Blokable, LLC |  | Client Ref: |  |  |
|  |  | Agent Name: Gowling WLG - Toronto |  | Agent Ref: T6794345CA |  |  |
|  |  | Assignee: Blokable, LLC |  | Office: Portland |  |  |
| BLOKSENSE |  | 38460.6002/EG Egypt | A0071912 05-Dec-2017 | 2018/4 | 1388346 05-Dec-2017 | Registered |
|  |  | Class(es): 42 |  | Attorneys/Staff: K1C, K1C, C4V8 |  |  |
|  |  | Client: Blokable, LLC |  | Client Ref: |  |  |
|  |  | Agent Name: |  | Agent Ref: |  |  |
|  |  | Assignee: Blokable, LLC |  | Office: Portland |  |  |
| BLOKSENSE |  | 38460.6002/EM European Union Intellectual Property | A0071912 05-Dec-2017 | 2018/4 | 1388346 05-Dec-2017 | Registered |
|  |  | Class(es): 42 |  | Attorneys/Staff: K1C, K1C, C4V8 |  |  |
|  |  | Client: Blokable, LLC |  | Client Ref: |  |  |
|  |  | Agent Name: |  | Agent Ref: |  |  |
|  |  | Assignee: Blokable, LLC |  | Office: Portland |  |  |

Page: 6 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKSENSE |  | 38460.6002/GB United Kingdom | A0071912 05-Dec-2017 | 2018/4 | UK00801388346 05-Dec-2017 | Registered 05-Dec-2027 |
|  |  | Class(es): 09,42 |  |  | Attorneys/Staff: K1C, K1C, C4V8 |  |
|  |  | Client: Blokable, LLC |  |  | Client Ref: |  |
|  |  | Agent Name: |  |  | Agent Ref: |  |
|  |  | Assignee: Blokable, LLC |  |  | Office: Portland |  |
| BLOKSENSE |  | 38460.6002/IR Iran | A0071912 05-Dec-2017 | 2018/4 | 1388346 05-Dec-2017 | Registered |
|  |  | Class(es): 42 |  |  | Attorneys/Staff: K1C, K1C, C4V8 |  |
|  |  | Client: Blokable, LLC |  |  | Client Ref: |  |
|  |  | Agent Name: |  |  | Agent Ref: |  |
|  |  | Assignee: Blokable, LLC |  |  | Office: Portland |  |
| BLOKSENSE |  | 38460.6002/MAP Madrid Protocol (TM) | A0071912 05-Dec-2017 | 2018/4 08-Feb-2018 | 1388346 05-Dec-2017 | Registered 05-Dec-2027 |
|  |  | Class(es): 42 |  |  | Attorneys/Staff: K1C, K1C, C4V8 |  |
|  |  | Client: Blokable, LLC |  |  | Client Ref: |  |
|  |  | Agent Name: |  |  | Agent Ref: |  |
|  |  | Assignee: Blokable, LLC |  |  | Office: Portland |  |

Page: 7 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKSENSE |  | 38460.6002/OM Oman Class(es): 42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0071912 05-Dec-2017 | 2018/4 | 1388346 05-Dec-2017 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| BLOKSENSE |  | 38460.6002/SY Syria Class(es): 42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0071912 05-Dec-2017 | 2018/4 | 1388346 05-Dec-2017 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| BLOKSENSE |  | 38460.6002/TR Turkey Class(es): 42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0071912 05-Dec-2017 | 2018/4 | 1388346 05-Dec-2017 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |

Page: 8 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKSENSE |  | 38460.6002/US United States of America Class(es): 42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | 87/475922 05-Jun-2017 | 17-Apr-2018 | 6428487 20-Jul-2021 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered 20-Jul-2031 |
| HOUSING DEVELOPMENT AS A SERVICE |  | 38460.6003/1/US United States of America Class(es): 42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | 88/187158 08-Nov-2018 |  | 5887294 15-Oct-2019 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered 15-Oct-2029 |
| HOUSING DEVELOPMENT AS A SERVICE |  | 38460.6003/US United States of America Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | 88/187157 08-Nov-2018 |  | 5887293 15-Oct-2019 Attorneys/Staff: K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered 15-Oct-2029 |

Page: 9 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| HDAAS |  | 38460.6004/1/US United States of America Class(es): 42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | 88/187156 08-Nov-2018 | 16-Apr-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland |  | Abandoned |
| HDAAS |  | 38460.6004/BH Bahrain Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 |  | 1481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| HDAAS |  | 38460.6004/CA Canada Class(es): 37,42 Client: Blokable, LLC Agent Name: Gowling WLG - Toronto Assignee: Blokable, LLC | 1961730 08-May-2019 |  | Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: T6797129CA Office: Portland | Pending |

Page: 10 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| HDAAS |  | 38460.6004/EG Egypt Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 |  | 1481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| HDAAS |  | 38460.6004/EM European Union Intellectual Property Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 |  | 1481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| HDAAS |  | 38460.6004/GB United Kingdom Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 |  | UK00801481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered 07-May-2029 |

Page: 11 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| HDAAS |  | 38460.6004/IR Iran Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 |  | 1481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| HDAAS |  | 38460.6004/MAP Madrid Protocol (TM) Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 | 30/2019 08-Aug-2019 | 1481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered 07-May-2029 |
| HDAAS |  | 38460.6004/OM Oman Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 |  | 1481499 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Pending |

Page: 12 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| HDAAS |  | 38460.6004/SY Syria Class(es): 37,42 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | A0085802 07-May-2019 |  | 1481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland | Registered |
| HDAAS |  | 38460.6004/TR Turkey Class(es): 37,42 Client: Blokable, LLC Agent Name: AGIP - Turkey Assignee: Blokable, LLC | A0085802 07-May-2019 |  | 1481499 07-May-2019 Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: 4308 999998 Office: Portland | Registered |
| HDAAS |  | 38460.6004/US United States of America Class(es): 37 Client: Blokable, LLC Agent Name: Assignee: Blokable, LLC | 88/187154 08-Nov-2018 | 16-Apr-2019 |  | Abandoned |
|  |  |  |  |  | Attorneys/Staff: K1C, K1C, K1C, C4V8 Client Ref: Agent Ref: Office: Portland |  |

Page: 13 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |
| --- | --- | --- | --- | --- | --- | --- |
| BLOKABLE MODULAR DEVELOPMENT |  | 38460.6005/1/US United States of America | 97/779227 03-Feb-2023 |  |  | Pending |
|  |  | Class(es): 42 |  | Attorneys/Staff: K1C, K1C, C4V8 |  |  |
|  |  | Client: Blokable, LLC |  | Client Ref: |  |  |
|  |  | Agent Name: |  | Agent Ref: |  |  |
|  |  | Assignee: Blokable, Inc. |  | Office: Portland |  |  |
| BLOKABLE MODULAR DEVELOPMENT |  | 38460.6005/US United States of America | 97/779223 03-Feb-2023 |  |  | Pending |
|  |  | Class(es): 37 |  | Attorneys/Staff: K1C, K1C, C4V8 |  |  |
|  |  | Client: Blokable, LLC |  | Client Ref: |  |  |
|  |  | Agent Name: |  | Agent Ref: |  |  |
|  |  | Assignee: Blokable, Inc. |  | Office: Portland |  |  |
| MODULAR DEVELOPMENT |  | 38460.6006/1/US United States of America | 97/779232 03-Feb-2023 |  |  | Pending |
|  |  | Class(es): 42 |  | Attorneys/Staff: K1C, K1C, C4V8 |  |  |
|  |  | Client: Blokable, LLC |  | Client Ref: |  |  |
|  |  | Agent Name: |  | Agent Ref: |  |  |
|  |  | Assignee: Blokable, Inc. |  | Office: Portland |  |  |

Page: 14 of 14

Thursday, February 16, 2023

## Trademark List

| Trademark | Logo | Docket Number Country Name | Application Number / Date | Publication Number / Date | Registration Number / Date | Status Next Renewal |  |
| --- | --- | --- | --- | --- | --- | --- | --- |
| MODULAR DEVELOPMENT |  | 38460.6006/US | 97/779231 |  |  | Pending |  |
|  |  | United States of America | 03-Feb-2023 |  |  |  |  |
|  |  | Class(es): 37 |  |  |  |  | Attorneys/Staff: K1C, K1C, C4V8 |
|  |  | Client: Blokable, LLC |  |  |  |  | Client Ref: |
|  |  | Agent Name: |  |  |  |  | Agent Ref: |
|  |  | Assignee: Blokable, Inc. |  |  | Office: Portland |  |  |
| MODULAR DEVELOPMENT BY BLOKABLE |  | 38460.6007/1//US | 97/779243 |  |  | Pending |  |
|  |  | United States of America | 03-Feb-2023 |  |  |  |  |
|  |  | Class(es): 42 |  |  |  |  | Attorneys/Staff: K1C, K1C, C4V8 |
|  |  | Client: Blokable, LLC |  |  |  |  | Client Ref: |
|  |  | Agent Name: |  |  |  |  | Agent Ref: |
|  |  | Assignee: Blokable, Inc. |  |  | Office: Portland |  |  |
| MODULAR DEVELOPMENT BY BLOKABLE |  | 38460.6007/US | 97/779239 |  |  | Pending |  |
|  |  | United States of America | 03-Feb-2023 |  |  |  |  |
|  |  | Class(es): 37 |  |  |  |  | Attorneys/Staff: K1C, K1C, C4V8 |
|  |  | Client: Blokable, LLC |  |  |  |  | Client Ref: |
|  |  | Agent Name: |  |  |  |  | Agent Ref: |
|  |  | Assignee: Blokable, Inc. |  |  | Office: Portland |  |  |
|  |  |  |  |  |  | Row Count: 42 |  |

**Attachment 7:** `BlokableOperatingAgmtFinal.pdf`

# AMENDED AND RESTATED OPERATING AGREEMENT

OF

BLOKABLE, LLC

A DELAWARE LIMITED LIABILITY COMPANY

THE SECURITIES REPRESENTED BY THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR REGISTERED NOR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS QUALIFIED AND REGISTERED UNDER APPLICABLE STATE AND FEDERAL SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, SUCH QUALIFICATION AND REGISTRATION IS NOT REQUIRED. ANY TRANSFER OF THE SECURITIES REPRESENTED BY THIS AGREEMENT IS FURTHER SUBJECT TO OTHER RESTRICTIONS, TERMS AND CONDITIONS WHICH ARE SET FORTH HEREIN.

4140-0439-6584.5

# **AMENDED AND RESTATED OPERATING AGREEMENT  
OF  
BLOKABLE, LLC  
A DELAWARE LIMITED LIABILITY COMPANY (THE “COMPANY”)**

This Amended and Restated Operating Agreement is made as of February 1, 2021, by and among the parties listed on the signature pages hereof, and such other Persons that may be admitted from time to time to the Company and as parties to this Agreement, with reference to the following facts:

A. On December 29, 2020, the Certificate of Formation for the Company was filed with the Delaware Secretary of State.

B. By unanimous written consent, the board of directors of Blokable, Inc. (the “Corporation”) adopted a resolution approving a merger between the Corporation and the Company (the “Merger”) and recommending the approval of such merger to the stockholders of the Corporation.

C. As a result of the Merger, certain former stockholders of the Corporation became the Members (as defined below), and the Members now desire to enter into this Agreement to provide terms to govern the Company.

D. The Company and its initial Member entered into an operating agreement on January 25, 2021 (the “Prior Agreement”), and now wish to amend and restate the Prior Agreement by adopting this Agreement, which shall supersede the Prior Agreement in its entirety.

NOW, THEREFORE, the parties by this Agreement set forth the operating agreement for the Company under the laws of the State of Delaware upon the terms and subject to the conditions of this Agreement.

## DEFINITIONS

When used in this Agreement, the following terms shall have the meanings set forth below (all terms used in this Agreement that are not defined in this Article I shall have the meanings set forth elsewhere in this Agreement):

1.1 Act shall mean the Delaware Limited Liability Company Act, 6 Delaware Code Section 18-101 et seq., as the same may be amended from time to time, and the provisions of succeeding law.

1.2 Additional Member means a Person admitted to the Company as an additional Member pursuant to Section 4.1 and shown as a Member on the books and records of the Company.

1.3 Additional Shares shall mean the sale or issuance of any Common Shares (or Common Share Equivalents described on Exhibit C hereto) by the Company after the date of this Agreement other than (i) Common Shares, Options or Convertible Securities issued as a

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distribution on the Preferred Shares; (ii) Common Shares, Options or Convertible Securities issued with respect to Shares splits, Share dividends or other similar transactions; (iii) the issuance of Common Shares or Options to employees, consultants or Managers of the Company or any Affiliate of the Company pursuant to a plan, agreement or arrangement approved by the Board of Managers; (iv) Common Shares issued or issuable in a Qualified IPO; (v) Common Shares or Convertible Securities actually issued upon the exercise of Options or Common Shares actually issued upon the conversion or exchange of Convertible Securities, in each case provided such issuance is pursuant to the terms of such Options or Convertible Securities; (vi) the issuance of Common Shares, Options or Convertible Securities to financial institutions or lessors in connection with commercial credit arrangements, equipment financings, commercial property lease transactions or similar transactions, approved by the Board of Managers, including the approval of a majority of the Preferred Managers; (vii) Common Shares, Options or Convertible Securities issued as acquisition consideration pursuant to the acquisition of a corporation or other entity by the Company by merger, purchase of substantially all of the assets or other reorganization or to a joint venture agreement, provided that such issuances are approved by the Board of Managers, including the approval of a majority of the Preferred Managers; and (viii) Common Shares, Options or Convertible Securities issued in connection with sponsored research, collaboration, technology license, development, OEM, marketing or other similar agreements or strategic partnerships approved by the Board of Managers, including the approval of a majority of the Preferred Managers.

1.4 Affiliate of a Person means any director, officer, stockholder, member, partner, employer, employee or agent of such Person or any Person, directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with such Person, as applicable. The term “control,” as used in the immediately preceding sentence, shall mean with respect to a corporation or limited liability company the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the controlled corporation or limited liability company, and, with respect to any individual, partnership, trust, other entity or association, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled entity.

1.5 Agreement shall mean this Amended and Restated Operating Agreement, as originally executed and as amended from time to time.

1.6 Board of Managers shall mean the collective group of managers designated or elected by the Members pursuant to Section 5.3 hereof.

1.7 Book shall mean the method of accounting prescribed for compliance of with the capital account maintenance rules set forth in Treasury Regulations § 1.704-1(b)(2)(iv), as distinguished from any other accounting method that the Company may adopt for other purposes, including financial reporting.

1.8 Book Value shall mean the carrying value of Company property for Book purposes, as determined for purposes of the capital account maintenance rules set forth in Treasury Regulations § 1.704-1(b)(2)(iv).

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1.9 Capital Account shall mean with respect to any Member the capital account which the Company establishes and maintains for such Member pursuant to Section 3.5.

1.10 Capital Contribution shall mean the total amount of cash and property contributed to the Company by the Members.

1.11 Code shall mean the Internal Revenue Code of 1986, as amended from time to time, the provisions of succeeding law, and to the extent applicable, the Treasury Regulations.

1.12 Common Majority means the Members holding a majority of the then-outstanding Common Shares entitled to vote.

1.13 Common Member means each Person (i) holding a Common Share and (ii) admitted to the Company as a Member.

1.14 Common Share means a Share designated on the date of issuance as a “Common Share”. Except as set forth in Section 4.8 below, Common Shares are voting interests in the Company.

1.15 Company shall mean Blokable, LLC, a Delaware limited liability company.

1.16 Company Notice means written notice from the Company notifying the selling Key Holders and each Major Holder that the Company intends to exercise its Right of First Refusal as to some or all of the Transfer Shares with respect to any Proposed Key Holder Transfer.

1.17 Convertible Securities shall mean any evidences of indebtedness, shares or other securities directly or indirectly convertible into or exchangeable for Common Shares, but excluding Options.

1.18 DGCL means the Delaware General Corporation Law, as amended from time to time and the provisions of succeeding law.

1.19 Distribution means the amount of cash or property which the Board of Managers deems available for distribution to the Members, including without limitation Liquidation Transaction Proceeds, taking into account all debts, liabilities, and obligations of the Company then due, and working capital and other amounts which the Board of Managers deems necessary for the Company’s business or to place into reserves for customary and usual claims with respect to such business; provided, however, that the following shall not be treated as a Distribution: (i) any reimbursement to a Member for out-of-pocket expenses incurred by the Member in connection with the business of the Company and approved by the Board of Managers or the Chief Executive Officer, or (ii) fees or remuneration paid to any Member in such Member’s capacity as an employee, officer, consultant or other provider of services, including any guaranteed payments made to Members pursuant to Section 6.6(f).

1.20 Fiscal Year shall mean the Company’s fiscal year, which shall commence on January 1st and end on December 31st of each year, or such other year as shall be required under the Code.

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1.21 GAAP means generally accepted accounting principles in the United States as in effect from time to time.

1.22 Interest means the entire ownership interest (designated as Shares in the Company, on an as-converted basis) of a Member in the Company at any particular time, including the right of such Member to any and all benefits to which a Member may be entitled as provided in this Agreement, together with the obligations of such Member to comply with all the terms and provisions of this Agreement.

1.23 Key Holders means any holder of Common Shares identified as a Key Holder on Exhibit A.

1.24 Liquidation Transaction means each of the following events, unless the Preferred Majority elects otherwise by written notice sent to the Company prior to the effective date of any such event: (a) a merger or consolidation in which (i) the Company is a constituent party or (ii) a subsidiary of the Company is a constituent party and the Company issues Shares pursuant to such merger or consolidation, except any such merger or consolidation involving the Company or a subsidiary in which the Shares of the Company outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for equity interests that represent, immediately following such merger or consolidation, a majority, by voting power, of the equity interests of (1) the surviving or resulting entity; or (2) if the surviving or resulting entity is a wholly owned subsidiary of another entity immediately following such merger or consolidation, the parent company of such surviving or resulting entity; or (b) (1) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole, or (2) the sale or disposition (whether by merger, consolidation or otherwise, and whether in a single transaction or a series of related transactions) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Company, or to a majority owned subsidiary in a transaction that is approved by the Board of Managers of the Company, including the approval of a majority of the Series A Managers (as defined herein).

1.25 Liquidation Transaction Proceeds means any proceeds arising from a Liquidation Transaction as determined in good faith by the Board of Managers, or any other amounts or assets of the Company that the Board of Managers deems in good faith to constitute such proceeds.

1.26 Major Holder means a holder of (i) at least 276,549 Series A Preferred Shares (as adjusted for Share splits, Share distributions, combinations and similar transactions) or (ii) at least 55,416 Series Seed Preferred Shares (as adjusted for Share splits, Share distributions, combinations and similar transactions).

1.27 Major Holder Notice means written notice from any Major Holder notifying the Company and the selling Key Holder(s) that such Major Holder intends to exercise its Secondary Refusal Right as to a portion of the Transfer Shares with respect to any Proposed Key Holder Transfer.

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1.28 Manager shall mean each of the Managers elected by the Members pursuant to Section 5.3 hereof or any other individuals that succeed him or her as a manager of the Company.

1.29 Member shall mean each Person who is an initial signatory to this Agreement or has been admitted to the Company as a Member in accordance with the Certificate of Formation or this Agreement.

1.30 Operating Cash Flow means all cash derived from the ordinary course of business of the Company (including interest income, but excluding Capital Contributions), without reduction for any non-cash charges, but less cash used to pay operating expenses (including, but not limited to, debt service, salaries, bonuses, guaranteed payments, management fees or other incentive compensation) and to pay or establish reasonable reserves for future expenses, debt payments, bonuses, management fees or other incentive compensation, capital improvements and replacements. The amount of the Operating Cash Flow (and what constitutes Operating Cash Flow) shall be determined by the Board of Managers. Operating Cash Flow shall be increased by the amount of any reduction of any reserve funded by Operating Cash Flow. For the avoidance of doubt, amounts that otherwise may be considered Operating Cash Flow will not be considered Operating Cash Flow to the extent that the Board of Managers determines that such amounts should be distributed to the Members pursuant to Section 6.6(a)(ii) instead of Section 6.6(a)(i).

1.31 Options shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Shares or Convertible Securities.

1.32 Participant means a Person that holds a Phantom Common Share.

1.33 Partnership Representative means the Person designated as set forth in Section 5.10.

1.34 Person shall mean an individual, partnership, limited partnership, limited liability company, corporation, trust, estate, association or any other entity.

1.35 Phantom Common Share means a bookkeeping entry representing a Participant's hypothetical Common Shares granted pursuant to Section 3.2, and any person holding a Phantom Common Share shall have no rights as a Member of the Company in accordance with this Agreement. For the avoidance of doubt, Phantom Common Shares have no voting or other consent rights in the Company.

1.36 Phantom Common Share Holder means each Person holding a Phantom Common Share.

1.37 Plan means the Blokable, LLC Equity Participation Plan.

1.38 Preferred Majority means the Members holding a majority of the then-outstanding Preferred Shares, voting on an as-converted basis.

1.39 Preferred Member means each Person (i) holding a Preferred Share and (ii) admitted to the Company as a Member.

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1.40 Preferred Shares means the Series Seed Preferred Shares and Series A Preferred Shares.

1.41 Profits and Losses shall mean for each Fiscal Year or other period, the taxable income or taxable loss of the Company 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 separately stated pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments:

(a) any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses shall be added to such taxable income or loss;

(b) any expenditures of the Company described in Section 705(a)(2)(B) of the Code or treated as Section 705(a)(2)(B) expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits and Losses, shall be subtracted from such taxable income or loss;

(c) any income, gain, loss, or deduction required to be allocated specially to the Members under Section 6.2 shall not be taken into account in computing Profits or Losses;

(d) in lieu of any depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, the Company shall compute such deductions based on the Book Value of the Company property, in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(g)(3);

(e) gain or loss resulting from a taxable disposition of Company property shall be computed by reference to the Book Value of the property disposed of (as adjusted under Treasury Regulations Section 1.704-1(b)(2)(iv)(g)(3)), notwithstanding that the adjusted tax basis of such property differs from its Book Value; and

(f) if the Book Value of Company assets is adjusted to equal fair market value as provided in Section 6.7, then the Profits or Losses shall include the amount of any increase or decrease in such Book Values attributable to such adjustment.

1.42 Proposed Key Holder Transfer means any assignment, sale, offer to sell, pledge, mortgage, hypothecation, encumbrance, disposition of or any other like transfer or encumbering of any Transfer Shares (or any interest therein) proposed by any of the Key Holders.

1.43 Proposed Transfer Notice means written notice from a Key Holder setting forth the terms and conditions of a Proposed Key Holder Transfer.

1.44 Prospective Transferee means any person to whom a Key Holder proposes to make a Proposed Key Holder Transfer.

1.45 Qualified IPO means a firm-commitment underwritten public offering of the Company's (or a successor corporation's) equity securities pursuant to a registration statement under the Securities Act, which yields gross proceeds to the Company of at least $45,000,000 and

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in connection with such offering the Company's equity securities are listed for trading on the Nasdaq Stock Market's National Market, the New York Stock Exchange or another exchange or marketplace approved by the Board of Managers.

1.46 Right of Co-Sale means the right, but not an obligation, of a Major Holder to participate in a Proposed Key Holder Transfer on the terms and conditions specified in the Proposed Transfer Notice.

1.47 Right of First Refusal means the right, but not an obligation, of the Company, or its permitted transferees or assigns, to purchase some or all of the Transfer Shares with respect to a Proposed Key Holder Transfer, on the terms and conditions specified in the Proposed Transfer Notice.

1.48 Schedule of Members means a list of the Members and such information about the Members' Shares as may be maintained by the Board of Managers in its discretion.

1.49 Secondary Notice means written notice from the Company notifying the Major Holders and the selling Key Holder that the Company does not intend to exercise its Right of First Refusal as to any Transfer Shares with respect to a Proposed Key Holder Transfer, on the terms and conditions specified in the Proposed Transfer Notice.

1.50 Secondary Refusal Right means the right, but not an obligation, of each Major Holder to purchase up to its pro rata portion (based upon the total number of Shares then held by all Major Holders) of any Transfer Shares not purchased pursuant to the Right of First Refusal, on the terms and conditions specified in the Proposed Transfer Notice.

1.51 Securities Act means the Securities Act of 1933, as amended.

1.52 Series A Preferred Member means each Person (i) holding a Series A Preferred Share and (ii) admitted to the Company as a Member.

1.53 Series A Preferred Share means a Share designated on the date of issuance as a 'Series A Preferred Share.' Series A Preferred Shares are voting interests in the Company.

1.54 Series Seed Preferred Member means each Person (i) holding a Series Seed Preferred Share and (ii) admitted to the Company as a Member.

1.55 Series Seed Preferred Share means a Share designated on the date of issuance as a 'Series Seed Preferred Share.' Series Seed Preferred Shares are voting interests in the Company.

1.56 Share means that undivided Interest in the Company owned by a Member, including, without limitation, such Member's rights to Profits, Losses and distributions of the Company.

1.57 Strike Price means the amount of the strike price applicable to the Common Shares issued pursuant to Section 3.2.

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1.58 Threshold Interest shall mean the holders of at least a majority of the total outstanding Common Shares entitled to vote and the Preferred Shares, voting together as a single class on an as-converted basis.

1.59 Transfer Shares means Shares owned by a Key Holder, or issued to a Key Holder after the date hereof (including, without limitation, in connection with any Share split, Share distribution, recapitalization, reorganization, or the like), but does not include any Preferred Shares or Common Shares that are issued or issuable upon conversion of Preferred Shares.

1.60 Treasury Regulations means the income tax regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

1.61 Undersubscription Notice means written notice from a Major Holder notifying the Company and the selling Key Holder that such Major Holder intends to exercise its option to purchase all or any portion of the Transfer Shares not purchased pursuant to the Right of First Refusal or the Secondary Refusal Right.

1.62 Unpaid Preferred Liquidation Preference means, as of any given date, an amount, not less than zero, equal to the liquidation preference of the applicable Preferred Member with respect to its Preferred Shares as may be set forth on the Schedule of Members, minus the amount of Distributions made to the Preferred Member with respect to such Preferred Shares pursuant to Section 6.6(a)(ii).

1.63 Value shall mean, with respect to Vested Phantom Common Shares held by any Phantom Common Share Holder, the amount that would have been received by such Phantom Common Share Holder from the Company (without taking into account any withholding for taxes or other required deductions) on a Liquidation Transaction in accordance with the terms of this Agreement if such Phantom Common Share Holder had received that number of Common Shares pursuant to Section 3.2 on the date of issuance equal to the number of Vested Phantom Common Shares held by the Phantom Common Share Holder as of the date of the Liquidation Transaction, with the Strike Price applicable to the Phantom Common Shares, determined as if such Vested Phantom Common Shares (and other Vested Phantom Common Shares entitled to payment) were outstanding as of the date of the Liquidation Transaction. The calculation of Value shall be made by the Board of Managers and shall be final and binding on all Phantom Common Share Holders. The calculation of Value attributable to Vested Phantom Common Shares shall be made solely for bookkeeping purposes at the times determined by the Board of Managers in its discretion.

1.64 Vested Phantom Common Shares shall mean those Phantom Common Shares which have vested in accordance with Section 3.2(b).

## **ARTICLE II ORGANIZATIONAL MATTERS**

2.1 Formation. The Members have formed a Delaware limited liability company under the laws of the State of Delaware by causing the Certificate of Formation to be filed with the Delaware Secretary of State and entering into this Agreement. The rights and liabilities of the Members shall be determined pursuant to the Act and this Agreement. To the extent that the rights

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or obligations of any Member are different by reason of any provision of this Agreement than they would be in the absence of such provision, this Agreement shall, to the extent permitted by the Act, control.

2.2 **Name.** The name of the Company shall be Blokable, LLC. The business of the Company may be conducted under that name or, upon compliance with applicable laws, any other name that the Board of Managers deems appropriate or advisable.

2.3 **Term.** The term of this Agreement commenced on the date hereof and shall continue until dissolved pursuant to Section 9.1.

2.4 **Office and Agent.** The Company shall continuously maintain an office and registered agent in the State of Delaware. The principal office of the Company shall be located at such place as the Board of Managers may determine. The Company may also have such offices, anywhere within and without the State of Delaware, as the Board of Managers may determine from time to time, or the business of the Company may require. The registered agent shall be as stated in the Certificate of Formation or as otherwise determined by the Board of Managers.

2.5 **Names and Addresses of the Members and the Managers.** The names and addresses of the Members are set forth on Exhibit A. The names and address of the Managers are set forth on Exhibit B. A Member or Manager may change its address upon notice thereof to the Company. The Board of Managers shall be authorized, without the prior consent of the Members, to update Exhibit A to this Agreement from time to time to reflect any changes to the list of Members which may have occurred from time to time in accordance with this Agreement or to reflect changes to such Members' addresses. The Board of Managers shall be authorized, without the prior consent of the Members, to update Exhibit B to this Agreement from time to time to reflect the names and address of any duly appointed or elected members of the Board of Managers.

2.6 **Purpose and Business of the Company.** The purpose of the Company is to engage in any lawful activity for which a limited liability company may be organized under the Act.

2.7 **Title to Company Property.** All property owned by the Company shall be deemed to be owned by the Company as an entity, and no Member, individually, shall have any ownership interest in any such property.

2.8 **Failure to Observe Formalities.** A failure to observe any formalities or requirements of this Agreement, the Certificate of Formation or the Act shall not be grounds for imposing personal liability on the Members or the Managers for liabilities of the Company.

2.9 **No Partnership Intended for Nontax Purposes.** The Members have formed the Company under the Act, and expressly deny any intent hereby to form a partnership under Delaware law, including a partnership under the Delaware Revised Uniform Limited Partnership Act, or a corporation under the DGCL. Except for purposes of federal, state and local taxes, the Members shall not be partners to one another, or partners to any third party.

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# 2.10 Liability of Members and Managers to Third Parties; Reliance by Third-Party Creditors.

(a) Except as otherwise provided in the Act, no Member or Manager shall be personally liable for any debt, obligation or liability of the Company, whether arising in contract or otherwise, by reason of being a Member or acting as the Manager of the Company.

(b) This Agreement is entered into among the Company and the Members for the exclusive benefit of the Company, its Members, and their successors and assigns. This Agreement is expressly not intended for the benefit of any creditor of the Company or any other Person. Except and only to the extent provided by applicable statute, no such creditor or third party shall have any rights under this Agreement or any agreement between the Company and any Member with respect to any contributions or otherwise.

# **ARTICLE III  
CAPITAL CONTRIBUTIONS; RIGHTS OF PREFERRED SHARES**

# 3.1 Authorization and Issuance of Shares.

(a) The Company shall be authorized to issue three (3) classes of Shares as follows:

| Class of Shares | Number of Shares Authorized |
| --- | --- |
| Common Shares | 15,000,000 |
| Series Seed Preferred Shares | 2,228,749 |
| Series A Preferred Shares | 5,170,678 |
| Total | 22,399,427 |

(b) The holders of each class of Shares shall be entitled to the rights, subject to the obligations set forth herein, ascribed to such class. Any holder of a class of Shares shall be referred to as a Member of such class of Shares (e.g., a holder of Common Shares shall be referred to as a Common Member). Any holder of more than one class of Shares shall have separate rights under this Agreement with respect to each class of Share held by such Member. For example, a holder of Common Shares and Preferred Shares shall be referred to and shall be treated separately in his, her or its separate capacities as a Common Member and a Preferred Member.

(c) The Board of Managers, at their sole discretion, shall have the power to issue the authorized Shares on the terms and conditions determined by the Board of Managers without the consent of the Members or amendment of this Agreement. Any additional issuances of Shares shall be dilutive proportionately to all Members. The Company shall not issue additional classes of Shares or issue Shares in excess of the authorized number without complying with Section 5.4 below. The Phantom Common Shares represent “phantom” Common Shares that provide the economics of Common Shares without the actual issuance of Common Shares. The Phantom Common Shares represent only a bookkeeping entry representing a holder’s hypothetical Common Shares and a Participant will not be treated as a Member with respect to such granted Phantom Common Shares. The Phantom Common Shares shall be evidenced by a Phantom Common Shares Grant Agreement between the Participant and the Company. For the avoidance

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of doubt, amounts distributable to the Members shall take into account the amounts payable to the Participants with respect to outstanding Phantom Common Shares, and the holders of the Phantom Common Shares shall be entitled to receive similar economics as actual Common Shares pursuant to the economic provisions of Section 6.6 and Section 9.4.

(d) The Schedule of Members will set forth the vesting schedule, if any, of a Member with respect to its Shares. In the event that the Member is subject to vesting with respect to its Shares, such Member must continually remain an employee, consultant or Manager of the Company or an Affiliate in order to vest in the Shares according to the vesting schedule, and a Member who terminates his or her service relationship for any reason or for no reason (including due to the Member's death), or whose service relationship is terminated by the Company or an Affiliate for any reason whatsoever or for no reason (including due to the Member's death) prior to the vesting of the particular Shares, then the Member shall forfeit his or her unvested portion of the Shares for no consideration, and thereafter such Member shall not be entitled to receive any distributions or return of his or her Capital Contributions or Capital Account balance from the Company with respect to such unvested Shares. Any such forfeited Shares shall be available for issuance by the Company. Notwithstanding the foregoing, the Board of Managers may authorize, and the Company may enter into, written agreements which accelerate the vesting of certain Shares upon certain specified events, and the Board of Managers may independently accelerate the vesting of certain Shares.

### 3.2 Incentive Shares and Terms of Phantom Common Shares.

(a) Grant of Common Shares and Phantom Common Shares. Common Shares and Phantom Common Shares may be issued to employees, consultants or Managers of the Company (which for the purposes of this Section 3.2 shall include any Affiliate) for the purpose of attracting or retaining qualified individuals or otherwise providing compensation for services rendered to the Company. The Common Shares and Phantom Common Shares may be issued pursuant to the Plan, or issued outside the Plan, without the consent of the Members or amendment of this Agreement. The Plan is set forth in its entirety in this Section 3.2 and in the other relevant sections of this Agreement. The aggregate number of Common Shares and Phantom Common Shares that may be issued pursuant to awards provided under the Plan shall not exceed 2,240,538 Shares; provided, that subject to Section 5.4(c) below, the Board of Managers may in its discretion increase the number of shares reserved for issuance under the Plan. The Members hereby adopt the Plan and such number of Shares that may be issued under the Plan. The price paid for the Common Shares, if any, and the strike price, which may be zero ('Strike Price'), for the Common Shares and Phantom Common Shares issued pursuant to this Section 3.2 shall be determined by the Board of Managers. Such Common Shares may be issued without cost to the employees, consultants, advisors or Managers of the Company and the initial Capital Account balance of such Members attributable to the issuance of such Common Shares without cost shall be zero. In that case, it is intended that the issuance of such Common Shares shall be characterized for federal income tax purposes as a 'profits' interest that satisfies the safe harbor requirements in Internal Revenue Service Revenue Procedure 93-27 and Revenue Procedure 2001-45. The Schedule of Members shall set forth the number of Common Shares and Phantom Common Shares granted to the Members and the Phantom Common Share Holders and the Strike Price applicable to the Common Shares and Phantom Common Shares. To the extent provided by applicable final Treasury Regulations or Internal Revenue Service guidance, the Members elect a safe harbor to

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treat the fair market value of the Common Shares issued pursuant to this Section 3.2 as equal to the liquidation value of such Common Shares, which shall be zero, and authorize and direct the Company to make the safe harbor election, and the Company and each Member agrees to comply with the requirements of the safe harbor with respect to all Common Shares issued in connection with the performance of services while the safe harbor election remains effective.

(b) Vested Phantom Common Shares. The Company's obligation to make payments of Value upon a Liquidation Transaction shall apply only to Vested Phantom Common Shares that are outstanding at the time of the Liquidation Transaction. The applicable Phantom Common Share Agreement and Schedule of Members will set forth the vesting schedule, if any, of a Phantom Common Share Holder with respect to its Phantom Common Shares. In the event that the Phantom Common Share Holder is subject to vesting with respect to its Phantom Common Shares, such Phantom Common Share Holder must continually remain an employee, consultant, advisor or Manager of the Company or an Affiliate in order to vest in the Phantom Common Shares according to the vesting schedule, and a Phantom Common Share Holder who terminates his or her service relationship for any reason or for no reason (including due to the Phantom Common Share Holder's death), or whose service relationship is terminated by the Company or an Affiliate for any reason whatsoever or for no reason (including due to the Phantom Common Share Holder's death) prior to the vesting of the particular Phantom Common Shares, then the Phantom Common Share Holder shall forfeit his or her unvested portion of the Phantom Common Share Holder for no consideration. Any such forfeited Phantom Common Shares shall be available for issuance by the Company. Notwithstanding the foregoing, the Board of Managers may authorize, and the Company may enter into, written agreements which accelerate the vesting of certain Phantom Common Shares upon certain specified events, and the Board of Managers may independently accelerate the vesting of certain Phantom Common Shares. Further, unless otherwise provided in the applicable Phantom Common Share Agreement or by the Board of Managers, Phantom Common Shares, Vested and unvested, shall be forfeited for no consideration if the Phantom Common Share Holder's service provider relationship terminates for any reason or for no reason (including due to the Phantom Common Share Holder's death) prior to the closing of a Liquidation Transaction. In either case, following the forfeiture of unvested Phantom Common Shares or Vested Phantom Common Shares, the Phantom Common Share Holder shall not be entitled to receive any payments with respect to such Phantom Common Shares.

(c) Settlement Upon Liquidation Transaction. Unless otherwise provided in the applicable Phantom Common Share Agreement, Vested Phantom Common Shares shall be settled in connection with the closing of a Liquidation Transaction on the same schedule and subject to the same terms and conditions as apply to distributions to holders of Common Shares in the Company pursuant to Section 6.6(a)(ii) pursuant to a Liquidation Transaction; provided that the amounts settled by the Company must be paid no later than five (5) years after the closing of the Liquidation Transaction and shall otherwise comply with Treasury Regulation Section 1.409A-3(i)(5)(iv) to the extent applicable. Any payments made by the Company to a Phantom Common Share Holder with respect to its Phantom Common Shares shall be treated for applicable income tax purposes as a compensation payment. Unless otherwise provided in the applicable Phantom Common Share Agreement, the Company will have no obligation to make any payments to Phantom Common Share Holders with respect to Vested Phantom Common Shares, and no Phantom Common Share Holder will have any right to receive such payments, unless and until the Company closes a Liquidation Transaction and the Phantom Common Share Holder continuously remains a service

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provider of the Company or an Affiliate through the closing of the Liquidation Transaction. Payment of the Value of Vested Phantom Common Shares shall be made in cash or by the issuance of securities or other consideration as determined by the Board of Managers in compliance with Section 409A of the Code.

(d) **Withholding.** A Phantom Common Share Holder shall make arrangements satisfactory to the Company for the satisfaction of any applicable withholding tax obligations, if any, of the Company or an Affiliate that may arise in connection with his or her Phantom Common Shares, including any payment made with respect to the Phantom Common Shares. In addition, all payments made to a Phantom Common Share Holder shall be net of an amount sufficient to satisfy any income, employment or other tax withholding requirements of any government or governmental unit having tax jurisdiction over the payment, and, in the discretion of the Board of Managers, the Phantom Common Share Holders may be responsible for the Company's portion of any income, employment or other tax withholding requirements of any government with respect to the payments made to the Phantom Common Share Holders. If the cash payment is insufficient to satisfy such withholding obligations, the Company may withhold from other payments owed to the Phantom Common Share Holder or require the Phantom Common Share Holder to pay such obligations.

3.3 **Initial Capital Contributions.** Each Member shall contribute such property and cash as set forth on the Schedule of Members as its initial Capital Contribution, and will hold the number of Shares as set forth on the Schedule of Members. The initial Members are contributing stock of Blokable, Inc. as their initial Capital Contributions.

3.4 **Additional Capital Contributions.** Additional Capital Contributions shall be made only with the approval of the Board of Managers.

3.5 **Capital Accounts.** The Company shall establish and maintain an individual Capital Account for each Member in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv). If a Member transfers all or a part of its Shares in accordance with this Agreement, such Member's Capital Account attributable to the transferred Shares shall carry over to the new owner of such Shares pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(I).

3.6 **Schedules.** The Board of Managers shall be authorized, without the prior consent of the Members, to update Exhibit A to this Agreement from time to time to reflect the admission to or removal from the Company of its Members.

# 3.7 Rights Regarding Capital Contributions.

(a) No Member shall be entitled to interest on any Capital Contribution, and no Member shall have the right to withdraw or to demand the return of all or any part of its Capital Contribution, except as specifically provided in this Agreement.

(b) Under circumstances requiring a return of any Capital Contribution, no Member shall have the right to receive property, other than cash, except as may be specifically provided herein.

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(c) No Member shall have personal liability for the repayment of the Capital Contribution of any Member or any obligation to make loans or advances to the Company, including restoration of a deficit Capital Account as provided in Section 3.8.

3.8 Deficit Capital Accounts. Notwithstanding anything to the contrary contained in this Agreement, and notwithstanding any custom or rule of law to the contrary, to the extent that any Member's Capital Account has a deficit balance upon dissolution of the Company, such deficit shall not be an asset of the Company and such Member shall not be obligated to contribute such amount to the Company to bring the balance of such Member's Capital Account to zero.

# 3.9 Conversion Rights of Preferred Shares.

(a) Right to Convert. Each Preferred Share shall be convertible, at the option of the holder thereof, at any time into such number of fully paid and nonassessable Common Shares as is determined by dividing (i) in the case of the Series Seed Preferred Shares, $4.5113 by the Series Seed Conversion Price, determined as hereafter provided, in effect on the date such Series Seed Preferred Share is surrendered for conversion and (ii) in the case of the Series A Preferred Shares, $4.52 by the Series A Conversion Price, determined as hereafter provided, in effect on the date such Series A Preferred Share is surrendered for conversion. The initial Series Seed Conversion Price shall be $4.5113 for each Series Seed Preferred Share. The initial Series A Conversion Price shall be $4.52 for each Series A Preferred Share.

(b) Automatic Conversion. The Preferred Shares shall automatically convert to Common Shares at the then-applicable Conversion Price upon (a) the election of a Preferred Majority, or (b) the closing of a Qualified IPO.

(c) Mechanics of Conversion. Before a Preferred Member shall be entitled to convert its Preferred Shares into Common Shares, it shall give written notice to the Company at its principal corporate office, of the election to convert the same and shall state therein the number of Preferred Shares it elects to convert. Such conversion shall be deemed to have been made immediately prior to the close of business on the date of delivery of such notice (unless another effective date is specified), and the person or persons entitled to receive the Common Shares issuable upon such conversion shall be treated for all purposes as the record holder or holders of such Common Shares as of such date. The Board of Managers shall be authorized, without the prior consent of the Members, to update Exhibit A to this Agreement from time to time to reflect any conversion of Preferred Shares. The number of authorized Common Shares shall automatically and with no further action required be increased by the number of Common Shares into which any Preferred Shares actually convert. No fractional Shares shall be issued upon the conversion of any Preferred Shares, and the number of Common Shares to be issued shall be rounded to the nearest whole Share.

(d) Adjustment to Conversion Price. The Conversion Price of the Preferred Shares shall be adjusted as set forth on Exhibit C.

3.10 'Market Stand-Off' Agreement. Each Member hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of any Shares or any

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other equity securities under the Securities Act on a registration statement on Form S-1 or Form S-3, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days in the case of the initial public offering, or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports, and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2241, or any successor provisions or amendments thereto), or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions on (1) the publication or other distribution of research reports and (2) analyst recommendations and opinions, including, but not limited to, the restrictions contained in FINRA Rule 2241 or any successor provisions or amendments thereto), (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or indirectly, any Shares or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Shares (whether such shares or any such securities are then owned by the Member or are thereafter acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Shares or other securities, in cash, or otherwise. The foregoing provisions of this Section 3.10 shall apply only to the initial public offering, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, or the transfer of any shares to any trust for the direct or indirect benefit of the Member or the immediate family of the Member, provided that the trustee of the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, and shall be applicable to the Members only if all officers and directors are subject to the same restrictions and the Company uses commercially reasonable efforts to obtain a similar agreement from all stockholders individually owning more than one percent (1%) of the Company's outstanding Shares (after giving effect to conversion into Common Shares of all outstanding Preferred Shares). The underwriters in connection with such registration are intended third-party beneficiaries of this Section 3.10 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Member further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with such registration that are consistent with this Section 3.10 or that are necessary to give further effect thereto. Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Company stockholders that are subject to such agreements, based on the number of shares subject to such agreements.

3.11 Information Rights. The Company shall deliver to each Major Holder, provided that the Board of Managers, including a majority of the Series A Managers, has not reasonably determined that such Major Holder is a competitor of the Company:

(a) as soon as practicable, but in any event within one hundred eighty (180) days after the end of each Fiscal Year of the Company (i) a balance sheet as of the end of such year, (ii) statements of income and of cash flows for such year, and (iii) a statement of Members' equity as of the end of such year, all prepared in accordance with GAAP;

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(b) as soon as practicable, but in any event within forty five (45) days after the end of each of the first three (3) quarters of each Fiscal Year of the Company, unaudited statements of income and cash flows for such fiscal quarter, and an unaudited balance sheet as of the end of such fiscal quarter, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments; and (ii) not contain all notes thereto that may be required in accordance with GAAP);

(c) as soon as practicable, but in any event within thirty (30) days of the end of each month, an unaudited income statement and statement of cash flows for such month, and an unaudited balance sheet as of the end of such month, all prepared in accordance with GAAP (except that such financial statements may (i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with GAAP);

(d) as soon as practicable, but in any event thirty (30) days before the end of each Fiscal Year, a budget and business plan for the next Fiscal Year, prepared on a monthly basis, including balance sheets, income statements, and statements of cash flow for such months and, promptly after prepared, any other budgets or revised budgets prepared by the Company; and

(e) such other information relating to the financial condition, business, prospects, or corporate affairs of the Company as any Major Holder may from time to time reasonably request; provided, however, that the Company shall not be obligated under this Section 3.11 to provide information (i) that the Company reasonably determines in good faith to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in a form acceptable to the Company); or (ii) the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

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

Notwithstanding anything else in this Section 3.11 to the contrary, the Company may cease providing the information set forth in this Section 3.11 during the period starting with the date sixty (60) days before the Company's good-faith estimate of the date of filing of a registration statement if it reasonably concludes it must do so to comply with the Securities and Exchange Commission rules applicable to such registration statement and related offering; provided that the Company's covenants under this Section 3.11 shall be reinstated at such time as the Company is no longer actively employing its commercially reasonable efforts to cause such registration statement to become effective.

3.12 Inspection. The Company shall permit each Major Holder (provided that the Board of Managers, including a majority of the Series A Managers, has not reasonably determined that such Major Holder is a competitor of the Company), at such Major Holder's expense, to visit and inspect the Company's properties; examine its books of account and records; and discuss the Company's affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Major Holder; provided, however, that the Company shall not be obligated pursuant to this Section 3.12 to provide access to any information

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that it reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel.

### 3.13 Preemptive Rights.

(a) Subject to the terms and conditions of this Section 3.13 and applicable securities laws, if the Company proposes to offer or sell any Additional Shares, the Company shall first offer such Additional Shares to each Major Holder. A Major Holder shall be entitled to apportion the right of first offer hereby granted to it in such proportions as it deems appropriate, among itself and its Affiliates.

(b) The Company shall give notice (the “Offer Notice”) to each Major Holder, stating (i) its bona fide intention to offer such Additional Shares, (ii) the number of such Additional Shares to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such Additional Shares.

(c) By notification to the Company within twenty (20) days after the Offer Notice is given, each Major Holder may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to that portion of such Additional Shares which equals the proportion that the Common Shares then held by such Major Holder (including all Common Shares then issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Shares and any other Options or Convertible Securities then held by such Major Holder) bears to the total Common Shares of the Company then outstanding (assuming full conversion and/or exercise, as applicable, of all Preferred Shares and any other Options or Convertible Securities then outstanding). At the expiration of such twenty (20) day period, the Company shall promptly notify each Major Holder that elects to purchase or acquire all the Additional Shares available to it (each, a “Fully Exercising Holder”) of any other Major Holder’s failure to do likewise. During the ten (10) day period commencing after the Company has given such notice, each Fully Exercising Holder may, by giving notice to the Company, elect to purchase or acquire, in addition to the number of Additional Shares specified above, up to that portion of the Additional Shares for which Major Holders were entitled to subscribe but that were not subscribed for by the Major Holders which is equal to the proportion that the Common Shares issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of Preferred Shares and any other Options or Convertible Securities then held, by such Fully Exercising Holder bears to the Common Shares issued and held, or issuable (directly or indirectly) upon conversion and/or exercise, as applicable, of the Preferred Shares and any other Options or Convertible Securities then held, by all Fully Exercising Holders who wish to purchase such unsubscribed Additional Shares. The closing of any sale pursuant to this Section 3.13(c) shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of Additional Shares pursuant to Section 3.13(d).

(d) If all Additional Shares referred to in the Offer Notice are not elected to be purchased or acquired as provided in Section 3.13(c), the Company may, during the ninety (90)

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day period following the expiration of the periods provided in Section 3.13(c), offer and sell the remaining unsubscribed portion of such Additional Shares to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the Additional Shares within such period, or if such agreement is not consummated within forty-five (45) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such Additional Shares shall not be offered unless first reoffered to the Major Holders in accordance with this Section 3.13.

(e) Notwithstanding any provision hereof to the contrary, in lieu of complying with the provisions of this Section 3.13, the Company may elect to give notice to the Major Holders within thirty (30) days after the issuance of Additional Shares. Such notice shall describe the type, price, and terms of the Additional Shares. Each Major Holder shall have twenty (20) days from the date notice is given to elect to purchase up to the number of Additional Shares that would, if purchased by such Major Holder, maintain such Major Holder's percentage-ownership position, calculated as set forth in Section 3.13(c) before giving effect to the issuance of such Additional Shares.

(f) The covenants set forth in Section 3.13 shall terminate and be of no further force or effect (i) immediately before the consummation of the Company's first underwritten public offering of its securities under the Securities Act, (ii) when the Company first becomes subject to the periodic reporting requirements of Section 12(g) or 15(d) of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'), and the rules and regulations promulgated thereunder, or (iii) upon the closing of a Liquidation Transaction, whichever event occurs first.

### 3.14 Drag-Along Provision.

(a) Definition. A 'Sale of the Company' shall mean either: (a) a transaction or series of related transactions in which a Person, or a group of related Persons, acquires from Members of the Company shares representing more than fifty percent (50%) of the outstanding voting power of the Company (a 'Share Sale'); or (b) a transaction that qualifies as a Liquidation Transaction.

(b) Drag-Along Rights. In the event that (i) the Preferred Majority (the 'Selling Investors'); (ii) the Board of Managers; and (iii) the holders of a majority of the then outstanding Common Shares (other than those issued or issuable upon conversion of the shares of Preferred Shares) held by the Key Holders who are then providing services to the Company as officers, employees or consultants, voting as a separate class (collectively, (i)-(iii) are the 'Electing Members') approve a Sale of the Company in writing, specifying that this Section 3.14 shall apply to such transaction, then, subject to satisfaction of each of the conditions set forth in Section 3.14(c) below, each Member and the Company hereby agree:

(i) if such transaction requires Member approval, with respect to all Shares that such Member owns or over which such Member otherwise exercises voting power, to vote (in person, by proxy or by action by written consent, as applicable) all Shares in favor of, and adopt, such Sale of the Company (together with any related amendment or restatement of this Agreement required to implement such Sale of the Company) and to vote in opposition to any and

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all other proposals that could delay or impair the ability of the Company to consummate such Sale of the Company;

(ii) if such transaction is a Share Sale, to sell the same proportion of shares of securities of the Company beneficially held by such Member as is being sold by the Selling Investors to the Person to whom the Selling Investors propose to sell their Shares, and, except as permitted in Section 3.14(c) below, on the same terms and conditions as the other Members of the Company;

(iii) to execute and deliver all related documentation and take such other action in support of the Sale of the Company as shall reasonably be requested by the Company or the Selling Investors in order to carry out the terms and provision of this Section 3.14, including, without limitation, executing and delivering instruments of conveyance and transfer, and any purchase agreement, merger agreement, any associated indemnity agreement, or escrow agreement, any associated voting, support, or joinder agreement, consent, waiver, governmental filing, share certificates duly endorsed for transfer (free and clear of impermissible liens, claims and encumbrances), and any similar or related documents;

(iv) not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any Shares of the Company owned by such party or Affiliate in a voting trust or subject any Shares to any arrangement or agreement with respect to the voting of such Shares, unless specifically requested to do so by the acquirer in connection with the Sale of the Company;

(v) to refrain from exercising any dissenters' rights or rights of appraisal under applicable law at any time with respect to such Sale of the Company, or the consummation of the transactions contemplated thereby;

(vi) if the consideration to be paid in exchange for the Shares pursuant to this Section 3.14 includes any securities and due receipt thereof by any Member would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities; or (y) the provision to any Member of any information other than such information as a prudent issuer would generally furnish in an offering made solely to 'accredited investors' as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Member in lieu thereof, against surrender of the Shares which would have otherwise been sold by such Member, an amount in cash equal to the fair value (as determined in good faith by the Board of Managers) of the securities which such Member would otherwise receive as of the date of the issuance of such securities in exchange for the Shares; and

(vii) in the event that the Selling Investors, in connection with such Sale of the Company, appoint a Member representative (the 'Member Representative') with respect to matters affecting the Members under the applicable definitive transaction agreements following consummation of such Sale of the Company, (x) to consent to (i) the appointment of such Member Representative, (ii) the establishment of any applicable escrow, expense or similar fund in connection with any indemnification or similar obligations, and (iii) the payment of such Member's pro rata portion (from the applicable escrow or expense fund or otherwise) of any and

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all reasonable fees and expenses to such Member Representative in connection with such Member Representative's services and duties in connection with such Sale of the Company and its related service as the representative of the Members, and (y) not to assert any claim or commence any suit against the Member Representative or any other Member with respect to any action or inaction taken or failed to be taken by the Member Representative, within the scope of the Member Representative's authority, in connection with its service as the Member Representative, absent fraud, bad faith, or willful misconduct.

(c) Conditions. Notwithstanding anything to the contrary set forth herein, a Member will not be required to comply with Section 3.14(b) above in connection with any proposed Sale of the Company (the 'Proposed Sale'), unless:

(i) any representations and warranties to be made by such Member in connection with the Proposed Sale are limited to representations and warranties related to authority, ownership and the ability to convey title to such Shares, including, but not limited to, representations and warranties that (i) the Member holds all right, title and interest in and to the Shares such Member purports to hold, free and clear of all liens and encumbrances, (ii) the obligations of the Member in connection with the transaction have been duly authorized, if applicable, (iii) the documents to be entered into by the Member have been duly executed by the Member and delivered to the acquirer and are enforceable (subject to customary limitations) against the Member in accordance with their respective terms; and (iv) neither the execution and delivery of documents to be entered into by the Member in connection with the transaction, nor the performance of the Member's obligations thereunder, will cause a breach or violation of the terms of any agreement to which the Member is a party, or any law or judgment, order or decree of any court or governmental agency that applies to the Member;

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

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

(iv) upon the consummation of the Proposed Sale (i) each holder of each class or series of the securities of the Company will receive the same form of consideration for their shares of such class or series as is received by other Members in respect of their shares of such same class or series of securities, (ii) each holder of a series of Preferred Shares will receive the same amount of consideration per share of such series of Preferred Shares as is received by other Members in respect of their shares of such same series, (iii) each holder of Common Shares will receive the same amount of consideration per Common Share as is received by other Members

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in respect of their Common Shares, and (iv) unless waived pursuant to the terms of this Agreement and as may be required by law, the aggregate consideration receivable by all holders of the Preferred Shares and Common Shares shall be distributed among the holders of Preferred Shares and Common Shares on the basis of the relative liquidation preferences to which the holders of each respective series of Preferred Shares and the holders of Common Shares are entitled in a Liquidation Transaction (assuming for this purpose that the Proposed Sale is a Liquidation Transaction) in accordance with Section 6.6 of this Agreement in effect immediately prior to the Proposed Sale; provided, however, that, notwithstanding the foregoing provisions of this Section 3.14(c)(iv) if the consideration to be paid in exchange for the Shares pursuant to this Section 3.14(c)(iv) includes any securities and due receipt thereof by any Member would require under applicable law (x) the registration or qualification of such securities or of any person as a broker or dealer or agent with respect to such securities; or (y) the provision to any Member of any information other than such information as a prudent issuer would generally furnish in an offering made solely to “accredited investors” as defined in Regulation D promulgated under the Securities Act, the Company may cause to be paid to any such Member in lieu thereof, against surrender of the Shares, which would have otherwise been sold by such Member, an amount in cash equal to the fair value (as determined in good faith by the Board of Managers) of the securities which such Member would otherwise receive as of the date of the issuance of such securities in exchange for the Shares;

(v) subject to clause (iv) above, requiring the same form of consideration to be available to the holders of any single class or series of securities, if any holders of any securities of the Company are given an option as to the form and amount of consideration to be received as a result of the Proposed Sale, all holders of such securities will be given the same option; provided, however, that nothing in this Section 3.14(c)(v) shall entitle any Member to receive any form of consideration that such Member would be ineligible to receive as a result of such Member’s failure to satisfy any condition, requirement or limitation that is generally applicable to the Company’s Members.

(d) Irrevocable Proxy and Power of Attorney. If a Member fails or refuses to vote or sell such Member’s Shares of the Company as required by, or votes such Shares in contravention of, this Section 3.14, then each such Member hereby grants to the Chief Executive Officer (or to any Co-CEO) or its designee an irrevocable proxy, coupled with an interest (in the form attached hereto as Exhibit D) as such Member’s attorney-in-fact, (the “Attorney-in-Fact”), to vote and sell such Shares in accordance with this Section 3.14, and to sell such Shares in accordance with the terms of this Section 3.14. In the event the Attorney-in-Fact is unable or unwilling to act as attorney in fact as set forth in Section 3.14, the Members holding a Threshold Interest shall be entitled to appoint a new attorney in fact. If such Shares are not surrendered within five (5) days following the delivery of a request for such action, such Shares shall, without any further action by or on behalf of any party, be deemed to have been effectively transferred, and all monies payable to such Member shall be held in escrow by the Company until paid to such Member following written request therefor by such Member.

(e) Restrictions on Sales of Control of the Company. No Member shall be a party to any Share Sale unless (a) all holders of Preferred Shares are allowed to participate in such transaction(s) and (b) the consideration received pursuant to such transaction is allocated among the parties thereto in the manner specified in this Agreement in effect immediately prior to the

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Share Sale (as if such transaction(s) were a Liquidation Transaction), unless the holders of a Preferred Majority elect to allocate the consideration differently by written notice given to the Company prior to the effective date of any such transaction or series of related transactions.

3.15 Registration Rights. The Company hereby grants to each Preferred Member the registration rights described on Exhibit E hereto (which Exhibit is hereby incorporated by reference in its entirety).

## ARTICLE IV

4.1 Procedures for Admission. To effect the admission of a Member (including any Additional Member) to the Company, the Board of Managers shall require the Person to be so admitted to the Company to execute and deliver a counterpart signature page to this Agreement specifying the date of admission, such Person’s name and address, such Person’s Capital Contribution (if any) and the number and series of Shares acquired thereby. The Board of Managers shall attach such counterpart signature page as a signature page to this Agreement.

4.2 Limited Liability. Except as required by law, no Member shall be personally liable for any debt, obligation, or liability of the Company, whether that liability or obligation arises in contract, tort, or otherwise.

4.3 Withdrawals or Resignations. No Member shall have the right or power to voluntarily withdraw or resign as a Member from the Company.

4.4 No Fiduciary Standard. No Member (other than in its capacity as a Manager or officer of the Company, as set forth in Section 5.5) shall have any fiduciary duties to the Company or any other Member or group of Members, other than to the extent required by the Act as in effect on the date of this Agreement. No amendment to the Act or judicial decision under the Act will have the effect of expanding the fiduciary duties of a Member.

4.5 Transactions with the Company. With the prior approval of the Board of Managers, a Member may lend money to, lease property from, contract to provide services to, and transact other business with the Company. Subject to applicable law, such Member has the same rights and obligations with respect thereto as a Person who is not a Member.

4.6 Remuneration to Members. No Member, acting in such capacity, is entitled to remuneration for acting in the Company business.

4.7 Members are not Agents. Pursuant to Section 5.1 and the Certificate of Formation, the management of the Company is vested in the Board of Managers. The Members shall have no power to participate in the management of the Company except as expressly authorized by this Agreement or the Certificate of Formation and except as expressly required by the Act. No Member, acting solely in the capacity of a Member, is an agent of the Company nor does any Member, unless expressly and duly authorized in writing to do so by the Board of Managers, have any power or authority to bind or act on behalf of the Company in any way, to pledge its credit, to execute any instrument on its behalf or to render it liable for any purpose.

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4.8 Voting Rights. Except as expressly provided in this Agreement or the Certificate of Formation, Members shall have no voting, approval or consent rights. All Shares shall be voting, other than Shares issued under the Plan that are unvested or subject to a repurchase option in favor of the Company. Except as provided in this Agreement, the Common Shares and Preferred Shares shall vote together on an as-converted basis and not as separate classes. For purposes of determining the voting interest of a Member, a Member's voting power shall be based upon the number of Shares held on an as-converted basis.

4.9 Certificate of Shares. The Company will not issue certificates for Shares issued.

4.10 Meetings of and Voting by Members.

(a) A meeting of the Members may be called at any time by Members holding a Threshold Interest or by the Board of Managers. Meetings of the Members shall be held upon four (4) days' notice by first-class mail or 48 hours' notice given personally or by telephone, telegraph, facsimile, telex, e-mail, or other similar means of communication. Any such notice shall be addressed or delivered to each Member entitled to vote at such Member's address as it is shown upon the records of the Company. Notice by mail shall be deemed to have been given at the time a written notice is deposited in the United States mails, postage prepaid. Any other written notice shall be deemed to have been given at the time it is personally delivered to the recipient or is delivered to a common carrier for transmission, or actually transmitted by the person giving the notice by electronic means, to the recipient. Oral notice shall be deemed to have been given at the time it is communicated, in person or by telephone or wireless, to the recipient or to a person at the office of the recipient who the person giving the notice has reason to believe will promptly communicate it to the receiver. Except to the extent that this Agreement expressly requires the approval of a different group of Members, every act or decision done or made by the Members holding a Threshold Interest shall be the act of the Members.

(b) Members may participate in a meeting through use of conference telephone, electronic video screen communication, or other communications equipment, so long as all members participating in such meeting can hear one another.

(c) Any action required or permitted to be taken by the Members may be taken without a meeting, if a consent in writing, setting forth the action so taken, is signed by the Members having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all Shares entitled to vote thereon were present and voted. Such action by written consent shall have the same force and effect as an approval of the Members.

(d) The provisions of this Section 4.10 govern meetings of the Members if the Members elect, in their discretion, to hold meetings. However, nothing in this Section 4.10 or in this Agreement is intended to require that meetings of the Members be held, it being the intent of the Members that meetings of the Members are not required.

## **MANAGEMENT AND CONTROL OF THE COMPANY**

5.1 Management of the Company by Board of Managers. Subject to the provisions of Section 5.4 of this Agreement, the business, property and affairs of the Company shall be managed

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by, and all powers of the Company shall be exercised by or under the direction of, the Board of Managers.

5.2 Meetings of Board of Managers. Meetings of the Board of Managers may be called by any Manager, Chief Executive Officer or the Secretary. All meetings shall be held upon at least two (2) business days' notice delivered personally or by telephone, e-mail or facsimile. A notice need not specify the purpose of any meeting. Notice of a meeting need not be given to any Manager who signs a waiver of notice or a consent to holding the meeting (which waiver or consent need not specify the purpose of the meeting) or an approval of the minutes thereof, whether before or after the meeting, or who attends the meeting without protesting, prior to its commencement, the lack of notice to such Manager. All such waivers, consents and approvals shall be filed with the Company records or made a part of the minutes of the meeting. A majority of the Managers present, whether or not a quorum is present, may adjourn any meeting to another time and place. If the meeting is adjourned for more than twenty-four (24) hours, notice of any adjournment shall be given prior to the time of the adjourned meeting to the Managers who are not present at the time of the adjournment. Meetings of the Board of Managers may be held at any place within or without the State of Delaware which has been designated in the notice of the meeting or at such place as may be approved by the Board of Managers. Managers may participate in a meeting through use of conference telephone or similar communications equipment, so long as all Managers participating in such meeting can hear one another. Participation in a meeting in such manner constitutes a presence in person at such meeting. A majority of the authorized number of Managers constitutes a quorum of the Board of Managers for the transaction of business. Except to the extent that this Agreement expressly requires the approval of all Managers, every act or decision done or made by a majority of the Managers present at a meeting duly held at which a quorum is present is the act of the Board of Managers. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of Managers, if any action taken is approved by at least a majority of the required quorum for such meeting.

Any action required or permitted to be taken by the Board of Managers may be taken by the Board of Managers without a meeting, if all of the Managers individually or collectively consent in writing to such action. Such action by written consent shall have the same force and effect if taken at meeting of the Board of Managers.

The provisions of this Section 5.2 govern meetings of the Board of Managers if the Managers elect, in their discretion, to hold meetings. However, nothing in this Section 5.2 or in this Agreement is intended to require that meetings of Board of Managers be held, it being the intent of the Members that meetings of Managers are not required.

### 5.3 Election of Managers.

(a) Number, Term and Qualifications. The number of Managers on the Board of Managers of the Company shall be five (5) and, subject to the remainder of this Section 5.3, shall include (i) two (2) representatives of the holders of a majority of the Common Shares, (A) one of whom shall be designated by Aaron Holm ('Holm'), for so long as (1) Holm and his Affiliates collectively hold at least 50% of the Shares held by Holm and his Affiliates as of the date of this Agreement (subject to appropriate adjustment in the event of any Share split, Share distribution, combination or similar transaction) and (2) Holm is then providing services to the

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Company as an officer, employee or consultant, who shall initially be Holm, and (B) the other of whom shall be designated by Nelson Del Rio (“Del Rio”), for so long as (1) Del Rio, his Affiliates (which shall include, without limitation, The Del Rio Irrevocable Trust I and/or Del Rio Holdings LLC (the “Del Rio Trusts”), and any nonprofit organization to which Del Rio transfers Common Shares issued to him by the Company on or before the date of this Agreement (subject to appropriate adjustment in the event of any Share split, Share distribution, combination or similar transaction), collectively hold at least 50% of the Shares held by Del Rio and his Affiliates (which shall include, without limitation, the Del Rio Trusts) as of the date of this Agreement and (2) Del Rio is then providing services to the Company as an officer, employee or consultant, who shall initially be Nelson Del Rio, (ii) two (2) representatives of the holders of a majority of the Series A Preferred Shares, (A) one of whom shall be designated by VCVC IV LLC (together with its Affiliates, “Vulcan”), for so long as Vulcan continues to own beneficially at least 243,363 Common Shares (including Common Shares issued or issuable upon conversion of the Preferred Shares), subject to appropriate adjustment for any Share split, Share distribution, combination or similar transaction, which individual shall initially be Yongbai Choi, and (B) the other of whom shall be designated from time to time by the holders of a majority of the then-outstanding Series A Preferred Shares, voting together as a separate class, for so long as at least 1,000,000 Series A Preferred Shares remain outstanding, subject to appropriate adjustment for Share split, Share distribution, combination or similar transaction, which individual shall initially be Mitchell Kapor (together, the “Series A Managers”) and (iii) one (1) individual designated by The LAUNCH Fund I, L.P. or its Affiliates (collectively, “LAUNCH”) for so long as LAUNCH holds Shares that represent at least ten percent (10%) of the Company’s outstanding, fully diluted capitalization (on an as-converted, as-exercised basis), which individual shall initially be Jason Calacanis. Except as otherwise provided herein, any party may change its representative, or appoint an alternate representative to attend meetings of the Managers and vote on its behalf when its primary representative is unavailable, at any time upon written notice to the Company. Each Manager shall serve until the earlier of (i) the election of such Manager’s successor, (ii) the removal of such Manager in accordance with this Agreement, (iii) such Manager’s resignation or (iv) such Manager’s death. A Manager may, but need not be, a Member. To the extent that any of the conditions to designation in clauses (i) - (iii) above shall not be satisfied, then the corresponding Manager shall be designated by: the holders of a majority of the Common Shares, in the case of clause (i); the holders of a majority of the Series A Preferred Shares, in the case of clause (ii); and by the holders of a majority of all Shares voting as a single class on an as-converted basis, in the cause of clause (iii).

(b) Resignation. Any Manager may resign at any time by giving written notice to the Members and remaining Managers. The resignation of any Manager shall take effect upon receipt of that notice or at such later time as shall be specified in the notice. Unless otherwise specified in the notice, the acceptance of the resignation shall not be necessary to make it effective.

(c) Removal. Any Manager may be removed at any time, with or without cause, by the affirmative vote or written consent of the Member(s) entitled to elect such Manager pursuant to Section 5.3(a) above.

(d) Vacancies. Subject to 5.3(a) above, any vacancy occurring for any reason on the Board of Managers may be filled by the affirmative vote or written consent of the Member(s) entitled to elect such Manager pursuant to Section 5.3(a) above.

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#### 5.4 Powers of Managers and Chief Executive Officer.

(a) **Powers of the Chief Executive Officer.** Subject to the provisions of Section 5.4(c), and except as may be otherwise expressly stated in this Agreement, the Chief Executive Officer (which shall mean one or more chief executive officers of the Company as appointed by the Board of Managers, initially Aaron Holm and Nelson Del Rio) is hereby granted, under the supervision of the Board of Managers, the right, power and authority to manage the day-to-day operations of the Company and to do on behalf of the Company all things determined by the Chief Executive Officer to be necessary or desirable to carry out his duties and responsibilities, including (without limitation) the right, power and authority from time to time to do the following:

(i) To borrow money in the name and on behalf of the Company, and to secure any such loans by a mortgage, pledge or other encumbrance upon any assets of the Company;

(ii) To cause to be paid all amounts due and payable by the Company to any person or entity;

(iii) To employ such agents, employees, managers, accountants, attorneys, consultants and other persons necessary or appropriate to carry out the business and affairs of the Company, to delegate by express action any powers of the Chief Executive Officer enumerated herein, and to pay to such persons such fees, expenses, salaries, wages and other compensation as he shall in his sole discretion determine;

(iv) To pay, extend, renew, modify, adjust, subject to arbitration, prosecute, defend or compromise, upon such terms as he may determine and upon such evidence as he may deem sufficient, any obligation, suit, liability, cause of action or claim, including taxes, either in favor of or against the Company;

(v) To pay any and all fees and to make any and all expenditures which he deems necessary or appropriate in connection with the organization of the Company, the management of the affairs of the Company and the carrying out of his obligations and responsibilities under this Agreement;

(vi) To the extent that funds of the Company are, in the Chief Executive Officer's judgment, not immediately required for the conduct of the Company's business, temporarily to deposit the excess funds in such bank account or accounts, or invest such funds in such interest-bearing taxable or nontaxable investments, as the Chief Executive Officer shall deem appropriate;

(vii) To acquire, prosecute, maintain, protect and defend or cause to be protected and defended all patents, patent rights, trade names, trademarks, copyrights and service marks, all applications with respect thereto and all proprietary information which may be held by the Company;

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(viii) To enter into, execute, acknowledge and deliver any and all contracts, agreements or other instruments necessary or appropriate to carry on the business of the Company as set forth herein;

(ix) To cause to be paid any and all taxes, charges and assessments that may be levied, assessed or imposed upon any of the assets of the Company, unless the same are contested by the Company;

(x) Except to the extent otherwise provided herein, to make all elections and decisions of a tax and accounting nature required or permitted on behalf of the Company, tax elections and decisions of the “Partnership Representative” in accordance with Section 5.10; and

(xi) To acquire real and personal property in the name of the Company.

(b) **Powers of Managers.** Each Manager shall participate in the direction, management and control of the business of the Company to the best of such Manager’s ability. The Managers shall in all cases act as a group and shall have no authority to act individually, unless such authority is expressly delegated to one or more Managers or a committee thereof by the Board of Managers. Without limiting the generality of Section 5.1, but subject to Section 5.4(c), and to the express limitations set forth elsewhere in this Agreement, the Board of Managers shall have all necessary powers to manage and carry out the purposes, business, property, and affairs of the Company, including, without limitation, the power to exercise on behalf and in the name of the Company all of the powers described in the Act.

(c) **Limitations on Power of Managers and Chief Executive Officer - Preferred Majority.** Notwithstanding any other provisions of this Agreement, and so long as at least 1,000,000 of the Series A Preferred Shares (as adjusted for any Share split, Share distribution, combination or similar transaction) remain outstanding, neither the Board of Managers nor the Chief Executive Officer shall have any authority hereunder to cause the Company to engage in the following transactions (by amendment, merger, consolidation or otherwise) without first obtaining the affirmative vote or written consent of the Preferred Majority:

(i) liquidate, dissolve or wind-up the business and affairs of the Company, effect any merger or consolidation or any other Liquidation Transaction, or consent to any of the foregoing;

(ii) amend, alter or repeal any provision of this Agreement;

(iii) create, or authorize the creation of, or issue or obligate itself to issue Shares of, any additional class or series of securities unless the same ranks junior to the Preferred Shares with respect to Distributions upon a Liquidation Transaction, or create, or authorize the creation of, or issue or obligate itself to issue any security convertible into or exercisable for any such new class or series of securities;

(iv) increase or decrease the authorized number of Preferred Shares (or any series thereof) or Common Shares;

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(v) alter or change the powers, rights, preferences, privileges or restrictions of the Series Seed Preferred Shares or Series A Preferred Shares;

(vi) purchase or redeem (or permit any subsidiary to purchase or redeem) or make any Distribution on, any Shares other than (i) redemptions of or Distributions on the Preferred Shares as expressly authorized herein, (ii) Distributions payable on the Common Shares solely in the form of additional Common Shares and (iii) repurchases of Shares from former employees, officers, directors, consultants or other persons who performed services for the Company or any subsidiary in connection with the cessation of such employment or service at no greater than the original purchase price thereof or (iv) as approved by the Board of Managers, including a majority of the Series A Managers;

(vii) create, or authorize the creation of, or issue, or authorize the issuance of any debt security or create any lien or security interest (except for purchase money liens or statutory liens of landlords, mechanics, materialmen, workmen, warehousemen and other similar persons arising or incurred in the ordinary course of business) or incur other indebtedness for borrowed money, including but not limited to obligations and contingent obligations under guarantees, or permit any subsidiary to take any such action with respect to any debt security lien, security interest or other indebtedness for borrowed money, if the aggregate indebtedness of the Company and its subsidiaries for borrowed money following such action would exceed $3,000,000 other than equipment leases, bank lines of credit or trade payables incurred in the ordinary course unless such debt security has been approved by the Board of Managers, including the approval of a majority of the Series A Managers;

(viii) create, or hold securities in, any subsidiary that is not wholly owned (either directly or through one or more other subsidiaries) by the Company, or permit any subsidiary to create, or authorize the creation of, or issue or obligate itself to issue, any shares of any class or series of securities, or sell, transfer or otherwise dispose of any securities of any direct or indirect subsidiary of the Company, or permit any direct or indirect subsidiary to sell, lease, transfer, exclusively license or otherwise dispose (in a single transaction or series of related transactions) of all or substantially all of the assets of such subsidiary, unless such action has been approved by the Board of Managers, including the approval of a majority of the Series A Managers;

(ix) increase the number of Shares reserved for issuance under the Plan or arrangements for the benefit of service providers, unless such increase has been approved by the Board of Managers, including the approval of a majority of the Series A Managers;

(x) consummate any acquisition of any other entity or all or substantially all of the assets of another entity (whether effected directly or indirectly by merger, consolidation, reorganization, asset acquisition or transfer, share exchange, swap or issuance, purchase tender offer, license or similar transaction or series of transactions) having a purchase price in excess of $2,000,000, unless such transaction has been approved by the Board of Managers, including the approval of a majority of the Series A Managers;

(xi) increase or decrease the authorized number of managers constituting the Board of Managers;

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(xii) make any Tax election or take any action under Section 5.10 that materially and disproportionately disadvantages any Preferred Member without such Preferred Member's consent (such consent not to be unreasonably withheld, delayed, or conditioned).

(d) Creation of Committees. The Board of Managers may create committees to assist the Board of Managers and the officers in the governance of areas of importance to the Company. Subject to the terms of this Agreement, such committees shall have such powers and perform such duties as may be prescribed by the resolutions creating such committees.

5.5 Performance of Duties; Liability of Managers and Officers; Fiduciary Standard. A Manager or officer of the Company shall not be liable to the Company or to any Member for any loss or damage sustained by the Company or any Member, unless the loss or damage shall have been the result of fraud, deceit, gross negligence, reckless or intentional misconduct, or a knowing violation of law by such Manager or officer of the Company. The Managers and the officers of the Company shall perform their managerial duties in good faith, in a manner they reasonably believe to be in the best interests of the Company and its Members, and with such care as an ordinarily prudent person in a like position would use under similar circumstances. The Members agree that the fiduciary duties of a Manager to the Company and its Members shall be those of a director to a corporation and its stockholders under the DGCL and not those of a partner to a partnership and its partners. Any Manager or officer of the Company who performs the duties of Manager or officer of the Company, as the case may be, in compliance with this Section 5.5 shall not have any liability by reason of being or having been a Manager or officer of the Company.

5.6 Devotion of Time. Managers are not obligated to devote all of their time or business efforts to the affairs of the Company. The Managers shall devote whatever time, effort, and skill as they deem appropriate for the operation of the Company.

5.7 Transactions between the Company and the Managers and Officers. Notwithstanding that it may constitute a conflict of interest, the Managers and the officers of the Company may, and may cause their Affiliates to, engage in any transaction (including, without limitation, the purchase, sale, lease, or exchange of any property or the rendering of any service, or the establishment of any salary, other compensation, or other terms of employment) with the Company so long as (i) such transaction is not expressly prohibited by this Agreement and the terms and conditions of such transaction, on an overall basis, are fair and reasonable to the Company and are at least as favorable to the Company as those that are generally available from Persons capable of similarly performing them and in similar transactions between parties operating at arm's length and (ii) such transaction has been approved by the Board of Managers, including a majority of the Managers (if any) that do not have a financial interest in such transaction.

5.8 Limited Liability. No entity or person who is a Manager or officer of the Company shall be personally liable under any judgment of a court, or in any other manner, for any debt, obligation, or liability of the Company, whether that liability or obligation arises in contract, tort, or otherwise, solely by reason of being a Manager or officer of the Company.

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## 5.9 Officers.

(a) Officers. The officers of the Company shall be appointed by the Board of Managers and shall consist of a Chief Executive Officer, Chief Financial Officer and a Secretary. The Board of Managers may also appoint a Treasurer, one or more Vice Presidents or Assistant Secretaries. Any number of offices may be held by the same person. The Board of Managers may appoint such other officers and agents as it shall deem necessary or advisable who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Board of Managers. The salaries of all officers and agents of the Company shall be fixed by or in the manner prescribed by the Board of Managers. The officers of the Company shall hold office until their successors are chosen and qualified. Any officer elected or appointed by the Board of Managers may be removed at any time, with or without cause, by the Board of Managers. Any vacancy occurring in any office of the Company shall be filled by the Board of Managers.

(b) Chief Executive Officer. The Chief Executive Officer of the Company shall, subject to the control of the Board of Managers, have general supervision, direction and control of the day-to-day business and affairs of the Company. The Chief Executive Officer shall preside at all meetings of the Members, unless the Board of Managers shall have appointed another person to so preside and such person is present. The Chief Executive Officer shall perform other duties commonly incident to a chief executive officer of a Delaware corporation and shall also perform such other duties and have such other powers as set forth in Section 5.4(a) or otherwise as the Board of Managers shall designate from time to time. The initial Chief Executive Officers of the Company shall be Aaron Holm and Nelson Del Rio.

(c) Chief Financial Officer or Treasurer. The Chief Financial Officer or Treasurer shall be responsible for ensuring that appropriate custodial arrangements are maintained with respect to the corporate funds and securities of the Company. The Chief Financial Officer or Treasurer shall keep full and accurate accounts of receipts and disbursements in books belonging to the Company and shall deposit all monies and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Chief Financial Officer or Treasurer shall disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and shall render to the Chief Executive Officer and to the Board of Managers, at its regular meetings or when the Board of Managers so requires, an account of all of the Chief Financial Officer's and Treasurer's transactions and of the financial condition of the Company. The Chief Financial or Treasurer shall perform other duties commonly incident to the office of Chief Financial Officer or Treasurer in a Delaware corporation and shall also perform such other duties and have such other powers as the Board of Managers or Chief Executive Officer shall designate from time to time. The initial Chief Financial Officer of the Company shall be Aaron Holm.

(d) Secretary and Assistant Secretary. The Secretary shall be responsible for filing legal documents and maintaining records for the Company. The Secretary shall attend all meetings of the Board of Managers and all meetings of the Members, if any, and record all the proceedings of the meetings of the Company and of the Board of Managers in a book to be kept for that purpose and shall perform like duties for the standing committees when required. The Secretary shall give, or cause to be given, notice of all meetings of the Members, if any, and special

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meetings of the Board of Managers, and shall perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer, under whose supervision the Secretary shall serve. The Assistant Secretary, or if there be more than one, the Assistant Secretaries in the order determined by the Board of Managers (or if there be no such determination, then in order of their election), shall, in the absence of the Secretary or in the event of the Secretary's inability to act, perform the duties and exercise the powers of the Secretary and shall perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. The initial Secretary of the Company shall be Aaron Holm.

(e) **Vice Presidents.** In the absence of the Chief Executive Officer or in the event of the Chief Executive Officer's inability to act, the Vice President, if any (or in the event there be more than one Vice President, the Vice Presidents in the order designated by the Board of Managers, or in the absence of any designation, then in the order of their election), shall perform the duties of the Chief Executive Officer, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chief Executive Officer. The Vice Presidents, if any, shall perform such other duties commonly incident to a vice president of a Delaware corporation and shall perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

(f) **Officers as Agents.** The officers, to the extent of their powers set forth in this Agreement or otherwise vested in them by action of the Board of Managers not inconsistent with this Agreement, are agents of the Company for the purpose of the Company's business, and the actions of the officers taken in accordance with such powers shall bind the Company.

5.10 **Partnership Representative.** Until the Board of Managers designates otherwise, Aaron Holm shall be the Partnership Representative of the Company as provided in the Treasury Regulations pursuant to Code Section 6231(a)(7), and shall be indemnified and reimbursed for all expenses, including legal and accounting fees, claims, liabilities, losses and damages incurred in connection with its serving in that capacity. Notwithstanding the preceding sentence, the Partnership Representative shall not be entitled to indemnification for such costs and expenses if such party has not acted in good faith. The Partnership Representative shall represent the Company (at the Company's expense) in connection with all examinations of the Company's affairs by tax authorities, including resulting judicial and administrative proceedings, and shall expend the Company funds for professional services and costs associated therewith. The Partnership Representative shall not cause or permit the Company to take any action or make any decision that would have a material adverse tax effect on the Company or any Member without the unanimous consent of the Board of Managers. The Partnership Representative shall act in a manner that does not disproportionately disadvantage any particular Preferred Member, relative to all other Members. The Company shall not elect to be treated as an association taxable as a corporation for U.S. federal, state or local income tax purposes under Treasury Regulations Section 301.7701-3(a) or under any corresponding provision of state or local law without the unanimous consent of the Board of Managers.

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## ALLOCATIONS OF PROFITS AND LOSSES AND DISTRIBUTIONS

6.1 Allocations of Profits and Losses. Except as otherwise provided in Section 6.2, Profits and Losses (and items thereof) of the Company shall be allocated to the Members so as to, as nearly as possible, increase or decrease, as the case may be, each Member's Capital Account to the extent necessary such that each Member's Capital Account is equal to the amount that such Member would receive if the Company were dissolved, its assets sold for their Book Value, its liabilities satisfied in accordance with their terms and all remaining amounts were distributed to the Members in accordance with Section 6.6(a) of this Agreement immediately after making such allocation (and for purposes of determining the amount distributed to the Members in accordance with Section 6.6(a)(i), only taking into account the distributions actually made or anticipated to be made to the Members pursuant to Section 6.6(a)(i) by the Board of Managers). The intent of the foregoing allocation is to comply with Treasury Regulations Section 1.704-1(b) and ensure that the Members receive allocations of Profits and Losses pursuant to this Section 6.1 in accordance with their relative interests in the Company, with the interest of each Member in the Company determined by reference to such Member's relative rights to receive distributions from the Company pursuant to Section 6.6(a). If the Capital Accounts of the Members are in such ratios or balances that distributions in the manner set forth in Section 6.6(a) (and for purposes of determining the amount distributed to the Members in accordance with Section 6.6(a)(i), only taking into account the distributions actually made or anticipated to be made to the Members pursuant to Section 6.6(a)(i) by the Board of Managers) would not be in accordance with the positive Capital Account balances of the Members, such failure shall not affect or alter the distributions to the Members set forth in Section 6.6(a) or Section 9.4(b). Instead, the Board of Managers will have the authority to make other allocations of Profits and Losses, or items of income, gain, loss or deduction, among the Members which will result to the extent possible in the Capital Accounts of each Member having a balance prior to such distributions equal to the amount of distributions to be received by such Member in accordance with the manner set forth in Section 6.6(a) (and for purposes of determining the amount distributed to the Members in accordance with Section 6.6(a)(i), only taking into account the distributions actually made or anticipated to be made to the Members pursuant to Section 6.6(a)(i) by the Board of Managers).

6.2 Special Allocations. Notwithstanding the allocations set forth in Section 6.1, (a) a Member who unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) will be allocated items of 'Book' income and gain in an amount and manner sufficient to eliminate such deficit balance as quickly as possible (this provision is intended to be a 'qualified income offset' within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(3) and shall be interpreted and implemented as therein provided); and (b) if there is a net decrease in the Company's minimum gain for a fiscal year, each Member shall be allocated items of 'Book' income and gain for such fiscal year (and, if necessary, for subsequent years) as required and in accordance with Section 1.704-2(f)(1) of the Treasury Regulations (this provision is intended to be a 'minimum gain chargeback' under Section 1.704-2(f)(1) of the Treasury Regulations and shall be interpreted and implemented as therein provided). If the Company incurs 'non-recourse' deductions', as defined in the Treasury Regulations, the Board of Managers may modify the allocations of Profits and Losses to the Members as deemed reasonably necessary or advisable by the Board of Managers to comply with the Treasury Regulations. Any special allocations of items of income and gain pursuant to this

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Section 6.2 shall be taken into account in computing subsequent allocations of income and gain pursuant to Section 6.1 so that the net amount of any item so allocated and the income, gain, and losses allocated to each Member pursuant to this Section 6.2 to the extent possible, shall be equal to the net amount that would have been allocated to each such Member pursuant to Section 6.1 if such unexpected adjustments, allocations, or distributions had not occurred.

6.3 Transfer of Shares During Taxable Year. In the case of the transfer of a Member's Shares or the addition of an additional Member or interest at any time other than the end of a Fiscal Year, the distributive share of the various items of income, gain, loss, deduction, credit or allowance in respect of the Shares so transferred shall be allocated between the transferor and the transferee to take into account the varying interests of the Members during the taxable year in accordance with Code Section 706, using a convention permitted by law and selected by the Board of Managers.

6.4 Tax Allocations. If any property is reflected in the Capital Accounts of the Members and on the books of the Company at a Book Value that differs from the adjusted tax basis of such property, then the tax items with respect to such property shall (to the extent not governed by Section 704(c)), in accordance with the requirements of Treasury Regulations Section 1.704-1(b)(4)(i), be shared among the Members in a manner that takes account of the variation between the adjusted tax basis of the applicable property and its Book Value in the same manner as variations between the adjusted tax basis and fair market value of property contributed to the Company are taken into account in determining the share of tax items under Section 704(c). The Company shall use the traditional method, as described in Treasury Regulations Section 1.704-3(b) in a manner determined by the Board of Managers. Except as otherwise provided in this Agreement, all items of Company income, gain, loss or deduction, and any other allocations not otherwise provided for shall be divided among the Members in the same proportions as they share Profits and Losses, as the case may be, for the year.

6.5 Section 754 Election. The Company shall file an election under Section 754 of the Code to adjust the basis of property of the Company in the case of a transfer of an interest in the Company, and shall in good faith consider any written request to make such election by any Member.

# 6.6 Distributions by the Company.

(a) Subject to applicable law, the Board of Managers may elect from time to time to make Distributions to the Members as follows:

(i) Operating Cash Flow shall be distributed to the Members pro rata in proportion to the number of Shares held by each at the time of the distribution; provided, however, that amounts otherwise distributable to a Common Member pursuant to this Section 6.6(a)(i) with respect to its Common Shares shall not be distributed to such Common Member, but instead shall be distributed pursuant to this Section 6.6(a)(i) ratably to the other Members in existence immediately before the grant of such Common Shares, until such amount has equaled the Strike Price (if any) with respect to such Common Shares.

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(ii) All other Distributions, including without limitation Distributions of Liquidation Transaction Proceeds, shall be made to the Members in the following order and priority:

(1) First, to the Series A Preferred Members pro rata in proportion to the Unpaid Preferred Liquidation Preference attributable to their Series A Preferred Shares until each such Series A Preferred Member has received aggregate Distributions with respect to its Series A Preferred Shares under this Section 6.6(a)(ii)(1) equal to the Unpaid Preferred Liquidation Preference with respect to its Series A Preferred Shares (no Series A Preferred Member shall receive distributions under this Section 6.6(a)(ii)(1) in excess of the Unpaid Preferred Liquidation Preference with respect to its Series A Preferred Shares);

(2) Then, to the Series Seed Preferred Members pro rata in proportion to the Unpaid Preferred Liquidation Preference attributable to their Series Seed Preferred Shares until each such Series Seed Preferred Member has received aggregate Distributions with respect to its Series Seed Preferred Shares under this Section 6.6(a)(ii)(2) equal to the Unpaid Preferred Liquidation Preference with respect to its Series Seed Preferred Shares (no Series Seed Preferred Member shall receive distributions under this Section 6.6(a)(ii)(2) in excess of the Unpaid Preferred Liquidation Preference with respect to its Series Seed Preferred Shares); and

(3) Thereafter, to the Preferred Members and Common Members pro rata in proportion to the number of Shares held by each at the time of the Distribution; provided, however, that the amounts otherwise distributable pursuant to this Section 6.6(a)(ii)(3) to a Preferred Member with respect to its Preferred Shares (or Common Shares that were received on conversion of its Preferred Shares) shall not be distributed to such Preferred Member to the extent of the aggregate amount of Distributions previously received by such Preferred Member pursuant to Section 6.6(a)(ii)(1) or Section 6.6(a)(ii)(2) with respect to such Preferred Shares (or Common Shares that were received on conversion of its Preferred Shares).

(b) To the extent that Distributions to a Member pursuant to Section 6.6(a)(ii)(3) are attributable to unvested Shares as of the date of Distribution, then such amounts shall be treated as distributed to such Member and then immediately contributed back to the capital of the Company by such Member and retained by the Company until such time and to such extent as such unvested Interest becomes a vested Interest at which time such amounts will be distributed to the Member. In accordance with Revenue Procedure 2001-43, the Members will be treated as the owner of the Shares subject to vesting from the date of issuance during the period of time in which the Member holds the Shares, will be allocated Profits and Losses associated with the Shares during the period of time in which the Member holds the Shares and neither the Members nor the Company will take a deduction for the fair market value of the Shares when issued or upon vesting. Any earnings attributable to such amounts contributed back to the capital of the Company by such Member shall inure to the benefit of the Company.

(c) Notwithstanding Section 6.6(a) or Section 9.4(b), in order to prevent taxable income to the Common Members on issuance of Common Shares pursuant to Section 3.2, amounts otherwise distributable to a Common Member pursuant to Section 6.6(a)(ii)(3) with respect to its Common Shares shall not be distributed to such Common Member, but instead shall

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be distributed pursuant to Section 6.6(a)(ii)(3) ratably to the other Members in existence immediately before the grant of such Common Shares, until such amount has equaled the Strike Price (if any) with respect to such Common Shares. It is the intent that any Strike Price with respect to the Common Shares will be set to assure that in the event that the Company is liquidated immediately following the issuance of such Common Shares, the Common Member will receive zero on liquidation with respect to such Common Shares. The Board of Managers shall make such calculations and distributions among the Members as it deems necessary to carry out the intent of this Section 6.6(b). Notwithstanding the foregoing, in the event that the Board of Managers sets the Strike Price at a lower amount (the difference between what the Strike Price should be and the lower actual amount of the Strike Price shall be referred to as the 'Strike Price Difference'), in order to prevent taxable income to the Common Members on issuance of the Common Shares pursuant to Section 3.2, distributions to such Common Members with respect to such issued Common Shares shall not exceed such Common Member's positive Capital Account balance as of the date of distribution, estimated as necessary by the Board of Managers in good faith, taking into account the activities of the Company and allocations of Profits up to the date of the distribution and making allocations of Profits to such Common Members as if no such distribution limit existed; the effect of this provision is to cause a special allocation of Profits to be made pursuant to Section 6.1 to such Common Member with respect to such Common Shares (provided, however, that the special economic 'fill-up' allocation shall only come from the appreciation of Company assets (including goodwill and going concern, and resulting from the adjustment of Capital Accounts pursuant to Section 6.7)) in an amount equal to the Strike Price Difference (e.g., in the event that the Strike Price is zero, provided that there is sufficient appreciation in the Company assets following the date of grant of such Common Shares, it is intended that such Common Member will receive distributions under Section 6.6(a)(ii)(3) in accordance with its number of Common Shares held). The Board of Managers shall make any determinations and calculations that are necessary pursuant to this Section 6.6(c).

(d) The Phantom Common Shares represent 'phantom' Common Shares that provide the economics of Common Shares without the actual issuance of Common Shares. Amounts distributable to the Members shall take into account the amounts payable to the Participants with respect to outstanding Phantom Common Shares, and the holders of the Phantom Common Shares shall be entitled to receive similar economics as actually issued Common Shares pursuant to the economic provisions of this Section 6.6 and Section 9.4. The Board of Managers shall make any determinations and calculations that are necessary with respect to distributions made pursuant to this Section 6.6 and Section 9.4, including payments made to holders of Phantom Common Shares

(e) Notwithstanding the limitations set forth in Section 6.6(a) and Section 6.6(b), the Board of Managers shall, for each taxable year, cause the Company to distribute to each Member on a timely basis taking into consideration the due dates for estimated tax payments an amount equal to (i) the Company's income taxable to such Member for such taxable year or applicable period (to the extent that such Company taxable income exceeds the aggregate of Company taxable loss previously allocated to such Member that has not previously been offset by allocations of Company taxable income), multiplied by (ii) such Member's effective state and federal income and self-employment tax rate, as determined by the Board of Managers (taking into account the deductibility of state taxes against federal income in applicable taxable years); provided, however, that no such distribution shall be made to the extent that the Board of

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Managers determines, in its sole discretion, that funds are not reasonably available for such distribution by virtue of applicable law, contractual obligation or current or future needs of the Company, and provided further that the Board of Managers may adjust the tax rate in clause (ii) above if it reasonably determines that a lower rate is sufficient in light of the character of the Company's income or is insufficient with respect to a Member in the case self-employment taxes are imposed on the Company's income that is taxable to such Member for such taxable year. Such distribution to each Member shall be made no later than the first day of the third month following the end of the taxable year of the Company with respect to which such distribution is made. Distributions made pursuant to this Section 6.6(e) shall be applied against (and reduce on a dollar-for-dollar basis) amounts otherwise distributable to the Members pursuant to Section 6.6(a)(i) or Section 6.6(a)(ii)(3) (depending upon which such Section caused the income, as determined by the Board of Managers) and distributions previously made to the Members with respect to a particular year pursuant to Section 6.6(a) shall be applied against amounts otherwise distributable to the Members pursuant to this Section 6.6(e) with respect to such year. For the avoidance of doubt, tax distributions made pursuant to this Section 6.6(e) shall not be treated as a distribution pursuant to Section 6.6(a)(ii)(1) or Section 6.6(a)(ii)(2) and consequently shall not reduce the amount of the applicable Unpaid Preferred Liquidation Preference with respect to the Preferred Shares.

(f) Upon a Liquidation Transaction, the distributions of Liquidation Transaction Proceeds made pursuant to Section 6.6(a)(ii) shall be determined and made treating the outstanding Phantom Common Shares as outstanding Common Shares and paid taking into account the Value of the Vested Phantom Common Shares. The Board of Managers shall make any determinations and calculations that are necessary pursuant to Section 6.6 and such determinations and calculations shall be final and binding on the Members and the Phantom Common Share Holders. For the avoidance of doubt, any person receiving Phantom Common Shares shall have no rights as a Member by virtue of a grant of Phantom Common Shares.

(g) To the extent that the Company is required by law to withhold or to make tax or other payments on behalf of or with respect to any Member, the Company shall withhold such amounts from any Distribution and make such payments as so required. For purposes of this Agreement, any such payments or withholdings shall be treated as a Distribution to the Member on behalf of whom the withholding or payment was made. All such Distributions shall be made only to the Persons who, according to the books and records of the Company, are the holders of record of the Shares in respect of which such Distributions are made on the actual date of Distribution. Neither the Company nor any Manager shall incur any liability for making Distributions in accordance with this Section 6.6.

(h) To the extent determined by the Board of Managers, a Member may be entitled to receive a guaranteed payment within the meaning of Section 707(c) of the Code for the performance of services to the Company by the Member for being a Manager, officer or otherwise. Guaranteed payments made to a Member shall not be treated as a Distribution to the Member under Section 6.6 or under Section 9.4.

(i) In the event of a Liquidation Transaction, if any portion of the consideration payable to the Members is payable only upon satisfaction of contingencies (the 'Additional Consideration'), the definitive agreement for such Liquidation Transaction shall provide that (A)

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the portion of such consideration that is not Additional Consideration (such portion, the “Initial Consideration”) shall be distributed among the Members as if the Initial Consideration were the only consideration payable in connection with such Liquidation Transaction; and (B) any Additional Consideration which becomes payable to the Members upon satisfaction of such contingencies shall be distributed among the Members in accordance with Section 6.6(a)(ii) after taking into account the previous payment of the Initial Consideration as part of the same transaction. For the purposes of this Section 6.6(i), consideration placed into escrow or retained as a holdback to be available for satisfaction of indemnification or similar obligations in connection with such Liquidation Transaction shall be deemed to be Additional Consideration.

(j) Distributions made pursuant to a liquidation or dissolution of the Company shall be made pursuant to Section 9.4 and no Member’s entitlement to such a Distribution shall be abrogated or diminished in the event part of the consideration received by the Company in connection with a Liquidation Event is subject to escrow.

6.7 Book-Up of Company Assets. The Book Value of all Company assets will be adjusted to equal their respective gross fair market values, as determined in good faith by the majority of the Board of Managers, as of the following times: (i) the issuance of one or more “profits interests” or the acquisition of an additional interest in the Company by any new or existing Member in exchange for more than a de minimis capital contribution or the issuance of Common Shares pursuant to Section 3.2; (ii) the distribution by the Company to a Member of more than a de minimis amount of money or Company property as consideration for an interest in the Company; (iii) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g), and (iv) at all other times provided for in Treasury Regulations Section 1.704-1(b)(2)(ii)(g)-(f) to the extent the Board of Managers determine that such adjustment is necessary or appropriate. The book-up shall be made in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(f).

## TRANSFER AND ASSIGNMENT OF INTERESTS

7.1 Transfer and Assignment of Interests. Except as expressly provided in this Agreement or any other written agreement to which the Company is a party, a Member shall not transfer any part of the Member’s Interest in the Company, whether now owned or later acquired, unless the Board of Managers approves the transfer. No Member may encumber or permit or suffer any encumbrance of all or any part of the Member’s Interest in the Company unless such encumbrance has been approved in writing by the Board of Managers. Such approval may be granted or withheld in the Board of Managers’ discretion. Any transfer or encumbrance of an Interest without such approval shall be void. Notwithstanding any other provision of this Agreement to the contrary: (a) a Member who is a natural person may transfer all or any portion of his or her Interest to any revocable trust created for the benefit of the Member, or any combination between or among the Member, the Member’s spouse, and the Member’s immediate family; provided that the Member retains a beneficial interest in the trust and all of the voting Interest included in such Interest; and (b) a Member who is not a natural person may transfer all or any portion of its Interest to its Affiliate. A transfer of a Member’s beneficial interest in such trust, or failure to retain such voting Interest, shall be deemed a transfer of an Interest. In the event that any part of the Member’s Interest in the Company is transferred incident to a divorce or by operation of

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law, the transferee of the Interest who is not approved by the Board of Managers shall only obtain rights in the Company with respect to Distributions, Profits and Losses attributable to the transferred Shares but shall have no rights as a Member under this Agreement or the Act, including no rights to vote or otherwise participate in the management of the Company. Notwithstanding the foregoing, the Shares of the transferee shall be subject to the restrictions contained in this Agreement applicable to Shares held by a Member.

7.2 Further Restrictions on Transfer of Interests. In addition to other restrictions found in this Agreement, no Member shall transfer, assign, convey, sell, encumber or in any way alienate all or any part of its Shares: (A) without compliance with all federal and state securities laws, or (B) if such transfer would cause the number of holders of the Company's securities to exceed 100 or such other number as may be permitted for purposes of determining that the Company is exempt from Securities Exchange Act of 1934, as amended or the Investment Company Act of 1940, as amended, or for purposes of determining whether the Company is a 'publicly traded partnership' within the meaning of Section 7704 of the Code.

### 7.3 Rights of First Refusal

(a) Grant. Subject to Section 7.1, each Key Holder hereby unconditionally and irrevocably grants to the Company a Right of First Refusal to purchase all or any portion of Transfer Shares that such Key Holder may propose to transfer in a Proposed Key Holder Transfer, at the same price and on the same terms and conditions as those offered to the Prospective Transferee.

(b) Notice. Each Key Holder proposing to make a Proposed Key Holder Transfer must deliver a Proposed Transfer Notice to the Company and each Major Holder not later than forty-five (45) days prior to the consummation of such Proposed Key Holder Transfer. Such Proposed Transfer Notice shall contain the material terms and conditions (including price and form of consideration) of the Proposed Key Holder Transfer, the identity of the Prospective Transferee and the intended date of the Proposed Key Holder Transfer. To exercise its Right of First Refusal under this Section 7.3, the Company must deliver a Company Notice to the selling Key Holder and the Investors within fifteen (15) days after delivery of the Proposed Transfer Notice specifying the number of Transfer Shares to be purchased by the Company. In the event of a conflict between this Agreement and any other agreement that may have been entered into by a Key Holder with the Company that contains a preexisting right of first refusal, the Company and the Key Holder acknowledge and agree that the terms of this Agreement shall control and the preexisting right of first refusal shall be deemed satisfied by compliance with Section 7.3(a) and this Section 7.3(b).

(c) Grant of Secondary Refusal Right to the Major Holders. Subject to the terms of Section 7.6 below, each Key Holder hereby unconditionally and irrevocably grants to the Major Holders a Secondary Refusal Right to purchase all or any portion of the Transfer Shares not purchased by the Company pursuant to the Right of First Refusal, as provided in this Section 7.3(c). If the Company does not provide the Company Notice exercising its Right of First Refusal with respect to all Transfer Shares subject to a Proposed Key Holder Transfer, the Company must deliver a Secondary Notice to the selling Key Holder and to each Major Holder to that effect no later than fifteen (15) days after the selling Key Holder delivers the Proposed Transfer Notice to

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the Company. To exercise its Secondary Refusal Right, a Major Holder must deliver an Investor Notice to the selling Key Holder and the Company within ten (10) days after the Company's deadline for its delivery of the Secondary Notice as provided in the preceding sentence.

(d) Undersubscription of Transfer Shares. If options to purchase have been exercised by the Company and the Major Holders pursuant to Sections 7.3(b) and (c) with respect to some but not all of the Transfer Shares by the end of the ten (10) day period specified in the last sentence of Sections 7.3(c) (the 'Major Holder Notice Period'), then the Company shall, within five (5) days after the expiration of the Major Holder Notice Period, send written notice (the 'Company Undersubscription Notice') to those Major Holders who fully exercised their Secondary Refusal Right within the Major Holder Notice Period (the 'Exercising Major Holders'). Each Exercising Major Holder shall, subject to the provisions of this Sections 7.3(d), have an additional option to purchase all or any part of the balance of any such remaining unsubscribed Transfer Shares on the terms and conditions set forth in the Proposed Transfer Notice. To exercise such option, an Exercising Major Holder must deliver an Undersubscription Notice to the selling Key Holder and the Company within ten (10) days after the expiration of the Major Holder Notice Period. In the event there are two (2) or more such Exercising Major Holders that choose to exercise the last-mentioned option for a total number of remaining shares in excess of the number available, the remaining shares available for purchase under this Sections 7.3(d) shall be allocated to such Exercising Major Holders pro rata based on the number of shares of Transfer Shares such Exercising Major Holders have elected to purchase pursuant to the Secondary Refusal Right (without giving effect to any Transfer Shares that any such Exercising Major Holder has elected to purchase pursuant to the Company Undersubscription Notice). If the options to purchase the remaining shares are exercised in full by the Exercising Major Holders, the Company shall immediately notify all of the Exercising Major Holders and the selling Key Holder of that fact.

(e) Forfeiture of Rights. Notwithstanding the foregoing, if the total number of Transfer Shares that the Company and the Major Holders have agreed to purchase in the Company Notice, Major Holder Notices and Undersubscription Notices is less than the total number of Transfer Shares, then the Company and the Major Holders shall be deemed to have forfeited any right to purchase such Transfer Shares, and the selling Key Holder shall be free to sell all, but not less than all, of the Transfer Shares to the Prospective Transferee on terms and conditions substantially similar to (and in no event more favorable than) the terms and conditions set forth in the Proposed Transfer Notice, it being understood and agreed that (i) any such sale or transfer shall be subject to the other terms and restrictions of this Agreement, including, without limitation, the terms and restrictions set forth in Section 7.4; (ii) any future Proposed Key Holder Transfer shall remain subject to the terms and conditions of this Agreement, including this Article VII; and (iii) such sale shall be consummated within forty-five (45) days after receipt of the Proposed Transfer Notice by the Company and, if such sale is not consummated within such forty-five (45) day period, such sale shall again become subject to the Right of First Refusal and Secondary Refusal Right on the terms set forth herein.

(f) Consideration; Closing. If the consideration proposed to be paid for the Transfer Shares is in property, services or other non-cash consideration, the fair market value of the consideration shall be as determined in good faith by the Board of Managers and as set forth in the Company Notice. If the Company or any Major Holder cannot for any reason pay for the

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Transfer Shares in the same form of non-cash consideration, the Company or such Major Holder may pay the cash value equivalent thereof, as determined in good faith by the Board of Managers and as set forth in the Company Notice. The closing of the purchase of Transfer Shares by the Company and the Major Investors shall take place, and all payments from the Company and the Major Holders shall have been delivered to the selling Key Holder, by the later of (i) the date specified in the Proposed Transfer Notice as the intended date of the Proposed Key Holder Transfer; and (ii) forty-five (45) days after delivery of the Proposed Transfer Notice.

### 7.4 Co-Sale Rights.

(a) Exercise of Right. If any Transfer Shares subject to a Proposed Key Holder Transfer is not purchased pursuant to Section 7.3 above and thereafter is to be sold to a Prospective Transferee, each respective Major Investor may elect to exercise its Right of Co-Sale and participate on a pro rata basis in the Proposed Key Holder Transfer as set forth in Section 7.4(b) below and, subject to Section 7.4(d), otherwise on the same terms and conditions specified in the Proposed Transfer Notice. Each Major Holder who desires to exercise its Right of Co-Sale (each, a “Participating Major Holder”) must give the selling Key Holder written notice to that effect within fifteen (15) days after the deadline for delivery of the Secondary Notice described above, and upon giving such notice such Participating Major Holder shall be deemed to have effectively exercised the Right of Co-Sale.

(b) Shares Includable. Each Participating Major Holder may include in the Proposed Key Holder Transfer all or any part of such Participating Major Holder’s Shares equal to the product obtained by multiplying (i) the aggregate number of Transfer Shares subject to the Proposed Key Holder Transfer (excluding shares purchased by the Company or the Participating Major Holders pursuant to the Right of First Refusal or the Secondary Refusal Right) by (ii) a fraction, the numerator of which is the number of Shares owned by such Participating Major Holder immediately before consummation of the Proposed Key Holder Transfer and the denominator of which is the total number of Shares owned, in the aggregate, by all Participating Major Holders immediately prior to the consummation of the Proposed Key Holder Transfer, plus the number of Transfer Shares held by the Key Holders. To the extent one (1) or more of the Participating Major Holders exercise such right of participation in accordance with the terms and conditions set forth herein, the number of shares of Transfer Shares that the selling Key Holder may sell in the Proposed Key Holder Transfer shall be correspondingly reduced.

(c) Purchase and Sale Agreement. The Participating Major Holders and the selling Key Holder agree that the terms and conditions of any Proposed Key Holder Transfer in accordance with this Section 7.4 will be memorialized in, and governed by, a written purchase and sale agreement with the Prospective Transferee (the “Purchase and Sale Agreement”) with customary terms and provisions for such a transaction, and the Participating Major Holders and the selling Key Holder further covenant and agree to enter into such Purchase and Sale Agreement as a condition precedent to any sale or other transfer in accordance with this Section 7.4.

(d) Allocation of Consideration.

(i) Subject to Section 7.4(d)(ii), the aggregate consideration payable to the Participating Major Holders and the selling Key Holder shall be allocated based on the number

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of Shares sold to the Prospective Transferee by each Participating Major Holder and the selling Key Holder as provided in Section 7.4(b), provided that if a Participating Major Holder wishes to sell Preferred Shares, the price set forth in the Proposed Transfer Notice shall be appropriately adjusted based on the conversion ratio of the Preferred Shares into Common Shares.

(ii) In the event that the Proposed Key Holder Transfer constitutes a transaction or series of related transactions in which a person, or a group of related persons, acquires from Members of the Company Shares representing more than fifty percent (50%) of the outstanding voting power of the Company (the “Change of Control”), the terms of the Purchase and Sale Agreement shall provide that the aggregate consideration from such transfer shall be allocated to the Participating Major Holders and the selling Key Holder in accordance with Section 6.6 of this Agreement as if (A) such transfer were a Liquidation Transaction, and (B) the Shares sold in accordance with the Purchase and Sale Agreement were the only Shares outstanding. In the event that a portion of the aggregate consideration payable to the Participating Major Holder(s) and selling Key Holder is placed into escrow and/or is payable only upon satisfaction of contingencies, the Purchase and Sale Agreement shall provide that (x) the portion of such consideration that is not placed in escrow and is not subject to contingencies (the “Initial Consideration”) shall be allocated in accordance with Section 6.6 of this Agreement as if the Initial Consideration were the only consideration payable in connection with such transfer, and (y) any additional consideration which becomes payable to the Participating Major Holder(s) and selling Key Holder upon release from escrow or satisfaction of such contingencies shall be allocated in accordance with Section 6.6 of this Agreement after taking into account the previous payment of the Initial Consideration as part of the same transfer.

(e) Purchase by Selling Key Holder; Deliveries. Notwithstanding Section 7.4(c) above, if any Prospective Transferee or Transferees refuse(s) to purchase securities subject to the Right of Co-Sale from any Participating Major Holder or Major Holders or upon the failure to negotiate in good faith a Purchase and Sale Agreement reasonably satisfactory to the Participating Major Holders, no Key Holder may sell any Transfer Shares to such Prospective Transferee or Transferees unless and until, simultaneously with such sale, such Key Holder purchases all securities subject to the Right of Co-Sale from such Participating Major Holder or Major Holders on the same terms and conditions (including the proposed purchase price) as set forth in the Proposed Transfer Notice and as provided in Section 7.4(d)(i); provided, however, if such sale constitutes a Change of Control, the portion of the aggregate consideration paid by the selling Key Holder to such Participating Major Holder or Major Holders shall be made in accordance with the first sentence of Section 7.4(d)(ii). In connection with such purchase by the selling Key Holder, such Participating Major Holder or Major Holders shall deliver to the selling Key Holder any Share certificate or certificates, properly endorsed for transfer, representing the Shares being purchased by the selling Key Holder (or request that the Company effect such transfer in the name of the selling Key Holder). Any such Shares transferred to the selling Key Holder will be transferred to the Prospective Transferee against payment therefor in consummation of the sale of the Transfer Shares pursuant to the terms and conditions specified in the Proposed Transfer Notice, and the selling Key Holder shall concurrently therewith remit or direct payment to each such Participating Major Holder the portion of the aggregate consideration to which each such Participating Investor is entitled by reason of its participation in such sale as provided in Section 7.4(e).

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(f) Additional Compliance. If any Proposed Key Holder Transfer is not consummated within forty-five (45) days after receipt of the Proposed Transfer Notice by the Company, the Key Holders proposing the Proposed Key Holder Transfer may not sell any Transfer Shares unless they first comply in full with each provision of this Article VII. The exercise or election not to exercise any right by any Major Holder hereunder shall not adversely affect its right to participate in any other sales of Transfer Shares subject to this Section 7.4.

### 7.5 Exempt Transfers.

(a) Exempted Transfers. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Sections 7.3 and 7.4 shall not apply (i) in the case of a Key Holder that is an entity, upon a transfer by such Key Holder to its stockholders, members, partners or other equity holders, (ii) to a repurchase of Transfer Shares from a Key Holder by the Company at a price no greater than that originally paid by such Key Holder for such Transfer Shares and pursuant to an agreement containing vesting and/or repurchase provisions approved by a majority of the Board of Managers, (iii) upon a transfer by such Key Holder to an entity or entities affiliated with the Company; or (iv) in the case of a Key Holder that is a natural person, upon a transfer of Transfer Shares by such Key Holder made for bona fide estate planning purposes, either during his or her lifetime or on death by will or intestacy to his or her spouse, child (natural or adopted), or any other direct lineal descendant of such Key Holder (or his or her spouse) (all of the foregoing collectively referred to as “family members”), or any other relative approved by the Board of Managers, or any custodian or trustee of any trust, partnership or limited liability company for the benefit of, or the ownership interests of which are owned wholly by such Key Holder or any such family members; provided that in the case of clause(s) (i), (iii), or (iv), the Key Holder shall deliver prior written notice to the Investors of such pledge, gift or transfer and such Transfer Shares shall at all times remain subject to the terms and restrictions set forth in this Agreement and such transferee shall, as a condition to such issuance, deliver a counterpart signature page to this Agreement as confirmation that such transferee shall be bound by all the terms and conditions of this Agreement as a Key Holder (but only with respect to the securities so transferred to the transferee), including the obligations of a Key Holder with respect to Proposed Key Holder Transfers of such Transfer Shares pursuant to Article VII; and provided further in the case of any transfer pursuant to clause (i) or (iv) above, that such transfer is made pursuant to a transaction in which there is no consideration actually paid for such transfer.

(b) Exempted Offerings. Notwithstanding the foregoing or anything to the contrary herein, the provisions of Article VII shall not apply to the sale of any Transfer Shares (a) to the public in an offering pursuant to an effective registration statement under the Securities Act (a “Public Offering”); or (b) pursuant to a Liquidation Transaction.

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

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## ACCOUNTING, RECORDS, REPORTING BY MEMBERS

8.1 **Books and Records.** The books and records of the Company shall be kept, and the financial position and the results of its operations recorded, in accordance with GAAP. The books and records of the Company shall reflect all the Company transactions and shall be appropriate and adequate for the Company's business. The Company shall maintain at its principal office in California or make available electronically all of the following:

(a) A current list of the full name and last known business or residence address of each Member and set forth in alphabetical order, together with the Capital Contributions, Capital Account and Shares held by each Member;

(b) A current list of the full names and addresses of each Manager;

(c) A copy of the Certificate of Formation and any and all amendments thereto together with executed copies of any powers of attorney pursuant to which the Certificate of Formation or any amendments thereto have been executed;

(d) Copies of the Company's federal, state, and local income tax or information returns and reports, if any, for the six (6) most recent taxable years;

(e) A copy of this Agreement and any and all amendments thereto together with executed copies of any powers of attorney pursuant to which this Agreement or any amendments thereto have been executed;

(f) Copies of the financial statements of the Company, if any, for the six (6) most recent Fiscal Years; and

(g) The Company's books and records as they relate to the internal affairs of the Company for at least the current and past four (4) Fiscal Years.

8.2 **Reports.** The Company shall cause to be filed, in accordance with the Act, all reports and documents required to be filed with any governmental agency. The Company shall cause to be prepared at least annually information concerning the Company's operations necessary for the completion of the Members' federal and state income tax returns. The Company shall send or cause to be sent to each Member within ninety (90) days after the end of each taxable year (A) such information as is necessary to complete the Members' federal and state income tax or information returns and (B) a copy of the Company's federal, state, and local income tax or information returns for the year.

8.3 **Bank Accounts.** The Board of Managers shall maintain the funds of the Company in one or more separate bank accounts in the name of the Company and shall not permit the funds of the Company to be commingled in any fashion with the funds of any other Person.

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## ARTICLE IX
DISSOLUTION AND WINDING UP

9.1 Dissolution. The Company shall be dissolved, its assets shall be disposed of, and its affairs wound up upon the first to occur of the following:

- (a) The happening of any event of dissolution specified in the Certificate of Formation;
- (b) The entry of a decree of judicial dissolution;
- (c) Subject to Section 5.4(c), The affirmative vote or written consent of Members holding a Threshold Interest; or
- (d) A Liquidation Transaction.

9.2 Certificate of Dissolution. As soon as possible following the occurrence of any of the events specified in Section 9.1, the Managers shall execute a Certificate of Dissolution in such form as shall be prescribed by the Delaware Secretary of State and file the Certificate as required by the Act.

9.3 Winding Up. Upon the dissolution of the Company, the Company's assets shall be disposed of and its affairs wound up. The Company shall give written notice of the commencement of the dissolution to all of its known creditors.

9.4 Order of Payment Upon Dissolution. The assets and proceeds on liquidation shall be applied in the following order:

- (a) To creditors, including Members who are creditors, to the extent permitted by law and in accordance with their relative rights of priority, if any; and
- (b) All remaining assets and proceeds shall be distributed to the Members in accordance with Section 6.6(a)(ii), treating all amounts as Liquidation Transaction Proceeds. The unvested Interests shall be treated as determined by the Board of Managers or as required by the applicable agreements with the holders of such unvested Interests.

9.5 Limitations on Payments Made in Dissolution. Except as otherwise specifically provided in this Agreement, each Member shall only be entitled to look solely at the assets of the Company for the return of its positive Capital Account balance and shall have no recourse for its Capital Contribution and/or share of income or gain of the Company (upon dissolution or otherwise) against the Managers or any other Member.

9.6 Distributions in Kind. The Board of Managers may make dissolution or regular distributions to the Members in cash or distribute Company assets in kind, and the distribution of any such assets in kind shall be made on the basis of the fair market value of such asset as of the date of distribution, as determined by the Board of Managers in good faith. The Capital Accounts of the Members shall be adjusted accordingly to preserve the economic interests of the Members as the result of any distribution in kind.

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9.7 Certificate of Cancellation. The Board of Managers or Members who filed the Certificate of Dissolution shall cause to be filed in the office of, and on a form prescribed by, the Delaware Secretary of State, a Certificate of Cancellation of the Certificate of Formation upon the completion of the winding up of the affairs of the Company.

## INDEMNIFICATION AND INSURANCE

10.1 Indemnification. The Company shall defend and indemnify any Member, Manager or officer of the Company and may indemnify any other Person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that it, he or she is or was a Member, Manager, officer, employee or other agent of the Company or that, being or having been such a Member, Manager, officer, employee or agent, it, he or she is or was serving at the request of the Company as a manager, director, officer, employee or other agent of another limited liability company, corporation, partnership, joint venture, trust or other enterprise (all such persons being referred to hereinafter as an “agent”), to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as applicable law may hereafter from time to time permit. The officers of the Company shall be authorized, on behalf of the Company, to enter into indemnity agreements from time to time with any Person entitled to be indemnified by the Company hereunder, upon such terms and conditions as the Board of Managers deems appropriate in their business judgment.

10.2 Insurance. The Company shall, to the extent commercially reasonable (as determined by the Board of Managers), purchase and maintain insurance on behalf of any Person who is or was an agent of the Company against any liability asserted against such Person and incurred by such Person in any such capacity, or arising out of such Person’s status as an agent, whether or not the Company would have the power to indemnify such Person against such liability under the provisions of Section 10.1 or under applicable law.

## INVESTMENT REPRESENTATIONS

Each Member hereby represents and warrants to, and agrees with, the Managers, the other Members, and the Company as follows:

11.1 Preexisting Relationship or Experience. By reason of his, her or its business or financial experience, or by reason of the business or financial experience of his, her or its financial advisor who is unaffiliated with and who is not compensated, directly or indirectly, by the Company or any affiliate or selling agent of the Company, he, she or it is capable of evaluating the risks and merits of an investment in the Shares and of protecting his, her or its own interests in connection with this investment.

11.2 Investment Intent. He, she or it is acquiring the Shares for investment purposes for his, her or its own account only and not with a view to, or to offer or sell for an issuer in connection with, any distribution of all or any part of the Shares, or to participate or to have a direct or indirect participation in any such undertaking, or to participate or to have a participation in the direct or indirect underwriting of any such undertaking. He, she or it is not an “underwriter” as that term is

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defined in Section 2(a)(11) of the Securities Act. No other Person will have any direct or indirect beneficial interest in or right to the Shares.

11.3 Purpose of Entity. If an entity, it was not organized for the specific purpose of acquiring the Shares.

11.4 Economic Risk. He, she or it is financially able to bear the economic risk of an investment in the Shares, including the total loss thereof.

11.5 No Registration of Shares. He, she or it acknowledges that the Shares have not been registered under the Securities Act, or qualified any applicable blue sky laws in reliance, in part, on his, her or its representations, warranties, and agreements herein.

11.6 Investment in Restricted Security. He, she or it understands that the Shares are “restricted securities” under the Securities Act in that the Shares will be acquired from the Company in a transaction not involving a public offering, and that the Shares may be resold without registration under the Securities Act only in certain limited circumstances and that otherwise the Shares must be held indefinitely.

11.7 No Obligations to Register. He, she or it represents, warrants, and agrees that the Company and the Board of Managers are under no obligation to register or qualify the Shares under the Securities Act or under any state securities law, or to assist her, him or it in complying with any exemption from registration and qualification.

11.8 No disposition in Violation of Law. Without limiting the representations set forth above, and without limiting Article VII of this Agreement, he, she or it will not make any disposition of all or any part of the Shares which will result in the violation by her, him or it or by the Company of the Securities Act, the DGCL, the Act, or any other applicable securities laws. Without limiting the foregoing, he, she or it agrees not to make any disposition of all or any part of the Shares unless and until he, she or it has notified the Company of the proposed disposition and has furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Board of Managers, he, she or it has furnished the Company with a written opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of any securities under the Securities Act or the consent of or a permit from appropriate authorities under any applicable state securities law.

11.9 Investment Risk. He, she or it acknowledges that the Shares are speculative investments which involve a substantial degree of risk of loss of an entire investment in the Company, that he, she or it understands and takes full cognizance of the risks related to the purchase of the Shares, and that the Company is newly organized and has no financial or operating history.

11.10 Accredited Investor. Each Member that is a holder of Preferred Shares represents and warrants that he, she or it is an “accredited investor” as such term is defined in Rule 501 promulgated under the Securities Act.

11.11 Restrictions on Transferability. He, she or it acknowledges that there are substantial restrictions on the transferability of the Shares pursuant to this Agreement, that there is

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no public market for the Shares and none is expected to develop, and that, accordingly, it may not be possible to liquidate his, her or its investment in the Company.

11.12 Information Reviewed. He, she or it has received and reviewed this Agreement and the information it considers necessary or appropriate for deciding whether to purchase the Shares. In connection with the purchase of the Shares, he, she or it has neither (i) received any general solicitation or general advertising, including, but not limited to advertisements, articles, notices or other communications published in any newspaper, magazine, or similar media or broadcast over television or radio, nor (ii) attended any seminar or meeting whose attendees were invited by any general solicitation or general advertising. He, she or it has relied only on the information contained in this Agreement in making its investment decision.

11.13 Tax Consequences. He, she or it acknowledges that the tax consequences of investing in the Company will depend on its particular circumstances, and neither the Company, the Managers, the Members, nor the partners, stockholders, members, managers, agents, officers, directors, employees, Affiliates, or consultants of any of them will be responsible or liable for the tax consequences to him, her or it of an investment in the Company. He, she or it will look solely to, and rely upon, his, her or its own advisers with respect to the tax consequences of this investment.

11.14 No Assurance of Tax Benefits. He, she or it acknowledges that there can be no assurance that the Code or the Treasury Regulations will not be amended or interpreted in the future in such a manner so as to deprive the Company and the Members of some or all of the tax benefits they might now receive nor that some of the deductions claimed by the Company or the allocations of items of income, gain, loss, deduction, or credit among the Members may not be challenged by the Internal Revenue Service.

11.15 Indemnity. He, she or it shall defend, indemnify and hold harmless the Company, each and every Manager, each and every other Member, and any officers, directors, stockholders, managers, members, employees, partners, agents, attorneys, registered representatives, and control persons of any such entity who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, by reason of or arising from any misrepresentation or misstatement of facts or omission to represent or state facts made by him, her or it including, without limitation, the information in this Agreement, against losses, liabilities, and expenses of the company, each and every Manager, each and every other Member, and any officers, directors, stockholders, managers, members, employees, partners, attorneys, accountants, agents, registered representatives, and control persons of any such Person (including attorneys' fees, judgments, fines and amounts paid in settlement, payable as incurred) incurred by such person in connection with such action, suit, proceeding, or the like.

11.16 Disqualification. Each Member that is a holder of Preferred Shares represents that neither such Member, nor any person or entity with whom such Member shares or will share beneficial ownership of securities of the Company, is subject to any of the 'Bad Actor' disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (attached hereto as Exhibit F).

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## MISCELLANEOUS

12.1 Right to Corporate Conversion. The Board of Managers may decide to subsequently conduct the business of the Company through a corporation (or a limited liability company that elects to be treated as a corporation for income tax purposes). By executing this Agreement, all of the Members hereto hereby agree to such incorporation and agree to take all steps and to execute all documents necessary to effectuate such incorporation or election at such time as requested by the Board of Managers. The Board of Managers shall use commercially reasonable efforts to assure that on conversion the Members will receive equity interests in the new entity that will achieve the desired economic results as contained in this Agreement.

12.2 Complete Agreement. This Agreement and the Certificate of Formation, and any purchase, restricted Share, vesting or similar agreement, if any, entered into by any Member, constitute the complete and exclusive statement of agreement among the Members and Managers with respect to the subject matter herein and therein and replace and supersede all prior written and oral agreements or statements by and among the Members and Managers or any of them. No representation, statement, condition or warranty not contained in this Agreement or the Certificate will be binding on the Members or Managers or have any force or effect whatsoever. To the extent that any provision of the Certificate conflict with any provision of this Agreement, the Certificate shall control.

12.3 Confidentiality. Each Member hereto agrees that, except with the prior written permission of the Company, it shall at all times hold in confidence and trust and not use or disclose any confidential information of the Company provided to or learned by such Member in connection with the Member's rights under this Agreement. Notwithstanding the foregoing, each Member may disclose any confidential information of the Company provided to or learned by such Member in connection with such rights to the minimum extent necessary (a) to evaluate or monitor such Member's investment in the Company; (b) as required by any court or other governmental body, provided that such Member provides the Company with prompt notice of such court order or requirement to the Company to enable the Company to seek a protective order or otherwise to prevent or restrict such disclosure; (c) to legal counsel of such Member; (d) in connection with the enforcement of this Agreement or rights under this Agreement; or (e) to comply with applicable law. The provisions of this Section 12.3 shall be in addition to, and not in substitution for, the provisions of any separate nondisclosure agreement executed by the parties hereto with respect to the transactions contemplated hereby.

12.4 Binding Effect. Subject to the provisions of this Agreement relating to transferability, this Agreement will be binding upon and inure to the benefit of the Members, and their respective successors and assigns.

12.5 Parties in Interest. Except as expressly provided in the Act, nothing in this Agreement shall confer any rights or remedies under or by reason of this Agreement on any Persons other than the Members and Managers and their respective successors and assigns nor shall anything in this Agreement relieve or discharge the obligation or liability of any third person to any party to this Agreement, nor shall any provision give any third person any right of subrogation or action over or against any party to this Agreement.

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12.6 Pronouns; Statutory References. All pronouns and all variations thereof shall be deemed to refer to the masculine, feminine, or neuter, singular or plural, as the context in which they are used may require. Any reference to the Code, the Treasury Regulations, the Act, or other statutes or laws will include all amendments, modifications, or replacements of the specific sections and provisions concerned.

12.7 Headings. All headings herein are inserted only for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement.

12.8 Interpretation. In the event any claim is made by any Member relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular Member or its counsel.

12.9 References to this Agreement. Numbered or lettered articles, sections and subsections herein contained refer to articles, sections and subsections of this Agreement unless otherwise expressly stated.

12.10 Exhibits. All Exhibits attached to this Agreement are incorporated and shall be treated as if set forth herein.

12.11 Severability. If any provision of this Agreement or the application of such provision to any person or circumstance shall be held invalid, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

12.12 Additional Documents and Acts. Each Member agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions, and conditions of this Agreement and the transactions contemplated hereby.

12.13 Notices. Any notice to be given or to be served upon the Company or any party hereto in connection with this Agreement must be in writing (which may include facsimile) and will be deemed to have been given and received when delivered to the address specified by the party to receive the notice. Such notices will be given to a Member or Manager at the address specified in Exhibit A or Exhibit B hereto. Any party may, at any time by giving five business (5) days' prior written notice to the other parties, designate any other address in substitution of the foregoing address to which such notice will be given.

12.14 Amendments. Subject to Section 5.4(c) and to the remainder of this Section 12.14, all amendments to this Agreement will be in writing and approved and executed by the Members holding a Threshold Interest; provided, that:

(a) Any provision of this Agreement may be waived by a Member on such Member's own behalf and not on any other Member's behalf, without the consent of any other Member;

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(b) No provision of Sections 3.10-3.15, Sections 7.3-7.5 or Exhibit E (Registration Rights) may be amended, modified or terminated, and the observance of any term thereof may not be waived with respect to any Preferred Member without the written consent of such Preferred Member, unless such amendment, modification, termination, or waiver applies to all Preferred Members in the same fashion (it being agreed that a waiver of the provisions of Section 3.13 (Preemptive Rights), 7.3 (Rights of First Refusal) or 7.4 (Co-Sale Rights) with respect to a particular transaction shall be deemed to apply to all Preferred Members in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Preferred Members may nonetheless, by agreement with the Company or a Key Holder, as applicable, purchase securities in such transaction);

(c) Any other section of this Agreement applicable to the Major Holders (including this Section 12.14(c)) may not be amended, modified, terminated or waived without the written consent of the holders of at least a majority of the Shares then outstanding and held by the Major Holders;

(d) Section 3.14 (Drag Along Provision), Section 5.3 (Election of Managers), Section 7.3 (Rights of First Refusal), Section 7.4 (Co-Sale Rights) and Section 7.5 (Exempt Transfers) of this Agreement may be amended, modified or terminated and the observance of any term thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (i) the Company; (ii) the Key Holders holding a majority of the Shares then held by the Key Holders who are then providing services to the Company as officers, employees or consultants; and (iii) the holders of a Preferred Majority;

(e) The provisions of Section 5.3(a)(i)(A) and this Section 12.14(e) may not be amended, modified terminated or waived without the written consent of Holm;

(f) The provisions of Section 5.3(a)(i)(B) and this Section 12.14(f) may not be amended, modified terminated or waived without the written consent of Del Rio;

(g) The provisions of Section 5.3(a)(ii)(A) and this Section 12.14(g) may not be amended, modified terminated or waived without the written consent of Vulcan;

(h) The provisions of Section 5.3(a)(ii)(B) and this Section 12.14(h) may not be amended, modified terminated or waived without the written consent of the holders of a majority of the then-outstanding Series A Preferred Shares, voting as a separate class;

(i) The provisions of Section 5.3(a)(iii) and this Section 12.14(i) may not be amended, modified terminated or waived without the written consent of LAUNCH; and

(j) Exhibit E (Registration Rights) may not be amended, modified or terminated, and no provision thereof may be waived, in each case, in any way which would adversely affect the rights of the Key Holders thereunder in a manner disproportionate to any adverse effect such amendment, modification, termination or waiver would have on the rights of the Preferred Members thereunder, without also the written consent of the holders of at least a majority of the Shares held by the Key Holders.

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Any amendment, modification, termination, or waiver effected in accordance with this Section 12.14 shall be binding on all parties hereto, regardless of whether any such party has consented thereto.

12.15 Reliance on Authority of Person Signing Agreement. Neither the Company nor any Member will be required to determine the authority of the individual signing this Agreement to make any commitment or undertaking on behalf of such entity or to determine any fact or circumstance bearing upon the existence of the authority of such individual.

12.16 No Interest in Company Property; Waiver of Action for Partition. No Member has any interest in specific property of the Company. Without limiting the foregoing, each Member irrevocably waives during the term of the Company any right that he or she may have to maintain any action for partition with respect to the property of the Company.

12.17 Multiple Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

12.18 Remedies Cumulative. The remedies under this Agreement are cumulative and shall not exclude any other remedies to which any person may be lawfully entitled.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

BLOKABLE COMMON STOCK, INC.

By: Aaron Holm

Name: Aaron Holm

Title: Co-CEO

Address:

____________________

E-Mail: aaron@blokable.com

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

BLOKABLE SERIES SEED, INC.

By: Aaron Holm

Name: Aaron Holm

Title: Co-CEO

Address:

____________________

E-Mail: aaron@blokable.com

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

BLOKABLE SERIES A, INC.

By: Aaron Holm

Name: Aaron Holm

Title: Co-CEO

Address:

____________________
____________________

E-Mail: aaron@blokable.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Aaron Holm

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Alliance of Angels Seed Fund II Blocker, Inc.
(Print Name of Member)

By: _________________

Name: Yi-Jian Ngo

Title: President

Address: 719 Second Ave

Suite 1403

Seattle WA 98104

E-Mail: aoa@allianceofangels.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

ANU MANOCHA
(Print Name of Member)

By: ANU

Name: ANU MANOCHA
Title: Ind54dup

Address: 15 Ginder Bush Rd
Levittown PA 19057

E-Mail: Amanochap@VEBiz.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Blair Barnes

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Blake Gillett

(Print Name of Member)

By: Blake Gillett

Name:

Title:

Address: 5006 Park Street
Shawnee, Kansas 66216

E-Mail: Blake.Gillett@kclife.com
Blake.Gillett@Outlook.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Blokable Seed, a series of Jason's Syndicate, LLC
(Print Name of Member)

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

Address: 6510 S Millrock Dr #400
Salt Lake City, UT 84121

E-Mail: deals@assure.co

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Blokable Series Only SeedInvest Holdings I
(Print Name of Member)

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

Address: 6510 S Millrock Dr Suite #400
Salt Lake City, UT 84121

E-Mail: deals@assure.co

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Blokable Syndicate, a series of Jason's Syndicate, LLC
(Print Name of Member)

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

Address: 6510 S Millrock Dr #400
Salt Lake City, UT 84121

E-Mail: deals@assure.co

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Blokable, a Series of LeFund, LLC
(Print Name of Member)

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

Address: 6510 S Millrock Dr #400
Salt Lake City, UT 84121

E-Mail: deals@assure.co

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Blokable-2, a Series of Jason's Syndicate, LLC
(Print Name of Member)

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

Address: 6510 S Millrock Dr Suite #400
Salt Lake City, UT 84121

E-Mail: deals@assure.co

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Blokable-4, a Series of Jason's Syndicate, LLC
(Print Name of Member)

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Manager, Assure fund Mgmt II

Address: 6510 S Millrock Dr #400
Salt Lake City, UT 84121

E-Mail: deals@assure.co

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Bluetail Ventures LLC
(Print Name of Member)

By: Wesley Mahler

Name: Wes Mahler

Title: Manager

Address: 1725 NE 44th Ave
Portland, OR 97213

E-Mail: mahlerwes@gmail.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

BUILT ENVIRONMENT INNOVATION HOLDINGS, INC
(Print Name of Member)

By:

Name: TRAVIS D. CONNORS
Title: PRESIDENT

Address: 75 ARLINGTON ST
BOSTON, MA 02116

E-Mail: travis@buildingventures.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

CBS Holdings LLC
(Print Name of Member)

By: Pat lamb

Name: [Signature]
Title: Director

Address: 701 Fifth Ave, Suite 3600
Seattle, WA 98104

E-Mail: lamb@carneylaw.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Choi Angels LP

(Print Name of Member)

By:

Name:

Rajiv Kapoor

Title:

CEO

Address:

19 Roselle Avenue

Pleasantville, NY 10570

E-Mail:

rajiv@choiangels.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Dale Pennington

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Daniel Kranzler

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Dennis Joyce
(Print Name of Member)

By: [Signature]

Name: Dennis Joyce
Title: Investor

Address: 1702 S. Fernade Dr
Tacoma WA 98465

E-Mail: dennis.joyce@tacomaventuridad.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

FCC SPV 1, LLC
(Print Name of Member)

By: _Rohit Gupta_

Name: Rohit Gupta

Title: Manager

Address: 1400 Shattuck Ave.
Suite 12-132
Berkeley, CA 94709

E-Mail: rohit@futurecommunities.vc

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

DocuSign Envelope ID: 9A81D843-8C80-46D8-ABEF-C9803B2A0A8A

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

FEI VENTURES, LLC

(Print Name of Member)

DocuSigned by:
By: Eric A. Gallo
7405707086344

Name: Eric A. Gallo

Title: Secretary

Address: 12500 Jefferson Ave.
Newport News, VA 23602

E-Mail: eric.gallo@ferguson.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Gino Borges & Helma Mueller

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Gino Borges Living Trust dated Nov. 7, 2011
(Print Name of Member)

By: Gino Borges

Name: gino borges

Title: n/a

Address: 936 delmar way
reno, nv 89509

E-Mail: ginoborges@gmail.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

Henrik Strabo and Rebecca R Strabo
MEMBERS: tenants in common

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

HT Ventures LLC

(Print Name of Member)

By:

Name: Thomas Day Newbold

Title: Partner

Address: c/o Thomas Newbold

U Laboratore 27

16200 Praha 6, Czech Republic

E-Mail: HTVenturesLLC@gmail.com

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Igneous Ventures, LLC

(Print Name of Member)

By: Steve Kalalian

Name: Steve Kalalian

Title: Managing Member

Address: PO Box 492

Jackson, WY 83001

E-Mail: buddah10012@yahoo.com

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Jason Kim

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Jean Pierre Veillet

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Jeff Castro

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Jennifer Lum

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

DocuSign Envelope ID: 84C01734-8C9A-43D5-969D-C20ED6ADBD39

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

Joe Walin

(Print Name of Member)

DocuSigned by:
By: Joe Walin
58F17965565470

Name: Joe Walin

Title:

Address: 4854 east Mercer way
Mercer island, WA 98040

E-Mail: wallin@carneylaw.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Justin Huff

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

DocuSign Envelope ID: 2D2B220A-19BB-4B81-855E-6B9786CC5867

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

Kapor Capital I, L.P.

(Print) --- DocuSigned by:

By: Mitchell Kapor
CCEFDC42024E4C7

Mitchell Kapor

Name: Founding Managing Member
Title:

Address: 2148 Braodway

Oakland, CA 94612

E-Mail: investments@kaporcenter.org

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

DocuSign Envelope ID: CD81BC1F-6576-4E48-8F0D-2033883B6FC7

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

Kapor Capital II, L.P.

(Print Name) DocuSigned by:

By: Mitchell Kapor
CCEFDC42024E4C7

Name: Mitchell Kapor

Title: Founding Managing Member

Address: 2148 Broadway

Oakland, CA 94612

E-Mail: investments@kaporcenter.org

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

DocuSign Envelope ID: CD81BC1F-6576-4E48-8F0D-2033883B6FC7

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

Kapor Klein Revocable Trust dated 3/22/17

(Print Name of Member)
DocuSigned by:

By: Mitchell Kapor
CCEFDC42024E4C7

Mitchell Kapor

Name:

Title: Trustee

Address: 2148 Broadway

Oakland, CA 94612

E-Mail: investments@kaporcenter.org

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Kendall Saville

(Print Name of Member)

By:

Name: Kendall Saville

Title: Angel Investor

Address: 4425 Esta Lane
Soquel, Ca 95073

E-Mail: ksaville@gmail.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

LAUNCH Incubator I, LLC

(Print Name of Member)

By:

Name: Jason Calacanis

Title: General Partner

Address: 767 Bryant Street, #203

San Francisco, CA 94107

E-Mail: fund@launch.co

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

Doc ID: f0be5ee7b137e9b90720f84c6675f34c7673db34

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

LC Ventures, LLC

(Print Name of Member)

By: Brendan Lesch

Name: Brendan Lesch

Title: Member

Address: 8 Pond Edge Rd

Westport, CT 06880

E-Mail: bleschjr@gmail.com

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

MALCOLM HAMILTON
(Print Name of Member)

By:

Name: MALCOLM HAMILTON
Title: PRESIDENT

Address: 605-47 ST CLAIR AVE W.
TORONTO ON CANADA
M4V 3A5

E-Mail: hamilton47@rogers.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

2

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

MARK HARRINGTON
(Print Name of Member)

By:

Name:
Title:

Address: P.O. Box 1290
LANGLEY, WA
98260

E-Mail: mharrington4685@yahoo.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

Scanned with CamScanner

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Michael Duncan

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Museum Investments Limited
(Print Name of Member)

By:

Name: John Caetano Michael Mahtani

Title: as directors of Gibro Corporate Management Ltd

Address: Suite 4, 4 Giro's Passage, Gibraltar

E-Mail: icalderon@gibro.com and jcaetano@gibro.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** My Tam Nguyen

\_\_\_\_\_

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Odd Origins, LLC

(Print Name of Member)

By: Ryan Feit

Name: Ryan Feit

Title: Manager

Address: 61 Broadway, Suite 1705

New York, NY 10006

E-Mail: team@oddorigins.com

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Peter Trahms-Neudorfer LLC
(Print Name of Member)

By:

Name: Peter Trahms-Neudorfer
Title: President

Address: 2215 22nd Ave E
Seattle, WA 98112

E-Mail: ptrahms@gmail.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Prosper Capital, LLC
(Print Name of Member)

By: _Brian Biege_

Name: Brian Biege

Title: President

Address: 929 108th AVE NE
Bellevue WA 98004

E-Mail: brian@theprospercompany.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Rise of the Rest Seed Fund, LP

(Print Name of Member)

By: Rise of the Rest Seed Fund GP, LLC
Its: General Partner

Stephen M. Case

Name: Stephen M. Case

Title: Operating Manager

Address: 1717 Rhode Island Avenue, NW

10th Floor

Washington, DC 20036

E-Mail: ROTR.Reporting@Revolution.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

ROBERT H. HILLEY II
(Print Name of Member)

By:

Name:

Title:

Address: 838 COLIMA ST.
LAS VEGAS, CA 92027

E-Mail: bobbyhilley@gmail.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Sandra Anuras

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Scacco Trust Created February 8, 2000
(Print Name of Member)

By: David Scacco

Name: David Scacco

Title: trustee

Address: 2 belbrook way
atherton, ca 94027

E-Mail: david.scacco@gmail.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

SI Selections Fund I, L.P.

(Print Name of Member)

By: Ryan Feit

Name: Ryan Feit

Title: Manager

Address: 61 Broadway, Suite 1705

New York, NY 10006

E-Mail: team@oddorigins.com

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Silva L. Chambers
(Print Name of Member)
By: Silva Chambers

Name:
Title: scif

Address: 86220 Dery Rd.
Pleasant Hill, OR 97455

E-Mail: silva@silvamgmt.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

Stephen Chin

(Print Name of Member)

By:

Name: Stephen Chin

Title:

Address: 4 Beacon Way, No. 305
Jersey City, NJ 07304

E-Mail: schin@fsadvisor.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Stephen Gullo

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Steve Kalalian

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Swell Partners

(Print Name of Member)

By:

Name: James B Ralston III

Title:

GP

Address: 36 Conselyea St

Brooklyn, NY 11211

E-Mail: Rusty@swell.vc

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

DocuSign Envelope ID: C658C521-71C0-4628-7D47-3FB672465662

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

Ten Eighty Capital

(Print Name of Member)

DocuSigned by:
By: Ben Rifkin
F6788232FC8448F...

Name: Ben Rifkin

Title: President and CEO

Address: PO Box 590, Kamas, UT 84036

E-Mail: brifkin@teneighty.us

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

The Jon Staenberg Trust
(Print Name of Member)

By: Jon Staenberg

Name: Jon Staenberg
Title: Trustee

Address: 2121 Terry Avenue, #1403
seattle, wa 98121

E-Mail: jon@staenberg.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

# MEMBER:

The LAUNCH Fund I, LP (Blocker name TBD)
(Print Name of Member)

By:

Name: Jason Calacanis

Title: General Partner

Address: 767 Bryant Street, #203
San Francisco, CA 94107

E-Mail: Fund@launch.co

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

Doc ID: f0be5ee7b137e9b90720f84c6675f34c7673db34

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

The Marc R Benioff Revocable Trust U/A/D 12/3/04
(Print Name of Member)

By: Lindsay Sanders

Name: Lindsay Sanders

Title: Attorney-in-fact

Address: c/o Ekahi Aloha LLC

P.O. Box 649

Orinda, CA 94563

E-Mail: lindsay@alohaorinda.com

**SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Timothy Miller

(Print Name of Member)

By:

Name: Timothy Miller

Title:

Address: ZHOY ST.
SACRAMENTO, CA 95818

E-Mail: timemiller@mac.com

SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** Valentina Vitols Bello

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

DocuSign Envelope ID: 81C6CBD5-D830-46ED-ABAF-724B13BADE93

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBER:**

VCVC IV LLC

By: VCVC Management IV LLC, Its Manager

By: Cougar Investment Holdings LLC, Its Manager

DocuSigned by:  
0771B0CDD7174B0...

Name: Danielle Harper
Title: Vice President

Address:
505 Fifth Avenue South, #900
Seattle, WA 98104

E-Mail: IMLegalNotices@vulcan.com

**SIGNATURE PAGE TO BLOKABLE, LLC
OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

**MEMBERS:** William E. Sander II

\_\_\_\_\_

**SIGNATURE PAGE TO BLOKABLE, LLC**
**AMENDED AND RESTATED OPERATING AGREEMENT**

IN WITNESS WHEREOF, the undersigned have executed or caused to be executed this Amended and Restated Operating Agreement for Blokable, LLC, a Delaware limited liability company.

MEMBER:

Ziemba Group LLC

(Print Name of Member)

By: Sam Ziemba

Name: Sam Ziemba

Title: Member

Address: PO BOX 3156

Bellevue WA 98009-3156

E-Mail: Sam.ziemba@gmail.com

SIGNATURE PAGE TO BLOKABLE, LLC

AMENDED AND RESTATED OPERATING AGREEMENT

4140-0439-6584.4

# SPOUSAL CONSENT

The undersigned is the spouse of Timothy Miller and acknowledges that he/she has read the foregoing Agreement dated as of January 28, 2021, and understands its provisions. The undersigned hereby expressly approves of and agrees to be bound by the provisions of the Agreement in its entirety, including, but not limited to, those provisions relating to the sales and transfers of Interests and the restrictions thereon. If the undersigned predeceases his/her spouse when his/her spouse owns any Interest in the Company, he/she hereby agrees not to devise or bequeath whatever community property interest or quasi-community property interest he/she may have in the Company in contravention of the Agreement.

Dated as of: 1/28/2021

By: [Signature]
Name: NIKAN CAMPBELL-MILLER

SPOUSAL CONSENT SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

4140-0439-6584.4

# **EXHIBIT A**

# **NAMES AND ADDRESSES OF MEMBERS AND TOTAL CAPITALIZATION  
AS OF FEBRUARY 1, 2021  
[SUBJECT TO UPDATE]**

| No. | Member's Name | Member's Address | Member's Email | No. of Common Shares | No. of Series Seed Preferred Shares | No. of Series A Preferred Shares |
| --- | --- | --- | --- | --- | --- | --- |
| 1 | Blokable Common Stock, Inc. | 1750 Creekside Oaks Dr., Suite 130 Sacramento, CA 95833 | aaron@blokable.com | 14,374 |  |  |
| 2 | Blokable Series Seed, Inc. | 1750 Creekside Oaks Dr., Suite 130 Sacramento, CA 95833 | aaron@blokable.com |  | 572,706 |  |
| 3 | Blokable Series A, Inc. | 1750 Creekside Oaks Dr., Suite 130 Sacramento, CA 95833 | aaron@blokable.com |  |  | 374,840 |
| 4 | Aaron Holm | 309 NW Dogwood Street Issaquah, WA 98027 | aaron@blokable.com | 883,966 |  |  |
| 5 | Alliance of Angels Seed Fund II Blocker, Inc. | 719 Second Ave, Suite 1403 Seattle, WA 98104 | aoa@allianceofangels.com |  | 23,520 |  |
| 6 | Anu Manocha | 15 Gingerbush Road Levittown, PA 19057 | amanocha@uebiz.com |  | 69,500 |  |
| 7 | Blair Barnes | 255 SW Harrison St., TH05 Portland, Oregon 97201 | blair.barnes@yahoo.com | 33,750 |  |  |
| 8 | Blake Gillett | 5006 Park Street Shawnee, KS 66216 | blake.gillett@kclife.com |  | 24,972 | 7,036 |

A-1

4140-0439-6584.5

| No. | Member's Name | Member's Address | Member's Email | No. of Common Shares | No. of Series Seed Preferred Shares | No. of Series A Preferred Shares |
| --- | --- | --- | --- | --- | --- | --- |
| 9 | Blokable Seed, a series of Jason's Syndicate, LLC | 6510 S Millrock Dr #400 Salt Lake City, UT 84121 | deals@assure.co |  | 105,924 |  |
| 10 | Blokable Series Only SeedInvest Holdings I | 6510 S Millrock Dr #400 Salt Lake City, UT 84121 | deals@assure.co |  | 113,652 |  |
| 11 | Blokable Syndicate, a series of Jason's Syndicate, LLC | 6510 S Millrock Dr #400 Salt Lake City, UT 84121 | deals@assure.co |  | 110,852 |  |
| 12 | Blokable, a Series of LeFund, LLC | 6510 S Millrock Dr #400 Salt Lake City, UT 84121 | deals@assure.co |  |  | 22,123 |
| 13 | Blokable-2, a Series of Jason's Syndicate, LLC | 6510 S Millrock Dr #400 Salt Lake City, UT 84121 | deals@assure.co |  |  | 438,776 |
| 14 | Blokable-4, a Series of Jason's Syndicate, LLC | 6510 S Millrock Dr #400 Salt Lake City, UT 84121 | deals@assure.co |  |  | 561,961 |
| 15 | Bluetail Ventures LLC | 1725 NE 44th Ave Portland, OR 97213 | mahlerwes@gmail.com |  |  | 55,309 |
| 16 | Built Environment Innovation Holdings, Inc. | 75 Arlington Street Boston, MA 02116 | travis@buildingventures.com |  | 110,832 | 276,548 |
| 17 | CBS Holdings, LLC | 701 Fifth Ave, Suite 3600 Seattle, WA 98104 | lamb@carneylaw.com | 11,383 |  |  |
| 18 | chai angels LLC | 19 Roselle Avenue Pleasantville, NY 10570 | rajivchai@gmail.com |  | 46,554 |  |

A-2

4140-0439-6584.5

| No. | Member's Name | Member's Address | Member's Email | No. of Common Shares | No. of Series Seed Preferred Shares | No. of Series A Preferred Shares |
| --- | --- | --- | --- | --- | --- | --- |
| 19 | Dale Pennington | 1235 E Wilmington Blvd Apt 514 Salt Lake City, UT 84106 | penndevelop@gmail.com | 200 |  |  |
| 20 | Daniel Kranzler | 2815 Eastlake Ave. E. Suite 300 Seattle WA 98102 | dan@kranzler.com |  | 6,957 |  |
| 21 | Dennis Joyce | 1702 S. Fernside Drive Tacoma, WA 98465 | dennis.joyce@tacomaventurefund.com |  | 69,953 | 108,924 |
| 22 | FCC SPV 1, LLC | 1400 Shattuck Ave., Suite 12-132 Berkeley, CA 94709 | rohit@futurecommunities.vc |  |  | 66,371 |
| 23 | FEI Ventures, LLC | 12500 Jefferson Ave. Newport News, VA 23602 | eric.gallo@ferguson.com |  |  | 110,619 |
| 24 | Gino Borges & Helma Mueller | 936 Delmar Way Reno, NV 89509 | ginoborges@gmail.com helmamuellerborges@gmail.com |  |  | 22,123 |
| 25 | Gino Borges Living Trust dated Nov. 7, 2011 | 936 Delmar Way Reno, NV 89509 | ginoborges@gmail.com |  | 11,083 | 14,457 |
| 26 | Henrik Strabo and Rebecca R Strabo tenants in common | 3821 East Prospect Street Seattle, WA 98112 | henrik.strabo@gmail.com rstrabo@gmail.com |  |  | 12,699 |
| 27 | HT Ventures LLC | c/o Thomas Newbold U Laboratory 27 16200 Praha 6, Czech Republic | htventuresllc@gmail.com |  | 20,509 |  |
| 28 | Igneous Ventures, LLC | PO Box 492 Jackson, WY 83001 | buddah10012@yahoo.com |  | 149,524 | 57,861 |

A-3

4140-0439-6584.5

| No. | Member's Name | Member's Address | Member's Email | No. of Common Shares | No. of Series Seed Preferred Shares | No. of Series A Preferred Shares |
| --- | --- | --- | --- | --- | --- | --- |
| 29 | Jason Kim | 15532 49th Pl W Edmonds, WA, 98026 | jason1983@gmail.com | 3,937 |  |  |
| 30 | Jean Pierre Veillet | 240 SE 2 nd Portland, Oregon 97210 | jp@nws-properties.co m | 4,312 |  |  |
| 31 | Jeff Castro | 3917 NE 29th Ave Portland, OR 97212 | jbcstro@gmail.com | 9,583 |  |  |
| 32 | Jennifer Lum | 9 W Broadway, Unit 504 Boston, MA 02127 | jennifer.lum@gmail.com | 18,687 | 8,044 |  |
| 33 | Joe Wallin | 4854 East Mercer Way Mercer island, WA 98040 | wallin@carneylaw.com | 4,879 |  |  |
| 34 | Justin Huff | 2015 E Jefferson St Seattle, WA 98122 | jjhuff@mspin.net | 6,333 |  |  |
| 35 | Kapor Capital I, L.P. | 2148 Broadway Oakland, CA 94612 | investments@kaporcenter.org |  | 55,416 | 144,426 |
| 36 | Kapor Capital II, L.P. | 2148 Broadway Oakland, CA 94612 | investments@kaporcenter.org |  |  | 254,848 |
| 37 | Kapor Klein Revocable Trust dated 3/22/17 | 2148 Broadway Oakland, CA 94612 | investments@kaporcenter.org |  |  | 221,239 |
| 38 | Kendall Saville | 4425 Esta Lane Soquel, CA 95073 | ksaville@gmail.com |  | 7,031 |  |

A-4

4140-0439-6584.5

| No. | Member's Name | Member's Address | Member's Email | No. of Common Shares | No. of Series Seed Preferred Shares | No. of Series A Preferred Shares |
| --- | --- | --- | --- | --- | --- | --- |
| 39 | LAUNCH Incubator I, LLC | 767 Bryant Street, #203 San Francisco, CA 94107 | fund@launch.co |  |  | 22,883 |
| 40 | LC Ventures, LLC | 8 Pond Edge Rd Westport, CT 06880 | bleschjr@gmail.com |  |  | 11,061 |
| 41 | Malcolm Hamilton | 605-47 St Clair Ave W. Toronto ON M4V 3A5 Canada | hamilton47@rogers.com | 9,583 |  |  |
| 42 | Mark Harrington | PO Box 1290 Langley, WA 98260 | mharrington4685@yahoo.com |  | 28,913 |  |
| 43 | Michael Duncan | 120 NE Bridgeton Road Portland, OR 97211 | floatofficepdx@gmail.com | 45,000 |  |  |
| 44 | Museum Investments Limited | Suite 4, 4 Giro's Passage Gibraltar | jcaetano@gibro.com |  | 25,491 |  |
| 45 | My Tam Nguyen | 1822 S King St Seattle, WA 98144 | mytamn@gmail.com | 6,229 |  |  |
| 46 | Odd Origins, LLC | 61 Broadway, Suite 1705 New York, NY 10006 | team@oddorigins.com |  | 9,536 |  |
| 47 | Peter Trahms-Neudorfer LLC | 2215 22nd Ave E Seattle, WA 98112 | ptrahms@gmail.com |  |  | 4,279 |
| 48 | Prosper Capital, LLC | 929 108th Ave NE Bellevue WA 98004 | brian@theprospercompany.com |  | 5,541 |  |

4140-0439-6584.5

A-5

| No. | Member's Name | Member's Address | Member's Email | No. of Common Shares | No. of Series Seed Preferred Shares | No. of Series A Preferred Shares |
| --- | --- | --- | --- | --- | --- | --- |
| 49 | Rise of the Rest Seed Fund, LP | 1717 Rhode Island Avenue, NW 10 th Floor Washington, DC 20036 | rotr.reporting@revolution.com |  |  | 144,381 |
| 50 | Robert H. Hilley IV | 838 Colima Street La Jolla, CA 92037 | bobbyhilley@gmail.com |  | 11,083 |  |
| 51 | Sandra Anuras | 1521 2nd Ave #1704 Seattle, WA 98101 | skanuras@gmail.com | 15,000 |  |  |
| 52 | Scacco Trust Created February 8, 2000 | 2 Belbrook Way Atherton, CA 94027 | david.scacco@gmail.com |  |  | 22,123 |
| 53 | SI Selections Fund I, L.P. | 61 Broadway, Suite 1705 New York, NY 10006 | team@oddorigins.com |  | 139,001 |  |
| 54 | Silva Chambers | 86220 Dery Road Pleasant Hill, OR 97455 | silva@silvamgmt.com |  | 17,734 | 22,123 |
| 55 | Stephen Chin | 4 Beacon Way, No. 305 Jersey City, NJ 07304 | schin@fsadvisor.com | 9,343 |  |  |
| 56 | Stephen Gullo | 46 Gray St Boston, MA 02116 | gullo.steve@gmail.com | 5,031 | 36,025 |  |
| 57 | Steve Kalalian | PO Box 492 Jackson, WY 83001 | buddah10012@yahoo.com | 23,000 |  |  |
| 58 | Swell Partners Fund I, L.P. | 36 Conselyea Street Brooklyn, NY 11211 | rusty@swell.vc |  |  | 44,247 |

A-6

4140-0439-6584.5

| No. | Member's Name | Member's Address | Member's Email | No. of Common Shares | No. of Series Seed Preferred Shares | No. of Series A Preferred Shares |
| --- | --- | --- | --- | --- | --- | --- |
| 59 | Ten Eighty Capital LLC | PO Box 590 Kamas, UT 84036 | brifkin@teneighty.us |  |  | 110,619 |
| 60 | The Jon Staenberg Trust | 2121 Terry Avenue, #1403 Seattle, WA 98121 | jon@staenberg.com |  |  | 7,232 |
| 61 | The LAUNCH Fund I, L.P. | 767 Bryant Street, #203 San Francisco, CA 94107 | fund@launch.co |  | 167,984 |  |
| 62 | The Marc R Benioff Revocable Trust U/A/D 12/3/04 | c/o Ekahi Aloha LLC P.O. Box 649 Orinda, CA 94563 | lindsy@alohaorinda.com |  |  | 331,858 |
| 63 | Timothy Miller | 2110 V Street Sacramento, CA 95818 | timemiller@mac.com | 40,000 |  |  |
| 64 | Valentina Vitols Bello | 3802 223rd Ave SE Sammamish WA 98075 | valenvitols@gmail.com |  | 31,557 |  |
| 65 | VCVC IV LLC | 505 Fifth Avenue South, #900 Seattle, WA 98104 | IMLegalNotices@vulcan.com |  | 221,665 | 1,651,139 |
| 66 | William E. Sander II | 1121 Parkside Dr. E. Seattle WA 98112 | nsander@ahtins.com |  |  | 48,573 |
| 67 | Ziemba Group, LLC | PO Box 3156 Bellevue, WA 98009-3156 | sam.ziemba@gmail.com |  | 11,083 |  |
| TOTAL: |  |  |  | 1,144,590 | 2,212,642 | 5,170,678 |

4140-0439-6584.5

A-7

# **EXHIBIT B**

# **NAMES AND ADDRESSES OF MANAGERS  
AS OF FEBRUARY 1, 2021  
[SUBJECT TO UPDATE]**

| Manager | Address |
| --- | --- |
| Aaron Holm | 1750 Creekside Oaks Dr., Suite 130, Sacramento, CA 95833 |
| Nelson Del Rio | 1750 Creekside Oaks Dr., Suite 130, Sacramento, CA 95833 |
| Jason Calacanis | 1750 Creekside Oaks Dr., Suite 130, Sacramento, CA 95833 |
| Mitchell Kapor | 1750 Creekside Oaks Dr., Suite 130, Sacramento, CA 95833 |
| Yongbai Choi | 1750 Creekside Oaks Dr., Suite 130, Sacramento, CA 95833 |

B-1

4140-0439-6584.5

# EXHIBIT C

## ADJUSTMENTS TO CONVERSION PRICE

Any capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in this Amended and Restated Operating Agreement of Blokable, LLC, to which this Exhibit C is attached.

(i) Issuance of Additional Shares below Conversion Price. If the Company should at any time or from time to time issue any Additional Shares after the date of this Agreement without consideration or for a consideration per share less than the Conversion Price for any series of Preferred Shares in effect immediately prior to the issuance of such Additional Shares (as adjusted for Shares splits, Shares dividends, reclassification and the like), the Conversion Price for any such series in effect immediately prior to each such issuance shall automatically be adjusted as follows:

(A) The adjusted Conversion Price shall be determined by multiplying the applicable Conversion Price then in effect by a fraction, (x) the numerator of which shall be the number of Common Shares outstanding immediately prior to such issuance (the 'Outstanding Common') plus the number of Common Shares that the aggregate consideration received by the Company for such issuance would purchase at such Conversion Price; and (y) the denominator of which shall be the number of Outstanding Common plus the number of Additional Shares. For purposes of the foregoing calculation, the term 'Outstanding Common' shall include Common Shares deemed issued pursuant to Section (iv)(A) below.

(B) In the case of the issuance of Common Shares for cash, the consideration shall be deemed to be the amount of cash paid therefor before deducting any reasonable discounts, commissions or other expenses allowed, paid or incurred by the Company in connection with the issuance and sale thereof. In the case of the issuance of the Common Shares for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to be the fair value thereof as determined by the Board of Managers irrespective of any accounting treatment.

(ii) Share Splits and Share Distributions. In the event the Company should at any time or from time to time after the date of this Agreement fix a record date for the effectuation of a split or subdivision of the outstanding Common Shares or the determination of Common Members entitled to receive a dividend or other distribution payable in additional Common Shares or Common Share Equivalents (as defined below) without payment of any consideration by such holder for the additional Common Shares or the Common Share Equivalents (including the additional Common Shares issuable upon conversion or exercise thereof), then, as of such record date (or the date of such dividend distribution, split or subdivision if no record date is fixed), the Conversion Price for each series of Preferred Shares shall be appropriately decreased so that the number of Common Shares issuable on conversion of a series of Preferred Shares shall be appropriately increased in proportion to such increase of the aggregate number of Common Shares outstanding and those issuable with respect to such Common Share Equivalents.

C-1

4140-0439-6584.5

(iii) Recapitalizations. If at any time or from time to time there shall be a recapitalization of the Common Shares (other than a subdivision, combination or merger or sale of assets transaction provided for elsewhere herein), a provision shall be made so that the Preferred Member shall thereafter be entitled to receive upon conversion of such Preferred Shares the number of Common Shares or other securities or property of the Company or otherwise, to which a holder of Common Shares deliverable upon conversion would have been entitled on such recapitalization.

(iv) Rules of Application. The following provisions shall apply for purposes of this Exhibit C:

(A) In the case of the issuance of securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly, Common Shares (the “Common Share Equivalents”), the aggregate maximum number of Common Shares deliverable upon conversion, exchange or exercise (assuming the satisfaction of any conditions to convertibility, exchangeability or exercisability, including, without limitation, the passage of time, but without taking into account potential antidilution adjustments) of any Common Share Equivalents and subsequent conversion, exchange or exercise thereof shall be deemed to have been issued at the time such securities were issued or such Common Share Equivalents were issued and for a consideration equal to the consideration, if any, received by the Company for any such securities and related Common Share Equivalents (excluding any cash received on account of accrued interest or accrued dividends), plus the minimum additional consideration, if any, to be received by the Company (without taking into account potential antidilution adjustments) upon the conversion, exchange or exercise of any Common Share Equivalents (the consideration in each case to be determined in the manner provided in Section (i)(B) above.

(B) In the event of any change in the number of Common Shares deliverable or in the consideration payable to the Company upon conversion or exercise of such Common Share Equivalents (other than a change resulting from the antidilution provisions thereof), the Conversion Price for a series of Preferred Shares, to the extent in any way affected by or computed using such Common Share Equivalents, shall be recomputed to reflect such change, but no further adjustment shall be made for the actual issuance of Common Shares or any payment of such consideration upon the exercise of any such options or rights or the conversion or exchange of such securities.

(C) Upon the termination or expiration of the convertibility or exercisability of any such Common Share Equivalents, the Conversion Price for a series of Preferred Shares, to the extent in any way affected by or computed using such Common Share Equivalents, shall be recomputed to reflect the issuance of only the number of Common Shares (and Common Share Equivalents which remain convertible or exercisable) actually issued upon the conversion or exercise of such Common Share Equivalents.

C-2

4140-0439-6584.5

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: February 1, 2021

# **MEMBERS:**

Blokable Series Only SeedInvest Holdings I

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

**IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC  
AMENDED AND RESTATED OPERATING AGREEMENT**

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: February 1, 2021

**MEMBERS:**

Blokable Syndicate, a series of Jason's Syndicate, LLC

By: Keith Mayer
(signature)

Name: Keith Mayer

Title: Officer of the Fund's Manager

IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: February 1, 2021

# **MEMBERS:**

Blokable, a Series of LeFund, LLC

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

**IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC  
AMENDED AND RESTATED OPERATING AGREEMENT**

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: February 1, 2021

# **MEMBERS:**

Blokable-2, a Series of Jason's Syndicate, LLC

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

**IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC  
AMENDED AND RESTATED OPERATING AGREEMENT**

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: February 1, 2021

# **MEMBERS:**

Blokable-4, a Series of Jason's Syndicate, LLC

By: Keith Mayer

Name: Keith Mayer

Title: Officer of the Fund's Manager

**IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC  
AMENDED AND RESTATED OPERATING AGREEMENT**

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: February 1, 2021

# **MEMBERS:**

Bluetail Ventures LLC

By: Wesley Mahler

Name: Wes Mahler

Title: manager

**IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC  
AMENDED AND RESTATED OPERATING AGREEMENT**

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: January 29, 2021

**MEMBERS:**

RUILT ENVIRONMENT INNOVATION HOLDINGS, INC.

By: (Signature)

Name: TRAVIS D. CONNORS
Title: PRESIDENT

IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: Jan 25, 2021

# MEMBERS:

CBS Holdings LLC
By: [Signature]
(Signature)
Name: Pat Lamb
Title: Director

IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: January 28, 2021

MEMBERS:

Chai Angels LP
By: [Signature]
(Signature)
Name: Rajiv Kapoor
Title: CEO

IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC
AMENDED AND RESTATED OPERATING AGREEMENT

If any provision of this proxy or any part of any such provision is held under any circumstances to be invalid or unenforceable in any jurisdiction, then (a) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be deemed amended to conform to applicable laws so as to be valid and enforceable to the fullest possible extent, (b) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction, and (c) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or enforceability of the remainder of such provision or the validity or enforceability of any other provision of this proxy. Each provision of this proxy is separable from every other provision of this proxy, and each part of each provision of this proxy is separable from every other part of such provision.

Dated: February 1, 2021

**MEMBERS:** Dale Pennington

Dale Pennington

**IRREVOCABLE PROXY SIGNATURE PAGE TO BLOKABLE, LLC  
AMENDED AND RESTATED OPERATING AGREEMENT**

**Time limit hit – remaining pages or documents were skipped.**

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Blokable, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 12-29-2020

**Physical Address:** 1750 CREEKSIDE OAKS DR STE 130, SACRAMENTO, CA, 95833

**Issuer Website:** www.blokable.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** StartEngine Capital LLC

**Intermediary CIK:** 0001665160

**Intermediary File Number:** 007-00007

**Intermediary CRD Number:** 136352

### Offering Information

**Compensation to Intermediary:** Up to 9% percent.

**Financial Interest in Issuer:** Three percent (3%) of securities of the total amount of investments raised in the offering, along the same terms as investors.

**Type of Security Offered:** Other

**Other Description of Security:** Convertible Note

**Number of Securities Offered:** 5000000

**Method for Determining Price:** Determined by Company internally

**Target Offering Amount:** $25,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** At Issuers discretion, with priority given to StartEngine Owners.

**Maximum Offering Amount:** $5,000,000.00

**Deadline to Reach Target Amount:** 06-28-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 0.00

**Total Assets (Most Recent Fiscal Year):** $826,125.00

**Total Assets (Prior Fiscal Year):** $3,018,413.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $357,137.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $2,386,107.00

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

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

**Short-Term Debt (Most Recent Fiscal Year):** $1,333,333.00

**Short-Term Debt (Prior Fiscal Year):** $1,333,333.00

**Long-Term Debt (Most Recent Fiscal Year):** $4,879,807.00

**Long-Term Debt (Prior Fiscal Year):** $1,989,857.00

**Revenues/Sales (Most Recent Fiscal Year):** $765.00

**Revenues/Sales (Prior Fiscal Year):** $44,937.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $2,153.00

**Cost of Goods Sold (Prior Fiscal Year):** $50,477.00

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

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

**Net Income (Most Recent Fiscal Year):** $-4,948,607.00

**Net Income (Prior Fiscal Year):** $-5,454,445.00

**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, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING

### Signatures

**Issuer:** Blokable, LLC

**Signature:** Nelson Del Rio

**Title:** Co CEO

---

**Signature:** Nelson Del Rio

**Title:** Co CEO

**Date:** 03-30-2023

---

**Signature:** Aaron Holm

**Title:** Co CEO / CFO / Secretary

**Date:** 03-30-2023