# EDGAR Filing Document

**Accession Number:** 0001964414
**File Stem:** 0001670254-23-000175
**Filing Date:** 2023-2
**Character Count:** 245103
**Document Hash:** 04aa31420bb8c6a758d9eda3a8da70f9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000175.hdr.sgml**: 20230227

**ACCESSION NUMBER**: 0001670254-23-000175

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 16

**FILED AS OF DATE**: 20230227

**DATE AS OF CHANGE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Midnight Harvest LLC
- **CENTRAL INDEX KEY:** 0001964414
- **IRS NUMBER:** 801766315

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31878
- **FILM NUMBER:** 23669248

**BUSINESS ADDRESS:**
- **STREET 1:** 9989 HARMONY DR
- **CITY:** INTERLOCHEN
- **STATE:** MI
- **ZIP:** 49643
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 9989 HARMONY DR
- **CITY:** INTERLOCHEN
- **STATE:** MI
- **ZIP:** 49643

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer

Midnight Harvest LLC

Legal status of issuer

Form: Limited Liability Company
Jurisdiction of Incorporation/Organization: MI
Date of organization: 3/31/2014

Physical address of issuer

9999 Hamburg Dr
Intersection No 40643

Website of issuer

http://midnight-harvest.com

Name of intermediary (through which the offering will be conducted)

Wefunder Portal LLC

CBI number of intermediary

0001670254

SLC file number of intermediary

007-00033

CBI number if applicable, of intermediary

265503

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

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

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

No

Type of security offered

☐ Common Stock
☐ Preferred Stock
☐ Debt
☐ Other

If Other, describe the security offered.

Simple Agreement for Future Equity (SAFE)

Target number of securities to be offered

50,000

Price

$1,00,000

Method for determining price

Pre-rated portion of the total principal value of $50,000; Interests will be sold in increments of $1 such investment is convertible to one unit as described under item 13.

Target offering amount

$10,000.00

Ownership/options accepted

☑ Yes
☐ No

If yes, describe how ownership/options will be allocated

☐ Pre-rate basis
☐ First-come, first-period basis
☐ Other

If other, describe how ownership/options will be allocated

As determined by the issuer

Maximum offering amount (if different from target offering amount)

$124,000.00

Deadline to reach the target offering amount

4/30/2023

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

Current number of employees

1

|  | Most recent fiscal year-end | Prior fiscal year-end |
| --- | --- | --- |
| Total Assets | $6,840.00 | $2,445.00 |
| Cash & Cash Equivalents | $6,042.00 | $2,071.00 |
| Accounts Receivable | $474.00 | $474.00 |
| Short-term Debt | $22,977.00 | $24,346.00 |
| Long-term Debt | $0.00 | $0.00 |
| Short-term Debt | $25,231.00 | $15,541.00 |
| Cost of Goods Sold | $5,264.25 | $2,340.66 |
| Taxes Paid | $0.00 | $0.00 |
| Net Income | $7,385.00 | $2,045.00 |

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

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

# Offering Statement

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

No very careful and precise or unsavering all questions. If the full and complete answers so that they are not misleading under the circumstances involved. Do not discuss any future performance or other anticipated event unless you have a reasonable basis to believe that it will actually occur within the reasonable future. If any answer requiring significant information is materially inaccurate, incomplete or misleading, the Company, its management and principal shareholders may be liable to investors based on that information.

## THE COMPANY

1. Name of issuer

Midnight Harvest LLC

## COMPANY ELIGIBILITY

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

- Organized under, and subject to the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to the reports pursuant to Section 13 or Section 7(b)(6) of the Securities Exchange Act of 1934.
- Not understatement company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(3) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding.
- Has filed with the Commission and provided for investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that utilizes or specific business plan or (to) has indicated that its business plan is to engage in a merger or acquisition with an uncontrolled company or companies.

INSTRUCTION TO QUESTION 3: If any of these statements are not true, then you are NOT eligible to rely on this exemption under Section 4(a)(3) of the Securities Act.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 203 of Regulation Crowdfunding?

☐ Yes ☑ No

## DIRECTORS OF THE COMPANY

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

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Matthew A Hull | Businessman | Midnight Harvest LLC | 2014 |

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

## OFFICERS OF THE COMPANY

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

| Officer | Position Held | Year Joined |
| --- | --- | --- |
| Matthew A Hull | President | 2014 |
| Matthew A Hull | Founder/Manager | 2014 |

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

INSTRUCTION TO QUESTION 1: For purposes of this Question 1, the term officer means a purchase, non-purchase, warranty, insurance or principal financial officer, compensation or principal accounting officer and any person that normally authorizes similar functions.

## PRINCIPAL SECURITY HOLDERS

6. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 55 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power.

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| Matthew Allen Hill | 1000000.0 Carminor | 88.0 |

INSTRUCTION TO QUESTION 7: Should a information issue be provided on a date due to no more than 100,000 years in the date of filing under offering statement.

Should some total voting power include all securities for which the person directly or indirectly has or shares the voting power, which includes the person to vote or to direct the voting of such securities. If the person has its right to monitor voting power, if such securities are filed 55 days, including through the exercise of any option, contract or trust, the same issue of a meeting, or other management, or if a meeting was held by a member of the board, through a registration or partnership, or otherwise to a member that would allow a person to direct or control the voting of the securities, or otherwise to make decisions on control, or, for example, as a contract that should be included as being "beneficially owned." The should include an explanation of how the securities to a person to the "Number of and Class of Securities Now Held." In order to avoid any voting equity securities, issuers will automatically perform as a result of and all outstanding securities' securities accounted.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

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

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

INSTRUCTION TO QUESTION 7: We have all possible, one company's Winnie's profile on an appendix. Appendix A is the form of a PDF format. The information will include all PDFs from each "and one." This is an on-going format. All notes will be unpublished.

This means that an information provided in your Winnie profile will be provided in the 2014 or 2015 year or later period. In general, your company will be provided in the 2016 (or 2017) period, and the company will be provided in the 2018 (or 2019) period. The company will be provided in the 2020 (or 2021) period, and the company will be provided in the 2022 (or 2023) period.

## RISK FACTORS

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

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

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

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

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

Friend 1. Old business partner. We initially agreed upon a vested schedule but during that time uncontrollable issues arose and we severed the agreement. She has been privilege to trade secret knowledge. Signed NDA in December 2018. Signed a second NDA in March 2022. Has been issued 1% of equity for her continued discretion.

Friend 2. Long time friend and has been around my work but has not been privilege to any recent work. Signed NDA in December 2018. Has been issued 1% equity for his continued discretion.

Spouse. Has been privilege to various aspects of growing month throughout the course of my research.

Farming in general is inherently risking with food born pathogens. Funds however require adequate cooking to eat and should lessen the risk sicknesses occurring from improper growing or handling. Liability waivers when purchasing our mushrooms will be required.

Mushrooms generally have a tendency to not get along with alcohol as mushrooms secrete toxins and alcohol is by definition a poison. These two mixed inside a person can sometimes result in dryness when site vary in degree. Liability waivers will be used when purchasing wholesale or direct.

We are operating under trade secret due to our being a farm. This will present a great challenge to operations as so limit as many future employees, guests, and so forth from seeing certain parts of our operations and ensuring we maintain our discovery in trade secret.

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

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

INSTRUCTION TO QUESTION 9: Avoid your individual customers and include only those you can find on a page in the issue. This is not an option to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used to be used

# The Offering

## USE OF FUNDS

9. What is the purpose of this offering?

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

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

If no other $50,000

Use of 20% Equipment (5 new sterilizers (65k/piece))

42.5% Building Rental (Modifications/water lines, electrical, and HVAC updates.)

7.5% Wefunder fees

If no other $124,000

Use of 7.5% Wefunder Fees

17% Equipment (5 new sterilizers (65k/piece))

17% Building Rental/modifications (water lines, electrical updates, HVAC updates.)

32% Working Capital (Salary)

15% Custom Hotel growing containers (get a custom mold made with our specifications.)

13.5% COGS (Supply expenses - strains, petrol dishes, substrate materials.)

INSTRUCTION TO QUESTION 10: As a case must provide a reasonable, detailed description of the manufacturer of products, and the investor must provide with an adequate amount of information to understand how the offering proceeds will be used. If no other has identified a range of possible uses, the issuer should identify and describe each possible use and the factors the issuer may consider in allocating products among the promotional. If the issuer will accept proceeds in excess of the unique offering amount, the issuer must describe the purpose, method for allocating a combination of uses and intended uses of the owners, proceeds and similar specifics. Please include all potential uses of the proceeds of the offering including one, showing up(s) only in the case of a combination (please). If you do not do so, you may have to respond to current case Friend 1. Methods as are responsible for any failure by which describe a potential use of offering proceeds.

## DELIVERY & CANCELLATIONS

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

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

platform. All references in this Form C to an investor's investment in the Company (or similar phrases) should be interpreted to include investments in a SPV.

12. How can an investor cancel an investment commitment?

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

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

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

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

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

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

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

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

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

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

## Ownership and Capital Structure

### THE OFFERING

13. Describe the terms of the securities being offered:

To view a copy of the SAFE you will purchase, please see Appendix B, Investor Contracts.
The main terms of the SAFEs are provided below:

The SAFEs, like any offering securities in the form of a Simple Agreement for Future Equity ("SAFE"), which provides investors the right to preferred units in the Company ("Preferred Units"); when and if the Company sponsors an equity offering that involves Preferred Units, on the standard terms offered by other investors.

Common to Preferred Equity. Based on our SAFEs, when we engage in an offering of equity interests involving preferred units, investors will receive a number of shares of preferred units calculated using the method that results in the greater number of preferred units:

i. the total value of the investor's investment, divided by the price of preferred units issued to new investors multiplied by, or

ii. if the valuation for the company is more than $3,500,000.00 (the "Valuation Cap"), the amount invested by the investor divided by the quotient of

a. the Valuation Cap divided by

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

Additional Terms of the Valuation Cap. For purposes of option (i) above, the Company's capitalization calculated as of immediately prior to the Equity Financing and (without double-counting, in each case calculated or as so converted to Common Unit basis):

- Includes all shares of Capital Unit issued and outstanding;

- Includes all Converting Securities;

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

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

Liquidity Events. If the Company has an initial public offering or is acquired by, merged with, or otherwise taken over by another company or new owners prior to investors in the SAFEs receiving preferred units, investors will receive:

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

Liquidity Events. In a Liquidity Event or Dissolution Event, this Safe is intended to ascertain the standard non-participating Preferred Unit. The investor's right to receive its Cash-Out Amount is:

1. Junior to payment of outstanding indebtedness and creditor claims, including contractual claims for payment and convertible promissory notes (to the extent such convertible promissory notes are not actually or notionally converted into Capital Units);
2. On par with payments for other Safes and/or Preferred Unit, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Safes and/or Preferred Units, the applicable Proceeds will be distributed one rate to the Investor and such other Safes and/or Preferred Unit in proportion to the full payments that would otherwise be due; and
3. Senior to payments for Common Units.

Securities issued by the SPV

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

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

### Voting Rights

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

### Proxy to the Lead Investor

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

### Restriction on Transferability

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

14. Do the securities offered have voting rights?

☐ Yes
☑ No

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

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

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

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

1. the investor or

2. the property re-interest of all three outstanding Safes with the same "Pool-Money Valuation Cap" and "Discount Rate" as this Safe (and Safes lacking one or both of such terms will be considered to be the same with respect to such term(s)), provided that with respect to clause (2):

A. the Purchase Amount may not be amended, waived or modified in this

B. the amount of the Invoices and each holder of such Safes must be solicited (even if not obtained), and

C. such amendment, waiver or modification treats all such holders in the same manner. "Majority re-interest" refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than 50% of the total Purchase Amount of all of such applicable group of Safes.

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

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

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

### RESTRICTIONS ON TRANSFER OF THE SECURITIES BEING OFFERED:

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

1. to the issuer;

2. to an accredited insurer;

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

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

NOTE: The term "succeeded investor" means any person who comes within any of the categories set forth in Rule 501(c) of Regulations 2, or who the latter reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

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

### DESCRIPTION OF ISSUER'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Common Units | 10,000,000 | 10,000,000 | Yes |

Securities Reserved for
Class of Security Issuance upon Exercise or Conversion

Warrants:

Options:

Describe any other rights

The company has not yet authorized preferred units, which investors in the SAFE

will receive if the SAPE converts as part of an equity financing. Preferred units will have a liquidation preference over common units.

18. How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of security identified above?

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

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

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

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

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

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

No.

20. How could the exercise of rights held by the principal shareholders identified in Question 9 above affect the purchasers of the securities being offered?

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

For example, the unitholders may change the terms of the operating agreement for the company, change the terms of securities issued by the Company, change the management of the Company, and even force our minority holders of securities. The unitholders may make changes that affect the tax treatment of the Company in ways that are enforceable to pre-tax favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company's securities in a way that negatively affects the value of the securities the investor owns. Other holders of securities of the Company may also have access to more information than the investor, leaving the investor at a disadvantage with respect to any decisions regarding the securities he or she owns.

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

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

21. How are the securities being offered being issued? Include examples of methods for how such securities may be valued by the issuer in the future, including trading subsequent corporate actions.

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

The initial amount invested in a SAPE is determined by the investor, and we do not guarantee that the SAPE will be converted into any particular number of units as discussed in Question 19, when we engage in an offering of equity interests involving Preferred Units. Investors may receive a number of Preferred Units calculated as either (1) the total value of the investor's investment, divided by the price of the Preferred Unit being issued to new investors, or (2) if the valuation for the company is more than the Valuation Cap, the amount invested divided by the quotient of (a) the Valuation Cap divided by (b) the total amount of the Company's capitalization at that time.

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

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

- unrelated third party valuations;

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

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

- current business conditions and projections;

- the marketability or lack thereof of the securities;

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

- the introduction of new products;

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

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

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

- industry trends and competitive environment;

- trends in consumer spending, including consumer confidence;

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

- the general economic outlook.

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

in the market.

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

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

The marketability and value of the investor's interest in the Company will depend upon many factors outside the control of the investor. The Company will be managed by its officers and be governed in accordance with the strategic direction and decision making of its Management, and the investor will have no independent right to name or remove an officer or member of the Management of the Company.

Following the investor's investment in the Company, the Company may sell interests to additional investors, which will dilute the percentage interest of the investor in the Company. The investor may have the opportunity to increase its investment in the Company in such a transaction, but such opportunity cannot be ensured.

The amount of additional financing needed by the Company, if any, will depend upon the maturity and objectives of the Company. The declining of an opportunity or the inability of the investor to make a follow-on investment, or the lack of an opportunity to make such a follow-on investment, may result in substantial dilution of the investor's interest in the Company.

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

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

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

A sale of the issuer or of assets of the issuer. As a minority owner of the Company, the investor will have limited or no ability to influence a potential sale of the Company or a substantial portion of its assets. Thus, the investor will rely upon the executive management of the Company to manage the Company so as to maximize value for unitholders. Accordingly, the success of the investor's investment in the Company will depend in large part upon the skill and expertise of the executive management of the Company. If the Management of the Company authorizes a sale of all or a part of the Company, or a disposition of a substantial portion of the Company's assets, there can be no guarantee that the value received by the investor, together with the fair market estimate of the value remaining in the Company, will be equal to or exceed the value of the investor's initial investment in the Company.

Transactions with related parties. The investor should be aware that there will be occasions when the Company may encounter potential conflicts of interest in its operations. On any issue involving conflicts of interest, the executive management of the Company will be guided by their good faith judgement as to the Company's best interests. The Company may engage in transactions with affiliates, subsidiaries or other related parties, which may be on terms which are not annulling, but will be in all cases consistent with the duties of the management of the Company to its unitholders. By acquiring an interest in the Company, the investor will be deemed to have acknowledged the existence of any such actual or potential conflicts of interest and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest.

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

Ease

Lender 5/3 Business Ranking

Issue date 04/15/18

Amount $25,000.00

Outstanding principal plus interest $20,500.00 as of 02/23/23

Interest rate 2.2% per annum

Current with payments Yes

Interest rate increased from . No maturity date until 01/01/2023 for each year

None.

INCOME FROM DEDUCTION IN order to reduce parent and retirement, except date and any other material terms.

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 8/2022 | Other | Common stock | $100 | General operations |
| 8/2022 | Other | Common stock | $75,000 | General operations |
| 8/2022 | Other | Common stock | $75,000 | General operations |

26. What is the issuer or any entities controlled by or under common control with the issuer's party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds the percent of the aggregate amount of capital raised by the issuer in reliance on Section 40(10) of the Securities Act during the preceding 15 month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:

1. any director or officer of the issuer;

2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;

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

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

☐ Yes
☐ No

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

Name

Matthew Hull

Amount invested

$100.00

**Transaction type** Priced round
**Issue date** 08/02/22
**Relationship** Founder

INSTRUCTIONS TO QUESTION 20. This form is a translation manual, but it is not limited to any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) at any levels of similar transactions, arrangements or relationships.

Based on a monthly fee company (Carmargo) Ltd. shall be determined as a share that is, no more than 120 days prior to the date of filing of this offering statement and every the same calculation from that in the event of the direction and location of the business.

The term "mention of the family" includes any child, stepchild, parentchild, parent, engagement, group, parent, group or group of each other, adding, whether or not, parent or group, or to the, daughter, or to the, brother or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or to the, or

Compare the amount of a share (part I) amount to any transaction without regard to the amount of the profit or loss involved in the transaction. Where it is not practicable to meet the approximate amount of the interest, disclose the approximate amount due to the transaction.

## FINANCIAL CONDITION OF THE ISSUER

17. Does the issuer have an operating history?

☑ Yes
☐ No

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

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

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

#### Overview

We grow mushrooms indoors and research other mushrooms for their use.

Our goal is to be a full time indoor model mushroom farm producing upwards of 1000lbs fresh models per week. Branch out into other highly priced fungi like truffles and wild that to the overall business model.

#### Milestones

Midnight Harvest LLC was incorporated in the State of Michigan in March 2014.

Since then, we have:

- Repeatable scientific proof and process.
- Become one of the list ever to grow models year round in a single stage system.

#### Historical Results of Operations

- *Business & Good Things*. For the period ended December 31, 2021, the Company had revenues of $23,231 compared to the year ended December 31, 2020, when the Company had revenues of $14,541.
- *Assets*. As of December 31, 2021, the Company had total assets of $6,840, including $6,042 in cash. As of December 31, 2020, the Company had $3,445 in total assets, including $2,971 in cash.
- *Net Income*. The Company has had net income of $7,583 and net income of $2,943 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- *Liabilities*. The Company's liabilities totaled $22,977 for the fiscal year ended December 31, 2021 and $24,546 for the fiscal year ended December 31, 2020.

#### Liquidity & Capital Resources

To-date, the company has been financed with $150,100 in equity and a $25,000 rate of credit.

After the conclusion of this offering, should we hit our minimum funding target, our projected runway is 24 months before we need to raise further capital.

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

We will likely require additional financing in excess of the proceeds from the offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 24 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

#### Runway & Short/Mid Term Expenses

Midnight Harvest LLC cash in hand is $116,431.01 as of November 2022. Over the last three months, revenues have averaged $508.32/month, cost of goods sold has averaged $453/month, and operational expenses have averaged $5,901.93/month, for an average burn rate of $5,901.93 per month. Our intent is to be profitable in 12 months.

In 2018 I took on a line of credit of $29K. I've only drawn out $20.5K and have not drawn any further since we are profitable.

At the current rate of growth I'd be able to pay off that amount in 2022.

Initially we invested in low level assets and had a lot of burn. Then costed our systems which provided for greater efficiency of time and production. Siding from 5-10lbs/week to 50-60lbs/week.

Now we buy in bulk to save on material costs and have been reinvesting in assets to prevent downtime.

Currently we generate revenue from the sales of mistake of which is profitable.

In order to scale the model research we'll be attaining not obliate production and

moving into scaling model. We do not plan on being profitable in our first year but looking to perfect our processes, determine timelines, and yields.

Expenses will be heavy due to changes that need to be made in order to be a model form.

I am taking 1 year to develop everything for more production and do not plan on selling any of what we grow but develop strains, techniques, and systems.

Currently our shitable production is profitable and has positive margins.

Our initial year is to hone into the processes for more!

The 3-4 months into the 2nd year and we begin production we hope to start generating a lot of revenue and be very profitable. The cost to produce more will be under our cost to produce shinlons.

2 of the highest factors in cost is the container/bag we grow mushrooms in and the spawn on purchase from an outside source. We can invest in movable containers and also produce our own spawn which will dramatically increase both margins and reliance on outside sources.

3-4 months is to allow growth/incubation time. Once that cycle starts - it never drops and we aim to be selling 50mbs or more of more per week via website.

We'll be able to sell our remaining shillable inventory for about 2 months.

We've done a priced round before Wefunder giving us the bulk/majority of our funding needed to get to scale and profitability.

Our current investors have shown great interest in continued funding if need be and they have first rights if we do take again.

The business does not burn a lot of cash and current funding + Wefunder gives us 2+years of money to bring more to scale.

INSTRUCTIONS TO QUESTION 24. The discussion must cover each year for which financial statements are provided. Our results will be given according to the discussion should be in the financial statements and questions of a specific and other challenges. The results will be presented here, for discussion should be in the other financial statements and some other and representative of what information should be given in the paper. We'll also consider the price of the offering and any other items or pricing, which is stated, please be the price of the other offering and offer liquid. A better reporting from these sources, we'll add that if you have a very much to the credit of the business, and how quickly the financial statements are being an available with the other available sources of capital to the business, and we have a credit or financial contribution to the business. Before it is the same as the question 24 and these statements refer to the results and to the business, please.

# FINANCIAL INFORMATION

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

Refer to Appendix C, Financial Statements

1. Nature A (Hill) (only the)

(1) the financial statements of Midnight Harvest LLC included in this Form are true and complete in all material respects; and

(2) the financial information of Midnight Harvest LLC included in this Form reflects accurately the information reported on the tax return for Midnight Harvest LLC filed for the most recently completed fiscal year

Matthew A. Hall

Mushroom researcher/prover

# STAKEHOLDER ELIGIBILITY

1. With respect to the house, any predecessor of the house, any official, room, any director, office, general partner or managing member of the house, any beneficial owner of 20 percent or more of the house's outstanding selling equity securities, any principal connected with the house in any capacity at the time of such sale, any person that has been or will be sold (directly or indirectly) remuneration for solicitation of purchases in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2000.

(1) Use any such person have collected, within 10 years (or five years, in the case of issues, their possession and official issues) before the filing of this offering statement, of any felony or misdemeanor.

1. In connection with the purchase or sale of any security? Yes No
2. Involving the making of any false filing with the Commission? Yes No
3. In any way of the conduct of the business of an underwriter, broker, issuer, municipal securities issuer, investment advisor, funding portal or paid solicitor of purchasers of securities? Yes No

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

1. In connection with the purchase or sale of any security? Yes No
2. Involving the making of any false filing with the Commission? Yes No
3. In any way of the conduct of the business of an underwriter, broker, issuer, municipal securities issuer, investment advisor, funding portal or paid solicitor of purchasers of securities? Yes No

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

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

(4) In any such person subject to an order of the Commission entered pursuant to Section 10(b) or 10(bc) of the Exchange Act or Section 2002(a) or (b) of the Investment Advisors Act of 1940 that, at the time of the filing of this offering statement:

1. Supports or revokes such person's registration as a broker, issuer, municipal securities issuer, investment advisor or funding portal? Yes No
2. praises limitations on the activities, functions or operations of such person? Yes No
3. Does such person have been associated with any entity or from participating in the offering of any policy, state? Yes No

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

1. Any summer board and flood positions of the federal securities laws, including without limitation Section 102(c)(3) of the Securities Act, Section 1044 of the Exchange Act, Section 102(c)(3) of the Exchange Act and Section 2004 of the Investment Advisers Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☑ No
2. Section 5 of the Securities Act? ☐ Yes ☑ No

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

☐ Yes ☑ No

(7) Has any such person filed for a retirement or issue in, or was any such person or was any such person named as an underwriter in any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A promotion, or is any such person, at the time of such filing. No subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?

☐ Yes ☑ No

(8) Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4(a)(6) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary increasing order or preliminary objection with respect to conduct alleged by the United States Postal Service to investigate a scheme or review for obtaining money or property through the mail by means of false representations?

☐ Yes ☑ No

If you would have answered "Yes" to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or ban occurred or been issued after May 16, 2006, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

INDEPENDENT BY QUESTION 10. Final order means any item directed or disclosed, approved, issued or adopted in such agency, described in Rule 1.2(b)(2), of the following: (1) the following: (2) the following: (3) the following: (4) the following: (5) the following: (6) the following: (7) the following: (8) the following: (9) the following: (10) the following: (11) the following: (12) the following: (13) the following: (14) the following: (15) the following: (16) the following: (17) the following: (18) the following: (19) the following: (20) the following: (21) the following: (22) the following: (23) the following: (24) the following: (25) the following: (26) the following: (27) the following: (28) the following: (29) the following: (30) the following: (31) the following: (32) the following: (33) the following: (34) the following: (35) the following: (36) the following: (37) the following: (38) the following: (39) the following: (40) the following: (41) the following: (42) the following: (43) the following: (44) the following: (45) the following: (46) the following: (47) the following: (48) the following: (49) the following: (50) the following: (51) the following: (52) the following: (53) the following: (54) the following: (55) the following: (56) the following: (57) the following: (58) the following: (59) the following: (60) the following: (61) the following: (62) the following: (63) the following: (64) the following: (65) the following: (66) the following: (67) the following: (68) the following: (69) the following: (70) the following: (71) the following: (72) the following: (73) the following: (74) the following: (75) the following: (76) the following: (77) the following: (78) the following: (79) the following: (80) the following: (81) the following: (82) the following: (83) the following: (84) the following: (85) the following: (86) the following: (87) the following: (88) the following: (89) the following: (90) the following: (91) the following: (92) the following: (93) the following: (94) the following: (95) the following: (96) the following: (97) the following: (98) the following: (99) the following: (100)

The notice was required to be checked and return goods or services being in any different cases that are not allowed by the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address of the address

## OTHER MATERIAL INFORMATION

It is possible to the information expressly required to be included in this Form, include:

- (1) any other material information presented to investors; and

- (2) such further material information. If any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

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

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

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

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

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

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

Tax Filings. In order to complete necessary tax filings, the SPV is required to include information about each investor who holds an interest in the SPV, including each investor's taxpayer identification number ("TIN") (e.g., social security number or employer identification number). To the extent they have not already done so, each investor will be required to provide their TIN within the earlier of (1) two (2) years of making their investment or (3) twenty (20) days prior to the date of any distribution from the SPV. If an investor does not provide their TIN within this time, the SPV reserves the right to withhold from any proceeds otherwise payable to the investor an amount necessary for the SPV to satisfy its tax withholding obligations as well as the SPV's reasonable estimation of any penalties that may be charged by the IRS or other relevant authority as a result of the investor's failure to provide their TIN. Investors should carefully review the terms of the SPV Subscription Agreement for additional information about tax filings.

INDEPENDENT BY QUESTION 10. (1) Information is provided in the form, and the other items are available to be collected in the form, and the other items are available to be collected in the form, and the other items are available to be collected in the form, and the other items are available to be collected in the form, and the other items are available to be collected in the form, and the other items are available to be collected in the form, and the other items are available to be collected in the form, and the other items are available to be collected in the form, and the other items are available

1. In the case of the material content of such information

The description of the person who will be known to be covered, and

1. In the case of the following: (1) the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number of the number

## ONGOING REPORTING

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

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

22. Once passed, the annual report may be found on the issuer's website at:
http://Midnight-harvest.com/invest

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

1. the issuer is required to file reports under Exchange Act Sections 15(a) or 15(b);
2. the issuer has filed at least one annual report and has fewer than 300 holders of record;
3. the issuer has filed at least three annual reports and has total assets that do not exceed $10 million;
4. the issuer or another party purchases or repurchases all of the securities issued pursuant to Section 4(a)(8), including any payment in full of debt securities or any complete redemption of redeemable securities; or the issuer liquidates or dissolves in accordance with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement
SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Matthew A Hall

Appendix E: Supporting Documents

ttw_communications_106116_204446.pdf
ttw_communications_106116_204433.pdf
ttw_communications_106116_204456.pdf
ttw_communications_106116_151958.pdf
First_Amended_Operating_Agreement_-_Midnight_Harvest_LLC_copy.pdf

## Signatures

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

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Matthew A Hall

Appendix E: Supporting Documents

ttw_communications_106116_204446.pdf
ttw_communications_106116_204433.pdf
ttw_communications_106116_204456.pdf
ttw_communications_106116_151958.pdf
First_Amended_Operating_Agreement_-_Midnight_Harvest_LLC_copy.pdf

Pursuant to the requirements of Sections 4(a)(8) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

Midnight Harvest LLC

By

Matthew Hall

Owner/Grower

Pursuant to the requirements of Sections 4(a)(8) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Form C and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.

Matthew Hall

Owner/Grower
2/23/2023

Matthew Hall

Owner/Grower
2/16/2023

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

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

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

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

INVEST IN MIDNIGHT HARVEST LLC

## Morel mushroom farming - indoors under controlled environment

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

Midnight Harvest Inc. | McGraw-Hill, PA

BIR | Public Services | Agriculture & Agri

LEAD INVESTOR

**b** Michelle Irwin
Midnight Harvest has more major leadership in more well-being and study over the past several years. This has had many successes in multiple types of mushroom production and enabled many local restaurants and markets with fresh, sustainable products. Midnight Harvest is a passionate and clever citizen-owner company on the level of their level of Indian commercial product like that could impact the world of fungi and the kitchen as we know it! I am promoting things to come to Midnight Harvest continues here journey to full scale marketable product use.

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

## Highlights

1. Morel mushrooms are a foraged item worth tons of billions worldwide.
2. Repeatable scientific proof and process.
3. Few competitors in the global market allowing for great growth and marketshare.
4. 1st Ever to grow morels year round in a single stage system for commercial use.

## Our Founder

**Matthew Hall** Owner/Grower

Born and raised in Northern Michigan - absolutely love growing plants and food. Tinkerer since day one and love to find out how things work and function.

Morels are worth billions of dollars as a foraged item - if they were to be cultivated and commercially grown they'd be worth far more. I chose this idea because of the potential and impact it could have it if we figured it out. Knowing the worth of morels I know that I could change lives and not just mine.

## The Farm Dream

In 2012 I changed careers pretty dramatically, going from a potential career in dolphin training to wanting to be a farmer.

Looking back it's been quite the journey to where I am today.

Moving back home in 2012, I knew I wanted to start a farm. Trying to figure out where I would fit in within the food scene, I started working in various areas: volunteering at a local farm, attending MSU Master Gardener school, and building raised garden beds for local friends and family.

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

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

Growing food was where my farm dream started. This is a bush bean in a soil block.

# **A TEDtalk by Paul Stamets lead me to mushrooms.**

Living in Northern Michigan's variable climate, we've adapted to growing mushrooms indoors entirely. They can be grown in a vertical setting, which is great because you can have greater impact with less space.

# **Mushroom Farming**

My passion for fungi led me to attempt my own grows. I humbly began with a small greenhouse in our basement, homemade flow hood, and yes, plenty of mistakes.

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

Mycelium, the living body of mushrooms.

After studying fungi for 4 years, upgrading equipment, and undergoing some room renovations, I was ready to sell. I started small at first, only serving 1-2 clients with 5-10lbs of product per week. When I realized there was a market for my mushrooms, I had got a small line of credit from my bank, which had allowed me to make some bigger moves and get into even better equipment.

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

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

### We are now in production!

I have no expanded my operation to growing about 50-60lbs of fresh shiitakes per week. I am selling to local retail outlets and local restaurants every week and generally sell out of all that I grow.

My first accounts were people I knew from my years within the hospitality space, familiar faces that I met and worked with along the way. Now, after years into production, I have interest from people I've never met!

### Press

My work has been featured in a variety of mediums, including print publications, TV spots, and podcasts. This has been tremendous for our growth and local notability.

Publications | Edible Grand Traverse, Grow-Bio, and Northern Express.

TV Spots | 9&10 News, 7&4 News.

Podcasts | Talk Farm to Me, The Modern Health Nerd

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

### The Morel Mushroom 😊

Even though I was seeing success while growing shiitakes, the whole time I'd been researching morel mushrooms. But why?

Morel mushrooms are one of the most sought out fungi in the entire world. Ranking with big players like truffle, chanterelle, and holete - I realized morel mushrooms are a huge industry.

They are worth tens of billions globally. However, they're only available for a short period of the year - and only mother nature provides.

Morel mushrooms have never been grown commercially indoors like shiitake! Many have tried and a few have seen glimmers of success, but nothing substantial or sustainable year round.

2 companies are using methods from the 1980's. Mycopia and the Danish Morel Project are actually the same systems - but executed slightly differently. China has produced morels outdoors in huge production fields but this system is still subject to season. Penn State did a trip to the Chinese farmers to understand their methods.

Researching morels was like filling out a lottery ticket but more calculated. In the event you hit all the numbers - jackpot.

In the spring of 2020 we finally did it - I grew morels on petri dishes.

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

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

As far as we know, never before has a morel been grown indoors in the lab on a nutrient rich source. Our genetics were from Penn State Culture Labs.

As far as we know, this was the first time morels have been grown on a nutrient rich media in a controlled setting.

Since that moment in March of 2020, I have grown morels hundreds of times on both plates and on bigger media.

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

Finally almost 2 years after our initial discovery we have the 3rd part of our equation. We now know why and how morels grow in size. Soon we'll be able to switch our entire farm from shiitake to morel.

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

## How are we different?

1 - I use a nutrient rich media. It was long thought that morels require nutrient depletion for growth. This is false. Hence why we can grow them on petri dishes which are rich in the nutrients that fungi love.
2 - Our process mirrors all other gourmet mushroom farms. Media is inoculated with a spawn of morel, incubates, and then put under fruiting conditions. Our last 3 trials did just that - and produced morels.
3 - The process could likely be automated. There are in fact automated mushroom farms doing millions of pounds of mushrooms a year - and our discovery could make them now have morel. It's a scalable equation.

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

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

Our Process vs Other processes

### Mushrooms & Margins

Our total COGS for shiitake are averaged $2.18(+) but are always under $2.50. We sell 1 pound for $10 to local restaurants/retail outlets. Directly we could capture $15/lb.

Even selling completely to restaurants/retail I make $7.50 per pound. If I had a direct route, we'd make $12.50/lb.

### Yields

We typically see a 1-lb yield per shiitake block - so we can actually increase margins just by having an amazing growing recipe (which I do). We average 1.25lb/block and our best harvest was 2lbs 4oz(!!!), on our normal harvest of 1lb 4oz(1.25). That additional 4oz is worth the cost of the blocks which means we generally average $10lb due to increased yields.

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

We typically see a great amount of morels per test

COGS - 2 of the biggest costs is the bag the shiitake goes into which is a one time use. The second biggest cost is the spawn that we purchase.

We'll be investing in reusable containers which are already in the market so we're not reinventing the wheel (just yet).

We'll also be producing our own spawn thanks to our trade secret process.

With these factors and methods of production, Morel could actually be cheaper to produce while being one of the most profitable yields.

In the first year of research we will be exploring yields and growth timelines. This will be crucial in knowing how much square feet we'll need to

achieve our long term goals.

Price per pound. This is where the morels meet margins. Morels have a swing pricing due to supply and demand. Starting in January morel prices go upwards of $75/lb direct to consumer; about mid-season March-May their price will dip as supply increases. As of April 12th 2022, prices are around $42/lb direct. In June when the season is near over prices sky rocket again into the high 70's, eventually leading into July when all you can find is dried morels - nothing fresh.

This will be to our advantage as we aim to be the only supplier of year round fresh morels. Prices could actually increase beyond $75/lb.

Industry leading suppliers | Mikuni Wild Harvest | Foraged Market | Morel Masters

Marketshare | Between August-January we'd effectively own the fresh morel market. Prices could actually increase at this time due to demand for our product.

Cleanliness | The bigger aspect to also consider is morels coming from foragers are not clean. They have to be thoroughly washed so there is no sand and insects.

Consistency | High end retail and luxury restaurants will lose this product for it's flavor and consistency, and cleanliness. Now they can plan a menu around morel knowing we will be providing a year round consistent product.

# The Plan

Our goal in 2022 will be to convert our entire operation to morel production and launch a direct to consumer platform. Initially it'll be small, only 50lbs a week - but soon we'd be able to grow upwards of 140lbs per week within the same year.

50 pounds/week selling at $75/lb - $3750.00/week and $195k+/annually.
***The business even at a very small scale is instantly liquid and able to provide it's own capital for growth.***

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

I'm already setup to be a morel farm.

140 pounds/week selling at $50/lb(wholesale) - $7000/week and $365K+ annually.

Direct to consumer will build the value and provide great margins.

Within 5 years our goal is to be producing over 1000lbs or fresh morels per week.

1000 pounds/week selling at $50/lb(wholesale) - $50,000/week and $2.6million+annually.

We'll run a balance of D2C and B2B to increase overall revenue.

A mixed venue model brings in nearly $3million in annual revenue with a majority going towards wholesale accounts.

During that time we'll explore value-added products, morel 'experiences' such outdoor spawn applications, and be the leader in anything morel related. All of which are low cost high margin experiences.

*Forward looking financial projections cannot be guaranteed.*

## Want to know more?

I've published a lot of my own work in a blog spanning year of research.

Morel - Clear line of sight - The moment we grew gold.

Morel vs Morel - Highlights the differences in my operations vs other known morels.

Morel - Soon a year round commodity. Successful testing.

Morel on the horizon - imagery captured from some of our samples.

Morels - Imagery I've captured growing them indoors.

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

# **Midnight Harvest I (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

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

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

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

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

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

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

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

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

# 6. Key Risk Factors

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

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

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

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

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

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

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

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

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

# 7. Compliance With Anti-Money Laundering Laws.

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

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

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

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

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

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

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

# 8. Regulatory Provisions

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

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

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

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

# 9. Miscellaneous Provisions

# 9.1. Indemnification

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

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

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

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

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

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

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

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

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

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

# 9.5. Confidentiality

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV

Midnight Harvest I, as series of Wefunder SPV, LLC
By: Wefunder Admin, LLC, its Manager

By: Founder Signature

Date:

Name: Nicholas Tommarello

Title: Chief Executive Officer

Investor

[INVESTOR NAME]

By: Investor Signature

Date:

CONTACT INFORMATION:

Name: [INVESTOR NAME]

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF Midnight
Harvest LLC SECURITIES BY Midnight Harvest I, A
SERIES OF WEFUNDER SPV, LLC, A DELAWARE
LIMITED LIABILITY COMPANY

Type of Security: Future Equity

Terms $3.5M valuation cap

To view a copy of the contract, please see Appendix B, Investor Contracts of
the Form C. The latest Form C or C/A filing be found here:

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

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

Midnight Harvest LLC

# SAFE
(Simple Agreement for Future Equity)

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

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

The "Post-Money Valuation Cap" is $3,500,000

The "Discount Rate" is 100%

See Section 2 for certain additional defined terms.

# 1. Events

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

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

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

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

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

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

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

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

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

(iii) Senior to payments for Common Units.

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

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

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

2. Definitions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

# 3. Company Representations

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

# 4. Investor Representations

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

# 5. Miscellaneous

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

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

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

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

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

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

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

*(Signature page follows)*

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

**COMPANY:**

Midnight Harvest LLC

By: *Founder Signature*

Name:

Title:

**INVESTOR:**

[INVESTOR NAME]

By: *Investor Signature*

Name: [INVESTOR NAME]

Title:

☐ Accredited Investor
☐ Unaccredited Investor

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

By:

Name:

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

**MIDNIGHT HARVEST LLC** (the “Company”) a Michigan Limited Liability Company

Financial Statements (unaudited) and Compilation Report

Years ended December 31, 2020 & 2021

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

## ACCOUNTANT'S COMPILATION REPORT

Midnight Harvest, LLC

Management is responsible for the accompanying financial statements of Midnight Harvest, LLC, which comprise the balance sheet as of December 31, 2020 and 2021, and the related statement of operations, member’s equity, and statement of cash flows for the years then ended, and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements.

### Going Concern

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

Vince Mongio, CPA, CIA, CFE, MACC Miami, FL  
November 2, 2022

*Vincenzo Mongio*

# **Statement of Financial Position**

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 8,042 | 2,971 |
| Accounts Receivable | 474 | 474 |
| Total Current Assets | 8,516 | 3,445 |
| Non-current Assets |  |  |
| Office Equipment net of Accumulated Depreciation | 324 | - |
| Other Assets | - | - |
| Total Non-Current Assets | 324 | - |
| TOTAL ASSETS | 8,840 | 3,445 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Accounts Payable | 2,477 | 4,046 |
| Line of Credit | 20,500 | 20,500 |
| Total Current Liabilities | 22,977 | 24,546 |
| TOTAL LIABILITIES | 22,977 | 24,546 |
| EQUITY |  |  |
| Accumulated Deficit | (14,137) | (21,101) |
| Total Equity | (14,137) | (21,101) |
| TOTAL LIABILITIES AND EQUITY | 8,840 | 3,445 |

# **Statement of Operations**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Sales Revenue | 23,231 | 13,541 |
| Services Revenue | - | 234 |
| Cost of Revenue | 5,284 | 2,341 |
| Gross Profit | 17,947 | 11,435 |
| Operating Expenses |  |  |
| Advertising and Marketing | 50 | 108 |
| General and Administrative | 7,639 | 6,356 |
| Total Operating Expenses | 7,689 | 6,464 |
| Operating Income (loss) | 10,258 | 4,971 |
| Other Income |  |  |
| Other | 183 | - |
| Total Other Income | 183 | - |
| Other Expense |  |  |
| Interest Expense | 1,754 | 2,027 |
| Other | 1,303 | - |
| Total Other Expense | 3,057 | 2,027 |
| Provision for Income Tax | - | - |
| Net Income (loss) | 7,383 | 2,943 |

# **Statement of Cash Flows**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | 7,383 | 2,943 |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Accounts Payable | (1,569) | 262 |
| Accounts Receivable | - | (234) |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | (1,569) | 28 |
| Net Cash provided by (used in) Operating Activities | 5,814 | 2,972 |
| INVESTING ACTIVITIES |  |  |
| Office Equipment | (323) | - |
| Net Cash provided by (used by) Investing Activities | (323) | - |
| FINANCING ACTIVITIES |  |  |
| Draws | (420) | - |
| Net Cash provided by (used in) Financing Activities | (420) | - |
| Cash at the beginning of period | 2,971 | - |
| Net Cash increase (decrease) for period | 5,071 | 2,972 |
| Cash at end of period | 8,042 | 2,971 |

# **Statement of Changes in Member Equity**

|  | Total Member Equity |
| --- | --- |
| Beginning Balance at 1/1/20 | (24,044) |
| Net Income (Loss) | 2,943 |
| Ending Balance 12/31/2020 | (21,101) |
| Draws | (420) |
| Net Income (Loss) | 7,383 |
| Ending Balance 12/31/2021 | (14,137) |

# MIDNIGHT HARVEST LLC
Notes to the Unaudited Financial Statements
December 31st, 2021
$USD

# NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES

Midnight Harvest LLC, formed in Michigan in 2014, specializes in indoor gourmet mushroom production and research. Small-scale mushroom production and mushroom-related items are grown weekly to sell to restaurants, retail, and some direct to consumers. All sales were made within the local area of the farm. The research end of the business focuses on the morel mushrooms in order to advance and potentially create a scientifically repeatable process that allows morels to grow indoors under controlled conditions.

The Company will conduct a crowdfunding campaign under regulation CF in 2022 to raise operating capital.

# NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

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

Use of Estimates and Assumptions

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

Cash and Cash Equivalents

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

Fair Value of Financial Instruments

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

These tiers include:

Level 1: defined as observable inputs such as quoted prices in active markets;
Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Concentrations of Credit Risks

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

## Revenue Recognition

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

- Step 1: Identify the contract(s) with customers
- Step 2: Identify the performance obligations in the contract
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price to performance obligations
- Step 5: Recognize Revenue When or As Performance Obligations Are Satisfied

The company generates revenue by selling fresh mushrooms in retail, restaurants, and direct to consumers, and revenue is recognized when the customer assumes control of the mushrooms.

## Accounts Receivable

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

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

## Advertising Costs

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

## General and Administrative

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

## Income Taxes

The Company is a pass-through entity therefore any income tax expense or benefit is the responsibility of the company’s owners. As such, no provision for income tax is recognized on the Statement of Operations.

## Recent accounting pronouncements

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

## NOTE 3 - RELATED PARTY TRANSACTIONS

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. No transactions require disclosure.

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

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

#### **NOTE 5 - DEBT**

##### Lines of Credit

Lines of Credit consist of draws on a revolving line of credit with a 2.2 + Prime Interest Rate and an annual fee of $175.

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

| Year | Amount |
| --- | --- |
| 2022 | 20,500 |
| 2023 | - |
| 2024 | - |
| 2025 | - |
| 2026 | - |
| Thereafter | - |

#### **NOTE 6 - EQUITY**

The Company is a single-member LLC that operates on percentage interest.

See Note 7.

#### **NOTE 7 - SUBSEQUENT EVENTS**

The Company has evaluated events subsequent to December 31, 2021, to assess the need for potential recognition or disclosure in this report. Such events were evaluated through November 2, 2022, the date these financial statements were available to be issued.

On August 3rd, 2022, Midnight Harvest LLC drafted an Operating Agreement.

In 2022, 10,000,000 Shares of membership interest were purchased by the founding member for $100.

September 1st, 2022, the company issued 500,000 shares of common stock or 5% of the company to third parties, jointly, in exchange for $75,000.00 USD.

September 1st, 2022, the company entered into a contractor’s agreement with the aforementioned third parties. In exchange for services or work, the third parties would be issued 1% or 100,000 shares per year up to 5%. The contract can be canceled by either party at any time. The third parties had an interest in one day working on the farm with the founding member and will be performing work/services without pay.

September 2nd, 2022, the company issued 500,000 shares of common stock or 5% of the company to a third party through Go Dutch LLC, in exchange for $75,000.00 USD.

# NOTE 8 - GOING CONCERN

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

# NOTE 9 - RISKS AND UNCERTAINTIES

## *COVID-19*

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

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

Contact

www.linkedin.com/in/matthew-hall-304631b3 (LinkedIn)
midnight-harvest.com (Company)

Top Skills

Public Speaking

Teaching

Training

# Matthew Hall

Fungi are the frontier.

Traverse City, Michigan, United States

## Summary

I am the founder and grower at Midnight Harvest.

We specialize in morel research and growing morels indoors.

Soon we will be producing morels all year long and opening up the multi-billion industry that once was only left up to nature.

Midnight Harvest was born out of a love for growing food. Living in northern Michigan and wanting to own and operate my own farm mushrooms seemed a great fit for their ability to be grown indoors, year round, and a vertical setting.

We've grown maitake, shiitake, lionsmane, reishi and the last 4 years we've specifically grown shiitake for retail and restaurants.

Now we are pivoting the full morel research to being morel to scale in 2023. Much more to come!

## Experience

Midnight Harvest

Owner/Grower

March 2014 - Present (9 years)

Traverse City, MI

Walt Disney World

Marine Mammal Intern

June 2004 - January 2005 (8 months)

Lake Buena Vista, Florida

Marine Mammal Intern | Epcot - Living Seas

Page 1 of 2

# Education

Traverse city

Associates science and arts

Michigan State University

Master Gardener, Gardening/Farming · (2012 - 2012)

Page 2 of 2

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We are 'testing the waters' to gauge investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder's platform. Any indication of interest involves no obligation or commitment of any kind.

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

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# Matt Hall Wefunder

**Matthew Hall**

to Mlawson
Jul 25 Details

Mike

Thank you for your patience and of course continued interest.

Sorry it's taken me so long to get this to you - any questions let me know.

https://wefunder.com/midnight.harvest.llc/

See you soon!

Matt

We are 'testing the waters' to gauge investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder's platform. Any indication of interest involves no obligation or commitment of any kind.

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## Wefunder - Midnight Harvest

**Matthew Hall**

to leelanauscf

May 26 Details

Michelle,

Here's the link to see how this all plays out with equity crowdfunding.

Please do not forward this link but should you have other people interested or may be of interest I'd be happy to email them directly.

Thank you again!

Matt

https://wefunder.com/midnight.harvest.llc/

We are 'testing the waters' to gauge investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder's platform. Any indication of interest involves no obligation or commitment of any kind.

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# Matt - Red Ginger - Morels

**Matthew Hall**

to jkpmap
Aug 26 Details

Jeff and Maria,

Great to see you both the other night!

Right now investment wise I am set/funded for 2 years however I do still have a friends/family round open. You're welcome to join in on that now if you want!

https://wefunder.com/midnight.harvest.llc/

You're also welcome to check out my website blog for more info related to morel research.

https://www.midnight-harvest.com/the-blog/

Any questions let me know or if you'd like to hop on a call - happy to!

Take care and hope to chat more!

Matt

# **Wefunder Required Disclosure**

We are 'testing the waters' to gauge investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder's platform. Any indication of interest involves no obligation or commitment of any kind.

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Red Ginger Bartender - Mushroom guy Matt

**Matthew Hall**

to james

Aug 26 Details

James,

Sorry it's friday - thursday got away from me! Hope you are doing well!

Here is the link to the crowdfunding campaign and it has a lot of details out laying the plan - any questions just let me know.

https://wefunder.com/midnight.harvest.llc/

**Required Disclosure.**

We are 'testing the waters' to gauge investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder's platform. Any indication of interest involves no obligation or commitment of any kind.

You're also welcome to check out my website blog which goes over more research aspects and what has been achieved so far.

https://www.midnight-harvest.com/the-blog/

Thank you again for the interest! See you soon!

Matt

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

# FIRST AMENDED OPERATING AGREEMENT FOR MIDNIGHT HARVEST LLC,
a Michigan Limited Liability Company

This First Amended Operating Agreement (“Agreement” or “Operating Agreement”) is made and entered into as of ____________, 2022, by and among Midnight Harvest LLC, a Michigan limited liability company (the Company) Matthew A. Hall as Manager and majority-in-interest Member, and the Persons who are Members and whose names and respective membership shares are set forth on Schedule 3.1 to this Agreement. This First Amended Operating Agreement supersedes and replaces all prior Operating Agreements.

## ARTICLE I
DEFINITIONS

1.1 “Act” means the Michigan Limited Liability Company Act, MCL 450.4101 et seq., 1993 PA 23, as amended.

1.2 “Admitted Member” means any Person who, after the initial Operating Agreement is signed, either acquires Shares directly from the Company and is admitted as a Member pursuant to and in accordance with the terms of this Operating Agreement or any Person who acquires Shares from a Member and is admitted as a Member pursuant to and in accordance with the terms of this Operating Agreement

1.3 “Articles” mean the Articles of Organization for the Company.

1.4 “Asset Value” means, with respect to any asset, the asset’s adjusted basis for federal income tax purposes, adjusted as follows:

a. The initial Asset Value of any property contributed to the Company shall be the asset’s fair market value as determined at the time of contribution by the Manager and the contributing Member.

b. The Asset Values of all Company assets shall be adjusted to equal their respective fair market values, as determined by the Manager, at the following times: (i) the acquisition of Shares by a new Member or the acquisition of additional Shares by an existing Member in exchange for more than a de minimis capital contribution; (ii) the distribution by the Company of more than a de minimis amount of cash or other property to a retiring or continuing Member as consideration for the retirement of all or part of that Member’s Shares; or (iii) in connection with the liquidation of the Company within the meaning of Treas Reg 1.704-1(b)(2)(ii)(g).

c. The Asset Value of any asset distributed to a Member shall be adjusted to equal the fair market value of that asset on the date of distribution as determined by the Manager.

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d. The Asset Value of Company assets shall be increased or decreased, as appropriate, to reflect any adjustments to the adjusted basis of those assets pursuant to IRC 734(b) or IRC 743(b), but only to the extent that the adjustments are taken into account in determining Capital Accounts pursuant to Treas Reg 1.704-1(b)(2)(iv)(m) or section 5.2.7. However, no adjustment shall be made pursuant to this subsection (d) if the adjustment has been made under any other subsection under this section 1.4.

1.5 “Bureau” means the Michigan Department of Licensing and Regulatory Affairs’ Corporations, Securities, and Commercial Licensing Bureau or its successor.

1.6 “Capital Account” means the capital account maintained for a Member pursuant to section 3.4.

1.7 “Capital Contribution” means, regarding any Member, the amount of money and the initial Asset Value of any property (including any membership interest in any other limited liability company) contributed to the Company by the Member. Capital Contribution shall include each Member’s initial Capital Contribution and any additional Capital Contributions.

1.8 “Capital Contribution Date” means the date on which a Member makes a Capital Contribution.

1.9 “Company Minimum Gain” shall have the meaning ascribed to the term “partnership minimum gain” in Treas Reg 1.704-2(b)(2).

1.10 “Company Nonrecourse Deductions” shall have the meaning ascribed to the term in Treas Reg 1.704-2(c).

1.11 “IRC” means the Internal Revenue Code of 1986, as amended.

1.12 “Manager” means the Person or Persons designated from time to time by the Members to be a manager of the Company.

1.13 “Member” means the Person or Persons initially signing this Operating Agreement as a Member or any Person who is subsequently admitted as an Admitted Member of the Company pursuant to and in accordance with this Operating Agreement.

1.14 “Member Nonrecourse Debt Minimum Gain” means an amount determined in accordance with Treas Reg 1.704-2(i)(3) with respect to each Member Nonrecourse Debt that would be Company Minimum Gain if the Member Nonrecourse Debt were a “nonrecourse liability” as that term is defined in Treas Reg 1.704-2(b)(3).

1.15 “Member Nonrecourse Debt” means what is ascribed to the term “partner nonrecourse debt” in Treas Reg 1.704-2(b)(4).

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**1.16** “Member Nonrecourse Deductions” means what is ascribed to the term “partner nonrecourse deductions” in Treas Reg 1.704-2(i)(2).

**1.17** “Membership Interest” means a Member’s rights in the Company including, without limitation, the right to receive distributions and the right to vote or participate in the management of the business and affairs of the Company to the extent such rights are granted under the Act or this Operating Agreement.

**1.18** “Partnership Representative” shall have the meaning ascribed to the term “Partnership Representative” under IRC 6223.

**1.19** “Permanent Disability.” A natural Person shall be deemed to suffer from a Permanent Disability if that Member is determined by a medical doctor who is board certified and licensed to practice medicine in the state of Michigan that this Person, because of a medically determined disease, injury, sickness, or other mental or physical disability, is unable to perform substantially all of their regular duties for the Company or is otherwise substantially limited in one or more life activities such that the person is unable to work full time in either case for a period of 6 consecutive months or cumulatively for any period of 12 months in any 24-month period.

**1.20** “Person” means an individual, a partnership, a limited liability company, a trust, a custodian, an estate, an association, a corporation, a governmental entity, or any other legal entity.

**1.21** “Profits and Losses” means an amount equal to the Company’s taxable income or loss for the fiscal year determined under IRC 703(a) and Treas Reg 1.703-1, adjusted as follows:

a. All items of income, gain, loss, or deduction required to be separately stated pursuant to IRC 703(a)(1) shall be included.

b. Tax-exempt income as described in IRC 705(a)(1)(B) realized by the Company during the fiscal year shall be included.

c. Expenditures of the Company described in IRC 705(a)(2)(B) for the fiscal year, including items treated under Treas Reg 1.704-1(b)(2)(iv)(j) as items described in IRC 705(a)(2)(B), shall be taken into account as if they were deductible items.

d. Items that are specially allocated to the Members under sections 5.2 and 5.3 shall be excluded.

e. Regarding property (other than money) that has been contributed to the capital of the Company, Profit and Loss shall be computed in accordance with the provisions of Treas Reg

3

1.704-1(b)(2)(iv)(g) by computing depreciation, amortization, gain, or loss on the Asset Value of the property on the books of the Company.

f. Regarding any property of the Company that has been revalued as required or permitted by regulations under IRC 704(b), Profit or Loss shall be determined based on the Asset Value of the property as determined in the revaluation.

g. The difference between the adjusted basis for federal income tax purposes and the fair market value of any Company asset shall be treated as gain or loss from the disposition of the asset if (i) any new or existing Member acquires an additional interest in the Company in exchange for a contribution to the capital of the Company or (ii) the Company asset is distributed to a Member as consideration for a partial redemption of the Member’s Shares (and corresponding Membership Interest percentage) in the Company or in “liquidation” (as this term is defined in Treas Reg 1.704-1(b)(2)(ii)(g)) of the Company’s Shares.

**1.22** “Shares” is the term used to represent a Member’s ownership of a Membership Interest in the Company.

**1.23** “Transfer” shall have the meaning ascribed to that term in section 10.1 of this Operating Agreement.

**1.24** “Treas Reg or Treas Regs” means the Treasury Regulations promulgated under the Internal Revenue Code as the context requires.

**1.25** “Vote” shall have the meaning ascribed to this term in the Act.

## ARTICLE II ORGANIZATION

**2.1 Formation.** The Company has been organized as a manager-managed Michigan limited liability company by the filing of the Articles as required by the Act. As provided in article VIII, the business and affairs of the Company shall be managed by or under the authority of the Manager.

**2.2 Name.** The name of the Company is stated on the first page of this Operating Agreement. The name of the Company may be changed by an amendment to the Articles. The Company may also use one or more assumed or trade names.

**2.3 Purpose; Powers.** The Company has been formed for the purpose enumerated in the Articles. The Company shall have all the powers necessary or convenient to effect any purpose for which it is formed, including all powers granted by the Act.

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**2.4 Duration.** The Company shall commence on the date of filing of the Articles with the Bureau and shall continue in existence for the period fixed in the Articles or until the Company dissolves and its affairs are wound up in accordance with the Act or this Operating Agreement.

**2.5 Registered Office and Resident Agent.** The registered office and resident agent of the Company shall be as designated in the initial or amended Articles. The registered office or resident agent may be changed from time to time by the Manager. Any such change shall be made in accordance with the requirements of the Act. If the resident agent resigns, the Manager shall promptly appoint a successor.

**2.6 No Liability of Managers and Members.** Unless otherwise provided by law or in this Operating Agreement, a Manager or a Member of the Company is not liable for the acts, debts, or obligations of the Company.

**2.7 No Management Authority of Members.** Except as otherwise provided for in this Operating Agreement or the Act, no Member, acting in the capacity of a Member, shall have the right, power, or authority to manage the business and affairs of the Company, bind the Company under any agreement, contract or commitment, or otherwise perform any act for or on behalf of the Company.

### ARTICLE III
MEMBERSHIP

**3.1 Membership Interests.** Each Member's ownership of a Membership Interest in the Company shall be represented by certificated or uncertificated Shares. The number of Shares owned by each Member is set forth in schedule 3.1, as such Schedule may be amended from time to time.

**3.2 Initial Capital Contributions.** Each Person initially signing this Operating Agreement as a Member has made or will make an initial contribution to the capital of the Company as set forth in schedule 3.1.

**3.3 Additional Capital Contributions.** If the Manager determines that additional funds are needed for the working capital of the Company, the Manager may obtain additional capital by making a capital call on the Members and the following provisions shall apply:

**3.3.1** The Manager shall issue a written notice of capital request (Notice of Capital Request) to each Member to contribute additional capital to the Company in an amount and form the Manager shall determine. The Notice of Capital Request shall include the following information:

a. the total amount of capital requested from all of the Members (Total Capital Request)

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b. each Member's share of the Total Capital Request, which shall be determined by multiplying the Total Capital Request by a fraction, the numerator of which shall be the number of Shares owned by the Member and the denominator of which shall be the total number of Shares owned by all Members (Member Capital Contribution)

c. the date on or before which the Member Capital Contribution shall be due, which the date shall not be less than 30 days from the date of the Notice of Capital Request

Should any Member neglect, fail, or refuse to timely contribute any portion of the Member's Capital Contribution (Delinquent Member), all the Members shall be so notified by the Manager (Member Notice), and the other Members who have paid their Member's Capital Contribution in full (Nondelinquent Members) shall have the option to contribute the Delinquent Member's Capital Contribution on a Pro-Rata Basis in accordance with the then-respective Shares of each other Nondelinquent Member as compared to the total Shares of all Nondelinquent Members. If any Nondelinquent Member neglects, fails, or refuses to contribute its pro-rata share of the Delinquent Member's Capital Contribution within 30 days of its receipt of the Member Notice, all other Nondelinquent Members shall have the right to contribute the remaining deficiency in the Delinquent Member's Capital Contribution on a Pro-Rata Basis (for all the other Nondelinquent Members and in the manner provided above). This procedure shall be repeated until the Delinquent Member's Capital Contribution is satisfied or all Nondelinquent Members fail to contribute any additional capital.

3.3.2 On the making of an additional Capital Contribution, the Shares of the Members shall be adjusted so that the Shares of each Member and each Member's Capital Account shall be adjusted in accordance with section 1.4(d) of this Operating Agreement before the additional Capital Contribution and then shall equal an amount determined by the following formula:

(Capital Account of each Member's additional Capital Contribution / Total Capital Accounts of all Members after additional Capital Contribution) x Total Shares

### 3.4 Member Capital Accounts.

3.4.1 The Company shall maintain a separate Capital Account for each Member. Each Member's Capital Account shall be

a. increased for (i) the amount of cash and the Asset Value of any property contributed by the Member, (ii) the amount of any Company liabilities assumed by the Member or are secured by any property distributed to the Member, and (iii) the Member's distributive share of any of the Company's Profits and any items in the nature of income or gain that are specially allocated to the Member pursuant to sections 5.2 and 5.3 of this Operating Agreement;

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b. decreased for (i) the amount of any cash and the Asset Value of any property distributed to the Member, (ii) the amount of any liabilities of the Member assumed by the Company or are secured by any property contributed by the Member to the Company, and (iii) the Member's distributive share of any Losses of the Company and any items in the nature of expenses, losses, or deductions that are specifically allocated to the Member pursuant to sections 5.2 and 5.3 of this Operating Agreement; and

c. credited, in the case of an increase, or debited, in the case of a decrease, for the Member's share of any adjustment to the adjusted basis of Company assets pursuant to IRC 734(b) or IRC 743(b) to the extent provided under Treas Reg 1.704-1(b)(2)(iv)(m).

3.4.2 All of the provisions stated above regarding the establishment and maintenance of Capital Accounts are intended to comply with Treas Reg 1.704-1(b)(2)(iv) and shall be interpreted and applied to comply with the Treasury Regulation. The Members agree that the Manager may make any adjustments to the Capital Accounts that may be necessary or appropriate to comply with the Treasury Regulation.

3.5 No Rights to Company Assets. Except as may otherwise be expressly provided in this Operating Agreement or under the Act, no Member is entitled to receive any interest or return on any contributions to the Company or on the Member's Capital Account, nor does any Member have any interest, right, or claim in or to any of the Company's assets.

3.6 Borrowings. The Company may borrow money from any source, including any Member, on the terms and conditions acceptable to the Manager. However, if the Company desires to borrow money from a Member, the Company shall give all of the Members the opportunity to participate in the loan on a Pro-Rata Basis (in accordance with the number of shares held by each Member).

3.7 Admission of New Members. The Members may by majority vote, pursuant to and in accordance with the terms of this Operating Agreement, admit as an Admitted Member any Person determined by the Members to satisfy the criteria established by the majority of the Members, in the majority's sole and absolute discretion, for membership in the Company. The Person shall, before being admitted as an Admitted Member of the Company and as a condition to admission, execute any document or documents required by the Company, agree to be and become a Member of the Company, and agree to be bound by the terms of this Operating Agreement. The Company may issue additional Shares in the Company to an Admitted Member on the terms and conditions and for whatever consideration, if any, the Members may determine by majority vote. To the maximum extent permitted by applicable law, including but not limited to the Act, a person who is admitted as a Member by a majority vote of the Members, but fails to execute the Operating Agreement, may still be treated as an Admitted Member to the maximum extent so permitted by applicable law.

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3.8 No Right of Withdrawal. No Member shall have any right to withdraw from the Company as a Member nor any right to receive any payment or distribution from the Company on any actual or purported withdrawal. Each Member agrees not to withdraw, and each Member waives any right to withdraw and any right to receive any payment or distribution on withdrawal provided for under the Act.

## ARTICLE IV
ADMINISTRATIVE PROVISIONS

4.1 Books of Account. At all times during the continuance of the Company, the Company shall keep or cause to be kept full and true books of account reflecting each of the Company's transactions. These books of account, together with a list of the name and address of each Member; a copy of the Articles; copies of the Company's financial statements and federal, state, and local tax returns; reports for the three most recent fiscal years; a copy of this Operating Agreement; and copies of records that would enable a Member to determine the Member's Shares shall be maintained at all times at the Company's registered office. These books shall be open to reasonable inspection and examination by the Members at the Company's registered office, during reasonable business hours, on reasonable notice to the Company. The Company may engage certified public accountants to assist in the preparation of the Company's books and financial statements and to render any other services the Company requests.

4.2 Reports. The Company shall furnish to each Member within 90 days after the end of each fiscal year, or as soon as practical, an annual report of the Company's business and operations during the year, together with any information as may be necessary for the preparation of each Member's federal and state income or other tax returns. The annual report shall contain a copy of the Company's annual financial statement showing the Company's gross receipts and expenses and profit or loss and their allocations to each Member for the year.

4.3 Fiscal Year and Accounting Method. The fiscal year of the Company shall be the calendar year. The Company's books and records shall be kept on the cash or accrual method as determined by the Manager.

4.4 Checks. All checks, drafts, orders for the payment of money, notes, or evidences of indebtedness issued in the name of the Company shall be signed by one or more Officers or agents of the Company, as shall be determined by the Manager.

4.5 Partnership Representative; Member Tax Returns.

4.5.1 As used in this Operating Agreement, the Partnership Representative shall be that person who is designated as the Company's Partnership Representative by the Manager. The initial Partnership Representative is Matthew A. Hall.

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4.5.2 Each Member shall reflect on that Member's income tax returns all items of income, gain, loss, deduction, or credit relating to the Company, its property, or its business in a manner that is consistent with the treatment of those items on the Company returns.

## ARTICLE V
PROFIT AND LOSS ALLOCATIONS

5.1 Allocation of Profits and Losses. After the application of sections 5.2 and 5.3, Profits and Losses for each fiscal year (or any portion thereof) shall be allocated among the Members on a Pro-Rata Basis, in accordance with the number of Shares held by each Member.

5.2 Regulatory Allocations. Any regulatory allocations shall be made in the following order of priority and manner provided by the Code and regulations.

5.3 Allocations Regarding Contributed Property. In accordance with IRC 704(c) and the Treasury Regulations under it, items of income, gain, loss, and deduction with respect to any property contributed to the capital of the Company by any Member shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of the property to the Company for federal income tax purposes and its Asset Value for Capital Account purposes. Whenever the Capital Accounts of Members are required to be adjusted pursuant to Treas Reg 1.704-1(b)(2)(iv)(f) or (g) with respect to a revaluation of any asset of the Company, subsequent allocations of income, gain, loss, and deduction, including, without limitation, depreciation with respect to the asset, shall take into account any variation between the then-existing adjusted tax basis of the asset and the Asset Value as adjusted of the asset, as the computations may be required under IRC 704(b) and (c) and the regulations promulgated under them.

5.4 Interpretation. The Members intend that the allocations of the Company's Profits and Losses shall be applied in a manner consistent with IRC 704 and the Treasury Regulations promulgated under it. The provisions of this article V shall be interpreted in a manner consistent with IRC 704 and the Treasury Regulations promulgated under it.

## ARTICLE VI
DISTRIBUTIONS

### 6.1 Nonliquidating Distributions.

6.1.1 Subject to section 6.3, the Company and Members agree that for each fiscal year, the Company shall distribute sufficient cash to the Members (pro rata, in accordance with the number of each Member's Shares) for the Members to timely pay when due (whether in estimated tax payments or with a final tax return, as applicable) all federal, state, and local income taxes resulting from the income of the Company being taxed to the Members due to the partnership tax status of the Company (Tax Distributions). The Company's obligation to make

9

the Tax Distributions shall be deemed to be a liability of the Company and shall be properly reserved for by the Manager before making any other nonliquidating distributions. For this purpose, the Members will be deemed to pay tax at the highest marginal corporate income tax rate.

6.1.2 Subject also to section 6.3, additional distributions may be made to the Members (pro rata, in accordance with each Member's respective Shares) in the amounts or forms and at the times determined by the Manager or otherwise by the majority of the Members.

6.2 Liquidating Distributions. If the Company is dissolved under article XII or is liquidated within the meaning of Treas Reg 1.704-1(b)(2)(ii)(g), in compliance with Treas Reg 1.704-1(b)(2)(ii)(b)(2), all liquidating distributions shall be made to the Members who have positive Capital Accounts, in accordance with the positive Capital Account balances, but only after the Capital Accounts have been adjusted for all prior contributions and distributions and all allocations under article V for all fiscal years (including the fiscal year during which the liquidation occurs).

6.3 Restrictions on Distributions. Except as otherwise permitted under the Act, no distribution (nonliquidating or liquidating) shall be made if, after giving the distribution effect, the Company would not be able to pay its debts as they become due in the usual course of business or the Company's total assets would be less than the sum of its total liabilities. The effect of the distribution shall be measured at the times set forth in the Act.

## ARTICLE VII
MEMBER VOTING

7.1 Member Voting. Any and all matters submitted to a vote of the Members shall require the affirmative vote of the Members holding a majority of the outstanding Shares. Without limiting the generality of the foregoing, the following specific actions shall be authorized only by the majority vote of the Members and not by the Manager:

7.1.1 A merger or conversion involving the Company.

7.1.2 The dissolution of the Company.

7.1.3 An amendment of the articles or, except as provided in section 13.1, the amendment of this Operating Agreement.

7.1.4 The admission of an Admitted Member.

7.1.5 Any sale or other disposition of all, or substantially all, of the assets of the Company.

7.1.6 The appointment or removal of the Manager.

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**7.2 Meetings.** A meeting of the Members may be called by the Manager or 1 or more Members holding at least 50 percent of the total outstanding Shares. The Manager and any such Member or Members shall provide each of the Members with written notice of the time, place, and purposes of any meeting not less than 5 nor more than 30 days before the scheduled date of any meeting.

A Member may participate in any meeting of the Members by a conference telephone or by other similar communications equipment through which all persons participating in the meeting may communicate with the other participants. Participation in a meeting by a conference telephone or by other similar communications equipment by a Member constitutes presence of the Member in person at the meeting. A Member may waive notice of the time, place, and purpose of any meeting either before or after any meeting is held.

**7.3 Adjournment of Meetings.** Any meeting of the Members may be adjourned to another time or place by a majority vote of the Shares present, regardless of whether such Shares constitute a majority of the outstanding Shares at the time of the adjournment. If a meeting is adjourned, notice of the adjourned meeting is not required to be given if the time and the place of the adjourned meeting is announced at the meeting at which the adjournment occurs. The Members may transact any business at the adjourned meeting that might have been transacted at the original meeting.

**7.4 Actions by Written Consent.** Any action required or permitted by the Act, the Articles, or this Operating Agreement to be taken at any meeting of the Members may be taken without a meeting, without prior notice, and without a vote if a written consent setting forth the action taken is signed by the Members who collectively own a majority of the outstanding Shares entitled to vote.

## ARTICLE VIII

**8.1 Manager.** Except as otherwise provided in this Operating Agreement or required under the Act, the business and affairs of the Company shall be managed by or under the authority of the Manager, appointed from time to time by the Members. The Manager may be a Member and may also assume any title the Manager chooses, including the title of Manager, Managing Member, or President.

**8.2 Initial Manager.** Matthew A. Hall is appointed to serve as the initial Manager.

**8.3 Power and Authority of Manager.** Except as otherwise provided in this Operating Agreement or required under the Act, any and all decisions and actions concerning the business and affairs of the Company shall be made by the Manager alone. Except as otherwise provided in this Operating Agreement or required under the Act, the Manager has the sole power and authority, on behalf of the Company, to make all decisions and to take all actions necessary or convenient to carry out the Company’s business and affairs.

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8.4 Officers. The Manager may also appoint officers of the Company and delegate to them all the necessary and proper powers to take actions on behalf of the Company. An officer may also be a Member or a Manager. Initially, Matthew A. Hall is appointed as President of the Company.

8.5 Resignation; Removal; Vacancy. The Manager may resign at any time on providing prior written notice to the Members. The Manager may also be removed by the Members at any time, without prior notice, for any reason or no reason whatsoever. If the Manager resigns, is removed, or otherwise is unwilling or unable to serve as the Manager, the Members shall appoint a successor. An officer may be removed by the Manager at any time, for any reason or no reason whatsoever. An officer may also resign at any time by providing written notice to the Manager. Upon an officer's resignation, the Manager may appoint a replacement pursuant to Section 8.4.

## ARTICLE IX
INDEMNIFICATION; EXCULPATION OF LIABILITY

9.1 Indemnification. The Company shall indemnify, defend, and hold harmless a Member, the Manager, and/or officer who was or is a party or is threatened to be made to be a party to a threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and whether formal or informal, other than an action by or in the right of the Company, by reason of the fact that the Member is or was a member of the Company or the Manager or officer is or was acting as a manager or officer of the Company against all losses, expenses, claims, and demands (including attorney fees, judgments, penalties, fines, and amounts paid in settlement) actually and reasonably incurred by the Member in connection with the action, suit, or proceeding except for the receipt of a financial benefit to which the individual is not entitled, for liability under Section 308 of the Act, MCL 450.4308, or for a knowing violation of law.

9.2 Monetary Liability of Manager or Officers. The Manager and any officers shall not be monetarily liable to the Company or its Members for that Manager's or officer's breach of any duty established in Section 404 of the Act except, however, that the Manager or officer shall not be so absolved of liability and shall be liable for the receipt of a financial benefit to which such Manager or officer is entitled under Section 308 of the Act, MCL 450.4308, or for a knowing violation of law.

## ARTICLE X
TRANSFERS OF SHARES

### 10.1 Restrictions on Transfers of Shares.

10.1.1 The Members each agree that they will not voluntarily, involuntarily, or by operation of law sell, transfer, assign, encumber, pledge, convey, or otherwise dispose of (Transfer) part or all

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of the Shares they now own or may acquire at a later time, except pursuant to the terms of this article X or as provided in article XI. Any Transfer or attempted Transfer in violation of this article X shall be null and void and of no effect whatsoever except as provided in article XI.

Any certificate representing Shares owned by a Member shall conspicuously bear the following legend:

THE OWNERSHIP, ENCUMBRANCE, PLEDGE, ASSIGNMENT, SALE, TRANSFER, OR OTHER DISPOSITION OF THE MEMBERSHIP INTEREST EVIDENCED BY THIS CERTIFICATE IS SUBJECT TO THE RESTRICTIONS IN AN OPERATING AGREEMENT BETWEEN THE MEMBER, THE COMPANY, AND THE OTHER MEMBERS. THAT AGREEMENT CONTAINS CERTAIN RIGHTS AND OPTIONS OF THE COMPANY AND THE OTHER MEMBERS TO PURCHASE THIS MEMBERSHIP INTEREST. A COPY OF THE OPERATING AGREEMENT IS ON FILE AT THE OFFICE OF THE COMPANY. ANY ENCUMBRANCE, PLEDGE, ASSIGNMENT, SALE, TRANSFER, OR OTHER DISPOSITION OF THIS MEMBERSHIP INTEREST CONTRARY TO THE OPERATING AGREEMENT SHALL BE NULL AND VOID AND OF NO EFFECT WHATSOEVER.

In the event of the dissolution of a Member that is a corporation, limited liability company, partnership, limited partnership, or any other entity, the successors in interest of the dissolved Member shall, for the purposes of winding up the affairs of the dissolved Member, have the rights of a mere assignee of the Member’s membership interest in the Company, as provided in the Act, and shall not become an additional or substitute Member.

Any direct or indirect transfer or assignment of any direct or indirect ownership or other interest in a Member that is a corporation, limited liability company, partnership, limited partnership, trust, or any other entity that (taking into account any prior transfers or assignments) results in the Member being controlled by a Person or Persons other than the Person or Persons that controlled the Member when the Member first became a Member shall be deemed a Transfer of the Shares of the Member and therefore subject to all of the terms of this article X. In addition, any encumbrance, pledge, or other collateral assignment of a direct or indirect ownership or other interest in a Member that is a corporation, limited liability company, partnership, limited partnership, or any other entity that, if the pledgee or other assignee were to exercise its right to acquire the interest, would (taking into account any prior transfers or assignments described above and any prior pledges, encumbrances, or collateral assignments) result in the Member being controlled by a Person or Persons other than the Person or Persons that control the Member when that Member first became a Member, shall be deemed a Transfer of the Shares of the Member and therefore shall also be subject to all of the restrictions and provisions of this article X.

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10.1.2 Notwithstanding the foregoing to the contrary, a Member may Transfer the Member's Shares to a revocable trust created for the benefit of and subject to the exclusive dominion and control of the Member during the lifetime of the Member (a Permitted Trust Transfer), provided that the Permitted Trust Transfer is made in accordance with the terms of section 10.4. The Shares held shall be subject to and shall be bound and governed by all of the provisions of this Operating Agreement. On a Permitted Trust Transfer and the execution by the trustee (or trustees) of a written agreement, in form and substance satisfactory to the Manager, pursuant to which the trustee (or trustees) agree to be bound by the terms of this Operating Agreement, the trustee (or trustees) of any such trust shall automatically be admitted as an Admitted Member in accordance with the terms of section 10.4.

10.2 Transferee's Rights. Notwithstanding the Transfer of part or all of the Shares owned by a Member, whether or not in compliance with the provisions of this article X, under no circumstances shall any transferee be admitted as an Admitted Member except in accordance with the terms of section 10.4. No transferee shall have any right to vote on or participate in the management or affairs of the Company, unless and until the transferee qualifies and is admitted as an Admitted Member in accordance with the terms of section 10.4. A transferee who is not admitted as an Admitted Member shall be entitled only to the profits, losses, and distributions allocated to the Shares under this Operating Agreement.

10.3 Transferor's Rights. A Member who Transfers all or part of the Shares owned by the Member shall no longer have any rights regarding the Shares transferred (even if the transferee is not admitted as an Admitted Member) but shall continue to have all of the liabilities and obligations regarding the Shares even if the liabilities and obligations are assumed by the transferee. A Member shall cease to be a Member in the Company on the Transfer of all of the Shares owned by the Member whether or not the transferee is admitted as an Admitted Member.

### 10.4 Admission of Admitted Member.

10.4.1 A transferee pursuant to a Permitted Trust Transfer shall automatically be admitted as an Admitted Member unless

a. the Transfer will, in the opinion of counsel satisfactory to the Manager, result in the termination of the Company for federal income tax purposes;

b. the Transfer will, in the opinion of counsel satisfactory to the Manager, result in the Company not qualifying for an exemption from the registration requirements of federal or any applicable state securities law;

c. the Transfer otherwise would, in the opinion of counsel satisfactory to the Manager, result in any adverse tax consequence to the Company or the Members;

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d. the Transfer will be to a “foreign person” as that term is defined in the Foreign Investment Real Property Tax Act of 1980, as amended; or

e. the Transfer will result in the default under a loan agreement or other material agreement to which the Company or any of its assets are subject.

10.4.2 No other transferee shall be admitted as an Admitted Member unless and until

a. the majority interest of the Members consent to the transferee’s admission as an Admitted Member;

b. the transferee shall furnish to the Company the transferee’s taxpayer identification number and any and all other information necessary or appropriate for the Company to file any and all required federal and state tax forms and returns; and

c. the transferee executes a written agreement, in form satisfactory to the Manager, pursuant to which the transferee agrees to be bound by all of the terms of this Operating Agreement.

### 10.5 Mandatory Offer to Sell in Case of a Bona Fide Offer.

10.5.1 If a Member desires, for any reason, to Transfer any of the Shares then owned by the Member pursuant to an offer to purchase the Shares received from another Person (Bona Fide Offer), the Member shall immediately provide the Manager and the other Members with written notice, together with a copy of the Bona Fide Offer if it is in writing and any and all information (including any related documents). For a period of 60 days following the receipt of the notice and information, or for a period of 30 days following the determination of the Purchase Price under the terms of this article X, whichever is longer, the Company shall have the exclusive right and option (First Option), but not the obligation, to elect to purchase all of the Shares subject to the Bona Fide Offer either at the same price and terms as in the Bona Fide Offer or at the price provided in section 10.11.1 and the terms in sections 10.12, 10.13, and 10.14 of this Operating Agreement. The Company shall be free to select either alternative or neither in its sole and absolute discretion. If the Company fails to exercise the First Option, for an additional 60-day period, the other Members of the Company shall have the exclusive right and option (Second Option), but not the obligation, to purchase all of the Shares subject to the Bona Fide Offer (Second Option) on a Pro-Rata Basis either at the same price and terms as in the Bona Fide Offer or at the price provided in section 10.11.1 and terms provided in sections 10.12, 10.13, and 10.14 of this Operating Agreement. If the Members fail to exercise the Second Option as provided above, the Member desiring to sell the Shares may sell them subject to the Bona Fide Offer to the purchaser named in the Bona Fide Offer but only if the sale is made strictly in accordance with all of the terms of the Bona Fide Offer. However, if the sale pursuant to the Bona Fide Offer is not consummated within 60 days following the expiration of the Second Option, the Member desiring to sell the Shares must once again give the Company the First Option and the other Members the Second Option to purchase the Shares on a Pro-Rata Basis before any Transfer of

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any Shares pursuant to that or any other Bona Fide Offer. If either the First Option or Second Option is exercised and the terms of the Bona Fide Offer are selected by the purchaser having the option, the sale of the Shares shall be closed in the time frame provided for within the Bona Fide Offer or at any time within 60 days following the exercise of the option at the sole election of the party exercising that option.

10.5.2 The terms of section 10.5.1 shall not apply to any transaction subject to article XI of this Operating Agreement.

10.5.3 For the purposes of article X of this Operating Agreement, “Pro-Rata Basis” with reference to the purchase of any Shares of a selling Member by the remaining Members means that basis of sharing pursuant to the unanimous written agreement of the remaining Members or, absent that agreement, pursuant to each of the remaining Members’ respective percentage interests in the outstanding Shares of the Company (excluding the Shares owned by the selling Member), and if one or more of the remaining Members declines to purchase the Member’s entire share of the Shares being sold, unpurchased Shares shall again be offered to the remaining Shareholders (other than any declining Member) in accordance with their revised respective percentage interests (excluding any Shares of the selling Member or any declining Member), and the foregoing process shall be repeated until all of the remaining Shares of the selling Member to be purchased by the remaining Members are purchased.

10.6 Mandatory Offer to Sell in Absence of a Bona Fide Offer or on Another Triggering Event. If any Member desires for any reason to Transfer any of the Shares then owned by the Member in the absence of a Bona Fide Offer or automatically on the occurrence of any of the triggering events set forth in sections 10.7, 10.8 or 10.9, the Member’s legal representative or successor shall immediately provide the Company and the other Members with written notice and, on the occurrence of any such triggering event, the Member shall be deemed to have made an offer to sell all of the Member’s Shares at the price and on the terms as provided in sections 10.11, 10.12, 10.13, and 10.14 of this Operating Agreement. For a period of 60 days following the receipt of the written notice, or within a 30-day period following the determination of the Purchase Price under the terms of this article X, whichever is longer, the Company shall have the exclusive right and option, but not the obligation, to purchase all of the Member’s Shares at the price and on the terms in sections 10.11, 10.12, 10.13, and 10.14 of this Operating Agreement. If the Company fails to exercise this option, for an additional 30-day period the other Members of the Company shall have the exclusive right and option, but not the obligation, to purchase the Shares not acquired by the Company on the same price and terms as available to the Company. Any purchase of Shares by the other Members of the Company shall be made on a Pro-Rata Basis. If the other Members fail to exercise their option to purchase the Shares, the Member desiring to sell the Shares shall not be permitted to Transfer the Shares unless and until the Member obtains a Bona Fide Offer for the Shares and complies with section 10.5 and, until such time, all of the Shares shall continue to be subject to all of the terms of article X.

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10.7 Involuntary Transfers. Each Member agrees that if a Member suffers any involuntary Transfer or purported involuntary Transfer of part or all of that Member's Shares, including, but not limited to, any Transfer or purported Transfer resulting from bankruptcy, insolvency, divorce, or otherwise, that Member shall immediately provide the Company and all other Members with written notice and the Member shall be deemed to have made on the date of that event an offer to sell all of the Member's Shares pursuant to section 10.6 and the Company and other Members shall have the option, but not the obligation, to acquire the Shares in the manner set forth in section 10.6. For the purpose of this section, an involuntary Transfer shall be deemed to have occurred at the moment a petition in bankruptcy is filed by or against the Member, a petition seeking the appointment of a receiver over the Member's property is filed by or against the Member, or a complaint of divorce is filed by or against the Member.

### 10.8 Death or Permanent Disability; Divorce.

10.8.1 In the event that Member Matthew Hall dies or suffers a Permanent Disability, his Shares shall automatically be transferred to his wife who shall automatically be admitted as a Member and have all the voting and other powers associated with full ownership of such shares. If Matthew Hall's wife is deceased at the time of his death or incapacity, then his Shares shall be transferred as part of his estate and disposed of in accordance with the discretion of his duly appointed executor or other representative consistent with his estate plan. If Matthew Hall is not married at the time of his death or incapacitation, or files or has filed against him a complaint of divorce, he will be deemed to have made an offer to sell all of his Shares to the Company pursuant to section 10.6.

10.8.2 In the event that Member Randy Waclawski or Patty Hickman die or suffer a Permanent Disability, their Shares shall automatically be transferred to the surviving person, meaning either Randy Waclawski or Patty Hickman. In the event there is no surviving person, the Shares shall be disposed of in accordance with the discretion of his duly appointed executor or other representative consistent with their or the survivor's estate plan.

10.8.3 Except as set forth in Sections 10.8.1 and 10.8.2, each Member who is a natural Person and each Member that is a trust agree for that Member and the Member's legal representatives or successors (including the successor trustee (or trustees) of a trust holding the Shares pursuant to a Permitted Trust Transfer) that on the death or Permanent Disability of that Member who is a natural Person or of the natural Person who is trustee of such trust, an offer to sell all of the Member's Shares will be deemed to have been made pursuant to section 10.6 and the Company and the other Members shall have the option to acquire those Shares in the manner set forth in section 10.6. Upon the filing of a petition for divorce by or against any Member who is a natural person, that Member will be deemed to have made an offer to sell all of that Member's Shares pursuant to section 10.6 and the Company and the other Members shall have the option to acquire those Shares in the manner set forth in section 10.6

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**10.9 Termination of Employment or Association.** If a Member who is a natural Person or a natural Person who is the trustee of a trust that is a Member is employed by or otherwise actively involved in the Company's business, whether as a manager, officer, independent contractor, or otherwise, and that natural Person resigns, is terminated, is removed, is no longer performing services for the Company, or is no longer actively involved in the business of the Company, whether for cause, without cause, voluntarily, involuntarily, or for any reason or no reason whatsoever, an offer to sell all of such Member's Shares shall be deemed to have been made pursuant to section 10.6 of this Operating Agreement and the Company and other Members shall have the option to acquire such Shares in the manner set forth in section 10.6.

**10.10 Deadlock.** If any matter submitted to a vote of the Members fails to be approved by the Members (Deadlock), the Members shall engage in good faith discussions to resolve the Deadlock. If, after 30 days, the Deadlock is still not resolved by the required vote of the Members, the Deadlock shall be submitted to one or more mediators selected by the Members. If, after an additional 30 days, the Deadlock is still not resolved with the required vote of the Members, for an additional 10 days, any Member may deliver to the other Members a written offer to sell the Member's Shares to the other Members on a Pro-Rata Basis for the Book Value of the Shares or to purchase the Shares of the other Members on a Pro-Rata Basis for the Fair Market Value of the Shares. The other Members shall then have for an additional 10 days the exclusive right and option, but not obligation, to in writing either accept the Member's offer to sell the Shares to the other Members or to accept the Member's offer to purchase the Shares of the other Members. If the other Members reject the offer or fail to unanimously accept it within this period, the Member making the initial offer shall then have for an additional 10 days the exclusive right and option to elect in writing to require the other Members to either purchase the Member's Shares at their Book Value or to require the other Members to sell their Shares at their Fair Market Value. Any sale and purchase of the Shares under this section 10.10 shall be on the terms in sections 10.12, 10.13, and 10.14 of this Operating Agreement.

## **10.11 Purchase Price.**

**10.11.1** The Purchase Price to be paid on the purchase and sale of Shares sold pursuant to sections 10.5.1, 10.7, or 10.9 or as provided in section 10.10 of this Operating Agreement shall be the Book Value of the Shares, meaning the amount equal to the Capital Account balance of the Member holding the Shares. However, the Member's Capital Account shall be adjusted to exclude any adjustments made to the Member's Capital Account pursuant to either section 1.4(b) or section 1.4(d) as of the last day of the month preceding the offer to sell or deemed offer to sell. If the parties to the transaction cannot agree on the Book Value of the Shares within 30 days of the date of the offer or deemed offer, as appropriate, the certified public accountant customarily retained by the Company shall, in accordance with generally accepted accounting principles, consistently applied, determine the Book Value of the Shares. This determination shall be final and binding on all parties and enforceable by the issuance of the appropriate orders by a court of competent jurisdiction.

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**10.11.2** The Purchase Price to be paid on the purchase and sale of Shares sold pursuant to section 10.8 or as provided in section 10.10 of this Operating Agreement shall be the Fair Market Value of such Shares, which means the fair market value of the Shares as of the last day of the month preceding the offer to sell or deemed offer to sell. If the parties to the transaction cannot agree on the Fair Market Value of the Shares within 30 days of the date of the offer or deemed offer, as appropriate, within the following 10 days the parties shall appoint a mutually agreeable appraiser to determine the Fair Market Value of the Shares. The appraiser shall submit a written appraisal of the Shares within 30 days after the appraiser's appointment and this appraisal shall be final and binding on all parties and enforceable by the issuance of the appropriate orders by a court of competent jurisdiction. If the parties cannot agree on a mutually agreeable appraiser within the allotted time period, each party shall, within 10 days after that time period, designate one qualified independent appraiser. The appraisers so designated shall themselves, within 15 days, designate a third qualified independent appraiser. Each of the three appraisers shall submit, within 30 days after all the appraisers have been designated, a written appraisal of the Fair Market Value of the Shares. The numerical average of the 2 closest appraisals shall determine the Fair Market Value of the Shares and shall be final and binding on all parties and enforceable by the issuance of the appropriate orders by a court of competent jurisdiction. The appraisal that is not one of the 2 numerically closest appraisals shall be rejected. Each party shall pay the costs and expenses of their respective appraisers, and the party whose appraisal is rejected shall pay the costs and expenses of the independent appraiser. If the appraisal of the independent appraiser is rejected, the costs and expenses of the independent appraiser shall be borne equally by the parties. If one party fails, refuses, or otherwise neglects to appoint an appraiser, the other party's appraiser shall solely determine the Fair Market Value of the Shares and that determination shall be final and binding on the parties and enforceable by the issuance of the appropriate orders by a court of competent jurisdiction.

**10.12 Payment of Purchase Price.** The Purchase Price shall be paid in full by a certified or bank cashier's check at the Closing (as defined in section 10.13) or, at the sole election of the Company or Members purchasing the Shares, the Purchase Price shall be paid by the delivery of a certified or bank cashier's check in an amount equal to 20 percent of the Purchase Price and the balance shall be paid pursuant to a nonnegotiable promissory note of the Company (the Note) providing for equal annual payments of principal, together with accrued interest, over the following 5-year period beginning on the first anniversary of the Closing. The Note, which shall be executed and delivered at Closing, shall provide for interest equal to the prime rate of interest published in the *Wall Street Journal* as of the date of the Note, which the rate of interest shall be adjusted thereafter on each anniversary of the Note to the prime rate published by the *Wall Street Journal* on that anniversary. The Note shall also provide that it may be prepaid without penalty, in whole or in part, at any time and from time to time. On default in any payment due under the Note for over 30 days, the holder of the Note shall have the option to declare the entire unpaid balance immediately due and payable.

**10.13 Closing.** The sale and purchase of Shares pursuant to this article X shall be consummated at a closing (the Closing) to be held within 60 days following the determination of

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the Purchase Price. The Member selling the Shares is sometimes referred to as the Seller and the Company or Member purchasing the Shares is sometimes referred to as the Purchaser.

**10.13.1** The Closing shall take place at the principal office of the Company or at another place the parties to the transaction may agree to in writing.

**10.13.2** The date and time of the Closing shall be established by the Manager who shall provide written notice to the Seller at least seven days before the Closing.

**10.13.3** At the Closing, the Purchaser shall pay for the Shares in the manner provided by section 10.12 and the Seller shall execute and deliver (a) any certificates representing all of the Shares to be sold, duly endorsed for transfer, free and clear of all liens, encumbrances, and claims whatsoever and (b) such form (or forms) of assignment and other documents required by the Purchaser to legally and completely sell, transfer, and assign the Shares to the Purchaser.

**10.13.4** If the Seller protests the Closing, does not attend the Closing, or otherwise does not deliver the appropriate certificates and/or assignments at the Closing,

a. the sale, transfer, and assignment of the Shares shall nonetheless occur and be effective without the requirement of any action being taken by the Seller,

b. the Purchase Price (and cash and/or Note, as applicable) shall be deposited with the Company, and

c. the Company shall be entitled to and shall automatically and unilaterally adjust its books to reflect that the Shares have in fact been sold, transferred, and assigned to the Purchaser.

**10.13.5** The Manager is irrevocably appointed as Seller's true and lawful attorney in fact with the power to execute and deliver in the Seller's place and stead all certificates, instruments, and documents necessary or incidental to the sale, transfer, and assignment of the Shares at the Closing. This power of attorney is irrevocable and is coupled with an interest and does not terminate on the Seller's disability, but continues as long as this Operating Agreement is in effect.

**10.14 Setoff.** If any amount is or becomes payable by the Seller to the Purchaser, the Purchaser shall have the option to elect to reduce, on a dollar-for-dollar basis, any amount due or payable to the debtor Member under this Operating Agreement or otherwise by any such amount due or payable by the Seller to the Purchaser. This elective right of setoff shall be cumulative and in addition to any and all additional remedies to which the Purchaser may be entitled at law or equity.

# ARTICLE XI
SALE OF THE COMPANY

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If the Company receives an offer to purchase all or substantially all of the assets of the Company or an offer to be a party to a merger, a share exchange, or other combination or if one or more Members who own, individually or together, more than 50 percent of the outstanding Shares (the Controlling Member(s)) receives an offer to purchase the Shares of the Controlling Member(s), the Controlling Member(s) desire to accept the following:

a. The terms and restrictions in Article X shall not apply to such transaction.

b. Each other Member shall cooperate fully in any such transaction and execute any document that may be desired or required and to take any other action and do any other thing that may be desired or required.

c. At the option of the Controlling Member(s), each other Member shall sell the Member's Shares to the Company, the Controlling Member(s), or to the Person offering to purchase the Shares of the Controlling Member(s) at the price and on the terms provided in the offer.

d. Any liability of the Members for post-closing adjustments and indemnification shall be shared by the Members, among themselves, by contribution, according to their respective Shares unless otherwise agreed to by the Members.

## ARTICLE XII
DISSOLUTION OF COMPANY

**12.1 Dissolution of Company.** The Company shall be dissolved and its affairs wound up on the first to occur of any one of the following:

a. the majority vote of the Members; or

b. the entry of a decree of judicial dissolution.

**12.2 Winding Up.** On the dissolution of the Company, the Members shall promptly commence the winding up of the Company's business and affairs pursuant to and in accordance with the Act. All Company assets remaining after payment to creditors of the Company (including any Members who are creditors) shall be distributed to the Members in accordance with article VI.

## ARTICLE XIII
MISCELLANEOUS PROVISIONS

**13.1 Amendments.** This Operating Agreement may only be amended only as follows:

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13.1.1 Any amendment that the Manager determines to be necessary in connection with the admission of an Admitted Member may be approved and this Operating Agreement may be amended by the Manager.

13.1.2 Any other amendment may be approved, and this Operating Agreement may be amended by the majority vote of the Members.

13.2 Waiver of Breach. The waiver of a breach of any provision of this Operating Agreement shall not operate as or be construed as a waiver of any subsequent breach. Each and every right, remedy, and power granted to any party by this Agreement or allowed it by law shall be cumulative and not exclusive of any other.

13.3 Severability. If any of the provisions of this Operating Agreement or its application to any party under any circumstances is adjudicated to be invalid or unenforceable, the invalidity or unenforceability shall not affect any other provision of this Operating Agreement or its application.

13.4 Entire Operating Agreement. The Articles and this Operating Agreement (the Organizational Documents) constitute the entire agreement among the parties pertaining to affairs of the Company and the conduct of its business. The Organizational Documents supersede and terminate any and all other previous or contemporaneous communications, representations, understandings, agreements, negotiations, and discussions, whether oral or written, between the parties pertaining to the affairs of the Company and the conduct of its business.

13.5 Interpretation. Where appropriate in this Operating Agreement, words used in the singular shall include the plural, and words used in the masculine include the masculine, feminine, and neuter.

13.6 Assignment and Delegation. The rights and obligations of the parties under this Operating Agreement may not be assigned or delegated.

13.7 Notice. All notices required to be sent pursuant to this Operating Agreement shall be personally delivered or mailed by certified or registered mail to the addresses of the Members indicated in the Company's books. Notice of a Member's change of address shall be mailed by certified mail to the Company's registered office.

13.8 Governing Law. This Operating Agreement shall be governed by and construed in accordance with the laws of the State of Michigan, notwithstanding that any party is or may later become domiciled in a different state or jurisdiction.

13.9 Counterparts. This Operating Agreement may be executed in duplicate original counterparts, and all copies of this Operating Agreement so executed shall be deemed to be one Operating Agreement. This Agreement may be executed electronically.

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**13.10 Securities Laws.** Each Member acknowledges and represents

a. that the Shares have not been registered under the Securities Act of 1933, as amended, or under the securities acts of any state in reliance on applicable exemptions under those laws and may not be assigned or otherwise transferred without registration or an exemption, and

b. notwithstanding any provisions in this Operating Agreement, that no Shares may be offered or sold and no transfer of any Shares will be made either by the Company or the Members unless

i. the Shares are registered under the Securities Act of 1933 and any applicable state securities laws or

ii. an opinion of counsel for the Company is obtained to the effect that registration is not necessary.

**13.11 Conflicts of Interest.** THE MEMBERS ACKNOWLEDGE THAT THE COUNSEL WHO PREPARED THIS AGREEMENT IS LEGAL COUNSEL FOR THE COMPANY AND THAT THEY (A) HAVE BEEN ADVISED THAT THEY SHOULD SEEK THE ADVICE OF THEIR OWN INDEPENDENT COUNSEL, INCLUDING TAX COUNSEL, AND (B) HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF SUCH COUNSEL. THE MEMBERS WAIVE ANY AND ALL CLAIMS THEY MAY HAVE AGAINST LEGAL COUNSEL PREPARING THE AGREEMENT, INCLUDING ANY AND ALL CLAIMS OF ANY POSSIBLE CONFLICT OF INTEREST REGARDING THIS AGREEMENT OR ITS PREPARATION.

The parties have signed this First Amended Operating Agreement, effective as of the date first written above.

[SINGATURES ON THE FOLLOWING PAGE]

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**COMPANY:**

Midnight Harvest, LLC, a Michigan limited liability company

By: Matthew A. Hall

Its: Manager and President

**MEMBERS:**

Matthew A. Hall

Go Dutch LLC
By: Dave Dutch

Randall Waclawski

Patricia Hickman

Ben Harrison

Rebecca D. Stewart

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| MIDNIGHT HARVEST LLC |  |  |  |  |
| --- | --- | --- | --- | --- |
| SCHEDULE 3.1 - Capitalization Table |  |  |  |  |
| Member | Shares | Class | Percent | Voting |
| Matthew A. Hall | 8,800,000 | Common | 88% | Yes |
| Go Dutch LLC | 500,000 | Common | 5% | Yes |
| Randall Waclawski and Patricia Hickman (jointly) | 500,000 | Common | 5% | Yes |
| Ben Harrison | 100,000 | Common | 1% | Yes |
| Rebecca D. Stewart | 100,000 | Common | 1% | Yes |
| TOTAL: | 10,000,000 |  | 100% |  |

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Midnight Harvest LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** MI

**Date of Organization:** 03-31-2014

**Physical Address:** 9989 Harmony Dr, Interlochen, MI, 49643

**Issuer Website:** http://Midnight-harvest.com

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

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

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

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Simple Agreement for Future Equity (SAFE)

**Number of Securities Offered:** 50000

**Price per Security:** $1.00

**Method for Determining Price:** Pro-rated portion of the total principal value of $50,000; interests will be sold in increments of $1; each investment is convertible to one unit as described under Item 13.

**Target Offering Amount:** $50,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $124,000.00

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 1

**Total Assets (Most Recent Fiscal Year):** $8,840.00

**Total Assets (Prior Fiscal Year):** $3,445.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $8,042.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $2,971.00

**Accounts Receivable (Most Recent Fiscal Year):** $474.00

**Accounts Receivable (Prior Fiscal Year):** $474.00

**Short-Term Debt (Most Recent Fiscal Year):** $22,977.00

**Short-Term Debt (Prior Fiscal Year):** $24,546.00

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

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

**Revenues/Sales (Most Recent Fiscal Year):** $23,231.00

**Revenues/Sales (Prior Fiscal Year):** $13,541.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $5,284.35

**Cost of Goods Sold (Prior Fiscal Year):** $2,340.56

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

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

**Net Income (Most Recent Fiscal Year):** $7,383.00

**Net Income (Prior Fiscal Year):** $2,943.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, B5, GU, PR, VI, 1V

### Signatures

**Issuer:** Midnight Harvest LLC

**Signature:** Matthew Hall

**Title:** Owner/Grower

---

**Signature:** Matthew Hall

**Title:** Owner/Grower

**Date:** 02-23-2023

---

**Signature:** Matthew Hall

**Title:** Owner/Grower

**Date:** 02-16-2023