# EDGAR Filing Document

**Accession Number:** 0002069448
**File Stem:** 0002069448-25-000057
**Filing Date:** 2025-9
**Character Count:** 470693
**Document Hash:** 6f6cd04e3966c104aa3fb2ea781f87c5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0002069448-25-000057.hdr.sgml**: 20250911

**ACCESSION NUMBER**: 0002069448-25-000057

**CONFORMED SUBMISSION TYPE**: 1-A/A

**PUBLIC DOCUMENT COUNT**: 18

**FILED AS OF DATE**: 20250911

**DATE AS OF CHANGE**: 20250910

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Live Oak Financial LLC
- **CENTRAL INDEX KEY:** 0002069448
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 993516827
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12639
- **FILM NUMBER:** 251307089

**BUSINESS ADDRESS:**
- **STREET 1:** 3520 ALPINE AUTUMN
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78744
- **BUSINESS PHONE:** 7755135770

**MAIL ADDRESS:**
- **STREET 1:** 3520 ALPINE AUTUMN
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78744

## Ex1A-4

**Subscription Agreement**

**THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.** THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. THE NOTES WILL NOT BE LISTED ON ANY SECURITIES EXCHANGE AND, PER PLATFORM POLICY, MUST BE HELD BY REGISTERED LIVE OAK FINANCIAL INVESTORS; THE NOTES THEMSELVES ARE NOT SUBJECT TO FEDERAL TRANSFER RESTRICTIONS; WHILE WE MAY, IN OUR DISCRETION, PERMIT A SECONDARY TRADING VENUE IN THE FUTURE, THERE IS NO ASSURANCE A SECONDARY MARKET WILL DEVELOP.

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

**INVESTORS WHO ARE NOT "ACCREDITED INVESTORS" (AS THAT TERM IS DEFINED IN SECTION 501 OF REGULATION D PROMULGATED UNDER THE ACT) ARE SUBJECT TO LIMITATIONS ON THE AMOUNT THEY MAY INVEST, AS SET OUT IN SECTION 4.** THE COMPANY IS RELYING ON THE REPRESENTATIONS AND WARRANTIES SET FORTH BY EACH SUBSCRIBER IN THIS SUBSCRIPTION AGREEMENT AND THE OTHER INFORMATION PROVIDED BY SUBSCRIBER IN CONNECTION WITH THIS OFFERING TO DETERMINE THE APPLICABILITY TO THIS OFFERING OF EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT.

**THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT.** WHEN USED IN THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING

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STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

**THE COMPANY MAY NOT BE OFFERING THE SECURITIES IN EVERY STATE.** THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH THE SECURITIES ARE NOT BEING OFFERED.

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

<u>Subscription</u><br>&nbsp;&nbsp;&nbsp;&nbsp; • The undersigned ("Subscriber") hereby offers to subscribe for, which offer may be withdrawn at any time prior to Acceptance; the subscription becomes binding only upon Acceptance (as defined in the Offering Circular), and agrees to purchase Borrower Payment Dependent Note (the "Securities") from Live Oak Financial LLC (the "Company") at a purchase price of ${{purchasePrice}} principal amount of the Security (the "Per Security Price"), upon the terms and conditions set forth herein. The minimum subscription is $50; orders may be placed in $0.01 increments, except when fulfilling a corresponding loan's remaining principal.<br>&nbsp;&nbsp;&nbsp;&nbsp; • Subscriber understands that the Securities are being offered pursuant to an offering circular dated Jul 15, 2025 (the "Offering") filed with the SEC as part of the Offering Statement. By executing this Subscription Agreement, Subscriber acknowledges that Subscriber has received this Subscription Agreement, copies of the Offering Circular and Offering Statement including exhibits thereto and any other information required by the Subscriber to make an investment decision.<br>&nbsp;&nbsp;&nbsp;&nbsp; • Subscriptions are accepted only if the related Borrower Loan listing reaches 100% funding within a five-day window; we do not accept unmatched orders. We do not ACH-debit or otherwise collect investor funds prior to acceptance. Upon acceptance, we initiate ACH debit pursuant to Section 2.3 and, after settlement, we disburse borrower proceeds and issue the Note(s) as of the Borrower Loan disbursement date. If a listing does not fully fund within the five-day window or expires, no orders are accepted and no ACH debits are<br>

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; initiated. We will not accept subscriptions before required state securities registrations (including our Texas issuer-dealer and agent registrations) are effective.<br>&nbsp;&nbsp;&nbsp;&nbsp; • The aggregate principal amount of Securities sold shall not exceed $600,000 (the 'Maximum Offering'). The Company may accept subscriptions until the termination of the Offering in accordance with its terms (the "Termination Date"). The Company may elect at any time to close all or any portion of this offering, on various dates at or prior to the Termination Date (each a "Closing Date").<br>&nbsp;&nbsp;&nbsp;&nbsp; • In the event of rejection of this subscription in its entirety, or in the event the sale of the Securities (or any portion thereof) is not consummated for any reason, this Subscription Agreement shall have no force or effect, except for Section 5 hereof, which shall remain in force and effect. |
| <u>Purchase Procedure</u><br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Payment.</u> The purchase price for the Securities will be ACH-debited only after the Company accepts the subscription (the 'Closing Date'). No ACH debit occurs prior to acceptance. Payment for the aggregate purchase price of the Securities will be ACH debited from the Subscriber's financial account designated on the Company's web-based platform. In addition, and as further described in Section 2.3, Subscriber authorizes the Company to initiate ACH debit entries (including variable-amount debits) to such account to reverse provisional credits, to correct errors, and to recover amounts owed by Subscriber arising from chargebacks, returns, or other negative balances related to the Securities.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Record keeping.</u> The undersigned shall receive notice and evidence of the digital entry of the number of the Securities owned by undersigned reflected on the books and records of the Company, which books and records shall bear a notation that the Securities were sold in reliance upon Regulation A.<br><u>&nbsp;&nbsp;&nbsp;&nbsp; • ACH Authorization; Credits and Debits (Preauthorized EFTs).</u><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Authorization</u><u>.</u> Subscriber authorizes the Company (and its payment processor/ODFI) to initiate credit and debit entries via the ACH Network to and from the deposit account identified in Subscriber's profile (the "Bank Account") for: (i) collection of subscription amounts after acceptance; (ii) distribution of amounts due on the Notes; and (iii) recoupment of over-payments and other amounts owed by Subscriber under this Agreement and the Offering Circular, including amounts arising from reversals, returns, or chargebacks of borrower payments.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Consumer / Business Accounts.</u> If the Bank Account is a consumer account, this authorization constitutes a preauthorized electronic fund transfer under Regulation E and must be in writing and signed or similarly authenticated; Subscriber will receive a copy of this authorization electronically. If the Bank Account is a business account, this authorization is governed by the Nacha Operating Rules and applicable law.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Variable-Amount Debits; Advance Notice.</u> Debits to recoup over-payments will vary in amount. The Company will provide written electronic notice at least ten (10) days before each debit, stating the amount and scheduled date. No single debit will exceed the lesser of (x) $5,000 or (y) the applicable over-payment previously credited to Subscriber (including any contemporaneous fees/adjustments authorized hereunder).<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Scope and Limits.</u> Each debit for recoupment will not exceed the applicable over-payment (or the notice cap if the Range Option applies). The Company will not use Nacha "Reversal" entries to recover distributions; it will originate a new debit entry pursuant to this authorization. |

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Stop-Payment; Revocation (Reg E 1005.10(c)).</u> Subscriber may stop payment on a scheduled debit by notifying their financial institution at least three (3) business days before the scheduled date. Subscriber may revoke this authorization at any time by (i) updating Account Settings and (ii) emailing contact@live-oak-financial.com; revocation will be processed promptly for future debits.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Returns; Re-initiation (Nacha).</u> If an entry is returned for insufficient/uncleared funds or account not available, the Company may re-initiate the debit as permitted by the Nacha Rules. If a debit is returned as unauthorized, the Company may suspend distributions and apply set-off against future payments until cured.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Record Retention; Authentication.</u> The Company will retain proof of authorization for at least two years from termination and uses commercially reasonable authentication and security controls for WEB/PPD entries.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Contact and Copies.</u> Subscriber will receive an electronic copy of this authorization; additional copies are available on request. |
| <u>Representations and Warranties of the Company</u><br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Organization and Standing.</u> The Company is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Texas. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Issuance of the Securities.</u> The issuance, sale and delivery of the Securities in accordance with this Subscription Agreement has been duly authorized by all necessary limited liability company action on the part of the Company. The Securities, when so issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be valid and binding obligations of the Company, enforceable in accordance with their terms (subject to applicable laws relating to creditors' rights and equitable remedies).<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Authority for Agreement.</u> The execution and delivery by the Company of this Subscription Agreement and the consummation of the transactions contemplated hereby (including the issuance, sale and delivery of the Securities) are within the Company's powers and have been duly authorized by all necessary limited liability company action on the part of the Company. Upon full execution hereof, this Subscription Agreement shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; injunctive relief, or other equitable remedies and (iii) with respect to provisions relating to indemnification and contribution, as limited by considerations of public policy and by federal or state securities laws.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>No filings.</u> Assuming the accuracy of the Subscriber's representations and warranties set forth in Section 4 hereof, no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to the Company in connection with the execution, delivery and performance by the Company of this Subscription Agreement except (i) for such filings as may be required under Regulation A or under any applicable state securities laws, (ii) for such other filings and approvals as have been made or obtained, or (iii) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Company to perform its obligations hereunder.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Capitalization.</u> The authorized and outstanding securities of the Company immediately prior to the initial investment in the Securities is as set forth "Directors, Executive Officers and Significant Employees—Security Ownership of Management and Certain Securityholders" in the Offering Circular. Except as set forth in the Offering Circular, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), or agreements of any kind (oral or written) for the purchase or acquisition from the Company of any of its securities.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Financial Statements.</u> Complete copies of the Company's financial statements consisting of the balance sheets of the Company as at December 31, 2024 and Interim, May 11, 2025 and the respective statements of income, stockholders' equity and cash flows (the "Financial Statements") have been made available to the Subscriber and appear in the Offering Circular. The Financial Statements are based on the books and records of the Company and fairly present in all material respects the financial condition of the Company as of the respective dates they were prepared and the results of the operations and cash flows of the Company for the periods indicated. Umer Farooq, which has audited the Financial Statements, is an independent accounting firm within the rules and regulations adopted by the SEC.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Proceeds.</u> The Company shall use the proceeds from the issuance and sale of the Securities as set forth in "Use of Proceeds" in the Offering Circular.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Litigation.</u> Except as set forth in the Offering Circular, there is no pending action, suit, proceeding, arbitration, mediation, complaint, claim, charge or investigation before any court, arbitrator, mediator or governmental body, or to the Company's knowledge, currently threatened in writing (a) against the Company or (b) against any consultant, officer, manager, director or key employee of the Company arising out of his or her consulting, employment or board relationship with the Company or that could otherwise materially impact the Company.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Payments to Subscriber.</u> On each Payment Date, the Company will pay from its general funds the Amount Due on the Note, calculated by reference to amounts applied to the corresponding Reference Loan during the period, as described in the Offering Circular under Calculation of Amount Due. Investors are creditors of the Company only and have no lien, security, or ownership interest in any borrower, Borrower Loan, or remittances. The Amount Due for any period may be zero.<br>

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|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Reversals and Clawbacks.</u> If a borrower payment credited in a prior period is returned or reversed after the Company has remitted to Subscriber, the Company will (i) cancel any pending credit; (ii) initiate an ACH debit to the Bank Account to recover the over-payment, consistent with §2.3 (including the 10-day notice requirement and the per-debit cap of the lesser of $5,000 or the applicable over-payment); and (iii) reflect the reversal in the next Calculation Statement. If any portion is unpaid or a debit is returned or prohibited by law, the Company may set off the remaining shortfall against subsequent payments for the same series and suspend further distributions until cured. |
| 4. | <u>Representations and Warranties of the Subscriber</u> |

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

&nbsp;&nbsp;&nbsp;&nbsp; • <u>Requisite Power and Authority.</u> Such Subscriber has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement and other agreements required hereunder and to carry out their provisions. All action on Subscriber's part required for the lawful execution and delivery of this Subscription Agreement and other agreements required hereunder have been or will be effectively taken prior to the Closing Date. Upon their execution and delivery, this Subscription Agreement and other agreements required hereunder will be valid and binding obligations of Subscriber, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors' rights and (b) as limited by general principles of equity that restrict the availability of equitable remedies.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Investment Representations.</u> Subscriber understands that the Securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act"). Subscriber also understands that the Securities are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Subscriber's representations contained in this Subscription Agreement.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Illiquidity and Continued Economic Risk.</u> Subscriber acknowledges and agrees that there is no ready public market for the Securities and that there is no guarantee that a market for their resale will ever exist. Subscriber must bear the economic risk of this investment indefinitely and the Company has no obligation to list the Securities on any market or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Securities. Subscriber acknowledges that Subscriber is able to bear the economic risk of losing Subscriber's entire investment in the Securities. Subscriber also understands that an investment in the Company involves significant risks and has taken full cognizance of and understands all of the risk factors relating to the purchase of Securities.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Accredited Investor Status or Investment Limits.</u> Subscriber represents that either:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subscriber is an "accredited investor" within the meaning of Rule 501 of Regulation D under the Securities Act. Subscriber represents and warrants that the information set forth in response to question (c) on the signature page hereto concerning Subscriber is true and correct; or<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The purchase price of the Securities, together with any other amounts previously used to purchase Securities in this offering, does not exceed 10% of the greater of the Subscriber's annual income or net worth.<br>

Subscriber represents that, if it had any questions regarding accredited status or the application of investment limits, it sought professional advice, and further represents that it is a 'qualified purchaser' under Regulation A. If Subscriber is a non-accredited natural person, Subscriber acknowledges the Platform's enforcement of NASAA-informed suitability thresholds—(a) annual income ≥ $80,000 and net worth ≥ $80,000 (excluding home, furnishings, and autos), with total purchases limited to 10% of net worth; or (b) net worth ≥ $280,000 (same exclusions), with total purchases limited to 10% of net worth—in addition to the Regulation A Tier 2 10% limit, and agrees that orders may be blocked or reduced to comply.

&nbsp;&nbsp;&nbsp;&nbsp; • <u>No Reliance on Tax Advice.</u> The Subscriber has reviewed with his, her or its own tax advisors the foreign, federal, state and local tax consequences of this investment, where applicable, and the transactions contemplated by this Agreement. The Subscriber is relying solely on such advisors with respect to tax matters and not on any tax advice of the Company or any of its agents, and understands that the Subscriber (and not the Company) shall be responsible for the Subscriber's own income tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. Nothing in this Section 4.5 limits or waives any rights under federal or state securities laws or the Subscriber's ability to rely on the Company's disclosures in the Offering Circular and any amendments or supplements thereto.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Independent Legal Advice.</u> The Subscriber and the Company acknowledge that each has had the opportunity to review this Agreement and the transactions contemplated by this Agreement and has consulted with its own legal counsel, and other advisors prior to execution of the within Agreement, and that the Company will pay the fees and expenses with respect to the Offering, including all filing fees.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Company Information.</u> Subscriber understands that the Company is subject to all the risks that apply to early-stage companies, whether or not those risks are explicitly set out in the Offering Circular. Subscriber has had such opportunity as it deems necessary (which opportunity may have presented through online chat or commentary functions) to discuss the Company's business, management and financial affairs with managers, officers and management of the Company and has had the opportunity to review the Company's operations and facilities. Subscriber has also had the opportunity to ask questions of and receive answers from the Company and its management regarding the terms and conditions of this investment. Subscriber acknowledges that except as set forth herein, no representations or warranties have been made to Subscriber, or to Subscriber's advisors or representative, by the Company or others with respect to the business or prospects of the Company or its financial condition.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Payment Contingency.</u> Subscriber understands and acknowledges that all payments on the Securities are made by the Company from its general funds, and that the Amount Due on each Payment Date is calculated by reference to amounts applied to the corresponding Reference Loan as described in the Offering Circular. Investors are creditors of the Company only and hold no lien, security, or ownership interest in any borrower or Borrower Loan. The Amount Due for any period may be zero.<br>

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|  | &nbsp;&nbsp;&nbsp;&nbsp; • <u>Bank Account Authorization.</u> Subscriber is the owner or an authorized signer of the bank account(s) designated on the Company's platform and authorizes ACH debits and credits to such account(s) as described in this Agreement, including Section 2.3.<br>&nbsp;&nbsp;&nbsp;&nbsp; • <u>Texas Residency.</u> Subscriber represents and warrants that Subscriber is a Texas resident with a Texas physical address and acknowledges that, as disclosed in the Offering Circular, the Company has voluntarily limited sales to Texas residents at this time. |
| 7. | <u>Survival of Representations and Indemnity.</u> The representations, warranties and covenants made by the Subscriber herein shall survive the Termination Date of this Agreement. The Subscriber agrees to indemnify and hold harmless the Company and its respective officers, directors and affiliates, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys' fees, including attorneys' fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing in connection with this transaction. |
| 8. | <u>Governing Law; Jurisdictions.</u> This Agreement shall be governed by and construed under the laws of the State of Texas without respect to conflict of laws. |
| 9. | <u>Notices.</u> Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) emailed, telecopied or cabled, on the date of such delivery to the address of the respective parties as follows: |

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If to the Company, to:

Live Oak Financial LLC

Attn: Investor Relations

3520 Alpine Autumn Dr.

Austin, Texas 78744

If to a Subscriber, to the subscriber's address as shown on the signature page hereto or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by telecopy or cable shall be confirmed by letter given in accordance with (a) or (b) above.

Miscellaneous.<br>&nbsp;&nbsp;&nbsp;&nbsp; • All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require.<br>&nbsp;&nbsp;&nbsp;&nbsp; • This Subscription Agreement is not transferable or assignable by Subscriber.<br>&nbsp;&nbsp;&nbsp;&nbsp; • The representations, warranties and agreements contained herein shall be deemed to be made by and be binding upon Subscriber and its heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns.<br>&nbsp;&nbsp;&nbsp;&nbsp; • None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Subscriber.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never the subject of agreement.<br>&nbsp;&nbsp;&nbsp;&nbsp; • The invalidity, illegality or unenforceability of one or more of the provisions of this Subscription Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Subscription Agreement in such jurisdiction or the validity, legality or enforceability of this Subscription Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.<br>&nbsp;&nbsp;&nbsp;&nbsp; • This Subscription Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof.<br>&nbsp;&nbsp;&nbsp;&nbsp; • The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.<br>&nbsp;&nbsp;&nbsp;&nbsp; • This Subscription Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.<br>&nbsp;&nbsp;&nbsp;&nbsp; • No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.<br>

[SIGNATURE PAGE FOLLOWS]

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LIVE OAK FINANCIAL LLC

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

The undersigned, desired to purchase Securities of Live Oak Financial LLC, by executing this signature page, hereby executes, adopts and agrees to all terms, conditions and representations of the Subscription Agreement.

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| {{subscriberSignature}} | {{dateOfSigning}} |
| Signature | Date |
| {{subscriberName}} |  |
| Name (Print) |  |
| {{subscriberAddress}} |  |
| Address |  |
| {{subscriberEmail}} |  |
| Email |  |

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APPENDIX A

An accredited investor includes the following categories of investor:

(1) Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

(3) Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

(5) Any natural person whose individual net worth, or joint net worth with that person's spouse, exceeds $1,000,000.

(i) Except as provided in paragraph (a)(5)(ii) of this section, for purposes of calculating net worth under this paragraph (a)(5):

(A) The person's primary residence shall not be included as an asset;

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(B) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

(C) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

(ii) Paragraph (a)(5)(i) of this section will not apply to any calculation of a person's net worth made in connection with a purchase of securities in accordance with a right to purchase such securities, provided that:

(A) Such right was held by the person on July 20, 2010;

(B) The person qualified as an accredited investor on the basis of net worth at the time the person acquired such right; and

(C) The person held securities of the same issuer, other than such right, on July 20, 2010.

(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

(7) Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in §230.506(b)(2)(ii); and

(8) Any entity in which all of the equity owners are accredited investors.

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## Ex1A-3

# **Investor Registration Agreement** 
This Investor Registration Agreement (this "Agreement") is made and entered into among you and Live Oak Financial LLC ("Live Oak Financial," "LOF" "Issuer", "I", "we," "us," "our"). This Agreement will govern all purchases of Borrower Payment Dependent Notes ("Notes") that you ("Investor") may, from time to time, make from LOF.

Any Note you purchase will be a special, limited obligation of LOF only and not an obligation of the borrower on the corresponding Borrower Loan (as defined below). The Note will be unsecured; you will not own the corresponding Borrower Loan and you will have no right to pursue the borrower on the corresponding Borrower Loan for payment of such loan or the Note tied to such loan.

LOF offers and sells the Notes pursuant to an offering statement under Regulation A, Tier 2. LOF will not accept any subscription unless and until the offering statement has been qualified by the U.S. Securities and Exchange Commission, and will accept subscriptions only while such qualification—and any required state registrations, including Texas issuer-dealer and applicable agent registrations—remain effective. The Notes are offered pursuant to an Offering Circular (as supplemented from time to time, the "Offering Circular"). The Offering Circular contains detailed information about LOF's operations, including risks, terms of the Notes, and the nature of the corresponding Borrower Loans.

In consideration of the covenants, agreements, representations, and warranties hereinafter set forth, and for other good and valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows:

**1. Purchase and Sale of Notes.** 

Subject to the terms and conditions of this Agreement, LOF will provide you the opportunity through its website and any associated websites, desktop, or mobile applications (collectively, the "Live Oak Financial websites"):

• To review and bid on loan listings, which are requests for loans ("Borrower Loans") that LOF has received from its borrower members, with each bid being at least $50; provided, however, that if the remaining unfunded portion of a Borrower Loan is less than $50, a bid equal to such remaining amount (which may be less than $50) is permitted to complete funding;

• To purchase Notes from LOF in the principal amount of the bids you place on loan listings, each such Note associated with, and dependent on, a specific Borrower Loan; and

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To instruct LOF to apply the proceeds from the sale of each Note you purchase to facilitate the funding of a specific Borrower Loan you have designated.

Any bid you place on a loan listing is a commitment by you to purchase a Note from LOF in the principal amount of the bid you placed on the loan listing. If the amount available for further bidding on a loan listing is less than the amount of your bid, your bid will be deemed to be in the amount still available for bidding. You must commit to purchase a Note to fund a Borrower Loan prior to the origination of that Borrower Loan. At the time you commit, you must have sufficient funds available in your linked bank account. We do not custody investor funds or maintain investor accounts, and we debit ACH only upon Acceptance.

Your subscription is an offer that may be canceled any time before Acceptance. It becomes binding only upon Acceptance (i.e., when a listing funds 100% within the applicable window and we accept your order). We do not place pre-acceptance holds or sweeps, and ACH is debited only upon Acceptance.

The Notes are not issued under an indenture. The Trust Indenture Act of 1939, as amended (the "TIA"), does not apply to the Notes because they are being offered and sold pursuant to Regulation A, Tier 2 under the Securities Act of 1933. See TIA §304(d) and 17 C.F.R. §260.4a-2. No trustee has been appointed. Rights and remedies of Note holders are as set forth in this Agreement and the Offering Circular.

Investors should be aware that the absence of an Indenture means that the rights and remedies typically provided under an Indenture, including the appointment of a trustee to act on behalf of Note holders, are not applicable to the Notes at this time.

**2. Issuance.** 

A. Mechanics<br>Each Note is issued after Acceptance and ACH settlement, when LOF disburses the corresponding Borrower Loan proceeds from LOF's general funds. All Borrower Loans are originated by LOF. Proceeds from the sale of the Notes will be applied 100% to fund Borrower Loan originations and will not be used to pay offering expenses or operating costs, which are paid from our operating cash, as described in the Offering Circular; they are not held in escrow or segregated for any particular Borrower Loan. Borrower Loans generally close at the end of their 5-day listing period unless: &nbsp;&nbsp;&nbsp;&nbsp; • the borrower member withdraws the loan request prior to funding; &nbsp;&nbsp;&nbsp;&nbsp; • bids for the entire amount of the borrower member's loan request have been received earlier, in which case the Borrower Loan will close earlier; or &nbsp;&nbsp;&nbsp;&nbsp; • the loan request is canceled by LOF for reasons relating to the operation and integrity of the LOF websites, such as attempted fraud or a failure to verify information upon request.

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| Payment flows; servicing; no pass-through<br>&nbsp;&nbsp;&nbsp;&nbsp; • Borrower remittances. Borrower payments on a Borrower Loan are received by LOF (or by a third-party processor acting for LOF) as payment for goods and services provided by LOF to the borrower. Upon such receipt by LOF or its processor, the borrower's payment obligation on that installment is deemed satisfied as to the borrower (subject to returns or reversals; if a payment is returned, the borrower remains obligated). Borrower remittances are deposited into LOF operating accounts and are not transmitted to investors.<br>&nbsp;&nbsp;&nbsp;&nbsp; • Investor payments come from LOF. On each payment date, LOF pays Noteholders from LOF's general funds an Amount Due that is calculated by reference to the performance of the related Reference Loan. Investors are creditors of LOF only. For clarity, 'payment date' means the third Business Day (T+3) after each Loan Payment Date, as defined in the Offering Circular.<br>&nbsp;&nbsp;&nbsp;&nbsp; • No agency for holders; no "make-whole." LOF is not the agent of any Noteholder for receipt or transmission of borrower payments and does not guarantee, advance, or "make whole" payments on the Notes, except as expressly provided in any limited repurchase or indemnification policy disclosed in the Offering Circular.<br>&nbsp;&nbsp;&nbsp;&nbsp; • Capacity for payments. You acknowledge that (i) amounts we receive from borrowers are payments on loans we own and service, and (ii) amounts we pay to you on the Notes are our own debt payments made from our general funds. We do not accept, hold, or transmit funds as your agent or in trust for you, and we do not operate a custodial account for investor funds.<br>&nbsp;&nbsp;&nbsp;&nbsp; • Recoupment debits. As described in the Subscription Agreement and Offering Circular, you authorize variable-amount ACH debits solely to recover over-payments; we will give written electronic notice at least ten (10) days before each debit, and no single debit will exceed the lesser of $5,000 or the applicable over-payment previously credited to you. We will originate a new debit entry for any such recoupment and will not use Nacha "Reversal" entries; your stop-payment and revocation rights apply as set forth in the Subscription Agreement. |
| Funding of a purchase; Acceptance<br>&nbsp;&nbsp;&nbsp;&nbsp; • When funds are pulled. No escrow or pre-acceptance holds. You authorize LOF to initiate an ACH debit from your linked bank account only upon Acceptance of your subscription for the applicable listing.<br>&nbsp;&nbsp;&nbsp;&nbsp; • When your offer becomes binding. Your subscription is an offer that becomes binding upon Acceptance (i.e., when a listing funds 100% within the applicable offering window). If a listing does not reach 100% funding within that window, your offer is not accepted and no debit occurs. |

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&nbsp;&nbsp;&nbsp;&nbsp; • Non-issuance. If the listing on which you bid does not fund or LOF cancels the Borrower Loan, LOF will notify you and you will have no purchase obligation for that listing.

**3. Terms of the Notes.**

Each Note shall have the terms and conditions described in the Offering Circular and the Note itself. The Offering Circular and form of Note are available for your review on LOF's website. The interest rate, maturity, and other terms of the corresponding Borrower Loan will be described in the loan listing on LOF's website and the Note executed by the borrower.

Subject to our Servicing Standard and the modification limits in the Offering Circular, we may effect Borrower Loan and related Note modifications only as permitted there (e.g., conforming/administrative updates; changes required by law), and we will provide timely investor notice and file any required offering circular supplement.

LOF will provide electronic notice to affected holders within two (2) Business Days after a material borrower-level change that affects timing or amount of payments (or, where practicable, before it takes effect), and will file an offering circular supplement within two (2) Business Days.

Transfers are subject to the restrictions described in the Offering Circular—Transfer Restrictions and Modifications.

**4. Representations and Warranties as to Notes Sold.** 

LOF makes the following representations and warranties to you, with respect to each Note sold to you under this Agreement, as of the date the Note is sold to you:

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| i. | Compliance with Laws: LOF has complied in all material respects with applicable federal, state, and local laws in connection with the offer and sale of the Note. |
| ii. | Authorization and Binding Obligation: The Note has been duly authorized and, following payment of the purchase price by you and electronic delivery by LOF to you, will constitute a valid and binding obligation of LOF enforceable against LOF in accordance with its terms, except as the enforcement of the Note may be limited by applicable bankruptcy, insolvency, or similar laws. |
| iii. | Use of Proceeds: The proceeds from the sale of the Note are issuer proceeds that LOF uses in its business, including loan originations. You are a creditor of LOF only; you do not fund borrowers directly. |
|  | Conformance with Bid: If you bid on a loan listing by browsing online through available loan listings displayed on our website, the Note sold to you will be in the principal |

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|  | amount of the bid you placed on the loan listing and dependent for payment on the Borrower Loan identified in the loan listing. |
| v. | Investment Criteria: If you have used an automated tool that we offer, such as Auto Invest, to identify the Notes you are purchasing, each of those Notes conforms to the investment criteria you provided through the applicable tool or service. |

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**5. Remedies.**

In the event of a breach by LOF of any of the representations and warranties contained in Section 4 that materially and adversely affects your interest in a Note sold to you by LOF, the following remedies apply:

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| A. | Interest Breach: For a breach that materially and adversely affects your interest in a Note ("Interest Breach"), LOF shall, at its option:<br>&nbsp;&nbsp;&nbsp;&nbsp; • Cure the Interest Breach if it is susceptible to cure;<br>&nbsp;&nbsp;&nbsp;&nbsp; • Repurchase the Note from you; or<br>&nbsp;&nbsp;&nbsp;&nbsp; • Indemnify and hold you harmless only to the extent, and in the circumstances, described in the Offering Circular's Limited Repurchase and Indemnification Policy ("LRIP") (e.g., verified identity-theft default; risk-rating error; Auto-Invest error). For the avoidance of doubt, LOF does not indemnify for ordinary credit losses or nonpayment outside the LRIP. |
| B. | Sale Breach: For a breach involving a sale of a Note that is materially different from what you would have purchased or would not have purchased but for the breach ("Sale Breach"), LOF shall, at its option:<br>&nbsp;&nbsp;&nbsp;&nbsp; • Cure the Sale Breach if it is susceptible to cure;<br>&nbsp;&nbsp;&nbsp;&nbsp; • Repurchase the Note from you; or<br>&nbsp;&nbsp;&nbsp;&nbsp; • Indemnify and hold you harmless against all losses as described above. |
|  | Identity Breach: If a Borrower Loan defaults materially as a direct result of verifiable identity theft (each an "Identity Breach"), LOF shall, at its option:<br>&nbsp;&nbsp;&nbsp;&nbsp; • Cure the Identity Breach if it is susceptible to cure;<br>&nbsp;&nbsp;&nbsp;&nbsp; • Repurchase the affected Note from you; or<br>&nbsp;&nbsp;&nbsp;&nbsp; • Indemnify and hold you harmless against all losses, damages, expenses, legal fees, costs and judgments arising from that Identity Breach.<br>Notwithstanding the foregoing, LOF shall have no obligation to indemnify or repurchase any Note for losses arising from fraud (other than verifiable identity theft) in connection with a loan listing, or due to any false or inaccurate statements or |

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|  | omissions of fact in a listing (including in credit data, borrower representations, or other indicators of intent or ability to repay). |
| D. | Election and Notice: For events covered by the Limited Repurchase and Indemnification Policy, we will notify affected holders within three (3) Business Days after determination and will credit any repurchase/indemnity amount within ten (10) Business Days thereafter, as described in the Offering Circular. |
| E. | Repurchase Price: If LOF repurchases a Note, the repurchase price will equal the remaining outstanding principal balance of the Note as of the date of repurchase. This amount will be remitted to the bank account linked to your LOF user account. Upon repurchase, you agree that the Note will be automatically assigned to LOF. |
| F. | Exclusive Remedies: The remedies provided in this section are your sole protection for breaches of Section 4. |

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**6. Your Covenants and Acknowledgements.** 

You agree to the following:

A. NONDISCRIMINATION: WHEN MAKING BIDS ON LOAN LISTINGS, YOU WILL NOT DISCRIMINATE AGAINST ANY BORROWER MEMBER OR GROUP ON ANY PROHIBITED BASIS, INCLUDING RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, MARITAL STATUS, AGE, SEXUAL ORIENTATION, MILITARY STATUS, OR THE BORROWER'S SOURCE OF INCOME.

B. NO COLLECTION ATTEMPTS: YOU AGREE THAT YOU WILL NOT, DIRECTLY OR INDIRECTLY, ATTEMPT TO COLLECT FROM BORROWERS ON YOUR NOTES OR THE CORRESPONDING BORROWER LOANS.

C. ACKNOWLEDGMENT OF RISK: YOU UNDERSTAND THAT BORROWERS MAY DEFAULT ON THEIR PAYMENT OBLIGATIONS, AND SUCH DEFAULTS WILL REDUCE OR ELIMINATE AMOUNTS YOU MAY RECEIVE ON CORRESPONDING NOTES.

**7. Your Financial Suitability Representations and Warranties.** 

You represent and warrant the following:

A. Financial Suitability: You satisfy the minimum financial suitability standards applicable to your state of residence, if any, and agree to abide by any maximum investment limits described in the Offering Circular.

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|  | Documentation: You will provide any additional documentation reasonably requested by us, or required by the Securities and Exchange Commission or state securities administrators, to confirm compliance with applicable standards. |
| C. | Risk Tolerance: You understand and accept the risks associated with investing in Notes, including the potential loss of your entire investment. |
| D. | Investment Knowledge: You have received and reviewed the Offering Circular, understand the risks described therein, and acknowledge that there may be no secondary market for the Notes. |

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You warrant and represent that:

A. You have the legal authority to enter into and perform your obligations under this Agreement.

B. This Agreement has been duly authorized, executed, and delivered by you.

C. You have reviewed the Offering Circular, including information about LOF and its operations.

D. Your participation complies with applicable federal, state, and local laws.

E. If you are entering this Agreement as an entity, the individual executing this Agreement on behalf of the entity is duly authorized to bind the entity, and the entity is in compliance with its own organizational documents and any applicable agreements or laws.

**9. No Advisory Relationship.**

You acknowledge and agree to the following:

A. The purchase and sale of Notes is an arms-length transaction between you and LOF.

B. LOF is not acting as your agent or fiduciary in connection with the purchase and sale of Notes.

C. LOF assumes no advisory or fiduciary responsibility toward you and has not provided any legal, accounting, regulatory, or tax advice regarding the Notes.

D. You have consulted with your own advisors to the extent you deem appropriate regarding the Notes and their associated risks.

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**10. Restrictions on Use.** 

LOF reserves the right to restrict your access to its platform or websites, with or without cause and with or without notice.

A. Personal Use: You are not authorized to use LOF to bid on loan listings or purchase Notes for anyone other than yourself.

B. Ownership of Account: You must be the owner of the deposit account you designate for fund transfers, with authority to direct transfers to or from that account.

C. Borrower Loans: If you obtain Borrower Loans through the platform, amounts in the bank account linked to your LOF user account may be set off against any delinquent amounts owed on your Borrower Loans, or against any shortfall resulting from failed transfers or deposits.

**11. Live Oak Financial's Representations and Warranties.** 

LOF represents and warrants the following:

A. Organization and Authority: LOF is duly organized and validly existing as a limited liability company in good standing under the laws of Texas, with the power to enter into and perform its obligations under this Agreement.

B. Authorization: This Agreement has been duly authorized, executed, and delivered by LOF.

C. Compliance: LOF has complied in all material respects with applicable laws in connection with the issuance and sale of Notes.

**12. No Guarantee of Returns or Payments.** 

LOF makes no guarantees regarding the returns, principal, or interest you may receive on any Note.

A. **PERFORMANCE RISK:** YOUR RETURNS ARE CALCULATED BY REFERENCE TO PERFORMANCE OF THE RELATED REFERENCE LOAN, WHICH MAY REDUCE THE AMOUNT DUE (INCLUDING TO ZERO). PAYMENTS TO YOU ARE MADE BY LOF FROM ITS GENERAL FUNDS, AND YOU ALSO BEAR LOF ISSUER CREDIT RISK. NO MAKE-WHOLE OR YIELD-MAINTENANCE APPLIES.

B. **NO GUARANTEES:** LOF DOES NOT GUARANTEE BORROWER LOANS OR NOTES AND DOES NOT ACT AS A GUARANTOR OF ANY BORROWER PAYMENTS.

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**13. Prohibited Activities.**

You agree not to engage in the following activities related to loan listings, bids, Notes, Borrower Loans, or other transactions with LOF:

A. Misrepresenting yourself as a director, officer, or employee of LOF.

B. Charging or attempting to charge any borrower fees for your agreement to bid on or recommend their loan listing.

C. Engaging in activities that require a license (e.g., loan brokering, credit counseling) without proper authorization.

D. Violating any applicable laws, including but not limited to fair lending laws, consumer privacy laws, or state usury statutes.

E. Transfers may occur only in compliance with applicable federal securities laws, including registration or an available exemption. We do not operate a secondary trading venue and make no assurance that any secondary market will develop. (State registration/qualification may be preempted in certain circumstances; state anti-fraud and notice provisions continue to apply.) See Offering Circular—Transfer Restrictions and Modifications.

**14. Tax Treatment.** 

The Notes are intended to be treated as indebtedness of LOF for U.S. federal income tax purposes.

A. Consistency in Reporting: You agree not to take any position inconsistent with this treatment for tax purposes unless required by law.

B. Original Issue Discount: The Notes are subject to the original issue discount rules of the Internal Revenue Code. You acknowledge that you are prepared to bear the risk of losing your entire investment in Notes.

**15. Termination of Agreement.** 

LOF reserves the right, at its sole discretion, to suspend or terminate your participation on its platform, and to terminate this Agreement, for cause, by providing notice to you (or immediately, with or without notice), where "cause" shall include, without limitation:

A. Any breach by you of this Agreement or any policy, rule or guideline provided by LOF, including but not limited to the Prohibited Activities set forth in Section 14;

B. Any violation of applicable federal or state law, regulation or licensing requirement (including the Securities Act of 1933 and the Trust Indenture Act of 1939);

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|  | Any misrepresentation, fraud or material omission by you in connection with your use of the platform, your bids or your Notes; |
| D. | Any attempted or actual resale, transfer, pledge or encumbrance of any Note in violation of Section 13E (Transfers); or |
| E. | Any conduct that, in LOF's reasonable judgment, is harmful to LOF, its reputation, its platform, other users, or the integrity of the offering. |

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Upon termination for cause under this Section 15, you will immediately cease all use of the platform. Any Notes you purchase prior to termination shall remain in full force and effect according to their terms.

**16. Indemnification by You.** 

You agree to indemnify, defend, and hold harmless LOF, its affiliates, and their respective officers, directors, employees, and agents (collectively, the "Live Oak Financial Parties") against all claims, losses, and liabilities arising from:

A. Your material breach of this Agreement;

B. Your actions or omissions in connection with LOF; or

C. Third-party claims related to your use of the LOF platform.

LOF reserves the right to modify any term or provision of this Agreement. Material changes will be communicated to you via email or posted on the platform.

**18. Notices.** 

A. To You: LOF will communicate with you via email or through postings on its website. Ensure your contact information is up to date.

B. To LOF: Send notices via email to contact@live-oak-financial.com or by mail to Live Oak Financial LLC, Compliance Department, 3520 Alpine Autumn Dr., Austin, Texas 78744.

**19. No Warranties.** 

EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, NO PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES TO THE OTHER PARTIES, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

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**20. Limitation on Liability.** 

A. IN NO EVENT SHALL ANY PARTY BE LIABLE TO ANOTHER PARTY FOR ANY LOST PROFITS OR SPECIAL, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE DAMAGES, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHERMORE, NO PARTY MAKES ANY REPRESENTATION OR WARRANTY TO THE OTHER PARTIES REGARDING THE EFFECT THAT THE AGREEMENT MAY HAVE UPON THE FOREIGN, FEDERAL, STATE OR LOCAL TAX LIABILITY OF THE OTHER.

B. AS A SMALL BUSINESS ISSUER UNDER THE TEXAS SECURITIES ACT, LOF IS SUBJECT TO CERTAIN STATUTORY LIMITATIONS OF LIABILITY PURSUANT TO TEXAS SECURITIES ACT §4008.061. THESE LIMITATIONS MAY FURTHER REDUCE YOUR REMEDIES OR DAMAGES IN CONNECTION WITH THIS AGREEMENT OR YOUR PURCHASE OF BORROWER PAYMENT DEPENDENT NOTES. BY EXECUTING THIS AGREEMENT, YOU ACKNOWLEDGE AND AGREE TO THESE LIMITATIONS OF LIABILITY.

**21. Acknowledgment of Texas Liability Disclosure.**

Investor hereby acknowledges that LOF has provided the separate written disclosure of the limitation of liability required by Texas Securities Act §4008.061, and that Investor's signature below constitutes written acknowledgment of receipt of that disclosure.

**22. Entire Agreement.** 

Except as otherwise expressly provided herein, this Agreement represents the entire agreement between you and LOF regarding the subject matter hereof and supersedes any prior investor or lender registration agreement between you and Live Oak as well as all prior or contemporaneous communications, promises and proposals, whether oral, written or electronic, between us.

**23. Miscellaneous.** 

A. This Agreement is governed by Texas law.

B. Failure to enforce any term does not constitute a waiver of that term.

C. Invalid provisions will be replaced by enforceable provisions that closely match the original intent.

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**24. Arbitration.**

To resolve any ambiguity, this Section 22 does not in any way affect any party's ability to bring an action against LOF, or their respective officers and directors, under the federal securities laws.

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| A. | In this Resolution of Disputes provision:<br>&nbsp;&nbsp;&nbsp;&nbsp; • I, "me" and "my" mean the person entering into this Agreement, as well as any second person claiming through such first person;<br>&nbsp;&nbsp;&nbsp;&nbsp; • You and "your" mean Live Oak Financial LLC and its parent, subsidiaries, affiliates, predecessors, successors, and assigns, as well as their officers, directors, and employees;<br>&nbsp;&nbsp;&nbsp;&nbsp; • Claim means any dispute, claim, or controversy (whether based on contract, tort, intentional tort, constitution, statute, ordinance, common law, or equity, whether pre-existing, present, or future, and whether seeking monetary, injunctive, declaratory, or any other relief) arising from or relating to this Agreement or the relationship between you and me (including claims arising prior to or after the date of the Agreement, and claims that are currently the subject of purported class action litigation in which you are not a member of a certified class), and includes claims that are brought as counterclaims, cross claims, third party claims or otherwise, as well as disputes about the validity or enforceability of this Agreement or the validity or enforceability of this Section 23. |
| B. | Any Claim may be resolved, upon the election of both you and me, by binding arbitration administered by the American Arbitration Association or JAMS, under the applicable arbitration rules of the administrator in effect at the time a Claim is filed ("Rules"). Any arbitration under this Agreement will only take place with respect to a single person; class arbitrations and class actions are not permitted. If I file a claim, I may choose the administrator; if you file a claim, you may choose the administrator, but you agree to change to another permitted administrator at my request (assuming that the other administrator is available). I can obtain the Rules and other information about initiating arbitration by contacting the American Arbitration Association at 1633 Broadway, 10th Floor, New York, NY 10019, (800) 778-7879, www.adr.org; or by contacting JAMS at 1920 Main Street, Suite 300, Irvine, CA 92614, (949) 224-1810, www.jamsadr.com. Your address for serving any arbitration demand or claim is Live Oak Financial LLC, 3520 Alpine Autumn Dr, Austin, TX 78744, Attention: Compliance. |
| C. | Claims submitted for arbitration will be arbitrated by a single, neutral arbitrator, who shall be a retired judge or a lawyer with at least ten years' experience. |
|  | You will pay all filing and administration fees charged by the administrator and arbitrator fees up to $1,000, and you will consider my request to pay any additional |

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|  | arbitration costs. If an arbitrator issues an award in your favor, I will not be required to reimburse you for any fees you have previously paid to the administrator or for which you are responsible. If I receive an award from the arbitrator, you will reimburse me for any fees paid by me to the administrator or arbitrator. Each party shall bear its own attorney's, expert's and witness fees, which shall not be considered costs of arbitration; however, if a statute gives me the right to recover these fees, or fees paid to the administrator or arbitrator, then these statutory rights will apply in arbitration. |
| E. | Any in-person arbitration hearing will be held in the city with the federal district court closest to my residence, or in such other location as you and I may mutually agree. The arbitrator shall apply applicable substantive law consistent with the Federal Arbitration Act, 9 U.S.C. § 1-16, and, if requested by either party, provide written reasoned findings of fact and conclusions of law. The arbitrator shall have the power to award any relief authorized under applicable law. Any appropriate court may enter judgment upon the arbitrator's award. The arbitrator's decision will be final and binding except that: (i) any party may exercise any appeal right under the FAA; and (ii) any party may appeal any award relating to a claim for more than $100,000 to a three-arbitrator panel appointed by the administrator, which will reconsider de novo any aspect of the appealed award. The panel's decision will be final and binding, except for any appeal right under the FAA. Unless applicable law provides otherwise, the appealing party will pay the appeal's cost, regardless of its outcome. However, you will consider any reasonable written request by me for you to bear the cost. |
| F. | YOU AND I AGREE THAT EACH MAY BRING ARBITRATION CLAIMS AGAINST THE OTHER ONLY IN OUR CAPACITY AS A SINGLE PERSON, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. Further, unless both you and I agree otherwise in writing, the arbitrator may not consolidate more than one person's claims. The arbitrator shall have no power to arbitrate any Claims on a class action basis or Claims brought in a purported representative capacity on behalf of the general public, other investors, or other persons similarly situated. The validity and effect of this paragraph f shall be determined exclusively by a court, and not by the administrator or any arbitrator. |
| G. | If any portion of this Section 24 is deemed invalid or unenforceable for any reason, it shall not invalidate the remaining portions of this section. However, if paragraph f of this Section 24 is deemed invalid or unenforceable in whole or in part, then this entire Section 24 shall be deemed invalid and unenforceable. The terms of this Section 24 will prevail if there is any conflict between the Rules and this section. |
|  | You and I acknowledge and agree that the arbitration agreement set forth in this Section 24 is made pursuant to a transaction involving interstate commerce, and thus |

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the Federal Arbitration Act shall govern the interpretation and enforcement of this Section 24. This Section 24 shall survive the termination of this Agreement.

**25. Permission to Contact.**

When you give us your home, mobile, work and/or other phone number, we have your permission to contact you at that number or numbers, and any other number we believe we may reach you through (unless prohibited by applicable law), about your LOF accounts. Your consent allows us to use text messaging, artificial or prerecorded voice messages and automatic dialing technology, for all purposes not prohibited by applicable law. Message and data rates may apply. You may contact us anytime to change these preferences. We may also send an email to any address where we reasonably believe we can contact you. Some of the purposes for calls and messages include: obtaining information; transactions on or servicing of your account; and collecting on your account. Our rights under this Section extend to our affiliates, subsidiaries, parents, agents and vendors. Notify us immediately of any changes to your contact information by changing your contact information on your LOF account information – settings page.

**26. Electronic Delivery and Consent**

By placing any bid or order, Investor agrees to receive, execute, and retain the Subscription Agreement electronically under the E-Sign Act. Investor's electronic signature, checkbox selections, and date/time stamp constitute a binding subscription.

**27. Acknowledgment of No Trust Indenture**

Investor acknowledges and agrees that the Notes are not issued pursuant to any trust indenture (including under the Trust Indenture Act of 1939), and that no trustee has been appointed to act on behalf of investors with respect to the Notes. As a result:

A. Investor will hold the Notes as an unsecured creditor of LOF, with no trustee to enforce or coordinate the rights of Noteholders in the event of default or acceleration;

B. Investor will not benefit from the procedural protections or remedies (e.g., trustee-led enforcement, pooling of claims, asset segregation) that a trust indenture typically provides; and

C. Investor therefore assumes the additional risks of potential delays, increased costs, and difficulty in enforcing the terms of the Notes or in pursuing collective remedies.

D. Investor has considered and accepts these risks in making its investment.

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**28. Subscription Agreement Execution; Auto Invest Agreement**

In order to purchase Borrower-Payment-Dependent Notes ("Notes") under the Offering Circular dated 07/15/2025, Investor must execute a separate Subscription Agreement. The Subscription Agreement sets forth the principal amount of Notes to be purchased (minimum $50; in $0.01 increments; we may issue a single residual Note under $50 solely to round funding), the purchase price ($1 per $1 principal), the required investor representations under Rule 251(d)(2), and an acknowledgment that each subscription is irrevocable upon acceptance by the Issuer. Auto-Invest orders remain cancelable until Acceptance. We do not custody investor funds or maintain investor accounts; subscription amounts are paid directly to LOF (as issuer) after Acceptance and ACH settlement.

By placing any bid or order for Notes through the Issuer's platform, Investor agrees that (a) it will be presented with the Subscription Agreement for execution at or before the time its bid is accepted, and (b) it will enter into (i.e. check the applicable representation boxes and sign/date) that Subscription Agreement as a condition to Issuer's acceptance of the bid.

If Investor has enabled the "Auto Invest" feature on their LOF user account, Investor authorizes the Issuer to automatically execute and deliver the Subscription Agreement on Investor's behalf for each Note purchased through Auto Invest, provided such Notes meet the investment criteria and do not cause Investor to exceed its self-set maximum investment amount; Investor further acknowledges that each such automated execution constitutes an irrevocable subscription upon acceptance.

Investor authorizes the Issuer to execute subsequent purchases (including auto-invest) under these same terms, each constituting an irrevocable subscription upon acceptance.

**29. Texas Liability Disclosure Acknowledgment**

A. Small Business Issuer Definition. Investor acknowledges that LOF is a "small business issuer" under Texas Securities Act § 4008.061, meaning at the time of this offering LOF: &nbsp;&nbsp;&nbsp;&nbsp; • Has annual gross revenues not exceeding $25 million; and &nbsp;&nbsp;&nbsp;&nbsp; • Does not have a class of equity securities registered (or required to be registered) with the SEC under Section 12 of the Securities Exchange Act of 1934.

B. Applicability. Investor further acknowledges that this limitation applies because: &nbsp;&nbsp;&nbsp;&nbsp; • The aggregate amount of securities offered does not exceed $5 million; and &nbsp;&nbsp;&nbsp;&nbsp; • LOF, as the issuer, is engaged in this offering.

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| | |
|:---|:---|
|  | Limitation of Liability. Investor understands and agrees that, in any action or series of actions under the Texas Securities Act relating to this offering, the maximum recovery against LOF (or any person providing services in connection with the offering) is limited to three times the fee paid by LOF to that person for services related to the offering, unless a trier of fact finds that person engaged in intentional wrongdoing in providing those services. |
| D. | Disclosure & Acknowledgment. Investor acknowledges receipt of the written disclosure of this limitation of liability in this Agreement, and by signing below confirms that LOF has satisfied its obligation under Texas Securities Act § 4008.061 to (i) provide this disclosure in writing and (ii) obtain Investor's signed acknowledgment of receipt. |

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# **Acknowledgment** 
The Investor, undersigned, has considered and accepts these risks in making its investment. Nothing in the foregoing acknowledgment shall modify, limit, or supersede any of the provisions of this Agreement, all of which remain in full force and effect.

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|:---|:---|
| Signature | Date |
| {{signature}} | {{date}} |
| Printed Name |  |
| {{name}} |  |

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Last Updated: September 10, 2025

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## Ex1A-2B

**Limited Liability Company Agreement of Live Oak Financial**

A Single Member Limited Liability Company

This Operating Agreement ("Agreement") of Live Oak Financial, ("Company"), is executed and agreed to, for good and valuable consideration, by the undersigned members (individually, "Member" or collectively, "Members").

**Formation.**

(a) State of Formation. This Agreement is for Live Oak Financial, a member-managed Texas limited liability company formed under and pursuant to Texas law.

(b) Operating Agreement Controls. To the extent that the rights or obligations of the Members, or the Company under provisions of this Agreement differ from what they would be under Texas law absent such a provision, this Agreement, to the extent permitted under Texas law, shall control.

(c) Principal Office. The Company's principal office will be as set out in the Company's Articles of Organization or other filing on record with the Secretary of State, or such other location as shall be selected from time to time by the Members.

(d) Registered Agent and Office. The name of the Company's registered agent for service of process and the address of the Company's registered office will be as specified in the Company's Articles of Organization or any subsequent filings with the Secretary of State. If this information changes, the Company will promptly file a statement of change with the Secretary of State according to applicable law.

(e) No State Law Partnership. No provisions of this Agreement shall be deemed or construed to constitute a partnership (including, without limitation, a limited partnership) or joint venture, or any Member a partner or joint venturer of or with any other Member, for any purposes other than federal and state tax purposes.

**Purposes and Powers.**

(a) Purpose. The Company is created for the following business purpose:

Live Oak Financial LLC will operate as a peer to peer lending service through originating consumer loans to borrowers through the issuance of borrower payment dependent notes to lenders.

(b) Powers. The Company shall have all of the powers of a limited liability company set forth under Texas law.

(c) Duration. The Company's term shall commence upon the filing of an articles of organization and all other such necessary materials with Texas. The Company will operate until terminated as outlined in this Agreement unless:

(i) The Member votes to dissolve the Company;

(ii) No Member of the Company exists unless the business of the Company is continued in a manner permitted by Texas law;

(iii) It becomes unlawful for any Member or the Company to continue in business;

(iv) A judicial decree is entered that dissolves the Company; or

(v) Any other event results in the dissolution of the Company under federal or Texas law.

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**Member.**

(a) Member. The sole member of Live Oak Financial at the time of adoption of this Agreement is Erik Randall ("Member").

(b) Initial Contribution. The Member shall make an initial contribution to the Company. The initial contributions shall be as described in Attachment A, "Initial Contributions of the Member."

No Member shall be entitled to interest on their initial contribution. Except as expressly provided by this Agreement, or as required by law, no Member shall have any right to demand or receive the return of their initial contribution.

(c) Limited Liability of the Member. Except as otherwise provided for in this Agreement or otherwise required by Texas law, no Member shall be personally liable for any acts, debts, liabilities, or obligations of the Company beyond their respective initial contribution. The Member shall look solely to the Company property for the return of their initial contribution, or value thereof, and if the Company property remaining after payment or discharge of the debts, liabilities, or obligations of the Company is insufficient to return such initial contributions or value thereof, no Member shall have any recourse against any other Member, if any other Member exists, except as is expressly provided for by this Agreement.

(d) Creation or Substitution of New Members. Any Member may assign in whole or in part its membership interest only with the prior written consent of all Members.

(i) Entire Transfer. If a Member transfers all of its membership interest, the transferee shall be admitted to the Company as a substitute Member upon its execution of an instrument signifying its Agreement to be bound by the terms and conditions of this Agreement. Such admission shall be deemed effective immediately upon the transfer, and, simultaneously, the transferor Member shall cease to be a Member of the Company and shall have no further rights or obligations under this Agreement.

(ii) Partial Transfer. If a Member transfers only a portion of its membership interest, the transferee shall be admitted to the Company as an additional Member upon its execution of an instrument signifying its Agreement to be bound by the terms and conditions of this Agreement.

(iii) Whether a substitute Member or an additional Member, absent the written consent of all existing Members of the Company, the transferee shall be a limited Member and possess only the percentage of the monetary rights of the transferor Member that was transferred without any voting power as a Member in the Company.

**Member Voting.**

(a) Voting Power. In the event that the Company has multiple Members simultaneously, the Company's Members shall each have voting power equal to its share of membership interest in the Company.

**Accounting and Distributions.**

(a) Fiscal Year. The Company's fiscal year shall end on the last day of December.

(c) Distributions. Distributions shall be issued, as directed by the Company's Treasurer or Assistant Treasurer, on a monthly basis, based upon the Company's fiscal year. The distribution shall not exceed the remaining net cash of the Company after making appropriate provisions for the Company's ongoing and anticipatable liabilities and expenses. Each Member shall receive a percentage of the overall distribution that matches that Member's percentage of membership interest in the Company.

**Tax Treatment Election.**

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(c) Tax Designation. The Company has not filed with the Internal Revenue Service for treatment as a corporation. Instead, the Company will be taxed as a pass-through organization. The Member may elect for the Company to be treated as a C-Corporation or an S-Corporation at any time.

**Officers.**

(a) Appointment and Titles of Officers. The officers of the Company shall be appointed by the Member and shall consist of at least a Chairman, a Secretary, and a Treasurer. The Member may also choose one or more President, Vice-President, Assistant Secretaries, and Assistant Treasurers. Any number of offices may be held by the same person, as permitted by Texas law. The Member may appoint such other officers and agents as the Member shall deem necessary or advisable who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Member. The officers and agents of the Company shall hold office until their successors are chosen and qualified. Any officer appointed by the Member may be removed at any time, with or without cause, by the Member, or if there are multiple Members, an affirmative vote of a majority of the Members. Any vacancy occurring in any office of the Company shall be filled by the Member. Unless the Member decides otherwise, if the title of an officer is one commonly used for officers of a limited liability company formed under Texas law, the assignment of such title shall constitute the delegation to such person of the authorities and duties that are normally associated with that office.

(i) Chairman. The Chairman shall be the chief executive officer of the Company, shall be responsible for the general and active management of the business of the Company, and shall see that all orders and resolutions of the Members are carried into effect. The Chairman shall execute all contracts on behalf of the Company, except:

1. Where required or permitted by law or this Agreement to be otherwise signed and executed;

2. Where signing and execution thereof shall be expressly delegated by the Member to some other officer or agent of the Company.

(ii) President. In the absence of the Chairman or in the event of the Chairman's inability to act, the President shall perform the duties of the Chairman, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chairman. The President shall perform such other duties and have such other powers as the Member may from time to time prescribe.

(iii) Vice-Presidents. In the absence of the Chairman and President or in the event of their inability to act, any Vice-Presidents in the order designated by the Member (or, in the absence of any designation, in the order of their appointment by the Member) shall perform the duties of the Chairman, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chairman. Vice-Presidents, if any, shall perform such other duties and have such other powers as the Member may from time to time prescribe.

(iv) Secretary and Assistant Secretary. The Secretary shall be responsible for filing legal documents and maintaining records for the Company. The Secretary shall attend and record all the proceedings of the meetings of the Company and of the Member in a book to be kept for that purpose. The Secretary shall perform such other duties as may be prescribed by the Member or the Chairman, under whose supervision the Secretary shall serve. The Secretary shall cause to be prepared such reports and/or information as the Company is required to prepare by applicable law, other than financial reports. The Assistant Secretary, or if there be more than one, the Assistant Secretaries in the order determined by the Member (or if there be no such determination, then in order of their appointment by the Member), shall, in the absence of the Secretary or in the event of the Secretary's inability to act, perform the

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duties and exercise the powers of the Secretary and shall perform such other duties and have such other powers as the Member may from time to time prescribe.

(v) Treasurer and Assistant Treasurer. The Treasurer shall have the custody of the Company funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Company according to generally accepted accounting practices, using a fiscal year ending on the last day of the month of December. The Treasurer shall deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Member. The Treasurer shall distribute the Company's profits to the Member. The Treasurer shall disburse the funds of the Company as may be ordered by the Member and shall render to the Chairman and to the Member, at regular intervals or when the Member so requires, an account of all of the Treasurer's transactions and of the financial condition of the Company. As soon as practicable after the end of each fiscal year of the Company, the Treasurer shall prepare a statement of financial condition as of the last day of the Company's fiscal year, and a statement of income and expenses for the fiscal year then ended, together with supporting schedules. Each of said annual statements shall be prepared on an income tax basis and delivered to the Member forthwith upon its preparation. In addition, the Treasurer shall keep all financial records required to be kept pursuant to Texas law. The Assistant Treasurer, or if there shall be more than one, the Assistant Treasurers in the order determined by the Member (or if there be no such determination, then in the order of their appointment), shall, in the absence of the Treasurer or in the event of the Treasurer's inability to act, perform the duties and exercise the powers of the Treasurer and shall perform such other duties and have such other powers as the Member may from time to time prescribe.

(b) Officers as Agents. The officers, to the extent of their powers set forth in this Agreement or otherwise vested in them by action of the Member not inconsistent with this Agreement, are agents of the Company for the purpose of the Company's business, and the actions of the officers taken in accordance with such powers shall bind the Company.

(c) Fiduciary Duties of the Officers.

(i) Loyalty and Care. Except to the extent otherwise provided herein, each officer shall have a fiduciary duty of loyalty and care similar to that of officers of limited liability companies organized under the laws of Texas.

(ii) Competition with the Company. The officers shall refrain from dealing with the Company in the conduct of the Company's business as or on behalf of a party having an interest adverse to the Company. Officers shall also refrain from competing with the Company in the conduct of the Company's business.

(iii) Duties Only to the Company. Officers' fiduciary duties of loyalty and care are to the Company and not to any future Members or officers. Officers shall owe fiduciary duties of disclosure, good faith, and fair dealing to the Company, but shall owe no such duties to future Members. An officer who so performs their duties shall not have any liability by reason of being or having been an officer.

(iv) Reliance on Reports. In discharging their duties, officers are entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• One or more Members, officers, or employees of the Company whom the officer reasonably believes to be reliable and competent in the matters presented. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legal counsel, public accountants, or other persons as to matters the officer reasonably believes are within the person's professional or expert competence. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A committee of Members of which the affected officer is not a participant, if the officer reasonably believes the committee merits confidence.

**Dissolution.**

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(a) Limits on Dissolution. The Company shall have a perpetual existence and shall be dissolved, and its affairs shall be wound up only upon the provisions established in this Agreement. Notwithstanding any other provision of this Agreement, the bankruptcy of any Member shall not cause such Member to cease to be a Member of the Company. Upon the occurrence of such an event, the business of the Company shall continue without dissolution.

Each Member waives any right that it may have to agree in writing to dissolve the Company upon the bankruptcy of any Member or the occurrence of any event that causes any Member to cease to be a Member of the Company.

(b) Winding Up. Upon the occurrence of any event specified in the earlier "Duration" section above, the Company shall continue solely for the purpose of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors. The Member, or in the event of multiple Members, one or more Members selected by the remaining Members, shall be responsible for overseeing the winding up and liquidation of the Company. The responsible Members shall take full account of the liabilities of the Company and its assets, shall either cause its assets to be distributed as provided under this Agreement or sold, and if sold, as promptly as is consistent with obtaining the fair market value thereof, shall cause the proceeds therefrom, to the extent sufficient, to be applied and distributed as provided under this Agreement.

(c) Distributions in Kind. Any non-cash asset distributed to one or more Members in liquidation of the Company shall first be valued at its fair market value (net of any liability secured by such asset that such Member assumes or takes subject to) to determine the profits or losses that would have resulted if such asset were sold for such value. Such profit or loss shall then be allocated as provided under this Agreement. The fair market value of such asset shall be determined by the Members or, if any Member objects, by an independent appraiser (any such appraiser must be recognized as an expert in valuing the type of asset involved) approved by the Members.

(d) Termination. The Company shall terminate when:

(i) All of the assets of the Company, after payment of or due provision for all debts, liabilities, and obligations of the Company, shall have been distributed to the Member in the manner provided for under this Agreement; and

(ii) The Company's registration with Texas shall have been canceled in the manner required by Texas law.

(e) Accounting. Within a reasonable time after complete liquidation, the Company Treasurer shall furnish the Members with a statement which shall set forth the assets and liabilities of the Company as at the date of dissolution and the proceeds and expenses of the disposition thereof.

(f) Limitations on Payments Made in Dissolution. Except as otherwise specifically provided in this Agreement, each Member shall only be entitled to look solely to the assets of the Company for the return of its initial contribution and shall have no recourse for its initial contribution and/or share of profits (upon dissolution or otherwise) against any other Member, if any other such Member exists.

(g) Notice to Texas Authorities. Upon the winding up of the Company, the Member with the highest percentage of membership interest in the Company shall be responsible for the filing of all appropriate notices of dissolution with Texas and any other appropriate state or federal authorities or agencies as may be required by law.

**Exculpation and Indemnification.**

(a) No Member, officer, employee, or agent of the Company and no employee, agent, or affiliate of a Member (collectively, "Covered Person") shall be liable to the Company or any other person who has an interest in or claim against the Company for any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company

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and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage, or claim incurred by reason of such Covered Person's gross negligence or willful misconduct.

(b) To the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any loss, damage, or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on such Covered Person by this Agreement. Expenses, including legal fees, incurred by a Covered Person defending any claim, demand, action, suit or proceeding shall be paid by the Company. The Covered Person shall be liable to repay such amount if it is determined that the Covered Person is not entitled to be indemnified as authorized in this Agreement.

No Covered Person shall be entitled to be indemnified in respect of any loss, damage, or claim incurred by such Covered Person by reason of such Covered Person's gross negligence or willful misconduct with respect to such acts or omissions unless such Covered Person is a Member of the Company, who shall have full indemnity against gross negligence or willful misconduct. Any indemnity under this Agreement shall be provided out of and to the extent of Company assets only.

(c) A Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company by any person as to matters the Covered Person reasonably believes are within such other person's professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports, or statements as to the value and amount of the assets, liabilities, or any other facts pertinent to the existence and amount of assets from which distributions to the Member might properly be paid.

(d) To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the Company or to any other Covered Person, a Covered Person acting under this Agreement shall not be liable to the Company or to any other Covered Person for its good faith reliance on the provisions of this Agreement. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the Member to replace such other duties and liabilities of such Covered Person.

(e) The foregoing provisions of this article shall survive any termination of this Agreement.

**Insurance.**

The Company shall have the power to purchase and maintain insurance, including insurance on behalf of any Covered Person against any liability asserted against such person and incurred by such Covered Person in any such capacity, or arising out of such Covered Person's status as an agent of the Company, whether or not the Company would have the power to indemnify such person against such liability under the applicable law provision.

**General Provisions.**

(a) Notices. All notices, offers, or other communications required or permitted to be given pursuant to this Agreement shall be in writing and may be personally served or sent by United States mail and shall be deemed to have been given when delivered in person or three business days after deposit in United States mail, registered or certified, postage prepaid, and properly addressed, by or to the appropriate party.

(b) Number of Days. In computing the number of days (other than business days) for purposes of this Agreement, all days shall be counted, including Saturdays, Sundays, and holidays; provided, however, that if the final day of any time period falls on a Saturday, Sunday, or holiday on which national banks

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are or may elect to be closed, then the final day shall be deemed to be the next day which is not a Saturday, Sunday, or such holiday.

(c) Execution of Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which shall together constitute one and the same instrument.

(d) Severability. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

(e) Headings. The article and section headings in this Agreement are for convenience, and they form no part of this Agreement and shall not affect its interpretation.

(f) Controlling Law. This Agreement shall be governed by and construed in all respects in accordance with the laws of Texas (without regard to conflicts of law principles thereof).

(g) Application of State Law. Any matter not specifically covered by a provision of this Agreement shall be governed by the applicable provisions of Texas law.

(h) Amendment. This Agreement may be amended only by written consent of the Member. Upon obtaining the approval of any such amendment, supplement, or restatement as to the Certificate, the Company shall cause a Certificate of Amendment or Amended and Restated Certificate to be prepared, executed, and filed in accordance with Texas law.

(i) Entire Agreement. This Agreement contains the entire understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements, or conditions, express or implied, oral or written, except as herein contained.

IN WITNESS WHEREOF, the Member has executed and agreed to this Limited Liability Company Operating Agreement, which shall be effective as of June 13, 2024.

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| | | | |
|:---|:---|:---|:---|
| By: | /s/ Erik Randall | Date: | 06-13-2024 |
|  | Erik Randall, Sole Member and Chairman |  |  |

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**Attachment A**

Initial Contributions of the Member

The initial contributions of the Member of Live Oak Financial are as follows:

• Erik Randall

• Contribution:

• Cash: $500.00

• Server Equipment valued at $35.00

• Web Domain valued at $8.00

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**FIRST AMENDMENT TO THE OPERATING AGREEMENT**

Of Live Oak Financial LLC, a Texas Limited Liability Company

This First Amendment (this "Amendment") to the Operating Agreement of Live Oak Financial LLC, LLC (the "Company") is made and entered into as of March 01, 2025, by the undersigned, being the sole Member of the Company.

**Recitals**

A. The Company and Member entered into that certain Operating Agreement dated June 13, 2024 (the "Operating Agreement").

B. The Member now wishes to amend the Operating Agreement as set forth below.

**Amendment**

Notwithstanding anything to the contrary herein, the Member is hereby authorized, without further approval of any Person, to make additional capital contributions to, and to receive distributions from, the Company at such times, in such amounts and on such terms as the Member, in his or her sole discretion, may determine, and the Company shall credit or debit the Member's capital account accordingly.

**Effectiveness**

This Amendment shall become effective as of June 13, 2024 by the Member and shall be deemed part of the Operating Agreement.

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

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|:---|:---|:---|:---|
| By: | /s/Erik Randall | Date: | 03-01-2025 |
|  | Erik Randall, Managing Member |  |  |

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**SECOND AMENDMENT TO THE OPERATING AGREEMENT**

Of Live Oak Financial LLC, a Texas Limited Liability Company

This Second Amendment (this "Amendment") to the Operating Agreement of Live Oak Financial LLC, LLC (the "Company") is made and entered into as of May 11, 2025, by the undersigned, being the sole Member of the Company.

**Recitals**

A. The Company and Member entered into that certain Operating Agreement dated June 13, 2024 (the "Operating Agreement").

B. The Member now wishes to amend the Operating Agreement as set forth below.

**Amendment**

Effective as of May 11, 2025, the Operating Agreement of Live Oak Financial LLC is hereby amended by inserting the following as a new Section:

**Limitation on Additional Indebtedness**

(a) Subordination. Any additional indebtedness incurred by the Company ("New Debt") shall be junior and subordinate in right of payment to all Borrower-Payment-Dependent Notes issued by the Company.

(b) Fixed-Charge Coverage Test. The Company may incur, assume, guarantee or otherwise become liable for New Debt for primary business purposes only if, after giving effect to such New Debt on a pro forma basis, the Company's Fixed-Charge Coverage Ratio ("FCCR") for the most recent trailing twelve-month period would be at least 1.0.

(c) Calculation of FCCR. &nbsp;&nbsp;&nbsp;&nbsp; • "Fixed-Charge Coverage Ratio" or "FCCR" means, for any period, the ratio of:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Numerator: EBITDA for such period, less cash taxes paid during such period; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Denominator: the sum of (A) cash interest expense incurred during such period, plus (B) scheduled principal payments on all debt outstanding during such period.

(i) &nbsp;&nbsp;&nbsp;&nbsp; • EBITDA" means net income (loss) plus interest expense, income taxes, depreciation and amortization, each determined in accordance with GAAP.

(a) Certificate of Compliance. Before incurring any New Debt, the Manager shall deliver to the Members a certificate, signed by the Company's Chief Financial Officer (or Treasurer), certifying that, on a pro forma basis after giving effect to the proposed New Debt, the Company's FCCR would be no less than 1.0.

(b) Survival. This Section shall survive the issuance of any New Debt and may be enforced by any Member or Noteholder as if set forth in the original Operating Agreement.

This covenant shall survive the issuance of any New Debt and shall be enforceable by any Member or Noteholder as if originally set forth in the Operating Agreement.

**Effectiveness**

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All other provisions of the Operating Agreement remain in full force and effect. This Amendment shall become effective as of May 11, 2025 by the Member and shall be deemed part of the Operating Agreement.

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

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| | | | |
|:---|:---|:---|:---|
| By: | /s/ Erik Randall | Date: | 05-11-2025 |
|  | Erik Randall, Managing Member |  |  |

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## Ex1A-6

# **Master Services Agreement** 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Last Updated: November 27, 2023* 

&nbsp;&nbsp;&nbsp;&nbsp; Thanks for your interest in Plaid! This Master Services Agreement (this "Agreement") is a legally binding agreement governing access to and use of Plaid's Services. This Agreement is entered into between Plaid Inc. (f.k.a. Plaid Technologies, Inc.), a Delaware corporation ("Plaid") and the entity or person placing an Order or accessing or using the Services ("Client"). If you are placing an Order or accessing or using the Services on behalf of a company, organization, or other entity, then that entity is the Client. In that case, you are binding that entity to this Agreement and you represent and warrant that you are authorized to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **By clicking "I agree" (or a similar checkbox or button), placing an Order, or accessing or using the Services, you indicate your assent to be bound by this Agreement. If you do not agree to this Agreement, do not use or access the Services. This Agreement contains mandatory arbitration provisions that require the use of arbitration to resolve disputes. Please read it carefully.** 

&nbsp;&nbsp;&nbsp;&nbsp; The "Effective Date" of this Agreement is the earlier of (a) the date on which Client first accesses or uses the Services and (b) the date on which Client's first Order is agreed to by Plaid.

&nbsp;&nbsp;&nbsp;&nbsp; Plaid may modify this Agreement from time to time in accordance with Section 9 (Modifications to this Agreement) below.

 **1. ACCESS RIGHTS; RESTRICTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp; 1.1 *Access*. Subject to the Client's compliance with the terms and conditions of this Agreement, Plaid hereby agrees that during the applicable term of an Order (as defined below), the Client has the non-exclusive right to: (i) internally use the package of application programming interface materials provided by Plaid (the "API Package") solely as necessary to make an application owned and operated by the Client, which application is described in such Order or otherwise approved by Plaid in writing (the "Client Application"), interoperate with the Plaid services described on https:/ /www.plaid.com/ (collectively with the API Package, the "Services"), (ii) use the Services in such Client Application provided to end users (consumers or businesses) (the "End Users") for the use case permitted by Plaid in writing, including, but not limited to, as set forth in the applicable Order or in the Plaid dashboard, and (iii) use the End User information and data provided via the Services (collectively, the "Output") solely in such Client Application for such use case. All use of the Services and Output must be only as provided in this Agreement, only in accordance with Plaid's applicable technical user documentation and subject to the applicable use case, Client Application, and business unit restrictions (if any). The "Order" means, whether available on Plaid's website or otherwise, a Plaid order form, pricing schedule, pricing plan, or rate card for the Services.

&nbsp;&nbsp;&nbsp;&nbsp; 1.2 *Restrictions.* Client will not, and will not enable or assist any third-party to: (i) attempt to reverse engineer (except as permitted by law), decompile, disassemble, or otherwise attempt to discover the source code, object code, or underlying structure, ideas, or algorithms of the Services; (ii) modify, translate, or create derivative works based on the Services; (iii) make the Services or Output (or any derivative work thereof) available to, or use the Services or Output(or any derivative work thereof) for the benefit of anyone other than Client or End Users; (iv) sell, resell, license, sublicense, distribute, rent or lease any Services or Output (or any derivative work thereof) to any third-party, or include any Services or Output in a service bureau, time-sharing, or equivalent offering; (v) publicly disseminate or disclose information from any

&nbsp;&nbsp;&nbsp;&nbsp; source regarding the performance of the Services or Output; or (vi) attempt to create a substitute or similar service through use of, or access to, the Services or Output. Client will use the Services and Output only in accordance with (a) the rights granted hereunder, (b) the Plaid developer policies (available at https:/ /www.plaid.com/legal), a nd (c) any agreements between Client and End Users (for clarity, including any privacy policy or statement). Notwithstanding anything to the contrary, the Client accepts and assumes all responsibility for complying with all applicable laws and regulations in connection with all of Client's activities involving any Services, Output, or End User data. In addition, Client acknowledges and agrees that Plaid is neither a "consumer reporting agency" nor a "furnisher" of information to consumer reporting agencies under the Fair Credit Reporting Act ("FCRA") and the Output is not a "consumer report" under the FCRA and cannot be used as or in such. Client represents and warrants that it will not, and will not permit or enable any third-party to, use the Services (including Output) as a or as part of a "consumer report" as that term is defined in the FCRA or otherwise use the Services (including Output) such that the Services (including Output) would be deemed "consumer reports" under the FCRA. Client will comply with Schedule 1 (Addendum to Master Services Agreement) and the provisions set forth in any product or territory specific exhibit, addendum, or other document attached to this Agreement, but such provisions will only apply if Client uses the Service set forth in such document. In the event of a conflict between the terms and conditions of this Agreement and the terms and conditions of any such product or territory specific exhibit, addendum, or other attachment, the terms and conditions of such exhibit, addendum, or other attachment will govern and prevail.

&nbsp;&nbsp;&nbsp;&nbsp; 1.3 *Ownership.* Except for the rights expressly granted under this Section 1, Plaid reserves and retains all right, title, and interest in and to the Services which includes but is not limited to the API Package and any related Output (except for raw End User data, which belongs to the End User), software, products, works, and other intellectual property created, used, or provided by Plaid for the purposes of this Agreement. To the extent the Client provides Plaid with any feedback relating to the Services (including, without limitation, feedback related to usability, performance, interactivity, bug reports and test results) ("Feedback"), Plaid will own all right, title and interest in and to such Feedback (and the Client hereby makes all assignments necessary to achieve such ownership).

&nbsp;&nbsp;&nbsp;&nbsp; 1.4 *Privacy and Authorizations.* Before any End User engages with the Client Application in a manner that uses the Services, the Client warrants and will ensure that it provides all notices and obtains all consents required under applicable law to enable Plaid to process End User data in accordance with Plaid's end user privacy policy (currently available at https:/ /www.plaid.com/legal). Client will not (i) make representations or other statements with respect to End User data that are contrary to or otherwise inconsistent with Plaid's end user privacy policy or (ii) interfere with any independent efforts by Plaid to provide End User notice or obtain End User consent.

&nbsp;&nbsp;&nbsp;&nbsp; 1.5 *Permitted Service Providers*. Client may permit its employees, agents, contractors and service providers to access the Services and Output on Client's behalf (such parties, the "Permitted Service Providers"). Client will be responsible for all Permitted Service Providers' compliance with the terms and conditions of the Agreement (including, without limitation, such terms and conditions as they relate to the use of the Services and Output), and Client represents and warrants that it will: (i) not make the Services or Output available to any third parties aside from Permitted Service Providers; (ii) ensure that Permitted Service Providers are only using the Services and Output for the sole benefit of, and solely on behalf of, Client; (iii) ensure that Permitted Service Providers are not using the Services or Output for their own benefit or purposes, including to improve their own products (except to the extent necessary for

&nbsp;&nbsp;&nbsp;&nbsp; the Permitted Service Providers to provide its services to, on behalf of, and for the sole benefit of Client); and (iv) contractually require Permitted Service Providers to only use the Services and Output for the sole benefit of, and solely on behalf of, Client and contractually prohibit Permitted Service Providers from using the Services or Output for their own purposes or benefit. Client is responsible under Section 2 (Payments) of the Agreement for any fees or charges incurred by its Permitted Service Providers in their use of the Services. If Client enables any third parties as Permitted Service Providers, Client (and not Plaid) remains solely responsible for its relationships with such third parties and for any related billing matters, technical support, or disputes.

&nbsp;&nbsp;&nbsp;&nbsp; 1.6 *Development Accounts*. In addition to allowing production access to the Services as described in Section 1.1 ("Production Access"), Plaid may offer free sandbox or development accounts for the Services ("Development Accounts"). Client may use Development Accounts solely for internal evaluation of the Services to determine whether to place a paid Order, and not for Production Access or any other purpose. In using Development Accounts, Client must comply with Plaid's relevant documentation, policies, and instructions, including as relates to the data types and use cases eligible for Development Accounts. Plaid may make available different types of Development Accounts, and each Development Account may have limited functionality and other usage limits. Plaid may modify or disable Development Accounts (and delete related data submitted by Client or provided by Plaid) without notice or liability to Client. Plaid has no support obligations for Development Accounts. Subject to this paragraph, Development Accounts remain subject to the terms and conditions of this Agreement, including without limitation Sections 1.2 (Restrictions) through 1.5 (Permitted Service Providers), 1.7 (Compliance Reviews), 6 (Warranty; Disclaimer), and 7 (Limitation of Liability).

&nbsp;&nbsp;&nbsp;&nbsp; 1.7 *Compliance Reviews*. To access or use the Services, whether Development Accounts or Production Access, Client must successfully pass Plaid's compliance reviews, which may include automated verifications, online questionnaires, and requests for information ("Compliance Reviews"). As part of the Compliance Reviews, Client must provide prompt responses to Plaid's requests for information about Client, the Client Application, Client's business and associated entities, and Client's intended use of the Services. Client represents and warrants that all information it provides to Plaid as part of Compliance Reviews will be accurate and complete, and Client will immediately notify Plaid if any previously provided information is out-of-date or becomes inaccurate. Client may be required to complete more than one Compliance Review, for instance, to enable Development Accounts or upgrade to Production Access, or as requested by Plaid based on changes in Client's use of the Services or increased risk factors. Client's passage or failure of any Compliance Review is in Plaid's sole discretion. If Client fails any Compliance Review or fails to provide prompt and complete responses within three business days after Plaid's requests for information (even if Client has passed a previous Compliance Review or received provisional access to the Services), Plaid may suspend, revoke, or terminate Client's access to the Services, without notice or liability to Client.

&nbsp;&nbsp;&nbsp;&nbsp; 1.8 *Non-GA Services*. From time to time Plaid may invite Client to try Plaid features/functions, products, or services that are not generally available to Plaid's clients ("Non-GA Services"). Client may accept or decline any such invite in its sole discretion. Any Non-GA Services will be designated as alpha, beta, trial, pilot, limited release, developer preview, non-production or by a description of similar import. Non-GA Services are provided for evaluation purposes, may contain bugs or errors, and may be subject to additional terms. Non-GA Services are not considered "Services" hereunder and are provided solely and exclusively "AS IS" with no express or implied warranty of any kind. CLIENT ASSUMES AND

&nbsp;&nbsp;&nbsp;&nbsp; UNCONDITIONALLY RELEASES PLAID FROM ALL RISKS ASSOCIATED WITH THE USE OF ANY NON-GA SERVICES. Plaid may discontinue the Non-GA Services at any time in its sole discretion. Plaid does not promise or represent that Non-GA Services will be made generally available.

 **2. PAYMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp; Client will pay Plaid for the Services as set forth in each Order (the "Payments"). Unless otherwise specified in an Order, Payments must be made within fifteen (15) days from the date of Plaid's invoice. Unpaid invoices are subject to a finance charge of 1.5% per month or the maximum permitted by law, whichever is lower, plus all expenses of collection. The Client will be responsible for all (i) taxes associated with Services other than taxes based on Plaid's net income and (ii) Plaid's costs of collection in the event of the Client's delinquent payment. All Payments made are non-refundable (unless required under applicable law), non-cancellable, and not subject to setoff.

 **3. TERM; TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp; 3.1 *Term of Agreement.* This Agreement will commence on the Effective Date and will continue in effect unless terminated in accordance with this Agreement. On the effective date of termination of this Agreement, all Orders under the Agreement will also terminate unlessotherwise agreed by Plaid and the Client.

&nbsp;&nbsp;&nbsp;&nbsp; 3.2 *Term of Orders*. Unless otherwise specified in the Order, (i) each Order will have a term of twelve (12) months (an "Initial Term") beginning on the effective date of such Order; (ii) after the Initial Term, such Order will automatically renew for one (1) year periods (each a "Renewal Term") unless either party provides the other party with at least sixty (60) days' written notice prior to the end of the Initial Term or the Renewal Term; and (iii) Plaid may revise its rates for the Services by providing Client with at least seventy-five (75) days' written notice. Where applicable under the Order, such increases will be effective for the following Renewal Term, and Plaid will provide notice of such increases prior to the end of the then-current Initial Term or Renewal Term.

3.3 Termination.

&nbsp;&nbsp;&nbsp;&nbsp; (i) *For Cause*. Either party may terminate this Agreement and any applicable Orders in the event the other party materially breaches the terms of this Agreement or any Order and fails to cure such breach within ten (10) days from receipt of written notice thereof. In addition, Plaid may immediately suspend the Services in the event it determines or believes that (a) there is unauthorized access to the Services via Client's account, (b) continued provision of the Services may do material harm to Plaid or its networks or systems or reputation or subject Plaid to liability, or (c) Client materially breached Section 1 or 2 of this Agreement. For clarity, notice of termination for an Order will not be construed to be notice of termination for this Agreement or for any other Order.

&nbsp;&nbsp;&nbsp;&nbsp; (ii) *For Convenience*. If there are no active Orders, either party may terminate this Agreement for any reason and without cause upon at least thirty (30) days' prior written notice to the other party; provided that such right to terminate will not apply prior to the commencement of the initial Order.

&nbsp;&nbsp;&nbsp;&nbsp; (iii) *Effect of Termination*. Upon termination of an Order, all rights granted to Client with respect to such Order will terminate and Client will make no further use of the terminated Services or the applicable API Package (copies of which will be immediately returned to Plaid or destroyed).

&nbsp;&nbsp;&nbsp;&nbsp; Except for Section 1.1 with respect to any terminated Order, all provisions of this Agreement will survive any termination of this Agreement or any Order hereunder.

 **4. CONFIDENTIALITY** 

&nbsp;&nbsp;&nbsp;&nbsp; During the term of this Agreement, each party (a "Disclosing Party") may disclose, under this Agreement, to the other party (a "Receiving Party") confidential and/or proprietary materials and information of the Disclosing Party ("Confidential Information"). All materials and information disclosed by Disclosing Party to Receiving Party under this Agreement and identified at the time of disclosure as "Confidential" or bearing a similar legend, and all such other information that the Receiving Party reasonably should have known was the Confidential Information of the Disclosing Party, will be considered Confidential Information; for the avoidance of doubt, the Service, all pricing information and terms of this Agreement, are Confidential Information of Plaid. Receiving Party will maintain the confidentiality of the Confidential Information and will not disclose such information to any third-party without the prior written consent of the Disclosing Party. Receiving Party will only use the Confidential Information internally for the purposes contemplated under this Agreement. The obligations in this Section 4 will not apply to any information that: (i) is made generally available to the public without breach of this Agreement, (ii) is developed by the Receiving Party independently from the Disclosing Party's Confidential Information, (iii) is disclosed to Receiving Party by a third-party without restriction, or (iv) was in the Receiving Party's lawful possession prior to the disclosure to the Receiving Party and was not obtained by the Receiving Party either directly or indirectly from the Disclosing Party. Receiving Party may disclose Confidential Information as required by law or court order; provided that, Receiving Party provides Disclosing Party with prompt written notice thereof and uses its best efforts to limit disclosure. At any time, upon Disclosing Party's request, Receiving Party will return to Disclosing Party all Disclosing Party's Confidential Information in its possession, including, without limitation, all copies and extracts thereof. Notwithstanding the foregoing, (a) Receiving Party may disclose Confidential Information to any third-party to the limited extent necessary to exercise its rights, or perform its obligations, under this Agreement, or to any prospective acquirer of Receiving Party; provided that, all such third parties are bound in writing by obligations of confidentiality and nonuse at least as protective of the Disclosing Party's Confidential Information as this Agreement and (b) all Feedback and the API Package will be solely Plaid's "Confidential Information."

 **5. INDEMNITY** 

&nbsp;&nbsp;&nbsp;&nbsp; The Client will defend, indemnify and hold Plaid harmless from and against all third-party claims, actions, proceedings, regulatory investigations, damages, losses, judgments, settlements, costs and expenses (including attorneys' fees), arising from or in connection with: (i) Client breach of any laws or regulations (including with respect to privacy); (ii) Client's or any Permitted Service Provider's use of the Services and Output; or (iii) Client's violation of any agreements it has with any End User.

 **6. WARRANTY; DISCLAIMER** 

&nbsp;&nbsp;&nbsp;&nbsp; THE SERVICES ARE PROVIDED "AS IS." TO THE FULLEST EXTENT PERMITTED BY LAW, NEITHER PLAID NOR ITS AFFILIATES, SUPPLIERS, LICENSORS, AND DISTRIBUTORS MAKE ANY WARRANTY OF ANY KIND, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR ANY WARRANTY THAT THE SERVICES ARE FREE FROM DEFECTS. PLAID DOES NOT MAKE ANY WARRANTY AS TO THE OUTPUT THAT MAY BE OBTAINED FROM USE OF THE SERVICES. CLIENT, IF AN INDIVIDUAL, MAY HAVE OTHER STATUTORY RIGHTS; HOWEVER, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DURATION OF STATUTORILY REQUIRED

&nbsp;&nbsp;&nbsp;&nbsp; WARRANTIES, IF ANY, WILL BE LIMITED TO THE SHORTEST PERIOD PERMITTED BY LAW.

 **7. LIMITATION OF LIABILITY** 

&nbsp;&nbsp;&nbsp;&nbsp; TO THE FULLEST EXTENT PERMITTED BY LAW, NEITHER PLAID NOR ITS AFFILIATES, SUPPLIERS, LICENSORS, AND DISTRIBUTORS WILL BE LIABLE UNDER THIS AGREEMENT FOR ANY: (A) INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES; (B) LOSS, ERROR, OR INTERRUPTION OF USE OR DATA (IN EACH CASE, WHETHER DIRECT OR INDIRECT); OR (C) COST OF COVER OR LOSS OF BUSINESS, REVENUES, OR PROFITS (IN EACH CASE WHETHER DIRECT OR INDIRECT), EVEN IF THE PARTY KNEW OR SHOULD HAVE KNOWN THAT SUCH DAMAGES WERE POSSIBLE. TO THE FULLEST EXTENT PERMITTED BY LAW, PLAID'S AGGREGATE LIABILITY IN CONNECTION WITH EACH ORDER (INCLUDING ALL LIABILITY UNDER THIS AGREEMENT THAT ARISES AS A RESULT OF SUCH ORDER) WILL NOT EXCEED THE AMOUNT PAID OR PAYABLE BY CLIENT TO PLAID DURING THE SIX (6) MONTH PERIOD PRIOR TO THE EVENT GIVING RISE TO LIABILITY (PROVIDED THAT, IF NO FEES ARE PAID OR PAYABLE, SUCH AMOUNTS WILL BE LIMITED TO ONE HUNDRED DOLLARS (US$100.00)). THE PARTIES AGREE THAT THE WAIVERS AND LIMITATIONS SPECIFIED IN THIS SECTION 7 APPLY REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE AND WILL SURVIVE AND APPLY EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS AGREEMENT IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE.

 **8. MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp; If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable. This Agreement is not assignable or transferable by Client except with Plaid's prior written consent; provided, however, that Client may, upon prior written notice to Plaid, transfer and assign its rights and obligations under this Agreement to an affiliate or in connection with a merger, acquisition, corporate reorganization, or sale of all or substantially all of its assets to which this Agreement relates. If such a transfer or assignment is made in favor of a direct competitor of Plaid, then Plaid may terminate this Agreement upon written notice to Client. Plaid may freely assign this Agreement. This Agreement is the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements, communications, and other understandings relating to the subject matter of this Agreement, and all waivers and modifications must be in a writing signed by both parties, except as otherwise provided herein. No agency, partnership, joint venture, or employment is created as a result of this Agreement. Plaid's notice address is Plaid Inc., P.O. Box 7775 #35278, San Francisco, CA 94120, Attn: Legal; with a copy (which does not constitute notice) to legalnotices@plaid.com. Any notices in connection with this Agreement will be in writing and sent by first class mail, confirmed facsimile or major commercial rapid delivery courier service to the address specified above (or such other address as may be properly specified by written notice hereunder). Email notice will be permitted by Plaid if sent to the Client's dashboard account email address. Any delay in or failure of performance by either party under this Agreement will not be considered a breach of this Agreement and will be excused to the extent caused by any occurrence beyond the reasonable control of such party including, but not limited to, acts of God, power outages, governmental actions and requirements, and the acts and omissions of Plaid's data suppliers. During the term of this Agreement, (a) Client agrees to participate in case studies and other similar marketing efforts reasonably requested by Plaid; (b) Plaid may disclose that Client is a Plaid customer to third parties; and (c) Plaid may include on and in Plaid's website, case

&nbsp;&nbsp;&nbsp;&nbsp; studies, marketing materials, and conference presentations and other speaking opportunities, Client's testimonials and other feedback regarding the Services, name, website URL, use case, and logo and other marks. Upon request from Client, Plaid will promptly stop making the disclosure and use described in the foregoing sentence except to the extent already included in any then-existing materials. This Agreement will be governed by the laws of the State of California, without regard to the conflict of law provisions thereof. The application of 1980 United Nations Convention on Contracts for the International Sale of Goods is expressly excluded. Except for claims for injunctive or equitable relief or claims regarding intellectual property rights (which may be brought in any competent court), any dispute arising under this Agreement will be finally settled in accordance with the Comprehensive Arbitration Rules of the Judicial Arbitration and Mediation Service, Inc. ("JAMS") by a single arbitrator appointed in accordance with such Rules. The arbitration will take place in San Francisco, California, USA, in the English language and the arbitral decision may be enforced in any court of competent jurisdiction. With respect to any court challenge to JAMS jurisdiction to arbitrate any claim or dispute arising or relating to this Agreement, the parties consent to exclusive jurisdiction and venue in the state and Federal courts located in San Francisco, California. With respect to all disputes arising in relation to this Agreement, but not subject to the preceding arbitration provision, the parties consent to exclusive jurisdiction and venue in the state and Federal courts located in San Francisco, California.

 **9. MODIFICATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp; From time to time, Plaid may modify this Agreement. Plaid will use commercially reasonable efforts to notify Client of the modifications and the effective date of such modifications through communications via Client's account, email, or other means.

&nbsp;&nbsp;&nbsp;&nbsp; Development Accounts: Client must accept the modifications to continue accessing or using Development Accounts. If Client objects to the modifications, its exclusive remedy is to cease any and all access and use of Development Accounts.

&nbsp;&nbsp;&nbsp;&nbsp; Production Access: If the effective date of the modifications is during the term of a paid Order for Production Access and Client objects to the modifications, then (as its exclusive remedy) Client may terminate its affected Order upon notice to Plaid, and Plaid will refund to client any fees it has pre-paid for use of the Services for the terminated portion of the term of the applicable Order. To exercise this right, Client must provide Plaid with notice of its objection and termination within thirty (30) days after Plaid provides notice of the modifications.

&nbsp;&nbsp;&nbsp;&nbsp; Client may be required to click to accept or otherwise agree to the modified Agreement in order to continue accessing or using the Services, and in any event continued access or use of the Services after the modified version of this Agreement goes into effect will constitute Client's acceptance of such modified version.

## **SCHEDULE 1 Addendum to Master Services Agreement** 
&nbsp;&nbsp;&nbsp;&nbsp; Effective as of the Effective Date, this Addendum to Master Services Agreement ()"**Addendum**") is hereby incorporated in and expressly made a part of the Agreement. Through the Services, Client may have access to information about or of End Users provided to Plaid by a bank, financial institution, or other data source (each, as designated by Plaid, "**FI** ", and such information, the "**End User Data** ").

1. **End User Data.** 

&nbsp;&nbsp;&nbsp;&nbsp; a. End User Consents. Client will provide all notices and obtain all express consents from each End User as required under applicable laws in connection with Client's use, storage and other processing of any End User Data (such notices and consents, the "**Express Consents** "). Express Consents will be clear and conspicuous and will generally specify the categories of End User Data that Client will receive and how Client will use, store and otherwise process it, in addition to any other required disclosures under applicable laws. Client will maintain records (which may include technical logs, screenshots, versions of Express Consents obtained) to demonstrate its compliance with this Section 1(a) and will promptly provide such records to Plaid upon request.

&nbsp;&nbsp;&nbsp;&nbsp; b. Scope of Access. Client will only access End User Data for which it has obtained Express Consents from the End User for the use case reviewed and permitted by Plaid in writing that is consented to by the applicable End User (such use case, the "**Permitted Use Case** "). Key factors Plaid will consider during its review include whether the use case is appropriate and useful to provide the End User with the Client Application that the End User has enrolled in, whether the Client Application provides a direct benefit to the End User, and whether the use case directly supports the development of new or improved product features for the benefit of End Users, and the jurisdiction(s) in which the Client operates and/or stores End User Data. If Client possesses End User Data that exceeds the scope of the End User's Express Consents, Client will use industry-standard means to permanently and securely delete ()"**Delete**") such End User Data.

&nbsp;&nbsp;&nbsp;&nbsp; c. Data Use. Client will use, store and otherwise process End User Data solely in accordance with the End User's Express Consents and applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp; d. Data Disclosure. Client will not disclose, transfer, syndicate or distribute End User Data to any third party (including its Permitted Service Providers) ()"**Data Sharing**") except in each case with the End User's Express Consents and in accordance with applicable laws. Notwithstanding anything to the contrary, Client will not sell End User Data.

&nbsp;&nbsp;&nbsp;&nbsp; e. Data Deletion. Client will promptly Delete any End User Data upon request by the applicable End User; provided that Client may retain copies of End User Data solely to the extent required by applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp; f. No Attribution. Client will not charge End Users any fees attributable to an FI for (a) access to its End User Data or (b) use of End User's account with an FI in connection with the Client Application. In addition, Client will not publicize its receipt of End User Data from specific FIs under the Agreement or this Addendum.

&nbsp;&nbsp;&nbsp;&nbsp; g. No Other Access. Client will only access End User Data through the Services or another manner that uses the FI's authorized APIs. Client will not "screen scrape" data from FIs or collect an End User's log-on credentials for FI accounts,

&nbsp;&nbsp;&nbsp;&nbsp; and will not otherwise knowingly obtain from a third party End User data that was originally sourced through screen scraping. Client will immediately Delete any such End User log-on credentials in its possession. Client will maintain records to demonstrate compliance with this Section 1(g) and will provide them to Plaid upon request.

2. **Client Obligations**.

&nbsp;&nbsp;&nbsp;&nbsp; a. Compliance with Laws. Client will comply with all applicable privacy, security and other laws, including, as applicable, the Gramm-Leach-Bliley Act, the California Consumer Privacy Act, and all other laws relating to End User Data. Client will not use, store, disclose, or otherwise process any End User Data for any purpose not permitted under applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp; b. Information Security Program. Client will maintain a comprehensive written information security program approved by its senior management ()"**Infosec Program** "). The Infosec Program will include administrative, technical and physical measures designed to: (a) ensure the security of End User Data, (b) protect against unauthorized access to or use of End User Data and anticipated threats and hazards to End User Data and(c) ensure the proper disposal of End User Data. The Infosec Program will be appropriate to Client's risk profile and activities, the nature of the Client Application, and the nature of the End User Data received by Client. In any event, the Infosec Program will meet or exceed applicable control objectives captured in industry standards and best practices such as AICPA Trust Service Criteria for Security, NIST 800-53, or ISO 27002 and will comply with applicable laws. Client will use up-to-date antivirus software and anti-malware tools designed to prevent viruses, malware and other malicious code in the Client Application or on Client's systems.

&nbsp;&nbsp;&nbsp;&nbsp; c. Security Breach Obligations. Client will promptly notify Plaid (and in no event after more than 12 hours) upon becoming aware of any Security Breach, providing a description of all known facts, the types of End Users affected, and any other information that Plaid may reasonably request. Client will reasonably cooperate with Plaid in investigating and remediating Security Breaches. Client will be responsible for the costs of investigating, mitigating, and remediating the Security Breach, including costs of credit monitoring, call centers, support, and other customary or legally required remediation. "**Security Breach**" means any event that compromises the Client Application or Client's systems or that does or reasonably could compromise the security, integrity or confidentiality of End User Data or result in its unauthorized use, disclosure or loss.

&nbsp;&nbsp;&nbsp;&nbsp; d. FI Confidential Information. If Plaid discloses to Client any confidential or proprietary materials of an FI (such materials, "**FI Confidential Information** "), such materials will be subject to the same obligations that apply to Plaid's Confidential Information under the Agreement. FI Confidential Information will also be subject to the same obligations as End User Data under this Section 2 (Client Obligations) of this Addendum.

&nbsp;&nbsp;&nbsp;&nbsp; e. Oversight and Cooperation. Client will promptly provide all reasonably necessary information and cooperation requested by Plaid, an FI, or any entity with examination, supervision, or other legal or regulatory authority over Plaid or an FI. In the event that Plaid has a good faith reason to believe that Client is not in material compliance with this Addendum, Plaid will notify Client and, at Plaid's option, Client will promptly provide sufficient documentation to demonstrate such

&nbsp;&nbsp;&nbsp;&nbsp; material compliance or submit to a third-party audit by a firm selected from a Plaidapproved list of audit firms to verify such compliance. Plaid and FIs may also conduct technical or operational assessments of Client, which will be subject to advance notice and will not occur more than once per year unless legally required and materially different in scope from a preceding audit.

&nbsp;&nbsp;&nbsp;&nbsp; f. Information Sharing. Where required by an FI and to the extent relevant to a Client's access or use of End User Data from that FI, Plaid may share with such FI certain information related to Client's compliance with this Addendum, including with respect to Client's Infosec Program. Plaid will request that such FI treat any such information in a confidential manner.

&nbsp;&nbsp;&nbsp;&nbsp; g. Insurance. Client will maintain insurance coverage appropriate to Client's risk profile and activities, the nature of the Client Application, and the nature of the End User Data received by Client; provided that such coverage will be no less than industry standard and will include cybersecurity liability insurance.

&nbsp;&nbsp;&nbsp;&nbsp; h. Access Frequency. Client will comply with any guidelines provided by Plaid regarding Client's frequency of "batch" pulls of End User Data. Plaid may enforce such guidelines in accordance with its standard practices, which may include throttling, suspension or termination of Client's access.

* 
 3.  **Suspension**. Plaid may suspend or terminate Client's access to the Services or End User Data, in whole or in part, if it believes Client has breached this Addendum or where Client's use of the Services or End User Data could violate or give rise to liability under any Plaid agreement (including Plaid's agreement with any FI) or pose a risk of harm, including reputational harm, to any End User, FI, the Services, or Plaid and its affiliates. In addition, an FI may suspend Client's access to End User Data with respect to such FI.
 

* 
 4.  **Indemnity**. Client will indemnify, defend and hold harmless each FI, Plaid, and the affiliates of each of the foregoing from any claims, actions, suits, demands, losses, liabilities, damages (including taxes), costs and expenses arising from or in connection with: (a) any Security Breach resulting in unauthorized disclosure of End User Data or (b) Client's unauthorized or improper use of End User Data (including any unauthorized Data Sharing, transmission, access, display, storage or loss). This Section 4 is not subject to any limitation of liabilities set forth in the Agreement. Each FI is a third-party beneficiary of this Section 4.
 

* 
 5.  **Miscellaneous**. In the event of a conflict with the Agreement, the terms and conditions of this Addendum will govern and prevail. Capitalized terms used in this Addendum and not otherwise defined will have the meanings ascribed to them in the Agreement. All provisions of this Addendum will remain in force in the event of this Addendum's or the Agreement's termination or expiration.
 

## **SCHEDULE 2 Platform Support Addendum - Plaid Basic Service Levels** 
&nbsp;&nbsp;&nbsp;&nbsp; THIS ADDENDUM WILL ONLY APPLY IF CLIENT HAS PURCHASED "PLATFORM SUPPORT (BASIC)".

&nbsp;&nbsp;&nbsp;&nbsp; Terms used but not defined in this Addendum will be defined as set forth in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp; Plaid will provide the following support for the Services set forth above, to the extent and in the manner described in Sections 1 - 4 of this Addendum:

* 
 24/7 access to Plaid support dashboard, docs, and ticketing;
 

* 
 Support team availability and response time commitments from 9am-5pm PST for applicable service issues (i.e., Incident Severity 1, Incident Severity 2, and Incident Severity 3);
 

* 
 Upkeep/maintenance of Plaid APIs;
 

* 
 Monitoring, upkeep, and maintenance of Plaid's data access connections to financial institutions; and
 

* 
 Access to shared services of the Plaid platform, including but not limited to Plaid Link, crossproduct APIs, and Plaid-generated access tokens.
 

 **1. General Support.** 

* 
 1.1. Product Support. Client will provide Level 1 Support and Level 2 Support (as each is further described below within this Section 1) to End Users. Plaid will provide Level 3 Support (as further described below within this Section 1) to Client via the Plaid dashboard (dashboard.Plaid.com/support) and Plaid support personnel.
 

 1.1.1. "Level 1 Support" means services provided by Client to an End User to review a symptomssolutions database for known error resolutions; an attempt to provide an acceptable error resolution.
 

 1.1.2. "Level 2 Support" means services provided by Client to an End User to perform an in-depth analysis of a suspected error; an attempt to recreate the error and to provide an acceptable error resolution.
 

 1.1.3. "Level 3 Support" means services provided by Plaid support personnel to Client towards answering questions related to operational use of the Services and resolving errors in the Client Application that are determined to be, or are highly probable to be, the result of a defect caused by Plaid design or engineering or the result of a complex interaction between the Client Application and the Services that cannot be resolved by Client, and which errors require product engineering knowledge or expertise towards isolating and affecting a resolution.
 

 **2. Basic Support.** 

* 
 2.1. Severity Levels and Response Times. Following Client submitting a Ticket, Plaid's support team will use commercially reasonable efforts to provide to Client an Informative Response within the applicable response time described in Table A (Response Times) below.
 

 2.1.1. "Business Hours" means the hours between 9:00AM and 5:00PM PST, Monday through Friday, excluding U.S. federally observed holidays.
 

* 
 2.1.2. "Incident Severity Ticket" means a Ticket reporting an error concerning Client's use of the Services that is either an Incident Severity Level 1, Incident Severity Level 2, or Incident Severity Level 3 (as defined in Table C (Severity Level Definitions) below, respectively).
 

* 
 2.1.3. "Informative Response" means a Plaid response to an Incident Severity Ticket that will include: (a) a classification of the error described in the applicable Incident Severity Ticket as either an Incident Severity Level 1, Incident Severity Level 2, or Incident Severity Level 3; (b) identification of the origin of the applicable error (i.e., as "Plaid" or "non-Plaid") to the extent known by Plaid's support personnel upon initial triage of such error; and (c) additional information known by Plaid's senior support team regarding the error described in the applicable Incident Severity Ticket upon initial triage of such error (e.g., the impacted Services and estimated time for resolution).
 

* 
 2.1.4. "Institution Success Rate" is defined as the sum of: (a) the number of Items that are successful; plus (b) the number of Items that are unsuccessful due to user errors, financial institution errors, or other errors outside of Plaid's control; divided by (c) the number of Item attempts by all Plaid end users across all applicable financial institutions.
 

* 
 2.1.5. "Item" means a Plaid end user's connection to a financial institution using the Services.
 

* 
 2.1.6. "Service Downtime" means the total number of one (1) minute periods in the applicable calendar month for which the Plaid's servers used to provide the Services to Client have a Service Success Rate below 90%.
 

* 
 2.1.7. "Service Success Rate" means the number of API requests successfully made to the applicable Services (i.e., requests whereby such Services are accessible, available, and perform according to their applicable technical specifications), divided by the total number of API requests attempted across all Plaid clients during the applicable period.
 

* 
 2.1.8. "Ticket" means a support case or ticket opened by Client on the Plaid dashboard to report an error concerning Client's use of the Services. For the avoidance of doubt, and notwithstanding anything to the contrary: (i) upon Plaid's reasonable assessment of the facts pertaining to each Ticket, Plaid may classify such Ticket (i.e., as an Incident Severity 1, Incident Severity 2, Incident Severity 3, or none of the foregoing); and (ii) the relevant terms of this Addendum will apply in accordance with such classification.
 

---

| | |
|:---|:---|
| Table A: Response Times | ##__COLSPAN__## |
| Severity Level | Response Time |
| Incident Severity 1 | Six (6) Business Hours from when the Incident Severity Ticket is received by Plaid. |
| Incident Severity 2 | Six (6) Business Hours from when the Incident Severity Ticket is received by Plaid. |
| Incident Severity 3 | Six (6) Business Hours from when the Incident Severity Ticket |

---

---

| | |
|:---|:---|
| Table B: Severity Level Definitions | ##__COLSPAN__## |
| Severity Level | Definition |
| Incident Severity 1 | Service Downtime totaling ten (10) or more, with all one (1) minute periods comprising such Service Downtime occurring consecutively. |
| Incident Severity 2 | A Services error resulting in an Institution Success Rate of 85% or less over a six (6) hour period. |
| Incident Severity 3 | A Services error resulting in an Institution Success Rate of more than 85% but less than 90% over a six (6) hour period. |

---

* 
 2.2.  **Applicability of Response Times Credits.** 
 Response Times Credits will be applied against future payments due from Client to Plaid. The Response Times Credits will, as applicable, be Client's sole and exclusive remedy and Plaid's sole obligation in connection with Plaid breaches of this Section 2.
 

 2.2.1. "Response Times Credit" means a dollar credit that Plaid may credit back to an eligible Client account, calculated by multiplying the applicable percentage set forth in the Response Times Credits column of Table C (Service Fee Credit Percentage) below (i.e., which percentage corresponds to the applicable (a) Severity Level, per the first column in Table C, and (b) description within the Response Failure column in Table C) by the monthly fees for the Basic Support paid by Client to Plaid pertaining to the affected calendar month (for clarity, excluding any one-time fees and fixed fees).
 

 2.2.2. "Basic Support" means the support services described in this Section 2.
 

---

| | | |
|:---|:---|:---|
| Incident Severity 1 or 2 | Five (5) or more Incident Severity 1 or Incident Severity 2 Tickets are not responded to (in accordance with this Section 2) within the applicable period specified in Table A during one (1) calendar month. | 40% |
| Incident Severity 3 | Greater than five (5) Incident Severity 3 Tickets are not responded to (in accordance with this Section 2) within the applicable period specified in Table A during one (1) calendar month. | 20% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **3. Exclusions.** Notwithstanding anything to the contrary in this Addendum or the Agreement, Plaid will have no responsibility or liability for or in connection with any errors, problems, unavailability, delays in response time, suspension, or termination of the Services, or any other performance issues that arise from: (i) Client's inability to receive data from the Services due to errors, problems, or unavailability of Plaid's data providers (e.g., financial institutions); (ii) use by End Users; (iii) inaccurate or missing information in Client's API call or an API call that is otherwise invalid; (iv) factors outside of Plaid's reasonable control, including but not limited to any force majeure event, Internet access issue, and related or similar problems; (v) Client's software or hardware; (vi) third party software or hardware; (vii) abuses or other activity that leads to a suspension or termination or violates the Agreement; or (viii) planned downtime or maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **4. Effectiveness of Obligations.** Notwithstanding anything to the contrary in this Addendum or the Agreement, solely so long as the pricing for Basic Support effective as of the Effective Date via the applicable Order ("Basic Support Fee") remains effective: (i) Plaid will provide the Basic Support (and otherwise comply with Section 2 of this Addendum); and (ii) Client will be eligible to receive Response Times Credits. For the avoidance of doubt, in the event that the Basic Support Fee becomes ineffective (e.g., due to Client electing not to continue its Basic Support Fee commitment in accordance with the applicable Order, or electing to renew the applicable Order neither with the Basic Support Fee intact nor with higher pricing for Basic Support replacing the Basic Support Fee), then as of the effective date of such change Section 2 of this Addendum will no longer apply and Client will be ineligible to receive any Response Times Credits.

### **Exhibit A "Assets" Product Specific Provisions** 
&nbsp;&nbsp;&nbsp;&nbsp; THE FOLLOWING PROVISIONS WILL ONLY APPLY IF CLIENT USES PLAID'S "ASSETS" PRODUCT.

&nbsp;&nbsp;&nbsp;&nbsp; Subject to this Exhibit A, Client may request that Plaid disclose Output to Client's Secondary Investors. "Secondary Investor" means a third-party investor or purchaser of a financial product originated by Client and provided to an End User (e.g., a loan), with which investor or purchaser Plaid maintains a separate technical integration.

&nbsp;&nbsp;&nbsp;&nbsp; (i) Client represents and warrants to Plaid that, before disclosure of Output to any Secondary Investor, Client will provide all required notices to and obtain all required consents (including notices and consents required under applicable law) from the applicable End User with respect to Plaid's disclosure of Output to such Secondary Investor.

&nbsp;&nbsp;&nbsp;&nbsp; (ii) Notwithstanding any Plaid technical integration or anything else in the Agreement to the contrary: (a) Client is solely responsible for its own relationships with Secondary Investors, including any related billing matters, technical support, or disputes; (b) Client will enter into legally binding written agreements with each Secondary Investor that are consistent with this Exhibit A and all applicable terms and conditions of the Agreement, including, without limitation, Section 1.1 (Access) and 1.2 (Restrictions); and (c) Client will remain responsible for compliance by Secondary Investors with all of the terms and conditions of the Agreement (including, without limitation, terms relating to use of Output).

&nbsp;&nbsp;&nbsp;&nbsp; Client's indemnification obligations in Section 5 of the Agreement are deemed to include (a) any breach by Client of this Exhibit A, (b) any acts or omissions of Secondary Investors, and (c) any dispute arising among Client, Secondary Investors, and/or End Users relating to the disclosure or use of Output as contemplated in this Exhibit A.

## **Exhibit B "Income" and "Employment" Product Specific Provisions** 

#### THE FOLLOWING PROVISIONS WILL ONLY APPLY IF CLIENT USES PLAID'S "INCOME" OR "EMPLOYMENT" PRODUCTS (collectively, the "Income and Employment Services").
&nbsp;&nbsp;&nbsp;&nbsp; 1. Requested Information. In connection with certain features and functionalities of the Income and Employment Services, Client may be required to provide to Plaid certain End User information and documentation, including without limitation, the End User's name, phone number, employer's name, account information, and payroll information and documentation (such End User information and documentation, the "Requested Information"). Client represents and warrants that (a) all Requested Information provided to Plaid is true, accurate, and complete and (b) Client has provided all notices and obtained all consents required under applicable laws, regulations, and third-party agreements for (i) Client to share all Requested Information with Plaid and (ii) Plaid to collect, use, disclose, and otherwise process all Requested Information in accordance with Plaid's end user privacy policy (currently available at https:/ /www.plaid.com/legal), i ncluding without limitation, to provide the Income and Employment Services to Client. Client further covenants that it will not (a) make representations or other statements with respect to any Requested Information that are contrary to or otherwise inconsistent with the Agreement, this Exhibit B, or Plaid's end user privacy policy or (b) interfere with any independent efforts by Plaid to provide End User notice or obtain End User consent. The parties acknowledge and agree that the Services include the Income and Employment Services, and any information of or related to End Users that is provided to Client via the Income and Employment Services will be considered Output for purposes of the Agreement and this Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp; 2. Secondary Investors. Client may request that Plaid disclose Output for the Income and Employment Services to Secondary Investors using the token integration mutually agreed to by Plaid and Client. "Secondary Investor" means a third-party investor or purchaser of a financial product originated by Client and provided to an End User (e.g., a loan), with which investor or purchaser Plaid maintains a separate technical integration. Client represents and warrants that Client has provided all notices and obtained all consents required under applicable laws, regulations, and third-party agreements for Plaid's disclosure of Output to Secondary Investors. Notwithstanding any Plaid technical integration or anything in the Agreement or this Exhibit B to the contrary, (a) Client is solely responsible for its own relationships with Secondary Investors, including any related billing matters, technical support, or disputes; (b) Client will enter into legally binding written agreements with each Secondary Investor that are consistent with all applicable terms and conditions of the Agreement and this Exhibit B, including, without limitation, Sections 1.1 (Access) and 1.2 (Restrictions) of the Agreement and other terms and conditions relating to use of Output; and (c) Client will remain responsible for Secondary Investors' compliance with all such terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp; 3. Additional Indemnity. Client will defend, indemnify, and hold Plaid harmless against all third-party claims, actions, proceedings, regulatory investigations, damages, losses, judgments, settlements, costs, and expenses (including attorneys' fees) arising from or in connection with any (a) breach by Client of this Exhibit B, (b) infringement, misappropriation, or other violation of any third party's intellectual property or other rights by any of the Requested Information provided by Client to Plaid, (c) acts or omissions of Secondary Investors related to Output, and (d) dispute arising among Client, Secondary Investors, and/or End Users relating to the disclosure, use, or other processing of Output provided pursuant to this Exhibit B.

## **Exhibit C "Signal" Product Specific Provisions** 

### THE FOLLOWING PROVISIONS WILL ONLY APPLY IF CLIENT USES PLAID'S "SIGNAL" PRODUCT (the "Signal Service").
&nbsp;&nbsp;&nbsp;&nbsp; 1. Use of the Signal Service; Restrictions. Client acknowledges and agrees that (i) any score, risk tier, data attribute, or other output provided by Plaid to Client via the Signal Service (collectively, the "Signal Output") does not constitute a "consumer report" as that term is defined in the federal Fair Credit Reporting Act ("FCRA"), 15 USC 1681 et seq., its implementing regulations, and relevant state consumer reporting laws and regulations, and (ii) Plaid is neither a "consumer reporting agency" nor a "furnisher" of information to consumer reporting agencies under the FCRA. Accordingly, Client acknowledges and agrees that the Signal Service and any Signal Output may not be used in whole or in part as a factor in determining an End User's eligibility for credit, insurance, employment or any other permissible purpose under the FCRA. Client further agrees that it will not (and will not permit or enable any third party to) use the Signal Service or any Signal Output in any manner such that either of the foregoing would be deemed as, or as part of, a "consumer report" under the FCRA. Client will not disclose or otherwise make available any Signal Output to any third party, including without limitation, the End User. Client acknowledges and agrees that any breach of this Exhibit C by Client will be deemed a material breach of the Agreement by Client. The parties acknowledge and agree that the Services include the Signal Service and that Output includes the Signal Output (as defined below) for purposes of the Agreement and this Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp; 2. Term. Client may access the Signal Service subject to the Agreement and this Exhibit C. This Exhibit C will remain in effect until terminated in accordance with the terms of the Agreement or this Exhibit C. Plaid may suspend the Signal Service in the event it determines or believes that (i) there is unauthorized access to the Signal Service via Client's account, (ii) continued provision of the Signal Service may do material harm to Plaid or its networks, systems or reputation, or subject Plaid to liability, or (iii) Client has materially breached the terms of this Exhibit C. Except for Client's right to use the Signal Service to generate the Signal Output, all provisions of this Exhibit C will survive any expiration or termination of this Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp; 3. Transaction Data. Client may provide to Plaid certain transaction information in connection with the Signal Service (such information, the "Transaction Data"). Client warrants and will ensure that it provides all notices and obtains all consents required under applicable laws, regulations, and third-party agreements for (i) Client to share the Transaction Data with Plaid and (ii) Plaid to provide the Signal Service to Client and to otherwise collect, use, and process the Transaction Data in accordance with Plaid's end user privacy policy (currently available at https:/ /www.plaid.com/legal). Client's indemnification obligations under the Agreement are deemed to include any breach by Client of this Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp; 4. Feedback; Cooperation. Client will: (i) integrate within the Client Application, and provide feedback via, certain Plaid API feedback endpoints as required by Plaid in connection with Client's use of the Signal Service; and (ii) provide to Plaid the feedback, impression, reaction, product recommendation, and related information reasonably requested by Plaid in connection with Client's use of the Signal Service (all feedback and related information described in this sentence, collectively, the "Signal Feedback"). Plaid will own all right, title, and interest in and to the Signal Feedback, and Client hereby makes all assignments necessary to achieve such ownership. The Signal Feedback will be Plaid Confidential Information. Client will (a) promptly support and cooperate with all Signal Service updates that are introduced by Plaid, and (b) use

&nbsp;&nbsp;&nbsp;&nbsp; commercially reasonable efforts to cooperate with Plaid on A/B testing pertaining to the Signal Service.

&nbsp;&nbsp;&nbsp;&nbsp; 5. Disclaimer. The parties acknowledge and agree that the Signal Service is provided "AS IS" with no express or implied Plaid warranty or indemnity of any kind. PLAID DISCLAIMS ALL WARRANTIES RELATING TO THE SIGNAL SERVICE, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Client acknowledges and agrees that: (i) the Signal Output is not intended to be used as the sole basis for any decision affecting a transaction or End User and that Client (and not Plaid) is responsible for any and all decisions and actions made by Client; and (ii) notwithstanding anything to the contrary in the Agreement and to the fullest extent permitted by law, Plaid will not be liable under this Addendum or the Agreement for any cost of cover, ACH return losses, or loss of business, revenues, or profits (in each case whether direct or indirect).

## **Exhibit D "IDV Services" Product Specific Provisions** 
&nbsp;&nbsp;&nbsp;&nbsp; THE FOLLOWING PROVISIONS WILL ONLY APPLY IF CLIENT USES PLAID'S "IDENTITY VERIFICATION" OR "MONITOR" PRODUCTS.

 **1. DEFINITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp; 1.1. "Client Data" means data in electronic form that is transmitted through the IDV Services by, or on behalf of, Client and/or End Users, as applicable. For the avoidance of doubt, Output (as defined in the Agreement) does not include Client Data that is returned back to Client as a part of the IDV Services.

&nbsp;&nbsp;&nbsp;&nbsp; 1.2. "Plaid Identity Verification" means the IDV Services that collect Client Data from Client or End Users, as determined by Client via the Dashboard.

&nbsp;&nbsp;&nbsp;&nbsp; 1.3. "Plaid Monitor" means the anti-money-laundering screening IDV Services.

&nbsp;&nbsp;&nbsp;&nbsp; 1.4. "IDV Services" means the Services comprised of the Plaid Identity Verification and Plaid Monitor, as applicable, and includes the Dashboard. For the avoidance of doubt, the Services include the IDV Services.

&nbsp;&nbsp;&nbsp;&nbsp; 1.5. "Dashboard" means the portion of the IDV Services comprised of the IDV Services dashboard.

&nbsp;&nbsp;&nbsp;&nbsp; 1.6. "DPPA" means the Drivers Privacy Protection Act, 18 U.S.C. § 2721, et. seq.

&nbsp;&nbsp;&nbsp;&nbsp; 1.7. "GLBA" means the Gramm-Leach-Bliley Act, 15 U.S.C. § 6801, et seq.

&nbsp;&nbsp;&nbsp;&nbsp; 1.8. "PII" means Client Data that relates to an End User and is deemed "personal data" or "personal information" (or analogous variations of such terms) under applicable privacy or data protection law.

&nbsp;&nbsp;&nbsp;&nbsp; For the purposes of this Exhibit D, references to "controller" and "processor" under this Exhibit D will be replaced with any corresponding terms with analogous meanings defined under applicable laws (for example, "business" and "service provider" under the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act of 2020).

 **2. IDV SERVICES** 

&nbsp;&nbsp;&nbsp;&nbsp; 2.1. *Access.* Client may use the IDV Services subject to, and only in accordance with, applicable laws, the Agreement (including this Exhibit D), and any agreements between Client and End Users (for clarity, including any privacy policy or terms of service). Additionally, without limiting the foregoing, Client may only use the IDV Services (i) in the normal course of its business to verify the accuracy of information submitted by End Users, and (ii) to match provided Client Data for screening purposes.

&nbsp;&nbsp;&nbsp;&nbsp; 2.2. *Instructions.* To enable Plaid to provide the IDV Services to Client, Client will instruct Plaid via the Dashboard and as further specified in this Exhibit D. In accordance with this Exhibit D, such instructions will include direction to Plaid regarding: (i) the applicable Client Data that will be processed by the IDV Services on behalf of Client and its End Users and when such processingwill occur; and (ii) the End Users who will provide Client Data through the IDV Services.

&nbsp;&nbsp;&nbsp;&nbsp; 2.3. *Consent*. Client represents and warrants to Plaid that Client will provide all notices to and obtain all consents from the applicable End Users, each, as required under applicable law, regulations, and third-party agreements, to enable (i) Client to disclose, use, and otherwise

&nbsp;&nbsp;&nbsp;&nbsp; process Client Data, as applicable, and (ii) Plaid (inclusive of Plaid's affiliates, subcontractors or service providers, and data sources) to collect, use, disclose, and otherwise process Client Data as needed for Plaid to provide the IDV Services or exercise Plaid's rights under this Exhibit D. Client will maintain records sufficient to demonstrate its compliance with this Section 2.3 and will promptly provide such records to Plaid upon request.

&nbsp;&nbsp;&nbsp;&nbsp; 2.4. *Client Data*. Client grants to Plaid and its affiliates, including BlockScore, LLC, a limited and non-exclusive license to copy, store, configure, display, back test, transmit, and otherwise process Client Data as necessary to provide the IDV Services and develop enhancements in accordance with the end user privacy statement available at https://cognitohq.com/privacystatement, as applicable. Without limiting the immediately prior sentence, Plaid will: (i) use Client Data at the direction of Client; and (ii) disclose Client Data to subcontractors subject to restrictions similar to those of Plaid under this Exhibit D. Notwithstanding anything to the contrary, Plaid may disclose Client Data as required by law or court order; provided that, to the extent legally permissible, Plaid will promptly notify Client of such requirement and use best efforts to limit such disclosure. Subject to the foregoing in this paragraph, Client will retain its existing rights in and to Client Data and, as between the parties, will retain ownership of Client Data. For the avoidance of doubt and notwithstanding the other provisions of this Exhibit D, the parties hereto acknowledge and agree that Plaid may use, reproduce, disclose, or otherwise exploit de-identified or anonymized Client Data (i.e., Client Data from which PII has been removed, de-identified, or anonymized) in any way in Plaid's sole discretion. Plaid reserves the right to provide the IDV Services, through use of its subcontractors and/or affiliates (including, for clarity, its subcontractor and affiliate BlockScore, LLC) or otherwise, worldwide.

 **3. COMPLIANCE** 

&nbsp;&nbsp;&nbsp;&nbsp; 3.1. *GLBA; DPPA.* Client certifies that all Client's and Permitted Service Providers' uses of, and purposes pertaining to, the IDV Services are and will be in accordance with and solely comprised of, as applicable the uses and purposes: (i) described in Section 6802(e) of GLBA and the United States Federal Trade Commission rules promulgated thereunder, as may be interpreted from time to time by a competent regulatory authority; or (ii) permitted under DPPA.

&nbsp;&nbsp;&nbsp;&nbsp; 3.2. *Processing on Client's Behalf.* Client acknowledges and agrees that, solely with regard to the Client Data processed in relation to the IDV Services: (i) Client will determine the purpose and means by which Client Data is processed; (ii) Plaid will act on Client's instructions with respect to how, what, when, and why Client Data is to be processed by Plaid; and that therefore

&nbsp;&nbsp;&nbsp;&nbsp; (iii) Client will be deemed a data controller with regard to such Client Data; and (iv) Plaid will be deemed a data processor with regard to such Client Data (e.g., for clarity, where Plaid is facilitating watchlist or antifraud screening services). Client will direct applicable End Users to Client's privacy policy for any queries or requests regarding such End Users' rights with respect to, and the processing of, the PII applicable to the IDV Services. For the avoidance of doubt, Client acknowledges and agrees that Client's privacy policy controls with respect to the processing of all PII applicable to the IDV Services and that Client is, and will remain, responsiblefor maintaining and making available any data retention policy or provision regarding Plaid's storage of PII on Client's behalf in relation to Plaid's provision of the IDV Services hereunder. In addition, Plaid and Client may mutually agree upon the retention periods for various types of Client data. Plaid will not: (a) process the PII for any purpose other than as necessary to perform the IDV Services on behalf of the Client; (b) process the PII for a commercial purpose other than providing the IDV Services to the Client; (c) sell any PII, (d) process the PII outside of the direct business relationship between Client and Plaid; or (e) combine the PII with any other personal information Plaid collects (directly or via any third party)other than as expressly permitted for processors under applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp; 3.3. *Details of Processing.* Client controls the types of PII that may be processed in connection with the IDV Services, which may include: name, address, date of birth, phone number, identification documents, and images and video (such as photos or selfies). The duration of processing of PII is for the term of the relevant Order relating to the IDV Services, unless otherwise agreed to by the parties.

&nbsp;&nbsp;&nbsp;&nbsp; 3.4. *FCRA.* Client acknowledges and agrees that Plaid is neither a "consumer reporting agency" nor a "furnisher" of information to consumer reporting agencies under the FCRA andthe Client Data is not a "consumer report" under the FCRA and cannot be used as or in such. Client represents and warrants that it will not, and will not permit or enable any third party to,use the Services or any Client Data as a or as part of a "consumer report" as that term isdefined in the FCRA or otherwise use the Services or any Client Data such that the Services (or any Client Data) would be deemed "consumer reports" under the FCRA.

&nbsp;&nbsp;&nbsp;&nbsp; 3.5. *Client Responsibilities.* Notwithstanding any non-Client technical integration or anything in this Exhibit D or the Agreement to the contrary, Client is solely responsible for its own relationships with End Users, including any related billing matters, technical support, or disputes. Without limiting anything in this Exhibit D or the Agreement, Client will publish and maintain an easily accessible, legally sufficient (i) terms of service regarding each applicable End User's use of the Client's services and (ii) privacy policy, as further discussed in Section 3.2of this Exhibit D. Client will promptly notify Plaid upon making any material changes to such Client terms of service and/or privacy policy. Client is, and will remain, solely responsible and liable for each End User's and each Permitted Service Provider's use of and access to the IDV Services. Client will have sole responsibility for the accuracy, quality, integrity, legality, reliability, and appropriateness of all Client Data, and for verifying the same.

&nbsp;&nbsp;&nbsp;&nbsp; 3.6. *Plaid Responsibilities*. In connection with its processing of any Client Data, Plaid will comply with all obligations applicable to it as a processor under applicable laws and provide the same level of privacy protection as is required by applicable laws. Client reserves the right upon notice to Plaid to take reasonable and appropriate steps to stop and remediate unauthorized use of PII. Plaid will make available to Client all information reasonably necessary to demonstrate its compliance with the obligations in this Exhibit D and applicable laws, to the extent suchinformation is related to the IDV Services.

 **4. DISCLAIMER** 

&nbsp;&nbsp;&nbsp;&nbsp; Plaid makes no warranty with respect to, and disclaims all liability as pertaining to, the accuracy of any data: (i) uploaded to or otherwise provided to or for the IDV Services by or on behalf of Client or End Users; and (ii) provided by, as processed by, or otherwise originating from Plaid or Plaid's data sources in relation to the IDV Services. With respect to the IDV Services, Plaid disclaims all liability for the errors and omissions of Plaid and its data sources.

 **5. SECURITY** 

&nbsp;&nbsp;&nbsp;&nbsp; 5.1. *Plaid InfoSec Program*. Plaid will use commercially reasonable efforts to develop, implement, maintain, and enforce a written information security program ("Plaid InfoSec Program") that contains administrative, technical, and physical controls that are appropriate to Plaid's size and the complexity, nature, and scope of the IDV Services. The Plaid InfoSec Program will be reasonably designed to: (i) ensure the security and confidentiality of Client Data; (ii) protect against any anticipated threats or hazards to the security or integrity of Client Data; and (iii) protect against unauthorized access to or use of Client Data. The Plaid InfoSec Program will comply with all information and data security requirements promulgated by applicable state and federal laws and regulations in the U.S. Plaid will review and test the design and operational effectiveness of the Plaid InfoSec Program at least annually.

&nbsp;&nbsp;&nbsp;&nbsp; Additionally, Plaid will: (a) maintain SSAE No. 18 SOC 2; and (b) upon reasonable request from Client (no more than once per calendar year), provide to Client a copy of the Executive Summary of Plaid's then-current SOC 2 report conducted by a third-party assessor.

&nbsp;&nbsp;&nbsp;&nbsp; 5.2. *Security Incident*. If Plaid becomes aware of any event that: (i) compromises the security, integrity, or confidentiality of PII; and (ii) results in the unauthorized access, use, disclosure, or loss of PII (collectively, a "Security Incident"), then to the extent that such Security Incident occurred on or affects any systems or facilities owned or operated by Plaid, and unless prohibited by applicable law, Plaid will promptly following Plaid becoming aware of such Security Incident: (a) notify Client and reasonably assist Client in satisfying any of its notification obligations imposed under applicable laws in connection with any Security Incident; and (b) investigate and use commercially reasonable efforts to remedy and mitigate the effects of the Security Incident.

 **6. EFFECT OF TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp; Upon termination or expiration of an Order relating to the IDV Services: (i) Client will destroy or return to Plaid all IDV Services documentation provided to Client relating to such Order; (ii) following Plaid's receipt of Client's request in writing, Plaid will delete (rather than return) all Client Data stored on Plaid's servers relating to such Order, unless retention of the Client Data is required under applicable law; and (iii) Client will have thirty (30) days to download any Client Data relating to such Order before Plaid may delete such information. Plaid disclaims all liability pertaining to: (a) Plaid's deletion of such Client Data after such termination or expiration; and (b) Client's use of the IDV Services and Client Data (including, for clarity, any other deletion of Client Data) after such termination or expiration.

 **7. INDEMNITY** 

&nbsp;&nbsp;&nbsp;&nbsp; Client's indemnification obligations in the Agreement are deemed to include: (i) breaches by Client of this Exhibit D; (ii) acts or omissions of Client employees, affiliates, clients, or contractors; (iii) disputes or claims relating to the disclosure or use of Client Data by Client or its Permitted Service Providers.

 **8. MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp; Plaid may update the IDV Services and their relevant documentation from time to time; provided that Plaid will use commercially reasonable efforts to notify Client in the event of material changes to the IDV Services in the manner and to the extent Plaid notifies all of its relevant clients of the same, towards ensuring that such clients may continue to use the IDV Services with minimal interruption.

# **Exhibit E** 

## **"Enrich" Product Specific Provisions** 

#### THE FOLLOWING PROVISIONS WILL ONLY APPLY IF CLIENT USES PLAID'S "ENRICH" PRODUCT.
* 
 1. Use of the Plaid Enrich Services & Input. Client may provide to Plaid certain information in connection with its use of the Enrich Services, including without limitation, transaction descriptions, transaction identifiers, transaction amounts, transaction currency codes, and any other data fields agreed by the parties (all such information, the "Client Input"). Client warrants and will ensure that it provides all notices and obtains all consents required under applicable laws, regulations, and third-party agreements for: (i) Client to share all Client Input with Plaid; and (ii) Plaid to provide the Enrich Services to Client and to otherwise collect, use, and process Input in accordance with Plaid's end user privacy policy (available at https:/

 /www.plaid.com/legal).

 

* 
 2. Enrich Services and Enrich Output. Based upon its processing (including certain standardization and enhancement) of the Client Input in accordance with Plaid's technical documentation, the Enrich Services may generate and return to Client, via the API Package, the Enrich Services output (the "Enrich Output"). The parties acknowledge and agree that the Services include the Enrich Services and the Output includes the Enrich Output.
 

* 
 3. Additional Restrictions. Client will not, and will not enable or assist any third-party to: (i) reverse engineer the Enrich Output; (ii) use the Enrich Output (or any fields therein) in relation to any transaction other than the one to which the relevant Client Input relates, including any similar future transactions; or (iii) download, cache, or otherwise save the merchant logo images provided by Plaid for any purpose. Without limiting the foregoing, Client may store Enrich Output solely to the extent necessary to support Client's internal use of the Enrich Services (e.g., for surfacing transaction data within Client's user experience, delivering spending insights, determining rewards and similar product decision offerings, or for targeted marketing, partnership considerations, and other internal analyses) in accordance with the Agreement.
 

* 
 4. Additional Indemnity. Client's indemnification obligations in the Agreement are deemed to include any breach by (or on behalf of) Client of this Exhibit E.
 

# **Exhibit F** 

## **"Identity Match Add-On" Product Specific Provisions** 
&nbsp;&nbsp;&nbsp;&nbsp; THE FOLLOWING PROVISIONS WILL ONLY APPLY IF CLIENT USES PLAID'S "IDENTITY MATCH ADD-ON" PRODUCT.

&nbsp;&nbsp;&nbsp;&nbsp; Identity Match Add-On. Client may provide (either via the endpoint designated for the service or otherwise) to Plaid certain end user information in connection with its use of Plaid's Identity Match Add-On product, an enhanced feature of Plaid's Identity product, including without limitation, name, phone number, email address, address, and any other data field or label agreed to by the parties (such product, the "Identity Match Add-On Service", and any such end user information, the "Input"). The Services include the Identity Match Add-On Service. Client warrants and will ensure that it provides all notices and obtains all consents required under applicable laws, regulations, and third-party agreements for (a) Client to share all Input with Plaid as a data controller and (b) Plaid to use, collect, retain, and otherwise process Input as a data controller to provide the Identity Match Add-On Service to Client and to develop, improve, and operate Plaid's fraud prevention and detection services. Notwithstanding anything to the contrary, to the extent Plaid has independently obtained broader rights to Input (e.g., directly from end users, through a third party, or under applicable laws or regulations), nothing in this paragraph will limit such broader rights. Client's indemnification obligations under the Agreement are deemed to include any breach by Client of this Exhibit. The parties acknowledge and agree that Input is not the Confidential Information of either party. Capitalized terms used and not otherwise defined in this paragraph have the meanings ascribed to them in the Agreement.

## Ex1A-11

Umer Farooq, Montana (MT) umer.qureshi@hotmail.com June 27, 2025

Board of Directors

LIVE OAK FINANCIAL LLC

3250 Alpine Autumn Austin TX 78744

Re: Consent of Umer Farooq as "Expert" Under Regulation A

Ladies and Gentlemen:

I, umer farooq, am an independent certified public accountant licensed to practice in Montana. I have audited, in accordance with U.S. generally accepted auditing standards, the financial statements of Live Oak Financial LLC as of and for the period ended May 11, 2025, and have issued my report thereon dated June 27, 2025 (the "Audit Report"), which is included in Part II, Item 13 of the Offering Statement on Form 1-A (the "Offering Statement") filed by Live Oak Financial LLC with the Securities and Exchange Commission under Regulation A, Tier 2.

Pursuant to Item 17 of Part III of the Offering Statement, I hereby consent to:

1. The inclusion of my name as the "independent accountant" in the Offering Statement;

2. The reference to my Audit Report in the Offering Statement (including under the captions "Experts" and "Financial Statements"); and

3. The incorporation by reference of my Audit Report and related financial statements into any post-qualification amendment to the Offering Statement.

I hereby affirm that I have no reason to withdraw or revise my Audit Report, and that my consent is provided solely for use in connection with the Offering Statement under Regulation A.

Very truly yours,

Name: Umer Farooq, CPA

Signature: /s/Umer Farooq

License No: PAC-CPAP-LIC-033530

Somerset, Montana

Date: June 27, 2025

------

## Ex1A-2A

![](hazxym8w03_10000000000009f60.jpg)

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![](hazxym8y72_10000000000009f60.jpg)

------

![](hazxym915x_10000000000009f60.jpg)

------

![](hazxym96qt_10000000000009f60.jpg)

------

![](hazxym98bg_10000000000009f60.jpg)

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## Ex1A-12

September 7, 2025

Live Oak Financial

3520 Alpine Autumn

Austin, Texas 78744

Ladies and Gentlemen:

I have acted as counsel for Live Oak Financial LLC, a Texas corporation (the "Company"), in connection with the public offering of $600,000 aggregate principal amount of Borrower Payment Dependent Notes (the "Securities"). The Securities will be purchased and sold through the Company's marketplace, and the Company will be the sole issuer of the Securities. The Securities will be purchased and sold pursuant to the Offering Statement (the "Offering") and other agreements with the Company in the form set forth as an exhibit to the Registration Statement (as defined below). Each Security will be a debt obligation of the Company issued to the applicable purchaser (each, an "Investor") pursuant to a note or similar instrument issued by the Company (each, a "Note"). The payment terms of each Note will reference the performance, payment, prepayment or default of the related loan made by the Company or its affiliate (the "Reference Loan") to a third-party borrower (the "Borrower") as described in Offering documents.

In connection with this opinion, I have considered such questions of law as I have deemed necessary as a basis for the opinions set forth below, and I have examined or otherwise am familiar with originals or copies, certified or otherwise identified to my satisfaction, of the following:

1. The Certificate of Formation

2. Form 1-A, Regulation A Offering Statement (the "Registration Statement")

3. Operating Agreement and its amendments

4. Offering Circular

5. Subscription Agreement

6. Investor Agreement; and

7. Such other documents deemed necessary or appropriate as a basis for the opinions set forth below.

The documents referred to in items (1.) through (6.) above, inclusive, are referred to herein collectively as the "Documents."

In all such examinations, I have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of original and certified documents and the conformity to original or certified documents of all copies submitted to us as certified, conformed, electronic or reproduction copies. As to various questions of fact relevant to the opinion expressed herein, we have relied upon, and assume the accuracy of, the representations and warranties contained in the above documents, certificates and oral or written statements and other information of or from officers or other appropriate representatives of the Company and others and assume compliance on the part of all parties to the above documents with the covenants and agreements contained therein.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have assumed that the issuance and sale of the Securities by the Company will not violate or constitute a default under (i) any agreement or instrument to which the Company is subject, (ii) any law, rule or regulation to which the Company is subject, (iii) any judicial or regulatory order or decree of any governmental authority, or (iv) any consent, approval, license, authorization or validation of, or filing, recording or registration with any governmental authority.

I have further assumed that (i) the Registration Statement and any amendments thereto, when effective under the Securities Act will comply with all applicable laws at the time the Securities are offered or issued as contemplated by the Registration Statement; (ii) an appropriate prospectus supplement relating to the Securities offered thereby has been prepared and filed with the Securities and Exchange Commission (the "Commission") in compliance with the Securities Act and complies with all applicable laws at the time the Securities are offered or issued as contemplated by the Registration Statement; (iii) all Securities will be issued and sold in compliance with the applicable provisions of the Securities Act, as applicable, and the securities or blue sky laws of the state of Texas and in the manner stated in the Registration Statement and the applicable prospectus supplement; and (iv) the agreements relating to Securities being offered have been duly authorized, executed and delivered by the Company and the other parties thereto.

I have further assumed that (i) the Registration Statement and any amendments thereto, when effective under the Securities Act will comply with all applicable laws at the time the Securities are offered or issued as contemplated by the Registration Statement; (ii) an appropriate prospectus supplement relating to the Securities offered thereby has been prepared and filed with the Securities and Exchange Commission (the "Commission") in compliance with the Securities Act and complies with all applicable laws at the time the Securities are offered or issued as contemplated by the Registration Statement; (iii) all Securities will be issued and sold in compliance with the applicable provisions of the Securities Act, as applicable, and the securities or blue sky laws of the state of Texas and in the manner stated in the Registration Statement and the applicable prospectus supplement; and (iv) the agreements relating to Securities being offered have been duly authorized, executed and delivered by the Company and the other parties thereto.

In addition, the opinions hereinafter expressed are subject to the following qualifications and exceptions: (1) the effect of bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws relating to or affecting the rights of creditors generally, including, without limitation, laws relating to fraudulent transfers or conveyances, preferences and equitable subordination; (2) limitations imposed by general principles of equity upon the availability of equitable remedies or the enforcement of provisions of the Securities; and the effect of judicial decisions which have held that certain provisions are unenforceable where their enforcement would violate the implied covenant of good faith and fair dealing, or would be commercially unreasonable, or where a default under the Securities is not material; (3) the enforceability of provisions of the Securities providing for indemnification or exculpation, to the extent such indemnification or exculpation is against public policy; (4) the enforceability of any provision of the Securities which purports to prohibit or restrict a transfer of rights;(5)the enforceability of any provision of the Securities which purports to establish evidentiary standards or to make determinations conclusive or powers absolute; and (6) we express no opinion with

------

respect to the securities, Blue Sky laws or antifraud laws of any state or other jurisdiction of the United States.

Based upon and subject to the foregoing, I am of the opinion that:

The Securities have been duly authorized and when executed, authenticated and delivered by the Company to Investors against payment of the purchase price by the Investors in accordance with the terms of the Documents, will be validly issued and will constitute the valid and binding obligations of the Company, enforceable in accordance with their terms, with the amounts and timing of payments subject to adjustment in accordance with the performance, payment, prepayment or other cash flows of the applicable Reference loan as described in the Documents.

No opinion is expressed as to:

i. the validity, binding effect or enforceability of any provision of the Securities relating to indemnification, contribution or exculpation;

ii. the validity, binding effect or enforceability of any provision of the Securities related to (a) forum selection or submission to jurisdiction (including, without limitation, any waiver of any objection to venue in any court or of any objection that a court is an inconvenient forum) to the extent that the validity, binding effect or enforceability of any such provision is to be determined by any court other than a court of the State of Texas, (b) choice of governing law to the extent that the validity, binding effect or enforceability of any such provision is to be determined by any court other than a court of the State of Texas or a federal district court sitting in the State of Texas, in each case, applying the choice of law principles of the State of Texas, (c) service of process or (d) waiver of any rights to trial by jury;

iii. the validity, binding effect or enforceability of any provision of the Securities specifying that provisions thereof may be modified or waived only in writing, to the extent that an oral agreement or an implied agreement by trade practice or course of conduct has been created that modifies any provision of such agreement;

iv. the validity, binding effect or enforceability of any provision of the Documents containing any purported waiver, release, variation, disclaimer, consent or other agreement of similar effect (all of the foregoing, collectively, a "Waiver") by the Company under any provision of the Documents to the extent limited by provisions of applicable law (including judicial decisions), or to the extent that such a Waiver applies to a right, claim, duty, defense or ground for discharge otherwise existing or occurring as a matter of law (including judicial decisions), except to the extent that such a Waiver is effective under, and is not prohibited by or void or invalid under, provisions of applicable law (including judicial decisions);

v. any provision of the relevant documents purporting to give any person or entity the power to accelerate obligations without any notice; and

vi. any provision of the Documents which may be construed to be in the nature of a penalty.

I hereby consent to the filing of this opinion with the Commission as an exhibit to the Registration Statement. In giving this consent, however, I do not hereby admit that I am within the category of

------

persons whose consent is required under section 7 of the Securities Act or the rules and regulations of the Commission thereunder.

Very truly yours,

SARAH REESE

/s/ Sarah Reese

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## Add

Early "Soft Launch" Marketing Materials (Aug 7-14 2024)

![](hazxyma7b2_100000010000025e0.jpg)

[Script 1]

There's an alternative investment app coming out and no one else is letting you access these incredible asset classes.

Last year the average yield was 17% and as high as 32% better yet you can get started with as little as $50 and it's so simple to access lucrative returns.

Visit crowdcash.cc to learn more.

------

![](hazxymb42n_10000001000002620.jpg)

[Script 2]

Get passive income every month with this new tool this method is for everyone and it only takes $50 to get started.

Crazier yet is the average yield you could see is 17%

See Crowdcash lets you invest in these awesome assets called borrower payment dependent notes and you should visit Crowdcash.cc to learn more.

------

![](hazxymc0e4_10000001000002620.jpg)

[Script 3]

Here's a stupid simple way to make money every month no referrals no courses and no reselling required.

The average yield last year was 17% and as high as 32%

plus you don't have to do anything at all other than sign up.

You only need $50 to get started and trust me you won't find this anywhere else.

Visit Crowdcash.cc to get started today

------

## Part

**An offering statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission. Information contained in this preliminary offering circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Commission is qualified. This preliminary offering circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of such state. The Company may elect to satisfy its obligation to deliver a final offering circular by sending you a notice within two business days after the completion of the Company's sale to you that contains the URL where the final offering circular or the offering statement in which such final offering circular was filed may be obtained.**

**PRELIMINARY OFFERING CIRCULAR DATED Jul 15, 2025**

Amendment No. 2

Live Oak Financial LLC

3520 Alpine Autumn Dr. \| Austin, TX 78744

775.513.5770 \| crowdcash.cc

Live Oak Financial LLC ("LOF") is offering a single class of unsecured borrower payment-dependent notes (the "Notes") in a Tier 2 Reg A offering. Each Note is issued in a Series linked for calculation only to a specific borrower loan; payments come from our general funds. Investors are creditors of LOF only; no direct lending to borrowers and no security interest in loans. Notes tied to the same Reference Loan (a "Series") rank equally and share pro rata in Amounts Due determined in "Debt Securities—Notes—Calculation of Amount Due." APRs are shown on the marketplace and fall within the ranges in "Debt Securities—Notes—Setting Interest Rates." We are offering up to $600,000 on a best-efforts, continuous basis at 100% of principal (minimum $50; $0.01 increments; one "Residual Note" under $50 may round funding). No escrow. Sales begin within 2 days of SEC qualification. The offering will terminate at the earlier of (i) sale of $600,000 of Notes, (ii) one year from qualification, or (iii) earlier termination by the Company. Sales, as a business policy, are limited to Texas residents.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Price to Public | Underwriting Discount & Commissions | Proceeds to Issuer | Proceeds to Other Persons |
| Per Note | 100% of principal amount (variable; $50 minimum) | $0 | $100% of principal amount (variable; $50 minimum) | $0 |
| Total Minimum | $0 | $0 | $0 | $0 |
| Total Maximum | $600000 | $0 | $600000 | $0 |

---

Footnotes:

• We expect to incur $4,170 of offering expenses (legal $1,000; audit $2,500; state notice/registration fees $670), paid from operating cash; no underwriting discounts or commissions and no finder's fees will be paid.

• We will not place investor funds in escrow. We intend to use 100% of Note proceeds to fund borrower loan originations; offering expenses are paid from operating cash (see Plan of Distribution—Fees and Expenses and Use of Proceeds).

**THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD PURCHASE ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. SEE "RISK FACTORS" BEGINNING ON PAGE 5.**

**The United States Securities and Exchange Commission does not pass upon the merits of or give its approval to any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering circular or other solicitation materials. These securities are offered pursuant to an exemption from registration with the Commission; however, the Commission has not made an independent determination that the securities offered are exempt from registration.**

------

**EXPLANATORY NOTE**

Pre-Qualification Amendment No. 2 is being filed to correct non-substantive pagination and cross-reference errors in the Offering Circular (Part II) and to update the Exhibit Index (Part III). No other changes have been made to the Offering Statement. The exhibits listed in Part III are re-attached for convenience and are identical to the versions filed with Pre-Qualification Amendment No. 1.

------

**Table of Contents**

[Summary of Offering 4](#__RefHeading___Toc8162_3715479615)

[Cautionary Note Regarding Forward-Looking Statements 5](#__RefHeading___Toc41371_3502522974)

[Risk Factors 5](#__RefHeading___Toc41702_3197363871)

[Securities Being Offered 29](#__RefHeading___Toc8186_3715479615)

[Debt Securities—Notes 30](#__RefHeading___Toc8188_3715479615)

[Plan of Distribution 41](#__RefHeading___Toc8166_3715479615)

[How the Platform Marketplace Works 50](#__RefHeading___Toc95386_3197363871)

[Investor Eligibility and Financial Suitability Requirements 52](#__RefHeading___Toc68775_3197363871)

[Use of Proceeds 55](#__RefHeading___Toc8168_3715479615)

[Description of Business 56](#__RefHeading___Toc8170_3715479615)

[Description of Property 63](#__RefHeading___Toc8172_3715479615)

[Management's Discussion and Analysis of Financial Condition and Results of Operations 63](#__RefHeading___Toc8174_3715479615)

[Directors, Executive Officers and Significant Employees 67](#__RefHeading___Toc8178_3715479615)

[Security Ownership of Management and Certain Securityholders 69](#__RefHeading___Toc8182_3715479615)

[Interest of Management and Others in Certain Transactions 69](#__RefHeading___Toc8184_3715479615)

[Financial Statements 71](#__RefHeading___Toc8190_3715479615)

[PART III - EXHIBITS 78](#part-iii)

[SIGNATURES 79](#signatures)

------

# **Summary of Offering** 
Upon qualification of this Tier 2 offering under Regulation A, Live Oak Financial LLC ("LOF," the "Company," "we," "our") will operate the "Crowdcash" online credit marketplace platform (the "Platform") at crowdcash.cc through which it will originate unsecured consumer loans (the "Borrower Loans") and will offer Borrower Payment Dependent Notes (the "Notes"). All Note payments come from LOF's general funds; loan cashflows only determine the "Amount Due." See "Description of Notes—Calculation of Amount Due" and "Debt Securities—Notes—Covenants and Defaults—Payment Covenant."

LOF expects to offer the Notes on a continuous, best-efforts basis in variable denominations with a $50 minimum (A single Residual Note under $50 may be used to fund 100% of a listing), up to $600,000 aggregate principal amount. The offering will commence within two calendar days after qualification and thereafter proceed on a continuous basis; we reasonably expect to offer and sell the Notes within one year of initial qualification and will remain current in our Tier 2 reporting while sales are made.

Each sale occurs only in connection with a posted Borrower Loan listing on the Platform; we do not accept unmatched orders. In the offering, LOF acts as issuer, dealer, and servicer of the Notes and earns origination and servicing fees on Borrower Loans; no underwriting spread is charged on Note sales. On each Note Payment Date LOF pays the Amount Due from its general funds, which is calculated by reference to cash applied to the corresponding Reference Loan during the applicable period as described under "Description of Notes—Calculation of Amount Due". All Notes constitute a single class with identical rights and covenants; differences among Notes relate only to the stated interest rate and amortization profile, which are disclosed at listing and correspond to the terms of the applicable Reference Loan for calculation purposes.

Orders are accepted only if a listing funds 100% within a five-day window; settlement follows our standard ACH timetable. See "Plan of Distribution—Procedures for Subscribing" and "Plan of Distribution—Delay in Payment of Proceeds." The Platform verifies borrower identity and bank information; Borrower Loans are unsecured and are not collateralized. Investors fund individual Notes through LOF's website and are unsecured creditors of LOF. Investors bear the risk that the Amount Due on their Notes may be variable (including zero) based on the performance of the Reference Loan, and they also bear issuer credit risk. LOF will make limited repurchase or indemnification commitments only for verified identity-theft defaults, risk-rating failures, or Auto-Invest errors, as described under "Limited Repurchase and Indemnification Policy." Notes are expected to mature generally in line with their associated Reference Loans and are not listed on any exchange; investors should plan to hold to maturity.

Collections are commingled with LOF operating funds (no lockboxes). See "Risk Factors—Commingling/Bankruptcy risk" and "Debt Securities—Notes—Covenants and Defaults—Payment Covenant."

As of the date of this Offering Circular, and prior to qualification of this offering, LOF has not originated any loans, issued any Notes, opened investor accounts, accepted subscriptions, conducted lending or loan-servicing activities, or engaged in any securities sales. Activities to date have been limited to organizational matters, platform development, vendor onboarding, and regulatory preparations.

------

# **Cautionary Note Regarding Forward-Looking Statements** 
This Offering Circular contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. The forward-looking statements include information concerning our possible or assumed future results of operations and expenses, business strategies and plans, competitive position, business environment, and potential growth opportunities. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "seeks," "should," "will," "would," or similar expressions and the negatives of those terms.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Those risks include those described in "Risk Factors" and elsewhere in this Offering Circular. Given these uncertainties, you should not place undue reliance on any forward-looking statements in this Offering Circular. Also, forward-looking statements represent our beliefs and assumptions only as of the date of this Offering Circular. You should read this Offering Circular and the documents that we have filed as exhibits to the Form 1-A of which this Offering Circular is a part, completely and with the understanding that our actual future results may be materially different from what we expect.

Any forward-looking statement made by us in this Offering Circular speaks only as of the date on which it is made. Except as required by law, we disclaim any obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward- looking statements, even if new information becomes available in the future. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements.

# **Risk Factors** 
*The Notes involve a high degree of risk. You should carefully consider the risks described below before making a decision to invest in the Notes. If any of the following risks actually occurs, you might lose all or part of your investment in the Notes. Please read the section carefully before making an investment decision, you should carefully consider these risks. While we believe the risks and uncertainties described below include all material risks currently known by us, it is possible that these may not be the only ones we face. If any of the risks actually occur, our business, financial condition, operating results and prospects could be materially and adversely affected.*

# **RISKS RELATED TO BORROWER DEFAULT** 
***The Notes are risky and speculative investments suitable only for investors of adequate financial means.***

Investors should be aware that the Notes offered through our marketplace are risky and speculative investments. The Notes are unsecured corporate debt obligations of LOF. All payments on the Notes are made from LOF's general funds. Amount Due on a Note for any period are calculated by reference to amounts applied to principal and interest on the related Reference Loan; if the calculation yields no Amount Due for a period, no payment is owed for that period. Notes are suitable only for investors of adequate financial means. If an investor cannot afford to lose the entire amount of such investor's investment in the Notes, the investor should not invest in the Notes.

***Borrower performance and timing risk may reduce the Amount Due on your Notes—including to zero.***

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount Due on the Notes are calculated by reference to the performance of the related Borrower Loan (the "Reference Loan"). If a borrower does not make scheduled payments (or pays less than scheduled), the Amount Due for the corresponding period may be reduced proportionally, and may be zero. This reflects calculation mechanics only; payments to investors are made by LOF from its general funds in the Amount Due, if any, for each Note Payment Date.

***Payments to Noteholders are made by LOF from general funds; borrower remittances affect the calculation, not the source, of payments.***

LOF does not transfer funds directly from borrowers to investors. Borrower remittances are received by or for LOF and deposited into LOF's general operating accounts. On each Note Payment Date, LOF pays Noteholders from its general funds the Amount Due for the period, which is calculated by reference to amounts applied to principal and interest on the Reference Loan (net of applicable fees and permitted costs, as described below). If the calculation for a period results in no Amount Due, no payment will be made for that period, even if LOF has other funds available.

***Servicing, reversals, and third-party costs can reduce the Amount Due.***

We apply a servicing fee to interest and may incur third-party costs (for example, non-sufficient funds fees, legal fees, court costs, and collection-agency fees). Collection agencies may retain up to 50% of recovered amounts, in addition to legal and transaction fees. We also may reverse prior applications of principal or interest for returned items or adjustments. The Amount Due for a period is determined after reflecting these fees, costs, and reversals, which may materially reduce (or eliminate) the Amount Due.

***Borrower Loans are unsecured; investors have no recourse to borrowers and must rely on LOF's servicing (or a collection agency) for recoveries.***

Borrower Loans are unsecured obligations of borrowers and are not guaranteed or insured by LOF or any third party. Investors are unsecured creditors of LOF, not the borrowers, and cannot pursue borrowers or obtain borrower identities to seek payment. We or a third-party collection agency will pursue commercially reasonable collection efforts; referral to an outside agency within five business days after a loan becomes 30 days past due constitutes reasonable efforts under our policy. There is no assurance we will recover any portion of a non-performing Borrower Loan; consequently, Amount Due on your Note may be less than expected or zero, and you may not recover your purchase price.

***Underperformance of the Reference Loan affects the Amount Due, not whether LOF is in default.***

A missed or reduced borrower payment does not, by itself, constitute a default by LOF on the Note. LOF is in payment default only if it fails to pay the Amount Due (as calculated for the applicable period) within the stated grace period or upon other customary default triggers. When the calculation yields no Amount Due, no payment is owed and no default occurs.

***Maturity extensions and post-maturity collections may not benefit Noteholders.***

Each Note will mature on its initial maturity date unless amounts in respect of the Reference Loan remain due and payable to LOF at that time; in such case, the Note's maturity will be automatically extended by one year to the final maturity date. If amounts on the Reference Loan remain outstanding after the final maturity date, LOF has no further obligation to make payments on the related Notes, even if LOF later receives borrower payments. Any such post-final-maturity receipts may not result in additional Amount Due or payments to Noteholders.

***You may not receive expected principal and interest and could lose your entire investment.***

If payments on the Reference Loan become overdue or are not made, you may not receive some or all of the principal and interest you expected, and you may lose all or a substantial portion of your

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investment. In all cases, investors must rely on our servicing and any engaged collection agency; investors are not permitted to collect or attempt to collect any amounts from borrowers.

***Information supplied by applicants may be inaccurate or intentionally false.***

Borrowers may misrepresent their identity, finances or intended use of proceeds; we generally do not verify use of proceeds; investors rely on borrower-provided information and may lose all or part of their investment. Applicants provide information (e.g., stated loan purpose and financial data) included in borrower listings. Applicants may misrepresent such information or their intended use of loan proceeds. Investors should not rely on an applicant's self-reported information such as employment status, or occupation in making investment decisions. We do not verify how proceeds are used and, after funding, we do not confirm use of proceeds. Listings do not disclose borrower identities, and investors cannot independently obtain or verify borrower information before or after purchasing a Note. If a borrower provides false, misleading or inaccurate information, investors may lose part or all of the price paid for a Note. Except as described under "Limited Repurchase and Indemnification Policy," we are not obligated to repurchase or credit any Note or otherwise compensate investors for borrower misrepresentation or fraud.

***Because we alone investigate and decide claims under our Limited Repurchase and Indemnification Policy, our interests may conflict with those of investors.***

We have the exclusive authority to investigate and adjudicate claims under our Limited Repurchase and Indemnification Policy (the "LRIP") and to determine, in our sole discretion, whether a qualifying event has occurred (see "Terms of the Notes—Limited Repurchase and Indemnification Policy"). A determination that a qualifying event has occurred may obligate us to repurchase the related Note(s) (or the underlying Borrower Loan) or to provide limited indemnification/credit to the applicable Note holders; a denial of a claim avoids those costs to us. Because investors rely on us to conduct these investigations and make these determinations, our economic interest in minimizing LRIP payouts creates a significant conflict of interest with investors. The LRIP is limited, subject to evidence requirements and timing parameters, and may be modified prospectively as described in "Terms of the Notes—Limited Repurchase and Indemnification Policy"; investors have no contractual right to audit our investigations or compel a particular outcome.

***Loss rates on the Borrower Loans may increase as a result of economic conditions beyond our control and beyond the control of the borrower.***

Borrower Loan loss rates may be significantly affected by economic downturns or general economic conditions beyond our control and beyond the control of individual borrowers. In particular, loss rates on Borrower Loans may increase due to factors such as prevailing interest rates, the rate of unemployment, the level of consumer confidence, residential real estate values, the value of the U.S. dollar, energy prices, changes in consumer spending, the number of personal bankruptcies, disruptions in the credit markets, natural disasters, pandemics and other factors.

***The Borrower Loans do not restrict borrowers from incurring additional unsecured or secured debt, nor do they impose any financial restrictions on borrowers during the term of the Borrower Loan, which may reduce the likelihood that an investor will receive the full principal and interest payments that such investor expects to receive on a Note.***

If a borrower incurs additional debt after the date a loan listing is posted, the additional debt may impair the ability of that borrower to make payments on their Borrower Loan and, as such, reduce the likelihood that an investor will receive the principal and interest payments that such investor expects to receive on a corresponding Note. Moreover, the additional debt may adversely affect the borrower's creditworthiness generally, and could result in the financial distress, insolvency, or

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bankruptcy of the borrower. To the extent that the borrower has or incurs other indebtedness and cannot pay all of their indebtedness, the borrower may choose to make payments to other creditors, rather than to LOF.

To the extent borrowers incur other indebtedness that is secured, such as a mortgage, a home equity line or an auto loan, the ability of the secured creditors to exercise remedies against the assets of the borrower may impair the borrower's ability to repay the Borrower Loan on which an investor's Note is dependent for payment. Borrowers may also choose to repay obligations under secured indebtedness or other unsecured indebtedness before repaying Borrower Loans because there is no collateral securing the Borrower Loans. An investor will not be notified if a borrower incurs additional debt after the date a loan listing is posted.

***A borrower may request that his or her bank "chargeback" a payment on a Borrower Loan upon which a Note is dependent for payment and request a refund on that payment, resulting in a delinquency on the payment and a possible negative cash balance in an investor's account.***

A borrower chargeback is a process by which a borrower who has made a payment on a Borrower Loan has his or her bank cancel the payment or request a refund of that payment. We generally withhold payments to investors up to three business days after a related borrower payment is initiated. If the chargeback occurs three or more days after the initiation of payment, an investor must rely on us to contest the chargeback if we deem it appropriate. If a borrower successfully processes a chargeback three or more days after initiation of payment, such payment will be deducted from an investor's account, and if such investor has withdrawn funds in the interim, a negative cash balance may result. Amounts received on Borrower Loans corresponding to an investor's Notes payments and deposited into such investor's account are subject to set-off against any negative balance or shortfall in the account.

***Borrowers may not view or treat their obligations to LOF as having the same significance as loans from traditional lending sources.***

The investment return on the Notes depends on borrowers fulfilling their payment obligations in a timely and complete manner under the corresponding Borrower Loan. Borrowers may not view marketplace lending obligations originated through our marketplace as having the same significance as other credit obligations arising under more traditional circumstances. If a borrower neglects their payment obligations on a Borrower Loan upon which payment of an investor's Note is dependent or chooses not to repay their Borrower Loan entirely, such investor may not be able to recover any portion of the investment in a Note.

***In general, the Borrower Loans do not contain any cross-default or similar provisions. If a borrower defaults on any of their other debt obligations, our ability to collect on the Borrower Loan on which an investor's Note is dependent for payment may be substantially impaired.***

The Borrower Loans do not contain cross-default provisions. A cross-default provision makes a default under certain debt of a borrower an automatic default on other debt of that borrower. Because the Borrower Loans do not contain cross-default provisions, a Borrower Loan will not be placed automatically in default upon that borrower's default on any of the borrower's other debt obligations. If a borrower defaults on debt obligations owed to a third party and continues to satisfy the payment obligations under the Borrower Loan, the third party may seize the borrower's assets or pursue other legal action against the borrower before the borrower defaults on the Borrower Loan, which may affect our ability to collect from the borrower when or if the Borrower Loan becomes delinquent.

***Borrowers may seek the protection of debtor relief under federal bankruptcy or state insolvency laws, which may result in the nonpayment of an investor's Notes.***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowers may seek protection under federal bankruptcy law or similar laws. If a borrower files for bankruptcy (or becomes the subject of an involuntary petition), a stay will go into effect that will automatically put any pending collection actions on the Borrower Loan on hold and prevent further collection action absent bankruptcy court approval. If we receive notice that a borrower has filed for protection under the federal bankruptcy laws, or has become the subject of an involuntary bankruptcy petition, we will put the borrower's account into a "bankruptcy status." When this occurs, we terminate automatic monthly Automated Clearing House (ACH) debits on the Borrower Loan and we will not undertake collection activity without bankruptcy court approval. Whether any payment will ultimately be made or received on a Borrower Loan after a bankruptcy status is declared depends on the borrower's particular financial situation. In most cases, however, unsecured creditors such as LOF receive nothing, or only a fraction of their outstanding debt and, as a result, an investor who has purchased a corresponding Note may lose all or a substantial portion of the investment.

***Federal law entitles borrowers who enter active military service to an interest rate cap and certain other rights that may inhibit the ability to collect on Borrower Loans and reduce the amount of interest paid on the corresponding Notes.***

Federal law provides borrowers on active military service with rights that may delay or impair our ability to collect on a Borrower Loan corresponding to an investor's Note. The Servicemembers Civil Relief Act ("SCRA") and other similar state laws require that the interest rate on preexisting debts, such as Borrower Loans, be set at no more than 6% while the qualified service member or reservist is on active duty. A holder of a Note that is dependent on such a Borrower Loan for payment will not receive the difference between 6% and the original stated interest rate for the Borrower Loan during any such period. The SCRA also permits courts to stay proceedings and the execution of judgments against service members and reservists on active duty, which may delay recovery on any Borrower Loans in default, and, accordingly, payments on the corresponding Notes.

Beginning October 3, 2016, the Military Lending Act ("MLA") prohibits requiring covered borrowers, which include active military servicemembers and their dependents, to waive the right to legal recourse or to submit to arbitration. This may delay recovery on any relevant Borrower Loans in default, and, accordingly, payments on the corresponding Notes.

If there are any amounts under such a Borrower Loan still due and owing to LOF after the final maturity of the corresponding Notes, LOF will have no further obligation to make payments on such Notes, even if it receives payments on the Borrower Loan after the final maturity of such Notes. In addition, as part of the borrower registration process, we do not request borrowers to confirm if they are qualified service members or reservists within the meaning of the SCRA or the MLA.

***The Federal Trade Commission's Holder in Due Course Rule may substantially impair an investor's ability to recoup the full purchase price of a Note or to receive the interest payments that such investor expects to receive on the Note.***

The Federal Trade Commission's Holder in Due Course Rule, which in certain circumstances permits borrowers to assert any claims and defenses that they would have had against a seller of goods or services obtained with the proceeds of a loan against an originator or subsequent purchaser of the loan, could allow certain borrowers to raise such defenses against LOF to the extent of the outstanding loan balance. If such defenses are successfully raised, LOF will be unable to collect on the loan and it is unlikely that any further payment will be made on the corresponding Notes.

***The death of a borrower may substantially impair an investor's ability to recoup the full purchase price of a Note or to receive the interest payments that such investor expects to receive on the Note.***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a borrower dies with an outstanding Borrower Loan, LOF is required, upon receiving notice of the death, to stop accepting automatic loan payments and to refund any payments that were automatically debited after the borrower's date of death. Though we may seek to work with the executor of the borrower's estate to obtain repayment of the loan, the borrower's estate may not contain sufficient assets to repay the loan, or its executor may prioritize repayment of other creditors. In addition, if a borrower dies near the end of the term of their Borrower Loan, the time required for the probate of the borrower's estate will likely extend beyond the Notes' final maturity date, after which date LOF will cease to have any obligation to make payments on the Notes.

# **RISKS INHERENT IN INVESTING IN THE NOTES** 
***LOF is not obligated to indemnify Note holders or repurchase Notes except in limited circumstances.***

LOF is only obligated to repurchase Notes or indemnify holders of Notes in limited circumstances. These circumstances include if (i) a material payment default under the corresponding Borrower Loan occurs as a result of verifiable identity fraud; (ii) LOF includes a risk rating different from the risk rating we calculated, or we calculate the risk rating incorrectly; or (iii) any errors in Auto Invest cause an investor to purchase a Note from LOF that such investor would not otherwise have purchased or that differs materially from the Note, in which cases LOF also has the option to cure such error. In addition, LOF is not required to repurchase Notes or indemnify holders of Notes if the holder's investment is not realized in whole or in part due to fraud other than verified identity theft, or due to other false or inaccurate statements or omissions of fact in a listing, whether in credit data, borrower representations or similar indicia of borrower intent and ability to repay the loan.

***LOF might incur indemnification and repurchase obligations that exceed its projections, in which case it may not have sufficient liquidity to meet its indemnification and repurchase obligations.***

LOF believes its liquidity will be sufficient to meet its reasonably anticipated indemnification and repurchase obligations. In determining its expected liquidity needs with respect to indemnification and repurchase obligations, LOF considers the history of such obligations incurred by it. Nonetheless, there can be no assurance that if LOF is obligated to repurchase a Note or indemnify a Note holder, that it will be able to meet its repurchase or indemnification obligations. If LOF is unable to meet its indemnification and repurchase obligations with respect to a Note, the investor in such Note may lose all of such investor's investment in the Note.

***If an investor decides to invest through our marketplace and concentrate their investment in a single Note, such investor may increase their risk of borrower defaults.***

The expected return on an investor's investment in Notes depends on the performance of the borrowers under the corresponding Borrower Loans. There are a wide range listings in the marketplace and LOF expects some borrowers to default on their loans. If an investor decides to invest through our marketplace and concentrate his or her investment in a single Note, such investor's entire return will depend on the performance of a single Borrower Loan. For example, if an investor plans to purchase $250 (not in thousands) of Notes, and chooses to invest the entire $250 in a single Note instead of in four $50 (not in thousands) Notes corresponding to the Borrower Loans of four different borrowers, such investor's entire $250 investment will depend on the performance of a single Borrower Loan. Investors may find it desirable to diversify their portfolio in order to reduce the risk that they could lose their entire investment due to a single default, or a small number of defaults. However, diversification does not eliminate the risk that investors may lose some, or all, of their investment in Notes.

***Prepayments of the Reference Loan may materially reduce (or eliminate) future Amount Due and your realized yield; you bear reinvestment risk.***

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Borrowers may prepay all or part of a Borrower Loan at any time without penalty. Prepayments are applied by LOF first to any accrued interest and then to principal (or as otherwise permitted by the loan agreement and servicing policy). Because Amount Due on the Notes are calculated by reference to amounts applied to the related Borrower Loan (the "Reference Loan"), prepayments can reduce future Amount Due, including to zero after a full payoff.

• Full prepayment. If the borrower prepays the entire outstanding balance of the Reference Loan, the Amount Due for the applicable period will include (i) 100% of principal applied to the Reference Loan for that period (not to exceed the then-outstanding Note principal) and (ii) 85% of interest applied to the Reference Loan for that period (net of LOF's 15% servicing fee on interest and any permitted third-party collection costs). After the payoff date, no further Amount Due will accrue on that Note.

• Partial prepayment. If the borrower prepays only a portion of principal, the outstanding Note principal decreases by the corresponding Principal Component paid for that period, and future Interest Components may be lower because they are calculated by reference to the Reference Loan's subsequent interest applications on a smaller balance.

• No make-whole / no prepayment premium. The Reference Loan does not impose a prepayment penalty, and the Notes do not provide any make-whole, yield-maintenance, or premium. As a result, you may not receive all of the interest you originally expected, particularly if a prepayment occurs early (including shortly after Note issuance).

• Servicing fee on interest. LOF's 15% servicing fee applies to interest amounts applied to the Reference Loan including interest paid in connection with a prepayment; no servicing fee applies to principal.

• Reinvestment risk. Following a prepayment, you may be unable to reinvest returned principal at a comparable rate or on comparable terms available at the time you purchased the Note.

• No obligation to advance. LOF has no obligation to advance, guarantee, or otherwise make up interest you do not receive due to a prepayment.

***Prevailing interest rates may change during the term of the Notes. If this occurs, investors may receive less value from the purchase of Notes in comparison to other ways they may invest their money. Additionally, borrowers may prepay their Borrower Loans due to changes in interest rates, and investors may not be able to redeploy the amounts received from prepayments in a way that offers the return expected from the Notes.***

The Borrower Loans on which the Notes are dependent for performance calculations, bear fixed, not floating, rates of interest. If prevailing interest rates increase, the interest rates on Notes investors purchase might be less than the rate of return they could earn if they had invested the purchase price in a different investment.

***We may choose or be required to implement payment and collections relief programs in response to natural disasters, public health emergencies or crises, which may extend or otherwise alter the repayment schedule of Borrower Loans and reduce the expected return on the corresponding Notes.***

As a result of the rising risk of natural disasters such as hurricanes, fires, and earthquakes, public health emergencies, and other crises, we may choose or be required to implement payment and collection relief programs for affected Borrower Loans, which may impact the repayment schedule and terms of Borrower Loans and the returns received on corresponding Notes.

***We commingle borrower payments with our operating funds and do not use lockboxes or trust accounts.***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower remittances are deposited into our general operating accounts; we do not maintain lockbox, trust, custodial, or otherwise segregated accounts for investors, and you have no security interest in those funds or in our assets. We determine and pay amounts due to you from our general funds based on our internal records. If we experience financial distress or enter bankruptcy, undisbursed borrower remittances and amounts held for distribution could be deemed our property and be subject to claims of our creditors, bank set-offs, chargebacks, or freezes. In such circumstances, payments to you could be delayed, reduced, or not made at all. See also 'Description of Notes—General-funds payment covenant' for a detailed explanation of how calculations reference loan activity while payments come from LOF's general funds.

***We may not set appropriate interest rates for Borrower Loans.***

We set interest rates for all Borrower Loans based on borrower financial account data, as well as additional factors such as Borrower Loan terms, the economic environment and competitive conditions. If we set interest rates for Borrower Loans too low, investors may not be compensated appropriately for the level of risk that they are assuming in purchasing Notes, while setting the interest rate too high may increase the risk of non-payment. In either case, a failure by us to set rates appropriately may adversely impact the ability of investors to receive returns on their Notes that are commensurate with the risks they have assumed in acquiring such Notes.

***Underwriting and model risk***

Our approval and pricing decisions rely on borrower-supplied data, bank-link/identity-verification data, and our proprietary risk-rating models. These inputs may be incomplete, inaccurate, or change over time, and our models may misestimate default probability or loss severity. Returns may be adversely affected if approvals or pricing are based on incorrect data or model limitations. Our 'risk-rating failure' remedy is narrow (e.g., miscalculation) and does not cover ordinary credit underperformance.

***The Investor Registration Agreement contains provisions that limit certain legal rights of investors in relation to LOF.***

Investors purchase Notes under an Investor Registration Agreement with LOF that includes issuer-favorable terms. For specified breaches of LOF's representations and warranties about a Note (and certain identity-theft cases), LOF's exclusive remedy, at its election, is to cure, repurchase the Note at the then-outstanding principal, or indemnify the investor; this does not apply to every breach of the Agreement. LOF may, with or without cause and with or without notice, restrict an investor's access to the platform/website, and may terminate for cause (which may occur immediately and with or without notice). Investors must indemnify LOF for losses arising from the investor's material breach, actions or omissions in connection with the platform, and certain third-party claims related to the investor's platform use (the Agreement does not add website/business or trademark-infringement indemnities). Arbitration is optional and requires both parties' election; LOF pays up to $1,000 of filing/administration/arbitrator fees and reimburses investor-paid fees if the investor prevails; each party bears its own attorneys' fees unless law provides otherwise; class or representative proceedings are not permitted; and federal securities-law claims against LOF and its officers/managing members are carved out.

***The Notes will not be listed on any securities exchange and can be held only by registered Live Oak Financial investors. Further, no trading platform for the transfer of Notes exists and there can be no assurance a trading platform for the transfer of Notes will develop in the future. Therefore, investors should be prepared to hold the Notes they purchase until maturity.***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes will not be listed on any securities exchange and all Notes must be held by registered Live Oak Financial investors. This is a platform policy; Reg A securities are not subject to transfer restrictions. We may, in our sole discretion, permit the establishment of another platform on which a secondary market may be made with respect to the Notes, there can be no assurance a trading platform for the Notes will develop in the future. Therefore, Note purchasers must be prepared to hold their Notes to maturity.

***The U.S. federal income tax consequences of an investment in the Notes are uncertain.***

There are no statutory provisions, regulations, published rulings or judicial decisions that directly address the characterization of the Notes or instruments similar to the Notes for U.S. federal income tax purposes. However, although the matter is not free from doubt, LOF treats the Notes as debt instruments that have original issue discount ("OID") for U.S. federal income tax purposes. Where required, LOF intends to file informational returns with the U.S. Internal Revenue Service ("IRS") in accordance with such treatment unless there is a change or clarification in the law, by regulation or otherwise, that would require a different characterization of the Notes. Investors should be aware, however, that the IRS is not bound by LOF's characterization of the Notes and the IRS or a court may take a different position with respect to the Notes' proper characterization. For example, the IRS could determine that, in substance, each investor owns a proportionate interest in the corresponding Borrower Loan for U.S. federal income tax purposes or, for example, the IRS could instead treat the Notes as a different financial instrument (including an equity interest or a derivative financial instrument). Any different characterization could significantly affect the amount, timing, and character of income, gain or loss recognized in respect of a Note. For example, if the Notes are treated as LOF's equity, (i) LOF would be subject to U.S. federal income tax on income, including interest, accrued on the corresponding Borrower Loans but would not be entitled to deduct interest or OID on the Notes, and (ii) payments on the Notes would be treated by the Note holder for U.S. federal income tax purposes as dividends (that may be ineligible for reduced rates of U.S. federal income taxation or the dividends-received deduction) to the extent of LOF's earnings and profits as computed for U.S. federal income tax purposes. A different characterization may significantly reduce the amount available to pay interest on the Notes. Investors are strongly advised to consult their own tax advisor regarding the U.S. federal, state, local and non-U.S. tax consequences of the purchase, ownership, and disposition of the Notes (including any possible differing treatments of the Notes).

***LOF's ability to pay principal and interest on a Note may be affected by its ability to match the timing of its income and deductions for U.S. federal income tax purposes.***

Investors should be aware that LOF's ability to pay principal and interest on a Note may be affected by its ability, for U.S. federal income tax purposes, to match the timing of income it receives from a corresponding Borrower Loan that it holds and the timing of deductions that it may be entitled to in respect of payments made on the Notes that it issues. For example, if the Notes are treated as contingent payment debt instruments for U.S. federal income tax purposes but the corresponding Borrower Loans are not, there could be a potential mismatch in the timing of LOF's income and deductions for U.S. federal income tax purposes, and LOF's resulting tax liabilities could affect its ability to make payments on the Notes.

***Company participation, allocation discretion, and servicing judgments create actual and potential conflicts of interest; our interests may diverge from yours.***

We (including officers and employees) may purchase Notes offered on the Platform and may choose not to offer Notes corresponding to certain Borrower Loans that we originate, retaining those loans (or related Notes) for our own account. These practices present actual and potential conflicts of interest, including:

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• <u>Funding & fee incentives.</u> Our participation in a listing can help the listing reach 100% funding faster (or at all), which enables us to earn origination and servicing fees that we would not earn if the listing failed to fund.

• <u>Allocation & adverse selection.</u> Because we control whether to offer Notes tied to a particular Borrower Loan, we could retain loans (or Notes) we view as more attractive and offer others to investors, which could adversely affect investor outcomes.

• <u>Information asymmetry.</u> Although we intend to participate on the same terms and based on the same information provided to all investors, we originate and service the Borrower Loans and may develop insights not fully captured in the listing materials.

• <u>Servicing & workout discretion.</u> We determine charge-offs, modifications, extensions, litigation, and sales of charged-off accounts. When we also hold Notes, our servicing decisions may benefit us (e.g., timing of charge-offs, whether to settle or litigate) at your expense.

• <u>Priority & process.</u> Our own purchases could compete with investor orders, including Auto-Invest allocations, and may affect which listings fund.

• <u>Residual economics.</u> We retain a servicing fee on interest and may incur/recoup third-party collection costs; these economics may incentivize actions that are not aligned with maximizing your returns on a given Note.

We have adopted the following policies designed to address these conflicts, though they will not eliminate them:

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| | |
|:---|:---|
| • | <u>Same terms; same info.</u> Any Company purchases of Notes will be at the same price and terms as offered to investors, based on the same listing information. |
| • | <u>Participation cap.</u> Company participation in any Notes will be capped at 49% of the Reference Loan's principal. |
| • | <u>Transparent disclosure.</u> We will disclose Company participation for each Reference Loan on the listing page. |
| • | <u>Allocation policy.</u> We will apply a neutral allocation for overlapping Auto-Invest and Company orders and will not give Company orders priority over investor orders. |
| • | <u>Servicing decisions and compensation alignment</u> Servicing and workout actions (including timing of charge-offs, extensions, settlements, litigation, and sales) are made in accordance with the loan documents and uniform platform procedures and are not based on LOF's own investment in any Notes. Personnel who make or approve servicing decisions are not compensated based on LOF's holdings or the performance of any particular Note, and any borrower modification is applied pro rata across all Notes in the affected Series. |
|  | <u>Loan/Note retention policy.</u> We will not decide whether to offer Notes for a particular Borrower Loan based on expected performance or material non-public information. We will offer Notes for all Borrower Loans that meet our listing eligibility criteria except where one of the following applies: (i) regulatory or platform limits prohibit or restrict an offering (e.g., offering/borrower caps, state restrictions); (ii) the loan is not an unsecured personal loan (the only loan type currently offered on the Platform); (iii) the loan is a privately negotiated loan between LOF and a specified counterparty and not intended for listing; or (iv) the loan's terms are outside our current scope (term 2–24 months; principal $250–$5,000). We disclose any Company participation for each Series and cap Company/affiliate participation at 49% of Reference Loan principal. If operational capacity constraints prevent us from listing otherwise- |

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eligible loans, we will apply a neutral, non-performance-based method to allocate capacity and will not prioritize Company orders over investor orders.

Despite these measures, these conflicts still exist and could materially and adversely affect your returns. You should assume that we may act in our own interest where permitted.

# **RISKS RELATED TO LOF, OUR MARKETPLACE AND OUR ABILITY TO SERVICE THE NOTES** 
***Key-person risk; We depend heavily on a single executive; the loss of this individual—or limits on their time—could materially harm our business and your investment.***

Our day-to-day operations, including borrower underwriting, platform oversight, compliance, financial reporting, and servicing, are concentrated in one executive and we currently have no employees. We do not maintain a long-term employment agreement or key-person insurance. If this individual were to become unavailable (whether by death, disability, resignation, or other reasons), or if their capacity were constrained, we could experience delays, errors, or interruptions in originating Borrower Loans, maintaining our platform, calculating and remitting Amount Due on the Notes, preparing financial statements, and meeting legal and regulatory obligations. Recruiting and onboarding qualified replacements or contractors could be difficult, costly, and time-consuming, and there can be no assurance we would be able to do so on acceptable terms or at all. Any of the foregoing could materially and adversely affect our business, financial condition, results of operations, and ability to meet our obligations on the Notes.

***A decline in economic conditions may adversely affect our customers, which may negatively impact our business and results of operations.***

As a lending marketplace, we believe our customers are highly susceptible to uncertainties and negative trends, real or perceived, in the markets driven by, among other factors, general economic conditions in the United States and abroad. These external economic conditions and resulting trends or uncertainties could adversely impact our customers' ability or desire to participate in our marketplace as borrowers or investors, and consequently could negatively affect our business and results of operations.

***Bankruptcy or insolvency of LOF could delay, reduce, or eliminate payments on the Notes; recoveries may be materially less than the Amount Due and could be zero.***

Although LOF is operated with corporate formalities intended to reduce the likelihood of a bankruptcy or similar proceeding, there is no assurance such a proceeding will not occur. If LOF were to become subject to bankruptcy or similar proceedings, payments on the Notes could be limited, suspended, or stopped due to the automatic stay and other court orders, and any recovery could be substantially delayed and significantly less than the Amount Due (as defined under "Description of Notes—Calculation of Amount Due"). Noteholders are general unsecured creditors of LOF and would share pari passu with LOF's other general unsecured creditors after satisfaction of any senior claims and administrative expenses. Even if borrowers continue to remit payments on Borrower Loans, Noteholder recoveries in a bankruptcy may bear no relationship to Reference Loan performance.

***Corporate safeguards do not make LOF bankruptcy-remote; governance features may reduce—but cannot eliminate—insolvency risk.***

LOF's limited liability company agreement includes governance features (e.g., independent managing member consent for voluntary bankruptcy, limitations on certain activities) designed to reduce insolvency risk. These measures do not make LOF bankruptcy-remote and cannot prevent involuntary filings, unexpected liabilities, adverse operating results, or other events that could lead to

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insolvency. There is no guarantee that fee income or other revenues will be sufficient to meet LOF's obligations. LOF does not grant Noteholders any lien or pledge over Borrower Loans, borrower remittances, or LOF bank accounts. If LOF enters bankruptcy, its assets—including Borrower Loans and cash in LOF's general operating accounts—would become property of the bankruptcy estate and available to satisfy creditor claims in accordance with applicable law.

***Borrower behavior and servicing during an LOF bankruptcy could adversely affect Amount Due and timing of payments.***

If LOF enters bankruptcy, some borrowers may delay or suspend remittances due to confusion or uncertainty, even without a legal right to do so. Servicing transitions, system freezes, or court restrictions could interrupt or slow normal collections and application of payments, which may reduce the Amount Due on Notes and delay distributions to Noteholders. Court orders may restrict LOF from making any distributions to Noteholders unless and until authorized.

***Post-petition interest on unsecured Notes may not be allowed; allowed claims may be limited to principal and pre-petition accrued amounts.***

In bankruptcy, post-petition interest on unsecured claims is generally not allowed. If Noteholders receive a distribution, it may be limited to principal and any interest accrued only up to the bankruptcy filing date (and, depending on the proceeding, possibly less), with no accrual thereafter even if the case lasts months or years. As a result, the total amount distributed to a Noteholder could be substantially less than the Amount Due that would have accrued if no bankruptcy had occurred.

***Noteholders have no priority or direct rights in Borrower Loans or remittances; undisbursed borrower payments and LOF cash may be treated as estate property.***

The Notes are unsecured corporate obligations of LOF only. Noteholders have no lien, security interest, ownership interest, or trust claim in any Borrower Loan, any borrower remittances, or any LOF bank account. Borrower remittances are deposited into LOF's general operating accounts. If LOF's bankruptcy is commenced before LOF disburses amounts to Noteholders, undisbursed funds (including recent borrower remittances) may be treated as property of the estate and may be subject to competing claims of other creditors, court-ordered cash management restrictions, or adequate-protection arrangements. Senior secured creditors (if any in the future) or providers of debtor-in-possession financing may have priority over LOF's cash and other assets, further reducing recoveries available to Noteholders.

***Access to funds during a bankruptcy may require court approval; delays are likely and outcomes are uncertain.***

Administration of LOF's cash and operations during bankruptcy will be controlled by the debtor-in-possession or a trustee, subject to court oversight. Noteholders may need a court order granting relief from the automatic stay or authorizing distributions before any payments can be made. Obtaining such relief can be time-consuming and uncertain, and courts have broad equitable powers. There is no assurance that Noteholders will receive any distributions, or that distributions—if authorized—will be timely.

***Repurchase and indemnification rights may be stayed or recharacterized as unsecured claims; specific performance may be unavailable.***

Any Noteholder right to require LOF to repurchase a Note or indemnify a holder (e.g., for identity-theft defaults, risk-rating failures, or Auto-Invest errors) will be subject to the automatic stay and may be unenforceable without court approval. Such obligations may be treated as general unsecured claims for damages rather than being specifically enforceable, and any recovery may be

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delayed and cents-on-the-dollar (or none). Ipso facto provisions (i.e., rights triggered solely by bankruptcy) may be limited or unenforceable under applicable law.

***Important clarifications about payment source and Noteholder status in an LOF bankruptcy.***

Payments to Noteholders—when made—are paid by LOF from its general funds in the Amount Due (if any) calculated for a period. Noteholders are creditors of LOF, not of any borrower. They have no right to demand that LOF segregate borrower remittances, maintain Series-Level lockboxes, or pay from a particular asset or account. In a bankruptcy or similar proceeding, these structural features increase the risk that distributions to Noteholders will be delayed, reduced, or eliminated.

***LOF may waive or modify Borrower Loans without Noteholder consent; such actions can reduce the Amount Due (including to zero), change timing of payments, or reduce recoveries.***

LOF is obligated to use commercially reasonable efforts to service and collect Borrower Loans in accordance with industry standards. Subject to that obligation, LOF may, without Noteholder consent:

• Non-material changes: waive or modify any non-material term, consent to temporary forbearance, or grant other non-material indulgences.

• Material changes in distress: if a Borrower Loan is in default, a default is reasonably foreseeable, or a modification is otherwise consistent with our servicing standard, waive or modify a material term, accept a discounted payoff or settlement, extend or re-age a loan, capitalize interest, reduce the interest rate, change payment schedules, or take similar actions if we reasonably and prudently determine the action will not be materially adverse to the interests of the affected Noteholders.

Any such action may reduce or eliminate the Amount Due on the corresponding Notes for one or more periods, delay timing of payments, and/or reduce recoveries (for example, through reduced rates, extended terms, or discounted settlements). Charged-off loans may be sold; sale proceeds, if any, are applied under our policies and may be significantly less than contractual amounts. We will notify affected Noteholders of material modifications or charge-offs through their account information, statements, or platform notices; however, we are not required to seek or obtain Noteholder approval. There can be no assurance that we will collect contractual principal or interest or that charged-off loans can be sold on favorable terms; regulatory or business considerations may further constrain servicing actions.

***When LOF hold Notes, our servicing decisions may present conflicts of interest and could adversely affect your returns.***

LOF (officers or employees) may purchase and hold Notes. When we are both the issuer/servicer and a holder of Notes, our economic interests may diverge from yours, and our servicing decisions may favor outcomes that benefit us (or reduce our risk) even if those outcomes reduce or delay the Amount Due on your Notes. Examples include:

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| | |
|:---|:---|
| • | <u>Workout and modification choices.</u> We control charge-offs, extensions, re-aging, interest-rate reductions, capitalization of interest, discounted payoffs/settlements, forbearances, and the decision to litigate or sell accounts. These actions can reduce or eliminate Amount Due, extend timing, or change recovery profiles on affected Notes. |
|  | <u>Application of payments & fee incentives.</u> We retain a 15% servicing fee on interest (no fee on principal) and may retain or pass through certain fees (e.g., late fees) as described under "Servicing & Collections." This creates an incentive, in some circumstances, to favor interest- |

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| | |
|:---|:---|
|  | accruing outcomes (e.g., extensions) over faster principal recovery, or to impose/waive fees in ways that may not align with maximizing your returns. |
| • | <u>Timing of charge-offs and sales.</u> We determine when to charge off and whether/when to sell charged-off accounts. Collection agencies may keep up to 50% of recoveries and legal/transaction fees, which we decide to incur or avoid. Our own Note holdings could influence these choices and the price or timing of any sale of charged-off accounts. |
| • | <u>Prioritization and resource allocation.</u> We allocate servicing resources across all loans and Notes. We may implicitly prioritize accounts in which LOF hold Notes, which can disadvantage other Notes. |
| • | <u>Information asymmetry.</u> As originator and servicer, we may possess servicing insights not fully reflected in listing materials or investor dashboards. While we intend to participate on the same terms and information available to other investors, our ongoing access to non-public servicing information can still create a conflict. |
| • | <u>No Noteholder consent rights.</u> You do not have consent or veto rights over servicing actions. We will notify affected Noteholders of material modifications or charge-offs through account statements or platform notices, but we are not required to seek or obtain Noteholder approval. |

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***We may incur additional indebtedness—including secured or senior obligations—and existing Operating Agreement limits may be amended or waived without Noteholder consent; additional debt could reduce funds available to pay Amount Due.***

The Notes do not contain financial maintenance covenants or negative covenants restricting our ability to incur debt. Our Operating Agreement currently includes a Limitation on Additional Indebtedness that (i) states any additional indebtedness ("New Debt") shall be junior and subordinate in right of payment to all Borrower-Payment-Dependent Notes, and (ii) permits New Debt only if, on a pro forma basis, our Fixed-Charge Coverage Ratio (FCCR) for the most recent trailing twelve-month period is at least 1.0, as certified by our Chief Financial Officer (or Treasurer). These provisions have important limitations:

• <u>Amendment/waiver risk.</u> The Operating Agreement provision may be amended, waived, or eliminated without Noteholder consent, potentially permitting us to incur indebtedness that is not subordinated to the Notes or to incur indebtedness without satisfying the FCCR test.

• <u>Not binding on lenders.</u> Subordination language in our Operating Agreement does not bind third-party lenders unless a separate, executed subordination agreement is obtained. Absent such an agreement, New Debt may rank pari passu with, or senior to, the Notes.

• <u>Secured debt, liens, and priming.</u> We may incur secured New Debt and grant liens on our assets (including cash, accounts, intellectual property, or servicing rights). In a restructuring, debtor-in-possession financing and adequate-protection or priming orders may give new or existing secured creditors priority over our cash and assets, ahead of the Notes.

• <u>Bankruptcy and priority claims.</u> In a receivership or bankruptcy, secured creditors, debtor-in-possession lenders, administrative expenses, taxes, wages, and other priority claims may be paid before unsecured creditors regardless of any Operating Agreement provision.

• <u>FCCR sensitivity and discretion.</u> FCCR relies on EBITDA and other defined terms that involve estimates and judgment and may be satisfied even when our liquidity is limited. The test applies "for primary business purposes," a broad standard. The CFO (or Treasurer) certificate is internal and may not be audited.

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<u>Cash-flow impact and covenants.</u> Additional debt increases fixed charges and may impose operational covenants that constrain our business, reduce cash available for operations, and reduce or delay our ability to pay Amount Due on the Notes.<br>

Even if the Operating Agreement provisions remain in place, there is no assurance future lenders will agree to be subordinated to the Notes or that such provisions would be effective in a court-supervised process. The Notes are unsecured corporate obligations of LOF; Amount Due are calculated by reference to performance of the related Reference Loans and are payable by LOF from its general funds. Increased leverage, secured borrowings, or priority claims could materially reduce the funds available to pay Amount Due to Noteholders.

***We may be unable to manage our growth effectively and meet the demands that such growth places on our facilities, employees and infrastructure.***

As the number of borrowers, investors, and Borrower Loans originated through our marketplace increases, LOF may need to scale its facilities, personnel, and infrastructure in order to continue performing its obligations effectively and to accommodate the effects that such growth will have on our servicing and marketplace needs.

LOF may continually add new hardware, update its software and marketplace, expand customer support services, and hire new employees to maintain the operations of our marketplace as well as to satisfy its servicing obligations on the Borrower Loans and Notes. If LOF is unable to increase the capacity of our marketplace and maintain the necessary infrastructure to perform these duties, investors may experience delays in the receipt of payments on their Notes and periodic downtime of our marketplace.

***The market in which we participate is competitive and, if we do not compete effectively, our operating results could be harmed.***

The consumer lending market is competitive and rapidly changing. With the introduction of new technologies and the influx of new entrants, we expect competition to persist and intensify in the future, which could harm our ability to increase volume in our marketplace.

Our principal competitors include banking institutions, credit unions, credit card issuers, mortgage lenders, consumer finance companies, and online lending platforms. Competition could result in reduced volumes, reduced fees, or the failure of our marketplace to achieve or maintain more widespread market acceptance, any of which could harm our business. In addition, in the future we may experience new competition including companies possessing large, existing customer bases, substantial financial resources and established distribution channels. If any of these companies or any major financial institution decides to enter our online lending sector, acquire one of our existing competitors or form a strategic alliance with one of our competitors, our ability to compete effectively could be significantly compromised and our operating results could be harmed.

Most of our current or potential competitors have significantly more financial, technical, marketing and other resources than Live Oak Financial does and may be able to devote greater resources to the development, promotion, sale and support of their marketplaces and distribution channels. Our potential competitors may also have longer operating histories, more extensive customer bases, greater brand recognition and broader customer relationships than we have. These competitors may be better able to develop new products, to respond quickly to new technologies and to undertake more extensive marketing campaigns. Our industry is driven by constant innovation. If we are unable to compete with such companies and meet the need for innovation, the use of our marketplace could stagnate or substantially decline.

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***If Live Oak Financial fails to promote and maintain its brand in a cost-effective manner, it may lose market share and its revenue may decrease.***

To succeed, Live Oak Financial must increase transaction volumes in our marketplace by attracting a large number of borrowers and investors in a cost-effective manner. If we are not able to attract qualified borrowers and sufficient investor purchase commitments, we will not be able to increase our transaction volumes. LOF believes that developing and maintaining awareness of its brand in a cost-effective manner is critical to achieving widespread acceptance of our marketplace and attracting new borrower and investors. Furthermore, we believe that the importance of brand recognition will increase as competition in our industry increases. Successful promotion of our brand will depend largely on the effectiveness of marketing efforts, the user experience on our marketplace and our ability to maintain and defend a differentiated brand identity. These brand promotion activities may not yield increased revenues. If we fail to successfully promote, defend and maintain our brand, including through enforcement actions against infringement of our trademark assets, we may lose our existing users to competitors or be unable to attract new users, which would cause our revenue to decrease and may impair our ability to maintain our marketplace.

***We are subject to extensive federal, state and local regulation that could adversely impact our ability to service the Notes.***

We are subject to extensive federal, state, and local regulation, non-compliance with which could have a negative impact on our ability to service the Notes, provide a trading market for the Notes, or maintain our marketplace.

Additionally, we may be required to obtain and maintain lending licenses, collections licenses, or similar authorizations in various states, each of which has the authority to supervise and examine our activities. If we do not comply with applicable laws, we could face the loss or suspension of these licenses or authorizations, which may adversely affect our ability to perform our servicing obligations or maintain our marketplace.

The Federal Fair Debt Collection Practices Act and similar state debt collection laws regulate debt collection practices by "debt collectors" and prohibit certain practices in the collection of outstanding consumer loans. Some states also impose similar obligations on companies that service accounts, as well as original creditors. While we employ procedures to ensure compliance with these requirements, and obligate third-party collection agencies and other service providers we use to comply with applicable laws in collecting Borrower Loans (and we have sought and will seek to comply with such laws when we undertake direct collection activity in relation to Borrower Loans), it is possible that improper collection practices may occur. Such practices could adversely affect the collectability of particular Borrower Loans originated through our marketplace or could result in financial penalties or operating restrictions being imposed on us, adversely affecting our ability to operate or perform our payment and other obligations.

***If we were deemed a broker-dealer (or our personnel deemed unregistered brokers/agents), we could face penalties or rescission risk.***

We rely on Exchange Act Rule 3a4-1 for our associated persons to participate in offers and sales without broker registration, and we register as an issuer-dealer with agent registrations in Texas. If a regulator were to disagree with our analysis or if our state registrations lapsed, we could be required to halt the offering, register as a broker-dealer (and register individuals as agents), pay fines or penalties, offer rescission to investors, and incur additional compliance costs. Any such outcome could adversely affect our business and financial condition.

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***The proprietary technology that makes operation of our marketplace possible is not fully protected by patents. It may be difficult and costly for LOF to protect its intellectual property rights in relation thereto, or to continue to develop or obtain new technologies, which could adversely affect its ability to operate competitively.***

LOF's ability to maintain our marketplace depends, in part, upon our proprietary technology. We have taken steps to protect our proprietary interests in this technology through confidentiality agreements and other measures and intend to continue to vigorously protect these interests. Despite our best efforts, however, we may not be able to effectively protect the proprietary technology, which could allow competitors to replicate our platform and adversely affect our ability to compete. A third party may attempt to reverse engineer or otherwise obtain and use the proprietary technology without LOF's consent. In addition, our marketplace may inadvertently infringe upon claims of third-party patents, and LOF may face intellectual property challenges from such parties. LOF may not be successful in defending against these challenges or in negotiating agreements to resolve any intellectual property disputes. Furthermore, the technology may become obsolete, and there is no guarantee that LOF will be able to successfully develop, obtain, or use new technologies to adapt our marketplace to compete with other companies. If LOF cannot protect the proprietary technology used in our marketplace from intellectual property challenges, or if our technology becomes obsolete, our ability to maintain the marketplace and perform our servicing obligations could be adversely affected, potentially impairing our ability to continue making payments on the Notes.

***LOF relies on a third-party services to operationally originate Borrower Loans and service the Notes. If LOF is unable to continue utilizing these services, its business and ability to service the Notes may be adversely affected.***

We rely on third-party vendors for account linking, identity verification, payment origination, and risk scoring. We use Plaid for bank-linking and Plaid Transfer to initiate ACH payments (and, where available, RTP®/FedNow®); ACH entries are originated by partner banks that serve as our ODFI through Plaid's connections. An outage, termination, bank partner change, rule change (e.g., NACHA), or a failure of these services could delay funding, increase ACH returns, or impair our ability to service the Notes. We do not control these third parties or the ACH, RTP®, or FedNow® networks.

Because ACH files are submitted through an ODFI (Originating Depository Financial Institution) bank, we are subject to that bank's underwriting, exposure limits, return-rate thresholds, and cut-off times. A reduction in limits or termination by an ODFI could require us to pause or reroute payments until a replacement is implemented

***Operating from a residential location with on-premises systems exposes us to elevated physical, operational, and cybersecurity risks that could disrupt our business.***

Our principal office is a residence, and portions of our computing and data storage infrastructure are located on-premises rather than in redundant third-party facilities. A residential site typically has more limited physical access controls, power redundancy, climate control, and network diversity than commercial or data-center environments. As a result, events such as burglary, vandalism, doxxing/targeted harassment, fire, water damage, power or ISP outages, or other natural or man-made incidents could compromise or render systems unavailable, damage equipment or data, or require us to suspend or curtail operations. Although we maintain information-security and business-continuity procedures, these measures may be insufficient to prevent or remediate an incident, and we may not be able to restore operations promptly or without loss. We could incur significant costs to repair or replace equipment, relocate infrastructure, notify affected persons, and address regulatory or contractual obligations, and we could suffer reputational harm. Any prolonged outage or data loss could impair our

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ability to originate loans, service the Notes, or timely calculate Amount Due, which could materially and adversely affect our business and your investment.

***If the security of LOF's investors' and borrowers' confidential information stored in our systems is breached or otherwise subjected to unauthorized access, users' secure information may be stolen, our reputations may be harmed, and we may be exposed to liability.***

As with any entity with a significant Internet presence, we and certain third party vendors may occasionally experienced cyber-attacks, breaches of our and their systems and other similar incidents, which to-date have not occurred or had any material effect on our business, operations or reputation. Future attacks may occur. Our marketplace stores LOF's investors' and borrowers' bank information and other personally-identifiable sensitive data. Any accidental or willful security breaches or other unauthorized access could cause users' secure information to be stolen and used for criminal purposes. Security breaches or unauthorized access to secure information could also expose us to liability related to the loss of the information, time-consuming and expensive litigation and negative publicity. If security measures are breached because of third-party action, employee or contractor error, malfeasance, faulty password management or otherwise, or if design flaws in the relevant software are exposed and exploited, and, as a result, a third party or disaffected employee obtains unauthorized access to any investors' or borrowers' data, LOF's relationships with its users could be severely damaged, and LOF could incur significant liability. Because techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until they are launched against a target, our hosting facilities may be unable to anticipate these techniques or to implement adequate preventative measures. In addition, many states have enacted laws requiring companies to notify individuals of data security breaches involving their personal data. These mandatory disclosures regarding a security breach are costly to implement and often lead to widespread negative publicity, which may cause our users to lose confidence in the effectiveness of LOF's data security measures. Any security breach, whether actual or perceived, would harm our reputations, and we could lose users.

***Our marketplace may be vulnerable to computer viruses, physical or electronic break-ins and similar disruptions.***

Our marketplace may be vulnerable to computer viruses, physical or electronic break-ins and similar disruptions. If a hacker were able to infiltrate our marketplace, users would be subject to the increased risk of fraud or borrower identity theft and may experience losses on, or delays in the recoupment of amounts owed on, a fraudulently induced purchase of a Note. Additionally, if a hacker were able to access our secure files, they might be able to gain access to users' personal information. While we have taken steps to prevent such activity from affecting our marketplace, if we are unable to prevent such activity, the value of investors' investment in the Notes could be adversely affected.

***Purchasers of Notes will have no control over us and will not be able to influence our corporate matters.***

LOF is not offering and will not offer equity interests in its company. Investors who purchase Notes offered through our marketplace will have no equity interest in either of us and no ability to vote on or influence our decisions. As a result, LOF will continue to have sole control over LOF's governance matters, subject to the presence of LOF's independent managing members, whose consent will be required before LOF can take certain extraordinary actions, and subject to the limitations specified in LOF's organizational documents.

***Live Oak Financial may enter into acquisitions that may be difficult to integrate, fail to achieve their strategic objectives, disrupt our business or divert management attention.***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LOF may enter, and may continue to enter, into acquisitions of businesses, technologies and products intended to complement its existing business, solutions, services and technologies. LOF cannot provide assurance that the acquisitions it has made or will make in the future will provide it with the benefits or achieve the results anticipated in entering into the transaction. Acquisitions are typically accompanied by a number of risks, including: difficulties assimilating and retaining the management and other personnel, culture and operations of the acquired businesses; potential disruption of ongoing business and distraction of management; difficulties in maintaining acceptable standards, controls, procedures and policies, including integrating financial reporting and operating systems, particularly with respect to foreign and/or public subsidiaries; potential loss of existing or acquired strategic operating partners, users and customers following an acquisition; difficulties in integrating acquired technologies and products into our solutions and services; and unexpected costs and expenses resulting from the acquisition, and potential unknown liabilities associated with acquired businesses.

***Events beyond our control may damage our ability to maintain adequate records, maintain our marketplace or perform the servicing obligations. If such events result in a system failure, investors' ability to receive principal and interest payments on the Notes would be substantially harmed.***

If a catastrophic event resulted in a marketplace outage and physical data loss and/or affected our electronic data storage and back-up storage systems, LOF ability to perform its servicing obligations would be materially and adversely affected. Such events include, but are not limited to, fires, earthquakes, terrorist attacks, natural disasters, computer viruses and telecommunications failures. In the event of any marketplace outage or physical data loss described in this paragraph, LOF cannot guarantee that investors would be able to recoup their investment in the Notes.

***Events beyond our control, such as public health emergencies, international conflicts, natural disasters, or other catastrophic events may damage our ability to continue operations without disruptions, including our ability to attract new borrowers and investors, retain existing investors, as well as the ability of existing borrowers to repay their loans. If such events continued for an extended period of time and LOF is unable to attract sufficient investor purchase commitments from new and existing investors, our business and results of operations may be materially adversely affected.***

Our business is subject to the risk that external events, such as public health emergencies, natural disasters, or other catastrophic events, could disrupt our day-to-day operations and impair the activities of borrowers and investors on our marketplace. Unforeseen events, or the prospect of such events, including acts of war (including the invasion of Ukraine by Russia), terrorism and other international conflicts, public health issues including health epidemics or pandemics, and natural disasters such as fires, hurricanes, earthquakes, tornados or other adverse weather and climate conditions, whether occurring in the United States or elsewhere, could disrupt our operations, disrupt the operations of our vendors or result in political or economic instability. These events could reduce demand for our products or make it difficult or impossible to receive services from our vendors. Any such disruption could also damage our reputation, which would further lower investor or borrower demand for our products. We could also be subject to claims or litigation with respect to losses caused by such disruptions. Our property and business interruption insurance may not cover a particular event at all or be sufficient to fully cover our losses.

Additionally, a potential recession or volatility in capital markets as a result of public health emergencies may cause existing investors to cease or significantly decrease their investment in Borrower Loans through our marketplace. For existing borrowers, any resulting work slowdowns or stoppages may directly result in the inability to make loan payments, and may impair investors' ability to receive principal and interest payments on the corresponding Notes. If such events continued for an

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extended period of time and LOF is unable to attract sufficient investor purchase commitments from new and existing investors, our business and results of operations may be materially adversely affected.

***Changes in interest rates could materially and adversely impact our marketplace.***

Various economic factors have resulted in a significant increase in interest rates. Such an increase could have a negative impact on our loan marketplace by decreasing the ability of borrowers to repay their current loan obligations on Borrower Loans and reducing Borrower Loan origination volume. Borrowers may also be more likely to incur additional unsecured or secured debt in an effort to mitigate the effects of the increase in interest rates, which may further reduce their likelihood of repaying Borrower Loans. The increase in interest rates has, and could continue to, also reduce investor demand for Borrower Loans, as investors may have less capital to invest in our Notes and may seek alternative investment options. Although we may adjust our pricing to account for the increase in the cost of funds and increased credit risk and may continue to do so in the future, we may not be able to fully offset higher costs through rate increases, which may affect the ability of our investors to generate the risk adjusted returns expected for their investment.

***Because our Notes are being offered pursuant to Regulation A, the Trust Indenture Act of 1939 does not apply, and you will not have the protections of a TIA-qualified indenture or trustee.***

We expect to offer the Notes in reliance on Regulation A. Under 17 C.F.R. § 260.4a-2, securities issued in accordance with Regulation A are exempt from the Trust Indenture Act of 1939. As a result, the Notes will not be issued under an indenture qualified under the TIA, and we are not required to appoint a TIA-qualified trustee. The rights of Noteholders will therefore be governed solely by the Note and the related subscription or purchase documents, which may afford fewer procedural and substantive protections than those required under a TIA-qualified indenture (for example, trustee reporting, certain default-related protections, and limitations on amendments). Any remedies you may have will depend on, and may be limited by, the terms of those governing documents and applicable law.

***LOF is a development stage company with a limited operating history, which makes an investment in the Notes speculative and risky.***

LOF is a newly established company with a limited operating history, and there is no assurance that we will be able to successfully execute our business model or achieve profitability. As a development stage company, we face numerous challenges, including but not limited to developing and scaling our marketplace, attracting and retaining borrowers and investors, managing operational and regulatory risks, and establishing a stable and reliable revenue stream. Investors should be aware that development stage company are inherently risky investments due to uncertainties around their business prospects, competition, and market acceptance of their products or services. Additionally, LOF may experience unexpected expenses, delays, or other obstacles in the course of its operations, which could adversely affect our financial condition and ability to meet our obligations under the Notes. There is a risk that LOF may not be able to generate sufficient revenue or raise additional capital to continue operating, which could result in the loss of your investment.

***Variability of Amount Due; dependence on Reference Loan performance and our ability to pay—no obligation to advance or guarantee.***

The Notes are unsecured corporate debt obligations of LOF. All payments on the Notes are made by LOF from its general funds in the amounts calculated for each period (the "Amount Due"). Amount Due are calculated by reference to amounts applied to principal and interest on the related Borrower Loan (the "Reference Loan") under "Description of Notes—Calculation of Amount Due." As

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a result, Amount Due may vary from period to period and may be zero, including due to borrower delinquency, default, modification, charge-off, or prepayment on the Reference Loan.

You therefore bear two risks: (i) calculation risk—that the Amount Due for a period is reduced (including to zero) because of Reference Loan performance; and (ii) issuer credit risk—that LOF may fail to pay the Amount Due when due. Underperformance of the Reference Loan by itself is not a default by LOF; LOF is in payment default only if it fails to pay the Amount Due (as calculated) after any applicable grace period or upon other customary default triggers. Conversely, even when a positive Amount Due is calculated, we may be unable to pay it due to our own liquidity, leverage, operational, legal, or other constraints. In that case, you could experience payment delays or losses, and, in an insolvency or bankruptcy of LOF, your recovery could be materially less than the Amount Due (and could be zero).

LOF has no obligation to advance, guarantee, or otherwise make up missed or reduced borrower payments and no make-whole or yield-maintenance applies to the Notes. The Notes are not secured by collateral, not guaranteed or insured by any party, and not obligations of any borrower. Borrower remittances do not flow directly to investors and are deposited into LOF's general operating accounts; you have no lien or security interest in any Borrower Loan, remittance, or LOF account. Your investment may therefore not return your initial principal, and your realized yield may be materially lower than initially expected.

# **RISKS RELATED TO COMPLIANCE AND REGULATION** 
***Our marketplace model may fail to comply with federal and state securities laws, borrower protection laws, such as state lending laws, federal consumer protection laws and the state counterparts to such consumer protection laws. Borrowers may dispute the enforceability of their obligations under borrower or consumer protection laws after collection actions have commenced, or otherwise seek damages under these laws. Investors may attempt to rescind their Note purchases under securities laws. Regulatory agencies and their state counterparts may investigate our compliance, or the compliance of our business partners, with these regulatory obligations, and may take enforcement action with respect to alleged law violations. Compliance with such regulatory regimes is also costly and burdensome.***

Our marketplace model must comply with regulatory regimes applicable to consumer credit transactions as well as with regulatory regimes applicable to securities transactions. Certain state laws generally regulate interest rates and other charges and require certain disclosures, and also require licensing for certain activities. In addition, other state laws, public policy and general principles of equity relating to the protection of consumers, unfair and deceptive practices and debt collection practices may apply to the origination, servicing and collection of Borrower Loans in our marketplace. Our marketplace or activities conducted by our partners or service providers in connection with operation of our marketplace are also subject to other laws, such as:

• the federal Truth-in-Lending Act and Regulation Z promulgated thereunder, which require certain disclosures to borrowers regarding the terms of their loans;

• the federal Equal Credit Opportunity Act and Regulation B promulgated thereunder, which prohibit discrimination in the extension of credit on the basis of age, race, color, sex, religion, marital status, national origin, receipt of public assistance or the exercise of any right under the Consumer Credit Protection Act; the federal Fair Credit Reporting Act and Regulation V, which regulates the use, reporting and disclosure of information related to each applicant's credit history;

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|  | the federal Fair Debt Collection Practices Act and Regulation F, which regulates debt collection practices by "debt collectors" and prohibits debt collectors from engaging in certain practices in collecting, and attempting to collect, outstanding consumer loans; |
| • | state counterparts to the above consumer protection laws; |
| • | state and federal securities laws, which require that any non-exempt offers and sales of the Notes be registered; |
| • | Section 5 of the Federal Trade Commission Act, which prohibits unfair and deceptive acts or practices in or affecting commerce, and Section 1031 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits unfair, deceptive or abusive acts or practices in connection with any consumer financial product or service; |
| • | the federal Gramm-Leach-Bliley Act, which includes limitations on financial institutions' disclosure of nonpublic personal information about a consumer to nonaffiliated third parties, in certain circumstances requires financial institutions to limit the use and further disclosure of nonpublic personal information by nonaffiliated third parties to whom they disclose such information and requires financial institutions to disclose certain privacy policies and practices with respect to information sharing with affiliated and nonaffiliated entities as well as to safeguard personal customer information, and other privacy laws and regulations; |
| • | the Bankruptcy Code, which limits the extent to which creditors may seek to enforce debts against parties who have filed for bankruptcy protection; |
| • | the federal Servicemembers Civil Relief Act, which allows military members to suspend or postpone certain |
| • | civil obligations so that the military member can devote their full attention to military duties; |
| • | the federal Military Lending Act, which provides specific protections for active duty service members and their dependents (or covered borrowers) in consumer credit transactions; |
| • | the federal Electronic Fund Transfer Act and Regulation E promulgated thereunder, which provide disclosure requirements, guidelines and restrictions on the electronic transfer of funds from consumers' bank accounts; |
| • | the federal Electronic Signatures in Global and National Commerce Act and similar state laws, particularly the |
| • | Uniform Electronic Transactions Act, which authorize the creation of legally binding and enforceable agreements utilizing electronic records and signatures; and |
| • | the federal Bank Secrecy Act, which relates to compliance with anti-money laundering, customer due diligence and record-keeping policies and procedures. |

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We may not always be in compliance with these laws. Borrowers may make counterclaims regarding the enforceability of their obligations under borrower or consumer protection laws after collection actions have commenced, or otherwise seek damages under these laws. Investors may attempt to rescind their Note purchases under securities laws, and LOF's failure to comply with such laws could also result in civil or criminal liability. Compliance with these requirements is also costly, time-consuming and limits operational flexibility.

***Noncompliance with laws and regulations may impair our ability to facilitate the origination of or service Borrower Loans.***

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, failure to comply with applicable laws and regulatory requirements may, among other things, limit our or a third party collection agency's ability to collect all or part of the principal amount of or interest on the Borrower Loans on which the Note's Amount Due relies. In addition, non-compliance could subject us to damages, revocation of required licenses, class action lawsuits, administrative enforcement actions, and civil and criminal liability, which may harm LOF's business and ability to maintain our marketplace and may result in borrowers rescinding their Borrower Loans.

Where applicable, we seek to comply with state lending, servicing and similar statutes, and we continually evaluate our licensing needs. In U.S. jurisdictions with licensing or other requirements that we believe may be applicable to our marketplace, we have obtained necessary licenses or comply with the relevant requirements. Nevertheless, if we are found to not comply with applicable laws, we could lose our licenses or face other sanctions, which may have an adverse effect on our ability to continue to facilitate the origination of Borrower Loans, and on our ability to perform servicing obligations or make our marketplace available to borrowers in particular states, which may reduce (including to zero) the Amount Due of a Note.

***As online commerce develops, federal and state governments may draft and propose new laws to regulate commerce over the Internet, which may negatively affect our businesses.***

As online commerce continues to evolve, increasing regulation by federal and state governments becomes more likely. Our businesses could be negatively affected by the application of existing laws and regulations or the enactment of new laws applicable to marketplace lending. The cost to comply with such laws or regulations could be significant and would increase our operating expenses, and we may be unable to pass along those costs to our users in the form of increased fees. In addition, federal and state governmental or regulatory agencies may decide to impose taxes on services provided online. These taxes could discourage the use of the Internet as a means of consumer lending, which would adversely affect the viability of our marketplace.

***If LOF is required to register under the Investment Advisers Act, either of our ability to conduct business could be materially adversely affected.***

The Investment Advisers Act of 1940, or the "Investment Advisers Act," contains substantive legal requirements that regulate the manner in which "investment advisers" are permitted to conduct their business activities. LOF believes that its business consists of providing a platform for marketplace lending for which investment adviser registration and regulation do not apply under applicable federal or state law, and does not believe that it is required to register as an investment adviser with either the SEC or any of the various states. The SEC or a state securities regulator could reach a different conclusion, however. Registration as an investment adviser could adversely affect LOF's method of operation and revenues. For example, the Investment Advisers Act requires that an investment adviser act in a fiduciary capacity for its clients. Among other things, this fiduciary obligation requires that an investment adviser manage a client's portfolio in the best interests of the client, have a reasonable basis for its recommendations, fully disclose to its client any material conflicts of interest that may affect its conduct and seek best execution for transactions undertaken on behalf of its client. It could be difficult for LOF to comply with this obligation without meaningful changes to its business operations, and there is no guarantee that it could do so successfully. If LOF were ever deemed to be in non-compliance with applicable investment adviser regulations, it could be subject to various penalties, including administrative or judicial proceedings that might result in censure, fine, civil penalties (including treble damages in the case of insider trading violations), the issuance of cease-and-desist orders or other adverse consequences.

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***If our Notes were characterized as "asset-backed securities," we would be ineligible to use Regulation A and could be required to suspend this offering and pursue a different registration or exemption, which could cause delays, increased costs, or the termination of this offering.***

Regulation A is available only for "eligible securities," which include equity and debt securities but exclude asset-backed securities as that term is defined in Item 1101(c) of Regulation AB. See Rules 251(a) and 261(c) under the Securities Act (17 C.F.R. §§ 230.251(a), 230.261(c)). We believe, but cannot assure, the Notes are not ABS because payments are serviced by the Company's general funds (holders take issuer credit risk) and loan-level information is used only to calculate the Amount Due. The SEC's ABS C&DI 301.03 (funding-agreement-backed notes) confirms that where cash flows ultimately come from an issuer's general account, the instrument is not ABS; conversely, C&DI 301.04 clarifies that a single asset can be a "pool" if investor payments are primarily serviced by that asset's cash flows. If a regulator or court were to conclude that our Notes are "asset-backed securities," we would be ineligible for Regulation A, and we could be required to suspend or terminate this offering or to register on the appropriate forms for asset-backed offerings (e.g., Forms SF-1/SF-3) and provide additional ABS-specific disclosures, which could materially and adversely affect our financing plans.

***We may face liability under state and federal securities law for statements in this Offering Circular and in other communications that could be deemed to be an offer to the extent that such statements are deemed to be false or misleading.***

Loan listings and other borrower information available on LOF's website as well as in sales and marketplace listings are statements made in connection with the purchase and sale of securities that are subject to the antifraud provisions of the Exchange Act and the Securities Act. In general, these liability provisions provide a purchaser of the Notes with a right to bring a claim against one or both of us for damages arising from any untrue statement of material fact or failure to state a material fact necessary to make any statements made not misleading. Even though LOF has advised investors of what they believe to be the material risks associated with an investment in the Notes, the SEC or a court could determine that they have not advised investors of all of the material facts regarding an investment in the Notes, which could give investors the right to rescind their investment and obtain damages, and could subject LOF to civil fines or criminal penalties in addition to any such rescission rights or damages.

***LOF's activities in connection with the offer and sale of securities through our marketplace could result in potential violations of federal securities law and result in material liability to LOF.***

LOF's respective businesses are subject to federal and state securities laws that may limit the kinds of activities in which LOF may engage and the manner in which they engage in such activities. For example, changes to the manner in which LOF offers and sells Notes or other securities through our marketplace could be viewed by the SEC or a state securities regulator as involving the creation or sale of new, unregistered securities. In such circumstances, the failure to register such securities could subject LOF to liability and the amount of such liability could be meaningful.

***Licensing Risks***

LOF must obtain and maintain various licenses to operate legally as a peer-to-peer lending platform. The approval and ongoing compliance with these licenses are critical to our ability to conduct business. Any delays, denials, or regulatory issues related to new license applications or the renewal and maintenance of existing licenses could adversely affect our ability to operate as planned. Additionally, failure to remain in good standing with licensing authorities due to regulatory non-compliance or unforeseen issues could result in penalties, operational disruptions, or even the suspension of our business activities.

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# **Securities Being Offered** 
Live Oak Financial LLC ("LOF," the "Company," "we," "our") is offering up to $600,000 aggregate principal amount of Borrower Payment Dependent Notes (the "Notes"). The Notes are U.S. dollar-denominated, fully amortizing, unsecured corporate debt obligations of LOF, issued only in electronic, registered form and in $50 denominations (a single Residual Note under $50 may be issued solely to round funding; terms are identical other than principal amount). Each Note displays a fixed stated borrower APR used to calculate the Amount Due by reference to the associated Reference Loan; actual payments on a Note vary with the Reference Loan applications and may be $0 for any period. All payments on the Notes will be made from LOF's general funds. References to borrower or loan "collections" are used solely to calculate amounts payable on a Note and do not limit the source of payment.

All Notes constitute a single class with identical rights and covenants. Notes are offered in separate Series, each associated for calculation purposes with a specific unsecured consumer loan originated on our platform (a "Borrower Loan," or the "Reference Loan" for the related Series). Differences among Notes relate only to the stated interest rate and amortization profile disclosed for the applicable Series.

On each Note Payment Date, LOF pays from its general funds the Amount Due for the Notes, calculated by reference to amounts applied to the Reference Loan during the period. Amount Due may vary from period to period and may be zero. (See "Description of Notes—Calculation of Amount Due" for full definitions and mechanics.)

Investors are creditors of LOF only. They do not lend directly to, or have any lien, security interest, or ownership interest in, any Borrower Loan, borrower remittances, or LOF bank accounts. Borrower remittances are received by or for LOF and deposited into LOF's general operating accounts; funds are not transferred directly from borrowers to investors.

Each listing displays (i) the borrower APR for the Reference Loan, (ii) the Investor Yield (see "How we determine and communicate rates—Investor Yield"), (iii) Risk Rating and other borrower specific information (see "How the Platform Marketplace Works—Investor Information Access"). Borrower rates are set by our interest-rate committee (see "Setting Interest Rates") and are expected to fall within the ranges disclosed there (ranges may be updated by supplement).

Notes in a Series are expected to mature generally in line with the Reference Loan's scheduled maturity. Borrowers may prepay without penalty; prepayments are reflected in the Amount Due for the applicable period and may reduce or eliminate future Amount Due (no make-whole or prepayment premium). There is no sinking fund and no scheduled issuer redemption. Amounts received on the Reference Loan after the final maturity date of the Note do not create additional Amount Due; this design aligns administration with the Note's stated term and simplifies final accounting.

LOF is in default only if it fails to pay a positive Amount Due by the 10th Business Day after the Note Payment Date (subject to ACH cutoffs). A $0 Amount Due is not a payment default. Underperformance or default of the Reference Loan does not, by itself, constitute a default by LOF. There is no cross-default among different Series. We do not appoint a trustee; enforcement is on a Series-by-Series basis.

LOF charges borrowers a one-time origination fee of 3.00%–9.99% of Borrower Loan principal, deducted from loan proceeds at origination based on Risk Rating. No origination fee is charged to investors. LOF retains a servicing fee equal to 15% of each interest amount applied to the Reference Loan, including the interest component of post-default recoveries; no servicing fee applies to

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principal. Third-party collection agencies may retain a portion of recoveries and legal/transaction fees, which are reflected in the calculation of Amount Due.

At this time, sales are voluntarily limited to verified Texas residents. The Notes are not exchange-listed and no public market exists; investors should expect to hold to maturity. See "Debt Securities—Notes—Transfer Restrictions and Modifications."

The Notes—and any non-securities-law claims arising out of them—are governed by the internal laws of the State of Texas (without regard to Texas conflict-of-laws principles), except to the extent federal law preempts or otherwise controls. The offer and sale of the Notes are conducted pursuant to Regulation A, Tier 2 under the Securities Act of 1933 and are subject to applicable U.S. federal securities laws and the antifraud provisions of state ("Blue Sky") laws to the extent not preempted. Nothing in the Notes or this Offering Circular limits or waives any rights or remedies under federal or state securities laws.

LOF may amend the terms of a Note without holder consent only to:

1. cure an ambiguity, omission, obvious error, or inconsistency;

2. conform the Note to changes in applicable law, regulation, payment-rail or clearing-network rules, or implement required compliance, tax, or reporting changes;

3. make administrative or ministerial updates that do not materially and adversely affect holder rights; or

4. effect servicing actions or Borrower Loan modifications permitted under "Servicing Standard; Modifications to Borrower Loans and Notes," provided the Note's stated principal balance and general-funds payment covenant are preserved;

in each case, LOF will supplement the offering with the amended terms and will notify affected holder(s) in writing via email within two (2) Business Days after the amendment becomes effective.

# **Auto-Invest (optional; opt-in only)** 
Auto-Invest is an optional, investor-elected feature. It is off by default; investors must affirmatively enroll and can enable/disable at any time in their account settings. At enrollment, an investor sets filters (e.g., Risk Rating range, term, max per loan, monthly cap). When a listing meeting the investor's filters is posted and capacity is available, the system submits a subscription up to the investor's limits. The investor receives an immediate electronic confirmation of any accepted order. Prior to acceptance, an investor may cancel a pending Auto-Invest order in the interface; once accepted, ACH is debited and the order settles in the ordinary course. Auto-Invest purchases are new sales under this qualified offering and occur only while the offering is open; no separate offering statement is required for such purchases. If we later offer any automatic reinvestment of cash flows after this offering terminates or on new terms, we would file a post-qualification amendment or new offering statement, as applicable. No auto-reinvestment will occur after termination absent a post-qualification amendment.

# **Debt Securities—Notes** 
**Key Defined Terms**

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| | |
|:---|:---|
| • | **Business Day** means any day other than a Saturday, Sunday, or U.S. federal banking holiday. |
|  | **Loan Payment Date means any date on which LOF applies cash to principal and/or interest on the Reference Loan (including scheduled installments, partial payments, catch-ups,** |

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| | |
|:---|:---|
|  | **curtailments, full prepayments, and post-charge-off recoveries). An assessment of a late fee alone does not constitute a Payment Date.** |
| • | **Note Payment Date means the third Business Day (T+3) after the Loan Payment Date.** |

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# **Interest and Payment** 
All payments on the Notes are made by LOF from its general funds. If the calculation for a period results in no Amount Due, no payment will be made. Reference Loans currently fall within 2–24 months, and Notes are expected to mature on a similar schedule, subject to prepayment and modifications. Each Note displays the fixed borrower APR for its Reference Loan; the Note's payments are calculated by reference to that loan's applications of principal and interest (85% of interest, net of LOF's 15% servicing fee on interest). Rates will fall between the IRS Applicable Federal Rate (AFR) floor and 30%, as determined under "Setting Interest Rates." Each listing displays (i) Borrower APR (ii) Investor Yield; See "How we determine and communicate rates," and (iii) Risk Rating and other borrower specific information. See "How the Platform Marketplace Works—Investor Information Access."

Interest accrues for calculation purposes on the same schedule and day-count basis as the related Reference Loan. On each Note Payment Date, LOF pays from its general funds the Amount Due for the Notes, which is calculated by reference to amounts applied to the Reference Loan during the applicable period, as follows (see "Calculation of Amount Due" for full definitions):

• **Principal Component:** 100% of principal applied to the Reference Loan for the period, capped at the then-outstanding Note principal.

• **Interest Component:** 85% of interest applied to the Reference Loan for the period, net of LOF's 15% servicing fee on interest.

• **Permitted Costs/Adjustments:** Any costs or adjustments applied to the Reference Loan for the period. See "Calculation of Amount Due—Permitted Costs/Adjustments."

Borrowers may prepay the Reference Loan in whole or in part without penalty. Prepayments are included in the Principal Component (and, to the extent interest is applied, in the Interest Component) for the period in which they are applied; prepayments may reduce or eliminate future Amount Due. Post-default recoveries, if any, are reflected in the calculation for the period when applied (the interest portion of recoveries remains subject to the 15% servicing fee).

**Statement, Payment Timing, and How You'll Know**

For each period, LOF will post a "Calculation Statement" on the Loan Payment Date and initiate ACH remittance on the Note Payment Date. The Calculation Statement shows:

i. beginning/ending Note principal (Reference Loan and Note),

ii. amounts Applied to Principal and Applied to Interest,

iii. any Permitted Costs/Adjustments (including reversals/returns),

iv. the Series-Level Amount Due, and

v. each Note's Per-Note Amount Due.

When the calculation yields $0, LOF will post a Zero Amount Due Notice for that event (and may send an email alert). A $0 Amount Due is not a payment default. See "Covenants and Defaults."

**Late-Payment Notifications (when no Loan Payment Date occurs)**

If a scheduled installment date under the Reference Loan passes without a Loan Payment Date:

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• LOF will send a Delay Notice on day 3 after the scheduled date and every third day thereafter (e.g., days 3/6/9/12) until the borrower either pays or becomes 15 days late (at which point a contractual late fee may be assessed under the loan documents).

• An assessment of a late fee (without receipt of borrower cash) is not a Loan Payment Date and does not create a Note Payment Date. If the borrower later remits cash that we apply solely to a late fee or other non-interest charge, that remittance is a Loan Payment Date and will create a Note Payment Date; however, because no amount is applied to principal or interest for that event, the Series Amount Due is $0, and we will post a Zero Amount Due Notice.

**Treatment of Prepayments, Modifications, Charge-Offs, and Recoveries**

• **Prepayments.** Full or partial prepayments are included in the Applied to Principal/Interest for that Loan Payment Date and may reduce or eliminate future Amount Due.

• **Modifications/Forbearances.** If terms are modified (e.g., rate reduction, re-aging, extension) consistent with our Servicing Standard, the calculation uses amounts applied under the modified schedule.

• **Charge-off.** When a Reference Loan is charged off under policy, Applied to Principal/Interest for that event may be $0; the Amount Due may therefore be $0.

• **Recoveries after charge-off.** Cash recovered post charge-off is reflected when applied: principal recoveries contribute to the principal portion; interest recoveries contribute to the interest portion (subject to the 15% servicing fee on the interest component), and any Permitted Costs/Adjustments.

**Day-Count and Rounding**

Unless otherwise disclosed in the listing, the Reference Loan accrues interest on an Actual/365 (Fixed) basis with monthly scheduled installments; the Notes use the same basis for calculation purposes. We round per-component amounts to the nearest cent (half-cent rounds up). Any rounding residuals at the Series level carry to the next event.

# **Setting Interest Rates** 
An internal interest-rate committee meets regularly to set pricing for Borrower Loans. The committee assigns each approved application to a Risk Rating bucket and selects a fixed borrower APR within the range for that bucket. Ranges may change over time and updates will be reflected in supplements and on the Platform. See "Platform Functionality" and "How the Platform Marketplace Works—Investor Information Access." Until our Texas Regulated Lender License (OCCC) is effective, we will originate only Borrower Loans at or below 10% APR and will decline applications requiring higher rates.

For tax compliance and to avoid below-market loan characterization under federal tax rules, our rate committee uses the IRS Applicable Federal Rate (AFR) for comparable terms as a floor when setting Borrower APRs, subject to applicable state rate caps. AFR is published monthly by IRS revenue rulings. This AFR floor does not cap investor yield, which is determined by the Note's calculation mechanics. AFR is published monthly in IRS revenue rulings.

The Risk Rating used to set borrower APR is a model-driven bucket that relies on permissioned bank-link and identity-verification data (see "How the Plarform Marketplace Works—Investor Information Access") together with credit bureau and application data. The committee may periodically recalibrate buckets, inputs, or weightings, or adjust pricing add-ons/discounts, consistent with our

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methodology. See "Limited Repurchase and Indemnification Policy" for how a Risk-Rating Failure is defined and remedied.

The stated rate for a Note is the borrower APR on its Reference Loan. Payments on Notes are made by LOF from its general funds in the Amount Due calculated by reference to applications of principal and interest on the Reference Loan (including the 15% servicing fee on interest).

Methodology updates and range changes apply prospectively to new listings and do not alter the stated rate of an already-issued Notes. We may update presentation of Investor Yield or underlying assumptions; any such changes will be disclosed on the Platform and, if material, by supplement.

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| | | | | |
|:---|:---|:---|:---|:---|
| Risk Score Range | Minimum APR | Minimum Investor Yield | Maximum APR | Maximum Investor Yield |
| 90-100 | 4.5% | 3.99% | 6.3% | 5.64% |
| 80-89 | 6.3% | 5.64% | 9.6% | 8.69% |
| 70-79 | 9.6% | 8.69% | 12.9% | 11.85% |
| 60-69 | 12.9% | 11.82% | 16.2% | 15.09% |
| 50-59 | 16.2% | 15.03% | 19.5% | 18.42% |
| 40-49 | 19.5% | 18.32% | 22.8% | 21.84% |
| 30-39 | 22.8% | 21.67% | 26.1% | 25.37% |
| 20-29 | 26.1% | 25.22% | 29.4% | 28.98% |
| 10-19 | 29.4% | 28.76% | 30% | 29.65% |
| 0-9 | N/A | N/A | N/A | N/A |

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# **How we determine and communicate rates** 
We set the borrower APR for each approved Borrower Loan using our risk/term matrix informed by the loan's Risk Rating and program constraints (e.g. IRS AFR floor for comparable terms). When a listing is posted, we lock the borrower APR for that Series.

Each listing presents:

• Borrower APR (the fixed rate on the Borrower Loan),

• Investor Yield—an illustrative (actual results vary; not a prediction;) yield-to-maturity estimate for the Note as calculated to applications on the related Reference Loan, net of the 15% servicing fee on interest, that assumes scheduled payments, no modifications, prepayments, charge-offs, recoveries, or other factors, and

• Risk Rating and other borrower specific information. See "How the Platform Marketplace Works—Investor Information Access" for other information shown on the listing.

# **Calculation of Amount Due** 
**Key Defined Terms (for this section)**

• **Fractional Interest** means, for a Note, the ratio of that Note's outstanding principal to Reference Loan Principal set at issuance.

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| | |
|:---|:---|
|  | **Applied to Principal** / **Applied to Interest** means amounts LOF applies to principal or interest on the Reference Loan (including any default interest applied; excluding late fees and other non-interest charges unless we disclose otherwise). |
| • | **Permitted Costs/Adjustments** means third-party collection agency fees, legal fees and court costs, transaction/processing fees associated with accepting payments, and reversals of previously applied amounts (e.g., returned items), to the extent reflected in LOF's application of cash to the Reference Loan. Permitted Costs/Adjustments are first applied to reduce the Interest Component for the period; only if such costs exceed the Interest Component do they reduce the Principal Component. |

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On each Note Payment Date, LOF pays from its general funds the amount payable to the holders of a Note for that period (the "Amount Due"). The Amount Due is calculated by reference to how cash was applied to the related Reference Loan during the applicable period, as described below. References to borrower "collections" in this section are only inputs to the calculation and do not limit the source of payment.

Amount Due to a Noteholder is allocated by each Note's fixed Fractional Interest in the Reference Loan. On each Loan Payment Date, we determine the Series Amount Due from the borrower's payment for the period (i.e., 100% of principal plus 85% of interest as described herein); the Amount Due on any Note equals its Fractional Interest × the Series Amount Due. (Unless otherwise disclosed on the listing.)

Example: If the Reference Loan's original principal is $1,000 and ten Notes of $100 are issued, each Note's Fractional Interest = 10%. If the borrower pays $120 for a period ($100 principal + $20 interest), the Series Amount Due = $100 + (85% × $20) = $117; each Note's Amount Due = 10% × $117 = $11.70. Each Note's principal then decreases by 10% × $100 = $10.

**Calculation Formula (combined Series + per note allocation)**

On each Loan Payment Date, LOF computes the Amount Due and allocates it pro rata to every Note in that Series using each Note's Fractional Interest:

• <u>Serie</u> <u>s</u> <u>Amount</u> <u>Due</u> = min(Applied to Principal, Outstanding Series Principal) + (Applied to Interest – 0.15 × Applied to Interest) – Permitted Costs/Adjustments

• <u>Per-Note Amount Due (same event)</u> = Fractional Interest × Series Amount Due

Each Note's share of the principal portion reduces that Note's outstanding principal. Each Note's share of the interest portion is paid as interest for that event.

If a borrower remittance that previously contributed to Amount Due is returned or reversed after LOF has initiated or settled investor ACH credits, LOF will (a) cancel any pending investor credit; (b) originate a new ACH debit to the investor's designated bank account to recover the over-payment under the preauthorized EFT consent in the Subscription Agreement; and (c) reflect such reversal on the next Calculation Statement. If any portion remains unpaid or a debit is returned or prohibited by law (e.g., bankruptcy automatic stay or a stop-payment/revocation), LOF may set off the remaining shortfall against subsequent Per-Note Amounts Due for the same Series and may suspend further distributions until cured. LOF will not use Nacha "Reversal" entries for clawbacks except to correct Erroneous Entries within the time limits required by the Nacha Rules.

If multiple Loan Payment Dates occur in the same billing cycle (e.g., partial payment and then a catch-up), LOF will perform this calculation for each event, and remit for each event as described below.

**Illustrative Example**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference Loan payment applied: $250. Two investors are the holders of record for the entire period; immediately prior to the Loan Payment Date their Notes show $100 and $150 outstanding (40% / 60% of the $250 Series Principal).**<sup>\*</sup>** Suppose LOF applies $200 to principal and $50 to interest (no adjustments):

**<sup>\* If a Note changes hands during a period, the Amount Due for that period on that Note is apportioned between successive holders based on the relative time each held the Note (per our transfer procedures). No trading market currently exists. Assume no intra-period transfers.</sup>**

• **Series Amount Due** = $200 **+** 0.85 × $50 = $242.50

• **Per-Note Amount Due:** &nbsp;&nbsp;&nbsp;&nbsp; • Holder A (40%): $242.50 × 40% = $97.00 &nbsp;&nbsp;&nbsp;&nbsp; • Holder B (60%): $242.50 × 60% = $145.50

# **Ranking and Security** 
The Notes are unsecured, unsubordinated corporate debt obligations of LOF. All payments on the Notes are made by LOF from its general funds in the amounts calculated for each period (the "Amount Due"). References to borrower or loan "collections" are used solely to calculate the Amount Due and do not limit the source of payment. Investors are creditors of LOF only and have no lien, security interest, or ownership interest in any Borrower Loan, borrower remittances, or LOF bank accounts. LOF does not maintain any trust, SPV, segregated account, or Series-Level lockbox for Noteholders.

Notes offered in connection with the same Reference Loan constitute a single Series. Within a Series, Notes rank equally (pari passu) in right to receive each period's Amount Due for that series (allocated by each Note's Fractional Interest in the Reference Loan). The Notes are unsecured and unsubordinated obligations that rank pari passu with all of LOF's other present and future unsecured, unsubordinated indebtedness, except to the extent any such indebtedness is given priority by law (e.g., certain taxes or wages) or is contractually senior or subordinated by its terms. One class of Notes issued in multiple, separate Series. Rights and covenants are identical across Series; payment rights are Series-specific with no cross-Series recourse or cross-default.

Any limitations on additional indebtedness in our Operating Agreement are internal company covenants only and do not create contractual subordination enforceable by Noteholders or binding on third-party creditors. As a result, we may incur additional indebtedness—including secured indebtedness—that is pari passu with or senior to the Notes, and our Operating Agreement may be amended or waived to permit such indebtedness. See "Risk Factors—We may incur additional indebtedness..."

The Notes are not issued under an indenture, and no trustee or paying agent has been appointed. Holders must enforce their rights individually, subject to the terms of the Notes and applicable law.

The Series construct is for calculation and disclosure only; it does not create any security interest, collateral pool, or priority claim over specific assets. Noteholders have no right to payment from other Borrower Loans or any particular LOF asset and will share in LOF's assets pari passu with other general unsecured creditors in any insolvency. Amount Due may be zero for one or more periods based on the calculation mechanics.

We believe the Notes are not "asset-backed securities" as defined in Item 1101(c) of Regulation AB or Exchange Act §3(a)(79) because payments to Noteholders are serviced by LOF's general funds and the Reference Loan is used only to calculate Amount Due, not to collateralize or primarily service

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Note payments. However, the SEC Staff could disagree and determine that the Notes are primarily serviced by the cash flows of a discrete asset or pool.

# **Covenants and Defaults** 
**Servicing Standard**

LOF will use commercially reasonable efforts, consistent with customary marketplace-loan servicing practices and applicable law (including the FDCPA and the Texas Debt Collection Act), to service and collect each Borrower Loan. This includes:

1. applying borrower payments in accordance with the loan documents;

2. maintaining accurate records;

3. performing the calculation described under "Calculation of Amount Due" and paying holders accordingly; and

4. referring materially delinquent accounts to a third-party collection agency under LOF's then-current written collections policy (currently, loans that reach 30 days past due are ordinarily referred within five (5) Business Days, unless a hardship/forbearance plan or cure is in process or referral is prohibited by law). Charge-off and recovery practices follow LOF's written policy (currently, charge-off is generally considered at 120 days past due) and may be adjusted to comply with law or network/agency requirements.

**Information & Notice covenants**

We will provide confirmations, periodic statements, an online activity feed, late-payment delay notices, and notices of material servicing events and permitted amendments, as described under "Payment Covenant; Timing & Notices" and "Investor notice of modifications."

**Payment Covenant; Timing & Notices**

• **General-funds payment covenant.** On each Note Payment Date, LOF unconditionally promises to pay from its general funds the Amount Due for the applicable Notes, as calculated under "Calculation of Amount Due."

• **R emittance.** For each Note Payment Date, LOF will initiate ACH credit of the Note's Amount Due to the Noteholder's designated account.

• **Zero Amount Due.** If the calculation for a Note Payment Date yields $0, LOF will post a Zero Amount Due Notice for that event (and may send an email alert). A $0 Amount Due is not a payment default by LOF.

• **Returned items/reversals.** If a borrower payment is later returned or reversed after LOF remits, LOF will reflect the reversal as stated in "Calculation of Amount Due."

**Delay Notices when no Note Payment Date occurs**

LOF will provide Noteholders with: (i) electronic confirmations of issuance; (ii) periodic statements via email and dashboard; (iii) an online activity feed for each Note (see "Description of Business—Online Activity Feed") showing timestamps for borrower payment initiation, settlement to LOF ("good funds"), remittance initiation to investors, and any return/reversal; and (iv) notices of material servicing events, including any servicing transfer, and any Note amendment permitted under "Investor Notice of Modifications; Modifications to Borrower Loans and Notes." Material servicing disruptions may also be disclosed on Form 1-U if they meet applicable thresholds.

**Licensing and Compliance**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LOF will use commercially reasonable efforts to maintain required licenses (Texas issuer-dealer license) for the offer and sale of Notes and to conduct servicing in compliance with applicable law.

**No financial maintenance covenants.** Except as expressly set forth above, the Notes do not contain financial maintenance covenants (e.g., minimum net worth or liquidity) or negative covenants restricting LOF's ability to incur additional indebtedness. See "Risk Factors—We may incur additional indebtedness …" Payments on Notes are made by LOF from its general funds in the Amount Due calculated by reference to the applicable Reference Loan.

# **Events of Default** 
An Event of Default on a Note or Series occurs if:

1. **Payment default (Amount Due not paid).** For a Note Payment Date on which the Calculation Statement shows a positive Amount Due, LOF fails to initiate ACH remittance by close of business that day and such failure continues through the close of the tenth (10th) Business Day after that Note Payment Date.

• &nbsp;&nbsp;&nbsp;&nbsp; • How you'll know: the dashboard will show a positive Amount Due for the event with no "Remittance Initiated" timestamp; status updates will appear in the activity feed until paid or defaulted. No holder notice is required to trigger this default.

1. **Servicing/Information default.** LOF materially breaches the Servicing Standard, the Payment Covenant timing obligations (other than a cured payment default described above), or the Information & Notice covenants, and such breach continues for 30 days after written notice (or, if not reasonably curable within 30 days, LOF fails to begin and diligently pursue cure within that period; cure must be completed within 90 days of notice).

2. **Bankruptcy/insolvency.** LOF becomes the subject of a bankruptcy, receivership, or similar insolvency proceeding, or makes a general assignment for the benefit of creditors. In such case, an Event of Default occurs immediately without notice or cure.

**Remedies; no acceleration**

The Notes do not provide for acceleration. Upon any Event of Default, any holder of the affected Series may (i) sue to recover unpaid Amounts Due then due and payable on its Note(s), (ii) seek specific performance of the payment covenant and information/notice covenants, and (iii) exercise any other rights available at law or in equity. Remedies are Series-specific and not cross-Series; there is no trustee. The Limited Repurchase and Indemnification Policy is not a default remedy and does not create acceleration or any right to payment other than as expressly provided in that policy.

# **Limited Repurchase and Indemnification Policy (Specific Events Only)** 
The Notes are unsecured corporate debt obligations of LOF. All payments on the Notes are made by LOF from its general funds in the Amount Due calculated by reference to the related Reference Loan. LOF does not guarantee payment or credit performance. This policy provides limited, event-specific remedies only and is not insurance against borrower delinquency, default, modification, prepayment, or loss.

**Defined events and remedies**

1. <u>Identity Fraud.</u> After funding, LOF determines the Borrower Loan was obtained using a bank account not legally owned by the named borrower (e.g., impersonation, identity theft, synthetic identity, unauthorized account access).

&nbsp;&nbsp;&nbsp;&nbsp; • *Evidence*: Any one of: (i) mismatch between LOF KYC and bank-link account owner results; (ii) bank confirmation of unauthorized use or takeover; (iii) police report or FTC

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; identity-theft affidavit; or (iv) equivalent written confirmation from a financial institution or law-enforcement agency.<br>&nbsp;&nbsp;&nbsp;&nbsp; • *Remedy*: LOF will repurchase the affected Note(s) at ONP (Outstanding Note Principal). Accrued but unpaid interest is not paid by LOF; interest already paid to investors before LOF's determination is retained by investors, subject to any reversal/return adjustments under "Calculation of Amount Due" (e.g., if a prior borrower payment is clawed back).<br>&nbsp;&nbsp;&nbsp;&nbsp; • *Timing & notice*: LOF will notify affected holders within three (3) Business Days after determination and will credit the repurchase amount within ten (10) Business Days thereafter.<br>

1. <u>Risk-Rating Failure.</u> "Risk Rating" is LOF's internal, proprietary credit-risk grade used to set each listing's borrower APR and the corresponding Investor Yield at the time of posting. The model ingests permissioned bank-link and identity-verification outputs. A Risk-Rating Failure occurs only when LOF determines that, at the time of listing, a material data error (e.g., misattributed or corrupted bank-link data) or software defect caused the loan to be assigned to the wrong published risk bucket. Changes in a borrower's circumstances after posting are not a Risk-Rating Failure.

• &nbsp;&nbsp;&nbsp;&nbsp; • *Remedy (at LOF's election)*: (A) Repurchase the Note(s) at ONP via ACH credit, or (B) adjust the Investor Yield prospectively to the yield that would have applied had the correct risk bucket been used at posting. &nbsp;&nbsp;&nbsp;&nbsp; • *Timing & notice*: LOF will notify holders within three (3) Business Days after determination; repurchases will be credited within ten (10) Business Days; yield adjustments, if elected through email communications, apply to payments going forward and are reflected in the web dashboard.

1. **Auto-Invest Error.** An "Auto-Invest Error" occurs if an order is accepted (i.e., the listing reaches 100% funding within the window) but the order did not satisfy the investor's saved Auto-Invest filters as of the exact time of acceptance (including an interface race condition during a filter update), or the system placed the order outside any saved criteria due to internal error.

• &nbsp;&nbsp;&nbsp;&nbsp; • *Remedy*: LOF will repurchase the Note(s) at ONP upon timely notice from the investor. &nbsp;&nbsp;&nbsp;&nbsp; • *Timing & notice*: The investor must notify LOF within fourteen (14) calendar days of the trade confirmation; LOF will credit the repurchase amount via ACH within ten (10) Business Days following validation.

**Exclusions; scope limits**

• <u>Credit performance is not covered.</u> Delinquency, default, bankruptcy, income changes, deferrals, forbearances, extensions, re-aging, or other servicing actions consistent with our Servicing Standard do not trigger repurchase/indemnity.

• <u>No make-whole / no yield guarantee.</u> LOF will not increase principal, pay unpaid accrued interest (other than amounts already paid before determination, subject to reversals), or otherwise guarantee yield.

• <u>Application misstatements.</u> Borrower misrepresentations without identity theft are handled under ordinary servicing and may lead to charge-off unless separately determined to be a Risk-Rating Failure as defined above.

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| | |
|:---|:---|
|  | <u>Assignment and transfer.</u> Remedies apply only to holders of record on the determination date; they are not transferable and do not run with the Note after settlement of a repurchase, are several and Series-specific, and may not be aggregated with, or asserted on behalf of, holders of any other Series. |
| • | <u>Series-limited; no cross-</u><u>Series</u> <u>recovery.</u> Any repurchase, indemnity, or yield adjustment under this policy applies only to the specific Series of Notes linked to the affected Reference Loan. There is no cross-Series pooling, allocation, recovery, or setoff, and no right to require LOF to make any payment with respect to any other Series due to a covered event in one Series. |

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**Process; Effect of Repurchase or Adjustment**

• <u>Funding source.</u> Repurchase and indemnity payments are made by LOF from its general funds.

• <u>Finality.</u> Upon crediting a repurchase at ONP, the repurchased Note is canceled, and the holder's rights under that Note cease as of the Effective Repurchase Date—the date LOF credits the repurchase amount via ACH—(other than rights expressly surviving by law).

• <u>No cross-</u> <u>Series</u> <u>aggregation.</u> LOF determines eligibility and effects remedies on a Series-by-Series basis; a remedy for one Series has no effect on, and confers no rights with respect to, any other Series.

• <u>Statements.</u> The Calculation Statement for the Effective Repurchase Date will show the repurchase entry and resulting ending balances.

• <u>No precedent.</u> LOF's determination in one instance does not obligate LOF to provide the same remedy in any other instance unless the facts meet the definitions above.

**Coordination with Calculation of Amount Due**

Any reversal/return of borrower payments related to Identity Fraud (or otherwise) will be treated as a Permitted Costs/Adjustment and may create an Adjustment Carry as described in "Debt Securities—Notes—Calculation of Amount Due."

**Exclusive Remedies; No Expansion of Rights**

For the covered events above, the remedies stated are the holder's sole and exclusive remedies under this policy. Nothing in this section: (i) creates any lien, security interest, trust, or segregated account; (ii) modifies Events of Default or other rights in "Covenants and Defaults"; or (iii) alters transfer restrictions or applicable law.

**Process; disputes**

Holders submit claims via email to contact@live-oak-financial.com with supporting documentation. LOF will acknowledge receipt within one (1) Business Day, request any additional information, and make a written determination within fifteen (15) Business Days. If a claim is approved, LOF will effect the applicable remedy on the timelines above. LOF's determination is made in good faith and based on the evidentiary standard described in each event. We will provide electronic notice via email for each approved event as described above.

# **Servicing Standard; Modifications to Borrower Loans and Notes** 
LOF services all Borrower Loans in-house. Subject to applicable law, LOF may take commercially reasonable actions intended to maximize recoveries and reduce losses, including: (i) temporary payment deferrals or due-date changes; (ii) re-aging after sustained performance; (iii) extending final maturity (absent court order or legal requirement, the revised maturity will not exceed 24 months from the original loan date); (iv) reducing the borrower APR (we will not increase APR

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above the original contract rate, and never above an applicable rate ceiling); (v) waiving or reversing late or NSF fees; (vi) accepting or negotiating settlements or payment plans after default; (vii) capitalizing past-due interest or fees where permitted by law; and (viii) charging off and referring to collections. Charge-off is generally considered at 120 days past due, and materially delinquent accounts are ordinarily referred to a third-party collection agency within five (5) Business Days after 30 days past due, unless a hardship/forbearance plan or cure is in process or referral is prohibited by law.

Any change to a Borrower Loan is reflected only through the calculation of each Note's Amount Due on a Loan Payment Date (see "Calculation of Amount Due"). Examples:

• A maturity extension changes the timing of future Loan Payment Dates and may reduce each period's Applied to Interest, thereby reducing future Interest Components.

• An APR reduction lowers Applied to Interest going forward; investors receive their pro-rata share of 85% of interest applied (net of LOF's 15% servicing fee on interest) under the revised terms.

• A fee waiver reduces cashflows only to the extent such fees would otherwise have been applied and included in the calculation; note that late fees and non-interest charges are excluded from the Interest Component unless we disclose otherwise.

• Capitalization of amounts permitted by law (e.g., past-due interest) affects subsequent Applied to Interest/Principal and thus subsequent Amount Due.

• Charge-offs and recoveries are reflected when amounts are applied; agency/legal fees are treated as Permitted Costs/Adjustments.

LOF will not modify any Note to: (A) increase the holder's stated principal; (B) change the method of interest calculation other than to mirror a borrower-level APR reduction; (C) increase the holder's obligations; (D) subordinate the Note; or (E) change governing law, Events of Default, or mandatory consent provisions. LOF may correct clerical errors and make conforming, administrative, or legally required amendments without holder consent, provided the Note's general-funds payment covenant and calculation-by-reference structure are preserved.

# **Investor notice of modifications** 
For any material borrower-level change that affects the timing or amount of payments on a related Series (e.g., maturity extension, APR reduction), LOF will: (i) provide electronic notice to affected holders within two (2) Business Days after the change (or, where practicable, before it takes effect); and (ii) file an offering circular supplement pursuant to Rule 253(g) within two (2) Business Days describing the modification. The investor email will include a link to the supplement (or instructions to access it on EDGAR and on our Offering Documents page). See "Plan of Distribution—Listing Supplements."

Each Calculation Statement posted on a Loan Payment Date will reflect the modified Applied to Principal/Interest, any Permitted Costs/Adjustments, the Series-Level Amount, and each Note's Per-Note Amount Due.

If we make a policy-level change that materially alters the nature or scope of our modification authority (e.g., extending the maximum maturity beyond 24 months from origination, changing the servicing fee rate, or revising the interest-rate table), we will update this Offering Circular by filing an offering circular supplement (or, if required, a post-qualification amendment).

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# **Transfer Restrictions and Modifications** 
Notes are issued solely in electronic, registered form; no physical certificates will be delivered. There is no public market for the Notes, and we do not operate or sponsor a secondary trading venue. Transfers may occur only pursuant to an effective registration statement under the Securities Act of 1933 or a valid exemption from registration, and must also comply with applicable state securities laws. If we later introduce functionality to facilitate secondary transfers, it will be implemented only as permitted by applicable federal and state law (for example, through a registered broker-dealer operating an alternative trading system under Regulation ATS). We make no assurance that any secondary market will develop.

LOF may amend Note terms without holder consent solely to implement conforming changes resulting from a modification of the related Borrower Loan (as reflected through the calculation mechanics), to correct clerical errors, to reflect changes required by law, regulation, payment-rail or court order, or to make administrative updates that do not materially and adversely affect holders as a class. Any policy-level change to our modification authority will be reflected by an offering circular supplement or post-qualification amendment as described under "Servicing Standard; Modifications to Borrower Loans and Notes."

# **Other Terms** 
There are no conversion rights, warrants, or other equity or debt securities offered in connection with the Notes. Noteholders bear no further liability to LOF, and there are no sinking funds, redemption obligations, or assessments. At this time, we elect to offer and sell Notes only to verified Texas residents as a business policy and to align with our current state licensing and servicing footprint. This voluntary geographic limitation is not imposed by state "Blue Sky" merit review in light of federal preemption for Tier 2 offerings; state notice filings and anti-fraud provisions continue to apply. Offers and sales remain limited to "qualified purchasers" as described under "State Law Exemption and Offerings to 'Qualified Purchasers.'"

# **Dilution** 
Not applicable. The Notes are debt obligations (not equity). There is no disparity between the public offering price and any price paid by officers, managing members, promoters, or other affiliates: all persons, including insiders, purchase the Notes at 100% of principal amount (subject to a $50 minimum principal amount per Note), on the same terms.

# **Plan of Distribution** 

# **Underwriter** 
We are offering the securities directly as the issuer. No FINRA-member underwriter or placement agent has been engaged, and no transaction-based compensation will be paid. In Texas, sales will be made by LOF acting as a state-registered issuer-dealer and by a registered agent, in reliance on Exchange Act Rule 3a4-1 for participating officers/employees. We will pay customary, bona fide offering expenses.

# **Rule 262 'Bad Actor' Disqualification** 
We are not subject to disqualification under Rule 262 of Regulation A. No 'covered person' (including the Company; any predecessor or affiliated issuer; any managing member, executive officer, or other officer participating in the offering; any beneficial owner of 20% or more of our voting equity; any promoter; and any person paid, or to be paid, for solicitation of purchasers) is subject to a

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disqualifying event described in Rule 262. We have exercised reasonable care to determine whether any such disqualifications exist and will update this disclosure for any material changes.

# **Discounts and Commissions** 
No underwriting discounts, sales commissions, finders' fees or other compensation are payable by LOF in connection with the sale of Notes.

# **Fees and Expenses** 
The following table sets forth actual offering expenses incurred or determinable as of the date of this Offering Circular in connection with this qualified offering. No offering proceeds will be used to pay these expenses; LOF has paid or will pay them from operating cash. As of that date, $3,500 has been paid and $670 (the Texas notice filing fee) is accrued and will be paid upon qualification.

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| | | |
|:---|:---|:---|
| **Offering Expense (Actual)** | **Amount** | **Status** |
| Legal – opinion and consent of counsel | $1000 | Paid |
| Audit – FY 2024 and Interim 2025 | $2500 | Paid |
| State Notice Filing Fee (Texas) | $670 | Accrued; payable upon qualification |
| **Total Offering Expenses** | **$4170** |  |

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***Notes to table:***

1. **T exas notice fee unpaid (accrued).** The Texas State Securities Board notice filing fee has not yet been paid and will be paid upon qualification of this offering; as of the date of this Offering Circular it is accrued but unpaid.

2. **No commissions or escrow.** We did not engage any underwriter, placement agent, or broker-dealer and paid no selling commissions, discounts, or placement fees. No escrow or custodial accounts were used; therefore, no escrow/custodial fees were incurred.

3. **How we kept costs low.** These actual expenses reflect fixed-fee engagements for the legal opinion/consent and for the FY 2024 audit and interim 2025, and a single Texas state notice filing. We acknowledge these totals may be below typical market ranges for similar offerings because of (i) the narrow state scope and (ii) negotiated fixed fees.

4. **What's not included.** We performed EDGAR formatting/filing and investor-facing materials in-house using existing personnel; we do not treat internal labor as "offering expenses." Ongoing Tier 2 reporting, website maintenance, and ordinary-course legal/accounting costs are operating expenses and are not included above.

5. **Future changes.** We do not expect material additional offering expenses. If we file post-qualification amendments or expand state notice filings, we may incur de minimis incremental costs, which will be paid from operating cash and disclosed in future reports, if material.

# **Minimum and Maximum Investment Amount** 
We may, in our discretion, impose per-listing order caps and reject an order that would cause a subscriber to exceed the maximum amount permitted under our Financial Suitability Requirements (including amounts already committed or invested but not yet settled). We accept only the compliant portion of any order; any unused portion is not accepted and no ACH debit is initiated for that portion. See "Procedures for Subscribing—Right to Reject Subscriptions" and "Investor Eligibility and Financial Suitability."

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# **Illustrative scenarios (non-exhaustive):** 
• Suitability rejection. A subscriber's suitability limit is $25,000 and they already have $24,600 in commitments/holdings. They place a $1,000 order. We reject the order in full. A message with the stated reason for rejection is displayed on screen. The subscriber may resubmit an order at or below $400.

# **Plan of Distribution** 
Upon SEC qualification and the effectiveness of our Texas issuer-dealer and agent registrations, we will commence the offer of up to $600,000 aggregate principal amount of Notes within two calendar days after the qualification date, and thereafter make offers and sales on a continuous basis until the earlier of selling the full amount or terminating the Offering. We expect our Texas issuer-dealer and agent registrations to be effective prior to sales to Texas residents; we cannot assure timing. LOF will distribute Notes exclusively through its proprietary online platform at crowdcash.cc. (the "Platform") Investors place electronic, conditional subscriptions in $0.01 increments, subject to a $50 minimum principal amount per Note (and, solely to allocate the final portion of a Borrower Loan, a single Residual Note under $50). There is no minimum number of Notes that we are required to sell in this offering. At this time, sales are limited to verified Texas residents. We do not custody investor funds or maintain investor accounts. Subscription amounts are paid directly to LOF (as issuer) after order acceptance and ACH settlement; we do not operate an intermediary client-funds account.

The Company will offer and sell the Notes directly through the Platform, without the participation of a registered broker-dealer. Our officers who participate in the offering will do so in reliance on the "issuer" safe harbor in Rule 3a4-1 and will: (i) not be compensated by commissions or other transaction-based compensation; (ii) not be associated persons of a broker-dealer; and (iii) limit their activities to those permitted by Rule 3a4-1. The Company and its officers will not open brokerage accounts for investors, handle customer funds or securities beyond administrative functions, or provide personalized investment advice. We intend to sell the Notes in this offering through the efforts of our Chief Executive Officer, Erik Randall. Mr. Randall will not receive any compensation for offering or selling the Notes. We believe that Mr. Randall is not required to register as a broker-dealer because his participation will comply with Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"). In particular, Mr. Randall:

• is not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Exchange Act; and

• will not be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and

• is not an associated person of a broker or dealer; and

• meets the conditions of the following: &nbsp;&nbsp;&nbsp;&nbsp; • primarily performs, and will perform at the end of this offering, substantial duties for us or on our behalf otherwise than in connection with transactions in securities; and &nbsp;&nbsp;&nbsp;&nbsp; • was not a broker or dealer, or an associated person of a broker or dealer, within the preceding 12 months; and &nbsp;&nbsp;&nbsp;&nbsp; • did not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraphs (a)(4)(i) or (iii) of Rule 3a4-1 under the Exchange Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Offering Circular, we have not entered into any agreements with selling agents for the sale of the Notes. LOF does not expect to use the services of federally registered broker-dealers ("broker-dealers"). In conducting this offering, the associated persons of LOF intend to rely on the exemption from federal registration contained in Exchange Act Rule 3a4-1.

# **State law; Texas issuer-dealer and agent registrations** 
We will register in Texas as an issuer-dealer, and each individual who solicits in Texas will be registered as an agent of the issuer, before accepting any subscriptions. We will not make acceptances until those registrations are effective, and we will maintain them for the duration of the offering.

**Compensation**

Personnel involved in the offering are paid fixed salary and/or standard employee benefits not linked to sales. No commissions, finder's fees, success fees, or similar transaction-based compensation will be paid to any person in connection with this offering.

# **Physical Notes Will Not be Issued** 
We will not issue Notes in physical or paper form. Instead, our Notes will be recorded and maintained on the Platform in electronic form, with a facsimile on the Platform that investors may view and download an electronic facsimile of each Note within their account dashboard.

# **Offer Restrictions outside the United States** 
Other than in the United States, no action has been taken by us that would permit a public Offering of the securities offered by this Offering Circular in any jurisdiction where action for that purpose is required. The securities offered by this Offering Circular may not be offered or sold, directly or indirectly, nor may this Offering Circular or any other Offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this Offering Circular comes are advised to inform themselves about and to observe any restrictions relating to the Offering and the distribution of this Offering Circular. This Offering Circular does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this Offering Circular in any jurisdiction in which such an offer or a solicitation is unlawful.

# **Procedures for Subscribing** 
In order to subscribe to purchase our Notes a prospective investor must:

1. Navigate to crowdcash.cc

2. Sign up for an account with your email and password

3. Navigate to the marketplace at crowdcash.cc/invest

4. Sign the Investor Registration Agreement

5. Complete the linking process by linking one or more checking, savings, or brokerage accounts

6. Agree to an underwriting process so LOF may determine your financial suitability

7. Complete an identity verification process

8. Click a Borrower Loan on the marketplace meeting your risk criteria

9. Enter an amount to subscribe

10. Click "fund"

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**Right to Reject Subscriptions**

Your submission of a completed, executed subscription agreement is an offer to purchase Notes and does not constitute our acceptance. We may review and accept or reject your subscription, in whole or in part, only after the related Borrower Loan has reached 100% funding and we have determined to accept your subscription (the "Acceptance"). No funds will be debited from your designated account until Acceptance. If we reject your subscription (in whole or in part) or if the related Borrower Loan does not reach 100% funding, no funds will be debited and your subscription (or the rejected portion) will be void with no obligation on your part. If we accept less than the full amount of your subscription, we will debit only the accepted amount.

**Acceptance of Subscriptions**

Upon our Acceptance, we will countersign the subscription agreement and provide an electronic confirmation of sale. The Note is issued only upon disbursement of the related Borrower Loan after your funds have cleared (see "Settlement" below). Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request your subscription funds. A "sale" occurs upon our Acceptance (i.e., when a listing reaches 100% funding within its window) and is evidenced by our countersignature and electronic confirmation of sale; prior to Acceptance, no funds are transferred.

Subscriptions are accepted only if the related Borrower Loan listing reaches 100% funding within a five (5)-day window when the Borrower Loan is listed on the marketplace. Prior to Acceptance, we do not debit ACH and do not hold investor funds in escrow. Upon Acceptance, we initiate ACH debits for the accepted amounts; after ACH settlement we disburse loan proceeds to the borrower and simultaneously issue the corresponding Note(s) to investors. From time to time we may use Same Day ACH, FedNow, or RTP® for eligible transactions. Availability of these rails depends on the investor's bank participation, transaction limits and our fraud/operations controls; we cannot assure same-day or next-day settlement for any particular subscription. If a listing expires unfunded or a funded loan does not close, we cancel or reverse the transaction and return any debited amounts by ACH credit within three (3) to five (5) Business Days.

This Offering Circular will be furnished to prospective investors upon their request via electronic PDF format and will be available for viewing and download 24 hours per day, 7 days per week on our website at crowdcash.cc as well as on the SEC's website, sec.gov.

**Settlement; start of calculation**

An investor will become a Note holder of our company and the Note will be issued as of the date the related Borrower Loan is disbursed, after your funds have cleared. Amount Due on a Note begin to be calculated by reference to amounts applied on and after the Borrower Loan disbursement date (interest is accrued for calculation purposes on the same schedule and day-count basis as the related Borrower Loan). This timing does not depend on the date your ACH debit is initiated or settles to our account. All payments on the Notes are made by LOF from its general funds.

**Authorization & Notice for Recoupment Debits**

Investors will provide a preauthorized EFT consent in the Subscription Agreement authorizing variable-amount ACH debits to recover over-payments. LOF will provide written electronic notice at least ten (10) days in advance of each recoupment debit, stating the amount and scheduled date. No single debit will exceed the lesser of $5,000 or the applicable over-payment previously credited to the investor. Investors may stop payment or revoke authorization as described in the Subscription Agreement. LOF will originate new debit entries to recoup over-payments and will not use Nacha "Reversal" entries.

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# **Availability of Notes; No Holding of Unmatched Orders** 
Listings appear as Borrower Loans are approved. We do not accept subscriptions unless a listing is available, and we do not debit ACH or hold investor funds in escrow prior to acceptance. If there is an investor but no active listing, an order cannot be placed; if a listing exists but insufficient investors subscribe during its 5-day window, the listing expires and no orders are accepted/debited. Investors may enroll in optional Auto-Invest to allocate orders automatically subject to the same acceptance and 100% funding conditions. Subscriptions will not be accepted, and no ACH will be initiated, until required state registrations (including Texas issuer-dealer/agent) are effective.

# **Flow of Funds (No Escrow)** 
No funds move before Acceptance. Upon Acceptance, LOF initiates the investor ACH debit for the accepted amount. When good funds settle to LOF, LOF disburses borrower proceeds and the Note is issued as of the Borrower Loan disbursement date. If a listing expires or a loan does not close, any accepted/debited amounts are returned by ACH within 3–5 Business Days.

# **Timing of Proceeds Application; No Escrow** 
The proceeds of this offering will not be placed into an escrow account. This is a best-efforts, no-minimum offering. We accept an investor's subscription only if the related Borrower Loan listing reaches 100% of its funding target within the five (5)-day listing window. Funds remain in investors' bank accounts until Acceptance and our initiation of the ACH debit; we do not maintain, sweep, or otherwise control investor funds prior to Acceptance. Upon Acceptance, we initiate an ACH debit (and, where available, may use Same Day ACH, FedNow, or RTP®). Subscription payments typically settle to our bank account within three (3) to five (5) Business Days, subject to bank cut-off times and holidays. Upon receipt of good funds, we apply the proceeds to fund the corresponding Borrower Loan (net of any applicable origination fee) and simultaneously issue the related Note(s). From time to time we may prefund a Borrower Loan from company cash before final settlement; in those cases, the subsequently settled subscription proceeds reimburse us. If a listing expires unfunded, or if a loan does not close after Acceptance, we cancel the affected subscriptions and return any debited amounts by ACH credit within three (3) to five (5) Business Days. See "Procedures for Subscribing," "Offer and Sale Process (Each Note or Series)," "Delay in Payment of Proceeds," and "Use of Proceeds."

# **Delay in Payment of Proceeds** 
When a Borrower Loan listing reaches 100% funding within the five (5)-day window, we countersign the necessary investor subscriptions and initiate ACH debits (and, where available, may use Same Day ACH, FedNow, or RTP®). Although a commitment is recorded on our platform at acceptance, subscription payments settle to our bank account on a deferred basis—typically within three (3) to five (5) Business Days after initiation, subject to bank cut-off times and holidays; expedited settlement is not assured for any particular subscription.

Upon receipt of good funds, we apply the settled subscription proceeds to fund the corresponding Borrower Loan (net of any applicable origination fee) and simultaneously issue the related Note(s). Prior to acceptance, we do not debit ACH and do not hold investor funds in escrow. From time to time we may prefund a Borrower Loan from company cash before final settlement; in such cases, the subsequently settled subscription proceeds reimburse us and do not change investors' rights or risks under the Notes.

Returns and failed payments. ACH debits can be returned or reversed under network rules (e.g., insufficient funds or unauthorized debit). If a subscription payment fails or is returned after acceptance, we may cancel the affected subscription, reallocate the Note to other investors, retain the related Borrower Loan on our balance sheet, or use company funds to cover any shortfall, in each case as

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described under "Procedures for Subscribing—Failed or Returned Payments." Investors whose payments fail or are reversed will not be entitled to the affected Note.

# **Return of Funds / Cancellations** 
This is a continuous, no-minimum, best-efforts offering; there are no arrangements to return funds if we do not sell all Notes qualified in this offering. As Acceptance occurs only when a listing reaches 100% funding within its five (5)-day window, most unfilled orders are never accepted and therefore never debited. If a subscription was accepted and ACH debited but the Borrower Loan does not close (e.g., borrower withdrawal), we cancel the origination and return amounts by ACH credit within three (3) to five (5) Business Days. No escrow accounts are used at any stage.

# **Servicing and Distributions (Notes)** 
For each borrower remittance, LOF initiates an ACH debit from the borrower's linked account. Funds settle to LOF's bank account as good funds under the applicable payment-rail rules. LOF then applies cash to principal and/or interest on the related Borrower Loan in accordance with the loan documents. LOF will then post the Calculation Statement and initiate ACH credits from its general funds to Noteholders on the Note Payment Date.

Unless the loan documents or applicable law require otherwise, borrower payments are applied first to accrued interest and required charges permitted by law, then to principal. (Late fees and other non-interest charges are included in the Interest Component.)

After charge-off, any cash recovered is included on the Loan Payment Date when LOF applies the recovery to the Reference Loan. The interest portion of recoveries remains subject to LOF's 15% servicing fee on interest. Collection agencies may retain a portion of recoveries and legal/transaction fees; these amounts are reflected as Permitted Costs/Adjustments.

For operational efficiency, LOF may aggregate payments into a single ACH credit per Noteholder per day and display the underlying Series-Level detail in the Calculation Statement(s). We may use standard ACH, Same Day ACH, FedNow, or RTP®; posting times depend on each receiving bank's participation and cut-offs, and we cannot assure same-day or next-day posting for any particular remittance.

If the Calculation Statement for a Note Payment Date shows $0, LOF will post a Zero Amount Due Notice and no payment is made for that event. A $0 Amount Due is not a payment default by LOF.

# **Nature of the Notes; rights and recourse** 
The Notes are unsecured, unsubordinated corporate debt obligations of LOF. All payments on the Notes are made by LOF from its general funds in the amounts calculated for each payment event (the "Amount Due"). References to borrower or loan "collections" are used solely to calculate the Amount Due and does not limit the source of payment. Investors are creditors of LOF only and have no lien, security interest, or ownership interest in any Borrower Loan, borrower remittance, or LOF account. LOF does not maintain a trust, SPV, segregated account, or Series-Level lockbox for Noteholders. See "Ranking and Security."

Each Note is associated for calculation purposes with a specific Reference Loan. On each Loan Payment Date, LOF determines the Amount Due by reference to amounts applied to the Reference Loan. A Note's principal is reduced only by the principal portion of Amount Due paid to that Note. The Amount Due for a payment event may be zero (for example, when no cash is applied to the Reference Loan or after certain modifications or charge-offs)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower remittances are received by or for LOF and deposited into LOF's general operating accounts; funds are not transferred directly from borrowers to investors. LOF uses commercially reasonable efforts to service and collect Borrower Loans, including workouts, modifications consistent with our Servicing Standard, charge-offs, and third-party collections where appropriate. Except for the limited remedies described in "Limited Repurchase and Indemnification Policy," LOF has no obligation to advance, guarantee, or otherwise make up missed borrower payments, and no make-whole or yield-maintenance applies. See also "Covenants and Defaults."

# **Tax and Legal Treatment** 
For U.S. federal income tax purposes, LOF expects to treat the Notes as its debt. Although Notes are issued at par, "stated interest" on a Note is payable only to the extent amounts are applied to interest on the Reference Loan and included in the Amount Due. Because stated interest is not unconditionally payable by the issuer, it is generally not "qualified stated interest" under applicable Treasury regulations. In that case, amounts on a Note that are economically comparable to interest are included in the Note's stated redemption price at maturity, producing original issue discount ("OID") even when the issue price equals principal.

LOF intends to furnish a Form 1099-OID to any investor for whom OID includible in gross income for the calendar year is at least $10, as provided in IRS guidance. Holders generally must include OID in ordinary income over time using a constant-yield accrual method based on an expected (projected) payment schedule that reflects the calculation mechanics (including that the interest component of Amount Due is 85% of interest applied to the Reference Loan and net of LOF's 15% servicing fee on interest).

If the Notes are treated as contingent payment debt instruments ("CPDIs") because payments are significantly contingent, OID would still accrue under the non-contingent bond method using a comparable yield and a projected payment schedule determined in good faith. Under the CPDI rules, differences between actual and projected payments generally result in positive or negative adjustments includible in income (or deductible, subject to limitations) in the year of the variance. On a sale, retirement, or other taxable disposition of a Note, a holder generally recognizes gain or loss equal to the difference between the amount realized and the holder's adjusted tax basis (which includes previously accrued OID and reflects any adjustments).

The tax treatment of the Notes is uncertain in several respects, and the IRS could assert a different treatment. The discussion above is a summary for general information only and is not tax advice. Holders should consult their own tax advisers regarding the U.S. federal, state, local, and non-U.S. tax consequences of holding and disposing of the Notes, including the application of the OID and CPDI rules, reporting and withholding (including backup withholding and, where applicable, FATCA), and the treatment of the servicing fee and any recoveries.

# **Selling Securityholders** 
There are no selling securityholders. No securities are being offered for the account of any securityholder, and no affiliate or insider is selling Notes in this offering.

# **Purchases by Officers and managing members** 
LOF's Management, employees and any other personnel are permitted to purchase Notes. Any such purchases shall be conducted in compliance with the applicable provisions of Regulation A and as determined in "Financial Suitability Requirements" disclosed elsewhere in this Offering Circular.

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# **Market-Makers, Stabilization and Lock-Up Arrangements** 
Not applicable. There is no public trading market for the Notes and we do not intend to list or quote the Notes on any securities exchange or inter-dealer system. This is a continuous, best-efforts, self-underwritten offering conducted exclusively through our online platform without any placement agents or FINRA member underwriters. Accordingly, there are no market-making arrangements, price-stabilization activities (e.g., under Regulation M), or lock-up agreements. No underwriting commissions, concessions or "penalty bids" apply.

# **Confirmation of Sales to Discretionary Accounts** 
Not applicable. We do not accept investment discretion over subscriber accounts, and we will not confirm sales of Notes to any account over which we or our associated persons exercise discretionary authority. Orders are self-directed by investors through our platform. Our optional Auto-Invest feature executes orders solely pursuant to investor-selected filters and does not grant us discretionary authority. See "Procedures for Subscribing" and "Investor Eligibility and Financial Suitability."

# **Advertising, Sales and Promotional Materials** 
In addition to this Offering Circular, and subject to applicable securities laws, we may use written and oral marketing and other promotional materials in connection with this offering. Any "testing-the-waters" communications will comply with Rule 255 of Regulation A, including the required legends that (i) no money or other consideration is being solicited and, if sent, will not be accepted; (ii) no offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is qualified, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance after the qualification date; and (iii) an indication of interest involves no obligation or commitment of any kind. After the public filing of the offering statement, each such communication will include, or provide a URL link to, the most recent Preliminary Offering Circular or state from whom it may be obtained.

We will file on EDGAR, as exhibits to our Form 1-A, all written "testing-the-waters" materials used under Rule 255 (and, if applicable, materials used under Rule 241) at the time of initial submission or filing and will update such exhibits for any additional or revised materials.

After qualification, any written offers will be made pursuant to Rule 254 and will be accompanied or preceded by the most recent offering circular filed with the Commission.

Our marketing materials will not conflict with this Offering Circular and will be prepared with a view to presenting a balanced discussion of risks and potential rewards. To the extent we include short excerpts or quotations from third-party publications without obtaining consent, such excerpts will be attributed, used fairly, and not presented in a manner that implies endorsement. Such materials are not part of this Offering Circular and do not provide a complete understanding of this offering; investors should rely only on this Offering Circular when making an investment decision.

As this is a continuous offering, we file offering circular supplements under Rule 253(g) to set forth the specific terms of each day's Note listings, as described under "Listing Supplements."

# **Post-Qualification Amendments to this Offering Circular** 
If there is any material change to the information in our qualified Form 1-A offering statement (including this Offering Circular), we will file a post-qualification amendment to Form 1-A and seek re-qualification by the SEC before using the amended materials. Material changes include, without limitation, fundamental changes to the terms of the offering or the securities offered, a material change in our plan of distribution, a change to the price or size of the offering beyond any previously qualified

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range, the addition of a new class or series of securities not previously qualified, and material developments affecting us or the securities. While a post-qualification amendment is pending, we will suspend offers and sales and will not accept new subscriptions until the SEC has re-qualified the amended offering statement.

# **Listing Supplements** 
Because this is a continuous offering and this Offering Circular presents only ranges of Note maturities, interest rates and prices, we will file offering circular supplements pursuant to Rule 253(g) to set forth the specific terms of each day's Note listings.

• **C adence.** On each Business Day that EDGAR is accepting filings (typically beginning at 6:00 a.m. U.S. Eastern Time), we will file a Listing Supplement that reflects all Note listings posted on the Marketplace during the prior calendar day. For example, listings posted on Monday are included in a supplement filed on Tuesday morning. If the prior day is a Saturday, Sunday, or U.S. federal holiday, the supplement is filed on the next Business Day.

• **Content.** Each Listing Supplement bears information identical to the Marketplace listing, including, as applicable: Note ID, principal amount, term, APR, Investor Yield, the posting date/time, and other information as described in "Investor Information Access".

• **Availability.** Filed supplements are available on the SEC's EDGAR website and on our website under Offering Documents.

• **Other supplements.** Modifications that materially affect timing or amount of payments on an issued Note are supplemented within two (2) Business Days (see Investor Notice of Modifications). Policy-level changes may require an offering circular supplement or a post-qualification amendment, as appropriate.

# **Offering Period and Expiration Date** 
The termination of the offering will occur on the earlier of (i) the date that subscriptions for and awards of our Notes offered hereby equal $600,000; (ii) the date one year after the qualification of this offering; or (iii) an earlier date determined by the Company in its sole discretion. We reserve the right to terminate this offering for any reason at any time.

# **Ongoing Reporting** 
As a Tier 2 issuer under Regulation A, we will file with the SEC: (i) an annual report on Form 1-K within 120 days after each fiscal year end; (ii) a semiannual report on Form 1-SA within 90 days after the end of the first six months of each fiscal year; and (iii) current reports on Form 1-U within four business days of certain material events. These filings will be publicly available on the SEC's EDGAR website and, to the extent practicable, on our website. Investors may also request copies from us at no cost.

# **How the Platform Marketplace Works** 

# **Investor Information Access** 
Each Borrower Loan approved for listing appears on our Platform Marketplace with key terms and a curated set of anonymized borrower metrics at the time of posting. Investor-visible loan terms and cash-flows include: loan amount (and total financed and any origination fee), borrower APR (and stated rate), term, scheduled monthly payment and expected payment schedule, expected interest (gross and net of servicing fees), Investor Yield and Investor Net Yield, loan start and end dates, and the corresponding duration in days. The anonymized borrower metrics displayed include the Platform Risk

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Rating and the following derived variables: banking history depth (as a fraction of 24 months), debt-service-coverage ratio (DSCR), liquidity coverage (days), net cash-flow volatility, income trend, savings rate, credit utilization ratio, short-term liability ratio, net-worth-to-income, delinquency indicator, asset volatility, and a summary of principal underwriting drivers. Personally identifiable information is not displayed. Once posted, the foregoing terms and metrics are locked for that listing (subject only to correction of manifest errors or actions permitted under our servicing and limited repurchase policies).

# **Offer and Sale Process (Each Note or Series)** 
Borrowers request a loan with a given term and principal amount, are underwritten by LOF, and complete a KYC/AML process. For each Borrower Loan that is approved for listing:

1. **Listing; terms.** We post an approved Borrower Loan as a listing with the loan amount, fixed borrower APR (and corresponding Investor Yield), term, and a five (5) calendar-day listing window. The funding target equals 100% of the loan amount; we do not partially fund loans.

2. **Investor onboarding.** Investors complete identity verification (Plaid Identity Verification, including liveness, government ID review, and KYC/AML) and financial suitability/accreditation checks, as described under "Investor Eligibility and Financial Suitability."

3. **Subscription (conditional).** Investors place an electronic order for one or more Notes in variable denominations with a $50 minimum tied to a listed Borrower Loan. Solely to true-up the exact funding amount, we may issue a single residual Note in a Series under $50 (the "Residual Note"). Orders are conditional and are not accepted unless and until the listing reaches 100% funding within the five (5)-day window. Listings can be found on the lender home page in the market tab at crowdcash.cc/invest. Prior to Acceptance, a subscriber's funds remain in the subscriber's linked bank account; we do not place any hold or reserve on the account, we do not sweep or otherwise control investor funds, and we do not use any escrow or custodial account.

4. **Acceptance and debiting.** If—and only if—the listing reaches 100% of its funding target within the window, we accept the subscriptions needed to reach 100% and initiate ACH debits for those accepted amounts. No funds move before Acceptance, and no amount is debited for any unaccepted portion of an order.

5. **Settlement, origination, and issuance.** After ACH settlement (typically three (3) to five (5) Business Days, subject to bank cut-off times; from time to time we may use Same Day ACH, FedNow, or RTP® where available), LOF disburses loan proceeds to the borrower and simultaneously issues the corresponding Note(s) to investors. There is no debit or disbursement prior to Acceptance and no escrow. Interest on the Notes begins to accrue on the Borrower Loan disbursement date, shown in the lender home page investments tab at crowdcash.cc/invest.

6. **Expiration / withdrawal / failed close.** If the listing fails to reach 100% funding before the window closes, or if the borrower withdraws, we do not accept pending orders and no ACH is debited. If subscriptions were accepted and ACH was debited but the loan nevertheless does not close, we reverse/cancel the origination and return funds by ACH credit within three (3) to five (5) Business Days.

7. **Confirmation and delivery.** We provide an electronic confirmation of sale and satisfy final offering circular delivery under Regulation A (including permitted notice-and-URL delivery) within two (2) Business Days of sale (i.e., Acceptance).

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# **Illustrative Example (how a $2,625, 12-month loan is funded and paid)** 
• **Listing; terms.** Borrower requests $2,625 for 12 months. LOF assigns 18.0% A after underwriting the Borrower (within the disclosed range for the applicable Risk Rating/term) and an origination fee of $125, so $2,500 is disbursed at funding. Listing is open for five (5) days.

• **Investor orders.** Subscriptions fill in $50 increments with a single Residual Note (if needed) to true-up the final amount. For a $2,625 listing, this can be 52 × $50 + 1 × $25 (a $25 Residual Note), or 51 × $50 plus one investor taking a ($50 + $25) Note where we allocate the residual to that investor. On day three (3) the listing reaches 100%; LOF accepts only the needed subscriptions and initiates ACH debits for those amounts (sale occurs upon Acceptance).

• **Funding / issuance.** After ACH settlement (generally three (3) to five (5) Business Days; faster rails may be used where available but are not assured), LOF disburses $2,500 to the borrower and issues 53 Notes (52 standard $50 Notes and one $25 Residual Note) to investors. Interest on the Notes begins to accrue on the Borrower Loan disbursement date.

• **Payments / servicing.** On each Note Payment Date, LOF pays from its general funds the Amount Due for the applicable Notes, calculated by reference to amounts applied to the Reference Loan during the period. Payments within a Series are allocated based on each Note's Fractional Interest in the Reference Loan immediately prior to the Loan Payment Date. The Loan Payment Date is the day LOF posts the Calculation Statement for the period (ordinarily the day LOF applies funds to the Reference Loan and records "good funds"); if that day is not a Business Day or a payment-rail delay occurs, LOF will remit by close of the next Business Day. See "Debt Securities—Notes—Calculation of Amount Due."

# **When Borrowers Receive Funds** 
From time to time we may disburse Borrower Loan proceeds after Acceptance but before final settlement using LOF's operating cash (not investor funds). Any prefund exposure ends on settlement; if a loan fails to close, we reverse the transaction and return any investor ACH debits within 3–5 Business Days. (see "Timing of Proceeds Application"). No disbursement occurs before acceptance. We do not maintain escrow, custodial, trust, or segregated investor accounts; remittances are paid from our general funds.

# **Investor Eligibility and Financial Suitability Requirements** 
We are limiting sales to Texas residents who also meet one or more of the suitability standards below. These standards are issuer-imposed and are informed by the NASAA Statement of Policy Regarding Unsound Financial Condition, with additional limits we adopted to reduce over-concentration. They are not conditions of any state approval or review.

a) You must have an annual gross income of at least $80,000; (ii) your net worth must be at least $80,000 (exclusive of home, home furnishings and automobiles); and (iii) the total amount of Securities you purchase cannot exceed 10% of your annual income or net worth (exclusive of home, home furnishings and automobiles); or

b) Your net worth must be at least $280,000 (exclusive of home, home furnishings and automobiles); and (ii) the total amount of Securities you purchase cannot exceed 10% of your annual income or net worth (exclusive of home, home furnishings and automobiles).

For purposes of these suitability requirements, you and your spouse are considered to be a single person. In addition, the following definitions apply:

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• "annual gross income" means the total amount of money you earn each year, before deducting any amounts for taxes, insurance, retirement contributions or any other payments or expenses;

• "net worth" means the total value of all your assets, minus the total value of all your liabilities. The value of an asset is equal to the price at which you could reasonably expect to sell it. In calculating your net worth, you should only include assets that are liquid, meaning assets that consist of cash or something that could be quickly and easily converted into cash, such as a publicly-traded stock. You shouldn't include any illiquid assets, such as homes, home furnishings or cars;

• "net investment" means the principal amount of Securities purchased, minus principal payments received on the Securities. Investors should be aware that LOF may apply more restrictive financial suitability standards or maximum investment limits to Texas residents. If established, before making commitments to purchase Notes each investor will be required to represent and warrant that they meet these minimum financial suitability standards and maximum investment limits.

# **Determination of Suitability** 
During onboarding, investors complete identity verification using Plaid's Identity Verification service. Plaid's service performs a liveness check and analyzes a government-issued ID as documentary evidence. Specifically, we rely on the physical address provided on the government-issued ID analyzed through Plaid's Identity Verification service; to the extent the ID lists a Texas physical address, we treat the applicant as a Texas resident (subject to additional verification if other information conflicts). We cross-check identity and account-ownership outputs from Plaid Identity Verification against ownership data returned from Plaid Link (bank-linked accounts). If information conflicts or cannot be verified, we pause the account and request clarification or additional materials via email at contact@live-oak-financial.com.

To determine whether an investor is accredited or non-accredited, we review permissioned financial account data linked through Plaid Link and algorithmically estimate income (e.g., recurring payroll deposits) and net worth (excluding a primary residence, home furnishings and automobiles). If the automated process cannot confirm status, the investor may submit supporting documentation by email to contact@live-oak-financial.com. (There is no in-platform document-upload feature.) Entity investors provide an authorized certification of accredited status and, if requested, supporting financial information by email.

# **State Law Exemption and Offerings to "Qualified Purchasers"** 
Our Notes are being offered and sold only to "qualified purchasers" (as defined in Regulation A under the Securities Act of 1933). As a Tier 2 offering pursuant to Regulation A under the Securities Act, this offering will be exempt from state "Blue Sky" law review, subject to certain state filing requirements and anti-fraud provisions, to the extent that our Notes offered hereby are offered and sold only to "qualified purchasers" or at a time when our Notes are listed on a national securities exchange. "Qualified purchasers" include: (i) "accredited investors" under Rule 501(a) of Regulation D and (ii) all other investors so long as their investment in our Notes does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons). Accordingly, we reserve the right to reject any investor's subscription in whole or in part for any reason, including if we determine in our sole and absolute discretion that such investor is not a "qualified purchaser" for purposes of Regulation A. Separately from federal preemption, the Company has voluntarily limited sales to Texas residents at this time. For non-accredited natural persons, we enforce (i) our NASAA-informed suitability

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thresholds and (ii) Regulation A, Tier 2 limits (10% of the greater of annual income or net worth). The platform computes caps from Plaid-linked data and blocks orders that would exceed either limit.

# **Investment Amount Limitations** 
Generally, no sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, you are encouraged to refer to www.investor.gov.

For non-accredited individuals, we enforce both (i) our NASAA-based suitability thresholds (as disclosed above) and (ii) the Regulation A, Tier 2 cap of 10% of the greater of annual income or net worth set forth in Rule 251(d)(2)(i)(C) of Regulation A. Using Plaid-linked data and investor representations, the platform computes the applicable cap and blocks any order that would exceed it. If our system flags inconsistencies, we request clarifying information by email; unresolved cases are declined.

For entity investors that are not accredited, purchases are capped at 10% of the greater of annual revenue or net assets as of when the investor last submitted suitability information to us. An authorized signatory certifies these amounts and, if requested, provides supporting financials by email. We apply the cap on each order based on the most recent certification on file.

The only investor in this Offering exempt from this limitation is an accredited investor, an "Accredited Investor," as defined under Rule 501 of Regulation D. If you meet one of the following tests you should qualify as an Accredited Investor:

i. You are a natural person who has had individual income in excess of $200,000 in each of the two most recent years, or joint income with your spouse or spousal equivalent in excess of $300,000 in each of these years, and have a reasonable expectation of reaching the same income level in the current year;

ii. You are a natural person and your individual net worth, or joint net worth with your spouse or spousal equivalent, exceeds $1,000,000 at the time you purchase the Notes (please see below on how to calculate your net worth);

iii. You are a director, executive officer or general partner of the issuer or a manager or executive officer of the general partner of the issuer;

iv. You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, a corporation, a Massachusetts or similar business trust or a partnership or limited liability company, not formed for the specific purpose of acquiring the Notes, with total assets in excess of $5,000,000;

v. You are a bank or a savings and loan association or other institution as defined in the Securities Act, a broker or dealer registered pursuant to Section 15 of the Exchange Act, an investment advisor registered pursuant to the Investment Advisers Act of 1940 or registered pursuant to the laws of a state, an investment advisor relying on the exemption of registering with the SEC under the Investment Advisers Act of 1940, an insurance company as defined by the Securities Act, an investment company registered under the Investment Company Act of 1940, or a business development company as defined in that act, any Small Business Investment Company licensed by the Small Business Investment Act of 1958, or a Rural Business Investment Company as defined in the Consolidated Farm and Rural Development Act, or a private business development company as defined in the Investment Advisers Act of 1940;

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| | |
|:---|:---|
|  | You are an entity (including an Individual Retirement Account trust) in which each equity owner is an accredited investor; |
| vii. | You are a trust with total assets in excess of $5,000,000, your purchase of Notes is directed by a person who either alone or with his purchaser representative(s) (as defined in Regulation D promulgated under the Securities Act) has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment, and you were not formed for the specific purpose of investing in the Notes; or |
| viii. | You are a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has assets in excess of $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors; |
| ix. | You are an entity, of a type not listed in the above paragraphs iv, v, vi, vii, or viii, not formed for the specific purpose of acquiring the Notes, owning investments in excess of $5,000,000; |
| x. | You are a natural person holding in good standing one or more professional certifications or designations or credentials from an accredited educational institution that the SEC has designated as qualifying an individual for accredited investor status; |
| xi. | You are a "family office," as defined by the Investment Advisers Act of 1940, with assets under management in excess of $5,000,000, and is not formed for the specific purpose of acquiring the Notes, and your prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or |
| xii. | You are a "family client," as defined under the Investment Advisers Act of 1940, of a family office meeting the requirements in the above paragraph xi, and your prospective investment in the issuer is directed by such family office pursuant to the above paragraph xi. |

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In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the fiduciary directly or indirectly provides funds for the purchase of the Notes.

In order to purchase our Notes and prior to the acceptance of any funds from an investor, an investor will be required to represent, to our satisfaction, that he or she is either an accredited investor or is in compliance with the 10% of net worth or annual income limitation on investment in this offering as described above.

We maintain an electronic log of each investor's cumulative purchases and re-check limits on every additional order. We prompt investors to refresh their suitability and accreditation information annually, and we may require an earlier refresh if our systems detect material changes. If information suggests that prior representations are inaccurate, we suspend the account and request additional documentation; if unresolved, we decline the order.

# **Use of Proceeds** 
We expect to apply all net proceeds from this offering to fund Borrower Loan originations. We will not use offering proceeds to pay offering expenses. We will not, under any circumstances, use any proceeds of this offering to pay our offering or operating expenses, either directly or indirectly

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(including by reimbursing any person). If our available non-offering cash is insufficient to pay such expenses at any time, we will suspend accepting subscriptions until sufficient non-offering cash is available. Offering expenses have been, or will be, paid from our operating cash. We expect to fund our operating costs exclusively from non-offering sources, including cash on hand, borrower-paid origination fees, our servicing fee on interest, and, if needed, discretionary capital contributions from our Managing Member (see "Plan of Operations"). No offering proceeds will be used for these purposes. We do not charge investors any origination fee. Borrowers pay a one-time origination fee of 3.00%–9.99% at loan funding. Separately, we retain a 15% servicing fee on interest collected (no fee on principal).

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| | | |
|:---|:---|:---|
| Proceeds Level | Total Proceeds | Planned Use of Proceeds — Loan Originations |
| 25% sold | $150000 | $150,000 (100%) |
| 50% sold | $300000 | $300,000 (100%) |
| 75% sold | $450000 | $450,000 (100%) |
| 100% sold | $600000 | $600,000 (100%) |

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Note (illustrative Company revenue, not a use of proceeds): At the proceeds levels above, borrower-paid origination fees would be approximately $4,500–$14,985 at $150,000; $9,000–$29,970 at $300,000; $13,500–$44,955 at $450,000; and $18,000–$59,940 at $600,000 (3.00%–9.99% of funded loan principal). These fees are Company income and are not drawn from offering proceeds.

# **Unallocated Proceeds** 
All proceeds are allocated as shown above; there is no material portion unallocated at this time.

# **Use of Proceeds vs. Insider Payments** 
None of the net proceeds will be used to compensate officers, managing members, or any affiliated persons of LOF, to reimburse any of the foregoing for expenses, or to repay any loans or advances from affiliates.

# **Best-Efforts Offering Variability** 
This is a best-efforts offering with no minimum offering amount and no escrow. Subscription proceeds are available to us upon acceptance and are applied as described below. If fewer than all Notes are sold, we will still carry out our plan of operations (see "Plan of Operations").

# **Right to Change** 
LOF reserves the right to reallocate the uses of proceeds solely among loan originations (for example, among borrower grades, maturities, or timing of funding) if business conditions change, with any material change prominently disclosed by supplement or amendment, as applicable. We will not reallocate any offering proceeds to pay offering or operating expenses or to repay any indebtedness.

# **Description of Business** 

# **Narrative Description of Business** 
Live Oak Financial LLC ("LOF," the "Company," "we," "us") is a Texas-based, development-stage company formed in June 2024 to operate an online marketplace that offers unsecured, fixed-rate, fully amortizing personal loans to qualified borrowers ("Borrower Loans") and issues unsecured corporate debt securities—Borrower Payment Dependent Notes (the "Notes")—to investors. We originate each Borrower Loan directly to the borrower and, after investor funds have cleared and loan proceeds are disbursed, we simultaneously issue Notes in variable denominations with a $50 minimum (we may issue a single Residual Note under $50 solely to fully fund a listing), subject to an aggregate

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offering cap of $600,000. We act as issuer, dealer, and servicer of the Notes and earn borrower-paid origination fees and a servicing fee on interest rather than any underwriting spread. See "Procedures for Subscribing," "Plan of Distribution—Servicing and Distributions (Notes)," and "Use of Proceeds."

Our marketplace is designed to facilitate a Texas-focused online model. To our knowledge, Texas borrowers and retail investors have limited options to participate in a streamlined, transparent digital process for unsecured installment credit and performance-linked Notes. Our objective is to provide a simple way for qualified borrowers to access fixed-payment credit and for investors to access fractional or whole Notes that are associated for calculation purposes with a specific Borrower Loan (a "Reference Loan"). All payments on Notes are made by LOF from its general funds in the Amount Due calculated for each Loan Payment Date; references to borrower "collections" are used solely to calculate the Amount Due and do not limit the source of payment. See "Debt Securities—Notes—Calculation of Amount Due" and "Ranking and Security."

We operate entirely online and do not maintain physical branches. Our underwriting leverages permissioned bank-link data (e.g., Plaid Asset Report) and proprietary models to evaluate cash-flow stability, deposit behavior, leverage indicators, and other risk factors. Our systems automate application intake, data gathering, underwriting, funding, investing, servicing, compliance monitoring, and fraud detection. Technology outputs inform, but do not eliminate, credit risk; model changes and data quality can affect outcomes. See "Setting Interest Rates" and "Risk Factors"

We generate origination fees from borrowers at funding and a servicing fee equal to 15% of interest applied to the Reference Loan (including the interest component of post-default recoveries), as described in "Plan of Distribution—Servicing and Distributions (Notes)" and "Debt Securities—Notes—Calculation of Amount Due." On each Loan Payment Date, LOF posts a Calculation Statement and on the Note Payment Date initiates ACH credits to Noteholders for their Amount Due, paid from LOF's general funds. See "Debt Securities—Notes—Interest and Payment."

# **Products** 
(a)  ***Lending Products*** Through the Platform, Live Oak Financial LLC ("LOF") offers unsecured, fixed-rate, fully amortizing personal loans to qualified Texas residents ("Borrower Loans"). Borrowers select a stated loan purpose (e.g., debt consolidation, credit card refinance, major purchases, home improvement, medical expenses, car repair, everyday bills, etc.). We do not verify post-funding use of proceeds. Applicants are evaluated under LOF's underwriting process using permissioned bank-link data and other information. We assign each approved application a Risk Rating and price the loan accordingly (borrower APR; corresponding Investor Yield). Borrower-paid origination fees may apply as disclosed in borrower agreements.

(b)  ***Investing Products*** 

***Borrower Payment Dependent Notes***

Borrower Payment Dependent Notes (the "Notes") are offered to eligible investors through crowdcash.cc (subject to Regulation A, financial suitability, and listing availability). Orders are variable in denomination with a $50 minimum (a single Residual Note under $50 may be issued solely to round funding). We accept subscriptions only if the related listing reaches 100% funding within five (5) days; no ACH is debited before acceptance, and Notes are issued at borrower disbursement after funds clear. From time to time we may prefund after acceptance and reimburse from subsequently settled subscriptions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes are unsecured, unsubordinated corporate debt obligations of LOF. All payments are made by LOF from its general funds, with the Amount Due for each Note calculated by reference to amounts applied to its associated Reference Loan. Investors have no lien or security interest, the Notes are not deposits, not FDIC-insured, and no trading market is expected.

This is a continuous, best-efforts offering under Rule 251(d)(3) subject to an aggregate cap of $600,000. Sales may occur from time to time without set offering periods. The active acceptance of new Note subscriptions may be paused when there are no approved Borrower Loans listed.

<u>Interest Rate of the Notes</u>

Each listing displays the borrower APR and the corresponding Investor Yield at posting. The borrower APR for a Series is fixed when posted (see "Setting Interest Rates"). Investor Yield is an estimate based on the calculation mechanics and may differ from actual results; prospective adjustments may occur only as described under "Limited Repurchase and Indemnification Policy—Risk-Rating Failure." See also "Debt Securities—Notes—Interest and Payment."

# **Boundaries** 
We do not offer business-purpose loans, investment advice or discretionary account management; we do not guarantee repayment or returns; and investors have no direct recourse to borrowers and no collateral securing the Notes.

# **Loan Application Process** 
1. **Application data**: Borrower enters requested loan amount and term (2-24 month term; $250-$5,000)

2. **Identity & account linking**: borrower consents to Plaid Identity Verification (liveness + government-ID check) and Plaid Link to connect at least one bank account; LOF matches identity and account-ownership outputs to the application.

3. **Underwriting & decisioning**: LOF computes derived risk variables and assigns a Risk Rating under LOF's proprietary model. LOF may counteroffer a smaller principal amount and/or a shorter term to satisfy affordability parameters and applicable Texas rate-cap constraints. Loans that meet Texas Office of Consumer Credit Commissioner (OCCC) lending regulations—including, as applicable, annual percentage rate ("APR") thresholds (at the time of this Offering Circular, APRs at or below 10% prior to LOF's receipt of a Regulated Lender's License and, after such licensure, APRs below 30%)—are approved for listing.

4. **Listing**: approved loans post to the Marketplace with loan amount, Borrower APR, term, payment schedule, Investor Yield, Risk Rating, and other risk metrics (see "How the Platform Marketplace Works—Investor Information Access") and anonymized borrower metrics. Listings are "locked" for 5 calendar days and must reach 100% funding to proceed.

5. **Funding/issuance**: upon 100% funding and successful ACH settlement from investors, LOF disburses proceeds to the borrower and issues the corresponding Note(s) simultaneously. If the listing expires or is withdrawn, no subscriptions are accepted and no ACH is debited. No escrow is used.

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# **Underwriting; Inputs, Methodology, and Minimum Standards** 
• **Inputs**: up to 24 months permissioned bank-link/asset-report data (balances/transactions), identity/account-ownership, and application data (purpose, term, principal amount).

• **Derived metrics**: We compute numerous derived variables from verified bank-link and application data to assign a proprietary Risk Rating (1–100). Not all derived variables are displayed to investors; a curated subset appears on each listing. See "How the Platform Marketplace Works—Investor Information Access."

• **Risk Rating**: proprietary, model-driven "bucket" used by the rate committee to set APR within disclosed ranges (subject to Texas OCCC rate ceilings and IRS AFR floor).

• **Minimum standard**: TX residency; successful Plaid IV (liveness + ID) and ownership match to the linked funding account; at least one linked bank account with at least 3 months of history; ability-to-repay (positive pro-forma cash flow) with DSCR ≥ 1.0 on the requested terms. LOF may decline at its discretion if metrics fall below program thresholds or fraud is suspected. (We do not increase APRs above the posted rate; borrower-level modifications are limited as disclosed under "Servicing Standard; Modifications.")

# **Loan Sizes, Maturities, and When Terms are Shown** 
Borrowers select a loan amount and term within our program bounds ($250–$5,000; 2–24 months, fully amortizing). We may counter-offer a smaller amount and/or shorter term to satisfy affordability criteria and Texas rate ceilings. The final loan amount, term, and borrower APR appear on the posted listing and are visible to potential investors at the time of posting; those terms do not change once posted, except to correct a manifest error or as otherwise permitted under our defined modification and repurchase policies.

# **Investor Experience—Manual Choice or Auto-Invest** 
• **Access to information**: For the information presented on each listing, see "How the Platform Marketplace Works—Investor Information Access."

• **Order type**: investors can select specific listings or enable optional Auto-Invest (off by default) using saved filters (e.g., Risk Rating range, term, max per loan).

• **Conditional subscription and acceptance**: orders are conditional; LOF accepts only if the listing reaches 100% funding within 5 days, then initiates ACH. Unneeded order portions are not accepted/debited.

• **Confirmations & payments**: after issuance, investors receive e-confirmations. Remittances are paid on the 3rd Business Day after each borrower payment. See "Debt Securities—Notes—Calculation of Amount Due."

• **Saturation:** if demand exceeds a listing's capacity, allocations are pro rata among eligible orders, with any odd-lot remainder allocated to a single Residual Note to round funding.

# **Cash Management and Funds Flow** 

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| • | **Before acceptance**: no ACH debit and no escrow. |
| • | **On acceptance**: ACH debits are initiated for the accepted investor amounts; after settlement, LOF disburses borrower proceeds and issues the Note(s). |
|  | **Servicing**: borrower payments are received by LOF and deposited into LOF's general accounts. On each Loan Payment Date, LOF calculates the Amount Due and on the Note Payment Date |

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|  | initiates ACH credits to Noteholders. Post-default recoveries are included when applied. If the Amount Due is $0, no payment is made and a Zero Amount Due Notice is posted. |
| • | **Rejected/canceled transactions**: if a subscription is rejected or a funded loan does not close, LOF returns amounts by ACH credit within 3–5 Business Days. |

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# **Operations and Technology.** 
LOF's proprietary platform automates borrower application intake, identity and bank-link verification, underwriting, listing creation, investment matching, loan funding, payment processing, servicing and collections, and regulatory compliance. We have no employees; our Managing Member devotes full-time efforts.

Plaid provides data connectivity, identity/account-ownership information, balance/transaction data, and identity verification services to LOF as a service provider pursuant to a commercial services agreement. Plaid does not make credit decisions, assign Risk Ratings, service or fund loans, or provide investment advice, and Plaid is not a party to any loan or investment transacted on the Marketplace. LOF pays Plaid fees for use of its services and retains sole discretion over underwriting criteria, identity-verification pass/fail thresholds, and Risk Ratings.

LOF uses Plaid Inc. ("Plaid") as a third-party service provider to (i) facilitate permissioned connections to financial institutions and retrieve identity, account, balance and transaction information through application programming interfaces ("APIs"), (ii) perform identity verification for both borrowers and investors, and (iii) initiate bank payments through Plaid Transfer, a multi-rail money-movement platform. ACH debits and credits (and, where available, RTP® or FedNow® payments) are originated by one or more partner banks that serve as our ODFI (Originating Depository Financial Institution) through Plaid's connections. Provider and bank partners may change from time to time.. Through Plaid's bank-link and asset-report features, and with user authorization, LOF receives up to twenty-four (24) months of account history (balances and transactions) across eligible accounts (e.g., checking, savings, credit card, loan and brokerage accounts). LOF also receives identity and account-ownership fields that enable LOF to confirm that the linked accounts belong to the applicant. In addition, LOF uses Plaid's Identity Verification service during onboarding to validate the identities of borrowers and investors by matching submitted identity information (and, where applicable, documents and other signals) to verification sources and returning verification results to LOF. LOF verifies information by (i) confirming a successful authenticated link to the borrower's financial institution(s), (ii) matching identity and account-ownership information returned via Plaid to application details, and (iii) performing automated checks for internal consistency (e.g., recurring income detection consistent with stated employment/income). LOF may request additional documentation (such as a government-issued identification document or pay statement) if data mismatches or anomalies are detected.

Using the permissioned account data and the borrower's application information, LOF computes a set of derived variables into a proprietary "Risk Rating" on a [1–100] scale (lower indicates higher risk / higher indicates lower risk). LOF may update the Risk Rating methodology from time to time to improve predictive performance; any changes will be applied prospectively.

Prior to funding, potential lenders are shown borrower information derived from verified data and the borrower's application, without personally identifiable information. LOF does not display bank account numbers, user credentials or other sensitive information to lenders. Each listing uses a unique loan identifier in place of the borrower's personal information.

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# **Online Activity Feed** 
For each Note and related Borrower Loan, the Platform includes an online activity feed at crowdcash.cc/ledger showing, for each payment or distribution item: amount, timestamp, status (see status key below), and the related Loan ID and Note ID. The Loan ID also appears on the electronic facsimile of the Note and in the investor's investments tab at crowdcash.cc/invest, so investors can confirm that a payment relates to their specific Note. A search/filter bar allows filtering by Loan ID and Note ID. The feed reflects all cash movements related to Borrower Loans and Notes (collections, remittances, reversals/returns, and adjustments).

• **Refresh cadence.** While we endeavor to display updates in near real time, the activity feed will be updated at least once per calendar day, no later than 11:59 p.m. U.S. Eastern Time.

• **Time conventions.** Timestamps reflect the Business Day and time the event was processed by our systems; ACH and other payment-rail cut-off times may cause events to post after local business hours.

• **Governance.** The activity feed is an informational tool. Our remittance obligation is measured as stated under "Plan of Distribution—Servicing and Distributions (Notes)" and "Debt Securities—Notes—Covenants and Defaults—Remittance covenant."

**Status key**

• **pending**: Payment instruction received and queued for processing; may still be canceled.

• **Posted**: Instruction released to the payment network at the applicable cut-off; no longer cancelable.

• **Settled**: Interbank settlement completed; funds have moved between institutions.

• **Failed**: Instruction rejected before network submission (for example, validation or compliance failure); no funds movement occurred.

• **Canceled**: Client-initiated cancellation accepted; instruction will not be submitted.

• **Returned**: Receiving institution returned a debit or credit with a network return code (for example, insufficient funds or unauthorized); we will reflect the reversal and act per the return code.

*Note: ACH debit returns typically occur T+2 to T+5 Business Days after initiation (consumer debit returns can occur later under network rules). See "Plan of Distribution—Servicing and Distributions (Notes)."*

We retain activity-feed records and underlying payment logs in accordance with our books-and-records policy. Any corrections to prior entries (for example, a late return) are timestamped and visible in the feed.

# **Corporate and Legal Matters** 
LOF has no subsidiaries or affiliates. It will hold a Texas consumer-lending license and will be registered as an issuer-dealer in Texas to conduct its marketplace lending and securities activities. Since inception, LOF has experienced no bankruptcies, receiverships, material mergers, acquisitions or asset sales, nor any pending or threatened material legal or regulatory proceedings.

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# **Distinctive or Special Characteristics** 
• **Single State Concentration. Borrower originations and Note sales are focused in Texas. Geographic concentration may increase sensitivity to state-specific economic and regulatory changes and can constrain growth relative to multi-state platforms.** 

• **Performance-linked, single-loan association.** Each Note is in a Series associated for calculation purposes with a single Borrower Loan (the "Reference Loan"). Payments are made by LOF from its general funds in the Amount Due, calculated by reference to that Reference Loan. There is no pooling, cross-collateralization, over-collateralization, trust, or SPV. Underperformance of one Series does not increase or decrease the Amount Due on any other Series, and there is no cross-Series recourse. (Issuer credit risk still applies; if the calculation yields $0 for a Series, no payment is owed for that event.)

• **Vendor Dependence.** LOF's ability to verify borrower identity and link consumer bank-account data is entirely dependent on its relationship with Plaid Inc. Without Plaid's data-aggregation services, LOF cannot operate its core underwriting or servicing functions.

• **Regulatory Framework.** We are subject to extensive state and federal securities and consumer-lending laws. We must maintain a Texas issuer-dealer license to offer and sell the Notes in Texas and make any required state securities notice filings. We may originate Borrower Loans without a Texas Regulated Lender License at lower APRs permitted under applicable law (for example, at or below 10% APR), but our ability to originate and price loans is more limited without that license. Obtaining and maintaining a Regulated Lender License will permit origination of higher-APR loans under Texas Finance Code and OCCC rules (for example, in certain cases up to 30% APR), which could expand borrower eligibility and investor demand for the Notes. Changes in law, licensing status, or regulatory interpretations could limit loan volume or pricing and could materially affect our business and results of operations.

• **No Collateral & Limited Recourse.** Borrower Loans are unsecured, and Notes entitle holders only to LOF's receipt of borrower payments; there is no direct lien on borrower assets or guaranty by third parties. Notes present unique risk profiles that require investor self-assessment of borrower credit performance and platform servicing capabilities.

• **Micro-denomination structure.** Notes are issued in variable denominations; orders may be placed in $0.01 increments, subject to a $50 minimum principal amount per Note. A single Residual Note under $50 may be used to fund 100% of a listing. This structure facilitates fractional participation but may increase the number of positions an investor manages.

• **Technology-Driven Scalability.** LOF's online-only, automated platform permits rapid scaling without the overhead of physical branches or manual underwriting, enabling cost-efficient growth but also requiring continuous investment in technology, cybersecurity and fraud-prevention to maintain platform reliability and user trust.

These factors and the nascent stage of LOF's operations are critical to understanding LOF's business model and the risks inherent in its future financial performance.

# **Limitation of Liability—Texas Small Business Issuers** 
In accordance with Section 4008.061 of the Texas Securities Act, Live Oak Financial LLC is a "small business issuer" (having annual gross revenues not more than $25 million and no SEC-registered class of equity securities) and is offering not more than $5 million of securities. Under that statute, in any action relating to this offering, the maximum recovery against any person engaged to provide services is capped at three times the fee paid to such person (unless intentional wrongdoing is

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shown), to the extent permitted by Texas law. Prospective investors will be asked to acknowledge receipt of this disclosure.

This Texas state-law provision applies only to claims under Texas law and does not limit, waive, or otherwise affect any rights or remedies that any investor may have under the federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934, and the rules and regulations thereunder. To the extent any term of this Offering Circular, the Subscription Agreement, or any related agreement is inconsistent with federal securities laws, it is unenforceable.

# **Description of Property** 
Our principal executive offices are at 3520 Alpine Autumn Dr, Austin, Texas 78744. We do not own or lease any real property. We utilize a dedicated ~100 sq ft room within the Managing Member's personal residence on an at-will, no-rent basis pursuant to an informal arrangement.

The room houses on-premises server hardware that supports origination, servicing, and payment-processing systems. The servers are owned by LOF and not subject to any material encumbrances. The space and capacity are suitable and adequate for current operations and anticipated near-term growth; current utilization is modest and additional hardware can be added within the room as needed.

Because we do not own or lease the residence, any mortgage or other encumbrance on the residence is not an obligation of LOF and does not affect our right to use the dedicated space. We are not engaged in mining operations.

# **Management's Discussion and Analysis of Financial Condition and Results of Operations** 
The following discussion should be read alongside our balance sheet as of December 31, 2024 and audited balance sheet of May 11, 2025, prepared in accordance with U.S. GAAP. This management's discussion and analysis of financial condition and results of operations, or MD&A, contains forward-looking statements that involve risks and uncertainties. Please see "Cautionary Note Regarding Forward-Looking Statements" in this Offering Circular for a discussion of the uncertainties, risks and assumptions associated with these statements. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods, and actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to those included in the "Risk Factors" section and elsewhere in this Offering Circular.

We operate as a single reportable segment and in a single geographic focus (Texas).

# **Operating Results** 
We have not recognized any revenues to date and had no cost of revenues in the periods presented. In addition to the $896 of routine start-up costs recognized in operating expenses, we incurred $3,500 of direct offering costs (legal opinion/consent and audit fees) as of the date of this Offering Circular. Under U.S. GAAP, direct and incremental costs of a debt offering are capitalized as deferred offering costs until issuance and therefore are not included in the amounts reported above or in our historical statements of operations. Upon issuance of Notes, such costs will be presented as a deduction from the carrying amount of the Notes and amortized to interest expense over the expected term; if the offering were not consummated, such costs would be expensed.

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# **Liquidity and Capital Resources** 
At December 31, 2024, we held $59.66 in cash and $35.00 in server hardware, with no liabilities and members' equity of $93.91. At May 11, 2025, we held $71,009 in cash and had no debt.

From inception in June 2024 through May 11, 2025, the sole member contributed an aggregate of $72,894 in cash and $493 in non-cash assets and received $1,030 in cash distributions (net cash contributed $71,864); of this amount, $71,160 was contributed during the 2025 interim period, primarily in deposits of $25,000, $25,000, $20,000, and $1,000. In 2024, a $500 capital contribution in June was followed by a $500 distribution in July; these items offset each other in the presentation of 2024 financing cash flows.

Our historical pre-launch burn rate averaged ~$75 per month. Once fully operational, we expect average monthly outflows of approximately $2,275 for marketing, professional fees, and vendor contracts (including a $12,000 annual data-aggregation commitment). Based on our cash on hand and the projected burn rate, we estimate more than 30 months of runway before considering any proceeds from this offering.

As of the date of this Offering Circular, we have paid $3,500 of offering expenses (legal opinion/consent and audits for FY 2024 and interim 2025) from operating cash and accrued $670 for the Texas state notice filing fee, to be paid upon qualification. No offering proceeds will be used to pay offering expenses. These items reduce (or, upon payment, will reduce) cash available for operations but do not affect gross or net proceeds of this offering. We do not expect material additional offering expenses.

We have no material commitments for capital expenditures as of May 11, 2025. If conditions change, our first course of action would be to throttle marketing and pause new listings, as part of our pre-defined spend controls.

We can launch and operate the platform, obtain and maintain required Texas registrations/licensing, and service any Notes issued without relying on proceeds from this offering. In addition, our Managing Member has indicated a willingness to make discretionary capital contributions of approximately $1,000 per month on an as-needed basis to cover operating costs and may contribute additional amounts to address unexpected expenses; there is no binding obligation to do so. We also reserve sufficient cash to service outstanding Notes through final maturities if we cease new issuance. In management's opinion, cash on hand will be sufficient to meet our cash requirements for at least the next six months.

# **Plan of Operations** 
Over the next 12 months, we intend to complete required state licensure in Texas, seek qualification of this Offering Statement under Regulation A (Tier 2), and commence a continuous issuance of our Notes in variable denominations with a $50 minimum (A single Residual Note under $50 may be used to fund 100% of a listing). State licensure is independent of SEC qualification and timing is subject to regulatory review; accordingly, we describe below how licensure relates to our planned start-up activities.

We intend to conduct the offering directly, without engaging a third-party broker-dealer. Accordingly, prior to making offers or sales of Notes to Texas residents, we will register as a dealer (issuer-dealer) with the Texas State Securities Board and register our Managing Member, Erik Randall, as an agent of the dealer. Our application materials are substantially complete, and we intend to make our Texas dealer and agent registrations effective concurrently with, or promptly after, SEC qualification of this Tier 2 offering. We will not accept subscriptions from Texas residents unless and until the Texas issuer-dealer and agent registrations are effective.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas law requires a Regulated Lender License issued by the Office of Consumer Credit Commissioner ("OCCC") for non-depository lenders that make, transact, or collect consumer loans with interest greater than 10% per year, among other situations under Chapter 342 of the Texas Finance Code. We are preparing an application for a Regulated Lender License and expect to file it promptly following SEC qualification. Until that license is effective, we will originate only loans with interest rates at or below 10% APR and will decline applications that would require rates above 10% APR; any such higher-rate loans (and the related Notes) will commence only after our Regulated Lender License is effective.

As of May 11, 2025, we had cash of $71,009 and no debt. We can launch and operate the platform, obtain and maintain required Texas registrations/licensing, and service any Notes issued without relying on proceeds from this offering. In addition, our Managing Member, Erik Randall, has indicated he is willing to make capital contributions of approximately $1,000 per month on an as-needed basis to cover operating costs and may contribute additional amounts to address unexpected expenses. These contributions are discretionary and not subject to any binding obligation or commitment. We also reserve sufficient cash to service outstanding Notes through final maturities if we cease new issuance. In management's opinion, proceeds from this offering are not required to satisfy our cash requirements for the next six months, and we do not anticipate raising additional funds in the next six months to implement the plan of operations. We believe our cash on hand will be sufficient to meet our cash requirements for at least the next six months.

# **Vendor Contracts** 
We maintain a services agreement with Plaid covering account linking, identity, balance, ACH/RTP/FedNow payment origination via Plaid Transfer, and ACH risk scoring via Plaid Signal. Fees are usage-based with a minimum annual commitment of $12,000. Plaid is not a bank; ACH entries are originated by one or more partner banks acting as our ODFI through Plaid's connections.

# **Material steps and timing** 
• **SEC qualification & offering commencement.** On the date of SEC qualification—and upon the same-day effectiveness of our Texas issuer-dealer and agent registrations—we will commence this Offering within two calendar days. We will not accept subscriptions until those registrations are effective.

• **Texas issuer-dealer & agent registration.** We will file and pursue effectiveness promptly after SEC qualification; we will not accept subscriptions until those registrations are effective.

• **Go-live/operations.** Listings post as Borrower Loans are approved; Notes issue when corresponding loans fund. Identity and bank-link verification use Plaid; paid plan begins after a short trial.

• **Texas Regulated Lender License (OCCC).** We will file promptly upon SEC qualification. Until our Texas Regulated Lender License (OCCC) is effective, we will originate only Borrower Loans at or below 10% APR and will decline applications requiring higher rates. The Regulated Lender License process and review may take up-to 60 days to complete.

# **Minimum cash required to launch and operate** 

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| Cost Item | Timing/Assumption | Amount |
| Texas Securities Registration | $670 initial; 1/10 of 1% of Total Offering | $670 |
| Texas Regulated Lender License | $800 initial; $200 + 0.05% per $1,000 advanced annually (max $600) | $800 |

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|:---|:---|:---|
| Plaid | $1,000/mo | 12000 |
| Audit & Reporting | Annual Reg A Reporting (CPA) | $2500 |
| Legal & Compliance | Routine Filings | $1000 |
| Marketing (acquisition floor) | $1,500/mo | $18000 |
| Total |  | ~$34,970 |

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Notes: (i) Development/hosting are performed in-house by the Managing Member at no material cost; servers are owned outright. (ii) Plaid total varies with the qualification date.

# **Operating plan by proceeds scenario** 
• Scenario A: De minimis proceeds ($0–$50,000). We prioritize required licensing/registrations and Plaid activation, and maintain a modest marketing budget (up to approximately $1,500/month) paced to origination capacity. Baseline operating expenses are funded from cash on hand.

• Scenario B: <25% of cap (≤$150,000). Same as Scenario A, with selective marketing increases (up to ~$2,500/month) only if listings warrant. Operations remain fully supportable from existing cash plus the discretionary capital-contribution backstop described above.

• Scenario C: >25% to full cap. We scale marketing and listing cadence to loan demand, maintain the Plaid contract, and continue periodic reporting/supplements. We expect (no assurance) to sell the full $600,000 within one year from initial qualification.

# **Additional potential funding sources** 
While we are not currently pursuing outside investment, the Company may consider additional capital to support operations or growth:

• **Member/managing member support (discretionary).** From time to time, our managing member, Mr. Randall, may, in his sole discretion, contribute additional equity capital or provide short-term advances/loans to cover operating expenses (for example, approximately $1,000 per month, and potentially additional amounts). There is no agreement, commitment, or obligation to provide such funds, and any support may be discontinued at any time. If structured as debt, any such insider loans would be unsecured, and subordination to the Notes would require a separate, executed subordination agreement with the lender; there is no assurance such subordination would be obtained.

• **Third-party financing (future).** We may in the future seek third-party capital (debt or equity) under a separate exemption or offering, in compliance with applicable securities laws. Such financing could be dilutive to existing ownership and/or increase our fixed charges. No such financing is currently agreed or committed.

# **Contingencies and spend controls** 
• **Licensing delay.** If OCCC effectiveness is delayed, we continue originating ≤10% APR loans and defer listings requiring higher rates.

• **Revenue shortfall.** If cash trends toward ~$24,000 (≈ two years of servicing-only fixed costs), we will pause new listings and operate servicing-only until Notes mature (max two years), preserving investor servicing continuity; discretionary capital contributions may be used to avoid or defer such a pause.

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**Budget throttle.** Marketing is the primary variable cost and is reduced first; fixed licensing and vendor obligations are maintained.<br>

# **Trend Information** 
Prior to selecting an offering exemption, we conducted a limited, one-week generic solicitation of interest in August 2024 using short-form video ads that linked to a landing page with the required "no money/no commitment" statements. That campaign generated steady top-of-funnel activity—approximately one borrower application every two days during that week—and was removed more than 30 days before our initial Form 1-A filing on July 15, 2025. No money, commitments, or purchase orders were solicited or accepted.

Since then, we have used generic, non-solicitous "building-in-public" updates on our website and social channels (e.g., product progress, borrower education, and operational milestones). These communications are not offers or solicitations for securities and do not request indications of interest. If we conduct any testing-the-waters or other solicitations in the future, they will include the legends required by applicable rules and, as applicable, direct readers to the Preliminary Offering Circular.

Revenue realization from originations and Note sales depends on the timing and effectiveness of required regulatory approvals and registrations (including Texas issuer-dealer and agent registrations and, for securities sales, SEC qualification). During any period when such approvals are not effective, related revenue may be deferred.

Our largest fixed vendor cost is our data-aggregation provider which is incorporated into our liquidity projections. Overall, management believes our financial condition and capital resources are strong, and the known trends and uncertainties described above are adequately reflected in our runway assumptions and strategic planning.

# **Directors, Executive Officers and Significant Employees** 
LOF has a single executive officer who also serves as the sole managing memeber. There are no additional significant employees at this time.

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|:---|:---|:---|:---|
| Name | Position(s) | Age | Term of Office |
| Erik Randall<sup>1</sup> | Owner; Managing Member; President & Chief Executive Officer; Chief Financial Officer; Principal Accounting Officer; Designated Officer | 29 | June 2024 - Present |

---

<sup>1</sup>Appointment/arrangement. Mr. Randall serves by virtue of being the sole member under LOF's Operating Agreement dated June 2024. Mr. Randall devotes full-time efforts in his capacity as Managing Member.

**Executive Officers:** Erik Randall (listed above)

**Directors:** None — LLC is member-managed; no board of directors.

**Significant Employees:** None.

# **Employees** 
We have no employees; all functions are performed by the managing member.

# **Family Relationships** 
None.

------

# **Business Experience (past five years)** 
• Live Oak Financial LLC (Austin, TX) — Founder; Managing Member; President & CEO (June 2024–Present). Leads strategy, product/engineering, regulatory filings, and build-out of the online lending and payment-dependent notes platform.

• LightFeather.io (Alexandria, VA; IT services/consulting) — Full-Stack Engineer & Assistant Manager (Feb 2022–Present; part-time since June 2024). Created scalable API endpoints and backend microservices supporting DHS identity services; managed AWS RDS/EC2/Lambda/S3; designed CI/CD; contributed to reviews and hiring.

• Qualcomm (San Diego, CA; semiconductors) — Software Automation Engineer (Sept 2021–Feb 2022). Post-silicon validation automation for AI products; secure data ingestion tools; network compilation system and flash config interface for ARM devices.

• Asteria (Austin, TX; smart-home/IoT) — Lead Hardware/Firmware Engineer (Mar 2021–Sept 2021). MVP "smart structure" systems; central smart-home controller; production/test processes; shipped early products including pneumatic doors, smart LEDs, environmental monitors.

• Paradigm IOT / DML LLC (Las Vegas, NV; IoT manufacturing/healthtech) — Full-Stack IoT Engineer (Oct 2019–Mar 2021). React front-end for live manufacturing data; back-end services (Node.js/Python/SQL); nRF/ARM BLE integration; Android test/QA apps; semi-autonomous test rigs; orthopedic telemedicine SBC; electronic dive-stick product.

# **Involvement in Certain Legal Proceedings** 
• No bankruptcy/insolvency filings or court-appointed receiverships for Mr. Randall, any partnership where he was a general partner, or any corporation/business association where he was an executive officer within two years before such filing.

• No criminal convictions (excluding traffic violations and other minor offenses).

# **Compensation of Managing Members and Executive Officers** 
LOF paid no compensation to any executive officer or managing member from inception through the fiscal year ended December 31, 2024. (As of the date of this Offering Circular, no compensation has been paid.)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Name | Capacities | Cash Compensation ($) | Other Compensation ($) | Total Compensation ($) |
| Erik Randall | Owner; Managing Member; President & Chief Executive Officer; Chief Financial Officer; Principal Accounting Officer; Designated Officer | 0 | 0 | 0 |

---

# **Aggregate Annual Compensation of Directors as a Group** 

------

# **Future Compensation Arrangements** 
We do not have any ongoing compensation plans or arrangements for executive officers or managing members. If we adopt salary, bonus, equity or other plans in the future, we will disclose the material terms, including any performance measures, measurement periods, and payment schedules, in an offering circular supplement or periodic report, as applicable.

# **Security Ownership of Management and Certain Securityholders** 
Below is the table reflecting beneficial ownership of Live Oak Financial LLC's membership interests as of May 11, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Title of Class | Name and Address of Beneficial Owner<sup>(1)</sup> | Amount and Nature of Beneficial Ownership | Amount and Nature of Beneficial Ownership Acquirable<sup>(2)</sup> | Percent of Class<sup>(3)</sup> |
| Membership Interests | Erik Randall<br>3520 Alpine Autumn Dr. Austin, TX 78744 | 100% of outstanding membership interests |  | 100% |

---

1. The address is the residential address of the beneficial owner.

2. LOF has no outstanding options, warrants, convertible securities, SAFEs, or other rights exercisable or convertible within 60 days into membership interests.

3. Based on outstanding membership interests as of May 11, 2025. Because there are no acquirable securities within 60 days, no additional shares are included in the denominator under Rule 13d-3(d)(1).

4. Mr. Randall has sole voting and sole investment (dispositive) power over all membership interests shown.

5. LOF has one class of voting equity—membership interests; no non-voting or preferred units are outstanding.

Executive officers as a group (1 person): 100%.

There are no other persons or entities beneficially owning more than 10% of any class of LOF's membership interests.

# **Interest of Management and Others in Certain Transactions** 
During the last two completed fiscal years (2023 and 2024) and the current fiscal year to date through May 11, 2025, we entered into the following transactions with Erik Randall, our sole member, Managing Member, executive officer, and promoter. These transactions consisted of equity capital contributions, equity distributions, and de minimis in-kind contributions used to establish our operations; no loans were made to or from Mr. Randall during these periods.

---

| | | | |
|:---|:---|:---|:---|
| Date | Transaction | Amount | Nature of Interest |
| 06-13-2024 | In-kind asset contribution (web domain) | $8 | Non-cash contribution of asset by Erik Randall; recorded as other asset at estimated fair value |
| 06-13-2024 | In-kind asset contribution (computer hardware) | $35 | Non-cash contribution of equipment by Erik Randall; recorded as PPE at estimated fair value |

---

------

---

| | | | |
|:---|:---|:---|:---|
| 06-25-2024 | Founder equity contribution | $500 | Cash capital contribution by Erik Randall; 100% owner |
| 07-02-2024 | Founder equity distribution | $500 | Cash capital distribution by Erik Randall; 100% owner |
| 09-02-2024 | Founder equity contribution | $60 | Cash capital contribution by Erik Randall; 100% owner |
| 09-15-2024 | Founder equity contribution | $610 | Cash capital contribution by Erik Randall; 100% owner |
| 10-12-2024 | Founder equity contribution | $514 | Cash capital contribution by Erik Randall; 100% owner |
| 10-24-2024 | Founder equity distribution | $530 | Cash capital distribution by Erik Randall; 100% owner |
| 12-15-2024 | Founder equity contribution | $50 | Cash capital contribution by Erik Randall; 100% owner |
| 01-13-2025 | Founder equity contribution | $60 | Cash capital contribution by Erik Randall; 100% owner |
| 02-08-2025 | Founder equity contribution | $100 | Cash capital contribution by Erik Randall; 100% owner |
| 03-02-2025 | In-kind asset contribution (server hardware) | $450 | Non-cash contribution of equipment by Erik Randall; recorded as PPENon-cash contribution; recorded as PPE at estimated fair value |
| 05-02-2025 | Founder equity contribution | $25000 | Cash capital contribution by Erik Randall; 100% owner |
| 05-03-2025 | Founder equity contribution | $25000 | Cash capital contribution by Erik Randall; 100% owner |
| 05-05-2025 | Founder equity contribution | $20000 | Cash capital contribution by Erik Randall; 100% owner |

---

------

---

| | | | |
|:---|:---|:---|:---|
| 05-05-2025 | Founder equity contribution | $1000 | Cash capital contribution by Erik Randall; 100% owner |

---

Tier 2 threshold: For Tier 2 issuers, Item 13 requires disclosure of transactions exceeding the lesser of $120,000 and 1% of the average of total assets at year end for the last two completed fiscal years. Given our asset levels, the 1% prong is de minimis; the transactions above meet the disclosure threshold.

Cash capital contributions during the periods shown were $72,894; cash equity distributions were $1,030 (net cash contributed $71,864); in-kind contributions were $493 in aggregate, recorded at estimated fair value based on recent purchase price/market quotes.

These transactions were effected by Mr. Randall in his capacity as sole member under our Operating Agreement to capitalize the Company and provide startup assets. Amounts shown as "contributions" were recorded as equity (not debt); amounts shown as "distributions" were recorded as equity distributions. There are no repayment obligations, no interest, and no preferential rights to Mr. Randall arising from these transactions. As a single-member LLC, these transactions were approved by Mr. Randall as sole member. No transactions occurred with any immediate family member of Mr. Randall. There are no currently proposed related-party transactions requiring disclosure.

As of the date of this Offering Circular, there are no outstanding payables, receivables, or loans between the Company and Mr. Randall, other than normal-course reimbursements, if any, recorded through equity or expenses.

Our independent auditor, Umer Farooq, is named in this Offering Circular. The auditor was not engaged on a contingent basis, has no material interest in the Company or its subsidiaries, and is not connected with the Company as a promoter, underwriter, voting trustee, managing member, officer or employee. The auditor's consent is filed as Exhibit 1A-11.

# **Experts** 
No expert named in this offering statement was retained on a contingent-fee basis, nor does any such expert have a material interest in LOF or its subsidiaries, or any connection as promoter, underwriter, voting trustee, managing member, officer or employee.

The financial statements as of May 11, 2025 and December 31, 2024 and for the period January 1, 2025 through May 11, 2025 and the year ended December 31, 2024 included in this Offering Circular have been audited by Umer Farooq, an independent public accountant, in accordance with U.S. generally accepted auditing standards, as stated in their report dated May 11, 2025, which is included herein.

# **Financial Statements** 
Report of Independent Auditor dated May 11, 2025 covering the accompanying balance sheets as of May 11, 2025 and December 31, 2024, and the related statements of operations, members' equity, and cash flows for the period January 1, 2025 through May 11, 2025 and the year ended December 31, 2024.

# **Independent Auditor's Report** 
To the Management and Members of LIVE OAK FINANCIAL LLC

------

# **Opinion** 
We have audited the accompanying financial statements of LIVE OAK FINANCIAL LLC (the "Company"), which comprise the balance sheet as of May 11, 2025, and the related statements of income, members' equity, and cash flows for the period then ended, including the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of May 11, 2025, and the results of its operations and its cash flows for the period then ended in accordance with the accounting principles generally accepted in the United States of America.

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

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

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

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

In performing an audit in accordance with US GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

------

---

| | |
|:---|:---|
|  | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed. |
| • | Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. |
| • | Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. |

---

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

/s/ Umer Farooq

License No: PAC-CPAP-LIC-033530

Somerset, Montana

June 27, 2025

# **Auditor's Consent** 
For the Auditor's consents, see Exhibit 11, "Auditor's Consent" which is incorporated by reference in this Offering Circular.

# **Audited Financial Statements** 

---

| | | |
|:---|:---|:---|
| Statements of Income | Statements of Income | Statements of Income |
| For the period ended May 11, 2025 | For the period ended May 11, 2025 | For the period ended May 11, 2025 |
|  | For the period ended | For the fiscal year ended |
|  | May 11, 2025 | 31-Dec-24 |
| Revenue | $0.00 | $0.00 |
| Cost Of Revenue | $0.00 | $0.00 |
| **Gross Profit** | **$0.00** | **$0.00** |
| **Operating Expenses** |  |  |
| Operating expenses | $209.96 | $644.34 |
| Selling general and administrative expenses | $0.00 | $0.00 |
| Depreciation | $3.33 | $4.67 |
| Amortization | $29.46 | $4.08 |
| **Total Expenses** | $242.75 | $653.09 |

---

------

---

| | | |
|:---|:---|:---|
| NET LOSS FOR THE PERIOD | ($242.75) | ($653.09) |
| The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. |

---

---

| | | |
|:---|:---|:---|
| **LIVE OAK FINANCIAL LLC**<br>Statements of Financial Position<br>As of May 11, 2025 | **LIVE OAK FINANCIAL LLC**<br>Statements of Financial Position<br>As of May 11, 2025 | **LIVE OAK FINANCIAL LLC**<br>Statements of Financial Position<br>As of May 11, 2025 |
|  | As of | As of |
|  | **May 11, 2025** | **31-Dec-24** |
| **ASSETS** |  |  |
| **Current Assets:** |  |  |
| Cash and Cash Equivalents | $71009.70 | $56.66 |
| Accounts Receivable | $0.00 | $0.00 |
| Intangible Assets | $8.00 | $8.00 |
| Accumulated Amortization | ($8.00) | ($4.67) |
| **Total Current Assets** | **$71009.70** | **$62.99** |
| Fixed Assets: |  |  |
| Property and Equipment | $485.00 | $35.00 |
| Accumulated Depreciation | ($33.54) | ($4.08) |
| **Total Non-Current Assets** | **$451.46** | **$30.92** |
| **TOTAL ASSETS** | **$71461.16** | **$93.91** |
| **LIABILITIES AND NET ASSETS** |  |  |
| **Current Liabilities:** |  |  |
| Accounts Payable | $0.00 | $0.00 |
| Tax Payable | $0.00 | $0.00 |
| **Total Current Liabilities** | **$0.00** | **$0.00** |
| **Members' Equity** |  |  |
| Member's Equity | $71461.16 | $93.91 |
|  | **$71461.16** | **$93.91** |
| **Total Liabilities and Net Assets** | **$71461.16** | **$93.91** |
| The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. |

---

------

---

| | | |
|:---|:---|:---|
| LIVE OAK FINANCIAL LLC<br>Statement of Member's Equity<br>For the period ended May 11, 2025 | LIVE OAK FINANCIAL LLC<br>Statement of Member's Equity<br>For the period ended May 11, 2025 | LIVE OAK FINANCIAL LLC<br>Statement of Member's Equity<br>For the period ended May 11, 2025 |
|  | Capital | Total |
| **Member's Equity 01/01/2024** | **$0.00** | **$0.00** |
| Net Income | ($653.09) | ($653.09) |
| Capital Contributions | $1734.00 | $1734.00 |
| Member Distributions | ($1030.00) | ($1030.00) |
| In Kind Contributions | $43.00 | $43.00 |
| **Member's Equity 12/31/2024** | **$93.91** | **$93.91** |
| Net Income | ($242.75) | ($895.84) |
| Capital Contributions | $71160.00 | $72894.00 |
| Member Distributions | $0.00 | ($1030.00) |
| In Kind Contributions | $450.00 | $493.00 |
| **Member's Equity 05/11/2025** | **$71461.16** | **$71461.16** |
| The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. |

---

---

| | | |
|:---|:---|:---|
| **LIVE OAK FINANCIAL LLC**<br>Statement of Cash Flows<br>For the period ended May 11, 2025 | **LIVE OAK FINANCIAL LLC**<br>Statement of Cash Flows<br>For the period ended May 11, 2025 | **LIVE OAK FINANCIAL LLC**<br>Statement of Cash Flows<br>For the period ended May 11, 2025 |
|  | For the period ended | For the fiscal year ended |
|  | **May 11, 2025** | **31-Dec-24** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net (Loss) / Income | ($242.75) | ($653.09) |
| *<u>Adjustments to reconcile net (loss) income to net cash provided by operating activities:</u>* |  |  |
| Depreciation | $3.33 | $4.08 |
| Amortization | $29.46 | $4.67 |
| **Changes in Operating Assets and Liabilities:** |  |  |
| Account Receivable | $0.00 | $0.00 |
| Tax Payable | $0.00 | $0.00 |
| **Net Cash Provided by Operating Activities** | **($209.96)** | **($644.34)** |

---

------

---

| | | |
|:---|:---|:---|
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| Purchase of Property and Equipment | $0.00 | $0.00 |
| Purchase of Intangible Assets | $0.00 | $0.00 |
| **Net Cash Used From Investing Activities** | **$0.00** | **$0.00** |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Cash Capital Contributions From Members | $71160.00 | $670.00 |
| Member Distributions | $0.00 | ($530.00) |
| Capital Contributions | $0.00 | $564.00 |
| **Net Cash Used From Financing Activities** | **$71160.00** | **$704.00** |
| **Net Increase in Cash & Cash Equivalents for the Period** | **$70950.04** | **$59.66** |
| Cash and cash equivalents at beginning of the period | $59.66 | $0.00 |
| **Cash and Cash Equivalents at End of the Period** | **$71009.70** | **$59.66** |
| The accompanying notes are an integral part of these statements. | The accompanying notes are an integral part of these statements. | The accompanying notes are an integral part of these statements. |

---

Notes to the Financial Statements

For the period ended May 11, 2025

1. **NATURE OF ORGANIZATION** Live Oak Financial LLC (the "Company") is a Texas single-member limited-liability company formed on June 12, 2024. The Company's principal business is operating a peer-to-peer online credit marketplace that originates unsecured consumer loans and issues pro-rata Borrower Payment Dependent (refers to the calculation only, not the source of payment.) Notes to investors.
The Company is a non-public entity and its sole member is an individual residing in Texas.

2. **SIGNIFICANT ACCOUNTING POLICIES** 

 **Basis of Presentation** 

These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") on the accrual basis.

**Cash and Cash Equivalents**

Cash consists solely of demand deposits held at one commercial bank. The Company holds no cash equivalents as defined under ASC 230.

**Property, Equipment and Intangible Assets**

Equipment is recorded at fair value on the date of contribution and is being depreciated on a straight-line basis over its estimated useful life of five years with no salvage value.

**Use Of Estimates**

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the Management to make estimates and assumptions

------

that affect the reported balances of assets and liabilities and disclosure relating to contingent assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management periodically evaluates estimates used in the preparation of the financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. It is reasonably possible that changes may occur in the near term, within one year, that would affect management's estimates with respect to the allowance for doubtful accounts, accrued expenses, and cash flow.

**Intangible Assets**

Domain registrations are recorded at cost and are being amortized on a straight-line basis over their one-year registration period.

**Depreciation and Amortization**

Depreciation and amortization are included in Selling, General & Administrative Expenses.

**In-Kind Capital Contributions**

Non-cash assets contributed by the sole member are recorded at their fair value on the contribution date, with a corresponding increase to the member's capital account.

**Revenue Recognition**

• Loan origination fees. Nonrefundable borrower-paid origination fees are deferred and recognized over the contractual term of the loan using the effective interest method as an adjustment to the loan's yield.

• Interest income. Interest on loans is recognized using the effective interest method over the contractual term. Post-default recoveries are recognized when received; the interest portion of recoveries is included in interest income (see "Interest expense—Notes" below).

• Interest expense—Notes. The Company recognizes interest expense on outstanding Notes such that distributions to Noteholders equal 100% of principal applied to the Reference Loans and 85% of the interest applied for the period, consistent with "Debt Securities—Notes—Interest and Payment." The remaining 15% of the interest component represents the Company's net servicing spread (described as a "servicing fee" in the Offering Circular).

**Income Taxes**

The Company is a single-member LLC treated as a disregarded entity for U.S. federal and state income-tax purposes. No provision for income taxes has been recorded.

**Member's Equity** 

Capital contributions and distributions are recorded directly in the member's capital account. No membership units or shares are issued.

**Related-Party Transactions** 

All cash transfers to and from the Company's operating account and the member's personal account constitute capital contributions and distributions. No fees or interest were charged on these transfers.

**Commitments and Contingencies** 

As of May 11, 2025, the Company had no material commitments, leases or legal contingencies.

**Subsequent Events** 

Management has evaluated subsequent events through the date these financial statements were available to be issued.

Subsequent to May 31, 2025, the Company paid $3,500 in direct offering costs related to its Regulation A offering (legal and audit). The Company also expects to pay a $670 Texas state notice filing fee upon qualification. These costs are not reflected in the accompanying interim financial statements.

------

### PART III - EXHIBITS
**INDEX TO EXHIBITS**

---

| | |
|:---|:---|
| Exhibit | Description |
| EX1A-2A CHARTER | [Certificate of Formation; filed herewith (unchanged from Pre-Qualification Amendment No. 1).](certificate_offormation.htm) |
| EX1A-2B BYLAWS | [Operating Agreement, as amended; filed herewith (unchanged from Pre-Qualification Amendment No. 1).](operating_agreement.htm) |
| EX1A-3 HLDRS RTS | [Investor Agreement, as amended; filed herewith (unchanged from Pre-Qualification Amendment No. 1).](investor_agreement.htm) |
| EX1A-4 SUBS AGMT | [Subscription Agreement, as amended; filed herewith (unchanged from Pre-Qualification Amendment No. 1).](subscription_agreement.htm) |
| EX1A-6 MAT CTRCT | [Plaid MSA; filed herewith (unchanged from Pre-Qualification Amendment No. 1).](plaid_msa.htm) |
| EX1A-11 CONSENT | [Auditor's Consent; filed herewith (unchanged).](expert_consent.htm) |
| EX1A-12 OPN CNSL | [Opinion of Counsel; filed herewith (unchanged).](opinion_ofcounsel.htm) |
| ADD EXHB | [Early Marketing Materials; filed herewith (unchanged).](early_marketingmaterials.htm) |

---

------

# **Signatures** 
Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Austin, State of Texas, on September 10, 2025.

Live Oak Financial LLC

---

| | |
|:---|:---|
| By: | /s/ Erik Randall |
| Name: | Erik Randall |
| Title: | President and Chief Executive Officer |
| Date: | September 10, 2025 |

---

Pursuant to the requirements of Regulation A, this offering statement has also been signed

by the following persons in the capacities indicated and on the dates set forth below.

---

| | |
|:---|:---|
| By: | /s/ Erik Randall |
| Name: | Erik Randall |
| Title: | President and Chief Financial Officer |
| Date: | September 10, 2025 |

---

---

| | |
|:---|:---|
| By: | /s/ Erik Randall |
| Name: | Erik Randall |
| Title: | Principal Accounting Officer |
| Date: | September 10, 2025 |

---

A majority of the Managing Members (or persons performing similar functions):

---

| | |
|:---|:---|
| By: | /s/ Erik Randall |
| Name: | Erik Randall |
| Title: | Managing Member |
| Date: | September 10, 2025 |

---

------

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

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Live Oak Financial LLC

**Jurisdiction of Incorporation/Organization:** TX

**Year of Incorporation:** 2024

**CIK:** 0002069448

**I.R.S. Employer Identification Number:** 99-3516827

**Primary Standard Industrial Classification Code:** 6199

**Total number of full-time employees:** 1

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 3520 ALPINE AUTUMN, —, AUSTIN, TX 78744

**Company Phone:** 7755135770

**Person to contact:** Erik Randall

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount    |
|:---|:---|
| Cash and Cash Equivalents                | $71009.70 |
| Investment Securities                    | $0.00     |
| Accounts and Notes Receivable            | $0.00     |
| Property, Plant and Equipment (PP&E)     | $451.46   |
| Total Assets                             | $71461.16 |
| Accounts Payable and Accrued Liabilities | $0.00     |
| Long-Term Debt                           | $0.00     |
| Total Liabilities                        | $0.00     |
| Total Stockholders' Equity               | $71461.16 |
| Total Liabilities and Equity             | $71461.16 |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount   |
|:---|:---|
| Total Revenues                            | $0.00    |
| Costs and Expenses Applicable to Revenues | $209.96  |
| Depreciation and Amortization             | $32.79   |
| Net Income                                | $-242.75 |
| Earnings Per Share - Basic                | 0.00     |
| Earnings Per Share - Diluted              | 0.00     |

**Auditor Information**

| Metric          | Amount      |
|:---|:---|
| Name of Auditor | Umer Farooq |

### Outstanding Securities

| Class   |   Outstanding | CUSIP   | Publicly Traded   |
|:---|---:|:---|:---|
|  |             0 |  |  |
|  |             0 |  |  |
|  |             0 |  |  |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Debt

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** No

**Was or is the offering to commence within two days after qualification?** Yes

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** No

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount     |
|:---|:---|
| Number of securities offered                                    | 600000     |
| Number of securities outstanding                                | 0          |
| Price per security                                              |  |
| Issuer's aggregate offering price                               | $600000.00 |
| Aggregate offering price of securities held by security holders | $0.00      |
| Aggregate price of securities offered concurrently              | $0.00      |
| Total aggregate offering price                                  | $600000.00 |

**Anticipated Fees**

| Service Provider   | Name             | Fees     |
|:---|:---|:---|
| Auditor            | Umer Farooq, CPA | $2500.00 |
| Legal              | Sarah Reese, Esq | $1000.00 |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** $600000.00

### Item 5. Jurisdictions in Which Securities are to be Offered

- All States and Territories