# EDGAR Filing Document

**Accession Number:** 0001945863
**File Stem:** 0001670254-23-000171
**Filing Date:** 2023-2
**Character Count:** 287813
**Document Hash:** dfa1df0363e09822701836330d21532a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000171.hdr.sgml**: 20230224

**ACCESSION NUMBER**: 0001670254-23-000171

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 11

**FILED AS OF DATE**: 20230224

**DATE AS OF CHANGE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Kindred Spirits Nashville LLC DBA WITHCO
- **CENTRAL INDEX KEY:** 0001945863
- **IRS NUMBER:** 474959105

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31873
- **FILM NUMBER:** 23666494

**BUSINESS ADDRESS:**
- **STREET 1:** 1015 W KIRKLAND AVE #202
- **CITY:** NASHVILLE
- **STATE:** TN
- **ZIP:** 37216
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 1015 W KIRKLAND AVE #202
- **CITY:** NASHVILLE
- **STATE:** TN
- **ZIP:** 37216

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

Kindred Spirits Nashville, LLC dba Withco

Legal status of issuer:

Form: Limited Liability Company
Jurisdiction of Incorporation/Organization: TN
Date of organization: 9/2/2015

Physical address of issuer:

1015 W Kirkland Ave #202
Nashville TN 37216

Website of issuer:

http://www.WithCoCocktails.com

Name of intermediary through which the offering will be conducted:

Wefunder Portal LLC

CIR number of intermediary:

0001670254

SBC file number of intermediary:

007-00033

CRO number, if applicable, of intermediary:

283503

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

6.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the issuer in connection with the offering.

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

No

Type of security offered:

☐ Common Stock
☐ Preferred Stock
☐ Debt
☑ Other

If Other, describe the security offered:

Class D Membership Units

Target number of securities to be offered:

2,683

Price:

$18.64040

Method for determining price:

Dividing pre-money valuation $17,000,044.80 by number of units outstanding on fully diluted basis.

Target offering amount:

$50,012.19

Oversubscriptions accepted:

☑ Yes
☐ No

If yes, disclose how oversubscriptions will be allocated:

☐ Pro-rata basis
☐ First-come, first-served basis
☑ Other

If other, describe how oversubscriptions will be allocated:

As determined by the issuer

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

$499,991.45

Deadline to reach the target offering amount:

4/30/2023

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

Current number of employees:

7

|  | Most recent fiscal year-end: | Prior fiscal year-end: |
| --- | --- | --- |
| Total Assets: | $275,951.00 | $206,588.00 |
| Cash & Cash Equivalents: | $61,548.00 | $75,474.00 |
| Accounts Receivable: | $34,788.00 | $34,451.00 |
| Short-term Debt: | $335,036.00 | $183,268.00 |
| Long-term Debt: | $89,618.00 | $75,287.00 |
| Retirement Rates: | $2,658,040.00 | $1,059,100.00 |
| Cost of Goods Sold: | $1,611,230.00 | $649,976.00 |
| Taxes Paid: | $0.00 | $0.00 |
| Net Income: | ($264,767.00) | ($34,029.00) |

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

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

## Offering Statement

Respond to each question in each paragraph of this part. Set forth each question and any notes, but not any instructions thereon, in their entirety. If disclosure in response to any question is responsive to one or more other questions, it is not necessary to repeat the disclosure. If a question or series of questions is inapplicable or the response is available elsewhere in the Form, either state that it is inapplicable, include a cross reference to the responsive disclosure, or omit the question or series of questions.

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

### THE COMPANY

1. Name of issuer:

Kindred Spirits Nashville, LLC dba Withco

### COMPANY ELIGIBILITY

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

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

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

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

☐ Yes ☑ No

### DIRECTORS OF THE COMPANY

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

| Director | Principal Occupation | Main Employer | Year Joined as Director |
| --- | --- | --- | --- |
| Joshua Ellis | Managing Member | Kindred Spirits Nashville, LLC Dba Withco | 2015 |

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

### OFFICERS OF THE COMPANY

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

| Officer | Positions Held | Year Joined |
| --- | --- | --- |
| Joshua Ellis | Founder | 2015 |

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

INSTRUCTION TO QUESTION 2: For purposes of this Question 2, the term officer means a president, vice president, secretary, manager, employee, principal, official, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee, employee

performing similar functions

## PRINCIPAL SECURITY HOLDERS

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

Name of Holder

Joshua Ellis

No. and Class

of Securities Now Held

590000.0 Class A + Class B

Membership Units

% of Voting Power

Prior to Offering

90.41

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

To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power as well as the voting of such securities. If the person has the right to acquire voting power of such securities within 90 days, including through the exercise of any option, warrants or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise less manner that would allow a person to direct or control the voting of the securities for share in such discretion or control - as, for example, a contractor that should be included as being "beneficially owned." You should include an explanation of these circumstances in a footnote to the "Number of and Class of Securities Now Held." To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities contained.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

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

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

INSTRUCTION TO QUESTION 7: We find a set of previous year company's business profile as an appendix "Appendix A" in the Form C in PDF format. The submission will include all Q&A terms and "most recent" dates in an uncollapsed format. All others will be researched.

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

## RISK FACTORS

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

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

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

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

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

Potential lack of funding to support growth and demand. We are finding success in retail and hospitality extremely quick and need funds to support them with marketing, personnel, and inventory.

Potential lack of experienced beverage professionals. We need to secure grocery brokers and a national beverage director to help secure placements and broker metrics for success. Without this the companies growth projections may take longer to achieve.

Potentially limited manufacturing and production capabilities. As we venture into more retail stores our ability to manufacture can be strained and we will need to find ways to produce enough inventory to support.

Reliance on third part distribution partners. Though we do not see any issues with our distribution partners they do play a vital role in our expansion.

Natural Disaster - though we have made it through a pandemic there are always uncertainties with natural disasters causing damage to our retail locations or our manufacturing facility.

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

INSTRUCTION TO QUESTION 8: Avoid generalized statements and include only those factors that are subject to the issuer. Discussion should be tailored to the issuer's business and the offering and should not repeat the factors addressed in the legend, or forth above. No specific number of risk factors is required to be identified.

# The Offering

## USE OF FUNDS

9. What is the purpose of this offering?

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

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

If no rate: $50,012

Use of 42.5% Marketing, 51% to pay off short term loans, 6.5% in WeFunder Fees
Proceeds:

If no rate: $499,991

Use of 25% Pay off loan of $150k, 25% to pay off short term loans, 28.5% to
Proceeds: Marketing, 15% to personnel, 6.5% to WeFunder Fees

INSTRUCTION TO QUESTION 10: An issuer must provide a reasonable detailed description of any intended use of
proceeds, such that investors are provided with an adequate amount of information in understand how the offering proceeds
will be used. If an issuer has identified a range of possible uses, the issuer should identify and describe such probable use
and the fact to the issuer may consider its affecting proceeds among the intended uses. If the issuer will accept proceeds in
course of the target offering amount, the issuer must describe the purpose, method for allocating or re-advantage, and
intended use of the source proceeds with similar specificity. Please include all potential uses of the proceeds of the offering
including any that may apply only to the use of one minor option. If you do not do so, you may have to be required to amend
your Form C. Marketer is not responsible for any failure by you to describe a potential use of offering proceeds.

## DELIVERY & CANCELLATIONS

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

Book Entry and Investment in the Co-Issuer. Investors will make their investments
by investing in interests issued by one or more co-issuers, each of which is a
special purpose vehicle ("SPV"). The SPV will invest all amounts it receives from
investors in securities issued by the Company. Interests issued to investors by the
SPV will be in book entry form. This means that the investor will not receive a
certificate representing his or her investment. Each investment will be recorded in
the books and records of the SPV. In addition, investors' interests in the
investments will be recorded in each investor's "Portfolio" page on the WeFunder
platform. All references in this Form C to an Investor's investment in the Company
(or similar phrases) should be interpreted to include investments in a SPV.

12. How can an investor cancel an investment commitment?

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

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

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

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

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

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

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

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

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

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

## Ownership and Capital Structure

### THE OFFERING

13. Describe the terms of the securities being offered.

Priced Round: $17,000,044.80 pre-money valuation

See exact security attached as Appendix B, Investor Contracts

Kindred Spirits Nashville, LLC DBA Withco is offering up to 26,823.00 Class D
Membership Units, at a price per Unit of $18.6404.

The campaign maximum is $499,991.45 and the campaign minimum is $50,012.19.

Securities Issued by the SPV

Securities Issued by the SPV

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

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

### Voting Rights

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

### Proxy to the Lead Investor

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

### Restriction on Transferability

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

14. Do the securities offered have voting rights?

☐ Yes
☑ No

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

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

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

This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by all parties.

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

A. Wefunder Portal may amend the terms of an investment contract, provided that the amended terms are more favorable to the investor than the original terms; and
B. Wefunder Portal may reduce the amount of an investor's investment if the reason for the reduction is that the Company's offering is oversubscribed.

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

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

1. to the issuer;
2. to an accredited investor;
3. as part of an offering registered with the U.S. Securities and Exchange Commission; or
4. to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

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

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

### DESCRIPTION OF ISSUER'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| Class D Membership Units | 30000 | 0 | No |

| Class C Membership Units | 170,000 | 167,000 | No | ☑ |
| --- | --- | --- | --- | --- |
| Class B Membership Units | 550,000 | 495,000 | Yes | ☑ |
| Class A Membership Units | 250,000 | 200,000 | Yes | ☑ |

| Class of Security | Securities Reserved for Issuance upon Exercise or Conversion |
| --- | --- |
| Warrants: | 50,000 |

Options:

Describe any other rights:

Class A Membership Units have 3 votes per Unit; Class B Membership Units have 1 vote per Unit; Class C Membership Units don't have voting rights. Class D Membership Units don't have voting rights but have a liquidation preference over Class A, Class B, and Class C Membership Units.

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

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

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

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

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

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

No.

20. How could the exercise of rights held by the principal shareholders identified in Question 6 above affect the purchasers of the securities being offered?

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

For example, the **unitholders** may change the terms of the Operating Agreement for the company, change the terms of securities issued by the Company, change the management of the Company, and even force out minority holders of securities. The **unitholders** may make changes that affect the tax treatment of the Company in ways that are unfavorable to you but favorable to them. They may also vote to engage in new offerings and/or to register certain of the Company's securities in a way that negatively affects the value of the securities the Investor owns. Other holders of securities of the Company may also have access to more information than the Investor, leaving the Investor at a disadvantage with respect to any decisions regarding the securities he or she owns. The **unitholders** have the right to redeem their securities at any time. Unitholders could decide to force the Company to redeem their securities at a time that is not favorable to the Investor and is damaging to the Company. Investors' exit may affect the value of the Company and/or its viability in cases where the rights of holders of convertible debt, SAFES, or other outstanding options or warrants are exercised, or if new awards are granted under our equity compensation plans, an Investor's interests in the Company may be diluted. This means that the pro-rata portion of the Company represented by the Investor's securities will decrease, which could also diminish the Investor's voting and/or economic rights. In addition, as discussed above, if a majority-in-interest of holders of securities with voting rights cause the Company to issue additional units, an Investor's interest will typically also be diluted.

Based on the risks described above, the Investor could lose all or part of his or her investment in the securities in this offering, and may never see positive returns.

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

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

considered to be indicative of the actual value of the securities offered hereby.

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

1. unrelated third party valuations of our common unit;
2. the price at which we sell other securities, such as convertible debt or preferred Unit, in light of the rights, preferences and privileges of our those securities relative to those of our common unit;
3. our results of operations, financial position and capital resources;
4. current business conditions and projections;
5. the lack of marketability of our common unit;
6. the hiring of key personnel and the experience of our management;
7. the introduction of new products;
8. the risk inherent in the development and expansion of our products;
9. our stage of development and material risks related to our business;
10. the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business;
11. industry trends and competitive environment;
12. trends in consumer spending, including consumer confidence;
13. overall economic indicators, including gross domestic product, employment, inflation and interest rates; and
14. the general economic outlook.

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

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

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

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

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

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

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

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

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

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

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

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

Loan
Lender

Pinnacle Bank

| Issue date | 01/31/17 |
| --- | --- |
| Amount | $46,000.00 |
| Outstanding principal plus interest | $46,000.00 as of 01/31/23 |
| Interest rate | 6.25% per annum |
| Maturity date | 01/01/25 |
| Current with payments | Yes |

Loss to build the company vehicle and get our product financed in 2017

Loan

| Lender | SBA |
| --- | --- |
| Issue date | 04/30/20 |
| Amount | $91,600.00 |
| Outstanding principal plus interest | $91,600.00 as of 01/31/23 |
| Interest rate | 3.5% per annum |
| Maturity date | 05/01/20 |
| Current with payments | Yes |

SBA FOP, December Loan for CFOO Maturity date is 01/01/20

Loan

| Lender | Locklear Lending LLC |
| --- | --- |
| Issue date | 12/30/21 |
| Amount | $150,000.00 |
| Outstanding principal plus interest | $150,000.00 as of 12/05/22 |
| Interest rate | 10.0% per annum |
| Maturity date | 03/31/23 |
| Current with payments | Yes |

Loss for inventory

Loan

| Lender | Shopify |
| --- | --- |
| Issue date | 07/10/22 |
| Amount | $26,000.00 |
| Outstanding principal plus interest | $35,021.00 as of 02/18/23 |
| Interest rate | 12.0% per annum |
| Maturity date | 07/11/23 |
| Current with payments | Yes |

Shopify loan for inventory

INSTRUCTIONS TO QUESTION 24: issue the credits, amount used, interest rate, maturity date, and any other material taxes

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 4/2020 | Section 4(a)(2) | Common stock | $25,000 | General operations |
| 2/2021 | Section 4(a)(2) | Common stock | $100,000 | General operations |
| 2/2021 | Section 4(a)(2) | Common stock | $50,000 | General operations |
| 4/2021 | Section 4(a)(2) | Preferred stock | $50,000 | General operations |
| 12/2021 | Section 4(a)(2) | Common stock | $50,000 | General operations |
| 4/2022 | Regulation D, Rule 504(b) | Preferred stock | $150,000 | General operations |
| 4/2022 | Regulation D, Rule 504(b) | Preferred stock | $250,000 | General operations |
| 10/2022 | Section 4(a)(2) |  | $75,000 | General operations |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(3) of the Securities Act during the preceding 12-month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:

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

☐ Yes

☑ No

INSTRUCTIONS TO QUESTION 25: The next transaction includes that is not limited to, any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangements or relationships.

Beneficial ownership for purposes of paragraph (7) shall be determined as of a date due to no more than 150 days prior to the date of filing of this offering statement and using the same calculations described in Questions 1 of the Questions and Answer forms.

The term "member of the family" includes any child, stepchild, grandchild, parent, companion, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the

for the and several purposes of the company. The company's operations, which is a company's company's operations, generally operated in the of a company.

Compare the amount of a related party's interest in any transaction without regard to the amount of the profit or loss involved in the transaction. Where it is not practicable to make the approximate amount of the interest, disclose the approximate amount involved in the transaction.

## FINANCIAL CONDITION OF THE ISSUER

27. Does the issuer have an operating history?

☑ Yes
☐ No

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

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

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

#### Overview

Withco creates cocktail and mocktail mixes that raise the bar. WithCo is made with fresh ingredients, can be served with spirits or soda, and is meant to be enjoyed with good company.

We knew that creating cocktails and mocktails at home and behind the bar is time consuming, costly, and far too complicated. We knew that fresh ingredients cocktails were something we desired in our life and knew others desired the same. For us, we started this for the aspect of helping people drink "with company" - hence our name.

In 5 years, WithCo plans to be distributed in major natural food and beverage chains such as WholeFoods, Sprouts, The Fresh Market, Publix, Total Wine, and Target while scaling our bar program to professional stadiums, chain bars and restaurants. Forward-looking projections can't be guaranteed.

#### Milestones

Kindred Spirits Nashville, LLC dba Withco was incorporated in the State of Tennessee in September 2015.

Since then, we have:

- Over $5m in revenue in 3 years.
- Served in NFL, MLB, & NHL Stadiums
- Distribution deals with the 3 largest Spirits and 2 Grocery Distributors in the US
- Carried in CVS across 8 states and 1700 TARGET locations launching in March 2023
- $20mil projected by 2025 (can't be guaranteed).
- Currently in conversations with Kroger, Walmart, Wegmans, Sprouts, The Fresh Market, CostCo.
- Multiple Sales channels: Online, Liquor Stores, Stadiums, Grocery Stores, and Behind Bars.

#### Historical Results of Operations

- Revenues & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $2,658,040 compared to the year ended December 31, 2020, when the Company had revenues of $1,059,100. Our gross margin was 39.38% in fiscal year 2021, compared to 38.63% in 2020.
- Assets. As of December 31, 2021, the Company had total assets of $275,961, including $61,848 in cash. As of December 31, 2020, the Company had $206,588 in total assets, including $75,474 in cash.
- Net Loss. The Company has had net losses of $284,787 and net loss of $34,029 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.
- Liabilities. The Company's liabilities totaled $424,655 for the fiscal year ended December 31, 2021 and $258,555 for the fiscal year ended December 31, 2020.

#### Liquidity & Capital Resources

To-date, the company has been financed with $490,600 in debt and $765,000 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.

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

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early years

the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

#### Runway & Short/Mid Term Expenses

Kindred Spirits Nashville, LLC dba Withco cash in hand is $55,000, as of February 2023. Over the last three months, revenues have averaged $160,000/month, cost of goods sold has averaged $55,000/month, and operational expenses have averaged $120,000/month, for an average burn rate of $15,000 per month. Our intent is to be profitable in 2 months.

Since the date our financials cover, we have cut expenses by 20% (Sept we lost -$60k and in January we made +$10k net profit) and increased revenues through retail vendors such as CVS (563,072 in past 60 days) and Target ($220,800 past 60 days). We have signed distribution agreements with the 2 largest spirit distributors (Southern Glazers Wine and Spirits and RNDC 'Republic National' and one of 2 largest grocery distributors in the US (UNFI and KEHE).

We anticipate generating $1,500,000 in revenue over the next 6 months, and incurring around $1,300,000 in expenses in this timeframe. We are driving revenue through our retailers CVS and Target (secured a 1,700 Target store launch). We are also currently in meetings with The Fresh Market, Walmart, Kroger, Sprouts, and Wegmans.

We are currently profitable! In 2020-2022 our focus was not profitability as we primarily focused on growth and put all our revenues into marketing, personnel, and inventory to grow the company. In Q4 of 2022 we decided to work toward profitability and were burning about -$15k a month on average. We hit profitability in January of 2023 with +$10k of net profit.

We are continuing to push sales and revenue to offset our expenses and we are trending each and every month toward larger sales with our big box retailers. We plan to roll into over 2,000 locations in 2023.

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

INSTRUCTIONS TO QUESTION 29. The discussion must cover each year for which financial statements are provided. For issuers who we price operating interest, the discussion should focus on financial outcomes and operational, liquidity and other challenges. For issuers with an operating history, the discussion should focus on whether financial results and cash flows are representative of what investors should expect to be given. Also, how account the proceeds of the offering and any other bonus or pending sources of capital. Discuss how the proceeds from the offering will affect liquidity, whether receiving these funds and any other additional funds is necessary to the viability of the business, and how quickly the issuer anticipates using its available cash. Describe the other available sources of capital or the business, such as lines of credit or required contributions by shareholders, before or in the issuer in this Question 29 and then to determine what to the issuer and its predecessors, if any.

## FINANCIAL INFORMATION

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

Refer to Appendix C, Financial Statements

1. Joshua Ellis certify that:

- (1) the financial statements of Kindred Spirits Nashville, LLC dba Withco included in this Form are true and complete in all material respects; and
- (2) the financial information of Kindred Spirits Nashville, LLC dba Withco included in this Form reflects accurately the information reported on the tax return for Kindred Spirits Nashville, LLC dba Withco filed for the most recently completed fiscal year.

Joshua Ellis
Managing Member

## STAKEHOLDER ELIGIBILITY

(1) With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, any promoter connected with the issuer in any capacity at the time of each sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2018.

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

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

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

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

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

at the time of the filing of this offering statement bars the person from:

A. association with an entity regulated by such commission, authority, agency or officer? ☐ Yes ☑ No

B. engaging in the business of securities, insurance or banking? ☐ Yes ☑ No

C. engaging in savings association or credit union activities? ☐ Yes ☑ No

i. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement? ☐ Yes ☑ No

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

i. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal? ☐ Yes ☑ No

ii. places limitations on the activities, functions or operations of such person? ☐ Yes ☑ No

iii. bars such person from being associated with any entity or from participating in the offering of any penny stock? ☐ Yes ☑ No

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

i. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 1305 of the Exchange Act, Section 1501(c) of the Exchange Act and Section 2001(c) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder? ☐ Yes ☑ No

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

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

☐ Yes ☑ No

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

☐ Yes ☑ No

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

☐ Yes ☑ No

If you would have answered "Yes" to any of these questions had the conviction, order, judgment, decree, suspension, expulsion or bar occurred or been issued after May 16, 2018, then you are NOT eligible to rely on this exemption under Section 4(a)(6) of the Securities Act.

INSTRUCTIONS BY QUESTION 10. Final order means a written directive or declaratory statement issued by a federal or state agency, described in Rule 3(4)(c)(ii) of Regulation Crowdfunding, under applicable statutory authority, that provides for notice and an opportunity for hearing, which constitutes a final disposition or action by that federal or state agency.

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

## OTHER MATERIAL INFORMATION

3) In addition to the information expressly required to be included in this Form, include:

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

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

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

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

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

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

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

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

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

INSTRUCTIONS TO QUESTION 31. If information is presented in questions in a format, media or other means available to be reflected in text or possible document format, the issuer should include:

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

## ONGOING REPORTING

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

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

33. Once posted, the annual report may be found on the issuer's website at:
http://www.WitCoCocktails.com/invest

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

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

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement
Withco Subscription Agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Joshua Ellis

Appendix E: Supporting Documents

ttw_communications_115042_211744.pdf
Op_Agreement_2023.pdf

## Signatures

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

The following documents will be filed with the SEC:

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

Withco Subscription Agreement

Appendix C: Financial Statements

Financials 1

Appendix D: Director & Officer Work History

Joshua Ellis

Appendix E: Supporting Documents

ttw_communications_115042_211744.pdf

Op_Agreement_2023.pdf

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

Kindred Spirits Nashville, LLC dba
Withco

By

Joshua Ellis

Founder & CEO

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (§ 227.100 et seq.), this Form C and Transfer Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.

Joshua Ellis

Founder & CEO

2/23/2023

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

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

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

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

INVEST IN WITHCO "WITH COMPANY"

## Functional mixes using fresh juices & real botanicals. Mix with spirits or soda

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

withcocktails.com Nashville TN

LEAD INVESTOR

Matt Poliseno

I've had the privilege to witness the WithCo team take an idea and make it a nationally distributed product. It's been incredible to watch and support this journey as a friend and racing customer of the product itself. The team has accomplished so much in in such a short amount of time while only having just begun their journey. The product is the hands down the best move on the market, but more importantly the team, the vision, and the community behind the it are what make WithCo an incredible company and investment opportunity. Normally you need a lot more cash to get involved with something like this. Join us - you'll be glad you did.

Invested $5,000 this round

## Highlights

1. Over $6m in revenue in 3 years.
2. Served in NFL, MLB, & NHL Stadiums
3. Distribution deals with the 3 largest Spirits and 2 Grocery Distributors in the US
4. Carried in CVS across 8 states and 1700 TARGET locations launching in March 2023
5. $20mil projected by 2025
6. Currently in conversations with Kroger, Walmart, Wegmans, Sprouts, The Fresh Market, CostCo.
7. Mixer Category Market is expected to reach $15B globally by 2028
8. Multiple Sales channels : Online, Liquor Stores, Stadiums, Grocery Stores, and Behind Bars.

## Our Founder

Joshua Ellis Founder & CEO

15 years of business & entrepreneurship experience ranging from beverage, real estate, and corporate 500 companies. 2x Founder. Scaled WithCo company 1500% growth in 24 months.

We knew that creating cocktails and mocktails at home and behind the bar is time consuming, costly, and far too complicated. We knew that fresh ingredients cocktails were something we desired in our life and knew others desired the same. For us, we started this for the aspect of helping people drink "with company." Which is what WithCo stands for.

Welcome to WithCo. We're glad you're here. Let us

take you on a journey.

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

Our mixes are made with only the freshest ingredients possible. Why? Because fresh simply tastes the best. Packed with functional ingredients like lavender, rose, ginger root, bee pollen, and more - so you can feel good about what you consume.

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

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

We launched our mixes into the market with a focus on at-home consumption. Which paired well for us during the 2020-2021 Pandemic as at-home consumption sky rocketed.

Since then we've created a larger format bottle which now plays a roll behind bars in the likes of stadiums, hotels, and hospitality groups. Talk about a full circle moment for the mixes.

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

## WE'VE GOT BIG PLANS

We're innovating the $254B annual US Alcohol industry for premium cocktails at home and behind the bar.

## IN A GROWING INDUSTRY

Cocktail Category in 2020 : $3 Billion
Cocktail Category in 2028 : $14.6 Billion

### THE STORY

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

Joshua Ellis and Bradley Ryan here, the Co-Founders of WithCo. We set out to find a product on the market to help us create bar-quality cocktails at home using fresh ingredients that were free of preservatives, additives, concentrates, and "natural flavoring."

We discovered that non exists. So, with Bradley's mixology background and bar-operations mind, they set out to create the first fully fresh ingredient, bar-to-bottle mix using only fresh juices and real botanicals.

We've taken all the prep work for you - The measuring, the muddling, the chopping. All you have to do is add ice, a splash of liquor or soda water and give it a stir.

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WithCo stands for *With Company*. For us, it's always been about bringing people together. We created a simple way for you to return to the ritual of connection with cocktails, conversation and community.

What began as a backyard birthday party sparked an idea to create cocktails with *real ingredients* and sell them online, in stores, and behind bars.

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Throughout 2020-2022 we experienced tremendous growth and began building out our team which is now filled with our Co-Founders, Operations Director, Sales and Customer Service, Warehouse and Logistics, Sales Reps and Brokers.

We now have over 6,000 sq. ft. of office and warehousing in Nashville Tn.

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## THE PRODUCT

Let us dive a little deeper into the product itself. Our fresh ingredient mixers current come in 3 different sizes. Our 4oz sampler kit bottles, 16oz white bottle, and our 750ml bottle (similar to a traditional liquor or wine bottle).

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## 16OZ Bottles Used Online, Amazon, Grocery & Retail

Our 16oz bottle is our flagship product that comes in 7 flavors. Each bottle serves 10 drinks. Excluding the Old Fashioned which serves 32 cocktails per (16oz) bottle.

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Potato & Buds / Cone Sugar

FUNCTIONAL BENEFITS

Digestion / Antioxidants /
Canning / Cross Relief

PAIRINGS

Vodka / Gin / Tequila / Rum /
Chorepogon / Goto Water

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# HONEY SOUR

INGREDIENTS

Beef Pakan / Raw Lemon /
Fresh Lemon

FUNCTIONAL BENEFITS

Liver Support / Inflammation /
Immunity / Antioxidants

PAIRINGS

Gin / Tequila / Whiskey

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# FLUS OLD
FASHIONED

INGREDIENTS

Wadayausa / Vanilla / Angostura
Bitters / Orange / Cinnamon

FUNCTIONAL BENEFITS

Immunity / Anti-Inflammatory /
Neuroprotective

PAIRINGS

Whiskey / Anjo Tequila / Mezcal

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# GINGER MULE

INGREDIENTS

Ginger Mint / Angostura Bitters /
Fresh Lime Juice

FUNCTIONAL BENEFITS

Digestive Aid / Anti-Inflammatory /
Antioxidant / Anti-Nausea

PAIRINGS

Vodka / Whiskey / Tequila / Mezcal /
Soda Water

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# HEY GIRL

INGREDIENTS

Cucumber / Fresh Mint / Fresh
Lime / Cone Sugar

FUNCTIONAL BENEFITS

Digestive / Anti-Inflammatory /
Antioxidant / Brain Support

PAIRINGS

Vodka / Gin / Tequila / Mezcal / Soda
Water

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# BLOODY MARY

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# **INCREDENTS**

Toronto / Colony Salt / Horseradish
Host / Apple Cider / Lemon / Paprika /
Singer Root

# **FUNCTIONAL BENEFITS**

Digestive Aid / Anti-Inflammatory /
Antioxidant / Anti-Nousca

# **PARINGS**

Violita / Whiskey / Tequila / Mezcal /
Soda Water

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# **750ml Bottles Bars, Restaurants, Stadiums, Hotels, Venues, and Casinos**

Our 750ml bottles serve our B2B partners. Ideal for high volume, speed and ease, consistency and profitability at every pour, we're helping raise the bar.

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Watch on the table

## Non-Alcoholic Industry

An interesting aspect of our product is that it not only serves in the liquor space but as well as the non alcoholic space.

The non-alc industry is one of the fastest growing trends in beverage. With more people turning to sober or lower abv. lifestyles, WithCo is becoming part of this international conversation.

Many of our mixes pair with soda water giving it way to fresh ingredient, botanical non-alc beverages at home and behind bars.

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## THE NUMBERS

Now, let's dive into the numbers. Here, we'll share historical growth, current sales channels, and many of our current partnerships.

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Over the last 3 years, we've experienced tremendous growth leading us from our living room to out growing 4 different warehouses in the span of a year and hiring over 10+ employees and industry experts. Our growth has been through direct to consumer, liquor store distribution, hospitality and grocery.

**1500%**
GROWTH IN 5 YEARS

Combination of Direct to Consumer, Business to Business Wholesale and Liquor Store Distribution.

**30,000+**
VERY CUSTOMERS IN 30 MONTHS

Customer Retention is estimated at 30 percent and growing as we continue to build a deeper relationship with our customers.

**8.5 Million**
COCKTAILS SOLD

People love WithCo and our number of cocktails sold increase every single day.

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**2019 / 2022**

2019 2020 2021 2022 TOTAL

REVENUE: $85,000 $1,050,000 $2,550,000 $2,000,000 $5,695,000

**2022 - Why did we do less revenue?**

We intentionally scaled back our revenue and online marketing spend to 2021 our reward wholesale with grocery and retail. 2022-2023 C-Care was profitable online but poor COVID became very costly in 2022 as we planned. We also decided to get over the second half of 2022 and decreased our monthly expenses by 25% a month. This new plant is sending us into a significant growth year for 2023 and beyond.

We secured a major retailer cost. $1000 a month in 2022 but the final order totaled in 2023. Otherwise 2022 would have reflected a higher revenue.

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We are focused on 3 major points of sales and distribution which combine a structure of a spirits company paired with a CPG (Consumer Product Good) company. We are doing this through Retail (Grocery & Liquor Stores), Online (past and future customers), and Hospitality (Bars, Restaurants, Stadiums, Venues, Hotels and locations that focus on high volume cocktail programs.

A large part of our business comes from partnering with organizations and we've been blessed to work with some incredible companies across sports & entertainment, hospitality, and retail.

# Wholesale Partners

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# RETAIL & GROCERY

The retail landscape has drastically changed over the past few years for up-and-coming food and beverage brands. Now more than ever, "Better-For-You" products are taking priority on the store shelves.

Why? Because consumers are desiring better products with clean nutritional panels and transparent ingredients.

This goes for the cocktail mixer category which has historically been inundated with high calorie, high sugar, "naturally flavored" cocktail mixers.

Until now..

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Our retail pivot last year led us to one of the biggest partnerships a young, growing brand could dream of. TARGET with 1700 store launch in March of 2023.

With the help of our 2 grocery brokers we have entered conversations with some of the biggest retails in the US. Our focus in to gain traction in all the natural stores first while doing regional test in the larger national accounts.

These will not all happen in 2023 but this has created a very scalable model for us to grow year over year.

We're currently speaking with -

We came into 2023 strong with our rights set at approaching national chain and retail grocery accounts. In January and February we've had the opportunity to open discussions with the following brands.

SPROUTS FARMERS MARKET

Kroger

FOODS FOODS

FRESH FOODS

Walmart

Publix

Wegmans

ROUSES MARKETS

COSTCO

## HOSPITALITY

WithCo was born behind the bar before it ever made it's way into a bottle. So, it's only natural that we're finding demand behind the bar again.

Post pandemic, the need for a batched cocktail mix has never been needed more. With high turn over and staffing issues, WithCo creates a simple 2-part cocktail to create speed, ease, consistency, quality and profitability for any beverage program.

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## Largest Pain Points behind the bar: Speed & Ease, Consistency, Quality

Our mixes create a "Bar Program in a Box" to the bar or restaurant. Allowing them to solve all of their problems while creating a profitable beverage program.

The largest problem hospitality industry, it's within high-volume

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Hospitality -

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From bars, restaurants, casinos, stadiums, resorts, theme parks, and venues the ability to scale into these bar programs is endless.

## So, how do we get in front of these bars and restaurants?

National Accounts like Hyatt, Hilton, Marriott, Buffalo Wild Wings, North Italia, Cheesecake Factory and restaurant groups alike, review their beverage menus every year to make changes, updates, reviews, and look for ways to create consistency and efficiencies in their programs.

WithCo's team has identified the top beverage agencies that work directly with these major hospitality groups.

In addition, with the WeFunder raise we will be hiring a Director of National Accounts to focus on this area of the business.

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## Official Cocktail Partner of the Tennessee Titans

Every stadium we speak to is desiring a better beverage program. They understand that fan experience if the most important part of the game experience.

From games to concerts, WithCo is helping stadiums, arenas, venues, and organizations create elevated, profitable and fan-focused beverage programs.

The weeks following our announcement with the Titans has led to over 10 stadium conversations with sports organizations looking to elevate their beverage experience using WithCo.

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MSCI

# 5 REASONS YOU SHOULD INVEST IN WITHCO

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# 5 REASONS YOU SHOULD INVEST

01 - MARKET DISRUPTION
02 - PROVEN REVENUE GROWTH
03 - DISTRIBUTION NETWORK
04 - RETAIL CHANNEL SUCCESS
05 - HOSPITALITY CHANNEL EXPANSION

Reason #1 WithCo is disrupting a market that has dominated market share for years by creating value in multiple different channels. Ready to drink and mixers are some of the fastest growing categories in beverage and WithCo is at the forefront with unprecedented growth.

Reason #2 From 2017-2019 we sold $300,000 in sales. From 2020-2022 we have surpassed $6M in sales. In 2023 revenue alone will reach $5MM in annual sales.

Reason #3 WithCo is prepping to scale into national distribution and we've secured support through the 3 largest distributors in the US.

Reason #4 We are growing our retail distribution to sell into over 2,500 locations by the end of 2023, 5,000+ stores by 2024 and over 10,000 locations across the United States by 2026. We're focused on Natural Grocery chains such as Whole Foods, Sprouts, The Fresh Market, Target, Publix, etc.

Reason #5 We're helping stadiums, arenas, venues, and organizations create elevated, profitable, and fan-focused beverage programs. Currently pending more than half a dozen professional stadiums across NFL, NHL, NBA, MLS, and MLB with many more in the funnel. This channel has the opportunity to drive the largest sales multiple when it comes to us exiting the company.

How did we calculate the current valuation? CPG (consumer product goods) companies have multiples ranging from 3-5x top line revenue while beverage and spirits companies have multiples as high as 15x top line revenue. Our current valuation of $17mm is made up of a 3.5x multiple on 2023's projected revenue

# HOW WE PLAN TO USE THE FUNDS

# Use Of Funds

01 - HIRE DIRECTOR OF SALES
02 - IN HOUSE MARKETING TEAM
03 - RETAIL MARKETING

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1) Hire an experienced Director of On Premise This position will focus on securing more placements behind bars. "On Premise" is an industry term for anywhere that serves our product behind their bar. This professional will focus on chain restaurants, hotels and casinos, and professional stadiums and venues..

2) In House Marketing Team - We need support across our digital marketing

efforts. From social media management, brand & design, PR, and other digital outlets to reach more customers and increase revenues.

3.) Retail Marketing: As we secure a big chain placement, we need to make sure it is selling through (not just sitting on the shelves). There is always a competition for shelf space the brands that perform best at retail will be the ones that stick around.

## HOW DO YOU MAKE YOUR MONEY BACK?

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The beverage industry is one that often ends in acquisition. Emerging brands enter the space, grow their footprint through distribution channels then sell the company at a higher multiple.

Similarly, our plan is to do the same. Beverage multiples are often factored in on gross revenue not EBITA and we've seen multiples range from 4X revenue up to 15X revenue.

Let's review a few companies that have exited in the beverage space.

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01 - You invest at a $17MM Valuation

02 - We follow our growth plan and increase valuation dramatically

03 - As we increase the value of the company, the value of your ownership increases. When we sell the company you get paid the appreciate of your ownership.

## HOW DO YOU GET YOUR MONEY BACK?

01 You invest at a $17MM valuation

02 We follow our growth plan and increase valuation dramatically.

03 As we increase the value of the company, the value of your ownership increases. When we sell the company you get paid the appreciation of

## BUY BACKS & DIVIDENDS

Our future growth gives us the potential for beverage highly profitable in a way that never warrants to anyone and potential dividends.

## ACQUISITION

We continue to provide companies to acquisitions directly from larger companies working in our chain.

ESPECIALLY IN BEVERAGE

your ownership.

### Here is our 4 year forecast

| PROJECTIONS |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  | 2023 | 2021 | 2023 | 2020 | 2027 |
| REVENUE | $5MM | $7.5MM | $15MM | $25MM | $35MM |
| RETAIL/ORDER | $25MM | $37.5MM | $75MM | $125MM | $275MM |
| RETAIL/ORDER | $50MM | $75MM | $150MM | $250MM | $350MM |
| BEVERAGE MULTIPLES CAN RANGE FROM 5x-15x ON GROSS SALES |  |  |  |  |  |

### A final message from the founders and the team that makes up the WithCo family.

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We have poured our hearts and souls into building this company. We like to say that entrepreneurship is the ability to see a vision in the future and wake up everyday to make that dream a reality. THAT is the story here at WithCo.

This is more than a company to us, this is a legacy. This is our chosen path and one we do not take lightly.

Thank you for taking the time to learn about our company, our vision for the future and our pursuit to help people gather, one cocktail at a time.

### A message to all you future investors

For the past few years of growth we've not had a plethora of dollars to spend; we've grown with hard work and dedication. That drive remains ever strong, and with your support we can't wait to push to the next level.

We understand that you are choosing to believe in us. We plan to steward your money well and put it toward things that have been aligned in this pitch above.

Thank you,

- WithCo Team

# Downloads

16oz Bottle Overview

750ml Bottle Bar Program

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

# LLC MEMBERSHIP INTEREST SUBSCRIPTION AGREEMENT OF KINDRED SPIRITS NASHVILLE, LLC

This LLC Membership Interest Subscription Agreement of Kindred Spirits Nashville, LLC (the "Agreement") is entered into effective as of [EFFECTIVE DATE], by and among Kindred Spirits Nashville, LLC ("Company"), a Tennessee limited liability company, whose address is 4331 Setter Rd., Nashville, TN 37218, and [INVESTOR NAME] ("Member").

1. Background. The Member understands that Kindred Spirits Nashville, LLC, a Tennessee limited liability company, is conducting an offering (the "Offering") under Section 4(a)(6) of the Securities Act of 1933, as amended (the "Securities Act") and Regulation Crowdfunding promulgated thereunder. This Offering is made pursuant to the Form C of the Company that has been filed by the Company with the Securities and Exchange Commission and is being made available on the Portal's website, as the same may be amended from time to time (the "Form C") and the Offering Statement, which is included therein (the "Offering Statement"). The Company is offering to both accredited and nonaccredited investors up to 26,823.00 units of its Class D Membership Units, (each a "Unit" and, collectively, the "Units") at a purchase price of $18.6404 per Unit (the "Purchase Price"). The term "Capital Investiture" shall mean the total number of Units purchased multiplied by the Purchase Price. The minimum amount or target amount to be raised in the Offering is $50,012.19 (the "Target Offering Amount") and the maximum amount to be raised in the offering is $499,991.45 (the "Maximum Offering Amount"). If the Offering is oversubscribed beyond the Target Offering Amount, the Company will sell Units on a basis to be determined by the Company's management. The Company is offering the Units to prospective investors through the Wefunder crowdfunding portal (the "Portal"). The Portal is registered with the Securities and Exchange Commission (the "SEC"), as a funding portal and is a funding portal member of the Financial Industry Regulatory Authority. The Company will pay the Portal a commission equal to 6.5% of gross monies raised in the Offering. Investors should carefully review the Form C and the accompanying Offering Statement, which are available on the website of the Portal at www.wefunder.com.

2. Subscription. Subject to the terms of this Agreement and the Form C and related Offering Statement, the Member hereby subscribes to purchase the number of Units equal to the quotient of the Member's subscription amount as indicated through the Portal's platform divided by the Purchase Price and shall pay the aggregate Purchase Price in the manner specified in the Form C and Offering Statement and as per the directions of the Portal through the Portal's website. Such subscription shall be deemed to be accepted by the Company only when both (i) this Agreement is countersigned on the Company's behalf, and (ii) the Member and Company have executed the "Joinder Agreement" (as defined below). No investor may subscribe for a Unit in the Offering after the Offering campaign deadline as specified in the Offering Statement and on the Portal's website (the "Offering Deadline").

3. Membership Subject to Operating Agreement. The Membership Interests in and to Company being issued by Company to Member shall be subject to all of the covenants, terms and conditions of that certain Amended and Restated Operating Agreement of Kindred Spirits Nashville, LLC, dated February 2, 2020 ("Amended & Restated Operating Agreement") as subsequently amended (the "Amendments") (the Amended & Restated Operating Agreement and the Amendments are collectively referred to as the "Operating Agreement") as though Member were an original party of the Operating Agreement, and shall be further subject to the execution (by Member and Company) of a so-called "joinder agreement" to such Operating Agreement (the "Joinder Agreement"). For the

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avoidance of doubt, Member shall not acquire the Units or Membership Interests described above unless and until the Joinder Agreement is fully executed by all parties to such Joinder Agreement and all conditions precedent of such Joinder Agreement have been completely fulfilled.

4. NON-REGISTERED SECURITIES. THE SECURITIES ARE BEING OFFERED PURSUANT TO SECTION 4(A)(6) AND REGULATION CROWDFUNDING OF THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. NO FEDERAL OR STATE SECURITIES ADMINISTRATOR HAS REVIEWED OR PASSED ON THE ACCURACY OR ADEQUACY OF THE OFFERING MATERIALS FOR THESE SECURITIES. THERE ARE SIGNIFICANT RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN AND NO RESALE MARKET MAY BE AVAILABLE AFTER RESTRICTIONS EXPIRE. THE PURCHASE OF THESE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT WITHOUT A CHANGE IN THEIR LIFESTYLE.

# 5. Closing.

(a) Closing. Subject to this Section 5(b), the closing of the sale and purchase of the Units pursuant to this Agreement (the "Closing") shall take place through the Portal within five Business Days after the Offering Deadline (the "Closing Date").
(b) Closing Conditions. The Closing is conditioned upon satisfaction of all the following conditions:

(i) prior to the Offering Deadline (as defined herein), the Company shall have received aggregate subscriptions for Units in an aggregate investment amount of at least the Target Offering Amount;
(ii) at the time of the Closing, the Company shall have received into the escrow account established with the Portal and the escrow agent in cleared funds, and is accepting, subscriptions for Units having an aggregate investment amount of at least the Target Offering Amount;
(iii) the Company shall have filed the certificate of designation of the Company in substantially the form attached as an exhibit to the Form C with the Secretary of State of the State of Tennessee; and
(iv) the representations and warranties of the Company contained in Section 9 hereof and of the Member contained in Section 7 hereof shall be true and correct as of the Closing in all respects with the same effect as though such representations and warranties had been made as of the Closing.

6. Termination of the Offering; Other Offerings. The Member acknowledges and agrees that the Company may terminate the Offering at any time and for any reason, at the sole and absolute

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discretion of the Company. The Member further acknowledges and agrees that during and following termination of the Offering, the Company may undertake offerings of other securities, which may or may not be on terms more favorable to an investor than the terms of this Offering. The Member further acknowledges and agrees that the Company's decision to terminate the Offering shall not result in any liability to Company (and the Member shall have no claim, whether known or unknown, and whether under contract, tort, the Securities Act, or otherwise against Company or its officers, directors, or members) of any kind nature or description.

7. Representations. The Member represents and warrants to the Company and the Company's agents as follows:

(a) The Member understands and accepts that the purchase of the Units involves various risks, including the risks outlined in the Form C, the accompanying Offering Statement, and in this Agreement. The Member can bear the economic risk of this investment and can afford a complete loss thereof without a change in the Member's lifestyle; the Member has sufficient liquid assets to pay the full purchase price for the Units; and the Member has adequate means of providing for its current needs and possible contingencies and has no present need for liquidity of the Member's investment in the Company.

(b) The Member acknowledges that at no time has it been expressly or implicitly suggested, represented, guaranteed or warranted to the Member by the Company or any other person that a percentage of profit and/or amount or type of gain or other consideration will be realized because of the purchase of the Units.

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

(d) The Member has received and reviewed a copy of the Form C and accompanying Offering Statement. With respect to information provided by the Company, the Member has relied solely on the information contained in the Form C and accompanying Offering Statement to make the decision to purchase the Units.

(e) The Member confirms that it is not relying and will not rely on any communication (written, oral or otherwise) of the Company, the Portal, or any of their respective affiliates, as investment advice or as a recommendation to purchase the Units. It is acknowledged and agreed that information and explanations related to the terms and conditions of the Units provided in the Form C and accompanying Offering Statement or otherwise by the Company, the Portal or any of their respective affiliates shall not be considered investment advice or a recommendation to purchase the Units, and that neither the Company, the Portal nor any of their respective affiliates is acting or has acted as an advisor to the Member in deciding to invest in the Units. The Member acknowledges that neither the Company, the Portal nor any of their respective affiliates have made any representation regarding the proper characterization of the Units for purposes of determining the Member's authority or suitability to invest in the Units.

(f) The Member is familiar with the business and financial condition and operations of the Company, all as generally described in the Form C and accompanying Offering Statement. The

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Member has had access to such information concerning the Company and the Units as it deems necessary to enable it to make an informed investment decision concerning the purchase of the Units.

(g) The Member acknowledges and agrees that, unless the Member notifies the Company in writing to the contrary at or before the Closing, each of the Member's representations and warranties contained in this Agreement will be deemed to have been reaffirmed and confirmed as of the Closing, taking into account all information received by the Member. If Member notifies the Company in writing of any change in the status of each of Member's representations and warranties, Company retains the right to immediately terminate this Agreement and all obligations hereunder.

(h) The Member acknowledges that the Company has the right in its sole and absolute discretion to abandon this Offering at any time prior to the completion of the Offering. This Agreement shall thereafter have no force or effect and WeFunder shall refund any previously paid subscription price of the Units, without interest thereon, to the Member or the applicable investors pursuant to Wefunder's terms of service or other agreement with Member and/or such applicable investors. The parties agree that Company shall have no liability or responsibility with respect to any such refund.

(i) The Member understands that no federal or state agency has passed upon the merits or risks of an investment in the Units or made any finding or determination concerning the fairness or advisability of this investment.

(j) The Member has up to 48 hours before the earlier of (A) the Closing Date, or (B) the campaign end date to cancel the purchase and get a full refund.

(k) The Member confirms that the Company has not (i) given any guarantee or representation as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) and of investment in the Units or (ii) made any representation to the Member regarding the legality of an investment in the Units under applicable legal investment or similar laws or regulations. In deciding to purchase the Units, the Member is not relying on the advice or recommendations of the Company and the Member has made its own independent decision, alone or in consultation with its investment advisors, that the investment in the Units is suitable and appropriate for the Member.

(l) The Member has such knowledge, skill and experience in business, financial and investment matters that the Member is capable of evaluating the merits and risks of an investment in the Units. With the assistance of the Member's own professional advisors, to the extent that the Member has deemed appropriate, the Member has made its own legal, tax, accounting and financial evaluation of the merits and risks of an investment in the Units and the consequences of this Agreement. The Member has considered the suitability of the Units as an investment in light of its own circumstances and financial condition and the Member is able to bear the risks associated with an investment in the Units and its authority to invest in the Units.

(m) The Member is acquiring the Units solely for the Member's own beneficial account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of the Units. The Member understands that the Units have not been registered under the Securities Act or any state securities laws by reason of specific exemptions under the provisions thereof which depend

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in part upon the investment intent of the Member and of the other representations made by the Member in this Agreement. The Member understands that the Company is relying upon the representations and agreements contained in this Agreement (and any supplemental information provided by the Member to the Company or the Portal) for the purpose of determining whether this transaction meets the requirements for such exemptions.

(n) The Member acknowledges and agrees that the Units are restricted from transfer for a period of time under applicable federal securities laws and that the Securities Act and the rules of the SEC provide in substance that the Member may dispose of the Units only pursuant to the terms and conditions and limitations on transfers as stated in the Operating Agreement and further subject to an effective registration statement under the Securities Act, an exemption therefrom or as further described in Section 227.501 of Regulation Crowdfunding, after which certain state restrictions may apply. The Member understands that the Company has no obligation or intention to register any of the Units, or to take action so as to permit sales pursuant to the Securities Act. Even if and when the Units become freely transferable, a secondary market in the Units may not develop. Consequently, the Member understands that the Member must bear the economic risks of the investment in the Units for an indefinite period of time. The Member specifically acknowledges and agrees that the Operating Agreement limits the circumstances in which the Member would be permitted to sell, transfer or otherwise dispose of the Units, and that all such limitations are fully binding upon the Member. The Member acknowledges that the Member has fully reviewed the Operating Agreement, including, without limitation, the limitations and restrictions on the sale or transfer of the Units therein.

(o) The Member agrees that the Member will not sell, assign, pledge, give, transfer or otherwise dispose of the Units or any interest therein or make any offer or attempt to do any of the foregoing, except pursuant to Section 227.501 of Regulation Crowdfunding and as further limited by the Operating Agreement.

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

(q) Member has the right and authority to enter into this agreement, and Member is not a party to any other agreement with any third party which conflicts with the terms and conditions of this Agreement.

(r) Member hereby represents that Member is acquiring the Membership Interests for Member's own account, as principal, for investment, that Member does not intend to divide its participation with others, and that Member is not acquiring the Membership Interest with a view to the resale or direct or indirect distribution of such Membership Interests or any interest therein.

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(s) Member has carefully reviewed the risks of, and other considerations relating to, investment in Company.

(t) Member understands that investment in Company is illiquid; that Member has adequate means of providing for Member's current needs and personal contingencies; and that Member has no need for liquidity in this investment.

(u) The terms, conditions, representations and warranties in this Paragraph 7 are of the essence of this Agreement.

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

9. **Non-Disclosure.** The parties agree that this Agreement and all terms and conditions hereof shall be confidential and shall not be discussed with, or otherwise disclosed to, any other person, firm or entity, without the prior written consent of Company. Additionally, any and all information of or pertaining to the Company shall be deemed confidential and shall not be discussed with, or otherwise disclosed to, any other person, firm or entity, without the prior written consent of Company. Member may, however discuss and disclose the foregoing with Member's attorney and certified public accountant. The terms and conditions of this Paragraph shall be of the essence of this Agreement.

10. **Indemnification.** The Member agrees to indemnify and hold harmless the Company and its directors, officers and agents (including legal counsel) from any and all damages, losses, costs and expenses (including reasonable attorneys' fees, court costs, expert witness fees and other legal costs) that they, or any of them, may incur by reason of the Member's failure, or alleged failure, to fulfill any of the terms and conditions of this subscription or by reason of the Member's breach of any of the Member's representations and warranties contained herein.

11. **Market Stand-Off.** Without limiting the restrictions and limitations on the sale or transfer of the Units as set forth in the Operating Agreement, if so requested by the Company or any representative of the underwriters (the "Managing Underwriter") in connection with any underwritten or Regulation A+ offering of securities of the Company under the Securities Act, the Member (including any successor or assign) shall not sell or otherwise transfer any Units or other securities of the Company during the 30-day period preceding and the 270-day period following the effective date of a registration or offering statement of the Company filed under the Securities Act for such public offering or Regulation A+ offering or underwriting (or such shorter period as may be requested by

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the Managing Underwriter and agreed to by the Company) (the "Market Standoff Period"). Without limiting the restrictions and limitations on the sale or transfer of the Units as set forth in the Operating Agreement, the Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period.

12. Capital Account. Member's capital account with Company shall be credited with the amount of the Capital Investiture pursuant to the terms and conditions of the Operating Agreement.
13. Notices. All notices given under this Agreement by any party to the other shall be transmitted in writing by United States registered or certified mail, return receipt requested and postage prepaid, by recognized currier (e.g., Federal Express or UPS), to the parties' respective addresses set forth below or to such other address as a party shall designate by notice to the other. A courtesy copy of any notice to Company will be sent to: R. Landon Dirickson, Esq., Dirickson Law, PLLC, PO Box 90867, Nashville, TN 37209; provided that no inadvertent failure to do so shall impair the validity of the notice. All notices shall be deemed given upon the date of deposit thereof in the United States Mail with the exception of notices of change of address, which shall be deemed given only upon actual receipt by the intended recipient.
14. Notification of Changes. The Member hereby covenants and agrees to notify the Company upon the occurrence of any event prior to the closing of the purchase of the Units pursuant to this Subscription Agreement, which would cause any representation, warranty, or covenant of the Member contained in this Subscription Agreement to be false or incorrect.
15. Miscellaneous. This Agreement contains the entire understanding of the parties relating to the subject matter hereof and will be governed by the laws of the State of Tennessee, without regard to Tennessee's conflicts of law rules. The parties hereto hereby irrevocably consent to the personal jurisdiction of the state and federal courts located in Davidson County, State of Tennessee, and further agree to bring all claims or actions arising under or in connection with this Agreement solely within such courts. Any service of process may be served upon the parties by any method provided under Tennessee law or by, without limitation, delivering, or mailing the same by certified mail or recognized courier (e.g., without limitation, Federal Express or UPS) to such parties last known address. As a condition precedent to any assertion by any party that another party is in breach of this Agreement, the non-breaching party shall advise the breaching party in writing specifying any such alleged breach, and the breaching party shall be allowed a period of thirty (30) days after the date of such written notice within which to cure such alleged breach (except for failure by Member to timely pay the Capital Investiture, for which there shall be no cure period). No modification, amendment, waiver, discharge or termination of this Agreement will be binding upon the parties unless it is made by an instrument signed by all parties and an authorized signatory of Company. This Agreement shall be binding upon the parties hereto and their respective affiliates, assigns, heirs and beneficiaries. If any term or provision of this Agreement shall be determined to be illegal or unenforceable, all other terms and provisions of this Agreement shall nevertheless remain effective and shall be enforced to the fullest extent permitted by applicable law. The paragraph headings are included solely for the convenience of the parties and shall not be deemed to describe, limit, modify or in any way affect the scope or interpretation of the paragraph themselves. For purposes of contractual interpretation, this Agreement shall be deemed the joint product of all parties hereto and no provision or term hereof shall be construed against any party hereto as the drafter, and the parties hereby unconditionally waive such defense or claim regarding this Agreement.

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16. Counterparts. This Agreement may be executed in multiple counterparts with the same effect as if the signatories executing the several counterparts had executed a single document, and all such executed counterparts shall together constitute one and the same instrument. Signatures submitted by facsimile and/or electronically in pdf (including, but not limited to, DocuSign) or other format shall be accepted as originals. The original of this document, including any and all signature page(s), may be scanned and stored in a computer database or other electronic format and the original destroyed, and any printout or other output readable by human sight, the reproduction of which accurately reproduces the original of this document, may be used for any purpose as if it were the original, including proof of the content of the original writing.

17. Waiver of Jury Trial. THE MEMBER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT.

18. INDEPENDENT COUNSEL. THE PARTIES HEREBY ACKNOWLEDGE THAT THE LAW FIRM OF DIRICKSON LAW, PLLC HAS ONLY REPRESENTED THE COMPANY IN THIS MATTER. THE MEMBER FURTHER ACKNOWLEDGES THAT NEITHER DIRICKSON LAW, NOR R. LANDON DIRICKSON, ESQ., HAVE REPRESENTED OR ADVISED THE MEMBER WITH RESPECT TO THE NEGOTIATION, LEGAL MEANING AND EFFECT OF THIS AGREEMENT. THE MEMBER FURTHER ACKNOWLEDGES THAT THE MEMBER HAS BEEN ADVISED AND ENCOURAGED TO SEEK INDEPENDENT LEGAL COUNSEL OF THE MEMBER'S OWN CHOOSING TO REPRESENT AND ADVISE THE MEMBER WITH RESPECT TO THE NEGOTIATION, LEGAL MEANING AND EFFECT OF THIS AGREEMENT, AND THE MEMBER HAS EITHER BEEN SO REPRESENTED OR HAS KNOWINGLY AND VOLUNTARILY WAIVED SUCH RIGHT AND ALL CLAIMS BASED THEREON.

19. Binding Nature. MEMBER ACKNOWLEDGES AND AGREES THAT THE TERMS AND CONDITIONS OF THIS AGREEMENT SHALL BE BINDING UPON EACH AND EVERY OWNER OF SECURITIES OR OTHER OWNERSHIP INTEREST IN AND TO THE LEGAL ENTITY COMPRISING MEMBER.

[Signature page follows]

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

Number of Units: [UNITS]

Aggregate Purchase Price: $[AMOUNT]

COMPANY:

Kindred Spirits Nashville, LLC Dba Withco

Founder Signature

Name: [FOUNDER_NAME]

Title: [FOUNDER_TITLE]

Read and Approved (For IRA Use Only):

SUBSCRIBER:

[ENTITY NAME]

By:

Investor Signature

By:

Name: [INVESTOR NAME]

Title: [INVESTOR TITLE]

The Subscriber is an “accredited investor” as that term is defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act.

Please indicate Yes or No by checking the appropriate box:

☐ Accredited

☑ Not Accredited

SIGNATURE PAGE

TO

SUBSCRIPTION AGREEMENT

# JOINDER AGREEMENT
TO AMENDED AND RESTATED OPERATING AGREEMENT OF
KINDRED SPIRITS NASHVILLE, LLC

THIS JOINDER AGREEMENT TO AMENDED AND RESTATED OPERATING AGREEMENT OF KINDRED SPIRITS NASHVILLE, LLC (this "Agreement") is made and entered into effective as of [DATE] , by and among Kindred Spirits Nashville, LLC ("Company"), a Tennessee limited liability company, whose address is 4331 Setter Road, Nashville, TN 37218 and the undersigned [INVESTOR NAME] ("New Member"), (all of the foregoing sometimes being referred to hereinafter collectively as the "parties").

1. Reference is hereby made to that certain Amended And Restated Operating Agreement of Kindred Spirits Nashville, LLC by and among the Company and the members of the Company having an effective date of February 2, 2020, as the same may be further amended from time to time (the "Limited Liability Company Agreement"). The parties hereby acknowledge and agree that New Member will, upon the full execution of this Agreement, become a party to the Limited Liability Company Agreement and shall be fully bound by, and subject to, all of the covenants, terms and conditions of the Limited Liability Company Agreement as though an original party thereto, and New Member shall have the number of units of Class D Membership as set forth in that certain LLC Membership Subscription Agreement of Kindred Spirits Nashville, LLC dated [DATE] (the Subscription Agreement"), entered into by and between New Member and Company. NEW MEMBER ACKNOWLEDGES AND AGREES THAT CLASS D MEMBERSHIP UNITS HAVE NO VOTING OR MANAGEMENT RIGHTS IN AND TO THE COMPANY.

2. The parties agree that both, the full execution of the Subscription Agreement, and the delivery to Company by New Member of the Capital Investiture set forth in such Subscription Agreement, are conditions precedent to this Agreement becoming effective, and in the event either of such conditions precedent are not fully satisfied, then this Agreement shall be void ab initio. Company, New Member and the Members hereby stipulate and agree that they have been afforded the opportunity to consider the transaction contemplated hereunder and by signing below have consented and agreed, subject to the terms and conditions hereof, to admit New Member as a Member of the Company. The parties agree that the foregoing provisions of this paragraph 2 are of the essence of this Agreement.

3. The parties agree that this Agreement and all terms and conditions hereof shall be confidential and shall not be discussed with, or otherwise disclosed to, any other person, firm or entity, without the prior written consent of Company. Additionally, any and all information of or pertaining to the Company shall be deemed confidential and shall not be discussed with, or otherwise disclosed to, any other person, firm or entity, without the prior written consent of Company. New Member may, however discuss and disclose the foregoing with New Member's attorney and certified public accountant. The foregoing provision shall be of the essence of this Agreement.

4. New Member hereby agrees, that, for so long as New Member retains any Membership Interest in Company, then New Member shall not participate (whether through any equity or other

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ownership interest, consulting relationship, or otherwise) in a business, company or venture that competes with Company. The foregoing provision shall be of the essence of this Agreement.

5. This Agreement may be executed in multiple counterparts with the same effect as if the signatories executing the several counterparts had executed a single document, and all such executed counterparts shall together constitute one and the same instrument. Signatures submitted by facsimile and/or electronically in pdf (including, but not limited to, DocuSign) or other format shall be accepted as originals. The original of this document, including any and all signature page(s), may be scanned and stored in a computer database or other electronic format and the original destroyed, and any printout or other output readable by human sight, the reproduction of which accurately reproduces the original of this document, may be used for any purpose as if it were the original, including proof of the content of the original writing.
6. New Member represents and warrants that New Member has the right to enter into and fully perform this Agreement.
7. THE PARTIES HEREBY ACKNOWLEDGE THAT THE LAW FIRM OF DIRICKSON LAW, PLLC HAS ONLY REPRESENTED THE COMPANY IN THIS MATTER. THE PARTIES FURTHER ACKNOWLEDGE THAT NEITHER DIRICKSON LAW, NOR ANY ATTORNEY OF DIRICKSON LAW, HAVE REPRESENTED OR ADVISED ANY PARTY OTHER THAN COMPANY WITH RESPECT TO THE NEGOTIATION, LEGAL MEANING AND EFFECT OF THIS AGREEMENT. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE EACH BEEN ADVISED AND ENCOURAGED TO SEEK INDEPENDENT LEGAL COUNSEL OF THEIR OWN CHOOSING TO REPRESENT AND ADVISE EACH SUCH PARTY WITH RESPECT TO THE NEGOTIATION, LEGAL MEANING AND EFFECT OF THIS AGREEMENT, AND ALL SUCH PARTIES HAVE EITHER BEEN SO REPRESENTED OR HAVE KNOWINGLY AND VOLUNTARILY WAIVED SUCH RIGHT AND ALL CLAIMS BASED THEREON.
8. Capitalized terms used herein without definition shall have the meanings ascribed thereto in the Limited Liability Company Agreement.

IN WITNESS WHEREOF, the undersigned Member has executed or caused this Agreement to be executed as of the day and year first written above.

COMPANY: Kindred Spirits Nashville, LLC

By: Founder Signature

An Authorized Signatory

NEW MEMBER:

By: Investor Signature

Print Name: [INVESTOR NAME]

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

# **WithCo I (THE "SPV"),**

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

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

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

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

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

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

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY
REPRESENTATIONS

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

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

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

# 6. Key Risk Factors

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

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

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

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

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

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

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

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

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

# 7. Compliance With Anti-Money Laundering Laws.

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

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

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

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

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

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

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

# 8. Regulatory Provisions

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

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

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

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

# 9. Miscellaneous Provisions

# 9.1. Indemnification

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

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

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

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

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

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

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

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

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

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

# 9.5. Confidentiality

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

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

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

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

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

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

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

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

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

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

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

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

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

SPV

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

By: Founder Signature

Date:

Name: Nicholas Tommarello

Title: Chief Executive Officer

Investor

[INVESTOR NAME]

By: Investor Signature

Date:

CONTACT INFORMATION:

Name: [INVESTOR NAME]

Mailing Address:

City:

Country:

E-mail:

# TERMS APPENDIX FOR THE PURCHASE OF Kindred
Spirits Nashville, LLC dba Withco SECURITIES BY
WithCo I, A SERIES OF WEFUNDER SPV, LLC, A
DELAWARE LIMITED LIABILITY COMPANY

**Type of Security:** Priced Round

**Terms** $18.64 per share and a $17M pre-money valuation

To view a copy of the contract, please see **Appendix B, Investor Contracts** of
the Form C. The latest Form C or C/A filing be found here:
https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-
TYPE%3DC%2FA+or+FORM-
TYPE%3DC%29+and+CIK%3D0001945863&first=2016

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

# **Kindred Spirits Nashville LLC, DBA WithCo** (the “Company”) a Tennessee Limited Liability Company

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

Years ended December 31, 2020 & 2021

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

## INDEPENDENT ACCOUNTANT'S REVIEW REPORT

Kindred Spirits Nashville, LLC dba Withco

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

### Management's Responsibility for the Financial Statements

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

### Accountant's Responsibility

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

### Accountant's Conclusion

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

### Going Concern

As discussed in Note 9, certain conditions indicate that the Company may be unable to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs.

Vince Mongio, CPA, CIA, CFE, MACC

Miami, FL

January 10, 2023

*Vincenzo Mongio*

# **Kindred Spirits Nashville, LLC dba WithCo Cocktails**  
 **Statement of Financial Position**

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 61,848 | 75,474 |
| Accounts Receivable | 34,788 | 34,451 |
| Prepaid Expenses | 10,503 | 610 |
| Other Current Assets | 8,441 | 14,283 |
| Inventory | 127,175 | 36,995 |
| Total Current Assets | 242,755 | 161,813 |
| Non-current Assets |  |  |
| Furniture, Vehicles and Equipment, net of Accumulated Depreciation | 33,206 | 44,775 |
| Total Non-Current Assets | 33,206 | 44,775 |
| TOTAL ASSETS | 275,961 | 206,588 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Accounts Payable | 188,992 | 89,183 |
| Credit Cards Payable | 25,273 | 19,912 |
| Short Term Portion of Loans Payable | 120,771 | 72,472 |
| Payroll Accrual | - | 1,701 |
| Total Current Liabilities | 335,036 | 183,268 |
| Long-term Liabilities |  |  |
| Notes Payable | 89,619 | 75,287 |
| Total Long-Term Liabilities | 89,619 | 75,287 |
| TOTAL LIABILITIES | 424,655 | 258,555 |
| EQUITY |  |  |
| Member Equity/(Deficit) | (148,694) | (51,967) |
| Total Equity | (148,694) | (51,967) |
| TOTAL LIABILITIES AND EQUITY | 275,961 | 206,589 |

# **Kindred Spirits Nashville, LLC dba WithCo Cocktails**  
 **Statement of Changes in Member Equity**

|  | Preferred Units | Class B Common Units | Class C Common Units | Total Member Equity $ |
| --- | --- | --- | --- | --- |
| Beginning Balance at 1/1/20 | 200,000 | 200,000 | 120,000 | 1,807 |
| Share Issuances | - | - | - | - |
| Capital Distributions | - | - | - | (59,745) |
| Net Income (Loss) | - | - | - | (34,029) |
| Ending Balance 12/31/2020 | 200,000 | 200,000 | 120,000 | (51,967) |
| Capital Distributions | - | - | - | (61,940) |
| Net Income (Loss) | - | - | - | (284,787) |
| Share Issuances | - | 110,000 | 30,000 | 250,000 |
| Ending Balance 12/31/2021 | 200,000 | 310,000 | 150,000 | (148,694) |

# **Kindred Spirits Nashville, LLC dba WithCo Cocktails**  
 **Statement of Operations**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenue | 2,658,040 | 1,059,100 |
| Cost of Revenue | 1,611,230 | 649,976 |
| Gross Profit | 1,046,810 | 409,123 |
| Operating Expenses |  |  |
| Advertising and Marketing | 433,128 | 139,329 |
| Payroll Expenses | 196,917 | 51,799 |
| Contractor Expenses | 179,512 | 76,505 |
| Guaranteed Draws | 145,483 | - |
| Consulting Fees | 127,150 | 45,585 |
| General & Administrative | 99,104 | 49,817 |
| Rent & Lease | 41,306 | 15,185 |
| Legal & Professional Fees | 31,113 | 14,231 |
| Utilities | 16,973 | 2,335 |
| Travel Expenses | 14,772 | 9,525 |
| Meals && Entertainment | 12,410 | 14,205 |
| Vehicle Expense | 11,844 | 11,545 |
| Depreciation Expense | 1,905 | 8,671 |
| Total Operating Expenses | 1,311,616 | 438,732 |
| Operating Income (loss) | (264,806) | (29,608) |
| Other Income |  |  |
| Gain on Sale of Assets | 1,700 | - |
| Loan Forgiveness | - | 2,000 |
| Total Other Income | 1,700 | 2,000 |
| Other Expense |  |  |
| Interest Expense | 21,681 | 6,420 |
| Other | - | - |
| Total Other Expense | 21,681 | 6,420 |
| Net Income (loss) | (284,787) | (34,029) |

# **Kindred Spirits Nashville, LLC dba WithCo Cocktails**  
 **Statement of Cash Flows**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | (284,787) | (34,029) |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Accounts Receivable | (337) | (30,251) |
| Prepaid Expenses | (9,893) | (610) |
| Other Current Assets | 5,842 | (14,283) |
| Inventory | (90,181) | (784) |
| Accounts Payable | 99,809 | 89,183 |
| Credit Cards Payable | 5,361 | 19,912 |
| Payroll Accrual | (1,701) | 1,701 |
| Depreciation Expense | 1,905 | 8,671 |
| Gain on Sale of Asset | (1,700) | - |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | 9,106 | 73,538 |
| Net Cash provided by (used in) Operating Activities | (275,681) | 39,510 |
| INVESTING ACTIVITIES |  |  |
| Furniture & Equipment | (11,093) | (5,446) |
| Cash from Sale of Vehicle | 25,700 | - |
| Vehicles | (3,243) | (12,889) |
| Net Cash provided by (used by) Investing Activities | 11,364 | (18,336) |
| FINANCING ACTIVITIES |  |  |
| Debt Issuances | 62,630 | 57,804 |
| Owner Contributions | 250,000 | 40,000 |
| Owner Distributions | (61,940) | (59,745) |
| Net Cash provided by (used in) Financing Activities | 250,690 | 38,058 |
| Cash at the beginning of period | 75,474 | 16,242 |
| Net Cash increase (decrease) for period | (13,627) | 59,232 |
| Cash at end of period | 61,848 | 75,474 |

# Kindred Spirits Nashville, LLC dba Withco
Notes to the Unaudited Financial Statements
December 31st, 2021
SUSD

# NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES

Kindred Spirits Nashville, LLC Dba Withco was formed in September of 2015. The company sells cocktail mixes using fresh juices and real botanicals and sells/distributes the product online and through wholesale distribution partners. The company headquarters are in Nashville, Tennessee USA. The Company’s customers will be located in the United States.

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

# NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

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

Use of Estimates and Assumptions

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

Cash and Cash Equivalents

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

Fair Value of Financial Instruments

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

These tiers include:

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

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

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

Concentrations of Credit Risks

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

## Revenue Recognition

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

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

The Company generates revenue by the delivery of beverage products. Revenue is recognized at the time of shipment. Revenue is received immediately for direct customer sales via Shopify; revenue is recognized for Amazon sales on the date of the sale; revenue is recognized for Wholesale upon delivery and most wholesale customers are given a 30-day payment window. Returns are not common and are not estimated on the financial statements.

## Property and Equipment

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

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

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

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Additions | Disposals | Book Value as of 12/31/21 |
| --- | --- | --- | --- | --- | --- | --- |
| Furniture, Vehicles & Equipment | 3-7 | 53,446 | (10,576) | 14,336 | (24,000) | 33,206 |
| Grand Total | - | 53,446 | 10,576 | 14,336 | (24,000) | 33,206 |

## Inventory

Inventory consists of raw materials, work in progress and finished goods and is recorded at the lower of cost or net realizable value.

## Accounts Receivable

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

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

#### Advertising Costs

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

#### General and Administrative

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

#### Equity based compensation

**Warrants** - The Company accounts for stock warrants as either equity instruments, derivative liabilities, or liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (ASC 480), depending on the specific terms of the warrant agreement. The warrant grants the warrant holder the option to purchase 50,000 units of class A membership for consideration in the amount of $500. As of December 31, 2021, the warrant option had not been exercised.

#### Income Taxes

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

#### Recent accounting pronouncements

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

### **NOTE 3 - RELATED PARTY TRANSACTIONS**

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

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

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

### **NOTE 5 - DEBT**

Line of Credit - The Company has entered into a line of credit of up to $50,000, with an interest rate of 6.25%. The collateral consists of all inventory & equipment of the company. The balance as of December 31, 2021, and 2020 was $49,402 and $49,987, respectively.

Loans - In May of 2020, the Company entered into a loan agreement for $25,400, and then amended the agreement in July of 2021 for a higher principal balance of $91,500 in which payments will start in early 2023. The loan is a 30 year, 3.5% per annum interest rate and the payment is estimated to be $432.41 per month. The balance as of December

31, 2021, and 2020 was $91,500 and $25,300, respectively.

In October of 2021 the Company received an advance of $55,000 which included $5,500 of interest, to be paid up front, making the loan $60,500. The loan is paid directly out of Shopify sales, and the interest is accrued monthly on the P&L, spread out over the course of the loan.

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

| Year | Amount |
| --- | --- |
| 2022 | 120,771 |
| 2023 | 1,948 |
| 2024 | 2,017 |
| 2025 | 2,089 |
| 2026 | 2,163 |
| Thereafter | 81,402 |

# **NOTE 6 - LEASES**

The Company began leasing a warehouse in September of 2020 for $1,545 per month, which is re-signed each year. The agreement has changed as of January 1, 2023, to continue on a month-to-month basis with a 30-day cancellation notice.

The Company began leasing an office space in April of 2021 for $1,900 per month, which is re-signed each year. The agreement has changed as of January 1, 2023, to continue on a month-to-month basis with a 30-day cancellation notice.

# **Lease Payments 5 Years  
Subsequent to 2021**

| Year Ending December 31, | Payment |
| --- | --- |
| 2022 | 41,340 |
| 2023 | 41,340 |
| 2024 | - |
| 2025 | - |
| 2026 | - |
| Thereafter | - |

# **NOTE 7 - EQUITY**

The Company has authorized 750,000 of common shares with a current par value of $5.00 per share. 220,000 and 460,000 shares were issued and outstanding as of December 31, 2020, and 2021, respectively.

Voting: Class B Common stockholders are entitled to one vote per share; Class C Common stockholders are not entitled to a vote.

Dividends: The company is not currently offering dividends.

The Company has authorized 250,000 of preferred shares with a current par value of $5 per share. 200,000 shares were issued and 50,000 shares were outstanding as of December 31, 2020, and 2021.

Voting: Preferred shareholders have 3 votes for every common share they could own if converted.

Dividends: The company is not currently offering dividends.

## NOTE 8 - SUBSEQUENT EVENTS

The Company has evaluated events subsequent to December 31, 2021 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through January 10, 2023, the date these financial statements were available to be issued.

In December of 2021, the Company entered a promissory note of $150,000 with an interest rate of 12% per annum, for which $1,500 of interest is paid each month. Cash for the loan was received in January of 2022. The loan matures in February of 2023. An extension of 90 days can be given, at which time the interest rate increases to 18% per annum.

The Company issued an additional 6,000 shares of common stock in exchange for $75,000 on 10/10/2022.

## NOTE 9 - GOING CONCERN

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

## NOTE 10 - RISKS AND UNCERTAINTIES

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

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

Contact

www.linkedin.com/in/
moderndayleader (LinkedIn)
viewer.zmags.com/publication/
cc1486aa (Other)
viewer.zmags.com/publication/
cc1486aa (Other)

Top Skills

Life Insurance
Fixed Annuities
Insurance

# WithCo Josh

Founder WithCo Cocktails | Encouraging Entrepreneurship | #cpg
#startups #vulnerability #entrepreneurship #beverage
Nashville Metropolitan Area

## Summary

Founder and CEO of WithCo Cocktails.

WithCo is a premium cocktail mix using fresh juices, real botanicals,
and no preservatives. Our product is batched and bottled in Nashville
and sold online, in liquor stores, stadiums, venues, grocery, and
behind bars and restaurants across the United States and Canada.
Over 1500% growth in 2 years while growing our national distribution
channels in the On and Off Premise sector.

Real Estate Investor and Beverage CEO with a wide range of
experience in start up to medium size business. Skilled in Sales,
Marketing, Culture, and Leadership.

Passion Projects : PeopleAreBrave.com

CocktailsAndCommunity.com SimpleHouseRealEstate.com

## Experience

WithCo Cocktails

Owner

June 2016 - Present (6 years 9 months)

Nashville, Tn

Cocktail mixes that raise the bar, WithCo is made with fresh ingredients, is
served with spirit or soda, and is meant to be enjoyed with good company.

Online | In Stores | Behind Bars

www.WithCoCocktails.com

People Are Brave

Founder

October 2016 - Present (6 years 5 months)

Nashville

A COMMUNITY fueled by courage and vulnerability, one story at a time. Share
yours...

Page 1 of 2

Our vision is to create the bravest place on earth by celebrating community that is fueled by belonging, acceptance and love. We believe that there is beauty in every story and freedom is found through sharing yours. Shame and fear has been allowed to paralyze lives for long enough and we are here to celebrate life's every messy detail by simply being vulnerable. Life is challenging but strength can be found by banding together and knowing that you're not alone on your journey. Welcome to your safe place, where your voice is valued and celebrated...the bravest place on earth.

www.PeopleAreBrave.com

## Education

Franklin Classical School

Humanities · (2005 - 2008)

Franklin Classical School

Page 2 of 2

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

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

# *We Prep, You Pour*

WithCo is a better-for-you batched cocktail mix, using only fresh, flavorful ingredients and no preservatives. At WithCo, we've done all the prep work for you. The measuring, the muddling, the chopping. All you have to do is add ice and a splash of your favorite spirit or sparkling.

1 / 21

THE COMPANY WE KEEP

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

# WITH COMPANY

Our mission is for each bottle of WithCo to stand as a reminder to share a drink and a connection with good company. We want to be the beverage for fireside chats, walks in the neighborhood, and poolside sipping. Wherever you gather with good company and need good drinks, bring WithCo. Let us handle the sourcing of amazing ingredients, fresh never from concentrate juices, and bottling balanced, bar quality beverages. In the end, we want everyone focusing on being with good company with a good drink in hand.

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

THE COMPANY WE KEEP

2 / 21

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

# Bouquet

BOTTLE SIZE: 160Z
RETAIL: $20
YIELDS: 10 COCKTAILS
CASE COUNT: 12 BOTTLES
SHELF LIFE: 12 MONTHS
CASE DIMENSIONS: 12x7.5x9

INGREDIENTS:
LAVENDER, FRESH LEMON, ROSEMATER

PAIRS WITH:
VODKA, GIN, TEQUILA, RUM,
CHAMPAGNE, SPARKLING

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

# Ellis Old Fashioned

BOTTLE SIZE: 160Z
RETAIL: $20
YIELDS: 32 COCKTAILS
CASE COUNT: 12 BOTTLES
SHELF LIFE: 12 MONTHS
CASE DIMENSIONS: 12x7.5x9

INGREDIENTS:
MADAGASCAR VANILLA, BITTERS, ORANGE, CINNAMON

PAIRS WITH:
BOURBON, WHISKEY, RYE, TEQUILA ANEJO, SPARKLING

# Agave Margarita

BOTTLE SIZE: 160Z
RETAIL: $20
YIELDS: 10 COCKTAILS
CASE COUNT: 12 BOTTLES
SHELF LIFE: 12 MONTHS
CASE DIMENSIONS: 12x7.5x9

INGREDIENTS:
AGAVE NECTAR, FRESH LIME, WATER, ORANGE OIL

PAIRS WITH:
TEQUILA, MEZCAL, SPARKLING

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

# Hey Girl

BOTTLE SIZE: 160Z
RETAIL: $20
YIELDS: 10 COCKTAILS
CASE COUNT: 12 BOTTLES
SHELF LIFE: 12 MONTHS
CASE DIMENSIONS: 12x7.5x9

INGREDIENTS:
CUCUMBER, MINT, LIME, WATER

PAIRS WITH:
VODKA, GIN, TEQUILA, RUM,
CHAMPAGNE, SPARKLING

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

THE COMPANY WE KEEP

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

## Blood Mary

BOTTLE SIZE: 160Z
RETAIL: $20
YIELDS: 6-8 COCKTAILS
CASE COUNT: 12 BOTTLES
SHELF LIFE: 12 MONTHS
CASE DIMENSIONS: 12x7.5x9

INGREDIENTS:
TOMATO JUICE, CELERY SALT, HORSEWADISH
ROOT, APPLE CIDER VINEGAR, LIGHT BROWN SUGAR,
FRESH LEMON JUICE, GARLIC POWDER, PAPRIKA,
CHILI POWDER, RED PEPPER FLAKES, GINGER ROOT

PAIRS WITH:
VODKA, TEQUILA OR MEZCAL

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

## Ginger Mule

BOTTLE SIZE: 160Z
RETAIL: $20
YIELDS: 10 COCKTAILS
CASE COUNT: 12 BOTTLES
SHELF LIFE: 12 MONTHS
CASE DIMENSIONS: 12x7.5x9

INGREDIENTS:
GINGER ROOT, BITTERS, FRESH LIME, WATER

PAIRS WITH:
VODKA, GIN, WHISKEY, TEQUILA,
MEZCAL, RUM, SPARKLING

## Honey Sour

BOTTLE SIZE: 160Z
RETAIL: $20
YIELDS: 10 COCKTAILS
CASE COUNT: 12 BOTTLES
SHELF LIFE: 12 MONTHS
CASE DIMENSIONS: 12x7.5x9

INGREDIENTS:
RAW HONEY, BEE POLLEN, FRESH LEMON, WATER

PAIRS WITH:
VODKA, GIN, TEQUILA, RUM,
CHAMPAGNE, SPARKLING

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

Try all our flavors with the 4oz gift boxes.

AGAVE MARGARITA
HONEY SOUR
GINGER MULE
ELLIS OLD FASHIONED
HEY GIRL
BOUQUET

$32 WHS/FSALF / $49 MBSP
$25 SHIPPING
SOLD IN UNITS OF 12

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

THE COMPANY WE KEEP

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

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

WITH FRESH INGREDIENTS WITH SPIRIT OR SPARKLING WITH GOOD COMPANY

# WITH CO COCKTAILS

INFO (AT)WITHCOCOCKTAILS.COM
(AT)WITHCOCOCKTAILS

NASHVILLE
TENNESSEE

If you have any questions regarding our products, please get in touch with us using one of the methods above.

THE COMPANY WE KEEP

6 / 21

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

WHY WITHCO?

# Ease and Speed

Every Withco flavor is built to be a simple 2 step cocktail where no extra ingredients are needed. Each drink can be made in 30 seconds, decreasing ticket times, increasing sales, and enhancing the overall guest experience.

# Consistency

By outsourcing cocktail mixer prep to Withco, bars are able to provide impeccable consistency regardless of which bartender is working. Staffing, training, and ingredient quality are major pain points that often resulting in subpar beverage quality, and Withco's mixers provide a solid foundation on which to build a consistent beverage program.

# Quality Ingredients

Our mixes use fresh ingredients, real juices, and none of the BS or artificial sweeteners, "natural flavors" found in other mixes.

# Costs

WithCo's average cost per pour is between $0.40-$0.80. Forecasting and hitting margin goals is important to every bar, and we're here to help. Reduce waste, prep time, and loss all at once.

# With Fresh Ingredients
With Spirit or Sparkling
With Good Company

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

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

PREMIUM COCKTAIL MIXERS

MADE WITH FRESH JUICES

AND REAL BOTANICALS

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

WITHCOCOCKTAILS.COM

WITHCO

MENU

INTEGRATE WITHCO INTO YOUR MENU

With 25+ variations of cocktails and non-alcohol options, WithCo's *versatility* can help raise the bar for *fresh and easy* to execute cocktails on any menu.

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

WITHCOCOCKTAILS.COM

LAVENDER ROSE

*Lavender Flowers, Lemon, Rose Petals* +GIN

GINGER MULE

*Ginger Root, Aromatic Bitters, Lime, Soda Water* +VODKA

GINGER MARGARITA

*Ginger Root, Aromatic Bitters, Lime* +TEQUILA/MEZCAL

OLD FASHIONED

*Madagascar Vanilla, Aromatic Bitters, Orange, Cinnamon* +WHISKEY

MARGARITA

*Agave, Orange, Lime* +TEQUILA

CUCUMBER MARGARITA

*Cucumber, Mint, Lime* +TEQUILA

CUCUMBER GIMLET

*Cucumber, Mint, Lime* +GIN/VODKA

LAVENDER 75

*Lavender Flowers, Lemon, Rose Petals, Topped with Sparkling Wine* +GIN

BEES KNEES

*Lemon, Bee Pollen, Raw Honey* +GIN

ESPRESSO MARTINI

*Espresso, Cream, Madagascar Vanilla, Orange, Cinnamon* +VOKDA

GINGER MOCKTAIL SPRITZ

*Ginger Root, Lime, Soda Water*

CUCMBER MOCKTAIL SPRITZ

*Cucumber, Mint, Lime, Soda Water*

LAVENDER MOCKTAIL SPRITZ

*Lavender, Lemon, Rose, Soda Water*

WITHCO

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

## Bloody Mary

BOTTLE SIZE | 25.5 OZ
YIELDS | 10 COCKTAILS
CASE COUNT | 12 BOTTLES
SHELF LIFE | 12 MONTHS

INGREDIENTS
Tomato Juice Celery Salt, Horse-
radish Root, Apple Cider Vinegar,
Light Brown Sugar, Fresh Lemon
Juice, Garlic Powder, Paprika,
Chili Powder, Red Pepper Flakes,
Ginger Root

PAIRS WITH
Vodka, Tequila, Mezcal

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

## Ellis Old Fashioned

BOTTLE SIZE | 25.5 OZ
YIELDS | 50 COCKTAILS
CASE COUNT | 12 BOTTLES
SHELF LIFE | 12 MONTHS

INGREDIENTS
Madagascar Vanilla,
Bitters, Orange Oil, Cinnamon,
Pure Cane Sugar, Water

PAIRS WITH
Whiskey, Bourbon, Rye,
Tequila Anejo

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

## Hey Girl

BOTTLE SIZE | 25.5 OZ
YIELDS | 16 COCKTAILS
CASE COUNT | 12 BOTTLES
SHELF LIFE | 12 MONTHS

INGREDIENTS
Cucumber, Mint, Fresh Lime,
Water, Pure Cane Sugar

PAIRS WITH
Vodka, Gin, Tequila, Rum,
Soda Water

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

## Bouquet

BOTTLE SIZE | 25.5 OZ
YIELDS | 16 COCKTAILS
CASE COUNT | 12 BOTTLES
SHELF LIFE | 12 MONTHS

INGREDIENTS
Lavender, Fresh Lemon, Rose
Petals, Pure Cane Sugar, Water

PAIRS WITH
Vodka, Gin, Tequila, Rum,
Champagne, Soda Water

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

## Ginger Mule

BOTTLE SIZE | 25.5 OZ
YIELDS | 16 COCKTAILS
CASE COUNT | 12 BOTTLES
SHELF LIFE | 12 MONTHS

INGREDIENTS
Ginger Root, Aromatic Bitters,
Fresh Lime, Water, Pure Cane Sugar

PAIRS WITH
Vodka, Gin, Whiskey, Tequila,
Mezcal, Rum, Soda Water

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

## Agave Margarita

BOTTLE SIZE | 25.5 OZ
YIELDS | 16 COCKTAILS
CASE COUNT | 12 BOTTLES
SHELF LIFE | 12 MONTHS

INGREDIENTS
Agave Nectar, Fresh Lime,
Water, Orange Oil

PAIRS
Tequila or Mezcal

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

## Honey Sour

BOTTLE SIZE | 25.5 OZ
YIELDS | 16 COCKTAILS
CASE COUNT | 12 BOTTLES
SHELF LIFE | 12 MONTHS

INGREDIENTS
Bee Pollen, Raw Honey, Fresh Le-
mon, Water, Aromatic Bitters

PAIRS WITH
Whiskey, Tequila, Vodka

@WITHCOCOCKTAILS
Info@WITHCOCOCKTAILS.COM

WITHCOCOCKTAILS.COM

WITHCO

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

# AMENDED AND RESTATED OPERATING AGREEMENT OF
KINDRED SPIRITS NASHVILLE, LLC

This Amended and Restated Operating Agreement (this "Agreement") is made as of February 2, 2020, by Kindred Spirits Nashville, LLC ("Company") and Joshua Ellis, and each person that hereafter becomes a Member by becoming a party to this Agreement upon unanimous written approval thereof by all then-current Members (each a "Member," and collectively, the "Members"), with reference to the following facts.

A. The Articles of Organization (the "Articles of Organization") for Company, a limited liability company under the laws of the State of Tennessee, were filed on September 2, 2015, with the Tennessee Secretary of State.
B. WHEREAS, the Company was initially formed with two (2) Members at the time of initial filing of the Articles of Organization, but whereas Joshua Ellis is currently at the time of this Agreement the sole Member of the Company.
C. WHEREAS, the Company and Joshua Ellis, the sole Member of the Company, anticipate bringing in other Members into the Company.
B. The Company and the Members desire to adopt and approve a limited liability operating agreement for the Company under the Tennessee Revised Limited Liability Company Act (Tenn. Code Ann. § 48-249-101 et seq.) (the "Act").

NOW, THEREFORE, the Company and the Members by this Agreement set forth the limited liability company agreement for the Company upon the terms and subject to the condition of this Agreement.

# ARTICLE I LIMITED LIABILITY UNITS NOT REGISTERED

THE PARTIES ACKNOWLEDGE AND AGREE THAT THE UNITS OF LIMITED LIABILITY COMPANY INTEREST ISSUED PURSUANT TO THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS UNDER SUCH ACTS. EXCEPT AS SPECIFICALLY OTHERWISE PROVIDED IN THIS AGREEMENT, THESE UNITS MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT REGISTRATION UNDER SUCH ACTS OR AN OPINION OF COUNSEL THAT SUCH TRANSFER MAY BE LEGALLY EFFECTED WITHOUT SUCH REGISTRATION. ADDITIONAL RESTRICTIONS ON TRANSFER AND SALE ARE SET FORTH IN THIS AGREEMENT. PURCHASERS OF UNITS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

# ARTICLE I.A ORGANIZATIONAL MATTERS

# 1.1 Name.

The name of the Company shall be "Kindred Spirits Nashville, LLC." Company's current "assumed name" is "WITHCO." The Company may conduct business under those names or any other name approved by the Members.

### 1.2 Term.

The term of the Company commenced as of the date of the filling of the Articles of Organization and, unless sooner terminated under Section 9.1, shall be perpetual.

### 1.3 Office and Agent.

The Company shall continuously maintain a registered office and a registered agent in the State of Tennessee as required by the Act. The registered agent must maintain a business office that is identical with the registered office. The current registered agent is Joshua Ellis and the current registered office is located at 4331 Setters Road, Nashville, TN 37218-1838

### 1.4 Business of the Company.

The Company may transact or engage in any business that may be conducted in limited liability company form and engage in such other activities relating to or incidental as are reasonable in the opinion of the Members to further such business.

### 1.5 "Majority Member Vote" Defined.

As used in this Agreement, the term "Majority Member Vote" shall mean the affirmative vote (or affirmative written consent) of those Member(s) holding at least fifty one percent (51%) of the total voting Membership Interests of the Company (i.e., 51% of the total Membership Interests taking into consideration the total then-issued Class A Membership Interests and total then-issued Class B Membership Interests combined [i.e., a Class A Member receiving three votes to every one unit of Class A Membership unit, and a Class B Member receiving one vote to every one unit of Class B Membership unit, and a Member holding both Class A and Class B Membership units receiving three votes to every one unit of Class A Membership unit, as well as, one vote to every one unit of Class B Membership unit]).

### 1.6 "Majority Director Vote" Defined.

As used in this Agreement, the term "Majority Director Vote" shall mean the affirmative vote (or affirmative written consent) of the director (if there is only one [1] director) or the board of directors (if there is more than one director) holding at least fifty one percent (51%) of the total number of board member votes as measured by the underlying voting Membership Interests of the Member(s) who appointed the director or board of directors in question (i.e., 51% of the total board member votes allotted taking into consideration that a board member appointed by a Class A Member will receive three (3) director votes for everyone 1 unit of Class A Membership units held by such Class A Member, and a board member appointed by a Class B Member will receive one (1) director vote for everyone 1 unit of Class B Membership units held by such Class B Member, and a director appointed by a Member holding both Class A Membership and Class B Membership units will receive three votes to every one unit of Class A Membership unit held, as well as, one (1) director vote for everyone 1 unit of Class B Membership units held).

## ARTICLE II CAPITAL CONTRIBUTIONS

### 2.1 Capital Contributions.

The initial Members shall contribute to the capital of the Company as shown on Exhibit A attached hereto in an exchange for an interest in the Company (a "Membership Interest"). A Membership Interest in the Company shall represent a Member's overall interest as a Member of the Company, including, to the extent applicable, the Member's interest in Net Profits, Net Loss, rights to vote or participate in the management of the Company and rights to information concerning the business and affairs of the Company and any obligations of a Member, in each case, as provided in this Agreement. Additional contributions to the capital of the Company shall be made only with the unanimous consent of the Members. Except as provided in this Agreement, no Member may withdraw his or her capital contribution.

## 2.2 Percentage Interests.

The percentage of Class A Membership Interests, if any, and Class B Membership Interests, if any, and Class C Membership Interests, if any, held by each Member in the Company (a "Percentage Interest") shall be as set forth opposite the Member's name on Exhibit A attached hereto. If additional Members are admitted to the Company or any other transaction or change in circumstance causes a change in the Members' Percentage Interests, Exhibit A shall be appropriately amended to reflect the then applicable Percentage Interests of the Members.

## 2.3 Capital Accounts.

The Company shall establish an individual capital account ("Capital Account") for each Member. The Company shall determine and maintain each Capital Account in accordance with the federal income tax accounting principles prescribed in Treasury Regulation §1.704-1(b)(2). Upon a valid transfer of a Member's interest in the Company, such Member's Capital Account shall carry over to the new owner.

## 2.4 No Interest.

The Company shall not pay any interest on capital contributions.

## ARTICLE III MEMBERS

### 3.1 Membership Interest Classes.

Company shall have three (3) classes of Membership Interests as follows:

(A) Class A Membership: Class A Membership shall contain the following rights: (i) the right to appoint one (1) director to the board of directors for purposes of management of the Company, (ii) voting rights with respect to matters on which any Member is entitled to a vote, and (iii) the right to receive a distribution of Net Profits and Net Losses of the Company. The Company is hereby authorized to issue two hundred fifty thousand (250,000) number of units of Class A Membership. Members holding Class A Membership interests are sometimes referred to as "Class A Members". Each Class A Member shall be entitled to cast three (3) votes per Class A Membership unit held by such Class A Member (for example and without limitation of the foregoing, if a Class A Member holds one hundred [100] Class A Membership units, then such Class A Member is entitled to cast three hundred [300] votes).

(B) Class B Membership: Class B Membership shall contain the following rights: (i) the right to appoint one (1) director to the board of directors for purposes of management of the

Company, (ii) voting rights with respect to matters on which any Member is entitled to a vote, and (iii) the right to receive a distribution of Net Profits and Net Losses of the Company. The Company is hereby authorized to issue five hundred fifty thousand (550,000) number of units of Class B Membership. Members holding Class B Membership interests are sometimes referred to as "Class B Members". Each Class B Member shall be entitled to cast one (1) vote per Class B Membership unit held by such Class B Member (for example and without limitation of the foregoing, if a Class B Member holds one hundred [100] Class B Membership units, then such Class B Member is entitled to cast one hundred [100] votes).

(C) Class C Membership: Class C Membership shall contain solely rights to distribution of Net Profits and Net Losses of the Company (but for the avoidance of doubt, shall have no management rights and no voting rights). The Company is hereby authorized to issue two hundred thousand (200,000) number of units of Class C Membership. Members holding Class C Membership interests are sometimes referred to as "Class C Members". Class C Members are not entitled to vote on any matter pertaining to the Company, the sale of the Company (whether in part or in whole), or the Company's business or affairs, or the winding up of Company's business or affairs, or any other matter hereunder. Additionally, and without limiting the foregoing, no agreement, sale, acquisition, merger or other document shall be require any signature or other approval of any Class C Member and the same shall be fully binding on Class C Members as if they had voted with unanimous approval and/or signed a so-called "written consent in lieu of a meeting" unanimously approving the same.

(D) Members Owning both Class A Membership Units and Class B Membership Units: If a Member owns both Class A Membership Units and Class B Membership units, then such Member shall be entitled to cast three (3) votes per Class A Membership unit held by such Member and one (1) vote per Class B Membership unit held by such Member (for example and without limitation of the foregoing, if a Member holds both one hundred [100] Class A Membership units and one hundred [100] Class B Membership units, then such Member is entitled to cast four hundred [400] votes).

(E) Participation as a Member: Each Member will have the right to participate in the Company prorata pursuant to their Membership class (i.e., if a Member holds Class A Membership, then such Member will be entitled to the rights allowed for under Class A Membership on a prorata basis according to such Member's Percentage Interest therein, and if a Member holds Class B Membership, then such Member will be entitled to the rights allowed for under Class B Membership on a prorata basis according to such Member's Percentage Interest therein, and if a Member holds Class C Membership, then such Member will be entitled to the rights allowed for under Class C Membership on a prorata basis according to such Member's Percentage Interest therein, and if a Member holds both Class A Membership and/or Class B Membership and/or Class C Membership, then such Member will be entitled to the rights allowed for under Class A Membership, Class B Membership and/or Class C Membership, on a prorata basis according to such Member's respective Percentage Interest in Class A Membership, Class B Membership and/or Class C Membership, as applicable). Notwithstanding anything to the contrary contained in this Agreement, owning any particular class of Membership (i.e., Class A Membership, Class B Membership and/or Class C Membership) does NOT in and of itself entitle such Member(s) to any Percentage Interest in any other particular class of Membership (for example only and without limitation of the foregoing, owning Class C Membership does not entitle such Class C Member to own any Class B Membership or Class A Membership, and vice versa).

# 3.2 Admission of Additional Members.

(A) Additional Class A Members, Class B Members or Class C Members, may be admitted Majority Member Vote. Exhibit A shall be amended upon the admission of an additional Member to set forth such Member's name and capital contribution.

(B) The Company is hereby authorized to hold in reserve any amounts of units of Class A Membership, Class B Membership and/or Class C Membership as determined necessary or desirable by the director or board of directors, as applicable. Notwithstanding anything to the contrary in this Agreement (including, without limitation, Article VI below), the Company may issue all or a portion of such reserved units to new Members as determined necessary or desirable by Majority Director Vote, and Majority Member Vote, without any requirement to first offer such Membership units to any of the current Members, provided that notwithstanding the foregoing, the Member, Joshua Ellis, shall have the right to purchase a share of such Membership units being offered to sale to new Members in proportion to Joshua Ellis' Percentage Interest.

# 3.3 Withdrawals or Resignations.

No Member may withdraw, retire or resign from the Company except as provided for in this Agreement.

# 3.4 Payments to Members.

The Company shall reimburse the Members and their Affiliates to the extent approved by the Members for (i) organizational expenses (including, without limitation, legal and accounting fees and costs) incurred on behalf of the Company, including but not limited to the preparation of the Articles of Organization and this Agreement, and (ii) the actual cost of goods and materials used by the Company.

# 3.5 Outstanding Warrants in Membership Units.

Company will keep accurate records on file pertaining to the issuance to any person, firm or entity of any Warrants entitling such person, firm or entity to any Membership units.

# ARTICLE IV MANAGEMENT AND CONTROL OF THE COMPANY

# 4.1 Director Managed.

(A) The Company shall be managed by the director if there is only one (1) director, and by the Company's board of directors, if there is more than one (1) director. The business of the Company shall be decided by a Majority Director Vote. Initially, Joshua Ellis will be the sole director.

(B) Each Class A Member is entitled to designate one (1) director, which director can either be the Class A Member, or upon a Majority Member Vote, such director may be a person other than the Member. Each director appointed by a Class A Member is entitled to cast three (3) votes per Class A Membership unit held by such Class A Member (for example and without limitation of the foregoing, if a Class A Member holds one hundred [100] Class A Membership units, then the director appointed by such Class A Member is entitled to cast three hundred [300] votes).

(C) Each Class B Member is entitled to designate one (1) director, which director can either be the Class B Member, or upon a Majority Member Vote, such director may be a person other than the Member. Each director appointed by a Class B Member is entitled to cast one (1) vote per Class B Membership unit held by such Class B Member (for example and without limitation of the foregoing, if a Class B Member holds one hundred [100] Class B Membership units, then the director appointed by such Class B Member is entitled to cast one hundred [100] votes).

(D) If a director is appointed by a Member holding both Class A Membership units and Class B Membership units, then such director shall be entitled to cast three (3) votes per Class A Membership unit held by such Member, as well as, one (1) vote per Class B Membership unit held by such Member (for example and without limitation of the foregoing, if a Member holds both one hundred [100] Class A Membership units and one hundred [100] Class B Membership units, then the director appointed by such Member is entitled to cast four hundred [400] votes).

(E) The director, or board of directors, as applicable, shall be solely responsible for the management of the Company's business. They shall possess all rights and powers generally conferred by law and all rights and powers that are necessary, advisable or consistent in connection therewith and with the provisions of this Agreement. A Majority Director Vote shall bind all the Members (with the exception of matters stated in paragraph 7.7 below, which such matters in paragraph 7.7 shall require a Majority Member Vote). The director, or board of directors, as applicable, shall also be vested with all specific rights and powers required for or appropriate to the management, conduct or operation of the business of the Company. Except for distributions made to Members as set forth in this Agreement and any fees for specific management services, the director, or board of directors, as applicable, shall receive no compensation from the Company for their actions taken as directors pursuant to this Agreement. Joshua Ellis shall be the President and CEO of the Company and shall be authorized to sign all agreements, contracts, documents, or other understandings to bind the Company subject to the approval of all such agreements, contracts, documents, or other understandings by the sole director, Joshua Ellis, or if more than one director, then by an affirmative vote by the board of directors. Any matter in which the sole director, or if more than one director, is to vote may also be done by a so-called "written consent in lieu of a meeting".

### 4.2 Term.

The directors shall serve as such until resignation, death or a judicial adjudication of incompetency. Each director appointed by a Member (whether Class A Member or Class B Member), if such director is the Member (as opposed to the appointed director being person other than the Class A Member or Class B Member), may only be removed by the Member that appointed such director. Directors that are not also a Class A Member or Class B Member may be removed by the Member appointed such director, and may also be removed by a Majority Member Vote. In the event of a vacancy on the board of directors, the Member whose director seat is vacant shall automatically fill such director seat until such Member has either elected himself or herself to the board of directors, or has elected another person to serve on the board of directors and such other person who is not also a Class A Member or Class B Member has been approved by a Majority Member Vote.

# 4.3 Rights and Powers of Directors.

Rights and powers of the director, or board of directors, as applicable, by way of illustration but not by way of limitation, shall include the right and power to:

(A) Authorize or approve all actions with respect to distribution of funds and assets in kind of the Company; acquire, secure or dispose of investments, including, without limitation, selling and otherwise disposing of assets of the Company, borrowing funds, executing contracts, bonds, guarantees, notes, security agreements, mortgages and all other instruments to effect the purposes of this Agreement; and execute any and all other instruments and perform any acts determined to be necessary or advisable to carry out the intentions and purposes of the Company.

(B) Perform any and all acts necessary to pay any and all organizational expenses incurred in the creation of the Company and in raising additional capital, including, without limitation, reasonable brokers' and underwriters' commissions, legal and accounting fees, license and franchise fees (it being understood that all expenses incurred in the creation of the Company and the commencement of the Company business shall be borne by the Company); and compromise, arbitrate or otherwise adjust claims in favor of or against the Company and to commence or defend against litigation with respect to the Company or any assets of the Company as deemed advisable, all or any of the above matters being at the expense of the Company; and to execute, acknowledge and deliver any and all instruments to effect any and all of the foregoing.

(C) Purchase goods or services from any corporation or other form of business enterprise, including management services at the usual and customary rates prevailing in the management industry from time to time for similar services.

(D) Establish Company offices at such other places as may be appropriate, hire Company employees and consultants, engage counsel and otherwise arrange for the facilities and personnel necessary to carry out the purposes and business of the Company, the cost and expense thereof and incidental thereto to be borne by the Company.

(E) Designate a manager of the Company who will assist the director, or board of directors, as applicable, in the running of the Company's affairs and who will serve at the direction of the director, or board of directors, as applicable.

# 4.4 Devotion of Time.

The directors shall manage or cause to be managed the affairs of the Company in a prudent and businesslike manner and shall devote such time to the Company affairs as they shall, in their discretion exercised in good faith, determine is reasonably necessary for the conduct of such affairs; provided, however, that it is expressly understood and agreed that the directors shall not be required to devote their entire time or attention to the business of the Company. In carrying out their obligations, the directors shall:

(A) Obtain and maintain such public liability, hazard and other insurance as may be deemed necessary or appropriate by the directors, but in any event in an amount sufficient to replace the building(s), together with improvements, and personal property comprising part of the Company's assets.

(B) Deposit all funds of the Company in one or more separate bank accounts held in the Company's name, using such banks or trust companies as the directors may designate (withdrawals from such bank accounts to be made upon such signature or signatures as the directors may designate).

(C) Maintain complete and accurate records of all properties owned or leased by the Company and complete and accurate books of account (containing such information as shall be necessary to record allocations and distributions), and make such records and books of account available for inspection and audit by any Member or his or her duly authorized representative (at the expense of such Member) during the regular business hours and at the principal office of the Company.

(D) Prepare and distribute to all Members tax reporting information.

(E) Notify all Members of receipt of any notice of default from any lender, within 10 days after receipt of such notice.

(F) Cause to be filed such certificates and do such other acts as may be required by law to qualify and maintain the Company as a limited liability company under all applicable state laws.

(G) Maintain all books and adhere to the detailed record keeping requirements set forth in Section 8.1 of this Agreement.

# 4.5 Indemnification of Directors.

If directors have complied with the duties and standards set forth in this Agreement when carrying out their duties hereunder, the directors shall not be liable to the Company nor to any Member for their good faith actions or failure to act, nor for any errors of judgment, nor for any act or omission believed in good faith to be within the scope of authority conferred by this Agreement.

If a director or directors have complied with the duties and standards set forth in this Agreement when carrying out their duties hereunder, the Company does hereby indemnify and hold harmless the directors and their agents, officers and employees as to third parties against and from any personal loss, liability or damages suffered as a result of any act or omission which the directors believed, in good faith, to be within the scope of authority conferred by this Agreement, except for willful or fraudulent misconduct, gross negligence or willful breach of fiduciary duties, but not in excess of the capital contributions of all Members. Notwithstanding the foregoing, the Company's indemnification of the directors and their agents, officers and employees as to a third party is only with respect to such loss, liability or damage which is not otherwise compensated for by insurance carried for the benefit of the Company. Insurance coverage for public liability, and all other insurance deemed necessary or appropriate by the directors to the business of the Company, shall be carried in such amounts and of such types as shall be determined by the directors, subject to Paragraph 4.4(A).

# 4.6 Director Authority.

No financial institution or any other person, firm or corporation dealing with the director or directors shall be required to ascertain whether the directors are acting in accordance with this Agreement, but such financial institution or such other person, firm or corporation shall be protected in relying upon the deed, transfer or assurance of, and the

execution of such instrument or instruments by, the director, or board of directors if applicable.

### 4.7 Matters Requiring a Majority Member Vote.

Notwithstanding anything to the contrary contained in this Agreement, the director (if there is only one [1] director) or the board of directors (if there is more than one director) shall not undertake any of the following or cause the Company to undertake any of the following, without first obtaining a Majority Member Vote:

(i) enter into or modify any arrangement with any Member, an owner of a Member, or any relative of such a Person or any entity in which a Member, owner of a Member, or relative owns a beneficial interest;

(ii) merge or consolidate the Company or otherwise combine the Company with any Person (or agree to do any of the foregoing);

(iii) liquidate, dissolve, file a voluntary petition for bankruptcy or reorganization or consent to an involuntary petition for bankruptcy or reorganization, or effect a recapitalization or reorganization in any form of transaction (including, without limitation, any reorganization into a stock corporation, a partnership or any other entity);

(iv) amend or modify the terms applicable to any Interest outstanding on the date hereof or hereafter issued; provided that any such modification or amendment must be agreed in writing by the Person owning such Interest affected thereby;

(v) establish or acquire any subsidiaries;

(vi) directly or indirectly redeem, purchase or otherwise acquire any of the Company's Interests;

(vii) enter into any retail contract which involves a long-term (12 months or greater) relationship and volume guarantee or exclusivity right;

(viii) loan, or agree to loan (and the terms hereof), any capital of the Company to any third-party or to any Member;

(ix) dispose of all, or substantially all, of the property, assets, or the goodwill of the Company or any brand of the Company in or as part of a single or series of related transactions or plans, regardless of the form of such transaction;

(x) change or expand the business of the Company or engage in any brand-line extensions;

(xi) issue any equity or any options, warrants or any other rights to acquire any equity of the Company or create or designate any new Company equity or units (e.g., units other than Common Units) and/or issue same;

(xii) incur any Indebtedness or grant a security interest or encumber any trademark or material asset of the Company;
(xiii) commit the Company for capital expenditures exceeding Fifty Thousand and No/100 Dollars (\(50,000.00) per nonrecurring individual expenditure;
(xiv) execute, or otherwise bind the Company to, any contract or lease exceeding One Hundred Thousand and No/100 Dollars (\(100,000.00) or a term of twelve (12) months or longer;
(xv) enter into any manufacturing or production agreement or arrangement;
(xvi) grant an exclusive license with respect to any trademark or material asset of the Company;
(xvii) expand the business of the Company into any territory outside of the United States and its territories and possessions, and the terms of such expansion; or

# ARTICLE V ALLOCATIONS OF NET PROFITS AND NET LOSSES AND DISTRIBUTIONS

# 5.1 Definitions.

When used in this Agreement, the following terms shall have the meanings set forth below:

"Code" shall mean the Internal Revenue Code of 1986, as amended from time to time.

"Company Minimum Gain" shall have the meaning ascribed to the term "Partnership Minimum Gain" in the Treasury Regulations Section 1.704-2(d).

"Member Nonrecourse Debt" shall have the meaning ascribed to the term "Partner Nonrecourse Debt" in Treasury Regulations Section 1.704-2(b)(4).

"Member Nonrecourse Deductions" shall mean items of Company loss, deduction or Code Section 705(a)(2)(B) expenditures which are attributable to Member Nonrecourse Debt.

"Net Profits" and "Net Losses" shall mean the taxable income or loss of the Partnership, as determined for federal income tax purposes pursuant to Treasury Regulations Section 1.704-1(b)(2), for each fiscal year of the Partnership, taking into account any adjustments necessary in order to comply with Treasury Regulations Section 1.704-1(b)(2)(iv).

"Nonrecourse Liability" shall have the meaning set forth in Treasury Regulations Section 1.752-1(a)(2).

"Treasury Regulations" shall mean the final or temporary regulations that have been issued by the U.S. Department of the Treasury pursuant to its authority under the Code, and any successor regulations.

# 5.2 Allocations of Net Profit and Net Loss.

A. Net Loss.

Net Loss shall be allocated to the Class A Members, Class B Members and Class C Members as follows:

i. First, in an amount equal to the Net Profit previously allocated to the Class A Members, Class B Members and Class C Members, pursuant to Section 5.2B.ii.; and

ii. Thereafter, in an amount equal to each such Class A Member's, Class B Member's or Class C Member's respective Capital Contributions, pro rata, in proportion to such Members' respective Capital Contributions.

iii. Notwithstanding the previous sentence, loss allocations to a Class A Member, Class B Member and Class C Member shall be made only to the extent that such loss allocations will not create a deficit Capital Account balance for that Class A Member, Class B Member or Class C Member in excess of an amount, if any, equal to such Class A Member's, Class B Member's or Class C Member's share of the Company Minimum Gain. Any loss not allocated to a Class A Member, Class B Member or Class C Member because of the foregoing provision shall be allocated to the other Class A Members, Class B Members and Class C Members (to the extent the other Class A Members, Class B Members and Class C Members are not limited in respect of the allocation of losses under this Section 5.2A.iii.).

iv. To the extent any Net Loss cannot be allocated without violating the provisions of Section 5.2A.iii., such Net Loss shall be allocated to the Class A Members, Class B Members and Class C Members in proportion to their Percentage Interests of Class A Membership, Class B Membership and Class C Membership.

# B. Net Profit.

Net Profit shall be allocated to Class A Members, Class B Members and Class C Members as follows:

i. First, to the Class A Members, Class B Members and Class C Members in the amount of any Net Loss previously allocated to the Class A Members, Class B Members and Class C Members in question pursuant to Sections 5.2A.iii.-iv., in the reverse order in which such Net Loss was allocated; and

ii. Thereafter, to the Class A Members, Class B Members and Class C Members in proportion to their Percentage Interests.

### 5.3 Special Allocations.

Notwithstanding Section 5.2,

# A. Minimum Gain Chargeback.

If there is a net decrease in Company Minimum Gain during any fiscal year, each Class A Member, Class B Member and Class C Member shall be specially allocated items of Company income and gain for such fiscal year (and, if necessary, in subsequent fiscal years) in an amount equal to the portion of such Member's share of the net decrease in Company Minimum Gain that is allocable to the disposition of Company property subject to a Nonrecourse Liability, which

share of such net decrease shall be determined in accordance with Treasury Regulations Section 1.704-2(g)(2). Allocations pursuant to this Section 5.3A. shall be made in proportion to the amounts required to be allocated to each Class A Member, Class B Member and Class C Member under this Section 5.3A. The items to be so allocated shall be determined in accordance with Treasury Regulations Section 1.704-2(f). This Section 5.3A. is intended to comply with the minimum gain chargeback requirement contained in Treasury Regulations Section 1.704-2(f) and shall be interpreted consistently therewith.

B. Chargeback of Minimum Gain Attributable to Member Nonrecourse Debt.

If there is a net decrease in Company Minimum Gain attributable to a Member Nonrecourse Debt, during any fiscal year, each member who has a share of the Company Minimum Gain attributable to such Member Nonrecourse Debt (which share shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(5)) shall be specially allocated items of Company income and gain for such fiscal year (and, if necessary, in subsequent fiscal years) in an amount equal to that portion of such Class A Member's, Class B Member's or Class C Member's share of the net decrease in Company Minimum Gain attributable to such Member Nonrecourse Debt that is allocable to the disposition of Company property subject to such Member Nonrecourse Debt (which share of such net decrease shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(5)). Allocations pursuant to this Section 5.3B. shall be made in proportion to the amounts required to be allocated to each Class A Member, Class B Member and Class C Member under this Section 5.3B. The items to be so allocated shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(4). This Section 5.3B. is intended to comply with the minimum gain chargeback requirement contained in Treasury Regulations Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

C. Nonrecourse Deductions.

Any nonrecourse deductions (as defined in Treasury Regulations Section 1.704-2(b)(1)) for any fiscal year or other period shall be allocated to the Class A Members, Class B Members and Class C Members in proportion to their Percentage Interests.

D. Member Nonrecourse Deductions.

Those items of Company loss, deduction or Code Section 705(a)(2)(B) expenditures which are attributable to Member Nonrecourse Debt for any fiscal year or other period shall be specially allocated to the Class A Member, Class B Member and Class C Member who bears the economic risk of loss with respect to the Member Nonrecourse Debt to which such items are attributable in accordance with Treasury Regulations Section 1.704-2(i).

E. Qualified Income Offset.

If a Class A Member, Class B Member or Class C Member unexpectedly receives any adjustments, allocations or distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), or any other event creates a deficit balance in such Member's Capital Account in excess of such Member's share of

Company Minimum Gain, items of Company income and gain shall be specially allocated to such Member in an amount and manner sufficient to eliminate such excess deficit balance as quickly as possible. Any special allocations of items of income and gain pursuant to this Section 5.3E. shall be taken into account in computing subsequent allocations of income and gain pursuant to this Article V so that the net amount of any item so allocated and the income, gain and losses allocated to each Member pursuant to this Section 5.3E. to the extent possible, shall be equal to the net amount that would have been allocated to each such Member pursuant to the provisions of this Article V if such unexpected adjustments, allocations or distributions had not occurred.

### 5.4 Tax Allocations.

All items of income, gain, loss or deduction of the Company shall be allocated among the Members for federal income tax purposes in a manner consistent with the allocation of the corresponding items to the Members under Sections 5.2 and 5.3 hereof, and all credits of the Company shall be allocated among the Members for federal income tax purposes in accordance with their percentage interests, except as otherwise required by law. Notwithstanding the foregoing, to the extent required by Section 704(c) of the Code and the Treasury Regulations thereunder, income, gain, loss, deduction and credit with respect to any property shall, solely for tax purposes (and not for purposes of maintaining the capital accounts hereunder), be allocated among the Members so as to take account of any variation between the adjusted basis of such property for federal income tax purposes and its fair market value. Notwithstanding anything to the contrary contained in this Agreement, if the Company is advised that, as a result of the adoption of new or amended provisions related to or involving IRC Sections 704(b) or 704(c), regulations issued thereunder, or the issuance of interpretations by the Internal Revenue Service or a court, the allocations provided in this Agreement are unlikely to be respected for federal income tax purposes, the Company shall, upon a Majority Member Vote, shall amend the allocation provisions of this Agreement, on advice of accountants or legal counsel, to the minimum extent necessary to cause such allocation provisions to be respected for federal income tax purposes.

### 5.5 Prorations.

If a Member has not been a Member of the Company for a full fiscal year, or if a Member's Percentage Interest changes during a fiscal year, the Net Profits or Net Losses, as applicable, for the year shall be allocated to the Member based on the period of time for which the Member was a Member or held the applicable Membership Interests.

### 5.6 Distribution of Assets by the Company.

The Company shall make periodic distributions of the Company's excess cash funds to the Class A Members, Class B Members and Class C Members from time to time according to their Percentage Interests. Similarly, the Company may make a special distribution of the Company's excess cash funds to any Member or the Members from time to time according a Majority Director Vote. It is contemplated that periodic distributions will be made on an annual basis on or before the thirtieth (30) day following the end of each fiscal year. Subject to applicable law, distributions of cash shall be made only after the Members determine that the Company has adequate cash on hand to satisfy

its total liabilities plus the amount that would be needed, if the company were to be dissolved, wound up, and terminated at the time of the distribution, to satisfy the preferential rights upon dissolution, winding up, and termination of Members whose preferential rights are superior to those receiving the distribution. No distribution shall be declared or made if, after giving it effect, the Company would not be able to pay its debts as they became due in the usual course of business, or the Company's total assets would be less than the sum of its total liabilities.

### 5.7 Tax Withholding.

The Company is authorized (i) to withhold from distributions or other payments to a Member any amounts required to be so withheld pursuant to the Code or any provisions of any other federal, state or local tax law and any amounts for which a Member is liable pursuant to Section 8.3E. and (ii) to pay over any such amounts to the applicable federal, state or local taxing authority to the extent required by applicable law. All amounts withheld pursuant to the Code or any provision of any state or local tax law with respect to any payment or distribution to a Member shall be treated as amounts distributed to such Member pursuant to this Section 5.7 (or Section 9.3, as applicable) for all purposes of this Agreement.

### ARTICLE VI TRANSFER AND ASSIGNMENT OF INTERESTS

### 6.1 Transfer and Assignment of Interests.

No Member shall be entitled to transfer, assign, convey, sell, encumber or in any way alienate (collectively, "transfer") all or any part of its Class A Membership interest, Class B Membership interest, or Class C Membership interest, except with the prior approval of the Company (through a Majority Director Vote) and a Majority Member Vote, which approval may be given or withheld in the sole discretion of the Company and Class A and Class B Members.

### 6.2 Substitution of Members.

A transferee of a Membership Interest shall have the right to become a substitute Member only if (i) a Majority Member Vote is obtained in accordance with Section 6.1, (ii) such person or entity executes an instrument satisfactory to the Class A Members accepting and adopting the terms and provisions of this Agreement, and (iii) such person or entity pays any reasonable expenses in connection with his or her admission as a New Member. The admission of a substitute Member shall not release the Member who assigned the Membership Interest from any liability that such Member may have to the Company.

### 6.3 Transfers in Violation of this Agreement and Transfers of Partial Membership Interests.

Upon a purported transfer in violation of this Article VI, the transferee shall not have the right to vote or participate in the management of the Company or to exercise any rights of a Member (other than solely the right to receive the share of the Company's Net Profits, Net Losses and distributions of the Company's assets to which the transferor would otherwise be entitled). Furthermore, and notwithstanding the foregoing, if, in the determination of the Members, a transfer in violation of this Article VI would cause the termination of the Company under the Code or the Act, then upon a Majority Member Vote, the transfer shall be null and void.

# 6.4 Drag Along Rights.

If a transaction is approved by Majority Member Vote that would result in the acquisition of the Company by another person, firm or entity by means of any transaction or series of related transactions (including, without limitation, any merger, consolidation, sale, assignment, transfer distribution or issuance of stock with respect to the Company) and pursuant to such transaction the Class A Members of the Company immediately prior to such transaction will not hold, directly or indirectly, at least thirty percent (30%) of the voting power of the surviving or continuing entity (a "Drag-Along Transaction"), then, upon thirty (30) days written notice to the other Members of the Company (the "Drag-Along Notice"), which notice shall include substantially all of the details of the proposed transaction, including the proposed time and place of closing and the consideration to be received by the Members in such transaction, each Member shall raise no objection to such Drag-Along Transaction and be obligated to, and shall sell, transfer and deliver, or cause to be sold, transferred and delivered, to such third party, all of its Interest in the same transaction at the closing thereof (and will deliver such Interest free and clear of all liens, claims, or encumbrances). The proceeds from such Drag-Along Transaction shall be distributed to the Members in proportion to their relative entitlement to distribution pursuant to this Agreement.

# 6.5 Tag Along Rights.

If a transaction is approved by a Majority Member Vote that would result in the acquisition of the Company by another person, firm or entity by means of any transaction or series of related transactions (including, without limitation, any merger, consolidation, sale, assignment, transfer distribution or issuance of stock with respect to the Company) and pursuant to such transaction the Class A Members of the Company immediately prior to such transaction will not hold, directly or indirectly, at least thirty percent (30%) of the voting power of the surviving or continuing entity (a "Tag-Along Transaction"), then, upon thirty (30) days written notice from the other Members of the Company (the "Tag-Along Notice"), the Members being a party to such Tag-Along Transaction shall cause those Member(s) selling or otherwise transferring their Interests (the "Selling Members") in connection with such Tag-Along Transaction to include all the Interests of the other Members electing to participate therein as part of the same transaction at the closing thereof and for the same prorata purchase price (and such other Members will deliver their Interests free and clear of all liens, claims, or encumbrances) (the "Tag-Along Rights"), provided that such Tag-Along Rights are approved by any applicable underwriter(s), if any, of the transaction in question. In the event that such Tag-Along Rights are not approved by any such underwriter(s), then the Selling Member(s) shall nevertheless have the right to consummate such transaction without such Tag-Along Rights. The proceeds from such Tag-Along Transaction shall be distributed to the Members in proportion to their relative entitlement to distribution pursuant to this Agreement.

# ARTICLE VII CONSEQUENCES OF DISSOLUTION EVENTS AND TERMINATION OF MEMBERSHIP INTEREST

# 7.1 Dissolution Event.

Upon the occurrence of the death, withdrawal, resignation, retirement, incapacity, bankruptcy or dissolution of any Member ("Dissolution Event"), the Company shall continue unless all of the remaining Members entitled to a vote ("Remaining Members") unanimously consent within ninety (90) days of the Dissolution Event to the termination and winding up of the business and affairs of the Company. If the Remaining Members so unanimously consent, the Company and/or the Remaining Members shall promptly wind up the business and affairs of the Company and dissolve the Company. In the event that Remaining Members do not unanimously consent, then the Remaining Members shall have the right to purchase, and if such right is exercised, the Member (or his or her legal representative) whose actions or conduct resulted in the Dissolution Event ("Former Member") shall sell, the Former Member's Membership Interest ("Former Member's Interest") as provided in this Article VII. Notwithstanding anything to the contrary in this Agreement, (i) Class C Members who do not also hold either a Class A Membership or Class B Membership, shall not be entitled to participate in said option to purchase a Former Member's Interest, and (ii) Class A Members prorata interest will be weighted three to one over Class B Members with respect to the option to obtain the Former Member's Interest.

# 7.2 Withdrawal.

Notwithstanding Section 7.1, upon the withdrawal by a Member in accordance with Section 3.2 such Member shall be treated as a Former Member, and, unless the Company dissolves as a result of such withdrawal, the Company and/or the Remaining Members shall have the right to purchase, and if such right is exercised, the Former Member shall sell, the Former Member's Interest as provided in this Article VII. Notwithstanding anything to the contrary in this Agreement, (i) Class C Members who do not also hold either a Class A Membership or Class B Membership, shall not be entitled to participate in said option to purchase a Former Member's Interest, and (ii) Class A Members prorata interest will be weighted three to one over Class B Members with respect to the option to obtain the Former Member's Interest.

# 7.3 Purchase Price.

The purchase price for the Former Member's Interest shall be the fair market value of the Former Member's Interest as determined by an independent appraiser jointly selected by the Former Member and by a Majority Member Vote of Remaining Members entitled to a vote. The Company and the Former Member shall each pay one-half of the cost of the appraisal. Notwithstanding the foregoing, if the Dissolution Event results from a breach of this Agreement by the Former Member, the purchase price shall be reduced by an amount equal to the damages suffered by the Company or the Remaining Members because of such breach.

# 7.4 Notice of Intent to Purchase.

Within thirty (30) days after the fair market value of the Former Member's Interest has been determined in accordance with Section 7.3, each Remaining Member shall notify all the Class A Members and Class B Members in writing of his or her desire to purchase a portion of the Former Member's Interest. The failure of any Remaining Member to

submit a notice within the applicable period shall constitute an election on the part of the such Remaining Member not to purchase a portion of the Former Member's Interest in the same proportion that the Membership Interest of the Remaining Member bears to the aggregate of the Membership Interests of all of the Remaining Members electing to purchase the Former Member's Interest. Notwithstanding anything to the contrary in this Agreement, (i) Class C Members who do not also hold either a Class A Membership or Class B Membership, shall not be entitled to participate in said option to purchase a Former Member's Interest, and (ii) Class A Members prorata interest will be weighted three to one over Class B Members with respect to the option to obtain the Former Member's Interest.

### 7.5 Election to Purchase Less Than All of the Former Member's Interest.

If any Remaining Member elects to purchase none or less than all his or her pro rata share of the Former Member's Interest, then the other Remaining Members can elect to purchase more than their pro rata share. If the other Remaining Members fail to purchase the entire interest of the Former Member, the Company may purchase any remaining share of the Former Member's Interest. The purchase of a Former Member's interest pursuant to this Article VII may not result in the conveyance of less than 100% of the Former Member's interest. Notwithstanding anything to the contrary in this Agreement, (i) Class C Members who do not also hold either a Class A Membership or Class B Membership, shall not be entitled to participate in said option to purchase a Former Member's Interest, and (ii) Class A Members prorata interest will be weighted three to one over Class B Members with respect to the option to obtain the Former Member's Interest.

### 7.6 Payment of Purchase Price.

The Company or the Remaining Members shall pay at the closing one-fifth (1/5) of the purchase price and the balance of the purchase price shall be paid in four equal annual principal installments, and be payable each year on the anniversary date of the closing. The unpaid principle balance shall accrue interest at the current applicable federal rate as provided in the Code for the month in which the initial payment is made, but the Company and the Remaining Members shall have the right to prepay in full or in part any time without penalty. The obligation of each purchasing Remaining Member, and the Company, as applicable, to pay its portion of the balance due shall be evidenced by a separate promissory note executed by the respective purchasing Remaining Member or the Company, as applicable. Each such promissory note shall be in an original principal amount equal to the portion owed by the respective purchasing Remaining Member or the Company, as applicable. The promissory note executed by each purchasing Remaining Member shall be secured by a pledge of that portion of the Former Member's Interest purchased by such Remaining Member.

### 7.7 Closing of Purchase of Former Member's Interest.

The closing for sale of a Former Member's Interest pursuant to this Article VII shall be held at 10:00 a.m. at the principal office of Company no later than sixty (60) days after the determination of the purchase price, except that if the closing date falls on a Saturday, Sunday, or Tennessee legal holiday, then the closing shall be held on the next succeeding business day. At the closing, the Former Member shall deliver to the Company or the

Remaining Members an instrument of transfer (containing warranties of title and no encumbrance) conveying the Former Member's Interest. The Former Member, the Company and the Remaining Members shall do all things and execute and deliver all papers as may be reasonably necessary fully to consummate such sale and purchase in accordance with the terms and provisions of this Agreement.

# ARTICLE VIII ACCOUNTING, RECORDS, REPORTING BY MEMBERS

# 8.1 Books and Records.

The books and records of the Company shall be kept with the accounting methods followed for federal income tax purposes. The Company shall maintain at its principal office in Tennessee all the following:

A. A current list of the full name and last known business or residence address of each Member set forth in alphabetical order, together with the capital contributions, capital account and Percentage Interest of each Member;

B. A copy of the Articles of Organization and all amendments thereto together with executed copies of any powers of attorney pursuant to which the Articles of Organization or any amendments thereto have been executed;

C. Copies of the Company's federal, state, and local income tax or information returns and reports, if any, for the six (6) most recent taxable years;

D. A copy of this Agreement and all amendments thereto together with executed copies of any powers of attorney pursuant to which this Agreement or any amendments thereto have been executed;

E. Copies of the financial statements of the Company, if any, for the six (6) most recent fiscal years; and

F. The Company's books and records, including annual reports, as they relate to the internal affairs of the Company for at least the current and past four (4) fiscal years.

# 8.2 Reports.

The Company shall cause to be filed, in accordance with the Act, all reports and documents required to be filed with any governmental agency. The Company shall cause to be prepared at least annually information concerning the Company's operations necessary for the completion of the Members' federal and state income tax returns. The Company shall send or cause to be sent to each Member within ninety (90) days after the end of each taxable year (i) such information as is necessary to complete the Member' federal and state income tax returns and (ii) a copy of the Company's federal, state, and local income tax or information returns for the year.

# 8.3 Tax Matters for the Company.

A. Joshua Ellis shall be the "Tax Representative," who shall be the "partnership representative" of the Company within the meaning of Section 6223(a) of the Code. The "Tax Representative" may engage certified public accountants to advise and counsel the Tax Representative on the Tax Representative shall be entitled to rely upon such advice. If any state or local tax law provides for a partnership representative or person having similar rights, powers, authority or obligations (including as a "tax matters partner"), the Tax Representative shall also serve in such capacity. The Tax Representative may resign

at any time, subject to the provisions of Treasury Regulations Section 301-6223-1. If a Tax Representative ceases to serve as such for any reason, the Company itself will automatically and immediately become the new (acting) Tax Representative until the Members appoint a new Tax Representative by a Majority Member Vote.

B. Except as otherwise provided in this Agreement, the Tax Representative: (i) shall have all of the rights, authority and power, and shall be subject to all of the obligations, of a partnership representative to the extent provided in the Code and the Treasury Regulations (and any rights, authority, power and obligations applicable to a tax representative under applicable state or local laws), and the Members hereby agree to be bound by any actions taken by the Tax Representative in such capacity; provided, that the Tax Representative shall not, without a Majority Member Vote: (A) settle any material tax claim, or (B) make any material tax election; and (ii) shall have sole discretion to make any income tax election it deems advisable on behalf of the Company and shall represent the Company in all tax matters to the extent allowed by law. The Tax Representative shall have the authority and responsibility to arrange for the preparation, and timely filing, of the Company's tax returns.

C. The Tax Representative shall be entitled to reimbursement by the Company for all reasonable costs and expenses incurred by the Tax Representative in connection with the performance of the obligations hereunder. The Company shall indemnify, defend, and hold the Tax Representative harmless for all expenses, including legal and accounting fees, claims, liabilities, losses and damages incurred in connection with its serving in that capacity, provided that Tax Representative shall not be entitled to indemnification for such costs and expenses if such person has not acted in good faith for a purpose which such person reasonably believes to be in, or not opposed to, the best interests of the Company.

D. Each Member agrees to provide promptly and to update as necessary at any times requested by the partnership representative, all information, documents, self-certifications, tax identification numbers, tax forms, and verifications thereof, that the Tax Representative deems necessary in connection with any matter of the Company relating to taxation. Each Member covenants and agrees to take any action reasonably requested by the Company in connection with any tax election by the Company under Section 6221(b) or 6226 of the Code or otherwise, or an audit, claim or a final adjustment of the Company by a taxing authority (including, without limitation, promptly filing amended tax returns and promptly paying any related taxes, including penalties and interest).

E. To the extent the Company is required to pay any taxes (including any penalties or interest associated therewith) as a result of a partnership audit or a notice of final partnership adjustment with respect to a particular fiscal year (or portion thereof), each Member (including any former Members) shall indemnify and hold harmless the Company for such Member's share of applicable taxes, as determined by the partnership representative in its reasonable discretion. To the extent any Member is liable for a share of the taxes (and any penalties or interest associated therewith) with respect to the Company's operations, investments or business, such Member shall pay such share to the Company promptly following receipt of written notice by the Company of any such share owed.

F. The Members agree that, if the Company receives a notice of final partnership adjustment from the Internal Revenue Service that would, with the passing of time, result in an "imputed underpayment" imposed on the Company as that term is defined in Code Section 6225, then, any Member may, or may cause the Company (by directing the "partnership representative" or otherwise) to elect pursuant to Code Section 6226, and comply with all of the requirements and procedures required in connection with such election, to make inapplicable to the Company the requirement in Code Section 6225 to pay the "imputed underpayment" as that term is used in that section; provided however, that if any Member objects in writing to such election, and provides an alternative to the Code Section 6226 election that is materially more favorable to such Member and no less favorable to the other Members, then the Company shall in good faith pursue such alternative so long as it can be implemented without jeopardizing the Member's rights to the Code Section 6226 election and so long as the Board determines that such alternative does not impose additional financial or administrative burdens on the Company.

G. To the extent permitted by applicable law, and upon a Majority Member Vote, the partnership representative shall elect pursuant to Code Section 6221(b) and comply with all of the requirements and procedures required in connection with such election, to have the provisions of Subchapter C of Chapter 63 of the Code not apply to the Company.

H. Notwithstanding any provision of this Agreement to the contrary, the obligations and responsibilities of a Member under Section 8.3 shall survive the termination of this Agreement between a Member and the Company.

I. In the event there are any statutory amendments; temporary, proposed or final Treasury Regulations; any IRS guidance published in the Internal Revenue Bulletin and/or Cumulative Bulletin; any notice, announcement, revenue ruling or revenue procedure or similar authority issued by the IRS; or any other administrative guidance, in each case, interpreting or applying Section 1101 of the Budget Act ("Further Guidance"), the Members shall further amend this Agreement to include such Further Guidance in a manner consistent with this Section 8.3.

### ARTICLE IX DISSOLUTION AND WINDING UP

#### 9.1 Conditions of Dissolution.

The Company shall dissolve upon the occurrence of any of the following events:

(1) If a period is fixed in the articles for the duration of the LLC, upon the expiration of that period, except that, in the case of an LLC that is administratively dissolved pursuant to § 48-249-604 by reason of the expiration of that period of duration, the LLC may be reinstated pursuant to § 48-249-606;
(2) The occurrence of an event specified in the LLC documents;
(3) An action of the Class A Members and Class B Members in accordance with § 48-249-603;
(4) An action of the organizers under § 48-249-602;
(5) An order of a court under § 48-249-616 or 48-249-617;
(6) An action of the secretary of state under § 48-249-605; or
(7) At any time there are no Class A Members or Class B Members if:

(A) The LLC files a notice of dissolution as provided in § 48-249-609, within ninety (90) days after the occurrence of the event that terminated the membership interest of the last remaining member, which notice of dissolution may be signed on behalf of the LLC by the personal representative of the last remaining member; and

(B) The LLC documents specify that the termination of the membership interest of the last remaining member dissolves the LLC; provided, that if such notice of dissolution is not filed or the LLC documents do not provide for dissolution in that event, the LLC is not dissolved and is not required to be wound up and the personal representative of the last remaining member is automatically substituted as a member for the last remaining member, effective as of the occurrence of the event that terminated the membership interest of the last remaining member. The dissolution date, if any, specified in the Articles of Organization. If a dissolution date is specified in the Articles of Organization, the Articles of Organization may be amended and the date of dissolution of the limited liability company may be extended by vote of all the members.

### 9.2 Winding Up.

Upon the dissolution of the Company, the Company's assets shall be disposed of and its affairs wound up. The Company shall file, as soon as possible after the occurrence of any event set forth in Section 9.1, a Notice of Dissolution as set forth in Paragraph 9.5 herein with the Secretary of State which discloses the dissolution of the limited liability company and the commencement of winding up of its business and affairs.

### 9.3 Order of Payment of Liabilities Upon Dissolution.

After determining that all known debts and liabilities of the Company have been paid or adequately provided for, the remaining assets shall be distributed to the Members in accordance with their positive capital account balances, after considering income and loss allocations for the Company's taxable year during which liquidation occurs.

### 9.4 Limitations on Payments Made in Dissolution.

Except as otherwise specifically provided in this Agreement, each Member shall be entitled to look only to the assets of the Company for the return of his or her positive Capital Account balance and shall have no recourse for his or her Capital Contribution and/or share of Net Profits against any other Member except as provided in Article X.

### 9.5 Articles of Termination.

Upon the completion of the winding up of the Company's affairs, the Company shall file Articles of Termination with the Tennessee Secretary of State.

## ARTICLE X INDEMNIFICATION

### 10.1 Indemnification of Agents.

The Company shall indemnify any Member and may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that he or she is or was a Member, officer, employee or other agent of the Company or that, being or having been such a Member, officer, employee or agent, he or she is or was serving at the request of the Company as

a manager, director, officer, employee, trustee or other agent of another limited liability company, corporation, partnership, joint venture, trust, or other entity (all such persons being referred to hereinafter a "agent"), to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as applicable law may hereafter from time to time permit.

# ARTICLE XI INVESTMENT REPRESENTATIONS

Each member hereby represents and warrants to, and agrees with, the Members and the Company as follows:

# 11.1 Preexisting Relationship or Experience.

He or she has a preexisting personal or business relationship with the Company or one or more of its officers or controlling persons, or by reason of his or her business or financial experience, or by reason of the business or financial experience of his or her financial advisor who is unaffiliated with and who is not compensated, directly or indirectly, by the Company or any affiliate or selling agent of the Company, he or she is capable of evaluating the risks and merits of an investment in Company and of protecting his or her own interests in connection with this investment.

# 11.2 No Advertising.

He or she has not seen, received, been presented with, or been solicited by any leaflet, public promotional meeting, article or any other form of advertising or general solicitation with respect to the sale of the Membership Interest.

# 11.3 Investment Intent.

He or she is acquiring the Membership Interest for investment purposes for his or her own account only and not with a view to or for sale in connection with any distribution of all or any part of Membership Interest. No other person will have any direct or indirect beneficial interest in or right to the Membership Interest.

# ARTICLE XII MISCELLANEOUS

# 12.1 Counsel to the Company.

Counsel to the Company may also be counsel to any Member or any Affiliate of a Member. The Members may execute on behalf of the Company and the Members any consent to the representation of the Company that counsel may request pursuant to the Tennessee Lawyers' Rules of Professional Conduct or similar rules in any other jurisdiction ("Rules"). The Company has initially selected R. Landon Dirickson, Esq. of Dirickson Law, PLLC ("Company Counsel") as legal counsel to the Company. Each Member acknowledges that Company Counsel does not represent any Member in the absence of a clear and explicit agreement to such effect between the Member and Company Counsel, and that in the absence of any such written agreement Company Counsel shall owe no duties directly to a Member.

# 12.2 Complete Agreement.

This Agreement and the Articles of Organization constitute the complete and exclusive statement of agreement among the Members with respect to the subject matter herein and therein, and shall replace and supersede all prior written and oral agreements among the

Members. To the extent that any provision of the Articles of Organization conflict with any provision of this Agreement, the Articles of Organization shall control.

# 12.3 Binding Effect.

Subject to the provisions of this Agreement relating to transferability, this Agreement will be binding upon and inure to the benefit of the Members, and their respective successors and assigns.

# 12.4 Interpretation.

All pronouns shall be deemed to refer to the masculine, feminine, or neuter, singular or plural, as the context in which they are used may require. All headings herein are inserted only for convenience and ease of reference and are not to be considered in the interpretation of any provision of this Agreement. Numbered or lettered articles, sections and subsections herein contained refer to articles, sections and subsections of this Agreement unless otherwise expressly stated. In the event any claim is made by any Member relating to any conflict, omission or ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular Member or his or her counsel.

# 12.5 Jurisdiction.

Each Member hereby consents to the exclusive jurisdiction of the state and federal courts sitting in Davidson County, Tennessee in any action on a claim arising out of, under or in connection with this Agreement or the transactions contemplated by this Agreement. Each Member further agrees that personal jurisdiction over him or her may be effected by service of process by registered or certified mail addressed as provided in Section 12.8 of this Agreement, and that when so made shall be as if served upon him or her personally within the State of Tennessee.

# 12.6 Arbitration.

Except as otherwise provided in this Agreement, any controversy between the parties arising out of this Agreement shall be submitted to the American Arbitration Association for arbitration in Nashville, Tennessee. The costs of the arbitration, including any American Arbitration Association administrative fee, the arbitrator's fee, and costs for the use of facilities during the hearings, shall be borne equally by the parties to the arbitration. Attorneys' fees may be awarded to the prevailing or most prevailing party at the discretion of the arbitrator. The arbitrator shall not have any power to alter, amend, modify or change any of the terms of this Agreement nor to grant any remedy which is either prohibited by the terms of this Agreement, or not available in a court of law.

# 12.7 Severability.

If any provision of this Agreement or the application of such provision to any person or circumstance shall be held invalid, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

# 12.8 Notices.

Any notice to be given or to be served upon the Company or any party hereto in connection with this Agreement must be in writing (which may include facsimile) and will be deemed to have been given and received when delivered to the address specified by the party to receive the notice. Such notices will be given to a Member at the address specified in Exhibit A hereto. Any party may, at any time by giving five (5) days' prior written notice to the other Members, designate any other address in substitution of the foregoing address to which such notice will be given. Notices to Company shall be simultaneously sent to: Dirickson Law, PLLC, PO Box 90867, Nashville, TN 37209, Attn: R. Landon Dirickson, Esq.

# 12.9 Amendments.

All amendments to this Agreement will be in writing and approved by a Majority Member Vote.

# 12.10 Multiple Counterparts.

This Agreement may be executed in multiple counterparts with the same effect as if the signatories executing the several counterparts had executed a single document, and all such executed counterparts shall together constitute one and the same instrument. Signatures submitted by facsimile and/or electronically in pdf (including, but not limited to, DocuSign) or other format shall be accepted as originals. The original of this document, including any and all signature page(s), may be scanned and stored in a computer database or other electronic format and the original destroyed, and any printout or other output readable by human sight, the reproduction of which accurately reproduces the original of this document, may be used for any purpose as if it were the original, including proof of the content of the original writing.

# 12.11 Attorney Fees.

In the event that any dispute between the Company and the Members or among the Members should result in litigation or arbitration, the prevailing party in such dispute shall be entitled to recover from the other party all reasonable fees, costs and expenses of enforcing any right of the prevailing party, including without limitation, reasonable attorneys' fees and expenses, all of which shall be deemed to have accrued upon the commencement of such action and shall be paid whether or not such action is prosecuted to judgment. Any judgment or order entered in such action shall contain a specific provision providing for the recovery of attorney fees and costs incurred in enforcing such judgment and an award of prejudgment interest from the date of the breach at the maximum rate allowed by law. For the purposes of this Section: (a) attorney fees shall include, without limitation, fees incurred in the following: (1) post judgment motions; (2) contempt proceedings; (3) garnishment, levy, and debtor and third party examinations; (4) discovery; and (5) bankruptcy litigation and (b) prevailing party shall mean the party who is determined in the proceeding to have prevailed or who prevails by dismissal, default or otherwise.

# 12.12 Remedies Cumulative.

The remedies under this Agreement are cumulative and shall not exclude any other remedies to which any person may be lawfully entitled.

# 12.13 Consent of Spouse.

Each Member who is married, or who hereafter enters into a marriage, shall obtain the signature of such Member's spouse of the Spousal Consent, which is attached hereto as Exhibit B and made a part hereof by reference. In the event that a Member fails to obtain such signature and deliver an executed copy thereof to Company and the other Members, then such Member will be deemed to have automatically transferred such Member's Membership Interest to the remaining Members on a pro-rata basis.

(a) If a Member's marriage terminates by divorce and the divorce decree orders the division, transfer or assignment of any Membership Interest to the Member's former spouse, such Member shall have the right and option to purchase the Membership Interest from his or her former spouse for a purchase price equal to the lesser of the positive balance of the Capital Account associated with the transferred Membership Interests or fair market value of the transferred Membership Interests.
(b) Such Member will have sixty (60) days from date of the divorce decree or property settlement order, as applicable, in which to elect to buy all or any of the Membership Interests.
(c) Should the divorcing Member fail to exercise such option within such sixty (60) day period, then the Company will have thirty (30) days from the expiration of the Member's option period in which to elect to buy all or any of the Membership Interests.
(d) If the Company elects not to buy all of the Membership Interest within the option period, the other Members will have thirty (30) days from the expiration of the Company's option period in which to elect to buy all, but not less than all, of the Membership Interests that the Company did not elect to buy. The other Members may elect to buy the Membership Interests in proportion to their Percentage Interests (excluding the offered Membership Interest) or in any other agreed on proportion.
(e) Closing on the purchase shall occur no later than one hundred eighty (180) days following the date of the divorce decree or property settlement, as applicable. The purchase price shall be payable in good and immediate funds at closing.

INTENDING TO BE BOUND, all of the Members of Kindred Spirits Nashville, LLC, a Tennessee limited liability company, as well as the Company itself, have executed this Agreement, effective as of the date written above.

MEMBER: Joshua Ellis

By:  
Joshua Ellis

COMPANY: Kindred Spirits Nashville, LLC

By:  
Joshua Ellis, President & CEO

DocuSign Envelope ID: 15BA4D9E-C7A0-44AC-A7A4-60FD4A1A5F2C

## FIRST AMENDMENT TO AMENDED AND RESTATED OPERATING AGREEMENT OF KINDRED SPIRITS NASHVILLE, LLC

This First Amendment To Amended and Restated Operating Agreement of Kindred Spirits Nashville, LLC (this "Amendment") is made as of November 2, 2022, by Kindred Spirits Nashville, LLC ("Company") and Joshua Ellis, and each person that hereafter becomes a Member by becoming a party to the Operating Agreement of Kindred Spirits Nashville, LLC by a Majority Member Vote (each a "Member," and collectively, the "Members"), with reference to the following facts.

A. WHEREAS, the Company and the Member(s) entered into the Operating Agreement of Kindred Spirits Nashville, LLC effective as of January 1, 2020 (the "Original Agreement");
B. WHEREAS, the Company and the Member(s) entered into the First Amendment to the Operating Agreement of Kindred Spirits Nashville, LLC effective as of January 15, 2020 (the "First Amendment"); and
C. WHEREAS, the Company and the Member(s) entered into the Amended and Restated Operating Agreement of Kindred Spirits Nashville, LLC effective as of February 2, 2020 (the "Operating Agreement").

NOW, THEREFORE, the Company and the Members by this Amendment desire to amend the terms of the Operating Agreement as follows:

1. **Amended Membership Classes.** The parties agree notwithstanding the number of Membership Units of Class C Membership authorized in the Operating Agreement, Company is hereby authorized to convert 30,000 Units of Class C Membership into 30,000 Units of newly formed Class D Preferred Membership.
2. **Class D Preferred Membership.** Subject to paragraph 3 below, Class D Preferred Membership Units shall contain solely rights to distribution of Net Profits and Net Losses of the Company and the Non-Participating Liquidation Preference as set forth herein. For the avoidance of doubt, however, such Class D Preferred Membership Units shall have no management rights and no voting rights of any kind. Members holding Class D Preferred Membership Units are sometimes referred to as "Class D Members". Class D Members are not entitled to vote on any matter pertaining to the Company, the sale of the Company (whether in part or in whole), or the Company's business or affairs, or the winding up of Company's business or affairs, or any other matter under the Operating Agreement or this Amendment. Additionally, and without limiting the foregoing, no agreement, sale, acquisition, merger or other document shall be require any signature or other approval of any Class D Member and the same shall be fully binding on Class D Members as if they had voted with unanimous approval and/or signed a so-called "written consent in lieu of a meeting" unanimously approving the same.
3. **Non-Participating Liquidation Preference.** The Class D Members holding Class D Preferred Membership Units shall have a so-called "non-participating" preference solely upon a "Liquidation Event" (as defined below) over all holders of Class A, Class B and Class C Membership Units and over the holders of any other class of Membership Units that is junior to the Class D Preferred Membership Units for an amount equal to the greater of (i) the amount paid to Company for such Class D Preferred Membership Units minus any distributions actually paid to Class D Members prior to the Liquidation Event (but specifically excluding any declared or accrued but unpaid distributions), and (ii) the amount which such holder would have received if such holder's shares of Class D Preferred Membership Units were converted to Class C Membership Units immediately prior to such Liquidation Event. Thereafter, the holders of all

DocuSign Envelope ID: 15BA4D9E-C7A0-44AC-A7A4-60FD4A1A5F2C

other classes of Membership Units will be entitled to receive the remaining assets. The term "Liquidation Event" shall mean a merger, consolidation or sale of all or substantially all of the Company's assets, unless voted otherwise by a Majority Member Vote. In the event that distributions have been actually paid to Class D Members in an amount that is in total equal to or greater than the amount paid to purchase said Class D Preferred Membership Units, the liquidation preference over holders of Class A, Class B and Class C Membership Units and over the holders of any other class or series of Membership Units that is junior to the Class D Preferred Membership Units shall expire and the holders of Class D Preferred Membership Units will have the same rights as holders of Class C Membership Units in the event of a Liquidation Event. For the avoidance of doubt, Members holding both Class D Preferred Membership Units and Membership Units of another class shall have preference upon a Liquidation Event only for the Class D Preferred Membership Units such Member holds. Notwithstanding anything to the contrary, nothing in this Amendment or the Operating Agreement shall be construed to prevent or prohibit the Company from (i) altering any class of Membership, including, without limitation, making additions to the rights of existing classes of Membership; (ii) creating new classes of Membership, whether senior to Class D Members or otherwise; and/or (iii) converting Membership Units between classes.

4. Amended Exhibit A. The parties have attached a new and amended Exhibit A setting forth the Membership Units amended by this Amendment.
5. Miscellaneous. All terms and conditions of the Original Agreement and First Amendment not amended by this Amendment shall remain in full force and effect. All capitalized terms not defined in this Amendment shall have the meanings ascribed to such terms in the Original Agreement.

INTENDING TO BE BOUND, this Amendment, having been duly adopted by a Majority Member Vote, is entered into effective as of the date written above.

SOLE CLASS A MEMBER: Joshua Ellis

Joshua Ellis

COMPANY: Kindred Spirits Nashville, LLC

Joshua Ellis

# **EXHIBIT A**
**CAPTIAL CONTRIBUTION, MEMBERSHIP INTEREST AND ADDRESS OF MEMBERS**
**as of February 23, 2023**

# **Class A Members (3 votes per unit)**

| Name | Membership Units | Ownership % | Number of Votes |
| --- | --- | --- | --- |
| 1) Joshua Ellis | 200,000 units | 20% | 600,000 Votes |
| Class A |  |  |  |
| Membership units |  |  |  |
| held by Company |  |  |  |
| in reserve (owned |  |  |  |
| by Company): |  |  |  |
|  | 50,000 units (unassigned) | 5% (unassigned) | 150,000 Votes (unassigned) |

Current Outstanding Warrants of Class A Membership: (1) Matthew Poliseno: 50,000 units
**TOTAL CLASS A MEMBERSHIP UNITS AUTHORIZED: 250,000**

# **Class B Members (1 vote per unit)**

| Name | Membership Units | Ownership % | Number of Votes |
| --- | --- | --- | --- |
| 1) Joshua Ellis | 390,000 | 39% | 390,000 Votes |
| 2) Richard A. Pascucci, Jr. | 20,000 | 2% | 20,000 Votes |
| 3) Stephen Miles | 25,000 | 2.5% | 25,000 Votes |
| 4) Benjamin Yager Bowman | 10,000 | 1% | 10,000 Votes |
| 5) Michael Jeffrey Henke | 10,000 | 1% | 10,000 Votes |
| 6) Fortress SPV | 10,000 | 1% | 10,000 Votes |
| 7) Robert and David Brown | 30,000 | 3% | 30,000 Votes |
| Class B |  |  |  |
| Membership units |  |  |  |
| held by Company |  |  |  |
| in reserve (owned |  |  |  |
| by Company): |  |  |  |
|  | 55,000 units (unassigned) | 5.5% (unassigned) | 55,000 Votes (unassigned) |
| TOTAL CLASS B MEMBERSHIP UNITS AUTHORIZED: 550,000 |  |  |  |

# **Class C Members (no voting rights)**

| Name | Membership Units | Ownership % |
| --- | --- | --- |
| 1) Bradley Ryan | 100,000 units | 10% |
| 2) Mary Hyatt | 26,000 units | 2.6% |
| 3) Shaun McKinley | 20,000 units | 2% |
| 4) Boo Bunny Bear, LLC | 20,000 units | 2% |
| 5) Luke Sutton | 1,000 (pending) | 0.1% |
| Class C |  |  |
| Membership units |  |  |
| held by Company |  |  |
| in reserve (owned |  |  |

by Company): 3,000 units (unassigned) 0.3% (unassigned)
TOTAL CLASS C MEMBERSHIP UNITS AUTHORIZED: 170,000

Class D Members (no voting rights)(liquidation preference)

| Name | Membership Units | Ownership % |
| --- | --- | --- |
| 1) Wefunder SPV | 30,000 units (pending) | 3% |

Class D

Membership units

held by Company

in reserve (owned

by Company): 0 units (unassigned) 0% (unassigned)

TOTAL CLASS D MEMBERSHIP UNITS AUTHORIZED: 30,000

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Kindred Spirits Nashville, LLC dba Withco

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** TN

**Date of Organization:** 09-02-2015

**Physical Address:** 1015 W Kirkland Ave #202, Nashville, TN, 37216

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

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

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

**Compensation to Intermediary:** 6.5% of the offering amount upon a successful fundraise, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the Issuer in connection with the offering.

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

**Other Description of Security:** Class D Membership Units

**Number of Securities Offered:** 2683

**Price per Security:** $18.64

**Method for Determining Price:** Dividing pre-money valuation $17,000,044.80 by number of units outstanding on fully diluted basis.

**Target Offering Amount:** $50,012.19

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $499,991.45

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 7

**Total Assets (Most Recent Fiscal Year):** $275,961.00

**Total Assets (Prior Fiscal Year):** $206,588.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $61,848.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $75,474.00

**Accounts Receivable (Most Recent Fiscal Year):** $34,788.00

**Accounts Receivable (Prior Fiscal Year):** $34,451.00

**Short-Term Debt (Most Recent Fiscal Year):** $335,036.00

**Short-Term Debt (Prior Fiscal Year):** $183,268.00

**Long-Term Debt (Most Recent Fiscal Year):** $89,619.00

**Long-Term Debt (Prior Fiscal Year):** $75,287.00

**Revenues/Sales (Most Recent Fiscal Year):** $2,658,040.00

**Revenues/Sales (Prior Fiscal Year):** $1,059,100.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $1,611,230.00

**Cost of Goods Sold (Prior Fiscal Year):** $649,976.00

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

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

**Net Income (Most Recent Fiscal Year):** $-284,787.00

**Net Income (Prior Fiscal Year):** $-34,029.00

**Jurisdictions Offered:**

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

### Signatures

**Issuer:** Kindred Spirits Nashville, LLC dba Withco

**Signature:** Joshua Ellis

**Title:** Founder & CEO

---

**Signature:** Joshua Ellis

**Title:** Founder & CEO

**Date:** 02-23-2023