# EDGAR Filing Document

**Accession Number:** 0001962452
**File Stem:** 0001670254-23-000028
**Filing Date:** 2023-1
**Character Count:** 223052
**Document Hash:** f4d766562e01ed2e36304281df8be677
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001670254-23-000028.hdr.sgml**: 20230120

**ACCESSION NUMBER**: 0001670254-23-000028

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 10

**FILED AS OF DATE**: 20230120

**DATE AS OF CHANGE**: 20230120

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Coils to Locs, LLC
- **CENTRAL INDEX KEY:** 0001962452
- **IRS NUMBER:** 842027035

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31648
- **FILM NUMBER:** 23539997

**BUSINESS ADDRESS:**
- **STREET 1:** 1452 DORCHESTER AVE., 4TH FL
- **CITY:** DORCHESTER
- **STATE:** MA
- **ZIP:** 02122
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 1452 DORCHESTER AVE., 4TH FL
- **CITY:** DORCHESTER
- **STATE:** MA
- **ZIP:** 02122

## Ex-99

### Attached PDF Documents

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

# Form C

## Cover Page

Name of issuer:

Cape to Lee, LLC

Lage status of issuer:

Form: Limited Liability Company

Jurisdiction of Incorporation/Organization: MA

Date of organization: 5/24/2019

Pension address of issuer:

1452 Dorchester Ave., 4th fl

Dorchester MA 02123

Website of issuer:

https://carlotobics.com/

Name of intermediary through which the offering will be conducted:

Welfunder Portal LLC

CRI number of intermediary:

00086/0054

SEC file number of intermediary:

007-00033

CRD number, if applicable, of intermediary:

283583

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 refund and any other fees associated with the offering.

5.5% of the offering amount upon a successful fundraiser, and be entitled to reimbursement for out-of-pocket third party expenses it pays or incurs on behalf of the issuer in connection with the offering.

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

No

Type of security offered:

☐ Common Stock

☐ Preferred Stock

☐ Cash

☐ Other

If Other, describe the security offered:

Simple Agreement for Future Equity (SAFE)

Target number of securities to be offered:

50,000

Price:

$1,00,000

Method for determining price:

Pre-rated portion of the total principal value of $50,000; interests will be sold in increments of $1; each investment is convertible to one unit as described under Item 10.

Target offering amount:

$50,000.00

Overrecoverability accepted:

☐ Yes

☐ No

If yes, describe how overrecoverability will be allocated:

☐ Pre-rate basis

☐ Post-same, first-served basis

☐ Other

If other, describe how overrecoverability will be allocated:

As determined by the issuer

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

$250,000.00

Deadline to reach the target offering amount:

4/30/2023

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

Current number of employees:

2

|  | Most recent fiscal year-end | Prior fiscal year-end |
| --- | --- | --- |
| Total Assets | $70,897.00 | $38,218.00 |
| Cash & Cash Equivalents | $60,675.00 | $28,498.00 |
| Accounts Receivable | $670.00 | $0.00 |
| Stockholders' Equity | $0.00 | $15.00 |
| Long-term Debt | $15,000.00 | $20,000.00 |
| Reserves/Cable | $29,364.00 | $11,469.00 |
| Cost of Goods Sold | $11,863.00 | $2,923.00 |
| Trade Debt | $0.00 | $0.00 |
| Net Income | $39,145.00 | $7,264.00 |

Direct 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, ND, NE, NV, NH, NJ, NM, NV, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI, WY, WI

# Offering Statement

Respond to each question in each paragraph of this post. Set forth each question and any terms, but not any instructions therein, or their contents. If disclosure is required in any question in response to one or more other questions, it is not necessary to report the disclosure. If a question or series of questions is inapplicable or the response is available elsewhere in the Press, other than that it is inapplicable, include a cross-reference to the respective 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 observations you have a reasonable basis to believe that it will actually cause a definite 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 that information.

## THE COMPANY

1. Name of Issuer:

Colis to Loss, LLC

## COMPANY ELIGIBILITY

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

- Organized under, and subject to, the laws of a State or territory of the United States of the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 15 or Section 1045 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 41(c)(3) of the Securities Act as a result of a disqualification specified in Rule 9/30(a) of Regulation Crowdfunding.
- Has filed with the Commission and provided its investors, to the extent required, the ongoing virtual reports reported 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 someone 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 41(c)(3) of the Securities Act.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 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 Employee | Year Joined as Director |
| --- | --- | --- | --- |
| Dianne Austin | Co-founder and CEO | Colis to Loss | 2019 |
| Pamela Shaddock | Co-founder and COO | Colis to Loss | 2019 |

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

## OFFICERS OF THE COMPANY

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

| Officer | Position Held | Year Joined |
| --- | --- | --- |
| Dianne Austin | CEO | 2019 |
| Dianne Austin | Co-founder | 2019 |
| Pamela Shaddock | Co-founder and COO | 2019 |

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

INSTRUCTION TO QUESTION 5: For members of this question 5, the name of the issuer is available, not considered as merely insurance or principal financial officers, responsible or principal accounting officers, and not persons that maintain performance, liability, 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 | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| Pamela Shaddock | Membership Interests | 50.0 |
| Dianne Austin | Membership Interests | 50.0 |

INSTRUCTION TO QUESTION 6: The above information must be provided as of a date that is to name the Company prior to the date of filing of this offering statement.

The information must be given, included, and as stated, for which the person should be liable to be for shares in voting power, which includes the person to vote or to direct the voting of such securities. If the person has not such investment voting power as such securities, within 30 days, including through the exercise of any opinion, warrants or rights, the investment of a member or other arrangement or if any action was held by a member of the family through compensation or partnerships, or where he has a member that is not able to pursue to the or no record of the voting of the securities that done in such decisions as stated - i.e., for example, a no member has should be included in being "immediately or not". The information shall be a explanation of the or no statement or a function in the "Number of and Class of Securities Now Held". The information regarding voting equity securities, income, and outstanding options are correct at end of immediately preceding or not later mentioned.

## BUSINESS AND ANTICIPATED BUSINESS PLAN

7. Describe or 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: Wholesaler will provide your company's Wholesaler profile as an appendix Appendix A in the Form A, or the Form B. The information will include all 100 business and "evaluation" skills as an anticipated process. All relevant items are included.

This means that your information provided in your Wholesaler profile will be provided in the SEC as a service to this question. In a event, your company will be previously liable for all investments and securities by such profit under the Securities Act of 1933, which requires you to provide material information related to your business and anticipated business plan. Please review your Wholesaler profile carefully to ensure a periodic all material information is not false or misleading, and does not omit any information that could 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 specialties or may:

Competition Risk - The larger avg manufacturers are currently not producing ethnically inspired colly/turly wigs in any meaningful way, they could theoretically start at any time. Our assumption is that since we're currently in 2022 with no movement in this area or their behalf, they would only commit the resources to do so once they saw the market potential that was proven by Colis to Lincs. But if they started producing & marketing tomorrow, we ran the risk of being outspent with marketing and undercut in pricing.

Financial Risk - We are in a capital-intensive space. While we can continue growing the brand slowly right now, if we do not raise enough money in our next round to achieve manufacturing and inventory scale, we ran the risk of hitting a financial wall where we can never get in front of the demand. When you don't get in front of demand, your competitors step in to fill the missing void.

Execution Risk - As first-time founders, we actually do not have the "fixed through it" knowledge that would inevitably help us avoid many pitfalls. While our goal is to hire a more seasoned team & continue to surround ourselves with strong advisors & accelerators, we still run the risk of not being able to achieve our milestones. If we do not hire a team that has the skills we lack.

Market Risk - Unfortunately, the market for colly/turly wigs is growing year over year. As a company this booze very well for CTL, But with the rate at which technology is increasing within the medical space, there is a future potential where the need for wigs in general is diminished greatly, or all together.

Additional Risk - Our supply chain/ODGS could fluctuate, intellectual property/patents, risks associated with the occurrence platform, (balance on third party software, security/privacy payment processing, etc.). Other unforeseen business conditions.

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

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.

PARTICULAR REQUISITION: It must be produced, approved and included with the following items in the case. The results are not to be used in the case. The results are not to be used in the case. The results are not to be used in the case.

## 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 so total $50,000

State of Wisconsin 30% towards digital marketing strategy, 30% towards operations software, (CIM), (calendar management, etc.), 83.6% towards our fulfillment center, 6.5% Wolfunder intermediary fee

If so total $250,000

State of Wisconsin 12.5% towards inventory/product development, 20% towards our fulfillment center, 60% towards bringing on PF business development & marketing team members 6.5% Wolfunder intermediary fee

PARTICULAR REQUISITION: In the case that provides an overall product development, there is no need for any product, and that is not to be provided with an adequate amount of information as mentioned in the offering process. The company is not to be used to use the product in any of the other items. The company is not to be used to use the product in any of the other items. The company is not to be used to use the product in any of the other items.

### 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 Wolfunder 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

The following table is provided in the image. The text in the source image is not clearly legible.

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

II. Describe the terms of the securities being offered.

To view a close of the SAFE you will purchase, please see

Appendix B, Investor Contracts

The main terms of the SAFEs are provided below.

The SAFEs. We are offering securities in the form of a Simple Agreement for Future Equity ("SAFE"),

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

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

Convenient Preferred Funds. Based on our SAFEs, when we engage in an offering of equity interests involving preferred units,

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

1. the total value of the investor's investment, divided by

1. the price of preferred units issued to new investors multiplied by

2. the discount rate (85%), or

2. If the valuation for the company is more than $2,000,000.00 (the "Valuation

Cap"), the amount invested by the investor divided by the quotient of

1. the Valuation Cap divided by

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

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

- Includes all Capital Units issued and outstanding.

- Includes all Converting Securities.

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

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

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

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

Liquidity Price. In a Liquidity Event or Dissolution Event, this Sale is intended to operate like standard nonparticipating Preferred Units. The investor's right to receive its Cash-Out Amount is:

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

2. On par with payments for other Sales and/or Preferred Units, and if the applicable Proceeds are insufficient to permit full payments to the investor and such other Sales and/or Preferred Units, the applicable Proceeds will be distributed pro rata to the investor and such other Sales and/or Preferred Units. In proportion to the full payments that would otherwise be due; and

Senior to payments for Common Units.

# Securities Issued by the SPV

Instead of issuing its securities directly to investors, the Company has decided to issue its securities to the SPV, which will then issue interests in the SPV to investors. The SPV has been formed by McKinsey Admin. LLC and is a co-owner 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 simple class of securities of the Company. As a result, an investor investing in the Company through the SPV will have the same relationship to the Company's securities, in terms of number, denomination, type and rights, as if the investor invested directly in the Company.

# Voting Rights

If the securities offered by the Company and those offered by the SPV have voting rights, these voting rights may be exercised by the investor 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 (1) vote all securities related to the Company purchased in an offering hosted by Wefunder Portal, and (2) 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 receive 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?

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

1. the Investor or
2. the majority-in-interest of all then-outstanding Safes with the same "Fed-Money Valuation Cap" and "Discount Rate" as this Safe (and Safe) leasing one or both of such terms will be considered to be the same with respect to each Witness, provided that with respect to clause (1):
   A. the Purchase Amount may not be amended, waived or modified at this moment;
   B. the consent of the Investor and each holder of such Safes must be solicited (even if not obtained); and
   C. each amendment, waiver or modification bears all such holders in the same manner. "Majority-in-interest" refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than 50% of the total Purchase Amount of all of each applicable group of Safes.

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

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

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

The securities being offered may not be transferred by any purchaser of such securities during the two year period beginning when the securities have 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. in a member of the family of the purchaser or the equivalent, in a trust connected by the purchaser, in a trust owned by the family of a member of the family of the purchaser or the equivalent, or in connection with the deal or business of the purchaser or other similar environment.

NOTE: The term "succeeded Investor" means any person who comes within any of the categories set forth in Rule 5(1)(a) of Regulation S, 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, shopchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.

### DESCRIPTION OF ISSUER'S SECURITIES

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

| Class of Security | Securities (or Amount) Authorized | Securities (or Amount) Outstanding | Voting Rights |
| --- | --- | --- | --- |
| This is an LLC with no issued units. |  |  |  |

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

Warrants:

Options:

Describe any other rights:

18. How may the rights of the securities being offered be materially limited, shared 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 placing those rights on limiting them to certain types of events or concerns.

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, shared or otherwise qualified, the Investor could lose all or part of his or her investment in the securities in this offering, and may never sue positive returns.

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

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

No.

20. How could the exercise of rights held by the principal shareholders identified in Question 5 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 response to change those decisions. The Investor's interests may conflict with those of other investors, and there is no guarantee that the Company will develop in a way that is optimal for or advantageous to the Investor.

For example, the unitholders may change the terms of the operating agreement for the company, change the terms of securities issued by the Company, change the management of the Company, and even force 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 non-officiable 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.

2) Here 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.

The initial amount invested in a SAFE is determined by the investor, and we do not guarantee that the SAFE will be converted into any particular number of units. As discussed in Question 13, when we engage in an offering of equity interests involving Preferred Units, investors may receive a number of Preferred Units calculated as either (i) the total value of the Investor's investment, divided by the price of the Preferred Unit being issued to new investors, or (ii) if the valuation for the company is more than the Valuation Cap, the amount invested divided by the quotient of (a) the Valuation Cap divided by (b) the total amount of the Company's capitalization at that time.

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

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

- unrelated third party valuations;
- the price at which we sell other securities in light of the relative rights, preferences and privileges of those securities;
- our results of operations, financial position and capital resources;
- current business conditions and projections;
- the marketability or lack thereof of the securities;
- the hiring of key personnel and the experience of our management;
- the introduction of new products;
- the risk inherent in the development and expansion of our products;
- our stage of development and material risks related to our business;
- the likelihood of achieving a laudable credit, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business;
- industry trends and competitive environment;
- trends in consumer spending, including consumer confidence;
- overall economic indicators, including gross domestic product, employment, inflation and interest rates; and
- the general economic outlook.

We will analyze factors such as those described above using a combination of financial and market-based methodologies to determine our business enterprise value. For example, we may ask 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.

3) What are the risks to purchasers of the securities relating to investor, operating 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.

4) What are the risks to purchasers associated with corporate actions, including additional issuances of securities, issuer repurchases of securities, share of the issuer or of results of the issuer or transactions with related partners?

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 semi-breath 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:

Form

| Lender | Derivative Bank |
| --- | --- |
| Issue date | 03/14/20 |
| Amount | $20,000.00 |
| Outstanding principal plus interest | $0.28.00 as of 01/10/22 |
| Interest rate | 4.0% per annum |
| Maturity date | 03/03/22 |
| Current with payments | Yes |

If the two years of the issue were interest with payments, the sum of the material principal payments during the interest with period ending 30,000 (during our previous three adjustments). We can currently paying the sum of the principal above. As July 2022, the issues changed from only paying interest to paying principal.

PART I: PART III (QUARTER 24) Note: No conflict, interest rate, interest rate, maturity date, and any other material terms.

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

| Offering Date | Exemption | Security Type | Amount Sold | Use of Proceeds |
| --- | --- | --- | --- | --- |
| 10/2020 | Section 4(a)(2) |  | $15,000 | General operations |
| 2/2021 | Section 4(a)(2) |  | $15,000 | General operations |
| 3/2021 | Section 4(a)(2) |  | $1,600 | General operations |
| 4/2021 | Section 4(a)(2) |  | $25,000 | General operations |
| 4/2021 | Section 4(a)(2) |  | $10,000 | General operations |
| 4/2021 | Section 4(a)(2) |  | $10,000 | General operations |
| 10/2021 | Section 4(a)(2) |  | $10,000 | General operations |
| 1/2022 | Section 4(a)(2) |  | $25,000 | General operations |
| 1/2022 | Section 4(a)(2) |  | $100 | General operations |
| 3/2022 | Section 4(a)(2) |  | $2,000 | General operations |
| 10/2022 | Section 4(a)(2) |  | $10,000 | 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 received exceeds the percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(2) of the Securities Act during this proceeding (in interim period, including the amount the issuer seeks to raise in the current offering, in which any of the following reasons 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 last 1 month practicable date, the beneficial owner of (a) percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;

3. if the issuer was independent or organized within the past three years, any promoter of the issuer;

4. or (b) any immediate family member of any of the foregoing persons.

☐ Yes
☑ No

PART II: PART III (QUARTER 24) The term transaction includes, but is not limited to, any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) or any series of similar transactions, arrangement or relationships.

Resident ownership (or purposes of paragraph (2)) shall be determined as of a date that it is more than 12% described on the date of filing of the offering statement and using the same information as is filed in the form of the Questions and Answers form.

The term "member of the family" includes any child, nephew, grandchild, parent, steppearer, grandparent, spouse or general agent, sibling, mother, father-in-law, partner or daughter-in-law, brother-in-law, or other member of the person, and includes religious relationships. The term "special organization" means a suburban or ongoing understanding, generally, operating in the city of space.

Complete the amount of a subject (or its) interest in any transaction is those engaged in the process of the profit or loss involved in the transaction. Where it is not practicable to meet the approximate amounts of the interest, which is the approximate amount to which is 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

We 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 receive risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

## Overview

We create ethnically inspired wigs for medical & non-medical hair loss.

CTL was built out of my lived cancer experience. As I lost my hair during chemotherapy, I looked for a wig that matched my naturally tightly called hair. There were MORE available. I was told that I could buy a straight-hand wig and have a salon and chemicals to "kick" the half! CTL was born to bring humility back to medical hair loss.

Born out of our own cancer experience, Colis to Locs has operated a long-held healthcare disparity, by being the first ethnically inspired wig distributor in the medical hair loss space. We run both B2B2C and D2C models. We are selling to cancer centers and medical hair loss salons, (B2B), where our wigs can be purchased with health insurance (reimbursement). We now also sell B2C, (late B272) where anyone can buy an ethnically inspired wig for hair loss, or based on styling preferences.

As we see it now, in 5 years Colis to Locs hopes to become an independently owned, multi-million dollar, values-free organization, with a solid foundational infrastructure, working its wig towards being a household brand name. We hope to have achieved by this point, the technology that will support us in manufacturing our wigs in our community, on our own terms. And we are in every cancer center & medical salon across the B2B space. At this point, we are open to cash with potential resources.

## Milestones

Colis to Locs, LLC was organized in the State of Massachusetts in May 2019.

Since then, we have:

- 1 in 1 Black women will be diagnosed with cancer in their lifetime

- 1. 46% of women experience medical hair loss; satisfactory wigs are impossible to find at hospitals

- Black women outspend other demographics on haircare & beauty by MORE Trade Bills

- That is a $2.98 market for wigs/extensions in America, and growing to $48+ over the next 4 years

- Founders have liked this problem first hand + have worked within the health system for 20+ years

- We have partnerships with the top hospitals; incl. Dana Farber Cancer & Massachusetts General

- Currently launching D2C e-commerce site, selling directly to women with all types of hair loss

## Historical Results of Operations

Our company was organized in May 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.

- Business & Gross Margin. For the period ended December 31, 2021, the Company had revenues of $19,764 compared to the year ended December 31, 2020, when the Company had revenues of $7,469. Our gross margin was 59.6% in fiscal year 2021, compared to 74.9% in 2020.

- Asset. As of December 31, 2021, the Company had total assets of $70,897, including $50,675 in cash. As of December 31, 2020, the Company had $36,298 in total assets, including $39,448 in cash.

- Net Income. The Company has had net income of $39,146 and net income of $7,364 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively.

- Liabilities. The Company's liabilities totaled $15,000 for the fiscal year ended December 31, 2021 and $20,015 for the fiscal year ended December 31, 2020.

## Liquidity & Capital Resources

To date, the company has been financed with $20,000 in debt and $22,766 in grant funding.

After the conclusion of this Offering, should we hit our minimum funding target, our projected money is 14 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 14 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 protect whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

## Runway & Short/Mid Term Expenses

Colis to Locs, LLC cash-in hand is $31,224.39, as of December 2022. Over the last three months, revenues have averaged $5,716/month; cost of goods sold has averaged $609/month, and operational expenses have averaged $4,285/month, for an average net burn of $178 per month. Our intent is to be profitable in 12 months.

Since the date of our financials:

- Colis to Locs received $37K in non-illutive grant funds from various sources;

- We commissioned a marketing professional to support our revenue growth,

- Our e-commerce online store was developed and launched,

- We hired a professional PR company for the next 12 months to help strategically build our brand,

- We paid for a fundraising expert to help build out and guide our Santander campaign,

- We enrolled a professional fulfillment center to handle product fulfillment and shipping.

Our expectation for revenue in the next 3 months is a minimum of $20,200. Our expenses in the next 3 months are expected to be about $6,700.

Colis to Locs is not profitable right now. Like any startup, we are putting more money into the business and are strategically building our brand. We believe $20K is what's needed to help us reach a point of profitability and we aim to do that by the second quarter of 2023.

Colis to Locs has been applying for and working non-illutive grant funding. We have received a total of $17K in 2022 and we plan to continue to use this method of raising capital. We are also becoming more aggressive in our hospital outreach on the B2B side and marketing on the B2C side thereby creating revenue-based

financing. This is how we have covered and will continue to cover our short-term burn throughout the campaign.

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

INSTRUCTIONS: The following table provides the information in a specific format:

## FINANCIAL INFORMATION

In minute financial statements covering the two most recently completed fiscal years at the period(s) since inception, if shorter

Refer to Appendix C, Financial Statements

1. These Austin, Inc.

(1) the financial statements of Coils to Lacs, LLC included in this Form are true and complete in all material respects; and

(2) the financial information of Coils to Lacs, LLC included in this Form reflects accurately the information reported on the tax return for Coils to Lacs, LLC filed for the most recently completed fiscal year.

Dianne Austin
Correspondence and CEO

## STAKEHOLDER ELIGIBILITY

3. With respect to the issues, any precession 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 of the firm of such one, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchases in connection with such one of securities or any general partner, director, officer or managing member of any such securities prior to May 16, 2016.

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

1. In connection with the purchase or sale of any security? ☐ Yes ☑ No
2. Involving the making of any false filing with the Commission? ☐ Yes ☑ No
3. In any case of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or joint selection of purchasers of securities? ☐ Yes ☑ No

(2) Is any such person subject to any order, statement or decree of any court of competent jurisdiction, ordered within five years before the filing of the information required by Section 4(6)(c) of the Securities Act that, at the time of filing of this offering statement, accounts or erodes such person from engaging or continuing to engage in any conduct or practice:

1. In connection with the purchase or sale of any security? ☐ Yes ☑ No
2. Involving the making of any false filing with the Commission? ☐ Yes ☑ No
3. In any case of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or joint selection 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 the functions), a state authority that supersedes or examines banks, savings associations or credit arrears, a state insurance commission (or an agency or officer of a state performing the functions), an appropriate federal banking agency, the U.S. Community Futures Trading Commission, or the National Credit Union Administration that:

1. at the time of the filing of this offering statement, both the parties from:
A. association with an entity regulated by such commission, authority, agency or officer? ☐ Yes ☑ No
B. engaging in the business of securities, insurance or banking? ☐ Yes ☑ No
C. engaging in savings associations or credit union activities? ☐ Yes ☑ No
2. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was ordered 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 4(2)(a) or 5(2)(c) of the Exchange Act or Section 2(2)(a) or (b) of the Investment Advisors Act of 1974 that, at the time of the filing of this offering statement:

1. suspends or secures such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal? ☐ Yes ☑ No
2. places, limitations on the activities, functions or operations of such person?
☐ Yes ☑ No
3. Is any such person from being associated with any entity or from participating in the offering of any policy, 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 failure to order of:

1. any subcontracted and fraud provision of the federal securities laws, including without limitation Section 1(2)(c) of the Securities Act, Section 1(2)(a) of the Exchange Act, Section 2(2)(b) of the Exchange Act and Section 2(2)(c) of the Investment Advisors Act of 1974 or any other acts or regulation thereunder? ☐ Yes ☑ No
2. Section 5 of the Securities Act? ☐ Yes ☑ No

(6) Is any such person suspended or expelled from membership in, or suspended or towed 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 (excluding conduct) inconsistent with just and equitable principles of trade?

☐ Yes ☑ No

(7) Was any such person filed (as a registered 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, accounts or erodes such person from, and/or under, a registered or under, 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 step-order or suspension order should be issued?

☐ Yes ☑ No

(8) Is any such person subject to a United States Postal Service false representation under entered within five years before the filing of the information required by Section 4(6)(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary retirement, order or preliminary disposition 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, 2016, then you are NOT eligible to rely on this exemption under Section 4(2)(b) of the Securities Act.

INSTRUCTIONS: The following table provides the information in a specific format:

The results must be approximately the following, which is consistent to a final disposition on a date by date (based on some aspects):

The results are prepared for the following items to give the current estimates on any different basis that are not included in the different source of the different assets. In addition, the method of the return on the date is consistent with the reason by a third party that was to remain of the different terms on the date of each event.

## OTHER MATERIAL INFORMATION

11. 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 ruling 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 ruling 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 have 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 committed 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 change from the interests of investors, as discussed in section 8 above.

Investors that wish to purchase securities related to the Company through Wefunder Portal must agree to give the Proxy 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 ("TPI") (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 TPI within the center of (1) two (2) years of making their investment or (2) twenty (20) days prior to the date of any distribution from the SPV. If an investor does not provide their TPI 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 TPI. Investors should carefully review the terms of the SPV Subscription Agreement for additional information about tax filings.

AGREEMENT TO BE APPLICABLE TO: (i) information presented in the form of a financial statement or other means not to be applied to the or possible document (from the form of the document).

The description of the material content of each information

The description of the information which such document is presented and

to the use of the form in the author of the document made in the form, a summary of the part of the author's name

## ONGOING REPORTING

11. 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.

12. Once posted, the annual report may be found on the issuer's website at:

https://carlotobics.com/freel

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 presidents or repurchaser all of the securities issued pursuant to Section 10(4)(b), including any payment in full of debt securities or any complete redemption of redeemable securities; or the issuer liquidates or disachses in accordance with state law.

## APPENDICES

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials

Appendix D: Director & Officer Work History

Dianne Austin

Pamela Shaddock

Appendix E: Supporting Documents

Cells_to_Locs_-_Operating_Agreement_SIGNED.pdf

# Signatures

Incidental misstatements or omissions of facts constitute federal criminal violations. See 19 U.S.C. 1001.

The following documents will be filed with the SEC.

Cover Page XML

Offering Statement (this page)

Appendix A: Business Description & Plan

Appendix B: Investor Contracts

SPV Subscription Agreement

SAFE (Simple Agreement for Future Equity)

Appendix C: Financial Statements

Financials I

Appendix D: Director & Officer Work History

Dianne Austin

Pamela Shaddock

Appendix E: Supporting Documents

Coils_to_Locs_-_Operating_Agreement_SIGNED.pdf

Permanent 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.

Coils to Locs, LLC

By

Dianne Shaddock Austin

CEO and Co-Founder

Permanent 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 Pamela Agent Agreement has been signed by the following persons in the capacities and on the dates indicated.

Pamela Shaddock

Co-founder and COO

1/17/2023

Dianne Shaddock Austin

CEO and Co-Founder

1/17/2023

The Form C must be signed by the issuer by principal executive offices or officers, in principal financial offices, in controller or principal accounting offices and in least a majority of the board of directors or persons performing another position.

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 COILS TO LOCS

## Ethnically inspired wigs for medical & non-medical hair loss

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

publication.com

### Highlights

1. 1 in 3 Black women will be diagnosed with cancer in their lifetime
2. 46% of women experience medical hair loss; colly/curly wigs are impossible to find at hospitals
3. Black women outspend other demographics on hair care & beauty by MORE THAN 85%
4. That is a $2.5B market for wigs/extensions in America, and growing to $4B+ over the next 4 years
5. Founders have lived this problem first hand + have worked within the health system for 20+ years
6. We have partnerships with the top hospitals; incl. Dana Farber Cancer & Massachusetts General
7. Currently launching D2C e-commerce site; selling directly to women with all types of hair loss
8. Featured on the Today Show, and in the Boston Globe, Forbes, People & Elle

### Our Team

**Dianne Shaddock Austin** CEO and Co-Founder

Cancer survivor and serial entrepreneur with expertise as a natural hair and black culture blogger. BS in Mass Communications, Emerson College

CTL was built out of my lived cancer experience. As I lost my hair during chemotherapy, I looked for a wig that matched my naturally tightly called hair. There were MORE available. I was told that I could buy a straight-haired wig and have a salon add chemicals to 'kink' the hair! CTL was born to bring humility back to medical hair loss.

**Pamela Shaddock** COO and Co-Founder

Worked in the health-related events space, putting on Avon Breast Cancer Walks and similar fundraising events. In 2020, I slowed my burgeoning career as a supporting actress to commit myself to building CTL full time. Adelphi Alumnus.

**Cheryl McCloud** Chief Engagement Officer

Cheryl has professional expertise in communications and community engagement. Leverages a career working in Communications, Public Relations and Marketing for small businesses, corporations, not-for-profits, healthcare, and government.

**Howard Chan** Web Development & Website Management

Howard is a multi talented professional who provides technical and high-level administrative support to Coils to Locs. In his 'spare' time, he is a practicing attorney!

LEAD INNOVATION

#### Media Cutsitters

This is a remarkable company and ONE OF A WHO. It is the first to address an overlooked need for a vast community of women who have experienced hair loss due to medical reasons. Coils to Locs is the ONLY wig distributor selling early first to evaluate human wigs at cancer hospitals and medical hair loss values across the country. It's not just lost. There are women psychosocial benefits on the power of the mind when faced with a health issue. Hearing and reassessing from a very medical experience is greatly supported by how a person feels. Because of Coils to Locs there are extremely important, culturally sensitive wigs choices for Black and Brown women at cancer center locations and medical hair loss values. It may not cover the 2 big deal, but it makes a huge impact when a woman is battling a medical issue internally and not ending at all the benefit normally. Coils to Locs provides wigs in varying features so that women of all nationalities, who have colly, curly hair can get to the business of finding without the disavowed that could happen when looking in the mood. It's not just that.

Invested $1,000 this round.

**The Story Of One Cancer Survivor Giving Millions Of Black Women Across America The Confidence To Be Themselves Again.**

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

**“It’s just hair. You should feel lucky to be alive.”**

You can imagine my disbelief when well-intentioned people let this comment slip out of their mouths, as they responded to my most recent cancer treatment update.

Hello, my name is Dianne, co-founder of Coils to Locs. In 2015 I was diagnosed with breast cancer and lost all of my coily textured hair due to chemotherapy. My oncologist wrote me a wig prescription, and I was assured that my insurance would reimburse me up to $150. I set out to go find a wig that would make me feel as comfortable in my skin as possible during this emotionally challenging time.

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

Pre-Chemo

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

Post Chemo

As I lost my hair during chemotherapy, I went to the medical hair salon to look for a wig that matched my naturally coily hair. To my surprise, there were **NONE** available.

I was told that I could buy a straight haired wig, and take it to a medical hair salon so that they could add chemicals to the wig to “tightly coil” the hair.

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

After reaching out to dozens of cancer centers across the country, I realized that my dilemma was not unique to the Boston area. No wig manufacturer provided highly textured, coily wigs for the healthcare system. Was there not a market or interest in tightly coiled wigs in the medical hair loss space?

What I actually found was the contrary...

**Tens of Millions of Black Women Experience Hair Loss**

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

Just a Wig**

11M+ Black Women experience

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

hair loss & need a wig
10% of Black Women
Experience hair loss
Black hair culture & hair identity far exceeds other communities
Wigs for medical hair loss is not a vanity purchase
0 ethnically inspired wigs
Currently available

Cancer is not the only reason for hair loss among Black women. In fact it's one of many causes. Some of the other prominent causes of hair loss are traction alopecia, which is caused by tightly braiding your hair for extended periods, autoimmune diseases, such as thyroid imbalances, and lupus.

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

Unwashways caused hair loss
- 1 or 2 Black Men and Women are diagnosed with cancer in their lifetime.
- 10% of patients with cancer experience hair loss.
- 1 or 2 Black Men in the US are diagnosed with cancer.
Traction alopecia
- The most common form of hair loss, affects 12% of Black Women
- Caused by tight braiding hair styles
Central Centrifugal Overload Alopecia
- Affects 10% of Black Women.

Thankfully, the Solution Has Arrived!

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

## The Solution

We couldn't find the textured, easily wigs that so deeply represent who we are within the healthcare system, so we decided to do something about this disparity. This is when Coils to Locs was born. Both myself, and my co-founder and sister, Pamela are integrally involved in the black hair culture as bloggers and influencers. PS - you can read and learn more here.

Between our hair culture background and my understanding of the healthcare space having worked in the industry for over 20 years, we knew we were well suited to both provide a product that women would love to wear, and be able to get that product into medical hair salons across America.

We've made progress on both fronts so far...

### Women Love Our Product

"THANK YOU for doing what you do. This is sorely needed." *this is what keeps us going!

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

"Another happy client left our Boutique today looking fabulous in her Coils to Locs wig!"
- Over My Head Boutique

"I love your mission and I believe your work is very important as, once again, folks of color are being overlooked."

You can check out our entire catalog of wigs here.

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

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

## Word is Spreading About Coils to Locs Wigs, Made Specifically for Women of Color

Today Show: "Sisters Aim to Make Wigs More Inclusive for Cancer Patients & Survivors"

Boston Globe: "Black Female Founders Sell the Medical Wigs That Other Companies Won't"

People: "This Mom & Cancer Survivor. Couldn't Find Curly Textured Wigs After Chemo. So She Created Her Own"

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

With news articles highlighting Coils to Locs, and the unfortunately high number of women who truly need this product, we immediately started receiving notes like:

"Hello, I have lost all of my hair due to years of dealing with diabetes And dialysis ... Please tell me how I can become one of your customers!"

And

"I am not a cancer patient, but a Lupus survivor. I started to lose my hair in college before being diagnosed with Lupus. Your hair units are exactly what I love. More ethnic. More me. We need beautiful and affordable hair too. Thank you for your vision and best of luck!"

## The Response Was Telling Us That The Market Was There

Starting with the hospital that I was first diagnosed with cancer at three years earlier, we began getting paid placements of Coils to Locs wigs. Over the past year or so we have been testing the product in the market, and getting the feedback you read a little about above. We're already in some of the top cancer centers & medical hair salons in the nation, and most of the major cancer hospitals in the Boston area alone! We've only just begun and this next chapter is going to be a big one.

## Proof of Concept

Our Customers Are
Already Some Of The
Biggest Names In
Healthcare

Massachusetts General Hospital
Founding Member, Mass General Brigham

Beth Israel Lahey Health
Beth Israel Deaconess Medical Center

Dana-Farber
Cancer Institute

UVA Health

Seattle
Cancer Care
Alliance

## 2022 Was About Turning This Idea Into A Thriving Business

We decided right off the bat that given my background we would first solve this healthcare disparity through the B2B sector - selling to cancer centers and

medical hair salons.

**But demand for our wigs has been so strong that we are launching our Direct to Consumer platform in November!**

Having an e-commerce presence is an obvious decision for any product in 2022. We project this addition to our revenue channels as the silent leader in sales for 2023. While we focus much of our attention on getting Coils to Locs into every medical hair salon and cancer center across the country (approximately 300+), we will be running marketing campaigns that should drive significant D2C sales in 2023.

It is important to note as well that, unlike other ethnic groups, Black women actively wear wigs not just because of hair loss but because of the convenience of frequently changing their look based on their mood, or to protect their natural, (un-straightened hair) from damage.

## Opportunity

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

"African American customers have been driving the market growth for hair wigs and extensions in the US." ~Nielsen

**This means that the potential market in the U.S. alone is 24 million Black women.**

We will create marketing campaigns to increase sales and encourage additional sales. Examples include, "Change of season, change your hair" type of campaigns, video conversations with women who share their reasoning around having more than one wig, and "featured wig of the month" promotions.

## How We Meet the Demand

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

## Competitive Landscape

There are no players in the ethnically inspired wig sector with significant control on the industry. In fact, there are NO players in the medical hair salon and cancer center space AT ALL. This means that for women of color who experience hair loss and need a wig, there are limited options, if truly any at all.

Those wigs in the market that are ethnically inspired are found usually at select beauty supply stores, and they are notoriously of lesser quality.

| Company | Coils/Coils Selection | Quality Synthetic Wigs | Cultivate Community | Supports714/2022/2023 Plantationment | Vendor Education & Support | Direct to Consumer |
| --- | --- | --- | --- | --- | --- | --- |
| Major US Wig Distributors | ☒ | ☒ | ☒ | ☒ | ☒ | ☒ |
| Beauty Supply Stores | ☒ | ☒ | ☒ | ☒ | ☒ | ☒ |

Coils to Locs is filling a void that wig manufacturers have neglected to fill in the healthcare space. But our overall goal is to build a brand that reaches beyond cancer centers. Many black women, and men, lose their hair for various reasons that we talked about before. Through our continued work as black hair culture bloggers and influencers, we hope to spread the acceptance of wig-wearing for beyond the walls of hospitals across America. Let me introduce Pamela, my co-founder, and the woman leading the charge in increasing awareness around hair loss for women of color:

### Meet Dianne & Pamela

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

As a survivor of cancer myself, and as a long-time healthcare and health-tangential professionals, we feel particularly well suited to navigate this space that is often riddled with bureaucracy & 'it's who you know' vibes. Our very early traction at some of the top hospitals and medical hair salons in the industry speaks to this bunch. But we can't scale this company to what it deserves to grow into without a great team around us with skills that mirror our own.

Cheryl McCloud, our talented 'sister-cousin' has been with us since the beginning, and she will continue to be an integral team member during this raise and beyond. She will be dedicated to business development and partnerships across the B2B space. A powerhouse of communication, we couldn't be more thrilled to have Cheryl as part of the Coils and Locs team.

Howard Chan has also been with us since the beginning, as our technical expert, driving our website and presence forward. He will continue to support our mission.

With SO MANY requests from individuals across the country and world looking for high-quality synthetic wigs in a coily, textured style, we had to launch a direct-to-consumer option.

## The Growing Team

Cheryl McCloud

Howard Chan

As Chief Engagement Officer, Cheryl leverages a career in Communications, Public Relations and Marketing for small businesses, corporations, not-for-profits, healthcare, and government.

As our long-time Web Administrator, Howard is a multi talented professional who provides high level technical and administrative support.

### Independent Contractors

Marketing and PR Expertise: We work strategically with highly skilled independent contractors in the marketing and PR space

## Our Past & Present Advisors Round Out Our Team's Skills

## Past & Present Advisors

Evelyn Abayash
Honorability-based beyond
Director Network
Development
and Strategic Partnerships

Barnet Sherman
EDWARD
GROUP
Sr. Contributor:
FDMRS

John Maudlin
FAMILY CENTER
BUSINESS LAB
Owner, SCALE
Consulting

Tawson Wang
International Business
Development

## So... Where Are We Going Now?

First we will be launching our direct to consumer e-commerce platform. With our entrance into the B2B space, we will target both Black women experiencing all forms of medical hair loss and Black women interested in wearing wigs for aesthetic reasons. Our target market: a whopping 24 million Black women in the U.S. The percent of Black women experiencing medical hair loss in the U.S. alone is over 11 million.

We are also interested in increasing our revenue streams by offering related products in the next 12 months such as private label wig care products, scalp and hair products and fashion headscarves and turbans.

Our main priority over the next year is to grow our B2B placements. With the addition of a second business development professional, we will actively pursue partnerships with the 50+ confirmed cancer centers & 150+ medical hair salons that specialize in working with customers experiencing hair loss, as well as the additional 200+ "unlisted" medical hair salons across the nation.

We will also seek out partnerships with the major health insurance carriers such as Blue Cross Blue Shield, Tricare, United Health, and Kaiser Permanente in order to partner as an additional cancer resource for members of their healthcare plans.

There is an exciting opportunity to expand globally in the next 12 to 24 months, with appropriate funding. We would start with Canada where we have been in preliminary conversations with an organization that supports chemotherapy hair loss patients in the Canadian healthcare system. The organization is interested in supporting our expansion into the medical hair loss space in Canada in order to serve the needs of Black women experiencing chemotherapy hair loss as these ethnically inspired wigs are not available in the Canadian healthcare system either!

From there, we are already working in partnership with Massachusetts Expert Center MSBDC Network, who has partnered with us to provide a global market analysis to support our next steps into business expansion globally into markets identified as top markets for our ethnically inspired wigs including:

Nigeria, South Africa, United Kingdom, Brazil, France, among many others!

## I Am Joining Coils to Locs Full Time

I'm excited to finally announce that I have left my full time job at Mass General Hospital to lead Coils to Locs in a full-time capacity. The time is now or never. We are poised for a thrilling 2023, as we reach for milestones that take Coils to Locs towards that household name we know it will become. Even though the jump is risky, I need to direct all of my mental energy to Coils to Locs, participating fully in this growth!

## Growth Funding

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

- Salaries & Partnerships
- Fulfillment & Inventory
- D2C Platform Marketing

## How This Growth Curve Takes Its Shape

- Coils to Locs is offered at the majority of the Cancer Centers and medical hair salons across the country
- Launch the direct-to-consumer e-commerce site & push the brand to all US markets
- An international business plan is created for a 2024 rollout into the global market
- Acquire a partnership with the major healthcare insurance providers
- Increase our revenue streams to offer hair-tangential products

## Investments of $250+ = A Kimmie Cap!

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

**Be one of the first to get your Kimmie Cap wig hat!**
These fashionable braided or faux locs style "hats with hair" are named in honor of our sister, Kimberly, ("Kimmie"), our biggest CTL cheerleader. (She really loved these hats!)
**Rest in Love & Peace Kimmie**

Can't use your Kimmie Cap*? We will give your wig to a cancer resource organization that targets underserved cancer patients!

**When making your investment, please leave a note in the "Comments" section or email us:**
Wefunderwigdonation@coilstolocs.com

*Kimmie Caps will be delivered to all investors and/or donated 2-3 months after the close of this issue. (Important(s) to be announced shortly.)

## More Than Just a Wig

This business is about more than just wigs. It's about closing the healthcare disparity that wig manufacturers have overlooked for generations. It's about creating a brand of wigs that Black women feel confident & beautiful in. We've ALL been touched by a friend, relative, or coworker who has experienced chemotherapy and other medical hair loss. Join us in this journey ensuring that every woman has access to a wig that resembles the hair that she lost.

## Every woman deserves a wig that resembles the hair that she lost

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

CoilsToLocs.com
wefunder@coilstolocs.com

to
be introduced

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

# **Coils To Locs I (THE "SPV"),**
a series of Wefunder SPV, LLC, a Delaware limited
liability company (the "LLC")

# Subscription Agreement

**[INVESTMENT AMOUNT]**

**[INVESTMENT DATE]**

**Coils To Locs 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 **Coils to Locs, LLC (the "Company")**. By making an investment in the SPV through the Wefunder website, I understand and agree to the representations set forth below.

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

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

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

# Subscription Agreement

# SCOPE OF AGREEMENT AND INVESTOR ELIGIBILITY REPRESENTATIONS

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

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

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

INVESTOR'S REPRESENTATIONS AND COVENANTS

1. Investor's Review of Information and Investment Decision

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

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

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

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

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

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

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

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

2.1. The Investor is acquiring the Interest for its own account, for investment purposes only and not with an intent to resell or distribute the Interest (or any distributions received from the SPV in whole or in part), and the Investor agrees that it will not sell or otherwise transfer the Interest unless in compliance with Regulation Crowdfunding and other applicable securities laws, and with the terms and conditions of this Agreement.

2.2. The Investor's investment in the Interest is consistent with the investment purposes, objectives and cash flow requirements of the Investor and will not adversely affect the Investor's overall need for diversification and liquidity.

2.3. The Investor has all requisite power, authority and capacity to acquire and hold the Interest and to execute, deliver and comply with the terms of each of the instruments required to be executed and delivered by the Investor in connection with the Investor's subscription for the Interest, including without limitation this Subscription Agreement, and such execution, delivery and compliance does not conflict with, or constitute a default under, any instruments governing the Investor, any law, regulation or order, or any agreement or other undertaking to which the Investor is a party or by which the Investor may be bound. If the Investor is an entity, the person executing and delivering each of such instruments on behalf of the Investor has all requisite power, authority and capacity to execute and deliver such instruments, and, upon request by the SPV, will furnish to the SPV a true and correct copy of any instruments governing the Investor, including all amendments thereto. The signature on each of such instruments is genuine and each of such instruments constitutes a legal, valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms.

2.4. The Wefunder Parties are each hereby authorized and instructed to accept and execute any instructions in respect of the Interest given by the Investor in written or electronic form. The Wefunder Parties may rely conclusively upon and shall incur no liability in respect of any action taken 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;
f. 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**

**Coils To Locs 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 Coils to
Locs, LLC SECURITIES BY Coils To Locs I, A SERIES
OF WEFUNDER SPV, LLC, A DELAWARE LIMITED
LIABILITY COMPANY

Type of Security: Future Equity

Terms $2M valuation cap and 15% discount

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

https://www.sec.gov/cgi-bin/srch-edgar?text=%28FORM-
TYPE%3DC%2FA+or+FORM-
TYPE%3DC%29+and+CIK%3D0001962452&first=2016

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

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

# Coils to Locs, LLC

# SAFE
(Simple Agreement for Future Equity)

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

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

The "Post-Money Valuation Cap" is $2,000,000

The "Discount Rate" is 85%

See Section 2 for certain additional defined terms.

# 1. Events

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

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

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

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

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

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

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

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

(ii) On par with payments for other Safes and/or Preferred Units, and if the applicable Proceeds are insufficient to permit full payments to the Investor and such other Safes and/or Preferred Units,

the applicable Proceeds will be distributed pro rata to the Investor and such other Safes and/or Preferred Units in proportion to the full payments that would otherwise be due; and

(iii) Senior to payments for Common Units.

The Investor's right to receive its Conversion Amount is (A) on par with payments for Common Units and other Safes and/or Preferred Units who are also receiving Conversion Amounts or Proceeds on a similar as-converted to Common Units basis, and (B) junior to payments described in clauses (i) and (ii) above (in the latter case, to the extent such payments are Cash-Out Amounts or similar liquidation preferences).

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

2. Definitions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

- Excludes the Unissued Option Pool.

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

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

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

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

**'Promised Options'** means promised but ungranted Options that are the greater of those (i) promised pursuant to agreements or understandings made prior to the execution of, or in connection with, the term sheet or letter of intent for the Equity Financing or Liquidity Event, as applicable (or the initial closing of the Equity Financing or consummation of the Liquidity Event, if there is no term sheet or letter of intent), (ii) in the case of an Equity Financing, treated as outstanding Options in the calculation of the Standard Preferred Unit's price per unit, or (iii) in the case of a Liquidity Event, treated as outstanding Options in the calculation of the distribution of the Proceeds.

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

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

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

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

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

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

### 3. *Company Representations*

(a) The Company is a limited liability company duly organized, validly existing and in good standing under the laws of its state of limited liability company (the **'Company'**), hereby issues to the investor the right to certain formation, and has the power and authority to own, lease and operate its properties and carry on its business as now conducted.

(b) The execution, delivery and performance by the Company of this Safe is within the power of the Company and has been duly authorized by all necessary actions on the part of the Company (subject to section 3(d)). This Safe constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity. To its knowledge, the Company is not in violation of (i) its certificate of formation or operating agreement, (ii) any material statute, rule or regulation applicable to the Company or (iii) any material debt or contract to which the Company is a party or by which it is bound, where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably be expected to have a material adverse effect on the Company.

(c) The performance and consummation of the transactions contemplated by this Safe do not and will not: (i) violate any material judgment, statute, rule or regulation applicable to the Company; (ii) result in the acceleration of any material debt or contract to which the Company is a party or by which it is bound; or (iii) result in the creation or imposition of any lien on any property, asset or revenue of the Company or the suspension, forfeiture, or nonrenewal of any material permit, license or authorization applicable to the Company, its business or operations.

(d) No consents or approvals are required in connection with the performance of this Safe, other than: (i) the Company's corporate approvals; (ii) any qualifications or filings under applicable securities laws; and (iii) necessary corporate approvals for the authorization of Units issuable pursuant to Section 1.

(e) To its knowledge, the Company owns or possesses (or can obtain on commercially reasonable terms) sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other intellectual property rights necessary for its business as now conducted and as currently proposed to be conducted, without any conflict with, or infringement of the rights of, others.

### 4. *Investor Representations*

(a) The Investor has full legal capacity, power and authority to execute and deliver this Safe and to perform its obligations hereunder. This Safe constitutes valid and binding obligation of the investor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors' rights generally and general principles of equity.

(b) The Investor has been advised that this Safe and the underlying securities have not been registered under the Securities Act, or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Investor is purchasing this Safe and the securities to be acquired by the Investor hereunder for its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor has such knowledge and experience in financial and business matters that the Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment without impairing the Investor's financial condition and is able to bear the economic risk of such investment for an indefinite period of time.

# 5. Miscellaneous

(a) Any provision of this Safe may be amended, waived or modified by written consent of the Company and either (i) the Investor or (ii) the majority-in-interest of all then-outstanding Safes with the same "Post-Money Valuation Cap" and "Discount Rate" as this Safe (and Safes lacking one or both of such terms will be considered to be the same with respect to such term(s)), provided that with respect to clause (ii): (A) the Purchase Amount may not be amended, waived or modified in this manner, (B) the consent of the Investor and each holder of such Safes must be solicited (even if not obtained), and (C) such amendment, waiver or modification treats all such holders in the same manner. "Majority-in-interest" refers to the holders of the applicable group of Safes whose Safes have a total Purchase Amount greater than \(50\%\) of the total Purchase Amount of all of such applicable group of Safes.
(b) Any notice required or permitted by this Safe will be deemed sufficient when delivered personally or by overnight courier or sent by email to the relevant address listed on their Wefunder account, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party's address listed on their Wefunder account, as subsequently modified by written notice.
(c) The Investor is not entitled, as a holder of this Safe, to vote or be deemed a holder of Units for any purpose other than tax purposes, nor will anything in this Safe be construed to confer on the Investor, as such, any rights of a Company member or rights to vote for the election of directors or on any matter submitted to Company members, or to give or withhold consent to any corporate action or to receive notice of meetings, until units have been issued on the terms described in Section 1. However, if the Company pays a dividend on outstanding shares of Common Units (that is not payable in shares of Common Units) while this Safe is outstanding, the Company will pay the Dividend Amount to the Investor at the same time.
(d) Neither this Safe nor the rights in this Safe are transferable or assignable, by operation of law or otherwise, by either party without the prior written consent of the other; provided, however, that this Safe and/or its rights may be assigned without the Company's consent by the Investor (i) to the Investor's estate, heirs, executors, administrators, guardians and/or successors in the event of Investor's death or disability, or (ii) to any other entity who directly or indirectly, controls, is controlled by or is under common control with the Investor, including, without limitation, any general partner, managing member, officer or director of the Investor, or any venture capital fund now or hereafter existing which is controlled by one or more general partners or managing members of, or shares the same management company with, the Investor; and provided, further, that the Company may assign this Safe in whole, without the consent of the Investor, in connection with a reorganization to change the Company's domicile or convert the Company into a corporation.
(e) In the event any one or more of the provisions of this Safe is for any reason held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Safe operate or would prospectively operate to invalidate this Safe, then and in any such event, such provision(s) only will be deemed null and void and will not affect any other provision of this Safe and the remaining provisions of this Safe will remain operative and in full force and effect and will not be affected, prejudiced, or disturbed thereby.
(f) All rights and obligations hereunder will be governed by the laws of the State of Massachusetts, without regard to the conflicts of law provisions of such jurisdiction.
(g) The parties acknowledge and agree that for United States federal and state income tax purposes this Safe is, and at all times has been, intended to be characterized equity for all income tax purposes of . Accordingly, the parties agree to treat this Safe consistent with the foregoing intent for all United States federal and state income tax purposes (including, without limitation, on their respective tax returns or other informational statements).

(Signature page follows)

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

**COMPANY:**

Coils to Locs, LLC

By: *Founder Signature*

Name:

Title:

**INVESTOR:**

[INVESTOR NAME]

By: *Investor Signature*

Name: [INVESTOR NAME]

Title:

☐ Accredited Investor
☐ Unaccredited Investor

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

By:

Name:

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

# **Coils to Locs, LLC.** (the “Company”) a Massachusetts 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

Coils to Locs, LLC.

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’s 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 in order for them to be in accordance with accounting principles generally accepted in the United States of America.

Vince Mongio, CPA, CIA, CFE, MACC

*Vincenzo Mongio*

### Statement of Financial Position

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| ASSETS |  |  |
| Current Assets |  |  |
| Cash and Cash Equivalents | 60,675 | 28,448 |
| Accounts Receivable | 670 | - |
| Inventory | 9,552 | 7,770 |
| Total Current Assets | 70,897 | 36,218 |
| TOTAL ASSETS | 70,897 | 36,218 |
| LIABILITIES AND EQUITY |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Accounts Payable | - | 15 |
| Total Current Liabilities | - | 15 |
| Long-term Liabilities |  |  |
| Notes Payable | 15,000 | 20,000 |
| Total Long-Term Liabilities | 15,000 | 20,000 |
| TOTAL LIABILITIES | 15,000 | 20,015 |
| EQUITY |  |  |
| Member's Equity | 12,195 | 11,647 |
| Accumulated Deficit | 43,702 | 4,556 |
| Total Equity | 55,897 | 16,203 |
| TOTAL LIABILITIES AND EQUITY | 70,897 | 36,218 |

### Statement of Operations

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| Revenue | 29,364 | 11,469 |
| Cost of Revenue | 11,863 | 2,923 |
| Gross Profit | 17,501 | 8,546 |
| Operating Expenses |  |  |
| Advertising and Marketing | 6,269 | 351 |
| General and Administrative | 22,574 | 14,505 |
| Rent and Lease | 2,421 | 1,426 |
| Total Operating Expenses | 31,264 | 16,282 |
| Operating Income (loss) | (13,763) | (7,736) |
| Other Income |  |  |
| Other | 52,909 | 15,000 |
| Total Other Income | 52,909 | 15,000 |
| Provision for Income Tax | - | - |
| Net Income (loss) | 39,146 | 7,264 |

# **Statement of Cash Flows**

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2021 | 2020 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | 39,146 | 7,264 |
| Adjustments to reconcile Net Income to Net Cash provided by operations: |  |  |
| Accounts Payable | (15) | (4,264) |
| Inventory | (1,782) | (9,474) |
| Accounts Receivable | (670) | 595 |
| Total Adjustments to reconcile Net Income to Net Cash provided by operations: | (2,468) | (13,143) |
| Net Cash provided by (used in) Operating Activities | 36,679 | (5,879) |
| FINANCING ACTIVITIES |  |  |
| Notes Payable | (5,000) | 20,000 |
| Member's Equity | 549 | 11,647 |
| Net Cash provided by (used in) Financing Activities | (4,451) | 31,647 |
| Cash at the beginning of period | 38,493 | 12,726 |
| Net Cash increase (decrease) for period | 32,227 | 25,768 |
| Cash at end of period | 70,720 | 38,493 |

# **Statement of Changes in Member Equity**

|  | Member Capital $ Amount | Accumulated Deficit | Total Member Equity |
| --- | --- | --- | --- |
| Beginning Balance at 1/1/2020 | - | (2,708) | (2,708) |
| Capital Contributions | 11,647 | - | 11,647 |
| Net Income (Loss) | - | 7,264 | 7,264 |
| Ending Balance 12/31/2020 | 11,647 | 4,556 | 16,203 |
| Capital Contributions | 549 | - | 549 |
| Net Income (Loss) | - | 39,146 | 39,146 |
| Ending Balance 12/31/2021 | 12,195 | 43,702 | 55,897 |

# **Coils to Locs, LLC**  
**Notes to the Unaudited Financial Statements**  
**December 31st, 2021**  
**SUSD**

# **NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES**

Coils to Locs, LLC (“the Company”) was formed in Massachusetts on May 24th, 2019. Coils to Locs is a social impact, for-profit company, which sells culturally sensitive wigs for medical hair loss to cancer center hospitals and medical hair loss salons. The Company will soon launch a direct-to-consumer ecommerce site. The Company is earning revenues via B2B sales and will soon earn revenues via our B2C channel. The Company is located in Dorchester, Massachusetts. Our customers are located in the U.S. although there are plans for expansion outside of the U.S.

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 through 2 sources including product sales for business to business and product sales for business to customer.

For business-to-business product sales, the Company's primary performance obligation is the delivery of products, (wigs for medical hair loss), to hospitals and medical hair loss salons. Revenue is recognized at the time that the order is placed with a net payment of 10 days from the date of the invoice. Coincident with revenue recognition, the Company will establish a liability for expected returns and records an asset (and corresponding adjustment to cost of sales) for its right to recover products from customers on settling the refund liability. There have been no returns to date.

For business-to-customers product sales, the company's primary performance obligation is the delivery of products, (wigs) direct to consumer before the end of 2022 via an ecommerce website. Revenues will be recognized at the time that the order is placed. Coincident with revenue recognition, the Company will establish a liability for expected returns and records an asset (and corresponding adjustment to cost of sales) for its right to recover products from customers on settling the refund liability.

# 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

The Company did not have any equity-based compensation as of December 31st, 2021.

# 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

The Company entered into a loan agreement in the amount of $20,000. The loan accrues interest at 4% with a maturity date in 2025. The loan has monthly principal payments of $591. The balance of the loan was $15,000 as of December 31st, 2021.

Debt Principal Maturities 5
Years Subsequent to 2021

| Year | Amount |
| --- | --- |
| 2022 | $1,944 |
| 2023 | $4,667 |
| 2024 | $4,667 |
| 2025 | $2,722 |
| 2026 | - |
| Thereafter | - |

# NOTE 6 - EQUITY

The Company is a limited liability company wholly owned by two members.

# NOTE 7 - SUBSEQUENT EVENTS

The Company has evaluated events subsequent to December 31, 2021 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through September 30, 2022, the date these financial statements were available to be issued. No events require recognition or disclosure.

# NOTE 8 - RISKS AND UNCERTAINTIES

## *COVID-19*

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

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

Contact

www.linkedin.com/in/dianneaustin
(LinkedIn)
www.CoilsToLocs.com (Company)
www.NaturalHaircareNews.com
(Blog)

Top Skills

Diversity & Inclusion
Diversity Training
Cultural Diversity

Honors-Awards

Top 25 Influencers: The Pulse of HR
2018 Audre Lorde Spirit of Fire
Award
Everyday Amazing Healthcare
Professional
Roxbury Innovation Center Pitch
Competition Grand Prize Winner
Most Impactful Black Women in
Boston, 2021

Publications

Quick Fix HR For Small Businesses:
How To Find and Hire The Best
Employees, A Step-By-Step
"Employee Hiring Guide
How To Supervise: What Your Boss
Never Told You Before You Took
The Job

# Dianne Austin

CEO, Co-Founder, Coils to Locs | Invest: CoilstoLocs.com/Wefunder
Dorchester, Massachusetts, United States

Summary

I am the CEO and co-founder of the startup: Coils to Locs,
CoilstoLocs.com, LI: https://www.linkedin.com/in/coilstolocs/ which
addresses a healthcare disparity facing women of color touched by
medical related hair loss.

I created and co-manage Natural Hair Care News, (http://
www.NaturalHairCareNews.com), which addresses the socio/political
aspects of wearing natural (Afro textured) hair. Check out our
iTunes podcast at http://www.naturalhaircarenews.com/iTunes.

Specialties: Career and professional development, employee
relations, recruitment and diversity hiring, training, compensation,
organizational development, workforce diversity and HR consulting
to small businesses. Social media, internet marketing, writing.

Experience

Coils to Locs

CEO & Co-Founder

January 2017 - Present (6 years 1 month)

Dorchester, MA

Coils to Locs, is a hair prostheses (wigs for medical hair loss) supplier to
hospitals and hair loss salons. We specialize in ethnically inspired tightly
coiled and curly wigs for Black women experiencing hair loss. Connect on
Social Media:

FB: https://www.facebook.com/CoilsToLocs/

IG: https://www.instagram.com/coilstolocswigs/

Massachusetts General Hospital

12 years 8 months

Director Of Diversity, Inclusion & Engagement

August 2018 - October 2022 (4 years 3 months)

Boston

Page 1 of 3

Created/led diversity and inclusion activities that supported MGH's workforce development mission specific to internal and external pipeline development and community engagement. Consulted with diverse stakeholders at all levels on concerns ranging from diversity recruitment, retention, and engagement to sensitive issues through a diversity lens.

## Workforce Diversity Program Manager

March 2010 - August 2018 (8 years 6 months)

Helped to increase the level of diversity in the organization by working in partnership with recruiters, business partners, and other diverse stakeholders, with a particular focus on developing our internal diverse staff through targeted programming and other initiatives at the hospital.

Identified internal staff for leadership/career development opportunities and connected staff with opportunities to raise their profile within the organization.

Managed career development programming.

Community outreach and engagement with diverse organizations.

## Harvard University Graduate School of Education

Assistant Director of Human Resources

February 2000 - February 2010 (10 years 1 month)

Cambridge, Massachusetts

Provided indepth HR management consultation to new, mid, and senior level managers and staff in the areas of Employee Relations, Recruitment, Compensation, Training and Organizational Development.

Developed a series of staff colloquiums for the Dean's Office with a focus on career development for staff.

## Massachusetts General Hospital

H.R. Generalist

April 1995 - February 2000 (4 years 11 months)

Boston

Provided recruitment and employee relations support and consultation to a variety of managers both clinical and non-clinical.

## Massachusetts Eye and Ear Infirmary

HR Generalist

1987 - 1993 (6 years)

Page 2 of 3

Partnered with managers at all levels to provide recruitment and employee relations services.

## Education

Babson Black Women's Entrepreneurial Leadership (BWEL) Program

Entrepreneurship/Entrepreneurial Studies · (January 2021 - June 2021)

Emerson College

B.S., Communications

Boston University

Master of Science (M.S.) (on Hiatus-incomplete), Human Resources Management · (2014 - 2015)

The Partnership

Fellow · (2012 - 2012)

Harvard University

Certificate/Administrative Fellowship Program · (2001 - 2002)

Page 3 of 3

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

Contact

www.linkedin.com/in/
pamelashaddock (LinkedIn)
pamelashaddock.com (Personal)
www.naturalhaircarenews.com/
(Blog)
coilstolocs.com (Company)

Top Skills

Acting
Entertainment
Theatre

Honors-Awards

The 21 Startups to Watch in Boston
2021
2021 Small Business of the Year
2X Poise Grant Award Winner
Livestrong Solutions Grant Winner
Halcyon Incubator Fellow

# Pamela Shaddock

Co-Founder & COO, Coils to Locs | Actress | Halcyon Alum | Invest:
Coilstolocs.com/Wefunder
Quincy, Massachusetts, United States

Summary

I am co-founder and COO of Coils to Locs. Coils to Locs provides
coily, curly, ethnically inspired wigs in the cancer care and medical
hair loss space where highly textured hair wigs never existed before.
We are a for-profit, social impact, early stage start-up addressing
a healthcare disparity facing women of color touched by medical
related hair loss.

I am a SAG/AFTRA professional actress with 20+ years performing
in major film, TV and stage productions.

In the non-profit sector I served, for 8 years, as the Administrative
Coordinator for the Los Angeles Ronald McDonald House, a "home
away from home" for families to be near their critically ill children.

I've assisted in conflict resolution using role-play in corporate
environments for the Threshold Organization.

I cofounded the blog Natural Hair Care News. Natural Haircare News
addresses the socio/political aspects of wearing ones natural (Afro
textured) hair.

Experience

Coils to Locs

Co-Founder

October 2019 - Present (3 years 4 months)

Boston, Massachusetts, United States

Coils to Locs is a direct to hospital distributor of high quality coily, curly hair
prosthesis (wigs) for Black women or any woman with highly textured hair.
Coils to Locs is at the forefront of addressing an unrecognized health care
disparity which impacts Black women experiencing chemotherapy related
hair loss: the lack of coily, curly wigs that are available at cancer centers

Page 1 of 2

and medical hair loss salons in the U.S. that can be purchased with health insurance reimbursement.

## Halcyon

### Halcyon Fellow

February 2022 - Present (1 year)

Washington, District of Columbia, United States

Coils to Locs: Halcyon Incubator Cohort 16

## Independent Entertainment Professional

### Actor

August 1998 - Present (24 years 6 months)

Los Angeles

Extensive performing credits in Film, TV and Theatre, acting directly with such notables as Viola Davis, Sally Field, Glenn Close and Sir Ben Kingsley.

## Ronald McDonald House Charities of Southern California

### Administrative Coordinator

October 2013 - August 2021 (7 years 11 months)

## Education

### Adelphi University

BFA, Theatre Arts

### Emerson College

Drama and Dramatics/Theatre Arts, General

Page 2 of 2

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

Privileged and Confidential

# OPERATING AGREEMENT

OF

# COILS TO LOCS, LLC

THIS OPERATING AGREEMENT (this "Agreement") of Coils to Locs, LLC, a Massachusetts limited liability company (the "Company"), effective as of the 24th day of May, 2019, by and between Dianne Austin, Pamela Shaddock (collectively, the "Members," and individually, a "Member") and the Company.

WHEREAS, the Company was formed as a limited liability company on May 24, 2019 (the "Formation Date") by filing a certificate of organization (the "Certificate of Organization") with the Secretary of the Commonwealth of Massachusetts (the "Secretary of the Commonwealth") pursuant to and in accordance with the Massachusetts Limited Liability Company Act, as amended from time to time (the "Act"); and

WHEREAS, the Members and the Company wish to enter into this Agreement setting forth the terms and conditions governing the operation and management of the Company.

NOW, THEREFORE, the Members and the Company agree as follows:

# ARTICLE 1

# The Company

1.1 Formation. The Company was formed on the Formation Date in accordance with the Act by the filing of the Certificate of Organization with the Secretary of the Commonwealth. The rights and liabilities of the Members and the Company will be determined pursuant to this Agreement and, to the extent required by the Act, the Act. To the extent that the rights or obligations of the Members are different by reason of any provision of this Agreement than they would be in the absence of such provision, this Agreement will, to the extent permitted by the Act, control.
1.2 Name. The name of the Company shall be "Coils to Locs, LLC" and its business shall be carried on in such name with such variations and changes as the Members shall determine or deem necessary to comply with requirements of the jurisdictions in which the Company's operations are conducted.
1.3 Business Purpose. The general character of the business of the Company is to engage in any lawful business purpose or activity for which limited liability companies may be formed under the Act and to engage in any and all activities necessary or incidental thereto, including, without limitation, in the supply and distribution of medical wigs and distribution of beauty products.
1.4 Powers. The Company shall have and may exercise all the powers and privileges granted by the Act or by any other applicable law or by this Agreement,

ny-2237750

together with any powers incidental thereto, so far as such powers and privileges are necessary or convenient to the conduct, promotion or attainment of the business purposes or activities of the Company.

1.5 Registered Office. The address of the office in the Commonwealth of Massachusetts at which the Company will maintain its records as required by the Act shall be as set forth in the Certificate of Organization or subsequent filing with the Secretary of the Commonwealth. The Company may at any time change this address by making the appropriate filing with the Secretary of the Commonwealth.
1.6 Registered Agent. The name and street address of the Company's resident agent in the Commonwealth of Massachusetts shall be as set forth in the Certificate of Organization or subsequent filing with the Secretary of the Commonwealth. The Company may at any time change this information by making the appropriate filing with the Secretary of the Commonwealth.
1.7 Term. The term of the Company commenced on the Formation Date and shall continue until the Company is dissolved and terminated in accordance with this Agreement.

# ARTICLE 2

# The Members

2.1 The Members. The names and addresses of the Members are as follows:

| Name | Address |
| --- | --- |
| Dianne Austin | 1452 Dorchester Avenue, Suite 4, Dorchester, MA 02122 USA |
| Pamela Shaddock | 1452 Dorchester Avenue, Suite 4, Dorchester, MA 02122 USA |

2.2 Meetings. The Company shall not be required to hold meetings of the Members annually. Special meetings of the Members may be called by the Members unanimously. The Members may hold meetings at the Company's principal office or at such other place as the Member(s) calling the meeting may designate in the notice for such meeting.

2.3 Tax Representative. The Members hereby appoint Dianne Austin as the "partnership representative" (the "Tax Matters Representative") as provided in Section 6223(a) of the Internal Revenue Code of 1986, as amended (the "Code"). The Tax Matters Representative can be removed at any time by the unanimous vote of the Members, and shall resign if it is no longer a Member. In the event of the resignation or removal of the Tax Matters Representative, the Members shall select a replacement Tax Matters Representative by unanimous vote.

ny-2237750

2

2.4 Liability of the Members. All debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and the Members shall not be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Member.

2.5 Admission of New Members. One or more additional members may be admitted to the Company. Prior to the admission of any such additional members to the Company, the Members shall amend this Agreement or adopt a new operating agreement to make such changes as the Members shall determine to reflect the fact that the Company shall have such additional members that are bound by the Company's operating agreement. The Membership Interests of such newly admitted Member shall proportionately dilute the Membership Interests of the existing Members. Each additional member shall execute and deliver a supplement or counterpart to this Agreement, as necessary.

2.6 Withdrawal. A Member may withdraw from the Company only by the unanimous vote of the Members (excluding the withdrawing Member) upon sixty days' prior written notice to the Company and, upon the effective date of withdrawal, such withdrawing Member shall no longer be a Member and shall be deemed an assignee of its Membership Interest for all purposes until its Membership Interest is liquidated. A withdrawn Member shall have no right to any amount in liquidation of its Membership Interest until the dissolution and winding up of the Company or to any payment or distribution as a result of the withdrawal.

# ARTICLE 3
Management by the Members

3.1 Management by the Member. The Members shall have exclusive and complete authority and discretion to manage the operations and affairs of the Company and to make all decisions regarding the business, property and affairs of the Company. Decisions or actions taken by any Members in accordance with this Agreement shall constitute decisions or action by the Company and shall be binding on the Company. Each Member is authorized to execute and deliver any document on behalf of the Company and (ii) each Member has the authority to bind the Company.

3.2 Action by the Members. The Members may approve a matter or take any action at a meeting or without a meeting. Any action that is to be voted on, consented to, or approved by the Members may be taken at a meeting at which a quorum is present with the affirmative vote of the Member(s) holding not less than the minimum number of votes required pursuant to Section 3.3. Any action that is to be voted on, consented to, or approved by the Members may be taken without a meeting and without prior notice if a written consent or consents signed by the Member(s) holding not less than the minimum number of votes required pursuant to Section 3.3 are delivered to the Company at its principal office by hand or by certified or registered mail, return receipt requested within sixty days of the earliest dated consent delivered to the Company with respect to such action. A record shall be maintained by the Company of each such action taken by written consent.

ny-2237750

3

3.3 Votes Required. Subject to any other provision of this Agreement, requiring the vote, consent, or approval of a different percentage of the Membership Interests, without the unanimous vote of the Members entitled to vote thereon, the Company shall not, and shall note enter into any commitment to:

(a) Issue additional Membership Interests or other securities;

(b) Incur any indebtedness, pledge or grant liens on any assets, or guarantee, assume, endorse, or otherwise become responsible for the obligations of any other Person in excess of $1,000 in a single transaction or series of related transactions, or in excess of $3,000 in the aggregate at any time outstanding. "Person" means an individual, corporation, partnership, joint venture, limited liability company, governmental authority, unincorporated organization, trust, association or other entity;

(c) Make any loan or advance to, or a capital contribution or investment in, any Person in excess of $500;

(d) Enter into or effect any transaction or series of related transactions involving the purchase, lease, license, exchange, or other acquisition (including by merger, consolidation, sale of stock, or acquisition of assets) by the Company of any assets and/or equity interests of any Person, other than in the ordinary course of business consistent with past practice;

(e) Enter into or effect any transaction or series of related transactions involving the sale, lease, license, exchange, or other disposition (including by merger, consolidation, sale of stock, or sale of assets) by the Company of all or substantially all of the Company's assets; or

(f) Settle any lawsuit, action, dispute, or other proceeding or otherwise assume any liability or agree to the provision of any equitable relief by the Company.

3.4 Officers and Related Persons. The Members shall have the authority to appoint and terminate officers of the Company (each, an "Officer") and retain and terminate employees, agents and consultants of the Company and to delegate such duties to any such officers, employees, agents and consultants as the Member deems appropriate, including the power, acting individually or jointly, to represent and bind the Company in all matters, in accordance with the scope of their respective duties. The Members may assign titles to particular officers. Unless the Members otherwise decide, if the title is one commonly used for officers of a business corporation formed under the applicable corporation laws of the Commonwealth of Massachusetts, the assignment of such title shall constitute the delegation to such officer of the authority and duties that are normally associated with that office, subject to any specific delegation of authority and duties made to such officer by the Members pursuant to the first sentence of this Section 3.4. Any number of offices may be held by the same individual and all shall be deemed authorized signatories of the Company. The salaries or other compensation, if any, of the officers and agents of the Company shall be fixed from time to time by the Members.

ny-2237750

4

# ARTICLE 4

# Capital Structure and Contributions

4.1 Membership Interests. The Members are deemed to own Membership Interests in the amounts set forth opposite such Member's name on Exhibit A attached hereto. "Membership Interests" shall be stated as a percentage as provided on Exhibit A and means a Member's entire interest in the Company, including all economic rights, voting rights, control rights, and rights granted under applicable law and any other such rights or privileges that the Member may enjoy by virtue of being a member of the Company.

4.2 Capital Contributions. The amounts of contributions, in the form of cash, property, services or a promissory note or other obligation, by the Members to the Company (as such amounts may be amended from time to time, the "Capital Contributions"), if any, are set out in Exhibit A. No Member shall be entitled to receive any interest on its Capital Contributions or Capital Account (as defined below).

4.3 Additional Capital Contributions. The Members may, but shall not be obligated to, make additional capital contributions to the Company on such terms and conditions as the Members may determine by unanimous vote ("Additional Capital Contribution"). In the event that an Additional Capital Contribution is to be made to the Company pursuant to this Section 4.3, each Member shall be given notice ("Contribution Notice") specifying the amount of Additional Capital Contributions requested, their proposed uses, and the terms under which such Additional Capital Contributions are to be made. Each Member shall have the right, but not the obligation, to make a voluntary Additional Capital Contribution with an amount not to exceed its pro rata portion of the amount requested in the Contribution Notice, in proportion to their respective Membership Interests. To the extent a Member opts to not make an Additional Capital Contribution, such Member's Membership Interests will be diluted, proportionately.

4.4 Capital Accounts. A separate capital account ("Capital Account") shall be maintained for each Member in accordance with applicable regulations under the Code. Each Capital Account shall be (a) credited the amount of any cash or the net fair market value of any property actually contributed by such Member to the capital of the Company and such Member's share of the net profits of the Company and of any items in the nature of income or gain separately allocated to the Members; and (b) debited the amount of any cash and the net fair market value of any property distributed to such Member and such Member's share of the net losses of the Company and of any items in the nature of losses or deductions separately allocated to the Members. If any Member shall have a deficit balance in its Capital Account, such Member shall have no obligation, during the term of the Company or upon dissolution or liquidation thereof, to restore such negative balance or make any capital contributions to the Company by reason thereof, except as may be required by applicable law or in respect of any negative balance resulting from such Member's withdrawal of capital or dissolution in contravention of this Agreement. For purposes of maintaining the Members' Capital Accounts, profits and losses shall be determined in accordance with Treasury Regulations Section 1.704-1(b). The Capital Accounts shall be adjusted by the Members upon the occurrence of an event described in

ny-2237750

5

Treasury Regulations Section 1.704-1(b)(2)(iv)(f)(5) in the manner described in Treasury Regulations Section 1.704-1(b)(2)(iv)(f)(5) and (g) if the Members determine that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members. "Treasury Regulations" means the final or temporary regulations issued by the United States Department of Treasury pursuant to its authority under the Code, and any successor regulations.

4.5 Return of Contributions. The Capital Contributions of each Member is to be returned to such Member only upon the termination and liquidation of the Company, but Capital Contributions may be returned prior to such time if agreed upon by all Members.

# ARTICLE 5
Profits, Losses and Distributions

5.1 Profits and Losses. For financial accounting and tax purposes, the Company's net profits or net losses ("Profits and Losses") shall be determined for each Fiscal Year. "Fiscal Year" means the calendar year, unless the Company is required or elects to have a taxable year other than the calendar year, in which case Fiscal Year shall be the period that conforms to its taxable year.
5.2 Allocation of Profits and Losses. The Profits and Losses for each Fiscal Year will be allocated entirely among the Members pro rata in accordance with their Membership Interests.
(a) Notwithstanding any other provision of this Agreement, "partner nonrecourse deductions" (as defined in Treasury Regulations Section 1.704-2(i)), if any, of the Company shall be allocated for each Fiscal Year to the Member that bears the economic risk of loss within the meaning of Treasury Regulations Section 1.704-2(i) and "nonrecourse deductions" (as defined in Treasury Regulations Section 1.704-2(b)) and "excess nonrecourse liabilities" (as defined in Treasury Regulations Section 1.752-3(a)), if any, shall be allocated to and among the Members in accordance with their Membership Interests.
(b) This Agreement shall be deemed to include "qualified income offset," "minimum gain chargeback" and "partner nonrecourse debt minimum gain chargeback" provisions within the meaning of Treasury Regulations under Section 704(b) of the Code.
(c) All items of income, gain, loss, deduction and credit of the Company shall be allocated among the Members for federal, state and local income tax purposes consistent with the manner that the corresponding items are allocated among the Members pursuant to this Section 5.2, except as may otherwise be provided herein or under the Code.
5.3 Distributions. Distributions of available cash shall be made to the Members at the times and in the aggregate amounts determined by the unanimous vote of the Members. The distributions of the Company shall be allocated pro rata in accordance with each Member's respective Membership Interests. A Member, regardless of the nature

ny-2237750

6

of his or her Capital Contribution to the Company, shall have no right to demand or receive any distribution from the Company in any form other than cash. The Company may, at any time, and from time to time, make distributions in kind to the Members. If any assets of the Company are distributed in kind, such assets shall be distributed on the basis of their fair market value as determined by the Members.

5.4 Tax "Gross-Up" Distributions. If requested by a Member and approved by the unanimous vote of the Members, such Member may cause the Company to distribute cash to the Members in an amount equal to the sum of: (a) the product of (i) the Company's net taxable ordinary income and net taxable short-term capital gain allocated to such Member for such ended Fiscal Year multiplied by (ii) the highest marginal U.S. federal ordinary income tax rate applicable to individuals plus (b) the product of (i) the Company's net taxable long-term capital gain allocated to such Member for such ended Fiscal Year multiplied by (ii) the highest U.S. federal long-term capital gains tax rate applicable to individuals; provided, however, that no such distribution shall be made to the extent that funds are not reasonably available for such distribution by virtue of applicable law, contractual obligation or current or future needs of the Company. Such distribution to each Member may occur on a quarterly basis, but shall be made no later than the first day of the fourth month following the end of the Fiscal Year of the Company with respect to which such distribution is made. Distributions made pursuant to this Section 5.4 shall be applied against amounts otherwise distributable to the Members pursuant to Section 5.3.

### ARTICLE 6

#### Dissolution

6.1 Events of Dissolution. The Company shall be dissolved and its affairs wound up upon the occurrence of any of the following events:

(a) The Members unanimously vote for dissolution;

(b) The sale, exchange, involuntary conversion, or other disposition or transfer of all or substantially all the assets of the Company; or

(c) Any other event or circumstance giving rise to the dissolution of the Company under Section 43 of the Act, unless the Company's existence is continued pursuant to the Act.

For the avoidance of doubt, the Company shall not dissolve upon the bankruptcy or insolvency of any Member or any assignee, and any Members or any assignee shall not cease to be a Member upon the bankruptcy or insolvency of the Member or assignee.

6.2 Effect of Dissolution. In the event of dissolution, the Company shall conduct only such activities as are necessary to wind up its affairs (including the sale of the assets of the Company in an orderly manner), and the assets of the Company shall be distributed in the following order of priority:

(a) First, to creditors, to the extent otherwise permitted by law, in

ny-2237750

7

satisfaction of liabilities of the Company (whether by payment or the making of reasonable provision for payment thereof);

(b) Second, to Members and former Members in satisfaction of liabilities for distributions;
(c) Third, to the establishment of and additions to reserves that are determined by the Members to be reasonably necessary for any contingent unforeseen liabilities or obligations of the Company; and
(d) Fourth, to the Members, on a pro rata basis in accordance with the positive balances in their respective Capital Accounts, as determined after taking into account all Capital Account adjustments for the taxable year of the Company in which the liquidation occurs.
6.3 Certificate of Cancellation. Upon the completion of the winding up of the Company, the Member shall file a certificate of cancellation in accordance with the Act.

### ARTICLE 7
Transfers

7.1 General Restrictions on Transfer. Except as permitted pursuant to Section 7.3, no Member shall Transfer all or any portion of its Membership Interest in the Company, except with the written consent of all Members. "Transfer" means to sell, transfer, assign, gift, pledge, encumber, hypothecate, or similarly dispose of, directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, or to enter into any contract, option, or other arrangement or understanding with respect to the sale, transfer, assignment, gift, pledge, encumbrance, hypothecation, or similar disposition of, any Membership Interests or any interest (including a beneficial interest) therein. "Transfer" when used as a noun shall have a correlative meaning. "Transferor" and "Transferee" mean a Person that makes or receives a Transfer, respectively.
7.2 Prohibited Transfers. Notwithstanding any other provision of this Agreement (including Section 7.3), each Member agrees that it will not Transfer all or any portion of its Membership Interest in the Company, and the Company agrees that it shall not issue any Membership Interests:
(a) except as permitted under the Securities Act of 1933 (the "Securities Act") and other applicable federal or state securities or blue sky laws;
(b) if such Transfer or issuance would cause the Company to be considered a "publicly traded partnership" under Section 7704(b) of the Code within the meaning of Treasury Regulations Section 1.7704-1(h)(1)(ii), including the look-through rule in Treasury Regulations Section 1.7704-1(h)(3);
(c) if such Transfer or issuance would affect the Company's existence or qualification as a limited liability company under the Act;

ny-2237750

8

(d) if such Transfer or issuance would cause the Company to lose its status as a partnership for federal income tax purposes;
(e) if such Transfer or issuance would cause the Company to be required to register as an investment company under the Investment Company Act of 1940, as amended; or
(f) if such Transfer or issuance would cause the assets of the Company to be deemed "Plan Assets" as defined under the Employee Retirement Income Security Act of 1974 or its accompanying regulations or result in any "prohibited transaction" thereunder involving the Company.

7.3 Permitted Transfers. The provisions of Section 7.1 shall not apply to any Transfer by any Member of all or any portion of its Membership Interest to any of the following:

(a) Any affiliate of such Member; or

(b) With respect to a Member that is an individual: (i) such Member's spouse, parent, siblings, descendants (including adoptive relationships and stepchildren), and the spouses of each such natural persons (collectively, "Family Members"); (ii) a trust under which the distribution of such Membership Interest may be made only to such Member and/or any Family Member of such Member; (iii) a charitable remainder trust, the income from which will be paid to such Member during his or her life; (iv) a corporation, partnership, or limited liability company, the shareholders, partners, or members of which are only such Member and/or Family Members of such Member; or (v) such Member's executors, administrators, testamentary trustees, legatees, or beneficiaries, by will or the laws of intestate succession.

7.4 Effect of Prohibited Transfers. Any Transfer or attempted Transfer of any Membership Interest in violation of this Agreement shall be null and void, no such Transfer shall be recorded on the Company's books and the purported Transferee in any such Transfer shall not be treated (and the purported Transferor shall continue to be treated) as the owner of such Membership Interest for all purposes of this Agreement.

7.5 Effect of Permitted Transfers. For the avoidance of doubt, any Transfer of a Membership Interest permitted by this Agreement shall be deemed a sale, transfer, assignment, or other disposal of such Membership Interest in its entirety as intended by the parties to such Transfer, and shall not be deemed a sale, transfer, assignment, or other disposal of any less than all of the rights and benefits described in the definition of the term "Membership Interest" unless otherwise explicitly agreed to by the parties to such Transfer. A Transferee shall be bound by all the obligations of the Members under this Agreement, and have all the rights and powers of the assigning Member under this Agreement, including, without limitation, all economic rights, voting rights, control rights, and rights granted under applicable law, in each case, without the need for further consents or actions of any other Person, the Company, or Member.

ny-2237750

9

# ARTICLE 8
Exculpation and Indemnification

8.1 Exculpation. Notwithstanding any other provisions of this Agreement, whether express or implied, or any obligation or duty at law or in equity, neither the Members, nor any officers, directors, managers, stockholders, members, partners, employees, affiliates, representatives or agents of the Members, or any officer, employee, representative or agent of the Company (individually, a "Covered Person" and, collectively, the "Covered Persons") shall be liable to the Company or any other person for any act or omission (in relation to the Company, its property or the conduct of its business or affairs, this Agreement, any related document or any transaction or investment contemplated hereby or thereby) taken or omitted by a Covered Person in the reasonable belief that such act or omission is in or is not contrary to the best interests of the Company and is within the scope of authority granted to such Covered Person by this Agreement.

8.2 Indemnification. To the fullest extent permitted by law, the Company shall indemnify and hold harmless each Member from and against any and all losses, claims, demands, liabilities, expenses (including attorneys' fees), judgments, fines, settlements and other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative ("Claims"), in which the Member may be involved, or threatened to be involved, as a party or otherwise, by reason of any act or omission or alleged acts or omissions (whether or not constituting negligence or gross negligence) performed or omitted by the Member on behalf of the Company and within the scope of the authority granted to such Member. A Member shall not be entitled to indemnification under this Section 8.2 with respect to (a) any Claim with respect to which such Member has engaged in fraud or willful misconduct or (b) any Claim initiated by such Member unless such Claim (or part thereof) (i) was brought to enforce such Member's rights to indemnification hereunder or (ii) was authorized or consented to by all Members. Expenses incurred by a Member in defending any Claim shall be paid by the Company in advance of the final disposition of such Claim so long as the Member agrees in writing to repay, or cause to be repaid, such amount if it shall be ultimately determined that such Member is not entitled to be indemnified by the Company as authorized by this Section 8.2. For the avoidance of doubt, any advancement, reimbursement and indemnification under this Section 8.2 shall be provided out of and to the extent of Company assets only, and neither the Members nor any other person shall have any personal liability on account thereof.

8.3 Exculpation and Indemnification Amendments. Any repeal or modification of this Article 8 by the Members shall not adversely affect any rights of any Member pursuant to this Article 8, including the right to indemnification and to the advancement of expenses of a Member existing at the time of such repeal or modification with respect to any acts or omissions occurring prior to such repeal or modification.

ny-2237750

10

# ARTICLE 9

# Miscellaneous

9.1 Certification. The Company may, but shall not be required to, issue certificates evidencing Membership Interests in the Company.

9.2 Books and Records. The Company shall keep or cause to be kept complete and accurate books and records of the Company, using the same methods of accounting which are used in preparing the federal income tax returns of the Company to the extent applicable and otherwise in accordance with generally accepted accounting principles consistently applied. Such books and records shall be maintained and be available, in addition to any documents and information required to be kept under the Act, at its principal office, for examination and copying by any Member, or his or her duly authorized representative, at his or her reasonable request and at his or her expense during ordinary business hours.

9.3 Tax Treatment. In accordance with the Code Section 704(c) and the Treasury Regulations promulgated under Code Section 704(c), income, gain, loss and deduction with respect to any property contributed in-kind to the Company as an Additional Capital Contribution, and with respect to any property that is revalued on the books of the Company will be allocated, solely for U.S. federal income tax purposes, to the Members so as to take into account any variation between the tax basis of such contributed or revalued property and such contributed or revalued property's fair market value at the time of contribution or revaluation. Any elections or decisions related to the method or manner in which allocations of income, gain, loss and deduction are made pursuant to the Code Section 704(c), or the Treasury Regulations promulgated under the Code Section 704(c), will be made by the Members. Except as otherwise provided in this Agreement, all items of income, gain, loss or deduction, and any other allocations not otherwise provided for shall be divided among the Members in the same proportions as they share Profits and Losses, as the case may be, in the Members discretion.

9.4 Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand; (b) when received by the addressee if sent by a nationally recognized overnight courier; (c) on the date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following address (or at such other address for a party as shall be specified in a notice given in accordance with this Section 9.4):

If to the Company:

1452 Dorchester Avenue

Suite 4

Dorchester, MA 02122 USA

Email: info@coilstolocs.com

ny-2237750

11

Attention: Dianne Austin

If to a Member:

To such Member's respective mailing address, fax number, or email address, as set forth on Exhibit A.

9.5 Amendments. Amendments to this Agreement and to the Certificate of Organization shall be approved in writing by the unanimous vote of the Members. An amendment shall become effective as of the date specified in the approval or if none is specified as of the date of such approval or as otherwise provided in the Act.
9.6 Successors and Assigns. Subject to the restrictions on transfers set forth herein, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and permitted assigns. None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditor of any Member (including any Member acting in his or her capacity as a creditor of the Company).
9.7 No Waiver. The failure of any Member to insist upon strict performance of a covenant hereunder or of any obligation hereunder, irrespective of the length of time for which such failure continues, shall not be a waiver of such Member's right to demand strict compliance in the future. No consent or waiver, expressed or implied, to or of any breach or default in the performance of any obligation hereunder, shall constitute a consent or waiver to or of any other breach or default in the performance of the same or any other obligation hereunder.
9.8 Creditors. None of the provisions of this Agreement shall be for the benefit of, or enforceable by, any creditor of any Member or of the Company, other than a Member that is such a creditor of the Company in his, her or its capacity as a Member.
9.9 Severability. If any provision of this Agreement is held to be invalid or unenforceable for any reason, such provision shall be ineffective to the extent of such invalidity or unenforceability; provided, however, that the remaining provisions will continue in full force without being impaired or invalidated in any way unless such invalid or unenforceable provision or clause shall be so significant as to materially affect the expectations of the Members regarding this Agreement. Otherwise, any invalid or unenforceable provision shall be replaced by the Members with a valid provision which most closely approximates the intent and economic effect of the invalid or unenforceable provision.

ny-2237750

12

9.10 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts without regard to the principles of conflicts of laws thereof. The parties hereby agree that any suit, action, or proceeding based on any matter arising out of or in connection with this Agreement or the transactions contemplated hereby shall be brought in the federal courts of the United States of America or the courts of the State of Massachusetts, in each case located in the City of Boston and County of Suffolk. Each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action, or proceeding.

9.11 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall be deemed to be one and the same agreement.

9.12 Entire Agreement. This Agreement, together with the Certificate of Organization and all related exhibits and schedules, constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter.

[Signature page follows]

ny-2237750

13

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

COMPANY:

COILS TO LOCS, LLC

By: Dianne Austin, its member

By: Dianne Austin

Name: Dianne Austin

MEMBERS:

By: Dianne Austin

Name: Dianne Austin

By: Pamela Shaddock

Name: Pamela Shaddock

[Signature page to Limited Liability Company Agreement of Coils to Locs, LLC]

ny-2237750

## Exhibit A

## Membership Interests

As of September, 18, 2022

| Member | Contributions | Membership Interest | Address |
| --- | --- | --- | --- |
| DIANNE AUSTIN | $12,195 | 50% | Coils to Locs 1452 Dorchester Avenue, Suite 4, Dorchester, MA 02122 USA Email: daustin@coilstolocs.com Attention: Dianne Austin |
| PAMELA SHADDOCK | $0 | 50% | Coils to Locs 1452 Dorchester Avenue, Suite 4, Dorchester, MA 02122 USA Email: pshaddock@coilstolocs.com Attention: Pamela Shaddock |

ny-2237750

[Exhibit A to Limited Liability Company Agreement of Coils to Locs, LLC]

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Coils to Locs, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** MA

**Date of Organization:** 05-24-2019

**Physical Address:** 1452 Dorchester Ave., 4th fl, Dorchester, MA, 02122

**Issuer Website:** https://coilstolocs.com/

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

**Intermediary Name:** Wefunder Portal LLC

**Intermediary CIK:** 0001670254

**Intermediary File Number:** 007-00033

**Intermediary CRD Number:** 283503

### Offering Information

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

**Financial Interest in Issuer:** No

**Type of Security Offered:** Other

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

**Number of Securities Offered:** 50000

**Price per Security:** $1.00

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

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

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

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

**Maximum Offering Amount:** $250,000.00

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

### Annual Report Disclosure Requirements

**Current Number of Employees:** 2

**Total Assets (Most Recent Fiscal Year):** $70,897.00

**Total Assets (Prior Fiscal Year):** $36,218.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $60,675.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $28,448.00

**Accounts Receivable (Most Recent Fiscal Year):** $670.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

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

**Short-Term Debt (Prior Fiscal Year):** $15.00

**Long-Term Debt (Most Recent Fiscal Year):** $15,000.00

**Long-Term Debt (Prior Fiscal Year):** $20,000.00

**Revenues/Sales (Most Recent Fiscal Year):** $29,364.00

**Revenues/Sales (Prior Fiscal Year):** $11,469.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $11,863.00

**Cost of Goods Sold (Prior Fiscal Year):** $2,923.00

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

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

**Net Income (Most Recent Fiscal Year):** $39,146.00

**Net Income (Prior Fiscal Year):** $7,264.00

**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:** Coils to Locs, LLC

**Signature:** Dianne Shaddock Austin

**Title:** CEO and Co-Founder

---

**Signature:** Pamela Shaddock

**Title:** Co-founder and COO

**Date:** 01-17-2023

---

**Signature:** Dianne Shaddock Austin

**Title:** CEO and Co-Founder

**Date:** 01-17-2023