[sheet: Closing Checklist]

[sheet: Closing Checklist]
Item No. | Document / Deliverable | Description / Notes | Responsible Party | Due Date | Completion Date | Status
CLOSING CHECKLIST
Matter: Brightfield Cloud Services Inc. — Post-Money SAFE Round
C&H Matter No.: 1042-00002
Closing Date: April 15, 2022
Prepared by: Christy Bauer, Calderwood & Harkness LLP
Last Updated: April 15, 2022
A. TRANSACTION DOCUMENTS
1 | Post-Money SAFE Instrument (Valuation Cap: $12,000,000; No discount) — Form | Execution-ready form of Post-Money SAFE between Brightfield Cloud Services Inc. and each Purchaser. MFN provision included. Governed by Delaware law. | Calderwood & Harkness LLP / Christy Bauer | 2022-04-15 | 2022-04-15 | Complete
1.1 | SAFE — Lorraine Chastain (Individual) | Purchase Amount: $500,000. Executed counterpart. | BCS (Devin Mallory) / Lorraine Chastain | 2022-04-15 | 2022-04-15 | Complete
1.2 | SAFE — Marshall Huang / Jade Peak Ventures LLC | Purchase Amount: $400,000. Executed counterpart. Jade Peak Ventures LLC is a Texas single-member LLC. | BCS (Devin Mallory) / Marshall Huang | 2022-04-15 | 2022-04-15 | Complete
1.3 | SAFE — Dr. Nneka Adeyemi-Foster / Ariel Crest Capital LLC | Purchase Amount: $350,000. Executed counterpart. Ariel Crest Capital LLC is a Delaware single-member LLC. | BCS (Devin Mallory) / Dr. Nneka Adeyemi-Foster | 2022-04-15 | 2022-04-15 | Complete
1.4 | SAFE — Samuel Kittridge (Individual) | Purchase Amount: $300,000. Executed counterpart. | BCS (Devin Mallory) / Samuel Kittridge | 2022-04-15 | 2022-04-15 | Complete
1.5 | SAFE — Renata Dobrynin / Volkov Bridge Holdings LLC | Purchase Amount: $300,000. Executed counterpart. Volkov Bridge Holdings LLC is a New York single-member LLC. | BCS (Devin Mallory) / Renata Dobrynin | 2022-04-15 | 2022-04-15 | Complete
2 | Pro Rata Rights Side Letter — Form | Grants pro rata participation rights in next Equity Financing for Major Purchasers (investors committing ≥ $350,000). Governed by Delaware law. | Calderwood & Harkness LLP / Christy Bauer | 2022-04-15 | 2022-04-15 | Complete
2.1 | Pro Rata Side Letter — Lorraine Chastain | Commitment: $500,000. Qualifies as Major Purchaser. | BCS (Devin Mallory) / Lorraine Chastain | 2022-04-15 | 2022-04-15 | Complete
2.2 | Pro Rata Side Letter — Marshall Huang / Jade Peak Ventures LLC | Commitment: $400,000. Qualifies as Major Purchaser. | BCS (Devin Mallory) / Marshall Huang | 2022-04-15 | 2022-04-15 | Complete
2.3 | Pro Rata Side Letter — Dr. Nneka Adeyemi-Foster / Ariel Crest Capital LLC | Commitment: $350,000. Qualifies as Major Purchaser. | BCS (Devin Mallory) / Dr. Nneka Adeyemi-Foster | 2022-04-15 | 2022-04-15 | Complete
B. CORPORATE AUTHORIZATIONS & CERTIFICATES
3 | Action by Unanimous Written Consent of the Board of Directors | Authorizes issuance of SAFEs (aggregate $1,850,000 at $12M post-money valuation cap), approves forms of SAFE and Pro Rata Side Letter, authorizes CEO to execute all transaction documents, file Form D with SEC, and state notice filings in TX, CA, NY under Rule 506(b). Signed by all three directors: Devin Mallory, Priya Raghavan, Tomás Guerrero-Vidal. | BCS / All Directors | 2022-04-04 | 2022-04-04 | Complete
4 | Secretary's Certificate | Executed by Tomás Guerrero-Vidal as Secretary of BCS, dated April 15, 2022. Certifies attached copies of: (a) Certificate of Incorporation (filed September 14, 2021, DE SOS, File No. 6198274); (b) Bylaws; (c) Board Written Consent dated April 4, 2022. Confirms good standing in Delaware and qualification to do business in Texas (TX SOS Filing No. 804217635). Certifies incumbency and authority of Devin Mallory as CEO. | BCS (Tomás Guerrero-Vidal) | 2022-04-15 | 2022-04-15 | Complete
4.1 | Attachment: Certificate of Incorporation | As filed with Delaware Secretary of State on September 14, 2021. Authorized capital: 10,000,000 shares of Common Stock. | BCS | 2022-04-15 | 2022-04-15 | Complete
4.2 | Attachment: Bylaws | Current bylaws of BCS. | BCS | 2022-04-15 | 2022-04-15 | Complete
4.3 | Attachment: Board Written Consent (April 4, 2022) | Copy attached to Secretary's Certificate. | BCS | 2022-04-15 | 2022-04-15 | Complete
5 | Disclosure Schedule / Company Representations | Supplemental representations and disclosures by BCS to investors covering capitalization, IP ownership, material contracts, litigation, etc. | Calderwood & Harkness LLP / Christy Bauer | 2022-03-28 | 2022-03-28 | Complete
6 | Capitalization Table (Pre- and Post-SAFE) | Internal memo and working spreadsheet. Pre-closing: 7,500,000 shares outstanding (Mallory 3,750,000 / 50%; Raghavan 2,250,000 / 30%; Guerrero-Vidal 1,500,000 / 20%). No option pool. Post-SAFE: aggregate SAFE Percent 15.4167%; implied fully-diluted shares ~8,866,995; implied SAFE conversion shares ~1,366,995. Delivered to Holloway, Fenn & Archer LLP and BCS on March 21, 2022. | Calderwood & Harkness LLP / Christy Bauer | 2022-03-21 | 2022-03-21 | Complete
C. FOUNDER DELIVERABLES
7 | Founder IP Assignment Confirmations | Short-form confirmation from each co-founder that prior Confidential Information and Invention Assignment Agreement (executed September 14, 2021, with Restricted Stock Purchase Agreements) remains in full force and effect, and all IP (including BrightWatch platform and proprietary IoT sensor hardware designs) has been duly assigned to BCS. | Calderwood & Harkness LLP / Christy Bauer; Founders | 2022-04-08 | 2022-04-08 | Complete
7.1 | IP Assignment Confirmation — Devin Mallory (CEO & Co-Founder) | Executed counterpart dated April 8, 2022. | Devin Mallory | 2022-04-08 | 2022-04-08 | Complete
7.2 | IP Assignment Confirmation — Priya Raghavan (CTO & Co-Founder) | Executed counterpart dated April 8, 2022. | Priya Raghavan | 2022-04-08 | 2022-04-08 | Complete
7.3 | IP Assignment Confirmation — Tomás Guerrero-Vidal (COO & Co-Founder) | Executed counterpart dated April 8, 2022. | Tomás Guerrero-Vidal | 2022-04-08 | 2022-04-08 | Complete
D. INVESTOR DELIVERABLES
8 | Accredited Investor Questionnaires | Completed by each investor confirming status as accredited investor under Rule 501(a) of Regulation D. Required for Rule 506(b) exemption under Section 4(a)(2) of the Securities Act of 1933. | Holloway, Fenn & Archer LLP (Diana Whitford) / Each Investor | 2022-04-15 | 2022-04-15 | Complete
8.1 | Accredited Investor Questionnaire — Lorraine Chastain | Austin, TX. Individual investor. | Lorraine Chastain | 2022-04-15 | 2022-04-15 | Complete
8.2 | Accredited Investor Questionnaire — Marshall Huang / Jade Peak Ventures LLC | Houston, TX. | Marshall Huang | 2022-04-15 | 2022-04-15 | Complete
8.3 | Accredited Investor Questionnaire — Dr. Nneka Adeyemi-Foster / Ariel Crest Capital LLC | Dallas, TX. | Dr. Nneka Adeyemi-Foster | 2022-04-15 | 2022-04-15 | Complete
8.4 | Accredited Investor Questionnaire — Samuel Kittridge | San Francisco, CA. Individual investor. | Samuel Kittridge | 2022-04-15 | 2022-04-15 | Complete
8.5 | Accredited Investor Questionnaire — Renata Dobrynin / Volkov Bridge Holdings LLC | New York, NY. | Renata Dobrynin | 2022-04-15 | 2022-04-15 | Complete
E. WIRE TRANSFERS & FUNDING
9 | Wire Transfer Confirmations — SAFE Purchase Amounts | Aggregate funding of $1,850,000 to Pinehart National Bank, 3200 South Lamar Boulevard, Austin, TX 78704. BCS operating account ending x4718; ABA routing number 111-907-244. | Each Investor / Pinehart National Bank | 2022-04-15 | 2022-04-15 | Complete
9.1 | Wire Confirmation — Lorraine Chastain ($500,000) | Received April 15, 2022. | Lorraine Chastain / Pinehart National Bank | 2022-04-15 | 2022-04-15 | Complete
9.2 | Wire Confirmation — Marshall Huang / Jade Peak Ventures LLC ($400,000) | Received April 15, 2022. | Marshall Huang / Pinehart National Bank | 2022-04-15 | 2022-04-15 | Complete
9.3 | Wire Confirmation — Dr. Nneka Adeyemi-Foster / Ariel Crest Capital LLC ($350,000) | Received April 15, 2022. | Dr. Nneka Adeyemi-Foster / Pinehart National Bank | 2022-04-15 | 2022-04-15 | Complete
9.4 | Wire Confirmation — Samuel Kittridge ($300,000) | Received April 15, 2022. | Samuel Kittridge / Pinehart National Bank | 2022-04-15 | 2022-04-15 | Complete
9.5 | Wire Confirmation — Renata Dobrynin / Volkov Bridge Holdings LLC ($300,000) | Received April 15, 2022. | Renata Dobrynin / Pinehart National Bank | 2022-04-15 | 2022-04-15 | Complete
F. REGULATORY FILINGS (POST-CLOSING)
10 | SEC Form D Filing (Rule 506(b) of Regulation D) | Draft Form D prepared by Christy Bauer (April 11, 2022). Sale of SAFEs to five accredited investors, aggregate $1,850,000, under Section 4(a)(2) of the Securities Act of 1933. BCS EIN: 87-3294156; DE File No.: 6198274. Anticipated SEC File No.: 021-394782. Target filing date: April 29, 2022 (within 15 days of first sale). | Calderwood & Harkness LLP / Christy Bauer | 2022-04-29 | — | Pending (Post-Closing)
11 | State Blue-Sky Notice Filings | Required state notice filings in investor states of residence. | Calderwood & Harkness LLP / Christy Bauer | Per state deadlines | — | Pending (Post-Closing)
11.1 | Texas — State Notice Filing (Texas Securities Act § 139.16) | Required; BCS principal office in TX; Chastain, Huang, Adeyemi-Foster reside in TX. | Calderwood & Harkness LLP | Per TX deadline | — | Pending (Post-Closing)
11.2 | California — State Notice Filing | Required; Samuel Kittridge resides in San Francisco, CA. | Calderwood & Harkness LLP | Per CA deadline | — | Pending (Post-Closing)
11.3 | New York — State Notice Filing | Required; Renata Dobrynin / Volkov Bridge Holdings LLC located in New York, NY. | Calderwood & Harkness LLP | Per NY deadline | — | Pending (Post-Closing)
G. FEE REIMBURSEMENTS & EXPENSES
12 | Reimbursement of Holloway, Fenn & Archer LLP Legal Fees | Investors' counsel fees reimbursed by BCS, capped at $15,000 per term sheet. Diana Whitford, Partner, HFA, 221 West 6th Street, Suite 1440, Austin, TX 78701. | BCS (Devin Mallory) / Holloway, Fenn & Archer LLP | 2022-04-15 | 2022-04-15 | Complete
13 | Calderwood & Harkness LLP Flat Fee | Flat fee of $35,000 for SAFE round representation per engagement letter dated February 28, 2022. | BCS (Devin Mallory) | Upon closing | 2022-04-15 | Complete
SUMMARY
Total Items: | 42
Items Complete: | 37
Items Pending (Post-Closing): | 5
[sheet: Key Dates & Contacts]
Date | Event / Milestone | Notes
2021-09-14 | BCS Incorporation (Delaware); Restricted Stock Purchase Agreements executed; Founders' vesting commencement (4-year, 1-year cliff) | DE SOS File No. 6198274
2021-09-22 | BCS foreign qualification in Texas | TX SOS Filing No. 804217635
2022-01-15 | Devin Mallory introduced to Lorraine Chastain | Austin tech networking event
2022-02-14 | Non-binding term sheet circulated to prospective angel investors | Post-money SAFE; $12M cap; no discount
2022-02-28 | Calderwood & Harkness LLP engagement opened; engagement letter executed | Matter No. 1042-00002; flat fee $35,000
2022-03-07 | First draft of SAFE instrument circulated to Holloway, Fenn & Archer LLP | Prepared by Christy Bauer
2022-03-14 | Investor counsel comments received from Diana Whitford (HFA) | Redline of SAFE instrument
2022-03-18 | Tax Memorandum — SAFE Characterization completed | Prepared by Garrett Simmons
2022-03-21 | Revised SAFE and Pro Rata Side Letter circulated; Capitalization Table delivered | To HFA and BCS
2022-03-28 | Final SAFE form agreed; Disclosure Schedule finalized
2022-04-04 | Board Written Consent executed | All three directors signed
2022-04-08 | Founders execute IP Assignment Confirmations | Three counterparts
2022-04-11 | Form D Preparation Memorandum and draft filing completed | Prepared by Christy Bauer
2022-04-15 | CLOSING: All five SAFEs executed and funded; closing deliverables delivered | Aggregate: $1,850,000
2022-04-29 | Target date: SEC Form D filing | Within 15 days of first sale
KEY CONTACTS
Brightfield Cloud Services Inc. — Devin Mallory, CEO | 4710 East Riverside Drive, Suite 210, Austin, TX 78741
Brightfield Cloud Services Inc. — Priya Raghavan, CTO | Same address
Brightfield Cloud Services Inc. — Tomás Guerrero-Vidal, COO / Secretary | Same address
Calderwood & Harkness LLP — George Trujillo (Responsible Partner) | 600 Travis Street, Suite 4200, Houston, TX 77002
Calderwood & Harkness LLP — Kevin Ostrowski (Billing Partner) | Same address
Calderwood & Harkness LLP — Christy Bauer (Lead Associate) | Same address
Calderwood & Harkness LLP — Garrett Simmons (Working Associate) | Same address
Holloway, Fenn & Archer LLP — Diana Whitford (Partner) | 221 West 6th Street, Suite 1440, Austin, TX 78701
Cascadia Ridge Accounting Group, P.C. — Roger Ellman, CPA | 9505 Stonelake Boulevard, Suite 140, Austin, TX 78759
Pinehart National Bank (BCS depository bank) | 3200 South Lamar Boulevard, Austin, TX 78704
WIRE INSTRUCTIONS — BRIGHTFIELD CLOUD SERVICES INC.
Bank: Pinehart National Bank
ABA Routing Number: 111-907-244
Account Name: Brightfield Cloud Services Inc.
Account Number: ending x4718
Branch: 3200 South Lamar Boulevard, Austin, TX 78704