Hairstories Ownership Questionnaire

Section 1

Candidate information

Start with the basic details the Board will use to identify and contact you.

Full legal name Preferred email Preferred phone

Section 2

Ownership pledge

State the allocation you want most and the minimum you would genuinely accept.

Would you accept a partial offer?

If a partial offer is available and you say no, you may not receive an offer. Answer based on your real floor.

Yes No

If you do not receive your complete allocation, would you like to be considered for future available shares?

Yes No

Section 3

Financial readiness and financing

Show what you can buy immediately without financing, then outline anything beyond that separately.

Are the funds for your immediate purchase currently liquid and available?

If the answer is no, reduce the number above. Anything beyond what you can fund immediately belongs in financing.

Yes No

Are you prepared to provide reasonable proof of funds if requested?

Yes No

If financing or a later closing is requested, describe the arrangement you are requesting. If additional shares were reserved for you, by what date could you reasonably purchase them outright?

Section 4

Distribution eligibility policy

These questions verify the timing and eligibility rules are clear.

To be eligible for any shareholder distribution, shares must be owned outright by December 31 of the calendar year immediately preceding the year in which the distribution is paid.

A share is owned outright only when the full purchase price has been paid, the share has been formally issued, and the shareholder is recorded as its owner in Hairstories’ official shareholder records.

15. If a potential distribution is paid in spring 2027, by what date must the applicable shares be owned outright?

December 31, 2026The date the distribution is announcedThe date the distribution is paidAny time during 2027

16. You request 10 shares. Five are fully paid for and issued by December 31, 2026. Five are purchased in 2027. How many shares are eligible for a potential spring 2027 distribution?

5 shares10 sharesAll 10 because they were pledgedIt depends on the financing request

17. What does “owned outright” mean for distribution eligibility?

Fully paid for, formally issued, and recorded in the company’s shareholder recordsIncluded in the original pledgeInformally reserved by the BoardA partial payment was made

18. Are distributions guaranteed once shares are owned outright?

NoYes

Section 5

Ownership understanding

This section tests whether the candidate understands minority ownership and professional responsibility.

19. Which statement best describes what owning more shares means?

Larger economic investment and greater proportional voting and distribution rightsThey work harder than othersGreater authority over daily salon operationsMore important to Hairstories

20. Who decides whether Hairstories pays a shareholder distribution?

The Board, after reviewing financial position and available excess cashEach shareholder decides individuallyIt is automatically required every yearThe largest investor decides

21. Which statement best describes a minority shareholder?

Participates in ownership but does not independently control the company or daily operationsMay overrule management in their areaEvery shareholder has equal authorityOwnership automatically creates management authority

22. If you disagree with a decision but the Board acts within its authority, what is your responsibility?

Respect the final decision, remain professional, and continue supporting the companyContinue arguing until it changesPublicly distance myselfDiscuss confidential details with coworkers

23. Which statement best reflects the purpose of this ownership opportunity?

To build a committed ownership group that supports Hairstories as a wholeTo rank employees by contributionTo reward whoever thinks they work hardestTo give shareholders control over their areas

Section 6

Share value and exit treatment

These questions confirm the candidate understands formula value, repurchase treatment, and transfer restrictions.

24. Which statement best describes how future formula value is determined?

Based on four times average annual profit for the three most recently completed fiscal years, divided by outstanding sharesEach share is permanently worth at least $3,000The departing shareholder chooses the valueBased only on annual revenue

25. A shareholder leaves during the first three years in an eligible, noncompetitive departure. What is the general repurchase value?

Original purchase priceFull formula value50% of formula valueWhatever amount the shareholder requests

26. A shareholder leaves during the first three years and enters direct competition. What is the general repurchase value?

50% of original purchase priceFull original purchase priceFull formula value50% of formula value

27. A shareholder leaves after the first three years in an eligible, noncompetitive departure. What is the general repurchase value?

Full formula valueOriginal purchase price50% of original purchase priceNo repurchase value

28. A shareholder leaves after the first three years and enters direct competition. What is the general repurchase value?

50% of formula valueFull formula valueOriginal purchase priceThe shareholder chooses the value

29. Can a shareholder freely sell their shares to another employee, family member, outside investor, or other third party?

No—transfers and repurchases are governed by the shareholder agreementYes

Section 7

Ownership mindset scenarios

Answer directly. The Board is interested in judgment, professionalism, and reasoning.

30. You requested 10 shares but receive an offer for five, while another candidate receives more than you. How would you respond? 31. Hairstories has a profitable year, but the Board retains excess cash instead of paying a distribution. How would you respond? 32. You strongly disagree with a Board decision. How would you communicate concerns while continuing to fulfill your responsibilities? 33. You receive confidential information and a close coworker asks about it. What do you do? 34. A decision would benefit you personally but may not be in Hairstories’ best long-term interest. How would you evaluate it? 35. Another shareholder receives recognition for an initiative, but you believe you contributed more. How would you handle it? 36. What do you believe will be the most difficult part of being a minority shareholder? 37. What belief or behavior could make someone an unhealthy shareholder, even if that person is a strong individual producer?

Section 8

Future professional commitment

Clarify how you see your role and contribution over the next three to five years.

38. Do you currently intend to remain actively employed by Hairstories for at least the next three to five years?

YesNoUnsure

39. Do you intend to continue meeting the minimum work, performance, and reliability requirements established for shareholders?

YesNoI would like clarification regarding the requirements

41. What does a long-term professional commitment to Hairstories mean to you? 42. How would you continue contributing during a period when your individual production, schedule, or availability temporarily changes?

Section 9

Ownership contribution plan

This is the practical heart of the questionnaire: where you think Hairstories can go and what you would do to help get it there.

43. What do you believe are Hairstories’ three greatest opportunities over the next three years? 44. What do you believe is the greatest risk to Hairstories’ continued health and longevity? 46. Describe two or three specific initiatives you would like to lead or support during your first year as a shareholder. 47. For each initiative, explain what you would do, how it would benefit Hairstories, who would be involved, and how the result could be measured. 48. How would your contribution as a shareholder extend beyond maintaining your own book of business? 49. What does acting in the best interest of Hairstories as a whole mean to you? 50. Overall ownership contribution statement (approximately 500–1,000 words)

Section 10

Acknowledgments and signature

Confirm understanding of the core ownership terms and provide a digital signature.

Your initials

Digital signature Printed name Date