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.

If you request financing, a later close, or reserved shares, those shares may remain unissued and not fully recognized as owned until they are actually paid for under the final documents.

Until shares are fully paid for, formally issued, and recorded, they may not qualify for distribution eligibility or other ownership treatment reserved for shares owned outright.

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

Read this first. The goal is to make sure the rule is understood clearly before moving on.

Only shares owned outright by December 31 of the prior calendar year are eligible for a possible distribution in the following year.

A share is owned outright only when it has been fully paid for, formally issued, and recorded in Hairstories’ official shareholder records.

Example 1

Eligible

If a potential distribution is paid in 2027, only shares fully paid for, issued, and recorded by December 31, 2026 would be eligible.

Example 2

Not yet eligible

If shares are pledged, partially paid, reserved for later, or purchased after December 31, they are not yet owned outright for that distribution year.

Please confirm the key ideas above.

I understand that only shares owned outright by December 31 of the prior year can be eligible for a possible distribution in the following year. I understand that shares are owned outright only when they are fully paid for, formally issued, and recorded in Hairstories’ shareholder records. I understand that pledged, partially paid, reserved, or later-purchased shares are not yet eligible until they are owned outright.

18. In your own words, why are pledged or partially paid shares not yet eligible for a possible distribution?

Section 5

Ownership understanding

Read this first. The goal is to make sure the role of a minority shareholder is understood clearly and realistically.

Ownership can create economic rights and certain formal voting rights, but it does not by itself create day-to-day operating authority, management control, or individual veto power.

In practice, being a shareholder and being a manager are not the same role. Minority ownership means participation in the business as an owner, not independent control over daily decisions.

The Board remains responsible for governance decisions such as whether distributions are paid, and shareholders are expected to remain professional even when they disagree.

Healthy mindset

Ownership supports the whole business

A healthy shareholder sees ownership as a long-term commitment to the company, understands that governance decisions are shared and structured, and does not confuse ownership with personal authority.

Unhealthy mindset

Ownership as personal control

An unhealthy shareholder treats ownership like a personal ranking, expects automatic power over coworkers or operations, or resists Board authority whenever decisions are not personally favorable.

Please confirm the key ideas above.

I understand that owning more shares means a larger economic investment and greater proportional ownership rights, not greater day-to-day operating authority. I understand that the Board decides whether distributions are paid after reviewing the company’s financial position and available excess cash. I understand that a minority shareholder participates in ownership but does not independently control the company or daily operations. I understand that even when I disagree, I am expected to remain professional, respect final decisions made within proper authority, and continue supporting the company.

20A. Who currently makes up the Hairstories Board of Directors? List each director by name. 23. In your own words, what is the difference between ownership and day-to-day management authority at Hairstories?

Section 6

Share value and exit treatment

Read this first. The goal here is understanding the general logic, not memorizing legal language.

Shares are reviewed over time using a formula. That means share value can move up or down. It is not a fixed promise and it is not simply the original purchase price forever.

That also means future value could be lower than the original purchase price. Ownership carries real downside risk, not only upside.

Exit value is not only about what someone paid in. It can also depend on whether the person still contributes inside the business, whether they leave operations entirely, and whether they compete or leave in a way that harms the company.

Scenario 1

Leaves ownership, still operates

If someone exits ownership but remains an income-producing operator inside Hairstories, full formula value may still apply because that person is still contributing to the business.

Scenario 2

Leaves ownership, no longer operates

If someone leaves ownership and is no longer contributing as an operator, value may be reduced because the business was valued in part on that ongoing contribution.

Scenario 3

Competing or coordinated departure

If someone competes directly or participates in a coordinated departure that harms the business, value may be reduced more severely because contribution is being removed and business value may be damaged further.

Transfers

Shares are not freely transferable

Share transfers and repurchases are governed by company documents. A shareholder cannot freely decide to sell or transfer shares to anyone they want.

Please confirm the key ideas above.

I understand that share value is reviewed using a formula and is not guaranteed to stay fixed. I understand that a departing owner who remains an operator may be treated differently from someone who leaves operations entirely. I understand that leaving operations entirely may justify a reduction in value because the business was valued in part on ongoing contribution. I understand that competing departures may justify a more severe reduction in value. I understand that coordinated departures may justify a more severe reduction in value because they can destabilize the business. I understand that shares cannot be freely sold or transferred outside the governing company documents.

In your own words, why can different departure types lead to different share-value outcomes?

Section 7

Ownership mindset scenarios

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

30. If your preferred ownership amount is not available but a smaller amount is, how would you evaluate whether to accept it? 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

40. What is your primary leadership area?

41. What is your secondary leadership area?

42. What does a long-term professional commitment to Hairstories mean to you? 43. 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.

44. What do you believe are Hairstories’ three greatest opportunities over the next three years? 45. What do you believe is the greatest risk to Hairstories’ continued health and longevity? 47. What strength would you bring as an owner? 48. What problem at Hairstories would you most want to help solve? 49. What measurable result would you most want to influence in year one? 50. What is the first specific initiative you would want to own as a shareholder? 51. Explain what you would do, how it would benefit Hairstories, who would be involved, and how the result could be measured. 52. 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