# EDGAR Filing Document

**Accession Number:** 0001867706
**File Stem:** 0001477932-25-004730
**Filing Date:** 2025-6
**Character Count:** 616631
**Document Hash:** 11a5aac5471befcee96803bcf8aac2a8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-25-004730.hdr.sgml**: 20250620

**ACCESSION NUMBER**: 0001477932-25-004730

**CONFORMED SUBMISSION TYPE**: 1-A/A

**PUBLIC DOCUMENT COUNT**: 32

**FILED AS OF DATE**: 20250620

**DATE AS OF CHANGE**: 20250620

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Gratus Capital Properties Fund III LLC
- **CENTRAL INDEX KEY:** 0001867706
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 854126748
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12537
- **FILM NUMBER:** 251061991

**BUSINESS ADDRESS:**
- **STREET 1:** GCPF MANAGEMENT LLC
- **STREET 2:** 718 WASHINGTON AVE N, SUITE 400
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55401
- **BUSINESS PHONE:** (651) 999-5344

**MAIL ADDRESS:**
- **STREET 1:** GCPF MANAGEMENT LLC
- **STREET 2:** 718 WASHINGTON AVE N, SUITE 400
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55401

## Part

**PART II - OFFERING CIRCULAR**

Gratus Capital Properties Fund III, LLC

(the "Company")

Preliminary Offering Circular dated June 20, 2025

An offering statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission ("Commission.") Information contained in this Preliminary Offering Circular is subject to completion or amendment. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. The Company may elect to satisfy its obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale that contains the URL where the Final Offering Circular or the offering statement in which such Final Offering Circular was filed may be obtained.

The Company is managed by GCPF Management LLC, (the "Manager") a Delaware limited liability company, which is managed by Jason Weimer and Robert Barlau. We are offering up to $50,000,000 in Class A Interests and Class B Interests (collectively "Investor Interests" or "Interests") for between $12.29 and $13.08 per Unit, depending on the intermediaries through which the investment is made (the "Offering."). We estimate that we may sell up to 3,661,513 Class A Units for up to $45,000,000 (approximately 2,441,008 of which, for up to $30,000,000, will be Class A Units purchased by Class A+ Members who sign the Side Letter Agreement) and up to 406,834 Class B Units for up to $5,000,000, although we may adjust these estimates by filing a post-qualification amendment. Purchasers shall, upon acceptance by the Manager of their Subscriptions, become Class A or Class B Members in the Company. Funds will be made immediately available to the Company once the associated deposits have been received into the Company's escrow account, and the deposits and associated subscription agreements are accepted as being in good order. There is no minimum offering amount. Funds will be used for acquiring real estate assets throughout the United States and for working capital.

The Minimum Investment Amount is $10,000. However, the Manager, in its sole discretion, may accept less than the Minimum Investment Amount. Subscription funds may remain in the Company's escrow account for up to 30 days from the first date of deposit. The Company will conduct regular closings on a rolling basis promptly after receiving investor funds pursuant to a schedule set by the Manager. The first closing will take place no more than thirty (30) days after the first sales pursuant to this offering, and subsequent closings will take place no less often than once per thirty (30) days. Unless terminated by the Manager earlier, this Offering terminates three years after commencement of this Offering (the "Offering Period"). The Manager may extend this Offering Period in its sole discretion, at which time, the Manager will file the appropriate Offering Circular for qualification with the Commission. As there is no minimum offering amount, there are no provisions for the return of funds.

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| | | | |
|:---|:---|:---|:---|
| **Investor Interests (Unit)** | **Price to**<br> **Investors** | **Sellers'** <br> **Commissions** | **Proceeds to**<br> **the Company** |
| Per Unit or Interest (Investments not involving Broker-Dealers) | $12.29 | $0.04916 | $12.24084 |
| Per Unit or Interest (Invested by clients of Broker-Dealers at 6.40% (maximum) total commission) | $13.08 | $0.83712 | $12.24288 |
| Maximum Dollar Amount (Assuming No Broker-Dealer Sales) | $50000000 | $200000 | $49800000 |
| Maximum Dollar Amount (Assuming 10% of sales are Broker-Dealer Sales at 6.40% (maximum) total Commission) | $50000000 | $500000 | $49500000 |
| Maximum Dollar Amount (Assuming all sales are Broker-Dealer Sales at 6.40% (maximum) total Commission) | $50000000 | $3200000 | $46800000 |

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The Company has engaged WealthForge Securities, LLC member FINRA/SIPC ("WealthForge"), to act as the Managing Broker-Dealer in connection with this offering. The Sellers' Commission reported in the table above includes a four-tenths of one percent (0.40%) percent commission on all the Investor Interests being offered payable to WealthForge for performing administrative and compliance related functions. The Company will also pay WealthForge a $1,500 per month Platform and Syndication Fee for as long as the offering is open, which is not included in the above table. Note that the Company's Financial Statement notes are inconsistent with these terms because they describe a previous Broker Dealer Agreement with WealthForge which applies to sales of Company interests under its previous Regulation A Offering. That Agreement has been superseded by a new Managing Broker-Dealer Agreement attached hereto as Exhibit 1.1, which will become effective when this offering is qualified.

Note that the above table also does not include per transaction fees paid to SEI Altigo for Units purchased through its platform by certain Registered Investment Advisers (expected to be $50 per transaction), or other fees payable by the Company to WealthForge which are not determined by the amount raised. See "Plan of Distribution" and "Use of Proceeds" for additional details.

The Company will pay an upfront selling commission in connection with the purchase of Units through a registered broker-dealer. The Company has entered into (and will enter into) arrangements to pay a placement fee of up to six (6%) percent of Gross Offering Proceeds ("Placement Fee") to participating brokers. This Placement Fee may be divided among multiple brokers, and is in addition to the four-tenths of one percent (0.40%) commission payable to WealthForge for administrative and compliance related functions, for a total Sellers' Commission of up to six and four-tenths percent (6.40%).

The Manager, its employees, officers and directors, will advertise the offering to investors directly. Investors who purchase Units directly from the Company will purchase at the Base Price with no Commission Adjustment and will receive Class A or Class B Units. Investors will receive Class A Units if they either (a) purchase at least One Hundred Thousand Dollars ($100,000) worth of Investor Interests; or (b) have previously invested in Affiliates of the Manager, as determined in the sole discretion of the Manager. Eligibility for Class A membership will be assessed based on the potential investor's historical involvement with and contributions to the Manager's Affiliates' business activities prior to the commencement of this offering and is intended to recognize individuals whose support has been crucial to the Manager's success. All other direct investors shall be admitted as Class B Members. Investors who are admitted as Class B Members and later purchase additional Units resulting in a total Unreturned Capital Contribution of $100,000 or higher will have their Class B Units converted to Class A Units as of the date the Capital Contribution bringing their total above $100,000 is received in the Company's escrow account and determined to be in good order. No commissions will be paid for the sale of these interests beyond the four-tenths of one percent (0.40%) commission to WealthForge discussed above.

Investors who purchase Units through an investment adviser registered under the Investment Advisers Act of 1940, as amended (RIAs) and who have been advised by such adviser on an ongoing basis regarding investments other than in the Company, but do not utilize a broker-dealer, will purchase at the Base Price with no Commission Adjustment and will receive Class A Units. The Company will pay a per transaction fee of approximately $50 per transaction to SEI Altigo for Units purchased through SEI Altigo's platform by certain Registered Investment Advisers. The Company will also pay the four-tenths of one percent (0.40%) commission payable to WealthForge for administrative and compliance related functions.

Investors who purchase Units through a registered broker-dealer will receive Class A Units and will purchase at the Base Price plus a Commission Adjustment, calculated as described below. The Company will pay an upfront selling commission in connection with the purchase of these Units. The Company has entered into (and will enter into) arrangements to pay a placement fee of up to six (6%) percent of Gross Offering Proceeds ("Placement Fee") to participating brokers. This Placement Fee may be divided among multiple brokers, and is in addition to the four-tenths of one percent (0.40%) commission payable to WealthForge for administrative and compliance related functions, for a total Sellers' Commission of up to six and four-tenths percent (6.40%).

The Commission Adjustment will be calculated as (100% / 100% - (Placement Fee Amount) – 1) \* Base Price, rounded to the nearest cent. For example, since the Base Price for a particular transaction is $12.29, if the Placement Fee is 6%, the Commission Adjustment will be ((100/(100-6 = 94))-1) \* $12.29 = $0.79, for a total cost of $13.08 per Unit, and an investor investing the minimum $10,000 will receive 764.53 Class A Units. If the Placement Fee is 2%, the Commission Adjustment will be ((100/(100-2 = 98))-1 =) \* $12.29 = $0.25, for a total cost of $12.54 per Unit, and an investor investing the minimum $10,000 will receive 797.45 Class A Units.

Investors who purchase at least $500,000 in Class A Units, who purchase Units through a RIA, who purchase units through a registered broker-dealer, or who are current employees of the Manager or any Development Partner with whom the Company does business are also eligible to take advantage of the Company's Side Letter Agreement, the Form of which is attached to as Exhibit 6.2 hereto. Under this Side Letter Agreement, eligible investors (referred to as Class A+ Investors) are assigned cashflows from the Company's Class C Member (the Manager) such that the Class A+ investors will receive eighty-five percent (85%) of eligible Distributable Cash instead of eighty percent (80%). Any disputes under the Side Letter Agreement are subject to the same dispute resolution process as disputes under the Company's Operating Agreement. While this Agreement shall be open to all Class A Members during the duration of this offering, the Side Letter Agreement shall terminate for with regards to any Class A Unit assigned, sold, or transferred (including involuntary transfers by operation of law) from the Class A+ Investors to any other Person, unless the Manager consents to the transfer of this Agreement in its sole and unlimited discretion. The terms full terms of the Side Letter Agreement are found in Exhibit 6.2 hereto.

No public market currently exists for our Interests. The Company has set a minimum investment requirement of $10,000. We intend to place the funds into an escrow account, which will not be released to the Company until the Minimum Offering of $1,000,000 is raised, deposited, and determined to be in good order. All payments in connection with subscriptions for Units are to be made payable to: South State Bank for the benefit of Gratus Capital Properties Fund III, LLC and sent by check, wire, or ACH transfer to South State Bank, N.A., in its capacity as escrow agent for the Company, where they will be held in a non-interest-bearing escrow account until the subscription agreements are accepted by the Company and the deposited funds are determined to be in good order. Purchasers of our Interests qualified hereunder may be unable to sell their securities, because there may not be a public market for our securities, and any proposed sale of securities is subject to a right of first refusal on the part of the Manager and other Company Members. Any purchaser of our securities should be in a financial position to bear the risks of losing their entire investment.

The transfer of Interests is limited. A Member may assign, his, her or its Interests only if certain conditions set forth in the Company's Operating Agreement are satisfied. Our Manager and Members also have a Right of First Refusal to purchase any Company Units being sold. Our Manager may refuse a transfer of interest(s) for any number of reasons. Our Operating Agreement provides that you may sell your Investor Interests to us in limited circumstances. The Manager does not have an exit strategy currently as it intends to operate the Company for at least eight years, and to continue operating in perpetuity as long as the liquidity needs of the Members are met. By the end of 2029, the Manager intends to communicate with the Members and use reasonable efforts to formulate and execute a plan to allow Members who wish to liquidate their Interests to do so within approximately two to three years. Sample exit strategies the Manager may employ at the appropriate time as part of this plan are discussed on page 39. However, there are currently no provisions for the return of funds except pursuant to our Withdrawal Policy which is discussed starting on page 57, and there is no guarantee that the Company will liquidate Member interests by the end of 2032, or by any other date.

The Company has been formed to acquire various real estate assets throughout the United States. The Company seeks to capitalize on undervalued and value add multi-family properties, acquire stabilized multi-family properties, and enter into joint ventures to develop new multi-family properties. The Company will primarily target Class A- to C+ assets throughout the Midwest, South, and Southeast, and currently has investments in five new construction Properties in North Dakota and Minnesota (see the section entitled "Description of Business" on page 29 for more information). However, the Company may, from time-to-time, invest in other cash flowing and potentially cash flowing multi-family, commercial (e.g., senior living, mobile home parks, self-storage, mixed use, office and/or retail), new development property, and single-family assets as well as real estate backed loans and other real estate backed investments anywhere in the United States when compelling opportunities arise. The Company will focus on new construction in underserved markets, as well as value add and distressed properties, including but not limited to REO's, foreclosures, off-market, pulled from market, concession sensitivity, price reduced and post COVID 19 properties.

The Manager is not an investment adviser registered with the SEC, will not be governed by the Investment Advisers Act of 1940, and will not be acting as an investment adviser with respect to the Company because the Company will only be investing in real estate backed investments, and will not fall within the definition of an Investment Company under U.S. federal securities laws.

The Company is considered an "emerging growth company" under Section 101(a) of the Jumpstart Our Business Startups Act (the "JOBS Act") as it is an issuer that had total annual gross revenues of less than $1.235 billion during its most recently completed fiscal year.

Since the Company is an emerging growth company certain Risk Factors include:

· We are an emerging growth company with a limited operating history.

· Subscribers will have no control in the Company and will have only very limited voting rights. The Manager or its affiliates will manage the day-to-day operations of the Company.

· We will require additional financing, such as bank loans, outside of this offering in order for the operations to be successful.

· We have not conducted any revenue-generating activities and as such have not generated any revenue since inception.

· Investments in real estate and real estate related assets are speculative and we will be highly dependent on the performance of the real estate market.

*By purchasing Interests, Subscribers are bound by the dispute resolution provisions contained in our Operating Agreement which limits your ability to bring class action lawsuits or seek remedy on a class basis. The dispute resolution process provisions do not apply to claims under the federal securities laws. By agreeing to the dispute resolution process, including mandatory arbitration, investors will not be deemed to have waived the company's compliance with the federal securities laws and the rules and regulations thereunder.*

**See the section entitled "**RISK FACTORS**" beginning on page 8 for a more comprehensive discussion of risks to consider before purchasing our Interests.**

INVESTMENT IN SMALL BUSINESSES INVOLVES A HIGH DEGREE OF RISK, AND INVESTORS SHOULD NOT INVEST ANY FUNDS IN THIS OFFERING UNLESS THEY CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. SEE THE SECTION ENTITLED "RISK FACTORS."

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. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

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 CIRCULAR OR SELLING LITERATURE. THESE SECURITIES ARE OFFERED UNDER AN EXEMPTION FROM REGISTRATION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THESE SECURITIES ARE EXEMPT FROM REGISTRATION.

THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET EXISTS FOR THE SECURITIES, AND NO PUBLIC MARKET IS EXPECTED TO DEVELOP FOLLOWING THIS OFFERING. INVESTORS WILL BE REQUIRED TO REPRESENT AND WARRANT THAT THEY MEET THESE SUITABILITY REQUIREMENTS PRIOR TO BEING ADMITTED AS MEMBERS OF THE COMPANY. NEITHER THE COMPANY NOR ITS MANAGER WILL CONDUCT AN INDEPENDENT ANALYSIS OF WHETHER POTENTIAL MEMBERS MEETS THE SUITABILITY REQUIREMENTS FOR THIS INVESTMENT.

GENERALLY, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.

***NOTICE REGARDING AGREEMENT TO ARBITRATE***

THIS OFFERING MEMORANDUM REQUIRES THAT ALL INVESTORS ARBITRATE ANY DISPUTE, OTHER THAN THOSE RELATED TO CLAIMS UNDER FEDERAL SECURITIES LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER, ARISING OUT OF THEIR INVESTMENT IN THE COMPANY. ALL INVESTORS FURTHER AGREE THAT THE ARBITRATION WILL BE BINDING AND HELD IN THE STATE OF DELAWARE. EACH INVESTOR ALSO AGREES TO WAIVE ANY RIGHTS TO A JURY TRIAL. OUT OF STATE ARBITRATION MAY FORCE AN INVESTOR TO ACCEPT A LESS FAVORABLE SETTLEMENT FOR DISPUTES. OUT OF STATE ARBITRATION MAY ALSO COST AN INVESTOR MORE TO ARBITRATE A SETTLEMENT OF A DISPUTE.

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [SUMMARY INFORMATION](#summary) | 6 |
| [RISK FACTORS](#risk) | 8 |
| [SPECIAL INFORMATION REGARDING FORWARD LOOKING STATEMENTS](#special) | 22 |
| [DILUTION](#dilution) | 22 |
| [DETERMINATION OF OFFERING PRICE](#deter) | 22 |
| [PLAN OF DISTRIBUTION](#plan) | 23 |
| [USE OF PROCEEDS](#use) | 26 |
| [DESCRIPTION OF BUSINESS](#description) | 29 |
| [DESCRIPTION OF PROPERTY](#propery) | 41 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#management) | 43 |
| [MANAGER, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS](#manager) | 49 |
| [EXECUTIVE COMPENSATION](#executive) | 52 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#security) | 52 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#certain) | 53 |
| [SECURITIES BEING OFFERED AND SUMMARY OF THE OPERATING AGREEMENT](#securitybeing) | 54 |
| [INDEMNIFICATION](#indemi) | 59 |
| [POLICIES WITH RESPECT TO CERTAIN TRANSACTIONS](#policies) | 59 |
| [PRIOR PERFORMANCE](#prior) | 61 |
| [TAX TREATMENT OF COMPANY AND ITS SUBSIDIARIES](#tax) | 66 |
| [ERISA CONSIDERATIONS](#erisa) | 69 |
| [INTERESTS OF NAMED EXPERTS AND COUNSEL](#interest) | 70 |
| [WHERE YOU CAN FIND ADDITIONAL INFORMATION](#where) | 70 |
| [FINANCIAL STATEMENTS](#fs) | 72 |

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| *[**Table of Contents**](#toc)* |

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**SUMMARY INFORMATION**

This summary contains basic information about us and the Offering. Because it is a summary, it does not contain all the information that you should consider before investing. You should read the entire Offering Circular carefully, including the risk factors and our financial statements and the related notes to those statements included in this Offering Circular. Except as otherwise required by the context, references in this Offering Circular to "we," "our," "us," "the Company," and "Gratus Capital Properties Fund III" refer to Gratus Capital Properties Fund III, LLC, a Delaware limited liability company.

We were formed on November 10, 2020 and commenced operations on February 16, 2022. As of May 31, 2025, the Company has raised approximately $15,370,700 through the sale of Units in its first Regulation A offering (including approximately $925,000 sold to individuals affiliated with our Manager on the same terms as Units sold to other investors) and invested approximately $10,696,677.79 across five new construction properties, and has approximately $2,320,591 in Cash (excluding cash held by subsidiary property owning entities). Distributions to Company members began in April 2025, with $274,972.99 total distributions made on April 21, 2025 ($220.048.47 of which were made to Class A and Class B Unitholders and the remaining $54,924.52 distributed to the Manager who holds our Class C Units). We have already covered the costs associated with beginning to operate our company, marketing expense, and investment and acquisition related costs. Money raised in this offering is expected to be used first to acquire additional real estate.

We intend on engaging in the following activities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company's primary focus is to invest in new development properties built at costs below current market values via joint venture agreements with real estate developers or investors who may have certain resources or opportunities not otherwise available to the Company. The properties are then managed by a well-established third-party property management company to maximize the appreciation for the investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Invest in value add or stabilized multi-family properties that it expects to appreciate in value. The properties are selected based on criteria that includes positive cash flow potential, good location and purchase price is less than replacement cost. The properties are then managed by a well-established third-party property management company to maximize the appreciation for the investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Invest in any opportunity our Manager sees fit within the confines of the market, marketplace and economy so long as those investments are real estate related and within the investment objectives of the Company. To this end, at some time in the future, the Company may also purchase additional properties or make other real estate investments that relate to varying property types including multi-family, commercial, single-family, hospitality, and senior housing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company may also make real estate backed loans. The Company will only be investing in real estate backed investments. The Company may also elect to loan money to real estate developers or investors.

In all cases, the debt on any given property must be such that it fits with the Investment Policies of the Company. The Company intends on leveraging its properties such that its total leverage will not exceed, in the aggregate, eighty percent (80%) of the value of the Company's Assets.

**About This Circular**

We have prepared this offering circular to be filed with the SEC for our offering of securities. The offering statement includes exhibits that provide more detailed descriptions of the matters discussed in this offering circular.

You should rely only on the information contained in this offering circular and the exhibits to the offering statement. We have not authorized any person to provide you with any information different from that contained in this offering circular. The information contained in this offering circular is complete and accurate only as of the date of this offering circular, regardless of the time of delivery of this offering circular or sale of our shares. This offering circular contains summaries of certain other documents, but reference is hereby made to the full text of the actual documents for complete information concerning the rights and obligations of the parties thereto.

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| *[**Table of Contents**](#toc)* |

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**Industry And Market Data**

The industry and market data used throughout this offering circular have been obtained from our own research, surveys or studies conducted by third parties and industry or general publications. Industry publications and surveys generally state that they have obtained information from sources believed to be reliable. We believe that each of these studies and publications is reliable. We have not engaged any person or entity to provide us with industry or market data.

**Tax Considerations**

No information contained herein, nor in any prior, contemporaneous or subsequent communication should be construed by a prospective investor as legal or tax advice. We are not providing any tax advice as to the acquisition, holding or disposition of the securities offered herein. In making an investment decision, investors are strongly encouraged to consult their own tax advisor to determine the U.S. Federal, state and any applicable foreign tax consequences relating to their investment in our securities. This written communication is not intended to be "written advice," as defined in Circular 230 published by the U.S. Treasury Department.

**Emerging Growth Company Exemptions**

We are an emerging growth company. An emerging growth company is one that had total annual gross revenues of less than $1,235,000,000 (as such amount is indexed for inflation every 5 years by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) during its most recently completed fiscal year. We would lose our emerging growth status if we were to exceed $1,235,000,000 in gross revenues. We are not sure this will ever take place.

Because we are an emerging growth company, we have the exemption from Section 404(b) of Sarbanes-Oxley Act of 2002 and Section 14A(a) and (b) of the Securities Exchange Act of 1934. Under Section 404(b), we are now exempt from the internal control assessment required by subsection (a) that requires each independent auditor that prepares or issues the audit report for the issuer shall attest to, and report on, the assessment made by the management of the issuer. We are also not required to receive a separate resolution regarding either executive compensation or for any golden parachutes for our executives so long as we continue to operate as an emerging growth company.

We hereby elect to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(1).

We will lose our status as an emerging growth company in the following circumstances:

· The end of the fiscal year in which our annual revenues exceed $1.235 billion.

· The end of the fiscal year in which the fifth anniversary of our IPO occurred.

· The date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt.

· The date on which we qualify as a large accelerated filer.

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**RISK FACTORS**

Investors in the Company should be particularly aware of the inherent risks associated with our business. As of the date of this filing our management is aware of the following material risks.

**General Risks Related to Our Business**

***We are an emerging growth company and have not yet become profitable, which makes an evaluation of us extremely difficult. At this stage of our business operations, even with our good faith efforts, we may never become profitable, thus potential investors have a possibility of losing their investment.***

We were organized in November 2020 and commenced operations in February 2022 and have yet to become profitable. As a result of our start-up status we will accumulate deficits due to organizational and start-up activities, business plan development, interest owed on amounts advanced by the Manager, and professional fees since we organized. Projections concerning the success of our new construction properties are based on assumptions, and past results do not guarantee future profitability. Our future operating results will depend on many factors, including our ability to raise adequate working capital, availability of properties for purchase, the level of our competition and our ability to attract and maintain key management and employees.

***We are significantly dependent on Jason Weimer,** **Robert Barlau** **, Skip Johnson, and Austin Schmitt** **. The loss or unavailability of any of these individual's services would have an adverse effect on our business, operations and prospects in that we may not be able to obtain new management under the same financial arrangements, which could result in a partial loss or return of your investment.***

The acquisition of properties and the attainment of new investors is significantly dependent on Jason Weimer, Robert Barlau, Skip Johnson, and Austin Schmitt, and on the various Companies with which these individuals are affiliated, collectively referred to as "Gratus Capital" and "Gratus Funds." We expect that our investor base will be largely drawn from Gratus Capital's exposure on social media and on media content delivered over the Manager's website, along with Registered Investment Advisers with whom Gratus Capital has formed relationships. It would be difficult to replace these individuals at such an early stage of development of the Company. Jason Weimer, Robert Barlau, Skip Johnson, and Austin Schmitt have and intend to continue to build a qualified team of individuals that manage the marketing, business operations, property management, acquisitions and dispositions of assets. In the event these individuals leave the Company, it may be difficult to attain new investors or purchase properties, but the management team would be able to manage the Company's assets until a such time as an exit would occur. Should the Company be unable to replace these individuals, it may be required to cease pursuing business opportunities, which may result in a partial loss or return of your investment.

***This offering is a** **semi-** **blind pool offering, and therefore, Members will not have the opportunity to evaluate some of our investments before we make them, which makes investments more speculative.***

We will seek to invest substantially all of the net offering proceeds from this Offering, after the payment of fees and expenses, in the acquisition of or investment in interests in real estate assets. However, because, as of the date of this Offering Circular, we have only invested in five real estate properties, and because our Members will be unable to evaluate the economic merit of additional assets before we invest in them, they will have to rely on the ability of our Manager to select suitable and successful investment opportunities. These factors increase the risk that our Members' investment may not generate returns comparable to the Company's competitors.

***Our Manager will have complete control over the Company and will therefore make all decisions over which Members will have no control.***

GCPF Management LLC, our Manager, will make all decisions relating to the business, operations, and strategy, without input by the Members. Such decisions may include purchase and sale decisions regarding the assets, the appointment of other officers, managers, vendors and whether to enter into material transactions with related parties.

***An investment in the Interests is highly illiquid. You may never be able to sell or otherwise dispose of your Interests.***

Since there is no public trading market for our Interests, you may never be able to liquidate your investment or otherwise dispose of your Interests. Company Units are also subject to a Right of First refusal, whereby the Manager and existing Company Members must be given an opportunity to purchase Units before they may be sold to third parties. The Company intends to operate the Company for at least eight years, and to continue operating in perpetuity as long as the liquidity needs of the Members are met. By the end of 2029, the Manager intends to communicate with the Members and use reasonable efforts to formulate and execute a plan to allow Members who wish to liquidate their Interests to do so within approximately two to three years, but there is no guarantee that such a plan will be formulated or executed, and there is no guarantee that the Company will liquidate Member interests by the end of 2032, or by any other date. Sample exit strategies the Manager may employ at the appropriate time as part of this plan are discussed on page 39. Members should view investing in the Company as a long-term investment with the ability to withdraw only within the policies outlined in the Withdrawal Policy discussed starting on page 57.

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***Our Manager has sole discretion over whether and when to make cash distributions.** **You may not receive Distributable Cash on predictable schedule and may never receive any Distributable Cash.***

Cash flow Distributions will only be available to the extent there is cash flow from rentals and other operations of the Properties and other investments. Additionally, even if there is cash flow from operations, the Manager of the Company, in its sole discretion, may cause the Company to retain some or all of such funds for further investment, working capital purposes, further renovation and other reserves. Therefore, there can be no assurance as to when or whether there will be any Cash Distributions from the Company to the Members. It is possible that the Company will not achieve expected levels Distributable Cash and that the Members may not receive any further Cash Distributions

**Risks Related to the Real Estate Business**

***The profitability of attempted acquisitions is uncertain.***

We intend to acquire properties selectively. Acquisition of properties entails risks those investments will fail to perform in accordance with expectations. In undertaking these acquisitions, we will incur certain risks, including the expenditure of funds on, and the devotion of management's time to, transactions that may not come to fruition. Additional risks inherent in acquisitions include risks that the properties will not achieve anticipated sales price, rents, or occupancy levels and that estimated operating expenses and costs of improvements to bring an acquired property up to standards established for the market position intended for that property may prove inaccurate.

***Rising expenses could reduce cash flow and funds available for future acquisitions.***

Our properties will be subject to increases in real estate tax rates, utility costs, operating expenses, insurance costs, repairs and maintenance, interest, administrative and other expenses. If we are unable to increase rents at an equal or higher rate or lease properties on a basis requiring the tenants to pay all or some of the expenses, we would be required to pay those costs, which could adversely affect funds available for future cash distributions.

***New construction properties which have not yet leased the majority of their space may not be able to do so.***

There can be no assurance that our new construction Properties will achieve lease-up or condo sales within the projected timeframe or at the anticipated rental rates. Delays or shortfalls in leasing may negatively impact cash flow, debt service coverage, and return on investment. Market conditions, competition from other new developments, or shifts in tenant preferences may further impede stabilization, resulting in a prolonged period of reduced or negative cash flow.

***The markets in which our new construction projects operate may not be able to absorb increased supply.***

The success of some of our Properties is dependent on the demand for residential units or commercial space in the local market, which can be influenced by factors such as employment trends, interest rates, population growth, and availability of comparable housing. If demand does not materialize as expected, the Properties may experience prolonged vacancies or require rental concessions, adversely affecting operating income and asset value.

Due to a substantial influxes of capital investment and competition for properties in the multi-family, single-family, or commercial real estate market, the real estate we purchase may not appreciate or may decrease in value.

The real estate markets are currently experiencing a substantial influx of capital from investors worldwide. This substantial flow of capital, combined with significant competition for real estate and the strength in the economy, may result in inflated purchase prices for such assets. To the extent we purchase real estate in such an environment, we are subject to the risk that if the real estate market ceases to attract the same level of capital investment in the future as it is currently attracting, or if the number of companies seeking to acquire such assets decreases, our returns will be lower and the value of our assets may not appreciate or may decrease significantly below the amount we paid for such assets.

A multi-family, single-family, or commercial property's income and value may be adversely affected by national and regional economic conditions, local real estate conditions such as an oversupply of properties or a reduction in demand for properties, availability of "for sale" properties, competition from other similar properties, our ability to provide adequate maintenance, insurance and management services, increased operating costs (including real estate taxes), the attractiveness and location of the property and changes in market rental rates. Our income will be adversely affected if a significant number of tenants are unable to pay rent or if our properties cannot be rented on favorable terms. Our performance is linked to economic conditions in the regions where our properties will be located and in the market for multifamily space generally. Therefore, to the extent that there are adverse economic conditions in those regions, and in these markets generally, that impact the applicable market rents, such conditions could result in a reduction of our income and cash available for distributions and thus affect the amount of distributions we can make to you.

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***If we acquire commercial real estate, we will depend on commercial real estate tenants for our revenue and therefore our revenue may depend on the economic viability of our tenants.***

If we acquire commercial real estate, we will be highly dependent on income from tenants. Our financial results will depend in part on leasing space in the properties or the full properties we acquire to tenants on economically favorable terms.

In the event of a tenant default prior to stabilization, we may experience delays in enforcing our rights as landlord and may incur substantial costs in protecting our investment and re-letting our property. A default, of a substantial tenant or number of tenants at any one time, on lease payments to us would cause us to lose the revenue associated with such lease(s) and cause us to have to find an alternative source of revenue to meet mortgage payments and prevent a foreclosure if the property is subject to a mortgage. Therefore, substantial lease payment defaults by tenant(s) could cause us to lose our investment or reduce the amount of distributions to Members.

***Competition and any increased affordability of single-family homes could limit our ability to lease our apartments or maintain or increase rents, which may materially and adversely affect us, including our financial condition, cash flows, results of operations and growth prospects.***

The multi-family industry is highly competitive, and we face competition from many sources, including from other multi-family apartment communities both in the immediate vicinity and the geographic market where our properties are and will be located. If so, this would increase the number of apartments units available and may decrease occupancy and unit rental rates. Furthermore, multi-family apartment communities we acquired compete, or will compete, with numerous housing alternative in attracting residents, including owner occupied single and multi-family homes available to rent or purchase. The number of competitive properties and/or condominiums in a particular area, or any increased affordability of owner occupied single and multi-family homes caused by declining housing prices, mortgage interest rates and government programs to promote home ownership, could adversely affect our ability to retain our residents, lease apartment units and maintain or increase rental rates. These factors could materially and adversely affect us.

***We may not make a profit if we sell a property.***

The prices that we can obtain when we determine to sell a property will depend on many factors that are presently unknown, including the operating history, tax treatment of real estate investments, demographic trends in the area and available financing. There is a risk that we will not realize any significant appreciation on our investment in a property. Accordingly, your ability to recover all or any portion of your investment under such circumstances will depend on the amount of funds so realized and claims to be satisfied therefrom.

***Our properties may not be diversified.***

Our potential profitability and our ability to diversify our investments may be limited, both geographically and by type of properties purchased. We will be able to purchase additional properties only as additional funds are raised. Given the limited number of assets we are targeting, our properties will not be well diversified, and their economic performance could be affected by changes in local economic conditions or changes uniquely affecting one or more particular asset classes.

Our performance is therefore linked to economic conditions in the regions in which we will acquire properties and in the market for real estate properties generally. Therefore, to the extent that there are adverse economic conditions in the regions in which our properties are located and in the market for real estate properties, such conditions could result in a reduction of our income and cash to return capital and thus affect the amount of distributions we can make to you.

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***Competition with third parties in acquiring and operating properties may reduce our profitability and the return on your investment.***

We compete with many other entities engaged in real estate investment activities, many of which have greater resources than we do. Specifically, there are numerous commercial developers, real estate companies, foreign investors and investment funds that operate in the markets in which we may operate, that will compete with us in acquiring residential, commercial, and other properties that will be seeking investments and tenants for these properties.

Many of these entities have significant financial and other resources, including operating experience, allowing them to compete effectively with us. Competitors with substantially greater financial resources than us may generally be able to accept more risk than we can prudently manage, including risks with respect to the creditworthiness of entities in which investments may be made or risks attendant to a geographic concentration of investments. Demand from third parties for properties that meet our investment objectives could result in an increase of the price of such properties. If we pay higher prices for properties, our profitability may be reduced, and you may experience a lower return on your investment. In addition, our properties may be located in a close proximity to other properties that will compete against our properties for tenants. Many of these competing properties may be better located and/or appointed than the properties that we will acquire, giving these properties a competitive advantage over our properties, and we may, in the future, face additional competition from properties not yet constructed or even planned. This competition could adversely affect our business. The number of competitive properties could have a material effect on our ability to rent space at our properties and the amount of rents charged. We could be adversely affected if additional competitive properties are built in locations competitive with our properties, causing increased competition for residential renters. In addition, our ability to charge premium rental rates to tenants may be negatively impacted. This increased competition may increase our costs of acquisitions or lower the occupancies and the rent we may charge tenants. This could result in decreased cash flow from tenants and may require us to make capital improvements to properties which we would not have otherwise made, thus affecting cash available for distributions to you.

***We may not have control over costs arising from** **construction and** **rehabilitation of properties.***

We have invested in five new construction properties and may elect to invest in additional new construction properties and/or in affordable properties that we will rehabilitate and convert to market rate properties. Consequently, we may retain independent general contractors to perform the actual physical rehabilitation and/or construction work and will be subject to risks in connection with a contractor's ability to control rehabilitation and/or construction costs, the timing of completion of rehabilitation and/or construction, and a contractor's ability to build in conformity with plans and specification. The cost of construction materials has risen significantly in the past year, and may rise still further, which may make it difficult or impossible for this construction to be completed within the budgeted dollar amount, which could result in a property requiring the investments of additional funds in order to complete these projects and reduce or even eliminate the overall profitability of our investments.

***Inventory or available properties might not be sufficient to realize our investment goals.***

We may not be successful in identifying suitable real estate properties or other assets that meet our acquisition criteria, or consummating acquisitions or investments on satisfactory terms. Failures in identifying or consummating acquisitions would impair the pursuit of our business plan. Moreover, our acquisition strategy could involve significant risks that could inhibit our growth and negatively impact our operating results, including the following: increases in asking prices by acquisition candidates to levels beyond our financial capability or to levels that would not result in the returns required by our acquisition criteria; diversion of management's attention to expansion efforts; unanticipated costs and contingent or undisclosed liabilities associated with acquisitions; failure of acquired businesses to achieve expected results; and difficulties entering markets in which we have no or limited experience.

***The Company's market analysis may be incorrect or outdated***

The Company relies on the Manager's ability to evaluate potential property acquisitions using various criteria, including location characteristics, prevailing market trends, and broader economic indicators. However, such analysis may be based on data that is inaccurate, incomplete, or no longer reflective of current conditions. Market trends may shift rapidly due to economic, political, or social changes, and any misjudgment in these evaluations could result in suboptimal acquisitions or missed opportunities, potentially affecting the Company's performance.

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***The consideration paid for our target acquisition may exceed fair market value, which may harm our financial condition and operating results.***

The consideration that we pay will be based upon numerous factors, and the target acquisition may be purchased in a negotiated transaction rather than through a competitive bidding process. We cannot assure anyone that the purchase price that we pay for a target acquisition or its appraised value will be a fair price, that we will be able to generate an acceptable return on such target acquisition, or that the location, lease terms or other relevant economic and financial data of any properties that we acquire will meet acceptable risk profiles. We may also be unable to lease vacant space or renegotiate existing leases at market rates, which would adversely affect our returns on a target acquisition. As a result, our investments in our target acquisition may fail to perform in accordance with our expectations, which may substantially harm our operating results and financial condition.

***Property inspections and appraisals may be inaccurate***

Before acquiring properties, the Company conducts physical inspections and may obtain independent third-party appraisals. These evaluations are inherently limited in scope and may not uncover all structural, environmental, or regulatory issues affecting the properties. Additionally, appraisals are based on estimates and assumptions that may not accurately reflect a property's true value or potential. If these assessments prove to be inaccurate, the Company may overpay for properties or face unexpected capital expenditures post-acquisition, negatively impacting returns.

***Risk related to tenant evaluation and rent collection***

The Company (or. in the case of a co-investment, the Joint Venture into which the Company has invested) employs a tenant screening process designed to assess creditworthiness and payment history. However, no evaluation method can fully predict future tenant behavior. Tenants may default on their lease obligations, delay payments, or vacate properties prematurely, especially in times of economic downturn. Such occurrences could lead to increased vacancy rates, legal costs, or reduced rental income, adversely affecting the Company's cash flow and investor returns.

***The failure of our properties to generate positive cash flow or to sufficiently appreciate in value would most likely preclude our Members from realizing an attractive return on their Interest ownership.***

There is no assurance that our real estate investments will appreciate in value or will ever be sold at a profit. The marketability and value of the properties will depend upon many factors beyond the control of our management. There is no assurance that there will be a ready market for the properties, since investments in real property are generally non-liquid. The real estate market is affected by many factors, such as general economic conditions, availability of financing, interest rates and other factors, including supply and demand, that are beyond our control. We cannot predict whether we will be able to sell any property for the price or on the terms set by it, or whether any price or other terms offered by a prospective purchaser would be acceptable to us. We also cannot predict the length of time needed to find a willing purchaser and to close the sale of a property. Moreover, we may be required to expend funds to correct defects or to make improvements before a property can be sold. We cannot assure any person that we will have funds available to correct those defects or to make those improvements. In acquiring a property, we may agree to lockout provisions that materially restrict us from selling that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed or repaid on that property. These lockout provisions would restrict our ability to sell a property. These factors and any others that would impede our ability to respond to adverse changes in the performance of our properties could significantly harm our financial condition and operating results.

***Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of our properties and harm our financial condition.***

Because real estate investments are relatively illiquid, our ability to promptly sell one or more properties or investments in our portfolio in response to changing economic, financial and investment conditions may be limited. In particular, these risks could arise from weakness in or even the lack of an established market for a property, changes in the financial condition or prospects of prospective purchasers, changes in national or international economic conditions, and changes in laws, regulations or fiscal policies of jurisdictions in which the property is located. We may be unable to realize our investment objectives by sale, other disposition or refinance at attractive prices within any given period of time or may otherwise be unable to complete any exit strategy. An exit event is not guaranteed and is subject to the Manager's discretion.

***The ongoing COVID-19 pandemic, and government restrictions adopted in response thereto, could significantly impact the ability of our tenants to pay rent, impede the performance of our properties, and harm our financial condition.***

The United States, like the rest of the world, has been adversely affected by the breakout of the COVID-19 virus. The United States government, many states, and cities have periodically instituted certain restrictions on businesses and individuals which has limited their ability to engage in economic activities. These circumstances may continue for an extended period of time and may have an adverse impact on economic and market conditions as well as the Company's operations and performance. The ultimate economic fallout from the pandemic and the long-term impact on economies, markets, industries, and individual companies are not known. The extent of the impact to the financial performance and the operations of the Company will depend on future developments, which are highly uncertain and cannot be predicted.

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***Investments in mortgage loans may be affected by unfavorable real estate market conditions, including interest rate fluctuations***

If the Company makes or invests in mortgage loans, it will be at risk of defaults by the borrowers on those mortgage loans as well as interest rate risks. The Company may incur delays in liquidating such defaulted mortgage loans; it may not be able to obtain sufficient proceeds to repay all amounts due to us under the mortgage loan. Further, the values of the properties securing the mortgage loans may decrease after the dates of origination or purchase of those mortgage loans. If the values of the underlying properties fall, the Company's risk will increase because of the lower value of the security associated with such loans. In addition, interest rate fluctuations could reduce returns as compared to market interest rates and reduce the value of the mortgage loans in the event the Company sells them.

***Second mortgage loan investments involve a greater risk of loss than traditional mortgage loans.***

If the Company makes or invests in second mortgages loans, its subordinated priority to the senior lender or lenders will place its investment at a greater risk of loss than a traditional mortgage. In the event of default, any recovery will be subordinate to the senior lender(s). Further, it is likely that any investments made in second mortgages will be placed with private entities and not insured by a government sponsored entity, placing additional credit risk on the borrower, and the Company may not recover some or all of its investment.

***Construction loan investments involve a greater risk of loss of investment and reduction of return than traditional mortgage loans.***

If the Company makes or invests in construction loans, the nature of these loans poses a greater risk of loss than traditional mortgages. Since construction loans are made generally for the express purpose of either the original development or redevelopment of a property, the risk of loss is greater than a traditional mortgage because the underlying properties subject to construction loans are generally unable to generate income during the period of the loan. Construction loans may also be subordinate to the first lien mortgages. Any delays in completing the development or redevelopment project may increase the risk of default or credit risk of the borrower, and the Company may not recover some or all of its investment.

***Bridge loan investments involve a greater risk of loss of investment and reduction of return than traditional mortgage loans***

If the Company makes or invests in bridge loans secured by first lien mortgages on properties to borrowers who are typically seeking short-term capital to be used in an acquisition or renovation of real estate, these loans pose a greater risk than traditional mortgages. Borrowers usually identify undervalued assets that have been under-managed or are located in recovering markets. If the market in which the asset is located fails to recover according to the borrower's projections, or if the borrower fails to improve the quality of the asset's management or the value of the asset, the borrower may not receive a sufficient return on the asset to satisfy the bridge loan, and the Company may not recover some or all of its investment.

In addition, owners often borrow funds under a conventional mortgage loan to repay a bridge loan. The Company may therefore be dependent on a borrower's ability to obtain permanent financing to repay its bridge loan, which could depend on market conditions and other factors. These loans may be highly illiquid investments due to their short life. Bridge loans are also subject to risks of borrower defaults, bankruptcies, fraud, losses and special hazard losses that are not covered by standard hazard insurance. In the event of any default, the Company may not recover some or all of its investment.

***Mezzanine loan investments involve a greater risk of loss of investment and reductions of return than senior loans secured by income producing properties.***

If the Company makes or invests in mezzanine loans, they may take the form of subordinated loans secured by second mortgages on the underlying real property or loans secured by a pledge of the ownership interests of either the entity owning the real property or the entity that owns the interest in the entity owning the real property. These types of investments involve a higher degree of risk than long-term senior mortgage lending secured by income-producing real property because the investment may become unsecured as a result of foreclosure by the senior lender. In the event of a bankruptcy of the entity providing the pledge of its ownership interests as security, the Company may not have full recourse to the assets of such entity, or the assets of the entity may not be sufficient to satisfy the mezzanine loan. If a borrower defaults on the mezzanine loan or debt senior to the Company's loan, or in the event of a borrower bankruptcy, the mezzanine loan will be satisfied only after the senior debt. As a result, the Company may not recover some or all of its investment. These loans may also be highly illiquid investments due to their short life. In addition, mezzanine loans may have higher loan-to-value ratios than conventional mortgage loans, resulting in less equity in the real property and increasing the risk of loss of principal.

***Risk of inaccurate assessment of borrower creditworthiness***

In connection with the Company's real estate-backed lending activities, the Manager—either directly or through joint venture partners—evaluates the creditworthiness of potential borrowers using financial information, credit reports, and other relevant data. However, such evaluations are subject to limitations and may rely on borrower-provided information that is inaccurate, incomplete, or misleading. If the Manager or its partners incorrectly assess a borrower's ability or willingness to repay, the Company may be exposed to a higher risk of default, which could result in delayed payments, costly enforcement actions, or a loss of principal.

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***Investments in real estate-related securities may be illiquid, and the Company may not be able to dispose of these assets in response to changes in economic and other conditions***

If the Company invests in certain real estate-related securities that it may receive in connection with privately negotiated transactions, they may be restricted securities, resulting in a prohibition against their transfer, sale, pledge or other disposition for a period of time. These securities also will not be registered under the relevant securities laws, and thus cannot be transferred, sold pledged, or otherwise disposed except in a transaction that is exempt from the registration requirements of, or is otherwise in accordance with, those laws. As a result, the Company's ability to dispose of these assets in response to changes in economic and other conditions may be extremely limited.

**Risks Related to Financing**

***We might obtain lines of credit and other borrowings, which increases our risk of loss due to potential foreclosure.***

We may obtain lines of credit and long-term financing that may be secured by our assets. As with any liability, there is a risk that we may be unable to repay our obligations from the cash flow of our assets. Therefore, when borrowing and securing such borrowing with our assets, we risk losing such assets in the event we are unable to repay such obligations or meet such demands.

***We have broad authority to incur debt and high debt levels could hinder our ability to make distributions and decrease the value of our investors' investments.***

Our policies do not limit us from incurring debt until our total liabilities would be at 80% of the value of the assets of the Company. Although we intend to borrow typically no more than 80% of a property's value, we may borrow a larger amount in some circumstances. High debt levels would cause us to incur higher interest charges and higher debt service payments and may also be accompanied by restrictive covenants. These factors could limit the amount of cash we have available to distribute and could result in a decline in the value of our investors' investments.

***Rising interest rates may make it harder for us to obtain financing for new properties, refinance the properties in which we invest, and the expenses of the Company will increase, as much of our debt was taken out at a variable interest rate.***

Concerns over inflation have caused the Federal Reserve to raise interest rates. As interest rates rise, we may be unable to obtain financing for new properties, or refinancing of existing properties, at attractive rates, which may make it more difficult to complete our business plan and/or our exit strategy. Additionally, the debt secured by the five properties in which the Company has invested has a variable interest rate, and rising interest rates increase the amount of interest that accrues, the Company's debt service payments, and thereby reduces the profitability of the properties into which the Company has invested. If interest rates continue to rise, the Company's debt service payments may also rise, which will further reduce profits. These factors could limit the amount of cash we have available to distribute and could result in a decline in the value of our investors' investments.

**Risks Related to Conflicts of Interest**

***There are conflicts of interest between us, our Manager and its affiliates.***

We expect that a third-parties related to the Manager will provide asset management, accounting, and other services to our Manager and the Company. Prevailing market rates are determined by Management based on industry standards and expectations of what Management would be able to negotiate with a third-party on an arm's length basis. All of the agreements and arrangements between such parties, including those relating to compensation, are not the result of arm's length negotiations. Some of the conflicts inherent in our Company's transactions with the Manager and its affiliates, and the limitations on such parties adopted to address these conflicts, are described below. Our Company, Manager and their affiliates will try to balance our interests with their own. However, to the extent that such parties take actions that are more favorable to other entities than the Company, these actions could have negative impact on our financial performance and, consequently, on distributions to Members and the value of our Interests. See "Conflicts of Interest."

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***The interests of the Manager, our principals and their other affiliates may conflict with your interests.***

The operating agreement provides our Manager with broad powers and authority which may result in one or more conflicts of interest between your interests and those of the Manager, the principals and its other affiliates. Potential conflicts of interest include, but are not limited to, the following:

· the Manager, the principals and/or its other affiliates are offering, and may continue to originate and offer, other real estate investment opportunities, including additional blind pool equity and debt offerings similar to this offering and may make investments in real estate assets for their own respective accounts, whether or not competitive with our business;

· the Manager, the principals and/or its other affiliates will not be required to disgorge any profits or fees or other compensation they may receive from any other business they own separately from us, and you will not be entitled to receive or share in any of the profits return fees or compensation from any other business owned and operated by the Manager, the principals and/or its other affiliates for their own benefit;

· we may engage the Manager or affiliates of the Manager to perform services at prevailing market rates. Prevailing market rates are determined by the Manager based on industry standards and expectations of what the Manager would be able to negotiate with a third-party on an arm's length basis; and

· the Manager, the principals and/or its other affiliates are not required to devote all of their time and efforts to our affairs.

**Risks Associated with Joint Ventures/Co-Investors**

***The terms of joint venture agreements or other joint ownership/co-investor arrangements into which the Manager may enter could impair operating flexibility and results of operations.***

In connection with the purchase of real estate or making real estate-related investments, the Manager may enter into joint ventures with affiliated or unaffiliated partners. In addition, the Company may also purchase or develop properties in arrangements with affiliates of tfshe Manager, the sellers of the properties, developers and/or similar persons. These structures involve participation in the investment by outsiders whose interests and rights may not be the same as the Company's. These joint venture partners or co-tenants may have rights to take some actions over which the Manager has no control and may take actions contrary to the interests of the Company. For example, joint ownership of an investment, under certain circumstances, may involve risks not associated with direct ownership of such investment, including the following:

· a partner or co-investor might have economic and/or other business interests or goals which are unlike or incompatible with the business interests or goals of the Company, including inconsistent goals relating to the sale of properties held in a joint venture and/or the timing of the termination and liquidation of the venture;

· such partners or co-investors may become bankrupt and such proceedings could have an adverse impact on the operation of the Company or joint venture;

· the Company may incur liabilities as the result of actions taken by joint venture partners in which there was no direct involvement; and

· such partners or co-investors may be in a position to take action contrary to instructions from the Manager or requests or contrary to the Company's policies and objectives or fail to take actions as instructed.

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If the Company has a right of first refusal or buy/sell right to buy out a co-investor/venturer or partner, we may be unable to finance such a buy-out if it becomes exercisable or we may be forced to exercise those rights at a time when it would not otherwise be in our best interest to do so. If the Company's interest is subject to a buy/sell right, we may not have sufficient cash, available borrowing capacity or other capital resources to allow the purchase of such an interest of a co-investor/venturer subject to the buy/sell right, in which case we may be forced to sell the interest when otherwise we would have preferred to retain such interest. The Manager may not be able to sell a Company's interest in a joint venture on a timely basis or on acceptable terms if an exit from the venture is desired for any reason, particularly if the interest is subject to a right of first refusal of the co-investor/venturer or partner.

***The Manager may structure a joint venture/co-invest relationships in a manner which could limit the amount the Company participates in the cash flow or appreciation of an investment.***

The Manager may enter into joint venture agreements, the economic terms of which may provide for the distribution of income to the Company otherwise than in direct proportion to ownership interest in the joint venture. For example, while a co-investor/venturer may invest an equal amount of capital in an investment, the investment may be structured such that the Company has a right to priority distributions of cash flow up to a certain target return while the co-investor/venturer may receive a disproportionately greater share of cash flow than the Company is to receive once such target return has been achieved. This type of investment structure may result in the co-investor/venturer receiving more of the cash flow, including appreciation, of an investment than the Company would receive. If the Manager does not accurately judge the appreciation prospects of a particular investment or structure the agreement appropriately, the Company may incur losses on joint venture/co-invest investments and/or have limited participation in the profits of a joint venture/co-invest investment, either of which could reduce the ability to make cash distributions to the Members.

***Co-investments with other parties will result in additional risks.***

The Company may co-invest in various investments with other investors obtained by an affiliate of the Manager. It is possible that a co-investor would be unable to pay its share of costs, which could be detrimental to the Company's investment in a property unless an alternative source of capital could be obtained. In the event a third-party co-investor was to become bankrupt, third party creditors could become involved in the property affairs. In addition, the co-investors could have economic or business interests or goals which are or which may become inconsistent with the Company's business interests or goals.

**Co-investment risks related to underwriting and due diligence**

The Company may originate loans through joint ventures with third-party partners who participate in underwriting and borrower due diligence. While the Manager seeks to work with experienced partners, the Company may have limited oversight over their internal underwriting standards, risk assessments, or ongoing monitoring of borrowers. Any deficiencies, misjudgments, or conflicts of interest on the part of such partners may impair loan performance and expose the Company to increased credit risk or reputational harm

***If the Manager enters into joint ventures with affiliates, the Company may face conflicts of interest or disagreements with the joint venture partners that will not be resolved as quickly or on terms as advantageous to the Company as would be the case if the joint venture had been negotiated at arm's-length with an independent joint venture partner. As a result, Member returns may be decreased by entering into such joint ventures with affiliates of the Manager.***

In the event that the Company enters into a joint venture with any other program sponsored or advised by the Manager or one of its affiliates, the Company may face certain additional risks and potential conflicts of interest. Joint venture partners may not desire to sell properties at the time the Company desires. Joint ventures between the Company and other Manager programs will not have the benefit of arm's-length negotiation of the type normally conducted between unrelated co-venturers. Under these joint venture agreements, none of the co-venturers may have the power to control the venture, and an impasse could be reached regarding matters pertaining to the joint venture, including the timing of a liquidation, which might have a negative impact on the joint venture and decrease returns to the Members. Joint ventures with other Manager programs would also be subject to the risks associated with joint ventures with unaffiliated third parties.

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**Risks Related to Our Corporate Structure**

***We do not set aside funds in a sinking fund to pay distributions, so you must rely on our revenues from operations and other sources of funding for distributions. These sources may not be sufficient to meet these obligations.***

We do not contribute funds on a regular basis to a separate account, commonly known as a sinking fund, to pay distributions on the Interests. Accordingly, you will have to rely on our cash from operations and other sources of liquidity, such as borrowed funds and proceeds from sale of the assets, for distribution payments. Our ability to generate revenues from operations in the future is subject to general economic, financial, competitive, legislative, statutory and other factors that are beyond our control. Moreover, we cannot assure you that we will have access to additional sources of liquidity if our cash from operations are not sufficient to fund distributions to you. Our need for such additional sources may come at undesirable times, such as during poor market or credit conditions when the costs of funds are high and/or other terms are not as favorable as they would be during good market or credit conditions. The cost of financing will directly impact our results of operations, and financing on less than favorable terms may hinder our ability to make a profit. Your right to receive distributions on your Interests is junior to the right of our general creditors to receive payments from us. If we do not have sufficient funds to meet our anticipated future operating expenditures and debt repayment obligations as they become due, then you could lose all or part of your investment. We currently do not have any revenues.

***You will have limited control over changes in our policies and operations, which increases the uncertainty and risks you face as a Member.***

Our Manager determines our major policies, including our policies regarding financing, growth and debt capitalization. Our Manager may amend or revise these and other policies without a vote of the Members. Our Manager's broad discretion in setting policies and our Members' inability to exert control over those policies increases the uncertainty and risks you face as a Member. In addition, our Manager may change our investment objectives without seeking Member approval.

***Our ability to make distributions to our Members is subject to fluctuations in our financial performance, operating results and capital improvement requirements.***

Currently, our strategy includes paying a quarterly distribution to investors. under this Offering that would result in positive annualized return on investment, net of expenses, of which there is no guarantee. Class A Members will receive 80% (eighty percent) of the Distributable Cash out of the Class A Unit Percentage Share to Class A Members and 70% (seventy percent) of Distributable Cash out of the Class B Unit Percentage Share to Class B Members, as defined in the Company's Operating Agreement. (See "SECURITIES BEING OFFERED AND SUMMARY OF OPERATING AGREEMENT" starting on page 54) In the event of downturns in our operating results, decision by our Manager to acquire additional properties or other investments, capital improvements to our properties, or other factors, we may be unable, or may decide not to pay distributions to our Members. The timing and amount of distributions are the sole discretion of our Manager who will consider, among other factors, our financial performance, any debt service obligations, any debt covenants, and capital expenditure requirements. We cannot assure you that we will generate sufficient cash in order to pay distributions.

***Investors will not receive the benefit of the regulations provided to real estate investment trusts or investment companies.***

We are not a real estate investment trust and enjoy a broader range of permissible activities. Under the Investment Company Act of 1940, an "investment company" is defined as an issuer which is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in securities; is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in such business and has any such certificate outstanding; or is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40 per centum of the value of such issuer's total assets (exclusive of Government securities and cash items) on an unconsolidated basis. Under the Investment Advisers Act of 1940, an "investment adviser" is defined, in relevant part, as any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities.

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We intend to operate in such manner as not to be classified as an "investment company" within the meaning of the Investment Company Act of 1940 as we intend on primarily holding real estate. In addition, the Manager is not an investment adviser registered with the SEC, will not be governed by the Investment Advisers Act of 1940, and will not be acting in such capacity with respect to the Company because the Company will only be investing in real estate backed investments. The management and the investment practices and policies of ours are not supervised or regulated by any federal or state authority. As a result, investors will be exposed to certain risks that would not be present if we were subjected to a more restrictive regulatory situation.

***The exemption from the Investment Company Act of 1940 may restrict our operating flexibility. Failure to maintain this exemption may adversely affect our profitability.***

We do not believe that at any time we will be deemed an "investment company" under the Investment Company Act of 1940 as we do not intend on trading or selling securities. Rather, we intend to hold and manage real estate. However, if at any time we may be deemed an "investment company," we believe we will be afforded an exemption under Section 3(c)(5)(C) of the Investment Company Act of 1940, as amended (referred to in this Offering as the "1940 Act"). Section 3(c)(5)(C) of the 1940 Act excludes from regulation as an "investment company" any entity that is primarily engaged in the business of purchasing or otherwise acquiring "mortgages and other liens on and interests in real estate". To qualify for this exemption, we must ensure our asset composition meets certain criteria. Generally, 55% of our assets must consist of qualifying mortgages and other liens on and interests in real estate and the remaining 45% must consist of other qualifying real estate-type interests. Maintaining this exemption may adversely impact our ability to acquire or hold investments, to engage in future business activities that we believe could be profitable, or could require us to dispose of investments that we might prefer to retain. If we are required to register as an "investment company" under the 1940 Act, then the additional expenses and operational requirements associated with such registration may materially and adversely impact our financial condition and results of operations in future periods.

***If we are deemed to be an investment company under the Investment Company Act and are therefore ineligible to rely on Regulation A to sell securities, the unregistered issuance of our securities to investors pursuant to this Offering would be considered in violation of Section 5 of the Securities Act if there was no other available exemption from registration for this issuance giving the investors a right of rescission.***

We do not believe that at any time we will be deemed an "investment company" under the Investment Company Act. However, if the Company is deemed to be an investment company under the Investment Company Act, we would no longer be eligible to offer our securities under Regulation A of the Securities Act in this Offering, or at all. If this occurs, the Company will have to immediately terminate this Offering. The unregistered issuance of our securities to investors pursuant to this Offering would be considered in violation of Section 5 of the Securities Act if there was no other available exemption from registration for this issuance. The securities sold in this Offering prior to such termination would be subject to a private right of action for rescission or damages by the purchasing investors. Additionally, the Company may not have the funds required to address all rescissions if a large number of investors seek rescission at the same time, and as a result, we may be delayed in the delivery of funds for such rescissions and may be required to sell some of our assets, which may take significant amounts of time and may yield less than is needed to meet our rescission obligations. Additionally, the Company would not be able to raise funds in any other offering pursuant to Regulation A to meet such rescission obligations, as the Company would not be eligible to do so.

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***NOTICE REGARDING AGREEMENT TO ARBITRATE***

THIS OFFERING MEMORANDUM REQUIRES THAT ALL INVESTORS ARBITRATE ANY DISPUTE, OTHER THAN THOSE CLAIMS UNDER FEDERAL SECURITIES LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER, ARISING OUT OF THEIR INVESTMENT IN THE COMPANY. ALL INVESTORS FURTHER AGREE THAT THE ARBITRATION WILL BE BINDING AND HELD IN THE STATE OF DELAWARE. EACH INVESTOR ALSO AGREES TO WAIVE ANY RIGHTS TO A JURY TRIAL. OUT OF STATE ARBITRATION MAY FORCE AN INVESTOR TO ACCEPT A LESS FAVORABLE SETTLEMENT FOR DISPUTES. OUT OF STATE ARBITRATION MAY ALSO COST AN INVESTOR MORE TO ARBITRATE A SETTLEMENT OF A DISPUTE.

The Operating Agreement contains a mandatory dispute resolution process which may limit the rights of investors to some legal remedies and forums otherwise available. This Agreement contains a provision which requires that all claims arising from Member's investment in the Company be resolved through arbitration.

For Members' information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Arbitration is final and binding on the parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The parties are waiving their right to seek remedies in court, including the right to jury trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Pre-arbitration discovery is generally more limited than and potentially different in form and scope from court proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Arbitration Award is not required to include factual findings or legal reasoning and any party's right to appeal or to seek modification of a ruling by the arbitrators is strictly limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The panel of arbitrators may include a minority of persons engaged in the securities industry. Such arbitration provision limits the rights of an investor to some legal remedies and rights otherwise available.

The dispute resolution process provisions do not apply to claims under the federal securities laws. By agreeing to the dispute resolution process, including mandatory arbitration, investors will not be deemed to have waived the company's compliance with the federal securities laws and the rules and regulations thereunder.

**Insurance Risks**

***We may suffer significant losses that are not covered by insurance.***

The geographic areas in which we invest in properties may be at risk for damage to property due to certain weather-related and environmental events, including such things as severe blizzards, fires, thunderstorms, flooding, sinkholes, earthquakes, tornadoes, and hurricanes. To the extent possible, the Manager may but is not required to attempt to acquire insurance against some of these risks. However, such insurance may not be available (or may only be available at cost-prohibitive costs) in all areas, nor are all hazards insurable as some may be deemed acts of God or be subject to other policy exclusions.

Furthermore, an insurance company may deny coverage for certain claims, and/or determine that the value of the claim is less than the cost to restore the property, and a lawsuit could have to be initiated to force them to provide coverage, resulting in further losses in income to the Company. Additionally, properties may now contain or come to contain mold, which may not be covered by insurance and has been linked to health issues.

**Environmental and Litigation Risks**

***We may be required to mitigate or compensate others for certain environmental issues, resulting in increased costs.***

Under various federal, state and local environmental and public health laws, regulations and ordinances, the Company may be required, regardless of knowledge or responsibility, to investigate and remediate the effects of hazardous or toxic substances or petroleum product releases (including in some cases natural substances such as methane or radon gas) and may be held liable under these laws or common law to a governmental entity or to third-parties for property, personal injury or natural resources damages and for investigation and remediation costs incurred as a result of the real or suspected presence of these substances in soil or groundwater beneath a Property. These damages and costs may be substantial and may exceed insurance coverage the Company has for such events.

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Structures on a property may have contained hazardous or toxic substances, or have released pollutants into the environment; or may have known or suspected asbestos-containing building materials, lead based paint, mold, or insect infestations (such as roaches or bed bugs), that the Company may be required to mitigate. Undetected or unmitigated conditions such as these may cause (or be suspected to cause) personal injury and/or property damage, which could subject the properties, the Manager, and/or the Company to litigation with and liability to third parties.

The Manager will attempt to limit exposure to such conditions by conducting due diligence on a property, however, all or some of these conditions may not be discovered or occur until after that property has been acquired by the Company.

***We may be subject to liability for alleged or actual harm to third parties and costs of litigation.***

Owning and operating the properties subjects the Company to the risk of lawsuits filed by tenants, past and present employees, contractors, competitors, business partners, and others in the ordinary course of business. As with all legal proceedings, no assurance can be provided as to the outcome of these matters, and legal proceedings can be expensive and time consuming. The Company may not be successful in the defense or prosecution of these lawsuits, which could result in settlements or damages that could result in substantial Losses to the Company. Even if the Company is successful, there may be substantial costs associated with the legal proceeding, and the Manager may be delayed or prevented from implementing the business plan of the Company.

***We may acquire properties which are not in compliance with the Americans with Disabilities Act***

Under the Americans with Disabilities Act of 1990 (the ADA), all public accommodations are required to meet certain federal requirements related to access and use by disabled persons. A determination that a property owned and operated by the Company is not in compliance with the ADA could result in imposition of fines or an award of damages to private litigants. Furthermore, modifications made to comply with the ADA may result in unforeseen costs, which may impair the Company's ability to make Distributions to its Members.

**Federal Income Tax Risks**

***The Internal Revenue Service may challenge our characterization of material tax aspects of your investment in the Interests.***

An investment in Interests involves material income tax risks which are discussed in detail in the section of this offering entitled "TAX TREATMENT OF COMPANY AND ITS SUBSIDIARIES" starting on page 69. You are urged to consult with your own tax advisor with respect to the federal, state, local and foreign tax considerations of an investment in our Interests. We may or may not seek any rulings from the Internal Revenue Service regarding any of the tax issues discussed herein. Accordingly, we cannot assure you that the tax conclusions discussed in this offering, if contested, would be sustained by the IRS or any court. In addition, our legal counsel is unable to form an opinion as to the probable outcome of the contest of certain material tax aspects of the transactions described in this offering, including whether we will be characterized as a "dealer" so that sales of our assets would give rise to ordinary income rather than capital gain. Our counsel also gives no opinion as to the tax considerations to you of tax issues that have an impact at the individual or partner level.

***You may realize taxable income without cash distributions, and you may have to use funds from other sources to fund tax liabilities.***

As a Member of the Company, you will be required to report your allocable share of the Company's taxable income on your personal income tax return regardless of whether you have received any cash distributions from us. It is possible that your Interests will be allocated taxable income in excess of your cash distributions. We cannot assure you that cash flow will be available for distribution in any year. As a result, you may have to use funds from other sources to pay your tax liability.

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***You may not be able to benefit from any tax losses that are allocated to your Interests.***

Interests may be allocated their share of tax losses should any arise. Section 469 of the Internal Revenue Code limits the allowance of deductions for losses attributable to passive activities, which are defined generally as activities in which the taxpayer does not materially participate. Any tax losses allocated to investors will be characterized as passive losses, and, accordingly, the deductibility of such losses will be subject to these limitations. Losses from passive activities are generally deductible only to the extent of a taxpayer's income or gains from passive activities and will not be allowed as an offset against other income, including salary or other compensation for personal services, active business income or "portfolio income", which includes non-business income derived from dividends, interest, royalties, annuities and gains from the sale of property held for investment. Accordingly, you may receive no benefit from your share of tax losses unless you are concurrently being allocated passive income from other sources.

***We may be audited which could subject you to additional tax, interest and penalties.***

Our federal income tax returns may be audited by the Internal Revenue Service. Any audit of the Company could result in an audit of your tax return. The results of any such audit may require adjustments of items unrelated to your investment, in addition to adjustments to various Company items. In the event of any such audit or adjustments, you might incur attorneys' fees, court costs and other expenses in contesting deficiencies asserted by the Internal Revenue Service. You may also be liable for interest on any underpayment and penalties from the date your tax was originally due. The tax treatment of all Company items will generally be determined at the Company level in a single proceeding rather than in separate proceedings with each Member, and our Manager is primarily responsible for contesting federal income tax adjustments proposed by the Internal Revenue Service. In such a contest, our Manager may choose to extend the statute of limitations as to all Members and, in certain circumstances, may bind the Members to a settlement with the Internal Revenue Service. Adjustments to Company items would continue to be determined at the Company level however, and any such adjustments would be accounted for in the year they take effect, rather than in the year to which such adjustments relate. Our Manager will have the discretion in such circumstances either to pass along any such adjustments to the Members or to bear such adjustments at the Company level.

***State and local taxes and a requirement to withhold state taxes may apply, and if so, the amount of net cash from open payable to you would be reduced.***

The state in which you reside may impose an income tax upon your share of our taxable income. Further, states in which we will own properties may impose income taxes upon your share of our taxable income allocable to any Company property located in that state. Many states have implemented or are implementing programs to require companies to withhold and pay state income taxes owed by non-resident Members relating to income-producing properties located in their states, and we may be required to withhold state taxes from cash distributions otherwise payable to you. You may also be required to file income tax returns in some states and report your share of income attributable to ownership and operation by the Company of properties in those states. In the event we are required to withhold state taxes from your cash distributions, the amount of the net cash from operations otherwise payable to you would be reduced. In addition, such collection and filing requirements at the state level may result in increases in our administrative expenses that would have the effect of reducing cash available for distribution to you. You are urged to consult with your own tax advisors with respect to the impact of applicable state and local taxes and state tax withholding requirements on an investment in our Interests.

***Legislative or regulatory action could adversely affect investors.***

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of the federal income tax laws applicable to investments similar to an investment in our Interests. Additional changes to the tax laws are likely to continue to occur, and we cannot assure you that any such changes will not adversely affect your taxation as a Member. Any such changes could have an adverse effect on an investment in our Interests or on the market value or the resale potential of our properties. You are urged to consult with your own tax advisor with respect to the impact of recent legislation on your investment in Interests and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our Interests.

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**SPECIAL INFORMATION REGARDING FORWARD LOOKING STATEMENTS**

Some of the statements in this offering circular are "forward-looking statements." These forward-looking statements involve certain known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, among others, the factors set forth above under "Risk Factors." The words "believe," "expect," "anticipate," "intend," "plan," and similar expressions identify forward-looking statements. We caution you not to place undue reliance on these forward-looking statements.

We undertake no obligation to update and revise any forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements in this document to reflect any future developments. However, the Private Securities Litigation Reform Act of 1995 is not available to us as a non-reporting issuer.

**DILUTION**

Investors should understand the potential for dilution. The investor's stake in a Company could be diluted due to the company issuing additional units. In other words, when the Company issues more units, the percentage of the company that you own will go down, even though the value of the Company may go up. Such dilution may reduce the Investor's control and economic interests in the Company. If you are making an investment expecting to own a certain percentage of the company or expecting each unit to hold a certain amount of value, it's important to realize how the value of those units can decrease by actions taken by the company. Dilution can make drastic changes to the value of each unit, ownership percentage, voting control, and earnings per unit.

The Company's issuance of Class A and Class B Units in this offering (or in any future offerings) will have a dilutive effect on the Company's current Class A and Class B investors. As the Company sells more Units, the percentage share of the Company owned by each Class A and Class B unit holder of the Company will go down. Since we do not know how many Units the Company will be able to sell, the Company's Class A and Class B Units will be subject to dilution in an unpredictable amount.

In addition, Class A and Class B Units do not represent 100% of the Company. Affiliate of our Manager were granted Class C membership interests in the Company for $10.00 per interest for an aggregate investment of $1,000, and contributed those Units to our Manager as of January 1, 2025. The Class C interest holders collectively receive fixed percentages of Distributable Cash, profit and loss allocations, and voting rights, regardless of how many Class A and Class B Units are outstanding, such that each Class C membership interest is far more valuable than the Class A and Class B membership interests for which investors in this offering are paying $12.29 or more. The Company does not intend to issue any additional Class C Units, and in any event, the issuance of additional Class C Units would not affect the Distributable Cash, profit and loss allocations, and voting rights of Class A and Class B Members. However, the Class C interest holders will receive substantially more Distributable Cash, profit, and loss allocation, and voting rights per interest than Class A or Class B interest holders.

**DETERMINATION OF OFFERING PRICE**

Our initial Offering Price was arbitrary with no relation to value of the company. Since the beginning of this offering, the Manager has calculated a reasonable estimate of the value of the Unit of the Company, revising the Base Price up from $10 to 10.19 in December 2022, 11.08 in January 2024, and 12.29 in March 2025, using a process which considers:

(1) estimated values of each of our commercial real estate assets and investments, including related liabilities, based upon

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) market capitalization rates, comparable sales information, interest rates, net operating income,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to debt, default rates, discount rates and loss severity rates,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for properties that have development or value add plans, progress along such development or value add plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in certain instances, reports of the underlying real estate provided by an independent valuation expert

(2) the price of liquid assets for which third party market quotes are available;

(3) accruals of our periodic distributions; and

(4) estimated accruals of our operating revenues and expenses.

Note that the determination of the value of our Units is not based on, nor intended to comply with, fair value standards under GAAP, and our valuation may not be indicative of the price that we would receive for our assets at current market conditions. The majority of our assets consist of commercial real estate investments and, as with any commercial real estate valuation protocol, the conclusions reached by our Manager's internal asset management team are based on a number of judgments, assumptions and opinions about future events that may or may not prove to be correct. The use of different judgments, assumptions or opinions would likely result in different estimates of the value of our commercial real estate assets and investments, and therefore in a different valuation of our Units. In addition, this per Unit value may not fully reflect certain material events involving the Company, its real estate investments, or the real estate market as a whole. Such unreflected events could include events which have already taken place that are not yet known to Management or for which the financial impact of such events is not immediately quantifiable, as well as future events which occur after the qualification of this Offering Circular. Any potential disparity in our Unit valuation may be in favor of either Members who buy new units, or existing Members who already purchased Units.

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**PLAN OF DISTRIBUTION**

This Offering shall remain open for three years following the Qualification Date of this Offering unless earlier terminated by the Manager in its sole and absolute discretion, provide that the Manager may extend the Offering for additional periods so long as it is compliant with the requirements of Regulation A. The Offering Period will commence upon the Offering Statement being declared qualified.

The Investor Interests (Interests) are self-underwritten and are being offered and sold by the Company on a best efforts basis. Each Unit will be sold for the Base Price, which is currently $12.29 but may be adjusted by amendments of this Operating Circular, plus a Commission Adjustment (if a broker-dealer other than WealthForge is involved in the transaction). Units are being offered through three separate channels:

· The Manager, its employees, officers and directors, will advertise the offering to investors directly. Investors who purchase Units directly from the Company will purchase at the Base Price with no Commission Adjustment, and will receive Class A or Class B Units. Investors will receive Class A Units if they either (a) purchase at least One Hundred Thousand Dollars ($100,000) worth of Investor Interests; or (b) have previously invested in Affiliates of the Manager, as determined in the sole discretion of the Manager. Eligibility for Class A membership will be assessed based on the potential investor's historical involvement with and contributions to the Manager's Affiliates' business activities prior to the commencement of this offering and is intended to recognize individuals whose support has been crucial to the Manager's success. All other direct investors shall be admitted as Class B Members. Investors who are admitted as Class B Members and later purchase additional Units resulting in a total Unreturned Capital Contribution of $100,000 or higher will have their Class B Units converted to Class A Units as of the date the Capital Contribution bringing their total above $100,000 is received in the Company's escrow account and determined to be in good order. No commissions will be paid for the sale of these interests beyond the four-tenths of one percent (0.40%) commission to WealthForge discussed above. However, the Company will also pay WealthForge a $1,500 per month Platform and Syndication Fee for as long as the offering is open.

· Investors who purchase Units through an investment adviser registered under the Investment Advisers Act of 1940, as amended (RIAs) and who have been advised by such adviser on an ongoing basis regarding investments other than in the Company, but do not utilize a broker-dealer, will purchase at the Base Price with no Commission Adjustment and will receive Class A Units. The Company will pay a per transaction fee of approximately $50 per transaction to SEI Altigo for Units purchased through SEI Altigo's platform by certain Registered Investment Advisers.

· Investors who purchase Units through a registered broker-dealer will receive Class A Units and will purchase at the Base Price plus a Commission Adjustment, calculated as described below. The Company will pay an upfront selling commission in connection with the purchase of these Units. The Company has entered into (and will enter into) arrangements to pay a placement fee of up to six (6%) percent of Gross Offering Proceeds ("Placement Fee") to participating brokers. This Placement Fee may be divided among multiple brokers, which may include brokers who work directly with investors as well as brokers who do not work directly with investors but instead provide introductions to financial intermediaries who work with investors (such as other broker-dealers, registered investment advisers, family offices, private banks, consultants, financial services platforms, financial advisors and similar financial intermediaries). The Placement Fee is in addition to the four-tenths of one percent (0.40%) commission payable to WealthForge for administrative and compliance related functions, for a total Sellers' Commission of up to six and four-tenths percent (6.40%).

· The Commission Adjustment will be calculated as (100% / 100% - (Placement Fee Amount) – 1) \* Base Price, rounded to the nearest cent. For example, since the Base Price for a particular transaction is $12.29, if the Placement Fee is 6%, the Commission Adjustment will be ((100/(100-6 = 94))-1) \* $12.29 = $0.79, for a total cost of $13.08 per Unit, and an investor investing the minimum $10,000 will receive 848.18 Class A Units. If the Placement Fee is 2%, the Commission Adjustment will be ((100/(100-2 = 98))-1 =) \* $12.29 = $0.25, for a total cost of $12.54 per Unit, and an investor investing the minimum $10,000 will receive 797.45 Class A Units.

· Investors who purchase at least $500,000 in Class A Units, who purchase Units through a RIA, who purchase units through a registered broker-dealer, or who are current employees of the Manager or any Development Partner with whom the Company does business are also eligible to take advantage of the Company's Side Letter Agreement, the Form of which is attached to as Exhibit 6.2 hereto. Under this Side Letter Agreement, eligible investors (referred to as Class A+ Investors) are assigned cashflows from the Company's Class C Member (the Manager) such that the Class A+ investors will receive eighty-five percent (85%) of eligible Distributable Cash instead of eighty percent (80%). Any disputes under the Side Letter Agreement are subject to the same dispute resolution process as disputes under the Company's Operating Agreement. While this Agreement shall be open to all Class A Members during the duration of this offering, the Side Letter Agreement shall terminate for any Class A Unit assigned, sold, or transferred (including involuntary transfers by operation of law) from the Class A+ Investors to any other Person, unless the Manager consents to the transfer of this Agreement in its sole and unlimited discretion. The terms full terms of the Side Letter Agreement are found in Exhibit 6.2 hereto.

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No compensation will be paid to any principal, the Manager, or any affiliated company or party with respect to the sale of Investor Interests. This means that no compensation will be paid to Jason Weimer, Robert Barlau, Skip Johnson, Austin Schmitt or affiliated companies with respect to the sale of the Investor Interests. We are relying on Rule 3a4-1 of the Securities Exchange Act of 1934, Associated Persons of an Issuer Deemed not to be Brokers. The applicable portions of the rule state that associated persons (including companies) of an issuer shall not be deemed brokers if they a) perform substantial duties at the end of the offering for the issuer; b) are not broker dealers; and c) do not participate in selling securities more than once every 12 months, except for any of the following activities: i) preparing written communication, but no oral solicitation; or ii) responding to inquiries provided that the content is contained in the applicable registration statement; or iii) performing clerical work in effecting any transaction. Neither the Company, its Manager, nor any affiliates conduct any activities that fall outside of Rule 3a4-1 and are therefore not brokers nor are they dealers. All subscription funds which are accepted will be deposited directly into the Company's escrow account. The purchase price for Investor Interests will depend on the way the investor invests as described above, with a minimum investment of $10,000. There is no minimum raise amount. Subscription Agreements are irrevocable.

The Company plans to use Gratus Capital's current network of investors to directly solicit investments as well as various forms of advertising. Subject to the anti-fraud rules of the Securities Act of 1933 and corresponding state regulations, the Company is permitted to generally solicit investors by using advertising mediums, such as print, radio, TV, and the Internet. The Company plans to directly solicit investors using the Internet through a variety of existing internet advertising mechanisms, such as search based advertising, search engine optimization, and the Manager's website at <u>gratusfunds.com</u>.

Please note that the Company will not communicate any information to prospective investors except as may be permitted under applicable securities laws without providing access to the Offering. The Offering may be delivered through the Manager's website, through email, or by hard paper copy.

Investments will be processed on a first come, first served basis, up to the total Offering Amount of $50,000,000. The minimum accepted from any Subscriber is $10,000. Subscription funds may remain in the Company's escrow account up until such time of a purchase of real estate asset or the repayment of a Manager Advance note payable to the Manager or an affiliate of the Manager in which the proceeds were used to purchase a real estate asset (such advances to be repaid with simple annualized interest of up to ten percent (10%)).

WealthForge is not participating as an underwriter of the offering and under no circumstance will it, as part of this offering, solicit any investment in the company, recommend the company's securities or provide investment advice to any prospective investor. Rather, WealthForge's involvement in the offering is limited to acting as Managing Broker Dealer and an accommodating broker-dealer for the investments solicited by the Company. WealthForge does not expressly or impliedly affirm the completeness or accuracy of the Offering Circular. All inquiries regarding this offering or services provided by WealthForge and its affiliates should be made directly to the company.

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Investors should be aware that FINRA and FINRA members may receive the following compensation in connection with this offering:

· WealthForge will receive a Transaction Management fee of four-tenths of one percent (0.40%) of the Gross Offering Proceeds, up to a maximum of $200,000 (if all Units are sold).

· WealthForge will receive a Platform and Syndication Fee of $1,500 per month, up to a maximum of $63,000 (if the offering remains open for three years and six months following qualification).

· WealthForge will receive a Regulatory Filing Service Fee of $3,500 for the submission of the 5110, and will receive an additional $350 for the filing of an amended 5110 with FINRA (total $700).

· FINRA will receive a 5110 Filing fee of $8,000.

· Registered broker-dealers will receive a Placement Fee of up to six (6%) percent of Gross Offering Proceeds, up to a maximum of $3,000,000 (if 100% of the Maximum Dollar Amount of $50,000,000 is sold through this channel).

Note that the Company's Financial Statement notes are inconsistent with these terms because they describe a previous Broker Dealer Agreement with WealthForge which applies to sales of Company interests under its previous Regulation A Offering. That Agreement has been superseded by a new Managing Broker-Dealer Agreement attached hereto as Exhibit 1.1, which will become effective when this offering is qualified.

<u>Investor Suitability Standards</u>

Our Class A interests are being offered and sold only to "qualified purchasers" (as defined in Regulation A under the Securities Act). "Qualified purchasers" include: (i) "accredited investors" under Rule 501(a) of Regulation D and (ii) all other investors so long as their investment in any of the interests of the Company does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons). We reserve the right to reject any investor's subscription in whole or in part for any reason, including if we determine in our sole and absolute discretion that such investor is not a "qualified purchaser" for purposes of Regulation A.

For an individual potential investor to be an "accredited investor" for purposes of satisfying one of the tests in the "qualified purchaser" definition, the investor must be a natural person who has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. an individual net worth, or joint net worth with the person's spouse, that exceeds $1,000,000 at the time of the purchase, excluding the value of the primary residence of such person and the mortgage on that primary residence (to the extent not underwater), but including the amount of debt that exceeds the value of that residence and including any increase in debt on that residence within the prior 60 days, other than as a result of the acquisition of that primary residence (this definition of net worth will also apply to investors that are non-accredited natural persons for purposes of determining whether they are qualified purchasers); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. earned income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

If the investor is not a natural person, different standards apply. See Rule 501 of Regulation D for more details. For purposes of determining whether a potential investor is a "qualified purchaser," annual income and net worth should be calculated as provided in the "accredited investor" definition under Rule 501 of Regulation D.

If you live outside the United States, it is your responsibility to fully observe the laws of any relevant territory or jurisdiction outside the United States in connection with any purchase, including obtaining required governmental or other consent and observing any other required legal or other formalities.

In addition to the foregoing, each prospective investor must represent in writing that they meet, among other things, all of the following requirements:

● The prospective investor has received, reviewed, and understands this offering circular and its exhibits, including our Operating Agreement;

● The prospective investor understands that an investment in interests involves substantial risks;

● The prospective investor has adequate means of providing for their financial requirements, both current and anticipated, and has no need for liquidity in this investment;

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● The prospective investor can bear the economic risk of losing their entire investment in interests;

● The prospective investor has such knowledge and experience in business and financial matters as to be capable of evaluating the merits and risks of an investment in interests;

● The prospective investor has reviewed and accepts the terms of the WealthForge Privacy Policy attached to the Subscription Agreement; and

● Except as set forth in the subscription agreement, no representations or warranties have been made to the prospective investor by the Company or any partner, agent, employee, or affiliate thereof, and in entering into this transaction the prospective investor is not relying upon any information, other than that contained in the offering statement of which this offering circular is a part, including its exhibits.

In addition, within the subscription agreement, investors must agree to indemnify the Company for their misrepresentations to the Company. Notwithstanding the foregoing, the Company is not requiring, and cannot require, investors to waive any of their rights to bring claims against the Company under the Securities Act, Exchange Act or similar state laws.

Our Manager will be permitted to make a determination that the subscribers of Class A interests in this offering are qualified purchasers in reliance on the information and representations provided by the subscriber regarding the subscriber's financial situation. The Manager will rely on the information provided, and neither the Company nor its Manager will conduct an independent analysis of whether potential a member meets the suitability requirements for this investment. Before making any representation that your investment does not exceed applicable federal thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to http://www.investor.gov. Our Manager may accept or reject any subscription, in whole or in part, for any reason or no reason at all.

An investment in our Class A interests may involve significant risks. Only investors who can bear the economic risk of the investment for an indefinite period of time and the loss of their entire investment should invest in our interests. No public market exists for the securities, and no public market is expected to develop following this offering.

<u>Additional Information Regarding this Offering Circular</u>

We have not authorized anyone to provide you with information other than as set forth in this offering circular. Except as otherwise indicated, all information contained in this offering circular is given as of the date of this offering circular. Neither the delivery of this offering circular nor any sale made hereunder shall under any circumstances create any implication that there has been no change in our affairs since the date hereof.

From time to time, we may provide an "offering circular supplement" that may add, update or change information contained in this offering circular. Any statement that we make in this offering circular will be modified or superseded by any inconsistent statement made by us in a subsequent offering circular supplement. The offering statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this offering circular. You should read this offering circular and the related exhibits filed with the SEC and any offering circular supplement together with additional information contained in our annual reports, semiannual reports and other reports and information statements that we will file periodically with the SEC.

The offering statement and all supplements and reports that we have filed or will file in the future can be read on the SEC website at www.sec.gov.

**USE OF PROCEEDS**

The following table illustrates the amount of net proceeds to be received by the Company on the sale of the Class A interests offered hereby and the intended uses of such proceeds over an approximate twelve 12-month period. It is possible that we may not raise the entire offering amount through this offering circular. In such case, we will reallocate the use of proceeds as the Manager deems to be in the best interests of the Company in order to effectuate its business plan. The intended use of proceeds are set forth in the following table. Note that the offering scenarios presented below are for illustrative purposes only and the actual amounts of proceeds, if any, may differ.

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|  | **0%** | **25%** | **50%** | **75%** | **100%** |
| **Gross Proceeds** | **0.00** | **12500000.00** | **25000000.00** | **37500000.00** | **50000000.00** |
| Offering Expenses (BlueSky, Legal, Accounting, etc.)<sup>1</sup> | 87280.00 | 87280.00 | 87280.00 | 87280.00 | 87280.00 |
| Managing Broker-Dealer Fees<sup>2</sup> | 0.00 | 50000.00 | 100000.00 | 150000.00 | 200000.00 |
| SEI Altigo Transaction Fees (Estimated as $50 per $100,000 in capital raised) <sup>3</sup> | 0.00 | 6250.00 | 12500.00 | 18750.00 | 25000.00 |
| Broker Dealer Fee (Estimated as 6% commission on 10% of funds raised)<sup>4</sup> | 0.00 | 75000.00 | 150000.00 | 225000.00 | 300000.00 |
| Asset Management Fee<sup>5</sup> | 105978.12 | 247763.00 | 413715.00 | 579667.00 | 750000.00 |
| Payoff Loan from Manager Affiliate<sup>6</sup> | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| **Net Proceeds (Deals)** | **(193258.12)** | **12033707.00** | **24236505.00** | **36439303.00** | 48637720.00 |
| Acquisition & Origination Fees<sup>7</sup> | 0.00 | 701651.53 | 1412323.20 | 2122994.86 | 2833404.98 |
| Working Capital | 0.00 | 250000.00 | 500000.00 | 750000.00 | 1000000.00 |
| Legal and Accounting<sup>8</sup> | 0.00 | 5000.00 | 10000.00 | 15000.00 | 20000.00 |
| Related Acquisition Costs (Closing Costs)<sup>9</sup> | 0.00 | 58764.79 | 118285.03 | 177805.27 | 237303.60 |
| Acquisitions (NET PURCHASES) | (193258.12) | 11018290.68 | 22195896.77 | 33373502.87 | 44547011.42 |

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(1) These costs assume the costs related with completing the Form 1-A as well as those costs related to the services of a transfer agent, listing fees, marketing costs, our interim financial statements, and our legal costs. The Company will pay these fees out of its current assets. The Company does not expect these expenses to vary with the total amount raised, and expects such fees to be broken out approximately as follows:

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| | |
|:---|:---|
| Legal Fees | $35000 |
| WealthForge Platform and Syndication Fee (one year at $1,500 per month) | $18000 |
| WealthForge Regulatory Service Filing Fee | $350.00 |
| Organization and Blue-Sky Fees | $16430 |
| FINRA 5110 Filing Fee | $8000 |
| SEI Altigo- new offering fee | $2000 |
| Transfer Agent Fees | $3500 |
| Other Professional Fees | $4000 |
| **TOTAL** | $**87280** |

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(2) The Company has engaged WealthForge Securities, LLC member FINRA/SIPC ("WealthForge"), to act as the Managing Broker-Dealer in connection with this offering. The Sellers' Commission reported in the table above includes a four-tenths of one percent (0.40%) commission on all the Investor Interests being offered payable to WealthForge for performing administrative and compliance related functions. It does not include other fees payable by the Company to WealthForge, such as the "Broker Dealer Fee" broken out separately below, or the "WealthForge Platform and Syndication Fee" (of $1,500/month) and "Regulatory Filing Service Fee" (of $350/filing) which are included in the "Offering Expenses (BlueSky, Legal, Accounting, etc.)" category above. Note that the Company's Financial Statement notes are inconsistent with these terms because they describe a previous Broker Dealer Agreement with WealthForge which applies to sales of Company interests under its previous Regulation A Offering. That Agreement has been superseded by a new Managing Broker-Dealer Agreement attached hereto as Exhibit 1.1, which will become effective when this offering is qualified.

(3) The Company will pay a per transaction fee of approximately $50 per transaction to SEI Altigo for Units purchased through SEI Altigo's platform by certain Registered Investment Advisers.

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(4) The Company will pay an upfront commission in connection with the purchase of Investor Units through registered broker-dealers. The Company has entered into, or will enter into arrangements to pay a placement fee of up to six (6%) percent of Gross Offering Proceeds ("Placement Fee") to participating brokers. For investments involving both a broker-dealer and an RIA, the Placement Fee and Market Place Fee will be collectively capped at 6% of the Gross Offering Proceeds. The Company estimates that 10% of the total amount invested will be invested through broker-dealers who will charge the full 6% Placement Fee.

(5) The Manager or its designated affiliate(s) will receive an asset management fee equal to the greater of 1% per annum of the total of all Class A, Class B, and Class C member's initial Capital Contributions (without reduction for any returned capital) OR 2% of the total gross income of the Fund. These fees are difficult to determine at this time. The Asset Management Fee shall be paid no more frequently than monthly, at the sole discretion of the Manager. It is anticipated that these costs will be paid from cash generated from operations, or with funds borrowed from an affiliate of the Managing Member of the Company, which would currently bear interest at a rate of 9.57% as of January 1, 2025. See note (7) below.

(6) In order to allow it to pre-fund investments in real estate, the Company has entered into a Promissory Note with an affiliate of the Managing Member of the Company which accrues simple interest at the coupon rate on a U.S. 10-year treasury note + five percent (5%) per annum, not to exceed 10% (the "Alternative Base Rate"). This rate adjusts semi-annually on January 1 and July 1 of each year. As of December 31, 2024, the Company did not have any outstanding balance pursuant to this arrangement.

(7) The Manager will be paid a two percent (2%) Acquisition Fee based on the acquisition price of a property (which, with typical leverage, will usually come out to approximately 6% to 8% of the total purchase price, or of the total cost of property acquisition and development in the case of new developments). This number assumes the leverage of the properties. The Manager will also be paid four percent (4%) of any amounts loaned by the Company. As of May 31, 2025, the Manager has been paid $860,742.16 in acquisition fees.

(8) Costs for accounting and legal fees associated with being a public company for the next 12 months. It is anticipated that these costs will be paid from cash generated from operations.

(9) We believe acquisition-related and closing costs could be between 1% and 3% of the value of the acquisition. These costs could include travel to states in which we purchase properties, research costs, closing costs, and other costs. Our ability to quantify any of the expenses is difficult as they will all depend on size of deal, price, due diligence performed (such as appraisal, environmental, property condition reports), legal and accounting, etc. We expect the related acquisition costs to be correlated with the price of the property. The Company has not directly incurred any acquisition related costs in connection with its current real estate investments.

The Use of Proceeds sets forth how we intend to use the funds under the various percentages of the related offering. All amounts listed are estimates.

The net proceeds will be used to make additional investments in real estate, as well as for ongoing legal, accounting, and other professional fees, working capital for the maintenance of an investor portal for the next 12 months, and for the costs associated with acquiring properties, such as broker price opinions, closing costs, title reports, recording fees, accounting costs and legal fees. We determined estimates for ongoing professional fees based upon consultations with our accountants and lawyers, and operating expenses and due diligence costs based upon the Manager's real estate industry experience. Our Manager will not receive any compensation for their efforts in selling our Investor Interests.

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The Company will pay the offering expenses regardless of the amount of Investor Interests we sell. Even if we do not raise any capital, we believe that we will have sufficient funds to continue our filing obligations as a reporting company for the next 12 months.

The allocation of the use of proceeds among the categories of anticipated expenditures represents management's best estimates based on the current status of the Company's proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of our business plan or the completion of less than the total offering, may cause the Company to modify the above-described allocation of proceeds. The Company's use of proceeds may vary significantly in the event any of the Company's assumptions prove inaccurate. We reserve the right to change the allocation of net proceeds from the offering as unanticipated events or opportunities arise.

In addition to changing allocations because of the amount of proceeds received, we may change the use of proceeds because of required changes in our business plan. Investors should understand that we have wide discretion over the use of proceeds. Therefore, management decisions may not be in line with the initial objectives of investors who will have little ability to influence these decisions.

`

**DESCRIPTION OF BUSINESS**

Gratus Capital Properties Fund III, LLC is an emerging growth company which was formed on November 10, 2020. We have commenced operations, acquired interests in five new construction properties, and intend on generating revenues from rents to tenants of these properties after completion, as well as through rents from other multi-family, and, in certain circumstances, commercial (e.g., senior living, mobile home parks, self-storage, mixed use, office and/or retail) and single-family assets as well as real estate backed loans and other real estate backed investments. In our first Regulation Offering (which ended on May 31, 2025) the Company raised approximately $15,370,700 through the sale of Units (including approximately $925,000 sold to individuals affiliated with our Manager on the same terms as Units sold to other investors). As of May 31, 2025, the Company has used this money to make the following real estate investments:

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|:---|:---|:---|:---|
| **Property Owning Entity** | **Location** | **Acquisition Price of Company Interest** | **Company Ownership Interest** |
| Wild Oak Group, LLC | Fargo, ND | $1558378.50 | 17.11% |
| SOCO Group II, LLC | Grand Forks, ND | $1500000.00 | 34% |
| Compass Apartments I, LLC | Moorhead, MN | $3096000.00 | 51% |
| Current33 Apartments I, LLC | Hastings, MN  | $3735600.00 | 51% |
| Compass Apartments II, LLC | Moorhead, MN | $600120.00 | 12.07% |
|  | **Total:**  | $10490998.50 |  |

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**Enclave OG, LLC**

![](gratus_1aimg17.jpg)

Wild Oak in Fargo, ND. completed in October 2023, is a 177,011 square foot mixed-use residential building with 119 apartment homes and 14 top-floor condos, ranging from 1,200 to over 2,500 square feet located at 505 Oak St N, Fargo, ND 58102. As of March 31, 2025, the property's apartments are 90% occupied and generating income. The property features premium amenities such as a community lounge with a fireplace, yoga and fitness studios, and bike storage. The development is known for its high-quality unit finishes, unique floor plans, and beautiful riverscape views. Wild Oak has sold two of the building's 14 condos.

Wild Oak, LLC is owned by two entities: Enclave OG, LLC, in which the Company owns a 29.58% interest, and Enclave Oak Grove OZ Fund LLC, a separate entity under common management set up to accommodate Opportunity Zone investors. This gives the Company indirect ownership of 17.11% of Wild Oak, LLC, which owns and operates the Wild Oak Property.

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**SOCO Group II, LLC**

![](gratus_1aimg12.jpg)

SOCO Group (Ivy at SOCO) is a mixed-use residential building composed of multifamily and condominium units, located at 4177 South Columbia Road, Grand Forks, ND 58201. Ivy at SOCO consists of 74 apartment homes above 14,000 square feet of first-level retail space. Construction of Ivy at SOCO was completed in May 2023, and the property is currently cash-flowing, with reserves being kept on hand for future commissions, tenant improvement allowances and landlord's work. As of March 31, 2025 the multifamily space is 97.3% occupied and lease negotiations are in process for the retail space (which is currently 6% leased). Some amenities at this property include Fitness Studio, Rooftop Deck, Bike Storage, Pet Spa, In-Home Washer & Dryer, Conference & Club Rooms & Greenspace.

**Compass Apartments I, LLC**

![](gratus_1aimg18.jpg)

Compass Apartments I is a multifamily apartment building totaling 93 studio, one-, two-, and three-bedroom units, located near the corner of 30th Ave S and 8th St S in Moorhead, MN. As of March 31, 2025, construction of the Compass Apartments is complete, and the property is 91% leased and 91% occupied. Designed in collaboration with YHR Architects, the building features a modern take on old-world charm, creating a comfortable environment with timeless appeal that's a strong match for the location and market. Its central location offers quick access to I-94 and connectivity to the greater Fargo-Moorhead area. Some amenities at this property include outdoor courtyard with grill, patio, and fire pits, clubroom, 24/7 fitness & yoga studios, coffee & espresso bar, 24/7 minimarket, enclosed parking, bike storage, pet spa & park, connectivity to parks and trails.

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**Current33 Apartments I, LLC**

![](gratus_1aimg14.jpg)

Current33 Apartments I is a multifamily apartment building totaling 106 one-, two-, and three-bedroom units, located 255 33rd St W, Hastings, MN 55033. As of March 31, 2025 construction is complete and the property is stabilized at 92.4% occupancy. Some of the amenities at this property include clubroom with sports simulator, pool table, fireplace, and entertainment center, outdoor community courtyard with pool and outdoor kitchen, 24/7 fitness & yoga studios, business center, 24/7 minimarket, enclosed parking, bike storage, pet spa & park.

**Enclave Compass II, LLC**

![](gratus_1aimg15.jpg)

Enclave Compass II is an 83-unit apartment building located at 600 30th Ave S, Moorhead, MN 56560, spanning 2.5 acres. The building is located directly adjacent to Compass Apartments I and is expected to have the same location, features, and amenities. As of March 31, 2025 construction was complete and the property is 24% leased.

The Company purchased its 12.07% equity interest in Enclave Compass II, LLC in May 2024, contributing a total of $600,000 through November 30, 2024. The Company also paid an additional $6,710.87 to Enclave Compass II, LLC (calculated at 8% non-compounding interest on the $200,000 in uncontributed capital beginning on (June 30, 2024) to offset the financial impacts of a late contribution.

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**Additional Plans**

We have no plans to change our business activities or to combine with another business, and we are not aware of any events or circumstances that might cause our plans to change. The Company does not have any plans or arrangements to enter a change of control, business combination or similar transaction or to change management.

We expect to use the net proceeds from this Offering to acquire interests in additional properties in the United States with a specific focus on markets in the Midwest, South and Southeast regions of the United States (although we may also find opportunities in other areas). We will also use the proceeds for our operating costs in connection with this Offering, including marketing costs and on-going legal and accounting fees, and to finance costs associated with acquiring properties, such as broker price opinions, title reports, recording fees, accounting costs and legal fees.

**Special Purpose Entities**

Throughout the Offering Circular, in reference to "acquisitions," the Company intends to acquire interests in "special purpose entities," also known as "SPEs." The SPEs will hold title to property acquisitions. The Company, in turn, will invest in the SPE.

**Objectives**

The Company has definite objectives to fulfill its strategy. These include:

· Penetrate the market of providing real estate opportunities for qualified individuals and/or business entities interested in achieving financial success by taking advantage of real estate investment opportunities in the mid-west, south, and southeastern United States and potentially across the contiguous United States (however, the Company will not limit itself geographically); and

· Increasing profits as allowed by market conditions.

The Company will look to buy multi-family properties, in growth areas for the best possible price, thereby giving the Company an instant competitive advantage. A potential investor should note that the above criteria is subject to change according to market conditions.

Generally, the Fund will seek opportunities which meet the following criteria:

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| Type of Investment | Multifamily  |
| Property Class | A-, B, C+ |
| # of Units | 80-500 |
| Price | $3000000– $50000000 |
| Cash on Cash at Pro-Forma | 2-7% |
| Cash on Cash when Stabilized | 4-7% |
| Target IRR | 10-14% |
| Existing Occupancy | 0-100% |
| Investment Term | 8+ Years |

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**Investment Strategy**

The Company is seeking to invest in a diversified portfolio of income producing real estate assets and real estate related assets throughout the United States, specifically in the mid-west, south and southeastern United States. Initially, the Company intends to target multi-family properties, but may acquire other property types that meet its investment objectives.

The Company may also purchase additional properties or make other real estate investments in other property types including commercial (e.g., senior living, mobile home parks, self-storage, mixed use, office, hospitality and/or retail) and single-family assets as well as real estate backed loans and other real estate backed investments when compelling opportunities arise. The Company will only be investing in real estate backed investments. It is expected that the proceeds from this Offering will initially be used to purchase multi-family properties.

We believe that there is an opportunity to create attractive total returns by employing a strategy of investing in a portfolio of such investments which are well-selected, well-managed and disposed of at an optimal time. Our principal targeted assets are investments in properties if compelling opportunities arise that present superior opportunities for above-market returns, that have quality construction and desirable locations which can attract quality tenants. These types of investments are, or relate to, properties primarily located in the mid-west, south, and southeastern United States.

To this end, the Company's overall strategy is to:

1) Identify Class A-, Class B, and Class C+ multi-family apartment communities or new development opportunities in quality locations in the Company's target markets, where the Company can add significant value through third-party hands-on management and/or appreciation potential;

2) Develop properties or acquire those communities at below-market prices, or at market prices where there is sufficient upside potential to obtain above-market returns over the long term;

3) Make physical alterations and other improvements to those communities, where the Company can achieve significant benefit with minimal capital outlay; and

4) Through third-party management, increase the rents to increase the overall value of the property.

**Due Diligence & Financing**

When the Company identifies a location or a potential property, it will secure the necessary financing, sign a contract and place an escrow deposit to be held with the designated escrow agent. The Company will take the time necessary to complete all its due diligence to the property including: site inspection, reviewing all leases, income and expenses, as well as securing a first mortgage on the property. After the due diligence process has been completed, the Company will determine whether the property is suitable or not.

If property is not suitable, the Company will cancel the contract and look for the next opportunity.

**Refinancing**

When it owns and manages Property, the Company will analyze the market conditions in the area where the Property is located. Simultaneously, we will investigate current interest rates. The Company will then decide whether the property should be maintained, refinanced, restructured (i.e., condominium conversion), or sold (disposition).

**Real Estate Market Factors (as of April 2025):**

Since the fund's inception in 2021, the multifamily real estate market has faced persistent headwinds from elevated interest rates, substantial new supply, and economic uncertainties. Despite these challenges, the sector has demonstrated ongoing resilience, buoyed by steady renter demand driven by limited affordable homeownership options and favorable demographic trends. The Midwest, central to the fund's strategy, continues to exhibit notable stability and performance relative to national trends. Government fiscal stimulus, although moderating, is expected to continue supporting renter demand and rental growth into the mid-term.

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Key Insights:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Market Dynamics: High Supply Temporarily Dampens Growth**

Nationally, the multifamily sector is navigating through historically elevated levels of new supply. Freddie Mac data indicates a national supply ratio of 2.8% in Q3 2024, significantly above the 2015-2019 average of 1.7%. This supply surge is expected to peak in early 2025, subsequently moderating by 2026. National vacancy rates are forecasted by both agencies to temporarily rise above 6%, with Freddie Mac projecting 6.2% and Fannie Mae forecasting a brief increase to 6.25% before stabilizing. Rent growth is anticipated to recover modestly in 2025, averaging between 2.0% (Freddie Mac) and 2.5% (Fannie Mae).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Midwest: Continued Stability and Strong Performance**

The Midwest remains resilient, outperforming national averages:

· **Balanced Supply**: The Midwest continues to benefit from constrained supply, maintaining an inventory growth rate around 1.5%, substantially lower than national and high-growth market averages.

· **Stable Occupancy Rates**: Markets like Columbus, Indianapolis, and Kansas City have sustained positive rent growth and stable occupancy rates near historic averages.

· **Affordability Advantage**: Lower cost of living compared to coastal and Sun Belt regions supports ongoing renter and investor interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Regional Variations: High-Supply Markets Under Pressure**

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| ·  | **Sun Belt and Mountain West Under Pressure**: High-supply markets such as Austin, Raleigh/Durham, Nashville, and Phoenix continue experiencing negative rent growth and elevated vacancy rates, driven by oversupply. |
| ·  | **West Coast and Northeast**: Supply-constrained metros like Los Angeles, San Francisco, and New York City maintain stable performance, benefiting from lower levels of new construction and improving occupancy rates. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Interest Rates and Cap Rates: Signs of Stabilization** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Interest Rates and Cap Rates: Signs of Stabilization** |
| ·  | **Cap Rate Compression**: Cap rates stabilized around 5.6%-5.7% in 2024 after notable increases the previous year. Fannie Mae projects modest compression towards 5.0%-5.5% in 2025, potentially spurring transaction volume. |
| ·  | **Volatile Interest Rate Environment**: Both agencies acknowledge rate volatility impacting transaction volumes. Freddie Mac reports improving transaction activity mid-2024 but notes ongoing uncertainty, whereas Fannie Mae anticipates increasing originations from $295 billion in 2024 to approximately $350 billion in 2025. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Fiscal Stimulus and Mid-Term Rent Support**

· **Economic Tailwinds**: While the direct effects of substantial deficit spending are moderating, the fiscal stimulus from recent years continues to underpin economic activity and rental demand, though the effect is less pronounced compared to earlier forecasts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. For-Sale Housing Market: Persistent Demand for Rentals**

· Homeownership Costs: Elevated mortgage rates and high home prices continue to limit homeownership affordability, reinforcing robust rental demand.

· Inventory **Constraints**: Limited for-sale housing inventory persists, reinforcing the rental sector's attractiveness as a housing alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Multifamily Sector's Resilience:**

· **Occupancy Stabilization**: Occupancy rates remain steady nationally, hovering around 94.4%.

· **Class Performance Divergence**: Class C properties showed the highest rent growth in 2024 (2.6%), with Class A and B properties exhibiting lower growth (1.4% and 1.3%, respectively).

· **Midwest Outperformance**: The Midwest's combination of low supply, steady demand, and favorable affordability continues to shield it from broader market fluctuations.

**2025 Outlook: Gradual Improvement and Stabilization**

The multifamily sector is poised for modest improvement in 2025, underpinned by solid employment growth, positive demographic trends, and expected stabilization in new supply deliveries:

· **Moderating Supply**: The elevated new supply is anticipated to peak in early 2025, gradually returning to pre-pandemic levels by 2026.

· **Economic Growth**: Both Freddie Mac and Fannie Mae forecast stable economic conditions and sustained job creation supporting rental demand.

· **Refinancing Opportunities**: Approximately $250 billion in multifamily debt maturities in 2024-2025 offer strategic refinancing and investment opportunities amid a stabilizing interest rate environment.

**Investment Implications: Continued Strategic Focus on the Midwest**

The Midwest remains an integral component of the fund's investment strategy, delivering steady growth, low volatility, and long-term value

· **Reliable Performance:** Balanced market conditions support steady returns even amid broader national challenges **.** 

· **Strategic Positioning**: The region's affordability and stable fundamentals support opportunistic acquisition and refinancing activities.

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**Conclusion: Positioned for Sustained Growth**

The multifamily sector enters 2025 with cautious optimism. While certain high-supply markets face ongoing challenges, the overall landscape suggests gradual improvement supported by robust renter demand and stabilizing market dynamics. The Midwest continues to offer exceptional resilience and remains central to the fund's strategy, providing consistent growth and stability in a shifting market environment

**Acquisition of Properties**

The Company will invest in multi-family investment properties located in the United States. Specifically, the Manager will search for multi-family real estate in stable and growth markets in Midwest, South, and Southeast regions of the United States. Stable and growth market characteristics include job and household formation growth, resulting in rising occupancy levels and rising rents. Numerous other factors contribute to the market determination process including but not limited to population growth, valuation trends, occupancy trends, demographic composition, economic conditions, and supply trends.

The Company intends to employ a rigorous underwriting process including proper due diligence, market valuation studies, and total return analyses. The Company plans to primarily invest in properties with strong cash flow, which are stable with opportunities to immediately improve property value post acquisition. The Company intends to also work to improve the net operating income of each investment by improving revenue and operating margins, thereby raising property value.

The manager will acquire properties that either have cash flow at the time of acquisition or represent the potential to increase that cash flow substantially through an active property management plan. The manager also intends to acquire joint venture interests in areas where build costs are below market values for existing properties. Upon acquisition, the Manager intends to provide strategic physical and operational improvements to maximize investment return, but these enhancements should function as yield improvements and are not necessary to the safe performance of the investment. In this way, the Company effectively reduces risk and improves performance by assuring that each individual investment has multiple forces working to augment cash flow and property value.

**Identifying Properties for Purchase**

The Manager will use its extensive network and highly specialized criteria for identifying, quantifying and qualifying investment opportunities.

The Manager intends to saturate its extensive relationships and network in each identified market to identify the very best opportunities. The Manager has established and maintained a comprehensive network of developers, banks, brokers, and other financial institutions which allow a strong market presence in target markets and robust market intelligence, strengthening our ability to identify properties within the Company's criteria, often before entering into a market. This local knowledge and network of professional with deep knowledge of our target asset classes, we feel, gives the Company a competitive and strategic advantage.

The Managers goal is to identify the right property in the right market and potentially acquire it before it even hits the general market.

**Post-Purchase Strategies**

The Manager intends that the properties will be held for the duration of the Company until the property is refinanced or sold.

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The Company intends to hold properties with the intention of increasing values prior to sale of the property. The Company intends to use third-party management to cure inefficiencies in the management, cure deferred maintenance, and deploy strategic capital upgrades aimed at increasing income and enhancing investor returns (including through extensive construction or rehab). The increase in cashflow should result in an increase in value so that the Company may sell or refinance the property for a profit.

The Company will look to maximizing cash flow until sale, refinance or other disposition. The Company will also analyze market conditions and support the investment with multiple exit strategies to optimally exit each investment.

**Due Diligence & Financing**

When the Company identifies a location or a potential property, it will secure the necessary financing, sign a contract and place an escrow deposit to be held with the designated escrow agent. The Company will take the time necessary to complete all its due diligence to the property including: site inspection, reviewing all leases, income and expenses, as well as securing a first mortgage on the property. After the due diligence process has been completed, the Company will determine whether the property is suitable or not.

If property is not suitable, the Company will cancel the contract and look for the next opportunity. If the property is suitable, it will proceed to close, typically within 45 to 60 days.

**Joint Venture Partners**

The Company may acquire Properties or other real estate related investments from, or invest, co-invest, joint venture or participate with, affiliates of our Manager or other real estate developers and investors, as determined by the Manager in its sole discretion. The purchase price of any Property or real estate related investment acquired from or sold to an affiliated party will be based upon the fair market value of the asset established by a third-party appraisal or fairness opinion that is dated within the last 120 days prior to the transaction.

The Manager has relationships with real estate entrepreneurs ("sponsors") with whom it may seek to co-invest, joint venture or otherwise participate in certain investments that either the Company identifies, or the sponsor identifies. In the event of such co-investments or participation, including transactions with affiliates, the Manager will seek to secure such investments on behalf of the Company so that it is within the investment and return goals of the Company.

However, in some instances, these sponsors may require a right to receive a priority or pari-passu of return. In such event, the Manager will have the discretion to decide if the projected returns to the Company, after risk adjusting for such priority, warrant proceeding with the investment.

When and if the Manager utilizes its relationships with such sponsors, separate promote structures may be established between the Manager and the co-investor or participant, which may directly benefit the Manager or an affiliate of the Manager, separate from any compensation the Manager may earn as Manager of the Company. Any separate benefit shall be paid directly to the Manager or by the co-investors and participants, and not from Company funds or its Manager.

In some circumstances, the Manager may elect to co-invest with a third-party that the Manager also controls or has some control. The Company will take the same approach with a third-party as if entering into the transaction with a sponsor as discussed above.

We expect to use the net proceeds from this offering for ongoing legal, accounting, and professional fees, and working capital and to finance costs associated with acquiring multi-family real estate, such as market appraisals, title and recording fees, broker fees, if any, legal fees and closing costs which, in the aggregate, typically amount to 1% to 3% of the purchase price of the property acquired, with an average of 2%. However, we currently have no additional real estate acquisitions contemplated.

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**Financing Strategy**

Once the proceeds of this Offering have been fully invested, the Company expects our debt financing will be in the range of approximately 60% to 80% of the aggregate value of real estate investments and other assets. Financing for acquisitions and investments may be obtained at the time an asset is acquired, or an investment is made or at such later time as the management determines to be appropriate.

In addition, debt financing may be used from time to time for property improvements, lease inducements, tenant improvements and other working capital needs, including the payment of distributions. Additionally, the amount of debt placed on an individual property or related to a particular investment, including our pro rata share of the amount of debt incurred by an individual entity in which the Company invests, may be less than 60% or more than 80% of the value of such property/investment or the value of the assets owned by such entity, depending on market conditions and other factors.

The Company intends to limit borrowing to no more than 80% of the value of Company assets.

**Exit Strategies**

The Manager currently intends to operate the Company at least eight years, and to continue operating in perpetuity as long as the liquidity needs of the Members are met. By the end of 2029, the Manager intends to communicate with the Members and use reasonable efforts to formulate and execute a plan to allow Members who wish to liquidate their Interests to do so within approximately two to three years. Exit strategies that the Manager may employ at the appropriate time include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Sale of Properties.** If the market allows for a successful sale of the properties to third parties or to Affiliate of the Manager so that the Members may realize appreciation, the Company will look to sell some or all of the properties owned by the Company to such third-party or Affiliates of the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Refinance the Properties and hold.** The Manager expects the Properties owned by the Partnership will have leverage not to exceed a 80% loan-to-value ("LTV") ratio. If the then appraised values of the Properties show all Members may receive: a) their return of capital, and b) realized appreciation on the properties, the Company may elect to refinance some or all of the properties and return capital and any remaining appreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Sale to a Public Real Estate Investment Trust.** The Manager may find that the properties are attractive purchases for certain public Real Estate Investment Trusts. The Manager may elect to a) sell some or all of the properties outright to the individual trust; b) sell some or all of the properties to the real estate investment trust in exchange for equity in the trust (stock) and cash (depending on the appreciation value); or c) create its own real estate investment trust to which the properties may be sold or exchanged. Note: if the Members were to receive stock of the purchaser real estate investment trust in exchange for their Interests, the Members may be able to sell their shares on the public exchange of which the public real estate investment trust is traded, so long as it is traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Bulk Sale to an Institution.** The Company may find an institution is interested is interested in purchasing some or all of the Company's properties. The Manager may elect to take such an option, even at a discount, to ensure that the properties are sold in a timely fashion and so long as it is in the best interest of the Company.

The Company will make a decision regarding the appropriate exit strategy at the time in accordance with market conditions. There is no guarantee as to what plan will be formulated or the timeline for its execution, so Members should view investing in the Company as a long-term investment with the ability to withdraw only within the Withdrawal Policy outlined below beginning on page 57.

A program managed by the Manager stated that it would endeavor to provide a liquidity event to investors between 2022 and 2027, and would endeavor to sell its properties after approximately 10 years if liquidity could not be provided by refinance. While this targeted period to provide liquidity has not yet arrived, this program has returned approximately 14% of invested capital to investors via cash out refinances. See the section entitled "PRIOR PERFORMANCE" starting on page 61 more information concerning this program. Prospective investors should bear in mind that prior performance does not guarantee future results.

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**Geographic Scope**

The Company will not limit itself geographically, however it intends to invest initially in the Midwest, South, and Southeast regions of the United States. The Company will search multi-family, single-family, and commercial properties that it may purchase at a discount to market value. The Company may acquire properties at market value where it believes that the property represents long-term or strategic value. The Company believes it can successfully identify such a potential target acquisition based upon the depth and the breadth of the industry experience, contacts and industry knowledge of the Company's Manager. See "MANAGER, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS" on page 48 for a discussion of the Manager's real estate experience.

**Competition**

We will face competition from other owners, investors and developers that are looking to acquire similar properties and who may implement or are already implementing a similar business plan to ours. Further, we may be at a disadvantage to our competition who may have greater capital resources than we do, specifically cash. It has become increasingly difficult to obtain lending on many properties and those developers that are able to close without financing and pay the full purchase price of a property in cash may be able to close on more properties or will be able to negotiate better purchasing terms.

**Employees**

Our Manager is GCPF Management LLC, will be managed by Jason Weimer, Robert Barlau, Skip Johnson, and Austin Schmitt, who devote a significant portion of their working hours to our Company without a salary. For more information on our personnel, please see "MANAGER, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS." Jason Weimer and Robert Barlau coordinate all of our business operations. We plan to use consultants, attorneys, accountants, and other personnel, as necessary. We believe the use of non-salaried personnel allows us to expend our capital resources as a variable cost as opposed to a fixed cost of operations. In other words, if we have insufficient revenues or cash available, we are in a better position to only utilize those services required to generate revenues as opposed to having salaried employees. Any expenses related to the Offering will be charged to the Company. For example, any costs associated with raising capital such as escrow, transfer, marketing, audit, legal, and technology fees will be borne by the Company.

**Investment Policies of the Company**

In all types of investment, our policies may be changed by our Manager without a vote by Members.

We will seek out multi-family properties for purchase throughout the Midwest, South and Southeast regions of the United States, but may find opportunities in other states. We expect 100% of our portfolio will consist of real estate properties, real estate backed loans, and other real estate backed investments. The Company will only be investing in real estate backed investments.

Our investment policy involves a comprehensive approach to evaluating real estate properties, real estate-backed loans, and other real estate-backed investments. This process combines our internal assessments with the expertise of trusted joint venture partners who handle specific functions related to property development and management. Below are the key components of our due diligence:

**1.** **Property Evaluation:** 

a. Physical inspections and appraisals are conducted, often in collaboration with joint venture partners who bring specialized expertise in property development.

b. We analyze the location, market trends, and economic indicators, integrating insights from our partners to enhance our evaluations.

c. We review historical occupancy rates, rental income, and expense reports to assess the property's past and projected performance.

**2.** **Tenant Quality Evaluation:** 

a. While we place significant trust in our joint venture partners to manage tenant evaluations effectively, we also engage in oversight by reviewing their tenant selection processes.

b. Our involvement includes periodic reviews of the criteria used by our partners for credit checks and financial assessments of potential tenants to ensure alignment with our standards.

**3.** **Real Estate-Backed Loans:** 

a. Both our team and our joint venture partners assess the creditworthiness of borrowers, focusing on financial history and collateral value.

b. We analyze loan-to-value ratios and require comprehensive property appraisals to confirm the security and suitability of the investments.

**4.** **Other Real Estate-Backed Investments:** 

a. We evaluate the structure of each investment for its potential return and risk, using both our internal analyses and market studies provided by our partners.

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Further, potential investors should be advised:

a) We do not intend to issue senior securities.

b) We will borrow money collateralized by our properties that equal to up to an 80% of the value of our assets.

c) Due to the expected size of the properties we intend to acquire, we expect that more than 25% of Company assets will be invested into a single real estate asset upon full capitalization of the Company.

d) We have no intention of initiating personal loans to other persons.

e) We have no intention of investing in the securities of other issuers for the purpose of exercising control.

f) We have no intention to underwrite securities of other issuers.

g) We may offer our securities in exchange for property, in which case the Members who contributed said property will receive no more than 1 Unit for every $10 of the fair market value of the property so contributed.

h) We intend to make annual or other reports to security holders including 1-Ks, 1-SAs, 1-Us, and exit reports on Form 1-Z as deemed necessary. Such reports will include the required financial statements.

As market conditions change, our policies for both investments and borrowing will be evaluated and updated as necessary to safeguard Member equity and increase Member returns. We will update our Members via 1-Us within a few business days, 1-SAs semi-annually, and other Member reports if there are any changes in our investment policy or our borrowing policies.

**Legal Proceedings**

We may from time to time be involved in routine legal matters incidental to our business; however, at this point in time we are currently not involved in any litigation, nor are we aware of any threatened or impending litigation.

**Transfer Agent**

We have enlisted the services of KoreTransfer as our transfer agent.

**DESCRIPTION OF PROPERTY**

We do not lease any real property, and the only real property which we have an ownership interest in is the five multi-family properties described in the section entitled "DESCRIPTION OF BUSINESS" above. Additional information about these properties are listed below:

**<u>Wild Oak - Fargo, ND</u> [Wild Oak Group, LLC]**

· **Location:** 505 Oak St N, Fargo, ND 58102

· **Property Type:** Mixed-use residential building with 119 multifamily units and 14 condominiums.

· **Ownership Percentage:** Company owns 17.11%.

· **Revenue Generation:** From rental income and condominium sales.

· **Current Status:** As of 3/31/2025, units at 90% occupancy with 2 of 14 condos sold.

· **Expenses:** Primarily real estate operational, maintenance, and management costs, condo fit-ups, and sales initiatives. Fuel or energy requirements are typical of multi-family real estate in North Dakota.

· **Encumbered by:** As of 12/31/2024, $25,274,590 Mortgage (LTV 75%) maturing on December 29, 2026. This loan has a 3% fixed interest rate, with $7,316,945 in initial principal requiring only interest only payments for the entire period and the remaining $17,957,645 in principal being amortized over 30 years.

· **Regulatory Compliance:** Compliant with local building codes, zoning requirements, and environmental regulations. No rent control regulation.

· **Risks:** Typical exposure to market volatility and competitive pressures from other multi-family real estate. See the subsection entitled "**Risks Related to the Real Estate Business**" beginning on page 9 for a more comprehensive discussion.

· **Market Information:** In the context of the Federal Reserve's response to inflation with raised interest rates, Fargo's multifamily market has shown resilience due to its diverse economic base and growing population of young professionals. With a low unemployment rate of 2.3% in North Dakota, the stability in Fargo is underscored by a strong demand for residential units, evidenced by a 1.4% increase in asking rents and a balanced delivery and absorption rate of 900 and 414 units respectively. Despite a slight increase in the vacancy rate to 7.7%, the market benefits from steady economic contributions from sectors like healthcare and technology, coupled with the presence of North Dakota State University. The market dynamics are poised for tightening vacancies and accelerating rent growth post-2024, with a projected vacancy rate drop to 6.8% and rent gains increasing to 3.6%.

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**<u>Ivy at SOCO – Grand Forks, ND</u> [SOCO Group II, LLC]**

· **Location:** 4177 South Columbia Road, Grand Forks, ND 58201

· **Property Type:** Mixed-use building with 74 multifamily units and over 14,000 square feet of retail space.

· **Ownership Percentage:** Company owns 34%.

· **Revenue Generation:** Residential rentals and commercial leases.

· **Current Status:** As of 3/31/2025, residential units at 97.3% occupancy; commercial space at 6% occupancy.

· **Expenses:** Primarily real estate operational, maintenance, and management costs, and commercial tenant fit-up costs. Fuel or energy requirements are typical of mixed-use residential/commercial real estate in North Dakota.

· **Encumbered by:** As of 12/31/2024, $14,553,810 Mortgage (80% LTV) maturing on December 3, 2026. This loan's principal payments are amortized over 30 years with a 3% fixed interest rate.

· **Regulatory Compliance:** Compliant with local building codes, zoning requirements, and environmental regulations. No rent control regulation.

· **Risks:** Typical exposure to market volatility and competitive pressures from other multi-family and commercial real estate. Typical commercial leasing risks for retail space in new construction. See the subsection entitled "**Risks Related to the Real Estate Business**" beginning on page 9 for a more comprehensive discussion.

· **Market Information:** Grand Forks benefits from a robust multifamily market driven by the University of North Dakota and significant sectors like healthcare and aerospace. The current vacancy rate stands at an impressive 4.0%, with an annual rent increase of 4.0%, reflecting strong demand particularly in high-end units where year-over-year rent growth has reached 5.9%. Absorption rates outpace new deliveries with 212 units absorbed over the past year compared to 126 units delivered, highlighting a market with high occupancy and limited supply. Looking ahead, the expansion in aerospace and consistent university-driven demand are expected to sustain high occupancy and steady rent increases, with a forecasted 3.2% rent growth by 2025 amidst a slightly declining vacancy rate.

**<u>Current 33 Apartments – Hastings, MN</u> [Current33 Apartments I, LLC]**

· **Location:** 325 33rd St W, Hastings, MN 55033

· **Property Type:** Multifamily apartment building with 93 units.

· **Ownership Percentage:** Company owns 51%.

· **Revenue Generation:** Residential rentals.

· **Current Status:** As of 3/31/2025, residential units at 92.4% occupancy.

· **Expenses:** Primarily real estate operational, maintenance, and management costs. Fuel or energy requirements are typical of multi-family real estate in Minnesota.

· **Encumbered by:** As of 12/31/2024, $18,631,938 Mortgage (75% LTV) maturing on October 15, 2027. This loan's principal payments are amortized over 30 years, with a 4.5% fixed interest rate.

· **Regulatory Compliance:** Compliant with local building codes, zoning requirements, and environmental regulations. No rent control regulation.

· **Risks:** Typical exposure to market volatility and competitive pressures from other multi-family real estate. See the subsection entitled "**Risks Related to the Real Estate Business**" beginning on page 9 for a more comprehensive discussion.

· **Market Information:** In the burgeoning suburbs of Apple Valley, Lakeville, and Hastings, the multifamily market thrives on the influx of young professionals and families attracted by top-tier educational institutions and suburban amenities. With a vacancy rate of 8.8% and a 2.9% rent growth, the area has absorbed 801 units against 741 delivered, suggesting healthy demand that outstrips supply. The local economy, bolstered by connectivity to major employment hubs and lifestyle attractions, supports a vibrant rental market. Forecasts for 2025 predict a steady state in vacancy rates at 7.2% with rent gains potentially climbing to 3.8%, driven by limited new construction and the continuous draw of high-quality suburban living environments.

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**<u>Compass Apartments – Moorhead, MN</u> [Compass Apartments I, LLC; Compass Apartments II, LLC]**

· **Location:** 600 30th Ave S Moorhead MN

· **Property Type:** Two phase multifamily development with 176 units (93 Units in Phase I, 83 Units in Phase II).

· **Ownership Percentage:** Company owns 51% of Compass Apartments I, LLC and 12.07% of Compass Apartments II, LLC.

· **Revenue Generation:** Residential rentals.

· **Current Status:** As of 3/31/2025, Phase I is 91% occupied and Phase II is 24% occupied.

· **Expenses:** Primarily real estate operational, maintenance, and management costs. Fuel or energy requirements are typical of multi-family real estate in Minnesota.

· **Phase I Encumbered by:** As of 12/31/2024, $15,443,165 Mortgage (75% LTV) maturing on October 15, 2027. This loan's principal payments are amortized over 30 years with a 4.5% fixed interest rate.

· **Phase II Encumbered by:** As of 12/31/2024, $11,122,493 Mortgage (65.62% LTV) maturing on October 15, 2028. This loan's principal payments are amortized over 30 years, with a 6.85% fixed interest rate, and interest only payments until November 15, 2025.

· **Regulatory Compliance:** Compliant with local building codes, zoning requirements, and environmental regulations. No rent control regulation.

· **Risks:** Typical exposure to market volatility and competitive pressures from other multi-family real estate. Typical leasing risks for residential space in new construction. See the subsection entitled "**Risks Related to the Real Estate Business**" beginning on page 9 for a more comprehensive discussion.

· **Market Information:** Adjacent to Fargo, Moorehead's multifamily sector mirrors the stability seen across the border with a 7.4% vacancy rate and a 1.3% increase in rent over the past year. The market has managed a substantial absorption rate of 11,340 units against 9,905 units delivered, indicating a strong demand likely fueled by the area's competitive labor market and affordability. With a significant slowdown in construction, the upcoming years could see tighter vacancies and a potential uptick in rent growth as supply fails to keep pace with demand. This scenario suggests a movement towards a landlord's market, with continued robust demand, especially in suburban and mid-tier apartment segments.

We believe that this space will be sufficient for the long term. We believe that all our properties have been adequately maintained, are generally in good condition, and are suitable and adequate for our business.

We do not pay rent for our corporate headquarters, which is located a 718 Washington Ave N, Suite 400, Minneapolis, MN 55401 and leased by an affiliate of the Manager. The Manager's website may be found at gratusfunds.com.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion and analysis should be read in conjunction with our financial statements and the notes thereto contained elsewhere in this Offering Circular.

**Critical Accounting Policies**

Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards that have different effective dates for public and private companies. We have elected to take advantage of this extended transition period, and thus, our financial statements may not be comparable to those of other reporting companies. Accordingly, until the date we are no longer an "emerging growth company" or affirmatively opt out of the exemption, upon the issuance of a new or revised accounting standard that applies to our financial statements and has a different effective date for public and private companies, we will disclose the date on which adoption is required for non-emerging growth companies and the date on which we will adopt the recently issued accounting standard.

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The preparation of financial statements in accordance with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. Such judgments are based on our management's experience, our historical experience, and the industry. We consider these policies critical because we believe that understanding these policies is critical to understanding and evaluating our reported financial results. Additionally, these policies may involve significant management judgments and assumptions or require estimates about matters that are inherently uncertain. These judgments will affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses.

**Cautionary Statement Regarding Forward-Looking Statements**

With the exception of historical matters, the matters discussed herein are forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning anticipated trends in revenues and net income, projections concerning operations and available cash flow. Our actual results could differ materially from the results discussed in such forward-looking statements. The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes thereto appearing elsewhere herein.

***Overview***

Gratus Capital Properties Fund III, LLC is a Delaware limited liability corporation that was formed to primarily invest directly or indirectly in real estate and real estate related assets located throughout the United States. On December 2, 2021, the Company began accepting subscription agreements as a part of a Regulation A offering. On February 16, 2022, the Company broke impounds and acquired its first real estate asset and went on to acquire three additional real estate assets in 2022. All four assets are ground up new developments that have completed construction and are in various stages of stabilization. The Company has also acquired equity in a fifth property in 2024 that completed construction near the end of 2024 and is currently in lease up.

Of these five properties, the Company controls a majority of Compass Apartments I, LLC and Current33 Apartments I, LLC, and so the financial statements of these two subsidiaries have been consolidated into the financial statements under the Company, as provided by GAAP. Due to this consolidation, these investments are represented differently from Enclave OG, LLC, SOCO Group II, LLC and Enclave Compass II, LLC, which are accounted for as investments in real estate projects.

***Results of Operations for the Period Ended December 31, 2023***

**Total income**

The Company has just begun generating significant operating revenue during the period ended December 31, 2024, for the first time since inception. Total Rent collected from Compass Apartments and Current33 Apartments totaled $1,674,158. By contrast, the Company generated just $360 in income during the period ended December 31, 2023, since these two properties had not yet commenced operations. The operations of the partnerships where the Company holds less than a 50% ownership interest (Wild Oak, Ivy at SOCO, and Enclave Compass II, LLC) resulted in losses from unconsolidated partnership investments of $550,949 in 2024, as compared to losses of $340,561 in 2023.

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**Total expenses**

From January 1, 2024 to December 31, 2024, the Company generated operational expenses of $1,231,474 (including Asset Management Fees of $97,693) along with interest expenses of $1,556,278 and depreciation expense of $2,190,818 (almost entirely consisting of depreciation on Compass Apartments and Current33 Apartments). This compares with total operating expenses of $155,221 (including Asset Management Fees of $79,718), total interest expense of $384,009, and

depreciation expense of only $700 (consisting of depreciation on Company technology assets, because the Compass Apartments and Current33 Apartments had not yet been placed into service and so were not recognizing deprecation expenses) between January 1, 2023 and December 31, 2023.

The large difference in Operating Expenses was primarily represented additional expenses incurred by Compass Apartments and Current33 Apartments as they transitioned from construction to operation status, and the expenses of the properties were no longer being capitalized. These two properties had total operating expenses of $1,013,784 during fiscal year 2024 but no operating expenses during Fiscal Year 2023. Through December 31, 2023, all expenses related to these properties were capitalized as construction in progress, as neither property was deemed operational until January 1, 2024. As a result, we are now seeing greater operational expenses on our consolidated statement of operations, as these expenses are no longer being capitalized.

Operating expenses incurred at the Company level (i.e., excluding subsidiary operations) during fiscal year 2024 were $280,092 (consisting of General & Administrative expenses of $1,767, Management Fees of $97,693, and Professional Fees of $180,632) contrasted with fiscal year 2023 operating expenses of $155,221 (consisting of General & Administrative expenses of $65, Asset Management Fees of $75,438, and Professional Fees of $79,718). The Office space and administrative services for the Company are provided without charge by the Company's Manager. Such costs are immaterial to the financial statements and, accordingly, have not been reflected.

**Assets & Liabilities**

As of December 31, 2024, the Company had $45,764,993 in total assets and total liabilities of $34,744,523. This compares with $43,704,486 in total assets and total liabilities of $32,924,327 as of December 31, 2023. Compass Apartments I, LLC & Current33 Apartments I, LLC each opened their buildings in 2024 which moved most of the assets from construction in process to buildings, leasehold improvements & personal property. The total amount at December 31, 2024 was $30,721,217 in buildings, $3,585,347 in land & leasehold improvements, and $6,781,790 in personal property. Mortgages are secured by the real estate and as of December 31, 2024 total approximately $34.1 million compared to $26.5 million as of December 31, 2023.

As of December 31, 2024, Compass Apartments I, LLC $627,452 in cash, $1,281,513 in land, $13,658,624 in buildings, $1,488,862 in Land & Leasehold Improvements, and $3,180,227 in personal property, offset by $15,443,166 in mortgage debt. This contrasts with December 31, 2023, where Compass's major assets were valued (at cost) as $5,657 in cash, $1,257,122.00 in land, $16,374,567 in Construction in Progress, and $3,139 in prepaid expenses, offset by $1,768,611 in current liabilities (including $22,187 in mortgage interest payable) and a $10,732,265 mortgage. This reflects the nature of new development completing construction in late 2023 and transitioning to operations in 2024.

As of December 31, 2024, Current33's major assets were valued (at cost) as $471,185 in cash, $1,220,000 in land, $17,062,593 in buildings, $2,096,485 in Land & Leasehold Improvements, and $3,601,563 in personal property, offset by $18,631,938 in mortgage debt. This contrasts with December 31, 2023, where Current33's major assets were valued (at cost) as $576 in cash, $1,220,000 in land, $21,674,135 in Construction in Progress, and $2,407 in pre-paid expenses offset by $906,054 in current liabilities (including $33,101 in mortgage interest payable) and a $15,767,062 mortgage. This reflects the nature of new development completing construction in late 2023 and transitioning to operations in 2024.

When examined apart from Compass Apartments I, LLC and Current33 Apartments I, LLC, the Company's held $166,594 in cash and $2,989,530 in other real estate investments as of December 31, 2024, contrasted with $156,064 in cash and $2,989,530 in other real estate investments as of December 31, 2023. All valuations are at cost; the decrease in the value of other real estate investments is due to depreciation, not to a change in the Company's investment position or valuation of the property. The only significant direct liability of the Company is a Promissory Note between the Company and an affiliate of the Manager of the Company which provides the Company with a revolving credit line for up to $50,000,000 of funds. As of December 31, 2024, the note has been paid off. This compares to $3,743,430 owed to related parties pursuant to this Note (including $3,246,272.51 in principal and $497,157.08 in interest) as of December 31, 2023. This Note is an uncollateralized revolving credit facility which matures October 28, 2030. Under this line of credit, the Company will pay the Manager simple interest, calculated as the coupon rate on a U.S. 10-year treasury + five percent (5%). This interest rate will be readjusted semi-annually on July 1 and January 1 and is capped at 10%, and is currently 9.479% as of January 1, 2025. As of December 31, 2022, the Company entered into a Standstill Agreement with regards to this Promissory Note whereby the lender (an affiliate of the Manager) agrees not to demand any payment or take any legal action to recover money owned under the Note until June 30, 2024 (including both monies currently borrowed and any new money which may be borrowed in the future). This Standstill Agreement was amended as of February 26, 2024 to extend its term to July 31, 2025. As of December 31, 2024, this line of credit was paid off in full, but the Company may utilize it again in the future to allow it to pre-fund investments in real estate.

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***Liquidity and Capital Resources***

When examined apart from Compass Apartments I, LLC and Current33 Apartments I, LLC, the Company held approximately $2,320,591 in Cash as of May 31, 2025, contrasted with $166,594 in cash as of December 31, 2024, contrasted with $156,063.84 in cash as of December 31, 2023. During fiscal years 2023 and 2024, the only significant direct liabilities of the Company (both paid off in full during 2024) were:

(1) a Promissory Note between the Company and an affiliate of the Manager of the Company which provides the Company with a revolving credit line for up to $50,000,000 of funds. As of December 31, 2024, the amount is zero. This compared to a total of $3,743,430 to related parties pursuant to this Note (including $3,246,273 in principal and $497,157 in accrued interest) as of December 31, 2023. This Note is an uncollateralized revolving credit facility which matures October 28, 2030. Under this line of credit, the Company will pay the Manager simple interest, calculated as the coupon rate on a U.S. 10-year treasury + five percent (5%). This interest rate will be readjusted semi-annually on July 1 and January 1 and is capped at 10%.

(2) The Company purchased its 12.07% equity interest in Enclave Compass II, LC in May 2024, pledging approximately $600,120. The Company contributed $400,000 in June '23 and the remaining $200,120 to Enclave Compass II on about November 27, 2024, paying an additional $6,459 (calculated at 8% non-compounding interest on the $200,120 in uncontributed capital beginning on June 30, 2024) to offset the financial impacts of the late contribution.

Both of the above listed significant direct liabilities had been paid in full by December 31, 2024, and (as of the date of this Offering Circular) no additional money has been borrowed from the Manager in 2025.

The Company intends to raise additional funds in this offering, up to its Offering Maximum of $50,000,000 in order to make additional real estate acquisitions. However, even if we do not raise any additional funds, we believe that the profits from operations, funds we have raised, taken together with our line of credit, are sufficient to fund our expenses over the next twelve months. The Company has short and long-term liquidity through operational profits, fundraising , and Manager provided credit facility. The Manager currently has sufficient capital in the bank account to cover fixed expenses for several years and will utilize the credit facility if necessary to be opportunistic in pursuing cash flowing investments for the Company.

As for Compass Apartments I, LLC and Current33 Apartments I, LLC, these properties are on budget and cash flowing. As of December 31, 2024, Compass Apartments I, LLC had $627,452 in cash and Current33 Apartments I, LLC had $471,185 in cash. We believe each property-owning entity has sufficient short- and long-term liquidity for all its projected needs.

***Plan of Operations***

We intend to continue our operations and make additional investments as addition funds are raised. If our Manager identifies one or more suitable properties, it may "pre-fund" such properties so that the Company may invest in them once sufficient capital is available. Investments in properties will depend highly on our funds, the availability of those funds, availability of assets that meet our investment criteria and the size of the assets to be acquired. We believe that the proceeds from this offering will satisfy our cash requirements for at least the next 12 months to implement the foregoing plan of operations. However, since we do not have specific additional real estate acquisitions contemplated, it is difficult to estimate how much will be required in the next 12 months to implement our business plan.

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***Trends and Key Information Affecting our Performance***

As of Q1 2025, the Company continues to execute its investment strategy, with five development projects now completed and at various stages of stabilization. Our multifamily portfolio is performing well overall, with several properties exceeding pro forma rent projections despite elevated cap rate conditions. Performance highlights include:

● **Compass I (Moorhead):** Ended Q1 at 91.4% occupancy, maintaining strong pricing against new competitive supply.

● **Compass II (Moorhead):** Lease-up reached 24% by quarter-end following a Q4 2024 delivery, with strong spring leasing activity and tuck-under garages driving interest.

● **Current 33 (Hastings):** Reached 92.4% occupancy with strong rent growth and renewal rates; incentives and pricing are being actively managed to maintain momentum.

● **Wild Oak (Fargo):** Maintained 90% occupancy in a downtown submarket with 17% vacancy overall.

● **Ivy at SOCO (Grand Forks):** Multifamily units are stabilized at 97.3% occupancy.

These assets continue to generate positive cash flow and provide resilience across changing market conditions. Our teams conduct weekly rent reviews and leasing meetings to stay responsive to real-time demand trends and competitive shifts.

 *Non-Multifamily Projects* 

● **High-End Condos – Wild Oak:** Two condo sales have closed—one in November 2024 and another in April 2025. Sales proceeds have been reinvested into additional unit fit-outs and loan curtailments. Although broader market softness has slowed sell-through, we are refining our sales strategy and remain encouraged by recent traction. Multifamily income continues to support the loan structure, and refinancing options are being proactively explored well ahead of the loan maturity in late 2026. A capital call remains a contingency, not a forecasted requirement.

● **Retail Space – Ivy at SOCO:** Retail lease-up has been slower than expected, with commercial occupancy at 6%. However, interest picked up late in Q1 with multiple prospective tenants touring the space. We continue to hold reserves for tenant improvements and commissions and will resume distributions once leasing reaches underwriting thresholds.

Multifamily continues to serve as the backbone of our strategy, offering stable cash flow and inelastic demand that shields the portfolio from short-term volatility.

*Strategic Relationships and Investment Focus*

We continue to build new relationships that are expected to open the door to additional investment opportunities. While we remain open to acquiring stabilized, cash-flowing properties where appropriate, new development continues to be a core part of our strategy. Our goal is to maintain flexibility and pursue opportunities that align with our underwriting standards and return objectives—whether ground-up or stabilized.

This diversified approach supports a resilient portfolio and allows us to respond to shifting market conditions while staying true to our long-term vision.

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*Interest Rates and Monetary Policy Outlook*

Following the 2024 U.S. presidential election, there is renewed optimism for pro-business policy shifts. Market sentiment has tilted toward expectations of interest rate reductions and policy reform geared toward economic expansion. We believe the current administration may pursue:

● Lower borrowing costs through rate cuts

● Trade policy reform to support domestic industry

● Targeted tax reductions to stimulate economic activity

While execution risks remain, even partial realization of these initiatives would likely support stronger multifamily valuations, improve refinancing feasibility, and strengthen condo sales potential.

 *Looking Ahead* 

Key macro and market trends expected to shape our outlook include:

● **Interest Rates:** Anticipated rate cuts could compress cap rates and enhance refinancing opportunities, improving valuations across our portfolio .

● **Deficit Spending and Liquidity:** The federal government's $2 trillion annual deficit continues to inject liquidity into the economy. Historically, this has led to upward pressure on rents and asset values over a 12–18 month horizon.

● **Inflation and Real Assets:** Although falling rates may revive inflation pressures, multifamily remains a strong inflation hedge due to the ability to adjust rents over short timeframes.

● **Distressed Real Estate Opportunities: While** banks have largely avoided forced sales by adjusting loan terms, we continue to monitor potential opportunities—especially in commercial office-to-residential conversions. Larger-scale distress could emerge if macro conditions worsen or regional oversupply persists.

*Strategic Focus and Projections:*

We continue to target high-quality assets in stable, high-performing markets—particularly in the Midwest, which has demonstrated resilience amid national

volatility. Highlights include:

● **Midwest Market Strength:** Columbus, Indianapolis, and Kansas City continue to benefit from affordability, economic stability, and limited new supply.

● **Condo Momentum:** Two closed sales at Wild Oak mark significant progress. We expect continued sales to improve momentum and liquidity in this segment.

● **Balanced Opportunity Pipeline:** While we are evaluating stabilized acquisitions, we remain committed to pursuing new development opportunities that meet our return thresholds and market criteria.

● **Macro Trends:** Continued deficit spending, rising inflation expectations, and supply-side constraints all support a positive long-term outlook for multifamily rents and valuations.

 *Conclusion:* 

As we approach the second half of 2025, our multifamily holdings continue to offer strong fundamentals and cash flow, even in the face of macroeconomic uncertainty. The policy environment and interest rate trajectory appear favorable, supporting both near-term performance and long-term valuation upside.

With a flexible approach to both development and acquisition, and a disciplined focus on resilient markets like the Midwest, we believe the Company is well positioned to continue delivering strong risk-adjusted returns while remaining adaptive to evolving opportunities.

Changes in And Disagreements with Accountants on Accounting and Financial Disclosure

None.

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**MANAGER, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS**

The principals of the Manager of the Company are as follows:

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| **Name** | **Age** | **Title** | **Term at GCPF Management LLC**  | **Average Number of Hours Per Week Expected to be Devoted to Company** |
| Jason Weimer | 41 | Managing Partner | October 2020 (Inception) to Present | 16 hours / week |
| Robert Barlau | 39 | President Real Estate Operations | October 2020(Inception) to Present | 32 hours / week |
| Jack Weimer | 67 | Sponsor | October 2020 (Inception) to Present | 4 hours / week |
| Skip Johnson | 39 | President Business Development | September 2021 to Present | 8 hours / week |
| Austin Schmitt | 34 | Chief Operating Officer | September 2021 to Present | 8 hours / week |
| Allen Lemay | 43 | Sponsor | May 2022 to Present | 4 hours / week |

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**Family Relationships**

Jack Weimer is Jason Weimer's father.

**Duties, Responsibilities and Experience**

Jason Weimer and Robert Barlau are the managers of GCPF Management LLC which is the Manager of the Company. All business and affairs of the Company shall be managed by the Manager. The Manager shall direct, manage, and control the Company to the best of its ability and shall have full and complete authority, power, and discretion to make any and all decisions and to do any and all things that the Manager shall deem to be reasonably required to accomplish the business and objectives of the Company. The rights and duties of the Manager is described in the Operating Agreement.

The principals of the Manager are as follows:

**Jason Weimer** 

*Managing Partner*

Jason, the founder of Gratus Capital, LLC (d/b/a Gratus Funds) is in charge of day-to-day operations and leads the acquisitions team. Since 2008, Gratus Capital has grown assets under management from 0 to $14 million. As the founder of Gratus Capital, Jason has built an experienced team of qualified professionals with a track record of properly assessing the needs of an asset and finding the right resource to get the job done.

In the first four years Jason served as the property manager as well as the asset manager learning all components of a successful real estate operation, from leasing, to legal, to evictions, to human psychology, to the value of good partners and putting a great product forward. In the fifth year, property management was outsourced and actually helped to lower overall operating costs through the efficiencies of scale gained through the manager.

In 2015, Gratus Capital launched its second investment partnership. Also in 2015 all Gratus Capital partners participated in a formal 12-month mentoring program with a successful multi-family syndicator out of Virginia to round out their knowledge of multi-family syndication and commercial real estate investment.

Jason's vision for the fund was to share the benefits of real estate ownership to everyday families like his closest friends and family. Gratus Capital's second real estate fund raised $1.6MM of equity, acquiring a diversified portfolio of single families, duplexes and multi-family in the Greater Minneapolis market. Toward the end of 2018 Gratus Capital made a strategic shift to focus exclusively on multi-family properties.

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**Robert Barlau** 

*President Real Estate Operations*

Since joining Gratus Capital in 2016, Bob has been a driving force in building the firm's existing funds and infrastructure. After transitioning to a full-time partner in 2020, he has overseen critical functions, including audits, SEC filings, fundraising, fund administration, and investor relations. Bob's leadership has been pivotal in expanding the firm's offerings and ensuring that Gratus Capital operates with efficiency and transparency.

Bob leads the operations of the firm's current Reg D and Reg A funds, while advancing Gratus Capital's mission to serve investors by providing access to a diverse range of alternative investments. His focus is on both maintaining the quality of existing funds and executing plans for future growth.

Before joining Gratus full-time, Bob spent a decade at Aerotek, where he earned multiple performance awards and rose to a leadership position, directing a high-performing team that became the largest market segment in his division.

**Jack Weimer**

*Sponsor*

Jack is a graduate of Valparaiso Technical Institute of Valparaiso, IN holding an AS degree in Engineering Electronics. He later received a BA degree from Trinity International University of Deerfield, IL in 1985. Jack spent 36 years in various technical and leadership roles at Eagle Test Systems, an international leader in automated electronic test equipment, where he ultimately served as Chief Technical Officer helping build the company to more than $120 MM in revenue by the time the company went public on the New York exchange in 2006.

Having had the responsibility of managing his own retirement funds, Jack had the unique opportunity to watch and compare the various investment options offered to him and others his age. Despite having access to some of the most sophisticated investment products Wall Street had to offer and the associated volatility, he was less than impressed with the overall performance.

After years of mediocre results and multiple heart-dropping crashes, Jack became a founding investor in Gratus Capital's first real estate fund. In his 20 years of investing, of all his various investments, the most consistent positive performer was his rental real estate.

In 2016, Jack left his 36-year career and became a partner at Gratus Capital. Jack has a passion for helping others avoid many of the investment mistakes and headaches he's had along the way, providing tried and true alternatives for folks desiring good quality investment options. At Gratus Capital, Jack supports capital development, compliance and general operations.

**Skip Johnson**

*President Business Development*

Skip leads business development for Gratus Capital. Previous to his role at Gratus, Skip was a cofounder and partner of Great Waters Financial from October 2012 to September 2021, a Minneapolis based wealth management and financial planning firm. Skip was integral to help the firm grow to serving over 1000 households with over a billion dollars of assets under management in 8 years' time.

Great Waters Financial earned a place on the MN Fast 50 list (50 fastest growing privately held businesses in MN) for four years straight, was recognized on the INC 5000 list three times, and was named a "Best Places to work in MN" among mid-sized companies. Skip was involved in company strategy, marketing, and helped create "architecting your retirement tm" and the "Foundational Investing tm" planning philosophy.

As his business grew, Skip became an early investor in a Gratus fund as well as other private offerings that became available to him.

After more than a decade of helping hundreds of families retire confidently through a balanced financial plan of stocks, bonds, and other publicly available investments, Skip saw how privately held investments that were becoming an increasingly significant part of his personal financial plan, were not available to the masses. He recognized how rules that were meant to protect could also harm, largely limiting alternative investments to those who already had money.

Skip is inspired by Gratus Capital's mission to democratize access to high-quality investments and to help people pursue their purpose beyond money. Skip helps investment advisers and firms serve their clients through the integration of Gratus Capital's Funds into their existing processes.

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**Austin Schmitt**

*Chief Operating Officer*

Austin leads business operations at Gratus Capital as its Chief Operating Officer. Before his role at Gratus Capital, Austin was a partner and Director of Operations at Great Waters Financial from February 2014 to September 2021, one of the fastest growing financial advisory firms in the country.

Leading Great Waters Financial through growth to over one billion dollars of assets under management in less than 8 years has taught him a vast understanding of scale, structure, and strategy. The passion of operational leadership and employee development has fueled the drive to use great business practices to impact the world around him.

That passion aligns clearly with the Gratus Capital mission to democratize access to investments that can help people achieve financial margin to focus more on what matters most to them.

Austin is motivated to bring these investments to as many people as possible.

**Allen LeMay**

*Sponsor*

Allen grew up in a small town of 800 people in Northwestern Wisconsin. After graduating high school, he attended St. Cloud State University and received a Bachelor of Science in Marketing. Currently, Allen is an account executive at ServiceNow working with Fortune 100 companies on their digital transformation strategies since September 2021. Prior to ServiceNow he spent six years at Workday as a Regional Sales Director from March 2015 to June 2020. In this role, Allen was responsible for facilitating complex multimillion-dollar enterprise resource planning (ERP) deals. This required him to work closely with VP & C-Level executives to create a shared vision. In addition, he was responsible for developing the strategy their internal team would execute on. Allen has consistently been a top performer in his different roles, which he credits to the team that was supporting him.

Allen got started investing in real estate in 2003 and has always had a passion for it. He believes in the power of passive income and compounding interest. These are two principles he grown a huge passion for and wants to do everything he can to educate the masses on. He has been involved in multiple syndications as both a general partner and limited partner with most of the properties being in Kentucky & Tennessee.

Other intertest of Allen's include: spending time with wife and daughter, giving back to community, trail running, biking (mountain & road), fishing, hiking, hockey, cold plunging, pushing yourself to physical and mental limits you don't think possible.

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**EXECUTIVE COMPENSATION**

The Manager and its officers/owners/employees have not received any cash compensation from the Company to date and are not expected to receive any salary or bonus compensation in the future. Two types of Compensation are payable to the Manager: (a) the Manager, in the Form of Management Fees and (b) Distributable Cash received based on their ownership of Class C Interests. The managers of the Manager, Jason Weimer and Robert Barlau, were issued and 100% of the Class C Interests issued (as founder's interest) in exchange for $1000, and contributed those Units to the Manager as of January 1, 2025. These interests entitle the Manager to 20% of Distributable Cash of the Class A Unit Percentage Share PLUS and 30% of Distributable Cash of the Class B Unit Percentage Share. This Compensation is reduced by the Company's Side Letter Agreement (Exhibit 6.2), in which eligible investors (referred to as Class A+ Investors) are assigned cashflows from the Company's Class C Member such that the Class A+ investors will receive eighty-five percent (85%) of eligible Distributable Cash instead of eighty percent (80%). Distributions to Company members began in April 2025, with $274,972.99 total distributions made on April 21, 2025 ($220.048.47 of which were made to Class A and Class B Unitholders and the remaining $54,924.52 distributed to the Manager who holds our Class C Units).

**Compensation Paid to the Manager**

The Manager shall receive the following fees:

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| **Phase of Operation** | **Basis for Fee** | **Amount of Fee** |
| Acquisition Fee | Fees charged to the Company as Properties are acquired for the Manager's efforts in conducting due diligence and making the investment opportunity available to Investors. | 2% of the purchase price of each Property or investment, including leverage (which, with typical leverage, will typically come out to approximately 6% to 8% of the total purchase price, or of the total cost of property acquisition and development in the case of new development). In the case of a co-invest with joint venture partner(s), the Acquisition Fee will be prorated by the Company's ownership interest in the joint venture entity. As of May 31, 2025, the Manager has been paid $860,692.16 in acquisition fees. The total amount of this fee is difficult to determine at this time, but are estimated in the section entitled "USE OF PROCEEDS", above. |
| Origination Fee | Fees charged to the Company as loans are made for the Manager's efforts in conducting due diligence and making the investment opportunity available to Investors. | 4% of the amount loaned by the Company. As of May 31, 2025, no such fees have accrued or been paid to the Manager or its Affiliates. The total amount of this fee is difficult to determine at this time. |
| Asset Management Fee  | Fees charged to the Company for management of its investments  | Up to the greater of 1% per annum of the total of all Class A, Class B, and Class C member's initial Capital Contributions (without reduction for any returned capital) OR 2% of the total gross income of the Fund. As of May 31, 2025, the Manager has been paid $252,402 in Asset Management Fees. The total amount of this fee is difficult to determine at this time. This fee may be paid monthly.  |
| Construction Management Fee  | Fees charged to the Company for efforts in overseeing construction on the Property.  | 5% of total construction costs (materials and labor) to be paid monthly to the Manager or a third-party during construction or rehabilitation on each Property. These fees will be charged only on capital improvements or other construction that are not included in the total cost of property acquisition and development. As of May 31, 2025, no such fees have accrued or been paid to the Manager or its Affiliates. The total amount of this fee is difficult to determine at this time.  |
| Property Management Fees  | Fees charged to the Company for the Manager's or a third party's property management services . | Up to 7% of gross collected income. As of May 31, 2025, no such fees have accrued or been paid to the Manager or its Affiliates. The total amount of this fee is difficult to determine at this time. |
| Refinance Fees | Fees charged to the Company for the Manager's efforts in generating a loan package for consideration by lenders. | 1% of new or supplemental loan amount. As of May 31, 2025, no such fees have accrued or been paid to the Manager or its Affiliates. The total amount of this fee is difficult to determine at this time. |
| Interest on Manager Advances | Interest charged to the Company for deferral of repayment of Advances or reimbursement expenses. | Up to 10% interest per annum (as described in Article 3.1) from the date the Advance is made or the reimbursement is due (e.g., closing on a Property) to the date of repayment. Such advances generally take place pursuant to the terms of the Company's revolving credit line with an Affiliate of its Manager for up to $50,000,000 of funds. As of May 31, 2025, an Affiliate of the Manager has been paid a total of $703,179 in interest. |

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**Employment Agreements**

There are no current employment agreements or current intentions to enter into any employment agreements.

**Additional Fees Paid to Third Parties**

Note that the fees detailed in this section do not include payments made by the Company or its subsidiaries to third party independent contractors or joint venture partners who may perform management functions on behalf of the Company and its subsidiaries.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

The following table sets forth information as of May 31, 2025.

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|:---|:---|:---|:---|:---|:---|
| **Title of Class** | **Name of** <br> **Beneficial Owner** | **Percent**<br> **Of Class** <br> **Before** <br> **Offering** | **Percent** <br> **of Class**<br> **After**<br> **Offering<sup>\*</sup>** | **Percent of** <br> **Company**<br> **Before**<br> **Offering** | **Percent of** <br> **Company**<br> **After**<br> **Offering<sup>\*</sup>** |
| Class C Interests | GCPF Management LLC | 100.00% | 100.00% | 20.00% | 20.00% |
| Class A Interests | Jason Weimer | 4.26% | 1.19% | 3.58% | 0.99% |
| Class A Interests | Robert Barlau | 0.11% | 0.03% | 0.09% | 0.02% |
| Class A Interests | Skip Johnson | 0.81% | 0.23% | 0.68% | 0.19% |
| Class A Interests | Austin Schmitt | 0.41% | 0.11% | 0.34% | 0.09% |
| Class A Interests | Allen Lemay | 1.25% | 0.35% | 1.05% | 0.29% |
|  | **TOTAL** |  |  | **25.74%** | **21.58%** |

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\* As of May 31, 2025 the Company has 1,235,254 Class A Units (approximately 84.19% of Units) and 231,898 Class B Units (approximately 15.81% of Units) outstanding which it sold for $10, $10.19, $11.08, or $13.08 each. The After Offering percentages reported in this table assumes that the Company sells an additional $50,000,000.00 in Units for $12.29 each (Approximately 3,822,630 additional Units), the highest price possible under this offering, that 80% of additional Units sold are Class A Units (approximately 3,058,104), and that the individuals listed do not purchase further Units.

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The Class A and Class B Interests collectively maintain an 80% interest in the Company overall and the Class C Interests will maintain a 20% interest in the Company overall. Class A and Class B Interests are being sold through this Offering. The Class A Interests purchased by Management were purchased through this offering on the same terms as other investors, and members of Management may decide to purchase additional Class A Interests. Class C Interests were issued to Jason Weimer and Robert Barlau at inception of the Company for $10 per Unit ($1000 total), and transferred to GCPF Management LLC as of January 1, 2025.

"Beneficial ownership" means the sole or shared power to vote or to direct the voting of, a security, or the sole or shared investment power with respect to a security (i.e., the power to dispose of or to direct the disposition of, a security). In addition, for purposes of this table, a person is deemed, as of any date, to have "beneficial ownership" of any security that such person has the right to acquire within 60 days from the date of this Offering.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

The Company utilizes office space provided at no cost from our Manager. Office services are provided without charge by the Company's Manager. Such costs are immaterial to the financial statements and, accordingly, have not been reflected.

The Company has entered into a promissory note and line of credit with the Managing Member, with the purpose of funding operating expenses and "pre-funding" the acquisition of assets. As of December 31, 2024, June 30, 2024, December 31, 2023, June 30, 2023, December 31, 2022, June 30, 2022, and December 31, 2021, funds due to an affiliate of the Manager of the Company (including both principal provided and interest accrued thereon), are approximately $0, $2,465,988.33, $3,743,430, $4,750,400, $5,108,921, $252,297, and $238,923 respectively. The Note is an uncollateralized revolving credit facility which matures October 28, 2030. Interest due thereon, accrues at simple rate of interest set at the coupon rate on a U.S. 10-year treasury note + five percent (5%) per annum, not to exceed 10% (the "Alternative Base Rate"). This rate adjusts semi-annually on January 1 and July 1 of each year, and as of January 1, 2025, is currently 9.57%. As of the date of this Offering Circular, the Company has not drawn on this credit facility during 2025.

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**SECURITIES BEING OFFERED AND SUMMARY OF OPERATING AGREEMENT**

We are offering up to $50,000,000 in Class A Interests and Class B Interests (collectively "Investor Interests" or "Interests"). We estimate that we may sell up to 3,661,513 Class A Units for up to $45,000,000 (approximately 2,441,008 of which, for up to $30,000,000, will be Class A Units purchased by Class A+ Members who sign the Side Letter Agreement) and up to 406,834 Class B Units for up to $5,000,000, although we may adjust these estimates by filing a post-qualification amendment. Investors will receive Class A Units if they either (a) purchase at least One Hundred Thousand Dollars ($100,000) worth of Investor Interests; or (b) have previously invested in Affiliates of the Manager, as determined in the sole discretion of the Manager. Eligibility for Class A membership will be assessed based on the potential investor's historical involvement with and contributions to the Manager's Affiliates' business activities prior to the commencement of this offering and is intended to recognize individuals whose support has been crucial to the Manager's success. All other direct investors shall be admitted as Class B Members. Investors who are admitted as Class B Members and later purchase additional Units resulting in a total Unreturned Capital Contribution of $100,000 or higher will have their Class B Units converted to Class A Units as of the date the Capital Contribution bringing their total above $100,000 is received in the Company's escrow account and determined to be in good order.

Investors who purchase at least $500,000 in Class A Units, who purchase Units through a RIA, who purchase units through a registered broker-dealer, or who are current employees of the Manager or any Development Partner with whom the Company does business are also eligible to take advantage of the Company's Side Letter Agreement, the Form of which is attached to as Exhibit 6.2 hereto. Under this Side Letter Agreement, eligible investors (referred to as Class A+ Investors) are assigned cashflows from the Company's Class C Members (who are also members of the Manager) such that the Class A+ investors will receive eighty-five percent (85%) of eligible Distributable Cash instead of eighty percent (80%). Any disputes under the Side Letter Agreement are subject to the same dispute resolution process as disputes under the Company's Operating Agreement. While this Agreement shall be open to all Class A Members during the duration of this offering, the Side Letter Agreement shall terminate for with regards to any Class A Unit assigned, sold, or transferred (including involuntary transfers by operation of law) from the Class A+ Investors to any other Person, unless the Manager consents to the transfer of this Agreement in its sole and unlimited discretion. The terms full terms of the Side Letter Agreement are found in Exhibit 6.2 hereto.

The Operating Agreement, in the form attached hereto as Exhibit 2.1, is the governing instrument establishing the terms and conditions pursuant to which the Company will conduct business and the rights and obligations between and among the Members and the Manager, as well as other important terms and provisions relating to investment in the Company. A prospective Member is urged to read and fully understand the Operating Agreement in its entirety prior to making a decision to purchase Interests. The following is a brief and incomplete summary of the terms of the Operating Agreement and is qualified in its entirety by reference to the Operating Agreement.

**Operating Cash Distributions**

The Company will make Distributions quarterly out of available cash flow from operations equal to the total cash gross receipts of the Company during the quarter derived from all sources (other than capital contributions and capital transactions) together with any amounts included in reserves or working capital from prior periods which the Manager reasonably determines to distribute, or the sale, refinancing or disposition of investments, as determined by the Manager, net of disbursements and less the operating expenses of the Company paid during such period (including, but not limited to, present and anticipated debts and obligations, capital needs and expenses, the payment of any management or administrative fees and expenses, including without limitation the Acquisition Fee, Asset Management Fee, Construction Management Fee, Property Management Fees, or Refinance Fee and reasonable reserves for contingencies) and any increases or replacements in reserves (other than from Capital Contributions) during such period ("Distributable Cash").

Additionally, the Manager may, at its sole discretion, decide to limit or forgo distributions by withholding sufficient what would otherwise be Distributable Cash in order to invest in new or currently held Properties, real estate backed loans, or other real estate backed investments, or to ensure that sufficient cash will be on hand to make such investments when investment opportunities become available.

The Manager will divide Distributable Cash into two categories based on the relative proportion of Class A and Class B units sold. For purposes of illustration, if total units sold were 100,000, 35,000 of which were Class A Units and 65,000 of which were Class B Units, the Class A Unit Percentage Share would be 35% and the Class B Unit Percentage Share would be 65%. The Manager will then make distributions of Distributable Cash as follows: (a) to Class A Members 80% of Distributable Cash out of the Class A Unit Percentage Share; (b) to Class B Members, 70% of Distributable Cash out of the Class B Unit Percentage Share; and (c) to Class C Members, all remaining Distributable Cash (20% of Distributable Cash out of the Class A Unit Percentage Share and 30% of Distributable Cash out of the Class B Unit Percentage Share).

In-kind Distributions. The Manager will generally not cause the Company to make in-kind distributions; provided, however, that publicly traded securities (or interests convertible into such securities) may be distributed from time to time if, in the good faith discretion of the Manager, such a distribution will result in a greater return for the Members.

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**Profits and Losses**

Losses for any fiscal year shall be allocated among the Members in proportion to their positive Capital Account balances, until the balance of each Capital Account equals zero. Thereafter, all losses shall be allocated in accordance to each Member's respective Percentage Interest in the Company, giving consideration to their respective ownership period. Profits will first be allocated pro rata to the Members in accordance with the amount of Losses previously allocated if such previous Losses were not offset by Profits. Thereafter, Profits shall be allocated shall be allocated among the Members, in proportion to their Economic Interest. Class A Members will be allocated 80% of Profits proportion to their respective Percentage Interests in the Class A Unit Percentage Share of Profits, and Class B Members will be allocated 70% of Profits proportion to their respective Percentage Interests in the Class B Unit Percentage Share of Profits. The holder of the Class C Interests (currently Jason Weimer and Robert Barlau, the managers of the Manager) will be allocated 20% of the Profits from the Class A Unit Percentage Share of Profits and 30% of Profits from the Class B Unit Percentage Share of Profits. In all cases, consideration will be given to their respective ownership period.

**Voting Rights of the Members**

The Members will have no right to participate in the management of the Company and will only have the following rights:

***Votes Requiring Unanimous Approval of All Members***

Unanimous consent of all Members is required for any of the following matters:

· To authorize an act that is not in the ordinary course of the business of the Company; and

· To amend the Certificate of Formation or make substantive amendments to the Operating Agreement.

***Votes Requiring Approval of 75% of the All Members' Interests other than the Manager***

Consent of the Members holding the seventy five percent (75%) of all Members' Interests (other than the Manager) must affirmatively vote to approve any of the following actions:

· To issue a Notice to Perform to the Manager (as defined in the Operating Agreement); and

· To remove the Manager for Good Cause (see below.)

***Votes Requiring Approval of a Majority of Interests of all Members***

A vote of a Majority of Interests of all Members is required to:

· Fill a vacancy after the Manager has resigned or been removed;

· Approve any Major Decision (e.g., file a lawsuit on behalf of the Company, see Article 6.4 of the Operating Agreement);

· Appoint a new "partnership representative"; and

· Any other matter that the Manager wishes to put to a vote of the Members

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***Removal of Manager for Cause***

All Class A, Class B, and Class C Members (other than the Manager) who collectively own seventy five percent (75%) or more of the Interests (the requisite Interests) shall issue a Notice to Perform to the Manager in accordance with the notice provision in Article 15.1 of the Operating Agreement. The Notice to Perform shall describe the matters of concern to the Members and shall give the Manager up to sixty (60) days to correct the matter of concern to the satisfaction of the voting Members. If the Manager fails to respond to the concerns or demands contained in such Notice to Perform then;

The Manager may be immediately removed, temporarily or permanently, for "Good Cause" determined by: (a) a vote of the requisite Members described above, or (b) by an arbitrator or judge per Article 13.5.4 of the Operating Agreement. *Note, however, that removal of the Manager may require approval of a lender or substitution of a loan guarantor if any loan was conditioned on the qualifications of the Manager.*

**Reasons for Removal; Good Cause Defined**

The previous Manager must serve until a new Manager is hired or elected. The Class A and Class B Members hereby agree that any right of removal shall be exercised only in good faith. "Good Cause" shall include only the following, as determined by a vote of the requisite Interests:

· Any of the acts described in the Operating Agreement, Article 6.10;

· A breach of a Manager's duties or authority hereunder;

· Willful or wanton misconduct;

· Fraud;

· Bad faith;

· Death or disability wherein the Manager (or any of the members of the Manager with authority to Manage the Company) dies or becomes physically, mentally, or legally incapacitated such that it can no longer effectively function as the Manager of the Company or the dissolution, liquidation or termination of any entity serving as the Manager and no other member, officer or director of the Manager is willing or able to effectively perform the Manager's duties;

· Disappearance wherein the Manager (or each of the members of the Manager) fail to return phone calls and/or written correspondence (including email) for more than thirty days (30) without prior notice of an anticipated absence, or failure to provide the Members with new contact information;

· Issuance of a legal charging order and/or judgment by any judgment creditor against the Manager's Interest in Cash Distributions or Fees from the Company;

· A finding by a court of law or arbitrator that the Manager committed any of the acts described in Article 6.10 of the Operating Agreement, for which the Manager is specifically not indemnified by the Company; or

· The Manager becomes subject to a "disqualifying event" at any time during operation of the Company.

**Limits on Manager's Liability; Indemnification**

The Manager will be fully protected and indemnified by the Company against all liabilities and losses suffered by the Manager (including attorneys' fees, costs of investigation, fines, judgments and amounts paid in settlement, actually and reasonably incurred by the Manager in connection with such action, suit or proceeding) by virtue of its status as Manager with respect to any acts or omissions, except for cases where a finding is made by a court of law or arbitrator that the Manager engaged in intentional misconduct including, but not limited to, a knowing violation of the law. The provisions of this indemnification will also extend to all managers, Members, affiliates, employees, attorneys, consultants and agents of the Manager for any action taken by it on behalf of the Manager pursuant to the Operating Agreement.

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**Parallel Funds, Special Purpose Entities and Co-Investment Opportunities**

The Manager may, in its discretion and to the extent permitted by applicable law, create or sponsor partnerships or other vehicles that will be formed for participating *pro rata* and *pari passu* in the portfolio companies of the Company ("Parallel Fund"). It is the intention of the Manager that the Manager of the Company will also act as the Manager of the Parallel Fund; provided, however, if such an arrangement were to become prohibited or result in a conflict of interest, a separate Manager will be established. The Parallel Fund will contain the similar economic terms, rights, restrictions and obligations for its investors as are applicable to Members in the Company.

Where the Manager deems it appropriate, the Company may use special purpose entities as subsidiaries, including corporations, limited liability companies and limited partnerships to make and hold investments. The Manager may also cause the Company to invest through corporations, limited liability companies, limited partnerships, joint ventures (both with third-parties and affiliates of the Manager), or other arrangements in which the Fund has an economic interest and where such arrangements are reasonably expected to preserve in all material respects the overall economic relationship of the Members.

To the extent that the Manager determines that any Company investment requires co-investment by third parties, the Manager may offer, but is not required to offer, to the Manager and all Members the opportunity to co-invest on a side-by side basis with the Fund and the Parallel Fund in such investment. The Manager shall have the right, in its sole discretion, to accept all, none or any portion of such Members' capital for such co-investment opportunity and may offer all or any portion of such co-investment opportunity to any third parties, and the terms offered to such third parties may be different than the co-investment terms offered to electing Members.

**Other Activities of Manager: Affiliates**

The Manager need not devote its full time to the Company's business, but shall devote such time as the Manager in its discretion, deems necessary to manage the Company's affairs in an efficient manner. Subject to the other express provisions of the Operating Agreement, the Manager, at any time and from time to time may engage in and possess interests in other business ventures of any and every type and description, independently or with others, including ventures in competition with the Company, with no obligation to offer to the Company or any Member the right to participate therein, The Company may transact business with any Manager, Member, officer, agent or affiliate thereof provided the terms of those transactions are no less favorable than those the Company could obtain from unrelated third parties.

**Withdrawal Policy**

*Restrictions on Use*

On April 28, 2025, the Manager updated the Company's Withdrawal Policy to ensure compliance with various SEC Regulations. The purpose of this policy is to provide limited liquidity to Company Members, especially deceased members and members experiencing financial hardship. To the extent the Company is permitted by applicable law and regulations and is not selling Units pursuant to a public offering, the Company may also establish a Redemption Plan pursuant to which any Member may request that the Company redeem all or any portion of their Units at times and on terms other than those outlined below.The Company reserves the rights to make further amendments to, or suspend operation of, this Withdrawal Policy or any adopted Redemption Plan, as may be necessary to comply with applicable law. The Company expects to suspend operations of this Withdrawal Policy or any adopted Redemption Plan in the event a secondary market for Company Units develops.

No Member may withdraw any portion of its Capital Account within the first 12 months a Member's admission to the Company. Thereafter, the Company will use its best efforts to honor requests for a return of capital subject to, among other things, the Company's then available cash flow, financial condition, and approval by the Manager. The maximum aggregate amount of capital that the Company will allow Members collectively to withdraw each calendar year is limited to 5.0% of the Interests of the Company as of December 31 of the prior year. Notwithstanding the foregoing, the Manager may, in its sole discretion, waive such withdrawal limits if a Member is experiencing undue hardship.

*Withdrawal Price Calculation*

The Company will periodically calculate its Net Asset Value ("NAV") in accordance with valuation guidelines adopted by the Company's Management. The Company expects to make such calculations annually but may make them more or less frequently in the discretion of the Company. After performing and publishing such calculations, the Company expects to update the price at which it is selling additional Units to be equal to the updated per Unit NAV. However, the Company reserves the right to sell Units for a price other than the currently calculated NAV in cases where the Company believes there has been a material change (positive or negative) to the Company's NAV per Unit since the last calculation was performed.

The price paid at the time of Withdrawal shall be the greater of:

· the Company's most recently determined and published NAV per Unit, times the number of Units being withdrawn, times 95%;

OR

· the Units' Unreturned Capital Contribution, without any allowance for appreciation of the underlying Properties;

PROVIDED THAT

· In the event the above calculation results in a per Unit price that is greater than the price at which the Company is currently selling Units times the number of Units being withdrawn, the total price for all withdrawing Unis will be adjusted to equal the per Unit price at which the Company is currently selling Units times the number of Units being withdrawn. This is to ensure To ensure compliance with SEC regulations, the Company will in no event pay a premium over the price at which the Company is currently selling Units.

To prevent member Withdrawal from potentially harming the remaining members of the Company, the Manager shall not allow any Withdrawals during any period in which the total "Unit Price" of all outstanding Class A and Class B Units exceeds the net asset value of the Company, as calculated by the Manager in its sole and absolute discretion.

*Procedure*

Members may submit a written request for withdrawal as a Member of the Company and may receive a 100% return of capital provided that the following conditions have been met: (a) the Member has been a Member of the Company for a period of at least twelve (12) months; and (b) the Member provides the Company with a written request for a return of capital at least ninety (90) days prior to the requested date of withdrawal ("Withdrawal Request").Members should be advised that it may take more than 90 days for the Company to amass sufficient Cash Available for Withdrawals to complete a Withdraw Request and give the Company as much advance notice as possible of their desire to Withdrawal.

The Company will not establish a reserve from which to fund withdrawals of Members' Capital Accounts and such withdrawals are subject to the availability of cash in any calendar quarter to make withdrawal distributions ("Cash Available for Withdrawals") only after: (i) all current Company expenses have been paid (including compensation to the Manager, Manager and its affiliates as described in this Offering Circular); (ii) adequate reserves have been established for anticipated Company operating costs and other expenses and advances to protect and preserve the Company's investments in properties; and (iii) adequate provision has been made for the payment of cash distributions owing to Members.

The Company is not required to liquidate any properties for the purpose of liquidating the capital account of withdrawing Members. In the event the Company does not have sufficient Cash Available for Withdrawals to distribute the requested amounts to all Members that have outstanding withdrawal requests, the Company may distribute that portion of the Cash Available for Withdrawals remaining in such quarter to all withdrawing Members pro rata based upon the relative amounts being withdrawn as set forth in the Withdrawal Request.

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Notwithstanding the foregoing, the Manager reserves the right to use all Cash Available for Withdrawals to liquidate the capital accounts of deceased Members or ERISA plan investors in whole or in part, before satisfying outstanding withdrawal requests from any other Members. The Manager also reserves the right, at any time, to liquidate the capital accounts of ERISA plan investors to the extent the Manager determines, in its sole discretion, that any such liquidation is necessary in order to remain exempt from the Department of Labor's "plan asset" regulations.

Upon the approval and completion of any Withdrawal Requests by the Company, the Units approved in the Withdrawal Request shall terminate and the Manager shall amend Company records to reflect each Member's adjusted Membership Interest as appropriate, based on the Company's total adjusted Membership Interest, at the completion of the Withdrawal Requests. After the completion of the Withdrawal Request, all Members' rights to vote and receive Cash Distributions from operations and Capital Transactions, if any, will be based on their newly calculated Membership Interest. If all of a Member's Units are included in a completed withdrawal, that Member shall cease being a Member of the Company.

**Transfers of Interests**

A Member may assign, his, her or its Interests only if certain conditions set forth in the Operating Agreement are satisfied. In the event any Member wishes to sell its Interest, it must first submit its offer to sell and the proposed price to the Manager and other Members, who shall have 30 days to elect to purchase the entire interest being so offered. If the Manager and other Members do not choose to exercise this right of first refusal, the selling Member may propose such a transaction with third parties for Manager Approval. Except as otherwise consented to by the Manager, the assignee must meet all requirements applicable to other original subscribers and must consent in writing to be bound by all the terms of the Operating Agreement. In addition, the Company must receive written evidence of the assignment in a form approved by the Manager and the Manager must have consented in writing to the assignment. The Manager may withhold this consent in its sole and absolute discretion, and no transfers to minors or incapacitated persons will be allowed (except in trust or by will or intestate succession). Prior to the Manager's consenting to any assignment, the Member must pay all reasonable expenses, including accounting and attorneys' fees, incurred by the Company in connection with the assignment.

**Dissolution of the Company, Liquidation and Distribution of Assets**

The Company shall be dissolved upon election of a 75% vote of all Members to dissolve the Company or on the sale of all of the Company's Properties (which may be determined solely by action of the Manager).

**Accounting Records and Reports**

The Company shall engage an independent certified public accountant or accounting firm, in the discretion of the Manager, to audit the Company's financial statements as of the end of each fiscal year (which shall be the calendar year). The Manager shall provide audited financial statements of the Company as of the end of and for such fiscal year to each member of the Company by April 30th of each year. No later than March 31<sup>st</sup> of each year the Company will provide (i) a Schedule K-1 for such Member with respect to such fiscal year, prepared in accordance with the IRS Code, together with corresponding forms for state income tax purposes, setting forth such Member's distributive share of Company items of Profit or Loss for such fiscal year and the amount of such Member's Capital Account at the end of such fiscal year, and (ii) such other financial information and documents respecting the Company and its business as the Manager deems appropriate, or as a Member may reasonably require and request in writing, to enable such Member to prepare its federal and state income tax returns.

As soon as practicable after the end of each semi-annual period, but in no event later than 90 days following the end of each such period, the Manager shall prepare and e-mail, mail or make available on its secure website portal, to each Member (i) the Company's unaudited financial statements as of the end of such fiscal semi-annual and for the portion of the fiscal year then ended, (ii) a statement of the properties of the Company, including the cost of all properties, and (iii) a report reviewing the Company's activities and business strategies for such period. The Manager shall cause the Company reports to be prepared in accordance with GAAP.

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**Alternative Dispute Resolution**

The Company Operating Agreement contains a dispute resolution agreement. Litigation could require diversion of Company Profits to pay attorney's fees or could tie up Company funds necessary for operation of the Company, impacting the profitability of the investment for all Members. The Company compels Members to attempt mediation followed by arbitration in a procedure adapted from guidelines and rules published by the American Arbitration Association (AAA). This provision excludes claims under federal securities laws and the rules and regulations promulgated thereunder.

We believe this is enforceable under federal law and the state of Delaware as it not only clear and unambiguous, but it clearly states, multiple times, that the Member is waiving his/her right to bring a claim in a court of law before a judge or a jury. The Alternative Dispute Resolution Act (1998) requires all federal district courts to authorize and promote the use of alternative dispute resolution programs. The state of Delaware encourages arbitration and passed the Delaware Rapid Arbitration Act (DRAA) which is designed to make arbitration practice more timely and efficient. The DRAA imposes time limitations on the arbitrator compelling arbitration to complete within 120 days with a 60-day extension.

Despite these laws and rules in place, we are uncertain of the enforceability of any Alternative Dispute Resolution provision.

Members, by agreeing to this alternative dispute resolution, will not be deemed to have waived the company's compliance with the federal securities laws. If, in any action against the Manager, the selected or appointed arbitrator, or judge (if applicable) makes a specific finding that the Manager has violated securities laws, or has otherwise engaged in any of the actions for which the Manager will not be indemnified, the Manager must bear the cost of its own legal defense. The Manager must reimburse the Company for any such costs previously paid by the Company. Until the Company has been fully reimbursed, the Manager will not be entitled to receive any Fees or Distributions it may otherwise be due.

It is expected that all Members, including those in secondary transactions, would be subject to the arbitration provision.

**INDEMNIFICATION**

As permitted by Delaware law, our Operating Agreement provides:

· we will indemnify our Manager to the fullest extent permitted by law;

· we may indemnify our other employees and other agents to the same extent that we indemnify our Manager; and

· we will advance expenses to our Manager in connection with a legal proceeding and may advance expenses to any employee or agent; provided, however, that such advancement of expenses shall be made only upon receipt of an undertaking by the person to repay all amounts advanced if it should be ultimately determined that the person was not entitled to be indemnified.

**POLICIES WITH RESPECT TO CERTAIN TRANSACTIONS**

Our policy with respect to our Manager concerning certain transactions is as follows:

We do not intend on issuing senior securities but may at some time in the future. We have no interest, currently, in underwriting securities of others or purchasing securities or assets other than real property assets and securities. We may encumber our properties that we acquire with bank financing but we intend that such financing will generally not exceed 80% of the value of the property.

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**Conflicts of Interest**

Our Manager and its affiliates experience conflicts of interest in connection with the management of our business. Some of the material conflicts that our Manager and its affiliates face include the following:

1. Our Manager manages other investment opportunities and funds outside of the Company including those that have similar investment objectives as the Company. Our Manager and its members may act as members and/or members of other entities and may have future responsibilities to such entities, which entities may have similar business plans to the Company and may compete with the Company. Investors will have no right to participate in such entities or have any rights to the assets or operations thereof. To the extent our Manager or its members are required to spend time on such investment and/or management activities, they may not be able to devote full-time to the Company's operations.

2. While it has not yet done so, our Manager has the authority to invest the Company's funds in other Companies in which the Manager or an affiliate is Manager or has an interest.

3. Real estate investments may be bought from or sold to the Company by the Manager or its Affiliates, or other entities in which the Manager or its Affiliates may have an interest. To date, all such transactions have been done at cost, with the Company paying the Manager the cost paid by the Manager in connection with the acquisition. Going forward, it is possible the Manager may use appraisals to value the assets being transferred. Such appraisals will be conducted by an uninterested third party but are only estimates of value and are not a perfect analog for realized value. Since any such transaction will not take place at arms' length, the actual value of the Company Asset may be higher (or lower) than the value for which it is appraised.

4. The Manager or its affiliates may "pre-fund" a property or otherwise loan money to the Company. In order to allow it to pre-fund investments in real estate, the Company has entered into a Promissory Note with an affiliate of the Managing Member of the Company which accrues simple interest at the coupon rate on a U.S. 10-year treasury note + five percent (5%) per annum, not to exceed 10% (the "Alternative Base Rate"). This rate adjusts semi-annually on January 1 and July 1 of each year, and is currently 9.57% as of January 1, 2025. As of December 31, 2024, the Company did not have any outstanding balance pursuant to this arrangement, but the Company may utilize it again in the future to allow it to pre-fund investments in real estate.

5. The Manager will most likely enlist the services of unaffiliated third-parties in order to manage our assets, but may employ one or more affiliated entities. The compensation for those third-parties or affiliated entities will be at market rates.

6. The terms of our operating agreement (including the Manager's rights and obligations and the compensation payable to our Manager and its affiliates) were not negotiated at arm's length.

7. Our Members may only remove our Manager for "cause" following the affirmative vote of Members holding 75% of the Class A and Class B interests. Unsatisfactory financial performance does not constitute "cause" under the operating agreement.

**Allocation of Investment Opportunities**

We rely on our Manager's members who act on behalf of our Manager to:

1. Identify suitable investments. Our other funds and entities also rely on these same key real estate professionals. Our Manager has in the past, and expects to continue in the future, to offer other investment opportunities including offerings that acquire or invest in multi-family real estate, single-family real estate, commercial real estate or real estate equity investments, and other select real estate related assets.

2. These additional programs may have investment criteria that compete with us. If a sale, financing, investment or other business opportunity would be suitable for more than one program, our Manager will allocate it using its business judgment. Any allocation of this type may involve the consideration of a number of factors that our Manager determines to be relevant. The factors that our Manager's real estate professionals could consider when determining the entity for which an investment opportunity would be the most suitable include the following:

· the investment objectives and criteria of our Manager and other entities;

· the cash requirements of our Manager and other entities;

· the effect of the investment on the diversification of our Manager's and other entities' portfolio by type of investment, and risk of investment;

· the policy of our Manager and other entities relating to leverage;

· the anticipated cash flow of the asset to be acquired;

· the income tax effects of the purchase on our Manager or the other entities;

· the size of the investment; and

· the amount of funds available to our Manager or the other entities.

3. If a subsequent event or development causes any investment, in the opinion of our Manager's real estate professionals, to be more appropriate for another entity, they may offer the investment to such entity.

4. Except under any policies that may be adopted by our Manager, which policies are designed to minimize conflicts among the programs and other investment opportunities, no program has any duty, responsibility or obligation to refrain from:

· engaging in the same or similar activities or lines of business as any program;

· doing business with any potential or actual tenant, lender, purchaser, supplier, customer or competitor of any program;

· engaging in, or refraining from, any other activities whatsoever relating to any of the potential or actual tenants, lenders, purchasers, suppliers or customers of any program;

· establishing material commercial relationships with another program; or

· making operational and financial decisions that could be considered to be detrimental to another program.

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In addition, any decisions by our Manager to renew, extend, modify or terminate an agreement or arrangement, or enter into similar agreements or arrangements in the future, may benefit one program more than another or limit or impair the ability of any program to pursue business opportunities. In addition, third parties may require as a condition to their arrangements or agreements with or related to any one particular program that such arrangements or agreements include or not include another program, as the case may be. Any of these decisions may benefit one program more than another.

**Receipt of Fees and Other Compensation by our Manager and its Affiliates**

Our Manager and its affiliates will receive substantial fees from us, which fees will not be negotiated at arm's length. These fees could influence our Manager's advice to us as well as the judgment of affiliates of our Manager. Among other matters, these compensation arrangements could affect their judgment with respect to:

· the continuation, renewal or enforcement of provisions in our operating agreement involving our Manager and its affiliates;

· public offerings of equity by us, which will likely entitle our Manager to increased acquisition fees, asset management fees and other fees;

· acquisitions of investments at higher purchase prices, which entitle our Manager to higher acquisition fees and asset management fees regardless of the quality or performance of the investment and, in the case of acquisitions of investments from other entities, might entitle affiliates of our Manager to disposition fees in connection with services for the seller;

· borrowings up to or in excess of our stated borrowing policy to acquire, which borrowings will increase asset management fees payable by us to our Manager;

· whether and when we seek to sell our Company or its assets; and

· whether and when we merge or consolidate our assets with other companies, including companies affiliated with our Manager.

**No Independent Underwriter**

As we are conducting this offering without the aid of an independent underwriter, you will not have the benefit of an independent due diligence review and investigation of the type normally performed by an independent underwriter in connection with the offering of securities. See "Plan of Distribution."

**PRIOR PERFORMANCE**

*Prior Performance is Not Indicative of Future Results*

The Manager of the Company is GCPF Management LLC, and the principal owners and managers of the Manager are Jason Weimer and Robert Barlau.

In April 2017, members of the Manager launched Gratus Capital Properties Fund I, LP ("GCPFI.") The purpose of GCPFI was to invest in a portfolio of cash flowing rental real estate, made up of single-family homes, duplexes and smaller multi-family properties. The initial goal was to raise $1,000,000 from friends, family and business associates. The initial $1,000,000 was fully subscribed shortly, before opening a second close window and increasing the possible equity to $2,000,000 in 2018. These offerings were conducted under Rule 505 of Regulation D. We refer to each of these securities offerings and the properties GCPFI purchased as a "Project."

The Project was demined to be similar in nature in that it raised funds from private equity offerings exempt from registration pursuant to the safe harbor afforded by Regulation D under the Securities Act for the primary purpose of acquiring income-producing residential real estate assets as long-term investments for eventual sale. In addition, the Project also has investment objectives that are similar to the investment objectives of the Company.

Because of these similarities, investors who are considering purchasing Investor Interests from the Company might find it useful to review information about the Project. Of course, prospective investors should bear in mind that <u>prior performance does not guarantee future results</u>. The fact that a prior Project has been successful (or unsuccessful) does not mean the Company will experience the same results.

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There have been no major adverse business developments or conditions experienced by any Project that would be material to purchasers of the Company's Investor Interests.

The Project raised an aggregate of $1,591,300 in equity from a total of 22 investors in 2018. Its offering materials state that the Manager will endeavor to provide a liquidity event (typically a cash out refinance) within 5 to 10 years (i.e., 2022 to 2027), and that if such refinancing was not available then the Manager would endeavor to sell the Property after a hold period of approximately 10 years (i.e., 2027). The Project regularly buys, updates, manages and sells rental property in and around the Twin Cities market in Minnesota. Cash flow has been reinvested so far to date, and approximately 50% of investment capital has been returned to investors via cash-out refinances. Based on our most recent estimates of value, equity returns have compounded at an annual rate of 10.11% per year.

**STRATEGY AND RESULTS**

As described at length in "Investment Strategy" section starting on page 34, the strategy of our Manager on the behalf of the Company is to:

1) Identify Class A-, Class B, and Class C+ multi-family apartment communities in quality locations in the Company's target markets, where the Company can add significant value through hands-on management and/or appreciation potential;

2) Buy those communities at below-market prices, or at market prices where there is sufficient upside potential to obtain above-market returns over the long term;

3) Make physical alterations and other improvements to those communities, where the Company can achieve significant benefit with minimal capital outlay; and

4) Through third-party management, increase the rents to increase the overall value of the property.

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| Net Operating Income | We calculate "net operating income" using the industry-standard definition, *i.e.*, the gross income from the property minus operating expenses. The gross income from a property means primarily rental income, but where applicable also includes other income items such as parking fees and income from operating vending machines and laundry facilities. Operating expenses include all of the expenses required to operate the property, such as insurance, property management fees, utilities, property taxes, repairs and janitorial fees. Net operating income does not reflect debt service payments (principal and interest), capital expenditures, or depreciation and amortization. |
| Cash On Cash Distribution | We calculate "cash on cash distribution" by dividing the distributions paid by the total equity invested. For example, suppose a property were purchased for $100, using $80 of debt and $20 of equity, and the property paid a distribution of $2 for a given year. The "cash on cash distribution" for that year would be 10%, $2 divided by $20. |
| IRR | "Internal rate of return" is a financial concept that measures the overall return from an investment, taking into account all the money invested and all the money returned, as well as the timing of each contribution and distribution. <br>As of May 31, 2025, the Project has sold 27 properties. |

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CAUTION: PRIOR PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE FACT THAT OUR SPONSOR HAS BEEN SUCCESSFUL WITH THESE PROGRAMS DOES NOT GUARANTY THAT THE COMPANY WILL BE SUCCESSFUL.

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**Acquisitions of Properties Within the Last Five Years**

Other than the properties purchased by the Fund, the Manager has not purchased any properties with outside investors in the last five years.

**Prior Performance Tables**

The Manager of the Company is GCPF Management LLC, and the principal owners and managers of the Manager are Jason Weimer and Robert Barlau.

In April 2017, members of the Manager launched Gratus Capital Properties Fund I, LP ("GCPFI.") The purpose of GCPFI was to invest in a portfolio of cash flowing rental real estate, made up of single-family homes, duplexes and smaller multi-family properties. The initial goal was to raise $1,000,000 from friends, family and business associates. The initial $1,000,000 was fully subscribed shortly, before opening a second close window and increasing the possible equity to $2,000,000 in 2018. These offerings were conducted under Rule 505 of Regulation D. We refer to each of these securities offerings and the properties GCPFI purchased as a "Project."

The Project was determined to be similar in nature in that it raised funds from private equity offerings exempt from registration pursuant to the safe harbor afforded by Regulation D under the Securities Act for the primary purpose of acquiring income-producing residential real estate assets as long-term investments for eventual sale. In addition, the Project also has investment objectives that are similar to the investment objectives of the Company.

**Prior Performance Tables**

We are providing a number of tables that illustrate the results of the Projects:

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| *Table* | *Projects Included in Table* | *Purpose and Subject Matter* |
| I. Experience Raising Funds | Projects the offering of which closed within the last eight years. | Provides information concerning the offerings themselves, including how the offering proceeds were deployed. |
| II. Compensation to Sponsor | Other Projects from which the Sponsor received compensation during the last eight years. | Describes all compensation paid to the sponsor within the last eight years, whether in the form of management fees  |
| III. Operating Results | Programs the offering of which closed within the last eight years. | Sets forth the annual operating results of the Programs included. |
| IV. Completed Programs | Programs completed (no longer own properties) within the last eight years. | Summarizes the results of the Programs included, including the return to Program investors. |
| V. Sales of Property | All Programs that have sold property within the last eight years. | Summarizes the result of property sales. |
| VI. Purchases of Property | Purchases of property within the last eight years. | Summarizes each property purchase, including number of units, purchase price, and financing. |

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Because of the similarities between the Programs and the Company, investors who are considering purchasing Class A or Class B Interests from the Company might find it useful to review these tables. However, prospective investors should bear in mind that PRIOR PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE FACT THAT OUR MANAGER HAS BEEN SUCCESSFUL WITH THESE PROGRAMS DOES NOT GUARANTEE THAT THE COMPANY WILL BE SUCCESSFUL.

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The prior performance tables reflect properties who's managing member is both the Manager and/or Jason Weimer and Robert Barlau. Our Manager, GCPF Management LLC, was formed in 2020 by Jason Weimer and Robert Barlau. Over time, the assets owned by the Program and managed by the Manager will be sold.

**Table I – Manager Experience *-*** *set forth the Manager's historical experience for all programs that started to raise capital in the three most recent years (i.e., between January 1, 2022 and December 31, 2024)*

Inapplicable as none of the Manager's other programs started raising capital in the most recent three years.

**Table II – Managers Compensation *-*** *summarize the compensation the Manager received from all programs closed during the most recent three years:* 

Inapplicable as none of the Manager's other programs started closed during the most recent three years.

**Table III – Operating Results of Prior Programs** ***-** set forth the operating results of properties included in prior real estate programs, the offerings of which closed in the most recent five years (i.e., between January 1, 2020 and December 31, 2024**:***

Inapplicable as none of the Manager's other programs closed during the most recent five years.

**Table IV – Results of Completed Programs** ***- i**nclude programs that have completed operations (no longer hold properties) in the most recent five years (i.e., between January 1, 2020 and December 31, 2024), even if they still hold notes**:***

Inapplicable as none of the Manager's other programs have completed operations (no longer hold properties).

**Table V– Sales or Disposals of Properties** ***-** set forth sales or disposals of property by programs with similar investment objectives within the most recent three years (i.e., between January 1, 2022 and December 31, 2024)*;

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Since inception, GCPFI has purchased 61 units across multiple property types. In 2018 managers made the decision to pivot out of a certain lower quality neighborhood successfully liquidating 10 properties for an average return of 51.6% on those properties. That equity combined with two other sales helped acquire another 8 unit building free and clear. In early 2021 GCPFI refinanced several properties and returned 14% of capital to investors. In late 2021 managers decided to sell remaining single-family homes and duplexes. Through November 30, 2022, 15 properties have been sold and an additional 25% of original equity was distributed to investors in Q3 of 2022 for a total of 39%. Since our last filing we have sold two additional properties 14697 284 1/2 Ave NW and 721 Dewey St. In December 2022 and Q1 2023, we returned an additional 11% of equity to investors for a total of 50%.

GCPFI has sold fourteen single-family homes, duplexes, and multi-family properties between January 1, 2022 and December 31, 2024; details of these transactions are given below:

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|  |  | | | **Selling Price, Net of Closing Costs and GAAP Adjustments** | **Selling Price, Net of Closing Costs and GAAP Adjustments** | **Selling Price, Net of Closing Costs and GAAP Adjustments** | **Selling Price, Net of Closing Costs and GAAP Adjustments** | **Selling Price, Net of Closing Costs and GAAP Adjustments** | **Cost of Properties Including Closing Costs and Soft Costs** | **Cost of Properties Including Closing Costs and Soft Costs** | |
| **Property Address** | **Property Address** | <br>**Date Acquired** | <br> **Sales Date** | ***Cash received net of closing costs*** | ***Mortgage balance at time of sale*** | ***Purchase money mortgage taken back by program*** | ***Adjustments resulting from application of GAAP***  | ***Total*** | ***Original mortgage financing*** | ***Total acquisition cost, capital improvement closing and soft costs*** | **Excess (Deficiency) of Property Operating Cash Receipts Over Cash Expenditures [10]**<br>***Total*** |
| 14697 284 1/2 Ave NW | Zimmerman MN | 5/15/2017 | 3/1/2023 | $45134 | $93006 | $0 | $0 | $138140 | $81054 | $71859 | $51096 |
| 326 2nd Ave NE | St. Cloud MN | 5/15/2017 | 2/25/2022 | $61732 | $98578 | $0 | $0 | $160310 | $108072 | $8589 | $60142 |
| 910 25th Ave N | St. Cloud MN | 9/3/2020 | 3/7/2022 | $36979 | $99330 | $0 | $0 | $136309 | $104000 | $8690 | $12519 |
| 1611 7th Ave S | St. Cloud MN | 5/15/2017 | 4/1/2022 | $69608 | $101024 | $0 | $0 | $170633 | $104517 | $18367 | $(2293) |
| 350 4th St NW | Milaca MN | 5/15/2017 | 5/26/2022 | $41209 | $71682 | $0 | $0 | $112890 | $62568 | $27223 | $37992 |
| 1610 Southhave Dr S | Cambridge MN | 5/15/2017 | 6/6/2022 | $95443 | $109229 | $0 | $0 | $204672 | $86742 | $40509 | $49472 |
| 25 11th Ave | Waite Park MN | 6/16/2019 | 7/21/2022 | $227395 | $387782 | $0 | $0 | $615177 | $416250 | $51334 | $61457 |
| 276 Balsam Dr | Foley MN | 5/15/2017 | 7/29/2022 | $78553 | $99491 | $0 | $0 | $178044 | $86742 | $50909 | $51207 |
| 430 4th Ave SE | Milaca MN | 5/15/2017 | 8/3/2022 | $37304 | $74449 | $0 | $0 | $111753 | $60435 | $33246 | $35333 |
| 207 9th Ave S | Princeton MN | 5/15/2017 | 9/16/2022 | $44196 | $90116 | $0 | $0 | $134312 | $73944 | $30587 | $43662 |
| 154 13th Ave N | Waite Park MN | 5/15/2017 | 9/19/2022 | $49995 | $106805 | $0 | $0 | $156800 | $96696 | $40200 | $57134 |
| 219 S Oak St | Norwood/Young America MN | 5/15/2017 | 9/30/2022 | $51108 | $108166 | $0 | $0 | $159275 | $82476 | $20725 | $37869 |
| 201 7 1/2 Ave | Arlington MN | 5/15/2017 | 11/21/2022 | $74335 | $80573 | $0 | $0 | $154908 | $69678 | $28091 | $31293 |
| 721 Dewey St | Foley MN | 5/15/2017 | 12/15/2022 | $42955 | $79022 | $0 | $0 | $121976 | $68256 | $28023 | $25371 |

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***TABLE VI – Acquisition of Properties by Program (unaudited)* -** *Summarizes the purchase of property in the most recent three years (i.e., between January 1, 2022 and December 31, 2024):*

Inapplicable as none of the Manager's other programs have acquired properties during the most recent three years.

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**TAX TREATMENT OF COMPANY AND ITS SUBSIDIARIES**

The following is a summary of certain relevant federal income tax considerations resulting from an investment in the Company but does not purport to cover all of the potential tax considerations applicable to any specific purchaser. Prospective investors are urged to consult with and rely upon their own tax advisors for advice on these and other tax matters with specific reference to their own tax situation and potential changes in applicable law discussion is a general summary of certain federal income tax consequences of acquiring, holding and disposing of partnership interests in the Company and is directed to individual investors who are United States citizens or residents and who will hold their interests in the Company as "capital assets" (generally, property held for investment). It is included for general information only and is not intended as a comprehensive analysis of all potential tax considerations inherent in making an investment in the Company. The tax consequences of an investment in the Company are complex and will vary depending upon each investor's individual circumstances, and this discussion does not purport to address federal income tax consequences applicable to all categories of investors, some of whom may be subject to special or other treatment under the tax laws (including, without limitation, insurance companies, qualified pension plans, tax-exempt organizations, financial institutions or broker-dealers, traders in securities that elect to mark to market, Members owning capital stock as part of a "straddle," "hedge" or "conversion transaction," domestic corporations, "S" corporations, REITs or regulated investment companies, trusts and estates, persons who are not citizens or residents of the United States, persons who hold their interests in the Company through a company or other entity that is a pass-through entity for U.S. federal income tax purposes or persons for whom an interest in the Company is not a capital asset or who provide directly or indirectly services to the Company). Further, this discussion does not address all of the foreign, state, local or other tax laws that may be applicable to the Company or its partners.

Prospective investors also should be aware that uncertainty exists concerning various tax aspects of an investment in the Company. This summary is based upon the IRS Code, the Treasury Regulations (the "Treasury Regulations") promulgated thereunder (including temporary and proposed Treasury Regulations), the legislative history of the IRS Code, current administrative interpretations and practices of the Internal Revenue Service ("IRS"), and judicial decisions, all as in effect on the date of this offering circular and all of which are under continuing review by Congress, the courts and the IRS and subject to change or differing interpretations. Any such changes may be applied with retroactive effect. Counsel to the Company has not opined on the federal, state or local income tax matters discussed herein, and no rulings have been requested or received from the IRS or any state or local taxing authority concerning any matters discussed herein. Consequently, no assurance is provided that the tax consequences described herein will continue to be applicable or that the positions taken by the Company in respect of tax matters will not be challenged, disallowed or adjusted by the IRS or any state or local taxing authority.

**Prospective investors are urged to consult with and rely upon their own tax advisors for advice on these and other tax matters with specific reference to their own tax situation and potential changes in applicable law.**

**FOREIGN INVESTORS: NON-U.S. INVESTORS ARE SUBJECT TO UNIQUE AND COMPLEX TAX CONSIDERATIONS. THE COMPANY AND THE MANAGER MAKE NO DECLARATIONS AND OFFER NO ADVICE REGARDING THE TAX IMPLICATIONS TO SUCH FOREIGN INVESTORS, AND SUCH INVESTORS ARE URGED TO SEEK INDEPENDENT ADVICE FROM ITS OWN TAX COUNSEL OR ADVISORS BEFORE MAKING ANY INVESTMENT.**

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**Tax Classification of the Company as a Partnership**

**General**.

The federal income tax consequences to the investors of their investment in the Company will depend upon the classification of the Company as a "Partnership" for federal income tax purposes, rather than as an association taxable as a corporation. For federal income tax purposes, a partnership is not an entity subject to tax, but rather a conduit through which all items of partnership income, gain, loss, deduction and credit are passed through to its partners. Thus, income and deductions resulting from Company operations are allocated to the investors in the Company and are taken into account by such investors on their individual federal income tax returns. In addition, a distribution of money or marketable securities from the Company to a partner generally is not taxable to the partner unless the amount of the distribution exceeds the partner's tax basis in his interest in the Company. In general, an unincorporated entity formed under the laws of a state in the United States with at least two members, such as the Company, will be treated as a partnership for federal income tax purposes provided that (i) it is not a "publicly traded partnership" under Section 7704 of the IRS Code and (ii) does not affirmatively elect to be classified as an association taxable as a corporation under the so-called "check the box" regulations relating to entity classification. The Company is not currently a "publicly traded partnership" within the meaning of Section 7704 of the IRS Code for the reasons discussed below. In addition, the Manager does not intend to affirmatively elect classification of the Company as an association taxable as a corporation. Accordingly, the Manager expects that the Company will be classified as a partnership for federal income tax purposes.

**Publicly Traded Partnership Rules**.

Under Section 7704 of the IRS Code, a partnership that meets the definition of a "publicly traded partnership" may be treated as a corporation depending on the nature of its income. If the Company were so treated as a corporation for federal income tax purposes, the Company would be a separate taxable entity subject to corporate income tax, and distributions from the Company to a partners would be taxable to the partners in the same manner as a distribution from a corporation to a shareholder (i.e., as dividend income to the extent of the current and accumulated earnings and profits of the Company, as a nontaxable reduction of basis to the extent of the partner's adjusted tax basis in his interests in the Company, and thereafter as gain from the sale or exchange of the investors interests in the Company). The effect of classification of the Company as a corporation would be to reduce substantially the after-tax economic return on an investment in the Company.

A partnership will be deemed a publicly traded partnership if (a) interests in such partnership are traded on an established securities market, or (b) interests in such partnership are readily tradable on a secondary market or the substantial equivalent thereof. As discussed in this offering circular, interests in the Company (i) will not be traded on an established securities market; and (ii) will be subject to transfer restrictions set forth in the Operating Agreement, including a right of first refusal on the part of the Manager and other Company Members. Specifically, the Operating Agreement generally prohibits any transfer of a partnership interest without the prior consent of the Manager except in connection with an Exempt Transfer. The Manager will consider prior to consenting to any transfer of an interest in the Company if such transfer would or could reasonably be expected to jeopardize the status of the Company as a partnership for federal income tax purposes.

The remaining discussion assumes that the Company will be treated as a Partnership and not as an association taxable as a corporation for federal income tax purposes.

**Allocation of Partnership Income, Gains, Losses, Deductions and Credits**

Profits and Losses are allocated to the partners under the Operating Agreement. In general, Profits or Losses during any fiscal year will be allocated as of the end of such fiscal year to each partner in accordance with their ownership interests. Certain allocations may be effected to comply with the "qualified income offset" provisions of applicable Treasury Regulations relating to partnership allocations (as referenced below).

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Under Section 704(b) of the IRS Code, a Company's allocations will generally be respected for federal income tax purposes if they have "substantial economic effect" or are otherwise in accordance with the "member's interests in the partnership." The Company will maintain a capital account for each Member in accordance with federal income tax accounting principles as set forth in the Treasury Regulations under Section 704(b), and the Operating Agreement does contain a qualified income offset provision. The Operating Agreement requires liquidating distributions to be made in accordance with the economic intent of the transaction and the allocations of Company income, gain, loss and deduction under the Operating Agreement are designed to be allocated to the members with the economic benefit of such allocations and are in a manner generally in accord with the principles of Treasury Regulations issued under Section 704(b) of the IRS Code relating to the partner's interest in the partnership. As a result, although the Operating Agreement may not follow in all respects applicable guidelines set forth in the Treasury Regulations issued under Section 704(b), the Manager anticipates that the Company's allocations would generally be respected as being in accordance with the Member's interest in the Company. However, if the IRS were to determine that the Company's allocations did not have substantial economic effect or were not otherwise in accordance with the Members' interests in the Company, then the taxable income, gain, loss and deduction of the Company might be reallocated in a manner different from that specified in the Operating Agreement and such reallocation could have an adverse tax and financial effect on Members.

**Limitations on Deduction of Losses**.

The ability of a Member to deduct the Member's share of the Company's losses or deductions during any particular year is subject to numerous limitations, including the basis limitation, the at-risk limitation, the passive activity loss limitation and the limitation on the deduction of investment interest. Each prospective investor should consult with its own tax advisor regarding the application of these rules to it in respect of an investment in the Company.

*Basis Limitation*. Subject to other loss limitation rules, a Member is allowed to deduct its allocable share of the Company's losses (if any) only to the extent of such Member's adjusted tax basis in its interests in the Company at the end of the Company's taxable year in which the losses occur.

*At-Risk Limitation.* In the case of a Member that is an individual, trust, or certain type of corporation, the ability to utilize tax losses allocated to such Member under the Operating Agreement may be limited under the "at-risk" provisions of the IRS Code. For this purpose, a Member who acquires a Company interest pursuant to the Offering generally will have an initial at-risk amount with respect to the Company's activities equal to the amount of cash contributed to the Company in exchange for its interest in the Company. This initial at-risk amount will be increased by the Member's allocable share of the Company's income and gains and decreased by their share of the Company's losses and deductions and the amount of cash distributions made to the Member. Liabilities of the Company, whether recourse or nonrecourse, generally will not increase a Member's amount at-risk with respect to the Company. Any losses or deductions that may not be deducted by reason of the at-risk limitation may be carried forward and deducted in later taxable years to the extent that the Member's at-risk amount is increased in such later years (subject to application of the other loss limitations). Generally, the at-risk limitation is to be applied on an activity-by-activity basis. If the amount for which a Member is considered to be at-risk with respect to the activities of the Company is reduced below zero (*e.g*., by distributions), the Member will be required to recognize gross income to the extent that their at-risk amount is reduced below zero.

*Passive Loss Limitation*. To the extent that the Company is engaged in trade or business activities, such activities will be treated as "passive activities" in respect of any Member to whom Section 469 of the IRS Code applies (individuals, estates, trusts, personal service corporations and, with modifications, certain closely-held C corporations), and, subject to the discussion below regarding portfolio income, the income and losses in respect of those activities will be "passive activity income" and "passive activity losses." Under Section 469 of the IRS Code, a taxpayer's losses and income from all passive activities for a year are aggregated. Losses from one passive activity may be offset against income from other passive activities. However, if a taxpayer has a net loss from all passive activities, such taxpayer generally may not use such net loss to offset other types of income, such as wage and other earned income or portfolio income (*e.g.*, interest, dividends and certain other investment type income). Member income and capital gains from certain types of investments are treated as portfolio income under the passive activity rules and are not considered to be income from a passive activity. Unused passive activity losses may be carried forward and offset against passive activity income in subsequent years. In addition, any unused loss from a particular passive activity may be deducted against other income in any year if the taxpayer's entire interest in the activity is disposed of in a fully taxable transaction.

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*Non-Business Interest Limitation.* Generally, a non-corporate taxpayer may deduct "investment interest" only to the extent of such taxpayer's "net investment income." Investment interest subject to such limitations may be carried forward to later years when the taxpayer has additional net investment income. Investment interest is interest paid on debt incurred or continued to acquire or carry property held for investment. Net investment income generally includes gross income and gains from property held for investment reduced by any expenses directly connected with the production of such income and gains. To the extent that interest is attributable to a passive activity, it is treated as a passive activity deduction and is subject to limitation under the passive activity rules and not under the investment interest limitation rules.

*Limitation on Deductibility of Capital Losses.* The excess of capital losses over capital gains may be offset against ordinary income of a non-corporate taxpayer, subject to an annual deduction limitation of $3,000. A non-corporate taxpayer may carry excess capital losses forward indefinitely.

**Taxation of Undistributed Company Income (Individual Investors)**

Under the laws pertaining to federal income taxation of limited liability companies that are treated as partnerships, no federal income tax is paid by the Company as an entity. Each individual Member reports on his federal income tax return his distributive share of Company income, gains, losses, deductions and credits, whether or not any actual distribution is made to such member during a taxable year. Each individual Member may deduct his distributive share of Company losses, if any, to the extent of the tax basis of his Units at the end of the Company year in which the losses occurred. The characterization of an item of profit or loss will usually be the same for the member as it was for the Company. Since individual Members will be required to include Company income in their personal income without regard to whether there are distributions of Company income, such investors will become liable for federal and state income taxes on Company income even though they have received no cash distributions from the Company with which to pay such taxes.

**Tax Returns**

Annually, the Company will provide the Members sufficient information from the Company's informational tax return for such persons to prepare their individual federal, state and local tax returns. The Company's informational tax returns will be prepared by a tax professional selected by the Manager.

**ERISA CONSIDERATIONS**

Each respective member that is an employee benefit plan or trust (an "ERISA Plan") within the meaning of, and subject to, the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"), or an individual retirement account ("IRA") or Keogh Plan subject to the Internal Revenue Code, should consider the matters described below in determining whether to invest in the Company.

In addition, ERISA Plan fiduciaries must give appropriate consideration to, among other things, the role that an investment in the Company plays in such ERISA Plan's portfolio, taking into consideration (i) whether the investment is reasonably designed to further the ERISA Plan's purposes, (ii) an examination of the risk and return factors, (iii) the portfolio's composition with regard to diversification, (iv) the liquidity and current return of the total portfolio relative to the ERISA Plan's objectives and (v) the limited right of members to withdraw all or any part of their capital accounts or to transfer their interests in the Company.

If the assets of the Company were regarded as "plan assets" of an ERISA Plan, an IRA, or a Keogh Plan, our Manager of the Company would be a "fiduciary" (as defined in ERISA) with respect to such plans and would be subject to the obligations and liabilities imposed on fiduciaries by ERISA. Moreover, other various requirements of ERISA would also be imposed on the Company. In particular, any rule restricting transactions with "parties in interest" and any rule prohibiting transactions involving conflicts of interest on the part of fiduciaries would be imposed on the Company which may result in a violation of ERISA unless the Company obtained an appropriate exemption from the Department of Labor allowing the Company to conduct its operations as described herein.

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Regulations adopted by the Department of Labor (the "Plan Regulations") provides that when a Plan invests in another entity, the Plan's assets include both the equity interest and an undivided interest in each of the underlying assets of the entity, unless it is established that, among other exceptions, the equity participation in the entity by "benefit plan investors" is not "significant." The Pension Protection Act of 2006 amended the definition of "benefit plan investors" to include only plans and plan asset entities (i.e., entities that are themselves deemed to hold plan assets by virtue of investments in them by plans) that are subject to part 4 of Title I of ERISA or section 4975 of the Internal Revenue Code. This new definition excludes governmental, church, and foreign benefit plans from consideration as benefit plan investors.

Under the Plan Regulations, participation by benefit plan investors is "significant" on any date if, immediately after the last acquisition, 25% or more of the value of any class of equity interests in the entity is held by benefit plan investors. The Company intends to limit the participation in the Company by benefit plan investors to the extent necessary so that participation by benefit plan investors will not be "significant" within the meaning of the Plan Regulations. Therefore, it is not expected that the Company assets will constitute "plan assets" of plans that acquire interests.

It is the current intent of the Company to limit the aggregate investment by benefit plan investors to less than 25% of the value of the members' membership interests so that equity participation of benefit plan investors will not be considered "significant." The Company reserves the right, however, to waive the 25% limitation.

ACCEPTANCE OF SUBSCRIPTIONS ON BEHALF OF INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER EMPLOYEE BENEFIT PLANS IS IN NO RESPECT A REPRESENTATION BY OUR COMPANY OR ITS OFFICERS, DIRECTORS, OR ANY OTHER PARTY THAT THIS INVESTMENT MEETS ALL RELEVANT LEGAL REQUIREMENTS WITH RESPECT TO INVESTMENTS BY ANY PARTICULAR PLAN. THE PERSON WITH INVESTMENT DISCRETION SHOULD CONSULT WITH HIS OR HER ATTORNEY AND FINANCIAL ADVISERS AS TO THE PROPRIETY OF SUCH AN INVESTMENT IN LIGHT OF THE CIRCUMSTANCES OF THAT PARTICULAR PLAN AND CURRENT TAX LAW.

**INTERESTS OF NAMED EXPERTS AND COUNSEL**

No expert or counsel named in this Offering as having prepared or certified any part of this Offering or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of the Investor Interests was employed on a contingency basis, or had, or is to receive, in connection with the Offering, a substantial interest, direct or indirect, in the registrant or any of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.

Our financial statements included in this offering circular have been audited by Boladale Lawal & Co, as stated in its report appearing herein. Such financial statements have been so included in reliance upon the report of such firm given upon its authority as an expert in accounting and auditing.

Dodson Robinette PLLC is providing legal services relating to this Form 1-A.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC an offering statement on Form 1-A under the Securities Act with respect to the interests offered by this offering circular. This offering circular does not contain all of the information included in the offering statement, portions of which are omitted as permitted by the rules and regulations of the SEC. For further information pertaining to us and the interests to be sold in this offering, you should refer to the offering statement and its exhibits. Whenever we make reference in this offering circular to any of our contracts, agreements or other documents, the references are not necessarily complete, and you should refer to the exhibits attached to the offering statement for copies of the actual contract, agreement or other document filed as an exhibit to the offering statement or such other document, each such statement being qualified in all respects by such reference. We are and will be subject to the informational requirements of Tier 2 of Regulation A and will be required to file annual reports, semi-annual reports, current reports and other information with the SEC. We make these documents publicly available, free of charge, on our website as soon as reasonably practicable after filing such documents with the SEC.

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You can read the offering statement and our future filings with the SEC over the Internet at the SEC's website at www.sec.gov. You may also read and copy any document we file with the SEC at its public reference facility at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may also obtain copies of the documents at prescribed rates by writing to the Public Reference Section of the SEC. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference facilities.

Our Manager will answer inquiries from potential investors concerning the interests, the Company, our Manager and other matters relating to the offer and sale of the interests under this offering circular. We will afford the potential investors the opportunity to obtain any additional information to the extent we possess such information or can acquire such information without unreasonable effort or expense that is necessary to verify the information in this offering circular.

Requests and inquiries regarding this offering circular should be directed to:

**Gratus Capital Properties Fund III, LLC**

**Attn:** GCPF Management LLC

718 Washington Ave N,

Suite 400

Minneapolis, MN 55401

Office: (651) 999-5344

Email: hello@gratusfunds.com

We will provide requested information to the extent that we possess such information or can acquire it without unreasonable effort or expense.

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**Gratus Capital Properties Fund III, LLC & SUBSIDIARIES**

*(A Delaware Limited Liability Corporation)*

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024, AND 2023

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Gratus Capital Properties Fund III, LLC & SUBSIDIARIES

 *(A Delaware Limited Liability Corporation)*

**TABLE OF CONTENTS**

December 31, 2024, and 2023

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|:---|:---|
|  | **Page** |
| [Report Of Independent Register Public Accounting Firm (6993)](#re) | F-2 |
| [Consolidated Statements of Financial Position](#bs) | F-3 |
| [Consolidated Statements of Operations](#so) | F-4 |
| [Consolidated Statements of Members' Equity](#sc) | F-5 |
| [Consolidated Statements of Cash Flows](#cf) | F-6 |
| [Consolidated Notes to the Financial Statements](#nt) | F-7-F19 |

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![](gratus_1aimg43.jpg)

**Report of the Independent Registered Public Accounting Firm**

**To the shareholders and the board of directors of**

**Gratus Capital Properties Fund III, LLC.**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Gratus Capital Properties Fund III, LLC as of December 31, 2024, and 2023, the related consolidated statements of operations, stockholders' equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024, and 2023, and the results of its operations and its cash flows for each of the two years ended December 31, 2024, and 2023, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. Communication of critical audit matters does not alter in any way our opinion on the financial statements taken as a whole and we are not, by communicating the critical audit matters, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate. As of December 31, 2024, there are no critical audit matters to communicate.

/S/ Boladale Lawal

**Boladale Lawal & CO (PCAOB ID 6993)**

We have served as the Company's auditor since 2024

Lagos, Nigeria

June 18, 2025

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**GRATUS CAPITAL PROPERTIES FUND III, LLC**

**BALANCE SHEET**

**As of December 31, 2024, and 2023**

---

| | | |
|:---|:---|:---|
| **ASSETS** | **December 31,**<br> **2024** | **December 31,**<br> **2023** |
| **Investment in real estate partnership** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Partnership equity investments | $3045160 | $2989530 |
| &nbsp;&nbsp;&nbsp;&nbsp; Buildings | 30721217 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Land & Leasehold Improvements | 3585347 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Personal Property | 6781790 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated Depreciation | (2190818) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Land | 2501513 | 2497511 |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction in process (including capitalized interest) of $0 in 2024 and $455,975 in 2023 | - | 38048702 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total real estate partnership investments** | $**44444209** | $**43535743** |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 1265231 | 162297 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts Receivable (net) | 40754 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fixed Assets (net) | 1400 | 1400 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expense | 106599 | 5046 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total Assets** | $**45858193** | $**43704486** |
| **LIABILITIES AND MEMBERS' CAPITAL** |  |  |
| **Current Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Account payables | 75585 | 29708 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 580308 | 1790253 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 159550 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage interest payable | 54564 | 56288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Member funds held in escrow | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payables |  | 497157 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retainage payable |  | 979456 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 880007 | 3362862 |
| **Long-term liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Note payables Gratus Capital LLC |  | 3246273 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgages payables | 34075104 | 26499327 |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt issuance cost | (280093) | (280093) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated amortization on debt issuance cost | 162705 | 96553 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total long-term liabilities | 33957716 | 29562060 |
| **Total Liabilities** | $**34837723** | $**32924922** |
| Minority interests in controlled subsidiaries | 2576192 | 4008389 |
| Members' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A Units | $10751616 | $6080936 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B Units | $2352410 | $2100140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C Units | $1000 | $1000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Syndication Cost of Capital | (341033) | $(252930) |
| &nbsp;&nbsp;&nbsp;&nbsp; Retained earnings (deficit) | $(4319715) | $(1157971) |
| Total Member equity | $8444278 | $6771175 |
| Total Liabilities and Member Equity | $**45858193** | $**43704486** |

---

**The accompanying notes are an integral part of these consolidated audited financial statements**

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**GRATUS CAPITAL PROPERTIES FUND III, LLC**

**Statement of Operations**

**For the year ended December 31, 2024, and 2023**

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| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2023** |
| **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gross market rent | $3598435 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp; Vacancy | (1909012) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) to market | (11597) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other rental revenue | 272634 | - |
| Total Gross Potential Rent & Fees | 1950460 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Bad debt write-offs | (17322) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Rental Incentives | (258980) | - |
| Total Net Collected Rent | 1674158 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity in losses from unconsolidated partnership investments | (550949) | (340561) |
| Total Operating Revenue (Loss), net | $1123209 | $(340561) |
| **Operating Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset management fees | 97693 | 75438 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 292679 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payroll | 245058 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 264460 | 79718 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property insurance | 62095 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Property taxes | 28991 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repairs and maintenance | 176208 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Utilities | 126692 | - |
| Total Operating Expenses | $1293877 | $155221 |
| **Non-Operating Income / (Expense)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Admin and compliance | 52119 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization expense | 145816 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation expense | 2190818 | 700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 1556278 | 384009 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest (income) | 1631 | (360) |
| &nbsp;&nbsp;&nbsp;&nbsp; State franchise tax | 600 | 600 |
| Net Loss before Income Taxes | $(4117929) | $(880731) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax benefit |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Share of loss from partnership equity investment | (1432197) | - |
| **Net Income (loss)** | $**(2685732)** | $**(880731)** |

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**The accompanying notes are an integral part of these consolidated audited financial statements**

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**GRATUS CAPITAL PROPERTIES FUND III, LLC**

**STATEMENTS OF MEMBERS' EQUITY**

**For the Years Ended December 31, 2024, and 2023**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Member Units** | **Member Units** | **Member Units** | **Member Units** | **Member Units** | **Member Units** | | |
|  | **Class A** | **Class A** | **Class B** | **Class B** | **Class C** | **Class C** | | |
|  | **Units** | **Amount** | **Units** | **Amount** | **Units** | **Amount** | <br>**Members'**<br>**Deficit** | **Total**<br>**Members'**<br>**Deficit** |
| **Balance, January 1, 2023** | **469017** | $**4539793** | **144836** | $**1375303** | **100** | **1000** | $**(277240)** | $**5834786** |
| &nbsp;&nbsp;&nbsp;&nbsp; Member unit issued for cash | 136763 | 1390768 | 66690 | 679282 |  |  |  | 2070050 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost incurred to raise capital |  |  |  |  |  |  |  | (252930) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net loss for year ended December 31, 2023 | - | - | - | - | - | - | (880731) | (880731) |
| **Balance, December 31, 2023** | **605780** | **6080936** | **211526** | **2100140** | **100** | **1000** | **(1157971)** | **6771175** |
| &nbsp;&nbsp;&nbsp;&nbsp; Member Units issued for cash | 426644 | 4670681 | 19890 | 252270 |  |  |  | 4922951 |
| &nbsp;&nbsp;&nbsp;&nbsp; Costs incurred to raise capital |  |  |  |  |  |  |  | (88104) |
| &nbsp;&nbsp;&nbsp;&nbsp; Member Distributions |  |  |  |  |  |  | (476012) | (476012) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net loss for year ended December 31, 2024 |  |  |  |  |  |  | (2685732) | (2685732) |
| **Balance, December 31, 2024** | **1032424** | $**10751617** | **231416** | $**2352410** | **100** | $**1000** | $**(4319715)** | $**8444278** |

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**The accompanying notes are an integral part of these consolidated audited financial statements**

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**GRATUS CAPITAL PROPERTIES FUND III, LLC**

**STATEMENTS OF CASH FLOWS**

**For the Years Ended December 31, 2024, and 2023**

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| **Cash Flows from Operating Activities** |  |  |
| Net Loss | $(2685732) | $(880731) |
| Adjustment to reconcile net loss from operations: |  |  |
| Amortization | 145816 | 79664 |
| Depreciation | 2190818 | 700 |
| Real estate partnership investment loss | 550949 | 340561 |
| Changes in Operating Assets and Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expense | (101553) | (3737) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (40754) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Account Payables | 45877 | 18845 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | (1209945) | 637914 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payables | (497157) | 384009 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 159550 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage interest payables | (1724) | 56288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retainage payables | (979456) | 804130 |
| &nbsp;&nbsp;&nbsp;&nbsp; Member fund held in escrow | - | 10000 |
| **Net Cash Used in Operating Activities** | $**(2423311)** | **1447643** |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment in land | (4002) | (20389) |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in buildings | (30721217) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in Land & Leasehold Improvements | (3585347) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in Personal Property | (6805835) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment in construction in process | 38048702 | (30958369) |
| &nbsp;&nbsp;&nbsp;&nbsp; Syndication Cost Additions | (88104) | (57000) |
| **Net Cash Provided by Investing Activities** | **(3155804)** | **(31035758)** |
| **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt issuance costs, net of amortization |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage payables | 7575777 | 26499327 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of member equity | 4922951 | 2070050 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of member equity to minority interest | (606579) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions to members | (476000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in minority interest | (1487827) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance (payment) of note payable related parties | (3246273) | (1749500) |
| **Net Cash Provided by Financing Activities** | **6682049** | **26819877** |
| **Net Increase (Decrease) in Cash** | **1102934** | **(2768238)** |
| **Cash at Beginning of Period** | **162297** | **2930535** |
| **Cash at End of Period** | $**1265231** | $**162297** |

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**The accompanying notes are an integral part of these consolidated audited financial statements**

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**GRATUS CAPITAL PROPERTIES FUND III, LLC & SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of December 31, 2024, and 2023** 

**NOTE 1 – NATURE OF OPERATIONS**

Gratus Capital Properties Fund III, LLC, & Subsidiaries (The Company), a manager-managed Delaware limited liability company, was formed on November 10, 2020. Through subsidiary single purpose entities, the Company's business model is to acquire multifamily and commercial properties, new developmental property and single-family assets throughout the United States, for the purpose of rehabilitation, development, operation and resale. In addition, the Company may from time to time purchase other cash flowing real estate related assets, such as land, mixed-use, hotels, multifamily, real estate backed investments and commercial properties in urban and other neighborhoods throughout the United States. The Company may also enter into joint venture investments in commercial real estate, lend senior and subordinated debt on properties in the same areas and invest in preferred equity positions in real estate owning entities. The Company believes that by lending to developers in key areas where the Company does not have a physical presence will provide diversified geographic asset investments, reducing the risks of providing returns on the real estate investment portfolio. The Company is managed by GCPF Management, LLC.

Since November 10, 2020 (inception), the Company has relied upon related parties and its Members for funding cash flow to pay for operating expenses and other costs. (See discussions below). For the period from inception to December 31, 2024, the Company has generated losses aggregating $3,566,463. These matters do raise concern about the Company's ability to operate at a profit. That notwithstanding, through December 31, 2024, the Company raised capital in the amount of $13,104,027 See also Note 8 Subsequent Events. Further, during the next twelve-month period, the Company intends to fund its operations with funding from its campaign to sell Membership Units ((see Note 15). The additional capital is to enable the Company to fund real estate acquisitions and continuing operations. These financial statements and related notes thereto do not include any adjustments that might result from operating and cash flow uncertainties.

The Company is considered an emerging growth company under Section 101(a) of the Jumpstart Business Act as it is an issuer that had total annual gross revenues of less than $1 billion during its most recently completed fiscal period. Because the Company is an emerging growth company, the Company has an exemption from Section 404(b) of Sarbanes-Oxley Act of 2002 and Section 14A(a) and (b) of the Securities Exchange Act of 1934. Under Section 404(b), the Company is exempt from the internal control assessment required by subsection (a) that requires each independent auditor that prepares or issues the audit report for the issuer shall attest to, and report on, the assessment made by the management of the issuer.

Through an Offering Circular Form 1A, filed during the year ended 2021, the Company offered up to seven million five hundred thousand (7,500,000) Class A, Class B and Class C Membership Interests ("Interests" or "Class A and Class B Membership Interests") at $10.00 or $10.6383 per Unit depending on the intermediaries through which the investment is made (the "Offering"). During the twelve-month period ended December 31, 2024, the Company raised $4,922,951 funds net of syndication costs of $88,104. Funds were made available to the Company upon the Company raising a minimum of $1,000,000 ("Minimum Offering"). Funds are being used for acquiring real estate assets throughout the United States as well as for working capital. The Company intends to invest capital from the proceeds of this Offering over a period time; operate, refinance and reinvest and make distributions to the investors.

Commissions will be paid for the sale of the Interests offered by the Company of from 1% to 7%. See the Offering Circular attached for a more comprehensive discussion of management, risk factors, broker dealer fees and other relevant data.

The Company manager is Gratus Capital Properties Management, LLC, a Delaware limited liability company. An affiliate of the Manager (Affiliate) owns 100% of the authorized, issued and outstanding Class C Membership Interests.

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The financial statements included forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in the Offering Statement on Form 1A, filed with the Securities and Exchange Commission ("SEC"). Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. The Company does not undertake an obligation to publicly update or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Management intends to finance the operating costs over the next 12 months with existing cash in hand, loan from related party, issuance/sales of Member Units, and external debt financing. Additionally, management has secured a $50 million line of credit from our fund provider, accompanied by a standstill agreement effective until July 2025. This arrangement ensures ample liquidity and operational flexibility, allowing us to continue our business activities without interruption. Furthermore, we have a subsisting agreement with our fund provider that the fund will be used for a minimum period of 7 years before it can be withdrawn or converted to the equity at their discretion.

Also, management investment in new development properties has transitioned to a significant milestone with all construction completed. These properties are now in various stages of stabilization. We anticipate that they will begin generating increasing cash flow and income in the upcoming months, which will substantially improve our financial position and support ongoing operations.

Management has further secured $2,110,000 in commitments from investors. This funding is poised to provide more than adequate liquidity for our operations over the next 12 months. Immediately following the filing, we will resume our active fundraising campaign, which is expected to further strengthen our financial position and support our strategic initiatives.

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**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Accounting*

The accompanying Consolidated Statements of Financial Position and footnotes of Gratus Capital Properties Fund III, LLC have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP'). The Company adopted the calendar year for reporting the financial statements.

*Principles of Consolidation*

The Consolidated Financial Statements include the accounts of the Company and its controlled subsidiaries which are primarily majority owned. Any noncontrolling interest in the equity of a partnership is reported as a component of real estate partnership equity. Net income (loss) for operating partnership investments is included in the Statement of Operations as "Income (loss) from partnerships.

*Use of Estimates*

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the footnotes thereto. Actual results could differ from those estimates. It is reasonably possible that changes in estimates will occur in the near term. All amounts are rounded to the nearest whole dollar upon presentation so certain sums or differences may reflect a rounding difference in some instances.

*Risks and Uncertainties*

The Company has a limited operating history. The Company's business and operations are sensitive to general business and economic conditions in the United States. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions may include recession, downturn or otherwise, local competition or changes in underlying real estate values. These adverse conditions could affect the Company's financial condition and the results of its operations.

*Concentration of Credit Risk*

The Company maintains its cash with a major financial institution located in the United States of America, which it believes to be creditworthy. The Federal Deposit Insurance Corporation insures balances up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits.

*Construction in Progress:*

The Company consolidates in the financial statements, two majority owned partnership investments (Investees) that are in the process of developing and constructing multifamily residential rental units. The property manager of the Investees is a related party of the sponsor of the partnerships and the general contractor which has been hired to perform the development and horizontal and vertical construction of the buildings. The sponsor, the property manager and the general contractor are unrelated entities of the Company. The property manager of the Investees executes contracts with its related party general contractor construction company. The property manager of the Investees has represented to the Company that all construction contracts with the related parties, are (a) entered into on an arm's length basis (b) requests competitive bids of the subcontractors, (c) charges market rate profit and overhead percentages and that the general contractor does not receive any other compensation from any of the related parties. .

The general contractor uses cost plus contracts with the Investees which includes general contractor compensation from 4.4% to 5.0% of material, labor and overhead. Overhead includes insurance, sales and other taxes, administrative and other costs. The property manager advised the Company that the general contractor does not pay any expenses or fees to related parties of the general contractor. Accordingly, all direct and indirect and general and administrative costs paid by the general contractor are charged to the Investee under the cost plus contract.

The general contractor accounts for each contract on the standard percentage of completion method of accounting. Costs incurred while under construction are capitalized as construction in progress in the financial statements. Capitalized construction in progress costs include real estate taxes, insurance, other minor soft costs and monthly interest paid and or accrued on construction loans. The lender calculates the daily interest cost of the construction loan based upon the construction loan proceeds disbursed to the general contractor.

Once a building is 100% completed, it is depreciated over a forty-year life. Land improvements are depreciated over a fifteen year period. Tangible personal property is depreciated over from five to seven years.

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*Cash and Cash Equivalents*

The Company considers short-term, highly liquid investment with original maturities of three months or less at the time of purchase to be cash equivalents. Cash consists of funds held in the Company's checking account. As of December 31, 2024, and 2023, the Company had $1,265,231 and $162, 2967, respectively of cash on hand.

*Property, Equipment and Depreciation*

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation of property and equipment is charged to the statement of operations using the straight-line method over the estimated useful lives of the respective assets as follows:

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| | |
|:---|:---|
| Buildings | 27.5 years |
| Leasehold Improvements | Shorter of the estimated lease term or useful |
| Furniture and Fixtures | 7 years |
| Machinery and equipment | 3 to 5 years |
| Technology | 3 years |
| Vehicles | 5 years |

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The Company evaluates property and equipment for impairment on an ongoing basis to determine whether events and circumstances warrant revision of the estimated benefit period. As of December 31, 2024, management believes that no impairment of the property and equipment exists.

*Fair Value Measurements*

Generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and such principles also establish a fair value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority):

· Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

· Level 2 – Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.

· Level 3 – Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable.

*Syndication Costs* 

The Company continues to work with investment advisors and campaigns to raise capital. Legal and other directly related syndication costs incurred during the two years ended 2024 and 2023 was $341,033 and $252,930, respectively. Syndication costs are accounted for as a reduction of capital raised from the sale of Member Units and has been written off during the twelve months ended December 31, 2024.

*Revenue Recognition*

The Company accounts for leases in accordance with ASC 842, *Leases*. The Company determines at the inception of a contract whether it contains a lease and whether that lease should be classified as an operating or finance lease. A contract is considered to contain a lease if it conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration.

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At the lease commencement date, the Company recognizes a right-of-use ("ROU") asset and a corresponding lease liability for all leases with a term greater than 12 months. Lease liabilities are measured at the present value of future minimum lease payments, discounted using the Company's incremental borrowing rate, which is determined based on the information available at lease commencement. ROU assets are initially measured at the amount of the lease liability, adjusted for any prepaid lease payments, lease incentives received, or initial direct costs incurred.

Operating lease expense is recognized on a straight-line basis over the lease term and is included in ["cost of revenues," "selling, general and administrative expense," or appropriate line item]. Finance lease costs are split between interest expense and amortization of the ROU asset.

The Company has elected the practical expedient to not recognize lease assets and liabilities for leases with a term of 12 months or less. The Company also elected the package of practical expedients permitted under the transition guidance within ASC 842, which, among other things, allows entities not to reassess prior conclusions about lease identification, classification, and initial direct costs for leases that commenced before the effective date of ASC 842.

Certain lease agreements contain options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the option will be exercised. The Company's lease agreements generally do not contain significant residual value guarantees or restrictive covenants.

The Company adopted ASC 842 on January 1, 2024, using the modified retrospective approach. As permitted under the standard, prior period amounts have not been restated and continue to be reported in accordance with ASC 840.

*Organization Expenses*

The Company has incurred $7,726 of organization expenses all of which have been expensed as incurred in 2023.

*Income Taxes -* 

The Company and its subsidiaries are taxed as partnerships for US federal income tax purposes. Accordingly, all consolidated items of income, deductions, gains or losses and credits are allocated to members in accordance with the operating agreement and subchapter K of the Internal Revenue Code. Since the Company is not liable for tax itself, no material federal tax provision has been recorded.

The Company has filed its federal and state income tax returns for the period from inception (November 10, 2020) through December 31, 2024. The positions shown on those tax returns are open for examination for a period of three years. Currently, the Company is not under examination by any taxing jurisdiction and has not been assessed any interest or penalties related to income tax matters. The Company routinely evaluates its tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions.

Member Unit and Equity Based Compensation

Consistent with US GAAP, the Company will record Member Unit-based compensation as a non-cash expense. The Company measures and recognizes compensation expense for all Member unit-based awards, granted to employees and directors based on the estimated fair value of the awards on the date of grant. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying member units, the expected term of the option, the expected volatility of the price of the Company's Member units, risk-free interest rates, and the expected dividend yield of the Company's Member units. The assumptions used to determine the fair value of the awards represent management's best estimates. These estimates involve inherent uncertainties and the application of management's judgment.

The Company amortizes the fair value of each Member unit award over the requisite service period of the awards in accordance with the associated vesting schedule. Stock based compensation is adjusted based upon actual forfeitures.

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Recent Accounting Pronouncements

In June 2018, FASB amended ASU No. 2018-07, Compensation – Stock Compensation, to expand the scope of Topic 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The new standard for nonpublic entities will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, and early application is permitted. We are currently evaluating the effect that the updated standard will have on the financial statements and related disclosures.

In August 2018, amendments to existing accounting guidance were issued through Accounting Standards Update 2018-15 to clarify the accounting for implementation costs for cloud computing arrangements. The amendments specify that existing guidance for capitalizing implementation costs incurred to develop or obtain internal-use software also applies to implementation costs incurred in a hosting arrangement that is a service contract. The guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, and early application is permitted. We are currently evaluating the effect that the updated standard will have on the financial statements and related disclosures.

The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date, including those above, 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 – REAL ESTATE PARTNERSHIP INVESTMENTS** 

During the two years ended December 31, 2024, the Company purchased from an affiliate and invested in the following North Dakota and Minnesota real estate partnership investments:

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| | | | |
|:---|:---|:---|:---|
| **Partnerships, equity basis** | **Ownership**  | **Location**  | **Investment** |
| Enclave OG, LLC | 29.58% | Fargo | $1600669 |
| SOCO Group II, LLC | 34.00% | Grand Forks | 1388861 |
| Compass II, LLC | 12.07% | Moorehead | 600120 |
|  |  |  | $**3589650** |

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| | | | |
|:---|:---|:---|:---|
| **Partnerships, consolidated** | **Ownership**  | **Location**  | **Investment** |
| Compass Apartments I, LLC | 51.00% | Moorehead | $3343500 |
| Current33 Apartments I, LLC | 51.00% | Hastings | 4034111 |
|  |  |  | $**7377611** |

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**Fargo North Dakota:**

On December 20, 2021, an affiliate of the Manager of the Company (Affiliate), paid cash of 34.78% of the capital raised in the partnership and acquired a 29.58% profit and loss interest in a developmental limited liability partnership which is in Fargo, North Dakota (Partnership). The Partnership, through its wholly owned subsidiary, is developing and operating a mixed-use residential building composed of multifamily and condominium units. The Affiliate paid $1,558,378 for this interest. Whereas, the Members of the Partnership have limited liabilities to third parties, each Member is entitled to one (1) vote or a fraction of one (1) vote per one percent (1%) of the Membership interest held by the Member on each matter submitted to a vote at a meeting of Members, except to the extent that the voting rights of the Membership Interest of any class or classes are limited or denied by the Articles of the Operating Agreement or by law.

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The development consists of 2.63 acres and is projected to include 119 multifamily rental units plus 14 for-sale condominiums, totaling 118,038 square feet. The development is expected to cost $35,638,702, with a mortgage of $25,525,135 and to open for occupancy in September of 2023.

The Company accounts for the purchase of its 29.58% interest in Enclave OG, LLC on the equity method of accounting. The management prepared, the unaudited financial highlights of the Statements of Financial Condition as of December 31, 2024 and 2023 and the unaudited financial highlights of the Statements of Operations, and for the years ended December 31, 2024 and 2023, are presented are as follows:

Enclave OG, LLC (WILD OAK)

**Statement of Operations – Highlights**

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Revenues | $2187312 | $197853 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating | 1145034 | 355972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (income) expenses | 2164167 | 291554 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $**(1121889)** | $**(449673)** |

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**Grand Forks, North Dakota**

On October 6, 2021, the Affiliate paid cash of $1,500,000 representing 40.00% of the capital raised in the partnership and acquired a 34% profit and loss interest in a developmental limited liability partnership which is located in Fargo, North Dakota (Partnership). The Partnership, through its wholly owned subsidiary is developing and operating a mixed-use residential building composed of multifamily and condominium units. Whereas, the Members of the Partnership have limited liabilities to third parties, each Member is entitled to one (1) vote or a fraction of one (1) vote per one percent (1%) of the Membership interest held by the Member on each matter submitted to a vote at a meeting of Members, except to the extent that the voting rights of the Membership Interest of any class or classes are limited or denied by the Articles of the Operating Agreement or by law.

The development consists of 4.3 acres and is projected to 21,020 square feet of commercial space and 74 multifamily rental units totaling 105,615 square feet. The development is expected to cost $18,380,234, with a mortgage of $13,785,175. Construction was completed in spring 2023 and the property is over 80% leased as of August 2023.

The Company accounts for the purchase of its 34% interest in Soco Group II, LLC on the equity method of accounting. The management prepared, the unaudited highlights of the Statements of Financial Condition as of December 31, 2024 and 2023 and the unaudited financial highlights of the Statements of Operations, and for the years ended December 31, 2024 and 2023, are presented are as follows:

**Soco Group II, LLC**

**Statement of Operations – Highlights**

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| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Revenues | $1448702 | $557442 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating | 603919 | 346838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (income) expenses | 1347365 | 969961 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $**(502582)** | $(759357) |

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**Moorhead, Minnesota**

On May 3, 2024, the Company purchased its 12.07% equity interest in Enclave Compass II, LC in May 2024, pledging approximately $600,120. The Company contributed $400,000 in June '24 and the remaining $200,120 to Enclave Compass II on about November 27, 2024, paying an additional $6,459 (calculated at 8% non-compounding interest on the $200,120 in uncontributed capital beginning on June 30, 2024) to offset the financial impacts of the late contribution.

The development consists of 2.5 acres and will have 83 apartment units. The building is located directly adjacent to Compass Apartment I. Construction was completed in December 2024.

The Company accounts for the purchase of its 12% interest in Compass II, LLC on the equity method of accounting. The management prepared, the unaudited highlights of the Statements of Financial Condition as of December 31, 2024 and 2023 and the unaudited financial highlights of the Statements of Operations, and for the years ended December 31, 2024 and 2023, are presented are as follows:

**Compass II, LLC**

**Statement of Operations – Highlights**

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| | | |
|:---|:---|:---|
|  | **2024**  | **2023**  |
| Revenues | $10324 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating | 80685 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (income) expenses | 329531 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $**(399892)** |  |

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**Moorhead, Minnesota**

On September 30, 2022, the Company invested in Compass Apartments I, LLC, a Minnesota limited liability company ("Compass Apartments"), which is developing and will operate a multifamily apartment building totaling 93 units in Moorhead, MN. The construction is expected to be completed around January 2024 and was 40% complete as of June 30, 2023. The Company purchased a 51% interest in the Compass Apartments in the amount of $3,096,000.

The Company paid $800,000 in cash and borrowed the remaining $2,296,000 from the Manager under its existing line of credit agreement. Under this line of credit, the Company will pay the Manager (7.89%) simple interest, calculated as the coupon rate on a U.S. 10-year treasury plus five percent (5%). This interest rate will be readjusted semiannually on July 1 and January 1 and is capped at 10%.

**Hasting, Minnesota** 

On October 12, 2022, the Company invested in Current33 Apartments I, LLC, a Minnesota limited liability company ("Current33 Apartments"), which is developing and will operate a multifamily apartment building totaling 106 units in Hastings, MN. The construction is expected to be completed around January 2024 and construction was 55% complete as of June 30, 2023. The Company purchased a 51% interest in the Current33 Apartments in the amount of $3,735,600.

The Company borrowed $3,735,600 from the Manager under its line of credit agreement, which it amended and restated to allow the Company to borrow up to $50,000,000. Under this line of credit, the Company will pay the Manager (7.89%) simple interest, calculated as the coupon rate on a U.S. 10year treasury plus five percent (5%). This interest rate will be readjusted semiannually on July 1 and January 1 and is capped at 10%.

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**NOTE 4 – CONSTRUCTION MORTGAGE NOTE PAYABLES**

Construction mortgage notes payable applicable to the controlled partnership investments as of December 31, 2024, and 2023 are as follows**:**

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| | | |
|:---|:---|:---|
|  | **2024**  | **2023** |
| **Current33 Apartments I, LLC** **(a)** | $**18631938** | $**15767062** |
| **Compass Apartments, LLC** **(b)** | **15443166** | **10732265** |
| **Total** | $**34075104** | $**26499327** |

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|:---|:---|
| a. | Current33 Apartments I, LLC, a majority-owned subsidiary, has a construction mortgage note with a financial institution. The loan proceeds are utilized to construct the apartment building in Hastings, MN. The principal amount of the mortgage is $18,631,938 as of December 31, 2024, initiated on October 12, 2022. The construction mortgage note matures on October 15, 2027. The loan bears interest at an annual rate of 4.50% with interest-only payments due through November 15, 2024. Thereafter, the mortgage note payments are $95,363.84 per month. |
|  | The real estate is pledged as collateral for the construction mortgage note payable. Certain of the members of the general partner are guarantors of the construction mortgage payable, based upon the pro rata basis of the Company's prorate share of the Company's ownership of the investee. The amortization period for this loan is 30 years. Prior to the disbursement of any loan proceeds, these guarantees were executed in favor of the lender under the conditions set forth in the guarantees provided. |
| b. | Compass Apartments I, LLC, a majority-held subsidiary, has a construction mortgage with a financial institution in Fargo, ND, for the construction of a 93-unit apartment building in Moorhead, MN. The principal amount of the mortgage is $15,443,166 as of December 31, 2024, initiated on September 30, 2022, and maturing on October 15, 2027. The loan carries an interest rate of 4.50% fixed, with interest-only payments until November 15, 2024, followed by principal and interest (P&I) payments of $78,978.44. Interest is calculated on a 365/360 basis. |
|  | The real estate is pledged as collateral for the construction mortgage note payable. Certain of the members of the general partner are guarantors of the construction mortgage payable, based upon the pro rata basis of the Company's prorate share of the Company's ownership of the investee. The amortization period for this loan is 30 years. Prior to the disbursement of any loan proceeds, these guarantees were executed in favor of the lender under the conditions set forth in the guarantees provided. |
|  | The two construction mortgage notes payable are to be converted into permanent mortgages upon the maturity of the construction notes payable. |

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**NOTE 5 - INCOME TAX PROVISION**

As an entity treated as a partnership for US federal income tax purposes, all items of income, deduction, gain, loss and credit flows through the Company and is taxable to the members of the Company. No material federal or state income tax provision exists for the Company.

**NOTE 6 – MEMBERS' CAPITAL**

The Operating Agreement dated November 10, 2020, provides for three classes of Members, Class A, Class B and Class C Member interests. The Company has authorized a maximum of seven million five hundred thousand (7,500,000) Units in each of Class A and Class B, however the maximum Capital Contribution, regardless of the number of Units issued in Class A and Class B, shall not exceed seventy-five million dollars ($75,000,000) in the aggregate. Subject to the Company accepting less, the minimum investment amount for Class A and Class B Units is $10,000. The Company must sell a combined minimum of one million dollars ($1,000,000) of Class A and Class B Units prior to breaking impounds where investor funds may be used to acquire assets. Purchases by the Manager or Affiliates of the Manager will not count towards this total. The Class A and Class B Units have an 80% voting interest in the Company.

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The Managing Member may make capital calls on the Class A and Class B Members from time to time to achieve Company objectives and policies. For additional information see Operating Agreement included herein.

The one hundred (100) Class C Membership Units, representing a 20% voting interest in the Company, is 100% owned by an affiliate of the managing member and was issued as founder's interests, at formation. The affiliate of the managing member paid $1,000 for the Class C Membership Unit.

The percentage of total Capital Contributions within each respective Class shall represent the Class A and Class B "Capital Contribution Percentage Share." For example, if Class A contributions were $350,000 out of $1,000,000 raised in the Offering, then the Class A Capital Contribution Share would be 35%. Through the Offering Circular, the Company is authorized to offer one thousand (1,000) Class A and Class B membership interests at $10 or $10.6383 per Member Interest depending on the intermediaries through which the investment is made. Purchasers shall, upon acceptance by the Manager of their Subscriptions, become Class A and Class B Members in the Company. Funds will be made immediately available to the Company once the Company raises a minimum of $1,000,000, in a designated bank account.

The percentage interests of the Members will be calculated in relation to the other Members in their Member class or in relation to the total Member interests. Class A and Class B Members will collectively hold 80% of the voting interests which are proportionate to such Member Capital Contributions relative to one another. Class C Members will hold 20% of the voting interests in the Company.

Class A+ Member

Investors who purchase at least $500,000 in Class A Units, who purchase Units through an RIA, who purchase units through a registered broker-dealer, or who are current employees of the Manager or any Development Partner with whom the Company does business are also eligible to take advantage of the Company's Side Letter Agreement. Under this Side Letter Agreement, eligible investors (referred to as Class A+ Investors) are assigned cashflows from the Company's Class C Members (who are also members of the Manager) such that the Class A+ investors will receive eighty-five percent (85%) of eligible Distributable Cash instead of eighty percent (80%). Any disputes under the Side Letter Agreement are subject to the same dispute resolution process as disputes under the Company's Operating Agreement. While this Agreement shall be open to all Class A Members during the duration of this offering, the Side Letter Agreement shall terminate for with regards to any Class A Unit assigned, sold, or transferred (including involuntary transfers by operation of law) from the Class A+ Investors to any other Person, unless the Manager consents to the transfer of this Agreement in its sole and unlimited discretion.

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Class A Members:

Class A Members are reserved for individuals (i) who agree to purchase at least One Hundred Thousand Dollars ($100,000) worth of Class A Units, (ii) whose investment is the result of a referral to the Company by a Registered Investment Advisor, (iii) who purchase their Units through licensed broker-dealer, or (iv) who have invested previously in Affiliates of the Manager such previous investors to be admitted as Class A Members in the sole discretion of the Manager. Class A Members are entitled to first receive eighty percent (80%) of Distributable Cash from operations and 100% of Distributable Cash from Capital Transactions until they have received a return of their Unreturned Capital Contributions. The minimum investment is ten thousand dollars ($10,000).

Class B Member:

Class B Members are to invest $10,000 per Unit. Class B Members will ratably receive seventy percent (70%) of Distributable Cash from operations and upon a distribution of cash from a Capital Transaction, after the Class A Member receives the above cash, the Class B Members receive seventy percent (70%) of the cash distribution until they have received a return of their Unreturned Capital Contributions.

Class B Members who are admitted and later purchase additional Units or otherwise make Additional Capital Contributions which result in their total Unreturned Capital Contributions of $100,000 or higher will have their Class B Units converted to Class A Units as of the date the Capital Contribution bringing their total Capital Contributions above $100,000 is received in the Company's account and determined to be in good order.

Class C Member:

The Class C Member Interests are owned by an affiliate of the Manager and are entitled to receive all (100%) of the remaining Distributable Cash from both operations and capital transactions.

At Management's discretion, the Company intends on making cash distributions from operations and capital transactions as discussed above. Capital transaction distributions includes dispositions from refinancing or the sales of property.

For a more comprehensive discussion about the Operating Agreement and membership interests, see the Offering Circular.

**NOTE 7 – RELATED PARTY TRANSACTIONS**

Note payable, related party

On January 1, 2022, the Company entered into a Promissory Note (the "Note") with an affiliate of the Managing Member of the Company which provides the Company with up to $5,000,000 of funds. On October 4, 2022, the Note was amended to provide a line of credit up to $50,000,000 of funds. The Note is an uncollateralized revolving credit facility which matures October 4, 2032. Interest due thereon, accrues at the Alternated Base Rate of interest per annum, not to exceed 10% of funds advanced under the Note. The primary purpose of the note payable is to fund operating expenses and other costs. As of December 31, 2024, and 2023, funds provided to the Company and due to an affiliate of the Manager of the Company, are $0 and $3,246,273, respectively. Interest payable on the note was $0 and $497,157, respectively. As of December 31, 2022, the Company entered into a Standstill Agreement with regards to this Promissory Note whereby the lender (an affiliate of the Manager) agrees not to demand any payment or take any legal action to recover money owned under the Note until June 30, 2024 (including both monies currently borrowed and any new money which may be borrowed in the future).

Management Agreement

As discussed above, the Company is managed by GCPF Management, LLC (Manager). The Company will reimburse Manager for the Manager's out-of-pocket expenses related to the initial startup costs including earnest money deposits, due diligence costs, closing costs, loan/lender application fees, appraisals, engineering and environmental reposts, property management fees and or legal fees. Such costs may be paid as an expense of the Company prior to determining Distributable Cash. The Company will pay the Manager, interest of 10% per annum from the date that a disbursement is made to the date of repayment.

The following sets forth the management fees discussed in the Operating Agreement. At this time it is difficult to determine the magnitude of each of these fees.

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The Company will pay the Manager the following fees:

*Acquisition fee* of two percent (2.0%) based on the total acquisition cost of a property investment, including both cash and debt.

*Origination fee* of four percent (4%) of total loans and other debt closed related to the investment opportunity, related to the conduct of due diligence of the investment opportunity.

*Construction Management fee* of five percent (5%) of total construction costs (material and labor) for overseeing construction and/or rehabilitation of each property.

*Asset Management fees* of up to the greater of one percent (1%) per annum of total Member Capital Contributions (without reduction for any returned capital) or two percent (2%) of the total gross income of the Fund.

*Property management fee* of up to 7% of gross collected revenues will be paid to operate and management the properties.

*Refinance fees* of one percent (1%) of new or supplemental loan amounts for generating the loan packages for presentation and consideration by the lenders.

*Interest* on Manager Advances of up to ten percent (10%) per annum on all advances made by the Manager to the Company.

The Operating Agreement also provides for the following fee expense applicable to broker- dealer fee for services. Such fees will be paid as an expense of the Company prior to determining Distributable Cash. The related broker-dealer fees are as follows:

Broker-Dealer fees charged to the Company for compliance services will be up to 1% of the Capital Contributions of all Class A and Class B Members.

Broker-Dealer Sales fees, fees charged for the sales of securities by a licensed broker-dealer, can be up to 6% of the Capital Contribution of Members whose interest were purchased through a licensed broker-dealer.

Guarantors of construction mortgage notes payable:

Five of the members and officers of the Company and the managing general partner are guarantors of the four construction mortgage notes payable. In the aggregate, the guarantors are contingently obligated in the amount of $34,075,104; limited to the Company's pro-rata ownership of each investee.

**NOTE 8 – CONTRACTS, COMMITMENTS AND CONTINGENCIES**

Litigation:

The Company is not currently involved with and does not know of any pending or threatening litigation against the Company as of December 31, 2024 and 2023.

Escrow Agreement:

During March 2021, the Company entered into an Escrow Agreement for Securities Offering with WealthForge Securities Corporation LLC providing that all payments in connection with subscriptions for shares are to be sent to Atlantic Capital Bank (which is merging with SouthState Bank), and held in a non-interest bearing account for disbursement in compliance with the Securities and Exchange Act of 1934 Rule 15(c)2-4 and related SEC guidance and FINRA rules. See discussion elsewhere herein. Related thereto, the Company also entered into a one-year (renewable) software and licensing agreement with WealthForge Technologies, LLC which licenses the Company to use certain software, computer programs, business processes, integrated services and documentation. As of June 30, 2022, WealthForge Securities Corporation has been paid its Broker Dealer. See also discussions in Offering Memorandum elsewhere herein.

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Broker Dealer Agreement

During March 2021, the Company entered into a Broker-Dealer Agreement with WealthForge Securities, LLC (WealthForge) to provide operations and compliance services for the Company in relation to this Offering, review investor information, including Know Your Customer data, compliance with Regulation D Rule 506(d) Bad Actor Check requirements, perform Anti-Money Laundering and other compliance background checks and assist the Company in accepting investors. The term of the Agreement is twelve months, automatically renewable for successive twelve-month periods unless either party to the Agreement provides notice of non-renewal at least sixty days prior to the expiration of the current term.

The compensation to WealthForge includes the following: (i) Diligence fee of $10,000, (ii) Transaction Management fee of 100bps of proceeds raised, (iii) Regulatory Filing Service Fee of $350 per form and a (iv) Marketplace Fee of $100 per transaction of the aggregate amount raised by the Company except for clients of advisors with whom the Company has or develops a relationship prior to the time of an investment into the Offering.

Stock Registrar and Transfer Agency Service Agreement

On March 30, 2021, the Company has entered into a contract with KoreTranser Integral Transfer Agency USA Inc. Agency to provide services related to stock registrar and transfer agent. The pricing for such services include a Reg A+ set up fee of $3,500 plus $2,500 per month.

Subscription Escrow Agreement

On June 8, 2021, the Company entered into a subscription escrow agreement with WealthForge Securities, LLC to maintain subscription proceeds (Subscriber investment deposits) in escrow and to provide other escrow services. All fees will be paid by WealthForge Securities, LLC.

Amendment and Restatement of Subscription Agreement:

As of January 28, 2022, the Company amended its subscription agreement to provide additional fields for the use of investors who are investing through retirement accounts. The Company continues to accept the original subscription agreement for nonretirement account investors.

Registered Broker Dealers

Registered broker-dealers will receive a Placement Fee of up to six percent (6%) of the Gross Offering Proceeds up to a maximum of $4,500,000, of the Maximum Dollar Amount of $75,000,000 is sold to clients of registered broker-dealers.

**NOTE 9 -SUBSEQUENT EVENTS AND CONTINGENCY**

Management of the Company has evaluated subsequent events from January 1, 2025 through the date that the financial statements were available to be issued. Based upon managements' understandings there are no subsequent event to be disclosed.

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**PART III - EXHIBITS**

**Item 1. Index to Exhibits**

---

| | |
|:---|:---|
| [Exhibit 1.1](gratus_ex11.htm) | [Managing Broker Dealer Agreement](gratus_ex11.htm) |
| [Exhibit 2.1\*\*](http://www.sec.gov/Archives/edgar/data/1867706/000147793221004039/gratus_ex21.htm) | [Amended and Restated Operating Agreement](http://www.sec.gov/Archives/edgar/data/1867706/000147793221004039/gratus_ex21.htm) |
| [Exhibit 2.2](gratus_ex22.htm) | [Formation Documents](gratus_ex22.htm) |
| [Exhibit 4.1](gratus_ex41.htm) | [Subscription Agreement](gratus_ex41.htm) |
| [Exhibit 4.2\*](http://www.sec.gov/Archives/edgar/data/1867706/000147793224007710/gratus_ex42.htm) | [WealthForge Privacy Policy](http://www.sec.gov/Archives/edgar/data/1867706/000147793224007710/gratus_ex42.htm) |
| [Exhibit 6.1](gratus_ex61.htm) | [Transfer Agent Agreement](gratus_ex61.htm) |
| [Exhibit 6.2\*\*](http://www.sec.gov/Archives/edgar/data/1867706/000147793225003077/gratus_ex62.htm) | [Updated Side Letter Agreement](http://www.sec.gov/Archives/edgar/data/1867706/000147793225003077/gratus_ex62.htm) |
| [Exhibit 6.3](gratus_ex63.htm) | [Amended and Restated Promissory Note](gratus_ex63.htm) |
| [Exhibit 6.4](gratus_ex64.htm) | [Standstill Agreement](gratus_ex64.htm) |
| [Exhibit 8](gratus_ex8.htm) | [Subscription Escrow Agreement](gratus_ex8.htm) |
| [Exhibit 11.1](gratus_ex111.htm) | [Auditor Consent (regarding audited financials ending 12/31/2023)](gratus_ex111.htm) |
| [Exhibit 12.1](gratus_ex121.htm) | [Attorney Opinion Letter](gratus_ex121.htm) |

---

\* Filed as an attachment to the Company's November 27, 2024 Preliminary Offering Circular filed on Form 1-A, File No. 24-12537, and incorporated herein by reference

\*\* Filed as an attachment to Gratus Capital Properties Fund III LLC Current Report Pursuant to Regulation A filed on Form 1-U as filed with the Securities and Exchange Commission on April 29, 2025.

---

| |
|:---|
| 73 |
| *[**Table of Contents**](#toc)* |

---

**SIGNATURE**

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Minneapolis, State of Minnesota, on June 20, 2025.

---

| | |
|:---|:---|
| **Gratus Capital Properties Fund III LLC** | **Gratus Capital Properties Fund III LLC** |
|  | */s/ Jason Weimer* |
| By: | Jason Weimer |
|  | Manager of GCPF Management LLC |
|  | Manager |
|  | */s/ Robert Barlau* |
| By: | Robert Barlau |
|  | Manager of GCPF Management LLC |
|  | Manager |

---

This offering statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| **Gratus Capital Properties Fund III LLC** | **Gratus Capital Properties Fund III LLC** |
|  | */s/ Jason Weimer* |
| By: | Jason Weimer |
|  | Principal Executive Officer |
|  | Manager of GCPF Management LLC |
|  | Manager |
|  | */s/ Robert Barlau* |
| By: | Robert Barlau |
|  | Principal Financial and Accounting Officer\ |
|  | Manager of GCPF Management LLC |
|  | Manager |

---

73<br>

## Ex1A-1

**EXHIBIT 1.1**

![](gratus_ex11img25.jpg)

**MANAGING BROKER-DEALER AGREEMENT**

This Managing Broker-Dealer Agreement (this "Agreement") is entered into by and between Gratus Properties Fund III, LLC (the "Issuer") and WealthForge Securities, LLC, a Virginia limited liability company (the "Managing Broker-Dealer"), effective ______11/25/2024_________ (the "Effective Date") regarding the offering and sale by the Issuer of up to $50,000,000 in Class A Interests and Class B Interests (the "Securities") in the Issuer (the "Offering") for which the Managing Broker-Dealer provides services described herein (the "Services").

1. <u>Appointment of the Managing Broker-Dealer.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. On the basis of the representations, warranties and covenants herein contained, but subject to the terms and conditions herein set forth, the Managing Broker-Dealer is hereby appointed and agrees to sell the Securities on a "best efforts" basis pursuant to the applicable laws, regulations, and state blue sky exemptions for (i) Regulation A offerings, or (ii) non-traded public offerings offered pursuant to the Investment Company Act of 1940 (the "40 Act"). The Managing Broker-Dealer is authorized to enlist other members of the Financial Industry Regulatory Authority, Inc. ("FINRA") acceptable to the Issuer (the "Selling Group Members" or "Soliciting Dealers") to sell the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Issuer shall submit to the Managing Broker-Dealer all regulatory filings for advance review and approval. The Issuer shall not submit regulatory filings to the SEC listing the Managing Broker- Dealer as the broker-dealer on the Offering unless it has written approval from the Managing Broker-Dealer and the Issuer's submission must be substantially in the form that the Managing Broker-Dealer approves. The Issuer shall notify the Managing Broker-Dealer that the Issuer has sent the regulatory filings to the SEC immediately upon filing. Upon receipt of that notice, the Managing Broker-Dealer shall file the Form 5110 related to this Offering to FINRA. The Managing Broker-Dealer and the Issuer will use reasonable efforts to address comments from the SEC and FINRA related to the Offering during the qualification process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. It is understood that no sale of the Securities shall be regarded as effective unless and until accepted by the Issuer. The Issuer reserves the right in its sole discretion to accept or reject any subscription for the Securities (the "Subscription Agreement") in whole or in part for a period of thirty (30) days after receipt of the Subscription Agreement. Any proposed subscription for the Securities not accepted within thirty (30) days of the receipts shall be deemed rejected. The Securities will be offered during a period commencing on the date of the Offering Document and continuing until the Offering Termination Date as defined in the Offering Document (the "Offering Period"). All written Offering Materials are subject to the Managing Broker-Dealer's review and approval before Issuer makes the materials available to Prospective Subscribers, which the Managing Broker-Dealer shall not unreasonably withhold or delay. The Managing Broker-Dealer does not hold Subscriber's funds, and all funds raised are held in escrow or trust until released to the Issuer or refunded to the Subscriber. Notwithstanding the foregoing, the Managing Broker- Dealer's execution of this Agreement shall not be construed or represented as approval of the Offering. The Managing Broker-Dealer's ratification of the Notice of Offering, which may have a form as described – if at all – as Exhibit C, alone shall constitute its approval of the Offering. In the event of any conflict between the financial terms of the Notice of Offering and this Agreement, the relevant terms of the Notice of Offering shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Subject to the performance by the Issuer of all the obligations to be performed hereunder and to the completeness and accuracy of all the Issuer's representations and warranties contained herein, the Managing Broker-Dealer hereby accepts such agency and agrees on the terms and conditions herein set forth to use its best efforts during the Offering Period to find qualified investors (the "Investors") for the Securities.

2. <u>Representations and Warranties of the Issuer.</u> The Issuer hereby represents and warrants to the Managing Broker-Dealer that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The Issuer has been duly organized and is validly existing as a limited liability company in good standing under the laws of the state of Delaware has all requisite power and authority to enter into this Agreement, and has all requisite power and authority to conduct its business as described in the Offering Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. No defaults exist in the due performance or observance of any material obligation, term, covenant, or condition of any agreement or instrument to which the Issuer is a party or by which it is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Subject to Section 3.3, the Offering Document does not include, nor will it include, through the Offering Termination Date, any untrue statement of a material fact nor does it or will it omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. No consent, approval, authorization, or other order of any governmental authority is required in connection with the execution or delivery by the Issuer of this Agreement or the issuance and sale by the Issuer of the Securities, except such as may be required under the Securities Act or applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. At the time of the issuance of the Securities, the Securities will have been duly authorized and validly issued, and upon payment therefor, will be fully paid and nonassessable and will conform to the description thereof contained in the Offering Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. As of the Effective Date of the Agreement and while it is effective, the Issuer represents and warrants that it will comply with the Subscription Agreements and with the laws, rules, and regulations applicable to its business and the Offering, including specifically that the Issuer and its employees and agents shall comply with Section 15(a) of the Exchange Act of 1934, as amended (the "Exchange Act") and with parallel state issuer-broker-dealer registration requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. It does not have knowledge of and has not been apprised verbally or in writing of a Major Offering Impediment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. It will promptly communicate to the Managing Broker-Dealer any circumstance reasonably relating to the underlying health or viability of the Offering, which may include any: (i) pending or threatened litigation or civil or criminal charges involving Issuer or its officers or any investment vehicles offered by Issuer or any affiliate or subsidiary of Issuer or involving any other employee, director, or officer of Issuer; or (ii) the material likelihood that any performance metrics described in the Offering Document may be unfulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. All its associated persons participating in the sale of securities that are not Issuer-Affiliated Representatives: (x) are exempt from registration as a broker under the registration safe harbor provided by 17 C.F.R. 240.3a4-1; and (y) will remain exempt from registration as a broker by meeting the conditions and restricting participation in the Offering as set forth in 17 C.F.R. 240.3a4-1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. The Issuer represents that, as of the Effective Date and at the time of any sale of the Securities (each, an "Applicable Date"), neither it, nor any of its directors, executive officers, general partners, managing members, or other officers, employees, or representatives participating in the Offering of the Securities (each, an "Issuer Covered Person" and, together, "Issuer Covered Persons"), is subject to any of the "Bad Actor" disqualifications described in 17 C.F.R. § 230.262(a)(1) to (8) under the Securities Act (a "Disqualification Event"). The Issuer will notify the Managing Broker-Dealer in writing of (a) any Disqualification Event relating to any Issuer Covered Person not previously disclosed to the Managing Broker-Dealer in accordance with this Section 2.10, and (b) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.1. The Issuer agrees to immediately notify the Managing Broker-Dealer if there is a violation or potential violation of the representations set forth in this Section 2.10 during the Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. The representations and warranties made in this Section 2 are made as of the date hereof and shall be continuing representations and warranties throughout the Offering Period. In the event that any of these representations or warranties becomes untrue or is incorrect, the Issuer will immediately notify the Managing Broker-Dealer in writing of the fact which makes the representation or warranty untrue or incorrect.

3. <u>Duties and Obligations of the Issuer.</u> The Issuer agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. The Issuer will deliver to the Managing Broker-Dealer such numbers of copies of the Offering Document and any amendment or supplement thereto, with all appendices thereto, as the Managing Broker- Dealer may reasonably request for the purposes contemplated by federal and applicable state securities laws. The Issuer also will deliver to the Managing Broker-Dealer such number of copies of any printed sales literature or other materials as the Managing Broker-Dealer may reasonably request in connection with the Offering. The Issuer shall create, and is solely responsible for, all statements in the Offering Materials. The Issuer shall not use Offering Materials that reference the Managing Broker-Dealer unless the Managing Broker-Dealer has approved the Offering Materials in writing in each instance. Without exception, the Managing Broker-Dealer must approve all Offering Materials, including all Advertising Materials, before the Issuer distributes them. Upon approval, Offering Materials may only be used for the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. The Issuer will comply with all requirements imposed upon it by the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"), and by all applicable state securities laws and regulations, to permit the continuance of offers and sales of the Securities, in accordance with the provisions of this Agreement and the Offering Document, and will amend or supplement the Offering Document in order to make the Offering Document comply with the requirements of federal and applicable state securities laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. If at any time any event occurs as a result of which the Offering Document would include an untrue statement of a material fact or, in view of the circumstances under which it was made, omit to state any material fact necessary to make the statements therein not misleading, the Issuer will notify the Managing Broker-Dealer thereof, effect the preparation of an amendment or supplement to the Offering Document which will correct such statement or omission, and deliver to the Managing Broker-Dealer as many copies of such amendment or supplement to the Offering Document as the Managing Broker-Dealer may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. The Issuer will apply the net proceeds from the Offering received by it in the manner set forth in the Offering Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. Subject to the Managing Broker-Dealer's actions and the actions of others in connection with the Offering, the Issuer will comply with all requirements imposed upon it by applicable federal securities laws and regulations and applicable state securities laws. Upon request, the Issuer will furnish to the Managing Broker-Dealer a copy of such papers filed by the Issuer in connection with any such exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. The Issuer will furnish the Managing Broker-Dealer with either: (i) auditor-reviewed financial statements; (ii) Issued-prepared financial statements; or (iii) audited financials, and will deliver to the Managing Broker-Dealer a copy of each such report at the time that such reports are furnished to the holders of the Securities, and such other information concerning the Issuer, as may reasonably be requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7. After execution of this Agreement, the Issuer shall not accept funds in the Offering unless the Managing Broker-Dealer processes those investment subscriptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.1. During the Offering and for six (6) months following the final Escrow Release of the Offering, the Issuing Party agrees to notify the Managing Broker-Dealer of an Investor's transfer or assignment of: (x) the Securities; or (y) any of the obligations or rights associated with the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7.2. The Issuer may also enter into agreements for the sale of the Securities to certain Investors with non-FINRA registered investment advisers, and the Managing Broker-Dealer shall assist in the administration of such arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8. In order to use electronic delivery of the Offering documents, the Issuer will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.1. Provide a form of consent to electronic delivery to be signed by prospective Investors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8.2. Comply with Sections I(A)1 (b)–(e), I(A)2(d), I(B)2, and I(C), (E), (G), (H), (I), and (J) of the NASAA Statement of Policy Regarding Use of Electronic Offering Documents and Electronic Signatures. The Issuer is responsible for the storage and backup of its own records pertaining to its Offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9. In order to use electronic signatures, the Issuer will (i) retain electronically signed documents in compliance with applicable laws and regulations, (ii) not condition participation in the Offering on the use of electronic signatures, (iii) maintain written policies and procedures covering the use of electronic signatures, and (iv) provide a form of consent to electronic signatures to be signed by prospective Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10. The Issuer shall provide all reasonable cooperation with respect to Managing Broker- Dealer-facilitated escrow account established for an Offering, if applicable. The Managing Broker-Dealer reserves the right to charge reasonable additional fees related for the establishment, maintenance, and transactions related to any such escrow account. Any such fees, and the details surrounding which, which will be disclosed to the Issuer in writing with commercially reasonable terms prior written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11. Notwithstanding the foregoing provisions of this Section 3, the Issuer reserves the right, in its sole discretion, to refuse to accept any or all Subscription Agreements tendered by the Managing Broker- Dealer and/or to terminate the Offering at any time before the Offering Termination Date.

4. <u>Representations and Warranties of the Managing Broker-Dealer.</u> The Managing Broker-Dealer represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The Managing Broker-Dealer is a duly organized Virginia limited liability company in good standing and has all requisite power and authority to enter into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. This Agreement, when executed by the Managing Broker-Dealer, will have been duly authorized and will be a valid and binding agreement of the Managing Broker-Dealer, enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. The consummation of the transactions contemplated herein and those contemplated by the Offering Document will not result in a breach or violation of any order, rule, or regulation directed to the Managing Broker-Dealer by any court, FINRA, or any federal or state regulatory body or administrative agency having jurisdiction over the Managing Broker-Dealer or its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. The Managing Broker-Dealer will take appropriate steps to ensure that all Selling Group Members receiving transaction-based compensation and all Compensated Solicitors are not subject to a Disqualification Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. The Managing Broker-Dealer will use commercially reasonable efforts to: (x) maintain the overall security of its network and related infrastructure; (y) protect confidential and personally identifiable information provided by the Issuer; and (z) maintain and execute processes designed to prevent the introduction of malware, spyware, viruses, and other corruption into its network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. The Managing Broker-Dealer hereby confirms that it (i) is a member in good standing of FINRA, (ii) is qualified and fully registered to act as a broker-dealer within all states in which it will sell the Securities, (iii) is a broker-dealer duly registered with the SEC pursuant to the Exchange Act, and (iv) will maintain all such registrations and qualifications in good standing for the duration of the Managing Broker- Dealer's involvement in the Offering. The Managing Broker-Dealer agrees to immediately notify the Issuer if it ceases to be a member of FINRA in good standing. The Managing Broker-Dealer will comply with all applicable laws, regulations, requirements, and rules of the Securities Act, the Exchange Act, applicable state law, and FINRA. The Managing Broker-Dealer has all required licenses and permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. The Managing Broker-Dealer has reasonable grounds to believe, based on information made available to it by the Issuer, that all material facts are adequately and accurately disclosed in the Offering Document and provide an adequate basis for evaluating an investment in the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. This Agreement, or any supplement or amendment hereto, may be filed by the Issuer with the SEC or FINRA, if such filing should be required, and may be filed with, and may be subject to the approval of any applicable federal and applicable state securities regulatory agencies, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. No agreement will be made by the Managing Broker-Dealer with any person permitting the resale, repurchase, or distribution of the Securities purchased by such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. The Managing Broker-Dealer has established and implemented anti-money-laundering compliance programs, in accordance with FINRA Rule 3310 and Section 352 of the Money Laundering Abatement Act and Section 326 of the Patriot Act of 2001. Notwithstanding the foregoing, the Managing Broker-Dealer is not responsible for Outside Services, including accreditation checks, know-your-client ("KYC") checks, and other diligence for Subscribers and Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. The Managing Broker-Dealer represents that, as of the Effective Date and at the Applicable Date, neither it, nor any of its directors, executive officers, general partners, managing members, or other officers, employees, or representatives participating in the Offering of the Securities (each, a "Managing Broker-Dealer Covered Person" and, together, "Managing Broker-Dealers Covered Persons"), is subject to any of the Disqualification Events described in Rule 262(a)(1) to (8) under the Securities Act. The Managing Broker-Dealer will notify the Issuer in writing of (a) any Disqualification Event relating to any Managing Broker-Dealer Covered Person not previously disclosed to the Issuer in accordance with this Section 4.11, and (b) any event that would, with the passage of time, become a Disqualification Event relating to any Managing Broker-Dealer Covered Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11.1. The Managing Broker-Dealer agrees to immediately notify the Issuer if there is a violation or potential violation of the representations set forth in this Section 4.11 during the Offering Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. The representations and warranties made in this Section 4 are and shall be continuing representations and warranties throughout the Offering Period. In the event that any of these representations or warranties becomes untrue, the Managing Broker-Dealer will immediately notify the Issuer in writing of the fact which makes the representation or warranty untrue.

5. <u>Duties and Obligations of the Managing Broker-Dealer.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The Managing Broker-Dealer will serve in a "best efforts" capacity in the offering, sale, and distribution of the Securities. The Managing Broker-Dealer may offer the Securities as an agent, but all sales shall be made by the Issuer, acting through the Managing Broker-Dealer as an agent, and not by the Managing Broker-Dealer as a principal. The Managing Broker-Dealer shall have no authority to appoint any person or other entity as an agent or sub-agent of the Managing Broker-Dealer or the Issuer, except to appoint Selling Group Members acceptable to the Issuer in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Managing Broker-Dealer shall not execute any transactions in which an Investor invests in the Securities in a discretionary account without prior written approval of the transaction by the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. The Managing Broker-Dealer will comply in all respects with the subscription procedures and plan of distribution set forth in the Offering Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. In the event the Managing Broker-Dealer receives any customer funds for the Securities, the Managing Broker-Dealer will transmit such customer funds, not later than noon of the next business day following receipt of such funds for the Securities, as described in the Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. The Managing Broker-Dealer shall complete all steps necessary to permit the Issuer to perform its obligations under this Agreement pursuant to exemptions available under applicable federal law and applicable state laws. The Managing Broker-Dealer shall conduct all its solicitation and sales efforts in conformity with applicable securities laws and regulations, and exemptions available under applicable state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. The Managing Broker-Dealer shall notify the Issuer of Subscription Agreements it receives within two (2) business days of receipt so that the Issuer may make any required federal or state law filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. The Managing Broker-Dealer will immediately bring to the attention of the Issuer any circumstance or fact which causes the Managing Broker-Dealer to believe the Offering Document, or any other literature distributed pursuant to the Offering, or any information supplied by prospective Investors in their subscription materials, may be inaccurate or misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8. The Managing Broker-Dealer will terminate the Offering upon written request of the Issuer at any time and will resume the Offering upon subsequent request of the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9. The Managing Broker-Dealer shall enter into a Soliciting Dealer Agreement in the form attached hereto as Exhibit A (the "Soliciting Dealer Agreement") with each Selling Group Member, and shall not modify, amend, or supplement the terms of the Soliciting Dealer Agreement without the prior written consent of the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10. The Managing Broker-Dealer will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10.1. Maintain written policies and procedures covering the use of electronic offering documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10.2. Store the electronic offering documents in a non-rewriteable and non-erasable format;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10.3. Comply with any additional requirements imposed on the Issuer as set forth in Section 3, to the extent within its control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10.4. Require the Selling Group Members to comply with the electronic delivery requirements set forth in the Soliciting Dealer Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10.5. Take prompt action in the event of a security breach to (i) identify and locate the breach, (ii) secure the affected information, (iii) suspend the use of the particular device or technology that has been compromised until information security has been restored, and (iv) provide notice of the security breach to any Investor whose confidential personal information has been improperly accessed in connection with the security breach. Compliance with this item after the discovery of a security breach or any other breach of personal information shall not substitute or in any way affect other requirements or obligations, including notification, imposed on the Managing Broker-Dealer pursuant to applicable laws, regulations, or standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11. The Managing Broker-Dealer will require each Selling Group Member, as agent of the Issuer, if it uses electronic signatures in connection with the Offering, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11.1. Receive a prospective Investor's prior, informed consent to obtain the use of electronic signatures in the form provided by the Issuer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11.2. Comply with all the provisions of the Policy Regarding Use of Electronic Signatures included in the NASAA Statement of Policy Regarding Use of Electronic Offering Documents and Electronic Signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12. The Managing Broker-Dealer shall maintain written policies and procedures covering the use of electronic signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13. <u>General Terms for Broker-Dealer of Record Services and Managing Broker-Dealer</u> <u>Services.</u> With respect to the sale of Securities where the Managing Broker-Dealer is acting as a broker- dealer of record:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13.1. The investor will be considered a "Customer" of the Managing Broker-Dealer (as described below). The Managing Broker-Dealer represents that it has established and implemented an anti-money laundering ("AML") compliance program ("AML Program"), in accordance with FINRA Rule 3310 and Section 352 of the Money Laundering Abatement Act, the Bank Secrecy Act, as amended, and Section 326 of the Patriot Act of 2001, which is reasonably expected to detect and cause reporting of suspicious transactions in connection with the sale of Securities. In addition, the Managing Broker-Dealer represents that it has established and implemented a program ("OFAC Program") for compliance with OFAC and will continue to maintain its OFAC Program during the term of this Agreement. Upon request by the Issuer at any time, the Managing Broker-Dealer hereby agrees to (i) furnish a copy of its AML Program and OFAC Program to the Issuer for review and (ii) furnish a copy of the findings and any remedial actions taken in connection with the Managing Broker-Dealer's most recent independent testing of its AML Program and/or its OFAC Program. To the extent deemed appropriate by the Issuer, the Managing Broker-Dealer shall cooperate with the Issuer's auditing and monitoring of the Managing Broker-Dealer's AML Program and its OFAC Program by providing, upon request, information, records, data, and exception reports related to the Issuer's investors introduced to, and serviced by, the Managing Broker-Dealer (the "Customers"). Such documentation could include, among other things: (i) copies of the Managing Broker-Dealer's AML Program and its OFAC Program, (ii) documents maintained pursuant to the Managing Broker-Dealer's AML Program and its OFAC Program related to the Customers, (iii) any suspicious activity reports filed related to the Customers, (iv) audits and any exception reports related to the Managing Broker-Dealer's AML activities and (v) any other files maintained related to the Customers. In the event that such documents reflect, in the opinion of the Issuer, a potential violation of the Issuer's obligations in respect of its AML or OFAC requirements, the Managing Broker-Dealer will permit the Issuer to further inspect relevant books and records related to the Customers (with respect to the Offering) and/or the Managing Broker-Dealer's compliance with AML or OFAC requirements. Notwithstanding the foregoing, the Managing Broker- Dealer shall not be required to provide to the Issuer any documentation that, in the Managing Broker- Dealer's reasonable judgment, would cause the Managing Broker-Dealer to lose the benefit of attorney- client privilege or other privilege which it may be entitled to assert relating to the discoverability of documents in any civil or criminal proceedings. The Managing Broker-Dealer hereby represents that it is currently in compliance with all AML rules and all OFAC requirements, specifically including, but not limited to, the Customer Identification Program requirements under Section 326 of the USA PATRIOT Act. The Managing Broker-Dealer hereby agrees, upon request by the Issuer to (i) provide an annual certification to the Issuer that, as of the date of such certification (A) its AML Program and its OFAC Program are consistent with the AML Rules and OFAC requirements, (B) it has continued to implement its AML Program and its OFAC Program and (C) it is currently in compliance with all AML Rules and OFAC requirements, specifically including, but not limited to, the Customer Identification Program requirements under Section 326 of the USA PATRIOT Act and (ii) perform and carry out, on behalf of the Issuer, the Customer Identification Program requirements in accordance with Section 326 of the USA PATRIOT Act and applicable SEC and Treasury Department Rules thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13.2. The Managing Broker-Dealer agrees that it will not offer the Securities for sale to any Investor who has not confirmed to the Managing Broker-Dealer, in writing before the offer, that such Investor meets the Purchaser Suitability Requirements set forth in the Offering Document. Nothing contained in this Section 5.13.2 shall be construed to relieve the Managing Broker-Dealer of its suitability obligations under FINRA Rule 2111.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13.3. The Managing Broker-Dealer will limit the offering of the Securities to persons whom it has reasonable grounds to believe, and in fact believes, meet the financial suitability and other Investor requirements set forth in the Offering Document as well as Regulation Best Interest requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13.4. The Managing Broker-Dealer will provide independent due diligence services with respect to the material information and representations contained in the Offering documents. The Managing Broker- Dealer will provide feedback to the Issuer with respect to the Offering documents.

6. <u>Compensation.</u> Subject to Section 7, as compensation for services rendered by the Managing Broker-Dealer under this Agreement, the Managing Broker-Dealer will be entitled to receive Fees from the Issuer, as described in the Service Schedule by the parties pursuant to the terms of this Agreement.

Subject to the terms of the Fee Addendum, attached hereto, the parties agree that the Managing Broker- Dealer shall invoice for its Services, and Issuer shall pay for such Services, according to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Fees for all Services are due and payable monthly, in advance, and the fees for any partial months shall be prorated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The first invoice will be due and payable upon the qualification of the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Engagement Fee will be invoiced and will become due and payable upon the qualification of the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Thereafter, the Issuer shall be invoiced, monthly, the Platform and Syndication Fee until the Offering is fully subscribed, as per the Offering Document, and such fees will be invoiced and due and payable upon the qualification of the Offering and monthly thereafter as described herein; and (v) A maintenance fee, which shall be invoiced monthly in the event that the Issuer requests that the Managing Broker-Dealer provides such maintenance services.

Notwithstanding the foregoing, in the event that the Managing Broker-Dealer does not accept the Offering within thirty (30) days of the Agreement Effective Date, the Managing Broker-Dealer and Issuer agree to use good faith efforts to perfect the Offering Materials and any other collateral such that the Managing Broker-Dealer may ratify the Notice of Offering, unless, Issuer provides notice of its intent to terminate the Agreement pursuant to the terms of Section 18.2, below. All fees paid described in this Section 6 are non- refundable.

7. <u>Conditions to Payment of Commissions, Allowances, and Expense Reimbursements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. No selling commissions, Allowances, expense reimbursements, or other compensation will be payable with respect to (i) any Subscription Agreements that are rejected by the Issuer, or if the Issuer terminates the Offering for any reason whatsoever, or (ii) any sale of the Securities by the Managing Broker- Dealer unless and until such time as the Issuer has received and accepted the total proceeds of any such sale from the Escrow Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Except as provided in Section 17, all other expenses incurred by the Managing Broker-Dealer in the performance of the Managing Broker-Dealer's obligations hereunder, including, but not limited to, expenses related to the Offering of the Securities and any attorneys' fees, shall be at the Managing Broker- Dealer's sole cost and expense, and the foregoing shall apply notwithstanding the fact that the Offering is not consummated for any reason.

8. <u>Offering.</u> The Offering of the Securities shall be at the offering price and upon the terms and conditions set forth in the Offering Document.

9. <u>Indemnification by the Issuer.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Subject to the conditions set forth below, the Issuer, with respect to the Offering, agrees to indemnify, defend, and hold harmless the Managing Broker-Dealer and the Selling Group Members, and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants (the "Selling Parties") against any and all loss, liability, claim, damage, and expense whatsoever ("Loss") arising out of or based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1. Any untrue statement or alleged untrue statement of a material fact contained in the Offering Document or in any application or other document filed in any jurisdiction in order to qualify the Securities under or exempt the Offering of the Securities from the registration or qualification requirements of the securities laws thereof unless any of the Selling Parties know such statement to be untrue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.2. The omission or alleged omission from the Offering Document of a material fact required to be stated therein or necessary to make the statements therein not misleading unless any of the Selling Parties know such statement to be untrue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.3. The failure of the Issuer as a result of its acts or omissions to comply with any of the applicable provisions of securities laws or regulations thereunder, or any applicable state laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.4. Any verbal or written representations made in connection with the Offering by the Issuer in violation of the Securities Act, or any other applicable federal or state securities laws and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.5. The Issuer's gross negligence or willful misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.6. A claim of infringement relating to the Issuer's intellectual property or other materials provided by the Issuer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.7. The breach by the Issuer of any term, condition, representation, warranty, obligation, or covenant in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. If any Action is brought against any of the Selling Parties in respect of which indemnity may be sought hereunder, the Managing Broker-Dealer or the Selling Group Members, as the case may be, shall promptly notify the Issuer in writing of the institution of such Action, and the Issuer shall assume the defense of such Action; provided, however, that the failure to notify the Issuer shall not affect the provisions in this Section 9 except to the extent such failure to notify the Issuer has a material and adverse effect on the defense of such claims. The affected Selling Parties shall have the right to employ counsel in any such case. The reasonable fees and expenses of such counsel shall be at the Issuer's expense and authorized in writing by the Issuer; provided that the Issuer will not be obligated to pay for legal fees and expenses for more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. The Issuer agrees to promptly notify the Managing Broker-Dealer of the commencement of any litigation or proceedings against the Issuer or any of its managers, members, partners, officers, directors, employees, agents, attorneys, accountants, and affiliates in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. The indemnity provided to the Managing Broker-Dealer pursuant to this Section 9 shall not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.1. any untrue statement or alleged untrue statement of material fact made by the Managing Broker-Dealer or any agent of the Managing Broker-Dealer, or any omission or alleged omission of a material fact required to be disclosed by the Managing Broker-Dealer or any agent of the Managing Broker- Dealer made in reliance upon and in conformity with written information furnished to the Issuer by the Managing Broker-Dealer specifically for use in the preparation of the Offering Document (or any amendment or supplement thereto) or any sales literature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.2. the failure to qualify the offer and sale of Securities for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of the Managing Broker-Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.3. the offer or sale by the Managing Broker-Dealer of a Security to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.4. the breach by the Managing Broker-Dealer of any term, condition, representation, warranty, obligation, or covenant in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. The indemnity provided to the Selling Group Member pursuant to this Section 9 shall not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.1. any untrue statement or alleged untrue statement of material fact made by the Selling Group Member or any agent of the Selling Group Member, or any omission or alleged omission of a material fact required to be disclosed by the Selling Group Member or any agent of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.2. the failure to qualify the offer and sale of Securities for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.3. the offer or sale by the Selling Group Member of a Security to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.4. the breach by the Selling Group Member of any term, condition, representation, warranty, obligation, or covenant under its Soliciting Dealer Agreement with the Managing Broker-Dealer relating to the Offering.

10. <u>Indemnification by the Managing Broker-Dealer.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. Subject to the conditions set forth below, the Managing Broker-Dealer agrees to indemnify, defend, and hold harmless the Issuer and the Selling Group Members, and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants (the "ISGM Parties"), against any and all third-party Losses arising out of or based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1. Any verbal or written representations made in connection with the Offering by the Managing Broker-Dealer in violation of the Securities Act, or any other applicable federal or state securities laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2. Any misrepresentation contained in any sales or other materials provided by the Managing Broker-Dealer to the Selling Group Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3. The Managing Broker-Dealer's failure to comply with any of the applicable provisions of the Securities Act, the Exchange Act, any regulations thereunder, the applicable requirements and rules of FINRA, or any applicable state laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.4. The breach by the Managing Broker-Dealer of any term, condition, representation, warranty, obligation, or covenant in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.5. The Managing Broker-Dealer's gross negligence or willful misconduct; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.6. Any electronic signatures and/or stamped signatures in any form which have been directly used by or obtained by the Managing Broker-Dealer with respect to this Agreement or in any Soliciting Dealer Agreement related to the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. If any Action is brought against any of the ISGM Parties in respect of which indemnity may be sought hereunder, the Issuer or the Selling Group Members, as the case may be, shall promptly notify the Managing Broker-Dealer in writing of the institution of such Action, and the Managing Broker-Dealer shall assume the defense of such Action; provided, however, that the failure to notify the Managing Broker- Dealer shall not affect the provisions in this Section 10 except to the extent such failure to notify the Managing Broker-Dealer has a material and adverse effect on the defense of such claims. The affected ISGM Parties shall have the right to employ counsel in any such case. The reasonable fees and expenses of such counsel shall be at the Managing Broker-Dealer's expense and authorized in writing by the Managing Broker-Dealer, provided that the Managing Broker-Dealer will not be obligated to pay for legal fees and expenses for more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. The Managing Broker-Dealer agrees to promptly notify the Issuer of the commencement of any litigation or proceedings against the Managing Broker-Dealer or any of its managers, members, partners, officers, directors, employees, agents, attorneys, accountants, and affiliates in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. The indemnity provided to the Issuer pursuant to this Section 10 shall not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.1. any untrue statement or alleged untrue statement of material fact made by the Issuer or any agent of the Issuer (other than the Managing Broker-Dealer), or any omission or alleged omission of a material act required to be disclosed by the Issuer or any agent of the Issuer (other than the Managing Broker-Dealer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.2. the failure to qualify the offer and sale of Securities for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of the Issuer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.3. the breach by the Issuer of its representations, warranties, or obligations in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. The indemnity provided to the Selling Group Member pursuant to this Section 10 shall not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.1. any untrue statement or alleged untrue statement of material fact made by the Selling Group Member or any agent of the Selling Group Member, or any omission or alleged omission of a material fact required to be disclosed by the Selling Group Member or any agent of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.2. the failure to qualify the offer and sale of Securities for an exemption from registration under the Securities Act and applicable state securities laws, rules or regulations caused by an action or omission of the Selling Group Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.3. the offer or sale by the Selling Group Member of a Security to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5.4. the breach by the Selling Group Member of any term, condition, representation, warranty, obligation or covenant under its Soliciting Dealer Agreement with the Managing Broker-Dealer relating to the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. The Managing Broker-Dealer will not provide indemnification for any liability or loss suffered by an Indemnified Party, nor will an Indemnified Party be held harmless for any liability suffered by the Indemnified Parties unless all of the following conditions are met: (i) the person seeking indemnification was acting on behalf of or performing services on behalf of the Managing Broker-Dealer or the Issuer; and (ii) such liability or loss was not the result of negligence or misconduct on the part of the party seeking indemnification or the Indemnified Party. In no case will Managing Broker-Dealer be liable under this Section with respect to any Action made against any of the Indemnified Parties unless the Managing Broker-Dealer will have been notified in writing of the nature of the Action within a reasonable time after the assertion thereof; <u>provided</u>, <u>that</u> the Managing Broker-Dealer will be relieved of their duty to indemnify and hold harmless under this Section 10 if a failure by the party seeking indemnification to timely notify the Managing Broker-Dealer materially impairs its ability to defend against the Action; but the failure to so notify the Managing Broker-Dealer will not relieve the Managing Broker-Dealer from any liability that the Managing Broker-Dealer would have incurred otherwise than on account of this Section. The Managing Broker-Dealer will be entitled to participate, at its own expense, in the defense of, or if it so elects within a reasonable time after receipt of such notice, to assume the defense of, any claim or suit for which any of the Indemnified Parties seek indemnification hereunder. If the Managing Broker-Dealer elects to assume said defense, such defense will be conducted by counsel chosen by it and reasonably satisfactory to the Indemnified Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. In the event that the Managing Broker-Dealer elects to assume the defense of any such suit and retain such counsel, the Managing Broker-Dealer will not be liable under this Section to the Indemnified Parties in the suit for any legal or other expenses subsequently incurred by the Indemnified Parties, and the Indemnified Parties will bear the fees and expenses of any additional counsel retained by the Indemnified Parties unless: (i) the employment of counsel by the Indemnified Party has been authorized in writing by the Managing Broker-Dealer; (ii) the Managing Broker-Dealer will not in fact have employed counsel to assume the defense of such Action, in either of which events such fees and expenses will be borne by the Managing Broker-Dealer, or (iii) the Indemnified Party, based on the advice of counsel, reasonably believes that it has defenses that are different from or additional to those available to the Managing Broker-Dealer.

11. <u>Indemnification by the Selling Group Member.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. Subject to the conditions set forth below, and except for Losses that are indirect, special, incidental, exemplary, punitive, or consequential damages, whether foreseeable or otherwise, resulting from, or otherwise arising out of, any of the breaches described in this Section 11.1, each Selling Group Member agrees to indemnify, defend, and hold harmless the Issuer and the Managing Broker-Dealer and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants (the "IMBD Parties"), against any and all Losses, arising out of or based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1. Any verbal or written representations made in connection with the Offering, including in an Offering Document, or any amendments or supplements thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, but solely to the extent that such loss, liability, claim, damage, or expense results from an untrue statement of material fact or omission of a material fact contained in information provided by a Selling Group Member in writing to the Issuer specifically for inclusion in any Offering Document by such Selling Group Member, its employees, or affiliates in violation of the Securities Act, or any other applicable federal or state securities laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2. Any use of sales materials or use of unauthorized verbal representations by such Selling Group Member, its employees or affiliates concerning the Offering in violation of the Soliciting Dealer Agreement or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3. Such Selling Group Member's failure to comply with any of the applicable provisions of the Securities Act, the Exchange Act, any regulations thereunder, the applicable requirements and rules of FINRA, or any applicable state laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.4. The breach by such Selling Group Member of any term, condition, representation, warranty, obligation, or covenant of the Soliciting Dealer Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.5. The failure by any Investor to comply with the investor suitability requirements set forth in the Offering Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.6. Any electronic signatures and/or stamped signatures in any form which have been used, obtained, or relied upon by the Selling Group Member with respect to this Agreement, the applicable Soliciting Dealer Agreement or any Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. If any Action is brought against any of the IMBD Parties in respect of which indemnity may be sought hereunder, the Issuer or the Managing Broker-Dealer shall promptly notify the applicable Selling Group Member in writing of the institution of such Action, and the Selling Group Member shall assume the defense of such Action; provided, however, that the failure to notify the Selling Group Member shall not affect the provisions in this Section 11 except to the extent such failure to notify the Selling Group Member has a material and adverse effect on the defense of such claims. The affected IMBD Parties shall have the right to employ counsel in any such case. The reasonable fees and expenses of such counsel shall be at such Selling Group Member's expense and authorized in writing by such Selling Group Member, provided that such Selling Group Member will not be obligated to pay for legal fees and expenses for more than one law firm in connection with the defense of similar claims arising out of the same alleged acts or omissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. The Selling Group Member agrees to promptly notify the Issuer and the Managing Broker- Dealer of the commencement of any litigation or proceedings against the Selling Group Member or any of the Selling Group Member's managers, members, partners, officers, directors, employees, agents, attorneys, accountants, and affiliates in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. The indemnity provided to the Managing Broker-Dealer pursuant to this Section 11 shall not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.1. any untrue statement or alleged untrue statement of material fact made by the Managing Broker-Dealer or any agent of the Managing Broker-Dealer, or any omission or alleged omission of a material fact required to be disclosed by the Managing Broker-Dealer or any agent of the Managing Broker- Dealer made in reliance upon and in conformity with written information furnished to the Issuer by the Managing Broker-Dealer specifically for use in the preparation of the Offering Document or any sales literature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.2. the failure to qualify the offer and sale of Securities for an exemption from registration under the Securities Act and applicable state securities laws, rules or regulations caused by an action or omission of the Managing Broker-Dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.3. the offer or sale by the Managing Broker-Dealer of a Security to a person who fails to meet the standards regarding suitability under any applicable federal, state, or FINRA laws, rules, and regulations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.4. the breach by the Managing Broker-Dealer of any term, condition, representation, warranty, obligation, or covenant of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5. The indemnity provided to the Issuer pursuant to this Section 11 shall not apply to the extent that any Loss arises out of or is based upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.1. any untrue statement or alleged untrue statement of material fact made by the Issuer or any agent of the Issuer (other than the Managing Broker-Dealer), or any omission or alleged omission of a material fact required to be disclosed by the Issuer or any agent of the Issuer (other than the Managing Broker-Dealer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.2. the failure to qualify the offer and sale of Securities for an exemption from registration under the Securities Act and applicable state securities laws, rules, or regulations caused by an action or omission of the Issuer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5.3. the breach by the Issuer of any term, condition, representation, warranty, obligation, or covenant in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6. In no case will the Selling Group Member be liable under this Section with respect to any Action made against the Managing Broker-Dealer or the Issuer unless the Managing Broker-Dealer or the Issuer will have been notified in writing of the nature of the Action within a reasonable time after the assertion thereof; <u>provided</u>, <u>that</u> the Selling Group Member will be relieved of its duty to indemnify and hold harmless under this Section if a failure to timely notify the Selling Group Member materially impairs its ability to defend against the Action; but the failure to so notify the Selling Group Member will not relieve the Selling Group Member from any liability that the Selling Group Member would have incurred otherwise than on account of this Section. The Selling Group Member will be entitled to participate, at its own expense, in the defense of or if it so elects within a reasonable time after receipt of such notice, to assume the defense of any claim or suit for which either the Managing Broker-Dealer or the Issuer seeks indemnification hereunder. If the Selling Group Member elects to assume said defense, such defense will be conducted by counsel chosen by it and reasonably satisfactory to the Managing Broker-Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7. In the event that the Selling Group Member elects to assume the defense of any such suit and retain such counsel, the Selling Group Member will not be liable under this Section to the Managing Broker-Dealer or the Issuer for any legal or other expenses subsequently incurred by the Managing Broker- Dealer or the Issuer, and the Managing Broker-Dealer or the Issuer will bear the fees and expenses of any additional counsel retained by either the Managing Broker-Dealer or the Issuer unless: (i) the employment of counsel by either the Managing Broker-Dealer or the Issuer has been authorized in writing by the Selling Group Member; (ii) the Selling Group Member will not in fact have employed counsel to assume the defense of such Action, in which event such fees and expenses will be borne by the Selling Group Member, or (iii) either the Managing Broker-Dealer or the Issuer reasonably believes that it has defenses that are different from or additional to those available to the Managing Broker-Dealer, in either of which events such fees and expenses will be borne by the Managing Broker-Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8. The indemnification provisions provided in this Section 11 are further limited to the extent that no such indemnification will be permitted under this Agreement for or arising out of an alleged violation of federal or state securities laws unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged securities law violations by the party against whom indemnification is sought; (ii) such claims against the party against whom indemnification is sought have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against the party against whom indemnification is sought.

12. <u>Contribution.</u> In order to provide for just and equitable contribution in circumstances in which the indemnification provided pursuant to Sections 9, 10, and 11 is for any reason held to be unavailable from the Issuer, the Managing Broker-Dealer or the Selling Group Members, as the case may be, the Issuer, the Managing Broker-Dealer, and the Selling Group Members shall contribute to the aggregate Loss (including any amount paid in settlement of any action, suit, or proceeding or any claims asserted) in such amounts as a court of competent jurisdiction may determine (or in the case of settlement, in such amounts as may be agreed upon by the parties) in such proportion to reflect the relative fault of the Issuer, the Managing Broker- Dealer, and the Selling Group Members and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants in connection with the events described in Sections 9, 10, and 11, as the case may be, which resulted in such Loss, as well as any other equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Issuer, the Managing Broker-Dealer, and the Selling Group Members and their respective owners, managers, members, trustees, partners, directors, officers, employees, agents, attorneys, and accountants and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such omission or statement. The parties and any person who controls the Managing Broker-Dealer shall also have rights to contribution under this Section 12.

13. <u>Disclaimers; Limitations of Liability.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. <u>Disclaimer.</u> EXCEPT FOR THE WARRANTIES SET FORTH ABOVE, THE SERVICES ARE PROVIDED "AS IS." THE MANAGING BROKER-DEALER DISCLAIMS ALL WARRANTIES: EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT OF THIRD-PARTY RIGHTS. THE MANAGING BROKER-DEALER DOES NOT WARRANT THAT THE SERVICES WILL MEET THE ISSUER'S REQUIREMENTS. THE ISSUER ACKNOWLEDGES THAT UNDER NO CIRCUMSTANCES DOES THE MANAGING BROKER-DEALER REPRESENT OR WARRANT THAT THE ISSUER'S OR AN AFFILIATED ISSUER'S GOALS FOR AN OFFERING WILL BE MET. THE MANAGING BROKER-DEALER IS NOT RESPONSIBLE FOR THE ACCURACY OR COMPLETENESS OF INFORMATION PROVIDED BY OR ON BEHALF OF THE ISSUER OR AN AFFILIATED ISSUER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. <u>Limitations of Liability.</u> EXCEPT AS PROVIDED IN SECTION 13.3, AND EXCEPT TO THE EXTENT PROHIBITED BY LAW:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.1 A PARTY HAS NO LIABILITY TO THE OTHER PARTY OR TO THIRD PARTIES FOR SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOSS OF USE, LOSS OF BUSINESS, LOSS OF PROFITS OR REVENUE, GOODWILL, OR SAVINGS, OR DAMAGE TO, LOSS OF, OR REPLACEMENT OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE SERVICES) RELATING IN ANY MANNER TO THE SERVICES (WHETHER ARISING FROM CLAIMS BASED IN CONTRACT, TORT, OR OTHERWISE), EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH CLAIM OR DAMAGE; AND THE DISCLAIMERS AND LIMITATIONS CONTAINED IN THIS SECTION 13 ARE A FUNDAMENTAL PART OF THE BASIS OF THE BARGAIN HEREUNDER, AND THE MANAGING BROKER-DEALER WOULD NOT PROVIDE THE SERVICES TO THE ISSUER AND THE ISSUER WOULD NOT ENGAGE THE MANAGING BROKER-DEALER WITHOUT THEM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2.2 MANAGING BROKER-DEALER'S TOTAL AGGREGATE LIABILITY FOR CLAIMS ARISING HEREUNDER SHALL BE LIMITED TO DIRECT DAMAGES CAUSED BY MANAGING BROKER-DEALER IN AN AMOUNT NOT TO EXCEED THE AMOUNT OF FEES COLLECTED BY MANAGING BROKER-DEALER UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE OF THE CLAIM GIVING RISE TO THE CLAUSE OF ACTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. <u>Exclusions.</u> The limitations of liability set forth in Section 13.2 do not apply to a party's: (i) obligations under Sections 9, 10, and 11 (Indemnification by Issuer, the Managing Broker-Dealer, and the Selling Group Member, respectively); (ii) obligations under Section 15 (Privacy Act); and (iii) fraud, gross negligence, or intentional misconduct.

NOTWITHSTANDING ANY TERMS TO THE CONTRARY HEREIN AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE MANAGING BROKER-DEALER'S ENTIRE LIABILITY FOR SERVICES UNDER THIS AGREEMENT IS LIMITED TO TWO MILLION DOLLARS ($2,000,000.00) IN THE AGGREGATE FOR THE TERM OF THE AGREEMENT.

14. <u>Compliance.</u> All actions, direct or indirect, by the Managing Broker-Dealer and its agents, members, employees, and affiliates, shall conform to (i) requirements applicable to broker-dealers under federal and applicable state securities laws, rules, and regulations and (ii) applicable requirements and rules of FINRA.

15. <u>Privacy Act.</u> To protect Customer Information (as defined below) and to comply as may be necessary with the requirements of the Gramm-Leach-Bliley Act, the relevant state and federal regulations pursuant thereto, and state privacy laws, the parties wish to include the confidentiality and non-disclosure obligations set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. "Customer Information" means any information contained on a customer's application or other form and all nonpublic personal information about a customer that a party receives from the other party. Customer Information shall include, but not be limited to, name, address, telephone number, social security number, health information and personal financial information (which may include consumer account number).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. The parties understand and acknowledge that they may be financial institutions subject to applicable federal and state customer and consumer privacy laws and regulations, including Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801, et seq.) and regulations promulgated thereunder (collectively, the "Privacy Laws"), and any Customer Information that one party receives from the other party is received with limitations on its use and disclosure. The parties agree that they are prohibited from using the Customer Information received from the other party other than (i) as required by law, regulation, or rule; or (ii) to carry out the purposes for which one party discloses Customer Information to the other party pursuant to this Agreement, as permitted under the use in the ordinary course of business exception to the Privacy Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. The parties shall establish and maintain safeguards against the unauthorized access, destruction, loss, or alteration of Customer Information in their control which are no less rigorous than those maintained by a party for its own information of a similar nature. In the event of any improper disclosure of any Customer Information, the party responsible for the disclosure will immediately notify the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. The Managing Broker-Dealer may disclose, without prior notice, Customer Information to the applicable regulatory authority (including FINRA) as required or requested pursuant to regulation or in the course of an audit, investigation, or examination. Nothing in this Agreement prohibits a party from initiating communications directly with, responding to any inquiry from, or providing testimony before the SEC, FINRA, any other self-regulatory organization, or any other state or federal regulatory authority regarding a party's actions under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. The provisions of this Section 15 shall survive the termination of this Agreement.

16. <u>Survival.</u> Except as the context otherwise requires, all representations, warranties, and agreements contained in this Agreement shall be deemed to be representations, warranties, and agreements at and as of the Offering Termination Date, and such representations, warranties, and agreements by the Managing Broker-Dealer or the Issuer, including the indemnity agreements contained in Sections 9, 10, and 11 and the contribution agreements contained in Section 12 shall remain operative and in full force and effect regardless of any investigation made by the Managing Broker-Dealer, the Issuer, and/or any controlling person, and shall survive the sale of, and payment for, the Securities.

17. <u>Costs of the Offering.</u> Except for the compensation payable to the Managing Broker-Dealer and the Allowances and reimbursements described in Section 7, which are the sole obligations of the Issuer or its affiliates, the Managing Broker-Dealer will pay all of its own costs and expenses, including, but not limited to, all expenses necessary for the Managing Broker-Dealer to remain in compliance with any applicable federal, state, or FINRA laws, rules, or regulations in order to participate in the Offering as a broker-dealer, and the fees and costs of the Managing Broker-Dealer's counsel. The Issuer agrees to pay all other expenses incident to the performance of its obligations hereunder, including all expenses incident to filings with federal and state regulatory authorities and to the exemption of the Securities under federal and state securities laws, including fees and disbursements of the Issuer's counsel, and all costs of reproduction and distribution of the Offering Document and any amendment or supplement thereto.

18. <u>Term and Termination.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1. The term of this Agreement shall continue from the Effective Date until the Offering is Complete (the "Term"). "Complete" means the earlier of: (i) the Offering Termination Date; (ii) the Offering is expired by its own terms; (iii) the Offering is withdrawn by the Issuer; or (iv) the termination of the Agreement pursuant to the terms of Section 18.2, Section 18.3, and Section 18.4, below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2. This Agreement is terminable by either party without cause upon ninety (90) days prior written notice to the party, subject to the terms of Section 22, below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3. A party hereto may immediately terminate this Agreement at any time by giving written notice of such termination to the other party if the other party materially breaches the terms of this Agreement and fails to remedy or cure such breach within thirty (30) days of the date it becomes aware of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4. Either party may immediately terminate this Agreement at any time by giving written notice of such termination to the other party if (i) such other party or any agent or representative thereof commits or causes the terminating party to commit a material violation of any applicable laws, rules or regulations, or (ii) such other party commits or engages in willful misconduct, gross negligence, fraud or bad faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5. Any such termination pursuant to the terms of this Section 18 shall not affect the indemnification agreements set forth in Sections 9, 10, and 11 or the contribution agreements set forth in Section 12. Additionally, any termination of this Agreement by the Managing Broker-Dealer pursuant to the terms of Sections 18.3 and 18.4, above, shall be subject to Section 22, below.

19. <u>Governing Law.</u> This Agreement shall be governed by, subject to, and construed in accordance with, the laws of the state of Delaware without regard to conflict of law provisions.

20. <u>Venue.</u> Any dispute relating to or arising out of this Agreement shall be resolved through the Arbitration provisions described herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1. <u>Arbitration</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.1. Except for the Arbitration Exceptions in Section 20.2 below, the parties agree that all controversies arising out of or relating to this Agreement or an Offering will be settled by arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.2. The arbitration will be in accordance with FINRA's rules then in effect, unless FINRA declines jurisdiction or FINRA jurisdiction is clearly not invoked by the nature of at least one of the claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.3. If FINRA jurisdiction does not apply as set forth in Section 20.2.2, then the controversy will be settled by arbitration under the American Arbitration Association, and its Supplementary Procedures for Securities Arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2. The Arbitration Exceptions are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.1. A party may seek injunctive or other equitable relief in any state or federal court of competent jurisdiction for any actual or alleged infringement of any intellectual property or other proprietary rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.2. Either party may seek the relief set forth in Section 18 or any other damages contemplated herein in a state or federal court located either: (x) where the defendant resides or has assets; or (y) in Richmond, Virginia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.3. A party may bring suit in the Richmond General District Court, located in Richmond, Virginia for amounts in controversy that do not exceed $25,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3. Unless FINRA or American Arbitration Association rules apply and dictate otherwise, and except as stated above, the venue for any dispute will be in the state or federal courts in Richmond, Virginia.

21. <u>Severability.</u> If any portion of this Agreement shall be held invalid or inoperative, then so far as it is reasonable and possible (i) the remainder of this Agreement shall be considered valid and operative, and (ii) effect shall be given to the intent manifested by the portion held invalid or inoperative.

22. <u>Liquidated Damages for Early Termination.</u> The parties acknowledge and agree that if the Issuer terminates this Agreement for its convenience prior to the agreed upon conclusion of the Offering, then: (i) the limitations of liability in this Agreement do not apply to the Issuer; (ii) the actual and consequential damages suffered by the Managing Broker-Dealer are uncertain and difficult to calculate with exactness as of the Effective Date; (iii) the amount fixed as liquidated damages payable to the Managing Broker-Dealer is set forth below (the "Liquidated Damages"); (iv) the Liquidated Damages are fair, and not disproportionate to the Managing Broker-Dealer's probable loss; and (v) the Issuer waives the right to object to the validity of the Liquidated Damages on the grounds that they are void as penalties or are not reasonably related to actual damages. The Liquidated Damages are equal to ninety (90) days of Managing Broker-Dealer's anticipated revenue under the Offering based on the revenue collected or collectible by Managing Broker-Dealer for the 90-day period prior to the effective date of termination. The Managing Broker-Dealer is entitled to recover its reasonable attorneys' fees if it prevails in an action seeking Liquidated Damages.

23. <u>Counterparts.</u> This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, and together which shall constitute one and the same instrument.

24. <u>Modification or Amendment.</u> This Agreement may not be modified or amended except by written agreement executed by the parties hereto.

25. <u>Notices.</u> All communications hereunder, except as herein otherwise specifically provided, shall be in writing and, (i) if sent to the Managing Broker-Dealer, shall be mailed or delivered to WealthForge Securities, LLC, 3015 W. Moore Street, Suite 102, Richmond, Virginia 23230, Attn: Legal or (ii) if sent to the Issuer, shall be mailed or delivered to 718 N Washington Ave 4th floor, Minneapolis, MN 55401. The notice shall be deemed to be received on the date of its actual receipt by the party entitled thereto.

26. <u>Assignment.</u> Neither party may assign, delegate, or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the other party. Notwithstanding the foregoing, the Managing Broker-Dealer may, without the consent of Issuer, assign this Agreement or rights granted hereunder to: (x) an affiliate or subsidiary, or (y) a successor entity in the event of a merger, corporate reorganization, acquisition, or the sale of all or substantially all of the Managing Broker-Dealer's assets, provided that the assignee shall assume all rights and obligations under this Agreement. Any unauthorized assignment shall be null and void and constitute a breach of this Agreement.

27. <u>Publicity.</u> The Managing Broker-Dealer may reference the Issuer and the Offering by name and include other information about the Offering as permitted by 17 C.F.R. 230.134(a) in marketing materials for the Managing Broker-Dealer's benefit.

28. <u>Parties.</u> This Agreement shall be binding upon and inure solely to the benefit of the parties hereto, the parties referred to in Sections 9, 10, 11, and 12, their respective successors and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under, in respect of, or by virtue of, this Agreement or any provision herein contained.

29. <u>Delay.</u> Neither the failure nor any delay on the part of any party to this Agreement to exercise any right, remedy, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall a waiver of any right, remedy, power, or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power, or privilege with respect to any subsequent occurrence.

30. <u>Non-Solicitation.</u> Each party agrees that it will not solicit, offer work to, employ, or contract with, one or more of the other party's or its Affiliates' Team Members. The restriction in the prior sentence: (i) applies until the Offering Termination Date and during the twelve (12) months immediately following the conclusion of Offering; and (ii) does not apply to the hiring of a Team Member that responds to a general newspaper or Internet advertisement or other solicitations not targeting the Team Member. If a party breaches this Section 30, then upon request the breaching party will pay to the non-breaching party the greater of one (1) year's compensation: (x) offered to the Team Member by the breaching party; or (y) paid by the non-breaching party to the Team Member at the time of the breach. The parties waive the right to object to the validity of the agreed damages for the breach of this section on the grounds that they are void as penalties or are not reasonably related to actual damages. If request for payment under this section is made and not timely remitted and if the non-breaching party files suit, then the non-breaching party may claim all damages available to it as allowed by law in addition to or instead of the amounts set forth in this Section 30.

31. <u>Recovery of Costs.</u> If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party shall be entitled to recover reasonable attorneys' fees and other costs incurred in that action or proceeding (and any additional proceeding for the enforcement of a judgment) in addition to any other relief to which it or they may be entitled.

32. <u>Entire Agreement.</u> This Agreement contains the entire understanding between the parties hereto and supersedes any prior understandings or written or oral agreements between them respecting the subject matter hereof.

33. <u>Confirmation.</u> The Issuer agrees to confirm all orders for purchase of Securities that are accepted by the Issuer and provide such confirmation to the Managing Broker-Dealer and the Selling Group Members.

34. <u>Due Diligence.</u> The Issuer will authorize a collection of information regarding the Offering (the "Due Diligence Information"), which collection the Issuer may amend and supplement from time to time, to be delivered by the Managing Broker-Dealer to the Selling Group Members (or their agents performing due diligence) in connection with their due diligence review of the Offering. In the event a Selling Group Member (or its agent performing due diligence) requests access to additional information or otherwise wishes to conduct additional due diligence regarding the Offering, the Issuer and the Managing Broker- Dealer will reasonably cooperate with such Selling Group Member to accommodate such request. All Due Diligence Information received by the Managing Broker-Dealer and/or the Selling Group Members in connection with their due diligence review of the Offering are confidential and shall be maintained as confidential and not disclosed by the Managing Broker-Dealer or the Selling Group Members except to the extent such information is disclosed in the Offering Document.

IN WITNESS WHEREOF, this Agreement has been executed as of the Effective Date.

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| | |
|:---|:---|
| ISSUER: | ISSUER: |
| Gratus Properties Fund III, LLC | Gratus Properties Fund III, LLC |
| By: | ![](gratus_ex11img26.jpg) |
| Name: | Robert Barlau |
| Title: | Manager |
| MANAGING BROKER-DEALER: | MANAGING BROKER-DEALER: |
| WealthForge Securities, LLC, a Virginia limited liability company | WealthForge Securities, LLC, a Virginia limited liability company |
| By: | ![](gratus_ex11img27.jpg) |
| Name:  | Jim Raper |
| Title: | Chief Compliance Officer |

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[Signature Page to Managing Broker-Dealer Agreement]

**Addendum**

**<u>Definitions Exhibit</u>**

a. "Action" means a third-party claim or legal action or administrative proceeding of an action.

b. "Advertising Materials" means, but is not limited to, websites, offering landing pages, emails, and all written materials about an Offering provided by the Issuer, or any party acting as the Issuer's agent or on the Issuer's behalf to the Issuer's knowledge, to Prospective Subscribers, and all written materials that include a disclaimer stating that securities are offered through the Managing Broker-Dealer, or otherwise mentions the Managing Broker-Dealer.

c. "Affiliate" means a person or entity controlling, controlled by, or under common control with a party.

d. "Allowances" means marketing allowances, diligence expenses, and other reimbursements or fees the Issuing Party or other party has agreed to pay in the Offering Materials for an Offering.

e. "Commissions" means the amount of sales commissions the Issuing Party has agreed to pay in an Offering to the party making Retail Introductions or Wholesale Introductions. Commissions are independent from Allowances.

f. "Compensated Solicitor" means all persons who will receive compensation, directly or indirectly, for soliciting Prospective Subscribers by, through, or on behalf of the Managing Broker-Dealer for an Offering. Compensated Solicitors include agents of Selling Group Members and Issuer-Affiliated Representatives and all Other MBD Representatives.

g. "Covered Person" means all directors, executive officers, general partners, managing members, other officers participating in an Offering, or beneficial owners of 20% or more of outstanding voting equity securities, calculated on the basis of voting power.

h. "Engagement Fee" means the initial Fee due from Issuer upon execution of the Agreement, which is comprised of the initial Platform and Syndication Fees.

i. "Escrow Bank" means the agreed upon federally chartered financial institution designated to hold Subscriber Funds prior to Escrow Release.

j. "Escrow Release" means each distribution of Subscriber funds to the Issuing Party, or to the Managing Broker-Dealer on the Issuing Party's behalf, by the escrow agent.

k. "Fees" means the various fees described more particularly in the Fee Addendum.

l. "Fee Addendum" means the fee addendum attached to Exhibit B.

m. "FinCEN" means the Financial Crimes Enforcement Network.

n. "Gross Proceeds" means the aggregate gross proceeds received from the sale of Securities for which the Managing Broker-Dealer provides Services under this Agreement.

o. "Indemnified Party" means a party that has exercised its right to indemnification.

p. "Individual Investment" means a single transaction for which the Managing Broker-Dealer provides Services where an Issuer accepts and receives funds from a Subscriber.

q. "Investor" means an individual or entity who has completed an Individual Investment in an Offering.

r. "Issuer-Affiliated Representative" means a registered representative affiliated with the Managing Broker-Dealer that is also the Issuer's employee, shareholder, member, officer, board member, or owner.

s. "Issuing Party" means the party that is issuing the Securities in an Offering. Unless there is an issuer-affiliated issuer, or an entity that is an issuer of Securities that is the Issuer's affiliate, the Issuer is the Issuing Party.

t. "Major Offering Impediment" means the following relating to an Offering: potential litigation, a violation of applicable law or regulation, a circumstance which would preclude an Offering from exemption from registration pursuant to Section 4(a)(2) of the Securities Act; a state or SEC sanction or investigation; or a circumstance that, when reasonably evaluated, creates a material adverse effect on the Issuer's ability to raise capital in the Offering.

u. "Maintenance Fee" means the Fee payable by the Issuer to the Managing Broker-Dealer, which covers the Managing Broker-Dealer's due diligence activities, advertising review, and other related services necessary for the maintenance of the Offering.

v. "MBD Representative" means all registered representatives affiliated with the Managing Broker- Dealer. MBD Representatives include the Issuer-Affiliated Representatives and Other MBD Representatives.

x. "Notice of Offering" means the document that the Managing Broker-Dealer and the Issuer will sign upon the Managing Broker-Dealer's approval of the Offering.

y. "Offering Materials" means all written or oral communications the Issuer intends to provide a Prospective Subscriber related to an Offering, including, as applicable, the Offering Document, operating agreement, subscription agreement, and Advertising Materials.

z. "Offering Termination Date" means the date referred to in the Offering Document as the expected closing date for the Offering.

aa. "Outside Services" means services for an Offering that the Managing Broker-Dealer or its contractors do not perform that would be in the scope of this Services for that Offering.

bb. "Platform and Syndication Fee" means the Fee payable by the Issuer to the Managing Broker- Dealer upon the Agreement Effective Date and monthly thereafter and which compensates the Managing Broker-Dealer for its Services related to the Offering including syndication and investor processing.

cc. "Prospective Subscriber" means an individual or entity that may be eligible to purchase Securities in an Offering.

dd. "Regulatory Filing Services" means filing applicable required federal and/or state regulatory filings related to the Offering.

ee. "Remaining Funds" means funds: (x) that remain in escrow when the Managing Broker-Dealer's MBD Services or BDR Services end because (i) the Issuer elects to discontinue those Services for an Offering and does not have a termination right under this Agreement to do so or (ii) the Managing Broker- Dealer terminates its Services for an Offering for material breach; and (y) for which the Managing Broker- Dealer performed MBD Services or BDR Services on behalf of the Issuer for the corresponding Subscriber; and (z) that the Issuer has discretion to accept and elects not to accept.

ff. "Rep Supervision Services" means the Managing Broker-Dealer's Services to supervise Issuer- Affiliated Representatives as initiated by a Registered Representative Supervision Agreement.

gg. "Retail Introductions" means when an MBD Representative introduces Prospective Subscribers to an Offering, which may include distributing Offering Materials. Retail Introductions may include introductions to all types of Prospective Subscribers, including institutional investors.

hh. "Securities" means the debt or equity securities that the Issuing Party makes available in an Offering.

ii. "Selling Group Member" means a financial intermediary that has demonstrated interest in introducing Prospective Subscribers to an Offering, including other broker-dealers, registered investment advisors, and other intermediaries and their respective representatives.

jj. "Service Schedule" refers to the Broker-Dealer Service Schedule attached as Exhibit B.

kk. "Sponsor" means the entity that organizes and initiates a securities transaction either directly or indirectly, including through an Affiliate, to the Issuer or Issuing Party.

ll. "Subscriber" means an individual or entity that has submitted an order to purchase Securities.

mm. "Subscription Agreement" means an agreement that a Prospective Subscriber executes to place a subscription for Securities. Upon executing a Subscription Agreement, the Prospective Subscriber is a Subscriber.

nn. "Subscription Documents" means the documents a Prospective Subscriber completes, which will be either accepted or rejected by the Issuer or the Issuing Party.

oo. "Team Member" means an individual: (x) that a party or its Affiliate employs as a partner, employee, or individual independent contractor; and (y) with which the other party comes into direct contact in the course of this Agreement.

pp. "Transaction Fee" means the fees collected by the Managing Broker-Dealer as compensation pursuant to its role as MBD and BDR.

**EXHIBIT A**

**SOLICITING DEALER AGREEMENT**

**EXHIBIT B**

**<u>BROKER-DEALER SERVICE SCHEDULE</u>**

This Broker-Dealer Service Schedule ("Service Schedule") with an effective date of _______11/25/2024________(the "Effective Date"), is made by and between WealthForge Securities, LLC (the "Managing Broker-Dealer"), a Virginia limited liability company, and Gratus Properties Fund III, LLC (the "Issuer"), a Delaware limited liability company, pursuant to the Managing Broker-Dealer Agreement, with an effective date of ______11/25/2024__________ made by and between the Managing Broker-Dealer and the Issuer (the "Agreement"). All capitalized terms not defined herein shall have the meaning ascribed to them in the Agreement.

1. <u>Overview</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This Service Schedule governs the Managing Broker-Dealer's provision of Broker-Dealer Services to the Issuer as further set forth below. The Managing Broker-Dealer provides the Services under this Service Schedule independently of its Affiliates and the obligations and benefits of the Managing Broker- Dealer under this Service Schedule are those of the Managing Broker-Dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. If set forth on the Fee Addendum or other mutually-executed writing, the Managing Broker-Dealer may provide Rep Supervision Services as further set forth in the Registered Representative Supervision Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Issuer agrees to maintain, at a minimum, all Services opted-into as of the Effective Date through the termination or expiration of this Agreement, subject to the terms of this Services Schedule and the Agreement.

2. <u>Definitions.</u> Definitions for Broker-Dealer Services are found on the Definitions Exhibit addendum attached to the Agreement, which is incorporated by reference.

3. <u>Managing Broker-Dealer Services.</u> The Managing Broker-Dealer conducts the following Managing Broker-Dealer Services (the "MBD Services") for an Offering subject to the terms specified herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Manage a syndicate of Selling Group Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Perform diligence on Selling Group Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Administer for the Issuer's benefit the commissions for the Selling Group Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Process deposits by Subscribers and execute accepted orders. The Managing Broker-Dealer provides reports to the Issuer regarding each Offering's status as agreed between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Conduct the following diligence before it starts accepting subscriptions on the Issuer's behalf:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Bad Actor Checks on Covered Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Independent diligence services on claims and material representations that the Issuer makes in its Offering Materials; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Review and provide feedback regarding Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. If the Offering requires an escrow account for the Managing Broker-Dealer to perform its Services, then the Managing Broker-Dealer will facilitate execution of a tri-party escrow agreement between the Managing Broker-Dealer, the Issuer, and a bank that serves as an escrow agent and trustee of Subscriber funds in compliance with Rule 15c2-4 of the Securities Exchange Act of 1934, as amended. The Managing Broker-Dealer directs payments from Subscribers into a third-party escrow account and notifies the escrow agent of a request to distribute funds to the Issuer (and to the Managing Broker-Dealer for Fees that the Issuer owes to the Managing Broker-Dealer) to effectuate a closing of each Individual Investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Maintain records as required under applicable law and regulation for all closed Individual Investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. In addition to conducting its required due diligence on the Offering, the Managing Broker-Dealer will, or will have within the previous six months, conduct due diligence on the Registered Investment Advisors ("RIA's") who have access to the Offering. Specifically, the Managing Broker-Dealer will review the RIA's disciplinary history, review Form ADV (including the RIA's Regulation BI disclosure), and take reasonable steps to ensure the RIA and its investment advisor representatives are not bad actors under the definition of 17 C.F.R. 230.262.

4. <u>Broker-Dealer of Record Services.</u> The Managing Broker-Dealer conducts the following B-D of Record Services (the "BDR Services") for subscriptions that come to the Managing Broker-Dealer from: (i) investors provided by the Managing Broker-Dealer retail representatives; or (ii) direct from Sponsor investors, or investors coming to the Managing Broker-Dealer as a direct result of the Managing Broker- Dealer's relationship with the Sponsor, both of which are subject to the terms specified herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. If necessary, provide funding processing services for Subscribers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Provide Anti-Money Laundering monitoring services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Conduct OFAC checks on each Subscriber and applicable parties related to the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Provide FinCEN checks on each Investor, for six (6) months after the completion of each Individual Investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Conduct investor suitability and "know-your-client" diligence for each subscriber and beneficial owners of entities, as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. In addition to the Transaction Fee, the Issuer shall also remit to the Managing Broker-Dealer all applicable Retail Commissions and Retail Allowances, which the Managing Broker-Dealer will re-allow to Managing Broker-Dealer sales representatives, as applicable to any Transaction.

5. The Managing Broker-Dealer provides Regulatory Filing Services *unless* the Issuer and the Managing Broker-Dealer otherwise agree in writing. In providing these Services, the Managing Broker- Dealer shall file on the Issuer's behalf all required federal and state filings, including notice filings. The Fee for Regulatory Filing Services is the per-filing rate set forth on the Fee Addendum, plus all filing costs, which vary by jurisdiction.

6. <u>Retail and Wholesale Services.</u> The Managing Broker-Dealer may also provide Retail Services and Wholesale Services through Issuer-Affiliated Representatives and other registered representatives as set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Retail Services.</u> Issuer Affiliated Representatives and Other MBD Representatives may sell the Offering directly to retail investors ("Retail Services") only if specified in this Services Schedule, which means the Managing Broker-Dealer, through its representatives will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Use reasonable efforts to identify Prospective Subscribers for the Offering and make Retail Introductions directly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Market the Offering by making available the Offering Materials to Prospective Subscribers and responding to inquiries and requests for information to convert Prospective Subscribers into Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Offer the Securities as a broker, but all sales are made by Issuing Party acting through the Managing Broker-Dealer as a broker, and not by the Managing Broker-Dealer as a dealer or an underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Provisions Pertaining to Retail Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Managing Broker-Dealer will direct all MBD Representatives to provide Prospective Subscribers with a copy of the Offering Materials and advise each Prospective Subscriber at the time of the initial offering to him or her that the Issuing Party will, during the course of the Offering and prior to any sale, give each Prospective Subscriber the opportunity to: (x) ask questions of and to receive answers from the Issuing Party, concerning the terms and conditions of the Offering; and (y) obtain additional information the Issuing Party possesses or that it may obtain without unreasonable effort or expense that is necessary to verify the accuracy of the information in the Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Prior to making any sale of the Securities, the Managing Broker-Dealer will instruct all MBD Representatives to inform Prospective Subscribers and their representatives, if any, of all pertinent facts relating to the liquidity and marketability of the Securities, as the pertinent facts are set forth in the Offering Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Wholesale Services.</u> Issuer-Affiliated Representatives may engage in wholesaling efforts, which means marketing the Offering to financial intermediaries that may or may not be current Selling Group Members ("Wholesale Services").

7. <u>RIA Agreement.</u> Prior to or concurrent with the acceptance of any Subscription Documents provided for under the Agreement, the Managing Broker-Dealer will enter into an agreement with each RIA governing the obligations of that RIA and its Affiliates with respect to the sale of the Securities, a form of which has been provided to the Managing Broker-Dealer by Issuer and which has been agreed to by the Managing Broker-Dealer and the Issuer or with respect to the sale of Offerings. The Managing Broker- Dealer and the Issuer are third-party beneficiaries of the RIA's obligations under that agreement, including the RIA's representations and warranties, indemnification, and other obligations such as those pertaining to KYC, suitability, best interest determinations, and electronic signatures. The Managing Broker-Dealer shall review the Form ADV for any RIA with whom it enters into a Registered Investment Advisor Agreement.

8. <u>Fees.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Managing Broker-Dealer shall be due Transaction Fees as compensation for MBD Services and BDR Services. The Offering Materials may also provide for Retail Commissions and Retail Allowances, which are payable to the Managing Broker-Dealer as set forth herein and may be re-allowed to service providers for the Offering, including Selling Group Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Transaction Fees under this Agreement shall be as described in the Fee Addendum attached to this Service Schedule hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. If: (x) the Issuer elects to discontinue MBD Services or BDR Services for an Offering and does not have a termination right under this Agreement to do so, or if the Managing Broker-Dealer terminates its Services for an Offering for material breach; and (y) there are Remaining Funds, then upon invoice from the Managing Broker-Dealer: the Issuer shall pay the Managing Broker-Dealer the Transaction Fee for the Remaining Funds as if the Remaining Funds were Gross Proceeds of an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Amounts in Escrow.</u> Where an escrow account is in place: the Managing Broker-Dealer may withhold all transaction-based fees and commissions and all other Fees that the Issuer owes under this Service Schedule out of the amounts held in escrow upon Escrow Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Beginning on January 1, 2027, and annually thereafter, the Managing Broker-Dealer may, in its sole discretion, increase each Fee described in the Fee Addendum, annually, on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. All Fees will be adjusted in direct proportion based on the percentage change in the U.S. City Average Consumer Price Index for all Urban Consumers (All Items) (the "CPI-U") as reported by the Bureau of Labor Statistics, with the index calculated using the base period of 1982-1984=100, between the average of the prior calendar year and the then current calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Notwithstanding the foregoing, annually each Fee, if changed, will be adjusted no less than two and a half percent (2.5%) and no more than five percent (5%); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The Managing Broker-Dealer shall provide at least thirty (30) days prior written notice of any and all such Fee changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. This Service Schedule, including the Fee Addendum, sets forth the maximum Fee the Managing Broker-Dealer may charge for the applicable Service unless otherwise agreed in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Overdue Fees under this Service Schedule, and the Registered Representative Supervision Agreement, are subject to: (x) interest of eighteen percent (18.0%) per annum or the maximum rate permissible by law, whichever is less; and (y) all costs of collection, including attorney's fees.

**Addendum to Broker-Dealer Service Schedule**

**<u>Fee Addendum</u>**

Pursuant to the Services described in this Services Schedule, the parties agree that the Fees described below (collectively comprising the Transaction Fees) will apply, as applicable, to the various Services ordered by the Issuer from the Managing Broker-Dealer:

1. **Fee Summary**. The following Fees may apply to the Services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **<u>Platform and Syndication Fee:</u>** $1,500 monthly

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b. Maintenance Fee: N/A**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **<u>Performance Fees:</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>MBD Service Fee:</u> 40 bps

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>BDR Service Fee:</u> N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Wholesaling Fee:</u> N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Retail Commissions and Allowances:</u> N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Regulatory Filing Services Fees, if applicable</u>: $350.00 each for all required federal and state filings, including notice filings plus filing costs for each jurisdiction, which vary by jurisdiction (inclusive of Form 5110).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Marketing Allowance, if applicable:</u>

Invoicing will start upon the qualification of the Offering. All subsequent invoices will be due monthly, in advance, and will be prorated per month as necessary.

**<u>Broker Affiliation and Supervision Fees and Services</u>** detailed in the Registered Representative Supervision Agreement.

**<u>EXHIBIT C</u>**

![](gratus_ex11img28.jpg)

**<u>NOTICE OF OFFERING</u>**

This Notice of Offering, effective<u> </u>, is between WealthForge Securities, LLC, a Virginia limited liability company, and<u> </u> ("Issuer") and is incorporated by reference into the Managing Broker-Dealer Agreement between the parties effective<u> </u>.

**<u>Name of Offering:</u>**

**<u>Registration Type:</u>**

**<u>Maximum/Minimum Amount of Raise:</u>**

**<u>Is there a contingency for the first Escrow Release for the Offering?</u>**

**<u>Is WealthForge providing Broker-Dealer of Record services for RIA Investments?</u>**

**<u>Compensation:</u>** [\*\*]

**<u>Other Terms:</u>**

In witness hereof, the parties have caused this Agreement to be duly executed by an authorized representative:

---

| | |
|:---|:---|
| **MANAGING BROKER-DEALER:** | **ISSUER:** |
| WealthForge Securities, LLC |  |
| **By:**  | **By:** |
| **Name:** | **Name:** |
| **Title:** | **Title:** |
| **Date:** | **Date:** |

---

## Ex1A-2A

**EXHIBIT 2.2**

STATE OF DELAWARE

CERTIFICATE OF FORMATION

OF LIMITED LIABILITY COMPANY

The undersigned authorized person, desiring to form a limited liability company pursuant to the Limited Liability Company Act of the State of Delaware, hereby certifies as follows:

1. The Name of the limited liability company is:

Gratus Capital Properties fund III LLC<br>

2. The Registered Office of the limited liability company in the State of Delaware is located at:

1209 Orange Street, Wilmington DE19801<br>

The name of the Registered Agent at such address upon whom process against this limited liability company may be served is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Registered Agents, Inc.<br>

---

| | |
|:---|:---|
| By: | Clemen Cunningham |
|  | Authorized Person |
| Name | Clemen Cunningham |
|  | Print of Type |

---

**<u>Delaware</u>**

The First State

*I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF FORMATION OF "GRATUS CAPITAL PROPERTIES FUND III LLC", FILED IN THIS OFFICE ON THE TENTH DAY OF NOVEMBER, A.D, 2020, AT 2:53 O'CLOCK P.M.*

---

| | | |
|:---|:---|:---|
|  | <br> ![](gratus_ex22img9.jpg) | ![](gratus_ex22img8.jpg) |
|  | <br> ![](gratus_ex22img9.jpg) |  |
| 4108508 8100<br> SR# 20208325000 |  | Authentication: 204052312<br> Date: 11-10-20 |
| You may verify this certificate online at corp.delaware.gov/author.shtml | You may verify this certificate online at corp.delaware.gov/author.shtml |  |

---

## Ex1A-4

**EXHIBIT 4.1**

**<u>SUBSCRIPTION AGREEMENT</u>**

**SUBSCRIPTION AGREEMENT** (the "**Subscription Agreement**") made as of the date entered into below, by and between Gratus Capital Properties Fund III LLC a Delaware Limited Liability Company (the "**Issuer**"), and the undersigned (the "**Subscriber**" or "**You**").

**WHEREAS,** pursuant to the Offering Circular (the "**Offering Circular**"), the Issuer is offering in a Regulation A offering (the "**Offering**") to investors Class A Interests and Class B Interests (collectively "**Interests**") at a purchase price of between $12.29 and $13.08 per Interest (depending on the intermediaries through which the investment is made) for a maximum aggregate purchase price of $50,000,000 (the "**Maximum Offering**").

**WHEREAS**, the Subscriber desires to subscribe for the number and class of Interests set forth on the signature page hereof, on the terms and conditions hereinafter set forth.

**NOW, THEREFORE**, for and in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows:

**I.** **SUBSCRIPTION FOR AND REPRESENTATIONS AND COVENANTS OF SUBSCRIBER** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Subject to the terms and conditions hereinafter set forth, the Subscriber hereby subscribes for and agrees to purchase from the Issuer the number of Interests set forth on the signature page hereof, at a price of between $12.29 and $13.08 per Interest (depending on the intermediaries through which the investment is made), and the Issuer agrees to sell such Interests to the Subscriber for said purchase price, subject to the Issuer's right to sell to the Subscriber such lesser number of (or no) Interests as the Issuer may, in its sole discretion, deem necessary or desirable. The purchase price in connection with subscriptions for shares are to be sent by check, wire, or ACH transfer made payable to: Atlantic Capital Bank for the benefit of Gratus Capital Properties Fund III, LLC and sent to Atlantic Capital Bank, N.A., in its capacity as escrow agent for the Company, where they will be held in a non-interest-bearing escrow account until the Subscriber is issued the Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The Subscriber has full power and authority to enter into and deliver this Subscription Agreement and to perform its/his/her obligations hereunder, and the execution, delivery and performance of this Subscription Agreement has been duly authorized, if applicable, and this Subscription Agreement constitutes a valid and legally binding obligation of the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 The Subscriber acknowledges receipt of the Offering Circular, all supplements to the Offering Circular, and all other documents furnished in connection with this transaction by the Issuer (collectively, the "**Offering Documents**"). The Subscriber also acknowledges receipt and acceptance of the terms of the WealthForge Privacy Policy, which governs WealthForge's treatment of personal information provided by the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 The Subscriber recognizes that the purchase of the Interests involves a high degree of risk in that (i) an investment in the Issuer is highly speculative and only investors who can afford the loss of their entire investment should consider investing in the Issuer and the Interests; (ii) the Interests are being sold pursuant to an exemption under Regulation A issued by the Securities and Exchange Commission ("**SEC**") under the Securities Act of 1933, as amended (the "**Act**"), but they are not registered under the Act or any state securities law; (iii) there is no public market for the Interests, and no public market is expected to develop following this offering, and thus, the Subscriber may not be able to liquidate his, her or its investment because such investment is illiquid and is expected to continue to be illiquid for an indefinite period of time; (iv) an investor could suffer the loss of his, her or its entire investment and (v) this investment is suitable only for persons who can bear the economic risk for an indefinite period of time and who can afford to lose their entire investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 The Subscriber is an "accredited investor," as such term is defined in Rule 501 of Regulation D promulgated under the Act, and the Subscriber is able to bear the economic risk of an investment in the Interests **OR** the purchase price tendered by Subscriber does not exceed 10% of the greater of the Subscriber's annual income or net worth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 The Subscriber is not relying on the Issuer or its affiliates or agents with respect to economic considerations involved in this investment. The Subscriber has relied on the advice of, or has consulted with, only his, her or its Advisors, if any. Each Advisor, if any, is capable of evaluating the merits and risks of an investment in the Interests as such are described in the Offering Circular, and each Advisor, if any, has disclosed to the Subscriber in writing (a copy of which is annexed to this Subscription Agreement) the specific details of any and all past, present or future relationships, actual or contemplated, between the Advisor and the Issuer. Each Subscriber represents and warrants that either it or its Advisor(s) have determined that subscriber can bear the economic risk of an investment in the Interests for an indefinite period of time and can afford to lose their entire investment, and as such concluded that they meet the suitability requirements set forth in the Offering Circular and in Section 1.4 above. Subscriber understands that the Issuer will not be conducting an independent analysis of whether the Subscriber meets the suitability requirements for this investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 The Subscriber has prior investment experience (including investment in non-listed and non-registered securities), has (together with his, her or its Advisors, if any) such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the prospective investment in the Interests and has read and evaluated, or has employed the services of an investment advisor, attorney or accountant to read and evaluate, all of the documents furnished or made available by the Issuer to the Subscriber, including the Offering Circular, as well as the merits and risks of such an investment by the Subscriber. The Subscriber's overall commitment to investments, which are not readily marketable, is not disproportionate to the Subscriber's net worth, and the Subscriber's investment in the Interests will not cause such overall commitment to become excessive. The Subscriber, if an individual, has adequate means of providing for his or her current needs and personal and family contingencies and has no need for liquidity in his or her investment in the Interests. The Subscriber is financially able to bear the economic risk of this investment, including the ability to afford holding the Interests for an indefinite period or a complete loss of this investment. If other than an individual, the Subscriber also represents it has not been organized solely for the purpose of acquiring the Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 The Subscriber acknowledges that any estimates or forward-looking statements or projections included in the Offering Circular were prepared by the management of the Issuer in good faith, but that the attainment of any such projections, estimates or forward-looking statements cannot be guaranteed by the Issuer, its management or its affiliates and should not be relied upon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 The Subscriber acknowledges that the purchase of the Interests may involve tax consequences to the Subscriber and that the contents of the Offering Documents do not contain tax advice. The Subscriber acknowledges that the Subscriber must retain his, her or its own professional Advisors to evaluate the tax and other consequences to the Subscriber of an investment in the Interests. The Subscriber acknowledges that it is the responsibility of the Subscriber to determine the appropriateness and the merits of a corporate entity to own the Subscriber's Interests and the corporate structure of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 The Subscriber acknowledges that the Offering Circular and this Offering have not been reviewed by the SEC or any state securities commission, and that no federal or state agency has made any finding or determination regarding the fairness or merits of the Offering or confirmed the accuracy or determined the adequacy of the Offering Circular. Any representation to the contrary is a crime.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 The Subscriber represents, warrants and agrees that the Interests are being purchased for his, her or its own beneficial account and not with a view toward distribution or resale to others. The Subscriber understands that the Issuer is under no obligation to register the Interests on his, her or its behalf or to assist them in complying with any exemption from registration under applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 The Subscriber understands that the Interests have not been registered under the Act by reason of a claimed exemption under the provisions of the Act which depends, in part, upon his, her or its investment intention. The Subscriber realizes that, in the view of the SEC, a purchase with an intent to resell would represent a purchase with an intent inconsistent with his, her or its representation to the Issuer, and the SEC might regard such a sale or disposition as a deferred sale, for which such exemption is not available. The Subscriber does not have any such intentions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 The Subscriber agrees to indemnify and hold the Issuer, its manager, and controlling persons and their respective heirs, representatives, successors and assigns harmless against all liabilities, costs and expenses incurred by them as a result of any misrepresentation made by the Subscriber herein or as a result of any sale or distribution by the Subscriber in violation of the Act (including, without limitation, the rules promulgated thereunder), any state securities laws, or the Issuer's Restated Certificate of Organization and Operating Agreement, each as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 The Subscriber understands that the Issuer will review and rely on this Subscription Agreement without making any independent investigation; and it is agreed that the Issuer reserves the unrestricted right to reject or limit any subscription and to withdraw the Offering at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 The Subscriber hereby represents that the address of the Subscriber furnished at the end of this Subscription Agreement is the Subscriber's principal residence, if the Subscriber is an individual, or its principal business address, if it is a corporation or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 The Subscriber acknowledges that if the Subscriber is a Registered Representative of a Financial Industry Regulatory Authority ("**FINRA**") member firm, the Subscriber must give such firm the notice required by FINRA's Conduct Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 The Subscriber hereby acknowledges that neither the Issuer nor any persons associated with the Issuer who may provide assistance or advice in connection with the Offering are or are expected to be members or associated persons of members of FINRA or registered broker-dealers under any federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 The Subscriber hereby represents that, except as expressly set forth in the Offering Documents, no representations or warranties have been made to the Subscriber by the Issuer or by any agent, sub-agent, officer, employee or affiliate of the Issuer and, in entering into this transaction, the Subscriber is not relying on any information other than that contained in the Offering Documents and the results of independent investigation by the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 No oral or written representations have been made, or oral or written information furnished, to the Subscriber or his, her or its advisors, if any, in connection with the offering of the Interests which are in any way inconsistent with the information contained in the Offering Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 All information provided by the Subscriber is true and accurate in all respects, and the Subscriber acknowledges that the Issuer will be relying on such information to its possible detriment in deciding whether the Issuer can sell these securities to the Subscriber without giving rise to the loss of the exemption from registration under applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 The Subscriber has taken no action which would give rise to any claim by any person for brokerage commissions, finders, fees or the like relating to this Subscription Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 The Subscriber is not relying on the Issuer, or any of its employees, agents or sub-agents with respect to the legal, tax, economic and related considerations of an investment in the Interests, and the Subscriber has relied on the advice of, or has consulted with, only his, her or its own advisors, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 (For ERISA plans only) The fiduciary of the ERISA plan (the "**Plan**") represents that such fiduciary has been informed of and understands the Issuer's business objectives, policies and strategies, and that the decision to invest "plan assets" (as such term is defined in ERISA) in the Issuer is consistent with the provisions of ERISA that require diversification of plan assets and impose other fiduciary responsibilities. The subscriber or Plan fiduciary (a) is responsible for the decision to invest in the Issuer; (b) is independent of the Issuer and any of its affiliates; (c) is qualified to make such investment decision; and (d) in making such decision, the subscriber or Plan fiduciary has not relied primarily on any advice or recommendation of the Issuer or any of its affiliates or its agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 The foregoing representations, warranties and agreements shall survive the Closing.

**II.** **REPRESENTATIONS BY THE ISSUER** 

The Issuer represents and warrants to the Subscriber that as of the date of the closing of this Offering (the "**Closing Date**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Issuer is a Limited Liability Company duly organized, validly existing and in good standing under the laws of the State of Delaware, authorized to do business in the State of Delaware and has the corporate power to conduct the business which it conducts and proposes to conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 The execution, delivery and performance of this Subscription Agreement by the Issuer have been duly authorized by the Issuer and all other corporate action required to authorize and consummate the offer and sale of the Interests has been duly taken and approved. This Subscription Agreement is valid, binding and enforceable against the Issuer in accordance with its terms; except as enforcement may be limited by bankruptcy, insolvency, moratorium or similar laws or by legal or equitable principles relating to or limiting creditors' rights generally, the availability of equity remedies, or public policy as to the enforcement of certain provisions, such as indemnification provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 The Interests have been duly and validly authorized and issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 The Issuer knows of no pending or threatened legal or governmental proceedings to which the Issuer is a party which would materially adversely affect the business, financial condition or operations of the Issuer.

**III.** **TERMS OF SUBSCRIPTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Subject to Section 3.2 hereof, the subscription period will begin as of the date of the Offering Circular and will terminate at 11:59 PM Eastern Time, on the earlier of the date on which the Maximum Offering is sold or one (1) year from the commencement date or the date the Offering is terminated by the Issuer (the "**Termination Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Subscriber has effected a wire transfer or ACH in the full amount of the purchase price for the Interests to the Issuer or has delivered a check in payment of the purchase price for the Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Digital ("electronic") signatures, often referred to as an "e-signature," enable paperless contracts and help speed up business transactions. The 2001 E-Sign Act was meant to ease the adoption of electronic signatures.

You may execute this Subscription Agreement by providing one of the following: (i) your original, scanned or faxed signature; or (ii) your electronic signature, as prescribed in the bulleted paragraphs below.

\* The mechanics of the electronic signature requested herein include your execution of both this Subscription Agreement and the Operating agreement for the Company in a single signature block. By typing in your name, you will have accepted and agreed, without reservation, to all of the terms and conditions contained within this Subscription Agreement and the Operating agreement. Your electronically signed Agreements will be stored by the Company in such a manner that the Company can access them at any time.

\* You hereby consent and agree that the electronic signature below constitutes your signature, acceptance and agreement of both the Subscription Agreement and the Operating agreement as if each of these documents were actually signed by you in writing. Further, all parties agree that no certification authority or other third-party verification is necessary to validate any electronic signature; and that the lack of such certification or third-party verification will not in any way affect the enforceability of your signature or resulting contract between you and the Company. You understand and agree that your e-signature executed in conjunction with the electronic submission of this Subscription Agreement and the Operating Agreement shall be legally binding and that such transaction has been authorized by you. You agree that your electronic signature below is the legal equivalent of your manual signature on both this Subscription Agreement and the Operating Agreement and that you consent to be legally bound by terms and conditions of such Agreements. The Subscription Agreement and Operating Agreement may be executed in counterparts and by electronic signature, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

\* Furthermore, you hereby agree that all current and future notices, confirmations and other communications regarding this Subscription Agreement or the Operating Agreement specifically, and/or future communications in general between the parties, may be made by email, sent to the email address of record as set forth in the vesting information below or as otherwise from time to time changed or updated and disclosed to the other party, without necessity of confirmation of receipt, delivery or reading, and such form of electronic communication is sufficient for all matters regarding the relationship between the parties. If any such electronically sent communication fails to be received for any reason, including but not limited to such communications being diverted to the recipients' spam filters by the recipients' email service provider, or due to a recipients' change of address, or due to technology issues by the recipients' service provider, the parties agree that the burden of such failure to receive is on the recipient and not the sender, and that the sender is under no obligation to resend communications via any other means, including but not limited to postal service or overnight courier, and that such communications shall for all purposes, including legal and regulatory, be deemed to have been delivered and received. No physical, paper documents will be sent to you, and if you desire physical documents then you agree to be satisfied by directly and personally printing, at your own expense, the electronically sent communication(s) and maintaining such physical records in any manner or form that you desire.

\* Your Consent is Hereby Given: By signing this Subscription Agreement, you are explicitly agreeing to receive documents electronically, including your copy of this signed Subscription Agreement and the Operating Agreement, as well as ongoing disclosures, communications and notices.

\* By signing this document, the Subscriber is agreeing to both the Operating agreement and the Subscription Agreement and all provisions, clauses, representations, warranties, acknowledgments and covenants contained therein, each of which: (i) shall be binding on the heirs, executors, administrators, successors and permitted assigns of the undersigned, and (ii) may not be cancelled, withdrawn, revoked, or terminated by the undersigned except as set forth therein. If there is more than one signatory hereto, the representations, warranties, acknowledgments and agreements of the undersigned are made jointly and severally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 If the Subscriber is not a United States person, such Subscriber shall immediately notify the Issuer, and the Subscriber hereby represents that the Subscriber is satisfied as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Interests or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Interests, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Interests. Such Subscriber's subscription and payment for, and continued beneficial ownership of, the Interests will not violate any applicable securities or other laws of the Subscriber's jurisdiction.

**IV.** **NOTICE TO SUBSCRIBERS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 THE INTERESTS HAVE BEEN QUALIFIED UNDER REGULATION A OF THE SECURITIES ACT OF 1933. THE INTERESTS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 FOR NON-U.S. RESIDENTS ONLY: NO ACTION HAS BEEN OR WILL BE TAKEN IN ANY JURISDICTION OUTSIDE THE UNITED STATES OF AMERICA THAT WOULD PERMIT AN OFFERING OF THESE SECURITIES, OR POSSESSION OR DISTRIBUTION OF OFFERING MATERIAL IN CONNECTION WITH THE ISSUE OF THESE SECURITIES, IN ANY COUNTRY OR JURISDICTION WHERE ACTION FOR THAT PURPOSE IS REQUIRED. IT IS THE RESPONSIBILITY OF ANY PERSON WISHING TO PURCHASE THESE SECURITIES TO SATISFY HIMSELF AS TO FULL OBSERVANCE OF THE LAWS OF ANY RELEVANT TERRITORY OUTSIDE THE UNTIED STATES OF AMERICA IN CONNECTION WITH ANY SUCH PURCHASE, INCLUDING OBTAINING ANY REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER APPLICABLE FORMALITIES.

**V.** **MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by electronic mail, reputable overnight courier, facsimile (with receipt of confirmation) or registered or certified mail, return receipt requested, addressed to the Issuer, at the address set forth in the first paragraph hereof, Attention: MANAGER and to the Subscriber at the email address or address indicated on the signature page hereof. Notices shall be deemed to have been given on the date when mailed or sent by e-mail or overnight courier, except notices of change of address, which shall be deemed to have been given when received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 This Subscription Agreement shall not be changed, modified or amended except by a writing signed by the parties against whom such modification or amendment is to be charged, and this Subscription Agreement may not be discharged except by performance in accordance with its terms or by a writing signed by the party to be charged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 This Subscription Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives, successors and assigns. This Subscription Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 This Subscription Agreement may be executed in counterparts. Upon the execution and delivery of this Subscription Agreement by the Subscriber, this Subscription Agreement shall become a binding obligation of the Subscriber with respect to the purchase of Interests as herein provided; subject, however, to the right hereby reserved by the Issuer to (i) enter into the same agreements with other subscribers, (ii) add and/or delete other persons as subscribers and (iii) reduce the amount of or reject any subscription.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 The holding of any provision of this Subscription Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect any other provision of this Subscription Agreement, which shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 It is agreed that a waiver by either party of a breach of any provision of this Subscription Agreement shall not operate or be construed as a waiver of any subsequent breach by that same party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further actions as may be necessary or appropriate to carry out the purposes and intent of this Subscription Agreement.

***[Signature Pages Follow]***

**IN WITNESS WHEREOF**, the parties have executed this Subscription Agreement as of the day and year written below. This Subscription Agreement, the Offering Circular, all supplements and attachments to the Offering Circular, and the Operating Agreement have been received, read, and approved by:

---

| | |
|:---|:---|
| Name of Beneficial Owner | Name of Additional Beneficial Owner |
| or Authorized Representative (Please Print) | or Authorized Representative |
| Signature | Additional Signature |

---

**Class of Units Requested (Please Check One):**

_____ Class A _____ Class B

**Subscription Amount:**

$________________________

**Manner in which Title is to be held (Please Check <u>One</u>):**

1. ______ Individual 10. ______ Corporation

2. ______ Tenants in Common 11. ______ Partnership/Limited partnership

3. ______ Joint Tenants with Right of Survivorship 12. ______ Limited Liability Company

4. ______ Community Property 13. ______ Trust/Estate/Pension or Profit-Sharing Plan Date Opened:

5. ______ Married with Separate Property 14. ______ As a Custodian for

6. ______ Traditional IRA Under the Uniform Gift to Minors Act of the State of

7. ______ ROTH IRA 15. ______ Employee Benefit Plan

8. ______ SEP Retirement Account 16. ______ Keogh Plan (HR 10 or 401(k) Plan)

9. ______ Foundation described in Section 501(c)(3) of the Internal Revenue Code 17. ______ Other:

---

| | |
|:---|:---|
| Account Name (if applicable) | Name of Custodian (if applicable) |
| Name of Beneficiary (if applicable) | Signature of Custodian (if applicable) |

---

**<u>IF MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST COMPLETE BELOW AND SIGN</u>**

---

| | |
|:---|:---|
| Exact Name in Which Title is to be Held (Please Print) |  |
| Name (Please Print) | Name of Additional Subscriber |
| Address of Subscriber | Address of Additional Subscriber |
| City, State and Zip Code | City, State and Zip Code |
| Social Security Number or EIN | Social Security Number or EIN |
| Telephone Number | Telephone Number |
| Fax Number (if available) | Fax Number (if available) |
| E-Mail (if available) | E-Mail (if available) |
| (Signature) | (Signature of Additional Subscriber) |
| Title (if applicable) | Title (if applicable) |

---

---

| |
|:---|
| ACCEPTED __________________________, on behalf Gratus Capital Properties Fund III LLC |
| By: |
| Name: |
| Title: |

---

## Ex1A-6

**EXHIBIT 6.1**

**Welcome to KoreTransfer**

**March 30, 2021**

**Dear Jason Weimer & Robert Barlau:**

Thank you for choosing KoreTransfer Agency to provide stock registrar and transfer agency services for your company.

We are not your traditional transfer agent. We are priced to be entrepreneur- friendly, and we work hard to provide fast, accurate, and affordable services. To do this, we use the KoreConX all-in-one platform.

We do more than just manage securities. You can include shares, digital securities, options, warrants, debt instruments, promissory notes, SAFEs, etc. in your captable. You can manage compliance, governance, capital raising, board of director activities and ongoing corporate securities-related activities. Our goal is to deliver a host of solutions that will bring all your shareholders/brand ambassadors, stakeholders, and partners together to operate more efficiently.

To ensure the effective set up and smooth operation of your account in KoreConX all- in-one platform, we request your assistance in completing and returning the attached documents.

Since our business is highly regulated, we have taken the liberty of providing some basic guidelines that will facilitate a smooth and efficient working relationship:

1. All requests for securities services, such as treasury issuances or securities holders' lists, must be sent to your assigned Transfer Agent.

2. We can only communicate with directors on company business unless we receive written authority to communicate with other parties (see the attached communication authority form).

3. If there is a change to the company that we need to know (e.g., new director, new officer, business name, or address), your securities holders are required to know as well. Ask us about the rules surrounding shareholder disclosure and how you can use KoreConX all-in-one platform to keep things organized and updated.

4. Finally, if you are ever unclear or need assistance, I am always happy to talk!

**Sincerely Yours,**

![](gratus_ex61img8.jpg)

**Jason Futko**

**Co-Founder, CFO**

TRANSFER AGENCY AND REGISTRARSHIP AGREEMENT USA MARKET

THIS AGREEMENT made as of March 30, 2021

BETWEEN:

**Gratus Capital Properties Fund III, LLC**

Registered Office: 5155 E River Road #404, Fridley, MN, USA, 55421

(hereinafter referred to as the "Issuer")

AND:

**KoreTransfer**

INTEGRAL TRANSFER AGENCY USA INC.

635 16th St., Niagara Falls, NY14301 (USA)

(hereinafter referred to as "KoreTransfer" or Transfer Agent and Registrar)

(Together referred to as the "Parties")

WITNESSES THAT the parties hereto agree and covenant with each other as follows:

**1. Corporate Authority and Appointment**

a) The Issuer, having taken all necessary corporate action to authorize the execution, delivery and performance by it of this Agreement, has appointed KoreTransfer as Transfer Agent and Registrar ('shares' are herein defined as common shares, preferred shares, options, warrants, digital securities/security tokens, trust units and like securities evidenced by a book entry on the issuer's security register) and KoreTransfer accepts such appointment, upon the terms set out in this Agreement.

b) KoreTransfer agrees to faithfully carry out and perform its duties hereunder, and upon the termination hereof, to deliver over to the Issuer the books and any documents and papers connected therewith or with the business of the Issuer transacted hereunder, against a receipt executed by the Issuer.

**2. Duty to Keep and Provide Records**

KoreTransfer shall keep on its secure online platform the Issuer's share ledger, register and branch registers of transfers, digital securities/security tokens and electronic certificates (eCerts as defined below), and subject to such general and particular instructions as may from time to time be given to it by or under the authority of the Board of Directors of the Issuer or any applicable law, KoreTransfer shall, in accordance with this Agreement:

a) make such entries from time to time in the books as may be necessary in order that the accounts of each shareholder or token holder of the Issuer may be properly and accurately kept and transfers of shares properly recorded;

b) upon payment of any applicable transfer taxes, countersign, register and issue share eCerts (as defined below) or digital securities/security tokens to the shareholders or token holders entitled thereto representing the shares/digital securities/security tokens held or transferred to them respectively; and

c) furnish to the Issuer statements, lists, entries, information and material, concerning transfers and other matters, as are maintained or prepared by it as transfer agent, registrar and disbursing agent, of the Issuer.

**3. Dividend Disbursement**

a) KoreTransfer shall disburse dividends and other distributions which may be declared from time to time on the shares of the Issuer, and KoreTransfer is hereby authorized and directed to pay such dividends and other distributions after receipt at its principal office of:

i. a certified copy of the resolution of the board of directors of the Issuer declaring such dividends or other distributions or similar documentation that is acceptable to KoreTransfer, and

ii. funds in an amount sufficient for the payment of such dividends and any cost associated with delivery of funds.

b) If any funds are received by KoreTransfer in the form other than wire transfer, KoreTransfer shall be entitled to delay the time for release of such funds until such funds shall be determined to have cleared the financial institution upon which the same are drawn. If KoreTransfer shall hold any amount on account of distributions which are unclaimed or which cannot be paid for any reason, KoreTransfer shall be under no obligation to invest or reinvest the same but shall only be obligated to hold same in a current or other non-interest bearing account pending payment to the person or persons entitled thereto, and shall be entitled to retain for its own account any benefit earned by the holding of same prior to its disposition in accordance with this Agreement.

c) All costs related to the disbursement of funds for dividends or otherwise will be the responsibility of the Issuer, including but not limited to ACH fees, wire transfer fees, and credit card fees.

**4. Authority to Act and Reliance**

a) KoreTransfer will act on instructions from the Issuer and only those individuals who are authorized by a resolution of the board of directors. The Issuer shall also update KoreTransfer with any changes to their directors, officers and authorized personnel as they occur, and at a minimum annually, and supplying all items on Schedule "B".

b) Issuer acknowledges that KoreTransfer may be required to follow various identification and verification procedures in accordance with state and federal legislation as may be enacted from time to time. Issuer therefore agrees to provide, upon the reasonable request of KoreTransfer, copies of any corporate records, including but not limited to appropriate identification for each of the said directors and officers, as may be required by law.

c) KoreTransfer may act upon any signature, certificate or other document believed by it to be genuine and to have been signed by the proper person or persons or refuse to transfer a share certificate/eCert/digital securities/security tokens if it is not satisfied as to the propriety of the requested transfer. KoreTransfer will notify the Issuer in the event a transfer is refused. KoreTransfer may also act on the receipt of facsimile and similar electronic instructions that it believes to be genuine and to have been signed or initiated by the proper person or persons.

d) KoreTransfer may from time to time refer any documents, requests or questions which may arise in connection with the performance of its duties hereunder to legal counsel for the Issuer, at the expense of the Issuer, or to its own counsel for an opinion thereon and shall be entitled to rely absolutely on such opinion and shall be indemnified and held harmless by the Issuer against and from any liability, cost and expense for any action taken by KoreTransfer or not taken by KoreTransfer in accordance with such instructions or advice.

e) The Issuer represents and warrants that all shares issued and outstanding on the date of this Agreement are issued as fully paid and non- assessable and agrees that with respect to future allotments and issuances of shares, KoreTransfer shall issue and regard such shares as fully-paid and non- assessable. KoreTransfer shall be entitled to treat as valid any certificate for shares purporting to have been issued by or on behalf of the Issuer prior to the date of this Agreement.

**5. Issue, Transfer, and Cancellation of Certificates**

(a) KoreTransfer manages the Issuer's certificates in electronic form; such certificates will be called ecertificates ("eCerts") or digital securities/security tokens for the purposes of this document or any correspondence.

(b) The Issuer agrees that it will promptly furnish to KoreTransfer from time to time:

(i) copies of all constating documents, amendments thereto and of all relevant by-laws and resolutions relating to the creation, amendment, allotment and issuance of shares of the Issuer; and

(ii) copies of all relevant documents and proceedings relating to increases and reductions in the Issuer's capitalization, the reorganization of or change in its structure or the bankruptcy, insolvency, winding-up or dissolution of the Issuer.

(c) Upon receipt of a certified copy of a resolution of the directors of the Issuer authorizing the issuance of shares, together with written instructions from an authorized officer or director of the Issuer giving particulars of the registered owners of such shares, KoreTransfer shall register such shareholders and deliver eCerts representing such shares in accordance with such instructions and KoreTransfer can rely that such instructions are in compliance with exchange or regulatory requirements as promulgated from time to time.

(d) The Issuer agrees that, so long as this Agreement is in force, it shall issue no share certificates or digital securities/security tokens or any securities without such eCerts or digital securities/security tokens being created and delivered by KoreTransfer in its capacity as transfer agent and registrar.

(e) When a certificate is presented to KoreTransfer for the purpose of transfer, transfer of any of the shares in respect of which such certificate was issued will be refused by KoreTransfer. Transfers will only be performed between registered eCert holders of the company to a qualified individual or entity upon approval by the company, review of the company's bylaws, and acceptance of the qualified individual or entity who is registered in the KoreConX all-in-one platform. In the absence of bad faith, gross negligence or willful misconduct, KoreTransfer shall not incur any liability in refusing to affect any transfer which in its judgment is improper or unauthorized, or in carrying out any transfer which in its judgment is proper or authorized.

(f) Except as specifically provided below, it shall not be the duty of KoreTransfer to pass on the validity of transfers of shares owing to death, transfers by parents or guardians, powers of attorney, and it is hereby authorized, at KoreTransfer's discretion, to refer all documents relating to such transfers to the legal counsel of the Issuer, at the expense of the Issuer, and KoreTransfer shall be entitled to rely absolutely upon the opinion of such legal counsel.

(g) Upon receipt of notice from the Issuer or from any shareholder/token holder that an eCert or digital securities/security tokens is missing from the company's register, KoreTransfer agrees to place an appropriate notation on the register of shareholders/token holders. KoreTransfer shall not be required to issue an eCert based on a claim from any potential owner of a security for any eCert that has not been recorded in the company's register unless:

(i) neither the Issuer nor KoreTransfer has received notice that the security represented by the eCert has been acquired by a good faith purchaser (as that term is used in the applicable corporate statute);

(ii) the owner has filed with KoreTransfer an indemnity bond sufficient in KoreTransfer's opinion to protect the Issuer and KoreTransfer from any loss that either of the Issuer or KoreTransfer may suffer by complying with the request to issue a new certificate; and

(iii) the owner has satisfied all other requirements as KoreTransfer may from time to time impose, acting reasonably, including without limitation the delivery by the owner to the Issuer and KoreTransfer of a written indemnity together with a statutory declaration that the eCert was not properly recorded in the company's register of securities.

For this purpose and for the purposes of the applicable corporate statute, the Issuer hereby irrevocably delegates to KoreTransfer the power to determine the sufficiency of the indemnity bond so posted and to impose all such other reasonable requirements as KoreTransfer may from time to time require in this regard.

(h) In the case of a registered shareholder who dies where no administration is contemplated, KoreTransfer may register the transfer of shares registered in the name of the deceased shareholder upon receipt of an indemnity agreement, a waiver of probate or similar bond and any other documents satisfactory to KoreTransfer.

**6. Access to Information**

The Transfer Agent services are delivered through an online all-in-one platform allowing you access 24/7 along with all your stakeholders. The all- in-one platform gives you complete transparency on the status of your

company's corporate records, management, trades, transfers, etc.

The platform provides you many features to assist you in managing your company, cap table, boardroom, and documents to make sure you are fully compliant. **See Schedule "C" for more information**

**7. Indemnity**

(a) In addition to and without limiting any other indemnity specifically provided herein, the Issuer agrees to defend, indemnify and hold harmless KoreTransfer, its successors and assigns, and its and each of their respective directors, officers, employees and agents (the "Indemnified Parties") against and from any demands, claims, assessments, proceedings, suits, actions, costs, judgments, penalties, interest, liabilities, losses, damages, debts, expenses and disbursements (including expert consultant and legal fees and disbursements on a substantial indemnity, or solicitor and client, basis)/(collectively, the "Claims") that the Indemnified Parties, or any of them, may suffer or incur or that may be asserted against them, or any of them, in consequence of, arising from or in any way relating to this Agreement (as the same may be amended, modified or supplemented from time to time) of KoreTransfer's duties hereunder or any other services that KoreTransfer may provide to the Issuer in connection with or in any way relating to this Agreement or KoreTransfer's duties hereunder except that no individual Indemnified Party shall be entitled to indemnification in the event such Indemnified Party is found to have acted in bad faith, engaged in willful misconduct or been grossly negligent. For greater certainty, the Issuer agrees to indemnify and save harmless the Indemnified Parties against and from any present and future taxes (other than income taxes), duties, assessments or other charges imposed or levied on behalf of any governmental authority having the power to tax in connection with KoreTransfer's duties hereunder. In addition, the Issuer agrees to reimburse, indemnify and save harmless the Indemnified Parties for, against and from all legal fees and disbursements (on a substantial indemnity, or solicitor and client, basis) incurred by an Indemnified Party if the Issuer commences an action, or cross claims or counterclaims, against the Indemnified Party and the Indemnified Party is successful in defending such claim.

(b) The Issuer agrees that its liability hereunder shall be absolute and unconditional regardless of the correctness of any representations of any third parties and regardless of any liability of third parties to the Indemnified Parties and shall accrue and become enforceable without prior demand or any other precedent action or proceeding and shall survive the resignation or removal of KoreTransfer or the termination of this Agreement.

(c) KoreTransfer shall be under no obligation to prosecute or defend any action or suit in respect of its agency relationship under this Agreement but will do so at the request of the Issuer provided that the Issuer furnishes an indemnity satisfactory to KoreTransfer against any liability, cost or expense which might be incurred.

(d) In addition to the remedies provided herein, KoreTransfer shall be entitled to any other rights and recourses it may have against the Issuer.

**8. Limitation on Liability**

(a) KoreTransfer shall not be liable for any error in judgment, for any act done or step taken or omitted by it in good faith, for any mistake, of fact or law, or for anything which it may do or refrain from doing in connection herewith except arising out of its bad faith, gross negligence or willful misconduct. In particular, but without limiting the generality of the foregoing, KoreTransfer shall, with respect to meetings of shareholders, not be liable for having relied upon or deferred to the instructions or decisions of the Issuer, its legal counsel, or the chairman of the meeting.

(b) In the event KoreTransfer is in breach of this Agreement or its duties hereunder or any agreement or duties relating to any other services that KoreTransfer may provide to the Issuer in connection with or in any way relating to this Agreement or KoreTransfer's duties hereunder, KoreTransfer shall be liable for claims or damages only to an aggregate maximum amount equal to the amount of fees paid by the Issuer to KoreTransfer hereunder in the twelve months preceding the last of the events giving rise to such claims or damages, except to the extent that KoreTransfer has acted in bad faith, with gross negligence, or has engaged in willful misconduct. In no event shall KoreTransfer be liable for indirect or consequential damages.

**9. Amendment, Assignment and Termination**

(a) Except as specifically provided herein, this Agreement may only be amended or assigned by a written agreement of the parties.

(b) Any entity resulting from the merger, amalgamation or continuation of KoreTransfer or succeeding to all or substantially all of its transfer agency business (by sale of such business or otherwise), shall thereupon automatically become the dividend disbursing agent, transfer agent and registrar hereunder without further act or formality.

(c) This Agreement may be terminated by either party on 180 days' notice in writing being given to the other at the address set out above or at such other address of which notice has been given.

(d) This Agreement may be terminated by KoreTransfer on 60 days notice in writing to the Issuer in the event the Issuer refuses or fails to pay an invoice for fees and expenses, or other demand for payment issued or made pursuant to this Agreement by KoreTransfer, within 30 days of the original invoice or demand.

(e) The provisions of Sections 6(c) and 7 shall survive termination of this Agreement.

(f) Upon termination of this agreement, and upon written instruction from the authorized individuals of the Issuer, KoreTransfer will send a copy of the Issuers records to a new transfer agent designated by the issuer, or in absence of a new transfer agent, to the Issuer directly.

**10. Pricing**

As per schedule "A". All prices in this agreement are subject to change by KoreTransfer upon 90 days written notice (email acceptable) to Issuer.

**11. Advertising and Marketing**

Both Parties to this agreement agree to allow the other party to:

(a) Use the logo and name of the other party on their website, marketing material, social media, and brochures;

(b) Make use of the logo and name in press releases highlighting the relationship, as long as the content of such press release is approved by the other party;

(c) All mentions of the other party must make use of publicly available information, except where the other party has approved the content.

**12. General**

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| | |
|:---|:---|
| (a) | This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable therein and the parties hereby attorn to the jurisdiction of the courts of the State of New York. |
| (b) | This Agreement shall ensure to the benefit of and be binding upon the parties hereto and their successors and assigns. |
| (c) | This Agreement may be executed in counterparts and may be delivered by facsimile machine or e-mail. |
| (d) | The attached Appendices and Schedules form part of this agreement and include: |
|  | Appendix 1: Checklist to Upload Appendix 2: Sample Board Resolution<br> Appendix 3: List of Company Officers and Directors<br> Schedule "A": Pricing<br> Schedule "B": Issuer Responsibilities Schedule "C": All-in-one Platform |

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IN WITNESS WHEREOF this Agreement has been duly executed by the parties hereto:

**KoreTransfer**

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| |
|:---|
| Signature: ![](gratus_ex61img9.jpg)_______________________ |
| **Name:** Jason Futko |
| **Position:** Co-Founder, CFO |

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**Gratus Capital Properties Fund III, LLC**

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| |
|:---|
| Signature: ![](gratus_ex61img10.jpg)________________________ |
| **Name: ___**Robert Barlau**___________________** |
| **Position: _____**Partner**_______________** |
| **Date: _______**4/9/2021**____________** |

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**Appendix 1**

**CHECKLIST TO UPLOAD**

We require that you upload the following information and invite the key members of your company management team, corporate secretary, board directors and legal counsel to the KoreConX all-in-one business platform. This is a mandatory requirement.

KoreConX's all-in-one business platform will be your central point for viewing your information on securities holders and your corporate records, thus reducing your ongoing manual cost associated with transfer services.

**A.** **Board Resolution Appointing Transfer Agent and Registrar;** 

**B.** **Corporate Information Sheet;** 

**C.** **Company Officers & Directors (C-1 & C-2);** 

**D.** **Director KYC Form (including proof of ID)** 

**E.** **Non-Director Communication Authority Form;** 

**F.** **Treasury Certificate Mailing Instructions Sheet;** 

**G.** **Articles of Incorporation;** 

**H.** **Company Bylaws;** 

**I.** **List of securities holders provided in Excel CSV file format (we require names, complete mailing address date of issue, number of securities issued, securities class, series rounds if there are any restrictions attached to those securities, etc.) with all the information listed on the CSV template file provided to Issuer;** 

**J.** **Digital copies of all documents related to a sale or transfer of securities (including board resolutions authorizing it, subscription agreements, etc.)** 

**If your company is transferring its business from another "Transfer Agent" we will require that the following information be uploaded in KoreConX all- in-one Platform:**

1. Certified list of shareholders by previous transfer agent

2. Certificate history report by account

3. List of stop transfers - including backup documents

4. Transfer journals/debit wraps

5. Pending lost/estate transfer files

6. Client history summary and exchange rates, if any

7. Certification of the number of shares issued and outstanding - and your indemnity if there are any outstanding discrepancies

8. Policy #41 Mailing List (beneficial shareholders for shares held by DTCC, CDS or other settlement agency)

9. Electronic copies provided in "Excel Spreadsheet File Format" of all other relevant reports/old records and paper transaction files

10. List of Capital changes for the 12 months preceding

***Please note that after reviewing the documentation, KoreTransfer may request an Opinion of the company's Legal Counsel addressed to KoreTransfer stating that:***

a) the company has been duly incorporated;

b) that all necessary and proper steps have been taken to make the issue of shares valid; and

c) that it has, at the date of opinion, a stated capital position with respect to:

(i) authorized shares

(ii) issued and outstanding shares

(iii) the shares are fully paid and non-assessable, and the form of the ecertificates to be recorded by KoreTransfer as transfer agent and registrar has been approved as required by Law and is currently in effect.

***Please complete the attached sample board resolution, or similar, as it relates to your company and return it with the list of Directors and Officers.***

**Appendix 2**

**Below is a sample Board Resolution Appointing KoreTransfer Transfer Agency as "Transfer Agent and Registrar". Please cut and paste to a new document, complete the highlighted sections once your board has had the board meeting and return the signed resolution to us.**

**BE IT RESOLVED THAT:**

**1.** KORETRANSFER TRANSFER AGENCY hereinafter referred to as KoreTransfer, with offices located in Niagara Falls, NY, New York, NY and Morrisville NC be and it is hereby appointed Transfer Agent and Registrar for the shares in the stock of the **Gratus Capital Properties Fund III, LLC** (the "Company"); and, these should be common or preferred,

**2.** The Transfer Agency and Registrarship Agreement (the "Agreement") made as of **DATE** between KoreTransfer and Company under which KoreTransfer will provide Company with the transfer agent and registrar services be hereby approved; and,

**3.** The Directors and/or proper Officers of Company be and they are hereby authorized to execute the Agreement and are authorized to do all acts and things and to execute and deliver all documents or instruments in writing as may be considered necessary or desirable to carry out the terms of these resolutions; and,

**4.** The Directors and/or proper Officers of Company hereby certify the following shares have been authorized and issued as of the date of this resolution:

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| | | |
|:---|:---|:---|
| Class | Authorized | Issued |
| Class | Authorized | Issued |
| Class | Authorized | Issued |

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CERTIFIED to be a true copy of a Resolution passed by the Board of Directors of Company and which Resolution is in full force and effect as of the date hereof.

Dated this<u> </u>day of<u> </u>,<u> </u>

Signature:<u> </u>

**Name:<u> </u>** 

**Position:** Corporate Secretary

**Appendix 3**

**List of Company Officers & Directors**

Each of them will be invited to create an account in the KoreConX platform where they will go through a Know Your Client (KYC) check at the cost of the company ($5 per person).

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| | |
|:---|:---|
| **Chairperson Name:**<br>| ***Email Address:*** |
| **President Name:**<br>| ***Email Address:*** |
| **CFO Name:**<br>| ***Email Address:*** |
| **Treasurer:**<br>| ***Email Address:*** |
| **Corporate Secretary Name:**<br>| ***Email Address:*** |
| **Legal Counsel Name:**<br>| ***Email Address:*** |
| **Director Name**<br>| ***Email Address:*** |
| **Director Name**<br>| ***Email Address:*** |
| **Director Name**<br>| ***Email Address:*** |
| **Director Name**<br>| ***Email Address:*** |

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**Schedule "A"**

**Transfer Agent Fee**

**RegA+ End to End Investment Process**

**Transfer Agent Private Company Pricing: $2,500 per month**

**Reg A+ set up fee (upfront): $3,500**

**Included in the monthly fee:**

Unlimited number of securities holders can access the Portfolio Management features so they can always see their holdings, securities holder reports, meeting invites, and vote electronically (evoting).

The Issuer can manage all the securities holders using CapTable management, Virtual Minute Book and Investor Relations features. KoreTransfer uses uncertificated shares (eCert) only.

Issuer is provided the KoreConX all-in-one platform private labelled to the Issuer so that shareholders can login from Issuer's website.

**Investment Process Fees:**

In addition to the monthly fees, there are transaction fees for the below items that are third party add-ons. These items are charged on a per use at our cost.

· ID Verification and Anti-money Laundering (AML)

· Payment Processing (Credit Card, ACH, EFT, Wire Transfer, Crypto)

· Escrow

· IRA Payment Option

**\*Please note**: KoreTransfer uses the KoreConX all-in-one platform to automate many processes and to be able to offer transfer agent services at a low cost to Issuer. KoreTransfer has provided the Issuer with a captable template in CSV format (the "prescribed format") to enable easy upload of Issuer Data (the CSV file and all agreements associated with the transaction) into KoreConX all-in-one platform.**<u>If the Issuer does not</u> <u>provide the Data in the prescribed format, requiring KoreTransfer</u> <u>to manually clean, correct, obtain missing required information or</u> <u>otherwise intervene to prepare the data for upload, a data</u> <u>preparation fee will be assessed based on an estimate of time</u> <u>required at a rate of $150 per hour.</u>** However, if Issuer provides their Data in the prescribed format, no fee will be charged for loading your captable.

**Schedule "B"**

**Issuer Responsibilities**

Since our business is full of rules and regulations, we have taken the liberty of providing some basic guidelines that will facilitate a smooth and efficient working relationship:

· All requests for securities transfer services, such as treasury issuances or securities holders lists, must be sent to elizabeth@koreconx.com by only authorized representative of the Issuer

· We can only communicate with directors on company business unless we receive written authority to communicate with other parties (see the attached communication authority form).

**Issuer Responsibility to update**

The Issuer is required to inform us immediately of any changes to:

1. The Issuer's officers or directors, we need this update at a minimum on an annual basis;

a. Issuer is required to provide KoreTransfer with the Annual Shareholder Resolutions approving the directors;

b. Issuer is required to provide KoreTransfer with the Annual Directors Resolution approving the officers;

2. Issuers securities (shares, options, warrants, debentures, loans, SAFEs, etc.), any new issuance, or changes to an existing issuance;

3. The Issuer's address or phone number;

4. Issuer's year-end date;

5. President or CEO contact details, email address, and/or mobile number;

6. CFO contact details, email address, or mobile number;

7. Issuer's Legal Counsel, contact details, email address, or mobile number;

8. The Authorized personnel including their address, phone number, or email addresses;

9. Any broker dealers that the Issuer is using to raise capital or transact any of Issuers securities; and

10. Any ATS (Alternative Trading Systems) or registered secondary markets the company is using to transact any of the Issuers securities.

**Schedule "C"**

**All-in-One Platform**

The services are delivered through the KoreConX all-in-one platform as part of your monthly subscription, which includes the following features to help your company:

**Private Label**

This feature, <u>if selected</u>, provides our platform and email notifications with your logo, brand, look and feel. Your stakeholders can login directly at your company website.

**Portfolio Management**

This feature gives your securities holders the ability to view their investment in your company, including your company details, company reports, company news releases, messaging, details of meetings you schedule with them, and online eVoting.

**Cap Table Management/Share Management**

This feature allows you to view your entire cap table: shares, digital securities/security tokens, options, warrants, debentures, loan, SAFE, CrowdSafe, etc. This is where our Transfer Agent provides the services and you have an instant view of what is happening to your company's cap table.

**Documents**

Unlimited document storage for your company corporate records for your management and board of directors.

**Investor Relations**

**This** feature allows you to communicate with your shareholders by sending them reports, news releases, schedule one-on-one meetings and annual shareholders meetings.

**DealRoom**

This feature allows you to prepare your next capital raise and manage the entire process from start to finish more fluidly.

## Ex1A-6

**EXHIBIT 6.3**

**AMENDED AND RESTATED PROMISSORY NOTE**

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| | |
|:---|:---|
|  | St. Paul, Minnesota  |
| $50000000.00 | October 4, 2022 |

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**FOR VALUE RECEIVED,** and subject to the terms and conditions set forth herein, GRATUS CAPITAL PROPERTIES FUND III, LLC, a Delaware limited liability company (the **"Borrower"),** hereby unconditionally promises to pay to the order of GRATUS CAPITAL, LLC, a Minnesota limited liability company or its assigns (the **"Lender,"** and together with the Borrower, the **"Parties"),** at 123 Isabel Street West, St. Paul, Minnesota 55107, the principal amount of up to Fifty Million and no/100 Dollars ($50,000,000.00) (hereinafter the **"Loan Amount").** This Promissory Note (this **"Note")** evidences advances that may be made by the Lender in its sole discretion to the Borrower **("Advances")** pursuant to the terms and conditions of this Note. This Note amends and restates the Promissory Note between the Borrower and Lender dated January 1, 2022, excecuted in Fridley, Minnesota, and the Parties acknowledge and agree that unpaid Advances under this Note as of the date of this Note is in the amount of $2,296,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions; Interpretation</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Capitalized te1ms used herein shall have the meanings set forth in this Section 1.

**"Advances"** has the meaning set f011h in the introductory paragraph.

**"Alternate Base Rate"** means a fluctuating interest rate per annum as shall be in effect from time to time, which rate shall be at all times equal to the coupon rate on a U.S. 10 year treasury note **("10 Year Treasury Rate")+** five percent (5%). Any change in the Alternate Base Rate due to a change in the 10 Year Treasury Rate shall be effective as of the opening of business on January 1 or July 1, as the case may be.

**"Business Day"** means a day other than a Saturday, Sunday, or other day on which commercial banks in Minneapolis are authorized or required by law to close.

**"Governmental Authority"** means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank, or other entity exercising executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of, or pertaining to, government.

**"Interest Payment Date"** means the first day of each month commencing on the first such date to occur after the making of each Advance or the date of any prepayment made in respect thereof.

**"Law"** means, as to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law (including common law), statute, ordinance, treaty, rule, regulation, order, decree, judgment, writ, injunction, settlement agreement, requirement, or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its prope11y or to which such Person or any of its property is subject.

**"Parties"** has the meaning set forth in the introductory paragraph.

**"Person"** means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general pai1nership, unincorporated organization, Governmental Authority, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Loans.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 **<u>Revolving Credit Loan.</u>** From time to time, commencing October 4, 2022, until October 4, 2032 (hereinafter the **"Maturity Date")** or upon the earlier te1mination hereof; Borrower may borrow from Lender up to the Loan Amount. Although this Note is expressed as payable in the full Loan Amount, Borrower will be obligated to pay only the amounts actually disbursed hereunder or Advances, together with accrued interest on the outstanding balance at the rates and on the dates specified in this Note and such other charges as are provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **<u>Conditions of Borrowing.</u>** Lender will not be obligated to make (or continue to make) Advances hereunder unless: (i) Lender has received executed originals of this Note and all other documents or agreements applicable to the loans described herein; and (ii) if the loan is secured, Lender has received confirmation satisfactory to it that Lender has a properly pe1fected security interest, mortgage or lien, with the proper priority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Payment Dates; Optional Prepayments.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 **<u>Payment Dates.</u>** Subject to any earlier payment of interest that may be required by Section 4.2 Interest Payment Dates, the unpaid principal amount of each Advance and all accrued and unpaid interest thereon shall be payable ON DEMAND and as provided in Section 6 Acceleration of Advances,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **<u>Optional Prepayments.</u>** The Borrower may prepay any Advance **in** whole or in part at any time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Interest.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 **<u>Interest Rate.</u>** Except as otherwise provided herein, the outstanding principal amount of each Advance evidenced hereby shall bear interest at the Alternate Base Rate from the date such Advance was made until such Advance is paid in full, whether at maturity, upon acceleration, by prepayment, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **<u>Interest Payment Dates.</u>** Interest on each Advance shall be payable on each Interest Payment Date for each Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **<u>Computation and Accrual of Interest</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All computations of interest on each Advance shall be made on the basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Interest shall accrue on each Advance on the day on which such Advance is made and shall not accrue on such Advance for the day on which it is paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 **<u>Interest Rate Limitation.</u>** If at any time and for any reason whatsoever, the interest rate payable on any Advance shall exceed 10% or the maximum rate of interest pe1mitted to be charged by the Lender to the Borrower under applicable Law, such interest rate shall be reduced automatically to 10% or the maximum rate of interest permitted to be charged under applicable Law, whichever is lower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Payment Mechanics.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 **<u>Manner of Payments.</u>** Each payment of interest or principal shall be made in lawful money of the United States of America no later than 12:00 PM Minneapolis time on the date on which such payment is due by cashier's check, ce1tified check, or wire transfer of immediately available funds to the Lender in accordance with instructions provided by the Lender in writing to the Borrower from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 **<u>Application of Payments.</u>** All payments made under this Note shall be applied first to the payment of any fees or charges outstanding hereunder, second to accrued interest, and third to the payment of the principal amount outstanding under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 **<u>Business Day Convention.</u>** Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension will be taken into account in calculating the amount of interest payable under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Acceleration of Advances.**

All Advances, together with all accrued interest thereon, shall become immediately and automatically due and payable, without demand for payment, presentment for payment, protest, notice of payment, notice of dishonor, notice of nonpayment, notice of acceleration of maturity, and diligence in taking any action to collect sums owing hereunder, upon the commencement by or against the B01rnwer of a case or proceeding under any bankruptcy, insolvency, or other Law relating to the relief of debtors, the readjustment, composition, or extension of indebtedness, or reorganization or liquidation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 **Notices.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All notices, requests, or other communications required or permitted to be delivered hereunder shall be delivered in writing, in each case to the address specified below or to such other address as a Pa1ty may from time to time specify in writing in compliance with this provision:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If to the Borrower:

Gratus Capital Properties Fund III, LLC

718 Washington Avenue North

Suite 400

Minneapolis, MN 55401

Attn: Robert Barlau

Email: bob@gratusfunds.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If to the Lender:

Gratus Capital, LLC

123 Isabel Street West

St. Paul, MN 55107

Attn: Jason C. Weimer

Email: jason@gratus.properties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notices if (i) mailed by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been given when received, (ii) mailed by other than certified or registered mail shall be deemed to have been given three (3) Business Days after mailing, or (iii) sent by email.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **<u>Expenses.</u>** The Borrower shall reimburse the Lender on demand for all costs, expenses, **and** fees (including expenses and fees of its external counsel), whether or not litigation is commenced, incurred by the Lender of, incidental to, **in** any way relating to, or in connection with, the transactions contemplated hereby, including the negotiation, documentation, and execution of this Note, any of the Advances, and the protection of the Lender's rights and enforcement of the Borrower's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 **<u>Governing Law.</u>** This Note and any claim, controversy, dispute, or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to, this Note and the transactions contemplated hereby shall be governed by, and shall be construed and interpreted, and all rights and obligations hereunder determined, in accordance with, the Laws of the State of Minnesota.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **<u>Submission to Jurisdiction.</u>** The Borrower hereby irrevocably and unconditionally (i) agrees that any legal action, suit, or proceeding arising out of or relating to this Note may be brought in the courts of the State of Minnesota sitting in the Hennepin County or of the United States District Court for the District of Minnesota or any appellate com1 from any thereof and (ii) submits to the jurisdiction of any such court in any such legal action, suit, or proceeding. Final judgment against the Borrower in any such legal action, suit, or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 **<u>Waiver of Jury Trial.</u> THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY BASED UPON, ARISING OUT OF, OR OTHERWISE RELATING TO, THIS NOTE, ANY ADVANCE, OR THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 **<u>Waiver of Notice.</u>** The Borrower hereby waives demand for payment, presentment for payment, protest, notice of payment, notice of dishonor, notice of nonpayment, notice of acceleration of maturity, and diligence in taking any action to collect sums owing hereunder.

IN WITNESS WHEREOF, the Borrower has executed this Note as of October 4, 2022.

---

| | |
|:---|:---|
| GRATUS CAPITAL PROPERTIES FUND LLC | GRATUS CAPITAL PROPERTIES FUND LLC |
| By: | /s/ Jason C. Weimer |
| Name: | Jason C. Weimer |
| Title: | President |

---

## Ex1A-6

**EXHIBIT 6.4**

**STANDSTILL AGREEMENT**

This STANDSTILL AGREEMENT (the "**Agreement**") is entered into as of December 31, 2022 (the "**Effective Date**") by and between GRATUS CAPITAL PROPERTIES FUND III, LLC, a Delaware limited liability company (the "**Borrower**") and GRATUS CAPITAL, LLC, a Minnesota limited liability company or its assigns (the "**Lender**," and together with the Borrower, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Lender has extended certain credit to Borrower evidenced by an Amended and Restated Promissory Note dated October 4, 2022, in the principal amount of up to $50,000,000.00 (the "**Note**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. As of the Effective Date, Borrower continues to raise capital to meet its business objectives and is not in a position to make interest payments or any other payments under the Note until certain threshold events have occurred in the business of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower has requested, and Lender has agreed, to refrain from enforcement of the Note and collection related thereto under the terms and conditions set forth herein.

NOW, THEREFORE, IT IS STIPULATED AND AGREED AS FOLLOWS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Incorporation of Recitals**. The Parties hereby acknowledge and agree that the recitals set forth above are true and accurate, and are hereby incorporated by reference as express terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Reaffirmation of Note**. Borrower acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The is a valid, existing and binding obligation of the Borrower. By execution of this Agreement Borrower hereby reaffirms the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The principal and interest balances set forth in the recitals are accurate and Borrower does not have claims of defenses, setoffs or counterclaims against the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Acknowledgment of Defaults**. Borrower hereby acknowledge that Borrower is in default under the terms and conditions of the Not as set forth in the above Recitals (hereinafter "**Existing Defaults**"), and that, as a result of the Existing Defaults, Lender is entitled to exercise all of its rights and remedies under the Note without further notice, presentment or demand, except as provided by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Payments on Obligations**. Lender agrees to refrain from the Existing Defaults and any payments due and owing under the Note for a period of eighteen (18) months from the Effective Date. Notwithstanding the foregoing, nothing in this Agreement precludes the Borrower from making periodic payments in Borrower's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Effect of Agreement**. Except as specified herein, all terms and conditions of the Note shall remain in full force and effect. In the event of any conflict between any term or provision set forth in this Agreement and any term or provision set forth in the Note, the terms and provisions set forth in this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Governing Law and Construction**. The validity, construction and enforceability of this Agreement and the note shall be governed by the internal laws of the state of Minnesota, without giving effect to conflict of laws or principles thereof. Whenever possible, each provision of this Agreement and any other statement, instrument or transaction contemplated hereby or relating hereto, shall be interpreted in such manner as to be effective and valid under such applicable law, but, if any provision of this agreement or any other statement, instrument or transaction contemplated hereby or relating hereto shall be held to be prohibited or invalid under such applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement or any other statement, instrument or transaction contemplated hereby or relating hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Modifications**. Notwithstanding any provisions to the contrary herein, any term of this Agreement may be amended with the written consent of the Borrower; provided that no amendment, modification or waiver of any provision of this Agreement or the Note or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be in writing and signed by Lender, and then such amendment, modification, waiver or consent shall be effective only in the specific instance and for the purpose for which given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Entire Agreement**. This Agreement and the Note embody the entire agreement and understanding between the Borrower and Lender with respect to the subject matter hereof and thereof. This Agreement supersedes all prior agreements and understandings relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Waivers, Etc**. No failure on the part of Lender to exercise and no delay in exercising any power or right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies Lender hereunder are cumulative and not exclusive of any right or remedy of Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Counterparts**. This Agreement can be executed in one or more counterparts.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **BORROWER:**<br>GRATUS CAPITAL PROPERTIES FUND III, LLC,<br> a Delaware limited liability company | **BORROWER:**<br>GRATUS CAPITAL PROPERTIES FUND III, LLC,<br> a Delaware limited liability company |
| By: | ![](gratus_ex64img5.jpg) |
| Name: | Jason C. Weimer |
| Title: | President |
| **LENDER:**<br>GRATUS CAPITAL, LLC,<br> a Minnesota limited liability company | **LENDER:**<br>GRATUS CAPITAL, LLC,<br> a Minnesota limited liability company |
| By: | ![](gratus_ex64img5.jpg) |
| Name: | Jason C. Weimer |
| Title: | President |

---

**FIRST AMENDMENT TO**

**STANDSTILL AGREEMENT**

**THIS FIRST AMENDMENT TO STANDSTILL AGREEMENT** (this "**Amendment**") is made effective as of February 26, 2024 (the "**Amendment Effective Date**") by and between GRATUS CAPITAL PROPERTIES FUND III, LLC, a Delaware limited liability company (the "**Borrower**") and GRATUS CAPITAL, LLC, a Minnesota limited liability Company or its assigns (the "**Lender**," and together with the Borrower, the "**Parties**").

**RECITALS**

A. The Borrower and Lender are parties to a certain Standstill Agreement dated as of December 31, 2022 (the "**Original Agreement**") whereby Lender agreed to delay the enforcement of any payments or remedies due to it by the Borrower with respect to an Amended and Restated Promissory Note dated October 4, 2022; and

B. The Borrower and Lender desire to amend certain terms and conditions of the Original Agreement as herein provided.

**NOW, THEREFORE**, in consideration of the premises and the mutual covenants herein contained, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

1. **Recitals**. The Recitals set forth above are true and correct in all material respects and incorporated herein by reference. For purposes of this Amendment, the Original Agreement, as revised by this Amendment, shall be collectively referred to as the "**Agreement**".

2. **Standstill Period Extension**. The parties agree that Section 4 of the Original agreement is hereby amended so that Lender agrees to refrain from enforcing any of the Existing Defaults continuing from the Effective Date through July 31, 2025.

3. **Continuity of Agreement**. Except as herein modified or amended, the provisions, conditions and terms of the Original Agreement will remain unchanged and in full force and effect.

4. **Counterparts**. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Electronic signatures, such as DocuSign, or facsimile signatures shall be binding as if an original signature page has been delivered.

[*This space intentionally left blank. Signature page follows.*]

**IN WITNESS WHEREOF**, the Borrower and the Lender have executed this Amendment effective as of the Amendment Effective Date.

---

| | |
|:---|:---|
| **BORROWER:**<br>GRATUS CAPITAL PROPERTIES FUND III, LLC,<br> a Delaware limited liability company | **BORROWER:**<br>GRATUS CAPITAL PROPERTIES FUND III, LLC,<br> a Delaware limited liability company |
| By: | ![](gratus_ex64img6.jpg) |
| Name: | Jason C. Weimer |
| Title: | President |
| **LENDER:**<br>GRATUS CAPITAL, LLC,<br> a Minnesota limited liability company | **LENDER:**<br>GRATUS CAPITAL, LLC,<br> a Minnesota limited liability company |
| By: | ![](gratus_ex64img6.jpg) |
| Name: | Jason C. Weimer |
| Title: | President |

---

***[Signature Page to First Amendment to Standstill Agreement]***

## Ex1A-8

**EXHIBIT 8**

**<u>SUBSCRIPTION ESCROW AGREEMENT</u>**

This Subscription Escrow Agreement (the "Agreement") is made effective as of June 8, 2021 (the "Effective Date"), by and between Gratus Capital Properties Fund III, LLC, with its principal place of business located at 5155 E. River Rd, Ste. 404, Fridley, MN 55421, (the "Company"), and WealthForge Securities, LLC, a Virginia limited liability company with its principle place of business located at 3015 W. Moore Street, Suite 102, Richmond, VA 23230 (the "Placement Agent"), and Atlantic Capital Bank, N.A., a Georgia banking corporation (the "Escrow Agent").

**<u>WITNESSETH:</u>**

**WHEREAS,**the Company proposes to offer for sale securities pursuant to that certain Form 1-A Offering Circular preliminarily dated June 9, 2021 ("Offering") a minimum of one million dollars ($1,000,000.00) (the "Minimum Offering Amount") of interests between Gratus Capital Properties Fund III, LLC (the "Securities.)" Subscribers, as defined below, may purchase the Securities in increments of not less than $10,000.00, although the Manager may Lower the minimum purchase requirement at its sole discretion, payable in cash pursuant to subscription agreements for the Offering ("Subscription Agreements") through one year from the date the offering is qualified by the Securities and Exchange Commission ("Offering Deadline") unless directed otherwise by the manager; and

**WHEREAS**, the Securities are proposed to be offered for sale to investors by participating broker-dealers pursuant to an exemption from registration under the Securities Act of 1933, as amended, and pursuant to exemptions from registration under certain state securities laws;

**NOW THEREFORE,**in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Company and the Escrow Agent agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Deposits in Escrow.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and Placement Agent shall deposit or cause to be deposited with the Escrow Agent all subscription proceeds received from investors who desire to purchase the securities (the "<u>Subscribers</u>") to be held in escrow under the terms of this Agreement until it receives notice of the Contingency from Placement Agent as described in Section 3. Proceeds the Escrow Agent receives from the Subscribers are "<u>Subscription Proceeds</u>." The Escrow Agent shall have no responsibility for Subscription Proceeds until such proceeds are actually received, via wire, check, or ACH, clear through normal banking channels and constitute collected funds. The Escrow Agent shall have no duty to collect or seek to compel payment of any Subscription Proceeds, except to place such proceeds or instruments representing such proceeds for deposit and payment through customary banking channels. "Contingency" means one million dollars ($1,000,000.00) in this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon request, the Company and/or Placement Agent shall deliver to the Escrow Agent, in a form acceptable to the Escrow Agent, schedules disclosing the name and address of each of the Subscribers, the number of Securities subscribed for by each Subscriber, the federal tax identification number of each of the Subscribers, the amount of Subscription Proceeds received from each Subscriber, and such other information as required. The Escrow Agent shall deposit each Subscriber's Subscription Proceeds into a non-interest-bearing account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Escrow Agent shall have no duty or responsibility to enforce the collection or demand payment of any funds from the Company, the Placement Agent, or any investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Rejection of Subscription Agreement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Subscription Agreement may be rejected by the Company in whole or in part. The Placement Agent shall promptly notify the Escrow Agent in writing in the event of any such rejection. Upon the receipt of a payment file from the Placement Agent instructing the Escrow Agent to return funds, the Escrow Agent shall promptly return funds tendered by such Subscriber, without deduction or payment of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a withdrawal of a Subscription Agreement by a Subscriber, the Placement Agent shall promptly notify the Escrow Agent in writing that a Subscription Agreement has been withdrawn by a Subscriber. Upon the receipt of a payment file from the Placement Agent instructing Escrow Agent to return funds, the Escrow Agent shall promptly return to such Subscriber the Subscription Proceeds tendered therewith, without deduction or payment of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Disbursements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Company acknowledges that Escrow Agent shall be obligated to disburse Subscription Proceeds only in accordance with Section 3(b) and 3(c) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon confirmation by the Escrow Agent that the Contingency has occurred, the Escrow Agent shall disburse Subscription Proceeds in its possession to the account of the Company in accordance with the instructions and payment file the Placement Agent provides (the "<u>Initial</u> <u>Disbursement</u>"). The Placement Agent shall notify the Escrow Agent (i) the timing and how to disburse Subscription Proceeds deposited after Initial Disbursement, if applicable, and (ii) upon the final disbursement of Subscription Proceeds, after which this Agreement terminates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Contingency does not occur and the Placement Agent has not theretofore notified the Escrow Agent in writing of an extension of the Offering, then upon receipt of a payment file from the Placement Agent, the Escrow Agent shall promptly refund to each of the Subscribers the full amount of Subscription Proceeds furnished by each such Subscriber, without deduction or payment of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On or before the execution and delivery of this Agreement, the Company shall provide to the Placement Agent, who will provide to the Escrow Agent a completed Form W-9 or Form W-8, whichever is appropriate. Notwithstanding anything to the contrary herein provided, the Escrow Agent shall have no duty to prepare or file any federal or state tax report or return with respect to any funds held pursuant to this Agreement or any income earned thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall make a copy of this Agreement available to each Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Investment of Subscription Proceeds; Compensation of Escrow Agent.</u>

The Company, the Placement Agent and the Escrow Agent further covenant, warrant and agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Escrow Agent shall deposit all Subscription Proceeds, at the written direction of the Company, in non-interest bearing accounts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Placement Agent shall promptly pay to the Escrow Agent compensation, and reimburse the Escrow Agent for costs and expenses, including the Escrow Agent's attorney's fees, all in accordance with the provisions the Master Services Agreement entered into by and between the Placement Agent and the Escrow Agent contemporaneously herewith, which Master Services Agreement incorporated herein by reference and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Duties of Escrow Agent;Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no additional duties or obligations shall be implied hereunder. In performing its duties under this Agreement, or upon the claimed failure to perform any of its duties hereunder, the Escrow Agent shall not be liable to anyone for any damages, losses or expenses which may be incurred as a result of the Escrow Agent's so acting or failing to so act; provided, however, that the Escrow Agent shall not be relieved from liability for damages arising from the Escrow Agent's gross negligence or willful misconduct. The Escrow Agent shall in no event incur any liability with respect to (i) any action taken or omitted to be taken in good faith upon advice of legal counsel, which may be counsel to either party hereto, given with respect to any question relating to the duties and responsibilities of the Escrow Agent hereunder, or (ii) any action taken or omitted to be taken in reliance upon any instrument delivered to the Escrow Agent and believed by it to be genuine and to have been signed or presented by the proper party or parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company warrants to and agrees with the Escrow Agent that, to its knowledge, there is no security interest in the Subscription Proceeds or any part of the Subscription Proceeds and that no financing statement under the Uniform Commercial Code of any jurisdiction is on file in any jurisdiction claiming a security interest in or describing, whether specifically or generally, the Subscription Proceeds or any part of the Subscription Proceeds; and the Escrow Agent shall have no responsibility at any time to ascertain whether or not any security interest exists in the Subscription Proceeds or any part of the Subscription Proceeds or to file any financing statement under the Uniform Commercial Code of any jurisdiction with respect to the Subscription Proceeds or any part thereof.

As an additional consideration for and as an inducement for the Escrow Agent to serve as escrow agent hereunder, it is understood and agreed that, in the event of any disagreement resulting in adverse claims and demands being made in connection with or for any money or other property involved in or affected by this Agreement, the Escrow Agent shall be entitled, at the option of the Escrow Agent, to refuse to comply with the demands of any parties so long as such disagreement shall continue. In such event, the Escrow Agent may elect not to make any delivery or other disposition of the Subscription Proceeds or any part of such Subscription Proceeds. Anything herein to the contrary notwithstanding, the Escrow Agent shall not be or become liable to such parties or any of them for the failure of the Escrow Agent to comply with the conflicting or adverse demands of such parties. The Escrow Agent shall be entitled to continue to refrain and refuse to deliver or otherwise dispose of the subscription proceed or any part thereof or to otherwise act hereunder, as stated above, unless and until:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the rights of such parties have been finally settled or duly adjudicated in a court having jurisdiction of the parties and the Subscription Proceeds and the Escrow Agent, has received written instructions as to disbursement thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the parties have reached an agreement resolving their differences and have notified the Escrow Agent in writing of such agreement and have provided the Escrow Agent with indemnity satisfactory to the Escrow Agent against any liability, claims or damages resulting from compliance by the Escrow Agent with suchagreement.

In the event of a disagreement as described above, the Escrow Agent shall have the right, in addition to the rights described above and at the option of Escrow Agent, to tender into the registry or custody of any court having jurisdiction, all money and property comprising the Subscription Proceeds and may take such other legal action as may be appropriate or necessary, in the opinion of Escrow Agent or its legal counsel. Upon such tender, the Escrow Agent shall be discharged from all further duties under this Agreement; provided, however, that the filing of any such legal proceedings shall not deprive the Escrow Agent of its compensation hereunder earned prior to such filing and discharge of the Escrow Agent of its duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company agrees that in the event any controversy arises under or in connection with this Agreement or the Subscription Proceeds or the Escrow Agent is made a party to or intervenes in any litigation pertaining to this Agreement or the Subscription Proceeds, to pay to the Escrow Agent reasonable compensation for its extraordinary services and to reimburse the Escrow Agent for all costs and expenses, including legal fees and expenses, associated with such controversy or litigation; provided, however, that such compensation and legal reimbursement shall not apply if the controversy relates to the Escrow Agent's gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Escrow Agent may resign at any time from its obligations under this Agreement by providing written notice to the Company and Placement Agent. Such resignation shall be effective on the date set forth in such written notice, which shall be no earlier than ninety (90) days after such written notice has been given. In the event no successor escrow agent has been appointed on or prior to the date such resignation is to become effective, the Escrow Agent shall be entitled to tender into the custody of any court of competent jurisdiction all assets then held by it hereunder and shall thereupon be relieved of all further duties and obligations under this Agreement; provided however, the Escrow Agent shall be entitled to its compensation earned prior thereto. The Escrow Agent shall have no responsibility for the appointment of a successor escrow agent hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Escrow Agent shall have no obligation to take any legal action in connection with this Agreement or its enforcement, or to appear in, prosecute or defend any action or legal proceeding which would or might involve the Escrow Agent in any cost, expense, loss or liability unless security and indemnity satisfactory to the Escrow Agent, shall be furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company and Placement Agent jointly and severally agree to indemnify the Escrow Agent and each of its officers, directors, employees and agents and to save the Escrow Agent and each of its officers, directors, employees and agents harmless from and against any and all Claims (as hereunder defined) and Losses (as hereinafter defined) which may be incurred by the Escrow Agent or any of such officers, directors, employees or agents as a result of Claims asserted against Escrow Agent or any of such officers, directors, employees or agents directly or indirectly as a result of or in connection with Escrow Agent's serving in the capacity of escrow agent under this Agreement, other than Claims relating to damages arising from the Escrow Agent's gross negligence or willful misconduct. For the purposes hereof, the term "Claims" shall mean all claims, lawsuits, causes of action or other legal actions and proceedings of whatever nature brought against (whether by way of direct action, counterclaim, cross action or interpleader) the Escrow Agent or any such officer, director, employee or agent, even if groundless, false or fraudulent, so long as the claim, lawsuit, cause of action or other legal action or proceeding is alleged or determined, directly or indirectly, to arise out of, result from, relate to or be based upon, in whole or inpart:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acts or omissions of the Company and Placement Agent, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the appointment of the Escrow Agent under this Agreement, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the performance by the Escrow Agent of its powers and duties under this Agreement, other than claims relating to damages arising from the Escrow Agent's gross negligence or willful misconduct.

The term "Losses" shall mean all losses, costs, damages, expenses, judgments and liabilities of whatever nature (including but not limited to attorneys', accountants' and other professionals' fees, litigation and court costs and expenses and amounts paid in settlement), directly or indirectly resulting from, arising out of or relating to one or more Claims. Upon the written request of the Escrow Agent or any such officer, director, employee or agent (each referred to hereinafter as an "Indemnified Party"), the Company agrees to assume the investigation and defense of any Claim, including the employment of counsel acceptable to the applicable Indemnified Party and the payment of all expenses related thereto and, notwithstanding any such assumption, the Indemnified Party shall have the right, and the Company and Placement Agent agree to pay the costs and expense thereof, to employ separate counsel with respect to any such Claim and to participate in the investigation and defense thereof in the event that such Indemnified Party shall have been advised by legal counsel that there may be one or more legal defenses available to such Indemnified Party which are different from or additional to those available to the Company or the Placement Agent. The Company and Placement Agent hereby agree that the indemnifications and protections afforded Escrow Agent and the other Indemnified Parties in this section shall survive the termination of this Agreement and any resignation or removal of the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company acknowledges that the Escrow Agent is serving as escrow agent for the limited purposes set forth herein and represents, covenants and warrants to the Escrow Agent that no statement or representation, whether oral or in writing, has been or will be made to any Subscriber to the effect that the Escrow Agent has investigated the desirability or advisability of investment in the Securities or approved, endorsed or passed upon the merits of such investment or is otherwise involved in any manner with the transactions contemplated hereby, other than as Escrow Agent under this Agreement. It is further agreed that the Company shall not use or permit the use of the name "Atlantic Capital", "Atlantic Capital Bank, N.A." or any variation thereof in any sales presentation, placement or offering memorandum or literature pertaining directly or indirectly to the Offering except strictly in the context of the duties of the Escrow Agent as escrow agent under this Agreement and in general references to the Placement Agent's frequent retention of the Escrow Agent. Any breach or violation of the paragraph shall be grounds for immediate termination of this Agreement by the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Escrow Agent shall have no duty or responsibility for determining whether the Securities or the offer and sale thereof conform to the requirements of applicable Federal or state securities laws, including but not limited to the Securities Act of 1933 or the Securities Exchange Act of 1934. The Company and the Placement Agent represent and warrant to the Escrow Agent that the Securities and the Offering will comply in all respects with applicable Federal and state securities laws and further represents and warrants that the Company has obtained and acted upon the advice of legal counsel with respect to such compliance with applicable Federal and state securities laws. The Company acknowledges that the Escrow Agent has not participated in the preparation or review of any sales or offering material relating to the Offering or the Securities. In addition to any other indemnities provided for in this Agreement, the Company agrees to indemnify and hold harmless the Escrow Agent and each of its officers, directors, agents and employees from and against all claims, liabilities, losses and damages (including attorneys' fees) incurred by the Escrow Agent or such persons and which directly or indirectly result from any violation or alleged violation of any Federal or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Notices</u>.

Any notices, elections, demands, requests and responses thereto permitted or required to be given under this Agreement shall be in writing, signed by or on behalf of the party giving the same, and addressed to the other party at the address of such other party set forth below or at such other address as such other party may designate in writing in accordance herewith. Any such notice, election, demand, request or response shall be addressed as follows and shall be deemed to have been delivered upon receipt by the addressee thereof:

---

| | |
|:---|:---|
| If to Escrow Agent:  | Atlantic Capital Bank,<br> N.A. Attn: John Seeds<br> 945 East Paces Ferry Road,<br> 16<sup>th</sup>Floor, Atlanta, GA 30326<br> E-mail: <u>john.seeds@atlcapbank.com</u> |
| If to Company: | Gratus Capital Properties Fund III, LLC<br> 5155 E. River Rd, Ste. 403, Fridley, MN 55421<br> E-Mail: hello@gratusfunds.com<br> Tax identification # 85-4126748 |
| If to Placement Agent:  | WealthForge Securities, LLC<br> 3015 W Moore St, Suite 102<br> Richmond, VA 23230<br> E-mail: <u>jraper@wealthforge.com</u><br> Tax identification #: 27-068786 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Successors and Assigns;Amendment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Construction</u>.

This Agreement shall be construed and enforced according to the laws of Georgia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Term</u>.

This Agreement shall terminate and the Escrow Agent shall be discharged of all responsibilities hereunder at such time as the Escrow Agent shall have disbursed all Subscription Proceeds in accordance with the provisions of this Agreement; provided, however, that the provisions of Sections 4(b), 5(g) and 5(i) hereof shall survive any termination of this Agreement and any resignation or removal of the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Entire</u><u>Agreement</u>

This Agreement, including any exhibits, schedules, or separate agreements directly referenced herein, represents the entire and final agreement between the parties, and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties.

*[REMAINDER INTENTIONALLY BLANK SIGNATURE PAGE TO FOLLOW]*

**IN WITNESS WHEREOF**, the Parties hereto have caused this Agreement to be executed as of the date first above written.

---

| | |
|:---|:---|
| Atlantic Capital Bank, N.A., as Escrow Agent | Atlantic Capital Bank, N.A., as Escrow Agent |
|  | ![](gratus_ex8img14.jpg) |
| By: | John Seeds |
| Title: | Senior Vice President |
| Company: Gratus Capital Properties Fund III, LLC | Company: Gratus Capital Properties Fund III, LLC |
|  | ![](gratus_ex8img15.jpg) |
| By: | Robert Barlau |
| Title: | Partner |
| Placement Agent: WealthForge Securities, LLC | Placement Agent: WealthForge Securities, LLC |
|  | ![](gratus_ex8img16.jpg) |
| By:  | Donna Arles |
| Title: | Financial Operations Principal |

---

Rev. 2/10/2016

## Ex1A-11

**EXHIBIT 11.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To The Members and Board of Partner of Gratus Capital Properties Fund III, LLC

We consent to the inclusion in the Form 1-A Regulation A Offering Statement Under the Securities Act of 1933 of our report dated June 18th, 2025, of the consolidated balance sheet and the related consolidated statements of operations, Members' equity, and cashflows for the years ended December 31, 2024, and 2023.

*/s/ Boladale Lawal* 

**BOLADALE LAWAL & CO**

Chartered Accountant

PCAOB No:6993

**Lagos, Nigeria**

June 20, 2025

## Ex1A-12

**EXHIBIT 12.1**

![](gratus_ex121img1.jpg)

June 20, 2025

***Re: Offering Circular for Gratus Capital Properties Fund III, LLC on Form 1-A***

To whom it may concern:

This firm has been retained by Gratus Capital Properties Fund III, LLC (the "Company"), in connection with the Offering Circular (the "Offering Circular") on Form 1-A, relating to the offering of up to $50,000,000 in Class A and Class B Membership Interests to be sold. You have requested that we render our opinion as to whether or not the securities proposed to be issued on terms set forth in the Offering Circular will be validly issued, fully paid, and non-assessable. The purchasers of the securities will have no obligation to make payments to the Company other than the price for the securities. Purchasers will not have any obligations to creditors of the Company due to the purchasers' ownership of the Class A or Class B Membership Interests.

In connection with the request, we have examined the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Articles of Organization of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Operating Agreement of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Offering Circular

We have examined such other corporate records and documents and have made such other examinations, as we have deemed relevant.

Based on the above examination, we are of the opinion that the securities of the Company to be issued pursuant to the Offering Circular are validly authorized and will be validly issued, fully paid, and non-assessable.

Sincerely,

/s/ Dodson Robinette PLLC

DODSON ROBINETTE PLLC

1431 E. McKinney St., Ste 130

Denton, TX 76209

Email: richard@crowdfundinglawyers.net

Phone: (323) 799-1342

Web: www.CrowdfundingLawyers.net

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

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Gratus Capital Properties Fund III LLC

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2020

**CIK:** 0001867706

**I.R.S. Employer Identification Number:** 85-4126748

**Primary Standard Industrial Classification Code:** 6500

**Total number of full-time employees:** 0

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 718 Washington Ave N, Ste. 400, —, Minneapolis, MN 55401

**Company Phone:** 651-999-5344

**Person to contact:** Jonathan Sabo, Esq.

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount       |
|:---|:---|
| Cash and Cash Equivalents                | $1265231.00  |
| Investment Securities                    | $3045160.00  |
| Accounts and Notes Receivable            | $40754.00    |
| Property, Plant and Equipment (PP&E)     | $34617259.00 |
| Total Assets                             | $45858193.00 |
| Accounts Payable and Accrued Liabilities | $655893.00   |
| Long-Term Debt                           | $32899604.00 |
| Total Liabilities                        | $34837723.00 |
| Total Stockholders' Equity               | $8444278.00  |
| Total Liabilities and Equity             | $45858193.00 |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $1123209.00  |
| Costs and Expenses Applicable to Revenues | $1293877.00  |
| Depreciation and Amortization             | $2336634.00  |
| Net Income                                | $-2685732.00 |
| Earnings Per Share - Basic                | 0.00         |
| Earnings Per Share - Diluted              | 0.00         |

**Auditor Information**

| Metric          | Amount              |
|:---|:---|
| Name of Auditor | Boladale Lawal & CO |

### Outstanding Securities

| Class   |   Outstanding | CUSIP   | Publicly Traded   |
|:---|---:|:---|:---|
| Class A |       1225663 | None    | None              |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** No

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** Yes

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 4068347      |
| Number of securities outstanding                                | 1467152      |
| Price per security                                              | $12.29       |
| Issuer's aggregate offering price                               | $50000000.00 |
| Aggregate offering price of securities held by security holders | $0.00        |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $50000000.00 |

**Anticipated Fees**

| Service Provider   | Name                  | Fees      |
|:---|:---|:---|
| Auditor            | Boladale Lawal & CO   | $0.00     |
| Legal              | Dodson Robinette PLLC | $35000.00 |
| Promoters          |  | $0.00     |

**Estimated Net Proceeds to the Issuer:** $49387720.00

### Item 5. Jurisdictions in Which Securities are to be Offered

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

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Gratus Capital Properties Fund III, LLC

**Title of Securities Issued:** Class A Units

**Total Amount of Securities Issued:** 609983

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** $6,758,611.64; 609,983 Class A Units sold at $11.08 per Unit

**Basis for aggregate consideration:** —

**Securities Act Exemption:** Regulation A