# EDGAR Filing Document

**Accession Number:** 0001952204
**File Stem:** 0001952204-23-000002
**Filing Date:** 2023-1
**Character Count:** 442389
**Document Hash:** 0ecf5b466b727af5906ac1b8a7fa62d8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001952204-23-000002.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0001952204-23-000002

**CONFORMED SUBMISSION TYPE**: 1-A

**PUBLIC DOCUMENT COUNT**: 10

**FILED AS OF DATE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** XIV-I INVEST 1, LLC
- **CENTRAL INDEX KEY:** 0001952204
- **IRS NUMBER:** 883069636
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12139
- **FILM NUMBER:** 23561675

**BUSINESS ADDRESS:**
- **STREET 1:** 5784 LAKE FORREST DRIVE
- **STREET 2:** SUITE 209
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30328
- **BUSINESS PHONE:** (404) 585-4925

**MAIL ADDRESS:**
- **STREET 1:** 5784 LAKE FORREST DRIVE
- **STREET 2:** SUITE 209
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30328

## Part

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION ("SEC") DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SELLING LITERATURE. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THIS INVESTMENT INVOLVES A DEGREE OF RISK THAT MAY NOT BE SUITABLE FOR ALL PERSONS. ONLY THOSE INVESTORS WHO CAN BEAR THE LOSS OF A SIGNIFICANT PORTION OF THEIR INVESTMENT SHOULD PARTICIPATE IN THE INVESTMENT (SEE "RISK FACTORS" BELOW).

AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY 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 THE 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 SECURITIES OFFERED HAVE NOT BEEN APPROVED OR DISAPPROVED BY ANY STATE REGULATORY AUTHORITY NOR HAS ANY STATE REGULATORY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THIS OFFERING CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

*Form 1-A Offering Circular Format for Regulation A Tier 2 Offering*

**Preliminary Offering Circular**

For

**XIV-I INVEST 1, LLC**

A Delaware Limited Liability Company

**January 27, 2023**

**SECURITIES OFFERED:** Equity in the form of Class A Membership Interests denominated in Units

**PRICE PER MEMBERSHIP UNIT:** $10.00 per Class A Unit

**MAXIMUM OFFERING AMOUNT:** $75,000,000.00 for 7,500,000 Class A Units

**MINIMUM OFFERING AMOUNT:** $1,000,000.00

**MINIMUM INVESTMENT AMOUNT:** $100.00

**CONTACT INFORMATION:** XIV-I Invest 1, LLC

5784 Lake Forrest Drive, Suite 209

Atlanta, Georgia 30328

Phone: (404) 585-4925

**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, Investors are encouraged 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.** 

XIV-I Invest 1, LLC (the "Company," or the "Fund") is a newly-organized Delaware limited liability company formed to purchase and assemble a portfolio of affordable multi-family housing, single-family housing, and unimproved land properties. The Company aims to make a positive, measurable impact on society and the environment through the creation and servicing of its affordable property portfolio. The Company intends to focus its operations on the Atlanta, Georgia metropolitan area, but may invest in other metropolitan areas across the Southeastern United States. The Company is offering by means of this offering circular (the "Offering Circular") equity in the form of 7,500,000 Class A membership interests (the "Membership Interests," "Membership Units," or, singularly, an "Interest" or "Unit") at a price of $10.00 per Unit on a best-efforts basis.

The Company intends to raise Offering Proceeds to engage in the following activities: (i) acquiring, (ii) managing, (iii) developing, (iv) rehabilitating, (v) preserving, and (vi) liquidating affordable housing real property assets, including for-lease multi-family, for-sale single-family, and unimproved land properties (see "Use of Proceeds" below). If the Company raises substantially less than the Maximum Offering Amount, the Company may not be able to acquire a diverse portfolio of affordable real property assets.

Each Membership Unit is offered at a price of $10.00, and the Minimum Investment Amount per Investor is $100.00 for ten (10) Units. All Investor funds will be held in an escrow account administered by North Capital Private Securities Corporation (the "Escrow Agent"), until the Minimum Offering Amount has been met, at which time all Investor funds will be deposited into the Company's main operating account in exchange for the Membership Interests.

Sales of the Membership Interests pursuant to this Regulation A Tier 2 Offering (the "Offering") will commence on the date the Company is made aware of its qualification by the Securities and Exchange Commission. Sales of the Membership Interests will continue until the Maximum Offering Amount is met or until expiration of one year. The Membership Interests will be offered through the Company's website, found at www.investinxiv.com (the "Platform"), on a continuous and ongoing basis. The acceptance of Investor subscriptions may be briefly paused at times to allow the Company to process and settle subscriptions that have been received effectively and accurately (see "Terms of the Offering" below). There are no selling security holders in this Offering.

The Company is managed by XIV-I MANAGER LLC, a Georgia limited liability company (the "Manager"), which is responsible for day-to-day management, investment, and development decisions related to the Company. The Manager is wholly-owned by Monica Poole (the "Manager of the Company's Manager," or the "Manager of the Manager").

The Manager will receive compensation from the Company and is subject to certain conflicts of interest (see the "Compensation of the Manager" and "Conflicts of Interest" sections below for more details). Investing in the Membership Interests is speculative and involves substantial risks, including risk of complete loss. Prospective Investors should purchase these securities only if they can afford a complete loss of their investment **(see "Risk Factors" section below starting on Page 11).** There are material income tax risks associated with investing in the Company that prospective Investors should consider. See "Federal Income Tax Considerations" below.

The Company will commence sales of the Membership Interests immediately upon qualification of the Offering by the SEC. The Company anticipates that sales will commence Q1-2023.

**OFFERING PROCEEDS TABLE**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Price to public** (1) | &nbsp;&nbsp; **Commissions** (2)<br>| &nbsp;&nbsp;**Proceeds to the issuer** (3) | &nbsp;&nbsp;**Proceeds to other persons** (4) |
| &nbsp;&nbsp; **Per Unit Amount**<br>| &nbsp;&nbsp;$10.00 | &nbsp;&nbsp;$0.10 | &nbsp;&nbsp;$9.899 | &nbsp;&nbsp;$0.001 |
| &nbsp;&nbsp;**Minimum Investment Amount** | &nbsp;&nbsp;$100.00 | &nbsp;&nbsp; $1.00<br>| &nbsp;&nbsp;$98.99 | &nbsp;&nbsp;$0.01 |
| &nbsp;&nbsp; **Minimum Offering Amount**<br>| &nbsp;&nbsp;$1000000.00 | &nbsp;&nbsp; $10000.00<br>| &nbsp;&nbsp;$915000.00 | &nbsp;&nbsp;$75000.00 |
| &nbsp;&nbsp; **Maximum Offering Amount**<br>| &nbsp;&nbsp;$75000000.00 | &nbsp;&nbsp; $750000.00<br>| &nbsp;&nbsp;$74175000.00 | &nbsp;&nbsp;$75000.00 |

---

(1) The Offering price to Investors was arbitrarily determined by the Manager.

(2) There is no underwriter involved with this Offering. Andes Capital, an independent FINRA registered broker-dealer, is assisting the Company to sell the Membership Interests on a best-efforts basis, in exchange for a 1.0% commission on the aggregate amount raised by the Company. This does not include direct sales by Andes Capital, which carry a 4.0% commission. If the gross Proceeds received by the Company were solely from the direct selling efforts of Andes Capital, the maximum commissions due to Andes Capital would be $3,000,000. No commissions for selling Membership Interests will be paid to the Manager.

(3) Net Deployable Proceeds to the Company only reflect an approximation of the Proceeds, less estimated commissions to the broker-dealer, less the deduction of organization and offering expenses reimbursement to the Manager. Any expenses associated with the Membership Interests and/or other investments of the Company shall be paid by the Company in accordance with the terms set forth herein and in the Operating Agreement.

(4) There are no selling security holders in this Offering. The initial expenses associated with this Offering, including legal and accounting expenses, have been or will be paid by Affiliates of the Company, which will be reimbursed from the Proceeds from the Offering. An Affiliate of the Company, XIV-I, INC. (the "Sponsor"), in exchange for payment of initial organizational and Offering expenses on behalf of the Company, has been issued 1,000 Class B Membership Interests, which represent 100% of the Company's Class B Membership Interests. Additionally, the Company intends to reimburse Affiliate MCE POOLE, INC. for organizational and Offering expenses incurred on behalf of the Company in excess of $25,000.00, which are estimated to be approximately $100,000.00. The reimbursement amount to MCE POOLE, INC. is estimated to be $75,000.00 as of the Date of this Offering Circular.

**RULE 251(D)(3)(I)(F) DISCLOSURE.** RULE 251(D)(3)(I)((F) PERMITS REGULATION A OFFERINGS TO CONDUCT ONGOING CONTINUOUS OFFERINGS OF SECURITIES FOR MORE THAN THIRTY (30) DAYS AFTER THE QUALIFICATION DATE IF: (1) THE OFFERING WILL COMMENCE WITHIN TWO (2) DAYS AFTER THE QUALIFICATION DATE; (2) THE OFFERING WILL BE MADE ON A CONTINUOUS AND ONGOING BASIS FOR A PERIOD THAT MAY BE IN EXCESS OF THIRTY (30) DAYS OF THE INITIAL QUALIFICATION DATE; (3) THE OFFERING WILL BE IN AN AMOUNT THAT, AT THE TIME THE OFFERING CIRCULAR IS QUALIFIED, IS REASONABLY EXPECTED TO BE OFFERED AND SOLD WITHIN THREE (3) YEARS FROM THE INITIAL QUALIFICATION DATE; AND (4) THE SECURITIES MAY BE OFFERED AND SOLD ONLY IF NOT MORE THAN THREE (3) YEARS HAVE ELAPSED SINCE THE INITIAL QUALIFICATION DATE OF THE OFFERING, UNLESS A NEW OFFERING CIRCULAR IS SUBMITTED AND FILED BY THE COMPANY PURSUANT TO RULE 251(D) (3)(I)((F) WITH THE SEC COVERING THE REMAINING SECURITIES OFFERED UNDER THE PREVIOUS OFFERING; THEN THE SECURITIES MAY CONTINUE TO BE OFFERED AND SOLD UNTIL THE EARLIER OF THE QUALIFICATION DATE OF THE NEW OFFERING CIRCULAR OR THE ONE HUNDRED EIGHTY (180) CALENDAR DAYS AFTER THE THIRD ANNIVERSARY OF THE INITIAL QUALIFICATION DATE OF THE PRIOR OFFERING CIRCULAR. THE COMPANY INTENDS TO OFFER THE SHARES DESCRIBED HEREIN ON A CONTINUOUS AND ONGOING BASIS PURSUANT TO RULE 251(D)(3)(I)(F). THE COMPANY INTENDS TO COMMENCE THE OFFERING IMMEDIATELY AND NO LATER THAN TWO (2) DAYS FROM THE INITIAL QUALIFICATION DATE. THE COMPANY REASONABLY EXPECTS TO OFFER AND SELL THE SECURITIES STATED IN THIS OFFERING CIRCULAR WITHIN ONE (1) YEARS FROM THE INITIAL QUALIFICATION DATE.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Page** |
| &nbsp;&nbsp;**[SUMMARY OF THE OFFERING](#a_001)** | &nbsp;&nbsp;[2](#a_001) |
| &nbsp;&nbsp;**[FORWARD-LOOKING STATEMENTS](#a_002)** | &nbsp;&nbsp;[3](#a_002) |
| &nbsp;&nbsp;**[INVESTOR SUITABILITY STANDARDS](#a_003)** | &nbsp;&nbsp;[3](#a_003) |
| &nbsp;&nbsp;**[IDENTIFICATION OF AFFILIATES](#a_004)** | &nbsp;&nbsp;[4](#a_004) |
| &nbsp;&nbsp;**[STATE LAW EXEMPTION](#a_005)** | &nbsp;&nbsp;[4](#a_005) |
| &nbsp;&nbsp;**[RISK FACTORS](#a_006)** | &nbsp;&nbsp;[5](#a_006) |
| &nbsp;&nbsp;**[INVESTMENT RISKS](#a_007)** | &nbsp;&nbsp;[5](#a_007) |
| &nbsp;&nbsp;**[BUSINESS RISKS](#a_008)** | &nbsp;&nbsp;[7](#a_008) |
| &nbsp;&nbsp;**[DILUTION](#a_009)** | &nbsp;&nbsp;[9](#a_009) |
| &nbsp;&nbsp;**[PLAN OF DISTRIBUTION](#a_010)** | &nbsp;&nbsp;[9](#a_010) |
| &nbsp;&nbsp;**[USE OF PROCEEDS](#a_011)** | &nbsp;&nbsp;[11](#a_011) |
| &nbsp;&nbsp;**[DESCRIPTION OF THE BUSINESS](#a_012)** | &nbsp;&nbsp;[12](#a_012) |
| &nbsp;&nbsp;**[DESCRIPTION OF PROPERTY](#a_013)** | &nbsp;&nbsp;[14](#a_013) |
| &nbsp;&nbsp;**[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION](#a_014)** | &nbsp;&nbsp;[14](#a_014) |
| &nbsp;&nbsp;**[MANAGER OF THE COMPANY'S MANAGER](#a_015)** | &nbsp;&nbsp;[15](#a_015) |
| &nbsp;&nbsp;**[BOARD OF ADVISORS](#a_016)** | &nbsp;&nbsp;[16](#a_016) |
| &nbsp;&nbsp;**[LEGAL PROCEEDINGS DISCLOSURE](#a_017)** | &nbsp;&nbsp;[17](#a_017) |
| &nbsp;&nbsp;**[COMPENSATION OF THE MANAGER](#a_018)** | &nbsp;&nbsp;[17](#a_018) |
| &nbsp;&nbsp;**[CONFLICTS OF INTEREST](#a_019)** | &nbsp;&nbsp;[18](#a_019) |
| &nbsp;&nbsp;**[SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS](#a_020)** | &nbsp;&nbsp;[18](#a_020) |
| &nbsp;&nbsp;**[INTEREST OF MANAGEMENT AND CERTAIN OTHER TRANSACTIONS](#a_021)** | &nbsp;&nbsp;[18](#a_021) |
| &nbsp;&nbsp;**[FEDERAL INCOME TAX CONSIDERATIONS](#a_022)** | &nbsp;&nbsp;[19](#a_022) |
| &nbsp;&nbsp;**[ERISA CONSIDERATIONS](#a_023)** | &nbsp;&nbsp;[21](#a_023) |
| &nbsp;&nbsp;**[SECURITIES BEING OFFERED](#a_024)** | &nbsp;&nbsp;[22](#a_024) |
| &nbsp;&nbsp;**[PART F/S](#a_025)** | &nbsp;&nbsp;[25](#a_025) |
| &nbsp;&nbsp;**[EXHIBIT INDEX](#a_026)** | &nbsp;&nbsp;[26](#a_026) |
| &nbsp;&nbsp;**[SIGNATURES](#a_027)** | &nbsp;&nbsp;[27](#a_027) |

---

**SUMMARY OF THE OFFERING**

The following information is only a brief summary of, and is qualified in its entirety by, the detailed information appearing elsewhere in this Offering. This Offering Circular, together with the exhibits attached including, but not limited to, the Operating Agreement, a copy of which is attached hereto as Exhibit 3, and should be carefully read in its entirety before any investment decision is made. If there is a conflict between the terms contained in this Offering Circular and the Operating Agreement, the Operating Agreement shall prevail and control, and no Investor should rely on any reference herein to the Operating Agreement without consulting the actual underlying document.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**COMPANY INFORMATION AND BUSINESS** | &nbsp;&nbsp; XIV-I Invest 1, LLC is a Delaware limited liability company with a principal place of business located at 5784 Lake Forrest Drive, Suite 209 Atlanta, GA 30328 Phone: (404) 585-4925.<br>|
| &nbsp;&nbsp;**MANAGEMENT** | &nbsp;&nbsp; The Company is managed by Affiliate XIV-I MANAGER LLC (the "Manager"). The day-to-day management and investment decisions of the Company are vested in Monica Poole, the Manager of the Company's Manager.<br>|
| &nbsp;&nbsp;**THE OFFERING** | &nbsp;&nbsp; This Offering is the first capital raise by the Company in its history. The Company is exclusively selling Company equity in the form of Class A Membership Interests. The Membership Interests are denominated into Units. The Company will use the Proceeds of this Offering to begin its operations.<br>|
| &nbsp;&nbsp;**SECURITIES BEING OFFERED** | &nbsp;&nbsp; The Membership Interests are being offered at a purchase price of $10.00 per Unit. The Minimum Offering Amount for any Investor is $100.00. Upon purchase of Membership Interests, a Member is granted (i) the right to vote on all matters subject to a Class A Member vote; and (ii) the right to receive dividends or disbursements, when the Manager declares such dividends or disbursements. For a complete summary of the rights granted to Members, see the "Securities Being Offered" section below.<br>|
| &nbsp;&nbsp;**COMPENSATION TO MANAGER** | &nbsp;&nbsp; In addition to the fees detailed in the "Compensation of the Manager" section below, an Affiliate of the Manager will receive approximately $75,000.00 for the reimbursement of Offering costs upon the release of the Proceeds from escrow once the Proceeds received equals the Minimum Offering Amount. The Manager of the Company will not be compensated through commissions for the sale of the Membership Interests through this Offering.<br>|
| &nbsp;&nbsp;**PRIOR EXPERIENCE OF COMPANY MANAGEMENT** | &nbsp;&nbsp; Monica Poole, Manager of the Company's Manager, XIV-I MANAGER LLC, and other companies, including Affiliates, has provided real estate advisory and brokerage related services since 2001 and leads the direction and execution of transactions across commercial and residential real estate disciplines including acquisitions, dispositions, restructurings, deal sourcing, investment analysis, forecasting and alternative capital structuring over the past 21 years. See the "Manager of the Company's Manager" section below for a more detailed explanation.<br>|
| &nbsp;&nbsp;**INVESTOR SUITABILITY STANDARDS** | &nbsp;&nbsp; The Membership Interests will not be sold to any person unless they are a "Qualified Purchaser". A Qualified Purchaser includes: (1) an "Accredited Investor" as that term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933 (the "Securities Act"); or (2) all other Investors who meet the investment limitations set forth in Rule 251(d)(2)(C) of Regulation A. Such persons as stated in (2) above must conform with the "Limitations on Investment Amount" as described in the next below.<br>Each person purchasing Membership Interests will be subject to the terms of the Operating Agreement, a copy of which attached hereto as Exhibit 3.<br>Each person acquiring Membership Interests may be required to represent that he, she, or it is purchasing the Membership Interests for his, her, or its own account for investment purposes and not with a view to resell or distribute the securities.<br>Each prospective purchaser of Membership Interests may be required to furnish such information or certification as the Company may require determining whether any person or entity purchasing Membership Interests is an Accredited Investor if such is claimed by the Investor.<br>|
| &nbsp;&nbsp;**LIMITATIONS ON INVESTMENT AMOUNT** | &nbsp;&nbsp; For Qualified Purchasers who are Accredited Investors, there is no limitation as to the amount invested through the purchase of Membership Interests. For non-Accredited Investors, the aggregate purchase price paid to the Company for the purchase of the Membership Interests cannot be more than 10% of the greater of the purchaser's (1) annual income or net worth, if purchaser is a natural person; or (2) revenue or net assets for the purchaser's most recently completed fiscal year if purchaser is a non-natural person.<br>Different rules apply to Accredited Investors and non-natural persons. Each Investor should review Rule 251(d)(2)(i)(C) of Regulation A before purchasing the Membership Interests.<br>|
| &nbsp;&nbsp;**COMMISSIONS FOR SELLING Membership Interests** | &nbsp;&nbsp; The Membership Interests will be offered and sold directly by the Company via the Manager. No commissions for selling the Membership Interests will be paid to the Company or the Manager.<br>The Company has engaged Andes Capital, an independent FINRA registered broker-dealer, to assist the Company with the sales of the Membership Interests in exchange for a 1.0% commission on the Company's aggregate sales of the Membership Interests.<br>The Company will pay Andes Capital an "Selling Commission" equal to 4.0% of the aggregate Proceeds received by the Company through Andes Capital's direct introductions and introductory efforts (see "Plan of Distribution" below).<br>|
| &nbsp;&nbsp;**NO LIQUIDITY** | &nbsp;&nbsp; There is no public market for the Membership Interests, and none is expected to develop. Additionally, the Membership Interests will be non-transferable, except as may be required by law, and will not be listed for trading on any exchange or automated quotation system (see "Securities Being Offered" below). Prospective Investors are urged to consult their own legal advisors with respect to secondary trading of the Membership Interests (see "Risk Factors" below).<br>|
| &nbsp;&nbsp;**LEVERAGING THE PORTFOLIO** | &nbsp;&nbsp; The Company may utilize funds provided by third parties to leverage the potential value of the Company's property asset portfolio. The Manager has the sole discretion as to the use of such leverage, and the terms of any such agreement between the Company and the third party providing such funds.<br>|
| &nbsp;&nbsp;**CONFLICTS OF INTEREST** | &nbsp;&nbsp; See "Risk Factors" below starting on Page 8, and also see "Conflicts of Interest" below beginning on Page 35.<br>|
| &nbsp;&nbsp;**COMPANY EXPENSES** | &nbsp;&nbsp; Except as otherwise provided herein, the Company shall bear all costs and expenses associated with the Offering, the operation of the Company, including, but not limited to, the annual tax preparation of the Company's tax returns, any state and federal income tax due, accounting fees, filing fees, independent audit reports, costs and expenses associated with the acquisition, rehabilitation, holding and management of real estate and costs and expenses associated with the disposition of real estate.<br>|

---

**FORWARD-LOOKING STATEMENTS**

Investors should not rely on forward-looking statements because they are inherently uncertain. Investors should not rely on forward-looking statements in this Offering Circular. This Offering Circular contains forward-looking statements that involve risks and uncertainties. The use of words such as "anticipated," "projected," "forecasted," "estimated," "prospective," "believes," "expects," "plans," "future," "intends," "should," "can," "could," "might," "potential," "continue," "may," "will," and similar expressions identify these forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which may apply only as of the date of this Offering Circular, and the Company undertakes no obligation to publicly update or revise any ‎forward-looking information, ‎other than as required by applicable law.

**INVESTOR SUITABILITY STANDARDS**

All persons who purchase the Units of the Fund pursuant to the Subscription Agreement, attached hereto as Exhibit 4, must comply with the Investor Suitability Standards as provided below. It is the responsibility of the purchaser of the Units to verify compliance with the Investor Suitability Standards. The Fund may request that Investor verify compliance, but the Fund is under no obligation to do so. By purchasing Units pursuant to this Offering, the Investor self-certifies compliance with the Investor Suitability Standards. If, after the Fund receives Investor's funds and transfers ownership of the Units, the Fund discovers that the Investor does not comply with the Investor Suitability Standards as provided, the transfer will be deemed null and void ab initio and the Fund will return Investor's funds to the purported purchaser. The amounts returned to the purported purchaser will be equal to the purchase price paid for the Units less any costs incurred by the Fund in the initial execution of the null purchase and any costs incurred by the Fund in returning the Investor's funds. These costs may include any transfer fees, sales fees/commissions, or other fees paid to transfer agents or brokers.

The Fund's Units are being offered and sold only to "Qualified Purchasers" as defined in Regulation A.

**<u>Qualified Purchasers</u>** include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Accredited Investors" defined under Rule 501(a) of Regulation D (as explained below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All other Investors so long as their investment in the Fund's Units does not represent more than 10% of the greater of the Investor's, alone or together with a spouse or spousal equivalent, 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).

The Units are offered hereby and sold to Investors that meet one of the two categories above, to qualify as an Accredited Investor, for purposes of satisfying one of the tests in the Qualified Purchaser definition, an Investor must meet one of the following conditions:

1) An **<u>Accredited Investor</u>**, in the context of a natural person, includes anyone who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Has a net worth over $1 million, either alone, or together with a spouse or spousal equivalent (excluding the value of the person's primary residence), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Holds in good standing a Series 7, 65, or 82 license.

2) **<u>Additional Accredited Investor categories</u>** include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any bank as defined in Section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the Securities and Exchange Act of 1934 (the "Exchange Act"); any insurance company as defined in Section 2(13) of the Exchange Act; any investment company registered under the Investment Fund Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Fund (SBIC) licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a State, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5 million any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5 million or, if a self-directed plan, with investment decisions made solely by persons who are Accredited Investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any organization described in Section 501(c)(3)(d) of the Internal Revenue Code of 1986, as amended (the "Code"), corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any director or executive officer, or fund of the issuer of the securities being sold, or any director, executive officer, or fund of a fund of that issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Section 506(B)(b)(2)(ii) of the Code; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Any entity in which all of the equity owners are Accredited Investors as defined above.

The Fund reserves the right to reject any Investor's subscription in whole or in part for any reason, including if the Fund determines in its sole and absolute discretion that such Investor is not a "Qualified Purchaser" for purposes of Regulation A.

**IDENTIFICATION OF AFFILIATES**

"Affiliates" of the Company shall mean any jointly-owned entities associated with the Company, as listed below:

**MCE POOLE, INC.**, d/b/a Dwelling Space Real Estate, a Georgia corporation

Role: Licensed real estate broker

Ownership: Wholly-owned by Monica Poole, the Manager of the Company's Manager

Description: MCE POOLE, INC. may serve as the Company's licensed real estate broker in property transactions

**XIV-I MANAGER LLC**, a Georgia limited liability company

Role: The Manager of the Company

Ownership: Wholly-owned by Monica Poole, the Manager of the Company's Manager

Description: XIV-I MANAGER LLC serves as the Manager of the Company

**XIV-I, INC.**, a Georgia corporation

Role: The Sponsor of the Company

Ownership: Wholly-owned by Monica Poole, the Manager of the Company's Manager

Description: Sole owner of the Company's Class B Membership Interests

**STATE LAW EXEMPTION**

As a Tier II Offering pursuant to Regulation A under the Act, this Offering is exempt from state law "blue sky" review, subject to meeting certain state filing requirements and complying with certain anti-fraud provisions, to the extent that the Membership Interests offered hereby are offered and sold only to "Qualified Purchasers" or at a time when the Membership Interests are listed on a national securities exchange, if at all.

**RISK FACTORS**

Any investment in the Membership Interests involves a significant degree of risk and is suitable only for Investors who have no need for liquidity in this investment. When analyzing this Offering, prospective Investors should carefully consider each of the following risks.

**INVESTMENT RISKS**

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***The Offering Price and Minimum Investment Amount have been arbitrarily determined by the Company and do not reflect the value of the assets that have been or will be acquired by the Company.***

The Offering price per Unit and the Minimum Investment Amount have been arbitrarily determined by the Company and do not bear any relationship to the assets that have been or are to be acquired by the Company or any other established criteria or indicia for valuing a business. The Manager may (in its sole and absolute discretion) accept or require a lesser or greater Minimum Investment Amount pursuant to a submission and subsequent qualification of a Post qualification amendment. In addition, the assets that are to be acquired by the Company could have a higher or lower value than the Offering price, which may result in the valuation of the Company being lower or higher than the Offering price.

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***Investment in the Membership Interests is speculative, and each Investor assumes the risk of losing his, her, or its entire investment.***

Investment in these Membership Interests is speculative, and by investing, each Investor assumes the risk of losing the entire investment. The Company has limited operations as of the date of this Offering Circular and will be solely dependent upon the efforts of the Manager to develop and manage the property asset portfolio that is developed, all of which are subject to the risks described herein. Accordingly, only Investors who are able to bear the loss of their entire investment and who otherwise meet the Investor Suitability Standards should consider purchasing these Membership Interests.

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***The Company's ability to commence operations is dependent on its ability to raise funds.***

In order to execute the Plan of Operations, the Company will require varying amounts of capital based on the properties the Company intends to acquire. The Company's ability to commence operations is largely dependent upon its ability to raise funds through this Offering and thereby securing its real estate property investments. Investors should be aware that there is no assurance that the Company will obtain capital investments necessary to commence operations and become profitable. In addition, receipt of capital investments of less than the Maximum Offering Amount will reduce the ability of the Company to spread investment risks through diversification of its property asset portfolios.

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***There is no federal registration therefore there is limited governmental review.***

This Offering has not been registered with the U.S. Securities and Exchange Commission or with any state regulators. Although certain states require notice filing pursuant to pertinent state securities laws, the Offering is largely subject to limited governmental review.

***There is limited redemption and transferability of Membership Interests and no public market for the Membership Interests.***

Membership Interests cannot redeemed until seven (7) years has elapsed after the issuance of the Membership Interests, except in the Manager's sole and absolute discretion, and with the Manager's prior written consent. There is no public market for the Membership Interests, and none is expected to develop in the future. Even if a potential buyer could be found, the transferability of these Membership Interests may be limited. Investors must be capable of bearing the economic risks of this investment with the understanding that these Membership Interests may not be liquidated by resale or redemption and should expect to hold their Membership Interests as a long-term investment (see "Securities Being Offered" below).

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***There is no guarantee of reaching Maximum Offering Amount.***

There is no assurance that the Company will obtain capital investments equal to the amount required to close the Offering. In addition, receipt of capital investments of less than the Maximum Offering Amount may reduce the ability of the Company to spread investment risks through diversification of its real estate property asset portfolio or debt portfolio.

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***No assurance can be provided that the Maximum Offering Amount will be adequate working capital and/or will absolve the need for additional financing.***

In the opinion of the Manager, if the maximum number of Membership Interests being offered is sold, the Company may have sufficient working capital to achieve its planned operations. However, there can be no assurance that even if the maximum number of Membership Interests is sold that the Company would not be required to seek alternative or additional sources of financing. The Company is not restricted in the application of the funds as provided within this Offering Circular under the caption "Use of Proceeds" below.

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***Terms of the Membership Interests may not be favorable to prospective Investors.***

The Manager has set the terms of the Membership Interests in a manner which is favorable to the Company and has not tried to consider the favorability or suitability of such terms for any prospective Investors.

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***The Company may employ leverage, resulting in the Membership Interests being subordinate to any debt incurred by the Company.***

Any indebtedness incurred by the Company (e.g., through a credit line, borrowing from the Manager, an Affiliate financer, etc.) may expose the Investors to substantially greater risk. Any debt incurred by the Company may be senior to the Investors and may have priority of payment. If there are no sufficient cash flows generated from the operations of the Company and the Company has to pay Investors, it may affect the Company's ability to make distributions to Investors. In addition, leverage may involve restrictive covenants, interest obligations and other risks that are customary to organizations that employ leverage in financing their investments.

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***The Company will invest in assets that have not yet been identified, therefore, potential Investors will be unable to evaluate the Company's property asset portfolio prior to making their investment.***

None of the specific assets in which the Company will invest in are identified at this time. Therefore, any potential Investor is unable to evaluate the property assets portfolio to determine whether to invest in the Company. However, the general business goals of the Company are to invest in properties as further described herein. The Company may later have specific, identifiable portfolio data which Investors may review upon their prior written request to the Company.

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***The Company has the right to change its asset profile; there is no guarantee that the asset profile will not change substantially over time.***

The Company reserves the right (in its sole and absolute discretion) to modify, change or revise its typical investment profile and the mix of properties that it invests in or otherwise participates in, and accordingly, Investors have no guarantee, and should not assume that the investment mix and profile of the Company will not change substantially over time.

***The Offering is being undertaken during a period of fluctuating interest rates.***

The Offering is being undertaken during a period of rising fluctuating rates, which may impact both the ability of the Company to acquire assets and the return on investments made.

**BUSINESS RISKS**

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***There is reliance on key personnel to make all decisions with respect to the management of the Company, therefore, Investors will have very limited choice in the management decisions.***

The Manager of the Company will make virtually all decisions with respect to the management and day-to-day operations of the Company including, without limitation, the determination as to which properties to invest in and the terms of the investment. The Investors will have very limited voice in the management decisions of the Company and can exercise only a limited (if any) amount of control over the Company. The Company gives no assurance that the Company will operate at a profit or positive cash flow. The Company is dependent to a substantial degree on the continued services of the Manager of the Company's Manager. In the event of the death, incapacity or other termination of the Manager of the Company's Manager, the business and operations of the Company may be adversely affected. Furthermore, all investments related to specific property assets will be undertaken by the Company without the Investors having any ability to directly affect such transactions.

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***The Company's key personnel are not required to devote full-time to the business of the Company.***

The Manager of the Company's Manager is not required to devote their individual capacity full-time to the Company's affairs, but only such time as the affairs of the Company may reasonably require.

***The Company's key personnel have limited prior experience in operating a blind-pool real estate investment fund.***

The Manager and its key personnel have limited experience in conducting the business of a blind-pool real estate investment fund, such as that of the Company.

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***No restriction preventing the Manager or its Affiliates from competing with the Company by investing or sponsoring investments similar to those of the Company.***

Though neither the Manager nor any Affiliates currently have the intention to do so, there is no restriction preventing the Manager, or any Affiliate, from competing with one another by investing in or sponsoring the formation of other investment groups similar to the Company. The Manager or Affiliates may make decisions that may at times favor persons other than the Company. Unless

otherwise mandatorily required to the contrary by applicable law, the Manager and its Affiliates are exonerated from any liability for investment opportunities given to other persons, including (without limitation) Affiliates, as is described further in the Operating Agreement. A discussion of Conflicts of Interests can be found below.

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***Delays in the participation in the investment yield by Investors may occur.***

There may be a delay between when subscription funds are accepted from Investors and when such Investors are accepted as Members of the Company. Such delays may result from the Manager having to verify an Investor's suitability and admissibility as a Member and accept the Investor as a Member.

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***Management and investment practices of the Company are not regulated by federal or state authorities.***

The management and investments of the Company are not regulated by the Securities and Exchange Commission or state regulatory authorities, except to the extent that the Offering will be qualified by the SEC, or except to the extent the properties themselves are subject to certain legal standards such as zoning or building codes. While the Company will use its best efforts to comply with all laws, including federal, state and local laws and regulations, there is a possibility of governmental action to enforce any alleged violations of laws which may result in legal fees and damage awards that would adversely affect the Company and its ability to distribute income to Investors.

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***Investment in the Company involves certain tax and ERISA risks of which Investors should be aware.***

An investment in the Company involves certain tax risks of general application to all Investors and certain other risks specifically applicable to Keogh accounts, Individual Retirement Accounts and other tax-exempt Investors (see "Federal Income Tax Considerations" and "ERISA Considerations" below).

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***Fluctuations in the real estate market may affect the profitability of the Company and may not be able to liquidate their investment to take advantage of higher available returns.***

Real estate markets are subject to abrupt and substantial fluctuations and the purchase of Membership Interests are a relatively illiquid investment. Investors may wish to liquidate their investment to take advantage of higher available returns but may be unable to do so due to restrictions on transfer, redemption, and withdrawal.

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***Risks of leveraging the Company's asset portfolio include assigning a portion of or the entire Company's asset portfolio as security for obtaining additional capital.***

The Company may borrow funds from any third-party sources to fund investments in properties. These additional sources of capital may be secured by assets held by the Company. In order to obtain such additional capital, the Company may assign or encumber part or its entire asset portfolio to the lender or investor. Such money may bear interest at a variable rate. Therefore, if prevailing interest rates rise, the cost of money could reduce the Company's profitability or cause losses.

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***Risks of real estate ownership that could affect the marketability and profitability of the properties.***

There is no assurance that the Company's owned properties will be profitable or that cash from operations will be available for distribution to the Investors. Because real estate, like many other types of long-term investments, historically has experienced significant fluctuations and cycles in value, specific market conditions may result in occasional or permanent reductions in the value of property interests. The marketability and value of the properties will depend upon many factors beyond the control of the Company, including (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;1. Changes in general or local economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;2. Changes in supply of or demand for competing properties in an area
(e.g., as a result of over-building);

&nbsp;&nbsp;&nbsp;&nbsp;3. Changes in interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;4. Promulgation and enforcement of governmental regulations relating
to land use and zoning restrictions, environmental protection and occupational safety;

&nbsp;&nbsp;&nbsp;&nbsp;5. Condemnation and other taking of property by the government;

&nbsp;&nbsp;&nbsp;&nbsp;6. Unavailability of mortgage funds that may increase borrowing costs
and/or render the sale of a property difficult;

&nbsp;&nbsp;&nbsp;&nbsp;7. Unexpected environmental conditions;

&nbsp;&nbsp;&nbsp;&nbsp;8. Financial conditions of tenants, ground lessees, ground lessors,
buyers and sellers of properties;

&nbsp;&nbsp;&nbsp;&nbsp;9. Changes in real estate taxes and any other operating expenses;

&nbsp;&nbsp;&nbsp;&nbsp;10. Energy and supply shortages and resulting increases in operating
costs or the costs of materials and construction;

&nbsp;&nbsp;&nbsp;&nbsp;11. Various uninsured, underinsurance or uninsurable risks (such as losses
from terrorist acts), including risks for which insurance is unavailable at reasonable rates or with reasonable deductibles;

&nbsp;&nbsp;&nbsp;&nbsp;12. Imposition of rent control; and,

&nbsp;&nbsp;&nbsp;&nbsp;13. Acts of nature, including, but not limited to, pandemics, weather
events, and other natural disasters.

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***There are a number of risks involved in investing in development, redevelopment and undeveloped properties.***

The Company anticipates that it will invest in existing properties that require varying degrees of development. In addition, some properties may be under construction or under contract to be developed or redeveloped. Properties that involve development or redevelopment will be subject to the general real estate risks described above and will also be subject to additional risks, such as unanticipated delays or excess costs due to factors beyond the control of the Company. These factors may include (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;1. Strikes;

&nbsp;&nbsp;&nbsp;&nbsp;2. Adverse weather;

&nbsp;&nbsp;&nbsp;&nbsp;3. Governmental prohibition;

&nbsp;&nbsp;&nbsp;&nbsp;4. Epidemics;

&nbsp;&nbsp;&nbsp;&nbsp;5. Earthquakes, Hurricanes, and other "force majeure" events;

&nbsp;&nbsp;&nbsp;&nbsp;6. Changes in building plans and specifications;

&nbsp;&nbsp;&nbsp;&nbsp;7. Zoning, entitlement and regulatory concerns, including changes in
laws, regulations, elected officials, and government staff;

&nbsp;&nbsp;&nbsp;&nbsp;8. Material and labor shortages;

&nbsp;&nbsp;&nbsp;&nbsp;9. Increases in the costs of labor and materials; changes in construction
plans and specifications; rising energy costs; and

&nbsp;&nbsp;&nbsp;&nbsp;10. Delays caused by the foregoing (which could result in unanticipated
inflation, the expiration of permits, unforeseen changes in laws, regulations, elected officials and government staff, and losses
due to market timing of any sale that is delayed).

Delays in completing any development or renovation project will cause corresponding delays in the receipt of operating income and, consequently, the distribution of any cash flow by the Company with respect to such property.

***The Company is eligible for certain tax credits that may no longer be available in the future.***

The Company may utilize certain tax credits to fund certain of its acquisition and construction expenses. In the future, the authorities providing these tax credits may eliminate the tax credits or change the eligibility criteria to use the tax credits, therefore negatively affecting the Company's access to this type of funding. Should the Company lose access to tax credits or is eligible to less, its business, operating results, financial condition, and prospects could be materially and adversely affected, and the Company may be unable to continue operations.

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***There are risks associated if buying contaminated property assets.***

The Company may acquire or invest in properties with known environmental conditions for the purpose of remediating the contamination. Following completion of the remediation, such properties would generally be rented. If the Company does not remediate the environmental condition of a property sufficiently, liability may arise from persons who rented the property. This may cause the Company to defend a lawsuit or regulatory action, in addition to remediating the property. This may cause the profits for the Company and any investment to be affected.

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***Properties invested in by the Company that may not comply with the Americans with Disabilities Act and other changes in governmental rules and regulations could have adverse consequences to the Company's profitability.***

Under the Americans with Disabilities Act of 1990 (the "ADA"), all public properties are required to meet certain federal requirements related to access and use by disabled persons. Properties acquired by the Company or in which it makes a property investment may not be in compliance with the ADA. If a property is not in compliance with the ADA, then the Company may be required to make modifications to such property to bring it into compliance, or face the possibility of imposition, or an award, of damages to private litigants. In addition, changes in governmental rules and regulations or enforcement policies affecting the use or operation of the properties, including changes to building, fire and life-safety codes, may occur which could have adverse consequences to the Company.

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***Unforeseen Changes***

While the Company has enumerated certain material risk factors herein, it is impossible to know all risks which may arise in the future. In particular, Investors may be negatively affected by changes in any of the following: (i) laws, rules, and regulations; (ii) regional, national, global economic factors, and/or real estate trends; (iii) the capacity, circumstances, and relationships of partners of Affiliates, the Company, or the Manager; or (iv) the presence, availability, or discontinuation of real estate and/or housing incentives.

The Company continuously encounters changes in its operating environment, and the Company may have fewer resources than some of its competitors to continue to adjust to those changes. The operating environment of the Company is undergoing rapid changes, with frequent introductions of laws, regulations, competitors, market approaches, and economic impacts. Future success will depend, in part, upon the ability of the Company to address the needs of its Investors, sponsors, and clients by adapting to those changes and providing products and services that will satisfy the demands of their respective businesses and projects. Many of the competitors have substantially greater resources to adapt to those changes. The Company may not be able to effectively react to all of the changes in its operating environment or be successful in adapting its products, services, and approach.

**DILUTION**

Only Class A Membership Interests are being offered through this Offering to Investors. There have not been any transfers or sales of the Company's Class A Membership Interests within the past year to affiliated persons of the Company.

The Company has issued 1,000 of its Class B Membership Interests to an Affiliate of the Company, XIV-I, INC., for an initial capital contribution of $25,000.00 to commence the Company's operations.

**PLAN OF DISTRIBUTION**

The Offering will be conducted through general solicitation, direct solicitation, and other marketing efforts, and Investors will be directed to the Portal to invest through this Offering. The Manager has engaged KoreConX, as its transfer agent, and Andes Capital Group LLC ("Andes Capital"), as an independent FINRA broker-dealer to assist the Company in selling the Membership Interests. The Manager is not engaging an underwriter for the sale of the Membership Interests. The Offering is being conducted on a best-efforts basis, which means the Manager and the broker-dealer will use commercially reasonable best efforts in an attempt to sell the Membership Interests. The Manager of the Company's Manager will not receive any commission or any other remuneration for these sales, relying on the safe harbor from broker-dealer registration set forth in Rule 3a4-1 under the Securities Exchange Act of 1934, as amended. The Manager has engaged Andes Capital, a FINRA registered broker-dealer, to serve as broker of record for the Offering in exchange for a 1.0% commission on the Company's passive sales of the Membership Interests.

The Manager has engaged North Capital Private Securities Corporation (the "Escrow Agent") to hold Investor funds in an escrow account until the Minimum Offering Amount is met. If the Proceeds received by the Company do not meet the minimum of $1,000,000.00, then the Manager will instruct the Escrow Agent to return Investor funds promptly. If, however, the Minimum Offering Amount is met, then there may be a delay between the time the Investor submits the funds, and the time the Company receives those Investor's funds.

The Manager will not limit or restrict the sale of the Membership Interests during this 12-month Offering. No market exists for the Membership Interests and no market is anticipated or intended to exist, therefore there is no plan to stabilize the market for any of the securities to be offered.

The Manager of the Company's Manager is engaged in the Company's business of developing real estate investments, and is not, or has ever been, a broker nor dealer of securities. The Manager of the Company's Manager will not be compensated in connection with the sale of securities through this Offering. The Manager believes that any and all associated persons of the Company are not deemed to be brokers under Exchange Act Rule 3a4-1 because: (1) no associated person of the Company is subject to a statutory disqualification, as that term is defined in section 3(a)(39) of the Exchange Act at the time of their participation; (2) no associated person of the Company will be compensated in connection with his participation by the payment of commissions or by other remuneration based either directly or indirectly on transactions in connection with the sale of securities through this Offering; (3) no associated person of the Company is an associated person of a broker or dealer; (4) associated person of the Company perform substantial duties for the Company other than the sale or promotion of securities; (5) no associated person of the Company has acted as a broker or dealer within the preceding twelve months of the date of this Offering Circular; (6) no associated person of the Company will participate in selling this Offering after more than twelve months from the Effective Date of the Offering.

Andes Capital has agreed to act as broker of record to assist in connection with this Offering. Andes Capital is not purchasing or selling any securities offered by this Offering Circular, nor is it required to arrange the purchase or sale of any specific number or dollar amount of securities. Andes Capital may engage other brokers to sell the securities on their behalf. Andes Capital will receive compensation for all passive sales ("Passive Commission") of the Units offered and sold pursuant to this Offering Circular at a rate of 1.0% of the gross Proceeds for a maximum of $750,000. For the aggregate Proceeds received by the Company through Andes Capital's direct introductions and introductory efforts, the Company will pay Andes Capital a "Selling Commission" equal to 4.0% of the such Proceeds received by the Company. Andes Capital may work with other registered broker-dealers to sell the Membership Interests. As of the date of this Offering Circular, it is unknown how many of the Membership Interests will be sold through the direct selling efforts of Andes Capital.

The Manager intends to publicly market the Offering using general solicitation through methods including emails to potential Investors, the internet, social media, and any other means of widespread communication.

The Offering Circular will be furnished to prospective Investors via download 24 hours per day, 7 days per week on the Company's website at www.investinxiv.com and via of the EDGAR filing system.

The following table shows the total discounts and commissions payable to Andes Capital in connection with this Offering by the Company:

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;**Price Per Unit** | &nbsp;&nbsp;**Total Offering** |
| &nbsp;&nbsp;**Public Offering Price** | &nbsp;&nbsp;$10.00 | &nbsp;&nbsp;$75000000 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Passive Commission Commissions** | &nbsp;&nbsp;$0.10 | &nbsp;&nbsp;$750,000\* |
| &nbsp;&nbsp;**Proceeds, Before Expenses** | &nbsp;&nbsp;$9.90 | &nbsp;&nbsp;$74250000 |

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\*This represents the maximum potential passive commissions due to Andes Capital. The commissions due may be more than this number, depending on the success of Andes Capital's direct sales efforts; the potential commissions due Andes Capital will not exceed $3,000,000.00.

***Other Terms***

Andes Capital has also agreed to perform the following services in exchange for the compensation discussed above:

&nbsp;&nbsp;&nbsp;&nbsp;· Act as the Broker of
Record for 1-A (SEC), 5110 (FINRA) and Blue-Sky (States & Territories) filings;

&nbsp;&nbsp;&nbsp;&nbsp;· Provide introductions
and coordination with engaging additional parties and service providers;

&nbsp;&nbsp;&nbsp;&nbsp;· Assist with use of an
"Issuer Reg A Raise" website where potential and current investors begin the process of onboarding/investing by entering
their interest, required personal information and review and sign all offering related documentation;

&nbsp;&nbsp;&nbsp;&nbsp;· Perform AML/KYC on all
investors;

&nbsp;&nbsp;&nbsp;&nbsp;· Coordinate with Registered
Transfer Agent of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;· Coordinate with the escrow
agent of the Company for funds raised;

&nbsp;&nbsp;&nbsp;&nbsp;· Coordinate with the Company's
legal partners;

&nbsp;&nbsp;&nbsp;&nbsp;· Provide other financial
advisory services normal and customary for similar transactions and as may be mutually agreed upon by Andes Capital and the Company
(collectively, the "Services"); and,

&nbsp;&nbsp;&nbsp;&nbsp;· "Payment
Rails" for the use of providing investors with the ability to invest in the offering using credit cards and/or ACH.

In addition to the commissions described above, the Company will also pay a pass-through fee of $11,750.00 ($500.00 plus 0.015% of the Maximum Offering Amount), payable to Andes Capital as reimbursement for the FINRA Corporate Filing Fee. The Company will bear all expenses incident to the issuance, offer, sale and delivery of the Offering. The maximum compensation due to Andes Capital is the sum of all Membership Interests sold through Andes Capital's direct efforts plus the reimbursement for the FINRA Corporate Filing Fee, which totals $3,011,750.00.

***Selling Security Holders***

There are no selling security holders in this Offering.

**USE OF PROCEEDS**

The Company intends to raise Offering Proceeds to engage in the following activities: (i) acquiring, (ii) managing, (iii) developing, (iv) rehabilitating, (v) preserving, and (vi) liquidating affordable housing real property assets, including for-lease multi-family, for-sale single-family, and unimproved land properties in the Atlanta, Georgia metropolitan area, and other metropolitan areas within the Southeastern United States. While these anticipated uses will not change if the Maximum Offering Amount is not reached, the Company may not be able to acquire a diverse portfolio of affordable real property assets if substantially less than the Maximum Offering Amount is raised through the Offering. The Company will commence operations when the Minimum Offering Amount of $1,000,000.00 in Proceeds are raised. The Company may engage in joint ventures with third parties using the Proceeds of the Offering.

The Net Proceeds (or "Net Deployable Proceeds") from this Offering will not be used to compensate or otherwise make payments to the Manager or Members of the Company, unless and to the extent it is as otherwise stated below.

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Percentage of Proceeds**<br>| **100%** | **75%** | **50%** | **25%** |
| &nbsp;&nbsp; **Gross Offering Proceeds**<br>| $75000000.00 | $56250000.00 | $37500000.00 | $18750000.00 |
| &nbsp;&nbsp; **Estimated Commissions** (1)<br>| $750000.00 | $562500.00 | $375000.00 | $187500.00 |
| &nbsp;&nbsp; **Initial Offering Expenses** (2)<br>| $100000.00 | $100000.00 | $100000.00 | $100000.00 |
| &nbsp;&nbsp; **Net Deployable Proceeds** (3)<br>| $74150000.00 | $55587500.00 | $37025000.00 | $18462500.00 |

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(1) Andes Capital, an independent FINRA registered broker-dealer, is assisting the Company to sell the Membership Interests on a best-efforts basis, in exchange for a 1.0% commission on the aggregate amount raised by the Company. This does not include direct sales by Andes Capital, which carry a 4.0% commission. If the gross Proceeds received by the Company were solely from the direct selling efforts of Andes Capital, the maximum commissions due to Andes Capital would be $3,000,000. No commissions for selling Membership Interests will be paid to the Manager.

(2) The initial expenses associated with this Offering, including legal and accounting expenses, have been or will be paid by Affiliates of the Company, which will be reimbursed from the Proceeds from the Offering. An Affiliate of the Company, XIV-I, INC. (the "Sponsor"), in exchange for payment of initial organizational and Offering expenses on behalf of the Company, has been issued 1,000 Class B Membership Interests, which represent 100% of the Company's Class B Membership Interests. Additionally, the Company intends to reimburse Affiliate MCE POOLE, INC. for organizational and Offering expenses incurred on behalf of the Company in excess of $25,000.00, which are estimated to be approximately $100,000.00. The reimbursement amount to MCE POOLE, INC. is estimated to be $75,000.00 as of the Date of this Offering Circular.

(3) Net Deployable Proceeds to the Company only reflect an approximation of the Proceeds, less estimated commissions to the broker-dealer, less the deduction of organization and offering expenses reimbursement to the Manager. Any expenses associated with the Membership Interests and/or other investments of the Company shall be paid by the Company in accordance with the terms set forth herein and in the Operating Agreement.

The foregoing represents the Manager's best estimate of the allocation of the Proceeds of this Offering based on the planned Use of Proceeds for the Company's operations and current objectives. The Manager will not raise funds from other sources in order to fund the Company's operations, except the possible use of leverage from third-party, trusted lenders for the acquisition or refinancing of properties. Notwithstanding the foregoing, the Manager may borrow money from financiers, other lenders, or banks to fund its investments, who are not yet identified as of the date of this Offering Circular, as the Manager does not have any agreements with any financers, lender, or banks to borrow funds on behalf of the Company.

None of the Net Proceeds of the Offering (allowing for reserves) are committed to specific properties or allocated to a specific property type. The Manager intends to use the Proceeds as stated above and expects the Use of Proceeds to remain substantially the same whether the Maximum Offering Amount is met or some lesser portion thereof. However, the Manager reserves the right to use the Proceeds of this Offering in any manner in its sole discretion.

In all instances, if and upon qualification of this Form 1-A by the SEC, the Company will need working capital to maintain its general existence and comply with its reporting obligations. In addition to changing allocations because of the amount of Proceeds received, the Manager may change the Use of Proceeds because of required changes in the business plan and operating expenses. The Manager reserves the right to use the Proceeds of this Offering in any lawful business activity in which a Delaware limited liability company may engage.

**Use of Proceeds to Discharge Debt**

Currently, there is no debt associated with the Company. No amounts of the Proceeds are anticipated to discharge existing Company debt.

**Method of Depreciation**

The Manager will use basic GAAP Principles, and the depreciation method will be implemented per project at the maximum allowable deprecation schedule that will best benefit all Investors. The method of appraisal will be conducted by a certified third-party appraisal, and/or a combination of market data and income potential.

**Maximum Leverage Expected to be Used** 

The Manager intends to use a stabilized leverage ratio is 60% at the fund level and as much as 75% on an individual asset. These ratios will be derived from the greater of asset cost basis or fair market value of asset.

**DESCRIPTION OF THE BUSINESS**

XIV-I Invest 1, LLC is real estate company, newly-formed as a Delaware limited liability company on February 7, 2022. The Company primarily seeks to preserve and create financially-inclusive multi-family and single-family residential housing opportunities in the Atlanta, Georgia metropolitan statistical area, as well as other major metropolitan areas in the Southeastern United States, such as Charlotte, North Carolina and Jacksonville, Florida. The Company may also invest in other major metropolitan areas within the United States having populations above 580,000.

The Company intends to acquire and manage a portfolio of real estate assets as investments positioned in corridors of expected growth. The Company will target mixed-use and single-use projects, multi-family assets, single-family assets, and unimproved land for investment. The Company believes these asset classes are positioned for consistent growth and will address the need for more affordable and financially-inclusive housing in the United States.

**The Company's Mission of Inclusivity**

The Company intends to engage in "impact investing," which means the Company hopes to affect positive, measurable change in society and the environment through the creation and preservation of affordable housing, while generating a return for Investors. The Company emphasizes acquiring and developing "financially-inclusive" assets, which it defines as affordable and workforce housing, as well as housing for individuals earning median or near-median income of their geographic locale.

The Company also intends to create a diverse and inclusive equity ownership group that reflects the communities where the Company's investment properties are located. This includes building an ownership group comprised of diverse economic classes, ethnicities, genders, and racial groups; however, nothing in this statement is intended to preclude any potential Investor in this Offering. The Company seeks to achieve this diverse ownership group by encouraging tenants, owners, and other community stakeholders where the Company operates to become Investors; the Company will market this Offering to persons in the communities where the property assets are located, including marketing to tenants of the Company's properties. There will be no special treatment given nor additional conditions applied to such Investors.

The Company will seek to collaborate with public and private partnerships through the integration of local incentives, including federal tax credits, subsidized acquisition, permanent financing, and green retrofitting, to drive housing affordability and sustainability. The Company will identify such partnerships as appropriate and applicable, and has not arranged any specific partnerships as of the date of this Offering Circular.

The Manager must raise a minimum of $1,000,000.00 on behalf of the Company prior to the Proceeds from this Offering being released from the escrow account into the Company's operating account. The Manager expects to use the Net Proceeds from this Offering to purchase and manage assets, pay for operating costs of the Company, and pay fees and costs associated with this Offering, including marketing costs, legal and accounting fees.

**Target Market Demographic Information**

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| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**April 1, 2020 Population Estimates Base** | &nbsp;&nbsp;**2020 Population Estimate (as of July 1)** | &nbsp;&nbsp;**2021 Population Estimate (as of July 1)** |
| &nbsp;&nbsp;**Atlanta, GA Metropolitan Area** | &nbsp;&nbsp;6089815 | &nbsp;&nbsp;6101146 | &nbsp;&nbsp;6144050 |
| &nbsp;&nbsp;**Charlotte, NC Metropolitan Area** | &nbsp;&nbsp;2660329 | &nbsp;&nbsp;2669665 | &nbsp;&nbsp;2701046 |
| &nbsp;&nbsp;**Jacksonville, FL Metropolitan Area** | &nbsp;&nbsp;1605848 | &nbsp;&nbsp;1611388 | &nbsp;&nbsp;1637666 |

---

\*These figures are from the United States Census Bureau's Metropolitan and Micropolitan Statistical Areas Population Totals and Components of Change: 2020-2021. The Manager may invest in real estate assets in other metropolitan areas in the United States at its discretion.

The Company intends to primarily invest in real estate assets in metropolitan Atlanta, Georgia. According to the United States Census Bureau, the Atlanta area is among the fastest growing metropolitan areas in the United States, with its overall area population growing approximately 15% between 2010 and 2020.

The Company may invest in real estate assets in the Charlotte, North Carolina and Jacksonville, Florida metropolitan areas as well. While having a smaller population than the Atlanta, Georgia area, United States Census Bureau data indicates metropolitan Charlotte and metropolitan Jacksonville have grown approximately 50% and 19% from 2010 to 2020, respectively.

While the Company intends to invest in the markets listed above, the Manager may cause the Company to invest in other locations, depending upon the availability of suitable investment opportunities.

**Investment Objectives**

The Manager intends to selectively invest in financially-inclusive, housing-related assets that will allow the Company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Realize competitive, risk-adjusted returns through distributable
cash, comprehensive net operating income growth, and asset appreciation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Collaborate with public and private entities to integrate local housing
incentives to preserve, protect, and create affordable housing options within the communities where the Manager causes the Company
to acquire property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Preserve, protect and return invested capital

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide an investment vehicle for Investors desiring an integrated
and novel approach to addressing diversity, environment, inclusive economics, and parity of access

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Create value for community members, Investors, and the environment
through inclusionary fundraising and coherent management practices

**Investment Strategy**

The Company primarily seeks to acquire, develop, rehabilitate, and lease affordable multi-family housing The Company may acquire for-sale, single-family homes up to 3,000 square feet, suitable for redevelopment as affordable housing. The Company may also acquire and develop unimproved property as affordable single-family and multi-family housing.

The Company anticipates acquiring target properties with a gross purchase price up to $45,000,000, but the Manager may acquire more or less expensive properties depending on market opportunities and the financial condition of the Company.

The Company intends to acquire property assets that are existing, income producing, under development, under construction, or unimproved with development potential. The Manager aims direct the Company to acquire properties expected to provide distributable cash at stabilization and appreciation over a seven-year investment horizon. These investments may include redevelopment, repositioning, such as rehabilitation or rezoning, or ground up development.

The Company may enter into joint ventures with third parties for the acquisition, development, repositioning of properties.

**Use of Incentives**

The Company plans to take advantage of incentives offered by local and state governments, as well as available federal credits, to lower risk and boost the Company's returns. The Company has identified the following local and state government incentives, offered through local authorities or housing: (i) Invest Atlanta; (ii) Atlanta Housing (Affordable Housing Programs & Resources); (iii) Housing Authority of DeKalb County; and, (iv) Georgia Department of Community Affairs.

Incentives provided by these authorities include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Below-Market Rate Loans* – These include acquisition and construction loans which carry flexible financing terms, including the ability
to subordinate to private capital, below-market equity requirements, and below-market interest rates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Subsidized Mortgages* – Subsidized mortgages for eligible purchases either through the issuance of single family mortgage revenue bonds or
through the provision of capital to buy down of rates on conventional mortgages

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Down Payment Assistance* – Down payment assistance for eligible purchasers to help with down payment requirements from conventional lenders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Expedited Permits* – Expedited permitting for the production of affordable units

With respect to federal tax credits, the Company plans to deploy both Low-Income Housing Tax Credits ("LIHTC") and New Markets Tax Credits ("NMTC") where applicable. Both programs provide project equity that does not require a market return. Additionally, if the project is delivered on time and on budget, the principal amount of the investment does not have to be repaid. The Manager believes the below-market rate return requirements will reduce the Company's risk and allow the Company to capture more yield.

The Manager believes that partnering directly with local and state authorities may provide additional benefits to the Company, including significantly reducing the cost of acquiring land.

**Borrowing Policy**

The Company may strategically use leverage to purchase assets and to maximize returns for both its Members and community stakeholders, including tenants. Leverage may be used in the form of senior debt, subordinate debt, tax credit equity, mezzanine financing or other suitable financial structures. The Company intends to use a stabilized leverage ratio is 60% at the Company level and as much as 75% on an individual asset. These ratios will be derived from the greater of asset cost basis or fair market value of asset. The Company intends to utilize competitively priced non-recourse, long-term financing when available. While the Company's Board of Advisors may advise the Manager on setting the Company's leverage policies, the Manager may modify the Company's leverage policy from time to time at its sole discretion.

The Manager intends to direct the Company to, but is under no obligation to, take advantage of the following subsidy and loan programs from housing authorities such as Invest Atlanta:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bond Financing and Housing Trust Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal Opportunity Zones

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Grants: Grant Programs and Request-for-Proposals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• New Markets Tax Credit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Predevelopment Funding: Preliminary Development Assistance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tax Allocation District (TAD) Financing

In the event the Company decides to take advantage of any of these incentive programs, the Company may be required to alter its business plan or operations to conform to the regulatory requirements demanded by any one or several of these incentive programs.

**Management of the Company's Properties**

The Manager intends to contract with third-party property management firms for the Company's property management needs in order to maximize the value of the properties. All property management standards will be followed in accordance with local and state policies and regulations.

**The Manager**

The Company operates under the direction of the Manager, which is responsible for directing the management of the Company's business, day-to-day affairs, and execution of its investment strategy. The Manager may use third-party service providers in connection with its day-to-day business operations. The Company will follow investment guidelines adopted by the Manager and the investment and borrowing policies set forth in this Offering Circular, subject to modification by the Manager. The Manager may establish further written policies on investment and borrowings and will monitor the Company's administrative procedures, investment operations and performance to ensure that the policies are fulfilled. The Manager may change investment objectives at any time without the approval of the Company's Class A members.

The Manager performs its duties and responsibilities in accordance with the Company's Operating Agreement (see Exhibit 3 "Operating Agreement").

**Board of Advisors**

The Manager has selected four (4) individuals to serve on its Board of Advisors. The Board of Advisors does not have any authority or control over the operations of the Company, the Manager, or any Affiliates of the Company. Each member of the Board of Advisors (an "Advisor") will be compensated at an hourly, market rate for services provided. The Manager may change the composition of the Board of Advisors at any time (see the section titled "Board of Advisors," below).

**Employees**

As of the date of this Offering Circular, the Company does not have any employees nor does the Company intend to hire any employees that will be directly compensated by the Company. After commencement of the Offering, the Manager may hire additional staff to work for the Manager to further the Company's business operations.

**Fund Life & Exit**

The Manager intends to engage in deploying capital for approximately seven (7) years and thereafter commence an orderly disposition of assets and final net distributions to members; however, the Manager will exercise its discretion in light of market conditions and intends to commence liquidation of the Company anytime within five (5) to nine (9) years after initial acquisition of assets. The Company's term is perpetual and not limited in the Articles of Organization and Operating Agreement.

**DESCRIPTION OF PROPERTY**

The Company does not currently own any real property or business personal property of any material significance.

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

*Information and materials contained herein may contain forward-looking statements that are based on the expectations, estimates, projections and assumptions made by or on behalf of the issuer and the Manager. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates," "continues," "remains," "maintains," and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements may include, but are not limited to, projections of cash flows, loan repayment or deferment rates, interest rates, increases in financing costs, limits on liquidity, and bond redemptions. These statements are not guarantees of future performance or events and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results, trends, and events may differ materially from what is forecast or assumed in forward-looking statements due to a variety of factors, including, without limitation each of the risk factors stated in the Offering Circular for each respective issue, as well as changes in, but not limited to:*

 

&nbsp;&nbsp;&nbsp;&nbsp;• *the Company's ability to effectively deploy the proceeds raised in this offering;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *the Company's ability to attract and retain investors the investor portal on the investinxiv.com website;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *risks associated with breaches of the Company's data security;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *changes in economic conditions generally and the real estate and securities markets specifically;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *limited ability to dispose of assets because of the relative illiquidity of real estate investments;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *intense competition in the real estate market that may limit our potential to attract or retain tenants;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *increased interest rates and operating costs;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *decreased rental rates or increased vacancy rates;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *difficulties in identifying properties to complete, and consummating real estate acquisitions, developments, joint ventures, and dispositions;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *failure of acquisitions to obtain anticipated results;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *the ability to retain the executive officer or key personnel of the Manager;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *the Manager's ability to retain and hire competent employees and appropriately staff the Company's operations;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *the demand for affordable residential housing;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *the general interest rate environment, which may increase the costs or limit the availability of financings necessary to initiate, purchase, or carry project related loans;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *projections of losses from loan defaults;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *borrower behavior affecting loan repayment;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *prepayment rates and credit spreads; and* 

&nbsp;&nbsp;&nbsp;&nbsp;• *legislation regarding tax policies;* 

&nbsp;&nbsp;&nbsp;&nbsp;• *compliance with applicable local. State, and federal laws* 

&nbsp;&nbsp;&nbsp;&nbsp;• *changes to generally accepted accounting principles, or GAAP* 

 

*All forward-looking statements speak only as of the date of their publication or, in the case of any document incorporated by reference, the date of that document. All subsequent written and oral forward-looking statements attributable to the issuer, the Manager or any person acting on its behalf are qualified by the cautionary statements in this section. Neither the Company nor the Manager undertakes any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this offering circular.*

The Manager plans to finance the Company's acquisitions through equity financing, including equity capital raised through this Offering. In addition, the Manager has been engaged in developing the financial, offering, and other materials to begin offering the Membership Interests.

The Company is recently formed and has not yet generated revenue. The Manager is devoting its efforts to establishing the Company's business and planned principal operations will commence at once the Minimum Offering Amount is raised. Due to start-up nature of the Company's business, the reported financial information once the Company is capitalized and has assets or liabilities, may not be indicative of future operating results or operating conditions. Because of its structure, the Company is in large part reliant on the Manager grow its business.

There are a number of key factors that will potentially impact the Company's operating results going forward, including the Company's ability to obtain high quality properties at reasonable prices, supervise the renovation of those properties, and subsequently rent and/or sell the properties at premium rental income rates and/or sales prices. Another factor is the Manager's ability to effectively market the Platform and the Offering to Investors. Finally, another factor is the ability to provide a useful Platform for Investors and maintain it effectively to provide the information and technology infrastructure to support the issuance of Membership Interests.

At the time of this filing, the Company has not commenced its operations of purchasing properties, is not capitalized, and has no assets or liabilities, and will not until such time as a closing has occurred.

**Liquidity and Capital Resources**

The Company expects to finance its business activities through capital contributions from Investors or financing provided to the Company through this Offering. The Manager may cover any deficits through additional capital contributions. At the time of this filing, only an Affiliate, MCE Poole Inc., d/b/a Dwelling Space Real Estate, wholly-owned by Monica Poole, has contributed $25,000.00 to the Company as an initial capital contribution, and has additionally provided approximately $75,000.00 for organization and Offering costs.

In the future, the Company may incur financial obligations related to loans made to the Company by the Manager, Affiliates of the Company, or third-party lenders.

**Plan of Operations**

The Company expects to launch its Offering in Q1-2023. The Proceeds closed during the next twelve months will be used for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Acquire real estate assets (mixed-use and single-use projects, multi-family assets, single-family assets, and unimproved land);;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Renovate acquired real estate assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Rent real property assets to tenants using third-party property management group; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Sell the real property assets (at the Manager's discretion).

**MANAGER OF THE COMPANY'S MANAGER**

**Manager of the Company's Manager**

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name** | &nbsp;&nbsp;**Position** | &nbsp;&nbsp;**Age** | &nbsp;&nbsp;**Term of Office** | &nbsp;&nbsp;**Approximate Hours per week** |
| &nbsp;&nbsp;Monica Poole | Manager of the Manager | &nbsp;&nbsp;54 | &nbsp;&nbsp;2022 - Present | &nbsp;&nbsp;Full-time\* |

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\* These hours may vary after the Company receives the Proceeds from the Offering.

**Monica Poole – Manager of the Manager**

An entrepreneur and innovator, Monica Poole serves as the Manager of the Company's Manager, XIV-I MANAGER LLC, and Chief Executive Officer of the Company's Sponsor, XIV-I, INC. Additionally, since 2019, Ms. Poole operates MCE Poole Inc., d/b/a Dwelling Space Real Estate, a boutique real estate brokerage and advisory firm based in Atlanta, Georgia. Since 2001, Ms. Poole has provided real estate advisory and brokerage related services and leads the direction and execution of transactions across commercial and residential real estate disciplines, including acquisitions, dispositions, restructurings, deal sourcing, investment analysis, forecasting and alternative capital structuring. Prior to this, Ms. Poole consulted on engagements with Fortune 500 companies in the areas of business systems design, systems development, program management, and organizational change across functional areas, first with Computer Sciences Corporation from 1994-1998, and then with Anderson Consulting, now known as Accenture, from 1998-2000. Ms. Poole received her MBA from Columbia Business School in New York City in 2016, her AB in Mathematics in 1991 from Bryn Mawr College in Pennsylvania, and she is a licensed real estate broker in the state of Georgia.

***Business Experience Past 5 Years***

Since 2017, Ms. Poole has provided real estate brokerage and advisory services directly resulting in the successful execution of over 95 transactions with an asset value of over $20 million. The disciplines required to execute these transactions span across acquisitions, dispositions, alternative capital structuring, lending knowledge, residential and commercial leasing, construction management, and property valuation techniques for; single-family, multi-family, unimproved land, and commercial real estate investments. Many of these transactions involved purchasers or sellers in and from historically marginalized communities, and focused on the work of extending access to housing affordability, attainability, and financial inclusion.

In addition to providing real estate advisory services, Ms. Poole is responsible for managing all aspects of a boutique real estate brokerage firm, inclusive of arranging for: tax filings with federal and state agencies, compliance with state regulatory agencies, choosing and engaging attorneys, accountants, marketers, personnel, office space, furnishings, technology providers, insurance providers, consultants, construction, architects, designers, engineers, and contractors required to support advisory work.

***Duties of the Manager***

**Offering Services**: The Manager is responsible for preparing and approving all marketing materials used by the Company relating to the Offering. The Manager will coordinate the receipt, processing and acceptance of subscription agreements and will oversee administrative support services related to the subscription process. The Manager will oversee the implementation various technology solutions related to this offering, and will create electronic communications in connection with this offering.

**Investment Advisory and Acquisition Services**: The Manager is responsible for deal sourcing, underwriting, and due diligence, and negotiation of the terms of each acquisition. Potential investments will be presented to the Manager's Board of Advisors once they pass the initial screening and underwriting by the acquisitions team.

**Fund and Asset Management Services**: The Manager will evaluate all potential acquisitions to assess whether the asset fits the investment strategy and is accretive to the overall asset portfolio, as well as a compelling investment in its own right. The Manager will also oversee all investments held by the Company on an ongoing basis. Based upon regular site visits, communication with staff managing investments and review of financial analysis, the Manager will develop high-level asset strategies and perform strategic portfolio reviews utilizing input from staff and experienced professionals in design, marketing, construction, project management, risk management, accounting, and sustainability to support the asset level strategies. The Manager is responsible for communicating performance to Investors through semi-annual and annual reports. These reports will contain a description of the Company's activity during the period as well as financial reports, and high-level asset (multi-family) or asset class (single-family) performance summaries. The manager will select and engage attorneys, accountants, escrow agents, brokers, technology providers, depositaries, and other consultants deemed necessary by the Manager for the performance of services under the Company's Operating Agreement.

**Accounting and Other Administrative Services**: The Manager will arrange for accounting and administrative services, legal services, office space, office furnishings, personnel, and other overhead items necessary and incidental to the Company's business and operations. The Manager will file all reports and returns required to be filed with the SEC and any other regulatory agency. The Manager will maintain all appropriate Company books and records, and will oversee tax and compliance and risk management services and coordinate with independent accountants and other consultants.

***No Fiduciary Duty***

Pursuant to the terms of the Operating Agreement (attached as Exhibit 3), the Manager does not have a fiduciary duty to the Company or Members of the Company. However, the Manager is under an obligation to deal fairly and in good faith to the Company; a decision by the Manager is presumed to be made in good faith if the Manager subjectively believes such decision to be in the best interests of the Company. Furthermore, the Manager's liabilities to the Company, the Members, or creditors will be limited to those arising out of a duty of good faith and fair dealing, and specifically does not include liabilities arising out of any fiduciary duties.

**BOARD OF ADVISORS**

The Manager has selected four (4) individuals to serve on its Board of Advisors.

The duties of the Board of Advisors include:

&nbsp;&nbsp;&nbsp;&nbsp;• Providing general advice and direction about the Company's
business and affairs, as requested from time to time by the Manager;

&nbsp;&nbsp;&nbsp;&nbsp;• Making recommendations as to potential investments;

&nbsp;&nbsp;&nbsp;&nbsp;• Reviewing asset and asset-class business plans;

&nbsp;&nbsp;&nbsp;&nbsp;• Evaluating the Company's investment strategy and capital markets
outlook; and,

&nbsp;&nbsp;&nbsp;&nbsp;• Recommending asset disposition strategies based upon regular reviews
of hold/sell analysis.

The Board of Advisors does not have any authority or control over the operations of the Company, its Manager, or any Affiliates of the Company. Each member of the Board of Advisors (an "Advisor") will be compensated at an hourly, market rate for services provided. The Manager may change the composition of the Board of Advisors at any time. The Board of Advisors will never consist of fewer than four (4) persons.

The Board of Advisors is composed of the following individuals:

**Sherman Golden – Advisor**

Mr. Golden is senior counsel in the Commercial & Public Finance group of the Thompson Hine firm. He focuses his practice on municipal finance, project finance, public-private partnerships (P3) and EB-5 foreign investor capital transactions. He specializes in structured real estate finance and capital formation, including tax-exempt and taxable municipal bonds, synthetic equity through the monetization of available federal and state tax credits, and exempt securities offerings.

Mr. Golden has extensive local and national experience in tax-exempt multi-family and single-family affordable housing and community redevelopment transactions. He has served as bond counsel, underwriter's counsel, issuer's counsel and borrower's counsel on a variety of housing, general obligation, revenue and lease transactions in the municipal market. He has worked with numerous federal subsidy programs for housing, including CDBG, HOME Funds, project-based Section 8, HOPE VI and the Affordable Housing Program (AHP) of the Federal Home Loan Bank. Mr. Golden also has worked with local governmental subsidy programs that provide down payment assistance and rental subsidies.

Mr. Golden earned his B.A. from the University of North Carolina at Chapel Hill in 1976. Mr. Golden graduated from the Georgetown University Law Center in 1982, where he was an Earl Warren scholar and an NAACP Legal Defense Fund Fellow.

**Michael Johnson – Advisor**

Mr. Johnson is President and Chief Executive Officer of UrbanCore Development, LLC, which he founded in 2012 to focus on public-private, mixed-income residential development projects. Prior to establishing UrbanCore, Mr. Johnson was the founder and president of Em Johnson Interest Inc., a real estate development company based in San Francisco, for 20 years. Over the past 30 years, Mr. Johnson's companies have been among the largest African-American businesses in the Bay Area. Currently, UrbanCore is under construction on its largest transaction to date, the $210 Million 387-unit Poppy Grove project in Elk Grove, California, one of the largest 100% affordable LIHTC projects in the state, for which UrbanCore secured a total of $325 Million in total capitalization.

Mr. Johnson has two degrees: a Bachelor of Science in Architecture and Urban Planning from the University of Maryland (1976), and a Master of Architecture with a concentration in Real Estate Development from Georgia Institute of Technology (1979).

**Tayani Suma – Advisor**

Ms. Suma is the President & CEO of Levanta Residential, LLC, the single-family development affiliate of The Integral Group, LLC. The mission of this The Integral Group, LLC is to increase homeownership and wealth building in black and brown communities using various approaches to products and services. One such approach embraces new urbanism planning principles by developing single-family neighborhoods based on "missing middle" building solutions. Another approach creates a pool of new landlords and their rent-to-own purchasers, which creates a regular flow of renters that transition to ownership.

Ms. Suma sees affordable housing initiatives as critical components of stable mixed-income neighborhoods, especially in urban spaces with burgeoning gentrification.

**Roderick W. Teachy – Advisor**

Mr. Teachy's expansive and diversified real estate experience, which spans from 1992, includes the ground-up development of affordable, mixed-income, and market-rate multi-family and mixed-use developments, along with institutional asset management, investment, and underwriting. Mr. Teachy's focus has most recently been in the development of affordable and workforce housing in the City of Atlanta. During his career in development, he has led the development of over $500 million in total capitalization of multi-family housing and has overseen all aspects of the full-development cycle. His real estate career has primarily been based in Atlanta, with exposure to several markets throughout the country including Fort Worth, Texas and Cincinnati, Ohio, and various submarkets in Florida including Jacksonville, Sarasota and Ft Myers.

In July 2016, Mr. Teachy joined Wingate Companies as Senior Vice President and Chief Development Officer and in that capacity oversees the Wingate Companies's market-rate and affordable housing development platform.

Mr. Teachy obtained his Bachelor of Science in Economics degree with a major in Finance from the Wharton School at the University of Pennsylvania in 1990.

**LEGAL PROCEEDINGS DISCLOSURE**

There are no legal proceedings to disclose on behalf of the Company or its Manager, including but not limited to bankruptcy, civil, or criminal proceedings.

**COMPENSATION OF THE MANAGER** 

The Manager will be compensated according to the following schedule:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Name of Fee** | &nbsp;&nbsp;**Basis for Fee** | &nbsp;&nbsp;**Amount of Fee** |
| &nbsp;&nbsp;**Asset Management Fee** | &nbsp;&nbsp;Fees charged to the Company for the management of Company investments | &nbsp;&nbsp;The annual asset management fee is equal to one and 50/100 percent (1.50%) of the then Gross Assets Under Management (the "Asset Management Fee"), payable monthly. |
| &nbsp;&nbsp;**Construction Fee** | &nbsp;&nbsp;Fees charged to the Company as the properties are developed or rehabilitated | &nbsp;&nbsp;The Construction Fee is equal to the greater of five percent (5.0%) of the budgeted construction and improvements costs for each such construction project or market rate. |
| &nbsp;&nbsp;**Property Management Fee** | &nbsp;&nbsp;Fees charged to the Company for the day-to-day management of its properties | &nbsp;&nbsp;The Property Management Fee is equal to the greater of four percent (4.0%) of the monthly gross rental payable under the terms of the applicable leases for such Managed Real Estate or market rate, provided, however, that the Manager (or the Affiliate) may be paid a greater amount if the same is reasonable and not in excess of the customary real estate property management fee which would be paid to an independent third party in connection with the management of such real estate. |

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In addition to these fees, the Manager shall be reimbursed by the Company for all expenses, fees, or costs incurred on behalf of the Company, including, without limitation, organizational expenses, legal fees, filing fees, accounting fees, out-of-pocket costs of reporting to any governmental agencies, insurance premiums, travel, costs of evaluating investments and other costs and expenses. The initial expenses associated with this Offering, including legal and accounting expenses, have been or will be paid by Affiliates of the Company, which will be reimbursed from the Proceeds from the Offering. An Affiliate of the Company, XIV-I, INC. (the "Sponsor"), in exchange for payment of initial organizational and Offering expenses on behalf of the Company, has been issued 1,000 Class B Membership Interests, which represent 100% of the Company's Class B Membership Interests. Additionally, the Company intends to reimburse Affiliate MCE POOLE, INC. for organizational and Offering expenses incurred on behalf of the Company in excess of $25,000.00, which are estimated to be approximately $100,000.00. The reimbursement amount to MCE POOLE, INC. is estimated to represent approximately $75,000.00. The $25,000.00 paid by MCE POOLE, INC. represents an initial capital contribution paid in exchange for the Sponsor's Class B Interests.

The Company shall pay to the Manager a reasonable monthly amount for its utilization of the Manager's office and equipment, at the discretion of the Manager.

The Manager, its Affiliates or principals may receive reasonable, market-rate commissions upon the Company's purchase or sale of real estate properties. The Company may use the services of Affiliate real estate brokerage MCE POOLE, INC. to acquire and liquidate real estate assets.

The Sponsor is entitled to 15% of Distributions of Cash from Operations pursuant to Manager's ownership of 100% of the Company's Class B Membership Interests.

See "Securities Being Offered" below and Exhibit 3 the "Operating Agreement" for more information about distributions and fees due to the Manager.

**CONFLICTS OF INTEREST**

Monica Poole is the beneficial owner of the Company's Class B Membership Interests, as well as the Manager of the Company's Manager. Because of this relationship, the Manager and Affiliates may experience conflicts of interest while engaged in the management and operations of the Company's business. The Operating Agreement specifically waives any fiduciary duties the Manager may have to the Company or the members; however, the Operating Agreement imposes a duty upon the Manager to deal fairly and in good faith to the Company.

Additionally, the Company may use the services of an Affiliate, MCE POOLE, INC., a licensed real estate brokerage, to purchase and liquidate real property. MCE POOLE, INC. will be receive reasonable, market-rate compensation for any services provided to the Company.

**SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS**

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Title of Class** | &nbsp;&nbsp;**Name and Address of Beneficial Owner** | &nbsp;&nbsp;**Amount and Nature of Beneficial Ownership** | &nbsp;&nbsp;**Amount and Nature of Beneficial Ownership Acquirable** | &nbsp;&nbsp;**Percent of Class** |
| &nbsp;&nbsp;Class B Membership Interests | &nbsp;&nbsp; XIV-I, INC.\*<br> 5784 Lake Forrest Drive, Suite 209<br> Atlanta, Georgia 30328<br>| &nbsp;&nbsp;15% | &nbsp;&nbsp;0% | &nbsp;&nbsp;100% |

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\*XIV-I, INC. is co-owned and managed by Monica Poole, the Manager of the Company's Manager

In addition to the 1,000 outstanding Class B Membership Interests, the Company will issue up to 7,500,000 Class A Membership Interests through this Offering. For information about the rights associated with the Company's Membership Interests, please see "Securities Being Offered," below.

**INTEREST OF MANAGEMENT AND CERTAIN OTHER TRANSACTIONS**

The Company has issued 1,000 Class B Membership Interests to XIV-I, INC., the Sponsor of the Company, in exchange for services rendered to the Company including payment of expenses related to this Offering of $25,000.00. XIV-I, INC. is the owner of 100% of the Company's Class B Membership Interests.

**FEDERAL INCOME TAX CONSIDERATIONS**

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 Members.

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.

**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.** 

**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 Members. 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 Member generally is not taxable to the Member unless the amount of the distribution exceeds the Member'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 has elected that the Company will be classified as a partnership for federal income tax purposes.

***The Manager has no intention of the Company being traded on any market. However, in the event the Company does become publicly traded, then the following rules apply:***

**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. 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**

Investors will become Members of the Company once they have executed a subscription agreement, their funds have been deposited into the Company's escrow account, and the Manager has accepted the Investor as a Member of the Company.

Profits and Losses are allocated to the Members 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 Member 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).

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 accordance with the principles of Treasury Regulations issued under Section 704(b) of the IRS Code relating to the Member's Interest in the Company. 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 interest 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.

 ****

***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 Interests 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.

**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**

***In some cases, if Investor fails to meet the fiduciary and other standards under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), the Code or common law as a result of an investment in the Company's Membership Interests, Investor could be subject to liability for losses as well as civil penalties.***

 ****

There are special considerations that apply to investing in the Company's Membership Interests on behalf of pension, profit sharing or 401(k) plans, health or welfare plans, individual retirement accounts or Keogh plans. If Investor is investing the assets of any of the entities identified in the prior sentence in the Company's Membership Interests, Investor should ensure that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The investment is consistent with Investor's fiduciary obligations under applicable law,
including common law, ERISA and the Code;

&nbsp;&nbsp;&nbsp;&nbsp;2. The investment is made in accordance with the documents and instruments governing the trust, plan
or IRA, including a plan's investment policy;

&nbsp;&nbsp;&nbsp;&nbsp;3. The investment satisfies the prudence and diversification requirements of Sections 404(a)(1)(B)
and 404(a)(1)(C) of ERISA, if applicable, and other applicable provisions of ERISA and the Code;

&nbsp;&nbsp;&nbsp;&nbsp;4. The investment will not impair the liquidity of the trust, plan or IRA;

&nbsp;&nbsp;&nbsp;&nbsp;5. The investment will not produce "unrelated business taxable income" for the plan or
IRA;

&nbsp;&nbsp;&nbsp;&nbsp;6. Investor will be able to value the assets of the plan annually in accordance with ERISA requirements
and applicable provisions of the applicable trust, plan or IRA document; and

&nbsp;&nbsp;&nbsp;&nbsp;7. The investment will not constitute a prohibited transaction under Section 406 of ERISA or Section
4975 of the Code.

Failure to satisfy the fiduciary standards of conduct and other applicable requirements of ERISA, the Code, or other applicable statutory or common law may result in the imposition of civil penalties and can subject the fiduciary to liability for any resulting losses as well as equitable remedies. In addition, if an investment in the Company's Membership Interests constitutes a prohibited transaction under the Code, the "disqualified person" that engaged in the transaction may be subject to the imposition of excise taxes with respect to the amount invested.

**SECURITIES BEING OFFERED**

**DESCRIPTION OF THE SECURITIES**

The Company is offering equity interests in the form of 7,500,000 Class A Membership Interests. The following describes the material terms of the Class A Membership Interests; however, for more detailed information, please see Exhibit 3, the Operating Agreement.

**DISTRIBUTIONS**

***Distributable Cash***

Distributions of distributable cash, if any, shall be distributed quarterly, within forty five (45) days after the end of each calendar quarter and as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· Class A Interests receive 85% of distributable cash, pro rata

&nbsp;&nbsp;&nbsp;&nbsp;· Class B Interests receive 15% of distributable cash, pro rata

Notwithstanding the foregoing, the Manager at its discretion may delay or defer any distributions.

***Tax Distributions***

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The Company shall pay to its Members minimum distributions as shall be sufficient to enable the Members to meet United States income tax liability arising or incurred as a result of their participation in the Company. No tax distributions are to be paid in connection with the dissolution and liquidation of the Company.

**VOTING RIGHTS**

Except as may otherwise be provided in the Operating Agreement, the Act, or the Certificate of Formation, each of the Members hereby waives his or its right to vote on any matters other than the following actions, which require the vote of a majority in interests of the Class B Members and the Class A Members voting as a single class:

&nbsp;&nbsp;&nbsp;&nbsp;· To
authorize or approve a fundamental change in the business of the Company

&nbsp;&nbsp;&nbsp;&nbsp;· To
modify the number of Class A Interests after issuance, alter the Interest of the Class A Interests after issuance or alter the
capital contribution required for each Class A Interest once any Class A Interests have been issued

&nbsp;&nbsp;&nbsp;&nbsp;· To
approve any loans by the Company to a Manager or any guarantee of a Manager's personal obligations

**LIQUIDATION RIGHTS**

During the course of liquidation, the Members shall continue to share profits and loss of the Company, but the Manager shall have sole discretion with respect to cash distributions to the Members until the Distribution Date.

Upon dissolution and termination of the Company, the Manager (or liquidating trustee), shall wind up the affairs of the Company, shall sell all the Company assets as promptly as consistent with obtaining, insofar as possible, the fair value thereof after paying all liabilities, including all costs of dissolution. The proceeds from the liquidation of the assets of the Company and collection of the receivables of the Company, together with the assets distributed in kind, to the extent sufficient therefore, shall be applied and distributed in the following descending order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;· To
the payment and discharge of all of the Company's debts and liabilities and the expenses of the Company including liquidation
expenses

&nbsp;&nbsp;&nbsp;&nbsp;· To
the creation of any reserves which the Manager (or liquidating trustee) deems necessary for any contingent or unforeseen liabilities
or obligations of the Company

&nbsp;&nbsp;&nbsp;&nbsp;· To
the payment and discharge of all of the Company's debts and liabilities owing to Members, but if the amount available for
payment is insufficient, then pro rata in proportion to the amount of the Company debts and liabilities owing to each Member

&nbsp;&nbsp;&nbsp;&nbsp;· To
all the Members in the proportion of their respective positive capital accounts

&nbsp;&nbsp;&nbsp;&nbsp;· To
the Members in proportion to their Interests

**NO PREEMPTIVE RIGHTS** 

There are no preemptive rights to securities made through future offerings associated with the Company's Membership Interests.

**NO CONVERSION RIGHTS** 

There are no conversion rights associated with the Company's Membership Interests.

**REDEMPTION PROVISIONS**

No Member shall have the right to voluntarily or involuntarily withdraw, resign or otherwise disassociate or receive a return of its Capital Contribution from the Company for a period of seven (7) years from the date the Interests were issued (the "Seven Year Term") applicable to said Member except with the prior written consent of the Manager.

After the Seven Year Term, a Member may request that the Company redeem a maximum of one thousand five hundred (1,500) Interests from said Member per Fiscal Year.

The Company may assess a reasonable processing fee not to exceed three hundred fifty dollars ($350.00) per request to redeem Interests. The Member redeeming Interests will not receive distributions for such redeemed Interests for the fiscal quarter in which the Member redeems said Interests.

Prior to the expiration of the Seven Year Term, a Member may request to withdraw from the Company and to have said Member's Interests which have not been issued and outstanding for longer than the Seven Year Term, redeemed by the Company by submitting a written withdrawal request ("Withdrawal Request") to the Manager, in the form to be provided by the Manager from time to time. The Manager shall, in its sole discretion, approve or disapprove the Withdrawal Request.

The Company shall assess a surrender fee ("Surrender Fee") against the Redemption Price per Interest as follows: a Surrender Fee of ten percent (10.0%) of the original purchase price per Interest shall be assessed for Withdrawal Requests before the seven-year anniversary of the date the Interests were issued. Notwithstanding anything to the contrary contained herein, and for the avoidance of doubt, no Interest shall be eligible for redemption prior to the one-year anniversary of the date the interests were issued and no Member shall have a right to be redeemed prior to the expiration of the Seven Year Term.

The Manager shall have the right to redeem (i.e., purchase) the interest of any Member in the Company for "Cause" or "Good Reason," as those terms are defined in Exhibit 3, the Operating Agreement.

**NO SINKING FUND PROVISIONS**

The Operating Agreement does not provide for sinking fund provisions.

**NO LIABILITY TO FURTHER CALLS OR TO ASSESSMENT BY THE ISSUER**

No Member shall be obligated to contribute additional capital to the Company.

**RESTRICTIONS ON ALIENABILITY** 

Interests may be transferred, sold, conveyed or assigned by Members (i) after nine (9) months from the date of purchase, and (ii) provided that any such transfer, sale, or assignment is exempt from any applicable registration requirements of federal and state law and is also in compliance with all other applicable federal and state laws and regulations.

**REPORTS TO MEMBERS AS REQUIRED BY THE OPERATING AGREEMENT**

Upon the request of any Member for purposes reasonably related to the interest of that person as a Member, the Manager shall promptly deliver to the requesting Member, at the expense of the Member, a copy of the following information:

&nbsp;&nbsp;&nbsp;&nbsp;· A current list of the
full name and last known business or residence address of each Member and assignee set forth in alphabetical order, together with
the capital contributions, capital accounts, and Interest of each Member or assignee

&nbsp;&nbsp;&nbsp;&nbsp;· A current list of the
full name and business or residence address of the Manager

&nbsp;&nbsp;&nbsp;&nbsp;· Copies of the Company's
U.S. federal, state and local income tax or information returns and reports, if any, and any tax returns of reports filed by or
on behalf of the Company in any other jurisdiction, for the six (6) most recent taxable years

&nbsp;&nbsp;&nbsp;&nbsp;· A
copy of the Operating Agreement of the Company

Each Member and Manager has the right, upon reasonable request for purposes reasonably related to the interest of the Person as Member or Manager, to inspect and copy during normal business hours any of the Company records described here:

&nbsp;&nbsp;&nbsp;&nbsp;· A current list of the
full name and last known business or residence address of each Member and assignee set forth in alphabetical order, together with
the capital contributions, capital accounts, and Interest of each Member or assignee

&nbsp;&nbsp;&nbsp;&nbsp;· A current list of the
full name and business or residence address of the Manager

&nbsp;&nbsp;&nbsp;&nbsp;· A copy of the Company's
Certificate of Formation and any and all amendments thereto together with executed copies of any powers of attorney pursuant to
which the Company's Certificate of Formation or any amendments thereto have been executed

&nbsp;&nbsp;&nbsp;&nbsp;· Copies of the Company's
U.S. federal, state and local income tax or information returns and reports, if any, and any tax returns of reports filed by or
on behalf of the Company in any other jurisdiction, for the six (6) most recent taxable years

&nbsp;&nbsp;&nbsp;&nbsp;· A copy of this Agreement
and any and all amendments thereto together with executed copies of any powers of attorney pursuant to which this Agreement or
any amendments thereto have been executed

&nbsp;&nbsp;&nbsp;&nbsp;· Copies of the financial
statements of the Company, if any, for the six (6) most recent fiscal years

&nbsp;&nbsp;&nbsp;&nbsp;· Copies of all contracts
of the Company

&nbsp;&nbsp;&nbsp;&nbsp;· The accounting records
of the company, including, without limitation, checks, cancelled checks, bank statements, ledgers, invoices, and similar records.

Each Member may obtain from the Manager, promptly after their becoming available, a copy of the Company's U.S. federal, state and local income tax or information returns and reports and any tax returns and reports filed in any other jurisdiction for each fiscal year of the Company.

The Manager shall be responsible for the preparation of financial reports of the Company and for the coordination of financial matters of the Company with the Company's accountants. Annual compiled financial statements shall be prepared that include a statement showing any item of income, gain, deduction, credit, or loss allocable for U.S. federal income tax purposes pursuant to the terms of Exhibit 3, the Operating Agreement.

**LIABILITIES OF THE MEMBERS**

No Member shall be personally liable for any debt, obligation, or liability of the Company, whether arising in contract, tort or otherwise, solely by reason of being a Member of the Company.

**PART F/S**

**McNamara and Associates, PLLC**

**Certified Public Accountants & Associates**

**Independent Auditor's Report**

To the Member of XIV-I Invest 1, LLC

**Opinion**

We have audited the accompanying financial statements of XIV-I Invest 1, LLC, which comprise the balance sheet as of June 30, 2022 and the related statements of operations, member's equity, and cash flows for the period from February 7, 2022 (inception) to June 30, 2022, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of XIV-I Invest 1, LLC as of June 30, 2022, and the results of its operations and its cash flows for the period from February 7, 2022 (inception) to June 30, 2022 in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of XIV-I Invest 1, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Financial Statements**

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about XIV-I Invest 1, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

**Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements.

**McNamara and Associates, PLLC**

**Certified Public Accountants & Associates**

In performing an audit in accordance with generally accepted auditing standards, we:

· Exercise professional judgement and maintain professional skepticism throughout the audit.

· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of XIV-I Invest 1, LLC's internal control. Accordingly, no such opinion is expressed.

· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

· Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about XIV-I Invest 1, LLC's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

**/s/ McNamara and Associates, PLLC**

McNamara and Associates, PLLC

Margate, Florida

August 16, 2022

**XIV-I INVEST 1, LLC**

**Balance Sheet**

**June 30, 2022**

---

| | | |
|:---|:---|:---|
|  | **ASSETS** | |
| Current Assets |  | $— |
| TOTAL ASSETS |  | $— |
|  | **LIABILITIES AND MEMBER'S DEFICIT** |  |
| &nbsp;&nbsp;Related party payable |  | $14816 |
| &nbsp;&nbsp;Current Liabilities |  | 14816 |
| &nbsp;&nbsp;TOTAL LIABILITIES |  | 14816 |
| &nbsp;&nbsp;Member's Deficit |  | (14816) |
| &nbsp;&nbsp;TOTAL MEMBER'S DEFICIT |  | (14816) |
| &nbsp;&nbsp;TOTAL LIABILITIES AND MEMBER'S DEFICIT |  | $— |

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**XIV-I INVEST 1, LLC**

**Statement of Operations**

**For the period from February 7, 2022 to June 30, 2022**

---

| | |
|:---|:---|
| REVENUE |  |
| Total Revenue | $— |
| EXPENSES |  |
| &nbsp;&nbsp;General and administrative expenses | 39816 |
| &nbsp;&nbsp;Total operating expenses | 39816 |
| &nbsp;&nbsp;LOSS FROM OPERATIONS | (39816) |
| &nbsp;&nbsp;OTHER INCOME (EXPENSES) |  |
| &nbsp;&nbsp;NET LOSS | $(39816) |

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**XIV-I INVESTMENET 1, LLC**

**Statements of Member's Deficit**

**For the period form February 7, 2022 to June 30, 2022**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Class A<br> Interests | Class A<br> Dollars | Class B<br> Interests to be Issued | Class B Dollars | Retained Deficit | Total |
| February 7, 2022 | - | $- | - | $- | $- | $- |
| &nbsp;&nbsp;Class B Interests to be issued for formation expenses |  |  | 1000 | 25000 |  | 25000 |
| &nbsp;&nbsp;Net loss |  |  |  |  | (39816) | (39816) |
| &nbsp;&nbsp;June 30, 2022 |  | $— | 1000 | $25000 | $(39816) | $(14816) |

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**XIV-I INVEST 1, LLC**

**Statement of Cash Flows**

**For the period from February 7, 2022 to June 30, 2022**

---

| | |
|:---|:---|
| CASH FLOWS FROM OPERATING ACTIVITIES |  |
| &nbsp;&nbsp;Net loss | $(39816) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |
| &nbsp;&nbsp;Net cash used by operating activities | (39816) |
| &nbsp;&nbsp;CASH FLOWS FROM INVESTING ACTIVITIES |  |
| &nbsp;&nbsp;Net cash (used in) investing activities |  |
| &nbsp;&nbsp;CASH FLOWS FROM FINANCING ACTIVITIES |  |
| &nbsp;&nbsp;Related party for formation expenses | 14816 |
| &nbsp;&nbsp;Class B interests issued for formation expenses | 25000 |
| &nbsp;&nbsp;Net cash provided by financing activities | 39816 |
| &nbsp;&nbsp;NET INCREASE IN CASH |  |
| &nbsp;&nbsp;Cash at beginning of year |  |
| &nbsp;&nbsp;Cash at end of year | $— |
| &nbsp;&nbsp;SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |  |
| &nbsp;&nbsp;Cash paid during year for interest | $— |
| &nbsp;&nbsp;Cash paid during year for income taxes | $— |

---

**XIV-I Investment 1, LLC**

**Notes to Financial Statements**

**June 30, 2022**

**Note A – Nature of Business and Organization**

XIV-I Investment 1, LLC (the "Company") is a Delaware Limited Liability Company formed on February 7, 2022 under the laws of Delaware. The Company was formed to acquire, manage, develop, rehabilitate, preserve, or create an impact real estate investment portfolio consisting of: for lease multifamily, for sale single family, and land serving such uses.

**Note B – Significant Accounting Policies**

**Basis of Presentation**

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

**Cash and Cash Equivalents**

The Company considers all highly liquid instruments with an original maturity of less than three months to be cash and cash equivalents. The Company places its temporary cash investments with high quality financial institutions. At times, such investments may be in excess of FDIC insurance limits. The Company does not believe it is exposed to any significant credit risk on cash and cash equivalents.

**Income Taxes**

The Company is a limited liability company under the laws of the State of Georgia and has elected to be treated as a partnership for federal tax reporting purposes. As such, the Company does not pay federal or state income taxes on its taxable income. Instead, the income is passed through to the members. Accordingly, no provision for income taxes has been made in the financial statements.

The Company recognizes and discloses uncertain tax positions in accordance with GAAP. The Company's evaluated its tax positions and determined it has no uncertain tax positions as of June 30, 2022. The Company's tax returns are subject to income tax examinations generally for a period of three years from the date of filing. The Company's 2022 tax year will be open for examination for federal and state taxing authorities.

**Use of Estimates**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

**Note C – Member's Deficit**

**Class A Interests**

The Company has authorized interests of Seven Million Five Hundred Thousand (7,500,000) Class A Interests each representing an original Capital Contribution of Ten and 00/100 Dollars ($10.00) for an aggregate of Seventy Five Million and 00/100 Dollars ($75,000, 0000.00). Capital Contributions shall be payable in accordance with the written Subscription Agreement between the Company and the Class A Members. The aggregate equity of the Class A Interests is eighty-five percent (85%) of the Company, which shall not be reduced under any circumstances without the consent of a majority in interest of the Class A Members. No Class A Interests were outstanding as of June 30, 2022.

**XIV-I Invest 1, LLC**

**Notes to Financial Statements**

**June 30, 2022**

**Class B Interests**

The Company has authorized interests of one thousand (1000) Class B Interests each requiring a capital contribution of Twenty Five Dollars ($25.00) for Twenty Five Thousand Dollars ($25,000.00) in the aggregate, which may be paid by the payment of expenses associated with the formation of the Company and the offering of the Class A Interests. If fully issued, the Class B Interests shall represent fifteen percent (15%) of the aggregate profits, losses and tax credits or other tax items in the Company. Amounts advanced by the Class B Member or an affiliate thereof for the benefit of the Company in excess of Twenty Five Thousand Dollars ($25,000.00) shall be reimbursable by the Company. The Company has authorized the issuance of 1,000 interests as of June 30, 2022. The Company will issue the interests subsequent to June 30, 2022.

**Note D – Related Parties**

As of June 30, 2022, the Company owed approximately $15,000 to a related party who funded formation expenses.

**Note E – Commitments and Contingencies**

**Contingencies**

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur to fail to occur. The Company's management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgement. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

In the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

**COVID-19**

Management has concluded that the COVID-19 outbreak in 2020 may have a significant impact on business in general, but the potential impact on the Company is not currently measurable. Due to the level of the risk this virus has had on the global economy, it is at least reasonably possible that I =t could have an impact on the operations of the Company in the near term that could materially impact the Company's financials. Management has not been able to measure the potential financial impact on the Company but will review commercial and federal financing options should the need arise.

**Note F – Subsequent Events**

Management has assessed subsequent events through August 16, 2022, the date on which the financial statements were available to be issued.

**XIV-I INVEST 1, LLC**

**EXHIBIT INDEX**

Exhibit 2: Certificate of Formation

Exhibit 3: Operating Agreement

Exhibit 4: Subscription Agreement

Exhibit 8: Material Contract with Escrow Agent

Exhibit 11: Written Expert Consent Letter of Accountant

Exhibit 12: Opinion Re Legality of the Securities

**SIGNATURES**

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 Atlanta, Georgia on January 27, 2023.

***Issuer Company Legal Name and Address:***

**XIV-I Invest 1, LLC**

5784 Lake Forrest Drive, Suite 209

Atlanta, Georgia 30328

This Offering Statement has been signed by the Manager of the Company's Manager in the capacities and on the dates indicated:

 **<u>s/Monica Poole</u>**

Monica Poole, Manager of XIV-I MANAGER LLC, the Company's Manager

Date: January 27, 2023

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated:

 **<u>s/Monica Poole</u>**

Monica Poole, Manager of XIV-I MANAGER LLC, the Company's Manager

Date: January 27, 2023

## Ex1A-2A

**<u>Delaware</u>** Page 1

The First State

*I , **JEFFREY W. BU** **LL** **OCK, SECRETARY OF STATE OF THE STATE OF DELAWARE,** **DO HEREBY CERTIFY THE ATTACHED ARE TRUE AND CORRECT COPIES OF ALL DOCUMENTS ON FILE OF** **"** **XIV-I INVEST 1, LLC** **"** **AS RECEIVED AND FILED IN THIS OFFICE.***

***THE FOLLOWING DOCUMENTS HAVE BEEN CERTIFIED:***

***CERTIFICATE OF FORMATION, FILED THE SEVENTH DAY OF FEBRUARY,***

 **

---

| | |
|:---|:---|
| ***A.D.*** | ***2022, AT 4:09 O*** ***'CLOCK P.M.*** |

---

 ****

*AND I DO **HEREBY FURTHER CERTIFY THAT THE AFORESAID CERTIFICATES ARE THE ONLY CERTIFICATES** **ON** **RECORD OF THE AFORESAID LIMITED LIABILITY COMPANY, "XIV-I INVEST 1, LLC".***

 **

 ****

 

 

 

 

***s/* <u>Jeffery W. Bullock</u>**

Jeffery W. Bullock. Secretary of State

**![](image_001.jpg)6616238 8100H**

**SR** **# 20222821253**

You may verify this certificate online at corp.delaware.gov/authver.shtml

Authentication: 203816771

Date: 06-30-22

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:

&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. The name of the limited liability company
is._X_IV_-_I _IN_V_E_ST_1,_L_<u>Lc</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. The Registered Office of the limited liability company in the State of Delaware is located at <u>919</u> <u>North Market</u> <u>Street,</u> <u>Suite</u> <u>950</u> (street),

in the City of <u>Wilmington</u> Zip <u>Code19801</u> . The name of the Registered Agent at such address upon whom process against this limited

liability company may be served is_ln_c_o_rp_s_e_rv_ic_es_ln_c<u>.</u> -,--

By: ***<u>s/</u>* <u>David G. LeGrand</u>**

Name: <u>David G. LeGrand</u>

Print or Type

State of Delaware Secretary of State Division of Corporations

Delivered 04:09 PM 02/07/2022 FILED 04:09 PM 02/07/2022

SR 20220402257 - File Number 6616238

**<u>Delaware</u>** Page 1

The First State

*I, **JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF** **DELAWARE,** **DO HEREBY CERTIFY** **"XIV-I** **INVEST 1, LLC" IS DULY FORMED UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN GOOD STANDING AND HAS A LEGAL EXISTENCE SO FAR AS THE RECORDS OF THIS OFFICE SHOW, AS OF THE THIRTIETH DAY OF JUNE, A. D. 2022.***

 **

 ****

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

***s/* <u>Jeffery W. Bullock</u>**

Jeffery W. Bullock. Secretary of State

 ****

 ****

**![](image_002.jpg)6616238 8300**

**SR#** **20222821253**

You may verify this certificate online at corp.delaware.gov/authver.shtml

Authentication: 203816751

Date: 06-30-22

## Ex1A-3

**OPERATING AGREEMENT**

**OF**

**XIV-I INVEST 1, LLC**

**a Delaware limited liability company.**

THE INTERESTS REPRESENTED HEREBY (THE "INTERESTS") HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF LEGAL COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED OR PURSUANT TO AN AVAILABLE LEGAL EXEMPTION THEREFROM.

THE INTERESTS ARE BEING OFFERED AND SOLD PURSUANT TO REGULATION A OF THE SECURITIES ACT AND PURSUANT TO RULES THEREUNDER.

THERE IS NO OBLIGATION ON THE ISSUER TO REGISTER THE INTERESTS UNDER THE SECURITIES ACT. A PURCHASER OF ANY INTEREST MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

<u>ARTICLE 11</u> OF THE OPERATING AGREEMENT PROVIDES FOR FURTHER RESTRICTIONS ON TRANSFER OF THE INTERESTS.

THIS OPERATING AGREEMENT (hereinafter "Agreement" or "Operating Agreement") is made and entered into effective as of April 7, 2022, by and among XIV-I INVESTMENT 1, LLC, a Delaware limited liability company (hereafter the "Company"), XIV-I MANAGER, LLC, a Georgia limited liability company as the Manager (the "Manager") and XIV-I, Inc., a Georgia corporation as Class B Member (the "Class B Member") and the several persons whose names and addresses are set forth in ***Exhibit "1"*** attached hereto and incorporated herein by reference, and whose signatures appear herein or by a separate joinder instrument, and any other Person who shall hereafter execute this Agreement as a member of the Company (collectively the "Class A Members").

**WINTESSETH**

WHEREAS certain persons, wishing to become Members (as hereinafter defined) of the Company under the pursuant to the Delaware Limited Liability Company Act caused Articles of Organization to be executed and filed with the Delaware Secretary of State on February 7, 2022; and

WHEREAS the parties agree that their respective rights, powers, duties and obligations as Members of the Company, and the management, operations and activities of the Company, shall be governed by this Operating Agreement ("Agreement"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed that the foregoing recitals shall be, and are, incorporated into this Agreement as if repeated in their entirety below, and it is further agreed as follows:

In consideration of the mutual terms, covenants, and conditions contained herein, the parties hereby agrees as follows:

**ARTICLE 1**

**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1 <u>Certain Definitions</u> Capitalized terms used in this Agreement without other definition shall, unless expressly stated otherwise, have the meanings specified in this Article 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2 "<u>Act</u>" means the provisions of the Delaware Code, Title 6, Chapter 18 (the Delaware Revised Uniform Limited Liability Company Act)(the "Act"), as from time to time in effect in the State of Delaware, or any corresponding provisions of any succeeding or successor law of such State. The Act shall govern the rights and obligations of, and the relationships among, the Members except as modified by the provisions of this Agreement provided, however, that in the event that any amendment to the Act, or any succeeding or successor law, is applicable to the Company only if the Company has elected to be governed by the Act as so amended or by such succeeding or successor law, as the case may be, the term "Act" shall refer to the Act as so amended or to such succeeding or successor law only after the appropriate election by the Company, if made, has become effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3 "<u>Additional Capital Contribution</u>" means any capital contributed by an existing or new Member at the request of the Manager pursuant to a Capital Call.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.4 "<u>Affiliate</u>" of a Member or Manager means any Person, directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with the Member or Manager, as applicable. The term "control," as used in the immediately preceding sentence, means with respect to a corporation, limited liability company, limited life company or limited duration company (collectively, "limited liability company"), the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the controlled corporation or limited liability company and, with respect to any individual partnership, trust, estate, association or other entity, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled 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;1.1.5 "<u>Agreement</u>" means this Operating Agreement of XIV-I INVEST 1, LLC, as originally executed and as amended, modified, or supplemented from time to time. Words such as "herein," "hereinafter," "hereof," "hereto," "hereby," and "hereunder," when used with reference to this Agreement, refer to this Agreement as a whole, unless the context otherwise requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.6 "<u>Assignee</u>" means any transferee of a Member's Interest who has not been admitted as a Member of the Company in accordance with <u>Section 11.2</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;1.1.7 "<u>Bankruptcy</u>" means, with respect to a Member: (i) such Member makes an assignment for the benefit of creditors; (ii) such Member files a voluntary petition for bankruptcy; (iii) such Member is adjudged as bankrupt or insolvent, or has entered against him or it an order for relief, in any bankruptcy or insolvency proceeding; (iv) such Member files a petition or answer seeking for himself or itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation; (v) such Member files an answer or other pleading admitting or failing to consent the material allegations of a petition filed against him or it in any proceeding of a nature described in this <u>subsection 1.1.6</u>; (vi) such Member seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the Member of all or any substantial part of his or its assets; or (vii) one hundred twenty (120) days after the commencement of any proceeding against the member seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, the proceeding has not been dismissed, or if within ninety (90) days after the appointment without the Member's consent or acquiescence of a trustee, receiver or liquidator of the Member of all or any substantial part of his or its properties, the appointment is not vacated or stayed, or within ninety (90) days after the expiration of any such stay, the appointment is not vacated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.8 "<u>Capital Account</u>" means an account established and maintained (in accordance with, and intended to comply with, Income Tax Regulations Section 1.704-1(b)) for each Member pursuant to <u>Section 8.5</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.9 "<u>Capital Call</u>" means a request by the Manager to the Members for an Additional Capital Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.10 "<u>Capital Contributions</u>" means the contributions made by the Members to the Company pursuant to <u>Section 8.1</u>, <u>Section 8.2</u>, or <u>Section 8.3</u> hereof and, in the case of all the Members, the aggregate of all such Capital Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.11 "<u>Certificate of Formation</u>" means the Articles of Organization of this Company filed with the Delaware Secretary of State, Division of Corporations on February 7, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.12 "<u>Class A Members</u>" Class A Members are persons accepted into the Company as owners of Class A Interests, as reflected on Exhibit 1 attached hereto as same may be amended from time to time. The interest of each Class A Member shall be based upon the relative capital contributions of each Class A 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;1.1.13 "<u>Class A Interests</u>" means one of the Seven Million Five Hundred Thousand (7,500,000) Class A Interests each representing an original Capital Contribution of Ten and 00/100 Dollars ($10.00) for an aggregate of Seventy Five Million 00/100 Dollars ($75,000,000.00). Capital Contributions shall be payable in accordance with the written Subscription Agreement between the Company and the Class A Members. The aggregate equity

of the Class A Interests is eighty-five percent (85%) of the Company, which shall not be reduced under any circumstances without the consent of a majority in interest of the Class A 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;1.1.14 "<u>Class B Interest</u>" means the Interest that is held by the Class B Member. There shall be one thousand (1000) Class B Interests each requiring a capital contribution of Twenty Five Dollars ($25.00) for Twenty Five Thousand Dollars ($25,000.00) in the aggregate, which may be paid by the payment of expenses associated with the formation of the Company and the offering of the Class A Interests. If fully issued, the Class B Interests shall represent fifteen percent (15%) of the aggregate profits, losses and tax credits or other tax items in the Company. Amounts advanced by the Class B Member or an affiliate thereof for the benefit of the Company in excess of Twenty Five Thousand Dollars ($25,000.00) shall be reimbursable by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.15 "Class B Member" means a person holding a Class B Interest and accepted into the Company as a 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;1.1.16 "<u>Code</u>" means the United States Internal Revenue Code of 1986, as amended, or any corresponding provision or provisions of any succeeding law and, to the extent applicable, the Income Tax 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;1.1.17 "<u>Company</u>" means XIV-I INVEST 1, LLC, a Delaware limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.18 "<u>Distributable Cash</u>" means, for each Fiscal Quarter, the GAAP (Generally Accepted Accounting Principles) Profits from Company operations less (only to the extent not yet included in the adjustments made to determine the GAAP Profits for such Fiscal Quarter) the following to the extent paid, accrued or set aside by the Company: (a) all principal payments on indebtedness of the Company and all other sums paid by the Company to lenders; (b) all capital expenditures of the Company's business, including but not limited to, any real estate purchase commitments and commitments for any Financing Receivable; (c) such Reserves as the Manager deems reasonably necessary to the proper operation of the Company's business; (d) Cash Available for Redemption; (e) fees payable to the Manager under Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.19 "<u>Fiscal Quarter</u>" means each period of January 1 to March 31, April 1, to June 30, July 1 to September 30, and October 1 to December 31 of each 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;1.1.20 "<u>Gross Assets Under Management</u>" means the acquisition cost plus the cost of any improvements of any assets owned by the Company or the appraised value of any assets as determined by an independent third party appraiser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.21 "<u>Income Tax Regulations</u>" means, unless the context clearly indicates otherwise, the regulations in force as final or temporary that have been issued by the U.S. Department of the Treasury pursuant to its authority under the Code, and any successor regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.22 "<u>Manager</u>" means XIV-I MANAGER, LLC who is elected as a Manager of the Company pursuant to <u>Section 5.5</u> or <u>Section 5.6</u> of 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;1.1.23 "<u>Member</u>" means any Person who (i) is one of the original signatories to this Agreement, (ii) those persons listed on ***Exhibit "1"***, as same may be amended from time to time, and (iii) is later admitted to the Company's as a Member in accordance with the Act and this Agreement, and (iii) has not ceased to be a Member for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.24 "<u>Net Capital Event Proceeds</u>" means, with respect to any fiscal period, the amount of net proceeds from receipt of funds derived from the sale of an asset held for more than one year. Net Capital Event Proceeds shall not include any profits that are tax deferred as a result of exchanges under IRC Section 1031 or investments in Opportunity Zones that have the effect of deferring taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.25 "<u>Interest</u>" means the allocable interest of each Member in the income, gain, loss, deduction, or credit of the Company, as set forth in ***Exhibit "2"***, attached hereto and incorporated herein by reference, as amended from time to time. Percentage Interest includes the entire ownership interest of a Member in the Company at any particular time, including, without limitation, the right of such Member to participate in the Company's income or losses, Distributable Cash and any and all rights and benefits to which a Member may be entitled pursuant to this Agreement and under the Act, together with the obligations of such Member to comply with all the terms and provisions of this Agreement and the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.26 "<u>Person</u>" means a natural person or any partnership (whether general or limited and whether domestic or foreign), limited liability company, foreign limited liability company, limited life company, limited duration company, trust, estate, association, corporation, custodian, nominee or any other individual or entity in its own or any representative capacity or any 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;1.1.27 "<u>Real Estate Asset</u>" means either (i) unimproved land, (ii) land having in place improvements or (iii) receivables consisting of Promissory Notes or other financial obligations secured by real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.28 "<u>Reserves</u>" means the reasonable reserves established and maintained from time to time by the Manager, in amounts reasonably considered adequate and sufficient from time to time by the Manager to pay taxes, fees, insurances or other costs and expenses, and including reserves for loan impairment, reserves for real estate value impairment or any other reserves incident to the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.29 "<u>Transfer</u>" means the voluntary or involuntary sale or assignment, by operation of law or otherwise, of a Member's Interests.

**<u>Section 1.2</u> <u>Form of Pronouns; Number; Construction</u>.** Unless the context otherwise requires, as used in this Agreement, the singular number includes the plural and the plural number may include the singular. The use of any gender shall be applicable to all genders. Unless otherwise specified, references to Articles, Sections or subsections are to the Articles,

Sections, and Subsections in this Agreement. Unless the context otherwise requires, the term "including" shall mean "including, without limitation."

**ARTICLE 2**

**THE COMPANY**

**<u>Section 2.1</u> <u>Name</u>.** The name of the Company shall be XIV-I INVEST 1, LLC.

**<u>Section 2.2</u> <u>Purpose of the Company</u>.** The Company is organized for the following objectives and purposes: The purpose of the Company is to engage in any lawful act or activity for which a limited liability company may be organized under the Act, which shall include, but not limited to, engaging in acquiring, retaining, managing, investing in, improving, selling, assigning and/or transferring real estate and interests therein, incurring indebtedness, borrowing or lending monies from or to one or more sources, including Affiliates, and engaging in any other lawful act or activity for which a limited liability company may be organized under the Act.

The Company intends to engage in deploying its capital for approximately seven (7) years and thereafter commence an orderly disposition of assets and final net distributions to Members, however, the Company will exercise its discretion in light of market conditions and may commence liquidation anytime within five (5) to nine (9) years after initial acquisition of assets.

**<u>Section 2.3</u> <u>Term</u>.** The Company shall continue in existence in perpetuity from the date of filing of its Certificate of Formation with the Delaware Secretary of State, unless earlier dissolved pursuant to the Act or <u>Section 13.1</u> of this Agreement. The Company intends to commence an orderly liquidation of its assets in approximately seven (7) years from its first acquisition of assets.

**ARTICLE 3**

**OFFICES**

**<u>Section 3.1</u> <u>Registered Office</u>.** The registered office of the Company is Delaware required by the Act shall be as set froth in the Company's Certificate of Formation until such time as the registered office is changed in accordance with the Act.

**<u>Section 3.2</u> <u>Principal Executive Office</u>.** The principal executive office for the transaction of the business of the Company shall be fixed by the Manager within or without the State of Georgia.

**<u>Section 3.3</u> <u>Other Offices</u>.** The Manager may at any time establish other business offices within or without the State of Georgia.

**ARTICLE 4**

**MEMBERS; LIMITED LIABILITY OF MEMBERS; CLASSES; INTERESTS OF MEMBERS; CERTIFICATES; VOTING RIGHTS; MEETINGS OF MEMBERS**

**<u>Section 4.1</u> <u>Members</u>.** Each of the parties to this Agreement, and each Person admitted as a Member of the Company pursuant to the Act and <u>Section 11.2</u> of this Agreement, shall be Members of the Company until they cease to Members in accordance with the provisions of the Act, the Certificate of Formation , or this Agreement. Upon the admission of any new Member, ***Exhibit "1"*** attached hereto shall be amended accordingly.

**<u>Section 4.2</u> <u>Limited Liability</u>.** Except as expressly set forth in this Agreement or required by law, no Member shall be personally liable for any debt, obligation, or liability of the Company, whether arising in contract, tort or otherwise, solely by reason of being a Member of the Company.

**<u>Section 4.3</u> <u>Nature of Membership Interest; Agreement Is Binding upon Successors</u>.** The Interests of Members in the Company constitute their personal estate. No Member has any interest in any specific asset or property of the Company. In the event of the death or legal disability of any Member, the executor, trustee, administrator, guardian, conservator, or other legal representative of such Member shall be bound by the provisions of this Agreement with respect to the Interest held hereunder, including without limitation <u>Section 11.1</u>, <u>Section 11.2</u> and <u>Section 11.3</u>. If a Member who is not a natural person is dissolved or terminated, the successor in interest of such Member shall be bound by the provisions of this Agreement with respect to the Interest held hereunder, including without limitation <u>Section 11.1</u>, <u>Section 11.2</u> and <u>Section 11.3</u>.

**<u>Section 4.4</u> <u>Certificates Evidencing Interests</u>.** The Company does not intend to issue certificates to the Members for their interests in the Company. The Company reserves the right to issue to every Member of the Company a certificate signed by the Manager of the Company specifying the Interest of such Member. If a certificate for registered interests in worn out or lost, it may be renewed on production of the worn-out certificate or on satisfactory proof of its loss together with such indemnity as may be required by a resolution of the Manager.

**<u>Section 4.5</u> <u>Classes of Members</u>.** The Company shall have two (2) classes of Members: Class A Members and Class B Members. Each such class of Members shall have the rights, powers, duties, obligations, preferences, and privileges set forth in this Agreement. The names of the Class A Members, respectively, shall be set forth in ***Exhibit "1"***, attached hereto and incorporated herein by reference, as amended from time to time. A Class B Member may also be a Class A Member.

**<u>Section 4.6</u> <u>Class A Members</u>** are entitled to eighty-five percent (85%) of the Interests in the Company as set forth in Section 1.1.10 and shall be entitled to a return of their positive Capital Account balances upon a dissolution and liquidation of the Company in accordance with <u>Article 13</u>.

**<u>Section 4.7</u>** Voting Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.1 Except as may otherwise be provided in this Agreement, the Act, or the Certificate of Formation, each of the Members hereby waives his or its right to vote on any matters other than as set forth in this <u>Section 4.7</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;4.7.2 In accordance with <u>Section 19.2</u>, the affirmative vote of a majority in interest of the Class B Members – shall be required 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;(A) approve amendments to 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;(B) approve a sale of substantially all the assets of the Company;

&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) approve indemnification of any Manager, Member, or officer of the Company as authorized by <u>Article 13</u> of this 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;(D) appoint a Liquidating Trustee in accordance with <u>Subsection 13.2.1</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;4.7.3 The following actions require the vote of a majority in interests of the Class B Member and the Class A Members voting as a single class:

&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) authorize or approve a fundamental change in the business of the Company;

&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) modify the number of Class A Interests after issuance, alter the Interest of the Class A Interests after issuance or alter the capital contribution required for each Class A Interest once any Class A Interests have been issued; 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;(C) to approve any Loans by the Company to a Manager or any guarantee of a Manager's personal obligations, in accordance with <u>Article 17</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;4.7.4 Unless a record date for voting purposes has been fixed as provided in Section 4.13 of this Agreement, only Persons whose names are listed as Members on Exhibit 1 of this Agreement of the Company at the close of business on the business day immediately preceding the day on which notice of the meeting is given or, if such notice is waived, at the close of business on the business day immediately preceding the day on which the meeting of Members is held shall be entitled to receive notice of and to vote as a Class A Member at such meeting, and such day shall be the record date for such meeting. Any Member entitled to vote on any matter may cast part of the votes in favor of the proposal and refrain from exercising the remaining votes or vote against the proposal (other than for election or removal of a Manager), but if the Member fails to specify the Interests such Member is voting affirmatively, it will be conclusively presumed that the Member's approving vote is with respect to all votes such Member is entitled to cast. Such vote may be a voice vote or by ballot; provided, however, that all votes for election or removal of a Manager must be by ballot upon demand made by the Class B Member at any meeting at which such election or removal is to be considered and before the voting begins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.5 Without limiting the preceding provisions of this Article 4.7, no Person shall be entitled to exercise any voting rights as a Member until such Person (i) shall have been admitted as a Member pursuant <u>Article 11.2</u>, and (ii) shall have paid the Capital Contribution of such Person in accordance with <u>Article 8.1</u>.

**<u>Section 4.8</u> <u>Place of Meetings</u>.** All meetings of the Members shall be held at any place within or without the State of Georgia that may be designated by the Manager. In the absence of such designation, Member's meetings shall be held at the principal executive office of the Company. Meetings may be held virtually, by telephonic, internet or other similar means.

**<u>Section 4.9</u> <u>Meetings of Members</u>**. Meetings of the Members for the purpose of taking any action permitted to be taken by the Members may be called by any Manager or the Class B Member. Upon request in writing that a meeting of Members be called for any proper purpose, the Manager forthwith shall cause notice to be given to the Members entitled to vote that a meeting will be held at a time requested by the Person or Persons calling the meeting, not less than ten (10) days nor more than sixty (60) days after receipt of the request. Except in special cases where other expenses provision is made by statute, written notice of such meetings shall be given to each Member entitled to vote not less than ten (10) days nor more than sixty (60) days before the meeting. Such notices shall state:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.1 The place, date, and hour of the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.2 Those matters which the Manager, at the time of the mailing of the notice, intend to present for action by the Members; 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;4.9.3 The names of the Manager intended at the time of the notice to be presented for election by the Class B Memebrs.

**<u>Section 4.10</u> <u>Quorum</u>**. The presence at any meeting in person or by proxy of Members holding not less than a majority of the Percentage Interests of the class or classes entitled to vote at such meeting shall constitute a quorum for the transaction of business. This section shall not be interpreted to alter the votes required by this Agreement.

**<u>Section 4.11</u> <u>Waiver of Notice</u>**. The actions of any meeting of Members, however called and noticed, and wherever held, shall be as valid as if taken at a meeting duly held after regular call and notice, if a quorum be present either in person or by proxy, and if, either before or after the meeting, each person is entitled to vote, not present in person or by proxy, signs a written waiver of notice or a consent to the holding of the meeting, or an approval of the minutes thereof. For all purposes under this Agreement, a quorum shall mean the presence of (i) the Class B Member and (ii) a majority in interest of the Class A Members. The waiver of notice, consent, or approval need not specify either the business to be transacted or the purpose of any regular or special meeting of the Members, except that if action is taken or proposed to be taken for approval of any of those matters specified in <u>subsections 4.7.2</u>, <u>4.7.3</u>, inclusive, of this Agreement, the waiver of notice, consent, or approval shall state the general nature of such proposal. All such waivers, consents or approvals shall be filed with the Company's records and made a part of the minutes of the meeting. Attendance of a Member at a meeting shall also constitute a waiver of

notice of and presence at such meeting, except when the Member objects, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened, and except that attendance at a meeting is not a waiver of any right to object to the consideration of matters required to be included in the notice but not so included, if such objection is expressly made at the meeting.

**<u>Section 4.12</u> <u>Action by Members Without a Meeting</u>.** Any other action which , under any provision of the Act or the Certificate of Formation or this Agreement that may be taken at a meeting of the Members, may be taken without a meeting, and without notice except as hereinafter set forth. If a consent in writing, setting forth the action so taken, is signed by the Class B Member and a majority in interest of the Class A Members. All such consents shall be filed with the secretary of the Company and shall be maintained in the Company's records. Unless the consents of all Members entitled to vote have been solicited in writing, then (i) notice of any proposed Member approval without a meeting by less than unanimous written consent shall be given to those Members entitled to vote who have not consented in writing at least five (5) days before the consummation of the action authorized by such approval, and (ii) prompt notice shall be given of the taking of any other action approved by Members without a meeting by less than unanimous written consent to those Members entitled to vote who have not consented in writing.

Any Member giving a written consent, or the Member's proxyholders, or a personal representative of the Member or their respective proxyholders, may revoke the consent by a writing received by the secretary prior to the time that written consents of the number of votes required to authorize the proposed action have been filed with the secretary, but may not do so thereafter. Such revocation is effective upon its receipt by the secretary or, if there shall be no person then holding such office, upon its receipt by any other officer or Manager of the Company.

**<u>Section 4.13</u> <u>Record Date</u>.** The Manager or, if there be no Manager then in office, then the Class B Member may fix a time in the future as a record date (the "Record Date") for the determination of the Members entitled to notice of and to vote at any meeting of Members or entitled to give consent to action by the Company in writing without a meeting, to receive any report to receive any dividend or distribution, or any allotment of rights, or to exercise rights with respect to any change, conversion or exchange of interests. The Record Date so fixed shall but not more than sixty (60) days nor less than ten (10) days prior to the date of any meeting, nor more than sixty (60) days prior to any other event for the purposes of which it is fixed. When a Record Date is so fixed, only Members of record at the close of business on that date are entitled to notice of and to vote at any such meeting, to give consent without a meeting, to receive any report, to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any interests on the books of the Company after the Record Date, except as otherwise provided by statute or in the Certificate of Formation or this Agreement.

If the Manager or the Members, as the case may be, do not so fix a record date, then (i) the record date for determining Members entitled to notice of or to vote at a meeting of Members shall be at the close of business on the business day immediately preceding the day on which

notice is given or, if notice is waived, at the close of business on the business day immediately preceding the day on which the meeting is held, and (ii) the record date for determining Members entitled to give consent to Company action in writing without a meeting shall be the day on which the first written consent is given.

**<u>Section 4.14</u> <u>Resignation and Withdrawal of Members</u>.** No Member may resign or withdraw as a Member prior to the dissolution and winding up of the Company or without the consent of the Manager.

**<u>Section 4.15</u> <u>Members May Participate in Other Activities</u>.** Each Member of the Company, either individually or with others, shall have the right to participate in other business ventures of every kind, whether or not such other business ventures compete with the Company. No Member, acting in the capacity of a Member, shall be obligated to offer to the Company or to the other Members any opportunity to participate in any such other business venture. Neither the Company nor the other Members shall have any right to any income or profit derived from any such other business venture of a Member or Affiliate. A Class B Member or Manager may engage in incidental use of the Company's computers, communication systems, or internet facilities for other business activities so long as such usage has no material impact upon the Company's facilitates and equipment.

**<u>Section 4.16</u> <u>Members Are Not Agents</u>.** Pursuant to <u>Article 5.1</u> of this Agreement, the management of the Company is vested in the Manager. The Members shall have no power to participate in the management of the Company except as expressly authorized by the Act, this Agreement, or the Certificate of Formation. No Member, acting solely in the capacity of a Member is an agent of the Company nor does any Member, unless expressly and duly authorized in writing to do so by the Manager, have any power or authority to bind or act on behalf of the Company in any way, to pledge its credit, to execute any instrument on its behalf or to render it liable for any purpose. Any attempt to do so is null and void.

**<u>Section 4.17</u> <u>Transaction of Members with the Company</u>.** Subject to any limitations set forth in this Agreement and with the prior approval of the Manager, a Member may lend money to and transact other business with the Company, such as providing services for compensation. Subject to other applicable law, such Member has the same rights and obligations with respect thereto as a Person who is not a Member.

**<u>Section 4.18</u> <u>Loans by Members to the Company</u>.** Without limiting Section 4.15, no Member shall be obligated to lend money to the Company. No Member may lend money to the Company without the prior approval of the Manager(s). Any loan by a Member to the Company with the required approval of the Manager(s) shall be separately entered on the books of the Company as a loan to the Company and not as a Capital Contribution, shall bear interest at such commercially reasonable rate as may be agreed upon by the lending Member and the Manager(s), and shall be evidenced by a promissory note containing commercially reasonable terms duly executed by the Manager.

**<u>Section 4.19</u> <u>General Prohibition on Withdrawal</u>.** No Member shall have the right to voluntarily or involuntarily withdraw, resign or otherwise disassociate (a "**Withdrawal**" or to

"Withdraw") or receive a return of its Capital Contribution from the Company for a period of seven (7) years from the Interest Issue Date (the "Seven Year Term") applicable to said Member except with the prior written consent of the Manager and as provided in <u>Section 4.20, Section 4.21, Section 4.22</u> or <u>Section 4.23</u> hereto. Any Withdrawal for which no consent has been given, or which is not permitted under the aforementioned Sections, shall be null and void and of no legal effect whatsoever.

**<u>Section 4.20</u> <u>Permitted Withdrawal and Redemption Requests</u>.** After the Seven Year Term, a Member may request that the Company redeem a maximum of one thousand five hundred (1500) Interests from said Member per Fiscal Year. In the event a Member desires redemption under this Section 4.20 and qualifies for the same, said Member ("**Redeeming Member**") shall submit a written request ("**Redemption Request**") to Withdraw and for the Company to redeem said Member's Interests up to maximum of one thousand five hundred (1500) Interests per Fiscal Year. (The Redemption Request shall be in a form provided by the Manager from time to time.) The Redemption Request shall specify the number of Interests ("**Request Interests**") to be redeemed, *<u>provided, however, that for the avoidance of doubt, a Member may only request the redemption of Interests that have been issued and outstanding for longer than seven years (the "Seven Year Term")</u>.* The Redemption Request shall be effective on the first day on the Fiscal Quarter following the day upon which said Redemption Request is actually received by the Company. Redemptions shall be calculated as of the end of the Fiscal Quarter in which the Redemption Request is received, and Members must have delivered a completed Redemption Request to the Manager no later than five (5) business days prior to the end of the Fiscal Quarter in order to be eligible to participate in a redemption in the next Fiscal Quarter. Notwithstanding anything else contained herein to the contrary, the Company's ability to meet Redemption Requests is wholly contingent upon the sufficiency and availability of Cash Available for Redemption, and the process by which the Company will meet Redemption Requests is provided for in Section 4.21 and below. The Manager shall at its sole discretion establish a redemption price (the "Redemption Price"), which may be at a discount to the then current liquidation value.

**<u>Section 4.21</u> <u>Redemption Requests; Sufficient Cash Available for Redemption</u>.** To the extent there is sufficient and available Cash Available for Redemption, as determined by the Manager in its sole discretion, to meet all Redemption Requests timely delivered by Redeeming Members in the prior Fiscal Quarter, the Company shall redeem the Request Interests from all Redeeming Members for the Redemption Price per Interest.

**<u>Section 4.22</u> <u>Redemption Requests; Insufficient Cash Available for Redemption</u>.** To the extent there is insufficient and unavailable Cash Available for Redemption, as determined by the Manager in its sole discretion, to meet all Redemption Requests timely delivered by Redeeming Members in the prior Fiscal Quarter, then the Redeeming Members, *vis-à-vis* each other, shall be redeemed on a pro-rata basis to the extent of Cash Available for Redemption. Request Interests for which completed Redemption Requests are received and which are not fully redeemed at the end of the subsequent Fiscal Quarter (due to insufficiency and unavailability for Cash Available for Redemption) shall have priority for redemption in the next succeeding Fiscal Quarter over those Request Interests for which completed Redemption Requests are received in such next succeeding Fiscal Quarters. Priority for redemption shall be established quarter by quarter, pursuant to a "first in, first out" system on a quarterly basis. Thus, completed Redemption

Requests received in the same Fiscal Quarter shall have priority over completed Redemption Requests received in subsequent Fiscal Quarters, while completed Redemption Requests received in the same Fiscal Quarter shall have pro-rata priority *vis-à-vis* each other.

**<u>Section 4.23</u> <u>Redemption Requests Terms</u>.** Closing on the redemption of Request Interests, may occur electronically no later than the last Business Day of the subsequent Fiscal Quarter, and the Company shall wire funds or shall tender certified funds to the Redemption Members in payment of the Redemption Price for the Request Interests. Upon receipt by each Redeeming Member of the Redemption Price due said Member for said Member's Request Interests, said Redeeming Member shall promptly execute and deliver any documents of transfer requested by the Company to evidence such redemption and assignment or transfer of the Interests representing its Percentage Interests. The Company may assess a reasonable processing fee ("**Processing Fee**") not to exceed Three Hundred Fifty Dollars ($350.00) per Redemption Request. The Company may, in its discretion, assess this Processing Fee against the Redemption Price for the Request Interests. Notwithstanding Section 10.1, or anything else herein, to the contrary, the Redeeming Member is not eligible to receive distributions (made pursuant to <u>Section 10.1</u> or otherwise) on Request Interests in the Fiscal Quarter in which said Member has been redeemed for said Request Interests.

**<u>Section 4.24</u> <u>Discretionary Withdrawal Requests</u>.** Prior to the expiration of the Seven Year Term, a Member may request to Withdraw from the Company and to have said Member's Interests which have not been issued and outstanding for longer than the Seven Year Term, redeemed by the Company by submitting a written withdrawal request ("**Withdrawal Request**") to the Manager, in the form to be provided by the Manager from time to time. *<u>The Manager shall, in its sole discretion, approve or disapprove the Withdrawal Request.</u>* In the event the Manager approves such Withdrawal Request, the Manager shall notify the requesting Member of the same in Writing, which Writing shall set forth the total Interests to be redeemed and the total purchase price ("**Withdrawal Purchase Price**"), which shall be at the Redemption Price for said Interests less the Processing Fee and less the "Surrender Fee" (as the term is defined below), to be paid by the Company to the Member for its Interests, and shall specify the closing date of such redemption.

The Company shall assess a surrender fee ("**Surrender Fee**") against the Redemption Price per Interest as follows: a Surrender Fee of ten percent (10.0%) of the original purchase price per Interest shall be assessed for Withdrawal Requests before the seven-year anniversary of the Interest Issue Date. Notwithstanding anything to the contrary contained herein, and for the avoidance of doubt, no Interest shall be eligible for redemption prior to the one-year anniversary of the Interest Issue Date and no Member shall have a right to be redeemed prior to the expiration of the Seven Year Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.24.1 Upon receipt by the withdrawing Member of the Withdrawal Purchase Price due said Member for said Member's Interests, said Member shall promptly execute and deliver any documents of transfer requested by the Company to evidence such redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.24.2 Notwithstanding <u>Article 10.1</u>, or anything else herein to the contrary, the withdrawing Member is not eligible to receive distributions (made pursuant to <u>Section 10.1</u> or otherwise) on Interests in the Fiscal Quarter in which said Member has been redeemed for said

Interests as provided for in this Section 4.24. Notwithstanding Article 8.5, or anything else herein, to the contrary, the withdrawing Member is not eligible to receive distributions (made pursuant to <u>Article 10.1</u> or otherwise) on said redeemed Interests in the Fiscal Quarter in which said Member has been redeemed for said Interests as provided for in this <u>Article 4.24</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.24.3 The Manager may, in its sole discretion, waive the Surrender Fee with regard to a Withdrawal Request to which the Manager has consented, including, but not limited to, Withdrawal Requests submitted by an Affiliate of the Manager.

**<u>Section 4.25</u> <u>Mandatory Redemptions</u>.** If as a result of a Member Withdrawal, redemption or otherwise or issuance of additional Interests, the Company violates or will violate the ERISA Investor Restriction, the Manager has the right, exercisable in its sole discretion, to cause the Company to redeem outstanding Interests that are then held by ERISA Investors, on a pro rata basis, as is or may be necessary to ensure that the Company does not violate the ERISA Investor Restriction. In the event the Manager determines the exercise its rights under this <u>Section 4.25</u>, the Manager shall give each ERISA Investor immediate written notice of said determination, and in such Writing shall advise each ERISA Investor of the number of Interests to be redeemed from said Investor, the effective date of such redemption and the Redemption Price to be paid to such Investor. Upon the effective date of such redemption, the Manager shall cause the Company to tender to each ERISA Investor the Redemption Price applicable to said Investor as directed by said Investor. No Surrender Fee or Processing Fee shall be assessed on a redemption occurring pursuant to this Section.

**<u>Section 4.26</u> <u>Company Opinion to Redeem</u>.** If a Member's Interests are Transferred (the "**Involuntary Transferred Interests**") to a Person not then a Member due to said Member's death or by any court or other judicial authority, including, but not limited to, Transfers ordered in a Bankruptcy proceeding, divorce, or as a result of garnishment, attachment or execution, the Company has the option, exercisable in its sole and exclusive discretion, to redeem all, but not less than all, of the Involuntary Transferred Interests for the price and upon the terms set forth in this <u>Section 4.26</u>. Within thirty (30) Business Days after the date on which the Company actually receives written notice of the applicable event, the Company shall provide written notice of its exercise of its option to redeem to the Member, the court and the proposed assignee and/or the successor of the Member ("**Successor**") as applicable (the "**Option Notice**").

The redemption price for the Involuntary Transferred Interests shall be an amount equal to their Redemption Price less the Processing Fee *and* less all any and all loss, liability, damages, loss and expenses incurred by the Company as a result of or related to the Transfer. In the event the Company has an offset right under this <u>Section 4.26</u> and exercises the same, then the Company shall notify in Writing the Member, the court and/or Successor, as applicable, of the amount of offset, with reasonable detail and documentation regarding the same, and shall provide the amount of the redemption price as reduced by any offset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.26.1 The closing of the redemption of the Involuntary Transferred Interests pursuant to this <u>Section 4.26.1</u> may occur electronically or at the principal place of business of the Company and shall take place within a reasonable amount of time after the Option Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.26.2 Notwithstanding anything else contained herein to the contrary, the Successor and/or the applicable Member shall merely be as assignee (and not a Member) from and after the date of the applicable event causing the Transfer, and such Successor and/or the applicable Member shall thereinafter have no right to vote or exercise rights of a Member hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.26.3 In the event that any Successor and/or the applicable Member ("**Defaulting Person**") shall be required to sell its Involuntary Transfer Interests pursuant to this <u>Section 4.26.3</u>, and in the further event that Defaulting Person is unable to, or for any reason does not, deliver such Involuntary Transfer Interests and necessary documentation to the Company and the Manager in accordance with the applicable provisions of this Agreement, then the Company may deposit the applicable redemption price for such Involuntary Transfer Interests, by certified check with the Company's primary bank, as agent or trustee, or in escrow, for such Defaulting Person, to be held by the bank until withdrawn by such Defaulting Person. Upon the deposit of the redemption price as provided for herein the Involuntary Transfer Interests of such Defaulting Person to be redeemed pursuant to <u>Section 4.26</u> of this Agreement shall at such time be deemed to have been redeemed by and conveyed to the Company, and such Defaulting Person shall have no further rights thereto, and the Company shall record the redemption in its books and records. The Manager shall so notify in writing the Defaulting Person but lack of such notice shall have no impact on the redemption.

**<u>Section 4.27</u> <u>For Cause Redemption</u>.** The Manager shall have the right to redeem (i.e., purchase) the interest of any Member in the Company for "Cause" of "Good Reason." The term "Cause" means: (i) A breach by the Member of any of the terms, conditions or obligations of the Member contained in this Operating Agreement, including, without limitation, transferring or obtaining (voluntarily, by operation of law or otherwise) an Interest in the Company without the Manager's written consent; (ii) Fraud, dishonesty or willful and serious misconduct by the Member with the respect to the business or affairs of the Company; (iii) Any misrepresentation by a Member in any subscription for Interests in the Company (including of any representation made in the Operating Agreement); and (iv) Ongoing and persistent interference with the orderly conduct of the Company's affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.27.1 The term "Good Reason" means: (i) Fraud, dishonesty or serious misconduct by the Member, other than with respect to the business or affairs of the Company, which involves an act or omission that is likely to adversely affect the business, affairs or reputation of the Company; (ii) The Member's continued ownership of an Interest, in the sole discretion of the Manager, that could interfere with the ownership or operation of any material Company asset or activity, including, without limitation, rendering the Company ineligible for any license, permit, registration, status, concession, opportunity or benefit; (iii) The Member (1) becoming subject to any of the "bad actor" disqualifications within the meaning of Rule 506(d) under the Securities Act, (2) being prohibited from owning an interest in or otherwise affiliated with the Company pursuant to any applicable law, rule, regulation, order or judgement, or (3) the Member otherwise becoming a disreputable person; except that, the foregoing (1) through (3) shall be considered "Cause" if the acts or circumstances giving rise to any of them fall within the definition of "Cause" described above. The redemption of a Member for Cause will not be considered a remedy for breach and will not limit or in any way diminish any right or remedy the Company may have on account of an act or omission constituting Cause. The Interests of all transferees, successors or assignees of a Member (including a permitted transferee) will also be subject to

redemption if any transferee, successor or assignee has engaged in any of the acts described in the foregoing definitions of Cause and Good Reason, or if the assigning or another predecessor Member of the permitted transferee (whether or not a Member) engaged in any of such acts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.27.2 The redemption price of a Member's interest in the Company will be determined with reference to the fair market value of the Company's assets, which will be determined by the Manager in a commercially reasonable manner. In the case of a redemption for Cause, (i) the redemption price will not exceed fifty percent (50%) of the Member's unreturned capital and (ii) the redemption price will be reduced by all of the Company's reasonable costs and expenses associated with the redemption, including without limitation attorney's and other professional fees, filing fees and transfer taxes. In the case of a redemption for Good Reason, the redemption price shall be the fair market value reduced by fifty percent (50%) of such expenses and shall be paid in cash. In the case of a redemption for Cause, the Redemption Price shall be paid in the form of an unsecured promissory note, without interest, payable to the redeemed Member over a three-year term.

**ARTICLE 5**

**MANAGEMENT OF THE COMPANY**

**<u>Section 5.1</u> <u>Manager</u>.** Subject to the provisions of the Act and any limitations in the Certificate of Formation and this Agreement as to action required to be authorized or approved by the Members, the business and affairs of the Company shall be managed and all its powers shall be exercised by or under the direction 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;5.1.1 Without prejudice to such general powers, but subject to the same limitations, it is hereby expressly declared that the Manager shall have the following powers:

&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) to conduct, manage and control the business and affairs of the Company and to make such rules and regulations therefor not inconsistent with law or with the Certificate of Formation or with this Agreement, as the Manager shall deem to be in the best interests of the Company;

&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) to appoint and remove at pleasure the officers, agents, and employees of the Company, prescribe their duties and fix their compensation;

&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) to borrow money and incur indebtedness for the purposes of the Company and to cause to be executed and delivered therefor, in the Company's name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations or other evidences of debt and securities therefor;

&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) to designate an advisory board and/or other committees, to serve at the pleasure of the Manager, and to prescribe the manner in which proceedings of such committees shall be conducted;

&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) to acquire real and personal property, arrange financing and enter into contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) to make all other arrangements and do all things which are necessary or convenient to the conduct, promotion, or attainment of the business, purposes, or activities of the Company; 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;(G) to buy, sell, lease, encumber, mortgage and otherwise dispose of substantially all the assets of the Company.

**<u>Section 5.2</u> <u>Agency Authority of Manager</u>.** The Manager is authorized to sign checks, contracts and obligations on behalf of the Company.

**<u>Section 5.3</u> <u>Limited Liability</u>.** Except as expressly set forth in this Agreement or required by law, no Manager shall be personally liable for any debt, obligation, or liability of the Company, whether arising in contract, tort or otherwise, solely by reason of being a Manager of the Company. This section shall not be construed to insulate a Manager from liability in the event its actions are intentional, willful, or fraudulent.

**<u>Section 5.4</u> <u>Standards of Conduct; Modification of Duties</u>.** Notwithstanding any other provision of this Agreement or other applicable provision of law whenever in this Agreement or any other agreement contemplated hereby or otherwise, the Manager, in its capacity as the Manager of Company, is permitted to or required to make a decision, the Manager shall be entitled to consider only such interests and factors as it desires, including its own interests, and shall have no fiduciary duty or obligation other than the duties of good faith and fair dealing to give any consideration to any interest of or factors affecting the Company or the Members, and shall not be subject to any other or different standards imposed by this Agreement, any other agreement contemplated hereby, under any other law, rule or regulation other than the Act. Whenever in this Agreement or any other agreement contemplated hereby or otherwise the Manager is permitted to or required to make a decision in "good faith" then for purposes of this Agreement, the Manager, shall be conclusively presumed to be acting in good faith if such Person or Persons subjectively believe(s) that the decision made or not made is in the best interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.1 Whenever the Manger makes a determination or takes or declines to take any other action in its individual capacity as opposed to its capacity as the Manager of the Company, whether under this Agreement or any other agreement, contemplated hereby or otherwise, then the Manager is entitled to the fullest extent permitted by law, to make such determination or to take or decline to take such other action free of any duty (including any fiduciary duty) or obligation (other than the duties of good faith and fair dealing to the Company) to any Member or any other Person bound by this Agreement, and the Manager shall not, to the fullest extent permitted by law, be required to act pursuant to any other standard imposed by this Agreement, any other agreement contemplated hereby or any other law, rule or regulation or at equity other than the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.2 Except as expressly set forth in this Agreement, to the fullest extent permitted by law, the Manager shall not have any duties or liabilities other than the duties of good faith and fair dealing to the Company, any Member or any other Person bound by this Agreement or any creditor of the Company, and the provisions of this Agreement, to the extent that they restrict or otherwise modify or eliminate the duties and liabilities, including fiduciary

duties, of the Manager otherwise existing at law or in equity, are agreed by the Members to replace such other duties and liabilities 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;5.4.3 The Members expressly acknowledge that the Manager is under no obligation to consider the separate interests of the Members (including, without limitation, the tax consequences to Members) in deciding whether to cause the Company to take (or decline to take) any actions, and that the Manager shall not be liable for monetary damages for losses sustained, liabilities incurred or benefits not derived by Members in connection with such decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.4 The Manager may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.5 The Manager may consult with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisers selected by them, and any act taken or omitted to be taken in reliance upon the advice or opinion of such Persons as to matters that the Manager reasonably believes to be within such Person's professional or except competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such advice or opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.6 The Manager shall have the right, in respect of any of their powers or obligations hereunder, to act through any of their duly authorized officers or any duly appointed attorney or attorneys-in-fact. Each such attorney shall, to the extent provided by the Manager in the power of attorney, have full power and authority to do and perform each and every act and duty that is permitted or required to be done by the Manager hereunder.

**<u>Section 5.5</u> <u>Number and Qualifications of Manager</u>.** There shall be one (1) authorized Manager, however, subject to the provisions of the Act and any limitations in the Certificate of Formation, the authorized number of managers may be changed from time to time upon the affirmative vote of Class B Members holding not less than a majority of each of the Class B votes. The initial Manager is XIV-I MANAGER, LLC. The Manager may, but need not, be a Member of the Company.

**<u>Section 5.6</u>** Election and Removal 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;5.6.1 The Manager shall be elected by the vote of Members holding not less than a majority of the Class B Interests at any meeting of the Members, or by written consent of Members holding not less than a majority of the Class B Interests pursuant to <u>Section 4.11</u> of this Agreement. Except as otherwise provided by the Act or the Certificate of Formation, each Manager, including a Manager elected to fill a vacancy, shall hold office until his or her death, Bankruptcy, mental incompetence, resignation, or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.2 Any Manager may be removed, with or without cause, by the votes of Members holding not less than a majority of the Class B Interests represented and voting at a duly held meeting of the Members at which a quorum is present (which Members voting

affirmatively also constitute at lease a majority of the required quorum), or by written consent of a majority of the Class B Interests pursuant to <u>Section 4.10</u> of 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;5.6.3 Any Manager may be removed for Cause upon the vote of a majority of the Percentage Interests of the Class A Members. For purposes of removal of a Manager, "for Cause" shall mean any of 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;(A) Breach or default by a Manager of any material term or obligation under this Operating Agreement that is not waived in writing by a majority of each of the Class A and Class B Members or cured within ten (10) days of notice of the alleged breach or default;

&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 willful and continued failure of a Manager to substantially perform that party's customary duties (other than due to such party's death or incapacity due to physical or mental illness), the reckless disregard of the performance of such party's duties, or the willful engaging by the Manager in gross misconduct, which is materially injurious to the Company, monetarily 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;(C) The inability of a Manager (if an individual) to perform his duties hereunder by reason of illness, or physical or mental incapacity of any kind, for a period of more than sixty (60) days. If disputed by the Manager, the Manager shall submit to a medical examination by a qualified medical doctor selected by the Company to determine the Manager's ability to perform his duties;

&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) A felony conviction or conviction of any felony offense involving moral turpitude, whether as a result of a guilty plea, or a plea of nolo contendere, a verdict of guilty; 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;(E) Making materially false, misleading, or inaccurate statements in connection with the rendering of services as a Manager that results in material financial damage to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.4 The proposed removal of any Manager other than based upon <u>Section 5.6.3 D</u> shall first be subject to written notice setting forth the alleged basis for the removal. Upon receipt of written notice, the recipient Manager shall have up to thirty (30) days to cure the alleged basis for removal. Any dispute regarding whether the alleged basis has been cured shall be subject to the dispute resolution provisions of <u>Section 19.8</u>. For purposes of <u>Section 5.6</u>, "material" means having a dollar value in excess of Seventy-Five Thousand Dollars ($75,000.00).

**<u>Section 5.7</u> <u>Manager</u>.** The name and address of the Manager, to hold office from and after the date of this Agreement until one or more successors are elected and qualified, is as set forth in ***Exhibit "3"*** attached hereto and incorporated herein by reference. Such Manager is appointed by the Class B Members signing this Operating Agreement.

**<u>Section 5.8</u> <u>Manager May Engage in Other Activities</u>.** The Manager of the Company, either individually or with others, shall have the right to participate in other business ventures of every kind, whether or not such other business ventures compete with the Company. No Manager, acting in the capacity of a Manager, shall be obligated to offer to the Company, the Members, or to any other Manager any opportunity to participate in any such other business venture. Neither

the Company nor any Member shall have any right to any income or profit derived from any such other business venture of a Manager.

**<u>Section 5.9</u> <u>Transactions of Manager with the Company</u>.** The Manager may lend money to and transact other business with the Company. Subject to other applicable law, such Manager has the same rights and obligations with respect thereto as a Person who is not a Member or Manager.

**<u>Section 5.10</u> <u>Compensation of Manager</u>.** As more particularly set forth in <u>subsection 5.10.1</u> to <u>5.10.6</u> below, the Manager, if it performs the duties in the connection therewith, shall be entitled to receive compensation as follows: organizational fee, property management fee, partnership management fee, construction management fee, asset management fee, which fees may be paid to be an Affiliate.

&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 Reimbursements. The Manager shall be reimbursed by the Company for all expenses, fees, or costs incurred on behalf of the Company, including, without limitation, organizational expenses, legal fees, filing fees, accounting fees, out of pocket costs of reporting to any governmental agencies, insurance premiums, travel, costs of evaluating investments and other costs and expenses.

&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 Property Management Fee. In the event the Manager or an affiliate shall provide property management services for any real estate owned or managed by the Company ("**Managed Real Estate**"), then the Company shall pay to the Manager or the affiliate a monthly fee ("**Property Management Fee**") equal to the greater of four percent (4%) of the monthly gross rental payable under the terms of the applicable leases for such Managed Real Estate or market rate, provided, however, that the Manager (or the affiliate) may be paid a greater amount if the same is reasonable and not in excess of the customary real estate property management fee which would be paid to an independent third party in connection with the management of such real estate. The Property Management Fee shall be payable in the ordinary course consistent with industry standards within the geographic community in which the Managed Real Estate is located.

&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 Construction Management Fee. In the event the Manager shall provide general contractor and/or construction management services for any Managed Real Estate, then the Company shall pay to the Manager a fee ("**Construction Fee**") equal to the greater of five percent (5%) of the budgeted construction and improvements costs for each such construction project or market rate. The Manager shall provide the Company with a written budget for each such project with reasonable and customary itemization of costs. The Construction Fee shall be paid within thirty (30) days of the completion of the applicable construction project.

&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 Asset Management Fee. The Company shall pay to the Manager an annual asset management fee equal to one and 50/100 percent (1.50%) of the then Gross Assets Under Management (the "**Asset Management Fee**"), payable monthly. For purposes of calculating the Management Fee, Gross Assets Under Management shall be measured as of the last Business Day of each month, and the Management Fee for that month shall be paid on the first Business Day of the subsequent month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10.5 Cost Sharing. The Company shall pay to the Manager a reasonable monthly amount for its utilization of the Manager's office, personnel and equipment, at the discretion 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;5.10.6 Commissions. The Manager, its affiliates or principals may receive reasonable commissions upon the Company's purchase or sale of real estate properties.

**<u>Section 5.11</u>** Reserved

**<u>Section 5.12</u> <u>Insufficient Funds</u>.** In the Event there are insufficient Company Funds to pay the Manager any Management Fee then due, the Manager in its sole discretion may cause such Management Fee to be accrued and paid at such time(s) as the Company has sufficient funds or upon the liquidation of the Company. Any unpaid Management Fee shall be an accrued liability of the Company.

**<u>Section 5.13</u> <u>Placement Fee</u>.** The Manager may, in its sole discretion, pay up to five percent (5.0%) of Gross Proceeds to advisors (the "Placement Fees"), including licensed attorneys in connection with his/her representation of an investing client or the Company, a licensed Investment Advisor under the Investment Advisor Act of 1940, as amended, or a licensed securities broker or agent holding licenses from FINRA and the Securities and Exchange Commission.

**<u>Section 5.14</u> <u>Representative</u>.** For taxable years beginning after February 14, 2022 (or any earlier year, if the Manager, so elects), the Manager shall designate a Company representative (in such capacity, the "Company Representative") to act under Section 6223 of the Code as amended by the Bipartisan Budget Act of 2015 (or any successor thereto) (the "2015 Act") and in any similar capacity under state, local or non-U.S. law, as applicable. The Company Representative may be removed and replaced by the Manager at any time in its sole discretion. Notwithstanding anything else to the contrary in this Agreement, the Company Representative shall apply the provisions of subchapter C of Chapter 63 of the Code, as amended by the 2015 Act (or any successor rules thereto), or similar provisions of state, local or non-U.S. tax law, with respect to any audit, imputed underpayment, other adjustment, or any such decision or action by the Internal Revenue Service (or other tax authority) with respect to the Company or the Members for such taxable years, in the manner determined by the Company Representative with the approval 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;5.14.1 The Members shall have no claim against the Company or Company Representative for any form of damages or liability as a result of actions taken or remedies pursued by or on behalf of the Company in order to comply with the rules under subchapter C of Chapter 63 of the Code, as amended by the 2015 Act (or any successor rules thereto) or similar provisions of state, local or non-U.S. 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;5.14.2 The Company Representatives shall keep the Members informed of any inquiries, audits, other proceedings, or tax deficiencies assessed or proposed to be assessed (of which the Company Representative is actually aware) by any taxing authority against the Company or the Members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.3 So long as the Company satisfies the provisions of Sections 6221(b)(1)(B) through (D) of the Code, the Company Representative, with the approval of the Manager, may cause the Company to make the election set forth in Section 6221(b)(1) of the Code so that the provisions of Subchapter C of Chapter 63 of the Code shall not apply to the Company. If such elections is made the Company Representative shall provide the proper notice to each Member in accordance with Section 6221(b)(1)(E).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.4 Provided the election described in Section 5.14.3 above is not in effect, in the case of any adjustment by the IRS in the amount of any item of income, gain, loss, deduction, or credit of the Company or any Member's distributive share thereof ("**IRS Adjustment**"), the Company Representative shall respond to such IRS Adjustment in accordance with either <u>Section 5.14.5</u> or <u>Section 5.14.6</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;5.14.5 In accordance with section 6225 of the Code as enacted under the 2015 Act, the Company Representative may cause the Company to pay an imputed underpayment as calculated under section 6225(b) of the Code with respect to the IRS Adjustment, including interest and penalties ("**Imputed Tax Underpayment**") in the Adjustment Year. The Company Representative shall use commercially reasonable efforts to pursue available procedures to reduce any Imputed Tax Underpayment on account of any Member's tax status. Each Member agrees to amend its U.S. federal income tax return(s) to include (or reduce) its allocable share of the Company's income (or losses) resulting from an IRS Adjustment and pay any tax due with such return as required under Section 6225(c)(2) of the Code, even if an Imputed Tax Underpayment liability of the Company or IRS Adjustment occurs after the Member's withdrawal from the Company. The Company Representative may elect at his/its sole discretion to follow and implement the Centralized Partnership Audit Regulations and thereby address any tax issues at the Company level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.6 Alternatively, the Company Representative may elect under section 6226 of the Code as implemented under the 2015 Act to cause the Company to issue adjusted Internal Revenue Services Schedules "K-1" (or such other form as applicable) reflecting a Member's shares of any IRS Adjustment for the Adjustment 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;5.14.7 Each Member does hereby agree to indemnify and hold harmless the Company, Manager, and Company Representative from and against any liability with respect to the Member's proportionate share of any Imputed Tax Underpayment or other IRS Adjustment resulting in liability of the Company, regardless of whether such Member is a Member in the Company in an Adjustment Year, with such proportionate share as reasonably determined by the Manager, including the Manager's reasonable discretion to consider each Member's interest in the Company in the Reviewed Year and a Member's timely provision of information necessary to reduce the amount of Imputed Tax Underpayment set forth in section 6225(c) of the Code. This obligation shall survive a Member's ceasing to be a Member of the Company and/or the termination, dissolution, liquidation and winding up of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.8 Each Member does hereby agree to indemnify and hold harmless the Company, the Manager and Company Representative from and against any liability with respect to the Member's proportionate share of any item of income, gain, loss, deduction, or credit of the Company or any member's distributive share thereof reported on an adjusted Internal Revenue

Service Scheduled K-1 received by the Company with respect to any entity in which the Company holds an ownership interest and which results in liability of the Company, regardless of whether such Member is a Member in the Company in an Adjustment Year, with such proportionate share as reasonably determined by the Manager, including the Manager's reasonable discretion to consider each Member's interest in the Company in the Reviewed Year and a Member's timely provision of information necessary to reduce the amount of Imputed Tax Underpayment set forth in section 6225(c) of the Code. This obligation shall survive a Member's ceasing to be a Member of the Company and/or the termination, dissolution, liquidation and winding up of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14.9 "Adjustment Year" means: (1) in the cease of an adjustment pursuant to the decision of a court, the Company's taxable year in which the decision becomes final; (2) in the case of an administrative adjustment request, the Company's taxable year in which the administrative adjustment is made; or (3) in any other case, the Company's taxable year in which the notice of final Company adjustment is mailed.

**ARTICLE 6**

**MEETINGS OF MANAGER**

**<u>Section 6.1</u> <u>Place of Meetings</u>.** Meetings of the Manager shall be held at any place within or without the State of Georgia that has been designated from time to time by the Manager.

**<u>Section 6.2</u> <u>Action by Manager Without a Meeting</u>.** Any action required or permitted to be taken by the Manager may be taken without a meeting by the Manager.

**ARTICLE 7**

**OFFICERS**

**<u>Section 7.1</u> <u>General</u>.** Subject to the provisions of the Act and the Certificate of Formation, the Manager may determine from time to time to appoint one or more individuals as officers of the Company. Every officer must be at least 18 years of age. An officer need not be a Member or Manager of the Company, and any number of offices may be held by the same person. The Manager shall determine the nature and extent of the duties to be performed by any officer, which shall be reduced to writing. Officers may include a President, a Secretary, a Treasurer, one or more Vice-presidents and such other officers as may be designated from time to time by the Manager.

**<u>Section 7.2</u> <u>Appointment and Removal</u>.** The officers shall be appointed by the Manager. Each officer, including an officer elected to fill a vacancy, shall hold office at the pleasure of the Manager until his or her successor is elected, except as otherwise provided by the Act. Any officer may be removed, with or without cause, by the Manager.

**ARTICLE 8**

**CAPITAL CONTRIBUTIONS** 

**<u>Section 8.1</u>** Initial Capital Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1 Each Member shall make or has made the Capital Contribution to the Company in cash as set forth in ***Exhibit "1"***. The Manager shall decide in its sole discretion the date upon which the subscriptions for classes of Interests shall be closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2 Upon the date of admission of new Member in accordance with Section 11.2, each new Member shall make a Capital Contribution to the Company in such amount and in such form as the Manager shall accept.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3 Upon receipt of each such Capital Contribution the Company shall credit each Member's Capital Account with the amount of such Member's Capital Contribution as shown in Exhibit "1", as amended from time to time.

**<u>Section 8.2</u> <u>Additional Capital Contributions</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;8.2.1 No Class A Member shall be obligated to contribute additional capital to the Company, whether pursuant to a Capital Call by the Manager or otherwise. No Class A Member shall be permitted or authorized to make any additional Capital Contributions without the prior approval of the Manager. Additional Capital Contributions may be necessary to accomplish the purposes and objectives of the Company. Additional Capital Contributions may be made by the Class A Members when determined necessary, from time to time, in the amounts and representing such Percentage Interest and within the time determined by the approval of the Manager. Such additional Capital Contributions shall be payable in proportion to each Class A Member's Percentage Interest. If all of the then current Class A Members are unable or unwilling to meet the demand for Additional Capital Contributions, the Class A Members acknowledge that new members may be added at the time additional capital is required on terms no more favorable than was offered to the existing Class A Members. The Class A Members acknowledge that their Membership Interests may change (including being diluted) from time to time as a result of adding new Members to obtain Additional Capital Contributions. In the event that one or more Class A Members is unable or unwilling to contribute Additional Capital, then the Manager(s) may amend this Agreement to admit new Members on terms no more favorable than was offered to the existing Members. However, this section is not for the benefit of any creditors of the Company. No creditor of the Company may obtain any right under this paragraph to make any claim that a Class A Member is obligated to contribute capital to the Company for the purpose of satisfying the Company's creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2 Existing Class A Members that make Additional Capital Contributions pursuant to a Capital Call shall receive a Capital Account credit for each such Additional Capital Contribution at the time and in the amount that such contribution is made and their relaged Percentage Interests, as reflected on ***Exhibit "1" and "2"***, shall be adjusted accordingly based upon the capital contributed. Existing Class A Members that do not make Additional Capital Contributions when asked by the Manager to do so hereby agree and acknowledge that their Percentage Interests may be diluted in proportion to the Additional Capital Contributions made by existing or newly admitted Members.

**<u>Section 8.3</u> <u>Withdrawal or Reduction of Capital Contributions</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.1 Except as expressly provided in this Agreement, no Member shall have the right to withdraw from the Company all or any part of his or its Capital Contribution until the earlier to occur of (i) seven (7) years from the dates of admission as a Member or (ii) the dissolution and winding up of the Company.

Without limiting the generality of subsection 8.3.1, no Member shall receive any part of his or its Capital Contribution whether upon the dissolution of the Company or otherwise until all liabilities of the Company, except liabilities to Members on account of their Capital Contributions, have been paid or there remains property in the Company sufficient to pay 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;8.3.2 A Member, irrespective of the nature of his or its Capital Contribution, shall only have the right to demand and receive cash in return for his or its Capital Contribution.

**<u>Section 8.4</u> <u>No Interest Payable on Capital Contributions</u>.** No interest shall be payable on or with respect to the Capital Contributions or Capital Accounts of Members.

**<u>Section 8.5</u> <u>Capital Accounts</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;8.5.1 A single Capital Account shall be maintained for each Members (regardless of the class of Interests owned by such Member and regardless of the time or manner in which such Interests were acquired) in accordance with the capital accounting rules of Section 704(b) of the Code, and the regulations thereunder (including without limitation Section 1.704-1(b)(2)(iv) of the Income Tax Regulations). In general, under such rules, a Member's Capital Account shall be:

&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) increased by (i) the amount of money contributed by the Member to the Company (including the amount of any Company liabilities that are assumed by such Member other than in connection with distribution of Company property), (ii) the fair market value of property contributed by the Member to the Company (net or liabilities secured by such contributed property that under Section 752 of the Code the Company is considered to assume or take subject to), and (iii) allocations to the Member of Company income and gain (or item thereof), including income and gain exempt from tax; 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) decreased by (i) the amount of money distributed to the Member by the Company (including the amount of such Member's individual liabilities that are assumed by the Company other than in connection with contribution of property to the Company), (ii) the fair market value of property distributed to the Member by the Company (net of liabilities secured by such distributed property that under Section 752 of the Code such Member is considered to assume or take subject to), (iii) allocations to the Member of expenditures of the Company not deductible in computing its taxable income and not properly chargeable to capital account, and (iv) allocations to the Member of Company loss and deductions (or item thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.2 Where Section 704(c) of the Code applies to Company property or where Company property is revalued pursuant to paragraph (b)(2)(iv)(t) of Section 1.704-1 of the Income Tax Regulations, each Member's Capital Account shall be adjusted in accordance with paragraph (b)(2)(iv)(g) of Section 1.704-1 of the Income Tax Regulations as to allocations to the Members of depreciation, depletion, amortization and gain or loss, as computed for book purposes with respect to such property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.3 When Company property is distributed in kind (whether in connection with liquidation and dissolution or otherwise), the Capital Accounts of the Members shall first be adjusted to reflect the manner in which the unrealized income, gain, loss and deduction inherent in such property (that has not been reflected in the Capital Account previously) would be allocated among the Members if there were a taxable disposition of such property for the fair market value of such property (taking into account Section 7701(g) of the Code) on the date of distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.4 The Members shall direct the Company's accountants to make all necessary adjustments in each Member's Capital Account as required by the capital accounting rules of Section 704(b) of the Code and the regulations thereunder.

**ARTICLE 9**

**ALLOCATION OF PROFITS AND LOSSES; TAX AND ACCOUNTING MATTERS**

**<u>Section 9.1</u> <u>Allocations</u>.** Each Member's distributive share of income, gain, loss, deduction, or credit (or items thereof) of the Company as shown on the annual federal income tax return prepared by the Company's accountants or as finally determined by the United States Internal Revenue Service or the courts, and as modified by the capital accounting rules of Section 704(b) of the Code and the Income Tax Regulations thereunder, as implemented by <u>Section 8.5</u> hereof, as applicable, shall be determined 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;9.1.1 Allocations. Except as otherwise provided in this <u>Section 9.1</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) items of income, gain, loss, deduction or credit (or items thereof) shall be allocated among the Members in proportion of their Percentage Interests as set forth in ***Exhibit "2"***, if any, except that items of loss or deduction allocated to any Member pursuant to this <u>Section 9.1</u> with respect to any taxable year shall not exceed the maximum amount of such items that can be so allocated without causing such Member to have a deficit balance in his or its Capital Account at the end of such year, computed in accordance with the rules of paragraph (b)(2)(ii)(d) of Section 1.704-1 of the Income Tax Regulations. Any such items of loss or deduction in excess of the limitation set forth in the preceding sentence shall be allocated as follows and in the following order of priority:

&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) first, to those Members who would not be subject to such limitation, in proportion to their Percentages Interests; 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;(2) second, any remaining amount to the Members in the manner required by the Code and Income Tax Regulations.

Subject to the provisions of <u>subsections 9.1.2-9.1.11</u>, inclusive, of this Agreement, the items specified in this <u>Section 9.1</u> shall be allocated to the Members as necessary to eliminate any deficit Capital Account balances.

&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 <u>Allocations With Respect to Property</u>. Solely for tax purposes, in determining each Member's allocable share of the taxable income or loss of the Company, depreciation, depletion, amortization and gain or loss with respect to any contributed property, or

with respect to revalued property where the Company's property is revalued pursuant to paragraph (b)(2)(iv)(f) of Section 1.704-1 of the Income Tax Regulations, shall be allocated to the Members in the manner (as to revaluations, in the same manner as) provided in Section 704(c) of the Code. The allocation shall take into account, to the full extent required or permitted by the Code, the difference between the adjusted basis to the property to the Member contributing it (or, with respect to property which has been revalued, the adjusted basis of the property to the Company) and the fair market value of the property determined by the Members at the time of its contribution or revaluation, as the case may be.

&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 <u>Minimum Gain Chargeback</u>. Notwithstanding anything to the contrary in this Section 9.1, if there is a net decrease in Company Minimum Gain or Company Nonrecourse Debt Minimum Gain (as such terms are defined in Sections 1.704-2(b) and 1.704-2(i)(2) of the Income Tax Regulations, but substituting the term "Company" for the term "Partnership" as the context requires) during a Company taxable year, then each Member shall be allocated items of Company income and gain for such year (and, if necessary, for subsequent years) in the manner provided in Section 1.704-2 of the Income Tax Regulations. This provision is intended to be a "minimum gain chargeback" within the meaning of Sections 1.704-2(f) and 1.704-2(i)(4) of the Income Tax Regulations and shall be interpreted and implemented as therein provided.

&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 <u>Qualified Income Offset</u>. Subject to the provisions of <u>subsection 9.1.3,</u> but otherwise notwithstanding anything to the contrary in this <u>Section 9.1</u>, if any Member's Capital Account has a deficit balance in excess of such Member's obligation to restore his or its Capital Account balance, computed in accordance with the rules of paragraph (b)(2)(ii)(d) of Section 1.704-1 of the Income Tax Regulations, then sufficient amounts of income and gain (consisting of a pro rata portion of each item of Company income, including gross income, and gain for such year) shall be allocated to such Member in an amount and manner sufficient to eliminate such deficit as quickly as possible. This provision is intended to be a "qualified income offset" within the meaning of Section 1.704-1(b)(2)(ii)(d) of the Income Tax Regulations and shall be interpreted and implemented as therein provided.

&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 Depreciation Recapture. Subject to the provisions of Section 704(c) of the Code and <u>subsections 9.1.2 – 9.1.4</u>, inclusive, of this Agreement, gain recognized (or deemed recognized under the provisions hereof) upon the sale or other disposition of Company property, which is subject to depreciation recapture, shall be allocated to the Member who was entitled to deduct such depreciation.

&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 <u>Loans</u>. If and to the extent any Member is deemed to recognize income as a result of any loans pursuant to the rules of Sections 1272, 1273, 1274, 7872 or 482 of the Code, or any similar provision now or hereafter in effect, any corresponding resulting deduction of the Company shall be allocated to the Member who is charged with the income. Subject to the provisions of Section 704(c) of the Code and <u>subsections 9.1.2 – 9.1.4</u>, inclusive, of this Agreement, if and to the extent the Company is deemed to recognize income as a result of any loans pursuant to the rules of Sections 1272, 1273, 1274, 7872 or 482 of the Code, or any similar provision now or hereafter in effect, such income shall be allocated to the Member who is entitled to any corresponding resulting deduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.7 <u>Tax Credits</u>. Tax credits shall generally be allocated according to Section 1.704-1(b)(4)(ii) of the Income Tax Regulations or as otherwise provided by law. Investment tax credits with respect to any property shall be allocated to the Members pro rata in accordance with the manner in which Company profits are allocated to the Members under <u>subsection 9.1.1</u> hereof, as of the time such property is placed in service. Recapture of any investment tax credit required by Section 47 of the Code shall be allocated to the Members in the same proportion in which such investment tax credit was allocated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.8 <u>Chance of Pro Rata Interests</u>. Except as provided in <u>subsection 9.1.6</u> and <u>subsection 9.1.7</u> hereof or as otherwise required by law, if the proportionate interests of the Members of the Company are changed during any taxable year, all items to be allocated to the Members for such entire taxable year shall be prorated on the basis of the portion of such taxable year which precedes each such change and the portion of such taxable year on and after each such change according to the number of days in each such portion, and the items so allocated for each such portion shall be allocated to the Members in the manner in which such items are allocated as provided in <u>section 9.1.1</u> during each such portion of the taxable year in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.9 Effect of Special Allocations on Subsequent Allocations. Any special allocation of income or gain pursuant to <u>subsection 9.1.3</u> or <u>subsection 9.1.4</u> hereof shall be taken into account in computing subsequent allocations of income and gain pursuant to this <u>Section 9.1</u> so that the net amount of all such allocations to each Member shall, to the extent possible, be equal to the net amount that would have been allocated to each such Member pursuant to the provisions of this <u>Section 9.1</u> if such special allocations of income or gain under <u>subsection 9.1.3</u> or <u>subsection 9.1.4</u> hereof had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.10 Nonrecourse and Recourse Debt. Items of deduction and loss attributable to Member nonrecourse debt within the meaning of Section 1.7042(b)(4) of the Income Tax Regulations shall be allocated to the Members bearing the economic risk of loss with respect to such debt in accordance with Section 1704-2(i)(1) of the Income Tax Regulations. Items of deduction and loss attributable to recourse liabilities of the Company, within the meanings of Section 1.752-2 of the Income Tax Regulations, shall be allocated among the Members in accordance with the ratio in which the Members share the economic risk of loss for such liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.11 State and Local Items. Items of income, gain, loss, deduction, credit and tax preference for state and local income tax purposes shall be allocated to and among the Members in a manner consistent with the allocation of such items for federal income tax purposes in accordance with the foregoing provisions of this <u>Section 9.1</u>.

**<u>Section 9.2</u> <u>Accounting Matters</u>.** The Manager shall cause to maintain complete books and records accurately reflecting the accounts, business and transactions of the Company on a calendar-year basis and using such cash, accrual, or hybrid method of accounting as in the judgement of the Manager, as the case may be, is most appropriate; provided, however, that books and records with respect to the Company's Capital Accounts and allocations of income, gain, loss, deduction or credit (or item thereof) shall be kept under U.S. federal income tax accounting principles as applied to partnerships.

**<u>Section 9.3</u> <u>Tax Status and Returns</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;9.3.1 Any provision hereof to the contrary notwithstanding, solely for United States federal income tax purposes, each of the Members hereby recognizes that the Company may be subject to the provisions of Subchapter K of Chapter 1 of Subtitle A of the Code; provided, however, the filing of U.S. Partnership Returns of Income shall not be construed to extend the purposes of the Company or expand the obligations or liabilities of the 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;9.3.2 The Manager shall prepare or cause to be prepared all tax returns and statements, if any, that must be filed on behalf of the Company with any taxing authority and shall make timely filing thereof. The Manager shall exercise commercially reasonable efforts, to prepare or cause to be prepared and delivered to each Member within ninety (90) days after the end of each calendar year a report setting forth in reasonable detail the information with respect to the Company during such calendar year reasonably required to enable each Member to prepare his or its federal, state, and local income tax returns in accordance with applicable law then prevailing. Nonetheless, neither the Manager nor the Company shall be liable to any Member for failing to complete and deliver such tax information within said ninety (90) days and each Member acknowledges that they may have to file for an extension of time to file their personal tax returns.

**ARTICLE 10** 

**DISTRIBUTIONS** 

**<u>Section 10.1</u> <u>Distributions of Distributable Cash</u>.** Distributions of Distributable Cash, if any, shall be distributed quarterly, within forty-five (45) days after the end of each calendar quarter. All distributions of Distributable Cash, if any, shall be distributed as follows: (i) eighty-five percent (85%) to the Class A Interests issued and outstanding, pro rata, and the balance to the Class B Members, pro rata. Notwithstanding the foregoing, the Manager at its discretion may delay or defer any distributions.

**<u>Section 10.2</u> <u>Form of Distributions</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;10.2.1 No Member, regardless of the nature of the Member's Capital Contribution, has any right to demand and receive any distribution from the Company in any from other than money in the form of US currency. No Member may be compelled to accept from the Company a distribution of any asset in kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2 Without limiting the generality of <u>subsection 10.2.1</u>, the Manager may, with the consent of the Member receiving the distribution and other Members holding not less than a majority of the Percentage Interests of all classes voting together as single class, distribute specific property or assets of the Company to one or more Members.

**<u>Section 10.3</u> <u>Restriction on Distributions</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;10.3.1 No distribution shall be made if, after giving effect to the distribution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Company would not be able to pay its debts as they become due in the usual course of business; 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;(B) The Company's total assets would be less than the sum of its total liabilities plus, unless this Agreement provides otherwise, the amount that would be needed, if the Company were to be dissolved at the time of the distribution, to satisfy the preferential rights of other Members, if any, upon dissolution that are superior to the rights of the Member receiving the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2 The Manager may base a determination that a distribution is not prohibited on any of 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;(A) financial statements prepared on the basis of GAAP accounting practices and principles;

&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) A fair valuation; 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;(C) Any other method that is reasonable in the circumstances.

The effect of a distribution is to be measured as of the date the distribution is authorized if the payment is to occur within one hundred twenty (120) days after the date of authorization, or the date payment is made if it is to occur more than one hundred twenty (120) days after the date of authorization.

**<u>Section 10.4</u> <u>Return of Distributions</u>.** Members and Assignees who receive distributions made in violation of the Act or this Agreement shall return such distributions to the Company. Except for those distributions made in violation of the Act or this Agreement, no Member or Assignee shall be obligated to return any distribution to the Company or pay the amount of any distribution for the account of the Company or to any creditor of the Company. The amount of any distribution returned to the Company by a Member or Assignee or paid by a Member or Assignee for the account of the Company or to a creditor of the Company shall be added to the account or accounts from which it was subtracted when it was distributed to the Member or Assignee.

**<u>Section 10.5</u> <u>Withholding from Distributions</u>.** To the extent that the Company is required by law to withhold or to make tax or other payments on behalf of or with respect to any Member, the Company may withhold such amounts from any distribution and make such payments as so required. For purposes of this Agreement, any such payments or withholdings shall be treated as a distribution to the Member on behalf of whom the withholding or payment was made.

**<u>Section 10.6</u> <u>745 Election</u>.** In the event of a distribution of property to a Member, the death of an individual Member or a transfer of any interest in the Company permitted under the Act or this Agreement, the Company may, in the discretion of the Manager upon the written request of the transferor or transferee, file a timely election under Section 754 of the Code and the Income Tax Regulations thereunder to adjust the basis of the Company's assets under Section 734(b) or 743(b) of the Code and a corresponding election under the applicable provisions of state and local law, and the person making such request shall pa all costs incurred by the Company in connection therewith, including reasonable attorney's and accounts' fees.

**<u>Section 10.7</u>** Minimum Tax Distribution. Without the generality of **<u>Section 10.1 or Section 10.2</u>** if and to the extent that the Company is earning income which will result in the Members being subject to income tax on their distributive share of the Company's income, minimum distributions shall be made to the Members in such amounts and at such times (but in no event later than May 31 each year) as shall be sufficient to enable the Members to meet United States income tax liability arising or incurred as a result of their participation in the Company. For the purposes of such distributions, it shall be assumed that the Members are taxable at combined U.S. federal individual, state and local rates of forty percent (40%). Any such distribution shall be made on a nondiscriminatory basis to all Members pro rata in accordance with their respective Percentage Interests. It is specifically recognized that in making a forty percent (40%) assumption regarding tax distributions, some Members may receive a distribution that is in excess of their actual tax liabilities, and some Members may receive a distribution that is less. If the total distributions that otherwise would be distributed with respect to a year to each Member under this Agreement, without regard to this Section 10.7 are sufficient to satisfy the minimum amounts of distributions required to be paid to each Member under this Section 10.7 then no Tax Distributions will be paid for such year, and distributions for such year will be payable pursuant to the other provisions of this Agreement. Furthermore, no Tax Distributions are to be paid in connection with the dissolution and liquidation of the Company.

**ARTICLE 11**

**TRANSFER OF INTERESTS; ADMISSION OF MEMBERS; OPTION TO PURCHASE INTEREST OF DECEASED OR DISSOLVED MEMBER; RIGHT OF FIRST REFUSAL**

**<u>Section 11.1</u> <u>Transfer of Interests</u>.** Interests may be transferred, sold, conveyed or assigned by Members (i) after nine (9) months from the date of purchase, and (ii) provided that any such transfer, sale or assignment is exempt from any applicable registration requirements of federal and state law and is also in compliance with all other applicable federal and state laws and regulations. The Company may require an opinion of legal counsel satisfactory to the Company in connection, with and as a pre-condition for, any transfer, sale or assignment.

**<u>Section 11.2</u> <u>Admission of New Members</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;11.2.1 No Person shall be admitted as a Member of the Company is assignment or sale of a Member's Interest to a person not already a Member unless (i) the Manager shall have voted to approve the admission of such Person as a new 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;11.2.2 No person shall be admitted to the Company as a new Class A Member without contributing capital and without the approval of the Manager and in compliance with <u>Section 8.2.1</u>. No person shall be admitted to the Company as a New Class B Member without the approval of the Manager and in compliance with <u>Section 8.1.2</u>. The Company shall establish a Capital Account which shall be credited with the Capital Contribution in accordance with <u>subsection 8.1.2</u>. The Company shall establish a Capital Account which shall be credited with the Capital Contribution of any new Class B Member. Upon the admission of new Members, ***Exhibits "1" and "2"*** shall be adjusted to reflect the new Percentage Interests and Capital Accounts of the Members.

**ARTICLE 12**

**ACCOUNTING, RECORDS, REPORTING TO AND BY MEMBERS**

**<u>Section 12.1</u> <u>Books and Records</u>.** The books and records of the Company shall be kept, and the financial position and the results of its operations recorded, in accordance with the generally accepted accounting principles as established by the Financial Accounting Standards Board from time to time (GAAP). The books and records of the Company shall reflect all the Company's transactions and shall be appropriate and adequate for the Company's business. The Company shall maintain at its principal officer all of 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;12.1.1 A current list of the full name and last known business or residence address of each Member and Assignee set forth in alphabetical order, together with the Capital Contributions, Capital Accounts and Interest of each Members or Assignee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.2 A current list of the full name and business or residence address 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;12.1.3 A copy of the Certificate of Formation and any and all amendments thereto together with executed copies of any powers of attorney pursuant to which the Certificate of Formation or any amendments thereto have been executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.4 Copies of the Company's U.S. federal, state and local income tax or information returns and reports, if any, and any tax returns or reports filed by or on behalf of the Company in any other jurisdiction, for this six (6) most recent taxable years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.5 A copy of this Agreement and any and all amendments thereto together with executed copies of any powers of attorney pursuant to which this Agreement or any amendments thereto have been executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.6 Copies of the financial statements of the Company, if any, for the six (6) most recent fiscal years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.7 Copies of all Company contracts; 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;12.1.8 The accounting records of the company, including, without limitation, checks, cancelled checks, bank statements, ledgers, invoices, and similar records.

**<u>Section 12.2</u>** Delivery to Members and Inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.1 Upon the request of any Member for purposes reasonably related to the interest of that Person as a Member, the Manager shall promptly deliver to the requesting Member, at the expense of the Member, a copy of the information required to be maintained under <u>subsections 12.1.1</u>, <u>subsection 12.1.2</u> and <u>subsection 12.1.4</u>, and a copy of 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;12.2.2 Each Member and Manager has the right, upon reasonable request for purpose reasonably related to the interest of the Person as Member or Manager, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) inspect and copy during normal business hours any of the Company records described in <u>subsections 12.1.1 – 12.1.8</u>, inclusive, of this 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;(B) obtain from the Manager, promptly after their becoming available, a copy of the Company's U.S. federal, state and local income tax or information returns and reports and any tax returns and reports filed in any other jurisdiction for each fiscal year of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.3 The Manager shall be responsible for the preparation of financial reports of the Company and for the coordination of financial matters of the Company with the Company's accountants. Annual compiled financial statements shall be prepared that include a statement showing any item of income, gain, deduction, credit, or loss allocable for U.S. federal income tax purposes pursuant to the terms of 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;12.2.4 Any inspection or copying by a Member under this <u>Section 12.2</u> may be made by that Person or that Person's agent or attorney

**<u>Section 12.3</u> <u>Filings</u>.** The Manager, at the Company's expense, shall cause the income tax returns for the Company to be prepared and timely filed with the appropriate authorities. The Manager, at Company expense, shall also cause to be prepared and timely filed, with appropriate federal and state regulatory and administrative bodies, amendments to or restatements of the Certificate of Formation and all reports required to be filed by the Company with those entities under the Act or other then-current applicable laws, rules, and regulations.

**<u>12.4</u> <u>Bank Accounts</u>.** The Manager shall maintain the funds of the Company in one or more separate bank accounts in the name of the Company and shall not permit the funds of the Company to be commingled in any fashion with the funds of any other Person. In the event the Company is unable to obtain bank accounts, the funds of the Company may be held as determined by Manager.

**<u>Section 12.5</u> <u>Accounting Decisions and Reliance on Others</u>.** All decisions as to accounting matters, except as otherwise specifically set forth herein, shall be made by the Manager. The Manager may rely upon the advice of the Company's accountants as to whether such decisions are in accordance with accounting methods followed for U.S. federal income tax purposes or for purposes of any other jurisdiction in which the Company does business or is required to file tax returns or reports under applicable law.

**ARTICLE 13**

**DISSOLUTION AND LIQUIDATION**

**<u>Section 13.1</u> <u>Dissolution</u>.** Subject to the provisions of the Act of the Certificate of Formation, the Company may be dissolved, and its affairs wound up upon the first to occur of 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;13.1.1 At the time specified in the Certificate of Formation, or upon the expiration of the term specified in <u>Section 2.3</u> of 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;13.1.2 The written consent of Members holding a majority of the Percentage Interests of all classes voting together as a single class; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.3 Upon the sale of substantially all of the assets of the Company.

**<u>Section 13.2</u> <u>Liquidation</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;13.2.1 Upon the occurrence of any of the events of dissolution as set forth in Section 13.1 of this Agreement, the Company, at the election of the Manager in its sole discretion, shall cease to engage in any further business, except to the extent necessary to perform existing obligations, and shall wind up its affairs and liquidate its assets. The Manager of Liquidating Trustee appointed by the Manager, or if there be no Manager then in office by the Class B Members (by a vote of a majority of the Class B Members) class), shall appoint a liquidating trustee (who may, but need not, be a Member) who shall have sole authority and control over the winding up and liquidation of the Company's business and affairs and shall diligently pursue the winding up and liquidation of the Company in accordance with the Act. As soon as practicable after his or her appointment, the Liquidating Trustee shall cause to be filed a statement of intent to dissolve as required by the Act.

&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 During the course of liquidation, the Members shall continue to share profits and losses as provided in <u>Section 10.1</u> of this Agreement, but the Manager shall have sole discretion with respect to cash distributions to the Members until the Distribution Date (as defined in <u>Section 13.3</u>).

**<u>Section 13.3</u> <u>Liabilities</u>.** Liquidation shall continue until the Company's affairs are in such condition that there can be a final accounting, showing that all fixed or liquidated obligations and liabilities of the Company are satisfied or can be adequately provided for under this Agreement. The assumption or guarantee in good faith by one or more financially responsible Persons shall be deemed to be an adequate means of providing for such obligations and liabilities. When the Manager or Liquidating Trustee has determined that there can be a final accounting, the Manager or Liquidating Trustee shall establish a date (not to be later than the end of the taxable year of the liquidation, i.e., the time at which the Company ceases to be a going concern as provided in Section 1.704-1(b)(2)(ii)(g) of the Income Tax Regulations, or, it later, ninety (90) days after the date of such liquidation) for the distribution of the proceeds of liquidation of the Company (the "Distribution Date"). The net proceeds of liquidation of the Company shall be distributed to the Members as provided in <u>Section 13.5</u> hereof not later than the Distribution Date.

**<u>Section 13.4</u>** Upon dissolution and termination, the Manger or Liquidating Trustee, as the case may be, shall wind up the affairs of the Company, shall sell all the Company assets as promptly as consistent with obtaining, insofar as possible, the fair value thereof after paying all liabilities, including all costs of dissolution. The proceeds from the liquidation of the assets of the Company and collection of the receivables of the Company, together with the assets distributed in kind, to the extent sufficient therefore, shall be applied and distributed in the following descending order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.1 to the payment and discharge of all of the Company's debts and liabilities and the expenses of the Company including liquidation expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.2 to the creation of any reserves which the Manager and Liquidating Trustee deems necessary for any contingent or unforeseen liabilities or obligations of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.3 to the payment and discharge of all of the Company's debts and liabilities owing to Members, but if the amount available for payment is insufficient, then pro rata in portion to the amount of the Company debts and liabilities owing to each 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;13.4.4 to all the Members in the proportion of their respective positive Capital Accounts, as those accounts are determined after all adjustments to such accounts for the taxable year of the Company during which the liquidation occurs as are required by this Agreement and Income Tax Regulations § 1.704-I(b), such adjustments to be made within the time specified in such Income Tax Regulations; 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;13.4.5 to the Members in proportion to their Interests as set forth in ***Exhibit "2"***.

**<u>Section 13.5</u> <u>Certificate of Cancellation</u>.** Upon dissolution and liquidation of the Company, the Manager or Liquidating Trustee as the case may be, shall cause to be executed and filed with the Secretary of State of the State of Delaware, a certificate of cancellation in accordance with the Act.

**ARTICLE 14**

**INDEMNIFICATION** 

**<u>Section 14.1</u> <u>Indemnification: Proceeding Other than by Company</u>.** The Company may, but is not obligated to, in the sole discretion of the Manager, indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, involving the Company or its property, except an action by or in the right of the Company, by reason of the fact that he or she is or was a Manager, Member, officer, employee or agent of the Company, or is or was serving at the request of the Company as a Manager, Member, shareholder, director, officer, partner, trustee, employee or agent of any other Person, joint venture, trust or other enterprise, against expenses, including reasonable attorney's fees, judgements, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with the action, suit or proceeding if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company, and, with request to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by judgement, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, does not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company, and that, with respect to any criminal action or proceeding, he or she had reasonable cause to believe that his or her conduct was unlawful.

**<u>Section 14.2 Indemnification: Proceeding by Company</u>.** The Company may, but shall not be obligated, indemnify, in the sole discretion of the Manager, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to produce a judgement in its favor by reason of the fact that he or she is or was a Manager, Member, officer, employee or agent of the Company, or is or was serving at the request of the Company as a Manager, Member, shareholder, director, officer, partner, trustee, employee or agent of any other Person, joint venture, trust or other enterprise against

expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him or her in connection with the defense or settlement of the action or suit if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the Company or for amounts paid in settlement to the Company, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

**<u>Section 14.3</u> <u>Mandatory Indemnification</u>.** To the extent that a Manager, Member, officer, employee, or agent of the Company has been successful on the merits or otherwise in defense of any action, suit or proceeding described in <u>Section 14.1</u> and <u>Section 14.2</u>, or in defense of any claim, issue or matter involving the Company or its property, he or she must be indemnified by the Company against expenses, including attorneys' fees, actually and reasonably incurred by him or her in connection with the defense.

**<u>Section 14.4</u> <u>Authorization of Indemnification</u>.** Any indemnification under <u>Sections 14.1</u> and <u>Section 14.2</u>, unless ordered by a court or advanced pursuant to <u>Section 14.5</u>, may be made by the Company only as authorized in the specific case upon a determination that indemnification of the Manager, Member, officer, employee or agent is proper in the circumstances. In a case in which the Manager is seeking to be indemnified under this <u>Article 14</u>, the determination must be made by a majority of the Class B Members.

**<u>Section 14.5</u> <u>Mandatory Advancement of Expenses</u>.** The expenses of the Manager, Members, and officers incurred in defending a civil or criminal action, suit or proceeding in a matter involving the Company or its property, must be paid by the Company as they incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of the Manager, Member or officer to repay the amount if it is untimely determined by a court of competent jurisdiction that he or she is not entitled to be indemnified by the Company. The provisions of this Section 14.5 do not affect any rights to advancement of expenses to which personnel of this Company other than the Manager, Members or officers may be entitled under any contract or otherwise.

**<u>Section 14.6</u> <u>Effect and Continuation</u>.** The indemnification and advancement of expenses authorized in order by a court pursuant to <u>Sections 14.1 – 14.5,</u> inclusive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6.1 Does not exclude any other rights to which a person seeking indemnification or advancement of expenses may be entitled under the Certificate of Formation or any limited liability company agreement, vote of Member s or disinterested Manager, if any, or otherwise, for either an action in his or her official capacity or an action in another capacity while holding his or her office, except that indemnification, unless ordered by a court pursuant to <u>Section 14.2</u> or for the advancement of expenses made pursuant to <u>Section 14.5</u>, may not be made to or on behalf of any Member, Manager or officer if a final adjunction establishes that his or her acts or omissions involved intentional misconduct, breach of fiduciary duty, fraud or a knowing violation of the law and was material to the cause of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6.2 Continues for a person who has ceased to be a Member, Manager, officer, employee or agent and inures to the benefit of his or her heirs, executors and administrators.

**<u>Section 14.7</u> <u>Notice of Indemnification and Advancement</u>.** Any indemnification of, or advancement of expenses to, a Manager, Member, officer, employee or agent of the Company in accordance with this <u>Article 14</u>, if arising out of a proceeding by or on behalf of the Company, shall be reported promptly by the Manager in writing to the all the Members.

**<u>Section 14.8</u> <u>Repeal or Modification</u>.** Any repeal or modification of this <u>Article 14</u>, by the Members of the Company shall not adversely affect any right of a Manager, Member, officer employee or agent of the Company existing hereunder at the time of such repeal or modification.

**ARTICLE 15**

**SEAL**

**<u>Section 15.1</u> <u>Seal</u>.** The Manager or, if no Manager shall have been elected, the Members may adopt a seal of the Company in such form as the Manager or the Members, as the case may be, shall decide.

**ARTICLE 16**

**INVESTMENT REPRESENTATIONS**

Each Member, by his or its execution of this Agreement, hereby represents and warrants:

**<u>Section 16.1</u> <u>Experience</u>.** By reason of his or its business or financial experience, or by reason of the business or financial experience of his or its financial advisor who is unaffiliated with and who is not compensated, directly or indirectly, by the Company or any affiliate or selling agent of the Company, such Member is capable of evaluating the risks and merits of an investment in the Company and of protecting his or its own interests in connection with this investment.

**<u>Section 16.2</u> <u>Investment Intent</u>.** Such Member is acquiring the Interest for investment purposes for his or its own account only and not with a view to or for sale in connection with any distribution of all or any part of the Interest.

**<u>Section 16.3</u> <u>Economic Risk</u>.** Such Member is financially able to bear the economic risk of his or its investment in the Company, including the total loss thereof.

**<u>Section 16.4</u> <u>No Obligation to Register</u>.** Such Member acknowledges and agrees that the Company and the Manager are under no obligation to register or qualify the Interests under the Securities Exchange Act of 1933, as amended or under any state securities law or under the laws of any other jurisdiction, or to assist such Member in complying with any exemption from registration and qualification.

**<u>Section 16.5</u> <u>No Disposition in Violation of Law</u>.** Without limiting the representations set forth above, and without limiting <u>Article 11</u> of this Agreement, such Member will not make any disposition of all or any part of the Interests which will result in the violation by such Member or

by the Company of the Securities Act or any other applicable securities laws, whether federal or state. Without limiting the foregoing, each Member agrees not to make any disposition of all or any part of the Interests 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;16.5.1 there is then in effect a registration statement under the Securities Act and other applicable laws covering such proposed disposition and such disposition is made in accordance with such registration statement and any applicable requirements of federal and state securities laws; 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;16.5.2 such Member has notified the Company of the proposed disposition and has furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Manager, such Member has furnished the Company with a written opinion of legal counsel, reasonably satisfactory to the Company, that such disposition is exempt from registration under the Securities Act and other applicable state and federal 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;16.5.3 That he/it understands and has represented to all potential purchasers that all projections and financial or other materials which he/it may have been furnished are not based on historical operating results, because no reliable results exist, and are based only upon estimates and assumptions which are subject to future conditions and events which are unpredictable, and which may not be relied upon in making an investment decision.

**ARTICLE 17**

**COMPANY LOANS AND GUARANTEES**

**<u>Section 17.1</u> <u>General</u>.** The provisions contained in this <u>Article 17</u> set forth the terms and conditions by which the Company may make a loan or guarantee to or for the benefit of any Manager or officer of the Company.

**<u>Section 17.2</u> <u>Members' Approval Required</u>.** The Company shall not make any loan of money or property to, or guarantee the obligation of, any Manager of the Company for any purpose not directly related to the business or affairs of the Company.

**<u>Section 17.3</u> <u>Loans Generally Not to be Secured upon Interests in the Company</u>.** The Company shall not make any loan of money or property to, or guarantee the obligation of, and person upon the security of Interests in the Company.

**<u>Section 17.4</u> <u>Advances for Expenses of Manager and Officers</u>.** Notwithstanding anything to the contrary contained in Section 17 hereof, the Company may advance money to any Manager or officer of the Company for any expenses reasonably anticipated to be incurred in the performance of the duties of such Manager or officer, provided that in the absence of such advance such Manager or officer would be entitled to be reimbursed for such expenses by this Company or any subsidiary of this Company.

**ARTICLE 18**

**DEFAULTS AND REMEDIES**

**<u>Section 18.1</u> <u>Defaults</u>.** If a Member materially defaults in the performance of his or its obligations under this Agreement, and (a) such default is a monetary default that is not cured within ten (10) days after written notice of such default is given by a Manager to the defaulting Member or (b) such default is a non-monetary default that is not cured within thirty (30) days after written notice of such default is given by a Manager to the defaulting Member then the Manager shall have the rights and remedies described in <u>Section 18.2</u> hereunder in respect of each default.

**<u>Section 18.2</u> <u>Remedies</u>.** If a Member fails to perform his or its obligations under this Agreement, the Manager shall have the right, in addition to all other rights and remedies provided herein, on behalf of the Company to bring the matter to mandatory non-binding mediation pursuant to <u>Section 19.9</u> or mandatory binding arbitration pursuant to <u>Section 19.10</u>. The award of the arbitrator in such a proceeding shall be binding and may include an order for specific performances by the defaulting Member of his or its obligations under this Agreement, an award for damages for payment of sums due to the Company or to a Member, and/or may result in the defaulting Member's expulsion. Upon expulsion, a Member shall no longer have any ongoing rights, but shall be entitled to pro rata allocation and distribution of profits, if any, for the year of expulsion.

**ARTICLE 19**

**MISCELLANEOUS**

**<u>Section 19.1</u> <u>Entire Agreement</u>.** This Agreement, and the Exhibits hereto, constitute the entire agreement among the Members with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, representations, and understandings of the parties whether written or oral. No party hereto shall be liable or bound to the other in any manner by any warranties, representations or covenants with respect to the subject matter hereof except as specifically set forth herein.

**<u>Section 19.2</u> <u>Amendments</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;19.2.1 This Agreement may be amended only by the affirmative vote of a majority in interest of the Class A Members and the vote of seventy-five percent in interest of the Class B Members, except clerical or ministerial amendments that may be approved by a majority in interest of the Class B Members. All amendments shall be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.2 The Certificate of Formation may only be amended by the affirmative vote of seventy-five percent in interest of the Class A and Class B Members. Any such amendment shall be in writing and shall be executed and filed in accordance with the Act.

**<u>Section 19.3</u> <u>No Waiver</u>.** No consent or waiver, express or implied, by the Company or a Member to or of any breach or default by any Member in the performance by such Member of his or its obligations under this Agreement shall constitute a consent to or waiver of any similar breach or default by that or any other Member. Failure by the Company or a Member to complain of any act or omission to act by any Member, or to declare such Member in default, irrespective of how long such failure continues, shall not constitute a waiver by the Company or such Member of his or its rights under this Agreement.

**<u>Section 19.4</u> <u>Representation of Shares of Companies or Interests in Other Entities</u>.** Any Manager of this Company is authorized to vote, represent, and exercise on behalf of this Company all rights incident to any and all shares of any other company or companies, or any interests in any other Person, standing in the name of this Company. The authority herein granted to said Manager to vote or represent on behalf of this Company any and all shares held by this Company in any other company or companies, or any interests in any other Person, may be exercised by such Manager in person or by any other person authorized so to do by proxy or power of attorney duly executed by said Manager.

**<u>Section 19.5</u> <u>Inconsistencies</u>.** In the event of any inconsistency in the actions taken by any Manager or by the president (or vice president) and secretary (or assistant secretary), the decision or action of a Manager shall prevail over any decision or action of an officer, and the decision or action of the president shall prevail over that of any other officer.

**<u>Section 19.6</u> <u>Third Parties</u>.** Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto, and their respective successors and permitted assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided herein.

**<u>Section 19.7</u> <u>Severability</u>.** If one or more provisions of this Agreement are held by a proper court to be unenforceable under applicable law, portions of such provisions, or such provisions in their entirety, to the extent necessary and permitted by law, shall be severed herefrom, and the balance of this Agreement shall be enforced in accordance with its terms.

**<u>Section 19.8</u> <u>Governing Law</u>.** This Agreement shall be governed by and construed under the substantive laws of the State of Delaware, without regard to Delaware choice of law principles.

**<u>Section 19.9</u> <u>Mandatory Mediation</u>.** The parties agree that any and all disputes, claims or controversies arising out of or relating to this Agreement shall first be submitted to JAMS, or its successor, for mediation, and if the matter is not resolved through non-binding mediation, then it shall be submitted to JAMS, or its successor, for final and binding arbitration pursuant to the clause set forth in <u>Section 19.10</u> below. Either party may commence mediation by providing to JAMS and the other party a written request for mediation, setting forth the subject of the dispute and the relief requested. The parties will cooperate with JAMS and with one another in selecting a mediator from the JAMS panel of neutrals and in scheduling the mediation proceedings. The parties agree that they will participate in the mediation in good faith and that they will share equally in its costs. All offers, promises, conduct and statements, whether oral or written, made in the course of the mediation by any of the parties, their agents, employees, experts and attorneys, and by the mediator or any JAMS employees, are confidential, privileged and inadmissible for any purpose, including impeachment, in any arbitration or other proceeding involving the parties, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.9.1 Either party may initiate arbitration with respect to the matters submitted to mediation by filing a written demand for arbitration at any time following the initial mediation session or at any time following fort-five (45) days from the date of filing the written request for

mediation, whichever occurs first ("**Earliest Initiation Date**"). The mediation may continue after the commencement of arbitration if the parties so desire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.9.2 At no time prior to the Earliest Initiation Date shall either side initiate an arbitration or litigation related to this Agreement except to pursue a provisional remedy that is authorized by law or by JAMS Rules or by agreement of the parties. All applicable statutes of limitation and defenses based upon the passage of time shall be tolled until fifteen (15) days after the Earliest Initiation Date. The parties will take such action, if any, required to effectuate such tolling.

**<u>Section 19.10</u> <u>Arbitration</u>.** Each party **to** this Agreement hereby agrees that the sole and exclusive forum and remedy for the final resolution of a Claim shall be final and binding arbitration pursuant to this <u>Section 19.10</u> (this "**Arbitration Provision**"). The arbitration shall be conducted in Fulton County, Georgia. As used in this Arbitration Provision, "Claim" shall include any past, present, or future claim, dispute, or controversy involving a Member (or persons claiming through or connected with a Member), on the one hand, and the Company or the Manager, on the other hand, relating to or arising out of this Agreement, any subscription agreement or related documents, any Interests, and/or the activities or relationships that involve, lead to, or result from any of the foregoing, including (except to the extent provided otherwise in the last sentence of <u>19.10.11</u> below) the validity or enforceability of this Arbitration Provision, any part thereof, or the entire Agreement. All Claims are subject to arbitration except those arising under the U.S. federal securities laws. The scope of this Arbitration Provision is to be given the broadest possible interpretation that is enforceable as a matter of law. The party initiating arbitration shall do so with JAMS (jamsadr.com). The arbitration shall be conducted according to, and the location of the arbitration shall be determined in accordance with, the rules and policies of the administrator selected, except to the extent the rules conflict with this Arbitration Provision or any countervailing law. In the case of a conflict between the rules and policies of the administrator and this Arbitration Provision, this Arbitration Provision shall control, subject to countervailing law, unless all parties to the arbitration consent to have the rules and policies of the administrator apply. In any arbitration arising out of or related to this Agreement, request for documents:

Shall be limited to documents which are directly relevant to significant issues in the case or to the case's outcome;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.1 Shall be restricted in terms of time frame, subject matter and persons or entities to which the requests pertain; 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;19.10.2 Shall not include broad phraseology such as "all documents directly or indirectly related to." (See JAMS Discovery Protocols; JAMS Arbitration Rule 16.2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.3 There shall be production of electronic documents only from sources used in the ordinary courses of business. Absent a showing of compelling need, no such documents are required to be produced from backup servers, tapes or other media.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.4 Absent a showing of compelling need, the production of electronic documents shall normally be made on the basis of generally available technology in a searchable

format which is usable by the party receiving the e-documents and convenient and economical for the producing party. Absent a showing of compelling need, the parties need not produce metadata, with the exception of header fields for email correspondence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.5 The description of custodians from whom electronic documents may be collected shall be narrowly tailored to include only those individuals whose electronic documents may reasonably be expected to contain evidence that is material to the dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.6 Where the costs and burdens of e-discovery are disproportionate to the nature of the dispute or to the amount in controversy, or to the relevance of the materials requested, the arbitrator will either deny such requests or order disclosure on condition that the requesting party advance the reasonable cost of production to the other side, subject to the allocation of costs in the final award. (See JAMS Discovery Protocols; JAMS Arbitration Rule 16.2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.7 In any arbitration arising out of or related to this Agreement, there shall be no interrogatories or requests to admit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.8 If the Company elects arbitration, the Company shall pay the administrator's filing costs and administrative fees (other than hearing fees). If a Member elects arbitration, filing costs and administrative fees (other than hearing fees) shall be paid in accordance with the rules of the administrator selected, or in accordance with countervailing law if contrary to the administrator's rules. The Company shall pay the administrator's hearing fees for one full day of administration hearings. Fees for hearing that exceed one day will be paid by the party requesting the hearing, unless the administrator's rules or applicable law requires otherwise, or a Member requests that the Company pay them and the Company agrees to do so. Each party shall bear the expense of its own attorney's fees, except as otherwise provided by law. If a statute gives a Member the right to recover any of these fees, these statutory rights shall apply in the arbitration notwithstanding anything to the contrary 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;19.10.9 Within thirty (30) days of a final award by the arbitrator, a party may appeal the award for reconsideration by a three-arbitrator panel selected according to the rules of the arbitrator administrator. In the event of such an appeal, an opposing party may cross-appeal within thirty (30) days after notice of the appeal. The panel will reconsider de novo all aspects of the initial award that are appealed. Costs and conduct of any appeal shall be governed by this Arbitration Provision and the administrator's rules, in the same way as the initial arbitration proceeding. Any award by the individual arbitrator that is not subject to appeal, and any panel award on appeal, shall be final and binding, except for any appeal right under the Federal Arbitration Act (the "**FAA**"), and may be entered as a judgement in any court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.10 The Company agrees not to invoke the right to arbitrate an individual Claim that a Member may bring in Small Claims Court or an equivalent court, if any, so long as the Claim is pending only in that court. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NO ARBITRATION SHALL PROCEED ON A CLASS, REPRESENTATIVE, OR COLLECTIVE BASIS (INCLUDING AS PRIVATE ATTORNEY GENERAL ON BEHALF OF OTHERS), EVEN IF THE CLAIM OR CLAIMS THAT ARE THE SUBJECT OF

THE ARBITRATION HAD PREVIOUSLY BEEN ASSERTED (OR COULD HAVE BEEN ASSERTED) IN A COURT AS CLASS REPRESENTATIVE, OR COLLECTIVE ACTIONS IN A COURT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.11 Unless otherwise provided in this Agreement or consented to in writing by all parties to the arbitration, no party to the arbitration may join, consolidate, or otherwise brings claims for or on behalf of two (2) or more individuals or unrelated corporate entities in the same arbitration unless those persons are parties to a single transaction. Unless consented to in writing by all parties to the arbitration, an award in arbitration shall determine the rights and obligations of the named parties only, and only with respect to the claims in arbitration, and shall not: (i) determine the rights, obligations, or interests of anyone other than a named party, or resolve any Claim of anyone other than a named party; or (ii) make an award for the benefit of, or against, anyone other than a named party. No administrator or arbitrator shall have the power or authority to waive, modify or fail to enforce this subsection 19.10.12, and any attempt to do so, whether by rule, policy, and arbitration decision or otherwise, shall be invalid and unenforceable. Any challenge to the validity of this subsection 19.10.12 shall be determined exclusively by a court and not by the administrator or any arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.12 The Arbitration Provision is made pursuant to a transaction involving interstate commerce and shall be governed by and enforceable under the FAA. The arbitrator will apply substantive law consistent with the FAA and applicable statutes of limitations. The arbitrator may award damages or other types of relief permitted by applicable substantive law, subject to the limitations set forth in this Arbitration Provision. The arbitrator will not be bound by judicial rules of procedure and evidence that would apply in a court. The arbitrator shall take steps to reasonably confidential information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.13 This Arbitration Provision shall survive: (i) suspension, termination, revocation, closure or amendments to this Agreement and the relationship of the parties; (ii) the bankruptcy or insolvency of any party hereto or other party; and (iii) any transfer of any loan or Interests or any amounts owed on such loans or notes, to any other party. If any portion of this Arbitration Provision other than <u>subsection 19.10.11</u> is deemed invalid or unenforceable, the remaining portions of this Arbitration Provision shall nevertheless remain valid and in force. If arbitration is brought on a class, representative or collective basis, and the limitations on such proceedings in are finally adjudicated pursuant to the last sentence of <u>subsection 19.10.12</u> to be unenforceable, then no arbitration shall be had. In no event shall any invalidation be deemed to authorize an arbitrator to determine Claims or make awards beyond those authorized in this Arbitration 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;19.10.14 Each Member acknowledges, understands and agrees that: (a) arbitration is final and binding on the parties; (b) the parties are waiving their right to seek remedies in court, including the right to jury trial; (c) pre-arbitration discovery in generally more limited than and potentially different in form and scope from court proceedings; (d) the final award by the arbitrator is not required to include factual findings or legal reasoning and any party's right to appear or to seek modification of a ruling by the arbitrators is strictly limited; and (e) the panel of arbitrators may include a minority of persons engaged in the securities industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.15 BY AGREEING TO BE SUBJECT OT THE ARBITRATION PROVISION CONTAINED IN THIS AGREEMENT, MEMBERS WILL NOT BE DEEMED TO WAIVE THE COMPANY'S COMPLIANCE WITH THE FEDERAL SECURITIES LAWS AND THE RULES AND REGULATIONS PROMULGATED 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;19.10.16 Waiver of Court & Jury Rights. THE PARTIES ACKNOWLEDGE THAT THEY HAVE A RIGHT TO LITIGATE CLAIMS THROUGH A COURT SOLELY BEFORE A JUDGE. THE PARTIES HEREBY KNOWINGLY AND VOLUNTARILY WAIVE THEIR RIGHTS TO A TRIAL BY JURY IN ANY LITIGATION RELATING TO THIS AGREEMENT, THE INTERESTS OR THE COMPANY, INCLUDING CLAIMS UNDER THE U.S. FEDERAL SECURITIES LAWS.

**<u>Section 19.11</u> <u>Payment of Legal Fees and Costs</u>.** In the event that a Member: (a) initiates or asserts any suit, legal action, claim, counterclaim or proceeding regarding, relating to or arising under this Agreement, the Interests or the Company, including claims under the U.S. federal securities laws; and (b) does not, in a judgement on the merits, substantially achieve, in substance and amount, the full remedy sought or the equivalent is reached in settlement, then the Member shall be obligated to reimburse the Company and any parties indemnified by the Company for any and all fees, costs and expense of every kind and description (including, but not limited to, all reasonable attorneys' fees, the costs of investigating a claim and other litigation expenses) that the Company and any parties indemnified by the Company may incur in connection with such Claim.

**<u>Section 19.12</u> <u>Choice of Venue</u>.** Any suit, legal action or proceeding involving any dispute or matter regarding, relating to or arising under this Agreement shall be brought solely in the United States District Court with jurisdiction covering Fulton County, Georgia. All parties hereby consent to the exercise of personal jurisdiction, and waive all objections based on improper venue and/or forum non conveniens, in connection with or in relation to any such suit, legal action or proceeding.

**<u>Section 19.13</u> <u>Notices</u>.** Unless otherwise provided in this Agreement, any notice or other communication herein required or permitted to be given shall be in writing and shall be given by electronic communication, hand delivery, registered or certified mail, with proper postage prepaid, return receipt requested, or courier service regularly providing proof of delivery, addressed to the party hereto as provided as follows:

all communications intended for the Company shall be sent to and all communications intended for a Member shall be sent to the address of such Member set forth in Exhibit "1" to this Agreement.

For all purposes of this Agreement, a notice or communication will be deemed effective:

&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) if delivered by hand or sent by courier, on the day it is delivered unless that day is not a day upon which commercial banks are open for business in the city specified (a "Local Business Day") in the address for notice provided by the recipient, or if delivered after the close of business on a Local Business Day, then on the next succeeding Local Business Day; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if sent by registered or certified mail, on the tenth Local Business Day after the date of mailing.

**<u>Section 19.14</u> <u>Titles and Subtitles</u>.** The titles of the sections and paragraphs of this Agreement are for convenience only and are not to be considered in construing this Agreement.

**<u>Section 19.15</u> <u>Currency</u>.** Unless otherwise specified, all currency amounts in this Agreement refer to the lawful currency of the United States of America.

**<u>Section 19.16</u> <u>Partition</u>.** Each Member irrevocably waives any right that it may have to maintain any action for partition with respect to any of the Company's property.

**<u>Section 19.17</u> <u>Counterparts</u>.** This Agreement 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 and shall become effective when there exist copies hereof which, when taken together, bear the authorized signatures of each of the parties hereto.

**<u>Section 19.18</u> <u>Preparation of Agreement</u>.** This Operating Agreement has been prepared by David G. LeGrand, Esq. (the "**Law Firm**"), counsel for XIV-I INVEST 1, LLC in the course of its representation of it, and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The Members have been advised by the Law Firm that a conflict of interest exists among the Members' individual interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Members have been advised by the Law Firm to seek the advice of independent counsel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The Members have been represented by independent counsel or have had the opportunity to seek such representation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The Law Firm has not given any advice or made any representations to the Members with respect to the tax consequences of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The Members have been advised that the terms and provisions of this Agreement may have tax consequences and the Members have been advised by the Law Firm to seek independent counsel with respect thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. The Members have been represented by independent counsel or have had the opportunity to seek such representations with respect to the tax consequences of this Agreement.

**<u>Section 19.19</u> <u>NO RELIANCE</u>.** THE MEMBERS ACKNOWLEDGE THAT NEITHER THE MANAGER NOR ANY PERSON ACTING ON BEHALF OF THE MANAGER HAS MADE ANY REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE INTERESTS OR ANY SECURITIES OF THE COMPANY, AND THE MEMEBERS CONFIRM THAT THEY HAVE NOT BASED THEIR INVESTMENT DECISIONS ON, AND ARE NOT RELYING ON, ANY REPRESENTATIVES OR WARRANTIES FROM THE MANAGER, NO PERSON ACTING ON BEHALF OF THE MANAGER OR COMPANY IS REPRESENTING OR

ACTING ON BEHALF OF ANY MEMBER WITH RESPECT TO ANY MATTER RELATED TO THE COMPANY.

IN WITNESS WHEREOF, XIV-I INVEST 1, LLC, through its Manager and the Members hereby execute this Operating Agreement effective as of April 7, 2022.

[Signatures on Following Pages]

**XIV-I INVEST 1, LLC**

**a Delaware limited liability company** 

By XIV-I MANAGER, LLC its Manager

By: ***<u>s:</u>*** <u>Monica Poole, Manager</u> 

Monica Poole, Manager

**Class B Member:** XIV-I, Inc.

By: ***<u>s:</u>*** <u>Monica Poole, President</u> 

Monica Poole, President

***<u>EXHIBIT "1"</u>***

 ****

Name, Addresses, Capital Contributions of Class A Members\*

NAME ADDRESS CAPITAL CONTRIBUTIONS INTEREST

***<u>EXHIBIT "2"</u>***

 ****

Names, Addresses, Capital Contributions and Interest of Class B Members\*

NAME ADDRESS CAPITAL CONTRIBUTION INTERESTS

<u>XIV-I, Inc.</u> **5784 Lake Forrest Drive $25,000 1000 Class B Interests**

**Suite 209**

**Atlanta, GA 30328**

***<u>EXHIBIT "3"</u>***

 ****

MANAGER

<u>Name</u> <u>Address</u>

XIV-I MANAGER, LLC **5784 Lake Forrest Drive, Suite 209**

**Atlanta, GA 30328**

## Ex1A-4

**XIV-I INVEST 1, LLC**

**a Delaware limited liability company**

**7,500,000 Class A Interests of Membership Interest**

**REGULATION A+ SUBSCRIPTION AGREEMENT**

This Subscription Agreement (the "**Subscription Agreement**") is made as of the date set forth below by and between the undersigned (the "**Subscriber**") and the Company and is intended to set forth certain representations, covenants and agreements between Subscriber and the Company with respect to the offering (the "**Offering**") for sale by the Company of the Class A Interests as described in the Company's offering circular dated _______ 2023 (the "**Offering Circular**"), a copy of which has been delivered to Subscriber. The Class A Interests are also referred to herein as the "Securities".

Investing in securities represented by the Class A Interests (the "Class A Interests") of XIV-I INVEST 1, LLC, a Delaware limited liability company (the "**Company**") involves significant risks. This investment is suitable only for persons who can afford to lose their entire investment and such investment could be illiquid for an indefinite period of time. No public market currently exists for the Class A Interests and if a public market develops following this offering, it may not continue.

The Class A Interests have not been registered under the Securities Act of 1933, as amended (the "**Securities Act**"), or any state securities or blue sky laws and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and state securities or blue sky laws. Although an offering statement has been filed with the Securities and Exchange Commission (the "**SEC**"), that offering statement does not include the same information that would be included in a registration statement under the Securities Act. The Class A 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 the merits of this offering or the adequacy or accuracy of the offering circular or any other materials or information made available to subscriber in connection with this offering, through the online website platform at www.investinxiv.com (the "**Portal**"), or the SEC's EDGAR website at www.sec.gov.

No sale may be made to persons who are not "accredited investors" if the aggregate purchase price is more than 10% of the greater of such investors' annual income or net worth. The Company is relying on the representations and warranties set forth by each subscriber in this Subscription Agreement and the other information provided by subscriber in connection with this offering to determine compliance with this requirement.

Prospective investors may not treat the contents of this Regulation A+ Subscription Agreement, the offering circular or any of the other materials available (collectively, the "**Offering Materials**") or any prior or subsequent communications from the Company or any of its affiliates, officer, employees or agents as investment, legal or tax advice. In making an investment decision, investors must rely on their own examination of the Company and the terms of this offering, including the merits and the risks involved. Each prospective investor should consult the investor's own counsel, accountant and other professional advisor as to investment, legal, tax and other related matters concerning the investor's proposed investment.

The Company reserves the right in its sole discretion and for any reason whatsoever to modify, amend and/or withdraw all or a portion of the offering and/or accept or reject in whole or in part any prospective investment in the Class A Interests or to allot to any prospective investor less than the amount of Class A Interests such investor desires to purchase.

Except as otherwise indicated, the Offering Materials speak as of their date. Neither the delivery nor the purchase of the Class A Interests shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

**ARTICLE I** 

**SUBSCRIPTION**

**1.01 <u>Subscription</u>**. Subject to the terms and conditions hereof, Subscriber hereby irrevocably subscribes for, and agrees to, purchase from the Company the number of Class A Interests set forth on the Subscription Agreement Signature Page, and the Company agrees to sell such Class A Interests to Subscriber at a purchase price of $10.00 per Class A Interests for the total amount set forth on the Subscription Agreement Signature Page (the "**Purchase Price**"), subject to the Company's right to sell to Subscriber such lesser number of Class A Interests as the Company may, in its sole discretion, deem necessary or desirable.

**1.02 <u>Delivery of Subscription Amount; Acceptance of Subscription; Delivery of Securities</u>**. Subscriber understands and agrees that this Subscription is made subject to the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contemporaneously with the execution and delivery of this Subscription Agreement through the Platform, Subscriber shall pay the Purchase Price for the Class A Interests in the form of ACH debit transfer, wire transfer, or credit card payment. Your subscription is irrevocable. The Company selected a transfer agent company (the "**Transfer Agent**") to maintain all such funds for Subscriber's benefit

until the earliest to occur of: (i) the Closing, (ii) the rejection of such subscription or (iii) the termination of the Offering by the Company in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Payment of the Purchase Price shall be (i) made by Subscriber via the Portal, (ii) received through the Transfer Agent, and (iii) held in an escrow account operated by the escrow agent the Company selected to hold funds (the "**Escrow Agent**") until the minimum offering amount of One Million AND NO/100 DOLLARS ($1,000,000.00) is met (the "**Initial Closing**"). After the Initial Closing, the Subscriber's payment may be accepted by the Company upon receipt (each a "Closing")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This subscription shall be deemed to be accepted only when this Subscription Agreement has been signed by an authorized officer or agent of the Company, and ***the deposit of the payment of the Purchase Price for clearance will not be deemed an acceptance of this Subscription Agreement***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall have the right to reject this subscription, in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The payment of the Purchase Price (or, in the case of rejection of a portion of the Subscriber's subscription, the part of the payment relating to such rejected portion) will be returned promptly, without interest or deduction, if Subscriber's subscription is rejected in whole or in part or if the Offering is withdrawn or canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subscriber shall receive notice and evidence of the digital entry (or other manner of record) of the number of the Class A Interests owned by Subscriber reflected on the books and records of the Company and verified by the Transfer Agent, which books and records shall bear a notation that the Class A Interests were sold in reliance upon Regulation A+.

**1.03 <u>Operating Agreement</u>**. You have received and read a copy of the Company's Operating Agreement (the "**Operating Agreement**") and agree that your execution of this Subscription Agreement constitutes your consent to the Operating Agreement, and that upon acceptance of this Subscription Agreement by the Company, you will become a shareholder of the Company as a holder of Class A Interests. When this Subscription Agreement is countersigned by the Company, the Operating Agreement shall be binding upon acceptance of your subscription.

**1.04 <u>The Platform</u>**. The Offering is described in the Offering Circular, that is available through the online website platform www.investinxiv.com, or the SEC's EDGAR website at www.sec.gov. Please read this Subscription Agreement, the Offering Circular, and the Operating Agreement. While they are subject to change, as described below, the Company advises you to print and retain a copy of these documents for your records.

**ARTICLE II** 

**REPRESENTATIONS AND WARRANTIES OF SUBSCRIBER**

By executing this Subscription Agreement, Subscriber (and, if Subscriber is purchasing the Securities in a fiduciary capacity, the person or persons for whom Subscriber is so purchasing) represents and warrants, which representations and warranties are true and complete in all material respects as of the date of each Closing Date:

**2.01 <u>Requisite Power and Authority</u>**. Such Subscriber has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement. All action on Subscriber's part required for the lawful execution and delivery of this Subscription Agreement has been or will be effectively taken prior to the Closing. Upon execution and delivery, this Subscription Agreement will be a valid and binding obligation of Subscriber, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors' rights, and (b) as limited by general principles of equity that restrict the availability of equitable remedies.

**2.02 <u>Investment Representations</u>**. Subscriber understands that the Securities have not been registered under the Securities Act. Subscriber also understands that the Securities are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Subscriber's representations contained in this Subscription Agreement. Subscriber is purchasing the Class A Interests for Subscriber's own account. Subscriber has received and reviewed this Subscription Agreement, the Offering Circular and the Operating Agreement. Subscriber and/or Subscriber's advisors, who are not affiliated with and not compensated directly or indirectly by the Company or an affiliate thereof, have such knowledge and experience in business and financial matters as will enable them to utilize the information which they have received in connection with the Offering to evaluate the merits and risks of an investment, to make an informed investment decision, and to protect Subscriber's own interest in connection with an investment in the Class A Interests.

**2.03 <u>Illiquidity and Continued Economic Risk</u>**. Subscriber acknowledges and agrees that there is no ready public market for the Securities and that there is no guarantee that a market for their resale will ever exist. Subscriber must bear the economic risk of this investment indefinitely and the Company has no obligation to list the Securities on any market or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Securities. Subscriber acknowledges that

Subscriber is able to bear the economic risk of losing Subscriber's entire investment in the Securities. Subscriber also understands that an investment in the Company involves significant risks and understands all of the risk factors relating to the purchase of Securities.

**2.04 <u>Accredited Investor Status or Investment Limits</u>**. Subscriber represents that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subscriber is an "**Accredited Investor**" within the meaning of Rule 501 of Regulation D under the Securities Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Purchase Price set out below, on the signature page of this Subscription Agreement, together with any other amounts previously used to purchase Securities in this Offering, does not exceed ten percent (10%) of the greater of the Subscriber's annual income or net worth. Subscriber represents that to the extent it has any questions with respect to its status as an Accredited Investor, or the application of the investment limits, it has sought professional advice.

**2.05 <u>Additional Subscriber Information; Payment Information</u>**. Subscriber agrees to provide any additional documentation the Company may reasonably request, including documentation as may be required by the Company to form a reasonable basis that the Subscriber qualifies as an "accredited investor" as that term is defined in Rule 501 under Regulation D promulgated under the Act, or otherwise as a "qualified purchaser" as that term is defined in Regulation A promulgated under the Act, or as may be required by the securities administrators or regulators of any state, to confirm that the Subscriber meets any applicable minimum financial suitability standards and has satisfied any applicable maximum investment limits. Subscriber acknowledges that Subscriber's responses to questions on the Platform (as defined in the Offering Circular) are true, complete and accurate in all respects. Payment information provided by Subscriber through the Platform is true, accurate and correct and such payment information shall be deemed to be a part of this Subscription Agreement as if, and to the same extent that, such information was set forth herein.

**2.06 <u>Company Information</u>**. Subscriber has read the Offering Circular filed with the SEC, including the section titled "**Risk Factors**. " Subscriber understands that the Company is subject to all the risks that apply to early-stage companies, whether or not those risks are explicitly set out in the Offering Circular. Subscriber acknowledges that no representations or warranties have been made to Subscriber, or to Subscriber's advisors or representative, by the Company or others with respect to the business or prospects of the Company or its financial condition.

**2.07 <u>Neither the Company nor the Platform is an Investment Adviser</u>**. Subscriber understands that neither the Company nor the Platform is registered under the Investment Company Act of 1940 or the Investment Advisers Act of 1940.

**2.08 <u>Valuation</u>**. Subscriber acknowledges that the price of the Securities was set by the Company on the basis of the Company's internal valuation and no warranties are made as to value. Subscriber further acknowledges that future offerings of Securities may be made at lower valuations, with the result that the Subscriber's investment will bear a lower valuation.

**2.09 <u>Domicile</u>**. Subscriber maintains Subscriber's domicile (and is not a transient or temporary resident) at the address shown on the signature page and provided on the Platform.

**2.10 <u>Power of Attorney</u>**. Any power of attorney of the Subscriber granted in favor of the Company contained in the Operating Agreement has been executed by the Subscriber in compliance with the laws of the state, province or jurisdiction in which such agreements were executed.

**2.11 <u>No Brokerage Fees</u>**. There are no claims for brokerage commission, finders' fees or similar compensation in connection with the transactions contemplated by this Subscription Agreement or related documents based on any arrangement or agreement binding upon Subscriber. Subscriber will indemnify and hold the Company harmless against any liability, loss or expense (including, without limitation, reasonable attorneys' fees and out-of-pocket expenses) arising in connection with any such claim.

**2.12 <u>Foreign Investors</u>**. If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the *Internal Revenue Code of 1986*, as amended), Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including (a) the legal requirements within its jurisdiction for the purchase of the Securities, (b) any foreign exchange restrictions applicable to such purchase, (c) any governmental or other consents that may need to be obtained, and (d) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. Subscriber's subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Subscriber's jurisdiction.

**2.13 <u>Terms and Conditions of the Platform</u>**. Subscriber acknowledges that it has read, understands and agrees to the terms and conditions, privacy policy and disclaimers on the Platform.

**2.14 <u>Transfer Restrictions</u>**. Subscriber acknowledges and agrees that the Class A Interests are subject to restrictions on transfer as described in the Operating Agreement. The Class A Interests shall bear a digital or physical restrictive legend in substantially the following form (and a stop transfer order may be placed against transfer of such certificates or instruments):

THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO SIGNIFICANT RESTRICTIONS ON TRANSFER PURSUANT TO THE COMPANY'S OPERATING AGREEMENT AND THE SUBSCRIPTION AGREEMENT PURSUANT TO WHICH THESE SECURITIES WERE ORIGINALLY SOLD. ANY PURPORTED TRANSFER IN VIOLATION OF SUCH PROVISIONS SHALL BE VOID, AB INITIO.

**ARTICLE III** 

**SURVIVAL; INDEMNIFICATION**

**3.01 <u>Survival; Indemnification</u>**. All representations, warranties and covenants contained in this Subscription Agreement and the indemnification contained herein shall survive (a) the acceptance of this Subscription Agreement by the Company, (b) changes in the transactions, documents and instruments described herein which are not material or which are to the benefit of Subscriber, and (c) the death or disability of Subscriber. Subscriber acknowledges the meaning and legal consequences of the representations, warranties and covenants in Article II hereof and that the Company has relied upon such representations, warranties and covenants in determining Subscriber's qualification and suitability to purchase the Securities. Subscriber hereby agrees to indemnify, defend and hold harmless the Company, its officers, directors, employees, agents and controlling persons, from and against any and all losses, claims, damages, liabilities, expenses (including attorneys' fees and disbursements), judgments or amounts paid in settlement of actions arising out of or resulting from the untruth of any representation of Subscriber herein or the breach of any warranty or covenant herein by Subscriber. Notwithstanding the foregoing, however, no representation, warranty, covenant or acknowledgment made herein by Subscriber shall in any manner be deemed to constitute a waiver of any rights granted to it under the Securities Act or state securities laws.

**ARTICLE IV** 

**MISCELLANEOUS PROVISIONS**

**4.01 <u>Captions and Headings</u>**. The Article and Section headings throughout this Subscription Agreement are for convenience of reference only and shall in no way be deemed to define, limit or add to any provision of this Subscription Agreement.

**4.02 <u>Notification of Changes</u>**. Subscriber agrees and covenants to notify the Company immediately upon the occurrence of any event prior to the consummation of this Offering that would cause any representation, warranty, covenant or other statement contained in this Subscription Agreement to be false or incorrect or of

any change in any statement made herein occurring prior to the consummation of this Offering.

**4.03 <u>Assignability</u>**. This Subscription Agreement is not assignable by Subscriber, and may not be modified, waived or terminated except by an instrument in writing signed by the party against whom enforcement of such modification, waiver or termination is sought.

**4.04 <u>Binding Effect</u>**. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and assigns, and the agreements, representations, warranties and acknowledgments contained herein shall be deemed to be made by and be binding upon such heirs, executors, administrators, successors, legal representatives and assigns.

**4.05 <u>Obligations Irrevocable</u>**. The obligations of Subscriber shall be irrevocable, except with the consent of the Company, until the consummation or termination of the Offering.

**4.06 <u>Entire Agreement; Amendment</u>**. This Subscription Agreement states the entire agreement and understanding of the parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written. No amendment of the Agreement shall be made without the express written consent of the parties.

**4.07 <u>Severability</u>**. The invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect any other provision hereof, which shall be construed in all respects as if such invalid or unenforceable provision were omitted.

**4.08 <u>Notices</u>**. All notices and communications to be given or otherwise made to the Subscriber shall be deemed to be sufficient if sent by electronic mail to such address as set forth for the Subscriber at the records of the Company (or that you submitted to us via the Platform). You shall send all notices or other communications required to be given hereunder to the Company via email at info@investinxiv.com, with a copy sent either certified mail or another traceable form of delivery to the Company at the following address:

XIV-I INVEST 1, LLC

5784 Lake Forrest Dr, Suite 209

Sandy Springs, GA 30328

Attention: Investor Relations

Any such notice or communication shall be deemed to have been delivered and received on the first business day following that on which the electronic mail has been sent (assuming that there is no error in delivery). As used in this Section,

"business day" shall mean any day other than a day on which banking institutions in the State of Georgia are legally closed for business.

**4.09 <u>Counterparts</u>**. This Subscription Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

**4.10 <u>Digital Signatures</u>**. 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. The mechanics of this Subscription Agreement's electronic signature include your signing this Agreement below by typing in your name, with the underlying software recording your IP address, your browser identification, the timestamp, and a securities hash within an SSL encrypted environment. This electronically signed Subscription Agreement will be available to both you and the Company, as well as any associated brokers, so they can store and access it at any time, and it will be stored and accessible on the Platform and hosting provider, including backups. You and the Company each hereby consents and agrees that electronically signing this Subscription Agreement constitutes your signature, acceptance and agreement as if 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 shall be legally binding and such transaction shall be considered authorized by you. By signing electronically below, you agree your electronic signature is the legal equivalent of your manual signature on this Subscription Agreement and you consent to be legally bound by this Subscription Agreement's terms and conditions. Alternatively, you may opt-out of this provision by printing a copy of this Agreement, signing it manually and returning it to the Company and, if your subscription is accepted, the Company will manually countersign it and return a countersigned copy to you via email.

**4.11 <u>Consent to Electronic Delivery of Tax Documents</u>**. Please read this disclosure about how the Company will provide certain documents that it is required by the Internal Revenue Service (the "**IRS**") to send to you (the "**Tax Documents**") in connection with your Class A Interests. Tax Documents provide important information you need to complete your tax returns. Tax Documents include Form 1099 and/or Form K-1. Occasionally, the Company is required to send you CORRECTED Tax Documents. Additionally, the Company may include inserts with your Tax Documents. The Company is required to send Tax Documents to you in writing, which means in paper form. When you consent to electronic delivery of your Tax Documents, you will be consenting to delivery of Tax Documents,

including corrected Tax Documents and inserts, electronically instead of in paper form. By executing this Subscription Agreement on the Platform, you are consenting in the affirmative that the Company may send Tax Documents to you electronically and acknowledging that you are able to access Tax Documents from the site. If you subsequently withdraw consent to receive Tax Documents electronically, a paper copy will be provided. Your consent to receive the Tax Documents electronically continues for every tax year until you withdraw your consent. You can withdraw your consent before the Tax Documents are furnished by mailing a letter including your name, mailing address, effective tax year, and indicating your intent to withdraw consent to the electronic delivery of Tax Documents to the Company at:

XIV-I INVEST 1, LLC

5784 Lake Forrest Dr, Suite 209

Sandy Springs, GA 30328

If you withdraw consent to receive Tax Documents electronically, a paper copy will be provided. You must keep your e-mail address current with the Company. You must promptly notify the Company of a change of your email address. If your mailing address, email address, telephone number or other contact information changes, you may also provide updated information by contacting the Company.

**4.12 <u>Electronic Delivery of Information</u>**. Subscriber and the Company each hereby agree that all current and future notices, confirmations and other communications regarding this Subscription Agreement, the Operating Agreement and future communications in general between the parties, may be made by email, sent to the email address of record as set forth in this Subscription Agreement 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 (i) such communications being diverted to the recipients spam filters by the recipients email service provider, (ii) due to a recipient's change of address, or (iii) 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.

**XIV-I INVEST 1, LLC<br> SUBSCRIPTION AGREEMENT SIGNATURE PAGE**

**IN WITNESS WHEREOF**, Subscriber or its duly authorized representative has executed and delivered this Subscription Agreement by signing or clicking "**I Agree**" and has delivered the Purchase Price as of the date set forth above.

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| |
|:---|
| &nbsp;&nbsp; Name of Subscriber: |
| &nbsp;&nbsp;Social Security Number or Taxpayer ID Number: |
| &nbsp;&nbsp;Date: |

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| | |
|:---|:---|
| &nbsp;&nbsp;Aggregate Purchase Price (based on a price of $10.00 per Class A Interest $______ | &nbsp;&nbsp;$|
|  | &nbsp;&nbsp;(enter total Purchase Price in USD) |

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| | | |
|:---|:---|:---|
| <br> **ADDRESS**: | <br> **ADDRESS**: | <br> **ADDRESS**: |
| &nbsp;&nbsp;Street |  |  |
| &nbsp;&nbsp;City | &nbsp;&nbsp;State | &nbsp;&nbsp;Zip |
| &nbsp;&nbsp;Telephone |  |  |
| &nbsp;&nbsp;Email |  |  |

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**XIV-I INVEST 1, LLC**

**SUBSCRIPTION AGREEMENT SIGNATURE PAGE (CONTINUED)**

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| |
|:---|
| &nbsp;&nbsp; **ACCEPTED AND AGREED TO**: |
| &nbsp;&nbsp; **XIV-I INVEST 1, LLC**<br> a Delaware limited liability company |
| &nbsp;&nbsp; By XIV-I Manager LLC, its Manager |
| &nbsp;&nbsp;By: _____________________________________ |
| &nbsp;&nbsp;Name: Monica Poole, its Manager |

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## Ex1A-8

**ESCROW AGREEMENT**

This Escrow Agreement (this "**Agreement**"), effective as of the effective date set forth on the signature page hereto ("**Effective Date**"), is entered into by the following:

&nbsp;&nbsp;&nbsp;&nbsp;i. the issuer set forth on the signature page hereto ()"**Issuer** "); and

&nbsp;&nbsp;&nbsp;&nbsp;ii. the broker-dealer for Issuer's offering set forth on the signature page hereto ()"**Manager** "); and

&nbsp;&nbsp;&nbsp;&nbsp;iii. North Capital Private Securities Corporation, a Delaware corporation, as the facilitator of escrow as set forth herein through
the institution in Section 1(d) below as escrow agent ()"**NCPS** ").

For purposes of this Agreement: (a) the above parties other than and excluding NCPS are referred to herein as "**Issuer Party**"; (b) references to "**Issuer Party**" in this Agreement shall include references to each Issuer Party individually, together and collectively, jointly and severally; and (c) Issuer Party, collectively with NCPS, are referred to herein as the "**Parties**" and each, a "**Party**".

The following Exhibits are incorporated by reference into this Agreement:

<u>Exhibit A</u> – Contingent Offering (if applicable)

<u>Exhibit B</u> – Fees and Expenses

**<u>Recitals</u>**

A. NCPS is a broker-dealer registered with the U.S. Securities and Exchange Commission ("**SEC**") and a member of the Financial Industry Regulatory Authority, Inc. ("**FINRA**") and the Securities Investor Protection Corporation ("**SPIC**").

B. Issuer Party is engaging NCPS to serve as the facilitator of escrow as set forth herein through the institution in Section 1(d) below as escrow agent in connection with Issuer's sale of debt, equity or hybrid securities ("**Securities**") in an offering exempt from registration under the U.S. Securities Act of 1933, as amended ("**Securities Act**"), pursuant to Rule 506(b) of Regulation D, 506(c) of Regulation D, Regulation A or Regulation Crowdfunding, as indicated on the signature page hereto ("**Offering**").

C. In accordance with the private placement memorandum, offering memorandum, Form 1- A or Form C applicable to the Offering provided by Issuer Party for disseminations to investors in connection with the Offering ("**Offering Document**"), subscribers to the Securities ("**Subscribers**") will be required to submit full payment for their respective investments at the time they enter into subscription agreements.

D. In accordance with the Offering Document, all payments by Subscribers subscribing for Securities shall be sent directly to NCPS as the facilitator of escrow as set forth herein through the institution in Section 1(d) below as escrow agent, and NCPS by this Agreement agrees to accept, hold and promptly disburse or transmit such funds deposited

with it with respect thereto ("**Escrow Funds**") in accordance with the terms of this Agreement and in compliance with Rule 15c2-4 of the U.S. Securities Exchange Act of 1934, as amended ("**Exchange Act**"), and in the case of an Offering pursuant to Regulation Crowdfunding, Regulation Crowdfunding Rule 303(e), as applicable, and related SEC guidance and FINRA rules.

E. If the Offering is being made by Issuer on an "all-or-once" basis or on any other basis that contemplates payments to be made to Issuer only upon the occurrence of some further event or contingency as set forth in <u>Exhibit A</u>, as applicable, NCPS will promptly deposit any and all Escrow Funds NCPS receives into a separate bank escrow account as set forth in <u>Section 1(d)</u> below, for the persons or entities with a beneficial interest therein, until the appropriate event or contingency has occurred, at which time the Escrow Funds will be promptly transmitted to Issuer, else promptly returned to the persons or entities entitled thereto pursuant to <u>Section 3</u> and <u>4</u> below.

F. NCPS will be a participant in the Offering for the limited purpose of facilitating escrow described in this Agreement, and if required by an Offering pursuant to Regulation Crowdfunding, NCPS will be the "qualified third party", as defined in Regulation Crowdfunding Rule 303(e)(2). NCPS accepts no other role and assumes no other responsibilities related to the Offering, such as managing broker-dealer, placement agent, selling group member or referring broker-dealer, unless and until the roles and responsibilities are expressly delineated in a separately executed placement, managing broker, selling or referral agreement, as the case may be, if any.

In consideration of the mutual representations, warranties and covenants contained in this Agreement, the Parties, intending to incorporate the foregoing Recitals into this Agreement and to be legally bound, agree as follows:

**<u>Agreement</u>**

1. **Definitions.** Capitalized terms used in this Agreement and not otherwise defined above or elsewhere in this Agreement shall have the meanings as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**ACH**" means Automated Clearing House.

(b) "**Business Day**" means a calendar day other than Saturday, Sunday or any public holiday when banks are closed for business in Delaware, Pennsylvania or Utah.

(c) "**Cash Investment**" means an amount in US Dollars equal to (i) the number of Securities to be purchased by a Subscriber, multiplied by (ii) the offering price per Security as set forth in the Offering Document.

(d) "**Cash Investment Instrument**" means, in full payment of the Cash Investment for the Securities to be purchased by a Subscriber, a check, money order or similar instrument made payable by Subscriber to the order of or endorsed to the order of:

NCPS/<u>XIV-I Invest 1, LLC /</u> - Escrow Account

(Offering Name\*) (Subscriber Name\*\*)

or wire transfer or ACH transmitted by Subscriber to the following account ("**Escrow Account**"):

Institution: TriState Capital Bank

ABA: 043019003

Account Name: North Capital Private Securities Corporation

Account Number: 0220003339

For Further Credit To: <u>XIV-I Invest 1, LLC</u>

(Offering Name\*)

(Subscriber Name\*\*)

or, if applicable to the Offering, funds transmission by credit or debit card or ACH through and subject to the terms and conditions of NCPS's payment processing facilitation services.

\*Offering Name as set forth on the signature page hereto.

\*\*Subscriber Name as completed by Subscriber.

(e) "**Expiration Date**" means 12 months from the Effective Date, unless mutually extended by the Parties in writing (which may be via email).

(f) "**Instruction Letter**" means written instructions in a form acceptable to NCPS and executed by Issuer Party with Issuer Party directing NCPS to promptly disburse the Escrow Funds to Issuer pursuant to <u>Section 4(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Minimum Offering**" has the meaning set forth on the signature page hereto.

(h) "**Minimum Offering Notice**" means, if applicable to an Offering, a written notification in a form acceptable to NCPS and signed by Issuer Party with Issuer Party representing to NCPS that: (i) subscriptions for at least the Minimum Offering have been received by Issuer; (ii) to the best of Issuer Party's knowledge after due inquiry and review of Issuer Party's records, Cash Investment Instruments in full payment for that number of Securities equal to or greater than the Minimum Offering have been received, deposited with and collected by NCPS; (iii) such subscriptions have not been withdrawn, rejected or otherwise terminated; and (iv) Subscribers have no statutory or regulatory rights of rescission without cause or all such rights have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**NACHA**" means National Automated Clearing House Association.

(j) "**Subscription Accounting**" means an accounting of all subscriptions for Securities received and accepted by Issuer Party as of the date of such accounting, indicating for each subscription Subscriber's name and address, the number and

total purchase price of subscribed Securities, the date of receipt by Issuer of the Cash Investment Instrument and notations of any nonpayment of the Cash Investment Instrument submitted with such subscription, any withdrawal of such subscription by Subscriber, any rejection of such subscription by Issuer Party or other termination, for whatever reason, of such subscription.

2. **Appointment of Facilitator of Escrow.** Issuer Party hereby appoints NCPS to serve as the facilitator of escrow as set forth herein through the institution in Section 1(d) as escrow agent, and NCPS hereby accepts such appointment, in accordance with the terms of this Agreement. Issuer Party shall take all necessary steps to assure that all funds necessary to consummate the Transaction are deposited into the Escrow Account. Issuer Party shall not receive interest on the Escrow Funds and the Escrow Account shall be a non-interest bearing account as to Issuer Party.

3. **Deposits into Escrow 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;(a) Issuer Party shall direct Subscribers to, and Subscribers shall, directly deliver to NCPS all Cash Investment Instruments for deposit in the Escrow Account. Each such direction shall be accompanied by a Subscription Accounting.

ALL FUNDS DEPOSITED INTO THE ESCROW ACCOUNT PURSUANT TO THIS <u>SECTION 3</u> SHALL REMAIN THE PROPERTY OF EACH SUBSCRIBER ACCORDING TO SUCH SUBSCRIBER'S INTEREST AND SHALL NOT BE SUBJECT TO ANY LIEN OR CHARGE BY NCPS OR BY JUDGEMENT OR CREDITORS' CLAIMS AGAINST ISSUER PARTY UNTIL RELEASED OR ELIGIBLE TO BE REVEALED TO ISSUER IN ACCORDANCE WITH <u>SECTION 4(a)</u>. ISSUER PARTY SHALL NOT RECEIVE CASH INVESTMENT INSTRUMENTS DIRECTLY FROM 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;(b) Issuer Party understands and agrees that all Cash Investment Instruments received by NCPS pursuant to this Agreement are subject to collection requirements of presentment, clearing and final payment, and that the funds represented thereby cannot be drawn upon or disbursed until such time as final payment has been made and is no longer subject to dishonor. NCPS shall process each Cash Investment Instrument for collection promptly upon receipt, and the proceeds thereof shall be held as part of the Escrow Funds until disbursed in accordance with <u>Section 4</u>. If, upon presentment for payment, any Cash Investment Instrument is dishonored, NCPS's sole obligation shall be to notify Issuer Party of such dishonor and, if applicable, to promptly return such Cash Investment Instrument to Subscriber. Notwithstanding, if for any reason any Cash Investment Instrument is uncollectible after payment or disbursement of the funds represented thereby has been made by NCPS, Issuer Party shall immediately reimburse NCPS upon receipt from NCPS of written notice thereof, including, without limitation, any fees or expenses with respect thereto, which NCPS may collect from Issuer Party pursuant to <u>Section 10</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;(c) Upon receipt of any Cash Investment that represents payment of an amount less than or greater than the Cash Investment, NCPS's sole obligation shall be to notify Issuer Party, depending upon the source of the Cash Investment Instrument, of such fact and to

pay to Subscriber by the same method the amount of the Cash Investment received by NCPS from such Subscriber or promptly return to Subscriber such Subscriber's Cash Investment Instrument upon receipt from Subscriber of any required payment instructions; provided that amounts in excess of $25,000 will be returned via wire transfer upon confirmation by NCPS of Subscriber's account information.

&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) NCPS shall not be obligated to accept, or present for payment, any Cash Investment Instrument that is not properly made payable or endorsed as set forth in <u>Section 1(d)</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;(e) Issuer Party shall, or cause Subscriber to, provide NCPS with information sufficient to effect such return to Subscriber as outlined in this <u>Section3</u>, including, without limitation, updated payment information in the event a return to Subscriber for any reason cannot be made by the same method as received by NCPS.

&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) In the event any party other than NCPS receives a Cash Investment Instrument, Issuer Party agrees to promptly, and in no event later than one Business Day after receipt, deliver or cause to be delivered such Cash Investment Instrument to NCPS for deposit into the Escrow Account.

4. **Disbursement of Escrow Funds.**

&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) Subject to <u>Section 3(b)</u> and <u>Section 10</u>, NCPS shall promptly disburse in accordance with the Instruction Letter the liquidated value of the Escrow Funds from the Escrow Account to Issuer by wire transfer no later than one Business Day following receipt of the following 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Minimum Offering Notice;

(ii) Subscription Accounting substantiating the fulfillment of the Minimum 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Instruction Letter; and

(iv) such other certificates, notices or other documents as NCPS may reasonably require;

provided that NCPS shall not be obligated to disburse the liquidated value of the Escrow Funds to Issuer if NCPS has reason to believe that (A) Cash Investment Instruments in full payment for that number of Securities equal to or greater than the Minimum Offering have not been received, deposited with and collected by NCPS, or (B) any of the information or the certifications, representations, warranties or opinions set forth in the Minimum Offering Notice, Subscription Accounting, Instruction Letter or other certificates, notices or other documents are incorrect or incomplete. After the initial disbursement of Escrow Funds to Issuer pursuant to this <u>Section 4(a)</u>, NCPS shall promptly disburse any additional funds received with respect to the Securities to Issuer by wire transfer no later than one Business Day after NCPS receives from or on behalf

of Issuer (1) Issuer's request for closing via NCPS's online portal and (2) Issuer's written verification that the subscriptions therefor are in good order.

*Any ACH transaction must comply with all applicable laws, rules, regulations, codes and orders of applicable governmental, regulatory, judicial and law enforcement authorities and self-regulatory authorities (collectively, "**Law**"), including, without limitation, NACHA's operating rules that apply to the ACH network as in effect from time to time. NCPS is not responsible for errors in the completion, accuracy or timeliness of any transfer properly initiated by NCPS in accordance with joint written instructions occasioned by the acts or omissions of any third party financial institution or a party to the transaction, or the insufficiency or lack of availability of funds on deposit in any 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;(b) No later than three Business Days after receipt from Subscriber of any required payment instructions and receipt by NCPS of written notice: (i) from Issuer Party that Issuer Party intends to reject a Subscriber's subscription; (ii) from Issuer Party that there will be no closing of the sale of Securities to Subscribers; (iii) from any federal or state regulatory authority that any application by Issuer to conduct a banking business has been denied; or (iv) from the SEC or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least 20 days, NCPS shall pay to each Subscriber by the same method the amount of the Cash Investment received by NCPS from such Subscriber or promptly return to Subscriber such Subscriber's Cash Investment Instrument; provided that amounts in excess of $25,000 will be returned via wire transfer upon confirmation by NCPS of Subscriber's account information.

&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) Notwithstanding anything to the contrary contained herein, if NCPS shall not have received an Instruction Letter on or before the Expiration Date or the Termination Date (as defined below), subject to <u>Section 5</u>, NCPS shall, within three Business Days after such Expiration Date or Termination Date and receipt from Subscriber of any required payment instructions, and without any further instruction or direction from Issuer Party, pay to each Subscriber or promptly return to Subscriber such Subscriber's Cash Investment Instrument; provided that amounts in excess of $25,000 will be returned via wire transfer upon confirmation by NCPS of Subscriber's account information.

&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) Issuer Party shall, or cause Subscriber to, provide NCPS with information sufficient to effect such payment or return to Subscriber as outlined in this <u>Section 4</u>, including, without limitation, updated payment information in the event a payment or return to Subscriber for any reason cannot be made by the same method as received by NCPS.

5. **Suspension of Performance or Disbursement Into Court.** If, at any time, (a) there shall exist any dispute between Issuer Party, NCPS, and Subscriber or any other person with respect to the holding or disposition of all or any portion of the Escrow Funds or any other obligations of NCPS hereunder, or (b) NCPS is unable to determine, to NCPS's reasonable satisfaction, the proper disposition of all or any portion of the Escrow Funds or NCPS's proper actions with respect to its obligations hereunder, or (c) Issuer Party has not within 30 days of NCPS's notice of resignation pursuant to <u>Section 7</u> appointed a successor provider of escrow services or agent to act hereunder, then NCPS may, in its reasonable discretion, take either or both on the

following actions: (i) suspend the performance of any of its obligations (including, without limitation, any disbursement obligations) under this Agreement until such dispute or uncertainty shall be resolved to the sole satisfaction of NCPS or until a successor provider of escrow services or agent shall have been appointed (as the case may be); or (ii) petition (by means of an interpleader action or any other appropriate method) any court of competent jurisdiction in any venue convenient to NCPS, for instructions with respect to such dispute or uncertainty, and to the extent required or permitted by Law, pay into such court all funds held by it in the Escrow Funds for holding and disposition in accordance with the instructions of such court. NCPS shall have no liability to Issuer Party, any Subscriber or any other person with respect to any such suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of the Escrow Funds or any delay in or with respect to any other action required or requested of NCPS.

6. **No Commingling, Investment of Funds or Interest to Issuer Party.** NCPS shall not: (a) commingle Escrow Funds received by it in escrow with funds of others that are not Escrow Funds, including funds received by NCPS in escrow in connection with any other offering of debt, equity or hybrid securities; or (b) invest such Escrow Funds. The Escrow Funds will be held in the Escrow Account, which shall not accrue interest in favor of Issuer Party or any Subscriber.

7. **Resignation of NCPS**. NCPS may resign and be discharged from the performance of its duties hereunder at any time by giving 10 days prior written notice to Issuer Party specifying date when such resignation shall take effect. Upon any such notice of resignation, Issuer Party shall appoint a successor provider of escrow services or agent hereunder prior to the effective date of such resignation. NCPS shall transmit all records pertaining to the Escrow Funds and shall pay all Escrow Funds to the successor provider of escrow services or agent, after making copies of such records as NCPS deems advisable. After any NCPS's resignation, the provisions of this Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the facilitator of escrow under this Agreement.

8. **Role of NCPS as Facilitator of Escrow**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) NCPS's sole responsibility as a participant in the Offering under this Agreement is as the facilitator of escrow as set forth herein through the institution in Section 1(d) as escrow agent to facilitate the safekeeping with, and disbursement by, the escrow agent of the Escrow Funds, in accordance with the terms hereto. NCPS shall have no implied duties or obligations and shall not be charged with knowledge or notice of any fact or circumstance not specifically set forth herein. NCPS may rely upon any notice, instruction, request or other instrument, not only as to its due execution, validity and effectiveness, but not be genuine and to have been signed or presented by the person or parties purporting to sign the same. NCPS shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines by final un-appealed or non-appealable order to pursuant to <u>Section 20(a)</u> that NCPS's fraud or gross negligence was the primary cause of any Losses (as defined below) to Issuer Party ("**Ineligible Losses**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) NCPS shall not be obligated to take any legal action or commence any proceeding in connection with the Escrow Funds, any account in which Escrow Funds are deposited, in this Agreement or the Offering Document, or to appear in, prosecute or defend any such legal action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) NCPS shall have no liability under and no duty to inquire as to the provisions of any agreement other than this Agreement, including, without limitation, the Offering Document. Without limiting the generality of the foregoing, NCPS shall not be responsible for or required to enforce any of the terms or conditions of any subscription agreement with any Subscriber or any other agreement between Issuer Party of any Subscriber. NCPS shall not be responsible or liable in any manner for the performance by Issuer or any Subscriber of their respective obligations under any subscription agreement nor shall NCPS be responsible or liable in any manner for the failure of Issuer Party or any third party (including any Subscriber) to honor any of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) NCPS is authorized, in its sole discretion, to comply with orders issued or process entered by any court with respect to the Escrow Funds, without determination by NCPS of such court's jurisdiction in the matter. If any portion of the Escrow Funds is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgement or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event, NCPS is authorized, in its reasonable discretion, to rely upon and comply with any such order, writ, judgement or decree which it is advised by legal counsel selected by it is binding upon it without the need for appeal or other action; and if NCPS complies with any such order, writ, judgement or decree, it shall not be liable to any of the parties hereto or to any other person or entity by reason of such compliance even though such order, writ, judgement or decree may be subsequently reversed, modified, annulled, set aside or vacated. Notwithstanding the foregoing, to the extent legally permissible, NCPS shall provide Issuer Party with prompt notice of any such court order or similar demand and the opportunity to interpose an objection or obtain a protective order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) NCPS may consult with legal counsel selected by it in the event of any dispute or question as to the construction of any of the provisions hereof or of any other agreement or of its duties hereunder, or relating to any dispute involving any party hereto, and shall incur no liability and shall be fully indemnified from any liability whatsoever in acting in accordance with the opinion or instruction of such counsel. Issuer Party shall promptly pay, upon demand, the fees and expenses of any such counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) By this Agreement, Subscribers are not customers of NCPS and NCPS shall have no obligation to determine a Subscriber's suitability to participate in the Offering whether the Offering complies with Law, verify a Subscriber's identity or perform anti-money laundering, know your customer or other due diligence, such responsibilities being obligations of Issuer Party or Issuer Party's agents. Notwithstanding, NCPS may ask Issuer Party to provide, and Issuer Party shall provide promptly upon NCPS's request, certain information about Subscribers, including, but not limited to, name, physical address, tax identification number, organizational documents, certificates of good standing, financial statements, licenses to do business and other

information that will help NCPS to identify and verify a Subscriber's identity. Any further participation by NCPS in the Offering (if any) other than to facilitate escrow as set forth in this Agreement shall be governed by separate agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) NCPS makes no representation, warranty or covenant as to the compliance of any transaction related to the escrow with any Law. NCPS shall not be responsible for the application or use of any funds released from the Escrow Account pursuant to this Agreement.

9. **Indemnification of NCPS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Issuer Party (including Issuer Party's affiliates, collectively, the "**Indemnifying Party**") agrees (and agrees to cause the other Indemnifying Parties) jointly and severally and at their own cost and expense to release, indemnify, defend and hold harmless NCPS and its affiliates and their respective directors, officers, employees, agents, representatives, advisors and consultants, and their respective successors and assigns (each, an "**NCPS Parties**"), to the fullest extent permitted by Law, from and against (and no NCPS Party shall be liable for) any Losses, joint or several, in connection with all actions (including equity owner actions), claims, disputes, inquiries, indemnification, proceedings, investigations and other legal process regardless of the source (collectively, "**Actions**") arising out of or relating to the offering of securities, this Agreement, the provision of NCPS's services hereunder or the engagement of NCPS hereunder (including, without limitation, any breach or alleged breach of this Agreement or any representation, warranty or covenant herein, any breach or alleged breach of Law or any rejection of a Cash Investment, or the suspension of performance or disbursement into court pursuant to <u>Section 5</u>), and will reimburse NCPS Parties for all expenses (including attorneys' fees) as they are incurred by NCPS Parties in connection with investigating, preparing, defending or appearing as a third party witness in connection with any such Action whether or not related to a pending or threatened Action in which NCPS is a party. Notwithstanding, Issuer Party will not be responsible for any Inteligible Losses, and NCPS agrees to immediately refund any indemnification payments made to an NCPS Party upon such determination. "**Losses**" means any and all losses, damages, liabilities, deficiencies, claims, actions, judgements, settlements, interest, awards, penalties, fines, costs or expense of whatever kind, including, without limitation, reasonable attorneys' fees, the costs of enforcing any right hereunder, the costs of pursuing any insurance providers, the costs of collection and the costs of defending against or appearing as a witness, whether direct, indirect, consequential or otherwise. Indemnifying Parties shall pay to NCPS Parties all amounts due under this <u>Section 9</u> promptly after written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event NCPS performs any service not specifically provided hereinabove, or that there is any assignment or attachment of any interest in the subject matter of this escrow or any modification thereof, or that any controversy arises hereunder, or that NCPS is made a party to, or intervenes in, any dispute pertaining to this escrow or the subject matter hereof, NCPS shall be reasonably compensated therefor and reimbursed for all costs and expenses occasioned thereby; and Issuer Party hereto agree jointly and severally to pay the same and to jointly and severally and at their own cost and expense release, indemnify, defend and hold harmless the NCPS Parties pursuant to subsection (a) above, it being understood and agreed that NCPS may

interplead the subject matter of this escrow into any court of competent jurisdiction, and the act of such interpleader shall immediately relieve NCPS of any duties, liabilities or responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the sole purpose of enforcing and otherwise giving effect to the provisions of this <u>Section 9</u>, Issuer Party hereby consents to personal jurisdiction and service and venue in any court in which any claim that is subject to this Agreement is brought against any NCPS Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If an Action is commenced or threatened and is ultimately settled, Issuer Party shall use its best efforts to cause NCPS, by name, and the other NCPS Parties, by description, to be included in any release or settlement agreement, whether or not NCPS and other NCPS Parties are named as defendants in such Action.

10. **Compensation to NCPS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Issuer Party shall pay or cause to be paid to NCPS for its services as the facilitator of escrow as outlined in <u>Exhibit B</u>, which may be updated from time to time by NCPS by providing written notice to Issuer Party. Issuer Party's obligation to pay such fees to NCPS and reimburse NCPS for such expenses is not conditioned upon a successful closing. Upon Issuer's Party request, NCPS will provide Issuer Party with copies of all relevant invoices, receipts or other evidence of such expenses. The obligations of Issuer Party under this <u>Section 10</u> shall survive any termination of this Agreement and the resignation or removal of NCPS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the compensation and reimbursement obligations shall be payable by Issuer Party upon demand by NCPS and will be charged automatically by NCPS to the credit card or other payment method indicated on the signature page to this Agreement or as otherwise agreed by the Parties. Issuer Party consents to NCPS retaining and using Issuer Party's payment information for future invoices and as provided in this Agreement. Issuer Party agrees and acknowledges that NCPS and its third party vendors may retain and use Issuer Party's payment information to facilitate the payments provided for in this Agreement. Issuer Party agrees to provide NCPS written notice (which may be via email) of any update or changes to Issuer Party's payment information. Absent current payment information, Issuer Party shall make, or cause to be made, all payments to NCPS within 10 days of receiving an invoice therefor. All payments made to NCPS shall be in US dollars in immediately available funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Issuer Party fails to make any payment when due then, in addition to all other remedies that may be available: (a) NCPS may change interest on the past due amount at the rate of 1.5% per month, calculated daily and compounded monthly, or if lower, the highest rate permitted under Law, which Issuer Party shall pay; such interest may accrue after as well as before any judgement relating to collection of the amount due; and (b) Issuer Party shall reimburse, or cause to be reimbursed, NCPS for all costs incurred by NCPS in collecting any late payments or interest, including attorneys' fees, court costs and collection agency fees; provided that cumulative late payments are subject to the overall limits as may be required by Law as set forth in <u>Exhibit B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Only upon the fulfillment of the Minimum Offering, and only when Escrowed Funds are released or eligible to be released to Issuer in accordance with <u>Section 4(a)</u>, and

otherwise in compliance with Law, NCPS is authorized to and may disburse from time to time, to itself or to any NCPS Party from the Escrow Funds (but only to the extent of Issuer's rights thereto), the amount of any compensation and reimbursement of out-of-pocket expenses due and payable hereunder (including any amount to which NCPS or any NCPS Party is entitled to seek indemnification pursuant to <u>Section 9</u> hereof). NCPS shall notify Issuer Party of any disbursement from the Escrow Funds to itself or to any NCPS Party in respect of any compensation or reimbursement hereunder and shall furnish to Issuer copies of all related invoices and other statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Only upon the fulfillment of the Minimum Offering, and only when Escrowed Funds are released or eligible to be released to Issuer in accordance with <u>Section 4(a)</u>, and otherwise in compliance with Law, Issuer shall grant to NCPS and the NCPS Parties a security interest in and lien upon such Escrow Funds (but only to the extent of Issuer's rights thereto) to secure all obligations hereunder, and NCPS and the NCPS Parties shall have the right to offset the amount of any compensation or reimbursement due any of them hereunder (including any claim for indemnification pursuant to <u>Section 9</u> hereof) against the Escrow Funds (but only to the extent of Issuer's rights thereto). If for any reason the Escrow Funds available to NCPS and the NCPS Parties pursuant to such security interest or right of offsets are insufficient to cover such compensation and reimbursement, Issuer Party shall promptly pay such amounts to NCPS and the NCPS Parties upon receipt of an itemized invoice.

11. **Representations and Warranties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Issuer Party jointly and severally represents, warrants and covenants to NCPS as of the Effective Date and at all times during the Term, including, without limitation, at the time of any deposit to or disbursement from the Escrow Funds:

&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) Issuer Party is an entity duly organized, validity existing and in good standing under the laws of the state where it was formed. Issuer Party has all requisite power and authority to own those properties and conduct those businesses presently owned or conducted by it. Issuer Party is duly qualified and properly licensed and registered to do business and is in good standing in all jurisdictions in which its ownership of property or the character of its business requires such qualification, licensure or registration, except where the failure to so qualify would not have a material adverse effect on Issuer Party or Issuer Party's business.

&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) Manager is a broker-dealer registered with the SEC and a member of FINRA and SIPC. Manager has implemented, and complies with, a written know-your-customer (KYC) and anti-money laundering (AML) compliance program reasonably designed to comply with the applicable requirements of the USA PATRIOT Act and Bank Secrecy Act and the implementing regulations promulgated thereunder, including policies that could be reasonably expected to detect and cause the reporting of suspicious transactions ("**Requirements**"). Manager maintains in its files documentation supporting these representations and warranties as required by the Requirements, and shall make such information available to NCPS upon reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Issuer Party has full power and authority to enter into and perform this Agreement. This Agreement has been duly executed by Issuer Party and constitutes and legal, valid, binding, and enforceable obligation of Issuer Party, enforceable against Issuer Party in accordance with its terms. The execution, delivery and performance of this Agreement does not and will not: (A) conflict with or violate any of the terms of any organizational or governance document, stakeholder agreement, any court order or administrative ruling or decree to which it is a party or any of its property is subject, any agreement, contract, indenture, or other binding arrangement to which it is a party or any of its property is subject or any Law; or (B) conflict with, or result in a breach or termination of any of the terms of, or result in the acceleration of any indebtedness or obligations under, any agreement, obligation or instrument by which Issuer is bound or to which any property of Issuer Party is subject, or constitute a default thereunder. The execution, delivery and performance of this Agreement is consistent with and accurately described in the Offering Document as set forth in <u>Section 4(b)</u> and <u>Section 4(c)</u> and has been properly described therein.

&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) Issuer Party acknowledges that the status of NCPS is that of agent only for the limited purposes set forth herein to facilitate escrow as set forth herein through the institution in Section 1(d) as escrow agent, and if required by an Offering pursuant to Regulation Crowdfunding, NCPS will be the "qualified third party", as defined in Regulation Crowdfunding Rule 303(e)(2), and hereby represents and covenants that no representation or implication shall be made that NCPS has investigated and desirability or advisability of investment in the Securities or has approved, endorsed or passed upon the merits of the investment therein and that the name of NCPS has not and shall not be used in any manner in connection with the offer or sale of the Securities other than to state that NCPS has agreed to serve as the facilitator of escrow for the limited purposes set forth herein. Issuer Party shall comply with all Law in connection with the offering of the Securities. By this Agreement, NCPS accepts no other role and assumes no other responsibilities related to the Offering, including, without limitation, managing broker-dealer, placement agent, selling group member of referring 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;(v) Issuer Party has the obligation to, and shall, determine a Subscriber's suitability to participate in the Offering, make sure the Offering complies with Law and the Offering Document, verify Subscriber's identity and perform anti-money laundering, know your customer and any other due diligence in connection with the transactions contemplated by the Offering. The Offering and any offer or sale in the Offering compiles with or is exempt from all applicable registrations or qualification requirements, including, without limitation, those of the SEC or state securities regulatory authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) No person or entity other than the Parties and the prospective Subscribers have, or shall have, any lien, claim or security interest in the Escrow Funds or any part thereof. No financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing (whether specifically or generally) the Escrow Funds or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Any deposit with NCPS by NCPS and/or Issuer Party of Cash Investment Instruments pursuant to <u>Section 3</u> shall be deemed a representation and warranty by Issuer Party

that such Cash Investment Instrument represents a bona fide sale to such Subscriber of the amount of Securities set forth therein in accordance with the terms of the Offering Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) In the event Issuer is a Series LLC and/or a series of a Series LLC, Issuer Party shall allocate and/or cause to be allocated any disbursement of Escrow Funds under this Agreement to the appropriate series, and perform any reporting and sub-accounting, all as required by and in compliance with Law and the Offering Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) To the extent Issuer Party will be sharing personal or financial information of a third party with NCPS in connection with this Agreement, Issuer Party shall maintain and obtain the agreement of each such third party, which shall permit the sharing of such third party's information with NCPS and its affiliates and service providers for NCPS and its affiliates and service providers to use, disclose and retain it in connection with this Agreement and the provision of the services hereunder and as required by Law. NCPS shall be a third party beneficiary to such 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;(x) Issuer Party's representations, warranties and covenants are continuing and deemed to be reaffirmed each time Issuer Party provides NCPS with any instructions in connection with the Escrow Account. Issuer Party shall immediately notify NCPS if any representation, warranty or covenant ceases to be true, correct, accurate and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Issuer Party shall provide NCPS with immediate notice of any Action (as defined above), threatened Action or facts or circumstances that could lead to any Action involving Issuer Party, its agents or the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) NCPS represents, warrants and covenants to Issuer Party as of the Effective Date and at all times during the Term, including, without limitation, at the time of any deposit to or disbursement from the Escrow Funds:

&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) NCPS is an entity duly organized, validly existing and in good standing under the laws of the State of Delaware. NCPS is a broker-dealer registered with the SEC and a member of FINRA and SIPC.

&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) NCPS has full power and authority to enter into and perform this Agreement. This Agreement has been duly executed by NCPS and constitutes and legal, valid, binding, and enforceable obligation of NCPS, enforceable against NCPS in accordance with its terms.

&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) NCPS's representations, warranties and covenants are continuing and deemed to be reaffirmed each time Issuer Party provides NCPS with any instructions in connection with the Escrow Account. NCPS shall promptly notify Issuer Party if any representation, warranty or covenant ceases to be true, correct, accurate and complete.

12. **Disclaimer of Advice.** Issuer Party is NCPS's sole customer pursuant to this Agreement. By this Agreement, NCPS is not undertaking to provide any recommendations or advice to any party, including any Subscriber who may be a retail investor, in connection with any offering of

securities, NCPS's engagement hereunder or its provision of the services contemplated by this Agreement (including, without limitation, business, investment, solicitation, legal, accounting, regulatory or tax advice). Issuer Party understands that it will be solely responsible for ensuring that any offering and any sale of securities compiles with all Law. Issuer Party acknowledges and agrees that it will rely on its own judgement in using NCPS's services.

13. **Survival.** Notwithstanding the expiration or termination of this Agreement or the resignation or removal of NCPS as the facilitator of escrow, the Parties shall continue to be bound by the provisions of this Agreement that reasonably require some action of forbearance (or are required to implement such action or forbearance) after such expiration or termination, including, but not limited to, those related to fees and expenses, indemnities, limitations of and exclusions to NCPS's liability, warranties, choice of law, jurisdiction and dispute resolution and such provisions shall remain operative and in full force and effect and shall survive any disbursement of Escrow Funds and the expiration or termination of this Agreement. Except as the context otherwise requires, all representations, warranties and covenants during the Term, and such representations, warranties and covenants shall remain operative and in full force and effect and shall survive the sale of, and payment for, the securities and the expiration or termination of this Agreement to the extent required for the enforcement thereof.

14 **Assignment.** Except as provided in <u>Section 17</u>, no Party shall assign or otherwise transfer any of its rights, or delegate or otherwise transfer any of its obligations or performance, under this Agreement, in each case whether voluntarily, involuntarily, by operation of law or contract or otherwise, without each other Party's prior written consent; provided NCPS may assign or otherwise transfer its rights, or delegate or otherwise transfer its obligations or performance, under this Agreement pursuant to <u>Section 7</u> or to an affiliated provider of escrow services or agent without any other Party's consent. Any purported assignment, delegation or transfer in violation of this <u>Section 14</u> is void. Subject to this <u>Section 14</u>, this Agreement is binding upon and inures to the benefit of the Parties and their respective successors and permitted assigns irrespective of any changes with regard to the name of or the personnel of any Party.

15. **Entirety.** This Agreement incorporates by reference NCPS's and its affiliates' data privacy policies and website terms of use, as posted on NCPS's and its affiliates' website from time to time, with which Issuer Party shall, and shall cause issuers to, comply. This Agreement (including all exhibits, all schedules and NCPS's and its affiliates' data privacy policies and website terms of use) constitutes the sole and entire argument between the Parties with respect to the acceptance, collection, holding, investment and disbursement of the Escrow Funds and sets forth in their entirety the obligations and duties of NCPS with respect to the Escrow Funds and supersedes and merges all prior and contemporaneous proposals, understandings, agreements, representations and warranties, both written and oral, between the Parties relating to such subject matter.

16. **Amendment; Waiver.** Except as set forth in <u>Section 7</u>, <u>Section 14</u> and <u>Section 22</u>, no amendments to or modification of this Agreement will be effective unless it is in writing and signed by an authorized representative of each Party. No waiver by any Party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party so waiving. No failure to exercise, or delay in exercising, any rights, remedy, power or privilege

arising from this Agremeent shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

17. **Term and Termination.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of this Agreement commences as of the Effective Date and, unless terminated earlier pursuant to any of this Agreement's express provisions, will continue in effect until the first to occur of the final closing of the Offering and/or the disbursement of all amounts in the Escrow Funds or deposit of all amounts in the Escrow Funds into court pursuant to <u>Section 5</u> or <u>Section 8</u> hereof ("**Term**"), at which time this Agreement shall terminate and NCPS shall have no further obligation or liability whatsoever with respect to this Agreement or the Escrow Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding, NCPS may terminate this Agreement for cause immediately without notice to Issuer Party upon: (a) fraud, malfeasance or willful misconduct by Issuer Party or any of their affiliates; (b) conduct by Issuer Party or any of their affiliates that may jeopardize NCPS's current business, prospective business or professional reputation; (c) any material breach by Issuer Party of this Agreement if such breach is not cured within 10 days of receipt of written notice thereof (to the extent it can be cured), including, but not limited to, any failure to pay any amount under this Agreement when due; or (d) if Issuer Party ceases regular operations or files any petition or commences any case or proceeding under any provision of chapter of the Federal Bankruptcy Act, the Federal Bankruptcy Code, or any other federal or state law relating to insolvency, bankruptcy or reorganization; the adjudication that Issuer Party is insolvent or bankrupt or the entry of an order for relief under the Federal Bankruptcy Code with respect to Issuer; an assignment for the benefit of creditors; the convening by Issuer Party of a meeting of its creditors, or any class thereof, for purposes of effecting a moratorium upon or extension or composition of its debts; or the failure of Issuer Party generally to pay its debts on a timely basis. Any Party may terminate this Agreement for any other or no reason with 90 days' prior written notice to each other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No termination or expiration of this Agreement shall affect the ongoing obligations of Issuer Party to make payments to NCPS in accordance with the terms hereunder and such obligations shall survive. Amounts that would have become payable had this Agreement remained in effect until expiration of the Term will become immediately due and payable upon termination, and Issuer Party shall pay or shall cause to be paid such amounts, together with all previously-accrued but not yet paid fees, on receipt of NCPS's invoice therefor or as otherwise set forth in <u>Exhibit B</u>, <u>Section 9</u> or <u>Section 10</u>. In addition, Issuer Party shall remove any and all references to NCPS from any Offering Document, ceases use of NCPS intellectual property and no longer refer to NCPS in connection with the offering.

18. **Dealings.** NCPS and any stockholder, director, officer or employee of NCPS may buy, sell and deal in any of the securities of Issuer Party and become pecuniary interested in any transaction in which Issuer Party may be interested, and contract and lend money to Issuer and otherwise act as fully and freely as though it were not the facilitator of escrow under this

Agreement. Nothing herein shall preclude NCPS from acting in any other capacity for Issuer Party or any other entity.

19. **Compliance with Law; Further Assurances.** The Parties expressly agree that, to the extent that the existing law relating to this Agreement changes, and such change affects this Agreement, they will reform the affected portion of this Agreement to comply with the change. Each Party agrees to perform such further acts and execute such further documents as are necessary to effectuate the purposes of this Agreement.

20. **Choice of Law, Jurisdiction and Dispute Resolution.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by and construed under the laws of the State of Delaware, without giving effect to its choice of law, conflict of laws or "borrowing", statutes, rules, principles and precedent. The Parties irrevocably consent to the exclusive jurisdiction of the state and federal courts located in the State of Utah, County of Salt Lake.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party acknowledges and agrees that a breach or threatened breach by a Party of any of its obligations under this Agreement may cause any other Party irreparable harm for which monetary damages may not be an adequate remedy and agrees that, in the event of such breach or threatened breach, any other Party will be entitled to seek equitable relief, including a restraining order, an injunction, specific performance and any other relief that may be available from any court, without any requirement to post a bond or other security, or to prove actual damages or that monetary damages are not an adequate remedy. Such remedies and any other remedies set forth in this Agreement are not exclusive and are cumulative in addition to all other remedies that may be available at law, in equity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) TO THE FULLEST EXTENT PERMITTED BY LAW, EXCEPT FOR INELIGIBLE LOSSES, THE COLLECTIVE AGGREGATE LIABILITY OF THE NCPS PARTIES UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER, TO ISSUER PARTY, ANY OTHER PARTY OR THIRD PARTY, UNDER ANY LEGAL OR EQUITABLE THEORY, WHETHER ARISING OUT OF TORT (INCLUDING NEGLIGENCE), BREACH OF CONTRACT, STRICT LIABILITY, INDEMNIFICATION, BREACH OF STATUTORY DUTY, BREACH OF WARRANTY, RESTITUTION OR OTHERWISE, WHETHER BROUGHT DIRECTLY OR AS A THIRD PARTY CLAIM, SHALL BE LIMITED TO THE LESSER OF (A) $1,000 OR (B) THE AMOUNT OF FEES PAID BY ISSUER PARTY TO AND RECEIVED BY NCPS DURING THE SIX MONTHS PRECEDING THE DATE OF THE EVENT GIVING RISE TO THE ACCRUAL OF THE ACTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. To the full extent permitted by law, no legal proceeding shall be joined with any other or decided on a class-action basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to <u>Section 20(c),</u> in any Action, by which one Party either seeks to enforce this Agreement or seeks a declaration of any rights or obligations under this Agreement, the non-prevailing Party will pay the prevailing Party's costs and expenses, including, but not limited to, reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) None of the NCPS Parties shall be liable to any Issuer Party or to anyone else for any special, exemplary, indirect, incidental, consequential or punitive damages of any kind or for any costs of procurement of substitution of services or any lost profits, lost business, trading losses, loss of use of data or interruption of business or services arising out of this Agreement, including, without limitation, any breach of this Agreement or any services performed, regardless of the basis of liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) At NCPS's or its affiliate's determination, a breach under this Agreement by Issuer Party will constitute a default by Issuer Party or its affiliates under any other agreements any of them have then in effect with NCPS or its affiliates and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All rights and remedies of NCPS in this Agreement will be in addition to all other rights and remedies available at law or in equity and shall survive any expiration or termination of this Agreement.

21. **Notices; Consent to Electronic Communications.** All notices, requests, consents, claims, demands, waivers and other communications under this Agreement ("**notices**") have binding legal effect only if in writing and addressed to a Party as set forth on the signature page hereto (or to such other address that such Party may designate from time to time in accordance with this <u>Section 21</u>). Notices sent in accordance with this <u>Section 21</u> will be deemed effectively given: (a) when received, if delivered by hand, with signed confirmation of receipt; (b) when received, if sent by a nationally recognized overnight courier, signature required; or (c) on the third day after the date mailed by certified or registered mail, return receipt requested, postage prepaid. In addition, Issuer Party consents to the receipt of notices electronically via email.

22. **Severability.** If any provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or invalidate or render unenforceable such provision in any other jurisdiction. Upon such determination that any provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest extent possible.

23. **Relationship of the Parties.** Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment of fiduciary relationship between the Parties, and no Party shall have authority to contract for or bind any other Party in any manner whatsoever.

24. **No Third Party Beneficiaries.** Except as otherwise set forth in <u>Section 9</u>, this Agreement is for the sole benefit of the Parties and, subject to <u>Section 14</u>, their respective

successors and assigns. Nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. NCPS Parties shall be third party beneficiaries as set forth in <u>Section 9</u>.

25. **Interpretation; Headings and References.** The Parties intend this Agreement to be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument or causing any instruments to be drafted. Further, the headings used in this Agreement and the references throughout to be the policies and documents constituting this Agreement are for convenience only and are not intended to be used as an aid to interpretation. All such references are subject to the full text of such policies and documents. Any decision by NCPS with respect to the interpretation or application of this Agreement shall be final and binding on Issuer Party.

26. **Gender; Number.** Words used herein, regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context indicates is appropriate. If one or more persons or entities constitute "**Issuer Party**", as defined in the introductory paragraph, references to "**Issuer Party**" in this Agreement shall include references to each Issuer Party individually, together and collectively, jointly and severally.

27. **Intellectual Property; Confidential Information.** All trademarks, service marks, patents, copyrights, trade secrets, confidential information, and other proprietary rights of each Party shall remain the exclusive property of such Party, whether or not specifically recognized or perfected under Law. Issuer Party shall not use, disclose or retain confidential information (including personally identifiable information or other account information) of NCPS Parties or any third parties that Issuer Party or its affiliates or their employees, directors, officers, consultants, independent contractors, advisors and auditors may receive or otherwise have access to in connection with the transactions contemplated by this Agreement except as contemplated by this Agreement or the performance hereof. NCPS and its affiliates may retain copies of and disclose and use any data or information collected from or on behalf of any Issuer Party or otherwise up to and throughout this Agreement as may be required in connection with legal, financial or regulatory filings, audits, discussions, or examinations or as otherwise required by Law.

28. **Counterparts.** This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement. Upon execution and delivery of a counterpart to this Agreement by the Parties, each Party shall be bound by this Agreement. A signed copy of this Agreement by facsimile, email or other means of electronic transmission or signature is deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

29. **Anti-Money Laundering.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Issuer Party acknowledges that NCPS is subject to U.S. federal Law, including the CIP requirements under the USA PATRIOT Act and its implementing regulations, pursuant

to which NCPS must obtain, verify and record information that allows NCPS to identity customers of NCPS opening accounts. Accordingly, NCPS will ask Issuer Party to provide, and Issuer Party shall provide upon NCPS's request certain information, including, but not limited to, name, physical address, tax identification number, organizational documents, certificates of good standing, financial statements, licenses to do business and other information that will help NCPS to identify and verify a person's identity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties agree to comply with all applicable anti-money laundering Law and government guidance, including the reporting, recordkeeping and compliance requirements of the Bank Secrecy Act, as amended by the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2022, Title III of the USA PATRIOT Act, its implementing regulations, and related SEC, state regulatory organizations and FINRA rules. Each Party shall comply with all other anti-money laundering Law outside of the U.S. applicable to such Party or such Party's activities under this Agreement. NCPS is entitled to rely on Issuer Party's CIP, anti-money laundering program and OFAC Sanctions Compliance Program, and upon NCPS's request, Issuer Party shall provide customary certifications with respect thereto.

30. **Privacy.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party agrees any non-public personal information (as defined in Regulation S-P of the SEC) disclosed to it in connection with this Agreement is being disclosed for the specific purpose of permitting such Party to perform such Party's obligations and the services set forth in this Agreement. Each Party agrees that, with respect to such information, it will comply with Regulation S-P of the SEC, the Gramm-Leach-Bliley Act (15 U.S.C. § 6081 et seq.) and all other applicable U.S. privacy Law and it will not disclose any non-public personal information received in connection with this Agreement to any other party (except to the other Party), except to the extent required to carry out this Agreement or as otherwise permitted or required by Law. Each Party shall comply with all other privacy Law outside of the U.S. applicable to such Party or such Party's activities in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In relation to each Party's performance of this Agreement, each Party shall, as applicable to such Party: (a) comply with all applicable requirements of Data Privacy Law (as defined below), when collecting, using, retaining or disclosing personal information; (b) limit personal information collection, use, retention and disclosure to activities reasonably necessary and proportionate to the performance of this Agreement or other compatible operational purpose; (c) only collect, use, retain or disclose personal information collected in connection with this Agreement; (d) not collect, use, retain, disclose, sell or otherwise make personal information available for such Party's own commercial purposes or in a way that does not comply with Data Privacy Law; (e) promptly comply with other Party's request or instruction requiring such party to provide, amend, transfer or delete the personal information, or to stop, mitigate, or remedy any unauthorized processing; (f) reasonably cooperate and assist another Party in meeting any compliance obligations and responding to related inquiries, including responding to verifiable consumer requests, taking into account the nature of such Party's processing and the information available to such Party; and (g) notify each other Party immediately if it receives any complaint, notice or communication that directly or indirectly relates to any Party's compliance in connection with this Agreement. For purposes of this Agreement, "**Data Privacy Law**" means

applicable local, state, national and international laws, rules, regulations and orders of any governmental, judicial, regulatory or enforcement authority or self-regulatory organization regarding consumer data privacy rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. **Citations.** Any reference to Law are current citations. Any changes in the citations (whether or not there are any changes in the text of such Law) shall be automatically incorporated into this Agreement.

**[Signatures appear on following page(s).]**

In witness whereof, the Parties have duly executed this Agreement effective as of the Effective Date.

**Effective Date:** <u>1/19/2023</u> 

**Offering Name:** <u>XIV-I INVEST 1, LLC</u> 

**Minimum Offering:** <u>$1,000,000.00</u> (including offline investments and in kind contributions and similar creditable amounts)

**Total Offering Amount:** <u>$75,000,000.00</u> 

**Offering Exemption:** Rule 506(b) of Regulation D Rule 506(c) of Regulation D

Regulation A Regulation Crowdfunding

**ISSUER (If a Series LLC, include both the Series and the Series LLC):**

Entity Name: <u>XIV-I INVEST 1, LLC</u> Entity Name:

Jurisdiction: <u>Delaware</u> Jurisdiction:

By: <u>XIV Manager, LLC its manager ***s:*** Monica Poole</u> By:

Name: <u>Monica Poole Its: Manager</u> Name:

Title: <u>Manager, XIV-I MANAGER, LLC</u> Title:

Date: <u>1/19/2023</u> Date:

Email: monica@xiv-i.com Email:

With a copy to: With a copy to:

Address: <u>5784 Lake Forrest Dr, Suite 209</u>

 <u>Sandy Springs, GA 30328</u> Address:

**MANAGER: NCPS:**

Entity Name: <u>Andes Capital Group</u> North Capital Private Securities Corporation

Jurisdiction: <u>Delaware</u> Jurisdiction: <u>Delaware</u> 

By: ***<u>s//:</u>*** <u>Curtis Spears</u> By: ***<u>s//:</u>*** <u>Linsey Harkness</u> 

Name: <u>Curtis Spears</u> Name: <u>Linsey Harkness</u> 

Title: <u>President/CEO</u> Title: <u>Managing Director</u> 

Date: <u>1/19/2023</u> Date: <u>1/18/2023</u> 

Email: cspears@andescap.com Email: jdowd@northcapital.com

Address: <u>205 W Wacker Dr, Suite 610</u> With a copy to: lharkness@northcapital.com

 <u>Chicago, IL 60606</u> dwatson@northcapital.com

<u>Escrow-ops@norhtcapital.com</u> 

Address: <u>623 E. Fort Union Boulevard,</u> <u>Suite 101</u> 

 <u>Midvale, Utah 84047</u> 

**Issuer Party Payment Informaiton:**

x Use payment information currently on file with NCPS; or

Complete the payment information below:

<u>Credit Card</u> <u>ACH/Wire Informaiton</u>

Name on Card: Bank Name:

Credit Card Number: Account Holder Name:

Expiration Date (MM/YY): Routing Number:

Billing Address: Account Number:

Account Type (Checking/Savings):

<u>Billing Contact Person</u>

Name:

Email:

Telephone Number:

**<u>EXHIBIT A</u>**

**CONTINGENT OFFERING**

If the Offering is a contingent offering as this term is referenced under Rule 15c2-4 of the Exchange Act ("**Rule**"), the distribution is being made with the express understanding that Escrow Funds are not to be released to Issuer until some further event or contingency occurs, as described in this <u>Exhibit A</u>, in accordance with the Rule.

Investor Funds will be <u>promptly</u> deposited in a separate bank escrow account, with NCPS serving as agent for the persons who have the beneficial interests therein, until the appropriate event or contingency has occurred.

Upon certification that all contingencies have been met, the Escrow Funds will be <u>promptly</u> distributed to Issuer. If the contingencies fail to be satisfied as required by the Offering, the Escrow Funds will be returned to the persons or entitled thereto.

The following contingencies apply to the Offering (*please check all that apply*):

None.

Issuer KYC, AML, and Bad Actor Check screening are complete for Issuer and all Control Persons of Issuer.

Certain listed events will have occurred prior to closing (*please specify*):

Other Contingencies (*please describe*):

DS:***<u>s//:</u>*** <u>MP</u> DS:***<u>s//:</u>*** <u>C</u>

**<u>EXHIBIT B</u>**

**FEES AND EXPENSES**

Escrow Administration Fee:\* $575 set-up and administration for 12 months (or partial period);

$250 for each additional 12 months (or partial period)

Issuer Routable Account Number: $150 per month

Out-of-Pocket Expenses: \*\* Billed at cost

Check Handling: $10.00 per check (incoming/outgoing)

Transactional Costs: \*\*\* $100.00 for each additional escrow break

$150.00 for each escrow amendment

$100.00 for reprocessing a closing

Wire Handling: $25.00 per domestic wire (incoming/outgoing)

$45.00 per international wire (incoming/outgoing)

ACH Disbursements: 0.15% on the amount transferred

ACH Dispute/Chargeback: $50.00 per reversal/chargeback

ACH Failure Return Fee: $1.50 per failure/return

Plaid Bank Verification Fee:\*\*\*\* $1.80 per linked account

Credit Card Transaction Fees Percentage Rate: \*\*\*\* 3.15% on the amount transferred

Credit Card Transaction Fees Base Rate:\*\*\*\* $0.70 per each transaction

Credit Card Dispute/Chargeback Fee:\*\*\*\* $50.00 per reversal/chargeback

Bad Actor Checks:\*\*\*\* $100.00 per covered person

Issuer Party shall pay NCPS the Escrow Administration Fee upon execution of this Agreement. In the event the escrow is not funded, the Fee and all related expenses, including attorneys' fees, remain due and payable, and once paid, will not be refunded. Annual fees cover a full year in advance, or any part thereof, and thus are not pro-rated in the year of termination.

Escrow Parties shall pay such fees immediately upon NCPS's demand, or at NCPS's option, NCPS may deduct such fees from any disbursement of Escrow Funds from the Escrow Account as provided in <u>Section 10(d)</u>.

The fees quoted in this schedule apply to services ordinarily rendered in the administration of an Escrow Account and are subject to reasonable adjustment based on final review of document, or when NCPS is called upon to undertake unusual duties or responsibilities, or as changes in law, procedures, or the cost of doing business demand. Services in addition to and not contemplated in this Agreement, including but not limited to, document amendments and revisions, non-standard cash and/or investment transactions, calculations, notices and reports and legal fees, will be billed as extraordinary expenses and capped at $15,000 (except as provided by <u>Section 9</u>).

Extraordinary fees are payable to NCPS for duties or responsibilities not expected to be incurred at the outset of the transaction, not routine or customary, and not incurred in the ordinary courses of business. Payment of extraordinary fees is appropriate where particular inquiries, events or developments are unexpected, even if the possibility of such things could have been identified at the inception of the transaction.

Unless otherwise indicated, the above fees relate to the establishment of one escrow account. Additional sub-accounts governed by the same Escrow Agreement may incur an additional charge. Transaction costs include charges for wire transfers, checks, internal transfers and securities transactions.

NCPS may increase the amounts set forth in this <u>Exhibit B</u> by providing written notice to Issuer Party such increases to be effective as of such notice, and the fees will be deemed amended accordingly without further notice or consent; provided that Issuer Party may terminate this Agreement pursuant to <u>Section 17</u>.

NCPS may submit any payment information provided to it by an Issuer Party in connection with this Agreement against any fees due from such Issuer Party. Each Issuer Party consents to NCPS retaining and using such payment information for future invoices and as provided in this Agreement. All payments shall be in US dollars in immediately available funds.

\**Escrow Administration Fee includes KYC and AML due diligence for up to three entities for a single escrow account. If the escrow account under reviews has more than two control entities associated with the issuing entity, a $25 fee will be assessed for each additional entity review.*

*\*\*Out-Of-Pocket Expenses include any custom features or additional work that the North Capital team may need to perform. These fees are uncommon and will be disclosed in such cases prior to invoicing.*

*\*\*\*Reprocessing fees apply if a closing is submitted but not ready to be processed (including, but not limited to, Flow of Funds not complete or funds not settled in escrow).*

*\*\*\*\*If applicable to the Offering and subject to the terms and conditions for NCPS's payment processing facilitation services.* 

*\*\*\*\*\*Covered persons include, but are not limited to, the issuer, directors, general partners, managing members, executive officers, 20% beneficial owners, and promoters connected to the issuer. A complete list of covered persons can be found at https://www.sec.gov/info/smallbus/secg/bad-actor-small-entity-compliance-guide#part2.* 

*\*\*\*\*\*\*The fees payable under this Agreement, plus the other relevant fees, attributable to any public offering (including any interest thereon), shall be capped at an aggregate amount not to exceed as permitted by applicable FINRA rules.*

 

ALL FEES AND EXPENSES PAID TO NCPS ARE NON-REFUNDABLE.

## Ex1A-11

**CONSENT OF INDEPENDENT AUDITOR**

We consent to the use, in this Offering Circular on Form 1-A, of our independent auditor's report dated August 16, 2022, with respect to the audited balance sheet of XIV-I Invest 1, LLC as of June 30, 2022 and the related statements of operations, changes in member's equity, cash flows and related notes to the financial statements for the period from February 7, 2022 (inception) through June 30, 2022.

Very truly yours,

McNamara and Associates, PLLC

 

/s/ McNamara and Associates, PLLC

Margate, Florida

January 27, 2023

## Ex1A-12

David G. LeGrand, Attorney at Law

______________________________________

Tel. (702) 218-6736

Email: david@legrandlegal.com

3900 South Hualapai Way, Suite 128

Las Vegas, NV 89148

david@legrandlegal.com

**JANUARY 16, 2023**

Securities and Exchange Commission

Re: Regulation A Offering of Class A Membership Interests (the "Units") of XIV-I INVEST 1, LLC ("XIV-I")

Ladies and Gentlemen:

We have been requested and authorized by XIV-I to render this opinion in connection with its issuance of securities consisting of the Units.

In order to render this opinion, we have also reviewed the following documents (the "Reviewed Documents"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. XIV-I's Certificate of Organization filed with the Delaware Secretary of State on February 7, 2022 with an effective date as of February 7, 2022 as certified by the Delaware Secretary of State on June 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Certificate of Status for XIV-I from the
Delaware Secretary of State dated June 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Operating Agreement of XIV-I.

Except for our review of the Reviewed Documents, we have not undertaken any independent examination of any fact or contract, agreement or other instrument that may have been executed by or may be binding on XIV-I, nor have we conducted any searches of public records other than as expressly set forth herein. As to matters wherein our opinion is stated to be "to our knowledge", "actual knowledge" or words of similar import, such knowledge does not include constructive knowledge or any information that we might have gained had we conducted further investigation.

Whenever a statement herein is qualified by the phrase "to our knowledge" or "known to us" or a similar phrase, we have, with your consent, advised you concerning only the current actual knowledge of the facts in the possession of those attorneys who are currently members of or associated with this firm and who have performed legal services on behalf of the XIV, and which knowledge we have recognized as being pertinent to the matters set forth herein.

In such examination, I have assumed the genuineness of all signatures, the authenticity of

all company records, documents, instruments and certificates submitted to us as originals and the conformity with the original company records, documents, instruments and certificates of all such records, documents, instruments and certificates submitted to me as copies. I have assumed that the Reviewed Documents were not executed or delivered under fraud, duress or mistake; provided, however, I am not aware of any facts which would cause us to believe such assumption to be incorrect; and that any photostatic copies or facsimiles of organizational documents provided to us were properly and timely filed with the governing jurisdiction.

Based on the foregoing and subject to the limitations, assumptions and exceptions expressed below, it is my opinion that:

Based on the foregoing, and qualified in the manner and to the extent set forth in this letter, I am of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. XIV-I is a limited liability company validly existing and, based solely on the Certificate of Good Standing of XIV-I, in good standing under the laws of the State of Delaware and qualified to transact business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Units have been duly authorized by all necessary action on the part of XIV-I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Units when issued for consideration shall be fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The opinions expressed herein are based upon the applicable laws, rules and regulations in effect and the facts in existence as of the date of this letter. In delivering this letter to you, we assume no obligation, and I advise you that I shall make no effort, to update the opinions set forth herein, to conduct any inquiry into the continued accuracy of such opinions, or to apprise any addressee hereof or their respective counsel or their respective assignees of any facts, matters, transactions, events or occurrences taking place, and of which I may acquire knowledge, after the date of this letter, or of any change in any applicable laws or facts occurring after the date of this letter, which may affect the opinions set forth herein. No opinions are offered or implied as to any matter, and no inference may be drawn, beyond the strict scope of the specific issues expressly addressed by the opinions herein.

Very truly yours,

David G. LeGrand, Esq.

### 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:** XIV-I INVEST 1, LLC

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2022

**CIK:** 0001952204

**I.R.S. Employer Identification Number:** 88-3069636

**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:** 5784 Lake Forrest Drive, Suite 209, Atlanta, GA 30328

**Company Phone:** 4045854925

**Person to contact:** Nick Antaki

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount    |
|:---|:---|
| Cash and Cash Equivalents                | $0.00     |
| Investment Securities                    | $0.00     |
| Accounts and Notes Receivable            | $0.00     |
| Property, Plant and Equipment (PP&E)     | $0.00     |
| Total Assets                             | $0.00     |
| Accounts Payable and Accrued Liabilities | $14816.00 |
| Long-Term Debt                           | $0.00     |
| Total Liabilities                        | $14816.00 |
| Total Stockholders' Equity               | $14816.00 |
| Total Liabilities and Equity             | $0.00     |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount     |
|:---|:---|
| Total Revenues                            | $0.00      |
| Costs and Expenses Applicable to Revenues | $39816.00  |
| Depreciation and Amortization             | $0.00      |
| Net Income                                | $-39816.00 |
| Earnings Per Share - Basic                | 0.00       |
| Earnings Per Share - Diluted              | 0.00       |

**Auditor Information**

| Metric          | Amount                        |
|:---|:---|
| Name of Auditor | McNamara and Associates, PLLC |

### Outstanding Securities

| Class                        |   Outstanding | CUSIP   | Publicly Traded   |
|:---|---:|:---|:---|
| Class B Membership Interests |          1000 | N/A     | N/A               |
|  |             0 |  |  |
|  |             0 |  |  |

### 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?** No

**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?** No

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 7500000      |
| Number of securities outstanding                                | 0            |
| Price per security                                              | $10.00       |
| Issuer's aggregate offering price                               | $75000000.00 |
| Aggregate offering price of securities held by security holders | $0.00        |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $75000000.00 |

**Anticipated Fees**

| Service Provider   | Name   | Fees   |
|:---|:---|:---|
| Auditor            |  |  |
| Legal              |  |  |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** —

### Item 5. Jurisdictions in Which Securities are to be Offered

AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, A0, A1, A2, A3, A4, A5, A6, A7, A8, A9, B0, Z4