# EDGAR Filing Document

**Accession Number:** 0002046162
**File Stem:** 0001493152-26-018751
**Filing Date:** 2026-4
**Character Count:** 762924
**Document Hash:** 74399d660d0308a39c7b2eb173557af9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-018751.hdr.sgml**: 20260423

**ACCESSION NUMBER**: 0001493152-26-018751

**CONFORMED SUBMISSION TYPE**: 1-A

**PUBLIC DOCUMENT COUNT**: 32

**FILED AS OF DATE**: 20260423

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Masterworks Vault 16, LLC
- **CENTRAL INDEX KEY:** 0002046162

**ORGANIZATION NAME:**
- **EIN:** 332067884
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12742
- **FILM NUMBER:** 26889654

**BUSINESS ADDRESS:**
- **STREET 1:** 225 LIBERTY STREET
- **STREET 2:** 29TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10281
- **BUSINESS PHONE:** 2035185172

**MAIL ADDRESS:**
- **STREET 1:** 225 LIBERTY STREET
- **STREET 2:** 29TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10281

## Part

As filed with the Securities and Exchange Commission on April 23, 2026

File No.

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-A**

**REGULATION A OFFERING CIRCULAR**

**UNDER THE SECURITIES ACT OF 1933**

**MASTERWORKS Vault 16, LLC**

(Exact name of issuer as specified in its charter)

**Delaware**

(State of other jurisdiction of incorporation or organization)

**1 World Trade Center, 57th Floor**

**New York, New York 10007**

**Phone: (203) 518-5172**

(Address, including zip code, and telephone number,

including area code of issuer's principal executive office)

**Joshua B. Goldstein**

**General Counsel and Secretary**

**Masterworks Vault 16, LLC**

**1 World Trade Center, 57th Floor**

**New York, New York 10007**

**Phone: (203) 518-5172**

(Name, address, including zip code, and telephone number,

including area code, of agent for service)

---

| | |
|:---|:---|
| **7380** | **33-2067884** |
| (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

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. To the extent not already qualified under Regulation A, these securities may not be sold nor may offers to buy be accepted before the offering statement filed with the Securities and Exchange 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. We may elect to satisfy our obligation to deliver a final offering circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the final offering circular or the offering statement in which such final offering circular was filed may be obtained.

**MASTERWORKS Vault 16, LLC**

Preliminary Offering Circular

April 23, 2026

Subject to Completion

![](form1-a_001.jpg)

**Offering of Series Class A ordinary shares**

Representing Series Class A Limited Liability Company Interests

Masterworks Vault 16, LLC, which we refer to as "we," "us," "our," "Masterworks Vault 16" or the "Company," is a Delaware series limited liability company that has been formed to facilitate a series of restructuring transactions ("Restructuring Transactions") relating to affiliated Delaware limited liability company issuers (collectively, "Target Issuers" and each, a "Target Issuer") that have conducted an offering pursuant to Regulation A to facilitate an investment in a single work of art (each, an "Artwork"). We are offering Class A shares representing Class A limited liability company interests of each of the series of the Company (the "Offering"), which shall be issued for the Merger Consideration (as defined below) and in accordance with and pursuant to the Restructuring Transactions, in each case, as described within this offering circular.

Historically, all Masterworks offerings pursuant to Regulation A have been conducted by distinct Delaware limited liability company issuers and have involved investment in a singular Artwork. In May 2023, Masterworks began using Delaware series limited liability companies to conduct offerings more efficiently through the creation of separate series as opposed to separate legal entities for each Artwork. The purpose of the Restructuring Transactions is to transition the Target Issuers to this more efficient structure through a series of transactions, including a business combination, whereby each Target Issuer will be "rolled up" into a newly formed separate series of the Company. Each new series will have the same capitalization and share ownership as the applicable Target Issuer and will beneficially own the same Artwork, with no other material assets or liabilities and substantially the same contractual rights and obligations, tax attributes and governance as the applicable Target Issuer. As a result of the Offering and the Restructuring Transactions, existing members of each Target Issuer will receive one Class A share in a newly formed series of the Company in respect of each Class A share they hold in any Target Issuer with substantially the same voting and other rights as the Class A share held in the applicable Target Issuer. The Target Issuers will be identified and described in an amendment to this offering circular prior to the qualification of the offering statement of which this offering circular forms an integral part.

We do not intend to list the Class A shares of any series for trading on a national securities exchange, but shares of other Masterworks issuers, including the Target Issuers, are currently listed for trading on an alternative trading system operated by North Capital Private Securities Corporation ("NCPS"), referred to as the "ATS". We intend to facilitate secondary sales of the Class A shares of each series by listing each series on the ATS, which is expected to occur promptly after the completion of this Offering. The ATS may provide a liquidity option for certain U.S. investors and investors in certain non U.S. jurisdictions. No assurance can be given that the ATS will provide an effective means of selling your Class A shares of a series or that the price at which any Class A shares of a series are sold through the ATS is reflective of the fair value of the Class A shares of that series or the Artwork of that series.

Our affiliate Masterworks, LLC owns an online investment platform located at https://www.masterworks.com/ (the "Masterworks Platform") that allows investors to acquire ownership of an interest in special purpose companies controlled by Masterworks that invest in distinct Artworks or a collection of Artworks. Once an investor establishes a user profile on the Masterworks Platform, they can browse and screen potential artwork investments, view details of an investment and sign contractual documents online.

No person will earn any fees in connection with the Offering, and no broker-dealer is involved in the Offering. Neither the Company, the series or the Target Issuers will incur any cost in connection with this Offering.

We reserve the right to terminate this Offering for any reason at any time prior to the closing. We will close the entire Offering at one time. This Offering will commence within 48 hours of qualification by the SEC. There is no minimum number of interests or dollar amount that needs to be sold as a condition of the closing of this Offering. We have not engaged an escrow agent for this Offering.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Series** | **Number of**<br> **Class A**<br> **Shares<sup>(1)</sup>** | **Price to**<br> **Public<sup>(2)</sup>** | **Underwriter**<br> **Discounts and**<br> **Commissions<sup>(3)</sup>** | **Proceeds,**<br> **Before**<br> **Expenses,**<br> **to Issuer<sup>(4)</sup>** |
| **<u>Series 114</u>** |  |  |  |  |
| Per Class A share | 1 | $20.74 | $0.00 | $20.74 |
| Total | 180400 | $3741496 | 0.00 | $3741496 |
| **<u>Series 116</u>** |  |  |  |  |
| Per Class A share | 1 | $14.90 | $0.00 | $14.90 |
| Total | 292750 | $4361975 | 0.00 | $4361975 |
| **<u>Series 117</u>** |  |  |  |  |
| Per Class A share | 1 | $16.35 | $0.00 | $16.35 |
| Total | 521700 | $8529795 | 0.00 | $8529795 |
| **<u>Series 118</u>** |  |  |  |  |
| Per Class A share | 1 | $12.14 | $0.00 | $12.14 |
| Total | 86050 | $1044647 | 0.00 | $1044647 |
| **<u>Series 120</u>** |  |  |  |  |
| Per Class A share | 1 | $9.89 | $0.00 | $9.89 |
| Total | 43100 | $426259 | 0.00 | $426259 |
| **<u>Series 121</u>** |  |  |  |  |
| Per Class A share | 1 | $13.98 | $0.00 | $13.98 |
| Total | 388500 | $5431230 | 0.00 | $5431230 |
| **<u>Series 122</u>** |  |  |  |  |
| Per Class A share | 1 | $15.04 | $0.00 | $15.04 |
| Total | 596650 | $8973616 | 0.00 | $8973616 |
| **<u>Series 123</u>** |  |  |  |  |
| Per Class A share | 1 | $16.05 | $0.00 | $16.05 |
| Total | 88800 | $1425240 | 0.00 | $1425240 |
| **<u>Series 125</u>** |  |  |  |  |
| Per Class A share | 1 | $16.64 | $0.00 | $16.64 |
| Total | 170650 | $2839616 | 0.00 | $2839616 |
| **<u>Series 127</u>** |  |  |  |  |
| Per Class A share | 1 | $19.21 | $0.00 | $19.21 |
| Total | 123200 | $2366672 | 0.00 | $2366672 |
| **<u>Series 128</u>** |  |  |  |  |
| Per Class A share | 1 | $16.12 | $0.00 | $16.12 |
| Total | 194250 | $3131310 | 0.00 | $3131310 |
| **<u>Series 129</u>** |  |  |  |  |
| Per Class A share | 1 | $22.84 | $0.00 | $22.84 |
| Total | 116550 | $2662002 | 0.00 | $2662002 |
| **<u>Series 130</u>** |  |  |  |  |
| Per Class A share | 1 | $16.19 | $0.00 | $16.19 |
| Total | 249750 | $4043452.50 | 0.00 | $4043452.50 |
| **<u>Series 131</u>** |  |  |  |  |
| Per Class A share | 1 | $14.24 | $0.00 | $14.24 |
| Total | 133250 | $1897480 | 0.00 | $1897480 |
| **<u>Series 132</u>** |  |  |  |  |
| Per Class A share | 1 | $16.91 | $0.00 | $16.91 |
| Total | 35000 | $591850 | 0.00 | $591850 |
| **<u>Series 133</u>** |  |  |  |  |
| Per Class A share | 1 | $17.89 | $0.00 | $17.89 |
| Total | 100550 | $1798839.50 | 0.00 | $1798839.50 |
| **<u>Series 134</u>** |  |  |  |  |
| Per Class A share | 1 | $16.34 | $0.00 | $16.34 |
| Total | 87250 | $1425665 | 0.00 | $1425665 |
| **<u>Series 135</u>** |  |  |  |  |
| Per Class A share | 1 | $13.09 | $0.00 | $13.09 |
| Total | 57950 | $758565.50 | 0.00 | $758565.50 |
| **<u>Series 137</u>** |  |  |  |  |
| Per Class A share | 1 | $17.09 | $0.00 | $17.09 |
| Total | 194250 | $3319732.50 | 0.00 | $3319732.50 |
| **<u>Series 138</u>** |  |  |  |  |
| Per Class A share | 1 | $20.33 | $0.00 | $20.33 |
| Total | 139400 | $2834002 | 0.00 | $2834002 |
| **<u>Series 139</u>** |  |  |  |  |
| Per Class A share | 1 | $16.02 | $0.00 | $16.02 |
| Total | 100750 | $1614015 | 0.00 | $1614015 |
| **<u>Series 140</u>** |  |  |  |  |
| Per Class A share | 1 | $17.16 | $0.00 | $17.16 |
| Total | 158200 | $2714712 | 0.00 | $2714712 |
| **<u>Series 141</u>** |  |  |  |  |
| Per Class A share | 1 | $18.17 | $0.00 | $18.17 |
| Total | 32650 | $593250.50 | 0.00 | $593250.50 |
| **<u>Series 143</u>** |  |  |  |  |
| Per Class A share | 1 | $19.24 | $0.00 | $19.24 |
| Total | 88800 | $1708512 | 0.00 | $1708512 |
| **<u>Series 148</u>** |  |  |  |  |
| Per Class A share | 1 | $20.12 | $0.00 | $20.12 |
| Total | 47200 | $949664 | 0.00 | $949664 |

---

(1) Reflects
 the number of Class A shares issuable as Merger Consideration to holders of Class A shares originally issued in a Tier 2 Regulation
 A offering of the applicable Target Issuer. Following the Offering and the Restructuring Transactions, all existing members of a
 Target Issuer will hold the same number of Class A shares in a series that they did in the applicable Target Issuer.

(2) Reflects
 the net asset value, or "NAV" per Class A share as of the most recent practicable date. NAV per Class A share equals
 the most recent appraised value of the relevant artwork as determined by Masterworks, reduced by the applicable liquidation preference
 attributable to Management Fee Shares, if applicable, and further reduced by the aggregate profit share, if any, attributable to
 the Class B shares, divided by the fully diluted number of Class A shares outstanding (including all outstanding Management Fee Shares).

(3) The
 Company has not engaged underwriters in connection with the Offering. Neither Masterworks, LLC nor any other affiliated entity involved
 in the offer and sale of the Class A shares of a series is currently a member firm of the Financial Industry Regulatory Authority,
 Inc. ("FINRA") and no person associated with us will be deemed to be a broker solely by reason of his or her participation
 in the sale of the Class A shares of a series.

(4) These
 amounts equal the aggregate value of Class A interests offered in-kind in this Offering as Merger Consideration to holders of Class
 A shares originally issued in a Tier 2 Regulation A offering of the applicable Target Issuer. See "The Restructuring Transactions"
 below for additional information. The Company will receive no cash consideration from the sale of interests. These amounts do not
 include offering expenses, all of which will be paid by Masterworks rather than from the net proceeds of this offering.

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 your net worth. Different rules apply to accredited investors and non-natural persons. For general information on investing, we encourage you to refer to *<u>www.investor.gov</u>*. We retain complete discretion to determine that investors are "qualified purchasers" (as defined in Regulation A under the Securities Act) in reliance on the information and representations provided to us regarding their financial situation.

**An investment in the Class A shares of a series is subject to certain risks and should be made only by persons or entities able to bear the risk of and to withstand the total loss of their investment. Prospective investors should carefully consider and review the information under the heading "Risk Factors" beginning on page 8.**

The SEC does not pass upon the merits of or give its approval to any securities offered or the terms of any offering, nor does it pass upon the accuracy or completeness of any offering circular or other solicitation materials. These securities are offered pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"); however, the SEC has not made an independent determination that the securities offered are exempt from registration.

Periodically, we will provide an amendment or supplement to the offering circular that may add, update or change information contained in this offering circular. Any statement that we make in this offering circular will be modified or superseded by any inconsistent statement made by us in a subsequent amendment or supplement to the offering circular. The offering statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this offering circular. You should read this offering circular and the related exhibits filed with the SEC and any amendment or supplement to the offering circular, together with additional information contained in our annual reports, semi-annual reports and other reports and information statements that we will file periodically with the SEC. See the section entitled "Where You Can Find More Information" below for more details.

Our principal office is located at 1 World Trade Center, 57th Floor, New York, New York 10007 and our phone number is (203) 518-5172. Our corporate website address is located at www.masterworks.com. Information contained on, or accessible through, the website is not a part of, and is not incorporated by reference into, this offering circular.

This offering circular is following the offering circular format described in Part II (a)(1)(i) of Form 1-A.

**The date of this offering circular is ______, 2026.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | Page |
| [THIRD PARTY DATA](#a_001) | ii |
| [TRADEMARKS AND COPYRIGHTS](#a_002) | ii |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#a_003) | ii |
| [STATE LAW EXEMPTION AND PURCHASE RESTRICTIONS](#a_004) | iii |
| [USE OF CERTAIN TERMS AND DEFINITIONS](#a_005) | iii |
| [INCORPORATION OF CERTAIN INFORMATION BY REFERENCE](#a_006) | v |
| [QUESTIONS AND ANSWERS ABOUT THIS OFFERING](#a_007) | vii |
| [SERIES OFFERING TABLE](#a_008) | 1 |
| [SUMMARY](#a_009) | 2 |
| [THE OFFERING](#a_010) | 5 |
| [DETERMINATION OF OFFERING PRICE](#a_011) | 7 |
| [SERIES DISTRIBUTION POLICY](#a_012) | 8 |
| [RISK FACTORS](#a_013) | 8 |
| [DILUTION](#a_014) | 12 |
| [PLAN OF DISTRIBUTION](#a_015) | 12 |
| [USE OF PROCEEDS TO ISSUER](#a_016) | 14 |
| [THE RESTRUCTURING TRANSACTIONS](#a_017) | 14 |
| [DESCRIPTION OF BUSINESS](#a_018) | 23 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_019) | 26 |
| [MANAGEMENT](#a_020) | 29 |
| [MANAGEMENT COMPENSATION](#a_021) | 34 |
| [SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS](#a_022) | 35 |
| [INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS](#a_023) | 37 |
| [DESCRIPTION OF SHARES](#a_024) | 39 |
| [SHARES ELIGIBLE FOR FUTURE SALES](#a_025) | 50 |
| [MATERIAL U.S. FEDERAL TAX CONSIDERATIONS](#a_026) | 51 |
| [ADDITIONAL REQUIREMENTS AND RESTRICTIONS](#a_027) | 62 |
| [LEGAL MATTERS](#a_028) | 63 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_029) | 63 |
| [INDEX TO FINANCIAL STATEMENTS](#a_030) | F-1 |
| [EXHIBIT LIST](#a_031) | II-1 |

---

**We have not authorized anyone to provide any information other than that contained or incorporated by reference in this offering circular prepared by us or to which we have referred you. We do not take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This offering circular is an offer to sell only the Class A shares of each series offered hereby but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this offering circular is current only as of its date, regardless of the time of delivery of this offering circular or any sale of Class A shares of a series.**

**For investors outside the United States: We have not done anything that would permit the Offering or possession or distribution of this offering circular in any jurisdiction where action for that purpose is required, other than the United States. You are required to inform yourselves about and to observe any restrictions relating to the Offering and the distribution of this offering circular.**

i

**THIRD PARTY DATA**

Certain data included in this offering circular is derived from information provided by third-parties that we believe to be reliable. The discussions contained in this offering circular relating to the Artwork, the artist, the art market and the art industry are taken from third-party sources that the Company believes to be reliable and reasonable, and that the factual information is fair and accurate. Certain data is also based on our good faith estimates which are derived from management's knowledge of the industry and independent sources. Industry publications, surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of included information. We have not independently verified such third-party information, nor have we ascertained the underlying economic assumptions relied upon therein. The statistical data relating to the art market is difficult to obtain, may be incomplete, out-of-date, or inconsistent and you should not place undue reliance on any statistical or general information related to the art market included in this offering circular. The art market data used in this offering circular involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such data. While we are not aware of any material misstatements regarding any market, industry or similar data presented herein, such data was derived from third party sources and reliance on such data involves risks and uncertainties.

**TRADEMARKS AND COPYRIGHTS**

We own or have applied for rights to trademarks or trade names that we use in connection with the operation of our business, including our corporate names, logos and website names. In addition, we own or have the rights to copyrights, trade secrets and other proprietary rights that protect our business. We do not own the copyright to the Artwork, as such term is defined below, acquired by a series. This offering circular may also contain trademarks, service marks and trade names of other companies, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks, trade names or products in this offering circular is not intended to, and should not be read to, imply a relationship with or endorsement or sponsorship of us. Solely for convenience, some of the copyrights, trade names and trademarks referred to in this offering circular are listed without their©,® and™ symbols, but we will assert, to the fullest extent under applicable law, our rights to our copyrights, trade names and trademarks. All other trademarks are the property of their respective owners.

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This offering circular contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "plan," "intend," "expect," "outlook," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, or state other forward-looking information. Our ability to predict future events, actions, plans or strategies is inherently uncertain. Although we believe that the expectations reflected in our forward-looking statements are based on reasonable assumptions, actual outcomes could differ materially from those set forth or anticipated in our forward-looking statements. Factors that could cause our forward-looking statements to differ from actual outcomes include, but are not limited to, those described under the heading "Risk Factors." Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this offering circular. Furthermore, except as required by law, we are under no duty to, and do not intend to, update any of our forward-looking statements after the date of this offering circular, whether as a result of new information, future events or otherwise.

ii

**STATE LAW EXEMPTION AND PURCHASE RESTRICTIONS**

The Class A shares of each series are being offered only to "qualified purchasers" (as defined in Regulation A under the Securities Act). As a Tier 2 offering pursuant to Regulation A under the Securities Act, the 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 Class A shares of each series offered hereby are offered and sold only to "qualified purchasers". "Qualified purchasers" include: (i) "accredited investors" under Rule 501(a) of Regulation D and (ii) all other investors so long as their investment in any of the interests of the Company (in connection with any series offered under Regulation A) does not represent more than 10% of the greater of their annual income or net worth (for natural persons), or 10% of the greater of annual revenue or net assets at fiscal year-end (for non-natural persons).

To determine whether a potential investor is an "accredited investor" for purposes of satisfying one of the tests in the "qualified purchaser" definition, the investor must be a natural person who:

&nbsp;&nbsp;&nbsp;&nbsp;1. has
 a net worth, or joint net worth with the person's spouse or spousal equivalent, that exceeds $1,000,000 at the time of the
 purchase, excluding the value of the primary residence of such person; *<u>or</u>* 

2. had
 earned income exceeding $200,000 in each of the two most recent years or joint income with a spouse or spousal equivalent exceeding
 $300,000 for those years and has a reasonable expectation of reaching the same income level in the current year; *<u>or</u>* 

3. is
 holding in good standing one or more professional certifications or designations or credentials from an accredited educational institution
 that the SEC has designated as qualifying an individual for accredited investor status; *<u>or</u>* 

4. is
 a "family client," as defined by the Investment Advisers Act of 1940, of a family office meeting the requirements in
 Rule 501(a) of Regulation D and whose prospective investment in the issuer is directed by such family office pursuant to Rule 501(a)
 of Regulation D.

For purposes of determining whether a potential investor is a "qualified purchaser," annual income and net worth should be calculated as provided in the "accredited investor" definition under Rule 501 of Regulation D. In particular, net worth in all cases should be calculated excluding the value of an investor's home, home furnishings and automobiles.

The Offering will only be available to existing shareholders of the Target Issuers. As a result of the Restructuring Transactions, each series of the Company has been assigned Target Issuer shareholder representations contained in subscription agreements and secondary transaction agreements that the members of the Target Issuers are each a "qualified purchaser" (as defined in Regulation A under the Securities Act).

**USE OF CERTAIN TERMS AND DEFINITIONS**

In this offering circular, certain capitalized terms are used in the context of a particular series and the same capitalized terms may be used in another context to refer generically to all series. Accordingly, it is important to consider the context in which such capitalized terms are used. Unless the context indicates otherwise, the following terms have the following meaning:

● "*Administrator*" refers to Masterworks Administrative Services, LLC, a wholly owned subsidiary of Masterworks, LLC, that operates the Masterworks Platform and performs administrative and management services for the Target Issuers, and following the Restructuring Transactions, each series of the Company.

● "*Artwork*" or "*Artworks*" refers to any painting, sculpture or other artistic object owned by a series or generically to all such artistic objects owned by the Company following the Restructuring Transactions.

● "*Asset Transfers*" refers to a step of the Restructuring Transactions whereby all of the assets of each Target Issuer are transferred to a Merger Series of the Company in exchange for 100% of the shares of such Merger Series.

● "*Board of Managers*" refers to the board of managers of the Company.

● "*Class A ordinary share*" or "*Class A ordinary shares*" refers to a Class A ordinary share or Class A ordinary shares collectively, representing membership interests of one or all series in the Company. As the context requires, such term may also refer to Class A ordinary share(s) of Target Issuer(s).

● "*Class A preferred share*" or "*Class A preferred shares*" refers to a Class A preferred share or Class A preferred shares, representing preferred membership interests in one or all series in the Company. As the context requires, such term may also refer to Class A preferred share(s) of Target Issuer(s). Class A preferred shares will only be issued by series for which the applicable Target Issuer had authorized Class A preferred shares at the time of the Target Issuer's initial offering.

● "*Class A share*" or "*Class A shares*" refers generically to a Class A ordinary share or Class A preferred share or Class A ordinary shares and Class A preferred shares collectively or any combination thereof, respectively, representing membership interests in one or all series in the Company. As the context requires, such term may also refer to Class A share(s) of Target Issuer(s).

● "*Class B share*" or "*Class B shares*" refers to a Class B ordinary share or Class B ordinary shares collectively, representing profits interests in one or all series of the Company. As the context requires, such term may also refer to Class B ordinary share(s) of Target Issuer(s).

● "*Class C share*" refers to a Class C ordinary share, representing a special class of membership interests of one or all series in the Company, which have no economic rights or obligations and have no voting rights, but solely represents so-called "kick-out" rights, which means that the holder of a Class C share has the right to reconstitute, remove and or replace the Board of Managers of the Company pursuant to the Company's operating agreement. As the context requires, such term may also refer to Class C ordinary share(s) of Target Issuer(s).

iii

● "*Company*" refers to Masterworks Vault 16, LLC, a Delaware series limited liability company and, as the context requires, a Texas series limited liability company.

● "*Distribution*" or "*Distributions*" refers to a step of the Restructuring Transactions whereby each Target Issuer distributes one share of the applicable Merger Series to each member of the Target Issuer of the same class of Target Issuer share they hold.

● "*Management Fee Shares*" refers generically to all equity interests in any series of the Company and or any segregated portfolio of Masterworks Cayman in the form of Class A shares or SPC shares, which were or will be issued to the Administrator in respect of administrative services and administrative costs and expenses performed and paid on behalf of the Target Issuers, the Company and Masterworks Cayman (including Class A shares originally issued to the Administrator which have been sold or transferred prior to the Restructuring Transactions).

● "*Masterworks*" refers to Masterworks, LLC, and or its wholly owned subsidiaries, but does not include Masterworks Vault 16, LLC or Masterworks Advisers, LLC ("Masterworks Advisers").

● "*Masterworks Cayman*" refers to a Cayman Islands segregated portfolio company that holds title to the Artwork in segregated portfolios.

● "*Masterworks Platform*" refers to the first online art investment platform located at https://www.masterworks.com/. The Masterworks Platform gives eligible investors the ability to:

---

| | |
|:---|:---|
| ◌ | Browse art investment offerings; |
| ◌ | Transact entirely online, including review and execution of legal documentation, funds transfer and ownership recordation; |
| ◌ | Execute trades in shares issued by Masterworks issuers via the ATS; and |
| ◌ | Manage and track investments easily through an online portfolio management tool. |

---

● "*Merger*" refers to a step of the Restructuring Transactions whereby each Merger Series merges with and into a surviving series of the Company.

● "*Merger Consideration*" refers to the shares issued by each surviving series to the shareholders of the applicable Target Issuer, or, as the context requires, all of such shares being issued by all surviving series collectively to the shareholders of all the Target Issuers collectively.

● "*Merger Series*" are series of the Company that will be merged with and into the series in the Restructuring Transactions and cease to exist following the Restructuring Transactions.

● "*Offering"* refers to the offering of Class A shares of the series of the Company.

● "*series*" or "*surviving series*" refers generically to the series of the Company, individually and collectively, excluding the Merger Series.

● "*Shares*" refers generically to the Class A shares and Class B shares of a series or all series collectively, of the Company.

● "*SPC ordinary share*" or "*SPC ordinary share* s" refers to an ordinary share or ordinary shares collectively, representing ordinary equity interests in each segregated portfolio of Masterworks Cayman. "SPC ordinary shares" refers to, as the context requires, (i) SPC ordinary shares held by the applicable surviving series (or its successor) or (ii) SPC ordinary shares held by any person other than the applicable surviving series (or its successor), both of which have substantially identical share rights, provided that the SPC ordinary shares referenced in (ii) may be exchanged on a one-for-one basis, by such holder for Class A shares of the applicable series and will automatically be exchanged on a one-for-one basis for Class A shares of the applicable series prior to any distribution of proceeds from a sale of Artwork.

● "*SPC preferred share*" or "*SPC preferred shares*" refers to a preferred share or preferred shares collectively, representing preferred equity interests in each segregated portfolio of Masterworks Cayman, which may be issued to the Administrator following the Offering as Management Fee Shares, but only to the extent the applicable surviving series has succeeded to a Target Issuer that was obligated to issue Class A preferred shares to the Administrator prior to the Restructuring Transactions. SPC preferred shares are non-participating, have a $20.00 per share liquidation preference over SPC ordinary shares and are exchangeable on a one-for-one basis for Class A ordinary shares of the applicable surviving series.

● "*SPC shares*" refers generically to SPC ordinary shares and SPC preferred shares, collectively.

● "*Target Issuer*" refers to a Delaware limited liability company that previously conducted a Masterworks-sponsored Regulation A offering and will participate in the Restructuring Transactions described herein. References to an "applicable" Target Issuer refer to the predecessor Target Issuer that will be succeeded by the particular surviving series of the Company.

● "*Target Issuer Agreements*" refers to the agreements that the Target Issuer is a party to, including subscription agreements, the administrative services agreement (or management services agreement, as the case may be), the intercompany agreement and all other agreements between the Target Issuer (or Masterworks as agent for the Target Issuer) and third parties.

● "*we*," "*our*," "*ours*," or "*us*," refer to Masterworks Vault 16, LLC, a Delaware series limited liability company (and, as the context requires, a Texas series limited liability company), all series of the Company and the segregated portfolios of Masterworks Cayman that will hold title to the Artwork of each series, individually or collectively, as the context requires.

iv

**INCORPORATION OF CERTAIN INFORMATION BY REFERENCE**

We hereby incorporate by reference into this offering circular all of the information contained in the following filings by the Target Issuers with the Securities and Exchange Commission noted below, to the extent not otherwise modified or replaced by a subsequent filing or limited by the footnotes herein:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Predecessor Issuer<sup>(1)</sup>** | **Offering Circular Filed Pursuant to Rule 253(g)(2)<sup>(2)</sup>** | **Offering Circular Supplement Filed Pursuant to Rule 253(g)(2)** | **Annual Report on Form 1-K<sup>(3)</sup>** | **Semiannual Reports on Form 1-SA<sup>(4)</sup>** | **Current Report on Form 1-U<sup>(5)</sup>** |
| Masterworks 114, LLC | [Offering Circular Filed April 22, 2022](https://www.sec.gov/Archives/edgar/data/1911268/000149315222010694/form253g2.htm) | [Supplement No. 1 Filed May 9, 2022](https://www.sec.gov/Archives/edgar/data/1911268/000149315222012555/form253g2.htm) | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001911268/000164117225007163/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001911268/000149315225015282/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1911268/000149315224039911/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1911268/000149315224000888/form1-u.htm) |
| Masterworks 116, LLC | [Offering Circular Filed May 20, 2022](https://www.sec.gov/Archives/edgar/data/1913651/000149315222014608/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001913651/000164117225007176/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001913651/000149315225015284/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1913651/000149315224039913/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1913651/000149315224000890/form1-u.htm) |
| Masterworks 117, LLC | [Offering Circular Filed April 19, 2022](https://www.sec.gov/Archives/edgar/data/1913660/000149315222010413/form253g2.htm) | [Supplement No. 1 Filed May 9, 2022](https://www.sec.gov/Archives/edgar/data/1913660/000149315222012559/form253g2.htm) | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1913660/000164117225007177/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001913660/000149315225015285/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1913660/000149315224039936/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1913660/000149315224000891/form1-u.htm) |
| Masterworks 118, LLC | [Offering Circular Filed May 13, 2022](https://www.sec.gov/Archives/edgar/data/1914298/000149315222013309/from253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1914298/000164117225007178/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001914298/000149315225015286/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1914298/000149315224039937/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1914298/000149315224000892/form1-u.htm) |
| Masterworks 120, LLC | [Offering Circular Filed May 24, 2022](https://www.sec.gov/Archives/edgar/data/1914640/000149315222014963/form-253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1914640/000164117225007179/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001914640/000149315225015287/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1914640/000149315224039938/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1914640/000149315224000894/form1-u.htm) |
| Masterworks 121, LLC | [Offering Circular Filed June 21, 2022](https://www.sec.gov/Archives/edgar/data/1914625/000149315222017300/form253g2.htm) | [Supplement No. 1 Filed December 31, 2022](https://www.sec.gov/Archives/edgar/data/1914625/000149315222036936/form253g2.htm) | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001914625/000164117225007180/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001914625/000149315225015288/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1914625/000149315224039939/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1914625/000149315224000895/form1-u.htm); [1-U Filed December 30, 2022](https://www.sec.gov/Archives/edgar/data/1914625/000149315222037025/form1-u.htm) |
| Masterworks 122, LLC | [Offering Circular Filed May 10, 2022](https://www.sec.gov/Archives/edgar/data/1916043/000149315222012644/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001916043/000164117225007181/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001916043/000149315225015289/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1916043/000149315224039940/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1916043/000149315224000896/form1-u.htm) |
| Masterworks 123, LLC | [Offering Circular Filed June 21, 2022](https://www.sec.gov/Archives/edgar/data/1915753/000149315222017315/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1915753/000164117225007182/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001915753/000149315225015322/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1915753/000149315224039941/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1915753/000149315224000897/form1-u.htm) |
| Masterworks 125, LLC | [Offering Circular Filed July 11, 2022](https://www.sec.gov/Archives/edgar/data/1916950/000149315222019018/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001916950/000164117225007184/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001916950/000149315225015324/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1916950/000149315224039943/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1916950/000149315224000899/form1-u.htm) |
| Masterworks 127, LLC | [Offering Circular Filed June 14, 2022](https://www.sec.gov/Archives/edgar/data/1917639/000149315222016753/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001917639/000164117225007206/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001917639/000149315225015326/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1917639/000149315224039945/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1917639/000149315224000901/form1-u.htm) |
| Masterworks 128, LLC | [Offering Circular Filed July 12, 2022](https://www.sec.gov/Archives/edgar/data/1917638/000149315222019058/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1917638/000164117225007207/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001917638/000149315225015327/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1917638/000149315224039946/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1917638/000149315224000902/form1-u.htm) |
| Masterworks 129, LLC | [Offering Circular Filed June 29, 2022](https://www.sec.gov/Archives/edgar/data/1917660/000149315222018135/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1917660/000164117225007208/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001917660/000149315225015328/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1917660/000149315224039947/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1917660/000149315224000903/form1-u.htm) |
| Masterworks 130, LLC | [Offering Circular Filed June 21, 2022](https://www.sec.gov/Archives/edgar/data/1918082/000149315222017304/form253g2.htm) | [Supplement No. 1 Filed December 30, 2022](https://www.sec.gov/Archives/edgar/data/1918082/000149315222036940/form253g2.htm) | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1918082/000164117225007209/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001918082/000149315225015329/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1918082/000149315224039948/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1918082/000149315224000904/form1-u.htm); [1-U Filed December 30, 2022](https://www.sec.gov/Archives/edgar/data/1918082/000149315222037028/form1-u.htm) |
| Masterworks 131, LLC | [Offering Circular Filed July 15, 2022](https://www.sec.gov/Archives/edgar/data/1918023/000149315222019448/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1918023/000164117225007210/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001918023/000149315225015330/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1918023/000149315224039949/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1918023/000149315224000905/form1-u.htm) |
| Masterworks 132, LLC | [Offering Circular Filed July 27, 2022](https://www.sec.gov/Archives/edgar/data/1918580/000149315222020430/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1918580/000164117225007211/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001918580/000149315225015331/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1918580/000149315224039950/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1918580/000149315224000906/form1-u.htm) |
| Masterworks 133, LLC | [Offering Circular Filed July 13, 2022](https://www.sec.gov/Archives/edgar/data/1918628/000149315222019132/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1918628/000164117225007212/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001918628/000149315225015332/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1918628/000149315224039951/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1918628/000149315224000907/form1-u.htm) |
| Masterworks 134, LLC | [Offering Circular Filed August 30, 2022](https://www.sec.gov/Archives/edgar/data/1919125/000149315222024392/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1919125/000164117225007213/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001919125/000149315225015333/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1919125/000149315224036825/form1-sa.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1919125/000149315224036825/form1-sa.htm) |
| Masterworks 135, LLC | [Offering Circular Filed July 29, 2022](https://www.sec.gov/Archives/edgar/data/1919129/000149315222020610/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1919129/000164117225007214/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001919129/000149315225015334/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1919129/000149315224039953/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1919129/000149315224000909/form1-u.htm) |
| Masterworks 137, LLC | [Offering Circular Filed August 22, 2022](https://www.sec.gov/Archives/edgar/data/1920503/000149315222023718/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1920503/000164117225007249/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001920503/000149315225015336/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1920503/000149315224039955/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1920503/000149315224000910/form1-u.htm) |
| Masterworks 138, LLC | [Offering Circular Filed August 18, 2022](https://www.sec.gov/Archives/edgar/data/1921139/000149315222023477/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1921139/000164117225007250/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001921139/000149315225015367/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1921139/000149315224039976/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1921139/000149315224000911/form1-u.htm) |
| Masterworks 139, LLC | [Offering Circular Filed July 29, 2022](https://www.sec.gov/Archives/edgar/data/1920468/000149315222020596/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1920468/000164117225007251/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001920468/000149315225015368/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1920468/000149315224039977/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1920468/000149315224000912/form1-u.htm) |
| Masterworks 140, LLC | [Offering Circular Filed July 29, 2022](https://www.sec.gov/Archives/edgar/data/1922415/000149315222020608/form253g2.htm) | [Supplement No. 1 Filed December 30, 2022](https://www.sec.gov/Archives/edgar/data/1922415/000149315222036946/form253g2.htm) | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001922415/000164117225007252/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001922415/000149315225015369/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1922415/000149315224039978/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1922415/000149315224000913/form1-u.htm); [1-U Filed December 30, 2022](https://www.sec.gov/Archives/edgar/data/1922415/000149315222037030/form1-u.htm) |
| Masterworks 141, LLC | [Offering Circular Filed August 8, 2022](https://www.sec.gov/Archives/edgar/data/1922410/000149315222021642/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001922410/000164117225007253/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001922410/000149315225015370/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1922410/000149315224039979/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1922410/000149315224000914/form1-u.htm) |
| Masterworks 143, LLC | [Offering Circular Filed August 29, 2022](https://www.sec.gov/Archives/edgar/data/1922322/000149315222024298/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/0001922322/000164117225007255/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001922322/000149315225015372/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1922322/000149315224039981/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1922322/000149315224000915/form1-u.htm) |
| Masterworks 148, LLC | [Offering Circular Filed September 12, 2022](https://www.sec.gov/Archives/edgar/data/1925324/000149315222025642/form253g2.htm) | N/A | [1-K Filed April 30, 2025](https://www.sec.gov/Archives/edgar/data/1925324/000164117225007260/partii.htm) | [1-SA Filed September 26, 2025](https://www.sec.gov/Archives/edgar/data/0001925324/000149315225015377/form1-sa.htm) | [1-U Filed October 7, 2024](https://www.sec.gov/Archives/edgar/data/1925324/000149315224039986/form1-u.htm); [1-U Filed January 4, 2024](https://www.sec.gov/Archives/edgar/data/1925324/000149315224000916/form1-u.htm) |

---

(1) The
 Target Issuers each previously conducted an offering pursuant to Regulation A.

v

(2) Only
 with respect to the following sections:

● Risk Factors

● Dilution

● Description of Business

● Management's Discussion and Analysis of Financial Condition and Results of Operations

● Management Compensation

● Description of Shares

(3) Only
 with respect to the following sections:

● Management's Discussion and Analysis of Financial Condition and Results of Operations

● Financial Statements and Accompanying Notes for the Fiscal Years ended December 31, 2024 and December 31, 2023

(4) Only
 with respect to the following sections:

● Management's Discussion and Analysis of Financial Condition and Results of Operations

● Consolidated Financial Statements

(5) Includes
 Current Reports on Form 1-U that relate to the Target Issuer Agreements or otherwise materially update the information previously
 filed by the Target Issuer and incorporated by reference herein.

(6) Includes
 Offering Circular Supplements and Current Reports on Form 1-U that substantively modify a Target Issuer's Offering Circular.
 The date of such modification and a description of such modification is included in each such Offering Circular Supplement or Form
 1-U, as applicable.

To the extent any financial statements are incorporated by reference, we will provide an electronic copy of such financial statements to any holder of securities, including any beneficial owner, upon written or oral request to support@masterworks.com or (203) 518-5172 at no cost. Additionally, such financial statements will be found at masterworks.com/about/disclosure.

vi

**QUESTIONS AND ANSWERS ABOUT THIS OFFERING**

*The following questions and answers about this Offering highlight material information regarding us and this offering that is not otherwise addressed in the "Offering Summary" section of this offering circular. You should read this entire offering circular, including the section entitled "Risk Factors."*

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| | |
|:---|:---|
| **Q:** | **What is the purpose of this Offering?** |

---

A: Masterworks has determined that it is more efficient to operate the investment entities it manages in a Delaware series limited liability company structure than in a structure involving a separate limited liability company for each artwork. The purpose of the Offering is to transfer all of the assets, rights and obligations of each Target Issuer identified in this offering circular into a separate "series" of the Company.

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| | |
|:---|:---|
| **Q:** | **What is the impact of the Offering and Restructuring Transactions on a current shareholder of a Target Issuer?** |

---

A: We do not believe the Offering and the Restructuring Transactions described in this offering circular will have any material impact on current Target Issuer shareholder rights or the terms or value of their investment.

Instead of owning shares in a Target Issuer, shareholders will own shares in a newly formed series of the Company with the same assets, obligations, board of managers, capitalization and share ownership as those of the Target Issuer.

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| | |
|:---|:---|
| **Q:** | **What securities will Target Issuer shareholders own following the Offering?** |

---

A: For each Target Issuer identified in this offering circular, shareholders of such Target Issuer will receive the same number of shares in a series of the Company with the same identifying number. For example, if a Target Issuer shareholder hypothetically currently owns 50 Class A shares of Masterworks 500, LLC, assuming for purposes of this example only that Masterworks 500, LLC is a Target Issuer, following the completion of the Offering such shareholder would own 50 Class A shares of "Series 500" of the Company.

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| | |
|:---|:---|
| **Q:** | **What if a Target Issuer shareholder owns shares of other Masterworks issuers that are not identified in this offering circular?** |

---

A: Masterworks intends to execute substantially identical restructuring transactions for all investment entities it manages that own a single artwork, though the timing of such transactions may vary. Masterworks intends to restructure all Masterworks issuers that own a single Artwork through a series of similar transactions. Multiple transactions are necessary since the value of securities offered in a Regulation A offering cannot exceed $75 million. Accordingly, if a Target Issuer shareholder owns securities of one or more Masterworks issuers that are not identified in this offering circular, following this Offering and these other restructuring transactions, such shareholder will own Class A shares in one or more series of the Company and, if applicable, one or more other series of one or more other Delaware series limited liability companies.

---

| | |
|:---|:---|
| **Q:** | **Who is paying all of the costs and expenses of this Offering and the Restructuring Transactions?** |

---

A: Masterworks.

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| | |
|:---|:---|
| **Q:** | **When will these transactions occur?** |

---

A: The transactions described in this offering circular will not occur until the SEC has qualified the offering statement of which this offering circular forms an integral part.

vii

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| | |
|:---|:---|
| **Q:** | **Will these transactions affect the secondary trading market?** |

---

A: We do not anticipate any material impact on the secondary trading market. The Offering and the Restructuring Transactions contemplated by this offering circular will be executed electronically after trading hours and we do not currently expect these transactions will materially interfere with trading. We do anticipate a suspension of trading for one or two trading days following the effective date of the Restructuring Transactions to update share ownership and account records.

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| | |
|:---|:---|
| **Q:** | **How did you determine the Offering size?** |

---

A: SEC rules require that we value the Offering based on the value of the consideration given up by investors, which would equal the aggregate value of the Class A shares of the Target Issuers immediately prior to the Restructuring Transactions, excluding the Management Fee Shares. For such purposes, we use the net asset value, or "NAV" per Class A share as of the most recent practicable date and intend to update such amount prior to the qualification of the Offering. NAV per Class A share equals the most recent appraised value of the relevant artwork as determined by Masterworks, reduced by the applicable liquidation preference attributable to Management Fee Shares, if applicable, and further reduced by the aggregate profit share, if any, attributable to the Class B shares, divided by the fully diluted number of Class A shares outstanding (including all Management Fee Shares). We elected not to use the prices at which Class A shares transacted on the ATS to value the consideration due to the low trading volume and episodic nature of trading in Class A shares.

---

| | |
|:---|:---|
| **Q:** | **Will this Offering and the Restructuring Transactions have a tax impact on U.S. investors?** |

---

A: No, we do not believe these transactions will have any tax impact on U.S. investors. For a discussion of the rationale underlying this determination, see "Material U.S. Federal Tax Considerations - Taxation of the Restructuring Transactions."

---

| | |
|:---|:---|
| **Q:** | **Why do the Restructuring Transactions Contemplate Converting to a Texas Series Limited Liability Company and then back again to a Delaware Series Limited Liability Company?** |
| **A:** | Texas law is more flexible than Delaware law when it comes to mergers involving series limited liability companies which makes it more efficient and less costly to execute the Restructuring Transactions in this fashion. Both Texas and Delaware law provide for two types of series limited liability companies, "protected" and "registered". Registered series limited liability companies are more formalistic and require public filings with the State of formation to make changes to the authorized capital structure similar to corporations and to pay associated fees and taxes, while protected series limited liability companies do not require such filings or the payment of such fees and taxes associated with changes to the capital structure, similar to partnerships and traditional limited liability companies (such as the Target Issuers). Texas law allows for the merger of both protected and registered series, but Delaware law only permits the merger of registered series of registered series limited liability companies. For this reason, migrating the Company to Texas to effectuate the merger step of the Restructuring Transactions is more cost effective than converting the Company to a registered series limited liability company as would be required under Delaware law.<br>Although as a technical matter shareholders will briefly hold shares in a Texas series limited liability company during the Restructuring Transactions, our intention is to have all Restructuring steps occur as contemporaneously as is possible and these transaction steps should have no effect or consequences on shareholders.<br>|
| **Q:** | **How will existing shareholders of Target Issuers know about these transactions?** |

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A: Each Target Issuer will file a Form 1-U with the SEC when it is identified in this offering circular and upon consummation of the transactions contemplated by this offering circular. In addition, the Administrator intends to notify all existing shareholders of these transactions prior to the consummation of this Offering by electronic communications or via the Masterworks Platform at www.masterworks.com.

viii

**SERIES OFFERING TABLE** 

The table below shows key information related to the Offering and each relevant series as of the date of this offering circular. Following the Restructuring Transactions, each surviving series will beneficially own the same Artwork as its applicable Target Issuer, as summarized below.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Surviving**<br> **Series** | **Target Issuer<sup>(1)</sup>** | **Artist** | **Artwork** | **Offering Size<sup>(2)</sup>** | **Class A Shares offered in this Offering<sup>(3)</sup>** | **Management Fee Shares (Issuer)<sup>(4)</sup>** | **Management Fee Shares (Cayman)<sup>(5)</sup>** | **Surviving Series Total Class A Shares Outstanding<sup>(6)</sup>** |
| Series 114 | Masterworks 114, LLC | Andy Warhol | Flowers | $3741496 | 180400 | 8658 | 1410 | 190468 |
| Series 116 | Masterworks 116, LLC | Mark Bradford | Promise Land | $4361975 | 292750 | 12532 | 2274 | 307556 |
| Series 117 | Masterworks 117, LLC | Jean-Michel Basquiat | Untitled | $8529795 | 521700 | 21114 | 6179 | 548993 |
| Series 118 | Masterworks 118, LLC | Glenn Ligon | Stranger #55 | $1044647 | 86050 | 3545 | 680 | 90275 |
| Series 120 | Masterworks 120, LLC | Banksy | Rat & Heart | $426259 | 43100 | 1873 | 336 | 45309 |
| Series 121 | Masterworks 121, LLC | Mark Bradford | My Whole Family is from Philly | $5431230 | 388500 | 13647 | 5961 | 408108 |
| Series 122 | Masterworks 122, LLC | Banksy | Agency Job (Gleaners) | $8973616 | 596650 | 27878 | 4650 | 629178 |
| Series 123 | Masterworks 123, LLC | Albert Oehlen | Glatt (Smooth) | $1425240 | 88800 | 3251 | 1039 | 93090 |
| Series 125 | Masterworks 125, LLC | George Condo | Transparent Figures | $2839616 | 170650 | 7623 | 1326 | 179599 |
| Series 127 | Masterworks 127, LLC | Adrian Ghenie | Antelope Attacked Near Gas Pipe 2 | $2366672 | 123200 | 5500 | 960 | 129660 |
| Series 128 | Masterworks 128, LLC | Yayoi Kusama | Infinity-Nets (KHN) | $3131310 | 194250 | 8047 | 1610 | 203907 |
| Series 129 | Masterworks 129, LLC | Kazuo Shiraga | Chisuisei Tsuhien | $2662002 | 116550 | 5198 | 906 | 122654 |
| Series 130 | Masterworks 130, LLC | Adrian Ghenie | The Trip | $4043452.50 | 249750 | 8530 | 3204 | 261484 |
| Series 131 | Masterworks 131, LLC | Lucio Fontana | Concetto spaziale, Attese | $1897480 | 133250 | 5671 | 1032 | 139953 |
| Series 132 | Masterworks 132, LLC | Alighiero Boetti | Senza titolo (I verbi irregolari, Tocchi e rintocchi, Per nuovi desideri...) | $591850 | 35000 | 1548 | 270 | 36818 |
| Series 133 | Masterworks 133, LLC | Gerhard Richter | Abstraktes Bild (665-4) | $1798839.50 | 100550 | 4466 | 780 | 105796 |
| Series 134 | Masterworks 134, LLC | Zao Wou-Ki | 09.02.81 / 15.02.82 | $1425665 | 87250 | 3094 | 1120 | 91464 |
| Series 135 | Masterworks 135, LLC | Pierre Soulages | Peinture 102 x 130 cm, 11 mars 2016 | $758565.50 | 57950 | 2208 | 725 | 60883 |
| Series 137 | Masterworks 137, LLC | George Condo | Ecstatic Figures | $3319732.50 | 194250 | 7567 | 2199 | 204016 |
| Series 138 | Masterworks 138, LLC | Cecily Brown | Don't Bring Lulu | $2834002 | 139400 | 5264 | 1782 | 146446 |
| Series 139 | Masterworks 139, LLC | Albert Oehlen | Untitled (22/87) | $1614015 | 100750 | 3714 | 1226 | 105690 |
| Series 140 | Masterworks 140, LLC | Bridget Riley | Tinct | $2714712 | 158200 | 4624 | 2612 | 165436 |
| Series 141 | Masterworks 141, LLC | Alighiero Boetti | Senza titolo (tra l'incudine e il martello) | $593250.50 | 32650 | 1254 | 369 | 34273 |
| Series 143 | Masterworks 143, LLC | Sam Gilliam | Mantle | $1708512 | 88800 | 3270 | 1142 | 93212 |
| Series 148 | Masterworks 148, LLC | Sam Gilliam | Song Tropie | $949664 | 47200 | 1638 | 612 | 49450 |

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(1) The
 Target Issuers, including information referenced above relating to the Target Issuer, will be included in a pre-qualification amendment
 to the offering statement of which this offering circular forms an integral part.

(2) The
 Offering size equals the aggregate value of the Class A shares of the applicable Target Issuer immediately prior to the Restructuring
 Transactions, which equals the number of shares initially sold in the Target Issuer's Regulation A transaction multiplied by
 the Net Asset Value of such shares as of the most recent practicable date. Such amount excludes the Class A shares and other securities
 originally issued to Masterworks by the applicable Target Issuer in private transactions. For more information on how this is calculated,
 see "Determination of Offering Price." The total Offering size will not exceed $75,000,000.

(3) Reflects
 the number of Class A shares issued by the applicable series in this Offering for the Merger Consideration to holders of Class A
 shares originally issued in a Tier 2 Regulation A offering of the applicable Target Issuer. Such amount excludes Class A shares and
 other securities issuable to Masterworks privately as Merger Consideration in respect of Management Fee Shares.

(4) Reflects
 the number of Class A shares issued by the applicable series privately in connection with the Restructuring Transactions in respect
 of Management Fee Shares, including Class A shares originally issued to the Administrator which have been sold or transferred prior
 to the Restructuring Transactions. For information about the beneficial ownership of Masterworks and each series after the Restructuring
 Transactions, see "The Restructuring Transactions - Capital Structure Following the Offering."

(5) Reflects
 the number of SPC ordinary shares issued by the applicable segregated portfolio of Masterworks Cayman in respect of Management Fee
 Shares as of the date hereof, including, as applicable, SPC ordinary shares originally issued to the Administrator which have been
 exchanged for Class A shares and sold or transferred to third parties prior to the Restructuring Transactions. For information about
 the beneficial ownership of Masterworks and each series after the Restructuring Transactions, see "The Restructuring Transactions
 - Capital Structure Following the Offering." Such SPC shares are exchangeable for Class A shares of a Target Issuer and will
 be exchangeable for Class A shares of the surviving series after the Restructuring Transactions.

(6) The
 total Class A shares outstanding of each surviving series equals the number of Class A shares of the applicable Target Issuer issued,
 including Class A shares issuable upon exchange of issued and outstanding SPC shares immediately following the consummation of the
 Restructuring Transactions. The total Class A shares outstanding does not include additional Class A shares which may be issuable
 upon conversion of Class B shares.

**SUMMARY**

*This summary highlights selected information contained elsewhere in this offering circular. This summary does not contain all of the information you should consider before investing in the Class A shares of a series. You should read this entire offering circular carefully, especially the risks of investing in the Class A shares of a series discussed under "Risk Factors," before making an investment decision.*

**Overview**

We were formed as a Delaware series limited liability company on November 18, 2024 to facilitate the Restructuring Transactions. Following the Offering, we will not conduct any business activities except for activities relating to maintenance, promotion and the eventual sale of the Artworks. Our strategy will be to hold Artworks for capital appreciation. We may display and promote the Artworks to enhance their value and broaden their exposure to the art-viewing public.

We do not expect to generate any material amount of revenues or cash flow from the Artwork held by any series unless and until the Artwork of such series is sold and no profits will be realized by investors unless they are able to sell their Class A shares of the series or the Artwork of the series is sold. Pursuant to the Target Issuer Agreements (as described below), we will be totally reliant on Masterworks for administrative and asset management services and the payment of all ordinary and routine operating costs, including those relating to each series, our Company as a whole and the Artwork of each series.

**Our Series LLC Structure**

Following the Restructuring Transactions, each Artwork will be beneficially owned by a separate series of the Company. Each series will hold title to the specific Artwork that it acquires in a segregated portfolio of Masterworks Cayman SPC, or "Masterworks Cayman", a Cayman Islands segregated portfolio company. We expect that each series will be regarded as a separate partnership for U.S. federal income tax purposes and each segregated portfolio will be treated as a consolidated subsidiary for accounting purposes.

As a series limited liability company, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series of the Company are segregated and enforceable only against the assets of such series under applicable law. Similarly, as a Cayman Islands segregated portfolio company, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing of a particular segregated portfolio of Masterworks Cayman are segregated and enforceable only against the assets of such segregated portfolio under Cayman Islands law. This means that a creditor of the Company or Masterworks Cayman would only be entitled to recover against assets attributed and credited to the specific series of the Company or segregated portfolio of Masterworks Cayman, as applicable, to which the obligation is attributed.

The Class A shares represent an investment solely in a particular series and, thus, indirectly in the Artwork beneficially owned by that series. The Class A shares do not represent a general investment in our Company or in Masterworks. Immediately following the completion of the Offering and the Restructuring Transactions, no series of the Company nor any segregated portfolio of Masterworks Cayman will beneficially own any material assets other than the single Artwork associated with such series or have any indebtedness or commercial obligations, other than those assumed under the Target Issuer Agreements.

**The Restructuring Transactions**

The purpose of the Offering and the Restructuring Transactions is to increase the efficiency of Masterworks operations by reducing the number of Masterworks issuer entities through a series of transactions, including a business combination, whereby each Target Issuer will be "rolled up" into a newly formed separate series of the Company. Each new series will have the same capitalization and share ownership as the applicable Target Issuer and will beneficially own the same Artwork, with no other material assets or liabilities and substantially the same contractual rights and obligations, tax attributes and governance as the applicable Target Issuer. As a result of the Offering and the Restructuring Transactions, existing members of each Target Issuer will receive one Class A share in a newly formed series of the Company in respect of each Class A share they hold in each Target Issuer with substantially the same voting and other rights as the Class A share held in the applicable Target Issuer.

Prior to the qualification of this offering circular, the Company will convert to a Texas series limited liability company pursuant to Section 10 of the Texas Business Organizations Code ("TBOC") and will form two protected series in Texas in respect of each Target Issuer.

The Restructuring Transactions will comprise the following transactions which are expected to occur substantially concurrently following the qualification of the offering statement of which this offering circular forms an integral part:

● **Asset Transfers and Assignments.** All of the assets of each Target Issuer will be transferred to a newly formed series of the Company (each, a "Merger Series") in exchange for 100% of the shares of such Merger Series (the "Asset Transfer"). At the same time, each Target Issuer will assign to the applicable Merger Series all agreements to which it is a party and all of its rights to agreements to which the Administrator is a party acting on its behalf (collectively, the "Target Issuer Agreements") pursuant to assignment and assumption agreements, the form of which is filed as Exhibit 6.3 to the offering statement of which this offering circular forms an integral part. In addition, each series will assume pre-existing obligations of the applicable Target Issuer to exchange Management Fee Shares that are SPC shares for Class A ordinary shares in such series on a one-for-one basis.

● **Distributions**. Immediately following the Asset Transfer, each Target Issuer will distribute one share of the applicable Merger Series to each shareholder of such Target Issuer for each share of the same class of Target Issuer they hold, such that following the share distribution, each Merger Series shall have the exact same capitalization and share ownership as the applicable Target Issuer and each shareholder of such Target Issuer (including Masterworks) will hold the same number of shares of the same class(es) in Merger Series as they hold in Target Issuer (the "Distribution"). The Board of Managers of each Target Issuer will declare a record date and effective time prior to the Distribution and the transfer agent for each Target Issuer and the Company will update its books and records to reflect the Distribution once completed.

● **Merger**. Immediately following the Distribution, each Merger Series will merge with and into (collectively, the "Merger") a newly created series of the Company ("series" or "surviving series") pursuant to a merger agreement, the form of which is filed as Exhibit 6.4 to the offering statement of which this offering circular forms an integral part, and each outstanding share of Merger Series will be converted into the Merger Consideration which consists of one share of the surviving series of the same class as the Merger Series share. The surviving series will succeed to all rights and obligations of Target Issuers under Target Issuer Agreements as a result of the aforementioned assignment and Merger. Following the Merger, the Company will convert back into a Delaware series limited liability company.

● **Dissolution**. Under each Target Issuer's operating agreement, the Target Issuer shall commence its winding up and dissolution without the need for shareholder approval upon the Target Issuer's insolvency and/or upon a sale of all or substantially all of its assets (which expressly includes a sale of 100% of the equity interests of any subsidiary of the Target Issuer which owns the underlying artwork). Immediately following the Distributions, the Company believes the Target Issuer will be insolvent under Delaware law since it will have no assets and no ability to pay its debts. In addition, the Company believes the distribution itself constitutes a sale of all the assets of the Target Issuer for purposes of the operating agreement, since the intent of the provision is to permit dissolution when there would be no purpose or benefit to maintain the existence of the Target Issuer. Accordingly, each Target Issuer will be dissolved (the "Dissolution") after the Merger and any outstanding membership interests in such Target Issuer will be concurrently extinguished.

**Economic and Voting Rights**

The following table further describes the economic and voting rights of each share class of a series following the completion of the Offering and the Restructuring Transactions:

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| | |
|:---|:---|
| Share Class | Summary of Economic and Voting Rights |
| Class A shares | The Class A shares of each series being offered in each series offering will represent in the aggregate 100% of our members' capital accounts of each such series and an 80% interest in the profits we recognize upon any sale of the Artwork of such series, after deduction of all management fees and other expenses. The Class A shares of each series have no voting rights other than to vote together as a single class on certain matters that disproportionately and adversely affect such series in relation to any other series and to vote together as a single class and together with holders of all voting Class A shares outstanding of all series together as a single class to remove and replace the Administrator, to remove a member of the Board of Managers for "cause" and to approve certain acts as described in our operating agreement. |
| Class B shares | The Class B shares of each series initially held by Masterworks are profits interests that will represent 0% of our members' capital accounts in such series and a 20% interest in the profits we recognize upon any sale of the Artwork of such series, after deduction of all management fees and other expenses. The Class B shares of each series have no voting rights. |
| Class C share | The Class C share of each series represents a special class of membership interests, which has no economic rights or obligations. The holder of the Class C share of each series has no voting rights, but does have the right to remove and or replace all or any members of the Board of Managers and reconstitute the Board without "cause" for any reason. |

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**Masterworks Management Fee Shares and Compensation Arrangements**

Masterworks compensation arrangements will not change as a result of the Restructuring Transactions and existing compensation arrangements for each Target Issuer will be assumed by each surviving series. Masterworks compensation for all Target Issuers and for each surviving series consists of a 20% share of profits in the form of Class B shares and a 1.5% per annum issuance of Management Fee Shares for administrative services performed by the Administrator and as reimbursement for ordinary and necessary administrative costs and expenses paid by the Administrator on behalf of the Target Issuer and Masterworks Cayman. In addition, at the time of the Target Issuer's initial Regulation A offering, Masterworks received a one-time payment from each Target Issuer equal to 10% of the offering amount as an expense allocation, or "true up". No additional expense allocation will be paid in connection with the Restructuring Transactions or this Offering. Management Fee Shares are not part of this Offering and therefore will remain "restricted securities" following this Offering.

**Company Information**

We are a manager-managed series limited liability company, managed by the Board of Managers. Our principal office is located at 1 World Trade Center, 57th Floor, New York, New York 10007 and our phone number is (203) 518-5172. Our corporate website address is the website address of Masterworks at www.masterworks.com. Information contained on, or accessible through, the website is not a part of, and is not incorporated by reference into, this offering circular.

**THE OFFERING**

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| | |
|:---|:---|
| **Securities being Offered** | We are offering the number of Class A ordinary shares of each series referenced in the "Series Offering Table".<br>Each series is intended to be a separate series of the Company for purposes of accounting for assets and liabilities and tax reporting. See "Description of Shares" for further details. The Class A shares of each series will be non-voting except with respect to certain matters set forth in our operating agreement. The ownership of Class A shares in a particular series is an investment only in that series and not an investment in the Company as a whole or Masterworks. |
| **Number of Shares Outstanding Before the Offering** | Prior to giving effect to the Offering, 100% of the membership interests of each series are held by Masterworks in the form of 1,000 Class B shares of such series. |
| **Second Amended and Restated Operating Agreement** | Our second amended and restated operating agreement, referred to herein as the "operating agreement," created up to four classes of membership interests for each series in the form of Class A ordinary shares of a series, Class A preferred shares of a series, Class B shares of a series, as well as a Class C share of a series. The operating agreement also provides that each series that is a successor in interest to a Target Issuer shall only be authorized to issue the classes of shares and the number of shares of each class as was authorized by the Target Issuer prior to the Restructuring Transactions, unless such series obtains the requisite consent of holders of voting shares to authorize the issuance of additional share classes or shares. By virtue of the Offering and the Restructuring Transactions, investors will become party to the operating agreement. |
| **Number of Shares Outstanding After the Offering** | The number of Class A shares of each series is set forth in the "Series Offering Table" section in the forepart of this offering circular, which excludes Management Fee Shares. No additional Class A shares will be outstanding immediately after the closing of the Offering, but Masterworks will continue to earn Management Fee Shares in each segregated portfolio at the rate of 1.5% per annum in respect of management and administrative services and administrative costs and expenses, pursuant to and in accordance with the terms of the Target Issuer Agreements which shall apply to the surviving series to the same extent as they applied to the Target Issuers prior to the Restructuring Transactions.<br>1,000 Class B shares of each series (100% held by Masterworks) that will entitle Masterworks to a 20% profits interest upon a sale of the Artwork of each series and will be convertible into Class A shares of each respective series based on a formula that would result in the issuance of a number of Class A shares of each series to Masterworks equal to the quotient of (a) 20% of the aggregate increase in value of the issued and outstanding Class A and Class B shares of each series over the $20.00 initial offering price, divided by (b) the value of the Class A shares of each series at the time of conversion.<br>Each series will have an authorized Class C share. A Class C share of a series has no economic rights or obligations and has no voting rights, but has so-called "kick-out" rights, which represents the right to remove and or replace all or any members of the Board of Managers of the Company and reconstitute the Board without "cause" for any reason. The Class C shares can only be issued to, transferred to, or, held by, a Masterworks affiliate and there can only be one holder of Class C shares of all series of the Company at any point in time. |

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| | |
|:---|:---|
| **The Restructuring Transactions** | The Restructuring Transactions contemplate an Asset Transfer, Distribution, Merger and Dissolution. See the section entitled "The Restructuring Transactions" for further information. As a result of the Offering and the Restructuring Transactions, each shareholder of each Target Issuer will receive one share of the applicable series for each share they hold in the Target Issuer with substantially the same economic and voting rights in the series as they currently hold in the Target Issuer. |
| **Investment Amount Restrictions** | To invest in the Offering, the aggregate purchase price you pay for your investment cannot be more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. For general information on investing, you are encouraged to refer to <u>www.investor.gov</u>. As a result of the Restructuring Transactions, the series have received representations that all persons that are eligible to participate in this Offering are "qualified purchasers" (as defined in Regulation A under the Securities Act). |
| **Voting Rights** | The Class A shares of each series have no voting rights other than to vote together as a single class on certain matters that disproportionately and adversely affect such series in relation to any other series and to vote together as a single class and together with holders of all voting Class A shares outstanding of all series together as a single class to remove and replace the Administrator, to remove a member of the Board of Managers for "cause" and to approve certain acts as described in our operating agreement, including certain proposed amendments to the operating agreement.<br>The Class B shares of each series have no voting rights.<br>The Class C share of each series, which can only be held by or transferred to a Masterworks affiliate, will have the right to remove and or replace all or any members of the Board of Managers and reconstitute the Board without "cause" for any reason.<br>Any member that beneficially owns 5% or more of the Class A shares of a series (excluding shares beneficially owned by Masterworks) may irrevocably limit or eliminate its voting rights pursuant to our operating agreement. Class A shares held by Masterworks, if any, are non-voting. Any member of a Target Issuer who limited or eliminated its voting rights pursuant to the applicable operating agreement or subscription agreement shall be automatically subject to the same voting limit with respect to the applicable surviving series. |

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| | |
|:---|:---|
| **Risk Factors** | Investing in the Class A shares of any series involves risks. See the section entitled "Risk Factors" for a discussion of factors you should carefully consider. |
| **Use of Proceeds** | We expect to receive gross in-kind proceeds in connection with the Offering and the Restructuring Transactions as set forth in the "Use of Proceeds to Issuer" section of this offering circular. Masterworks will pay all expenses of the Offering and the Restructuring Transactions, including fees and expenses associated with qualification of the Offering under Regulation A. Therefore, the gross proceeds received in connection with the Offering and Restructuring Transactions will equal the net proceeds received in connection with the Offering and the Restructuring Transactions. |

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| | |
|:---|:---|
| **Closing** | The Company will close the entire Offering at one time. Each Target Issuer will file a Form 1-U with the SEC when it is identified in this offering circular and upon consummation of the transactions contemplated by this offering circular. In addition, the Administrator intends to notify all existing shareholders of these transactions prior to the consummation of this Offering by electronic communications or via the Masterworks Platform at www.masterworks.com. |
| **Termination of the Offering** | We reserve the right to terminate the Offering for any reason at any time prior to the closing. |

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| | |
|:---|:---|
| **Transfer Restrictions** | The Class A shares of a series may only be transferred by operation of law or with the consent of the Company: |

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● To an immediate family member or an affiliate of the owner of the Class A shares of a series,

● To a trust or other entity for estate or tax planning purposes,

● As a charitable gift,

● On a trading platform approved by Masterworks, such as the ATS, or

● In a transaction otherwise approved by Masterworks.

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| | |
|:---|:---|
| **Transfer Agent**<br> **and Registrar** | The transfer agent and registrar for the Class A shares of any series is Equity Stock Transfer, LLC. The transfer agent's address is 237 West 37th Street, Suite 602, New York, New York 10018. The transfer agent's telephone number is (212) 575-5757. |
| **Distributions** | None, unless and until there is a sale of the Artwork of a series, at which point we plan to pay a distribution to the shareholders of such series. There can be no assurance as to the timing of a distribution or that we will pay a distribution at all. |

---

**DETERMINATION OF OFFERING PRICE**

The Offering size equals the aggregate value of the Class A shares of the Target Issuers immediately prior to the Restructuring Transactions, excluding the Management Fee Shares. For such purposes, we use the net asset value, or "NAV" per Class A share as of the most recent practicable date. NAV per Class A share equals the most recent appraised value of the relevant artwork as determined by Masterworks, reduced by the applicable liquidation preference attributable to Management Fee Shares, if applicable, and further reduced by the aggregate profit share, if any, attributable to the Class B shares, divided by the fully diluted number of Class A shares outstanding (including all Management Fee Shares).

**SERIES DISTRIBUTION POLICY**

No series has made distributions on the Class A shares of such series since our formation and we do not anticipate making distributions in the foreseeable future on any Class A shares, unless and until the Artwork held by such series is sold, at which point we will pay any expenses for which we are responsible and make a distribution to the holders of the Class A shares of such series in accordance with our operating agreement. There can be no assurance as to the timing of a distribution or that we will pay a distribution at all. There are no contractual restrictions on the ability of a series to make distributions.

**RISK FACTORS**

In general, we do not believe that there are any significant risk factors associated with this Offering or the Restructuring Transactions. However, investors should carefully consider the following specific risk factors, in addition to the other information set forth in this offering circular, to understand the risks associated with the Company and an investment in the Class A shares of any series of the Company.

Investors should also read the section entitled "Risk Factors" in the offering circular of each Target Issuer, which is incorporated by reference herein and shall apply in whole to each relevant series after giving effect to the Restructuring Transactions. See "Incorporation of Certain Information by Reference."

**Risks Related to our Business Model**

***Following the Offering, owning Class A shares in a series of the Company constitutes only an investment in that series and not in our Company or directly in any Artwork.***

An investor will acquire an ownership interest in a series following the Offering and the Restructuring Transactions and not, for the avoidance of doubt, in (i) our Company, (ii) any other series (unless applicable), (iii) Masterworks, or (iv) directly in an Artwork associated with the series or any Artwork owned by any other series. This results in limited voting rights of the investor, including rights solely related to a particular series, and are further limited by the operating agreement, described further herein. Investors will have voting rights only with respect to certain matters, primarily relating to amendments to the operating agreement that would adversely change the rights of the interest holders and removal of a member of the Board of Managers of the Company for "cause." Masterworks thus retains significant control over the management of the Company, each series and the Artworks. Furthermore, because the interests in a series do not constitute an investment in the Company as a whole, holders of the interests in a series are not expected to receive any economic benefit from the assets of any other series. In addition, the economic interest of a holder of Class A shares in a series reflects an investment in an Artwork, but also an interest in our corporate and governance structure and our management arrangement with Masterworks. Accordingly, ownership of Class A shares is not identical to owning a direct undivided interest in an Artwork.

**Risks Related to our Reliance on Masterworks**

***The Board of Managers will have complete authority to administer our business consistent with the terms and conditions of our operating agreement, with limited exceptions.***

The Board of Managers will have sole voting power over all matters, including: mergers, consolidations, acquisitions, winding up and dissolution; except, the Board of Managers shall not have the authority to do any of the following without first obtaining the prior approval or consent of the holders of a majority of the voting shares of any series affected, except as otherwise set forth therein:

● Amend, waive or fail to comply with any material provision of the operating agreement that disproportionately and adversely affects the Class A shareholders of such series;

● Acquire additional material assets other than the Artwork of each series, incur debt for borrowed money or engage in business activities that are unrelated to the ownership, maintenance, promotion and sale of the Artwork of a series; or

● Issue additional shares other than pursuant to the agreements and instruments described herein.

Additionally, we, in our sole and absolute discretion, may decide to sell the Artwork of a series at any time and in any manner.

This concentration of control in the Board of Managers may delay, deter or prevent acts that would be favored by holders of the Class A shares of a series. The interests of the Board of Managers or the Administrator may not always coincide with our interests or the interests of the holders of the Class A shares of a series. As a result, the market price of the Class A shares of a series could decline, or holders of the Class A shares of a series might not receive a premium over the then-current market price of the Class A shares of a series upon a change in control.

***Holders of the Class A shares of a series do not elect or vote on the Board of Managers and have limited ability to influence decisions regarding our business.***

Our operating agreement provides that our assets, affairs and business will be managed under the direction of the Board of Managers. Holders of the Class A shares of a series do not elect or vote on the Board of Managers and, except for kick-out rights granted to Masterworks, members of the Board of Managers can only be removed by (i) a majority of the existing Board of Managers, or (ii) by the affirmative vote of holders of two-thirds (2/3) of the voting Class A shares outstanding of each series voting separately as a class and of all series together voting as a single class and only for "cause", as defined in the operating agreement. Accordingly, unlike the holders of common stock in a corporation, holders of Class A shares of a series have only limited voting rights on matters affecting our business, and therefore limited ability to influence decisions regarding our business.

**Risks Relating to Potential Conflicts of Interest**

***Although Masterworks will own 1,000 Class B shares of each series representing a 20% profits interest in such series, and will beneficially own Class A shares of each series following this Offering, Masterworks may eventually forfeit, sell or transfer its shares.***

The alignment that will exist upon the final closing of this Offering between Masterworks and the shareholders of each series in this Offering may not exist in the future. Masterworks earns the vast majority of its management fees and obtains profits interests in the form of equity interests in issuers sponsored on the Masterworks Platform and periodically sells these equity interests for cash consideration. In addition, Masterworks entered into a revolving secured promissory note with the Lynn Family Trust 001 pursuant to which it pledged substantially all of its assets, including any and all equity interests it owns in the Company, as collateral for borrowings thereunder. If Masterworks were to default under the revolving promissory note, such default could result in a forfeiture of its interests in the Company. If Masterworks were to forfeit, sell or transfer a significant portion of its shares in the Company or Masterworks Cayman, the interests of Masterworks may differ significantly from those of investors in this Offering and subsequent holders of the Class A shares. As a result, we cannot assure investors that the alignment between Masterworks and investors will exist in the future or that Masterworks will execute a discretionary sale of the Artwork of a series at a time that is in the best interests of holders of the Class A shares of such series.

***As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements, including the requirements for a board of directors or independent board committees.***

We do not intend to list the Class A shares of any series on a national securities exchange. As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements that an issuer listing on a national stock exchange would be. The Board of Managers is made up of Nigel Glenday, Joshua B. Goldstein, and Eli D. Broverman. One of the members of the Board of Managers, Eli D. Broverman, serves as the Independent Manager on the Board of Managers (the "Independent Manager"). The Independent Manager serves to protect the interests of the holders of the Class A shares of all series and is tasked with reviewing and approving all related party transactions of our Company with our affiliates and address all conflicts of interest that may arise between us and the holders of the Class A shares of any series and our affiliates. If the Independent Manager resigns from such position on the Board of Managers at any time, the remaining members of the Board of Managers shall appoint a replacement that meets the standards of an independent director pursuant to the standards set forth in NASDAQ Marketplace Rule 4200(a)(15). Accordingly, we do not have, nor are we required to have (i) a board of directors of which a majority consists of "independent" directors under the listing standards of a national stock exchange, (ii) an audit committee composed entirely of independent directors and a written audit committee charter meeting a national stock exchange's requirements, (iii) a nominating/corporate governance committee composed entirely of independent directors and a written nominating/corporate governance committee charter meeting a national stock exchange's requirements, (iv) a compensation committee composed entirely of independent directors and a written compensation committee charter meeting the requirements of a national stock exchange and (v) independent audits of our internal controls. Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of a company listed on a national stock exchange.

***We are party to agreements that exculpate the Board of Managers, the Administrator and its affiliates, and certain other persons engaged on behalf of the Administrator from liabilities with respect to certain actions taken, even if such actions are negligent, which also reduces the remedies available to investors for certain acts by such persons.***

Our operating agreement limits the liability of the Board of Managers, any of our members, any person who is an officer of ours and any person who serves at the request of the Board of Managers on behalf of us as an officer, director, members of the Board of Managers, Independent Manager, partner, member, stockholder or employee of such person. The Target Issuer Agreements limit the liability of the Administrator, its affiliates, managers, officers and members. None of the foregoing persons shall be liable to us or the Administrator or any other member of us for any action taken or omitted to be taken by it or by other person with respect to us, including any negligent act or failure to act, except in the case of a liability resulting from any of the foregoing person's own actual fraud, gross negligence, willful misconduct, bad faith, breach of fiduciary duties that have not been waived, reckless disregard of duty or any intentional and material breach of the operating agreement or conduct that is subject of a criminal proceeding (where such person has reasonable cause to believe that such conduct was unlawful). With the prior consent of the Board of Managers, any of the foregoing persons may consult with legal counsel and accountants with respect to our affairs (including interpretations of the operating agreement) and shall be fully protected and justified in any action or inaction which is taken or omitted in good faith, in reliance upon and in accordance with the opinion or advice of such counsel or accountants. In determining whether any of the foregoing persons acted with the requisite degree of care, such person shall be entitled to rely on written or oral reports, opinions, certificates and other statements of the members of the Board of Managers, officers, employees, consultants, attorneys, accountants and professional advisors of us selected with reasonable care; provided, that no such person may rely upon such statements if it believed that such statements were materially false. The foregoing limitations on liability reduce the remedies available to the holders of the Class A shares of any series for actions taken which may negatively affect us.

***Our appraisal of the fair market value of an Artwork may differ from the appraisal that would be issued by an independent third-party and you are cautioned not to place undue reliance on any appraisal issued by Masterworks.***

Appraisals are performed by employees of the Administrator and, therefore, Masterworks has conflicts of interest in performing appraisals. Masterworks performs appraisals of artwork in conformity with the 2024-2025 Uniform Standards of Professional Appraisal Practice (USPAP) developed by the Appraisal Standards Board of the Appraisal Foundation, although conflicts of interest may call into question standards related to appraiser independence. Accordingly, our appraisal of the fair market value of an Artwork may differ from the appraisal that would be issued by an independent third party and you are cautioned not to place undue reliance on any appraisal issued by Masterworks.

**Risks Relating to Ownership of the Class A shares of a series and the Offering**

***Our operating agreement designates the federal district courts of the United States of America as the exclusive forum for disputes between us and our shareholders involving claims under the Securities Act, which, if enforced by the courts, will restrict our shareholders' ability to choose the judicial forum for Securities Act disputes.***

Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all Securities Act actions. Accordingly, both state and federal courts have jurisdiction to entertain such claims. To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our operating agreement provides that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act. There is uncertainty as to whether a court would enforce such provision, and the enforceability of similar choice of forum provisions in other companies' constitutive documents has been challenged in legal proceedings. While the Delaware courts have determined that such choice of forum provisions are facially valid, a shareholder may nevertheless seek to bring a claim in a venue other than those designated in the exclusive forum provisions. In such instance, we would expect to vigorously assert the validity and enforceability of the exclusive forum provisions of our operating agreement. This may require significant additional costs associated with resolving such action in other jurisdictions and there can be no assurance that the provisions will be enforced by a court in those other jurisdictions.

This choice of forum provision may limit a shareholder's ability to bring a Securities Act claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, or other employees. If a court were to find the exclusive-forum provision in our operating agreement to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could seriously harm our financial condition.

***The Class A shareholders of a series will have very limited voting rights and we will have the ability to sell the Artwork of a series without shareholder approval.***

Our operating agreement provides that the assets, affairs and business of our Company will be managed under the direction of our Board of Managers. Our Board of Managers, in their sole and absolute discretion, will have the ability to sell the Artwork of a series at any time and in any manner. Our shareholders do not elect or vote on our Board of Managers. The Class A shares of each series have no voting rights other than to vote together a single class on certain matters that disproportionately and adversely affect such series in relation to any other series and to vote together as a single class and together with holders of all voting Class A shares outstanding of all series together as a single class to remove and replace the Administrator, to remove a member of the Board of Managers for "cause" and to approve certain acts as described in our operating agreement, including certain proposed amendments to the operating agreement.

Each outstanding Class A share of a series entitles the holder to one vote on all matters submitted to a vote of shareholders of such series, provided, that Class A shares of a series beneficially owned by Masterworks, if any, and shares of a series held by certain shareholders of such series that irrevocably elect to limit or eliminate their voting rights, if any, shall not vote. Generally, matters to be voted on by our shareholders must be approved by a majority of the votes cast by all Class A shares of an affected series or of all the series of our Company as one group, as applicable, present in person or represented by proxy, although the vote to remove a member of the Board of Managers for "cause" or to remove and replace the Administrator requires a two-thirds (2/3) vote of the voting shares of each series voting separately as a class and all of the series then existing voting as a single class. If any vote occurs, you will be bound by the majority or supermajority vote, as applicable, even if you did not vote with the majority or supermajority.

***We will be required to publicly report on an ongoing basis under the reporting rules set forth in Regulation A for Tier 2 issuers. Therefore, we will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not "emerging growth companies," and our investors could receive less information than they might expect to receive from exchange traded public companies.***

We will be required to publicly report on an ongoing basis under the reporting rules set forth in Regulation A for Tier 2 issuers. The ongoing reporting requirements under Regulation A are more relaxed than for "emerging growth companies" under the Exchange Act. The differences include, but are not limited to, being required to file only annual and semiannual reports, rather than annual and quarterly reports. Annual reports are due within 120 calendar days after the end of the issuer's fiscal year, and semiannual reports are due within 90 calendar days after the end of the first six months of the issuer's fiscal year. Therefore, our investors could receive less information than they might expect to receive from exchange traded public companies.

***Because we do not have an audit committee, holders of the Class A shares of a series will have to rely on our Board of Managers and the Independent Manager to perform these functions.***

We do not have an audit committee. The Board of Managers, made up of Nigel Glenday, Joshua B. Goldstein and Eli D. Broverman will perform the duties normally performed by an audit committee for an entity such as ours. One of the members of the Board of Managers, Eli D. Broverman, serves as the Independent Manager on the Board of Managers. The Independent Manager serves to protect the interests of the holders of the Class A shares of each series and is tasked with reviewing and approving all related party transactions between us and our affiliates and address all conflicts of interest that may arise between us and the holders of the Class A shares of each series and our affiliates. If the Independent Manager resigns from such position on the Board of Managers at any time, the remaining members of the Board of Managers shall appoint a replacement that meets the standards of an independent director pursuant to the standards set forth on NASDAQ pursuant to NASDAQ Marketplace Rule 4200(a)(15).

***Provisions of our Certificate of Formation and our Operating Agreement may delay or prevent a take-over which may not be in the best interests of holders of the Class A shares of a series.***

Provisions of our Certificate of Formation and the operating agreement may be deemed to have anti-takeover effects, which include, among others, the Board of Managers having sole and exclusive control of the operations of us with the exclusion of the holders of the Class A shares of a series being able to vote upon certain limited circumstances, and may delay, defer or prevent a takeover attempt.

***If certain Masterworks advertisements are considered offers, we may not meet traditional offering circulars delivery requirements.***

The rules adopted by the SEC related to Regulation A offerings under the Securities Act require that any written offer be accompanied with or preceded by an offering circular. Section 2(a)(3) of the Securities Act defines the term "offer" expansively to include "every attempt or offer to dispose of, or solicitation of an offer to buy, a security or interest in a security, for value" and the Company understands that the SEC has consistently taken a very broad view of what may constitute an offer. Masterworks has previously produced advertisements on mediums such as television that may be deemed to be "offers" under the Securities Act.

In the future, Masterworks may disseminate advertisements on mediums, such as television, radio, or direct mail, that may not satisfy traditional offering circular delivery requirements under the Securities Act and may relate to advisory services or financial products sold pursuant to exemptions that do not require delivery of an offering circular. However, if any such advertisements are deemed to be "offers" of securities in this Regulation A offering, such communications could violate the securities laws and could result in fines, penalties and or other remedial actions. This could adversely affect our business and results of operations, and we may be forced to terminate series offerings or sell the Artwork of each affected series. In addition, Masterworks may need to discontinue or suspend certain types of advertisements, which would likely be harmful to its business and may have a material adverse effect on the Company and Class A shareholders.

***There is a risk that persons who receive Class A shares offered hereby are not "qualified purchasers" as defined in Regulation A under the Securities Act, which may have adverse effects on the Company's ability to effectuate the Offering and the Restructuring Transactions as contemplated.***

To complete the Offering in accordance with Regulation A the Company has an affirmative obligation to comply with the conditions of Regulation A, including the requirement that the Class A shares of each series be offered and sold only to "qualified purchasers."

The Company does not intend to obtain new representations from investors in each Target Issuer that they are an "accredited investor" or "qualified purchaser", but rather, intends to rely on "qualified purchaser" representations previously made by all persons to whom the Offering is directed which will be assigned to the Company and information already in its possession, including information collected directly from investors in Target Issuers. Further, there is no cash consideration involved in the Offering and the Offering, viewed in conjunction with the Restructuring Transactions, involves no change in economic value with respect to any shareholder's existing investment. Such approach has not been endorsed by the SEC or other regulatory or judicial authority and there is a risk they would disagree with the Company's position.

There is a risk that not all participants in the Offering are "qualified purchasers". The Company's failure to address this risk could result in a determination that the exemption from the registration requirements of the Securities Act of 1933 afforded by Regulation A is inapplicable to the Offering, which could result in a violation of applicable securities laws. In such event, the Company may be unable to consummate the Offering, may seek to consummate the offering through an alternative transaction structure and or may be required to take remedial action, which may include abandoning, reversing or rescinding the transactions contemplated by this offering statement.

**DILUTION**

No dilution will occur as a result of the Restructuring Transactions or the Offering. However, Masterworks will receive securities exchangeable for Class A shares following the completion of the Offering in accordance with the Target Issuer Agreements. Such dilution is described in each offering circular of the Target Issuers, which is incorporated by reference herein. See "Incorporation of Certain Information by Reference."

**PLAN OF DISTRIBUTION**

The Class A shares of each series are being offered in respect of the Merger Consideration in connection with the Restructuring Transactions, such that all of the assets, rights and obligations of each Target Issuer are transferred into a separate series of the Company. The Offering will only be available to existing members of the Target Issuers and no action is required on the part of the existing members of the Target Issuers in connection with this Offering.

Masterworks, and not the Company or any series, will pay all of the expenses incurred in connection with the Offering and the Restructuring Transactions and neither the Company nor any series will receive any cash consideration from the Offering. The Offering is not being conducted through underwriters and neither Masterworks, LLC nor any other affiliated entity involved in the Offering is currently a member firm of FINRA.

Following the consummation of the Offering, the Class A shares will be distributed to members of the Target Issuers automatically through the Masterworks Platform and all records will be updated by the Target Issuers, the Company and the transfer agent as promptly as possible. The Administrator intends to notify all existing members of the Target Issuers of the Restructuring Transactions prior to the consummation of this Offering by electronic communications or via the Masterworks Platform.

**Transfer Agent and Registrar**

The transfer agent and registrar for the Class A shares of each series is Equity Stock Transfer, LLC. The transfer agent's address is 237 West 37th Street, Suite 602, New York, New York 10018. The transfer agent's telephone number is 212-575-5757. We intend to avoid registration of the Class A shares of each series under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and may avail ourselves of the conditional limitation on shares "held of record" contained in Rule 12g5-1(a)(7) of the Exchange Act. In connection with any shareholder distributions upon a sale of an Artwork of a series, we may also engage Equity Stock Transfer, LLP as paying agent in accordance with the terms of our operating agreement.

**Book-Entry Records of Class A shares**

Following the Offering and the Restructuring Transactions, share registers will be updated by the transfer agent to reflect the membership of each series, which shall be identical to the share registry of each Target Issuer prior to giving effect to the Offering and the Restructuring Transactions. Ownership of the Class A shares will be represented in "book-entry" only form directly in the name of the respective owner of the Class A shares and shall be recorded by the Company and no physical certificates shall be issued, nor received, by the Company or any other person. The Company or Masterworks shall send out email confirmations of positions and notifications of changes "from" us upon each and every event affecting any person's ownership interest.

**Investment Amount Limitations**

As a result of the Restructuring Transactions, each series of the Company has been assigned Target Issuer shareholder representations contained in subscription agreements and secondary transaction agreements that the shareholders of the Target Issuers are each a "qualified purchaser" (as defined in Regulation A under the Securities Act).

As a Tier 2, Regulation A offering, investors must either comply with the 10% limitation on investment or be an "Accredited Investor," as defined under Rule 501 of Regulation D. If you meet one of the following tests you should qualify as an Accredited Investor:

(i) You
 are a natural person who has had individual income in excess of $200,000 in each of the two most recent years, or joint income with
 your spouse or spousal equivalent in excess of $300,000 in each of these years, and have a reasonable expectation of reaching the
 same income level in the current year;

(ii) You
 are a natural person and your individual net worth, or joint net worth with your spouse or spousal equivalent, exceeds $1,000,000
 at the time you purchase Class A shares (please see below on how to calculate your net worth);

(iii) You
 are a director, executive officer or general partner of the issuer or a director, executive officer, or general partner of the general
 partner of the issuer;

(iv) You
 are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the Code, a corporation,
 a Massachusetts or similar business trust or a partnership, or limited liability company, not formed for the specific purpose of
 acquiring the Class A shares, with total assets in excess of $5,000,000;

(v) You
 are a bank or a savings and loan association or other institution as defined in the Securities Act, a broker or dealer registered
 pursuant to Section 15 of the Exchange Act, an investment advisor registered pursuant to the Investment Advisers Act of 1940 or registered
 pursuant to the laws of a state, an investment advisor relying on the exemption of registering with the SEC under the Investment
 Advisers Act of 1940, an insurance company as defined by the Securities Act, an investment company registered under the Investment
 Company Act of 1940, or a business development company as defined in that act, any Small Business Investment Company licensed by
 the Small Business Investment Act of 1958, or a Rural Business Investment Company as defined in the Consolidated Farm and Rural Development
 Act, or a private business development company as defined in the Investment Advisers Act of 1940;

(vi) You
 are an entity (including an Individual Retirement Account trust) in which each equity owner is an accredited investor;

(vii) You
 are a trust with total assets in excess of $5,000,000, your purchase of Class A shares is directed by a person who either alone or
 with his purchaser representative(s) (as defined in Regulation D promulgated under the Securities Act) has such knowledge and experience
 in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment, and you were
 not formed for the specific purpose of investing in the Class A shares; or

(viii) You
 are a 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 assets in excess of $5,000,000; an 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 such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser,
 or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made
 solely by persons that are accredited investors;

(ix) You
 are an entity, of a type not listed in the above paragraphs (iv), (v), (vi), (vii), or (viii), not formed for the specific purpose
 of acquiring the Class A shares, owning investments in excess of $5,000,000;

(x) You
 are a natural person holding in good standing one or more professional certifications or designations or credentials from an accredited
 educational institution that the SEC has designated as qualifying an individual for accredited investor status;

(xi) You
 are a "family office," as defined by the Investment Advisers Act of 1940, with assets under management in excess of $5,000,000,
 and is not formed for the specific purpose of acquiring the Class A shares, and your prospective investment is directed by a person
 who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits
 and risks of the prospective investment;

(xii) You
 are a "family client," as defined under the Investment Advisers Act of 1940, of a family office meeting the requirements
 in the above paragraph (xi), and your prospective investment in the issuer is directed by such family office pursuant to the above
 paragraph (xi).

**Offering Period and Expiration Date**

We reserve the right to terminate this Offering for any reason at any time prior to the closing. We will close the entire Offering at one time. This Offering will commence and conclude within 48 hours of qualification by the SEC.

**Masterworks Platform**

We plan to use the Masterworks Platform website at https://www.masterworks.com/ to provide notification about the Offering and the Restructuring Transactions. This offering circular as well as amendments to this offering circular after it has been publicly filed and prior to qualification by the SEC will be furnished to prospective investors for their review on the website as well.

**USE OF PROCEEDS TO ISSUER**

We expect to receive gross in-kind proceeds in connection with this Offering and the Restructuring Transactions valued at $69,183,598.50. Masterworks will pay all expenses of this offering, including fees and expenses associated with qualification of this Offering under Regulation A and all expenses of the Restructuring Transactions. Therefore, the gross proceeds received in connection with this Offering and the Restructuring Transactions will equal the net proceeds received in connection with this offering and the Restructuring Transactions. At the time of the closing of the Offering and the Restructuring Transactions, the same number and types of interests in each series as those in each Target Issuer will be issued and outstanding, each series will beneficially own its respective Artwork and the Company will have no indebtedness. See "Series Offering Table" for additional details on each series.

**THE RESTRUCTURING TRANSACTIONS**

*The following is a description of the Restructuring Transactions, which you should read carefully along with the rest of this offering circular.* 

**Overview**

The purpose of the Restructuring Transactions is to reduce the number of Masterworks issuer entities through a series of transactions, including a business combination, whereby each Target Issuer will be "rolled up" into a newly formed separate series of the Company. The new series will have the same capitalization and share ownership as the Target Issuer and will beneficially own the same Artwork, with no other material assets or liabilities and substantially the same contractual rights and obligations, tax attributes and governance as the Target Issuer. As a result of the Restructuring Transactions, existing members of each Target Issuer will receive one Class A share in the new series in respect of each Class A share they hold in the Target Issuer with substantially the same voting and other rights as the Class A shares in the Target Issuer.

Prior to the qualification of this offering circular, the Company will convert to a Texas series limited liability company pursuant to Section 10 of the TBOC and will form two protected series in Texas in respect of each Target Issuer.

The Restructuring Transactions will comprise the following transactions which are expected to occur substantially concurrently following the qualification of the offering statement of which this offering circular forms an integral part:

● **Asset Transfers and Assignments**. All of the assets of each Target Issuer will be transferred to a newly formed series of the Company (each, a "Merger Series") in exchange for 100% of the shares of such Merger Series (the "Asset Transfer"). At the same time, each Target Issuer will assign to the applicable Merger Series all agreements to which it is a party and all of its rights to agreements to which the Administrator is a party acting on its behalf (collectively, the "Target Issuer Agreements"). In addition, each series will assume pre-existing obligations of the applicable Target Issuer to exchange Management Fee Shares that are SPC shares for Class A ordinary shares in such series on a one-for-one basis.

● **Distributions**. Immediately following the Asset Transfer, each Target Issuer will distribute one share of the applicable Merger Series to each shareholder of such Target Issuer for each share of the same class of such Target Issuer they hold, such that following the Share Distribution, each Merger Series shall have the exact same capitalization and share ownership as the applicable Target Issuer and each shareholder of such Target Issuer (including Masterworks) will hold the same number of shares of the same class(es) in Merger Series as they hold in Target Issuer (the " Distribution"). The Board of Managers of each Target Issuer will declare a record date and effective time prior to the Distribution and the transfer agent for each Target Issuer and the Company will update its books and records to reflect the Distribution once completed.

● **Merger**. Immediately following the Distribution, each Merger Series will merge with and into (collectively, the "Merger") a newly created series of the Company ("series" or "surviving series") pursuant to a merger agreement, the form of which is filed as Exhibit 6.4 to the offering statement of which this offering circular forms an integral part, and each outstanding share of Merger Series will be converted into the Merger Consideration which consists of one share of the surviving series of the same class as the Merger Series share. The surviving series will succeed to all rights and obligations of Target Issuers under Target Issuer Agreements as a result of the aforementioned assignment and Merger. Promptly after the effective time of the Merger, the Issuer will convert back to Delaware.

● **Dissolution**. Under each Target Issuer's operating agreement, when the Target Issuer is insolvent and/or upon the sale of all or substantially all of its assets (which expressly includes a sale of 100% of the equity interests of any subsidiary of the Target Issuer which owns the underlying artwork), the Target Issuer shall commence its winding up and dissolution without the need for shareholder approval. Immediately following the Merger, the Target Issuer will no longer be able to pay its debts when they become due and since the Company believes the distribution constitutes a sale of all the assets of the Target Issuer for purposes of interpreting its operating agreement, each Target Issuer will be dissolved and any outstanding membership interests in such Target Issuer will be concurrently extinguished.

**Detailed Restructuring Steps**

*Series Formation*. To execute the Restructuring Transactions, prior to the qualification of this Offering Statement the Company will convert to a Texas series limited liability company pursuant to Section 10 of the TBOC and will form two protected series (the "Merger Series" and the "surviving series") in respect of each Target Issuer, or 50 series in the aggregate. Upon formation, Masterworks will be the sole member of each Merger Series and each surviving series in respect of a $100 capital contribution to each such series, provided that such membership and membership contribution shall be redeemed automatically in connection with the Restructuring Transactions for the full amount of such capital contributions, such that following the Restructuring Transactions each series will have the same amount of cash as the applicable Target Issuer had immediately prior to the Restructuring Transactions and Masterworks will have the same ownership interest of each series as it had in each Target Issuer immediately prior to the Restructuring Transactions. The following table lists the name of each Target Issuer and each series of the Company prior to giving effect to the Restructuring Transactions, the number of Class A ordinary shares offered in the Offering, which is equal to the number of Class A ordinary shares sold by the applicable Target Issuer in its initial Regulation A Offering, and the number of Class A shares of the Target Issuer issued in respect of Management Fee Shares (including Class A shares originally issued to the Administrator which have been sold or transferred prior to the Restructuring Transactions), which will be issued by the applicable series privately in connection with the Restructuring Transactions.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Target Issuer** | **Merger Series** | **Surviving Series** | **Class A Shares Offered** | **Management Fee Shares (Issuer)** | **Type of Management Fee Shares<sup>(1)</sup>** |
| Masterworks 114, LLC | Series 114-A | Series 114 | 180400 | 8658 | Ordinary |
| Masterworks 116, LLC | Series 116-A | Series 116 | 292750 | 12532 | Ordinary |
| Masterworks 117, LLC | Series 117-A | Series 117 | 521700 | 21114 | Ordinary |
| Masterworks 118, LLC | Series 118-A | Series 118 | 86050 | 3545 | Ordinary |
| Masterworks 120, LLC | Series 120-A | Series 120 | 43100 | 1873 | Ordinary |
| Masterworks 121, LLC | Series 121-A | Series 121 | 388500 | 13647 | Ordinary |
| Masterworks 122, LLC | Series 122-A | Series 122 | 596650 | 27878 | Ordinary |
| Masterworks 123, LLC | Series 123-A | Series 123 | 88800 | 3251 | Ordinary |
| Masterworks 125, LLC | Series 125-A | Series 125 | 170650 | 7623 | Ordinary |
| Masterworks 127, LLC | Series 127-A | Series 127 | 123200 | 5500 | Ordinary |
| Masterworks 128, LLC | Series 128-A | Series 128 | 194250 | 8047 | Ordinary |
| Masterworks 129, LLC | Series 129-A | Series 129 | 116550 | 5198 | Ordinary |
| Masterworks 130, LLC | Series 130-A | Series 130 | 249750 | 8530 | Ordinary |
| Masterworks 131, LLC | Series 131-A | Series 131 | 133250 | 5671 | Ordinary |
| Masterworks 132, LLC | Series 132-A | Series 132 | 35000 | 1548 | Ordinary |
| Masterworks 133, LLC | Series 133-A | Series 133 | 100550 | 4466 | Ordinary |
| Masterworks 134, LLC | Series 134-A | Series 134 | 87250 | 3094 | Ordinary |
| Masterworks 135, LLC | Series 135-A | Series 135 | 57950 | 2208 | Ordinary |
| Masterworks 137, LLC | Series 137-A | Series 137 | 194250 | 7567 | Ordinary |
| Masterworks 138, LLC | Series 138-A | Series 138 | 139400 | 5264 | Ordinary |
| Masterworks 139, LLC | Series 139-A | Series 139 | 100750 | 3714 | Ordinary |
| Masterworks 140, LLC | Series 140-A | Series 140 | 158200 | 4624 | Ordinary |
| Masterworks 141, LLC | Series 141-A | Series 141 | 32650 | 1254 | Ordinary |
| Masterworks 143, LLC | Series 143-A | Series 143 | 88800 | 3270 | Ordinary |
| Masterworks 148, LLC | Series 148-A | Series 148 | 47200 | 1638 | Ordinary |

---

(1) "Ordinary"
 means that the Administrator earned or earns Management Fee Shares in the form of Class A ordinary shares and SPC ordinary shares,
 as applicable, for that particular Target Issuer and "Preferred" means that the Administrator earned or earns Management
 Fee Shares in the form of Class A preferred shares and SPC preferred shares, as applicable, for that particular Target Issuer.

*Asset Transfers and Assignments.* All of the assets of each Target Issuer, consisting of cash and 100% of the issued and outstanding shares of the segregated portfolio of Cayman SPC that owns title to the artwork beneficially owned by such Target Issuer (excluding any SPC Management Fee Shares), will be transferred to a newly formed series of the Company (each, a "Merger Series") in exchange for 100% of the shares of Merger Series. In connection with the Asset Transfers each Target Issuer and each merger series will enter assignment and assumption agreements, the form of which is filed as Exhibit 6.3 to the offering statement of which this offering circular forms an integral part, whereby upon completion of the Restructuring Transactions, Masterworks Vault 16, LLC and each series shall become parties thereto in substitution of each Target Issuer.

The table below reflects the capitalization of each segregated Portfolio of Masterworks Cayman:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Segregated Portfolio** | **Number of SPC Shares Held by Target Issuer** | **Percentage of total SPC shares** | **Number of SPC Management Fee Shares held by Masterworks<sup>(1)</sup>** | **Percentage of total SPC shares** |
| SPC 114 | 180400 | 99.22% | 1410 | 0.78% |
| SPC 116 | 292750 | 99.23% | 2274 | 0.77% |
| SPC 117 | 521700 | 98.83% | 6179 | 1.17% |
| SPC 118 | 86050 | 99.22% | 680 | 0.78% |
| SPC 120 | 43100 | 99.23% | 336 | 0.77% |
| SPC 121 | 388500 | 98.49% | 5961 | 1.51% |
| SPC 122 | 596650 | 99.23% | 4650 | 0.77% |
| SPC 123 | 88800 | 98.84% | 1039 | 1.16% |
| SPC 125 | 170650 | 99.23% | 1326 | 0.77% |
| SPC 127 | 123200 | 99.23% | 960 | 0.77% |
| SPC 128 | 194250 | 99.18% | 1610 | 0.82% |
| SPC 129 | 116550 | 99.23% | 906 | 0.77% |
| SPC 130 | 249750 | 98.73% | 3204 | 1.27% |
| SPC 131 | 133250 | 99.23% | 1032 | 0.77% |
| SPC 132 | 35000 | 99.23% | 270 | 0.77% |
| SPC 133 | 100550 | 99.23% | 780 | 0.77% |
| SPC 134 | 87250 | 98.73% | 1120 | 1.27% |
| SPC 135 | 57950 | 98.76% | 725 | 1.24% |
| SPC 137 | 194250 | 98.88% | 2199 | 1.12% |
| SPC 138 | 139400 | 98.74% | 1782 | 1.26% |
| SPC 139 | 100750 | 98.80% | 1226 | 1.20% |
| SPC 140 | 158200 | 98.38% | 2612 | 1.62% |
| SPC 141 | 32650 | 98.88% | 369 | 1.12% |
| SPC 143 | 88800 | 98.73% | 1142 | 1.27% |
| SPC 148 | 47200 | 98.72% | 612 | 1.28% |

---

(1) No
 SPC shares originally issued to the Administrator as Management Fee Shares have been exchanged for Class A shares and sold or transferred
 to third parties prior to the Restructuring Transactions.

The diagrams below illustrate the organizational structure that would exist before and after the Asset Transfers in respect of each Target Issuer:

![](form1-a_002.jpg)

The share capital issued by Merger Series to Target Issuer in the Asset Transfers shall mirror exactly the share capital of Target Issuer held by its members. For example, if immediately preceding the execution of the Asset Transfers a Target Issuer had 100,000 Class A shares outstanding issued to Regulation A offering investors, 1,500 Class A shares issued to the Administrator as Management Fee Shares, 1,000 Class B shares outstanding and one Class C share outstanding, the same securities would be issued by Merger Series to Target Issuer with the same rights, preferences and terms as illustrated in the diagram below.

In connection with the Asset Transfers, each Target Issuer will assign all of its rights under Target Issuer Agreements to the applicable Merger Series and the Merger Series will assume all obligations of the Target Issuer under Target Issuer Agreements. Target Issuer Agreements include subscription agreements, the administrative services agreement (or management services agreement, as the case may be), the intercompany agreement and any agreements between the Target Issuer (or Masterworks as agent for the Target Issuer) and third parties.

![](form1-a_003.jpg)

Immediately following the Asset Transfers, each Target Issuer, the Administrator, and the Company, on behalf of itself and each series, will approve a merger whereby each Merger Series will merge with and into a newly created series of the Company in exchange for the Merger Consideration, with each series surviving the Merger as described below.

Distributions. Following the Asset Transfers and merger approvals, the Target Issuer will distribute one share of the applicable Merger Series to each shareholder of Target Issuer for each share of Target Issuer they hold and the class of Merger Series share distributed shall match the class of shares held in Target Issuer, such that following the Share Distribution, each Merger Series shall have the exact same capitalization and share ownership as the applicable Target Issuer such that each shareholder of Target Issuer (including Masterworks) will hold the same number of shares of the same class(es) in Merger Series as they hold in Target Issuer. The Board of Managers of each Target Issuer will declare a record date and effective time prior to the Distribution. At the effective time of the Distribution, the transfer agent for the Company will update the Company's share register such that all shareholders who purchased securities originally sold in Regulation A offerings will receive the same number of shares in the applicable series of the Company. The effective time of the Distribution shall be at 12:00 a.m. midnight on the record date after all trades occurring on or prior to the record date have settled. At such time trading in Class A shares of the Target Issuers shall cease and no transfers of Class A shares of the Target Issuers shall be approved by the Target Issuers prior to the dissolution of the Target Issuers and any purported transfer shall be null and void. Promptly following the record date, trading in Class A shares of each series of the Company shall commence. The diagrams below illustrate the organizational structure before and after the Distributions with respect to each Target Issuer:

![](form1-a_004.jpg)

Merger. Immediately following the Distributions, each Merger Series will merge with and into the applicable surviving series pursuant to a merger agreement, the form of which is filed as Exhibit 6.4 to the offering statement of which this offering circular forms an integral part, and each outstanding share of Merger Series will be converted into the Merger Consideration which consists of one share of a surviving series of the same class as the Merger Series share. The purpose of the Merger is to ensure that Class A shareholders in Target Issuer that hold shares initially issued in Regulation A offerings that are "freely transferable" under Federal securities laws will receive shares in a series of the Company as a result of the Restructuring Transactions that have the same character from a Federal securities law perspective. As a result of the transactions described previously and the Merger, each series will effectively become a successor in interest to the rights and obligations of the applicable Target Issuer under all Target Issuer Agreements. Following the Merger, the Company will convert back into a Delaware series limited liability company.

The diagrams below illustrate the organizational structure before and after the Merger for each Merger Series and surviving series:

![](form1-a_005.jpg)

Dissolutions*.* Under each Target Issuer's operating agreement, the Target Issuer shall commence its winding up and dissolution without the need for shareholder approval upon the Target Issuer's insolvency and/or upon a sale of all or substantially all of its assets (which expressly includes a sale of 100% of the equity interests of any subsidiary of the Target Issuer which owns the underlying artwork). Promptly following the Distribution, the Company believes each Target Issuer will be insolvent under Delaware law since it will have no assets and no ability to pay its debts. In addition, the Company believes the distribution itself constitutes a sale of all the assets of such Target Issuer for purposes of the operating agreement, since the intent of the provision is to permit dissolution when there would be no purpose or benefit to maintain the existence of the Target Issuer. Accordingly, each Target Issuer will be dissolved (the "Dissolution") after the Merger and any outstanding membership interests in such Target Issuer will be concurrently extinguished.

Capital Structure Following the Offering

The table below shows the capitalization of each series of the Company following the Offering and the Restructuring Transactions.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Series | Target Issuer | Class A Shares<sup>(1)</sup> | Class B Shares | Class C Shares |
| Series 114 | Masterworks 114, LLC | 190468 | 1000 | 1 |
| Series 116 | Masterworks 116, LLC | 307556 | 1000 | 1 |
| Series 117 | Masterworks 117, LLC | 548993 | 1000 | 1 |
| Series 118 | Masterworks 118, LLC | 90275 | 1000 | 1 |
| Series 120 | Masterworks 120, LLC | 45309 | 1000 | 1 |
| Series 121 | Masterworks 121, LLC | 408108 | 1000 | 1 |
| Series 122 | Masterworks 122, LLC | 629178 | 1000 | 1 |
| Series 123 | Masterworks 123, LLC | 93090 | 1000 | 1 |
| Series 125 | Masterworks 125, LLC | 179599 | 1000 | 1 |
| Series 127 | Masterworks 127, LLC | 129660 | 1000 | 1 |
| Series 128 | Masterworks 128, LLC | 203907 | 1000 | 1 |
| Series 129 | Masterworks 129, LLC | 122654 | 1000 | 1 |
| Series 130 | Masterworks 130, LLC | 261484 | 1000 | 1 |
| Series 131 | Masterworks 131, LLC | 139953 | 1000 | 1 |
| Series 132 | Masterworks 132, LLC | 36818 | 1000 | 1 |
| Series 133 | Masterworks 133, LLC | 105796 | 1000 | 1 |
| Series 134 | Masterworks 134, LLC | 91464 | 1000 | 1 |
| Series 135 | Masterworks 135, LLC | 60883 | 1000 | 1 |
| Series 137 | Masterworks 137, LLC | 204016 | 1000 | 1 |
| Series 138 | Masterworks 138, LLC | 146446 | 1000 | 1 |
| Series 139 | Masterworks 139, LLC | 105690 | 1000 | 1 |
| Series 140 | Masterworks 140, LLC | 165436 | 1000 | 1 |
| Series 141 | Masterworks 141, LLC | 34273 | 1000 | 1 |
| Series 143 | Masterworks 143, LLC | 93212 | 1000 | 1 |
| Series 148 | Masterworks 148, LLC | 49450 | 1000 | 1 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Series | Number of Class A shares issued to Non-Affiliates of Masterworks in the Offering | Percentage of total Class A shares | Number of Class A shares held by Masterworks<sup>(2)</sup> | Percentage of total Class A shares | Number of Management Fee Shares held by Third Parties<sup>(3)</sup> | Percentage of total Class A shares | Percentage of total Class B shares<sup>(4)</sup> |
| Series 114 | 180400 | 94.71% | 1410 | 0.74% | 8658 | 4.55% | 100% |
| Series 116 | 292750 | 95.19% | 2274 | 0.74% | 12532 | 4.07% | 100% |
| Series 117 | 521700 | 95.03% | 8845 | 1.61% | 18448 | 3.36% | 100% |
| Series 118 | 86050 | 95.32% | 680 | 0.75% | 3545 | 3.93% | 100% |
| Series 120 | 43100 | 95.12% | 336 | 0.74% | 1873 | 4.13% | 100% |
| Series 121 | 388500 | 95.20% | 15572 | 3.82% | 4036 | 0.99% | 100% |
| Series 122 | 596650 | 94.83% | 6625 | 1.05% | 25903 | 4.12% | 100% |
| Series 123 | 88800 | 95.39% | 2736 | 2.94% | 1554 | 1.67% | 100% |
| Series 125 | 170650 | 95.02% | 1326 | 0.74% | 7623 | 4.24% | 100% |
| Series 127 | 123200 | 95.02% | 960 | 0.74% | 5500 | 4.24% | 100% |
| Series 128 | 194250 | 95.26% | 2548 | 1.25% | 7109 | 3.49% | 100% |
| Series 129 | 116550 | 95.02% | 906 | 0.74% | 5198 | 4.24% | 100% |
| Series 130 | 249750 | 95.51% | 11734 | 4.49% | 0 | 0.00% | 100% |
| Series 131 | 133250 | 95.21% | 1429 | 1.02% | 5274 | 3.77% | 100% |
| Series 132 | 35000 | 95.06% | 270 | 0.73% | 1548 | 4.20% | 100% |
| Series 133 | 100550 | 95.04% | 780 | 0.74% | 4466 | 4.22% | 100% |
| Series 134 | 87250 | 95.39% | 4214 | 4.61% | 0 | 0.00% | 100% |
| Series 135 | 57950 | 95.18% | 2933 | 4.82% | 0 | 0.00% | 100% |
| Series 137 | 194250 | 95.21% | 9766 | 4.79% | 0 | 0.00% | 100% |
| Series 138 | 139400 | 95.19% | 7046 | 4.81% | 0 | 0.00% | 100% |
| Series 139 | 100750 | 95.33% | 3808 | 3.60% | 1132 | 1.07% | 100% |
| Series 140 | 158200 | 95.63% | 5592 | 3.38% | 1644 | 0.99% | 100% |
| Series 141 | 32650 | 95.26% | 1623 | 4.74% | 0 | 0.00% | 100% |
| Series 143 | 88800 | 95.27% | 4412 | 4.73% | 0 | 0.00% | 100% |
| Series 148 | 47200 | 95.45% | 1737 | 3.51% | 513 | 1.04% | 100% |

---

(1) The
 Class A shares each series equals the number of Class A shares of the applicable Target Issuer issued, including Class A shares issuable
 upon exchange of issued and outstanding SPC shares immediately following the consummation of the Restructuring Transactions. The
 total Class A shares outstanding reflects all issued and outstanding Management Fee Shares (including Class A shares originally issued
 to the Administrator which have been sold or transferred prior to the Restructuring Transactions) and Class A shares issuable upon
 exchange of outstanding Management Fee Shares as of the date of this Offering Circular, but does not include additional Class A shares
 which may be issuable upon conversion of Class B shares.

(2) Includes
 all Class A shares beneficially owned by Masterworks, including all issued and outstanding Management Fee Shares held by Masterworks,
 Class A shares issuable upon exchange of outstanding Management Fee Shares as of the date of this Offering Circular and Management
 Fee Shares sold or transferred to Masterworks affiliates, but does not include additional Class A shares which may be issuable upon
 conversion of Class B shares.

(3) Includes
 Class A shares originally issued to the Administrator which have been sold or transferred to non-affiliates of Masterworks prior
 to the Restructuring Transactions.

(4) Masterworks
 owns 100% of the Class B shares of each surviving series representing a 20% profits interest in each series.

The table below shows the capitalization of each segregated portfolio of Masterworks Cayman following the Offering and the Restructuring Transactions.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Segregated Portfolio** | **Number of SPC Shares Held by Surviving Series** | **Percentage of total SPC shares** | **Number of SPC Management Fee Shares held by Masterworks<sup>(1)</sup>** | **Percentage of total SPC shares** |
| SPC 114 | 180400 | 99.22% | 1410 | 0.78% |
| SPC 116 | 292750 | 99.23% | 2274 | 0.77% |
| SPC 117 | 521700 | 98.83% | 6179 | 1.17% |
| SPC 118 | 86050 | 99.22% | 680 | 0.78% |
| SPC 120 | 43100 | 99.23% | 336 | 0.77% |
| SPC 121 | 388500 | 98.49% | 5961 | 1.51% |
| SPC 122 | 596650 | 99.23% | 4650 | 0.77% |
| SPC 123 | 88800 | 98.84% | 1039 | 1.16% |
| SPC 125 | 170650 | 99.23% | 1326 | 0.77% |
| SPC 127 | 123200 | 99.23% | 960 | 0.77% |
| SPC 128 | 194250 | 99.18% | 1610 | 0.82% |
| SPC 129 | 116550 | 99.23% | 906 | 0.77% |
| SPC 130 | 249750 | 98.73% | 3204 | 1.27% |
| SPC 131 | 133250 | 99.23% | 1032 | 0.77% |
| SPC 132 | 35000 | 99.23% | 270 | 0.77% |
| SPC 133 | 100550 | 99.23% | 780 | 0.77% |
| SPC 134 | 87250 | 98.73% | 1120 | 1.27% |
| SPC 135 | 57950 | 98.76% | 725 | 1.24% |
| SPC 137 | 194250 | 98.88% | 2199 | 1.12% |
| SPC 138 | 139400 | 98.74% | 1782 | 1.26% |
| SPC 139 | 100750 | 98.80% | 1226 | 1.20% |
| SPC 140 | 158200 | 98.38% | 2612 | 1.62% |
| SPC 141 | 32650 | 98.88% | 369 | 1.12% |
| SPC 143 | 88800 | 98.73% | 1142 | 1.27% |
| SPC 148 | 47200 | 98.72% | 612 | 1.28% |

---

(1) No
 SPC shares originally issued to the Administrator as Management Fee Shares have been exchanged for Class A shares and sold or transferred
 to third parties prior to the Restructuring Transactions.

**DESCRIPTION OF BUSINESS**

*The discussions contained in this offering circular, including those incorporated by reference, relating to the artist applicable to each series, the Artwork of each series and the art industry are taken from third-party sources that the Company believes to be reliable and the Company believes that the information from such sources contained herein regarding the artist applicable to each series, the Artwork of each series and the art industry is reasonable, and that the factual information therein is fair and accurate.*

**Overview**

We were formed as a Delaware series limited liability company on November 18, 2024 by Masterworks to facilitate a series of Restructuring Transactions. The purpose of the Restructuring Transactions is to increase efficiency by reducing the number of Masterworks issuer entities through a series of transactions, including a business combination, whereby each Target Issuer will be "rolled up" into a newly formed separate series of the Company. Each new series will have the same capitalization and share ownership as the applicable Target Issuer and will beneficially own the same Artwork, with no other material assets or liabilities and substantially the same contractual rights and obligations, tax attributes and governance as the applicable Target Issuer. As a result of the Offering and the Restructuring Transactions, existing members of each Target Issuer will receive one Class A share in a newly formed series of the Company in respect of each Class A share they hold in any Target Issuer with substantially the same voting and other rights as the Class A share held in the applicable Target Issuer. The Target Issuers will be identified and described in an amendment to this offering circular prior to the qualification of the offering statement of which this offering circular forms an integral part.

**Our Series LLC and Offering Structure**

Following the Restructuring Transactions, each Artwork will be beneficially owned by a separate series of the Company. Each series will hold title to the specific Artwork that it acquires in a segregated portfolio of Masterworks Cayman SPC, a Cayman Islands segregated portfolio company. We expect that the Company and each series will be regarded for income tax purposes as separate partnerships and each segregated portfolio will be treated as a consolidated subsidiary for accounting purposes.

As a series limited liability company, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series of the Company are segregated and enforceable only against the assets of such series under applicable law. Similarly, as a Cayman Islands segregated portfolio company, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing of a particular segregated portfolio of Masterworks Cayman are segregated and enforceable only against the assets of such segregated portfolio under Cayman Islands law. This means that a creditor of the Company or Masterworks Cayman would only be entitled to recover against assets attributed and credited to the specific series of the Company or segregated portfolio of Masterworks Cayman, as applicable, to which the obligation is attributed.

The Class A shares represent an investment solely in a particular series and, thus, indirectly in the Artwork beneficially owned by that series. The Class A shares do not represent a general investment in our Company or in Masterworks. Immediately following the completion of the Offering and the Restructuring Transactions, no series of the Company nor any segregated portfolio of Masterworks Cayman will beneficially own any material assets other than the single Artwork associated with such series or have any indebtedness or commercial obligations, other than those assumed through the Target Issuer Agreements.

We will close the entire Offering at one time. The Offering is being conducted pursuant to Regulation A of Section 3(6) of the Securities Act for Tier 2 offerings. Masterworks is not registered as a broker-dealer.

**Art Appraisals**

*General*

Appraisals of the artworks managed by Masterworks are performed by employees of the Administrator quarterly (subject to certain conditions and exceptions) and are subject to an independent qualified third party review on an annual basis. Artwork appraisals are performed by Masterworks in conformity with the 2024-2025 Uniform Standards of Professional Appraisal Practice developed by the Appraisal Standards Board of the Appraisal Foundation using a sales comparison approach.

Appraisals are intended to estimate the "fair market value" of the relevant artwork (target object), which is defined as "the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell, and both having reasonable knowledge of the relevant facts" (see, IRS Publication 561). Fair market value includes estimated transaction commissions, and for works purchased at public auction, the expected buyer's premium.

Masterworks assesses quantitative and qualitative factors that could impact fair market value. Fair market value is measured principally on the "Sales Comparison Approach," a relative value comparison basis to sales transactions involving similar objects (also referred to as comparable sales), which have sold within the market that is most common for each object. Comparable (similar) objects are selected based on similar characteristics to the target object, which may include, but are not limited to: artist, size, date of creation, medium, series, imagery, execution, style or technique, colors, condition, provenance and/or exhibition history, and prior sale history (if any). Comparable sales may have taken place at public auction or in private sale, if such private sale information is verifiable. Comparable characteristics for each artwork are determined on a case-by-case basis based on the appraiser's knowledge of the respective artist's market.

*Appraised Value*

The values expressed in the appraisals are based on the best judgment and opinion of the individual appraiser(s) and the Administrator. These values are not a representation or warranty that the items will realize those values if offered for sale in an appropriate market. The values expressed are based on current information as of the indicated effective date of the appraisal. No opinion is expressed as to any past value, nor, unless otherwise expressly stated, as to any future value.

*Conflicts of Interest*

Appraisals are performed by employees of the Administrator. The Administrator receives equity-based compensation for the administration of the artwork and its affiliates have economic interests in the Masterworks business, as well as profits interests in our Company. Although the amount of equity-based compensation earned by the Administrator is not directly or indirectly tied to appraised values, if the Administrator were to sell Management Fee Shares or other Class A shares it owns, any such secondary sale price may be influenced by appraisals. The compensation of employees of the Administrator is not directly contingent upon the performance of any appraisal, including reporting of a predetermined value or direction in value that favors the cause of Masterworks, the appraised fair market value, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of any appraisal. Although the Administrator has inherent conflicts of interest, the Administrator has taken steps it deems reasonable in seeking to ensure that employees and others involved in performing appraisals can act independently of Masterworks and free from bias; no assurance can be given that a truly independent appraisal would not produce a different outcome.

**The Artworks**

Following the Restructuring Transactions, each series will beneficially own an Artwork. For information regarding each Artwork, please refer to the offering circular of the applicable Target Issuer. See "Incorporation of Certain Information by Reference" herein.

**The Target Issuer Offerings**

Each Target Issuer Regulation A offering occurred and was completed at least six months prior to the Restructuring Transactions. For additional information on each Target Issuer offering, see "Incorporation by Reference."

**Government Regulation**

***Art Market Regulation***

Art as tangible personal property is subject to regulation under different city, state and federal statutory schemes. Generally, domestic art transactions that are conducted within the United States are subject to state Uniform Commercial Code statutes, which govern the sale of goods. Some states have additionally enacted art specific legislation, such as New York's Arts and Cultural Affairs Law and California's Resale Royalty Act. In addition, federal statutes such as the Holocaust Expropriated Art Recovery Act and the National Stolen Property Act can apply to title disputes in the art market context. International art transactions involving the import and export of art into and out of the United States will subject us to the rules and regulations established by the United States Customs and Border Protection. Further, we and Masterworks will be subject to the requirements of the federal Cultural Property Implementation Act which is the United States' accession legislation for the 1970 United Nations Educational, Scientific, and Cultural Organization (UNESCO) Convention which protects countries' cultural property, including artwork. New York City, as a major art auction center, has enacted legislation governing the activities of auctioneers in the New York City Administrative Code and Masterworks may be subject to these regulations through its transactions and financing arrangements with auctioneers.

***Patriot Act***

The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Patriot Act) is intended to strengthen the ability of U.S. law enforcement agencies and intelligence communities to work together to combat terrorism on a variety of fronts. The Patriot Act, to which we are subject, has significant implications for depository institutions, brokers, dealers and other businesses involved in the transfer of money. The Patriot Act required us to implement policies and procedures relating to anti-money laundering, compliance, suspicious activities, and currency transaction reporting and due diligence on customers. The Patriot Act also requires federal banking regulators to evaluate the effectiveness of an applicant in combating money laundering in determining whether to approve a proposed bank acquisition.

**ORGANIZATION**

We were formed as a Delaware series limited liability company on November 18, 2024 by the Administrator in order to facilitate investment in specific Artworks. We are a manager-managed limited liability company managed by a Board of Managers. The Class A shares of a series to be offered herein have very limited approval and voting rights in connection with the sale of the Artwork of a series and on certain amendments to our operating agreement, and other certain rights pursuant to our operating agreement, as further described in this offering circular.

The Board of Managers will have sole voting power over all matters, including: mergers, consolidations, acquisitions, winding up and dissolution; except, the Board of Managers shall not have the authority to amend, waive or fail to comply with any material provision of our operating agreement that disproportionately and adversely affects the Class A shareholders as a whole or an affected series except as provided therein, without the prior written consent of the holders of a majority of the voting shares of the Company or such series, as applicable.

**EMPLOYEES**

As of the date of this offering circular, we had no full-time employees and no part-time employees, other than our Officers, all of whom are compensated by Masterworks. All of our day-to-day operations are managed by our Administrator.

**LEGAL PROCEEDINGS**

There are no legal proceedings currently pending against us (including any series) which would have a material effect on our business, financial position or results of operations and, to the best of our knowledge, there are no such legal proceedings contemplated or threatened. It is possible that we will find ourselves involved in litigation, in which case we will be wholly reliant on the Administrator to address such litigation as necessary. If the Administrator settles a case or receives an adverse judgment, the Administrator would then be reimbursed upon a sale of the Artwork of a series pursuant to the terms of the Target Issuer Agreements.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

We were formed as a Delaware series limited liability company on November 18, 2024 by Masterworks to facilitate the Restructuring Transactions. We have not conducted any operations prior to the date of this offering circular and will not conduct any business activities except for activities relating to the ownership, maintenance, promotion and the eventual sale of the Artwork of each series.

Our strategy will be identical to the strategy of the Target Issuers, namely, to display and promote the Artwork of each series in a manner designed to enhance its provenance and increase its exposure and its value. We are not aware of any trends, uncertainties, demands, commitments or events that will materially affect our operations or the liquidity or capital resources of the Administrator.

**Audited Financial Statements**

*The Target Issuers* 

The audited financials of the Target Issuers for fiscal year 2024 is incorporated by reference herein. Following the Restructuring Transactions, the financial statements for each individual series will be identical to the financial statements for each applicable Target Issuer prior to giving effect to the Restructuring Transactions. No costs or expenses of the Offering are borne by the Target Issuers, the Company or any series.

*The Company*

The Company has conducted no operations and has no material assets or liabilities as of the date of this offering circular and will not conduct any operations, acquire any material assets or incur any liabilities prior to the execution of the Restructuring Transactions. Accordingly, we have not presented audited financial statements in this offering circular, other than incorporation of audited financial statements of each of the Target Issuers. We have described below certain critical accounting policies that we intend to adopt following the Offering, which, for each series of the Company, are the same as those previously used for the Target Issuers. The Company intends to include an audited balance sheet on the date on which the Company's special report on Form 1-K is due pursuant to Rule 257(b)(2)(i)(A) of Regulation A. The Company's financial statements in its annual and semiannual reports, which will consist of balance sheets, statements of operations, statements of members' equity and statements of cash flows, will include multiple columns for (i) the Company as a whole presented on a combined and consolidated basis and (ii) each relevant series on a consolidated basis, and the related audit reports, as applicable, will cover the Company as a whole and each relevant series.

We plan to engage AGD Legal, SC to audit our financial statements in future periods as required by Regulation A (Tier 2).

**Pro Forma Financial Statements**

We have included unaudited pro forma financial information for the Company as a whole and of each series after giving effect to the Restructuring Transactions, presented on a combined consolidated basis for the years ended December 31, 2025 and 2024.

**Critical Accounting Policies and Estimates**

The preparation of our financial statements in accordance with generally accepted accounting principles will be based on the selection and application of accounting policies that require us to make significant estimates and assumptions about the effects of matters that are inherently uncertain. We consider the accounting policies discussed below to be critical to the understanding of our post-offering financial statements. Actual results could differ from our estimates and assumptions, and any such differences could be material to our financial statements.

**Investment in Artwork**

Title to each Artwork is held by a segregated portfolio of Masterworks Cayman. Each segregated portfolio has no assets other than the Artwork, no indebtedness, and does not conduct any operations other than incidental to ownership of the Artwork. The Artwork is recorded at cost, which is the purchase price paid for the Artwork. Artwork is determined to have an indefinite life. The Company will review the Artwork of each series for impairment in accordance with the requirements of ASC 360-10, Impairment and Disposal of Long-Lived Assets ("ASC 360"). Those requirements will require the Company to perform an impairment analysis whenever events or changes in circumstances indicate that the carrying amount of the artwork might not be recoverable, i.e., information indicates that an impairment might exist. In accordance with ASC 360, the Company will:

● Consider whether indicators of impairment are present; Indicators or triggers of impairment management considers are: deteriorating physical condition of the artwork, trends in the art market, reputation of the artist, recent sales of other artworks by the artist and other events, circumstances or conditions that indicate impairment might exist;

● If indicators are present, perform a recoverability test by comparing the estimated amount realizable upon sale of the Artwork of a series, to its carrying value; and

● If the amount realizable upon sale of the Artwork of a series is deemed to be less than its carrying value, we would measure an impairment charge.

If it is determined that measurement of an impairment loss is necessary, the impairment loss would be calculated based on the difference between the carrying amount of the Artwork of a series and its estimated fair value. An impairment loss would be reported as a component of income from continuing operations before income taxes in the financial statements.

**Use of Estimates**

In preparing our financial statements, management will be required to make estimates and assumptions that affect the reported amounts, particularly with respect to investments, at the date of the financial statements. Actual amounts may differ materially from these estimates.

**Contingencies**

We may be subject to lawsuits, investigations and claims (some of which may involve substantial dollar amounts) that can arise out of our normal business operations. We would continually assess the likelihood of any adverse judgments or outcomes to our contingencies, as well as potential amounts or ranges of probable losses, and recognize a liability, if any, for these contingencies based on a thorough analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. Because most contingencies are resolved over long periods of time, liabilities may change in the future due to new developments (including new discovery of facts, changes in legislation and outcomes of similar cases through the judicial system), changes in assumptions or changes in our settlement strategy.

**Income Taxes**

We expect that each series will be treated as a partnership for U.S. federal income tax purposes and not as an association or publicly traded partnership subject to tax as a corporation. As a partnership, we generally will not be subject to U.S. federal income tax. Instead, each shareholder that is subject to U.S. tax will be required to take into account its distributive share, whether or not distributed, of each item of our income, gain, loss, deduction or credit. See "Material U.S. Federal Tax Considerations". The Administrator will have the authority to act on our behalf with respect to tax audits and certain other tax matters and to make such elections under the Internal Revenue Code and other relevant tax laws as the Administrator deems necessary or appropriate.

**Liquidity and Capital Resources of the Administrator**

Masterworks will pay all costs associated with the development and operation of the Masterworks Platform, costs associated with the Restructuring Transactions and all costs of our organization and the Offering. Masterworks will also be responsible for all ordinary and necessary costs for ongoing management expenses relating to our Company, Masterworks Cayman and the Artwork of each series. Each series is a successor in interest to the rights and obligations of the applicable Target Issuer through the Target Issuer Agreements, which includes the relevant administrative services agreement (or management services agreement) for each Target Issuer. Pursuant to the Target Issuer Agreements, Masterworks will receive Management Fee Shares from each segregated portfolio in exchange for management and custodial services and paying all ordinary and necessary operating costs and expenses. We do not anticipate that we will maintain any material liquid assets and, accordingly, we will rely upon the Administrator to pay for the maintenance of the Artwork of each series and the management of our business in accordance with the relevant Target Issuer Agreement.

The Administrator has covenanted to provide us with selected unaudited balance sheet information on a semi-annual basis and we expect to continue to include such information in ongoing reports we file with the SEC. The table below summarizes selected unaudited balance sheet information of the Administrator as of December 31, 2025 and as of December 31, 2024, respectively:

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| | | |
|:---|:---|:---|
|  | **December 31,**<br> **(in thousands)** | **December 31,**<br> **(in thousands)** |
|  | **2025** | **2024** |
| **<u>Assets</u>** |  |  |
| Cash, cash equivalents and restricted cash | $3507005 | $17190905 |
| Investments in securities from affiliates | 25425229 | 26047704 |
| Property and equipment, net | 364415 | 251043 |
| Other assets | 3920495 | 1456405 |
| **Total assets** | $**33217144** | $**44946057** |
| **<u>Liabilities</u>** |  |  |
| Current liabilities | $3525946 | $11384165 |
| Long-term liabilities | 0 | 0 |
| **Total liabilities** | **3525946** | **11384165** |
| **Member's Equity** | 29691198 | 33561892 |
| **Total Member's equity** | $**29691198** | $**33561892** |

---

As of the closing of the Offering, each series of the Company will have no liabilities, commitments or obligations, other than obligations pursuant to the Target Issuer Agreements. We believe the Administrator has sufficient sources of current and future liquidity to satisfy its obligations under the Target Issuer Agreements for the foreseeable future. We do not believe we will need to raise any additional funds through the issuance and sale of securities in a primary offering for any series in the foreseeable future and are not permitted to do so under our operating agreement without first obtaining the prior approval of the Class A shareholders of such series.

Masterworks, including the Administrator, has experienced considerable growth since inception in 2017, which has been funded through equity contributions of approximately $110 million from private investors in October 2021 and cash flow from operations. The Administrator earns fees in the form of shares issued by each series and other issuer entities (or the segregated portfolio of Masterworks Cayman owned by such entity), which it periodically sells to obtain additional liquidity. Masterworks has generated operating losses and negative cash flows from operations since 2022.

Each segregated portfolio will issue Management Fee Shares to the Administrator at a rate of 1.5% of the total outstanding equity interests of such segregated portfolio, after giving effect to such issuance, per annum. These shares will either be in the form of SPC preferred shares, which are subject to a $20.00 per share preference on liquidation or SPC ordinary shares depending on whether the applicable Target Issuer was obligated to issue SPC preferred shares or SPC ordinary shares. The Management Fee Shares shall have no voting rights for so long as they are held by Masterworks. For the avoidance of doubt, the Management Fee Shares earned by the Administrator after the Restructuring Transactions shall be earned at the same rate and shall have the same economic rights, restrictions and preferences with respect to such segregated portfolio and series as those that would exist with respect to the Target Issuer irrespective of the Restructuring Transactions.

Masterworks entered into a revolving senior secured promissory note with the Lynn Family Trust 001 in December 2025. The outstanding principal balance of the loan as of December 31, 2025 is $7 million. The loan is secured by substantially all assets of Masterworks, including a pledge of equity interests in the Company beneficially owned by Masterworks. Other than these rights to acquire equity interests from Masterworks in the event of a default under the loan facility, Masterworks creditors have no rights, claims or interest in the assets of the Company.

The Administrator conducts other business activities, including the management of other entities similar to the Company and expects its revenues will exceed its costs. Additionally, we intend to own the Artwork of each series for an indefinite period, although the Artwork of each series will be perpetually available for sale following the Offering and we will evaluate any reasonable third party offers to acquire the Artwork of a series.

**MANAGEMENT**

**Our Administrator**

***Administrative Services Agreements***

Our day-to-day operations are managed by the Administrator. Following the Merger, each surviving series will become a successor in interest to the rights and obligations of the applicable Target Issuer under all Target Issuer Agreements, including the administrative services agreement (or management services agreement, as the case may be). The Administrator performs its duties and responsibilities pursuant to our operating agreement and the relevant Target Issuer administrative services agreement (or management services agreement, as applicable).

The Administrator will receive Management Fee Shares from each segregated portfolio for its administrative services and related costs at a rate of 1.5% per annum of the total outstanding equity interests of the segregated portfolio, as further described in each Target Issuer Agreement. These shares will either be in the form of SPC preferred shares, which are subject to a $20.00 per share preference on liquidation or SPC ordinary shares depending on whether the applicable Target Issuer was obligated to issue SPC preferred shares or SPC ordinary shares, respectively. Such shares issued to the Administrator by each segregated portfolio shall be exchangeable for Class A shares of the applicable surviving series and shall have the same economic rights, restrictions and preferences with respect to such segregated portfolio and series as those that would exist with respect to the Target Issuer irrespective of the Restructuring Transactions.

***Prohibited transactions under our operating agreement***

The Board of Managers will have sole voting power over all matters, including: mergers, consolidations, acquisitions, winding up and dissolution; except, the Board of Managers shall not have the authority to amend, waive or fail to comply with any material provision of our operating agreement that disproportionately and adversely affects the Class A shareholders as a whole or an affected series except as provided therein, without the prior written consent of the holders of a majority of the voting shares of the Company or such series, as applicable.

***Sale of Artwork***

Each series will own its respective Artwork for an indefinite period and we may elect to hold the Artwork of a series for a longer period or sell the Artwork of a series at any time due to certain circumstances. We, in our sole and absolute discretion, will have the ability to sell the Artwork of a series at any time and in any manner. There is no guarantee that any such sale of the Artwork of a series will be successful, or if successful, that the net proceeds realized by shareholders of such series from such sale will be reflective of the estimated fair market value of the shares of such series at such time.

Following a sale of the Artwork of a series, Masterworks will be reimbursed for any expenses for which it is responsible, including applicable sales commissions, income taxes, if any, and other transactional, extraordinary and non-routine expenses and other expenditures to enhance the value of the Artwork of such series. Masterworks may determine to sell the Artwork of a series, in which event, affiliates of Masterworks would be entitled to charge a sales commission, provided that any such amounts would not exceed the fees or commissions charged by unaffiliated third parties for similar services, as and to the extent described in the offering circular for the initial offering by the applicable Target Issuer. Following the payment of all of such expenses and commissions, we will distribute the remaining proceeds for such series, if any, in accordance with our operating agreement.

**Executive Officers and Members of the Board of Managers of the Company**

As of the date of this offering circular, the following sets forth the executive officers and members of the Board of Managers of the Company and their positions and offices are as follows:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Nigel S. Glenday | **42** | Chief Executive Officer, Chief Financial Officer; Member of the Board of Managers |
| Joshua B. Goldstein | **58** | General Counsel and Secretary; Member of the Board of Managers |
| Eli D. Broverman | **46** | Member of the Board of Managers; Independent Manager |

---

***Nigel S. Glenday.*** Mr. Glenday has served as Chief Executive Officer since November 18, 2024 and as Chief Financial Officer and member of the Board of Managers of the Company since November 18, 2024 and has served as Chief Financial Officer of our affiliate Masterworks, LLC since April 2019 and the Chief Executive Officer of Masterworks Investor Services, LLC since August 2021. From March 2015 through April 2019, Mr. Glenday was a Managing Director for Athena Art Finance Corp., a leading independent art-secured finance company. From July 2012 to March 2015, Mr. Glenday was a Vice President at StormHarbour Securities, LLP, a global markets and financial advisory firm. From 2009 to 2012, Mr. Glenday was an Associate at Morgan Stanley in the Financial Institutions Group, Investment Banking Division, and from 2005 through 2009, Mr. Glenday was an Analyst and Associate Director in the Financial Institutions Group at UBS Investment Bank. Mr. Glenday holds a B.A. in Economics and History from the University of Virginia, where he graduated as a member of Phi Beta Kappa Honor Society.

***Joshua B. Goldstein.*** Mr. Goldstein has served as a Board Member, the General Counsel and Secretary of the Company since November 18, 2024 and has served in such capacities with our affiliate Masterworks, LLC since February 1, 2018. From September 2016 through December 2017, Mr. Goldstein was a shareholder in the Denver office of Greenspoon Marder, P.A. From April 2015 through August 2016, Mr. Goldstein was self-employed as a corporate attorney. From September 2012 through March 2015, Mr. Goldstein was Executive Vice President, Chief General Counsel and Corporate Secretary of Intrawest Resorts Holdings, Inc. (aka Alterra Mountain Company), a NYSE-listed resort and adventure company. Prior to joining Intrawest, Mr. Goldstein was a Counsel in the New York office of Skadden, Arps, Slate, Meagher & Flom, LLP from June 2007 to August 2012 and he was an Associate at Skadden from September 1996 until August 2005, where he concentrated on corporate finance, corporate securities and mergers and acquisitions. Mr. Goldstein was also previously a Partner in the New York office of Torys, LLP. Mr. Goldstein holds a B.A. in business administration from the University of Wisconsin-Madison and a J.D. from Fordham University School of Law and is a Certified Public Accountant (inactive).

***Eli D. Broverman.*** Mr. Broverman has served as a Board Member and the Independent Manager of the Company since November 18, 2024 and has served as member of the Board of Managers of Masterworks, LLC since April 29, 2020. Mr. Broverman co-founded Betterment in 2007 and served as its President and COO from 2007 to 2017. An expert in securities and financial institutions law, Mr. Broverman has designed a wide range of structuring and compliance initiatives for broker-dealers and investment advisors. From 2005 to 2007, Mr. Broverman practiced law at the international law firm Proskauer Rose LLP, where he advised Fortune 500 companies and their senior management on securities, tax, and compensation matters. Mr. Broverman serves as an adviser and or Board Member of several privately held financial technology companies, including Betterment, Carver Edison, Covered by Sage, Bloom Credit, and Good Money.

The foregoing individuals have also served in the capacity as executive officers and members of the board of managers of our affiliated entities of Masterworks.

**Key Employee of Masterworks**

***Scott W. Lynn.*** Mr. Lynn, who is the Founder of Masterworks, has served as the Chief Executive Officer of our affiliate Masterworks, LLC since February 1, 2018, and as the Chief Executive Officer of the Administrator since November 28, 2018. Mr. Lynn has been an active collector of contemporary art for more than fifteen years and has built an internationally-recognized collection of Abstract Expressionism that has included works by Clyfford Still, Barnett Newman, Mark Rothko, Willem de Kooning, and more. Mr. Lynn's collection has been exhibited at museums such as the Royal Academy in London, the Denver Art Museum, the Palm Beach Museum, National Gallery, the Guggenheim (New York), and the Museum of Modern Art. Mr. Lynn is an Internet entrepreneur and has founded, acquired, or acted as a majority-investor in over a dozen advertising technology, content, and fintech companies. Mr. Lynn serves as a board member of the International Foundation for Art Research (a non-profit; publisher of the IFAR journal, which topically focuses on art authenticity and stolen art research, as well as additional research projects related to artwork authenticity).

**Limited Liability and Indemnification of the Board of Managers, the Administrator and Others**

Our operating agreement limits the liability of the Board of Managers, any members of our Company, any person who is an officer of our Company and any person who serves at the request of the Board of Managers on behalf of us as an officer, member of the Board of Managers, partner, member, shareholder or employee of such person and the Target Issuer Agreements limits the liability of the Administrator and its affiliates. None of the foregoing persons shall be liable to us or the Administrator or any other of our members for any action taken or omitted to be taken by it or by other person with respect to us, including any negligent act or failure to act, except in the case of a liability resulting from any of the foregoing person's own actual fraud, gross negligence, willful misconduct, bad faith, breach of fiduciary duty, reckless disregard of duty or any intentional and material breach of our operating agreement or conduct that is subject of a criminal proceeding (where such person has reasonable cause to believe that such conduct was unlawful). With the prior consent of the Board of Managers, any of the foregoing persons may consult with legal counsel and accountants with respect to our affairs (including interpretations of the Masterworks Vault 16, LLC operating agreement) and shall be fully protected and justified in any action or inaction which is taken or omitted in good faith, in reliance upon and in accordance with the opinion or advice of such counsel or accountants. In determining whether any of the foregoing persons acted with the requisite degree of care, such person shall be entitled to rely on written or oral reports, opinions, certificates and other statements of members of the Board of Managers, officers, employees, consultants, attorneys, accountants and professional advisors of our Company selected with reasonable care; provided, that no such person may rely upon such statements if it believed that such statements were materially false. The foregoing limitations on liability reduce the remedies available to the holders of the Class A shares of a series for actions taken which may negatively affect us.

Insofar as the foregoing provisions permit indemnification of members of the Board of Managers, officers or persons controlling us for liability arising under the Securities Act, we have been informed that, in the opinion of the SEC, this indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Term, Withdrawal and Removal of Members of the Board of Managers**

Our operating agreement provides that each member of our Board of Managers will serve as a Manager, for an indefinite term, but a Manager may be removed or replaced for any reason by a majority of the Board of Managers or by the holder of the Class C share of a series.

Our members may only remove a member of the Board of Managers for "Cause," following the affirmative vote of two-thirds (2/3) of the issued and outstanding voting shares of each series voting separately as a class and all series collectively voting as a single class. The term "Cause" is defined as:

● The commission by a member of the Board of Managers of fraud, gross negligence or willful misconduct;

● The conviction of a member of the Board of Managers of a felony;

● A material violation by a member of the Board of Managers of any applicable law that has a material adverse effect on our business; or

● The bankruptcy or insolvency of a member of the Board of Managers.

**Masterworks Shares**

Prior to giving effect to the Offering, 100% of the membership interests of each series are held by Masterworks in the form of Class B shares of such series. Each series will have the same number and type of classes of membership interests as the applicable Target Issuer prior to giving effect to the Restructuring Transactions, which will include Class A ordinary shares of a series, Class B shares of a series and the Class C share of a series, and may include Class A preferred shares of a series.

Class B shares of each series, which are owned by Masterworks, represent a 20% "profits interest" in the fully diluted equity of each series. The Class B shares will entitle Masterworks to 20% of the profit on sale of the Artwork of a series or the ability to convert such shares into Class A shares of a series with a value at the time of conversion equal to 20% of the increase in value of the issued and outstanding shares of a series. Masterworks will have no restrictions on the disposition of any of its Class B shares of a series after the one-year anniversary of the final closing of the initial offering conducted by the applicable Target Issuer, other than restrictions in our operating agreement, the relevant Target Issuer Agreement and restrictions imposed by applicable securities laws.

The Class C share of a series represents a special class of membership interests of a series, which has no economic rights or obligations and has no voting rights, but has the right to remove and or replace all or any members of the Board of Managers and reconstitute the Board without "cause" for any reason. The Class C share of a series will only be issued to, or subsequently transferred to, a Masterworks affiliate and there can only be one holder of Class C shares of all series of the Company at any point in time.

**Securities Being Offered**

Investors will acquire Class A shares in a series of the Company, each of which is intended to be a separate series of the Company for purposes of accounting for assets and liabilities. It is intended that owners of Class A shares in a series will only have an interest in the assets, liabilities, profits and losses pertaining to the specific series. For example, an owner of interests in Series 1 will only have an interest in the assets, liabilities, profits and losses pertaining to Series 1 and its related operations. See the "Description of Shares" section for further details.

**Masterworks Platform**

***Overview***

The Masterworks Platform is owned by Masterworks, LLC, and is operated by the principals of Masterworks (including Masterworks Administrative Services, LLC). Through the Masterworks Platform, investors can:

● Browse and screen potential art investment offerings and obtain information about offerings, including current and future SEC filings;

● Provide us with information, including information required to determine whether they are qualified to invest in an offering, and sufficient to satisfy our compliance obligations under applicable laws;

● Indicate interest in participating in offerings and, with respect to offerings that have been qualified by the SEC, transact entirely online, including review and execution of legal documentation, funds transfer and ownership recordation;

● Execute trades in shares issued by Masterworks issuers via the ATS; and

● Manage and track investments easily through an online portfolio management tool.

We intend to distribute the Class A shares of each series exclusively through the Masterworks Platform. Neither Masterworks, LLC nor any other affiliated entity involved in the offer of the Class A shares of a series is currently a member firm of the Financial Industry Regulatory Authority, Inc., or FINRA, and no person associated with us will be deemed to be a broker solely by reason of his or her participation in the sale of the Class A shares of a series.

***ATS***

An electronic alternative trading system, operated by NCPS, an SEC-registered broker-dealer and member of FINRA and SIPC in accordance with SEC Regulation ATS (the "ATS"), is expected to facilitate trading of Class A shares of a series, which is expected to commence as promptly as possible after the completion of the Offering. The ATS will enable a holder of Class A shares of a series to post live bids and offers 24 hours per day seven days per week, provided that trades will actually occur only during regular trading hours that substantially mirror the trading hours on national securities exchanges.

In order to execute a transaction on the ATS, a buyer or seller of Class A shares of a series will be required to create a cash brokerage account with NCPS. To buy securities on the ATS, investors may also need to fund the brokerage account in an amount sufficient to pay the full purchase price. Owners of Class A shares of a series may submit bids and ask quotes to purchase or sell Class A shares of a series, and any such transactions will be executed by a broker-dealer authorized to settle trades (the "Executing Broker"), if applicable, and matched through the ATS.

We anticipate that there may be a suspension of trading of Target Issuer shares for one or two trading days following the effective date of the Restructuring Transactions for administrative reasons. Masterworks will directly notify owners of the Class A shares of a series when they are available for posting on the ATS and will file a notification of such availability on Form 1-U at such time. For so long as the Company exists and the shares of any series are available for posting on the ATS, the Company will continue to file reports under Rule 257 of Regulation A.

Just as with the Target Issuers, Masterworks currently expects to pay all costs and expenses associated with listing the Class A shares of a series on the ATS, establishment of brokerage accounts and trading and executing transfers of the Class A shares of a series on the ATS via the Executing Broker. Certain trading and or brokerage fees currently paid by Masterworks may be passed on to investors in certain foreign jurisdictions or to all investors in the future. In addition, Masterworks may at some point in the future seek to register to become a broker-dealer and a member of FINRA to enable it to earn transactional fees for trading the Class A shares or it may seek to earn administrative or other fees or recoup its costs associated with making a trading market available.

Secondary trades of Class A shares matched on the ATS are intended to comply with Blue Sky laws either through a Manual exemption in states where available, through a direct filing with the state securities regulators where required, as unsolicited transactions executed through a broker dealer or as isolated non-issuer transactions.

Due to regulatory compliance restrictions, the ATS or certain features of the ATS will not be available to residents of certain foreign countries or those who invest through a self-directed IRA. For a list of countries that are enabled on the ATS, see the trading section of the Masterworks Platform. In addition, Class A shares of a series held by affiliates of the Company are "control" securities under U.S. federal securities laws and are subject to restrictions on transfer. If you hold more than 10% of the Class A voting shares of a series, you may be deemed an affiliate of such series and may be unable to participate on the ATS or otherwise freely transfer your shares. The Company or its transfer agent may require you to provide a legal opinion and or other information to determine your affiliate status.

There can be no assurance that the ATS will provide an effective means of selling your Class A shares. In light of a variety of factors, including, without limitation, the relatively small market capitalization of each series, we cannot guarantee that the ATS will provide a reliable or effective means of price discovery. Accordingly, any posted offer prices or historical transaction information reflected on the ATS should not be construed as being representative of the fair value of the Class A shares of a series or of the artwork owned by such series.

**License Agreement**

Effective upon the completion of the Restructuring Transactions, each series will be assigned a license agreement with Masterworks, pursuant to which Masterworks grants us a non-exclusive license for nominal consideration to use the name "Masterworks" and utilize systems, software and technology owned or licensed by Masterworks, including the Masterworks Platform, for certain activities and for the term outlined in the relevant Target Issuer Agreement. Other than with respect to this license, we will have no legal right to use the "Masterworks" name or Masterworks Platform. In the event that the Administrator ceases to manage our operations pursuant to the applicable Target Issuer Agreement, we would be required to change our name to eliminate the use of "Masterworks".

**Involvement in Certain Legal Proceedings**

No executive officer, member of the Board of Managers, or significant employee or control person of our Company or the Administrator has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.

**MANAGEMENT COMPENSATION**

The Administrator, and its affiliates will receive certain fees and expense reimbursements for services relating to the maintenance and sale of the Artwork of each series pursuant to the Target Issuer Agreements. The items of compensation are summarized below. In addition, Masterworks will own 1,000 Class B shares of each series, representing a 20% "profits interest" in the fully diluted equity of each series following the closing of the Offering.

The fees and expense reimbursements described below will be identical to those of the predecessor Target Issuers irrespective of the Restructuring Transactions.

The following table sets forth the form of compensation and the recipient of such compensation together with the determination of the amount and the estimated amount. Please also refer to the "Management Compensation" section in the offering circular for each applicable Target Issuer.

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| | | |
|:---|:---|:---|
| **Form of Compensation and Expense Reimbursement** | **Determination of Amount** | **Estimated Amount** |
| *Management Fee* | In respect of ordinary management of our Company and the Artwork of a series including entity management and art management, each segregated portfolio will issue Management Fee Shares to the Administrator. | 1.5% of the total equity interests of the applicable segregated portfolio outstanding, after giving effect to such issuance, per annum, either in the form of SPC preferred shares, which are subject to a $20.00 per share preference on liquidation or SPC ordinary shares, depending on whether the applicable Target Issuer was obligated to issue SPC preferred shares or SPC ordinary shares. |
| *Profits Interest* | Masterworks will own 1,000 Class B shares of each series, representing a 20% "profits interest" in the fully diluted equity of such series following the closing of the Offering. | These amounts, if any, cannot presently be determined, but will be disclosed in a Current Report on Form 1-U if and when determined for any particular series. |
| *Reimbursement for Extraordinary and Non-Routine Costs* | Extraordinary or non-routine costs, payments and expenses, if any, relating to our Company or the Artwork of a series, will be paid for by the Administrator, but such extraordinary or non-routine costs and payments will be reimbursed in cash upon the sale of the Artwork of a series or a sale of our Company, as applicable. | These amounts, if any, cannot presently be determined, but will be disclosed in a Current Report on Form 1-U if and when determined for any particular series. |
| *Disposition of the Artwork without a third-party intermediary* | Masterworks may determine to sell the Artwork of a series, in which event, Masterworks affiliates would be entitled to reimbursement of out of pocket expenses and a reasonable sales commission in connection with such sale, provided that any such amounts shall not exceed the fees or commissions charged by unaffiliated third parties for similar services, as and to the extent described in the offering circular for the initial offering by the applicable Target Issuer. | These amounts, if any, cannot presently be determined, but will be disclosed in a Current Report on Form 1-U if and when determined. |

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**Compensation of Executive Officers**

We do not currently have any employees, nor do we currently intend to hire any employees who will be compensated directly by us. Each of our executive officers receive compensation for his or her services, including services performed for us, from Masterworks. Although we will indirectly bear some of the costs of the compensation paid to these individuals, through fees paid to the Administrator, we do not intend to pay any compensation directly to these individuals.

**Compensation of the Board of Managers**

Members of the Board of Managers who are also officers of Masterworks and the Company receive no compensation in respect of their service on the Board of Managers. The Independent Manager receives compensation from Masterworks for serving in such capacity on multiple issuer entities. Although we will indirectly bear some of the costs of the compensation paid to the Independent Manager through fees paid to the Administrator, we do not intend to pay any compensation directly to this individual.

**SECURITY OWNERSHIP OF**

**MANAGEMENT AND CERTAIN SECURITY HOLDERS**

Prior to giving effect to the Offering, 100% of the voting membership interests of each series of the Company are held by Masterworks in the form of 1,000 Class B shares of each series. Following the closing of the Offering and after giving effect to the Restructuring Transactions, each surviving series of the Company will have an identical capital structure, capitalization and share ownership as its applicable Target Issuer had immediately prior to the Restructuring Transactions.

Neither the Administrator nor any of its affiliates, nor any executive officer or member of the Board of Managers of the Company owns any voting membership interests in any Target Issuer or will own any voting membership interests in the Company following the completion of the Offering and the Restructuring Transactions.

The table below reflects beneficial ownership information of the Company as of April 23, 2026 and the estimated beneficial ownership of the Class A shares of each series after the Offering and Restructuring Transactions for:

● Each person known to us to be the beneficial owner of more than 10% of the Class A shares of any Target Issuer entitled to vote who will therefore become the beneficial owner of the same number and percentage of voting Class A shares in the applicable surviving series;

● Each named executive officer;

● Each member of the Board of Managers; and

● All of the executive officers and members of the Board of Managers as a group.

The table below only includes columns for surviving series for which there would be an actual beneficial owner of more than 10% of the Class A shares entitled to vote, if any. We believe, based on the information furnished to us, that the persons and entities, if any, named in the tables below have sole voting and investment power with respect to all Class A shares of each series that they beneficially own, subject to applicable community property laws.

Unless otherwise noted below, the address for each beneficial owner listed on the table is in care of our Company, 1 World Trade Center, 57<sup>th</sup> Floor, New York, New York 10007. We have determined beneficial ownership in accordance with the rules of the SEC.

A member that beneficially owns 5% or more of the Class A shares of a series (excluding shares beneficially owned by Masterworks) may irrevocably limit or eliminate its voting rights by providing an irrevocable certification to the Company in substantially the form of Exhibit B to the operating agreement. In subsequent reports we file pursuant to Regulation A that require beneficial ownership information, we will disclose the number and percentage of Class A shares of a series that are eligible to vote as well as the number and percentage of Class A shares of a series that are not eligible to vote as of such filing date. In addition, (i) any existing member of a Target Issuer who irrevocably eliminated its voting rights or limited its voting rights to not more than 10% of the total voting power of the Class A shares of a Target issuer and (ii) any member that irrevocably eliminates its voting rights or limits its voting rights to not more than 10% of the total voting power of the Class A shares of a series, shall, as applicable, not be named or have its address or ownership reported in the beneficial ownership table included in the Company's SEC reports, unless such person is otherwise deemed to be an "affiliate" of the Company as defined in Rule 405 of the Securities Act.

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| | | | |
|:---|:---|:---|:---|
| | | **Membership Interests**<br> **Beneficially Owned Prior to the Offering** | **Class A Shares Beneficially Owned After the Offering** |
| <br>**Name of Beneficial Owner** | <br>**Series** | **Number** | **Number** |
| **Named Executive Officers and Board of Managers:** |  |  |  |
| Nigel S. Glenday, Chief Executive Officer; Chief Financial Officer<sup>(1)</sup> |  | - \* | - \* |
| Joshua B. Goldstein, General Counsel and Secretary<sup>(1)</sup> |  | - \* | - \* |
| Eli D. Broverman, Independent Representative <sup>(1)</sup> |  | - \* | - \* |
| All named executive officers and Members of the Board of Managers as a group (3 persons) |  | - \* | - \* |

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| | | | |
|:---|:---|:---|:---|
| **Name of Beneficial Owner** | **Series** | **Number** | **Percent** |
| **10% Holders:** |  |  |  |
| Dutchyard Investments B.V. | 114 | 20167 | 12.04% |
| Dutchyard Investments B.V. | 125 | 20738 | 18.20% |
| Dutchyard Investments B.V. | 127 | 15562 | 19.37% |
| Dutchyard Investments B.V. | 132 | 5031 | 15.40% |
| Maurice Werdegar | 132 | 5000 | 15.30% |
| Dutchyard Investments B.V. | 137 | 25955 | 14.85% |

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\* Less than 1.0%

(1) Also serve as members of the Board of Managers of the Company.

The Lynn Family Trust 001 (the "Trust") owns approximately 81% of the membership interests of Masterworks, LLC. Mr. Lynn is the Chief Executive Officer of Masterworks, LLC and Masterworks Administrative Services, LLC. By contract, Mr. Lynn has the power to vote 100% of the membership interests beneficially owned by the Trust and controls Masterworks. No other person beneficially owns 10% or more of the voting membership interests of Masterworks, LLC or any of its subsidiaries. Masterworks beneficially owns 100% of the Company's non-voting Class B shares and earns Management Fee Shares at an annual rate of 1.5%.

Class B shares beneficially owned by Masterworks entitle Masterworks to 20% of the profit on sale of the Artwork of a series or the ability to convert such shares into Class A shares with a value at the time of conversion equal to 20% of the increase in value of our issued and outstanding Class A and B shares. The amounts reflected in the table do not include any Class A shares which may be issuable upon conversion of Class B shares because such amount is indeterminable, and does not include any Class A shares that Masterworks earned as Management Fee Shares.

For information on the capitalization of each series of the Company following the Offering and the Restructuring Transactions, including the beneficial ownership by Masterworks of each series, see "The Restructuring Transactions - Capital Structure Following the Offering."

**INTEREST OF MANAGEMENT AND**

**OTHERS IN CERTAIN TRANSACTIONS**

*We are subject to various conflicts of interest arising out of our relationship with Masterworks. These conflicts are discussed below, and this section is concluded with a discussion of the corporate governance measures we have adopted to mitigate some of the risks posed by these conflicts. References throughout this offering circular to the Masterworks Vault 16, LLC "operating agreement" refer to the Masterworks Vault 16, LLC amended and restated operating agreement.*

In addition to the compensation arrangements discussed in the section titled "Management Compensation," the following is a description of each transaction since November 18, 2024 (our inception) and each currently proposed transaction in which:

● We have been or will be a participant;

● The amount involved exceeds one percent of our total assets; and

● In which any member of the Board of Managers or executive officer, of the Company or the related Masterworks entities or their applicable beneficial owners, or beneficial owners of more than 5% of the Class A shares of a series or any immediate family member of, or person sharing the household with, any of these individuals, had or will have a direct or indirect material interest.

Scott W. Lynn is the Chief Executive Officer of Masterworks and is also able to control the activities of all of the Masterworks entities as well as our Company. Mr. Lynn is also the Chief Executive Officer of the Administrator. The Lynn Family Trust 001 is also responsible for funding Masterworks.

**Appraisals**

Appraisals are performed by employees of the Administrator. The Administrator receives equity-based compensation for the administration of the artwork and its affiliates have economic interests in the Masterworks business, as well as profits interests in our Company. Although the amount of equity-based compensation earned by the Administrator is not directly or indirectly tied to appraised values, if the Administrator were to sell Management Fee Shares or other Class A shares it owns, any such secondary sale price may be influenced by appraisals. The compensation of employees of the Administrator is not directly contingent upon the performance of any appraisal, including reporting of a predetermined value or direction in value that favors the cause of Masterworks, the appraised fair market value, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of any appraisal. Although the Administrator has inherent conflicts of interest, the Administrator has taken steps it deems reasonable in seeking to ensure that employees and others involved in performing appraisals can act independently of Masterworks and free from bias; no assurance can be given that a truly independent appraisal would not produce a different outcome.

**Beneficial Owner of Affiliated Entities**

The Lynn Family Trust 001 is the majority beneficial owner of all of the Masterworks affiliated entities. Scott W. Lynn, the Chief Executive Officer of Masterworks, LLC and Masterworks Administrative Services, LLC, may also be deemed the beneficial owner of the Masterworks entities given his power to exercise voting control through an agreement with the Trust. The Lynn Family Trust 001 is also responsible for funding Masterworks. Mr. Lynn is the Chief Executive Officer of Masterworks and is an art collector and is also able to control the activities of all of the Masterworks entities as well as our Company. Mr. Lynn could have conflicts with his personal art collection and the collection of Masterworks.

**Qualification Rights**

Masterworks will have the right to request that we qualify on Form 1-A, or a comparable form, the resale of any Class A shares of a series beneficially owned by Masterworks or any entity administered by Masterworks. There are no limitations or restrictions on the size or frequency of such qualification requests, other than pursuant to applicable law, provided that all costs associated with any such qualification shall be the responsibility of Masterworks. If Masterworks exercises its qualification rights and offers Class A shares of a series in a secondary offering pursuant to Regulation A, it may be more difficult to sell your Class A shares of such series and could adversely affect the price at which you can sell your Class A shares of such series on the ATS. The qualification rights are set forth in the Company's operating agreement.

**Our Affiliates' Interests in Other Masterworks Entities**

***General***

The officers and members of the Board of Managers who perform services for us are also officers, members of the Board of Managers, managers, and/or key professionals of Masterworks and other Masterworks entities. These persons have legal obligations with respect to those entities that are similar to their obligations to us. In the future, these persons and other affiliates of Masterworks may organize other art-related programs and acquire for their own account art-related assets. In addition, Masterworks has granted non-voting equity interests in Masterworks, LLC to certain management personnel performing services, including our executive officers.

***Allocation of Our Affiliates' Time***

We rely on Masterworks and its key professionals who act on our behalf and on behalf of the Administrator, including Scott W. Lynn, Nigel S. Glenday and Joshua B. Goldstein for the day-to-day operations of our business and the Administrator's business. Messrs. Lynn, Glenday and Goldstein are also, respectively, the Chief Executive Officer, Chief Financial Officer and General Counsel/Secretary of the Administrator and are officers of the other Masterworks entities. As a result of their interests in other Masterworks entities, their obligations to other investors and the fact that they engage in and will continue to engage in other business activities on behalf of themselves and others, they will face conflicts of interest in allocating their time among us, the Administrator and other Masterworks entities and other business activities in which they are involved. However, we believe that the Administrator and its affiliates have sufficient professionals to fully discharge their responsibilities to the Masterworks entities for which they work. The Administrator also serves as the Administrator for other entities and the services to be provided to these entities are substantially similar to those to be provided to the Company.

**Duties Owed by Some of Our Affiliates to the Administrator and the Administrator's Affiliates**

Our officers and members of our Board of Managers and the key professionals performing services for us are also officers, members of the Board of Managers, managers and/or key professionals of:

● Masterworks, LLC, the owner of the Masterworks Platform;

● Masterworks Administrative Services, LLC, our Administrator;

● Masterworks Gallery LLC, an affiliate of Masterworks, which seeks to acquire the Artwork of each series as agent for the Company; and

● Other Masterworks entities.

As a result, they owe duties to each of these entities, their equity holders, members and limited partners. These duties may from time-to-time conflict with the duties that they owe to us.

**No Underwriter**

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

**Certain Conflict Resolution Measures**

***Independent Manager***

The Board of Managers is made up of Nigel S. Glenday, Joshua B. Goldstein and Eli D. Broverman. One of the members of the Board of Managers, Eli D. Broverman, serves as the Independent Manager on the Board of Managers (the "Independent Manager"). The Independent Manager serves to protect the interests of the holders of the Class A shares of each series and is tasked with reviewing and approving all related party transactions of our Company with our affiliates and addressing all conflicts of interest that may arise between us and the holders of the Class A shares of each series and our affiliates. The Independent Manager's role is solely related to governance and he has no involvement in the operations of the Company or Masterworks and does not participate in any offering activities. The Independent Manager and any replacement Independent Manager if the Independent Manager resigns or is removed from such position on the Board of Managers at any time, shall meet the standards of an "independent director" pursuant to the standards set forth in NASDAQ Marketplace Rule 4200(a)(15).

***Other Operating Agreement Provisions Relating to Conflicts of Interest***

Our operating agreement contains other restrictions relating to conflicts of interest including the following:

***Term of each Manager.*** Our operating agreement provides that each member of the Board of Managers will serve for an indefinite term, but that each member of the Board of Managers may be removed by a majority of the Board of Managers for any reason, or may choose to withdraw as a member of the Board of Managers under certain circumstances. Our operating agreement also provides that each member of the Board of Managers may be removed and or replaced and our Board of Managers can be reconstituted for any reason by the holder of the Class C share of a series. The Class C share of a series will be issued or transferred only to a Masterworks affiliate. The Class C share of a series, once issued, may be redeemed or canceled by mutual agreement between the holder of the Class C share of a series and the Company.

Holders of two-thirds (2/3) of all voting Class A shares outstanding of each series separately as a class and all series together as a single class may affirmatively vote to remove any members of the Board of Managers for "cause" only.

**DESCRIPTION OF SHARES**

Prior to giving effect to the Offering, 100% of the issued and outstanding membership interests of each series are held by Masterworks in the form of 1,000 Class B shares of each series.

Immediately following the Restructuring Transactions, each series will have the same number and classes of membership interests as its applicable Target Issuer, which includes, at a minimum, Class A ordinary membership interests of a series ("Class A ordinary shares"), Class B membership interests of a series ("Class B shares") and the Class C share of a series, and may include, if applicable, Class A preferred membership interests of a series (Class A preferred shares"). Reference throughout this offering circular to "Class A shares" refers to the Class A ordinary shares of a series or the Class A ordinary shares of a series and Class A preferred shares of a series collectively, as applicable. References throughout this offering circular to "shares" refer generically to the Class A shares and Class B shares of a series.

In connection with the Restructuring Transactions, we are offering Class A ordinary shares of each applicable surviving series issued in respect of the Merger Consideration. The number of Class A shares offered by this offering circular in any series will equal the number of Class A ordinary shares outstanding issued to investors in the applicable Target Issuer's Regulation A offering and does not include any Class A shares issued to the Administrator in respect of administrative services.

Prior to giving effect to the Offering, Masterworks is the sole holder of record of 100% of the voting membership interests of each series represented by 1,000 Class B shares of each series representing a 20% profits interest of such series.

The Class C share of a series represents a special class of membership interests, which has no economic rights or obligations and has no voting rights, but has the right to remove and or replace all or any members of the Board of Managers and reconstitute the Board without "cause" for any reason. The Class C shares can only be issued to, transferred to, or, held by, a Masterworks affiliate and there can only be one holder of Class C shares of all series of the Company at any point in time.

The following description of the Shares is based upon our certificate of formation, our operating agreement, and applicable provisions of law, in each case as in effect prior to the qualification of this offering circular. This discussion does not purport to be complete and is qualified in its entirety by reference to the certificate of formation and the operating agreement, copies of which are filed with the SEC as exhibits to the offering statement of which this offering circular forms an integral part.

**Description of the Securities Being Offered**

Investors will acquire Class A shares in a series of the Company, each of which is intended to be a separate series of the Company for purposes of accounting for assets and liabilities. It is intended that owners of Class A shares in a series will only have an interest in the assets, liabilities, profits and losses pertaining to the specific Artwork owned by that series, which will be the same Artwork owned by its applicable Target Issuer. For example, an owner of interests in Series 1 will only have an interest in the assets, liabilities, profits and losses pertaining to Series 1 and its related operations. See the "Description of Shares" section for further details.

Further, pursuant to the terms of the Company's operating agreement, an investor, other than an affiliate of Masterworks, generally cannot own, or be deemed to beneficially own, as "beneficial ownership" is determined pursuant to Section 13(d) and 13(g) of the Securities Act, more than 24.99% of the total number of Class A shares of a series outstanding, provided that we may waive such limit on a case-by-case basis in our sole discretion.

**Membership Interests**

We were formed as a Delaware series limited liability company on November 18, 2024 by the Administrator, our founder. In order to facilitate the Restructuring Transactions, we will become a Texas series limited liability company and will then convert back to a Delaware limited liability company following the Merger. We are a manager-managed limited liability company. Upon our formation, Masterworks was issued 100% of our membership interests in the form of Class B shares of each series.

Pursuant to our operating agreement, we may not issue any additional Class A shares of a series that is in existence immediately after the consummation of this Offering, other than as described in this offering circular, including the Class A shares of a series that are issued or issuable as Management Fee Shares pursuant to the Target Issuer Agreements (including those Shares issuable upon conversion or exchange of Management Fee Shares), and those that may be issued upon conversion of the Class B shares of a series. We may form additional series after completion of the Offering and issue shares in such series in such amounts and of such classes as our Board of Managers may determine from time to time. The Administrator, our sole member as of the date of this offering circular, adopted our operating agreement.

**Target Issuer Operating Agreements**

After the completion of the Restructuring Transactions and this Offering, each member of a Target Issuer will become a member of the Company and party to the Company's operating agreement.

There are certain non-material or non-substantive differences between the operating agreements of each Target Issuer and the Company.

**Masterworks Cayman Segregated Portfolio Capitalization and Distributions**

Each segregated portfolio of Masterworks Cayman will issue SPC ordinary shares to the applicable series and, following the Offering, will issue Management Fee Shares to the Administrator in the form of SPC preferred shares or SPC ordinary shares, as applicable, pursuant to the Target Issuer Agreements.

*SPC ordinary shares*. SPC ordinary shares represent ordinary equity interests in each segregated portfolio of Masterworks Cayman. Each segregated portfolio shall have the exact number of SPC ordinary shares outstanding as the number of Class A shares outstanding of the applicable surviving series and the surviving series will hold 100% of such SPC ordinary shares (excluding Management Fee Shares). Following the Restructuring Transactions, if the segregated portfolio held by a Target Issuer issued Management Fee Shares in the form of SPC ordinary shares, the segregated portfolio will issue Management Fee Shares in the form of additional SPC ordinary shares. SPC ordinary shares held by any person other than the applicable series (or its successor) are exchangeable on a one-for-one basis for Class A ordinary shares of the applicable surviving series and SPC ordinary shares held by any person other than the applicable series (or its successor) will be automatically exchanged on a one-for-one basis for Class A ordinary shares of the surviving series immediately prior to any distribution from a sale of Artwork.

SPC preferred shares. SPC preferred shares (and together with SPC ordinary shares, "SPC shares") represent preferred equity interests in each segregated portfolio of Masterworks Cayman, which may be issued to the Administrator following the Offering as Management Fee Shares, but only to the extent the applicable surviving series has succeeded to a Target Issuer that held a segregated portfolio that was obligated to issue SPC preferred shares to the Administrator prior to the Restructuring Transactions. SPC preferred shares have a $20.00 per share liquidation preference over SPC ordinary shares and are "non-participating", meaning that if any distribution is made with respect to SPC preferred shares, such distribution will never exceed $20.00 per share. SPC preferred shares are exchangeable on a one-for-one basis for Class A ordinary shares of the applicable surviving series at the option of the holder thereof.

If and to the extent a series were to issue additional Class A shares (such as upon conversion of Class B shares for example), the applicable segregated portfolio would issue additional SPC shares to the holders of SPC shares pro rata to preserve the one-to-one exchange ratio between SPC shares and Class A shares of the applicable series.

*Distributions*. When Artwork is sold and the segregated portfolio of Masterworks Cayman receives the proceeds of such sale, the proceeds will be distributed according to the following "distribution waterfall":

FIRST, payment will made to Masterworks (as a reimbursement) and or third parties in respect of any costs or expenses for which either the segregated portfolio or the series is responsible, if any;

SECOND, to the extent any funds remain undistributed, to the extent the segregated portfolio has issued and outstanding SPC preferred shares which have not been exchanged for Class A ordinary shares of the applicable series, such remaining funds will be distributed to the holders of the outstanding SPC preferred shares in an amount up to (but not exceeding) $20.00 per share; and

THIRD, to the extent any funds remain undistributed, such remaining funds will be distributed to the holder of SPC ordinary shares (i.e. the series).

**Summary of Masterworks Vault 16, LLC Operating Agreement**

Following the Offering and the Restructuring Transaction, we will be governed by an agreement titled the "Amended and Restated Limited Liability Company Operating Agreement" of Masterworks Vault 16, LLC. References throughout this offering circular to the Masterworks Vault 16, LLC "operating agreement" and the "amended and restated operating agreement" of Masterworks Vault 16, LLC, refer to the Masterworks Vault 16, LLC Second Amended and Restated Limited Liability Company Operating Agreement, the form of which is filed as Exhibit 2.2 to the offering statement of which this offering circular forms an integral part. The following summarizes some of the key provisions of the Masterworks Vault 16, LLC operating agreement. This summary is qualified in its entirety by our operating agreement itself, the form of which is included as Exhibit 2.2 to the offering statement of which this offering circular forms an integral part.

***Organization and Duration***

We were formed on November 18, 2024, as a Delaware series limited liability company as set forth in Section 18-215 of the Delaware Limited Liability Company Act. We will remain in existence until liquidated in accordance with the Masterworks Vault 16, LLC operating agreement.

***Purpose and Powers***

Under our operating agreement, we are permitted to engage in such activities as determined by the Board of Managers that lawfully may be conducted by a limited liability company organized under Delaware law and, in connection therewith, to exercise all of the rights and powers conferred upon us and the Board of Managers pursuant to the agreement relating to such business activity, provided that we are prohibited from engaging in certain activities referred to as "Prohibited Acts" without obtaining the approval of the holders of a majority of the voting shares of the Company or one or more series, as applicable. "Prohibited Acts" consist of amending, waiving or failing to comply with any material provision of our operating agreement that disproportionately and adversely affects the Class A shareholders of a series, except as otherwise provided therein.

***Board of Managers and its Powers***

We are a manager-managed series limited liability company as set forth in Section 401 and Section 101 of the Delaware Limited Liability Company Act. Our operating agreement appoints the Board of Managers of the Company.

Pursuant to our operating agreement and the Target Issuer Agreements, the Administrator will have complete and exclusive discretion in the management and control of our affairs and business, subject to the requirement to obtain consent for Prohibited Acts, and shall possess all powers necessary, convenient or appropriate to carrying out the purposes and business of our Company, including doing all things and taking all actions necessary to carry out the terms and provisions of each of the foregoing agreements.

Pursuant to our operating agreement, the Board of Managers shall have full authority in their discretion to exercise, on our behalf and in our name of the Company, all rights and powers of a "manager" of a limited liability company under the Delaware Limited Liability Company Act necessary or convenient to carry out our purposes. Any person not a party to our operating agreement dealing with us will be entitled to rely conclusively upon the power and authority of the Board of Managers to us in all respects, and to authorize the execution of any and all agreements, instruments and other writings on behalf of us and in our name.

The Board of Managers will have sole voting power over all matters, including: mergers, consolidations, acquisitions, winding up and dissolution; except, the Board of Managers shall not have the authority to amend, waive or fail to comply with any material provision of our operating agreement that disproportionately and adversely affects the Class A shareholders as a whole or an affected series except as provided therein, without the prior written consent of the holders of a majority of the voting shares of the Company or such series, as applicable.

Any member of the Board of Managers may be removed and replaced by a majority of the Board of Managers or the holder of the Class C share of a series with or without "Cause." In addition, any member of the Board of Managers may be removed or replaced by the affirmative vote of members holding two-thirds (2/3) of the voting shares of each series voting separately as a class and all of the series then existing voting as a single class for "Cause" only. The term "Cause" is defined as follows:

(a) the commission by a member of the Board of Managers of fraud, gross negligence or willful misconduct;

(b) the conviction of a member of the Board of Managers of a felony;

(c) a material violation by a member of the Board of Managers of any applicable law that has a material adverse effect on our business;

(d) the bankruptcy or insolvency of a member of the Board of Managers

***Classes of Ownership***

Prior to giving effect to the Offering and the Restructuring Transactions, 100% of the membership interests of each series are owned by Masterworks in the form of 1,000 Class B shares of such series. Following the Offering we will have the following classes of membership interests for each series:

*Class A ordinary shares*. The number of Class A ordinary shares of each series being offered in the Offering will be equal to the number of Class A ordinary shares issued by the applicable Target Issuer in the initial Regulation A offering conducted by such Target Issuer. The total number of Class A shares of each series outstanding upon the closing of the Offering is the number of shares issued in the Offering plus the number of Class A ordinary shares, if any, that were issued as Management Fee Shares by the applicable Target Issuer prior to the Restructuring Transactions. The number of additional Class A ordinary shares of a series that may be issued following the Offering (subject to issuances pursuant to stock-splits, recapitalizations or similar transactions) is limited to shares issuable upon conversion or exchange of Management Fee Shares (including SPC shares) and upon conversion of the Class B shares of such series.

*Class A preferred shares*. Class A preferred shares have a $20.00 per share liquidation preference over Class A ordinary shares and are convertible on a one-for-one basis into Class A ordinary shares. Each Class A preferred share may be converted to one Class A ordinary share at any time in the sole discretion of the holder. A series shall only have authorized Class A preferred shares if its applicable Target Issuer had authorized Management Fee Shares in the form of Class A preferred shares. The number of Class A preferred shares outstanding following the Restructuring Transactions for each such series will be equal to the number of Class A preferred shares, if any, issued by the applicable Target Issuer as Management Fee Shares prior to the Restructuring Transactions. No additional Class A preferred shares will be issued following the Restructuring Transactions and future Management Fee Shares with respect to any such series shall be earned in the form of SPC preferred shares.

*Class B shares.* The Class B shares of each series held by Masterworks Foundry will represent 0% of our members' capital accounts in such series and, following the Offering, a 20% interest in the profits we recognize upon any sale of the Artwork of such series, which is the amount by which the net proceeds of any such sale exceed the product of (i) the total number of Class A shares outstanding at the time of a sale on a fully diluted basis, and (ii) $20.00, which is the initial offering price of the Class A shares of the applicable Target Issuer. There are currently 1,000 Class B shares of each series outstanding and there will be 1,000 Class B shares of each series outstanding upon the closing of the Offering. Upon mutual agreement of the holder of the Class B shares of each series and the Company, the Class B shares of each series may be redeemed by the Company for a nominal amount.

*Class C Share*. The Class C share of each series represents a special class of membership interests, which has no economic rights or obligations and has no voting rights, but has the right to remove and or replace all or any members of the Board of Managers and reconstitute the Board without "cause" for any reason. The Class C shares can only be issued to, transferred to, or, held by, a Masterworks affiliate and there can only be one holder of Class C shares of all series of the Company at any point in time.

***Voting Rights***

We refer to Class A shares of a series, excluding Class A shares of a series beneficially owned by Masterworks and Class A shares held by a Vote Limited Member above such shareholder's voting limit, as our "voting shares." On each matter where the members have a right to vote, each voting share shall be entitled to and shall constitute one (1) vote, and all voting shares shall vote together as a single class of a series or as a single class with holders of all voting Class A shares outstanding of all series together, as applicable, except as otherwise set forth in our operating agreement, or otherwise required by the Delaware Act. Actions or other matters that require a vote but do not affect all series or do not affect all series in substantially the same way shall require the requisite affirmative vote of the members of each series so affected, with each series voting as a separate class, but actions or other matters that affect all series in substantially the same way or the Company as a whole shall require the requisite affirmative vote of the voting shareholders of all series voting together as a single class. In determining any action or other matter to be undertaken by or on behalf of us, each member shall be entitled to cast a number of votes equal to the number of voting shares that such member holds, with the power to vote, at the time of such vote. Unless otherwise set forth in our operating agreement, or otherwise required by the Delaware Act, the taking of any action by us which requires a vote of the members as set forth above shall require the receipt of votes from members holding a majority of the voting shares, provided, that in the case of a proposed removal of the Administrator for any reason or a member of the Board of Managers for "Cause", an affirmative vote of holders of two-thirds (2/3) of the voting Class A shares outstanding of each series voting separately as a class and all series together voting as a single class shall be required to authorize and approve such action. In determining the outcome of any vote, shareholders that abstain or do not vote will effectively be counted as votes against such action. Each member of the Board of Managers may be removed and or replaced and our Board can be reconstituted for any reason by the holder of the Class C share of a series. The Masterworks affiliate that holds a Class C share of a series shall have no voting rights with respect to Class A shares of a series it beneficially owns.

A member that beneficially owns 5% or more of the Class A shares of a series (excluding shares beneficially owned by Masterworks) may irrevocably limit or eliminate its voting rights by providing an irrevocable certification to the Company in substantially the form of Exhibit B to the operating agreement. In the event a member irrevocably limits or eliminates its voting rights (a so-called "Vote Limited Member"), all of the Class A shares of a series beneficially owned by such Vote Limited Member in excess of the voting limit applicable to such member shall no longer have any voting rights for so long as such shares are beneficially owned by such member or such member's affiliates. Any existing member of a Target Issuer who irrevocably eliminated its voting rights or limited its voting rights to not more than 10% of the total voting power of the Class A shares of a Target Issuer and any member that irrevocably eliminates its voting rights or limits its voting rights to not more than 10% of the total voting power of the Class A shares of a series, shall, as applicable, not be named or have its address or ownership reported in the Company's ongoing SEC filings, including the beneficial ownership table in the Company's Annual Report on Form 1-K, unless such person is otherwise deemed to be an "affiliate" of the Company as defined in Rule 405 of the Securities Act.The determination of affiliate status for such purposes shall be made by the Board of Managers in its sole and absolute discretion and the Company or its transfer agent may require any shareholder that owns more than 10% of the Class A shares of a series to provide a legal opinion and or other information it deems necessary or appropriate to determine such person's affiliate status. If any such 10% or more shareholder is deemed to be an "affiliate", notwithstanding the limit on voting, such person's name, address and ownership will be reported in the Company's SEC filings, including the beneficial ownership table in the Company's Annual Report on Form 1-K.

Subject to the Delaware Act, the Board of Managers will have sole voting power over all matters, including: mergers, consolidations, acquisitions, winding up and dissolution; except, the Board of Managers shall not have the authority to amend, waive or fail to comply with any material provision of our operating agreement that disproportionately and adversely affects the Class A shareholders as a whole or an affected series except as provided therein, without the prior written consent of the holders of a majority of the voting shares of the Company or such series, as applicable.

***Conversion of Class B shares***

The Class B shares of a series can be convertible into Class A shares of such series, in whole or in part, at any time prior to the consummation of a sale of the Artwork by such series for no additional consideration pursuant to a conversion formula based on the relative fair market values of the Class B shares and Class A shares at such time. For additional information, see the Masterworks Vault 16, LLC Second Amended and Restated Limited Liability Company Operating Agreement, the form of which is filed as Exhibit 2.2 to the offering statement of which this offering circular forms an integral part.

As of the date of this offering circular, no Class B shares of any Target Issuer have been converted into Class A shares.

***Agreement to be Bound by the Operating Agreement***

Following the Offering, you will be admitted as a member of our Company and will be bound by the provisions of, and deemed to be a party to our operating agreement. Pursuant to our operating agreement, each holder of Class A shares of a series and each person who acquires a Class A share of a series from a holder must agree to be bound by the terms and conditions of our operating agreement.

***Shareholder Voting***

Class A shares of each series have one vote per share and we refer to the Class A shares of each series, excluding shares beneficially owned by Masterworks, or shares owned by a member that has irrevocably limited or eliminated such member's voting rights in excess of such member's voting limit, as "voting shares." The Class B shares of each series shall have no voting rights other than as may be required pursuant to applicable law. The term "other than as may be required pursuant to applicable law," takes into account the following considerations (i) pursuant to Section 18-806 of the Delaware Limited Liability Company Act (the "Act"), in the event that a limited liability company is dissolved by the occurrence of an event that causes the last remaining member to cease to be a member, the personal representative of the last remaining member of the limited liability company or the assignee of all of the limited liability company interests in the limited liability company may vote to revoke the dissolution, subject to the approval of any other persons whose approval is required under the limited liability company agreement to revoke a dissolution, such a vote could result in holders of the Class B shares of a series (or more accurately the personal representative of such persons) potentially be deemed to have a "right to vote" and (ii) the Act may be amended in the future to mandate voting rights for all interests in a Delaware limited liability company in certain situations, and if this occurs, without the provision "other than as may be required by law," the Company could be in a position where its operating agreement would be in violation of the Act.

Whenever holders of Class A shares of a series are required or entitled to vote on any matter, except as otherwise provided, that vote may be taken at a meeting or may be taken via a written consent in lieu of a meeting.

The Company shall provide holders of voting shares with not less than five (5) nor more than sixty (60) days prior notice of any meeting or any action subject to a vote of holders of voting shares at a meeting shall require a quorum, in the form of votes actually cast (whether in person or by proxy), from at least a majority of the voting shares eligible to vote on such matter or such higher percentage of voting shares as may be required for such action. At any meeting or on any matter that is to be voted on or consented to by holders of voting shares, the then holders of our voting shares, may vote in person or by proxy, and such vote may be made, and a proxy may be granted in writing, by means of electronic transmission or as otherwise permitted by applicable law. Shares beneficially owned by Masterworks shall have no voting rights.

We have elected to be governed by paragraphs (b), (c), (d) and (e) of Section 212 of the Delaware General Corporation Law (the "DGCL") and other applicable provisions of the DGCL, as though we were a Delaware corporation and as though holders of our voting shares were shareholders of a Delaware corporation. Such sections generally regulate proxies for any voting purposes. In the event that we become subject to Regulation 14A under the Exchange Act, pursuant to and subject to the provisions of Rule 14a-16 under the Exchange Act, we may, but are not required to, utilize a Notice of Internet Availability of Proxy Materials, as described in that rule, in conjunction with proxy material posted to an Internet site, in order to furnish any proxy or related material to holders of voting shares pursuant to Regulation 14A under the Exchange Act. We currently intend to utilize the Masterworks platform to the extent possible for meetings of, and votes of our shareholders.

***Shareholder Distributions***

Following the Offering, the Company does not expect to pay any distributions, other than a distribution following a sale of the Artwork of a series. There can be no assurance as to the timing of a distribution or that we will pay a distribution at all. There are no contractual restrictions on our ability to declare or pay dividends and if any are to be paid in the future, such decision will be at the discretion of our Board of Managers and will depend on our then current financial condition and other factors deemed relevant by the Board of Managers.

When Artwork is sold and the segregated portfolio of Masterworks Cayman receives the proceeds of such sale, the proceeds will be distributed according to the "distribution waterfall" described above under the caption "- Masterworks Cayman Segregated Portfolio Capitalization and Distributions - Distributions." Cash proceeds received by a series shall then be distributed as follows:

FIRST, payment will made to Masterworks (as a reimbursement) and or third parties in respect of any costs or expenses for which either the segregated portfolio or the series is responsible, if any;

SECOND, to the holders of outstanding Class A preferred shares of the series, if any, on a pro rata basis up to (but not exceeding) $20.00 per Class A preferred share;

THIRD, to the extent any funds remain undistributed, such remaining funds will be distributed to the holders of Class A ordinary shares, on a pro rata basis up to (but not exceeding) $20 per Class A ordinary share;

FOURTH, to the extent any funds remain undistributed, 80% of such remaining funds will be distributed to the Class A shareholders (Class A ordinary shareholders and Class A preferred shareholders) pro rata and 20% of such remaining funds will be distributed to the Class B shareholders.

If a segregated portfolio of Masterworks Cayman has issued SPC ordinary shares to Masterworks as Management Fee Shares, such SPC ordinary shares shall automatically be exchanged on a one-for-one basis for Class A ordinary shares of the applicable series immediately prior to any distribution from the segregated portfolio resulting from a sale of the Artwork. If the segregated portfolio of Masterworks Cayman has issued SPC preferred shares and if the sale of the Artwork of a series were to result in a distribution to the holders of Class A ordinary shares of a series equal to or greater than $20.00 per share after giving effect to the distribution waterfall described above (i.e. a "profitable sale"), such SPC preferred shares will be exchanged on a one-for-one basis, for Class A ordinary shares of the series prior to any distribution to shareholders and the holder(s) of such shares shall receive proceeds solely as a holder of Class A ordinary shares of the series consistent with the distribution waterfalls set forth above.

If the segregated portfolio applicable to a series has issued SPC preferred shares and if the sale of the Artwork held by such segregated portfolio were to result in a distribution to the holders of Class A shares of a series of less than $20.00 per share after giving effect to the distribution waterfall described above (i.e. a "loss sale"), the holder of SPC preferred shares shall receive up to $20.00 per share, after which any remaining proceeds will be distributed to holders of Class A ordinary shares of the series. If a holder of Class A preferred shares or SPC preferred shares converts or exchanges those shares for Class A ordinary shares of a series, such holder shall participate in a distribution or liquidation solely as a holder of such Class A ordinary shares.

In addition, the holder of the Class C share has no economic rights. Our Board of Managers may also determine at any time to declare a distribution to the Class B member of any series in the amount of the initial capital contribution to such series.

After all of such distributions are made, the applicable segregated portfolio and series will be dissolved. Further, following a sale of an Artwork, but prior to a distribution to shareholders, the Company may elect to redeem Class A shares of a series outstanding from Class A members of such series other than Masterworks for an amount per Class A share equal to the liquidation amount per Class A share as determined in accordance with the distribution waterfall described above and our operating agreement, subject to certain conditions set forth in the operating agreement.

***Limited Liability***

The liability of each member of our Company shall be limited as provided in the Delaware Limited Liability Company Act and as set forth in the Masterworks Vault 16, LLC operating agreement. No member of our Company shall be obligated to restore by way of capital contribution or otherwise any deficits in its capital account (if such deficits occur).

The Delaware Limited Liability Company Act provides that a member of a Delaware limited liability company who receives a distribution from such company and knew at the time of the distribution that the distribution was in violation of the Delaware Limited Liability Company Act shall be liable to the Company for the distribution for three years. Under the Delaware Limited Liability Company Act, a limited liability company may not make a distribution to a member if, after the distribution, all liabilities of the Company, other than liabilities to members on account of their Class A shares of a series and liabilities for which the recourse of creditors is limited to specific property of the company, would exceed the fair value of the assets of the Company. The fair value of property subject to liability for which recourse of creditors is limited shall be included in the assets of the Company only to the extent that the fair value of that property exceeds the nonrecourse liability. Under the Delaware Limited Liability Company Act, an assignee who becomes a substituted member of a company is liable for the obligations of his assignor to make contributions to the Company, except the assignee is not obligated for liabilities unknown to him at the time the assignee became a member and that could not be ascertained from the Masterworks Vault 16, LLC operating agreement.

***Exculpation and Indemnification of the Board of Managers and Others***

Subject to certain limitations, our operating agreement limits the liability of each member of the Board of Managers and its affiliates, any of our members, any person who is our officer and any person who serves at the request of the Board of Managers on behalf of us as an officer, member of the Board of Managers, managers of the Administrator, independent representative, partner, member, stockholder or employee of such person (referred to together as the "Protected Persons" or in the singular as the "Protected Person").

***Exculpation***

No Protected Person shall be liable to us or the Administrator or any other member of our Company for any action taken or omitted to be taken by it or by other person with respect to us, including any negligent act or failure to act, except in the case of a liability resulting from such Protected Person's own actual fraud, gross negligence, willful misconduct, bad faith, breach of fiduciary duty, reckless disregard of duty or any intentional and material breach of our operating agreement or conduct that is subject of a criminal proceeding (where such Protected Person has reasonable cause to believe that such conduct was unlawful). With the prior consent of the Board of Managers, any Protected Person may consult with legal counsel and accountants with respect to our affairs (including interpretations of our operating agreement) and shall be fully protected and justified in any action or inaction which is taken or omitted in good faith, in reliance upon and in accordance with the opinion or advice of such counsel or accountants. In determining whether a Protected Person acted with the requisite degree of care, such Protected Person shall be entitled to rely on written or oral reports, opinions, certificates and other statements of the members of the Board of Managers, officers, employees, consultants, attorneys, accountants and professional advisors of our Company selected with reasonable care; provided, that no such Protected Person may rely upon such statements if it believed that such statements were materially false.

***Indemnification***

To the fullest extent permitted by law, we will indemnify, hold harmless, protect and defend each Protected Person against any losses, claims, damages or liabilities, including reasonable legal fees, costs and expenses incurred in investigating or defending against any such losses, claims, damages or liabilities or in enforcing a Protected Person's right to indemnification under the Masterworks Vault 16, LLC operating agreement, and any amounts expended in respect of settlements of any claims approved by the Board of Managers (collectively referred to herein as the "Liabilities"), to which any Protected Person may become subject:

(i) by
 reason of any act or omission or alleged act or omission (even if negligent) arising out of or in connection with the activities
 of our Company;

(ii) by
 reason of the fact that it is or was acting in connection with the activities of our Company in any capacity or that it is or was
 serving at the request of our Company as a partner, shareholder, member, members of the Board of Managers, managers of the Company
 or the Administrator, the independent representative, officer, employee, or agent of any Person;

unless, such Liability results from such Protected Person's own actual fraud, gross negligence, willful misconduct, bad faith, breach of fiduciary duty, reckless disregard of duty or intentional and material breach of our operating agreement or conduct that is subject of a criminal proceeding (where such Protected Person has reasonable cause to believe that such conduct was unlawful).

Any indemnification provided under our operating agreement is limited thereunder to the extent of our assets only. Further, insofar as the foregoing provisions permit indemnification of members of the Board of Managers, officers or persons controlling us for liability arising under the Securities Act, we have been informed that, in the opinion of the SEC, this indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

***Reimbursement of Expenses***

We will reimburse (and/or advance to the extent reasonably required) each Protected Person for reasonable legal or other costs and expenses (as incurred) of such Protected Person in connection with investigating, preparing to defend or defending any claim, lawsuit or other proceeding relating to any Liabilities for which the Protected Person may be indemnified pursuant to our operating agreement and for all costs and expenses, including fees, expenses and disbursements of attorneys, reasonably incurred by such Protected Person in enforcing the indemnification provisions of our operating agreement; provided, that such Protected Person executes a written undertaking to repay us for such reimbursed or advanced costs and expenses if it is finally judicially determined that such Protected Person is not entitled to the indemnification provided by our operating agreement.

***Sale of the Artwork***

Following the Restructuring Transactions and the Offering, each series will own the Artwork for an indefinite period but may sell such Artwork of such series at any time. There is no guarantee that any such sale of the Artwork of a series will be successful, or if successful, that the net proceeds realized by shareholders of such series from such transaction will be reflective of the estimated fair market value of the shares of such series at such time. Masterworks may determine to sell the Artwork of a series, in which event, Masterworks affiliates would be entitled to reimbursement of out of pocket expenses and a reasonable sales commission in connection with such sale, provided that any such amounts shall not exceed the fees or commissions charged by unaffiliated third parties for similar services, as and to the extent described in the offering circular for the initial offering by the applicable Target Issuer.

***Amendment of Our Operating Agreement***

Amendments to our operating agreement may be proposed only by or with the consent of the Board of Managers and must be approved by a majority vote of holders of the voting shares of all of the series voting as a single class, unless such amendment affects one or series disproportionately and adversely in relation to other series, in which case, the consent of holders of voting shares of such series adversely and disproportionately affected voting as a separate class shall be required for such amendment. However, the Board of Managers does not need consent of holders of voting shares to amend the operating agreement in the following instances: (i) to evidence the joinder of a new member of the Company; (ii) in connection with the transfer of shares by members; (iii) as otherwise required to reflect capital contributions, distributions and similar actions (iv) to reflect the naming of new managers, officers or replacement of officers of the Company; (v) as required to cause the Company to be treated as an association or as a publicly traded partnership taxable as a corporation for U.S. federal (and applicable state and local) income tax purposes; (vi) to create a new series and or issue shares of such new series; (vii) any change necessary to give effect to a merger or business combination that does not, in the determination of the Board of Managers, disproportionately or adversely affect the holders of Class A shares of any series; or (viii) any change the Board of Managers deems necessary or appropriate to enable trading of membership interests.

***Termination and Dissolution***

We will continue as a series limited liability company until terminated under the Masterworks Vault 16, LLC operating agreement. We will commence winding up upon the first to occur of the following (the "Dissolution Event"):

(1) Upon the determination of the members with the approval of the Board of Managers;

(2) Our insolvency or bankruptcy;

(3) The sale of all or substantially all of our assets; or

(4) The entry of a decree of judicial dissolution under Section 18 802 of the Delaware Limited Liability Company Act.

The Dissolution Event shall be effective on the day on which such event occurs and immediately thereafter we will commence its winding up during which our affairs shall be wound up in accordance with the terms of our operating agreement.

***Books and Reports***

We are required to keep appropriate books of our business at our principal offices. The books will be maintained for both tax and financial reporting purposes on a basis that permits the preparation of financial statements in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). For financial reporting purposes and federal income tax purposes, our fiscal year and its tax year are the calendar year.

**Term and Removal of Members of the Board of Managers**

Our operating agreement provides that each member of our Board of Managers will serve as a Manager for an indefinite term, but that any Manager may be removed by a majority of the Board of Managers for any reason, or may choose to withdraw as a Manager, under certain circumstances.

Our operating agreement also provides that each member of the Board of Managers may be removed and or replaced and our Board can be reconstituted for any reason by the holder of the Class C share of a series. The Class C share of a series will be issued to a Masterworks affiliate. The Class C share of a series, once issued, can be transferred between Masterworks affiliated entities, including from one Masterworks affiliate to another, provided that at any point in time there shall only be not more than one holder of any Class C shares issued by series of the Company. The Class C share of a series, once issued, may be redeemed or cancelled by mutual agreement between the holder of the Class C share of a series and the Company.

In addition, our members may remove a member of the Board of Managers for "cause" only, following the affirmative vote of two-thirds (2/3) of the issued and outstanding voting shares of each series voting separately as a class and all the series then existing voting as a single class excluding those beneficially owned by Masterworks. The term "Cause" is defined as:

● The commission by the applicable member of the Board of Managers of fraud, gross negligence or willful misconduct;

● The conviction of the applicable member of the Board of Managers of a felony;

● A material violation by the applicable member of the Board of Managers of any applicable law that has a material adverse effect on our business; and

● The bankruptcy or insolvency of the applicable member of the Board of Managers.

**Anti-Takeover Effects under Delaware Law**

We are a series limited liability company organized under Delaware law. Some provisions of Delaware law may delay or prevent a transaction that would cause a change in our control. Section 203 of the Delaware General Corporation Law, which restricts certain business combinations with interested shareholders in certain situations, does not apply to limited liability companies unless they elect to utilize it. Our operating agreement does not currently elect to have Section 203 of the Delaware General Corporation Law apply to us. In general, this statute prohibits a publicly held Delaware corporation from engaging in a business combination with an interested shareholder for a period of three years after the date of the transaction by which that person became an interested shareholder, unless the business combination is approved in a prescribed manner. For purposes of Section 203, a business combination includes a merger, asset sale or other transaction resulting in a financial benefit to the interested shareholder, and an interested shareholder is a person who, together with affiliates and associates, owns, or within three years prior did own, 15% or more of voting Class A shares of the Company. The Board of Managers may elect to amend our operating agreement, subject to majority approval by the members holding the Class A shares of a series, at any time to have Section 203 apply to the Company.

**Valuation of Artworks**

Masterworks conducts a quarterly appraisal of the fair market value of each Artwork in accordance with Masterworks' valuation policies and procedures. For additional information, see "Description of Business - Art Appraisals." The estimated net asset value per Class A share of a series will be disclosed in a Current Report on Form 1-U.

**Binding Arbitration under Target Issuer Subscription Agreements**

Class A shareholders will continue to be bound by the arbitration provisions contained in the subscription agreements assigned to us in connection with the Restructuring Transactions and which provide that arbitration is the exclusive means for resolving disputes relating to or arising out of the Target Issuer subscription agreement, the shares, the Masterworks Platform, and/or the activities or relationships that involve, lead to, or result from any of the foregoing. Purchasers of shares in a secondary transaction are also subject to the same arbitration provisions. Such arbitration provision limits the ability of investors to bring class action lawsuits or similarly seek remedies on a class basis for claims subject to the provision. If invoked, the arbitration is required to be conducted in New York, NY in accordance with New York law. These provisions allow for either the Company or an investor to elect to enter into binding arbitration in the event of any covered claim in which the Company and the investor are adverse parties. While not mandatory, in the event that the Company were to invoke the arbitration clause, the rights of the adverse shareholder to seek redress in court would be severely limited. These restrictions on the ability to bring a class action lawsuit may result in increased costs and/or reduced remedies, to individual investors who wish to pursue claims against the Company.

**Waiver of Jury Trial under Target Issuer Agreements**

Pursuant to the Target Issuer Agreements, investors agreed to waive their rights to a jury trial in claims against the Company or Masterworks. However, this waiver of rights to a jury trial does not apply to claims made under the federal securities laws. Purchasers of shares in a secondary transaction are also required to waive rights to a jury trial, except in connection with claims under the federal securities laws.

**Exclusive Jurisdiction**

Target Issuer Agreements and our operating agreement provide that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, as amended, subject to and contingent upon a final adjudication in the State of Delaware of the enforceability of such exclusive forum provision. Target Issuer Agreements and our operating agreement provide that any complaint asserting a cause of action under the Securities Act is to be litigated in the federal district courts of the United States of America.

**Qualification Rights**

Masterworks will have the right to request that we qualify on Form 1-A, or a comparable form, the resale of any Class A shares of a series beneficially owned by Masterworks or any entity administered by Masterworks. There are no limitations or restrictions on the size or frequency of such qualification requests, other than pursuant to applicable law, provided that all costs associated with any such qualification shall be the responsibility of Masterworks. If Masterworks exercises its qualification rights and offers Class A shares of a series in a secondary offering pursuant to Regulation A, it may be more difficult to sell your Class A shares of such series and could adversely affect the price at which you can sell your Class A shares of such series on the ATS. The qualification rights are set forth in the Company's operating agreement.

**Transfer Agent**

The transfer agent and registrar for the Class A shares of each series is Equity Stock Transfer, LLC. The transfer agent's address is 237 West 37th Street, Suite 602, New York, New York 10018. The transfer agent's telephone number is 212-575-5757.

**SHARES ELIGIBLE FOR FUTURE SALE**

**Shares Eligible for Future Sale**

There is currently no public trading market for the Class A shares of any series, and an active market, whether public or private, for these Class A shares may not develop or be sustained. However, there is currently a limited trading market on an alternative trading system, or ATS, for the Class A shares of the Target Issuers, subject to certain limitations. Following the Offering, trading in the Target Issuer shares will cease and we expect that the Class A shares offered hereby will be available for trading on the ATS on the same basis and subject to the same limitations, although we anticipate that there may be a delay in trading for one or two trading days following the effective date of the Restructuring Transactions for administrative reasons. We cannot predict the effect, if any, that market sales of the Class A shares of a series or the availability of Class A shares of a series for sale will have on the market price of the Class A shares of a series prevailing from time to time.

Upon the closing of the Offering, the issued and outstanding share capital of each series will consist of (i) the Class A shares offered hereby, (ii) additional Class A shares (ordinary or preferred, as applicable) originally issued (or issuable upon conversion or exchange) to the Administrator in respect of Management Fee Shares for administrative and management services and (iii) 1,000 Class B shares representing a 20% profits interest that will be owned by Masterworks. Such Class B shares may be converted into Class A shares of the same series based on the relative fair market values of the Class B shares and Class A shares at such time. In addition, Masterworks has sold a portion of its Management Fee Shares and intends to sell Management Fee Shares in the future, subject to compliance with restrictions imposed under applicable Federal and State securities laws. All of the Class A shares of a series sold in the Offering will be freely tradable under federal securities laws unless issued to our "affiliates" as such term is defined in Rule 405 of the Securities Act of 1933, as amended. Class A shares of a series held by affiliates of Masterworks are "control" securities under U.S. federal securities laws and are subject to restrictions on transfer. If you hold more than 10% of the Class A shares of a series, you may be deemed an affiliate of the Company and may be unable to participate on the ATS or otherwise freely transfer your shares. The Company or its transfer agent may require you to provide a legal opinion and or other information to determine your affiliate status.

Any Management See Shares sold by Masterworks in private transactions that are exempt from the registration or qualification requirements of the Securities Act would be "restricted" securities within the meaning of Rule 144 under the Securities Act of 1933, as amended, and will bear a restrictive legend and will be subject to further transfer restrictions for one year from the time such shares are acquired from Masterworks by a non-affiliate. Masterworks has rights to require us to qualify the resale of any such Class A shares of a series, provided that they shall be responsible for all of the costs and expenses of any such qualification and or secondary offering.

Masterworks has agreed not to transfer any Class B shares of a series that it owns prior to the one-year anniversary of the final closing of the initial offering conducted by the applicable Target Issuer (other than transfers to affiliates), though Masterworks is permitted to pledge all of its Shares to unaffiliated third-party lenders and such lenders shall not be subject to the lock-up if they obtain ownership of the Shares in connection with a default by Masterworks on its indebtedness. After the one-year anniversary of the initial offering conducted by the applicable Target Issuer, in the case of Class B shares of a series, Masterworks will have no restrictions on the disposition of any of its Shares, other than restrictions in our operating agreement, management services agreement and those imposed by applicable securities laws.

**Rule 144**

In general, under Rule 144 as currently in effect, Masterworks will be entitled to sell, within any three-month period, a number of Class A shares of a series that does not exceed the greater of:

● 1% of the then-outstanding Class A shares of a series; and

● The average weekly trading volume during the four calendar weeks preceding the sale, subject to the filing of a Form 144 with respect to the sale.

Sales under Rule 144 by our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us. If Masterworks sells its shares in private transactions that are exempt from the registration requirements of the Securities Act to a non-affiliate other than pursuant to Rule 144, such non-affiliate will be able to sell such shares pursuant to Rule 144 after one year has elapsed from the time such shares were acquired from Masterworks and such sales shall not be subject to the volume restrictions set forth above.

We are unable to estimate the number of Class A shares of a series that will be sold under Rule 144 or pursuant to one or more future qualified offerings or the timing of such sales, since this will depend on the market price for the Class A shares of a series, the personal circumstances of the sellers and other factors. Any future sale of substantial amounts of the Class A shares of a series in the open market may adversely affect the market price of the Class A shares of such series offered by this offering circular.

**MATERIAL U.S. FEDERAL TAX CONSIDERATIONS**

The following is a discussion of material U.S. federal income tax considerations relating to the purchase, restructuring, ownership and disposition of the Class A shares of a series by Holders (as defined below) as of the date hereof. For purposes of this section, under the heading "Material U.S. Federal Tax Considerations," references to the "Company," "we," "our," and "us" refer only to Masterworks Vault 16, LLC and or each series, and not to Masterworks Cayman which is a Cayman Islands segregated portfolio company. In this discussion of material U.S. federal income tax considerations, the term "segregated portfolio" refers to the segregated portfolio of Masterworks Cayman that will hold title to the Artwork of a specific series. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "Code"), U.S. Treasury Regulations promulgated or proposed thereunder, and all administrative and judicial interpretations thereof, all as in effect on the date hereof and all of which are subject to change, possibly with retroactive effect, or to different interpretation.

The U.S. federal income taxation of partnerships and partners is extremely complex, involving, among other things, significant issues as to the character, timing of realization and sourcing of gains and losses. This discussion does not address all of the U.S. federal income tax considerations that may be relevant to specific Holders in light of their particular circumstances or to Holders subject to special treatment under U.S. federal income tax law (such as banks, insurance companies, dealers in securities or other Holders that generally mark their securities to market for U.S. federal income tax purposes, tax-exempt entities, retirement plans, regulated investment companies, real estate investment trusts, certain former citizens or residents of the United States or Holders that hold the Class A shares of a series as part of a straddle, hedge, conversion or other integrated transaction) or U.S. Holders that have a "functional currency" other than the U.S. dollar. This discussion does not address any U.S. state or local or non-U.S. tax considerations or any U.S. federal estate (except as discussed below for Non-U.S. Holders), gift or alternative minimum tax considerations. **Prospective investors are urged to consult their own tax advisors regarding the purchase, ownership and disposition of the Class A shares of a series with respect to their particular tax situations, including, in the case of prospective Holders subject to special treatment under U.S. federal income tax laws, with reference to any special issues that the purchase, ownership and disposition of the Class A shares of a series may raise for such persons.** The activities of a Holder unrelated to such Holder's status as a member of the Company may affect the tax consequences to such Holder of an investment in the Company.

The enactment of U.S. federal tax legislation in 2017 and the promulgation of final and proposed Treasury Regulations and other guidance thereunder has resulted in significant and complicated changes to the Code, and there remain significant uncertainties regarding the interpretation and application of these rules. As further discussed below, resolution of certain of these uncertainties could have implications for the tax treatment of the Company's structure and investments. All investors should consult with their advisors regarding the effect of these laws on their investment in the Company.

As used in this discussion, the term "U.S. Holder" means a beneficial owner of a Class A share of a series that, for U.S. federal income tax purposes, is (i) an individual who is a citizen or resident of the United States, (ii) a corporation created or organized under the laws of the United States, any state thereof or the District of Columbia, (iii) an estate, the income of which is subject to U.S. federal income tax regardless of its source, or (iv) a trust (x) with respect to which a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of its substantial decisions or (y) that has in effect a valid election under applicable U.S. Treasury Regulations to be treated as a U.S. person. As used in this discussion, the term "Non-U.S. Holder" means a beneficial owner of a Class A share of a series that is neither a U.S. Holder nor a partnership for U.S. federal income tax purposes, and the term "Holder" means a U.S. Holder or a Non-U.S. Holder.

If an entity treated as a partnership for U.S. federal income tax purposes invests in the Class A shares of a series, the U.S. federal income tax considerations relating to such investment will depend in part upon the status and activities of such entity and the particular partner. Any such entity should consult its own tax advisor regarding the U.S. federal income tax considerations applicable to it and its partners relating to the purchase, ownership and disposition of the Class A shares of a series.

PERSONS CONSIDERING AN INVESTMENT IN THE CLASS A SHARES OF A SERIES SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE U.S. FEDERAL, STATE AND LOCAL AND NON-U.S. INCOME, ESTATE AND OTHER TAX CONSIDERATIONS RELATING TO THE PURCHASE, OWNERSHIP AND DISPOSITION OF THE CLASS A SHARES OF A SERIES IN LIGHT OF THEIR PARTICULAR CIRCUMSTANCES.

**Taxation of the Restructuring Transactions**

Section 708 of the Code provides that for purposes of a continuation of a partnership, a partnership shall be considered as terminated only if no part of any business, financial operation, or venture of the partnership continues to be carried on by any of its partners in a partnership. The Company expects that each series remaining after the Restructuring Transactions be treated for federal income tax purposes as a continuation of the applicable Target Issuer and a continuation of each Holder's ownership in such Target Issuer.

The substitution of series shares for Target Issuer shares maintains each Holder's economic positions without creating a taxable event. The transactions adhere to relevant provisions of the Internal Revenue Code ("IRC") and Treasury Regulations as follows:

IRC §708 - Continuation of Partnership: The Offering and Restructuring Transactions do not terminate the partnership because business operations continue uninterrupted. Per Treasury Regulations §1.708-1, these transactions constitute a continuation of the partnership for tax purposes.

IRC §721 - Non-Recognition of Gain or Loss on Contributions: The contribution of assets (including SPC shares and the assignment of Target Issuer Agreements) from each Target Issuer to each series is tax-neutral, preserving investors' ownership rights and economic positions.

IRC §731 - Non-Recognition of Gain or Loss on Distributions: The distribution of series shares to Target Issuer shareholders is a tax-free event, as it does not exceed their adjusted basis in the partnership.

Treasury Regulations §1.708-1(c) and §1.708-1(d): The Restructuring Transactions aligns with regulations governing partnership mergers and divisions, ensuring a seamless transfer of assets and ownership without triggering taxable events.

The Restructuring Transactions also comply with each Target Issuer's operating agreement, maintaining proportional ownership and adhering to distribution provisions. There is no disguised sale under IRC §707, as all transactions preserve economic continuity for investors.

The Company expects the Restructuring Transactions to be disregarded for federal income tax purposes and expects the Class A shares of a series issued to each Holder as part of the Restructuring Transactions to carryover the Holder's tax basis and tax holding period of the Holder's Class A shares held immediately prior to the Restructuring Transactions.

The remainder of this discussion assumes the Restructuring Transactions are disregarded for federal income tax purposes.

**Taxation of Our Company**

***Taxation of Masterworks Vault 16, LLC and each series thereof.*** The U.S. Internal Revenue Service ("IRS") issued Proposed Series LLC Regulations in September 2010 (Reg-119921-09) to settle treatment of Series LLCs and their series for income tax purposes and concluded that each series of a Series LLC is to be treated as a separate entity for federal income tax purposes. We expect that the Company and each series will be regarded for income tax purposes as separate entities. At present, we do not expect to seek a ruling from the IRS with respect to our treatment as separate entities for U.S. federal income tax purposes and no assurance can be given on the finalization of the proposed regulations or that the IRS will not at a later point in time take a contrary position. We expect that we will be treated as partnerships for U.S. federal income tax purposes and not as associations or publicly traded partnerships subject to tax as a corporation. As a partnership, we generally will not be subject to U.S. federal income tax. Instead, each Holder that is subject to U.S. tax will be required to take into account its distributive share, whether or not distributed, of each item of our income, gain, loss, deduction or credit. See "—Taxation of U.S. Holders of Shares."

An entity that would otherwise be classified as a partnership for U.S. federal income tax purposes may nonetheless be taxable as a corporation if it is a "publicly traded partnership", unless an exception applies. An entity that would otherwise be classified as a partnership is a publicly traded partnership if (i) interests in the partnership are traded on an established securities market or (ii) interests in the partnership are readily tradable on an alternative trading system or the substantial equivalent thereof. We expect that we will be publicly traded for purposes of these rules.

A publicly traded partnership will, however, be treated as a partnership, and not as a corporation, for U.S. federal income tax purposes, if (x) 90% or more of such partnership's gross income during each taxable year consists of "qualifying income" and (y) such partnership is not required to register as an investment company under the Investment Company Act of 1940, as amended (the "1940 Act"). We refer to this exception as the "qualifying income exception." Qualifying income generally includes certain interest income, dividends, real property rents, gains from the sale or other disposition of real property, gains from the sale or other disposition of capital assets or other property held for the production of income that otherwise constitutes qualifying income and certain other forms of investment income.

We intend to operate such that we will meet the qualifying income exception in each taxable year. We do not expect that the Company or any series will earn any income in any taxable year other than qualifying income including (x) interest income with respect to certain short-term debt investments held by the Company and (y) an income inclusion followed by a distribution from a segregated portfolio of Masterworks Cayman in the year in which the Artwork of a series is sold. At present, we do not expect to seek a ruling from the IRS with respect to our treatment as a partnership for U.S. federal income tax purposes and no assurance can be given that the IRS will not take a contrary position. In the event that such a ruling is sought, and such ruling treats a sale of the Artwork of a series as qualifying income, we may structure each segregated portfolio as an entity disregarded from us for U.S. federal income tax purposes, in which case the tax consequences described herein could be materially different, as described below.

If we fail to meet the qualifying income exception (other than a failure that is determined by the IRS to be inadvertent and that is cured within a reasonable time after discovery) or if we are required to register under the 1940 Act, we will be treated as if, on the first day in which we fail to meet the qualifying income exception or are required to register under the 1940 Act, we had transferred all of our assets, subject to our liabilities, to a newly formed corporation in exchange for stock of such corporation, and then distributed the stock to the Holders in liquidation of their interests in us. This deemed contribution and liquidation should generally be tax-free to the Holders so long as we do not have liabilities in excess of the tax basis of our assets at such time. Thereafter, we would be treated as a corporation for U.S. federal income tax purposes.

If we were treated as a corporation in any taxable year, our items of income, gain, loss, deduction and credit would be reflected in our tax return, rather than the returns of our Holders subject to U.S. tax, and we would be subject to U.S. corporate income tax on our taxable income. Distributions of cash or other property to a Holder with respect to the Class A shares of a series generally would be treated as a dividend to the extent such distribution was paid from our current or accumulated earnings and profits (as determined under U.S. federal income tax principles), or in the absence of earnings and profits, as a tax-free return of capital to the extent of such Holder's adjusted tax basis in such Class A share of a series, and then as capital gain. Accordingly, treatment as a corporation could materially reduce a Holder's after-tax return and thus could result in a substantial reduction of the value of the Class A shares of a series.

The remainder of this discussion assumes that we will be treated as a partnership for U.S. federal income tax purposes.

***Taxation of Masterworks Cayman.*** Masterworks Cayman, which is a Cayman Islands segregated portfolio company, is referred to in this taxation section as "Masterworks Cayman," and the specific portfolio that will hold title to the Artwork of a series is referred to as a "segregated portfolio." Each segregated portfolio intends to be classified as an association taxable as a corporation and not as a partnership or disregarded entity for U.S. federal income tax purposes. Each series, as the holder of each respective segregated portfolio's shares, will not be taxed directly on the earnings of such segregated portfolio. We intend to treat each segregated portfolio as a separate non-U.S. corporation for U.S. federal income tax purposes, although this treatment is not free from doubt. The remainder of this discussion assumes that each segregated portfolio is so treated.

However, Holders may be required to report directly income earned by a segregated portfolio in certain circumstances. See "— Controlled Foreign Corporations" and "Passive Foreign Investment Companies".

Subject to the discussion below under "Controlled Foreign Corporations" and "Passive Foreign Investment Companies", distributions of cash or other property to us from a segregated portfolio (other than certain distributions of a segregated portfolio, shares or rights to acquire its shares) generally will be treated as a dividend for U.S. federal income tax purposes (without reduction for any non-U.S. tax withheld from such distribution) to the extent of a segregated portfolio, current or accumulated earnings and profits (as determined for U.S. federal income tax purposes). To the extent the amount of such distribution exceeds such current and accumulated earnings and profits, it generally will be treated first as a non-taxable return of capital to the extent of our adjusted tax basis in such segregated portfolio's shares and then as capital gain.

If, following receipt of a ruling from the IRS, we elected to treat a segregated portfolio as an entity disregarded as separate from us, we would directly report any income, gain, loss or deduction of such segregated portfolio, and any distributions from such segregated portfolio would be disregarded for U.S. federal income tax purposes.

**Taxation of U.S. Holders of Shares**

Below is a discussion of material U.S. federal income tax considerations applicable to U.S. Holders of the Class A shares of a series.

***Taxation of Holders of Shares on Our Profits and Losses.*** As a partnership for U.S. federal income tax purposes, we generally will not be subject to U.S. federal income tax. Instead, each Holder that is subject to U.S. tax will be required to take into account its distributive share, whether or not distributed, of each item of our income, gain, loss, deduction or credit. It is possible that in any year, a Holder's tax liability arising from the Company could exceed the distributions made by the Company to such Holder. The Company will file a U.S. federal partnership information return reporting its operations for each year and provide a U.S. Internal Revenue Service Schedule K-1 and Schedule K-3 to each Holder. However, Holders may not receive such Schedule prior to when their tax return reporting obligations become due and may need to file for extensions or file based on estimates.

In addition to regular U.S. federal income tax, certain U.S. Holders that are individuals, estates or trusts are subject to a 3.8% tax on all or a portion of their "net investment income," which may include all or a portion of any interest income we earn that is allocable to such U.S. Holder.

***Allocation of Profits and Losses.*** For each of our fiscal years, each Holder's allocable share of our items of income, gain, loss, deduction or credit will be determined by Masterwork Vault 16, LLC's second amended and restated operating agreement (the "operating agreement"), *provided* such allocations either have "substantial economic effect" or are determined to be in accordance with such Holder's interest in the Company. We believe that for U.S. federal income tax purposes, such allocations will be given effect as being in accordance with such Holder's interest in the Company and we intend to prepare tax returns based on such allocations. If the allocations provided by our operating agreement were successfully challenged by the IRS, the resulting allocations to a particular Holder for U.S. federal income tax purposes may be less favorable than the allocations set forth in our operating agreement.

Section 706 of the Code provides that items of partnership income and deductions must be allocated between transferors and transferees of shares. We will apply certain assumptions and conventions in an attempt to comply with applicable rules and to report income, gain, loss, deduction and credit to Holders in a manner that reflects such Holders' beneficial shares of our items. These conventions are designed to more closely align the receipt of cash and the allocation of income between Holders of Class A shares of a series, but these assumptions and conventions may not conform with all aspects of existing Treasury Regulations. If the IRS successfully challenges our conventions, our items of income, gain, loss, deduction or credit may be reallocated among the Holders of Class A shares of a series to the possible detriment of certain Holders. The Board of Managers is authorized to revise our method of allocation between transferors and transferees (as well as among Holders whose interests otherwise could vary during a taxable period).

***Adjusted Tax Basis of Class A shares of a series.*** A Holder's initial tax basis in its Class A shares of a series will generally equal the amount such Holder paid for the Class A shares of a series or the adjusted basis of the Holder's Class A Shares in the Target Issuer immediately prior to receiving shares of a series as part of the Restructuring Transactions plus such Holder's allocable share of our liabilities, if any. A Holder's adjusted tax basis will be increased by such Holder's share of items of our income and gain and any increase in such Holder's share of our liabilities. A Holder's adjusted tax basis will be decreased, but not below zero, by distributions from us, such Holder's allocable share of items of our deductions and losses and by any decrease in such Holder's allocable share of our liabilities.

Holders who purchase the Class A shares of a series in separate transactions must combine the basis of those Class A shares of a series and maintain a single adjusted tax basis for all of those Class A shares of a series. Upon a sale or other disposition of less than all of the Class A shares of a series held by such Holder, a portion of that tax basis must be allocated to the Class A shares of a series sold.

***Restrictions on Deductibility of Expenses and Other Losses***. A Holder may deduct its allocable share of our losses (if any) for U.S. federal income tax purposes only to the extent of such Holder's adjusted tax basis in the Class A shares of a series it is treated as holding at the end of the taxable year in which the losses occur. If the recognition of a Holder's allocable share of our losses would reduce its adjusted tax basis for its Class A shares of a series below zero, the recognition of such losses by such Holder would be deferred to subsequent taxable years and will be allowed if and when such Holder has sufficient tax basis so that such losses would not reduce such Holder's adjusted tax basis below zero. In addition, the "at-risk" rules and the limitation on "excess business losses" could limit the deductibility of losses allocable to a Holder. We do not expect to generate income or losses from "passive activities" for purposes of Section 469 of the Code. Therefore, income allocated by us to a Holder may not be offset by the Section 469 passive losses of such Holder and losses allocated to a Holder generally may not be used to offset Section 469 passive income of such Holder.

In general, neither we nor any Holder may deduct organizational expenses. We may elect to amortize any organizational expenses ratably over fifteen years, or we may elect to capitalize such expenses. No deduction is allowed for offering expenses, including placement fees.

***Treatment of Distributions.*** For U.S. federal income tax purposes, distributions of cash by us generally will not be taxable to a U.S. Holder to the extent of such U.S. Holder's adjusted tax basis in its Class A shares of a series. Any cash distributions in excess of a U.S. Holder's adjusted tax basis generally will be considered to be gain from the sale or exchange of the Class A shares of a series. Under current law, such gain generally will be capital gain and will be long-term capital gain if such U.S. Holder has held such Class A share of a series for more than one year at the time of such distribution, subject to certain exceptions.

***Disposition of Class Shares.*** A U.S. Holder generally will recognize gain or loss for U.S. federal income tax purposes upon the sale, exchange or other disposition of the Class A shares of a series in an amount equal to the difference, if any, between the amount realized on the sale, exchange or other disposition and such U.S. Holder's adjusted tax basis in such Class A share of a series. A U.S. Holder's adjusted tax basis will be adjusted for this purpose by its allocable share of our income or loss for the year of such sale or other disposition. Any gain or loss so recognized generally will be capital gain or loss and will be long-term capital gain or loss if such Holder has held such Class A share of a series for more than one year at the time of such sale, exchange or other disposition. Certain gain attributable to our investment in a segregated portfolio will generally be characterized as ordinary income rather than capital gain. See "—Controlled Foreign Corporations". Net long-term capital gain of certain non-corporate U.S. Holders generally is subject to preferential rates of tax. The deductibility of capital losses is subject to limitations.

Holders who purchase the Class A shares of a series at different times and intend to sell all or a portion of the Class A shares of a series within a year of their most recent purchase are urged to consult their tax advisors regarding the application of certain "split holding period" rules to them and the treatment of any gain or loss as long-term or short-term capital gain or loss. For example, a selling Holder may use the actual holding period of the portion of its transferred Class A shares of a series, *provided* such Class A shares of a series are divided into identifiable Class A shares of a series with ascertainable holding periods, the selling Holder can identify the portion of the Class A shares of a series transferred, and the selling Holder elects to use the identification method for all sales or exchanges of the Class A shares of a series.

Controlled Foreign Corporations. In general, a corporation organized outside the United States is treated as a controlled foreign corporation ("CFC") for U.S. federal income tax purposes in any taxable year in which more than 50% of (i) the total combined voting power of all classes of stock of such non-U.S. corporation entitled to vote or (ii) the total value of the stock of such non-U.S. corporation is owned (or is considered as owned) by "U.S. Shareholders" on any day during the taxable year of such non-U.S. corporation. A "U.S. Shareholder" with respect to a non-U.S. corporation is any U.S. person that owns (or is treated as owning) 10% or more of the total combined voting power of all classes of stock of the non-U.S. corporation entitled to vote or 10% or more of the total value of such non-U.S. corporation's stock. The Company and each of its series are expected to be treated as U.S. Shareholders of their respective segregated portfolios under current law. Accordingly, the remainder of this disclosure assumes that each segregated portfolio will be considered a CFC, and that each series will be considered a U.S. Shareholder of its subsidiary segregated portfolio.

U.S. Shareholders may have current inclusions of undistributed "Subpart F" income of each segregated portfolio or other income of any segregated portfolio that exceeds certain thresholds ("global intangible low-taxed income" or "GILTI"). Subpart F income generally includes passive income such as dividends, interest, net gain from the sale or disposition of securities and non-actively managed rents. The Subpart F income of a CFC is limited to the CFC's earnings and profits for the taxable year. GILTI consists of a U.S. Shareholder's pro rata share of a CFC's earnings, other than Subpart F income and certain other excluded types of income, that exceeds a 10% return on such U.S. Shareholder's pro rata share of the CFC's tangible assets that were used to generate such income. U.S. Shareholders that are U.S. corporations may take a 50% deduction against GILTI, and a 37.5% deduction after 2025. These inclusions are treated as ordinary income (whether or not such inclusions are attributable to net capital gains). Thus, a U.S. Shareholder may be required to report as ordinary income its allocable share of a segregated portfolio's Subpart F or GILTI income without corresponding receipts of cash and may not benefit from capital gain treatment with respect to the portion of the earnings (if any) attributable to net capital gains of a segregated portfolio. A U.S. Shareholder's tax basis in its Class A shares will be increased to reflect any required Subpart F or GILTI income inclusions. Such income generally will constitute income from sources within the United States for U.S. foreign tax credit purposes. Amounts included as such income would generally not be taxable again when actually distributed. It is not expected that any segregated portfolio will earn any income in any taxable year other than gain from the sale of Artwork in the year in which the Artwork is sold (other than the applicable segregated portfolio of Masterworks Cayman to the extent either earns any royalty or other income). Therefore, the Company does not expect that there will be any material Subpart F or GILTI income of any segregated portfolio to be reported by U.S. Shareholders prior to a sale of the Artwork. However, the Company expects that gain from the sale of the Artwork would be treated as Subpart F income.

Because the Company expects each series to be treated as a U.S. Shareholder in a CFC for certain purposes other than for determining current inclusions, regardless of whether a segregated portfolio has Subpart F or GILTI income, any gain allocated to a U.S. Holder resulting from a segregated portfolio's sale of Artwork, followed by the segregated portfolio's liquidation (whether or not such U.S. Holder is a U.S. Shareholder) will be treated as ordinary income to the extent of such U.S. Holder's allocable share of the current and/or accumulated earnings and profits of such segregated portfolio. In this regard, earnings should not include any amounts previously taxed to a U.S. Holder pursuant to the CFC rules, if any, or pursuant to rules governing the taxation of U.S. Shareholders of PFICs, further described below. Thus, if earnings on the sale of the Artwork that are attributable to Non-U.S. Shareholders are treated as first taxed under the PFIC rules, then such earnings may be treated as previously taxed under these rules.

If, following receipt of a ruling from the IRS, we elected to treat each segregated portfolio as an entity disregarded as separate from us, the CFC rules discussed above would not apply. Instead, we would directly report any income, gain, loss or deduction of the segregated portfolio, and any distributions from the segregated portfolio would be disregarded for U.S. federal income tax purposes.

Passive Foreign Investment Companies. In general, a corporation organized outside the United States is treated as a passive foreign investment company ("PFIC") for U.S. federal income tax purposes in any taxable year in which either (i) at least 75% of its gross income is "passive income" or (ii) on average at least 50% of the value of its assets is attributable to assets that produce passive income or are held for the production of passive income. Passive income for this purpose generally includes, among other things, dividends, interest, royalties, rents and gains from commodities transactions and from the sale or exchange of property that gives rise to passive income. In determining whether a non-U.S. corporation is a PFIC, a pro rata portion of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) generally is taken into account.

If a segregated portfolio is determined to be a PFIC, the PFIC rules are expected to apply to the U.S. Holders who are not otherwise a U.S. Shareholder of a CFC ("Non-10% U.S. Owner"), with respect to such segregated portfolios, based on proposed regulations issued by the IRS earlier this year. The PFIC rules are not expected to apply to U.S. Shareholders who are subject to current inclusions of Subpart F income with respect to any particular segregated portfolio.

Under the PFIC rules, if a segregated portfolio is a PFIC and a proper election (a "Pedigreed QEF Election") has not been made to include the segregated portfolio's income in the U.S. Holders' income currently, gain on a disposition by a series of shares in such segregated portfolio or gain on the disposition of Class A shares by a U.S. Holder at a time when such series owned, directly or indirectly, shares of such segregated portfolio, as well as certain other defined "excess distributions," would be treated as if the gain or excess distribution were ordinary income earned ratably over the shorter of the period during which the U.S. Holder held its Class A shares or the period during which the series, directly or indirectly, held shares in such segregated portfolio and would be subject to an interest charge. Under current law, each series would be the appropriate party to make Pedigreed QEF Elections in respect of the segregated portfolios, although the IRS has issued proposed regulations which, if finalized in their current form, would place this obligation on the U.S. Holders with respect to elections to be made following the date on which the regulations are finalized and take effect. Under the proposed regulations, Pedigreed QEF Elections made by a series under current law would remain in effect after the effective date of the final regulations.

Each series of the Company is expected to make a Pedigreed QEF Election on behalf of its Non-10% U.S. Owners in respect of its respective segregated portfolio to the extent that it is able to do so under applicable law. If a Pedigreed QEF Election is made with respect to a segregated portfolio, and if the PFIC rules take precedence over the CFC rules, Non-10% U.S. Owners would include the gain allocated to them from such segregated portfolio's disposition of Artwork as capital gain, which, if the segregated portfolio's holding period in such Artwork was more than one year, would be treated as long-term capital gains and, in the case of non-corporate Non-10% U.S. Owners, subject to the long-term capital gain rates applicable to collectibles.

If, following receipt of a ruling from the IRS, we elected to treat each segregated portfolio as an entity disregarded as separate from us, neither the CFC nor the PFIC rules would apply to each segregated portfolio.

Segregated portfolios as Disregarded Entities. If, following receipt of a ruling from the IRS, a series elected to treat a segregated portfolio as an entity disregarded as separate from such series, the CFC and PFIC rules discussed above would not apply. Instead, such series, as applicable, would directly report any income, gain, loss or deduction of such segregated portfolio, and its distributions from the segregated portfolio would be disregarded for U.S. federal income tax purposes. To the extent that a segregated portfolio were disregarded, the disposition by such segregated portfolio of Artwork with a holding period of more than one year would be treated as long-term capital gains to U.S. Holders, taxable to non-corporate U.S. Holders at the higher long-term capital gain rates applicable to collectibles.

**Taxation of Non-U.S. Holders of Class A shares of a series**

Below is a discussion of material U.S. federal income tax considerations applicable to Non-U.S. Holders of the Class A shares of a series and does not purport to address all of the U.S. federal income tax consequences that may be applicable to any particular Non-U.S. Holder. This discussion does not address the tax consequences of purchasing, holding or disposing of the Class A shares of a series to Non-U.S. Holders subject to special rules under U.S. federal income tax laws, such as non-U.S. governments and their controlled entities, non-U.S. pension plans, trusts, former U.S. citizens or residents and individual Non-U.S. Holders that have a "tax home" in the United States. The discussion assumes that a Non-U.S. Holder is not and will not be engaged in a trade or business within the United States, has and will have no U.S. source income apart from its investment in the Class A shares of a series, and, in the case of a Non-U.S. Holder that is an individual, has not been (and will not be) present in the United States for 183 days or more in any taxable year.

***Interest, Dividends, Etc***. A Non-U.S. Holder is subject to U.S. federal withholding tax at the rate of 30% (or at a lower rate if provided by an applicable tax treaty and the Non-U.S. Holder provides the documentation (generally, IRS Form W-8BEN or W-8BEN-E) required to claim benefits under such tax treaty to the applicable withholding agent) on its distributive share of any U.S. source interest (subject to certain exemptions), U.S. source dividends (including, in certain cases, dividend equivalent amounts) and certain other income received by us. We expect that distributions from a segregated portfolio of Masterworks Cayman will not be treated as U.S. source dividends for withholding purposes.

***Effectively Connected Income***. In general, a non-U.S. person that invests in an entity taxable as a partnership for U.S. federal income tax purposes that is (directly or through entities treated as disregarded from their owners or as partnerships for U.S. federal income tax purposes) "engaged in trade or business within the United States" is itself considered to be engaged in trade or business within the United States and is subject to U.S. federal income tax (including, possibly, in the case of a non-U.S. corporation, the "branch profits" tax), withholding and income tax return filing requirements with respect to its income effectively connected (or treated as effectively connected) with the U.S. trade or business ("ECI"). A non-U.S. person that fails to file a timely U.S. federal income tax return in respect of its ECI may subsequently be precluded from claiming deductions related to the ECI and may be subject to interest and penalties. We believe that our activities as currently contemplated generally will not involve being engaged in a trade or business within the United States, and as a result we expect that neither Masterworks Cayman nor any Non-U.S. Holder will be treated as deriving ECI as a result of our activities.

***U.S. Federal Estate Taxes for Non-U.S. Persons.*** Individual Non-U.S. Holders will be subject to U.S. federal estate tax on the value of U.S.-situs property owned at the time of their death. The Class A shares of a series that are owned or treated as owned by an individual Non-U.S. Holder at the time of such Non-U.S. Holder's death may be considered U.S.-situs property for U.S. federal estate tax purposes and may be subject to U.S. federal estate tax unless an applicable estate tax treaty provides otherwise. Prospective individual holders who are non-U.S. persons are urged to consult their tax advisors concerning the potential U.S. federal estate tax consequences with regard to the Class A shares of a series.

**Administrative Matters**

***Tax Elections.*** The Board of Managers will have the authority to act on our behalf with respect to tax audits and certain other tax matters and to make such elections under the Code and other relevant tax laws as the Board of Managers deems necessary or appropriate. Accordingly, our Board of Managers can change our tax election to have the Company and each series taxed as a corporation in its sole and absolute discretion.

***Nominee Reporting.*** Persons who hold the Class A shares of a series as nominees for another person are required to furnish to us (i) the name, address and taxpayer identification number of the beneficial owner and the nominee; (ii) whether the beneficial owner is (1) a person that is not a U.S. person, (2) a foreign government, an international organization or any wholly owned agency or instrumentality of either of the foregoing, or (3) a tax exempt entity; (iii) the amount and description of Class A shares of a series held, acquired or transferred for the beneficial owner; and (iv) specific information including the dates of acquisitions and transfers, means of acquisitions and transfers, and acquisition costs for purchases, as well as the amount of net proceeds from sales. Brokers and financial institutions are required to furnish additional information, including whether they are U.S. persons and specific information on Class A shares of a series they acquire, hold or transfer for their own account. A penalty is imposed by the Code for failure to report that information to us. The nominee is required to supply the beneficial owner of the Class A shares of a series with the information furnished to us.

***Taxable Year.*** We currently intend to use the calendar year as our taxable year for U.S. federal income tax purposes. Under certain circumstances which we currently believe are unlikely to apply, a taxable year other than the calendar year may be required for such purposes.

***Partnership Audit Rules***. We or the Holders may have potential tax liability in the event of an adjustment imposed as a result of a tax audit by the IRS. An audit resulting in an adjustment to any item of our income, gain, loss, deduction or credit (or adjustment of the allocation of any such items among the Holders), and any tax (including interest and penalties) attributable to such adjustment, may be determined and collected at the Company level in the year of such adjustment. In the event of any adjustment at the Company level, under the operating agreement, the Board of Managers will allocate such tax among the Holders as equitably determined by the Board of Managers, and each Holder may be required to contribute to the Company the amount of such tax allocated to it. As a result, a Holder may bear liability for the adjustment in an amount that exceeds the taxes that the Holder (or its predecessor in interest) would have paid if the adjustment had been applied at the Holder level. Alternatively, the Board of Managers may elect to send an adjusted Schedule K-1 to each person who was a Holder in the taxable year reviewed on audit (the "Push-Out Election"). In that event, each such person (whether a current or former Holder) may elect to pay any resulting tax (including interest and penalties) or, in the case of a person that is itself treated as a partnership or other flow-through vehicle for U.S. federal income tax purposes, such person may further push out the adjustment to the next tier of partners. Non-U.S. Holders may be required to file U.S. tax returns as a result of a Push-Out Election. There is some uncertainty regarding the interpretation and implementation of these partnership audit procedures.

***Treatment of Withholding Taxes.*** We will withhold and pay over any U.S. withholding taxes required to be withheld with respect to any Holder and will treat such withholding as a payment to such Holder. Such payment will be treated as a distribution to the extent that the Holder is then entitled to receive a cash distribution. To the extent that such payment exceeds the amount of any cash distribution to which such Holder is then entitled, such Holder shall be required to make prompt payment to us. Similar provisions would apply in the case of taxes withheld from a distribution to us.

***Information Reporting and Backup Withholding.*** If we are required to withhold any U.S. tax on distributions made to any Holder of Class A shares of a series, we will pay such withheld amount to the IRS. Amounts withheld generally will be reported annually to the IRS and to the Holders by the applicable withholding agent. Distributions made to a U.S. Holder may be subject to backup withholding, unless such U.S. Holder provides the appropriate documentation certifying that, among other things, its taxpayer identification number ("TIN") is correct, or otherwise establishes an exemption. Such U.S. Holder should use an IRS Form W-9 for this purpose. If such U.S. Holder does not provide its correct TIN and other required information or an adequate basis for exemption, payments made to such U.S. Holder will be subject to backup withholding (currently, at a rate of 24%) and such U.S. Holder may be subject to a penalty imposed by the IRS. Exempt U.S. Holders (including, among others, all corporations) are not subject to these information reporting and backup withholding requirements, provided that, if required, they properly demonstrate their eligibility for exemption. In order for a Non-U.S. Holder to avoid backup withholding, such Non-U.S. Holder should submit the appropriate version of IRS Form W-8, attesting to such Non-U.S. Holder's foreign status. The failure of such a Non-U.S. Holder to provide the appropriate IRS Form W-8 may result in backup withholding on some or all of the payments made to such Non-U.S. Holder. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules generally will be allowed as a refund or a credit against a Holder's U.S. federal income tax liability if the required information is furnished by such Holder on a timely basis to the IRS.

If you do not timely provide us with IRS Form W-8 or IRS Form W-9, as applicable, or such form is not properly completed, we may become subject to U.S. backup withholding taxes in excess of what would have been imposed had we received certifications from all Holders. Such excess U.S. backup withholding taxes may be treated by us as an expense that will be borne by all Holders on a pro rata basis (where we are or may be unable to cost efficiently allocate any such excess withholding tax cost specifically to the Holders that failed to timely provide the proper U.S. tax certifications).

The proper application to us of rules for withholding under Section 1441 of the Code (applicable to certain dividends, interest and similar items) is unclear. Because the documentation we receive may not properly reflect the identities of Holders at any particular time (in light of possible sales of Class A shares of a series), we may over-withhold or under-withhold with respect to a particular Holder. For example, we may impose withholding, remit that amount to the IRS and thus reduce the amount of a distribution paid to a Non-U.S. Holder. It may be determined, however, that the corresponding amount of our income was not properly allocable to such Non-U.S. Holder, and the withholding should have been less than the actual withholding. Such Non-U.S. Holder would be entitled to a credit against such Non-U.S. Holder's U.S. tax liability for all withholding, including any such excess withholding, but if the withholding exceeded the Non-U.S. Holder's U.S. tax liability, the Non-U.S. Holder would be required to apply for a refund to obtain the benefit of the excess withholding. Similarly, we may fail to withhold on a distribution, and it may be determined that the corresponding income was properly allocable to a Non-U.S. Holder and withholding should have been imposed. In that event, we may determine to pay the under-withheld amount to the IRS, and we may treat such under-withholding as an expense that will be borne by all partners on a pro rata basis (since we may be unable to allocate any such excess withholding tax cost to the relevant Non-U.S. Holder).

**Reportable Transactions**

If the U.S. federal tax rules relating to "reportable transactions" are applicable to us (or any of the transactions undertaken by us), Holders that are required to file U.S. federal income tax returns (and, in some cases, certain direct and indirect interest holders of certain Holders) would be required to disclose to the IRS information relating to the Company and our transactions, and to retain certain documents and other records related thereto. Although we do not believe that the purchase of the Class A shares of a series is a reportable transaction, there can be no assurance that the IRS will not take a contrary position. In addition, an interest in the Company could become a reportable transaction for Holders in the future, for example if we generate certain types of losses that exceed prescribed thresholds or if certain other events occur. It is also possible that a transaction undertaken by us will be a reportable transaction for Holders. Substantial penalties may be imposed on taxpayers who fail to comply with these laws.

In addition, other tax laws impose substantial excise taxes and additional reporting requirements and penalties on certain tax-exempt investors (and, in some cases, the managers of tax-exempt investors) that are, directly or in some cases indirectly, parties to certain types of reportable transactions.

**Certain Reporting Requirements**

Certain U.S. Holders of the Class A shares of a series who either (i) invest (together with any person treated as related under certain U.S. tax rules) more than $100,000 in the Company during a 12-month period or (ii) hold, directly, indirectly or through certain attribution rules under the Code, at least 10% of the total voting power or total value of the Company or of any series, may be required to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, reporting certain transfers of cash or other property to foreign corporations. U.S. Holders that fail to comply with these reporting requirements may be subject to substantial penalties.

**FATCA**

Under the Foreign Account Tax Compliance Act provisions of the Code and related U.S. Treasury guidance ("FATCA"), a withholding tax of 30% will be imposed in certain circumstances on (*i*) payments of certain U.S. source income (including interest and dividends) and gross proceeds from the sale or other disposition after December 31, 2018, of property that can produce U.S. source interest or dividends ("withholdable payments") and (*ii*) payments made after December 31, 2018 (or, if later, the date on which the final U.S. Treasury regulations that define "foreign passthru payments" are published) by certain foreign financial institutions (such as banks, brokers, investment funds or certain holding companies) ("FFIs") that are "attributable" to withholdable payments ("foreign passthru payments"). It is uncertain at present when payments will be treated as "attributable" to withholdable payments.

FATCA may also apply to certain non-U.S. entities held by or affiliated with us, including Masterworks Cayman.

Although the application of FATCA to a sale or other disposition of an interest in an entity treated as a partnership for U.S. federal income tax purposes is unclear, it is possible that the gross proceeds from the sale or other disposition of an interest in the Company may be subject to tax under FATCA.

Each Holder should consult its own tax advisor regarding the application of FATCA to an investment in the Company.

**Certain State, Local and Non-U.S. Tax Considerations**

The foregoing discussion does not address the U.S. state and local or non-U.S. tax consequences of the purchase, ownership and disposition of the Class A shares of a series. Holders may be subject to certain U.S. state and local and non-U.S. taxation, and tax return filing requirements, in the jurisdictions of our activities or investments. Holders may not receive the relevant tax information prior to when their tax return reporting obligations become due and may need to file for extensions. Prospective Holders are urged to consult their own tax advisors regarding U.S. state and local and non-U.S. tax matters.

**ADDITIONAL REQUIREMENTS AND RESTRICTIONS**

**State Securities – Blue Sky Laws**

There is currently no public trading market for the Class A shares of any series, and an active market for these Class A shares may not develop or be sustained. Transfer of the Class A shares of any series may also be restricted under the securities regulations laws promulgated by various states and foreign jurisdictions, commonly referred to as "Blue Sky" laws. Absent compliance with such individual state laws, the Class A shares of a series may not be traded in such jurisdictions. Secondary trades of Class A shares matched on the ATS are intended to comply with Blue Sky laws either through a manual exemption in states where available, through a direct filing with the state securities regulators where required, or as isolated non-issuer transactions.

**Restrictions Imposed by the USA PATRIOT Act and Related Acts**

In accordance with the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, or the USA PATRIOT Act, the securities offered hereby may not be offered, sold, transferred or delivered, directly or indirectly, to any "unacceptable investor," which means anyone who is:

● A "designated national," "specially designated national," "specially designated terrorist," "specially designated global terrorist," "foreign terrorist organization," or "blocked person" within the definitions set forth in the Foreign Assets Control Regulations of the United States, or U.S., Treasury Department;

● Acting on behalf of, or an entity owned or controlled by, any government against whom the U.S. maintains economic sanctions or embargoes under the Regulations of the U.S. Treasury Department;

● Within the scope of Executive Order 13224 — Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit, or Support Terrorism, effective September 24, 2001;

● A person or entity subject to additional restrictions imposed by any of the following statutes or regulations and executive orders issued thereunder: the Trading with the Enemy Act, the National Emergencies Act, the Antiterrorism and Effective Death Penalty Act of 1996, the International Emergency Economic Powers Act, the United Nations Participation Act, the International Security and Development Cooperation Act, the Nuclear Proliferation Prevention Act of 1994, the Foreign Narcotics Kingpin Designation Act, the Iran and Libya Sanctions Act of 1996, the Cuban Democracy Act, the Cuban Liberty and Democratic Solidarity Act and the Foreign Operations, Export Financing and Related Programs Appropriations Act or any other law of similar import as to any non-U.S. country, as each such act or law has been or may be amended, adjusted, modified or reviewed from time to time; or

● Designated or blocked, associated or involved in terrorism, or subject to restrictions under laws, regulations, or executive orders as may apply in the future similar to those set forth above.

**LEGAL MATTERS**

The validity of the securities offered by this offering circular will be passed upon for us by Joshua B. Goldstein, General Counsel of Masterworks, LLC, 1 World Trade Center, 57th Floor, New York, New York 10007.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed an offering statement on Form 1-A with the SEC under Regulation A of the Securities Act with respect to the Class A shares of each series offered by this offering circular. This offering circular, which constitutes a part of the offering statement, does not contain all of the information set forth in the offering statement or the exhibits and schedules filed therewith. Statements contained in this offering circular regarding the contents of any contract or any other document that is filed as an exhibit to the offering statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the offering statement. The offering statement, including its exhibits and schedules, may be inspected without charge at the public reference room maintained by the SEC, located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and copies of all or any part of the offering statement may be obtained from such offices upon the payment of the fees prescribed by the SEC. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC also maintains an Internet website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the site is <u>www.sec.gov.</u>

The Administrator will answer inquiries from potential investors in the Offering concerning any of the series, the Company, the Administrator and other matters relating to the offer and sale of the Class A shares under this offering circular. The Company will afford the potential investors in the Class A shares the opportunity to obtain any additional information to the extent the Company possesses such information or can acquire such information without unreasonable effort or expense that is necessary to verify the information in this offering circular.

Any statement contained herein or in any document incorporated by reference herein shall be deemed to be modified or superseded for purposes of the offering circular to the extent that a statement contained herein or in any other subsequently filed document that also is or is deemed to be incorporated by reference herein modifies or replaces such statement. Any such statement so modified or superseded shall not be deemed to constitute a part of the offering circular, except as so modified or superseded. To the extent a document incorporated by reference for a Target Issuer has been substantively modified, the date of such modification and a description of such modification will be included in the Form 1-U or Offering Circular Supplement, as applicable, as noted in the section entitled "Incorporation of Certain Information by Reference." For additional information on documents incorporated by reference herein, see "Incorporation of Certain Information by Reference."

Masterworks also maintains a website at the website address of Masterworks located at <u>www.masterworks.com</u>. You may access these materials at our website free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on the Masterworks website is not a part of this offering circular and the inclusion of our website address in this offering circular is an inactive textual reference only.

After the completion of this Tier II, Regulation A offering, we intend to become subject to the information and periodic reporting requirements of the Exchange Act. If we become subject to the reporting requirements of the Exchange Act, we will file periodic reports, proxy statements and other information with the SEC. Such periodic reports, proxy statements and other information will be available for inspection and copying at the public reference room and on the SEC's website referred to above. Until we become or never become subject to the reporting requirements of the Exchange Act, we will furnish the following reports, statements, and tax information to each holder of Class A shares of a series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Reporting Requirements under Tier II of Regulation A.** Following this Tier II, Regulation A offering, we will be required to comply with
 certain ongoing disclosure requirements under Rule 257 of Regulation A. We will be required to file: an annual report with the SEC
 on Form 1-K; a semi-annual report with the SEC on Form 1-SA; current reports with the SEC on Form 1-U; and a notice under cover of
 Form 1-Z. The necessity to file current reports will be triggered by certain corporate events, similar to the ongoing reporting obligation
 faced by issuers under the Exchange Act, however the requirement to file a Form 1-U is expected to be triggered by significantly
 fewer corporate events than that of the Form 8-K. Such reports and other information will be available for inspection and copying
 at the public reference room and on the SEC's website referred to above. Parts I & II of Form 1-Z will be filed by us if
 and when we decide to and are no longer obligated to file and provide annual reports pursuant to the requirements of Regulation A.

**2.** **Annual Reports.** As soon as practicable, but in no event later than one hundred twenty (120) days after the close of our fiscal year,
 ending on the last Sunday of a calendar year, the Administrator will cause to be mailed or made available, by any reasonable means,
 to each holder of Class A shares of a series as of a date selected by the Administrator, an annual report containing our financial
 statements for such fiscal year, presented in accordance with GAAP, including a balance sheet and statements of operations, company
 equity and cash flows, with such statements having been audited by an accountant selected by the Company. The Company shall be deemed
 to have made a report available to each holder of Class A shares of a series as required if it has either (i) filed such report with
 the SEC via its Electronic Data Gathering, Analysis and Retrieval, or EDGAR, system and such report is publicly available on such
 system or (ii) made such report available on any website maintained by us and our affiliate and available for viewing by holder of
 Class A shares of a series.

**3.** **Tax Information.** As soon as practicable following the end of our fiscal year, which is currently January 1st through December 31st,
 we will send to each holder of Class A shares of a series such tax information as shall be reasonably required for federal and state
 income tax reporting purposes.

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| [UNAUDITED HISTORICAL AND PRO FORMA FINANCIAL STATEMENTS](#F_001) | F-2 |

---

**UNAUDITED HISTORICAL AND PRO FORMA FINANCIAL STATEMENTS**

The following historical financial information for the Company and each Target Issuer includes the unaudited balance sheets as of December 31, 2025 and December 31, 2024, and the related statements of operations for the years ended December 31, 2025 and 2024.

The following unaudited pro forma financial information for the Company as a whole include the unaudited pro forma balance sheet and statement of operations presented on a combined and consolidated basis for the years ended December 31, 2025 and December 31, 2024, after giving effect to the Restructuring Transactions. We have also included the corresponding pro forma financial information of each series individually, which is the same as the historical financial information of each applicable Target Issuer prior to giving effect to the Restructuring Transactions.

The unaudited pro forma financial information herein should be read in conjunction with the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the audited and unaudited historical financial statements of each Target Issuer as referenced in the section "Incorporation by Reference".

The unaudited pro forma combined financial information is provided for informational purposes only and is not necessarily indicative of our financial position or results of operations that would have occurred if the Restructuring Transactions had been completed as of the dates set forth above, nor is it indicative of the future results or financial position of each series or the combined Company.

Since the Company has no material assets and has not conducted any operations and Masterworks will pay all costs and expenses in connection with the Offering and the Restructuring Transactions, no pro forma adjustments to the historical financial statements of the Target Issuers have been made to prepare the unaudited pro forma financial information other than reflecting the migration of all assets, equity and operations from the Target Issuers to the applicable series of the Company as contemplated by the Offering and the Restructuring Transactions. Accordingly, the unaudited pro forma financial information solely reflects the aggregation of information from the historical financial statements of all series of the Company after giving effect to the Restructuring Transactions and this Offering.

**Masterworks Vault 16, LLC**

**Historical Consolidated Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**-** |  |  |  |  |  |  |  |
| Total Current Assets | - |  |  |  |  |  |  |  |
| Artwork | - |  |  |  |  |  |  |  |
| **Total Assets** | $**-** |  |  |  |  |  |  |  |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| Total Members' Equity | $**-** |  |  |  |  |  |  |  |
| **Noncontrolling interests in consolidated subsidiary** | - |  |  |  |  |  |  |  |
| **Members' Equity** | **-** |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**-** |  |  |  |  |  |  |  |

---

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

 

**Masterworks Vault 16, LLC**

**Historical Consolidated Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**-** |  |  |  |  |  |  |  |
| Total Current Assets | - |  |  |  |  |  |  |  |
| Artwork | - |  |  |  |  |  |  |  |
| **Total Assets** | $**-** |  |  |  |  |  |  |  |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| Total Members' Equity | $**-** |  |  |  |  |  |  |  |
| **Noncontrolling interests in consolidated subsidiary** | - |  |  |  |  |  |  |  |
| **Members' Equity** | **-** |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**-** |  |  |  |  |  |  |  |

---

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

 

**Masterworks Vault 16, LLC**

**Historical Consolidated Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**-** |  |  |  |  |  |  |  |  |  |
| Total Current Assets | - |  |  |  |  |  |  |  |  |  |
| Artwork | - |  |  |  |  |  |  |  |  |  |
| **Total Assets** | $**-** |  |  |  |  |  |  |  |  |  |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |  |  |
| Total Members' Equity | $**-** |  |  |  |  |  |  |  |  |  |
| **Noncontrolling interests in consolidated subsidiary** | - |  |  |  |  |  |  |  |  |  |
| **Members' Equity** | **-** |  |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**-** |  |  |  |  |  |  |  |  |  |

---

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

 

**Masterworks Vault 16, LLC**

**Historical Consolidated Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**-** |  |  |  |  |  |  |  |
| Total Current Assets | - |  |  |  |  |  |  |  |
| Artwork | - |  |  |  |  |  |  |  |
| **Total Assets** | $**-** |  |  |  |  |  |  |  |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| Total Members' Equity | $**-** |  |  |  |  |  |  |  |
| **Noncontrolling interests in consolidated subsidiary** | **-** |  |  |  |  |  |  |  |
| **Members' Equity** | **-** |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**-** |  |  |  |  |  |  |  |

---

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

**Masterworks Vault 16, LLC**

**Historical Consolidated Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**-** |  |  |  |  |  |  |  |
| Total Current Assets | - |  |  |  |  |  |  |  |
| Artwork | - |  |  |  |  |  |  |  |
| **Total Assets** | $**-** |  |  |  |  |  |  |  |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| Total Members' Equity | $**-** |  |  |  |  |  |  |  |
| **Noncontrolling interests in consolidated subsidiary** | **-** |  |  |  |  |  |  |  |
| **Members' Equity** | **-** |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**-** |  |  |  |  |  |  |  |

---

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

**Masterworks Vault 16, LLC**

**Historical Consolidated Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**-** |  |  |  |  |  |  |  |  |  |
| Total Current Assets | - |  |  |  |  |  |  |  |  |  |
| Artwork | - |  |  |  |  |  |  |  |  |  |
| **Total Assets** | $**-** |  |  |  |  |  |  |  |  |  |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |  |  |
| Total Members' Equity | $**-** |  |  |  |  |  |  |  |  |  |
| **Noncontrolling interests in consolidated subsidiary** | **-** |  |  |  |  |  |  |  |  |  |
| **Members' Equity** | **-** |  |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**-** |  |  |  |  |  |  |  |  |  |

---

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

**Masterworks Vault 16, LLC**

**Historical Consolidated Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties |  |  |  |  |  |  |  |  |
| Gain on sale of artwork | - |  |  |  |  |  |  |  |
| Total Income | - |  |  |  |  |  |  |  |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $**-** |  |  |  |  |  |  |  |
| Total Expenses | - |  |  |  |  |  |  |  |
| **Net Income/(Loss)** | $**-** |  |  |  |  |  |  |  |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $**-** |  |  |  |  |  |  |  |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | - |  |  |  |  |  |  |  |

---

**Masterworks Vault 16, LLC**

**Historical Consolidated Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |  |  |  |  |
| Gain on sale of artwork | - |  |  |  |  |  |  |  |
| Total Income | - |  |  |  |  |  |  |  |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $**-** |  |  |  |  |  |  |  |
| Total Expenses | - |  |  |  |  |  |  |  |
| **Net Income/(Loss)** | $**-** |  |  |  |  |  |  |  |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $- |  |  |  |  |  |  |  |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | - |  |  |  |  |  |  |  |

---

**Masterworks Vault 16, LLC**

**Historical Consolidated Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| Income: |  |  |  |  |  |  |  |  |  |  |
| Royalties |  |  |  |  |  |  |  |  |  |  |
| Gain on sale of artwork | - |  |  |  |  |  |  |  |  |  |
| Total Income | - |  |  |  |  |  |  |  |  |  |
| Expenses: |  |  |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $**-** |  |  |  |  |  |  |  |  |  |
| Total Expenses | - |  |  |  |  |  |  |  |  |  |
| **Net Income/(Loss)** | $**-** |  |  |  |  |  |  |  |  |  |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $**-** |  |  |  |  |  |  |  |  |  |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | - |  |  |  |  |  |  |  |  |  |

---

**Masterworks Vault 16, LLC**

**Historical Consolidated Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |  |  |  |  |
| Gain on sale of artwork | - |  |  |  |  |  |  |  |
| Total Income | - |  |  |  |  |  |  |  |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $**-** |  |  |  |  |  |  |  |
| Total Expenses | - |  |  |  |  |  |  |  |
| **Net Income/(Loss)** | $**-** |  |  |  |  |  |  |  |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $- |  |  |  |  |  |  |  |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | - |  |  |  |  |  |  |  |

---

**Masterworks Vault 16, LLC**

**Historical Consolidated Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |  |  |  |  |  |  |  |
| Gain on sale of artwork | - |  |  |  |  |  |  |  |
| Total Income | - |  |  |  |  |  |  |  |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $**-** |  |  |  |  |  |  |  |
| Total Expenses | - |  |  |  |  |  |  |  |
| **Net Income/(Loss)** | $**-** |  |  |  |  |  |  |  |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $**-** |  |  |  |  |  |  |  |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | - |  |  |  |  |  |  |  |

---

**Masterworks Vault 16, LLC**

**Historical Consolidated Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| Income: |  |  |  |  |  |  |  |  |  |  |
| Royalties |  |  |  |  |  |  |  |  |  |  |
| Gain on sale of artwork | - |  |  |  |  |  |  |  |  |  |
| Total Income | - |  |  |  |  |  |  |  |  |  |
| Expenses: |  |  |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $**-** |  |  |  |  |  |  |  |  |  |
| Total Expenses | - |  |  |  |  |  |  |  |  |  |
| **Net Income/(Loss)** | $**-** |  |  |  |  |  |  |  |  |  |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $- |  |  |  |  |  |  |  |  |  |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | - |  |  |  |  |  |  |  |  |  |

---

**Target Issuer Financials**

**Historical Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 114 | Masterworks 116 | Masterworks 117 | Masterworks 118 | Masterworks 120 | Masterworks 121 | Masterworks 122 | Masterworks 123 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**140** | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Total Current Assets | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Artwork | 3250000 | 5275000 | 9400000 | 1550000 | 776271 | 7000000 | 10750000 | 1600000 |
| **Total Assets** | $**3250140** | **5275140** | **9400140** | **1550140** | **776411** | **7000140** | **10750140** | **1600140** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3250140** | **5275140** | **9400140** | **1550140** | **776411** | **7000140** | **10750140** | **1600140** |
| **Noncontrolling interests in consolidated subsidiary** | 28179 | 35554 | 143006 | 9055 | 3343 | 178055 | 70355 | 41982 |
| **Members' Equity** | **3221961** | **5239586** | **9257135** | **1541085** | **773068** | **6822086** | **10679785** | **1558158** |
| **Total Members' Equity** | $**3250140** | **5275140** | **9400140** | **1550140** | **776411** | **7000140** | **10750140** | **1600140** |

---

**Target Issuer Financials**

**Historical Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 125 | Masterworks 127 | Masterworks 128 | Masterworks 129 | Masterworks 130 | Masterworks 131 | Masterworks 132 | Masterworks 133 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**140** | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Total Current Assets | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Artwork | 3075000 | 2220000 | 3500000 | 2100000 | 4500000 | 2401100 | 630459 | 1811924 |
| **Total Assets** | $**3075140** | **2220140** | **3500140** | **2100140** | **4500140** | **2401240** | **630599** | **1812064** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3075140** | **2220140** | **3500140** | **2100140** | **4500140** | **2401240** | **630599** | **1812064** |
| **Noncontrolling interests in consolidated subsidiary** | 22555 | 18542 | 26107 | 20793 | 127108 | 15145 | 4593 | 14036 |
| **Members' Equity** | **3052585** | **2201598** | **3474033** | **2079347** | **4373032** | **2386095** | **626006** | **1798028** |
| **Total Members' Equity** | $**3075140** | **2220140** | **3500140** | **2100140** | **4500140** | **2401240** | **630599** | **1812064** |

---

**Target Issuer Financials**

**Historical Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 134 | Masterworks 135 | Masterworks 137 | Masterworks 138 | Masterworks 139 | Masterworks 140 | Masterworks 141 | Masterworks 143 | Masterworks 148 | Consolidated |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**140** | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 3500 |
| Total Current Assets | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 3500 |
| Artwork | 1572000 | 1044536 | 3500000 | 2511500 | 1815723 | 2850114 | 588000 | 1600000 | 850000 | 76171628 |
| **Total Assets** | $**1572140** | **1044676** | **3500140** | **2511640** | **1815863** | **2850254** | **588140** | **1600140** | **850140** | **76175128** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**1572140** | **1044676** | **3500140** | **2511640** | **1815863** | **2850254** | **588140** | **1600140** | **850140** | **76175128** |
| **Noncontrolling interests in consolidated subsidiary** | 44519 | 26244 | 108935 | 82960 | 38188 | 88557 | 17720 | 44900 | 20244 | 1230675 |
| **Members' Equity** | **1527621** | **1018432** | **3391206** | **2428680** | **1777675** | **2761697** | **570420** | **1555240** | **829896** | **74944452** |
| **Total Members' Equity** | $**1572140** | **1044676** | **3500140** | **2511640** | **1815863** | **2850254** | **588140** | **1600140** | **850140** | **76175128** |

---

**Target Issuer Financials**

**Historical Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 114 | Masterworks 116 | Masterworks 117 | Masterworks 118 | Masterworks 120 | Masterworks 121 | Masterworks 122 | Masterworks 123 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**130** | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Total Current Assets | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Artwork | 3250000 | 5275000 | 9400000 | 1550000 | 776271 | 7000000 | 10750000 | 1600000 |
| **Total Assets** | $**3250130** | **5275130** | **9400130** | **1550130** | **776401** | **7000130** | **10750130** | **1600130** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3250130** | **5275130** | **9400130** | **1550130** | **776401** | **7000130** | **10750130** | **1600130** |
| **Noncontrolling interests in consolidated subsidiary** | 52038 | 76215 | 154473 | 22037 | 10053 | 98575 | 163572 | 25679 |
| **Members' Equity** | **3198092** | **5198915** | **9245657** | **1528093** | **766348** | **6901555** | **10586558** | **1574451** |
| **Total Members' Equity** | $**3250130** | **5275130** | **9400130** | **1550130** | **776401** | **7000130** | **10750130** | **1600130** |

---

**Target Issuer Financials**

**Historical Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 125 | Masterworks 127 | Masterworks 128 | Masterworks 129 | Masterworks 130 | Masterworks 131 | Masterworks 132 | Masterworks 133 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**130** | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Total Current Assets | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Artwork | 3075000 | 2220000 | 3500000 | 2100000 | 4500000 | 2401100 | 630459 | 1811924 |
| **Total Assets** | $**3075130** | **2220130** | **3500130** | **2100130** | **4500130** | **2401230** | **630589** | **1812054** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3075130** | **2220130** | **3500130** | **2100130** | **4500130** | **2401230** | **630589** | **1812054** |
| **Noncontrolling interests in consolidated subsidiary** | 50600 | 35631 | 51981 | 39023 | 72476 | 34252 | 9180 | 31066 |
| **Members' Equity** | **3024530** | **2184499** | **3448149** | **2061107** | **4427654** | **2366978** | **621409** | **1780988** |
| **Total Members' Equity** | $**3075130** | **2220130** | **3500130** | **2100130** | **4500130** | **2401230** | **630589** | **1812054** |

---

**Target Issuer Financials**

**Historical Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 134 | Masterworks 135 | Masterworks 137 | Masterworks 138 | Masterworks 139 | Masterworks 140 | Masterworks 141 | Masterworks 143 | Masterworks 148 | Consolidated |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $**130** | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 3250 |
| Total Current Assets | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 3250 |
| Artwork | 1572000 | 1044536 | 3500000 | 2511500 | 1815723 | 2850114 | 588000 | 1600000 | 850000 | 76171628 |
| **Total Assets** | $**1572130** | **1044666** | **3500130** | **2511630** | **1815853** | **2850244** | **588130** | **1600130** | **850130** | **76174878** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**1572130** | **1044666** | **3500130** | **2511630** | **1815853** | **2850244** | **588130** | **1600130** | **850130** | **76174878** |
| **Noncontrolling interests in consolidated subsidiary** | 23810 | 16024 | 58464 | 43115 | 28957 | 46178 | 9392 | 22293 | 13574 | 1188658 |
| **Members' Equity** | **1548320** | **1028642** | **3441666** | **2468515** | **1786896** | **2804066** | **578738** | **1577837** | **836556** | **74986220** |
| **Total Members' Equity** | $**1572130** | **1044666** | **3500130** | **2511630** | **1815853** | **2850244** | **588130** | **1600130** | **850130** | **76174878** |

---

**Target Issuer Financials**

**Historical Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 114 | Masterworks 116 | Masterworks 117 | Masterworks 118 | Masterworks 120 | Masterworks 121 | Masterworks 122 | Masterworks 123 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $55434 | 71370 | 143006 | 17802 | 6900 | 89100 | 141221 | 24602 |
| Total Expenses | 55434 | 71370 | 143006 | 17802 | 6900 | 89100 | 141221 | 24602 |
| **Net Income/(Loss)** | $**(55424)** | **(71360)** | **(142996)** | **(17792)** | **(6890)** | **(89090)** | **(141211)** | **(24592)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.30) | (0.24) | (0.27) | (0.20) | (0.16) | (0.23) | (0.23) | (0.27) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 185111 | 298911 | 532843 | 87734 | 44033 | 394832 | 611497 | 90469 |

---

**Target Issuer Financials**

**Historical Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 125 | Masterworks 127 | Masterworks 128 | Masterworks 129 | Masterworks 130 | Masterworks 131 | Masterworks 132 | Masterworks 133 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $46403 | 36854 | 49013 | 41717 | 64075 | 30774 | 9125 | 28548 |
| Total Expenses | 46403 | 36854 | 49013 | 41717 | 64075 | 30774 | 9125 | 28548 |
| **Net Income/(Loss)** | $**(46393)** | **(36844)** | **(49003)** | **(41707)** | **(64065)** | **(30764)** | **(9115)** | **(28538)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.27) | (0.29) | (0.25) | (0.35) | (0.25) | (0.23) | (0.25) | (0.28) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 174552 | 126016 | 198182 | 119205 | 254138 | 136021 | 35783 | 102830 |

---

**Target Issuer Financials**

**Historical Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 134 | Masterworks 135 | Masterworks 137 | Masterworks 138 | Masterworks 139 | Masterworks 140 | Masterworks 141 | Masterworks 143 | Masterworks 148 | Consolidated |
| Income: |  |  |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Expenses: |  |  |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $23296 | 13012 | 55677 | 43330 | 25225 | 42975 | 9243 | 24557 | 14120 | 1107378 |
| Total Expenses | 23296 | 13012 | 55677 | 43330 | 25225 | 42975 | 9243 | 24557 | 14120 | 1107378 |
| **Net Income/(Loss)** | $**(23286)** | **(13002)** | **(55667)** | **(43320)** | **(25215)** | **(42965)** | **(9233)** | **(24547)** | **(14110)** | **(1107128)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.26) | (0.22) | (0.28) | (0.30) | (0.25) | (0.27) | (0.28) | (0.27) | (0.29) | - |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 88889 | 59170 | 198279 | 142330 | 102724 | 160780 | 33307 | 90591 | 48059 | 4316286 |

---

**Target Issuer Financials**

**Historical Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 114 | Masterworks 116 | Masterworks 117 | Masterworks 118 | Masterworks 120 | Masterworks 121 | Masterworks 122 | Masterworks 123 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Gain on sale of artwork | **-** | - | - | - | - | - | - | - |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $52037 | 76215 | 154473 | 22037 | 10053 | 98575 | 163572 | 25679 |
| Total Expenses | 52037 | 76215 | 154473 | 22037 | 10053 | 98575 | 163572 | 25679 |
| **Net Income/(Loss)** | $**(52027)** | **(76205)** | **(154463)** | **(22027)** | **(10043)** | **(98565)** | **(163562)** | **(25669)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.28) | (0.26) | (0.29) | (0.25) | (0.23) | (0.25) | (0.27) | (0.28) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 184876 | 298532 | 532168 | 87623 | 43977 | 394332 | 610722 | 90354 |

---

**Target Issuer Financials**

**Historical Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 125 | Masterworks 127 | Masterworks 128 | Masterworks 129 | Masterworks 130 | Masterworks 131 | Masterworks 132 | Masterworks 133 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Gain on sale of artwork | - | - | - | - | - | - | - | - |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $50600 | 35631 | 51981 | 39023 | 72476 | 34252 | 9180 | 31066 |
| Total Expenses | 50600 | 35631 | 51981 | 39023 | 72476 | 34252 | 9180 | 31066 |
| **Net Income/(Loss)** | $**(50590)** | **(35621)** | **(51971)** | **(39013)** | **(72466)** | **(34242)** | **(9170)** | **(31056)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.29) | (0.28) | (0.26) | (0.33) | (0.29) | (0.25) | (0.26) | (0.30) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 174331 | 125856 | 197931 | 119054 | 253816 | 135849 | 35738 | 102700 |

---

**Target Issuer Financials**

**Historical Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Masterworks 134 | Masterworks 135 | Masterworks 137 | Masterworks 138 | Masterworks 139 | Masterworks 140 | Masterworks 141 | Masterworks 143 | Masterworks 148 | Consolidated |
| Income: |  |  |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Gain on sale of artwork | - | - | - | - | - | - | - | - | - | - |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Expenses: |  |  |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $23810 | 16024 | 58464 | 43115 | 28957 | 46178 | 9392 | 22293 | 13574 | 1188657 |
| Total Expenses | 23810 | 16024 | 58464 | 43115 | 28957 | 46178 | 9392 | 22293 | 13574 | 1188657 |
| **Net Income/(Loss)** | $**(23800)** | **(16014)** | **(58454)** | **(43105)** | **(28947)** | **(46168)** | **(9382)** | **(22283)** | **(13564)** | **(1188407)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.27) | (0.27) | (0.30) | (0.30) | (0.28) | (0.29) | (0.28) | (0.25) | (0.28) | - |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 88776 | 59095 | 198028 | 142150 | 102594 | 160576 | 33265 | 90476 | 47998 | 4310817 |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Total Current Assets | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Artwork | 3250000 | 5275000 | 9400000 | 1550000 | 776271 | 7000000 | 10750000 | 1600000 |
| **Total Assets** | $**3250140** | **5275140** | **9400140** | **1550140** | **776411** | **7000140** | **10750140** | **1600140** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3250140** | **5275140** | **9400140** | **1550140** | **776411** | **7000140** | **10750140** | **1600140** |
| **Noncontrolling interests in consolidated subsidiary** | 28179 | 35554 | 143006 | 9055 | 3343 | 178055 | 70355 | 41982 |
| **Members' Equity** | **3221961** | **5239586** | **9257135** | **1541085** | **773068** | **6822086** | **10679785** | **1558158** |
| **Total Members' Equity** | $**3250140** | **5275140** | **9400140** | **1550140** | **776411** | **7000140** | **10750140** | **1600140** |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Total Current Assets | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 |
| Artwork | 3075000 | 2220000 | 3500000 | 2100000 | 4500000 | 2401100 | 630459 | 1811924 |
| **Total Assets** | $**3075140** | **2220140** | **3500140** | **2100140** | **4500140** | **2401240** | **630599** | **1812064** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3075140** | **2220140** | **3500140** | **2100140** | **4500140** | **2401240** | **630599** | **1812064** |
| **Noncontrolling interests in consolidated subsidiary** | 22555 | 18542 | 26107 | 20793 | 127108 | 15145 | 4593 | 14036 |
| **Members' Equity** | **3052585** | **2201598** | **3474033** | **2079347** | **4373032** | **2386095** | **626006** | **1798028** |
| **Total Members' Equity** | $**3075140** | **2220140** | **3500140** | **2100140** | **4500140** | **2401240** | **630599** | **1812064** |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Balance Sheet**

**As of December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 3500 |
| Total Current Assets | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 140 | 3500 |
| Artwork | 1572000 | 1044536 | 3500000 | 2511500 | 1815723 | 2850114 | 588000 | 1600000 | 850000 | 76171628 |
| **Total Assets** | $**1572140** | **1044676** | **3500140** | **2511640** | **1815863** | **2850254** | **588140** | **1600140** | **850140** | **76175128** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**1572140** | **1044676** | **3500140** | **2511640** | **1815863** | **2850254** | **588140** | **1600140** | **850140** | **76175128** |
| **Noncontrolling interests in consolidated subsidiary** | 44519 | 26244 | 108935 | 82960 | 38188 | 88557 | 17720 | 44900 | 20244 | 1230675 |
| **Members' Equity** | **1527621** | **1018432** | **3391206** | **2428680** | **1777675** | **2761697** | **570420** | **1555240** | **829896** | **74944452** |
| **Total Members' Equity** | $**1572140** | **1044676** | **3500140** | **2511640** | **1815863** | **2850254** | **588140** | **1600140** | **850140** | **76175128** |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Total Current Assets | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Artwork | 3250000 | 5275000 | 9400000 | 1550000 | 776271 | 7000000 | 10750000 | 1600000 |
| **Total Assets** | $**3250130** | **5275130** | **9400130** | **1550130** | **776401** | **7000130** | **10750130** | **1600130** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3250130** | **5275130** | **9400130** | **1550130** | **776401** | **7000130** | **10750130** | **1600130** |
| **Noncontrolling interests in consolidated subsidiary** | 52038 | 76215 | 154473 | 22037 | 10053 | 98575 | 163572 | 25679 |
| **Members' Equity** | **3198092** | **5198915** | **9245657** | **1528093** | **766348** | **6901555** | **10586558** | **1574451** |
| **Total Members' Equity** | $**3250130** | **5275130** | **9400130** | **1550130** | **776401** | **7000130** | **10750130** | **1600130** |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Total Current Assets | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 |
| Artwork | 3075000 | 2220000 | 3500000 | 2100000 | 4500000 | 2401100 | 630459 | 1811924 |
| **Total Assets** | $**3075130** | **2220130** | **3500130** | **2100130** | **4500130** | **2401230** | **630589** | **1812054** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**3075130** | **2220130** | **3500130** | **2100130** | **4500130** | **2401230** | **630589** | **1812054** |
| **Noncontrolling interests in consolidated subsidiary** | 50600 | 35631 | 51981 | 39023 | 72476 | 34252 | 9180 | 31066 |
| **Members' Equity** | **3024530** | **2184499** | **3448149** | **2061107** | **4427654** | **2366978** | **621409** | **1780988** |
| **Total Members' Equity** | $**3075130** | **2220130** | **3500130** | **2100130** | **4500130** | **2401230** | **630589** | **1812054** |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Balance Sheet**

**As of December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| <u>ASSETS</u> |  |  |  |  |  |  |  |  |  |  |
| Current Assets: |  |  |  |  |  |  |  |  |  |  |
| Cash and Cash Equivalents | $130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 3250 |
| Total Current Assets | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 130 | 3250 |
| Artwork | 1572000 | 1044536 | 3500000 | 2511500 | 1815723 | 2850114 | 588000 | 1600000 | 850000 | 76171628 |
| **Total Assets** | $**1572130** | **1044666** | **3500130** | **2511630** | **1815853** | **2850244** | **588130** | **1600130** | **850130** | **76174878** |
| <u>MEMBERS' EQUITY</u> |  |  |  |  |  |  |  |  |  |  |
| Members' Equity: |  |  |  |  |  |  |  |  |  |  |
| **Total Members' Equity** | $**1572130** | **1044666** | **3500130** | **2511630** | **1815853** | **2850244** | **588130** | **1600130** | **850130** | **76174878** |
| **Noncontrolling interests in consolidated subsidiary** | 23810 | 16024 | 58464 | 43115 | 28957 | 46178 | 9392 | 22293 | 13574 | 1188658 |
| **Members' Equity** | **1548320** | **1028642** | **3441666** | **2468515** | **1786896** | **2804066** | **578738** | **1577837** | **836556** | **74986220** |
| **Total Members' Equity** | $**1572130** | **1044666** | **3500130** | **2511630** | **1815853** | **2850244** | **588130** | **1600130** | **850130** | **76174878** |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $55434 | 71370 | 143006 | 17802 | 6900 | 89100 | 141221 | 24602 |
| Total Expenses | 55434 | 71370 | 143006 | 17802 | 6900 | 89100 | 141221 | 24602 |
| **Net Income/(Loss)** | $**(55424)** | **(71360)** | **(142996)** | **(17792)** | **(6890)** | **(89090)** | **(141211)** | **(24592)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.30) | (0.24) | (0.27) | (0.20) | (0.16) | (0.23) | (0.23) | (0.27) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 185111 | 298911 | 532843 | 87734 | 44033 | 394832 | 611497 | 90469 |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $46403 | 36854 | 49013 | 41717 | 64075 | 30774 | 9125 | 28548 |
| Total Expenses | 46403 | 36854 | 49013 | 41717 | 64075 | 30774 | 9125 | 28548 |
| **Net Income/(Loss)** | $**(46393)** | **(36844)** | **(49003)** | **(41707)** | **(64065)** | **(30764)** | **(9115)** | **(28538)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.27) | (0.29) | (0.25) | (0.35) | (0.25) | (0.23) | (0.25) | (0.28) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 174552 | 126016 | 198182 | 119205 | 254138 | 136021 | 35783 | 102830 |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Statement of Operations**

**For the period from January 1, 2025 through December 31, 2025**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| Income: |  |  |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Expenses: |  |  |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $23296 | 13012 | 55677 | 43330 | 25225 | 42975 | 9243 | 24557 | 14120 | 1107378 |
| Total Expenses | 23296 | 13012 | 55677 | 43330 | 25225 | 42975 | 9243 | 24557 | 14120 | 1107378 |
| **Net Income/(Loss)** | $**(23286)** | **(13002)** | **(55667)** | **(43320)** | **(25215)** | **(42965)** | **(9233)** | **(24547)** | **(14110)** | **(1107128)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.26) | (0.22) | (0.28) | (0.30) | (0.25) | (0.27) | (0.28) | (0.27) | (0.29) | - |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 88889 | 59170 | 198279 | 142330 | 102724 | 160780 | 33307 | 90591 | 48059 | 4316286 |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 114 | Series 116 | Series 117 | Series 118 | Series 120 | Series 121 | Series 122 | Series 123 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Gain on sale of artwork | - | - | - | - | - | - | - | - |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $52037 | 76215 | 154473 | 22037 | 10053 | 98575 | 163572 | 25679 |
| Total Expenses | 52037 | 76215 | 154473 | 22037 | 10053 | 98575 | 163572 | 25679 |
| **Net Income/(Loss)** | $**(52027)** | **(76205)** | **(154463)** | **(22027)** | **(10043)** | **(98565)** | **(163562)** | **(25669)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.28) | (0.26) | (0.29) | (0.25) | (0.23) | (0.25) | (0.27) | (0.28) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 184876 | 298532 | 532168 | 87623 | 43977 | 394332 | 610722 | 90354 |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 125 | Series 127 | Series 128 | Series 129 | Series 130 | Series 131 | Series 132 | Series 133 |
| Income: |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Gain on sale of artwork | - | - | - | - | - | - | - | - |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
| Expenses: |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $50600 | 35631 | 51981 | 39023 | 72476 | 34252 | 9180 | 31066 |
| Total Expenses | 50600 | 35631 | 51981 | 39023 | 72476 | 34252 | 9180 | 31066 |
| **Net Income/(Loss)** | $**(50590)** | **(35621)** | **(51971)** | **(39013)** | **(72466)** | **(34242)** | **(9170)** | **(31056)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.29) | (0.28) | (0.26) | (0.33) | (0.29) | (0.25) | (0.26) | (0.30) |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 174331 | 125856 | 197931 | 119054 | 253816 | 135849 | 35738 | 102700 |

---

**Masterworks Vault 16, LLC**

**Pro Forma Consolidated Statement of Operations**

**For the period from January 1, 2024 through December 31, 2024**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series 134 | Series 135 | Series 137 | Series 138 | Series 139 | Series 140 | Series 141 | Series 143 | Series 148 | Consolidated |
| Income: |  |  |  |  |  |  |  |  |  |  |
| Royalties | $10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Gain on sale of artwork | - | - | - | - | - | - | - | - | - | - |
| Total Income | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 250 |
| Expenses: |  |  |  |  |  |  |  |  |  |  |
| Share-based compensation - administrative services fees | $23810 | 16024 | 58464 | 43115 | 28957 | 46178 | 9392 | 22293 | 13574 | 1188657 |
| Total Expenses | 23810 | 16024 | 58464 | 43115 | 28957 | 46178 | 9392 | 22293 | 13574 | 1188657 |
| **Net Income/(Loss)** | $**(23800)** | **(16014)** | **(58454)** | **(43105)** | **(28947)** | **(46168)** | **(9382)** | **(22283)** | **(13564)** | **(1188407)** |
| Net Income/(Loss) per Class A ordinary Share, Basic and Diluted | $(0.27) | (0.27) | (0.30) | (0.30) | (0.28) | (0.29) | (0.28) | (0.25) | (0.28) | - |
| Weighted Average Number of Class A ordinary Shares Outstanding, Basic and Diluted | 88776 | 59095 | 198028 | 142150 | 102594 | 160576 | 33265 | 90476 | 47998 | 4310817 |

---

**PART III – EXHIBITS**

**Index to Exhibits**

---

| | |
|:---|:---|
| Exhibit |  |
| No. | Exhibit Description |
| 2.1 | [Certificate of Formation of Masterworks Vault 16, LLC filed with Delaware Secretary of State on November 18, 2024.\*](ex2-1.htm) |
| 2.2 | [Form of Certificate of Conversion of Masterworks Vault 16, LLC filed with Delaware Secretary of State\*](ex2-2.htm) |
| 2.3 | [Form of Certificate of Conversion of Masterworks Vault 16, LLC filed with Texas Secretary of State\*](ex2-3.htm) |
| 2.4 | [Form of Plan of Conversion (included in Exhibit 2.3).\*](ex2-3.htm) |
| 2.5 | [Form of Certificate of Formation of Masterworks Vault 16, LLC filed with Texas Secretary of State\*](ex2-5.htm) |
| 2.6 | [Form of Certificate of Conversion of Masterworks Vault 16, LLC filed with Texas Secretary of State\*](ex2-6.htm) |
| 2.7 | [Form of Certificate of Conversion of Masterworks Vault 16, LLC filed with Delaware Secretary of State\*](ex2-7.htm) |
| 2.8 | [Form of Certificate of Formation of Masterworks Vault 16, LLC filed with Delaware Secretary of State\*](ex2-8.htm) |
| 2.9 | [Form of Amended and Restated Operating Agreement of Masterworks Vault 16, LLC.\*](ex2-9.htm) |
| 3.1 | [Form of Series Designation (included in Exhibit 2.9).\*](ex2-9.htm) |
| 4.1 | [Form of Subscription Agreement\*](ex4-1.htm) |
| 6.1 | [Amended and Restated Memorandum and Articles of Association of Masterworks Cayman, SPC.\*](ex6-1.htm) |
| 6.2 | [Form of Designation of SPC Ordinary Shares and SPC Preferred Shares.\*](ex6-2.htm) |
| 6.3 | [Form of Assignment and Assumption Agreement\*](ex6-3.htm) |
| 6.4 | [Form of Agreement and Plan of Merger\*](ex6-4.htm) |
| 10.1 | [Power of Attorney (included on signature page).\*](#n_001) |
| 11.1 | Consent of AGD Legal, S. C.\*\* |
| 11.2 | [Consent of Joshua B. Goldstein, Esq., General Counsel of Masterworks, LLC (included in Exhibit 12.1).\*](ex12-1.htm) |
| 12.1 | [Opinion of Joshua B. Goldstein, Esq., General Counsel of Masterworks, LLC.\*](ex12-1.htm) |

---

\* Filed herewith <br>\*\* To be filed by amendment, as applicable

**SIGNATURES**

Pursuant to the requirements of Regulation A, the registrant has duly caused this Form 1-A to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on April 23, 2026.

---

| | |
|:---|:---|
| MASTERWORKS VAULT 16, LLC | MASTERWORKS VAULT 16, LLC |
| By: | */s/ Joshua B. Goldstein* |
|  | Joshua B. Goldstein |
|  | General Counsel and Secretary |

---

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Joshua B. Goldstein as his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including all pre-qualification and post-qualification amendments) to this Form 1-A offering statement and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that each of said attorney-in-fact and agent or his substitutes or substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of Regulation A, this Form 1-A has been signed by the following persons in the capacities indicated on April 23, 2026.

---

| | |
|:---|:---|
| **Name** | **Title** |
| */s/ Nigel S. Glenday* | Chief Executive Officer of Masterworks Vault 16, LLC |
| Nigel S. Glenday | (Principal Executive Officer) |
| */s/ Nigel S. Glenday* | Chief Financial Officer and Member of the Board of Managers of Masterworks Vault 16, LLC |
| Nigel S. Glenday | (Principal Financial Officer and Principal Accounting Officer) |
| */s/ Joshua B. Goldstein* | General Counsel, |
| Joshua B. Goldstein | Secretary and Member of the Board of Managers of Masterworks Vault 16, LLC |
| */s/ Eli D. Broverman* | Member of Board of Managers; |
| Eli D. Broverman | Independent Manager of Masterworks Vault 16, LLC |

---

---

| | |
|:---|:---|
| \*By: | */s/ Joshua B. Goldstein* |
|  | Joshua B. Goldstein |
|  | Attorney-in-fact |

---

## Add

**Exhibit 2.1**

![](ex2-1_001.jpg)

![](ex2-1_002.jpg)

## Add

**Exhibit 2.2**

**STATE OF DELAWARE**

**CERTIFICATE OF CONVERSION**

**FROM A DELAWARE LIMITED LIABILITY COMPANY**

**TO A NON-DELAWARE ENTITY**

**PURSUANT TO SECTION 18-216 OF**

**THE LIMITED LIABILITY COMPANY ACT**

1.) The name of the Limited Liability Company is <u>Masterworks Vault 16, LLC.</u>

(If changed, the name under which it's certificate of formation was originally filed: <u>N/A</u>)

2.) The date of filing of its original certificate of formation with the Secretary of State is <u>[ ].</u> .

3.) The jurisdiction in which the business form, to which the limited liability company shall be converted, is organized, formed or created is <u>Texas.</u>

4.) The conversion has been approved in accordance with this section;

---

| | |
|:---|:---|
| 5.) | The limited liability company may be served with process in the State of Delaware in any action, suit or proceeding for enforcement of any obligation of the limited liability company arising while it was a limited liability company of the State of Delaware, and that it irrevocably appoints the Secretary of State as its agent to accept service of process in any such action, suit or proceeding. |

---

6.) The address to which a copy of the process shall be mailed to by the Secretary of State is

In Witness Whereof, the undersigned have executed this Certificate of Conversion on this<u> </u> day of<u> </u>, A.D.<u> </u>.

---

| | |
|:---|:---|
| By: |  |
|  | Authorized Person |
| Name: |  |
|  | Print or Type |

---

## Add

**Exhibit 2.3**

![](ex2-3_001.jpg)

![](ex2-3_002.jpg)

![](ex2-3_003.jpg)

**PLAN OF CONVERSION** 

OF

[NAME OF DE ENTITY]

TO [SERIES LIMITED LIABILITY COMPANY NAME]

This Plan of Conversion (this "Plan") is entered into by and between [NAME OF DE Series LLC], a Delaware series limited liability company (the "**Converting Entity**"), which intends to convert (the "**Conversion**") into [NAME OF TX Series LLC], a Texas series limited liability company (the "**Converted Entity**") as of this ___ day of __________ , 2025.

**RECITALS**

WHEREAS, the Converting Entity is a Delaware series limited liability company duly organized and existing under the laws of the State of Delaware;

WHEREAS, the [MEMBERS/MANAGERS] has/have determined that it is advisable and in the best interests of the Converting Entity and its [MEMBERS/MANAGERS] to convert from a Delaware Series LLC to a Texas Series LLC;

WHEREAS, in accordance with, Section 18-214 of the Delaware Limited Liability Company Act ("DLLCA") and Section 10.102 of the Texas Business Organizations Code ("TBOC") the Converting Entity proposed to effect the Conversion into the Converted Entity;

WHEREAS, the form, terms and provisions of this Plan have been authorized, approved and adopted by the [MEMBERS/MANAGERS] of the Converting Entity.

NOW THEREFORE, the undersigned agree as follows:

**1.** **Conversion.** 

&nbsp;&nbsp;&nbsp;&nbsp;A. The
 name of the Converting Entity is Masterworks Vault 16, LLC. a Delaware Series limited liability company.

B. The
 name of the Converted Entity shall be Masterworks Vault 16, LLC, a Texas series limited liability company.

C. Upon
 the Effective Time (as defined below), and in accordance with Section 18-214 of the DLLCA and Section 10.102 of the TBOC, the Converting
 Entity shall be converted from a Delaware series limited liability company to a Texas series limited liability company and shall
 thereafter be subject to all of the provisions of the TBOC, except not withstanding Section 3.005 of the TBOC, the existence of the
 Converted Entity shall be deemed to have commenced on the date the Converting Entity commenced its existence in the State of Delaware.

---

| | |
|:---|:---|
| **Plan of Conversion** | **[NAME OF DE LLC]** |

---

&nbsp;&nbsp;&nbsp;&nbsp;D. Upon
 the Effective Time (as defined below), and by virtue of the Conversion and without any further action on the part of the Converting
 Entity or its members, the Converted Entity shall for all purposes of the laws of the State of Texas, be deemed to be the same entity
 as the Converting Entity existing immediately prior to the Effective Time. Upon the Effective Time (as defined below), by virtue
 of the Conversion and without any further action on the part of the Converting Entity or its members, for all purposes of the laws
 of the State of Texas, all of the rights, privileges and powers of the Converting Entity existing immediately prior to the Effective
 Time, and all property, real, personal and mixed, and all debts due to the Converting Entity existing immediately prior to the Effective
 Time, shall remain vested in the Converted Entity and shall be the property of the Converted Entity and the title to any real property
 vested by deed or otherwise in the Converting Entity existing immediately prior to the Effective Time shall not revert or be in any
 way impaired by reason of the Conversion; but all creditors and all liens upon any property of the Converting Entity existing immediately
 prior to the Effective Time shall be preserved unimpaired, and all debts, liabilities and duties of the Converting Entity existing
 immediately prior to the Effective Time shall remain attached to the Converted Entity upon the Effective Time, and may be enforced
 against the Converted Entity to the same extent as if said debts, liabilities and duties had originally been incurred or contracted
 by the Converted Entity in its capacity as a Series limited liability company of the State of Texas. The rights, privileges, powers
 and interests in property of the Converting Entity existing immediately prior to the Effective Time, as well as the debts, liabilities
 and duties of the Converting Entity existing immediately prior to the Effective Time, shall not be deemed, as a consequence of the
 Conversion, to have been transferred to the Converted Entity upon the Effective Time for any purpose of the laws of the State of
 Texas.

E. The
 Conversion shall not be deemed to affect any obligations or liabilities of the Converting Entity incurred prior to the Conversion
 of the personal liability of any person incurred prior to the Conversion.

**2.** **Filings.** As promptly as practicable following the adoption of this Plan by the [MEMBER/MANAGERS] of the Converting Entity, the Converting
 Entity shall cause the Conversion to be effective by:

&nbsp;&nbsp;&nbsp;&nbsp;A. Executing
 and filing (or causing the execution and filing of) a Certificate of Conversion pursuant to Section §18-214 of the DLCCA, substantially
 in the form of Exhibit A.

B. Executing
 and filing (or causing the execution and filing of) a Certificate of Conversion pursuant to Section §10.154 of the TBOC, substantially
 in the form of Exhibit B.

C. Executing
 and filing (or causing the execution and filing of) a Certificate of Organization of the Converted Entity pursuant to Section TBOC
 §3.005 & §101.601–101.622 of the TBOC, substantially in the form of Exhibit C.

**3.** **Effective** Time. The Conversion shall become effective upon the later of (i) the effectiveness of the filing of the Certificate of Conversion
 and ii) the effectiveness of the filing of the of the Certificate of Conversion and Certificate of Formation.

**4.** **Effect of Conversion**. Each Member's interest, including series interests, in the Converting Entity shall be converted in its entirety
 to an equal portion of interest ownership in the Converted Entity as set forth on <u>Schedule 1</u>. Each Member shall
 execute an assignment to evidence the above conversion of his or her entire interest in the Converting Entity to the Converted Entity
 in exchange for an equal interest ownership in the Converted Entity as provided herein.

**5.** **Further Assurances**. If, at any time after the Effective Time, the Converted Entity shall determine or be advised that any deeds, bills
 of sale, assignments, agreements, documents or assurances or any other acts or things are necessary, desirable or proper, consistent
 with the terms of this Plan, (a) to vest, perfect or confirm, of record or otherwise, in the Converted Entity its right, title or
 interest in, to or under any of the rights, privileges, immunities, powers, purposes, franchises, properties or assets of the Converting
 Entity existing immediately prior to the Effective Time, or (b) to otherwise carry out the purposes of this Plan, the Converted Entity
 and its Managers or members (or their designees), are hereby authorized to solicit in the name of the Converted Entity any third-party
 consents or other documents required to be delivered or proper to vest, perfect or confirm its right, title or interest in, to or
 under any of the rights, privileges, immunities, powers, purposes, franchises, properties or assets of the Converting Entity existing
 immediately prior to the Effective Time and otherwise to carry out the purposes of this Plan.

**6.** **Texas Operating Agreement**. Upon the Effective Time, the operating company of the Converted Entity shall be the operating agreement
 of the Converted Entity, substantially in the form of <u>Exhibit D</u> hereto.

**7.** **Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;A. Third
 Party Beneficiaries. This Plan shall not confer any rights or remedies upon any person other than as expressly provided herein. For
 the avoidance of doubt, following the Conversion the Converting Entity will hold all of the rights and obligations of the Converted
 Entity under this Plan.

B. Severability.
 Whenever possible, each provision of this Plan will be interpreted in such manner as to be effective and valid under applicable law,
 but if any provision of this Plan is held to be prohibited by or invalid under applicable law, such provision will be ineffective
 only to the extent of such prohibition or invalidity, without invalidating the remainder of this Plan.

*[The remainder of this page is intentionally left blank.]*

 

IN WITNESS WHEREOF, the undersigned Members, on their behalf and on behalf of the Converting Entity, have executed this Agreement as of the date first set forth above.

---

| |
|:---|
| [NAME OF DELAWARE SERIES LLC] |
| Member |
| Member |
| Member |

---

**<u>Schedule 1</u>**

**MEMBERSHIP INTERESTS**

---

| | | |
|:---|:---|:---|
| **Member Name** | **Current Membership**<br> **Interest in the Company** | **Percentage of Stock to be Owned in the Corporation** |

---

**<u>Exhibit A</u>**

**[Certificate of CONVERSION (DELAWARE)]**

**<u>Exhibit B</u>**

**[CERTIFICATE OF CONVERSION (TEXAS)]**

**<u>Exhibit c</u>**

**[CERTIFICATE OF FORMATION]**

**<u>Exhibit d</u>**

**[OPERATING AGREEMENT]**

## Add

**Exhibit 2.5**

![](ex2-5_001.jpg)

![](ex2-5_002.jpg)

![](ex2-5_003.jpg)

## Add

**Exhibit 2.6**

## Add

**Exhibit 2.7**

STATE OF DELAWARE

CERTIFICATE OF CONVERSION

FROM A NON-DELAWARE LIMITED LIABILITY COMPANY TO A

DELAWARE LIMITED LIABILITY COMPANY

PURSUANT TO SECTION 18-214 OF

THE DELAWARE LIMITED LIABILITY COMPANY ACT

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 jurisdiction where the non-Delaware limited liability company was first formed is Texas and the date the non-Delaware limited liability
 company first formed is___<u>[ ], 2025.</u> 

2. The
 jurisdiction immediately prior to filing this Certificate is <u>Texas</u>_______________.

3. The
 name of the non-Delaware limited liability company immediately prior to filing this Certificate is <u>Masterworks Vault 16, LLC</u>.

4. The
 name of the limited liability company as set forth in the Certificate of Formation is <u>Masterworks Vault 16, LLC</u>.

IN WITNESS WHEREOF, the undersigned have executed this Certificate on the _____________day of __________, A.D.________________.

---

| | |
|:---|:---|
| By: |  |
|  | Authorized Person |
| Name: |  |
|  | Print or Type |

---

## Add

**Exhibit 2.8**

STATE OF DELAWARE

CERTIFICATE OF FORMATION

OF LIMITED LIABILITY COMPANY

The undersigned authorized person, desiring to form a limited liability company pursuant to the Limited Liability Company Act of the State of Delaware, hereby certifies as follows:

1. The name of the limited liability company is <u>Masterworks Vault 16, LLC</u>.

2. The Registered Office of the limited liability company in the State of Delaware is located at <u>651 N. (street), Broad Street, Suite 308, Zip Code 19709 in the City of Middletown.</u>

The name of the Registered Agent at such address upon whom process against this limited liability company may be served is ______________Global Virtual Agent Services, LLC________________________.

---

| | |
|:---|:---|
| By: |  |
|  | Authorized Person |
| Name: |  |
|  | Print or Type |

---

## Add

**Exhibit 2.9**

**Form Of Second Amended And Restated**

**Limited Liability Company Operating Agreement**

**Of**

**Masterworks Vault [ ], LLC**

[____________], 2026

<u>**Table of Contents**</u>

---

| | | |
|:---|:---|:---|
| ARTICLE I. | GENERAL PROVISIONS | 1 |
| Section 1.01 | Definitions. | 1 |
| Section 1.02 | Name. | 7 |
| Section 1.03 | Principal Office. | 7 |
| Section 1.04 | Registered Office and Registered Agent. | 7 |
| Section 1.05 | Term. | 7 |
| Section 1.06 | Formation; Purpose and Powers; Certificate of Formation. | 7 |
| Section 1.07 | Power of Attorney. | 8 |
| Section 1.08 | Series Limited Liability Company. | 10 |
| ARTICLE II. | MANAGEMENT; MEMBERS AND SHARES | 13 |
| Section 2.01 | Rights and Duties of the Board of Managers. | 13 |
| Section 2.02 | Officers. | 16 |
| Section 2.03 | Members. | 17 |
| Section 2.04 | Shares; Membership Interests. | 18 |
| Section 2.05 | Certificates and Representations of Shares. | 21 |
| Section 2.06 | Record Holders. | 22 |
| Section 2.07 | Registration and Transfer of Shares. | 22 |
| Section 2.08 | Voting. | 25 |
| Section 2.09 | Removal or Replacement of a Manager. | 27 |
| Section 2.10 | Withdrawal or Removal and Replacement of Administrator. | 27 |
| Section 2.11 | Reliance by Third Parties. | 28 |
| Section 2.12 | Books and Records. | 28 |
| Section 2.13 | Bank Accounts. | 28 |
| ARTICLE III. | CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNT; DISTRIBUTIONS; ALLOCATIONS | 28 |
| Section 3.01 | Capital Contributions. | 28 |
| Section 3.02 | Capital Account. | 29 |
| Section 3.03 | Distributions | 30 |
| Section 3.04 | Tax Allocations. | 31 |
| ARTICLE IV. | LIABILITY; INDEMNIFICATION | 32 |
| Section 4.01 | Liability of a Member. | 32 |
| Section 4.02 | Exculpation and Indemnification. | 32 |
| ARTICLE V. | ACCOUNTING; FINANCIAL AND TAX MATTERS | 33 |
| Section 5.01 | Accounting Basis. | 33 |
| Section 5.02 | Tax Matters. | 34 |

---

i

---

| | | |
|:---|:---|:---|
| ARTICLE VI. | DISSOLUTION; REDEMPTION; WINDING UP; TERMINATION | 36.0 |
| Section 6.01 | Dissolution. | 36.0 |
| Section 6.02 | Redemption. | 37.0 |
| Section 6.03 | Winding Up and Termination of a Series. | 38.0 |
| Section 6.04 | Assets Reserved and Pending Claims. | 38.0 |
| Section 6.05 | Winding Up and Termination of the Company. | 39.0 |
| ARTICLE VII. | MEMBER MEETINGS | 39.0 |
| Section 7.01 | Member Meetings. | 39.0 |
| Section 7.02 | Notice of Meetings of Members. | 41.0 |
| Section 7.03 | Record Date. | 41.0 |
| Section 7.04 | Adjournment. | 41.0 |
| Section 7.05 | Waiver of Notice; Approval of Meeting. | 41.0 |
| Section 7.06 | Required Vote. | 42.0 |
| Section 7.07 | Conduct of a Meeting; Member Lists. | 42.0 |
| Section 7.08 | Action Without a Meeting. | 42.0 |
| Section 7.09 | Voting and Other Rights. | 42.0 |
| Section 7.10 | Proxies and Voting. | 43.0 |
| ARTICLE VIII. | MISCELLANEOUS | 44.0 |
| Section 8.01 | Addresses and Notices. | 44.0 |
| Section 8.02 | Amendments; Waiver. | 44.0 |
| Section 8.03 | Successors and Assigns. | 45.0 |
| Section 8.04 | No Waiver. | 45.0 |
| Section 8.05 | Survival of Certain Provisions. | 45.0 |
| Section 8.06 | Promotional Notifications. | 45.0 |
| Section 8.07 | Corporate Treatment. | 45.0 |
| Section 8.08 | Section 7704(e) Relief. | 46.0 |
| Section 8.09 | Electronic Information. | 46.0 |
| Section 8.10 | Severability. | 46.0 |
| Section 8.11 | Interpretation. | 46.0 |
| Section 8.12 | No Third-Party Rights. | 47.0 |
| Section 8.13 | Entire Agreement. | 47.0 |
| Section 8.14 | Rule of Construction. | 47.0 |
| Section 8.15 | Authority. | 47.0 |
| Section 8.16 | Governing Law. | 47.0 |
| Section 8.17 | Choice of Forum for Securities Act Disputes. | 47.0 |
| Section 8.18 | Facsimile Signatures. | 47.0 |
| Section 8.19 | Counterparts. | 47.0 |
| Section 8.20 | Qualification Rights. | 47.0 |

---

ii

**Second Amended and Restated**

**Limited Liability Company Operating Agreement**

**Of**

**Masterworks Vault [ ], LLC**

This Second Amended and Restated Limited Liability Company Operating Agreement (this "Agreement") of Masterworks Vault [ ], LLC, a Delaware series limited liability company (the "Company"), is dated as of [_________], 2026, and is entered into by Masterworks Foundry, LLC as its sole initial Member (the "Initial Member").

<u>R E C I T A L S</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company has heretofore been formed as a series limited liability company under the Delaware Act (as defined below) pursuant to a Certificate of Formation filed with the Secretary of State of the State of Delaware on [ ].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Initial Member entered into that certain Limited Liability Company Operating Agreement, dated as of [ ], converted the Company to a Texas series limited liability company on [ ], 2026 and entered into that certain Amended and Restated Limited Liability Company Agreement dated [ ], 2026 (together, the "Original Agreement"), and subsequently converted the Company back to a Delaware series limited liability company on [ ], 2026 and now desires to amend and restate the Original Agreement in its entirety as set forth herein.

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Original Agreement is hereby amended and restated in its entirety to provide as set forth herein, and the Initial Member hereby agrees as follows:

**Article I. General Provisions**

Section 1.01 <u>Definitions.</u> For the purpose of this Agreement, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;(a) "Adjustment
 Year" has the meaning ascribed to said phrase under Section 6225(d)(2) of the Code.

(b) "Administrator"
 has the meaning set forth in Section 2.01(d).

&nbsp;&nbsp;&nbsp;&nbsp;(c) "Affiliate"
 means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, or
 is controlled by, or is under common control with, such Person. For the purposes of this definition, the term "controls,"
 "is controlled by" or "under common control with" means, with respect to any Person, the possession, directly
 or indirectly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership
 of voting securities, by contract or otherwise. No Member shall be deemed to be an "Affiliate" of the Company solely
 by reason of being a Member of the Company.

(d) "Agreement"
 has the meaning set forth in the preamble.

(e) "Beneficial
 Owner" of a security is a Person who directly or indirectly, through any contract, arrangement, understanding, relationship
 or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of, such security and/or
 (ii) investment power, which includes the power to dispose, or to direct the disposition of, such security. The terms "Beneficially
 Own" and "Beneficial Ownership" shall have correlative meanings. Notwithstanding the forgoing, any determination
 as to whether a Person is a "Beneficial Owner" shall be determined in accordance with Section 13d-3(a) of the Securities
 Exchange Act, as amended. If such Person would be deemed a Beneficial Owner pursuant to Section 13, such Person shall be deemed a
 Beneficial Owner for purposes of this Agreement and, conversely, if such Person would not be deemed a Beneficial Owner pursuant to
 Section 13, such Person shall not be deemed a Beneficial Owner for purposes of this Agreement.

(f) "Board"
 has the meaning set forth in Section 2.01(a).

(g) "Capital
 Account" has the meaning set forth in Section 3.02(a).

(h) "Capital
 Contribution" means, with respect to each Member, the amount of cash or the Fair Value of any property contributed or deemed
 to be contributed by such Member, if any, to the capital of the Company from time to time pursuant to Section 3.01.

(i) "Cause"
 has the meaning set forth in Section 2.09.

(j) "Certificate"
 means a certificate (i) in global form in accordance with the rules and regulations of the Depositary or (ii) in such other form
 as may be adopted by the Board, issued by the Company evidencing ownership of one or more Shares.

(k) "Change
 in Tax Classification" has the meaning set forth in Section 8.07.

(l) "Class
 A Member" means a Member holding one or more Class A Ordinary Shares.

(m) "Class
 A Ordinary Shares" has the meaning set forth in Section 2.04(b).

(n) "Class
 A Preferred Shares" has the meaning set forth in Section 2.04(b).

(o) "Class
 A Shares" has the meaning set forth in Section 2.04(b).

(p) "Class
 B Member" means a Member holding one or more Class B Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(q) "Class
 B Ordinary Shares" has the meaning set forth in Section 2.04(b).

(r) "Class
 C Member" means a Member holding the Class C Ordinary Share.

(s) "Class
 C Ordinary Share" has the meaning set forth in Section 2.04(b).

(t) "Code"
 means the Internal Revenue Code of 1986, as amended from time to time.

(u) "Commission"
 means the United States Securities and Exchange Commission.

(v) "Company
 Dissolution Event" has the meaning set forth in Section 6.01(a).

(w) "Company"
 has the meaning set forth in the preamble.

(x) "Conversion
 Percentage" has the meaning set forth in Section 2.04(f)(ii).

(y) "Delaware
 Act" means the Chapter 18 of Subtitle II of Title 6 of the Delaware Code, referred to as the Delaware Limited Liability Company
 Act, as amended from time to time, and any successor thereto.

(z) "Depositary"
 means, with respect to any Shares issued in global form, The Depository Trust Company and its successors and permitted assigns.

(aa) "DGCL"
 means the General Corporation Law of the State of Delaware, 8 Del. C. Section 101, et seq., as amended, supplemented or restated
 from time to time, and any successor to such statute.

(bb) "Exchange
 Act" means the Securities Exchange Act of 1934, as amended, supplemented or restated from time to time and any successor to
 such statute, and the rules and regulations promulgated thereunder.

(cc) "Fair
 Value" means, with respect to securities or any other assets, other than cash, the fair market value determined by the Board.

(dd) "Fiscal
 Year" means each fiscal year of the Company (or portion thereof), which shall end on December 31; provided, however, that,
 upon Termination of the Company, "Fiscal Year" means the period from the January 1 immediately preceding such Termination
 to the date of such Termination and, unless otherwise provided in a Series Designation, the fiscal year for tax and financial reporting
 purposes of each Series shall the same as the fiscal year of the Company.

(ee) "Independent
 Manager" shall refer to a member of the Board that meets the standards of an "independent director" set forth in
 NASDAQ Marketplace Rule 4200(a)(15) (on any successor rule) with respect the Company, the Administrator and their respective affiliates.
 In the event a Special Committee is formed, the term "Independent Manager" shall, as the context requires, refer generically
 to each Independent Manager.

(ff) "Initial
 Member" has the meaning set forth in the introductory paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;(gg) "Initial
 Series" has the meaning set forth in Section 1.08(a).

(hh) "Involuntary
 Transfer" shall mean any Transfer of Shares, or proposed Transfer of Shares, (i) in the case of a Member who is a natural person,
 upon such Member's death or the entry by a court of competent jurisdiction adjudicating such Member incompetent to manage such
 Member's person or such Member's property; (ii) in the case of a Member that is a trust, the termination of the trust,
 (iii) in the case of a Member that is a partnership, the dissolution and commencement of winding up of the partnership; (iv) in the
 case of a Member that is an estate, the distribution by the fiduciary of the estate's interest in the Company; and (v) in the
 case of a Member that is a corporation, the filing of a certificate of dissolution, or its equivalent, for the corporation or the
 revocation of its charter.

(ii) "Liabilities"
 has the meaning set forth in Section 4.02(b).

(jj) "Liquidating
 Trustee" has the meaning set forth in Section 6.03(a).

(kk) "Liquidation
 Price" shall mean with respect to any Share of an applicable Series, the amount distributable to the holder of such Share of
 such Series with respect to such Series pursuant to Section 3.03, as determined immediately after the occurrence of a Series Dissolution
 Event.

(ll) "Management
 Services Agreement" has the meaning set forth in Section 2.01(d).

(mm) "Manager"
 has the meaning set forth in Section 2.01(a).

(nn) "Masterworks
 Investor" refers to an affiliate of Masterworks that has raised capital from unaffiliated third party investors to invest the
 proceeds in a diversified collection of artwork and which acquires Class A Ordinary Shares (or shares convertible or exchangeable
 for Class A Ordinary Shares) as part of such investment strategy.

(oo) "Masterworks
 Shares" has the meaning set forth in Section 2.08(d).

(pp) "Member"
 has the meaning set forth in the preamble and includes any Person later admitted to the Company as a Member of a Series.

(qq) "National
 Securities Exchange" means an exchange registered with the Commission under Section 6(a) of the Exchange Act or any successor
 thereto.

(rr) "Officers"
 has the meaning set forth in Section 2.02(a).

(ss) "Partnership
 Representative" has the meaning set forth in Section 5.02(a).

(tt) "Person"
 means an individual, a corporation, a company, a voluntary association, a partnership, a joint venture, a limited liability company,
 a trust, an estate, an unincorporated organization, a governmental authority or other entity.

(uu) "Protected
 Person" means: (i) the members of the Board; (ii) the Administrator and its Affiliates; (iii) any Member; (iv) any Officer;
 or (v) any Person who serves at the request of the Board on behalf of the Company or any Series as an officer, director, partner,
 member, stockholder or employee of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;(vv) "Record
 Date" means the date established by a Series or the Company for determining (a) the identity of the Record Holders entitled
 to notice of, or to vote at, any meeting of Members of a Series or of the Company overall or entitled to exercise rights in respect
 of any lawful action of Members of a Series or of the Company overall, or (b) the identity of Record Holders entitled to receive
 any report or distribution or to participate in any offer.

(ww) "Record
 Holder" or "holder" means the Person in whose name such Shares are registered on the books of the Company or the
 Transfer Agent, as applicable, as of the opening of business on a particular Business Day.

(xx) "Redemption
 End Date" has the meaning set forth in Section 6.02(b).

(yy) "Redemption
 Shares" has the meaning set forth in Section 6.02(a).

(zz) "Redemption"
 has the meaning set forth in Section 6.02(a).

(aaa) "Reviewed
 Year" has the meaning ascribed to said phrase under Section 6225(d)(1) of the Code.

(bbb) "Sale
 of the Series Artwork" means, as to each Series, the transfer of title and ownership of the Series Artwork held by the applicable
 Series to an un-affiliated third-party and receipt by the applicable Series of value therefor as determined by the Board.

(ccc) "Segregated
 Portfolio" shall mean a segregated portfolio of Masterworks Cayman SPC, a Cayman Islands segregated portfolio company.

(ddd) "Series
 Artwork" has the meaning set forth in Section 1.06(b).

(eee) "Series
 Designation" has the meaning set forth in Section 1.08(a).

(fff) "Series
 Dissolution Event" has the meaning set forth in Section 6.01(b).

(ggg) "Series
 Offering" means, with respect to each Series, the offering by the Company of Class A Ordinary Shares of a particular Series
 for sale to the public pursuant to Regulation A under the Securities Act of 1933, as amended (the "Act") or, in any replacement
 offering of Class A Ordinary Shares of such Series, as determined by the Board in the event such Series Offering shall not proceed
 for any reason.

(hhh) "Series
 Properties" means, at any particular time, the Series Property of a Series aggregated with the Series Property of each of the
 other Series.

(iii) "Series
 Property" means, at any particular time, all assets, properties (whether tangible or intangible, and whether real, personal
 or mixed) and rights of any type contributed to or acquired by a particular Series and owned or held by or for the account of such
 Series, whether owned or held by or for the account of such Series as of the date of the designation or establishment thereof or
 thereafter contributed to or acquired by such Series.

(jjj) "Series"
 has the meaning set forth in Section 1.08(a).

&nbsp;&nbsp;&nbsp;&nbsp;(kkk) "Service"
 has the meaning set forth in Section 5.02(a).

(lll) "Share"
 has the meaning set forth in Section 2.04(b).

(mmm) "SPC
 Ordinary Share" shall mean an ordinary share of a segregated portfolio of Masterworks Cayman SPC. Any person other than the
 applicable series (or its successor) that is holder of an SPC Ordinary Share of any Segregated Portfolio shall have the right to
 exchange such SPC Ordinary share for one Class A Ordinary Share of the Series that owns ordinary equity interests in such Segregated
 Portfolio, provided that any SPC Ordinary Share held by any person other than a Series shall be automatically exchanged for one Class
 A Ordinary Share on a one-for-one basis prior to any distribution resulting from a sale of Series Artwork.

(nnn) "SPC
 Preferred Share" shall mean a preferred share of a segregated portfolio of Masterworks Cayman SPC entitled to a $20 liquidation
 preference prior to any distribution to the holders of SPC Ordinary Shares. The holder of each SPC Preferred Share of any Segregated
 Portfolio shall have the right to exchange such SPC Preferred share for one Class A Ordinary Share of the Series that owns ordinary
 equity interests in such Segregated Portfolio.

(ooo) "SPC
 Share" shall refer generically to an SPC Preferred Share and or SPC Ordinary SPC Shares.

(ppp) "Special
 Committee" shall mean a committee of the Board of Managers of the Company comprised of at least one individual, each of whom
 qualifies as an Independent Manager.

(qqq) "Substitute
 Member" means a Person who is admitted as a Member of the Company pursuant to Section 2.07 as a result of a Transfer of Shares
 to such Person.

(rrr) "Tax
 Proceeding" has the meaning set forth in Section 5.02(a).

(sss) "ATS"
 refers to the alternative trading system operated by an SEC-registered broker-dealer.

(ttt) "Termination"
 means the date of the cancellation of the Certificate of Formation of the Company following the end of the Winding Up Period by the
 filing of a Certificate of Cancellation of the Company with the Secretary of State of the State of Delaware.

(uuu) "Transfer
 Agent" means, with respect to any class of Shares of each Series, such bank, trust company or other Person (including the Company
 or any Series or one of either of their Affiliates) as shall be appointed from time to time by the Board to act as registrar and
 transfer agent for such class of Shares of such Series; provided that if no Transfer Agent is specifically designated for such class
 of Shares of such Series, the Administrator or the Company shall act in such capacity.

(vvv) "Transfer"
 means, with respect to a Share of a Series and the associated membership interest in a Series, a transaction by which the Record
 Holder of a Share of such Series assigns such Share to another Person who is or becomes a Member of such Series, and includes a sale,
 assignment, gift, exchange or any other disposition by law or otherwise, including any transfer upon foreclosure of any pledge, encumbrance,
 hypothecation or mortgage.

(www) "Treasury
 Regulations" means the regulations of the U.S. Treasury Department issued pursuant to the Code.

(xxx) "Value
 Increase" has the meaning set forth in Section 2.04(f)(i).

(yyy) "Vote
 Limit Certificate" means a certificate in substantially the form attached hereto as Exhibit A which is delivered to the Company
 in accordance with Section 2.08(i).

&nbsp;&nbsp;&nbsp;&nbsp;(zzz) "Vote
 Limit" means the percentage interest specified in a Vote Limit Certificate by a Vote Limited Member of the applicable Series
 pursuant to which such Member (together with such Vote Limited Member's affiliates) will be irrevocably limited to such Vote
 Limit in any vote taken under Section 2.01, Section 2.08, Section 2.09 and Section 8.02 with respect to the applicable Series.

(aaaa) "Vote
 Limited Member" means any Member who beneficially owns 5% or more of the outstanding Class A shares (excluding Masterworks
 Shares) of a Series submits a Vote Limit Certificate to the Board which designates such Member as a Vote Limited Member, either separately
 or jointly with one or more other Members.

(bbbb) "Voting
 Member" means a Member holding one or more Voting Shares.

(cccc) "Voting
 Shares" as to any Series, means the Class A Ordinary Shares of such applicable Series, excluding any Shares of such Series
 beneficially owned by the Administrator or any of its Affiliates and Shares of such Series beneficially owned by a Vote Limited Member
 of such Series in excess of the Vote Limit.

(dddd) "Winding
 Up Period" means the period from the Company Dissolution Event to the Termination of the Company.

Section 1.02 <u>Name.</u> The name of the Company is "Masterworks Vault [ ], LLC." All business of the Company shall be conducted under such name, provided that a Series may conduct business under its name. The Board may elect to change the name of the Company or any Series at any time.

Section 1.03 <u>Principal Office.</u> The principal office of the Company shall be at a location as determined by the Board either within or outside of the United States. The Company shall keep its books and records at its principal office. The principal office of each Series shall be the same as the principal office of the Company.

Section 1.04. <u>Registered Office and Registered Agent.</u> The street address of the registered office of the Company and of each Series in the State of Delaware shall be as selected by the Board. The Board may elect to change the registered office and the registered agent of the Company or any Series at any time.

Section 1.05 <u>Term.</u> The Company was formed on [ ] and shall continue its regular business activities until the Company and each of the Series is dissolved. The term of the Company and each Series shall be perpetual, unless and until it is dissolved or terminated in accordance with the provisions of Article VI. The existence of each Series shall commence upon the effective date of the Series Designation establishing such Series, as provided in Section 1.08. The existence of the Company as a separate legal entity shall continue until the cancellation of the Certificate of Formation as provided in the Delaware Act.

Section 1.06 <u>Formation; Purpose and Powers; Certificate of Formation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company has been formed as, and shall operate as, a protected series limited liability company as set forth in Section 18-218 of
 the Delaware Act, and as further set forth in Section 1.08 and the remainder of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Company and each Series is organized for the purposes of undertaking such activities as determined by the Board and, subject to the
 terms and conditions herein and of the Delaware Act, the Members, which are permitted by applicable law and engaging in activities
 incidental or ancillary thereto. Notwithstanding the forgoing, the Company has been organized to form the Series, with each such
 Series holding the artwork as identified on the Series Designation for such Series (as to each such Series, the "Series Artwork"),
 and undertaking certain actions with respect thereto.

(c) The
 Company and each Series shall possess and may exercise all the powers and privileges granted by the Delaware Act or by any other
 law or by this Agreement, together with any powers incidental thereto, which are necessary or convenient to the conduct, promotion
 or attainment of the business, purposes or activities of the Company or such Series.

(d) The
 Certificate of Formation has been filed with the Secretary of State of the State of Delaware, such filing being hereby confirmed,
 ratified and approved in all respects. The Board shall use reasonable efforts to cause to be filed such other certificates or documents
 that it determines to be necessary or appropriate for the formation, continuation, qualification and operation of a series limited
 liability company in the State of Delaware or any other state in which the Company or any Series may elect to do business or own
 property. To the extent that the Board determines such action to be necessary or appropriate, the Board shall, or shall direct the
 Administrator or the appropriate Officers to, file amendments to and restatements of the Certificate of Formation and do all things
 to maintain the Company as a series limited liability company under the laws of the State of Delaware or of any other state in which
 the Company or any Series may elect to do business or own property, and if the Administrator or an Officer is so directed, such Administrator
 or Officer, as applicable, shall be an authorized person of the Company and, unless otherwise provided in a Series Designation, of
 each Series within the meaning of the Delaware Act for purposes of filing any such certificate with the Secretary of State of the
 State of Delaware. The Company shall not be required, before or after filing, to deliver or mail a copy of the Certificate of Formation,
 any qualification document or any amendment thereto to any Member.

Section 1.07 <u>Power of Attorney.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 Member of each Series hereby constitutes and appoints each of the Chief Executive Officer, the Chief Financial Officer and the Secretary
 of the Company and, if a Liquidating Trustee shall have been selected pursuant to Section 6.03, the Liquidating Trustee (and any
 successor to the Liquidating Trustee by merger, transfer, assignment, election or otherwise) and each of their authorized officers
 and attorneys-in-fact, as the case may be, with full power of substitution, as his true and lawful agent and attorney-in-fact, with
 full power and authority in his name, place and stead, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) execute,
 swear to, acknowledge, deliver, file and record in the appropriate public offices:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) All
 certificates, documents and other instruments (including this Agreement, the Series Designations and the Certificate of Formation
 and all amendments or restatements hereof or thereof) that the Chief Executive Officer, Chief Financial Officer or Secretary of the
 Company, or the Liquidating Trustee, determines to be necessary or appropriate to form, qualify or continue the existence or qualification
 of the Company or any Series as a limited liability company in the State of Delaware and in all other jurisdictions in which the
 Company or any Series may conduct business or own property or to form, qualify or continue the existence or qualification any Series
 in the State of Delaware and in all other jurisdictions in which such Series may conduct business or own property or to;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) all
 certificates, documents and other instruments that the Chief Executive Officer, the Chief Financial Officer or Secretary of the Company,
 or the Liquidating Trustee, determines to be necessary or appropriate to reflect, in accordance with its terms, any amendment, change,
 modification or restatement of this Agreement;

(C) all
 certificates, documents and other instruments (including conveyances and a certificate of cancellation) that the Board or the Liquidating
 Trustee determines to be necessary or appropriate to reflect the dissolution, liquidation and termination of the Company or any Series
 pursuant to the terms of this Agreement;

(D) all
 certificates, documents and other instruments relating to the admission, withdrawal, removal or substitution of any Member pursuant
 to, or other events described in, Article II or Article III;

(E) all
 certificates, documents and other instruments (including agreements and a certificate of merger) relating to a merger, consolidation
 or conversion of the Company;

(F) all
 certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of any Shares
 of a Series issued pursuant to this Agreement;

(G) all
 certificates, documents and other instruments that the Board or the Liquidating Trustee determines to be necessary or appropriate
 to maintain the separate rights, assets, obligations and liabilities of each Series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) execute,
 swear to, acknowledge, deliver, file and record all ballots, consents, approvals, waivers, certificates, documents and other instruments
 that the Board or the Liquidating Trustee determines to be necessary or appropriate to (i) make, evidence, give, confirm or ratify
 any vote, consent, approval, agreement or other action that is made or given by the Members hereunder or is consistent with the terms
 of this Agreement or (ii) effectuate the terms or intent of this Agreement; provided, that when required by any provision of this
 Agreement that establishes a percentage of the Members or of the Members of any class or Series required to take any action, the
 Chief Executive Officer, Chief Financial Officer or Secretary of the Company, or the Liquidating Trustee, may exercise the power
 of attorney made in this Section 1.07(a)(ii) only after the necessary vote, consent, approval, agreement or other action of the Members
 or of the Members of such class or Series, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Nothing
 contained in this Section 1.07 shall be construed as authorizing the Chief Executive Officer, Chief Financial Officer or Secretary
 of the Company or any Series, or the Liquidating Trustee, to amend, change or modify this Agreement except in accordance with Section
 8.02 or as may be otherwise expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, and it shall survive and,
 to the maximum extent permitted by law, not be affected by the subsequent death, incompetency, disability, incapacity, dissolution,
 bankruptcy or termination of any Member and the Transfer of all or any portion of such Member's Shares and shall extend to
 such Member's heirs, successors, assigns and personal representatives. Each such Member hereby agrees to be bound by any representation
 made by the Chief Executive Officer, Chief Financial Officer or Secretary of the Company, or the Liquidating Trustee, acting in good
 faith pursuant to such power of attorney; and each such Member, to the maximum extent permitted by law, hereby waives any and all
 defenses that may be available to contest, negate or disaffirm the action of the Chief Executive Officer, Chief Financial Officer
 or Secretary of the Company, or the Liquidating Trustee, taken in good faith under such power of attorney in accordance with Section
 1.07. Each Member shall execute and deliver to the Chief Executive Officer, Chief Financial Officer or Secretary of the Company,
 or the Liquidating Trustee, within 15 days after receipt of the request therefor, such further designation, powers of attorney and
 other instruments as any of such Officers or the Liquidating Trustee determines to be necessary or appropriate to effectuate this
 Agreement and the purposes of the Company.

Section 1.08 <u>Series Limited Liability Company.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General; Establishment of Series</u>. Subject to the provisions of this Agreement, the Board may, at any time and from time to time and in
 compliance with Section 1.08(c), cause the Company to establish in writing (each, a "Series Designation") one or more
 series as such term is used under Section 18-215 of the Delaware Act (each a "Series"). Each Series Designation shall
 be substantially in the form as attached hereto as Exhibit B. The Series Designation shall relate solely to the Series established
 thereby and shall not be construed: (i) to affect the terms and conditions of any other Series, or (ii) to designate, fix or determine
 the rights, powers, authority, privileges, preferences, duties, responsibilities, liabilities and obligations in respect of Interests
 associated with any other Series, or the Members associated therewith. The terms and conditions for each Series established pursuant
 to this Section 1.08(a) shall be as set forth in this Agreement and the Series Designation, as applicable, for the Series. Upon approval
 of any Series Designation by the Board, such Series Designation shall be attached to this Agreement as an Exhibit until such time
 as none of Shares of such Series remain outstanding. The books and records of the Company shall be maintained by the Company on a
 Series-by-Series basis, accounting for the assets associated with such Series separately from the other assets of the Company or
 any other Series thereof.

(b) <u>Series Operation</u>. Each of the Series shall operate to the extent practicable as if it were a separate limited liability company.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Series Designation</u>. The Series Designation establishing a Series may: (i) specify a name or names under which the business and affairs
 of such Series may be conducted; (ii) designate, fix and determine the relative rights, powers, authority, privileges, preferences,
 duties, responsibilities, liabilities and obligations in respect of Shares of such Series and the Members associated therewith (to
 the extent such terms differ from those set forth in this Agreement) and (iii) designate or authorize the designation of specific
 Officers to be associated with such Series. A Series Designation (or any resolution of the Board amending any Series Designation)
 shall be effective when a duly executed original of the same is included by the Administrator at the direction of the Board among
 the permanent records of the Company, and shall be annexed to, and constitute part of, this Agreement (it being understood and agreed
 that, upon such effective date, the Series described in such Series Designation shall be deemed to have been established and the
 Shares of such Series shall be deemed to have been authorized in accordance with the provisions thereof). The Series Designation
 establishing a Series may set forth specific provisions governing the rights of such Series against a Member associated with such
 Series who fails to comply with the applicable provisions of this Agreement (including, for the avoidance of doubt, the applicable
 provisions of such Series Designation). In the event of a conflict between the terms and conditions of this Agreement and a Series
 Designation, the terms and conditions of the Series Designation shall prevail.

(d) <u>Assets and Liabilities Associated with a Series</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Assets Associated with a Series</u>. All consideration received by the Company for the issuance or sale of Shares of a particular Series,
 together with all assets in which such consideration is invested or reinvested, and all income, earnings, profits and proceeds thereof
 (except for income or earnings for which Masterworks is entitled to receive pursuant to the Management Services Agreements (as defined
 below)), from whatever source derived, including any proceeds derived from the sale, exchange or liquidation of such assets, and
 any funds or payments derived from any reinvestment of such proceeds, in whatever form the same may be (assets), shall, subject to
 the provisions of this Agreement, be held for the benefit of the Series or the Members associated with such Series, and not for the
 benefit of the Members associated with any other Series, for all purposes, and shall be accounted for and recorded upon the books
 and records of the Series separately from any assets associated with any other Series, notwithstanding whether an aggregated bank
 account in the name of the Company is created for the assets of every Series or a separate bank account is created for each Series.
 Such assets are herein referred to as assets associated with that Series. In the event that there are any assets in relation to the
 Company that, in the Board's reasonable judgment, are not readily associated with a particular Series, the Board shall allocate
 such assets to, between or among any one or more of the Series, in such manner and on such basis as the Board deems fair and equitable,
 and in accordance with provisions herein, and any asset so allocated to a particular Series shall thereupon be deemed to be an asset
 associated with that Series. Each allocation by the Board pursuant to the provisions of this Section 1.08(d)(i) shall be conclusive
 and binding upon the Members associated with each and every Series. Separate and distinct records shall be maintained for each and
 every Series, and the Board shall not commingle the assets of one Series with the assets of any other Series in its records. The
 records maintained for a Series shall reasonably identify its assets, including by specific listing, category, type, quantity, computational
 or allocational formula or procedure (including a percentage or share of any asset or assets) or by any other method where the identity
 of such assets is objectively determinable, and such records will be deemed to account for the assets associated with such Series
 separately from the other assets of the Company, or any other Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Liabilities Associated with a Series</u>. All debts, liabilities, expenses, costs, charges, obligations and reserves incurred by, contracted
 for or otherwise existing (liabilities) with respect to a particular Series shall be charged against the assets associated with that
 Series. Such liabilities are herein referred to as liabilities associated with that Series. In the event that there are any liabilities
 in relation to the Company that, in the Board's reasonable judgment, are not readily associated with a particular Series, the
 Board shall allocate and charge (including indemnification obligations) such liabilities to, between or among any one or more of
 the Series, in such manner and on such basis as the Board deems fair and equitable , and any liability so allocated and charged to
 a particular Series shall thereupon be deemed to be a liability associated with that Series. Each allocation by the Board pursuant
 to the provisions of this Section 1.08(d)(ii) shall be conclusive and binding upon the Members associated with each and every Series.
 All liabilities associated with a Series shall be enforceable against the assets associated with that Series only, and not against
 the assets associated with the Company or any other Series, and except to the extent set forth above, no liabilities shall be enforceable
 against the assets associated with any Series prior to the allocation and charging of such liabilities as provided above. Any allocation
 of liabilities that are not readily associated with a particular Series to, between or among one or more of the Series shall not
 represent a commingling of such Series to pool capital for the purpose of carrying on a trade or business or making common investments
 and sharing in profits and losses therefrom. The Board has caused notice of this limitation on inter-series liabilities to be set
 forth in the Certificate of Formation, and, accordingly, the statutory provisions of Section 18-215(b) of the Delaware Act relating
 to limitations on inter-series liabilities (and the statutory effect under Section 18-207 of the Delaware Act of setting forth such
 notice in the Certificate of Formation) shall apply to the Company and each Series. Notwithstanding any other provision of this Agreement,
 no distribution on or in respect of Shares in a particular Series, including, for the avoidance of doubt, any distribution made in
 connection with the winding up of such Series, shall be effected by the Company other than from the assets associated with that Series,
 nor shall any Member or former Member associated with a Series otherwise have any right or claim against the assets associated with
 any other Series (except to the extent that such Member or former Member has such a right or claim hereunder as a Member or former
 Member associated with such other Series or in a capacity other than as a Member or former Member).

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Costs and Expenses</u>. In furtherance of the above, all fees, costs and expenses in connection with any Series Offering, a Series Property,
 the activities of a particular Series, and the winding up of a particular Series shall be borne by the relevant Series, in accordance
 with the Management Services Agreements, provided that to the extent any fees, costs or expenses are not covered by the Administrator
 pursuant to the Management Services Agreements and such fees, costs or expenses cannot be attributed directly to one or more Series,
 the Board may allocate such fees, costs or expenses between or among any one or more of the Series, in such manner and on such basis
 as the Board deems fair and equitable, and any fee, cost or expense so allocated and charged to a particular Series shall thereupon
 be deemed to be a fee, cost or expense associated with that Series. Each allocation by the Board pursuant to the provisions of this
 Section 1.08(e) shall be conclusive and binding upon the Members associated with each and every Series.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Ownership of Series Property</u>. Title to and beneficial interest in a Series Property shall be deemed to be held and owned by the relevant
 Series and no Member or Members of such Series, individually or collectively, shall have any title to or beneficial interest in a
 specific Series Property or any portion thereof. Each Member of a Series irrevocably waives any right that it may have to maintain
 an action for partition with respect to its interest in the Company, any Series or any Series Property. Any Series Property may be
 held or registered in the name of the relevant Series, in the name of a nominee or as the Board may determine; provided, however,
 that Series Property shall be recorded as the assets of the relevant Series on the Company's books and records, irrespective
 of the name in which legal title to such Series Property is held. Any corporation, brokerage firm or transfer agent called upon to
 transfer any Series Property to or from the name of any Series shall be entitled to rely upon instructions or assignments signed
 or purporting to be signed by the Board or its agents without inquiry as to the authority of the person signing or purporting to
 sign such instruction or assignment or as to the validity of any transfer to or from the name of such Series.

(g) <u>No Preference</u>. No Shares shall entitle any Member to any preemptive, preferential or similar rights unless such preemptive, preferential
 or similar rights are set forth in the applicable Series Designation on or prior to the date of the Series Offering of any interests
 of such Series (the designation of such preemptive, preferential or similar rights with respect to a Series in the Series Designation,
 the Interest Designation).

(h) <u>Additional Provisions</u>. The following shall apply to each Series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A
 Series may carry on any lawful business, purpose or activity, whether or not for profit, other than as limited by the Delaware Act,
 provided that certain activities require shareholder consent as set forth Section 2.08(e).

(ii) A
 Series shall have the power and capacity to, in its own name, contract, hold title to assets (including real, personal and intangible
 property), grant liens and security interests, and sue and be sued.

(iii) Except
 as otherwise provided by the Delaware Act, no member or manager of a Series shall be obligated personally for any debt, obligation
 or liability of such series, whether arising in contract, tort or otherwise, solely by reason of being a member or acting as manager
 of such Series.

**Article II. Management; Members and Shares**

Section 2.01 <u>Rights and Duties of the Board of Managers.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company is a manager-managed limited liability company and each Series shall be similarly managed as a manager-managed Series. Accordingly,
 management of the affairs of the Company and of each Series shall be vested in a Board of Managers (the "Board"). Except
 as otherwise set forth in the Series Designation, each Series shall be managed by the Board as the manager of such Series until the
 earlier of the dissolution of the Series pursuant to Article VI or (ii) its removal or replacement as set forth herein. The Persons
 constituting the Board (each, a "Manager") will be (i) the "managers" of the Company and each Series for
 all purposes under the Act and (ii) the Board for all purposes under this Agreement. The Board will have the power to act only by
 a majority of the Managers in accordance with the provisions and in the manner specified herein. A person does not need to be a Member
 of any Series to serve on the Board. The Board will initially consist of three members and shall initially consist of Nigel Glenday,
 Josh Goldstein and Eli Broverman as the Independent Manager, who shall serve until they resign or are replaced by a majority of the
 Board or the holder of the Class C Ordinary Share, and new members of the Board shall be appointed by a majority of the Board or
 the holder of the Class C Ordinary Share, as applicable. Provided, however, the Members holding 66 2/3% of the Voting Shares of all
 of the Series then outstanding, voting as one class, Company overall may vote to remove and replace a Manager for "Cause"
 in accordance with Section 2.09, and any such change in the composition of the Board shall apply to all Series. The size of the Board
 may be increased, including, without limitation, in connection with forming a Special Committee, or decreased from time to time by
 action of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Company shall have at least one Independent Manager serving as one of the members of the Board. To the fullest extent permitted by
 law, the Independent Manager shall consider only the interests of the Company and each Series in acting or otherwise voting on the
 matters set forth in this Article II. The Independent Manager shall act where other Managers are excluded from voting on certain
 matters involving a direct or indirect conflict of interest between any Manager on the one hand and public investors on the other
 hand. The prior consent of the Independent Manager shall be required to appoint a second Independent Manager for the purpose of serving
 on a Special Committee. All right, power and authority of the Independent Manager shall be limited to the extent necessary to exercise
 those rights and perform those duties specifically set forth herein and the Independent Manager shall have no authority to bind the
 Company or any Series.

(c) Except
 as otherwise expressly provided in this Agreement or as required by the Delaware Act, the Board shall have complete and exclusive
 discretion in the management and control of the affairs and business of the Company and each Series, and shall possess all powers
 necessary, convenient or appropriate to carrying out the purposes and business of the Company and each Series, including doing all
 things and taking all actions necessary to carry out the terms and provisions of this Agreement, including, without limitation, to
 make determinations and complete actions with respect (i) the use of the assets of a Series (including cash on hand) for any purpose
 consistent with the terms of this Agreement, including the financing of the conduct of the operations of such Series and the repayment
 of obligations of such Series; and (ii) the negotiation, execution and performance of any contracts, conveyances or other instruments
 (including instruments that limit the liability of the Company or any Series under contractual arrangements to all or particular
 assets of the Company or any Series). Except as otherwise expressly provided in this Agreement, the Board shall have, and shall have
 full authority in its discretion to exercise, on behalf of and in the name of the Company, all rights and powers of a "manager"
 of a limited liability company under the Delaware Act necessary or convenient to carry out the purposes of the Company. Except as
 otherwise expressly provided in this Agreement, the Board or Persons designated by the Board, including officers and agents (including
 the Administrator) appointed by the Board, will be the only Persons authorized to execute documents which will be binding on the
 Company or any Series. To the fullest extent permitted by Delaware law, but subject to any specific provisions hereof granting rights
 to one (1) or more Members (e.g., the right of Masterworks Foundry, LLC to designate Board members), the Board will have the power
 to perform any acts, statutory or otherwise, with respect to the Company (including with respect to any Subsidiary of the Company)
 or any Series or this Agreement, which would otherwise be possessed by the Members under Delaware law, and the Members will have
 no power whatsoever with respect to the management of the business and affairs of the Company (including with respect to any Subsidiary
 of the Company) or any Series except as expressly provided herein. In furtherance of the authority granted to the Board pursuant
 to this Agreement, the determination as to any the matters for which the Board has the power to make, shall be final and conclusive
 and shall be binding upon the Company and each Series and every holder of Shares of any Series.

&nbsp;&nbsp;&nbsp;&nbsp;(d) While
 the Board has ultimate authority over all Series Property, the Company shall assume management services agreements with Masterworks
 Administrative Services, LLC (the "Administrator") immediately prior to the Series Offerings (each, a "Management
 Services Agreement" and together, the "Management Services Agreements"), whereby the Administrator will provide
 administrative and management services to each Series in respect of each Series' Artwork. Once each Series becomes party to
 a Management Services Agreement, any amendment to such Management Services Agreement that would be deemed, in the sole and absolute
 discretion of the Board of Managers, to be adverse or detrimental to the interests of members of any Series must be approved by holders
 of a majority of Voting Shares of such Series.

(e) Subject
 to the terms and conditions herein, all decisions regarding the management and operations of the Company and each Series shall be
 made by the Board, provided, however, that the Administrator shall have all power and authority to take any and all actions necessary
 to effectuate the intent and purpose of the Management Services Agreements and the Board may designate any Officers of the Company
 and any Series to have control or authority with respect to one or more decisions or areas of operation, and may include such limitations
 or restrictions on such power as they may deem reasonable.

(f) The
 Board may adopt an allocation policy which shall provide that items not related to a specific Series will be allocated across all
 Series pro rata based upon the value of the underlying Series Properties, as determined by the Board. The Board may amend the allocation
 policy in its sole discretion from time to time.

Section 2.02 <u>Officers.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) At
 any time, the Board may appoint and replace individuals as officers or agents of the Company or of any Series (as applicable, "Officers")
 with such titles as the Board may elect to act on behalf of the Company or the applicable Series with such power and authority as
 the Board may delegate to such persons. In the event that any persons are not denominated as "Officers" of any particular
 Series, such persons shall be deemed to have been named as officers of the Company and of all Series then existing or which may thereafter
 be formed by the Board, unless otherwise limited by the Board. Any number of offices may be held by the same person. Officers shall
 hold their offices for such terms as shall be determined from time to time by the Board. Unless otherwise determined and set forth
 by the Board and subject to the policies and procedures of the Company applicable to Officers and employees, each Officer shall have
 the powers, rights and obligations as are customarily held and exercised by other persons in similar positions in limited liability
 companies organized under the Delaware Act, subject to Section 2.01(c). The Officers shall hold office until their successors are
 chosen and qualified. Any Officer may be removed at any time, with or without cause, by the Board. The Officers may also be officers
 or employees of other Persons. The Officers, to the extent of their powers set forth in this Agreement or otherwise vested in them
 by action of the Board not inconsistent with this Agreement, are agents of the Company for the purpose of the Company's business
 and the actions of the Officers taken in accordance with such powers shall bind the Company. Except to the extent otherwise provided
 herein, each Officer shall have a fiduciary duty of loyalty and care as set forth in the Delaware Act. No Officer shall at any time
 serve as trustee in bankruptcy for any Affiliate of the Company.

(b) Notwithstanding
 the foregoing, it shall be deemed not to be a breach of any duty (including any fiduciary duty) or any other obligation of any type
 whatsoever of any Manager or any officer or employee or any Affiliates of such Manager, officer or employee (other than any express
 obligation contained in any agreement to which such Person and the Company or any Series or any of their respective subsidiaries
 are parties) to engage in outside business interests and activities in preference to or to the exclusion of the Company or any Series
 or in direct competition with the Company or any Series; provided such Person does not engage in such business or activity as a result
 of or using confidential information provided by or on behalf of the Company or any Series to such Person; provided, further, that
 a Person shall not be deemed to be in direct competition with the Company or any Series solely because of such Person's ownership,
 directly or indirectly, solely for investment purposes, of securities of any publicly traded entity if such Person does not, together
 with such Person's Affiliates, collectively own 5% or more of any class or securities of such publicly traded entity, and such
 Person is not a director or officer (and does not hold an equivalent position) in such publicly traded entity. Neither the Board,
 not any officer or employee shall have no obligation hereunder or as a result of any duty expressed or implied by law to present
 business opportunities to the Company or any Series that may become available to Affiliates of such Person. None of any Member or
 any other Person shall have any rights by virtue of the Board's or any officer's or employee's or any Affiliates
 of the Board, officer or employee duties as the Board or any Manager, officer or employee or this Agreement in any business ventures
 of the Administrator or any Manager or any officer or employee or any Affiliates of the Administrator or any such Manager, officer
 or employee.

(c) Nigel
 S. Glenday is hereby designated as the Chief Executive Officer and Chief Financial Officer and Josh Goldstein is designated the General
 Counsel and Secretary of the Company and of each Series, each to serve in such capacity until his earlier death, resignation or removal
 from office.

Section 2.03 <u>Members.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) A
 Person shall be admitted as a Member and shall become bound by, and shall be deemed to have agreed to be bound by, the terms of this
 Agreement if such Person purchases or otherwise lawfully acquires any Share of any Series, and such Person shall become the Record
 Holder of such Share, in accordance with the provisions of this Agreement. A Member may be a Class A Member of any Series, a Class
 B Member of any Series and or Class C Member of any Series (and may be a Member of one or more Series) and, in such case, shall have
 the rights and obligation accorded to the Class A Ordinary Shares of such Series with respect to such Class A Ordinary Shares of
 such Series or the rights and obligations accorded to the Class A Preferred Shares of such Series with respect to such Class A Preferred
 Shares of such Series, as applicable, the rights and obligations accorded to the Class B Ordinary Shares of such Series with respect
 to such Class B Ordinary Shares of such Series and the rights and obligations accorded to the Class C Ordinary Share of such Series
 with respect to such Class C Ordinary Share of such Series. A Person may become a Record Holder without the consent or approval of
 any of the Members and without physical execution of this Agreement. A Person may not become a Member without acquiring a Share.

(b) The
 name and mailing address of each Member shall be listed on the books and records of the Company and each Series maintained for such
 purpose by the Company and each Series. The Board shall update the books and records of the Company and each Series from time to
 time as necessary to reflect accurately the information therein

(c) Except
 as otherwise provided in the Delaware Act, and subject to Section 2.03(d) and Section 3.01, the debts, obligations and liabilities
 of the Company generally, which are not attributable to any Series, whether arising in contract, tort or otherwise, shall be solely
 the debts, obligations and liabilities of the Company, and none of the Members of any Series shall not be obligated personally for
 any such debt, obligation or liability of the Company solely by reason of being a Member of the Company or any Series.

(d) Except
 as otherwise provided in the Delaware Act, the debts, obligations and liabilities of a Series, whether arising in contract, tort
 or otherwise, shall be solely the debts, obligations and liabilities of such Series, and not of any other Series. In addition, the
 Members shall not be obligated personally for any such debt, obligation or liability of any Series solely by reason of being a Member.

(e) Except
 to the extent expressly provided in this Agreement: (i) no Member shall be entitled to the withdrawal or return of any Capital Contribution,
 except to the extent, if any, that distributions made pursuant to this Agreement or upon dissolution of the Company or any Series,
 as applicable, may be considered as such by law and then only to the extent provided for in this Agreement; (ii) no Member of a Series
 shall have priority over any other Member of a Series either as to the return of Capital Contributions of such Series or as to profits,
 losses or distributions; (iii) no Member of a Series holding any Shares of any Series shall have priority over any other Member holding
 shares of the same Series either as to the return of Capital Contributions or as to distributions; (iv) no interest shall be paid
 by the Company or any Series on Capital Contributions; and (v) no Member, in its capacity as such, shall participate in the operation
 or management of the Company's or any Series' business, transact any business in the Company's name or any Series'
 name or have the power to sign documents for or otherwise bind the Company or any Series by reason of being a Member.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Any
 Member shall be entitled to and may have business interests and engage in business activities in addition to those relating to the
 Company or any Series, including business interests and activities in direct competition with the Company or any Series. None of
 the Company, any Series or any of the other Members shall have any rights by virtue of this Agreement in any such business interests
 or activities of any Member.

(g) Unless
 otherwise specifically set forth herein, any reference herein to a "Member" shall be deemed to be a reference to the
 Member of a particular Series.

Section 2.04 <u>Shares; Membership Interests.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless
 otherwise provided in the applicable Series Designation, the Company is authorized to issue in respect of each Series an unlimited
 number of membership interests subject to Section 2.04(b), which shall be denominated as set forth in Section 2.04(b). All Shares
 (as defined below) issued pursuant to, and in accordance with the requirements of this Agreement shall be validly issued membership
 interest in the applicable Series and in the Company, except to the extent otherwise provided in the Delaware Act, this Agreement
 and the applicable Series Designation. Any Member holding Shares of a Series shall be deemed a Member of such Series and of the Company
 to the extent set forth herein and in the Delaware Act.

(b) Subject
 to the provisions herein, the total of the membership interests in any Series shall, as applicable, be divided into a combination
 of the following, as further outlined in each Series Designation: (i) Class A Ordinary Shares having the rights and preferences as
 set forth herein and in the Series Designation for the applicable Series (the "Class A Ordinary Shares" or "Class
 A Shares" if such Series has no Class A Preferred Shares), (ii) Class A Preferred Shares having the rights and preferences
 as set forth herein and in the Series Designation for the applicable Series (the "Class A Preferred Shares" and, together
 with the Class A Ordinary Shares if applicable, "Class A Shares"), (iii) Class B Ordinary Shares having the rights and
 preferences as set forth herein and in the Series Designation for the applicable Series (the "Class B Ordinary Shares"),
 and (iv) Class C Ordinary Share having the rights and preferences as set forth herein and in the Series Designation for the applicable
 Series (the "Class C Ordinary Share" and, together with the Class A Shares and the Class B Ordinary Shares, as to each
 Series, the "Shares" of such Series and each a "Share" of such Series). Class A Ordinary Shares of a Series,
 Class A Preferred Shares of a Series and Class B Ordinary Shares of a Series shall have the same rights, powers and duties, except
 as otherwise set forth in this Agreement or the applicable Series Designation. Shares shall represent an interest solely in the Series
 to which they relate, and unless otherwise specified herein, any reference to any Class A Ordinary Shares, Class A Preferred Shares,
 Class B Ordinary Shares and/or Class C Ordinary Shares shall be deemed a reference to the Class A Ordinary Shares, Class A Preferred
 Shares, Class B Ordinary Shares and/or Class C Ordinary Shares of the applicable Series. The number of Class A Ordinary Shares of
 any Series shall be limited to the maximum number of Class A Ordinary shares offered in a Series Offering for the applicable Series
 plus the number of Class A Ordinary Shares issued by a predecessor issuer to the Administrator in respect of the Series' Artwork
 immediately preceding the applicable Series Offering, plus (i) the number of Class A Ordinary Shares which may be issued upon exchange
 of SPC Shares of the applicable Segregated Portfolio (provided that the issuance of such SPC Shares entitled to such exchange shall
 have been approved by the applicable Series) or Class A Preferred Shares of the applicable Series, as applicable, plus (ii) the number
 of Class A Ordinary Shares of the applicable Series which may be issued upon conversion of the Class B Ordinary Shares of the applicable
 Series. The number of Class A Preferred Shares of the applicable Series, if any, shall be limited to the number of Class A Preferred
 Shares which may be issued pursuant to the relevant Management Services Agreement. The number of Class B Ordinary Shares of the applicable
 Series shall be limited to up to 1,000. The number of Class C Ordinary Shares of the applicable Series shall be limited to one. The
 Shares of the Members for each Series shall be as set forth on Exhibit A attached to the Series Designation, which may be updated
 from time to time as set forth herein. The name and mailing address of each Member of each Series, or such Member's representative,
 shall be listed on the books and records of the Company and each Series maintained for such purpose by the Company and each Series,
 or the Transfer Agent.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon
 formation of each Series, the Initial Member shall be issued 1,000 Class B Ordinary Shares of such Series, representing 100% of the
 membership interests in the Series as of such date, in return for a capital contribution to such Series of $100, provided that such
 capital contribution may be distributed to the holder of Class B Shares upon request in whole or in part at any time after the Series
 has issued Class A shares.

(d) Notwithstanding
 any provision to the contrary in this Agreement, the Board shall have full power and authority to issue Class A Ordinary Shares of
 any Series and admit Members of a Series to the Company in accordance with the provisions of this Agreement.

(e) The
 holders of SPC Shares of an applicable Segregated Portfolio or the holder of Class A Preferred Shares of an applicable Series, if
 applicable, may elect to exchange their SPC Shares of such Segregated Portfolio or Class A Preferred Shares of such Series into Class
 A Ordinary Shares of the applicable Series, in whole or in part, at any time contemporaneously with or prior to the consummation
 of the Sale of the Series Artwork of such Series, subject to the terms and conditions herein, for no additional consideration.

(f) The
 Class B Members of an applicable Series may elect to convert their Class B Ordinary Shares of such Series into Class A Ordinary Shares
 of such Series, in whole or in part, at any time prior to the consummation of the Sale of the Series Artwork of such Series, subject
 to the terms and conditions herein, for no additional consideration pursuant and to the following conversion formula: The number
 of Class A Ordinary Shares of such Series issuable upon conversion of Class B Ordinary Shares of such Series shall equal (A) the
 Value Increase, multiplied by (B) the Conversion Percentage, multiplied by (C) 20%, divided by (D) the Class A Ordinary Share Value.
 For purposes herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Value
 Increase" means, the aggregate value of Shares of the applicable Series outstanding at such time on a fully diluted basis (including
 any shares issuable upon exchange of SPC Preferred Shares or Class A Preferred Shares, as applicable ("Exchange Shares")),
 minus the product of (A) the number of Class A Ordinary Shares of such Series outstanding at such time on a fully diluted basis (including
 Exchange Shares) and (B) $20.00, if such difference is positive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Conversion
 Percentage" means, (A) the number of Class B Ordinary Shares of the applicable Series being converted, divided by (B) the total
 number of Class B Ordinary Shares of such Series issued and outstanding (i.e. up to 1,000).

(iii) "Class
 A Ordinary Share Value" with respect to a Series means, as of the close of business on the day preceding the date, the volume
 weighted average trading price of the Class A Ordinary Shares of such Series on all trading platforms or trading systems on which
 the Class A Ordinary Shares of such Series are being traded over the forty-five (45) trading days then ended, provided, that if the
 total aggregate trading volume over such 45-trading-day period is less than 5% of the public float, such period shall be extended
 to the ninety (90) trading days then ended, provided, further, if the total aggregate trading volume over such 90-trading-day period
 is less than 5% of the public float, the holder of the Class B Ordinary Shares of such Series shall request that the Board obtain
 an appraisal of the value of the Class A Ordinary Shares of such Series from one or more independent nationally-recognized third
 party appraisal companies and such appraisal shall constitute the Class A Ordinary Share Value of such Series.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding
 anything herein to the contrary, the Board may determine to create and designate a single Class C Ordinary Share and, if the Board
 so determines, such single Class C Ordinary Share shall represent, and shall be deemed, the Class C Ordinary Share for each Series,
 whether then existing or created in the future. The Class C Ordinary Share will only be issued to, or subsequently transferred to,
 a Masterworks Investor, if any, and will have the right to remove and or replace all or any members of the Board of Managers and
 reconstitute the Board without "cause" for any reason, but shall otherwise have no economic interest. The Class C Ordinary
 Share of a Series, once issued, may be redeemed or cancelled by mutual agreement between the Class C Member of the applicable Series
 and the Company. If there are multiple Class C Ordinary Shares created, each Class C Ordinary Share must be held by the same holder.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Any
 investor in a Series Offering, generally cannot own, or be deemed to beneficially own, as "beneficial ownership" is determined
 pursuant to Section 13(d) and 13(g) of the Securities Act, more than 24.99% of the total number of Class A Ordinary Shares of a particular
 Series then outstanding. Such ownership limitation does not apply to any affiliate of Masterworks. The Board may waive such limit
 on a case-by-case basis in the Board's sole discretion. In addition, except as otherwise set forth in this Section 2.04(h),
 if a Member beneficially owns more than 10% of the Class A Ordinary Shares with respect to a Series offered in the applicable Series
 Offering, such Member acknowledges that the Member's name, address and holdings may be reported in the Company's ongoing
 SEC filings, including the beneficial ownership table in the Company's Annual Report on Form 1-K. If a Vote Limited Member
 submits an irrevocable request in writing to the Board to limit its voting rights to 10% or less of the Voting Shares of a Series,
 such Vote Limited Member's name, address and holdings may not be reported in the Company's ongoing SEC filings, unless
 such person is otherwise deemed to be an "affiliate" of the Company as defined in Rule 405 of the Securities Act. The
 determination of affiliate status for such purposes shall be made by the Board in its sole and absolute discretion and the Company
 or its transfer agent may require any shareholder that owns more than 10% of the Class A Ordinary Shares to provide a legal opinion
 and or other information it deems necessary or appropriate to determine such person's affiliate status. If any such shareholder
 owns more than 10% of the Class A Ordinary Shares and is deemed to be an "affiliate", notwithstanding the limit on voting,
 such person will be identified in the beneficial ownership table in the Company's Annual Report on Form 1-K.

Section 2.05 <u>Certificates and Representations of Shares.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Shares
 may be recorded in book entry form or may be evidenced by certificates or electronic or crypto tokens or coins, or in any other form,
 as determined by the Board as may be permitted by the Delaware Act. Notwithstanding anything to the contrary herein, unless the Board
 shall determine otherwise in respect of one or more classes of Shares of a Series or as may be required by the Depository with respect
 to any specific class of Shares of a Series, Shares shall not be evidenced by physical Certificates. No Member of any Series shall
 have the right to require the Company or any Series to issue physical Certificates representing Shares for any reason, except as
 may be required by applicable law. If the Board authorizes the issuance of Shares to any Person in the form of physical Certificates,
 the Company shall issue one or more Certificates in the name of such Person evidencing the number of such Shares being so issued.
 Certificates shall be executed on behalf of the Company or a Series by the Board. If and to the extent a Transfer Agent has been
 appointed with respect to any class or series of Shares of a Series, no Certificate representing such class or series of Shares of
 a Series shall be valid for any purpose until it has been countersigned by the Transfer Agent; provided, however, that if the Board
 elects to issue Shares in global form, the Certificates representing Shares shall be valid upon receipt of a certificate from the
 Transfer Agent certifying that the Shares have been duly registered in accordance with the directions of the Company. Any or all
 of the signatures required on the Certificate may be by facsimile. If any officer or Transfer Agent who shall have signed or whose
 facsimile signature shall have been placed upon any such Certificate shall have ceased to be such officer or Transfer Agent before
 such Certificate is issued by the Company or any Series, such Certificate may nevertheless be issued by the Company or any Series
 with the same effect as if such Person were such officer or Transfer Agent at the date of issue. Certificates for any class or series
 of Shares shall be consecutively numbered and shall be entered on the books and records of the Company and the applicable Series
 as they are issued and shall exhibit the holder's name and number and type of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 any mutilated Certificate is surrendered to the Company or the Transfer Agent, the appropriate officers on behalf of the Company
 and the applicable Series shall execute, and the Transfer Agent shall countersign and deliver in exchange therefor, a new Certificate
 evidencing the same number and class or series of Shares as the Certificate so surrendered. The appropriate officers on behalf of
 the Company and the applicable Series shall execute, and the Transfer Agent shall countersign and deliver, a new Certificate in place
 of any Certificate previously issued if the Record Holder of the Certificate: (i) makes proof by affidavit, in form and substance
 satisfactory to the Company and the applicable Series, that a previously issued Certificate has been lost, destroyed or stolen; (ii)
 requests the issuance of a new Certificate before the Company and the applicable Series has notice that the Certificate has been
 acquired by a purchaser for value in good faith and without notice of an adverse claim; (iii) if requested by the Company and the
 applicable Series, delivers to the Company and the applicable Series a bond, in form and substance satisfactory to the Company and
 the applicable Series, with surety or sureties and with fixed or open penalty as the Company and the applicable Series may direct
 to indemnify the Company and the applicable Series and the Transfer Agent against any claim that may be made on account of the alleged
 loss, destruction or theft of the Certificate; and (iv) satisfies any other reasonable requirements imposed by the Company and the
 applicable Series. If a Member fails to notify the Company and the applicable Series within a reasonable time after he has notice
 of the loss, destruction or theft of a Certificate, and a Transfer of the Shares represented by the Certificate is registered before
 the Company and the applicable Series or the Transfer Agent receives such notification, the Member shall be precluded from making
 any claim against the Company, the applicable Series or the Transfer Agent for such Transfer or for a new Certificate. As a condition
 to the issuance of any new Certificate under this Section 2.05, the Company and the applicable Series may require the payment of
 a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including
 the fees and expenses of the Transfer Agent) reasonably connected therewith.

Section 2.06 <u>Record Holders.</u> The Company and each Series shall be entitled to recognize the Record Holder as the owner of a Share of such Series and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such Share on the part of any other Person, regardless of whether the Company or any Series shall have actual or other notice thereof, except as otherwise provided by law or any applicable rule, regulation, guideline or requirement of any National Securities Exchange on which such Shares of such Series are listed for trading. Without limiting the foregoing, when a Person (such as a broker, dealer, bank, trust company or clearing corporation or an agent of any of the foregoing) is acting as nominee, agent or in some other representative capacity for another Person in acquiring and/or holding Shares of any Series, as between the Company and the applicable Series on the one hand, and such other Persons on the other, such representative Person shall be the Record Holder of such Shares of such applicable Series.

Section 2.07 <u>Registration and Transfer of Shares.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 Transfer of any Shares of a Series shall only be completed subject to the compliance by the Member and the proposed transferee with
 all applicable laws; and furthermore may only be completed in accordance with the provisions of this Agreement.

(b) Other
 than (i) any Transfer of Shares which is an Involuntary Transfer or (ii) any Transfer that occurs on an alternative trading system
 that has been approved by the Company and the applicable Series in writing, and Transfer of Shares of such Series shall be subject
 to the prior written approval of the Board, which the Board may give or withhold in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Board shall keep or cause to be kept on behalf of the Company and each Series a register (which may be in electronic form) that will
 provide for the registration and Transfer of Shares of each Series. The Board may appoint a Transfer Agent to act as registrar and
 transfer agent for the purpose of registering any class of Shares and Transfers of such class of Shares as herein provided. For Shares
 represented by Certificates, upon surrender of a Certificate for registration of Transfer of any Shares evidenced by a Certificate,
 the appropriate Officers of the Company and a Series shall execute and deliver, and in the case of Shares for which a Transfer Agent
 has been appointed, the Transfer Agent shall countersign and deliver, in the name of the holder or the designated transferee or transferees,
 as required pursuant to the Record Holder's instructions, one or more new Certificates evidencing the same aggregate number
 and type of Shares of the applicable Series as were evidenced by the Certificate so surrendered, provided that a transferor shall
 provide the address and facsimile number for each such transferee as set forth on Exhibit A to the applicable Series Designation
 at any time.

(d) Neither
 the Company nor any Series shall recognize any Transfer of Shares evidenced by Certificates until the Certificates evidencing such
 Shares are surrendered for registration of Transfer. No charge shall be imposed by the Company or any Series for such Transfer; provided,
 that as a condition to the issuance of Shares, whether or not such Shares are evidenced by Certificates, the Company and the applicable
 Series may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed with respect
 thereto. The Company's transfer agent may require a transferring shareholder to pay reasonable and customary fees in connection
 with any voluntary transfer of Class A Shares of any Series.

(e) By
 acceptance of the Transfer of any Share of any Series, each transferee of a Share of a Series (including any nominee holder or an
 agent or representative acquiring such Shares for the account of another Person) (i) shall be admitted to the Company and to the
 applicable Series as a Substitute Member of such Series with respect to the Shares of such Series so Transferred to such transferee
 when any such Transfer or admission is reflected in the books and records of the Company and the applicable Series or the Transfer
 Agent, as applicable, (ii) shall be deemed to agree to be bound by the terms of this Agreement, (iii) shall become the Record Holder
 of the Shares of such Series so transferred, (iv) grants powers of attorney to the Officers of the Company and such Series and any
 Liquidating Trustee, as specified herein, and (v) makes the consents and waivers contained in this Agreement. The Transfer of any
 Shares of a Series and the admission of any new Member of a Series shall not constitute an amendment to this Agreement.

(f) Nothing
 contained in this Agreement shall preclude electronic book-entry only Transfer of Shares or the settlement of any transactions involving
 Shares entered into through electronic systems maintained by the Administrator on behalf of the Company or any Series, facilities
 of the Depository or any National Securities Exchange on which such Shares are listed for trading.

&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Initial Member and its Affiliates shall not be permitted to Transfer any Shares of a Series that are Beneficially Owned by them prior
 to the one-year anniversary of the final closing of the applicable Series Offering, except to a Masterworks Affiliate or as required
 by law or in bankruptcy or similar proceeding, provided, however, notwithstanding the definition of the term "Transfer,"
 the Initial Member and its Affiliates shall be permitted, during such one-year period, to pledge any or all of such Shares of the
 applicable Series to unaffiliated third-party lenders and, for the avoidance of doubt, such lenders shall not be subject to the provisions
 of this Section 2.07(g) if they obtain Beneficial Ownership of such Shares of such applicable Series in connection with a default
 by the Initial Member and its Affiliates pursuant to the transactions in which such third-party lenders obtained such Shares.

(h) Any
 Class A shares of an applicable Series held by a Member that beneficially owns greater than 10% of the outstanding Class A shares
 of such Series, whether or not any of such shares constitute Voting Shares of such Series for purposes of this Agreement, shall bear
 a customary "restricted" legend, which may be a virtual legend, evidencing the restricted nature thereof. Such Member
 shall not be entitled to execute a voluntarily transfer of such shares through the ATS (or any similar system or market that permits
 transfers of unrestricted securities) or request removal of such restrictive legend on such shares, unless the Company, the applicable
 Series and its Transfer Agent are satisfied, in their sole and absolute discretion, that such proposed de-legending and/or transfer
 complies with applicable federal securities laws and the Company, the applicable Series and/or the Company's Transfer Agent
 shall be entitled to require the requesting Member to furnish the Company and the applicable Series with an opinion from counsel
 of national recognition in support of such request.

(i) The
 Class C Ordinary Share, once issued, can only be transferred between Masterworks affiliated entities, including from one Masterworks
 Investor to another.

(j) Any
 Transfer or attempted Transfer of any Share(s) of any Series in contravention of this Agreement shall be absolutely null and void *ab initio* and of no force or effect, on or against the Company, any Series, any Member of any Series, any creditor of the
 Company or any Series or any claimant against the Company or any Series, and may be enjoined, and shall not be recorded on the books
 and records of the Company or any Series. No distributions of cash or property of the Company or any Series shall be made to any
 transferee of any Share(s) or any Series which is/are Transferred in violation hereof, nor shall any such Transfer be registered
 on the books of the Company or any Series. The Transfer or attempted Transfer of any Share(s) or any Series in violation hereof shall
 not affect the Beneficial Ownership of such Share(s) of such Series, and, notwithstanding such Transfer or attempted Transfer, the
 Member of such Series making such prohibited Transfer or attempted Transfer shall retain the right to vote, if any, and the right
 to receive liquidation proceeds and any other distributions with respect to the Shares of such Series.

(k) A
 Member shall cease to be associated with a Series and to have the power to exercise any rights or powers of a Member with respect
 to such Series upon the assignment of all of the Member's Shares with respect to such Series. Any event under the Delaware
 Act or this Agreement that causes a member to cease to be associated with a Series shall not, in itself, cause such Member to cease
 to be associated with any other Series or terminate the continued membership of a Member in the Company or cause the termination
 of the Series, regardless of whether such Member was the last remaining member associated with such Series.

Section 2.08 <u>Voting.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless
 otherwise provided in this Agreement or any Series Designation, (i) each Voting Share of each Series shall be entitled to one vote
 for all matters submitted for the consent or approval of Members of the Company generally, (ii) each Voting Share (regardless of
 Series) shall vote together as a single class on all matters as to which all holders of Voting Shares are entitled to vote, (iii)
 Voting Shares of a particular Series shall be entitled to one vote for all matters submitted for the consent or approval of the Members
 of such Series. Except as otherwise set forth in this Agreement, the Voting Shares shall vote together as a single class on all matters
 submitted for approval of Members. Upon the issuance of the Class B Ordinary Shares of any Series, the Class B Ordinary Shares of
 such Series shall constitute Voting Shares of such Series and have the right to vote on any matter on which the Members overall,
 or the Members of such Series, are entitled to vote on hereunder or on which the Members overall, or the Members of such Series,
 are required to vote pursuant to the Delaware Act and shall be entitled to and shall constitute one (1) vote. Upon any issuance of
 any Class A Ordinary Shares of a Series, the Class B Ordinary Shares of such Series shall no longer constitute Voting Shares of such
 Series and shall have no further voting rights, either with respect to the applicable Series or the Company overall, except as specifically
 set forth herein or in a Series Designation, unless such right to vote is specifically required and mandated by the Delaware Act
 or as set forth herein.

(b) In
 determining any action or other matter to be undertaken by or on behalf of the Company overall, each Member shall be entitled to
 cast a number of votes equal to the number of Voting Shares that such Member holds, with the power to vote, at the time of such vote
 unless otherwise set forth in this Agreement. Unless otherwise set forth in this Agreement, or otherwise required by the Delaware
 Act, the taking of any action by the Company which required a vote of the Members as set forth above shall be authorized by the affirmative
 vote of a majority of the Voting Shares, subject to any approval of the Board as required herein.

(c) In
 determining any action or other matter to be undertaken by or on behalf of any Series, each Member of such Series shall be entitled
 to cast a number of votes equal to the number of Voting Shares of such Series that such Member holds, with the power to vote, at
 the time of such vote unless otherwise set forth in this Agreement. Unless otherwise set forth in this Agreement, or otherwise required
 by the Delaware Act, the taking of any action by any Series which required a vote of the Members of such Series as set forth above
 shall be authorized by the affirmative vote of a majority of the Voting Shares of such Series, subject to any approval of the Board
 as required herein.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding
 the forgoing, any Class A Shares of any Series issued to any Affiliate of the Administrator pursuant to the Management Services Agreements,
 as set forth in Section 2.04 or otherwise held by any Affiliate of the Administrator (the "Masterworks Shares"), shall
 not, while such Shares are Beneficially Owned by any Affiliate of the Administrator, be entitled to vote on any matter, as to any
 Series, on which the Class A Members of such Series are entitled or required to vote hereunder or pursuant to the Delaware Act, and
 shall not be considered in determining the existence of a quorum or in the total number of votes available or required hereunder
 or pursuant to the Delaware Act. Once the Masterworks Shares of a particular Series, if any, are Transferred to any Person who is
 not an Affiliate of the Administrator, the Masterworks Shares of such Series shall thereafter have all voting rights with respect
 to such Series that any other Voting Shares of such Series held by any Class A Member of such Series have hereunder or pursuant to
 the Delaware Act. In the event that the Delaware Act or any other law requires, at any time, that the Masterworks Shares of a particular
 Series vote on any matter notwithstanding the provisions herein, the Masterworks Shares of such Series shall be required to be, and
 shall be, voted in the same proportion as the Voting Shares of such Series that are not Masterworks Shares of such Series are voted
 by the Class A Members of such Series. Any Masterworks Shares shall bear a customary "restricted" legend, which may be
 a virtual legend, evidencing the restricted nature thereof.

(e) In
 addition to the other matters on which the Members holding Voting Shares have the right to vote as set forth herein, the approval
 of Members holding a majority of the Voting Shares of a Series shall be required for such Series to undertake any of the following
 actions, except as otherwise set forth herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) acquiring
 any additional material assets, other than those incidental to the direct or indirect ownership, maintenance and promotion of the
 Series Artwork or the eventual Sale of the Series Artwork for such Series and other than the ownership of any equity or membership
 interests of any subsidiary of the Company which owns or holds the Series Artwork for such Series;

(ii) conducting
 any business activities, except for activities relating to its direct or indirect investment in the Series Artwork for such Series
 and the ownership, maintenance and promotion of the Series Artwork for such Series or the eventual Sale of the Series Artwork for
 such Series; and

(iii) incurring
 any material loans or material borrowing arrangements to be entered into by such Series as a debtor other than those incidental to
 the direct or indirect investment in the Series Artwork for such Series and the ownership, maintenance and promotion of the Series
 Artwork for such Series or the eventual Sale of the Series Artwork for such Series.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Each
 Series will own, directly or indirectly, its Series Artwork for an indefinite period following the closing of the Series Offering,
 although it may sell its Series Artwork at any time following the closing of the Series Offering for such Series.

(g) In
 any vote of the Voting Members pursuant to Section 2.08(e), any Shares that are Beneficially Owned by the Initial Member or any Affiliate
 of the Initial Member, shall not be entitled to vote of any such matter and shall not be considered in determining the total number
 of votes available or required hereunder or pursuant to the Delaware Act, provided, however, that, in the event that the Delaware
 Act or any other law requires that such Shares that are Beneficially Owned by the Initial Member or any Affiliate of the Initial
 Member vote on any matter notwithstanding this Section 2.08(g), such Shares shall be required to be, and shall be, voted in the same
 proportion as the Voting Shares that are Beneficially Owned by Members holding Voting Shares other than the Initial Member or any
 Affiliate of the Initial Member.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Any
 member that beneficially owns 5% or more of the Class A shares (excluding shares beneficially owned by Masterworks) may provide the
 Company with a Vote Limit Certificate in the form of Exhibit B that from the effective date set forth in such notice (or if no such
 effective date is indicated, the date such notice is received by the Company) such Member shall be subject to a Vote Limit. Any shares
 beneficially owned by such Vote Limited Member in excess of the Vote Limit shall not constitute Voting Shares for any purposes of
 this Agreement for so long as such shares are beneficially owned by such Vote Limited Member or any affiliate of such Vote Limited
 Member.

Section 2.09 <u>Removal or Replacement of a Manager.</u> Any Manager may be removed or replaced without "Cause" at any time by a majority of the Board and each Manager may be removed and or replaced and the Board can be reconstituted for any reason by the Class C Member, if any. In addition, any Manager may be removed for "Cause" upon the approval of Voting Members holdings at least two-thirds of all of the Voting Shares of all of the Series then existing, all voting as one group and one class. For purposes herein, "Cause" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 commission by the applicable Manager of fraud, gross negligence or willful misconduct;

(b) the
 conviction of the applicable Manager of a felony;

(c) a
 material violation by the applicable Manager of any applicable law that has a material adverse effect on the business of the Company
 and all of the Series, overall; or

(d) the
 bankruptcy or insolvency of the applicable Manager.

Section 2.10 <u>Withdrawal or Removal and Replacement of Administrator.</u> The Administrator may withdraw for any reason upon notice to the Initial Member, provided that such withdrawal shall be effective only following a Sale of the Series Artwork as to each Series then existing and distribution of the proceeds. The Administrator may be removed and replaced at any time for any reason with or without approval of the Board upon the affirmative vote of Voting Members holdings at least two-thirds of all of the Voting Shares of each Series separately as a class and all of the Series then existing, all voting as one group and one class.

Section 2.11 <u>Reliance by Third Parties.</u> Notwithstanding anything to the contrary in this Agreement, any Person dealing with the Company or any Series shall be entitled to assume that the Board and any Officer of the Company or any Series has full power and authority to encumber, sell or otherwise use in any manner any and all assets of the Company or such Series and to enter into any contracts on behalf of the Company or such Series, and such Person shall be entitled to deal with the Board or any Officer as if it were the Company's or such Series' sole party in interest, both legally and beneficially. Each Member hereby waives, to the fullest extent permitted by law, any and all defenses or other remedies that may be available against such Person to contest, negate or disaffirm any action of the Board or any Officer in connection with any such dealing. In no event shall any Person dealing with the Board or any Officer or its representatives be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the Board or any Officer or its representatives. Each and every certificate, document or other instrument executed on behalf of the Company or any Series by the Board or any Officer or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (a) at the time of the execution and delivery of such certificate, document or instrument, this Agreement were in full force and effect, (b) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Company or any Series and (c) such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Company or the applicable Series.

Section 2.12 <u>Books and Records.</u> The Board shall keep or cause to be kept at the principal office of the Company or such other place as determined by the Board appropriate books and records with respect to the business of the Company and each Series, including all books and records necessary to provide to the Members any information required to be provided pursuant to this Agreement or applicable law. Any books and records maintained by or on behalf of the Company or any Series in the regular course of its business, including the record of the Members, books of account and records of Company or Series proceedings, may be kept in such electronic form as may be determined by the Board; provided, that the books and records so maintained are convertible into clearly legible written form within a reasonable period of time. Each Member shall have the right, upon reasonable demand for any purpose reasonably related to the Member's interest as a member of the Company (as reasonably determined by the Board) to such information pertaining to the Company as a whole and to each Series in which such Member has an Interest, to the extent and subject to the limitations set forth in Section 18-305 of the Delaware Act; provided, that prior to such Member having the ability to access such information, the Board shall be permitted to require such Member to enter into a confidentiality agreement in form and substance reasonably acceptable to the Board. For the avoidance of doubt, except as may specifically be permitted or required herein, a Member shall only have access to the information (including any Series Designation) referenced with respect to any Series in which such Member is a holder of Shares and not to any Series in which such Member does not hold any Shares.

Section 2.13 <u>Bank Accounts</u>. Funds of each Series formed under the Company may be deposited with banks or other financial institutions in such account(s) of the Company as may be determined by the Board from time to time. The Board shall ensure records are maintained for each Series that account for the assets associated with that Series separately from the assets of the Company or any other Series including records of all funds received and disbursed by each Series from bank accounts of the Company.

**Article III. Capital Contributions; Capital Account; Distributions; Allocations**

Section 3.01 <u>Capital Contributions.</u> Persons seeking to become a Member shall be required to purchase or acquire Shares with respect to a particular Series and make capital contributions in such forms and in such amounts and at such times as the Board may require, if any, in its sole discretion with respect to such Series (any, with respect to each applicable Series, a "Capital Contribution") whereupon a capital account for a new Member with respect to such Series will be established, and, if applicable, accreted, in the amount of such Member's Capital Contribution or based upon the fair market value of property contributed, and the new Member shall be issued a number of Class A Ordinary Shares of such Series as determined by the Board, and the Board shall update Exhibit A attached to the applicable Series Designation accordingly. The provisions of this Section 3.01 are solely intended for the benefit of the Members and, to the fullest extent permitted by law, shall not be construed as conferring any benefit upon any creditor of the Company or any Series (and no such creditor shall be a third-party beneficiary of this Agreement). The Members shall have no duty or obligation to any creditor of the Company to make any contribution to the Company or to any Series.

Section 3.02 <u>Capital Account.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) There
 shall be established for each Member of each Series on the books of the Company and the applicable Series, a capital account in accordance
 with Section 704 of the Code and the Treasury Regulations promulgated thereunder (as to each such Series, a "Capital Account").

(b) At
 the close of each Fiscal Year of a Series, and at certain other periods, as in the case of a withdrawal, there shall be determined
 for each Member of such Series, such Member's closing Capital Account with respect to such Series for such period which shall
 be determined by adjusting such Member's opening Capital Account with respect to such Series for such period, as the case may
 be, as follows: (i) by increasing such Member's Capital Account with respect to such Series by (A) such Member's allocable
 share of each item of such Series' income and gain for such period (allocated in accordance with Section 3.02(d)), and (B)
 the Capital Contributions with respect to such Series, if any, made by such Member with respect to such Series during such period
 and (ii) by decreasing such Member's Capital Account with respect to such Series by (A) the amount of cash or the Fair Value
 of any property distributed in kind to such Member with respect to such Series by such Series during such period and (B) such Member's
 allocable share of each item of such Series' loss and deduction for such period (allocated in accordance with Section 3.02(d)).
 Each Member's Capital Account with respect to each Series shall be further adjusted with respect to any special allocations
 or adjustments pursuant to this Agreement.

(c) In
 the event the Company or the applicable Series is terminated during any period in accordance with Article VI, the closing Capital
 Accounts with respect to the applicable Series of the Members for such Fiscal Year of such Series then completed will be determined
 as of the date of termination of the Company or the Series, as applicable, in the manner provided in this Section 3.02.

(d) For
 each Fiscal Period of a Series, as of the end of such Fiscal Period, each item of income, deduction, gain or loss of the applicable
 Series (determined in accordance with U.S. tax principles as applied to the maintenance of capital accounts) shall be allocated among
 the Capital Accounts with respect to such Series of the Members in such Series in such manner that as closely as possible gives economic
 effect to the provisions of Section 3.03 and Section 6.03(b).

(e) If
 all or a portion of a Member's Shares with respect to a Series are Transferred in accordance with the terms of this Agreement,
 the transferee shall succeed to the Capital Account with respect to the applicable Series of the transferor to the extent it relates
 to the Shares of such Series so transferred.

Section 3.03 <u>Distributions</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 Series, in the sole discretion of the Board, in the event there are Available Funds with respect to such Series, may make distributions
 thereof ("Distributions") to Members of such Series as set forth herein. "Available Funds" means, as to each
 Series, the gross cash receipts from activities of such Series, less the sum of: (1) payments of debts or obligations of such Series;
 (2) costs and expenses incurred in the conduct of such Series' business; and (3) amounts reserved to meet the reasonable needs
 of such Series, if any. Notwithstanding anything herein to the contrary, no Member of a Series may receive a Distribution with respect
 to such Series to the extent that, after giving effect to such Distribution, all liabilities of the applicable Series (other than
 to a Member on account of its Shares in such Series and liabilities for which the recourse of creditors is limited to specific property
 of such Series) exceed the fair market value of the assets of such Series (except that property that is subject to a liability for
 which the recourse of the creditors is limited to such property shall be included in the assets of such Series only to the extent
 the Fair Market Value of such property exceeds that liability). In the event of a Distribution to a Member of a Series that would
 be deemed violative of applicable law, the applicable Member may be required to return such Distribution to the applicable Series
 for the benefit of such Series. Each Distribution in respect of any Shares of a Series shall be paid by the Series, directly or through
 the Transfer Agent (acting as paying agent) or through any other Person or agent, only to the Record Holder of such Shares of the
 applicable Series as of the record date set for such Distribution with respect to such Series as determined by the Board. Such payment
 shall constitute full payment and satisfaction of such Series' and the Company's liability in respect of such payment,
 regardless of any claim of any Person who may have an interest in such payment by reason of an assignment or otherwise.

(b) If
 the Board declares and determines to make any Distribution of cash or other assets to the Members of a Series, all such Distributions
 shall be made to the Members of such Series as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If
 the Series has issued Class A Preferred Shares and such shares have not been exchanged for Class A Ordinary Shares, Available Funds
 will be distributed to the holder of the Class A Preferred Shares until the aggregate Distributions (including all prior Distributions
 made pursuant to this Section 3.03, if any) paid per Class A Preferred Share of such Series equals $20.00.

(i) If
 any Available Funds remain undistributed, pro rata in proportion to the number of Class A Ordinary Shares of such Series held by
 each such Member of such Series until the aggregate Distributions (including all prior Distributions made pursuant to this Section
 3.03, if any) paid per Class A Ordinary Share of such Series equals $20.00; and

(iii) In
 the event any funds remain available for distribution after payments referenced in Section 3.03(b)(i) and Section 3.03(b)(ii), (1)
 80% of such remaining amount to the Class A Members of such Series, pro rata in proportion to the number of Class A Shares of such
 Series held by each such Member of such Series and (2) 20% of such remaining amount to the Class B Members of such Series, pro rata
 in proportion to the number of Class B Ordinary Shares of such Series held by each such Member of such Series, *provided* that
 the percentage of such remaining amount required to be distributed to the Class B Members of such Series shall be reduced (and the
 percentage distributed to the Class A Members of such Series shall be correspondingly increased) to the extent any Class B Ordinary
 Shares of such Series have been previously converted into Class A Ordinary Shares of such Series, by the percentage of Class B Ordinary
 Shares of such Series previously converted into Class A Ordinary Shares of such Series. Upon mutual agreement of the Class B Members
 of such Series and the Company, the Class B Ordinary Shares of such Series may be redeemed by the Company for a nominal amount.

If the Series has issued Class A Preferred Shares and if the sale of the Artwork of a Series were to result in a distribution to the holders of Class A Shares of a Series of equal to or greater than $20.00 per share (i.e. a "profitable sale"), the holder of Class A Preferred Shares will convert its Class A Preferred Shares for Class A Ordinary Shares prior to a distribution to shareholders and such shareholder will receive proceeds as a holder of Class A Ordinary Shares of the Series consistent with the mechanics set forth above.

If the Series has issued Class A Preferred Shares and and if the sale of the Artwork of a Series were to result in a distribution to the holders of Class A Shares of a Series of less than $20.00 per share (i.e. a "loss sale"), the holder of Class A Preferred Shares shall receive up to $20.00 per Class A Preferred Share, after which any remaining proceeds will be distributed to holders of Class A Ordinary Shares of the Series. For the avoidance of doubt, if the holder of Class A Preferred shares converts its Class A Preferred Shares into Class A Ordinary Shares of a Series, such shareholder shall participate in a distribution or liquidation solely as a holder of Class A Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(c) By
 way of examples and not limitation, (i) in the event of a Distribution pursuant to Section 3.03(b)(iii) prior to the conversion of
 any Class B Ordinary Shares of a Series, such Distribution shall be apportioned 20% to the Class B Ordinary Shares of such Series
 and 80% to the Class A Shares of such Series, pro rata, and (ii) in the event of a Distribution pursuant to Section 3.03(b)(ii) following
 the conversion of 25% of the Class B Ordinary Shares of a Series, the Distribution apportioned to the Class B Ordinary Shares of
 such Series shall be proportionately reduced by 25% of 20%, to 15%.

(d) Except
 as otherwise provided herein or as required by law, no Member shall be required to restore or repay to the Company or to any Series
 any funds properly distributed to it pursuant to this Section 3.03.

(e) The
 Company shall not make a distribution with respect to a Series to a Member to the extent that at the time of the distribution, after
 giving effect to the distribution, all liabilities of such Series, other than liabilities to members on account of their limited
 liability company interests with respect to such Series and liabilities for which the recourse of creditors is limited to specified
 property of such Series, exceed the fair value of the assets associated with such Series, except that the fair value of property
 of such Series that is subject to a liability for which the recourse of creditors is limited shall be included in the assets associated
 with such Series only to the extent that the fair value of that property exceeds that liability. For purposes of the immediately
 preceding sentence, the term "distribution" shall include any amount paid in any redemption, but shall not include amounts
 constituting reasonable compensation for present or past services or reasonable payments made in the ordinary course of business
 pursuant to a bona fide retirement plan or other benefits program. A Member who receives a distribution in violation of this Section
 3.03(e), and who knew at the time of the distribution that the distribution violated this Section 3.03(e), shall be liable to the
 Series for the amount of the distribution. A Member who receives a distribution in violation of this Section 3.03(e), and who did
 not know at the time of the distribution that the distribution violated this Section 3.03(e), shall not be liable for the amount
 of the distribution. Subject to Section 18-607(c) of the Delaware Act, which shall apply to any distribution made with respect to
 a Series under this Section 3.03(e), this Section 3.03(e) shall not affect any obligation or liability of a member under an agreement
 or other applicable law for the amount of a distribution.

(f) Subject
 to Section 303(e), the Board may determine at any time following the issuance of Class A shares upon request of the Class B Member
 to declare a distribution to the Class B Member of any Series in the amount of the initial capital contribution to such Series.

Section 3.04 <u>Tax Allocations.</u> Each item of income, gain, loss or deduction recognized by each Series shall be allocated among the Members of such Series for U.S. federal, state and local income tax purposes in the same manner that each such item is allocated to the Member's Capital Accounts with respect to such Series pursuant to Section 3.02(d) or as otherwise provided herein, provided that the Board may adjust such allocations as long as such adjusted allocations have substantial economic effect or are in accordance with the interests of the Members in such Series, in each case within the meaning of the Code and the Treasury Regulations. Tax credits and tax credit recapture shall be allocated in accordance with the interests of such Members in the applicable Series as provided in Treasury Regulations section 1.704-1(b)(4)(ii). Items of taxable income, gain, loss and deduction with respect to any property (other than cash) contributed to the capital of the applicable Series or revalued shall, solely for tax purposes, be allocated among the Members of such Series, as determined by the Board in accordance with Section 704(c) of the Code, so as to take account of any variation between the adjusted basis of such property to the applicable Series for U.S. federal income tax purposes and its fair market value at the time of contribution or revaluation, as the case may be. All of the Members agree that the Board is authorized to select the method or convention, or to treat an item as an extraordinary item, in relation to any variation of any Member's interest in any Series described in section 1.706-4 of the Treasury Regulations in determining the Members' distributive shares of a Series' items. All matters concerning allocations for U.S. federal, state and local and non-U.S. income tax purposes, including accounting procedures, not expressly provided for by the terms of this Agreement shall be determined by the Board in its sole discretion. Each Class B Ordinary Share of each Series is intended to be treated as a profits interest for U.S. federal income tax purposes, and all of the Members agree to report consistently with, and to take any action requested by the Board to ensure, such treatment.

**Article IV. Liability; Indemnification**

Section 4.01 <u>Liability of a Member.</u> The liability of each Member shall be limited as provided in the Delaware Act and as set forth in this Agreement. No Member of a Series shall be obligated to restore by way of Capital Contribution with respect to such Series or otherwise any deficits in its Capital Account (if such deficits occur) with respect to such Series.

Section 4.02 <u>Exculpation and Indemnification.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) No
 Protected Person shall be liable to the Company or to any Series or any Manager or any other Member of any Series for any action
 taken or omitted to be taken by it or by other Person with respect to the Company or any Series, including any negligent act or failure
 to act, except in the case of a liability resulting from such Protected Person's own actual fraud, gross negligence, willful
 misconduct, bad faith, breach of fiduciary duty, reckless disregard of duty or any intentional and material breach of this Agreement
 or conduct that is subject of a criminal proceeding (where such Protected Person has reasonable cause to believe that such conduct
 was unlawful). With the prior consent of the Board, any Protected Person may consult with legal counsel and accountants with respect
 to Company and Series affairs (including interpretations of this Agreement) and shall be fully protected and justified in any action
 or inaction which is taken or omitted in good faith, in reliance upon and in accordance with the opinion or advice of such counsel
 or accountants. In determining whether a Protected Person acted with the requisite degree of care, such Protected Person shall be
 entitled to rely on written or oral reports, opinions, certificates and other statements of the directors, officers, employees, consultants,
 attorneys, accountants and professional advisors of the Company and of any Series selected with reasonable care; provided that no
 such Protected Person may rely upon such statements if it believed that such statements were materially false.

(b) To
 the fullest extent permitted by law, each Series shall indemnify, hold harmless, protect and defend each Protected Person against
 any losses, claims, damages or liabilities, including reasonable legal fees, costs and expenses incurred in investigating or defending
 against any such losses, claims, damages or liabilities or in enforcing a Protected Person's right to indemnification under
 this Agreement, and any amounts expended in respect of settlements of any claims approved by the Board (collectively, "Liabilities"),
 to which any Protected Person may become subject (i) by reason of any act or omission or alleged act or omission (even if negligent)
 arising out of or in connection with the activities of such Series; or (ii) by reason of the fact that it is or was acting in connection
 with the activities of such Series in any capacity or that it is or was serving at the request of such Series as a partner, shareholder,
 member, director, officer, employee, or agent of any Person; unless, such Liability results from such Protected Person's own
 actual fraud, gross negligence, willful misconduct, bad faith, breach of fiduciary duty, reckless disregard of duty or intentional
 and material breach of this Agreement or conduct that is subject of a criminal proceeding (where such Protected Person has reasonable
 cause to believe that such conduct was unlawful) with respect to such Series.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Administrator may, on behalf of any Series, reimburse (and/or advance to the extent reasonably required) each Protected Person for
 reasonable legal or other costs and expenses (as incurred) of such Protected Person in connection with investigating, preparing to
 defend or defending any claim, lawsuit or other proceeding relating to any Liabilities for which the Protected Person may be indemnified
 pursuant to this Section 4.02 and for all costs and expenses, including fees, expenses and disbursements of attorneys, reasonably
 incurred by such Protected Person in enforcing the indemnification provisions of this Section 4.02; provided, that such Protected
 Person executes a written undertaking to repay the applicable Series for such reimbursed or advanced costs and expenses if it is
 finally judicially determined that such Protected Person is not entitled to the indemnification provided by this Section 4.02. Upon
 any liquidation of the applicable Series or the Company overall, such reimbursements or advancement of expenses shall be reimbursed
 by the applicable Series to the Administrator prior to any other distributions hereunder.

(d) The
 provisions of this Section 4.02 shall continue to afford protection to each Protected Person regardless of whether such Protected
 Person remains in the position or capacity pursuant to which such Protected Person became entitled to indemnification under this
 Section 4.02 and regardless of any subsequent amendment to this Agreement; provided, that, no such amendment shall reduce or restrict
 the extent to which these indemnification provisions apply to actions taken or omissions made prior to the date of such amendment.

(e) Any
 indemnification under this Section 4.02 or otherwise shall be paid out of and to the extent of the applicable Series' assets
 only and to the extent any such indemnification relates to multiple Series, the Board shall, in its sole and absolute discretion,
 determine the method by which to allocate such indemnification to the respective Series.

**Article V. Accounting; Financial and Tax Matters**

Section 5.01 <u>Accounting Basis.</u> The Company and each Series shall use such method of accounting as may be determined by the Board that is consistent with United States generally accepted accounting principles or such other accounting methods and conventions as the Board may from time to time determine, provided, the Company financial statements shall be prepared in a manner that complies with applicable requirements of the Securities and Exchange Commission.

Section 5.02 <u>Tax Matters.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Board (shall designate a Person as the partnership representative of the Company and of each Series for purposes of Section 6223
 of the Code ("Partnership Representative") and any similar provision under any state or local or non-U.S. tax laws, and
 such Person shall be responsible for acting as the liaison between the Company, any Series, and the Internal Revenue Service ("Service").
 The Partnership Representative shall have the exclusive authority and discretion to determine all matters and shall be authorized
 to take any actions necessary with respect to preparing and filing any U.S. federal, state or local or non-U.S. tax returns of the
 Company or any Series, to make or cause the Company and any Series to make any elections required or permitted to be made by the
 Company or any Series under any provisions of the Code or any other applicable laws and has the sole authority under the Code to
 deal with the Service regarding any audit, examination or investigation (including any judicial or administrative proceeding) of
 the Company or any Series by any U.S. federal, state or local or non-U.S. taxing authority ("Tax Proceeding") to the
 exclusion of all Members. At any time during an audit by the Service of the Company or any Series, the Board shall have the authority
 to remove, with or without cause, the Partnership Representative and appoint a replacement Partnership Representative.

(b) Each
 of the Members consents to and agrees to become bound by all actions of the Partnership Representative, including any contest, settlement
 or other action or position which the Partnership Representative may deem proper under the circumstances. The Members specifically
 acknowledge, without limiting the general applicability of this Section 5.02, that the Partnership Representative will not be liable,
 responsible or accountable in damages or otherwise to the Company, to any Series or any Member with respect to any action taken by
 it in its capacity as a Partnership Representative, except for bad faith, fraud, gross negligence, willful misconduct or breach of
 fiduciary duty. All reasonable out-of-pocket expenses incurred by the Partnership Representative in such capacity will be considered
 expenses of the Company for which the Partnership Representative will be entitled to full reimbursement by each of the Series in
 a manner that is fair and equitable as determined by the Board.

(c) In
 connection with any Tax Proceeding, the Partnership Representative shall resolve each issue in the Tax Proceeding only in accordance
 with the affirmative accession of the Board to the advice of the Partnership Representative made, either independently or in consultation
 with the Company's and any Series' tax preparer, after appropriately articulating to it the issues involved and the dynamics
 of the impact upon the Company, each Series and the Members respective to any such proposed posture.

(d) If,
 in connection with a Tax Proceeding, the Service assesses a tax against the Company or any Series, the Partnership Representative,
 acting under Section 6225(c)(2) of the Code, may require all of the Members (or applicable Members), or Persons who were previously
 Members (or applicable Members) as to an applicable Reviewed Year but not as of an applicable Adjustment Year, and the Persons signing
 this Agreement as a condition to becoming a Member hereby agree in such case, to file amended tax returns for the Reviewed Year and
 to pay their share of such assessed tax for such applicable period, in proportion to the share of partnership income or loss ascribed
 to each for such year, or, as necessary, upon such substantially similar allocation basis as the former basis of allocation may under
 then existing circumstances be required to be modified to address in a case in which the obligated Person would not as of such an
 applicable Adjustment Year then be a Member. This provision shall survive each Person's cessation as a Member of any Series
 or any amendment or termination of this Agreement for so long as a return of a Reviewed Year of the Company or any Series as to which
 any Person was a Member of any Series would be open to audit, and each Person signing this Agreement as a Member hereby agrees to
 indemnify the Company, each Series of which they are a Member, and the other Members from and against any amounts of assessed taxes
 as they would be otherwise obligated to pay in accordance with this Section 5.02, in a case in which such Person would not do so,
 as well as against all reasonable attorneys' fees and costs that would be incurred by the Company or any Series or such other
 one or more Members in the event undertakings, including legal proceedings, to enforce such obligation hereunder against such Person
 were commenced.

&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Members acknowledge that the Board reserves the right to supplement or amend any applicable provisions of this Agreement, including
 as to this Section 5.02, to address such additional processes or procedures as may be indicated as such unresolved issues are prospectively
 addressed as to reasonably facilitate the Company's and each Series' compliance with the Code.

(f) The
 Members shall provide the Company and each Series with such information, which may be necessary or desirable in connection with preparing
 and filing tax elections or otherwise in connection with the compliance with applicable tax laws, including providing information
 in connection with Section 743 of the Code and elections permitted thereunder. The Board shall cause to be prepared and filed all
 tax returns of the Company and any Series that are required for U.S. federal, state or local or non-U.S. tax purposes and shall make
 all determinations as to tax elections by the Company and any Series. The Company and each Series shall use reasonable efforts to
 furnish to all Members tax information as is reasonably required for U.S. federal, state and local income tax reporting purposes
 as soon as practicable following the end of the fiscal year. Each Member shall be required to report for all tax purposes consistently
 with such information provided by the Company and any Series.

(g) Notwithstanding
 anything otherwise to the contrary herein, the Board is authorized to take any action that may be required to cause the Company and
 each Series to comply with any withholding or other similar requirements established pursuant to the Code or any other provision
 of U.S. federal, state or local or non-U.S. tax law or otherwise. To the extent the Company or any Series is required to or elects
 to withhold and pay over or otherwise pay any withholding or other taxes payable, or required to be deducted, by the Company or any
 Series or any of their respective Affiliates pursuant to the Code or any provision of U.S. federal, state or local or non-U.S. tax
 law or otherwise, attributable to a Member (including taxes attributable to income or gain allocable to such Member) or resulting
 from such Member's participation in the Company or any Series or a Transfer to such Member, the Board may treat the amount
 withheld as a distribution of cash pursuant to Section 3.03 to the extent such Member would have received a cash distribution but
 for such withholding or other taxes. To the extent that such payment exceeds the cash distribution that such Member would have received
 but for such withholding or other taxes, the Board shall notify such Member as to the amount of such excess and such Member shall
 make a prompt payment to the applicable Series of such amount by wire transfer, which payment shall not constitute a Capital Contribution
 of such Member to the applicable Series.

**Article VI. Dissolution; Redemption; Winding Up; Termination**

Section 6.01. <u>Dissolution.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company as a whole shall dissolve and commence its winding up upon the first to occur of the following (each, a "Company Dissolution
 Event"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) upon
 the determination of the Voting Members of all of the Series, voting as one class, with the approval of the Board, at any time;

(ii) the
 insolvency or bankruptcy of the Company;

(iii) the
 sale of all or substantially all of the assets of each of the Series; or

(iv) the
 entry of a decree of judicial dissolution for the Company under Section 18-802 of the Delaware Act.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless
 otherwise provided in a Series Designation, a Series shall terminate and a Series commence its winding up upon the first to occur
 of the following (such events, together with the events set forth in Section 6.01(c), each a "Series Dissolution Event"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) upon
 the determination of the Voting Members of such Series with the approval of the Board, at any time;

(ii) the
 insolvency or bankruptcy of such Series;

(iii) the
 sale of all or substantially all of such Series' assets (including following a dissolution of the Segregated Portfolio owned
 by the Series);

(iv) an
 event set forth as an event of termination of such Series in the Series Designation establishing such Series; or

(v) at
 any time that there are no Members of such Series, unless the business of such Series is continued in accordance with the Delaware
 Act.

&nbsp;&nbsp;&nbsp;&nbsp;(c) A
 "Series Dissolution Event" shall also occur upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 termination of such Series under Section 18-215(b)(ii) of the Delaware Act; and

(ii) the
 occurrence of a Company Dissolution Event, which shall result in a Series Dissolution Event as to all Series then existing.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 dissolution of the Company or any Series pursuant to Section 18-801(a)(3) of the Delaware Act shall be strictly prohibited.

(e) Subject
 to Section 18-801 of the Delaware Act, a Series may be terminated and its affairs wound up without causing the dissolution of the
 Company. The termination of a Series shall not affect the limitation on liabilities of such series provided by the Delaware Act or
 this Agreement.

Section 6.02. <u>Redemption.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon
 the occurrence of the Sale of the Series Artwork with respect to a Series, such Series shall use its reasonable best efforts to repurchase
 and redeem all of the Class A Ordinary Shares of such Series then outstanding (the "Redemption Shares") from each Class
 A Member of such Series for an amount per Class A Ordinary Share of such Series equal to the Liquidation Price applicable to such
 Series (each, a "Redemption"). The Redemption of any Class A Ordinary Shares of a Series shall be effected by such Series
 making payment of the applicable Liquidation Price to the account of the Member of such Series (or to a custodian or agent for the
 benefit of the Member of such Series) or by such other means as the Board reasonably determines and the Class A Ordinary Share(s)
 of such Series for which the liquidation amount has been paid shall be deemed to be retired and canceled immediately upon the making
 of such payment.

(b) Notwithstanding
 anything to the contrary in this Agreement, the Redemption with respect to a Series shall be completed no later than one day prior
 to the date a liquidating distribution with respect to such Series is required to be made pursuant to Section 6.03 (the "Redemption
 End Date").

(c) To
 the extent that the Redemption is not complete as of the Redemption End Date, any Class A Members of the applicable Series remaining
 shall be paid a liquidating distribution equal to the Liquidation Price per Share of the applicable Series in accordance with Section
 6.03.

(d) No
 monies shall be distributed in connection with the Redemptions to the Administrator, the Initial Member or their Affiliates in respect
 of Shares of the applicable Series owned by them and such funds shall only be distributed in connection with a liquidating distribution
 pursuant to Section 6.03.

(e) No
 Series shall engage in a Redemption unless the applicable Series has determined that (i) the Liquidation Price payable in the Redemption
 will be the same as the amount payable per Class A Ordinary Share of such Series in a liquidating distribution and (ii) no liabilities,
 obligations or claims (actual or contingent) of such Series, other than claims of Members of such Series with respect to Shares of
 such Series, exist, will be incurred or are reasonably likely to be asserted against such Series and the applicable Series shall
 have obtained reasonable assurances from the Administrator that any liabilities, obligations or claims, if asserted, would be the
 sole and absolute responsibility of the Administrator pursuant to the Management Services Agreement, irrespective of the nature or
 magnitude of such liabilities, obligations or claims.

(f) Except
 as otherwise provided herein or as required by law, no Member shall be required to restore or repay to any Series any funds properly
 distributed to it pursuant to this Section 6.02.

Section 6.03. <u>Winding Up and Termination of a Series.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 to the extent set forth in Section 6.02, upon the occurrence of a Series Dissolution Event, the property and business of the applicable
 Series shall be wound up by the Board or, in the event of the unavailability of the Board, by a Person designated as a liquidating
 trustee by the Board (the Board or such liquidating trustee, the "Liquidating Trustee"). Subject to the requirements
 of applicable law and the further provisions of this Section 6.03, the Liquidating Trustee shall have discretion in determining whether
 to sell or otherwise dispose of all Series Property for the applicable Series or to distribute the same in kind and the timing and
 manner of such disposition or distribution. While the applicable Series continues to hold Series Property, the Liquidating Trustee
 may in its discretion expend funds, acquire additional assets and borrow funds. The Liquidating Trustee may also authorize the payment
 of fees and expenses reasonably required in connection with the winding up of the applicable Series and any fees and expenses payable
 pursuant to any agreement to which the applicable Series is party.

(b) Within
 a reasonable period of time following the occurrence of a Series Dissolution Event, after allocating all items of income, gain, loss
 or deduction for such Series pursuant to Section 3.04, all of the Series Property of the applicable Series (except for assets reserved
 pursuant to Section 6.04) shall be applied and distributed in the following manner and order of priority: First, to the claims of
 all creditors of the applicable Series (including Members except to the extent not permitted by law) shall be paid and discharged
 other than liabilities for which reasonable provision for payment has been made; and, second, to the Members of such Series in the
 same manner as Distributions under Section 3.03. Notwithstanding anything to the contrary in this Agreement, liquidating distributions
 shall be made no later than the last to occur of (x) 90 days after the date of disposition (including pursuant to Section 6.04 of
 the last remaining asset of the applicable Series and (y) the end of the applicable Series' taxable year in which the disposition
 referred to in clause (x) shall occur.

(c) The
 Liquidating Trustee shall allocate securities for distribution in kind to the Members of the applicable Series. Notwithstanding any
 other provision of this Agreement, the amount by which the Fair Value of any property to be distributed in kind to the Members of
 the applicable Series (including property distributed in liquidation and property distributed pursuant to Section 3.03) exceeds or
 is less than the adjusted basis of such property shall, to the extent not otherwise recognized by the applicable Series, be taken
 into account in computing income, gains and losses of the applicable Series for purposes of crediting or charging the Capital Account
 of, and distributing proceeds to, the Members, in each case of such Series, pursuant to this Agreement.

(d) When
 the Liquidating Trustee has completed the winding up described in this Section 6.03, the Series Designation for the applicable Series
 shall be deemed terminated and such Series shall no longer constitute a Series of the Company.

Section 6.04. <u>Assets Reserved and Pending Claims.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) If,
 upon the occurrence of a Series Dissolution Event, there are any assets that, in the judgment of the Liquidating Trustee, cannot
 be sold or distributed in kind without sacrificing a significant portion of the value thereof or where such sale or distribution
 is otherwise impractical at the time of the Series Dissolution Event, such assets may be retained by the applicable Series if the
 Liquidating Trustee determines that the retention of such assets is in the best interests of the Members of the applicable Series.
 Upon the sale of such assets or a determination by the Liquidating Trustee that circumstances no longer require their retention,
 such assets (at their Fair Value) or the proceeds of their sale shall be taken into account in computing Capital Account of the applicable
 Series on winding up and amounts distributable pursuant to Section 6.03(b), and distributed in accordance with such value.

&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 there are any claims or potential claims (including potential applicable Series expenses in connection therewith) against the applicable
 Series (either directly or indirectly, including potential claims for which the applicable Series might have an indemnification obligation)
 for which the possible loss cannot, in the judgment of the Liquidating Trustee, be definitively ascertained, then such claims shall
 initially be taken into account in computing the Capital Account of the applicable Series upon winding up and distributions pursuant
 to Section 6.03(b) at an amount estimated by the Liquidating Trustee to be sufficient to cover any potential loss or liability on
 account of such claims (including such potential expenses of the applicable Series), and the applicable Series shall retain funds
 (or assets) determined by the Liquidating Trustee in its discretion as a reserve against such potential losses and liabilities, including
 expenses associated therewith, and for any other purpose with respect to the applicable Series. The Liquidating Trustee may in its
 discretion obtain insurance or create escrow accounts or make other similar arrangements with respect to such losses and liabilities.
 Upon final settlement of such claims (including such potential expenses of the applicable Series) or a determination by the Liquidating
 Trustee that the probable loss therefrom can be definitively ascertained, such claims (including such potential expenses of the applicable
 Series) shall be taken into account in the amount at which they were settled or in the amount of the probable loss therefrom in computing
 the Capital Account the applicable Series on winding up and amounts distributable pursuant to Section 6.03(b), and any excess funds
 retained shall be distributed as such funds would be distributed under Section 6.03(b).

Section 6.05. <u>Winding Up and Termination of the Company.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon
 the occurrence of a Company Dissolution Event, the property and business of each of the Series shall be wound up by Liquidating Trustee
 in accordance with the provisions of Section 6.02, Section 6.03 and Section 6.04. In the event that there remain any assets or liabilities
 of the Company as opposed to a Series following such events, then the Liquidating Trustee shall wind up the property and business
 relating to such assets and liabilities in the same manner as applicable to any Series, with modifications thereto as reasonably
 determined by the Liquidating Trustee to take into account that such actions do not relate to a particular Series.

(b) When
 the Liquidating Trustee has completed the winding up described in this Section 6.05, the Liquidating Trustee shall take such actions
 as required to cause the Termination of the Company.

**Article VII. Member Meetings**

Section 7.01. <u>Member Meetings.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) There
 shall be no meetings of the Members of any Series unless called by the Board or as otherwise specifically required by the Delaware
 Act. No Members of a Series or group of Members of a Series, acting in its or their capacity as Members of the Series, shall have
 the right to call a meeting of the Members, whether of the Series or of the Company overall.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Board may call meetings of the Members overall, or of one or more Series standing alone and it is the intent of the Company, each
 Series and each Member that (i) in the event that the meeting or action referred to is a meeting or action of all of the Members
 of all the Series, any references in this Article VII to a meeting or action of the "Members", and the provisions with
 respect to Voting Shares and other germane matters herein, shall be deemed a reference to all such Members and the Voting Shares
 and other germane matters herein as applicable to all such Member; and (ii) in the event that the meeting or action referred to is
 a meeting or action of the Members of a particular Series or group of Series (or a meeting or action affects certain Series or Members
 disproportionately and adversely), any references in this Article VII to a meeting or action of the "Members" and the
 provisions with respect to Voting Shares and other germane matters herein, shall be deemed a reference to the Members and the Voting
 Shares and other germane matters herein as applicable to the applicable Series or group of Series. The Board shall have the authority,
 in its reasonable discretion, to interpret and enforce this Agreement to give effect to the intent of the provisions of this Section
 7.01(b).

(c) All
 acts of Members to be taken hereunder shall be taken in the manner provided in this Agreement. If authorized by the Board, and subject
 to such guidelines and procedures as the Board may adopt, if a meeting of the Members is called Members and proxyholders not physically
 present at a meeting of Members may by means of remote communication participate in such meeting and be deemed present in person
 and vote at such meeting.

(d) In
 the event that the meeting or action referred to is a meeting or action of all of the Members of all the Series or one or more Series,
 the presence of a majority of the Shares of all Series entitled to vote at such meeting or with respect to such action, either in
 person or by proxy, and entitled to vote thereat, shall constitute a quorum for the purpose of such meeting or action, unless any
 such matter to be acted upon requires the approval of two-thirds of the Voting Shares of all Series or one or more Series, in which
 case the presence of two-thirds of the Shares of all Series entitled to be vote at such meeting, either in person or by proxy, and
 entitled to vote thereat, shall constitute a quorum for the purpose of such meeting or action.

(e) In
 the event that the meeting or action referred to is a meeting or action of the Members of a particular Series or group of Series,
 the presence of a majority of the Shares of the applicable Series or group of Series entitled to be vote at such meeting, either
 in person or by proxy, and entitled to vote thereat, shall constitute a quorum for the purpose of such meeting, unless any such matter
 to be acted upon requires the approval of two-thirds of the Voting Shares of such Series or group of Series, in which case the presence
 of two-thirds of the Shares of the Series or group of Series entitled to be vote at such meeting, either in person or by proxy, and
 entitled to vote thereat, shall constitute a quorum for the purpose of such meeting.

(f) The
 Delaware Court of Chancery may issue such orders as may be appropriate, including orders designating the time and place of such meeting,
 the record date for determination of Members entitled to vote, and the form of notice of such meeting.

Section 7.02. <u>Notice of Meetings of Members.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Notice,
 stating the place, day and hour of any meeting of the Members, as determined by the Board, and the purpose or purposes for which
 the meeting is called, as determined by the Board, shall be delivered by the Board not less than 5 calendar days nor more than 60
 calendar days before the date of the meeting, in a manner and otherwise in accordance with the terms herein to each Record Holder
 who is entitled to vote at such meeting. Such further notice shall be given as may be required by Delaware or applicable federal
 law or any exchange on which any Shares of the applicable Series the members of which are entitled to vote at the meeting, are then
 listed. Only such business shall be conducted at a meeting of Members of any Series or group of Series as shall have been brought
 before the meeting pursuant to the Board's notice of meeting. Any previously scheduled meeting of any Members may be postponed,
 and any meeting of the Members may be canceled, by resolution of the Board upon public notice given prior to the date previously
 scheduled for such meeting of the Members.

(b) The
 Board shall designate the place of meeting for any meeting of the Members. If no designation is made, the place of meeting shall
 be the principal office of the Company.

Section 7.03. <u>Record Date.</u> For purposes of determining the Members entitled to notice of or to vote at a meeting of the Members, the Board may set a Record Date, which shall not be less than 5 nor more than 60 days before the date of the meeting (unless such requirement conflicts with any rule, regulation, guideline or requirement of any National Securities Exchange on which any Shares of the applicable Series the members of which are entitled to vote at the meeting are listed for trading, in which case the rule, regulation, guideline or requirement of such exchange shall govern). If no Record Date is fixed by the Board, the Record Date for determining Members of the applicable Series or group of Series entitled to notice of or to vote at a meeting of Members of the applicable Series or group of Series shall be at the close of business on the day next preceding the day on which notice is given. A determination of Members of record entitled to notice of or to vote at a meeting of Members shall apply to any adjournment or postponement of the meeting; provided, however, that the Board may fix a new Record Date for the adjourned or postponed meeting.

Section 7.04. <u>Adjournment.</u> When a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting and a new Record Date need not be fixed, if the time and place thereof are announced at the meeting at which the adjournment is taken, unless such adjournment shall be for more than 30 days. At the adjourned meeting, the Company, or the applicable Series or group of Series, may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 30 days or if a new Record Date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given in accordance with this Section 7.

Section 7.05. <u>Waiver of Notice; Approval of Meeting.</u> Whenever notice to the Members is required to be given under this Agreement, a written waiver, signed by the Person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a Person at any such meeting shall constitute a waiver of notice of such meeting, except when the Person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Members need be specified in any written waiver of notice unless so required by resolution of the Board. All waivers and approvals shall be filed with the records of the Company and the applicable Series or made part of the minutes of the meeting.

Section 7.06. <u>Required Vote</u>. The submission of matters to Members for approval shall occur only at a meeting of the Members duly called and held in accordance with this Agreement at which a quorum is present; provided, however, that the Members present at a duly called or held meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough Members to leave less than a quorum, if any action taken (other than adjournment) is approved by the required percentage of Shares entitled to vote specified in this Agreement. Any meeting of Members may be adjourned from time to time by the chairman of the meeting to another place or time, without regard to the presence of a quorum.

Section 7.07. <u>Conduct of a Meeting.</u> The Board shall have full power and authority concerning the manner of conducting any meeting of the Members, including the determination of Persons entitled to vote, the existence of a quorum, the satisfaction of the requirements of this Article VII, the conduct of voting, the validity and effect of any proxies and the determination of any controversies, votes or challenges arising in connection with or during the meeting or voting. The Board shall designate a Person to serve as chairman of any meeting and shall further designate a Person to take the minutes of any meeting. All minutes shall be kept with the records of the Company and each applicable Series maintained by the Board. The Board may make such other regulations consistent with applicable law and this Agreement as it may deem advisable concerning the conduct of any meeting of the Members, including regulations in regard to the appointment of proxies, the appointment and duties of inspectors of votes, the submission and examination of proxies and other evidence of the right to vote.

Section 7.08. <u>Action Without a Meeting.</u> On any matter that is to be voted on, consented to or approved by Members, the Members may take such action without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, shall be approved by the Members having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all Members entitled to vote thereon were present and voted. A Series Designation need not provide that any action required or permitted to be taken by the holders of the Shares to which such Series Designation relates may be taken without a meeting by the written consent of such holders or Members, in order for the provisions of this Section 7.08 to apply thereto.

Section 7.09. <u>Voting and Other Rights.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Only
 those Record Holders of Voting Shares on the Record Date set pursuant to Section 7.03 shall be entitled to notice of, and to vote
 at, a meeting of Members or to act with respect to matters as to which the holders of the Voting Shares have the right to vote or
 to act. All references in this Agreement to votes of, or other acts that may be taken by, the Voting Shares shall be deemed to be
 references to the votes or acts of the Record Holders of such Voting Shares on such Record Date.

(b) With
 respect to Voting Shares that are held for a Person's account by another Person (such as a broker, dealer, bank, trust company
 or clearing corporation, or an agent of any of the foregoing), in whose name such Voting Shares are registered, such other Person
 shall, in exercising the voting rights in respect of such Voting Shares on any matter, and unless the arrangement between such Persons
 provides otherwise, vote such Voting Shares in favor of, and at the direction of, the Person who is the Beneficial Owner, and the
 Company shall be entitled to assume it is so acting without further inquiry.

(c) No
 Members shall have any cumulative voting rights.

Section 7.10. <u>Proxies and Voting.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 any matter that is to be voted on by Members, the Members may vote in person or by proxy, and such vote may be made, or proxy may
 be granted in writing, by means of electronic transmission or as otherwise permitted by applicable law. Any such proxy shall be delivered
 in accordance with the procedure established for the relevant meeting.

(b) For
 purposes of this Agreement, the term "electronic transmission" means any form of communication not directly involving
 the physical transmission of paper that creates a record that may be retained, retrieved and reviewed by a recipient thereof and
 that may be directly reproduced in paper form by such a recipient through an automated process. Any copy, facsimile telecommunication
 or other reliable reproduction of the writing or transmission created pursuant to this paragraph may be substituted or used in lieu
 of the original writing or transmission for any and all purposes for which the original writing or transmission could be used, provided
 that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing
 or transmission.

(c) The
 Board may, and to the extent required by law, shall, in advance of any meeting of all or any of Members, appoint one or more inspectors
 to act at the meeting and make a written report thereof. The Board may designate one or more alternate inspectors to replace any
 inspector who fails to act. If no inspector or alternate is able to act at a meeting of Members, the chairman of the meeting may,
 and to the extent required by law, shall, appoint one or more inspectors to act at the meeting. Each inspector, before entering upon
 the discharge of his or her duties, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality
 and according to the best of his or her ability. Every vote taken by ballots shall be counted by a duly appointed inspector or inspectors.

(d) With
 respect to the use of proxies at any meeting of Members, the Company and each Series shall be governed by paragraphs (b), (c), (d)
 and (e) of Section 212 of the DGCL and other applicable provisions of the DGCL, as though the Company and each Series were a Delaware
 corporation and as though the Members of each Series were shareholders of a Delaware corporation.

(e) In
 the event that the Company or any Series becomes subject to Regulation 14A under the Exchange Act, pursuant to and subject to the
 provisions of Rule 14a-16 under the Exchange Act, the Company or the applicable Series, as applicable, may, but is not required to,
 utilize a Notice of Internet Availability of Proxy Materials, as described in such rule, in conjunction with proxy material posted
 to an Internet site, in order to furnish any proxy or related material to Members pursuant to Regulation 14A under the Exchange Act.

**Article VIII. Miscellaneous**

Section 8.01. <u>Addresses and Notices.</u> Any notice, demand, request, report or proxy materials required or permitted to be given or made to a Member under this Agreement shall be in writing and shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written communication (including electronic communication) to the Member at the address described below. Any notice, payment or report to be given or made to a Member hereunder shall be deemed conclusively to have been given or made, and the obligation to give such notice or report or to make such payment shall be deemed conclusively to have been fully satisfied, upon sending of such notice, payment or report to the Record Holder of such Shares at his address as shown on the records of the Transfer Agent or delivered electronically as otherwise shown on the records of the Company and the applicable Series (including on Exhibit A attached to the applicable Series Designation), regardless of any claim of any Person who may have an interest in such Shares by reason of any assignment or otherwise. An affidavit or certificate of making of any notice, payment or report in accordance with the provisions of this Section 8.01 executed by the Company and the applicable Series, the Board or the Transfer Agent or the mailing organization shall be prima facie evidence of the giving or making of such notice, payment or report. If any notice, payment or report addressed to a Record Holder at the address of such Record Holder appearing on the books and records of the Transfer Agent or the Company and the applicable Series is returned by the United States Postal Service marked to indicate that the United States Postal Service is unable to deliver it or is returned or there is a delivery failure through any electronic communication, such notice, payment or report and any subsequent notices, payments and reports shall be deemed to have been duly given or made without further mailing (until such time as such Record Holder or another Person notifies the Transfer Agent or the Company and the applicable Series of a change in his address or electronic address, as applicable) if they are available for the Member at the principal office of the Company and the applicable Series for a period of one year from the date of the giving or making of such notice, payment or report to the other Members. Any notice to the Company and the applicable Series shall be deemed given if received by the Secretary at the principal office of the Company and the applicable Series designated pursuant to the terms and conditions herein. The Board and the Officers may rely and shall be protected in relying on any notice or other document from a Member or other Person if believed by it to be genuine.

Section 8.02. <u>Amendments; Waiver.</u> Except as otherwise expressly provided in this Agreement, any provision of this Agreement may be amended or waived only by an instrument in writing executed by the Board and Class A Members of each Series holding a majority of the Voting Shares of all of the Series as one group provided, however, any amendment which disproportionately and adversely affects the Class A Members of or more particular Series, must be approved by the Class A Members holding a majority of the Class A Ordinary Shares of such disproportionately and adversely Series (singular and plural) voting together as a separate class. Notwithstanding the foregoing, the Board may amend this Agreement and the schedules and exhibits hereto, without the approval of the Members of any Series (i) to evidence the joinder to this Agreement of a new Member of any Series; (ii) in connection with the Transfer of Shares of any Series; (iii) in connection with any issuance of Shares of any Series to the Administrator or to any existing members, whether as a result of issuances to the Administrator pursuant to the Management Services Agreements, upon conversion of the Series B Ordinary Shares of any Series pursuant to Section 2.04(e), or otherwise, (iv) as otherwise required to reflect Capital Contributions of any Series, distributions of any Series or redemptions and similar actions hereunder; (v) to reflect the naming of new officers, members of the Board or replacement of officers or managers of the Company or any Series; (vi) pursuant to Section 8.07, (vii) in connection with the creation of a Series pursuant to a Series Designation as set forth in Section 1.08(a), including any modifications or amendments to such Series Designation, or any dissolution or termination of a Series; (viii) a change that is required to effect the intent expressed in the provisions of this Agreement or any Series Designation or is otherwise contemplated by this Agreement or any Series Designation, including any change reasonably necessary in connection with any action within the sole discretion of the Board; and (ix) any change the Board deems necessary or appropriate to enable trading of membership interests of any Series. Notwithstanding the foregoing the Board is authorized to make such amendments to this Agreement as required in order to comply with any applicable law, including, without limitation, any securities law or tax law, whether currently in place or promulgated in the future, and to reflect non-material changes that would not adversely affect any Class A Members of any Series.

Section 8.03. <u>Successors and Assigns.</u> This Agreement shall inure to the benefit of, and shall be binding upon, the successors and permitted assigns of the Members.

Section 8.04. <u>No Waiver.</u> Except as set forth in Section 8.17 with respect to forum selection, no failure or delay by any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

Section 8.05. <u>Survival of Certain Provisions.</u> The covenants and agreements set forth in Section 4.01, Section 4.02 and Section 5.02 shall survive dissolution or termination of any Series, and shall further survive the Termination of the Company.

Section 8.06. <u>Promotional Notifications.</u> Each Member expressly consents to receiving calls and messages, including auto-dialed and pre-recorded message calls, and SMS messages (including text messages) from the Administrator, its affiliates, agents and others calling at their request or on their behalf, at any telephone numbers that the Member has provided to the Company, any Series or Masterworks (including any cellular telephone numbers). Member's cellular or mobile telephone provider will charge Member according to the type of plan Member carries. Any Member may unsubscribe from receiving promotional text messages or promotional calls at any time by (i) replying STOP, STOPALL, UNSUBSCRIBE, CANCEL, END or QUIT to any text message such Member receives from the Company, any Series or Masterworks or (ii) email to support@masterworks.com with one of the forgoing words in the subject line. Each Member acknowledges and consents that following such a request to unsubscribe, such Member may receive one final text message from Masterworks confirming such request.

Section 8.07. <u>Corporate Treatment.</u> The Board shall use its reasonable best efforts to take such actions as are necessary or appropriate to preserve the status of the Company and each Series as a partnership for U.S. federal (and applicable state and local) income tax purposes. If, however, the Board determines, in its sole discretion, for any reason (including the proposal, formally or informally, of legislation that could affect the Company's or any Series' status as a partnership for U.S. federal and/or applicable state and local income tax purposes) that it is not in the best interests of the Company or any Series to be characterized as a partnership, the Board may take whatever steps, if any, are needed to cause the Company and each Series to be or confirm that the Company and each Series will be treated as an association or as a publicly traded partnership taxable as a corporation for U.S. federal (and applicable state and local) income tax purposes, including by making an election to be taxed as a "C" corporation pursuant to the Code (a "Change in Tax Classification"), without any approval or vote of the Members of any Series being required, and to make such filings, including without limitation, a Form 8832 with the Service, and to undertake such actions as required to effect such Change in Tax Classification. At the time and following any Change of Tax Classification, the Board shall have the right, without any approval or vote of the Members of any Series being required, to amend this Agreement as reasonably required to effect the Change in Tax Classification and to provide for the operations of the Company and each Series following such event. Notwithstanding anything in this Agreement to the contrary, in the event U.S. federal (and/or applicable state and local) income tax laws, rules or regulations are enacted, amended, modified or applied after the date hereof in such a manner as to require or necessitate that the Company or any Series no longer be treated as a partnership for U.S. federal (and/or applicable state and local) income tax purposes, then the first sentence of this Section 8.07 shall no longer apply.

Section 8.08. <u>Section 7704(e) Relief.</u> In the event that the Board determines the Company or any Series should seek relief pursuant to Section 7704(e) of the Code to preserve the status of the Company and each Series as a partnership for U.S. federal (and applicable state) income tax purposes, the Company, each Series and each Member shall agree to adjustments required by the tax authorities, and the Company and each applicable Series shall pay such amounts as required by the tax authorities, to preserve the status of the Company and each applicable Series as a partnership.

Section 8.09. <u>Electronic Information.</u> Each Member hereby agrees that all current and future notices, confirmations and other communications may be made by the Company or any Series via email, sent to the email address of record of the Member provided to the Company or any Series as changed or updated from time to time, 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 Company, any Series and the Members except as otherwise required by law. If any such electronically sent communication fails to be received for any reason, including but not limited to such communications being diverted to the recipients spam filters by the recipients email service provider, or due to a recipient's change of address, or due to technology issues by the recipients service provider, the parties agree that the burden of such failure to receive is on the recipient and not the sender, and that the sender is under no obligation to resend communications via any other means, including but not limited to postal service or overnight courier, and that such communications shall for all purposes, including legal and regulatory, be deemed to have been delivered and received. Except as required by law, no physical, paper documents will be sent to Members, and a Member desires physical documents then such Member agrees to be satisfied by directly and personally printing, at such Member's own expense, the electronically sent communication(s) and maintaining such physical records in any manner or form that a Member desires.

Section 8.10. <u>Severability.</u> In case any provision in this Agreement shall be deemed to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired hereby.

Section 8.11. <u>Interpretation.</u> The headings in this Agreement are inserted for convenience of reference only and shall not affect the interpretation of this Agreement. As used herein, masculine pronouns shall include the feminine and neuter, neuter pronouns shall include the masculine and the feminine, and the singular shall be deemed to include the plural. The use of the word "including" herein shall not be considered to limit the provision that it modifies but instead shall mean "including, without limitation."

Section 8.12. <u>No Third-Party Rights.</u> Except as expressly provided in this Agreement, this Agreement is intended solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any Person other than the parties hereto.

Section 8.13. <u>Entire Agreement.</u> This Agreement constitutes the entire agreement of the Company, each Series, the Initial Member and any Person who becomes a Member hereafter with respect to the matters described herein and supersedes any prior agreement or understanding among them with respect to such subject matter.

Section 8.14. <u>Rule of Construction.</u> The general rule of construction for interpreting a contract, which provides that the provisions of a contract should be construed against the party preparing the contract, is waived by the parties hereto. Each party acknowledges that such party was represented by separate legal counsel in this matter who participated in the preparation of this Agreement or such party had the opportunity to retain counsel to participate in the preparation of this Agreement but elected not to do so.

Section 8.15. <u>Authority.</u> Whenever in this Agreement or elsewhere it is provided that consent is required of, or a demand shall be made by, or an act or thing shall be done by or at the direction of, the Company, or whenever any words of like import are used, all such consents, demands, acts and things are to be made, given or done by the consent of the Board or Person acting under the authority of the Board, unless a contrary intention is expressly indicated.

Section 8.16. <u>Governing Law.</u> This Agreement, and any and all claims, proceedings or causes of action relating to this Agreement or arising from this Agreement or the transactions contemplated herein, including, without limitation, tort claims, statutory claims and contract claims, shall be interpreted, construed, governed and enforced under and solely in accordance with the substantive and procedural laws of the State of Delaware, in each case as in effect from time to time and as the same may be amended from time to time, and as applied to agreements performed wholly within the State of Delaware.

Section 8.17. <u>Choice of Forum for Securities Act Disputes.</u> Unless the Board consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended, subject to and contingent upon a final adjudication in the State of Delaware of the enforceability of such exclusive forum provision. Any person or entity purchasing or otherwise acquiring any interest in any security of the Company or any Series shall be deemed to have notice of and consented to the provisions of this Agreement.

Section 8.18. <u>Facsimile Signatures.</u> The use of facsimile signatures affixed in the name and on behalf of the transfer agent and registrar of the Company or any Series on certificates representing Shares of any Series is expressly permitted by this Agreement.

Section 8.19. <u>Counterparts.</u> This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

Section 8.20. <u>Qualification Rights.</u> Masterworks will have the right to request that the Company and each Series qualify on Form 1-A, or a comparable form, the resale of any Class A Shares of any Series beneficially owned by Masterworks or any entity administered by Masterworks. There are no limitations or restrictions on the size or frequency of such qualification requests, other than pursuant to applicable law, provided, that all costs associated with any such qualification shall be the responsibility of Masterworks.

*[Signatures appear on following page]*

 

IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first written above.

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| | |
|:---|:---|
| Masterworks Foundry, LLC | Masterworks Foundry, LLC |
| Sole Member | Sole Member |
| By: |  |
| Name: | Josh Goldstein |
| Title: | General Counsel |
| Members: | Members: |
| All members now and hereafter admitted as Members of the Company and the applicable Series, pursuant to powers of attorney now and hereafter executed in favor of, and granted and delivered to the Company or without execution hereof or thereof by purchasing or otherwise lawfully acquiring any Share, pursuant to Section 1.07. | All members now and hereafter admitted as Members of the Company and the applicable Series, pursuant to powers of attorney now and hereafter executed in favor of, and granted and delivered to the Company or without execution hereof or thereof by purchasing or otherwise lawfully acquiring any Share, pursuant to Section 1.07. |

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**Form of Counterpart Signature Page**

The undersigned hereby accepts, and becomes a party to, the Second Amended and Restated Limited Liability Company Agreement (the "Agreement") of Masterworks Vault [ ], LLC, a Delaware limited liability company (the "Company"), in connection with the acquisition of Shares (as defined in the Agreement) of the Company with respect to a certain Series (as defined in the Agreement), and by its signature below signifies its agreement to be bound by the terms and conditions of the Agreement.

---

| |
|:---|
| Member Name: |
| By: |
| Name: |
| Title: |
| Number of Shares: |
| Name of Series: |
| *Agreed and Accepted:* |

---

---

| | |
|:---|:---|
| Masterworks Vault [ ], LLC | Masterworks Vault [ ], LLC |
| By: |  |
| Name: | Nigel Glenday |
| Title: | Manager |
| By: |  |
| Name: | Josh Goldstein |
| Title: | Manager |
| By: |  |
| Name: | Eli Broverman |
| Title: | Manager |

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**Exhibit A**

**Form of Vote Limit Certificate**

I, [as on authorized officer of] [as] the Member of Masterworks Vault [ ], LLC (the "Company"), hereby irrevocably designate the Member that owns more than 5% of the Company's Class A shares outstanding, excluding Masterworks Shares, whose name appears below, as a Vote Limited Member (the "Vote Limited Member") for all purposes of the Company's Second Amended and Restated Operating Agreement, effective as of the date set forth below.

I hereby certify, acknowledge, and agree that irrespective of the actual number of Class A shares beneficially owned by the Vote Limited Member (including Class A shares beneficially owned by Such Vote Limited Member's affiliates), the Vote Limited Member together with its affiliates shall not be entitled to vote more than [ ]% of the total Voting Shares of the Company or of any Series (the "Vote Limit") on any matter put to a vote of the Company's or any Series' Class A shareholders. I further acknowledge and agree that any affiliate of the Vote Limited Member shall be deemed to be a Vote Limited Member and shall be subject to the Vote Limit.

I hereby agree to notify the Company or the Company's transfer agent and provide it with any additional information it may reasonably request if any affiliate of the Vote Limited Member owns any of the Company's Class A shares as of the date of this Certificate or acquires any Class A shares subsequent to the date of this Certificate.

I further acknowledge my understanding that the designation as a Vote limited Member is irrevocable and that the Vote Limit set forth herein can be further reduced by written notice to the Company, but cannot be increased by the Vote Limited Member.

This certificate shall have no force or effect with respect to any successor, assignee or transferee of the Vote Limited Member's Class A shares other than any successor, assignee or transferee that, at the time of such transaction, is an affiliate of the Vote Limited Member.

For purposes of this certificate, the term "affiliate" has the meaning ascribed to such term in Rule 405 of the Securities Act of 1933, as amended.

---

| |
|:---|
| By: |
| Name: |
| Title: |
| Date: |

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**Exhibit B**

Form of Series Designation

Series Designation of

[Series Name], a series of Masterworks Vault [ ], LLC

In accordance with the Second Amended and Restated Limited Liability Company Agreement of Masterworks Vault [ ], LLC, a Delaware series limited liability company (the "Company"), dated [______], 2026 (as amended, the "Agreement") and upon the execution of this Series Designation by the Administrator after direction by the Board of a series of the Company ("Series [___]"), this Series Designation shall be attached to, and deemed incorporated in its entirety into, the Agreement as the "[Series Name] Designation Exhibit." In addition, as of the Effective Date of Establishment, Masterworks Foundry, LLC shall be issued 1,000 Class B Ordinary Shares of Series [ ], representing 100% of the membership interests in such series as of such date, in return for a capital contribution to such series of $100.

References to Sections and Articles set forth herein are references to Sections and Articles of the Agreement, as in effect as of the Effective Date of Establishment set forth below.

---

| | |
|:---|:---|
| **Name of Series** | [Series Name] |
| **Effective Date of Establishment** | [_____________]. |
| **Series Property** | The Series Artwork. For purposes of Series [___], "Series Artwork" refers to that certain artwork by [_________], entitled [_________]. |
| **Authorized Shares** | [__________] Class A Ordinary Shares, plus an indeterminate number of Class A Ordinary Shares issuable upon conversion of Class B Shares or Class A Preferred Shares and or exchange of SPC Shares.<br>[[__________] Class A Preferred Shares]<br>1,000 Class B Ordinary Shares<br>1 Class C Ordinary Share |
| **Additional Provisions** | [__________________] |

---

Agreed and executed as of the Effective Date of Establishment as set forth above by Masterworks Administrative Services, LLC as the Administrator, upon the direction of the Board:

---

| |
|:---|
| Masterworks Administrative Services, LLC |
| By: |
| Name: |
| Title: |

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**Exhibit A**

**Series, Members, Capital Contributions, Shares**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Member Name | Address | Capital Contribution | Number of <br>Class A <br>Ordinary <br>Shares | Number of <br>Class A <br>Preferred <br>Shares | Number of <br>Class B <br>Ordinary <br>Shares | Number of <br>Class C <br>Ordinary <br>Shares |
| Masterworks Foundry, LLC | 1 World Trade Center, 57th Floor, New York, NY 10007 | Services Rendered & $100 | 0 | 0 | 1000 | 0 |
| Masterworks Administrative Services, LLC | 1 World Trade Center, 57th Floor, New York, NY 10007 |  | [ ] | [ ] | 0 | 0 |

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Exhibit A - Page 1

## Add

**Exhibit 4.1**

FORM OF SUBSCRIPTION AGREEMENT

SERIES [\*], A SERIES OF MASTERWORKS VAULT [ ], LLC

NOTICE TO INVESTORS

Investing in membership interests represented by Class A ordinary shares ("Shares") of Series [\*] (the "Series"), a series of Masterworks Vault [ ], LLC (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 Shares, and if a public market develops following this offering (the "Offering"), it may not continue.

The Shares 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 (as amended, the "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 Shares 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 Materials (as defined below) or any other materials or information made available to subscriber in connection with this Offering. Any representation to the contrary is unlawful.

No sale may be made to persons in this Offering 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 Series 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 the subscription agreement, the operating agreement of Masterworks Vault [ ], LLC, 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, officers, employees or agents (including "testing the waters" materials) as investment, legal or tax advice. In making an investment decision, investors must rely on their own examination of the Series and 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 Series reserves the right in its sole discretion and for any reason whatsoever to modify, amend and/or withdraw all or a portion of this Offering and/or accept or reject in whole or in part any prospective investment in the Shares or to allot to any prospective investor less than the amount of Shares such investor desires to purchase.

Except as otherwise indicated, the Offering Materials speak as of their date. Neither the delivery nor the subscription for the Shares shall, under any circumstances, create any implication that there has been no change in the affairs of the Series since that date.

SERIES [\*], A SERIES OF MASTERWORKS VAULT [ ], LLC

A DELAWARE LIMITED LIABILITY COMPANY

This subscription agreement ("Agreement") is made as of the date set forth below by and between the undersigned ("Subscriber" or "you") and Series [\*] (the "Series"), a series of Masterworks Vault [ ], LLC (the "Company"), and is intended to set forth certain representations, covenants and agreements between Subscriber and the Series with respect to the offering (the "Offering") for sale by the Series of its Class A ordinary membership interests represented by Class A shares (referred to herein as the "Shares") as described in the Company's Offering Circular that has been qualified by the SEC and includes the Series Offering, as amended by any post-qualification amendment (the "Offering Circular"). In this Agreement, references to "we", "us" or "our" refer generically to the Series and the Company, individually or collectively, as the context requires.

1. Subscription and Purchase of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Maximum
 and Minimum. There is no maximum or minimum investment amount per investor in any series. We reserve the right to reject any subscription,
 waive or increase the maximum purchase restriction or waive or decrease the minimum purchase restriction in our sole and absolute
 discretion and such waiver, increase or reduction shall be evidenced by our acceptance of any such subscription and our countersignature
 on this Agreement.

b. Irrevocable
 Subscription. Subject to the terms and conditions hereof, you irrevocably subscribe for and agree to purchase the number
 of Shares set forth on the signature page to this Agreement at a purchase price per Share set forth on the signature page for the
 total amount set forth on the signature page (the "Purchase Price").

c. Rejection.
 We have the right to reject or cancel your subscription, in whole or in part, whether or not we consummate the Offering. If we reject
 or cancel your subscription, we will refund to you amounts paid relating to such portion of the subscription that is rejected or
 cancelled, without interest. We may deduct third party processing fees, if any, from amounts refunded.

d. Operating
 Agreement. You have received and read a copy of Masterworks Vault [ ], LLC's Operating Agreement governing the Series
 and the Company (as may be amended, restated or supplemented, the "Operating Agreement") and agree that your execution
 of this Agreement constitutes your consent to and execution of the Operating Agreement, and that upon acceptance of this Agreement
 by the Series, you will become a member of the Company as a holder of Shares. When this Agreement is countersigned by the Company,
 the Operating Agreement shall be binding upon you as of the applicable closing date.

e. Masterworks
 Platform. The Offering is described in the Offering Circular, that is available through the online investment platform located at
 www.masterworks.com (the "Masterworks Platform"), which is owned and operated by Masterworks, LLC (together with its
 subsidiaries, other than Masterworks Advisers, LLC, the Company and any subsidiary or series of the Company, "Masterworks"),
 an affiliated entity of the Company, as well as on the SEC's EDGAR website at www.sec.gov. Please read this Agreement, the
 Offering Circular, and the Operating Agreement. While they are subject to change, as described below, we advise you to print and
 retain a copy of these documents for your records. By signing electronically below, you agree to the terms of this Agreement and
 the Operating Agreement, together with the Terms and Conditions and the Terms of Use, and Masterworks' Privacy Policy, and
 agree to transact business with us and to receive communications, including voting and proxy materials, relating to the Shares electronically.

2. Subscription Procedures, Payment and Delivery

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Subscription
 Procedures. The procedures for subscribing to the Offering shall be determined by Masterworks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Payment.
 Contemporaneously with the electronic execution and delivery of this Agreement through the Masterworks Platform, you will pay the
 Purchase Price for the Shares in the form of ACH debit transfer, wire transfer, credit card (any credit card subscriptions shall
 not exceed the lesser of $30,000 or the amount permitted by applicable law, per Subscriber) or an alternative payment method as specified
 by you on the Masterworks Platform, if applicable, into a segregated non-interest-bearing sub-account of the Company for
 the sole benefit of the Series and Subscribers until the applicable closing date of the Offering. Investors contemplating using their
 credit card to invest are urged to carefully review "Risk Factors – Risks of investing using a credit card" in
 the Offering Circular. Credit card investment will result in incurrence of third-party fees and charges, interest obligations
 which will lower your expected investment returns and could exceed your actual returns. In addition, if you cannot meet your minimum
 payment obligation, you may damage your credit profile which would make it more difficult and more expensive to borrow in the future.
 Your subscription is irrevocable. The Company will maintain all such funds until the earliest to occur of: (i) the applicable closing
 date, (ii) the rejection of such subscription or (iii) the termination of the Offering by us in our sole discretion.

c. Acceptance.
 This subscription shall be deemed to be accepted only when this Agreement has been signed by the Series and delivered to you electronically.
 The deposit of the payment of the Purchase Price for clearance will not be deemed an acceptance of this Agreement.

d. Rejection
 or Termination. The payment of the Subscription Amount (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, without interest, but subject to deduction of third
 party processing fees, if any, if Subscriber's subscription is rejected in whole or in part or if the Offering is terminated
 or canceled.

e. Issuance
 of Shares. We will not issue Shares until the initial closing and your funds will be stored in a segregated sub-account until the
 applicable closing date. Upon the release of your Purchase Price to the Series at the applicable closing, you will receive notice
 and evidence of the digital book-entry (or other manner of record) of the number of Shares owned by you reflected on the books and
 records of the Series, which books and records shall bear a notation that the Shares were sold in reliance upon Regulation A.

3. Representations, Warranties and Agreements of Subscriber. By executing this Agreement, Subscriber represents, warrants and agrees as of the date of execution of this Agreement and as of the applicable closing date of the Offering:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Requisite
 Power and Authority and Related Matters. Subscriber has all necessary power and authority under all applicable provisions of law
 to execute and deliver this Agreement. All action on Subscriber's part required for the lawful execution and delivery of this
 Agreement has been or will be effectively taken prior to the applicable closing. If Subscriber is a natural person, Subscriber is
 at least 21 years of age (or eighteen (18) years of age in jurisdictions with such applicable age limit on contracting) and competent
 to enter into a contractual obligation. If an entity, Subscriber, represents that such entity was not formed for the specific purpose
 of acquiring the Shares, such entity is duly organized, validly existing and in good standing under the laws of the state of its
 organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of state
 law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this Agreement
 and all other related agreements or certificates and to carry out the provisions hereof and thereof and to subscribe forand hold
 the Shares, the execution and delivery of this Agreement has been duly authorized by all necessary action, this Agreement has been
 duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; or if executing
 this Agreement in a representative or fiduciary capacity, represents that it has full power and authority to execute and deliver
 this Agreement in such capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, or limited
 liability company or partnership, or other entity for whom the Subscriber is executing this Agreement, and such individual, partnership,
 ward, trust, estate, corporation, or limited liability company or partnership, or other entity has full right and power to perform
 pursuant to this Subscription Agreement and make an investment in the Company, and represents that this Agreement constitutes a legal,
 valid and binding obligation of such entity. The execution and delivery of this Agreement will not violate or be in conflict with
 any order, judgment, injunction, agreement or controlling document to which the Subscriber is a party or by which it is bound. Upon
 execution and delivery, this 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Investment
 Representations. Subscriber understands that the Shares have not been registered under the Securities Act. Subscriber also understands
 that the Shares 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 Agreement. Subscriber is purchasing the Shares for Subscriber's own
 account. Subscriber has received and reviewed this 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 interests in connection with an investment in the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Illiquidity
 and Continued Economic Risk. Subscriber acknowledges and agrees that there is no ready public market for the Shares 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 Series has no obligation to list the Shares 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 Shares. Subscriber
 acknowledges that it is able to bear the economic risk of losing its entire investment in the Shares. Subscriber also understands
 that an investment in the Company involves significant risks and understands all of the risk factors relating to the purchase of
 Shares.

d. Investor
 Status. Subscriber represents that either:

● Subscriber is an "accredited investor" within the meaning of Rule 501 of Regulation D under the Securities Act; or

● The Purchase Price set out in the signature page to this Agreement, together with any other amounts previously used to purchase Shares in this Offering, does not exceed 10% of the greater of Subscriber's annual income or net worth (excluding Subscriber's primary residence and automobiles).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Shareholder
 Information. Within five days after receipt of a request from us or Masterworks, you agree to provide such information with respect
 to your status as a shareholder (or potential shareholder) and to execute and deliver such documents as may reasonably be necessary
 to comply with any and all laws and regulations to which we are or may become subject, including, without limitation, the need to
 determine the accredited status of our shareholders. You further agree that in the event you transfer any Shares, you will require
 the transferee of such Shares to agree to provide such information to us or Masterworks as a condition of such transfer.

f. Company
 Information. You have had the opportunity to review the Offering Circular filed with the SEC, including the section of the Offering
 Circular titled "Risk Factors." You have had an opportunity to discuss our business, management and financial affairs
 with representatives of the Company or Masterworks and have had the opportunity to review information about our operations and facilities.
 Subscriber has also had the opportunity to ask questions of and receive answers from our representatives and representatives of Masterworks
 regarding the terms and conditions of this investment. Subscriber acknowledges that Subscriber is making an investment decision based
 on the information in the Offering Circular and except as set forth in the Offering Circular and herein, no representations or warranties
 have been made to Subscriber, or to Subscriber's advisors or representative, by us or others with respect to our business or
 prospects or financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Additional
 Subscriber Information; Payment Information. Subscriber agrees to provide any additional documentation we or Masterworks may reasonably
 request, including documentation as may be required by us 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 Masterworks
 Platform (as defined in the Offering Circular) are true, complete and accurate in all respects. Payment information provided by Subscriber
 through the Masterworks Platform is true, accurate and correct and such payment information shall be deemed to be a part of this
 Agreement as if and to the same extent that such information was set forth herein. Subscriber also acknowledges and agrees
 that any distributions that may be paid by the Series with respect to the Shares will be paid based on information provided to us
 by Subscriber (or its authorized agents or successors) via the Masterworks Platform, as such information may be updated by Subscriber
 from time to time.

h. Use
 of Proceeds. The net proceeds of the Offering together with any unsold shares, if any, will be used in the manner set forth in the
 Offering Circular.

i. Domicile.
 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 Masterworks Platform.

j. Power
 of Attorney. Any power of attorney of the Subscriber granted in favor of the Chief Executive Officer, the Chief Financial Officer
 and the Secretary of the Company and any Liquidating Trustee 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.

k. Underwriter
 Fees. No fees or commissions will be payable by the Company to brokers, finders or investment bankers with respect to this specific
 Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. Foreign
 Investors. 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 Shares or any use of this Agreement, including (a) the legal requirements within
 its jurisdiction for the purchase of the Shares, (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 Shares. Subscriber's subscription and payment for and continued
 beneficial ownership of the Shares will not violate any applicable securities or other laws of the Subscriber's jurisdiction.

m. Patriot
 Act; Anti-Money Laundering; OFAC. The Subscriber should check the Office of Foreign Assets Control ("OFAC") website at
 http://www.treas.gov/ofac before making the following representations. Subscriber hereby represents and warrants to the Company as
 follows:

● Subscriber represents that (i) no part of the funds used by the Subscriber to acquire the Shares has been, or shall be, directly or indirectly derived from, or related to, any activity that may contravene United States federal or state or non-United States laws or regulations, including anti-money laundering laws and regulations, and (ii) no payment to the Company by the Subscriber and no distribution to the Subscriber shall cause the Company to be in violation of any applicable anti-money laundering laws or regulations including, without limitation, Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 and the United States Department of the Treasury Office of Foreign Assets Control regulations. Subscriber acknowledges and agrees that, notwithstanding anything to the contrary contained in the Offering Circular or any other agreement, to the extent required by any anti-money laundering law or regulation, the Company may restrict distributions or take any other reasonably necessary or advisable action with respect to the Shares, and the Subscriber shall have no claim, and shall not pursue any claim, against the Company or any other person in connection therewith. U.S. federal regulations and executive orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the programs administered by OFAC (the "OFAC Programs") prohibit dealing with individuals1 or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists.

● To the best of the Subscriber's knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Subscriber agrees to promptly notify us should the Subscriber become aware of any change in the information set forth in these representations. Subscriber understands and acknowledges that, by law, we may be obligated to "freeze the account" of the Subscriber, either by prohibiting additional subscriptions from the Subscriber, declining to make any distributions and/or segregating the assets in the account in compliance with governmental regulations, and any broker may also be required to report such action and to disclose the Subscriber's identity to OFAC. Subscriber further acknowledges that we may, by written notice to the Subscriber, suspend the redemption rights, if any, of the Subscriber if we reasonably deem it necessary to do so to comply with anti-money laundering regulations applicable to us or any broker or any of our other service providers. These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs.

● To the best of the Subscriber's knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a senior foreign political figure2, or any immediate family3 member or close associate4 of a senior foreign political figure, as such terms are defined in the footnotes below.

---

| | |
|:---|:---|
| 1 | These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs. |
| 2 | A "senior foreign political figure" is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a "senior foreign political figure" includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure. |
| 3 | "Immediate family" of a senior foreign political figure typically includes the figure's parents, siblings, spouse, children and in-laws. |
| 4 | A "close associate" of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political figure. |

---

● If the Subscriber is affiliated with a non-U.S. banking institution (a "Foreign Bank"), or if the Subscriber receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Subscriber represents and warrants to us that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country and that is not a regulated affiliate.

● Subscriber acknowledges that, to the extent applicable, we will seek to comply with the Foreign Account Tax Compliance Act provisions of the U.S. Internal Revenue Code and any rules, regulations, forms, instructions or other guidance issued in connection therewith (the "FATCA Provisions"). In furtherance of these efforts, the Subscriber agrees to promptly deliver any additional documentation or information, and updates thereto as applicable, which the Company may request in order to comply with the FATCA Provisions. The Subscriber acknowledges and agrees that, notwithstanding anything to the contrary contained in the Offering Circular, any side letter or any other agreement, the failure to promptly comply with such requests, or to provide such additional information, may result in the withholding of amounts with respect to, or other limitations on, distributions made to the Subscriber and such other reasonably necessary or advisable action by us with respect to the Shares (including, without limitation, required withdrawal), and the Subscriber shall have no claim, and shall not pursue any claim, against us or any other person in connection therewith.

4. Ownership Limitation and Reporting. Subscriber acknowledges and agrees that, pursuant to the terms of the Operating Agreement, Subscriber generally cannot own, or be deemed to beneficially own, as "beneficial ownership" is determined pursuant to Section 13(d) and 13(g) of the Securities Act, more than 24.99% of the total number of Class A shares outstanding of the Series. We may waive such limits on a case-by-case basis in its sole discretion. In addition, if Subscriber holds 10% or more of the Class A shares of the Series entitled to vote, Subscriber acknowledges that Subscriber's name, address and holdings may be reported in the Company's ongoing SEC filings.

5. Survival; Indemnification. All representations, warranties and covenants contained in this Agreement and the indemnification contained herein shall survive (a) the acceptance of this Agreement by us, (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 agreements in Section 3 hereof and that we have relied upon such representations, warranties and covenants in determining Subscriber's qualification and suitability to purchase the Shares. Subscriber hereby agrees to indemnify, defend and hold us harmless, our 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, except as set forth in Section 14 hereof with respect to forum selection, 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.

6. Tax Forms. Subscriber acknowledges that, if Subscriber is a U.S. citizen or other U.S. person (as defined in the instructions to Form W-9), the Company will seek proper tax certifications from Subscriber as provided in Annex B. If Subscriber is a U.S. Citizen or other U.S. person, Subscriber certifies that the information contained in Annex B, when submitted to the Company or Masterworks, is true, correct and complete. Subscriber shall (i) promptly inform the Company of any change in such information, and (ii) furnish to us a new properly completed and executed Form W-9, or Form W-8, certificate or attachment, as applicable, as may be required under the Internal Revenue Service instructions to such forms, the Code or any applicable Treasury Regulations or as may be requested from time to time by us. In addition, Subscriber understands that if Subscriber invests an amount equal to or exceeding $100,000 or purchases 10% or more of the total Class A shares offered in the Offering and Subscriber is a U.S. citizen, U.S. resident or U.S. entity, Subscriber may be required to file additional tax forms such as, but not limited to, IRS Form 926 and Form 5471.

7. Limited Relationship. Subscriber acknowledges and agrees that the purchase and sale of the Shares pursuant to this Agreement is an arms-length transaction between you and the Series. Representatives of Masterworks Advisers, LLC, a wholly owned subsidiary of Masterworks and SEC registered investment adviser, may provide you with limited advisory services in connection with the Offering. Neither the Series, the Company or Masterworks has provided you with any legal, accounting, regulatory or tax advice with respect to the Shares, and you have consulted your own respective legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate.

8. Telephone Consumer Protection Act Consent. Subscriber hereby expressly consents to receiving calls and messages, including auto-dialed and pre-recorded message calls, and SMS messages (including text messages) from the Administrator, its affiliates, agents and others calling at their request or on their behalf, at any telephone numbers that Subscriber has provided to us or Masterworks (including any cellular telephone numbers). Subscriber's cellular or mobile telephone provider will charge Subscriber according to the type of plan Subscriber carries. To unsubscribe from text messages or promotional calls at any time, Subscriber may (i) reply STOP, STOPALL, UNSUBSCRIBE, CANCEL, END or QUIT to any text message such Subscriber receives from the Administrator or Masterworks or (ii) email support@masterworks.com with one of the forgoing words in the subject line. Each Subscriber consents that following such a request to unsubscribe, such Subscriber may receive one final text message from Masterworks confirming such request. Subscriber understands that unsubscribing from promotional and/or account-related texts or calls will not prevent Masterworks from sending Subscriber text messages or telephone calls for purposes other than promotion and marketing.

9. Masterworks Platform. Subscriber acknowledges that it has read, understands and agrees to the terms and conditions, privacy policy and disclaimers on the Masterworks Platform.

10. Transfer Restrictions. Subscriber acknowledges and agrees that the Shares are subject to restrictions on transfer as described in the Offering Materials. The Shares may only be transferred by operation of law or with our consent:

● to an immediate family member or an affiliate of the owner of the Class A shares,

● to a trust or other entity for estate or tax planning purposes,

● as a charitable gift, or

● on a trading platform approved by Masterworks or in a transaction otherwise approved by Masterworks.

We may withhold consent in its sole discretion, including when the Administrator determines that such transfer, assignment or pledge would result in (a) the Artwork being deemed "plan assets" for purposes of ERISA, (b) the transferee holding in excess of 19.9% of the total voting shares, (c) a change of US federal income tax treatment of the Series and the Class A ordinary shares, or (d) we or the Administrator being subject to additional regulatory requirements.

As a condition to recording any transfer on our books and records, the transferring holder may be required to pay a transfer fee equal to the actual third-party transaction cost of recording such transfer. These costs will be charged on a per transaction basis irrespective of the number of Shares transferred. Transfers will also be subject to restrictions imposed under state and international securities laws. Certificates or other instruments representing the Shares 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 APPLICABLE FEDERAL AND STATE SECURITIES LAWS AND THE COMPANY'S OPERATING AGREEMENT AND THE AGREEMENT PURSUANT TO WHICH THESE SECURITIES WERE ORIGINALLY SOLD. ANY PURPORTED TRANSFER IN VIOLATION OF SUCH PROVISIONS SHALL BE VOID, AB INITIO.

11. Arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Subscriber
 agrees that the sole and exclusive forum and remedy for resolution of a Claim be final and binding arbitration pursuant to this Section
 11 (this "Arbitration Provision"). The arbitration shall be conducted in New York, NY. As used in this Arbitration Provision,
 "Claim" shall include any past, present, or future claim, dispute, or controversy involving you (or persons claiming
 through or connected with you), on the one hand, and us and or Masterworks (or persons claiming through or connected with us or Masterworks),
 on the other hand, relating to or arising out of this Agreement, the Shares, the Masterworks Platform, 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 Section (e) below) the validity or enforceability of this Arbitration Provision, any part thereof, or the entire Agreement, provided
 that this provision shall not apply to any Claims arising under Federal securities laws. Claims are subject to arbitration regardless
 of whether they arise from contract; tort (intentional or otherwise); a constitution, statute, common law, or principles of equity;
 or otherwise. Claims include (without limitation) matters arising as initial claims, counter-claims, cross-claims, third-party claims,
 or otherwise. The scope of this Arbitration Provision is to be given the broadest possible interpretation that is enforceable.

b. The
 party initiating arbitration shall do so with the American Arbitration Association (the "AAA") or JAMS. 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.

c. Within
 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
 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 judgment in any court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. We
 agree not to invoke our right to arbitrate an individual Claim that you 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.

e. 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 bring claims for or on behalf of two 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 sub-section (e), and any
 attempt to do so, whether by rule, policy, arbitration decision or otherwise, shall be invalid and unenforceable. Any challenge to
 the validity of this sub-section (e) shall be determined exclusively by a court and not by the administrator or any arbitrator.

f. This
 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 protect confidential information.

g. 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 Common
 Share or any amounts owed on such loans or notes, to any other party. If any portion of this Arbitration Provision other than sub-section
 (e) 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 sub-section
 (e) are finally adjudicated pursuant to the last sentence of sub-section (e) 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.

12. Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE SUBSCRIBER WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT, OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH THE DEALINGS OF ANY PARTNER, THE GENERAL PARTNER, THE INVESTMENT MANAGER, THE ADMINISTRATOR, OR THE PARTNERSHIP IN CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT, TORT, OR OTHERWISE. Any party may file an original counterpart or copy of this Section with any court as written evidence of the consent of the Subscriber to the waiver of its rights to a trial by jury.

13. Damage Limitation. IN NO EVENT SHALL WE BE LIABLE TO THE SUBSCRIBER FOR ANY LOST PROFITS OR SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING SHALL BE INTERPRETED AND HAVE EFFECT TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, RULE OR REGULATION.

14. Choice of Forum for Securities Act Disputes. Subscriber acknowledges that the Operating Agreement contains a provision that requires any complaint asserting a cause of action under the Securities Act to be litigated in the federal district courts of the United States of America.

15. Miscellaneous.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Captions
 and Headings. The Article and Section headings throughout this Agreement are for convenience of reference only and shall in no way
 be deemed to define, limit or add to any provision of this Agreement.

b. Notification
 of Changes. Subscriber agrees and covenants to notify us 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 Agreement to be false
 or incorrect or of any change in any statement made herein occurring prior to the consummation of this Offering.

c. Assignability.
 This 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.

d. Binding
 Effect. 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.

e. Obligations
 Irrevocable. The obligations of Subscriber shall be irrevocable, except with our consent, until the consummation or termination of
 the Offering.

f. Entire
 Agreement; Amendment. This 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.

g. Severability.
 The invalidity or unenforceability of any particular provision of this Agreement shall not affect any other provision hereof, which
 shall be construed in all respects as if such invalid or unenforceable provision were omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Hardware
 and Software Requirements. In order to access and retain documents electronically, you must satisfy the following computer hardware
 and software requirements: access to the Internet; an email account and related software capable of receiving email through the Internet;
 a web browser which is SSL-compliant and supports secure sessions; and hardware capable of running this software. You will also need
 a printer if you wish to print electronic documents on paper, and electronic storage if you wish to download and save documents to
 your computer.

i. Governing
 Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of Delaware, without regard to the conflicts
 of laws principles thereof. To the extent of any disagreement or matter relating to this Agreement, the Shares or the Masterworks
 Platform, including, without limitation, the enforceability of the arbitration provisions of this Agreement or the enforcement of
 any arbitration award, such disagreement or matter shall be exclusively submitted to the federal or state courts located in the City
 of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Notices.
 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 in our records and or the records of Masterworks (or that you submitted
 to us via the Masterworks Platform). You shall send all notices or other communications required to be given hereunder to the Series
 via email at support@masterworks.com (with a copy to be sent concurrently via prepaid certified mail to: Masterworks Administrative
 Services, LLC, 1 World Trade Center, 57th Floor, New York, New York, 10007, Attention: Investor Relations). Any such notice or communication
 must identify the name of the Series and 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 Delaware are legally closed for business.

k. Counterparts.
 This 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. Digital
 Signatures. Digital ("electronic") signatures, often referred to as an "e-signature", enable paperless contracts
 and help speed up business transactions. The 2002 E-Sign Act was meant to ease the adoption of electronic signatures. The mechanics
 of this 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 Agreement will be available to both you and us so it can be stored and accessed at any time, and it will
 be stored and accessible on the Masterworks Platform and hosting provider, including backups. You and the Series each hereby consents
 and agrees that electronically signing this 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 Series. You understand and agree that your e-signature executed in conjunction
 with the electronic submission of this 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
 Agreement you consent to be legally bound by this Agreement. Alternatively, you may opt-out of this provision by printing a copy
 of this Agreement, signing it manually and returning it to us and, if your subscription is accepted, we will manually countersign
 it and return a countersigned copy to you via email.

m. Consent
 to Electronic Delivery of Tax Documents. Please read this disclosure about how we will provide certain documents that we are required
 by the Internal Revenue Service (the "IRS") to send to you ("Tax Documents") in connection with your Shares.
 A Tax Document provides important information you need to complete your tax returns. Tax Documents include Form 1099 and/or ScheduleK-1.
 Occasionally, we are required to send you CORRECTED Tax Documents. Additionally, we may include inserts with your Tax Documents.
 We are 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 these corrected Tax Documents and inserts, electronically
 instead of in paper form. By executing this Agreement on the Masterworks Platform, you are consenting in the affirmative that we
 may send Tax Documents to you electronically, and acknowledging that you are able to access Tax Documents from the site which are
 made available under "My Account." 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 Document is 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:

Masterworks Administrative Services, LLC

Attn: General Counsel

1 World Trade Center, 57th Floor,

New York, NY 10007

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(203) 518-5172

If you withdraw consent to receive Tax Documents electronically, a paper copy will be provided. You Must Keep Your E-mail Address Current With Us. You must promptly notify us of a change of your email address. If your mailing address, email address, telephone number or other contact or distribution payment information changes, you may also provide updated information by contacting us at support@masterworks.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. Electronic
 Delivery of Information. Subscriber and the Series each hereby agrees that all current and future notices, confirmations and other
 communications regarding this 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 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 such communications being diverted to the recipients spam filters
 by the recipients email service provider, or due to a recipient's change of address, or due to technology issues by the recipients
 service provider, the parties agree that the burden of such failure to receive is on the recipient and not the sender, and that the
 sender is under no obligation to resend communications via any other means, including but not limited to postal service or overnight
 courier, and that such communications shall for all purposes, including legal and regulatory, be deemed to have been delivered and
 received. No physical, paper documents will be sent to you, and if you desire physical documents then you agree to be satisfied by
 directly and personally printing, at your own expense, the electronically sent communication(s) and maintaining such physical records
 in any manner or form that you desire.

\* \* \* \* \*

SERIES [\*], A SERIES OF MASTERWORKS VAULT [ ], LLC

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

IN WITNESS WHEREOF, Subscriber or its duly authorized representative has electronically executed and delivered this Subscription Agreement by clicking "I Agree" above and acknowledges that all of the information below is true and correct. If I am a U.S. citizen or other U.S. person, by clicking "I Agree" I, Subscriber, also certify and sign under penalty of perjury, all of the tax certifications set forth in Annex B. (The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding in Annex B.)

Number of Class A Shares:   <br> Purchase Price per Share:  

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|:---|
| SIGNATURE: |
| [By clicking "I Agree" I, Subscriber, have executed this Agreement intending to be legally bound] |
| (Signature of subscriber or authorized officer) |

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SERIES [\*], A SERIES OF MASTERWORKS VAULT [ ], LLC

SUBSCRIPTION AGREEMENT SIGNATURE PAGE

(This countersigned Signature Page will be returned to Subscriber when and if a

subscription has been accepted immediately prior to the applicable closing)

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| | |
|:---|:---|
| ACCEPTED AND AGREED TO: | ACCEPTED AND AGREED TO: |
| SERIES [\*], A SERIES OF MASTERWORKS VAULT [ ], LLC | SERIES [\*], A SERIES OF MASTERWORKS VAULT [ ], LLC |
| By: |  |
| Name: |  |
| Title: | Chief Executive Officer |

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Masterworks Vault [ ], LLC

Attn: General Counsel

1 World Trade Center, 57th Floor,

New York, NY 10007

(203) 518-5172

## Add

**Exhibit 6.1**

**THE COMPANIES ACT (AS REVISED)**

**AMENDED AND RESTATED**

**MEMORANDUM AND**

**ARTICLES OF ASSOCIATION**

**OF**

**MASTERWORKS CAYMAN, SPC**

**(As adopted by Special Resolution dated 30 June 2023)**

**THE COMPANIES ACT (AS REVISED)**

**AMENDED AND RESTATED**

**MEMORANDUM OF ASSOCIATION**

**OF**

**MASTERWORKS CAYMAN, SPC**

**(As adopted by Special Resolution dated 30 June 2023)**

1. The
 name of the Company is Masterworks Cayman, SPC. The Company is an exempted company that is
 a segregated portfolio company.

2. The
 registered office will be situated at the offices of Appleby Global Services (Cayman) Limited,
 71 Fort Street, PO Box 500, Grand Cayman, Cayman Islands, KY1-1106 or at such other place
 in the Cayman Islands as the Directors may from time to time decide.

3. The
 objects for which the Company is established are unrestricted and the Company shall have
 full power and authority to carry out any object that is not prohibited by any law of the
 Cayman Islands.

4. The
 Company shall have and be capable of exercising all the powers of a natural person of full
 capacity as provided by law.

5. The
 liability of the Members is limited to the amount, if any, unpaid on their shares.

6. The
 authorised share capital of the Company is USD 1,000,000 divided into 1,000,000,000 ordinary
 shares of USD 0.001 par value.

7. The
 Company has power to register by way of continuation as a body corporate limited by shares
 under the laws of any jurisdiction outside the Cayman Islands and to apply for deregistration
 in the Cayman Islands.

8. Capitalised
 terms that are not defined herein bear the same meaning given to them in the Articles of
 Association of the Company.

---

| | | |
|:---|:---|:---|
| **CONTENTS** | **CONTENTS** |  |
| 1. | Interpretation | 1 |
| 2. | Offices | 4 |
| 3. | Service Providers | 4 |
| 4. | Issue of Shares | 4 |
| 5. | Register of Members | 5 |
| 6. | Register of Beneficial Ownership | 5 |
| 7. | Record Date | 6 |
| 8. | Share Certificates | 6 |
| 9. | Transfer of Shares | 6 |
| 10. | Transmission of Shares | 7 |
| 11. | Redemption and purchase of Shares | 8 |
| 12. | Variation of Share Rights | 8 |
| 13. | Non-recognition of Trusts | 8 |
| 14. | Lien | 9 |
| 15. | Calls on Shares | 9 |
| 16. | Forfeiture of Shares | 10 |
| 17. | Increase of Capital | 11 |
| 18. | Alteration of Capital | 12 |
| 19. | Segregated Portfolios | 12 |
| 20. | General Meetings | 14 |
| 21. | Notice of General Meetings | 14 |
| 22. | Proceedings at General Meetings | 14 |
| 23. | Voting | 15 |
| 24. | Proxies and Corporate Representatives | 17 |
| 25. | Appointment and Removal of Directors | 19 |
| 26. | Resignation and Disqualification of Directors | 19 |
| 27. | Powers and Duties of Directors | 20 |
| 28. | Proceedings of Directors | 21 |
| 29. | Directors' Interests | 23 |
| 30. | Delegation of Directors' Powers | 23 |
| 31. | Alternate Directors | 24 |
| 32. | Committees of Directors | 24 |
| 33. | Officers | 25 |
| 34. | Directors' Remuneration | 25 |
| 35. | Seals and Deeds | 25 |
| 36. | Dividends | 26 |
| 37. | Reserves | 27 |
| 38. | Capitalisation of Profits | 28 |
| 39. | Share Premium Account | 28 |
| 40. | Financial Year End | 28 |
| 41. | Accounting Records | 28 |
| 42. | Service of Notices and Documents | 29 |
| 43. | Winding Up | 30 |
| 44. | Indemnity | 31 |
| 45. | Continuation | 32 |
| 46. | Amendment of Memorandum and Articles | 32 |

---

**THE COMPANIES ACT (AS REVISED)**

**AMENDED AND RESTATED**

**ARTICLES OF ASSOCIATION**

**OF**

**MASTERWORKS CAYMAN, SPC**

**(As adopted by Special Resolution dated 30 June 2023)**

1. **Interpretation** 

1.1 Table
 A of the First Schedule to the Act shall not apply to the Company.

1.2 In
 these Articles, the following terms shall have the following meanings unless the context
 otherwise requires:

**Act**: the Companies Act (as revised) of the Cayman Islands;

**Articles**: these articles of association of the Company as amended, restated or supplemented from time to time by Special Resolution;

**Auditors**: the auditors for the time being of the Company (if any);

**Beneficial Owner**: has the same meaning as in the Act;

**clear days**: in relation to the period of a notice, that period excluding the day on which the notice is served (or deemed to be served) and the day for which it is given or on which it is to take effect;

**Cayman Director**: the director for the time being of the Company provided by Appleby Global Services (Cayman) Limited;

**Company**: the above named company;

**Directors**: the directors for the time being of the Company;

**Electronic Record**: has the same meaning as in the Electronic Transactions Act (as revised) of the Cayman Islands;

**General Assets**: the assets of the Company which are not Segregated Portfolio Assets and otherwise as specified in section 219 of the Act;

**General Creditors**: the creditors which are not attributable to any Segregated Portfolio;

**Indemnified Person**: any Director, officer or member of a committee duly constituted under these Articles and any liquidator, manager or trustee acting in relation to the affairs of the Company (including anyone previously acting in such capacity) and his heirs, executors, administrators, personal representatives or successors or assigns;

**Member**: has the same meaning as in the Act;

**Memorandum**: the memorandum of association of the Company for the time being;

**Month**: a calendar month;

**Net Asset Value**: the amount determined pursuant to these Articles as being the net asset value of the Company or any class of Shares or Segregated Portfolio as the context may require;

**Ordinary Resolution**: a resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) passed
 by a simple majority of such Members as, being entitled to do so, vote in person or, where
 proxies are allowed, by proxy at a general meeting of the Company and where a poll is taken
 regard shall be had in computing a majority to the number of votes to which each Member is
 entitled; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 written resolution signed by all of the Members entitled to vote at a general meeting of
 the Company in one or more instruments each signed by one or more of the Members and the
 effective date of the resolution so adopted shall be the date on which the instrument, or
 the last of such instruments, if more than one, is executed;

**Register of Beneficial Ownership**: the beneficial ownership register to be kept in accordance with the Act;

**Register of Members**: the register of Members to be kept in accordance with the Act and includes every duplicate Register of Members;

**Registered Office**: the registered office for the time being of the Company in the Cayman Islands;

**Seal**: the common seal of the Company (if any) and includes every duplicate seal;

**Secretary**: the secretary for the time being of the Company and any person appointed to perform any of the duties of the secretary;

**Segregated Portfolio:** each Segregated Portfolio of the Company established and designated as such by the Directors from time to time in accordance with section 216 of the Act, the assets and liabilities of the Company held within or on behalf of each such Segregated Portfolio being segregated from the assets and liabilities of the Company held within or on behalf of any other Segregated Portfolio of the Company and from General Assets and other liabilities of the Company not held within or on behalf of any Segregated Portfolio of the Company;

**Segregated Portfolio Assets:** the assets representing the share capital and reserves and all other assets attributable to or held within or on behalf of a Segregated Portfolio and otherwise as specified in section 219 of the Act;

**Segregated Portfolio Creditors:** the creditors attributable to a Segregated Portfolio;

**Share**: a share in the capital of the Company and includes a fraction of a share, such fractional share being subject to and carrying the corresponding fraction of liabilities, limitations, privileges, qualifications, restrictions, rights and other attributes of a whole share of the same class of shares;

**Share Premium Account**: the share premium account established in accordance with these Articles and the Act;

**Special Resolution**: a resolution that is described as such in its terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) passed
 by a majority of not less than two thirds of such Members as, being entitled to do so, vote
 in person or by proxy, at a duly convened general meeting of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 written resolution signed by all of the Members entitled to vote at a general meeting of
 the Company in one or more instruments each signed by one or more of the Members and the
 effective date of the resolution so adopted shall be the date on which the instrument, or
 the last of such instruments, if more than one, is executed; and

**Subscriber**: the Subscriber to the Memorandum.

1.3 Words
 importing the singular number include the plural number and vice versa and words importing
 the masculine gender include the feminine gender.

1.4 Words
 importing persons include corporations and any other legal or natural persons.

1.5 Any
 reference to writing includes all modes of representing or reproducing words in a visible
 and legible form, including in the form of an Electronic Record.

1.6 The
 word **may** shall be construed as permissive and the word **shall** shall be construed
 as imperative.

1.7 Any
 phrase introduced by the **terms including, include, in particular** or any similar expression
 shall be merely illustrative and shall not limit the sense of the words preceding those terms.

1.8 Where
 any provision of the Act is referred to, the reference is to that provision as modified by
 any subsequent law for the time being in force.

1.9 Unless
 the context otherwise requires, words and expressions defined in the Act bear the same meanings
 in these Articles.

1.10 References
 to days are to calendar days, unless otherwise specified.

1.11 Headings
 are used for convenience only and shall not affect the construction of these Articles.

2. **Offices** 

2.1 The
 Registered Office of the Company shall be at such place in the Cayman Islands as the Directors
 shall from time to time determine.

2.2 The
 Company, in addition to its Registered Office, may establish and maintain such other offices
 in the Cayman Islands or elsewhere as the Directors may from time to time determine.

3. **Service Providers** 

3.1 The
 Directors may appoint any person to act as a service provider to the Company and may delegate
 to any such service provider any of the functions, duties, powers and discretions available
 to them as Directors, upon such terms and conditions (including as to the remuneration payable
 by the Company) and with such powers of sub-delegation, but subject to such restrictions,
 as they think fit.

4. **Issue of Shares** 

4.1 The
 Directors may (subject to the provisions of these Articles and the Act), without prejudice
 to any rights attached to any existing Shares, offer, allot, grant options over or otherwise
 dispose of the Shares with or without preferred, deferred, qualified or other special rights
 or restrictions, whether in regard to dividends or other forms of distribution, voting, return
 of capital or otherwise, and to such persons and on such terms and conditions and for such
 consideration, and at such times as they think fit, provided no Share shall be issued at
 a discount (except in accordance with the provisions of the Act).

4.2 Any
 Share may, with the sanction of a Special Resolution, be issued on the terms that it is,
 or at the option of the Company or the holder is liable, to be redeemed.

4.3 Notwithstanding
 the preceding Article, the Subscriber shall have the power to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1 issue
 one Share to itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2 transfer
 that Share by an instrument of transfer to any person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3 update
 the Register of Members in respect of the issue and transfer of that Share.

4.4 The
 Company shall not issue Shares to bearer.

4.5 The
 Company may, in accordance with the Act, issue fractions of Shares.

5. **Register of Members** 

5.1 The
 Directors shall establish and maintain (or cause to be established and maintained) the Register
 of Members at the Registered Office or at such other place determined by the Directors in
 the manner prescribed by the Act.

6. **Register of Beneficial Ownership** 

6.1 The
 Directors shall cause the Register of Beneficial Ownership to be established and maintained
 at the Registered Office in the manner prescribed by the Act if and for as long as the Company
 is required by the Act to establish and maintain such a register.

6.2 Every
 Member shall provide to the Company upon request written particulars of the beneficial ownership
 of the Shares registered in such Member's name as the Company is required by the Act
 to collect for the Register of Beneficial Ownership and shall advise the Company in writing
 in a timely manner of any changes in those particulars. If the Company is not provided with
 the information required under the Act, the Company may (if permitted by the Act) issue a
 restrictions notice to the relevant "registrable person" (as defined in the Act,
 or, if the registrable person is unknown, the related Member on its behalf) in relation to
 the relevant Shares. Until the restrictions notice is withdrawn by the Company or ceased
 by order of the Grand Court of the Cayman Islands, the effects of the restrictions notice
 are as set out in the Act and the rights of the Member holding the affected Shares to vote,
 transfer or otherwise deal with or receive any distribution (except in a liquidation of the
 Company) on the affected Shares under the provisions of these Articles are suspended.

7. **Record Date** 

7.1 The
 Directors may fix in advance a date as the record date to determine the Members entitled
 to notice of or to vote at a meeting of the Members and, for the purpose of determining the
 Members entitled to receive payment of any dividend, the Directors may, at or within 90 days
 prior to the date of the declaration of such dividend, fix a subsequent date as the record
 date for such determination.

7.2 If
 no such record date is fixed, the record date shall be the date on which notice of the meeting
 is sent or the date on which the resolution of the Directors declaring such dividend is adopted,
 as the case may be. A determination of Members entitled to vote at any meeting of Members
 in accordance with this Article, shall apply to any adjournment thereof.

8. **Share Certificates** 

8.1 Every
 Member shall be entitled, without payment, to a certificate of the Company specifying the
 Share or Shares held by him and the amount paid up thereon.

8.2 Notwithstanding
 the provisions of these Articles, the Directors may resolve not to issue share certificates
 to Members of the Company.

8.3 The
 Company shall not be bound to issue more than one certificate for Shares held jointly by
 more than one person, and delivery of a certificate to one joint holder shall be sufficient
 delivery to all.

8.4 If
 a share certificate is defaced, lost or destroyed, it may be replaced on payment of such
 fee (if any) and on such terms (if any) as to evidence and indemnity, and on the payment
 of expenses of the Company in investigating such evidence and preparing such indemnity as
 the Directors shall think fit and, in case of defacement, on delivery of the old certificate
 to the Company for cancellation.

9. **Transfer of Shares** 

9.1 The
 instrument of transfer of any Share shall be executed by or on behalf of the transferor (and,
 if the Directors so determine, the transferee). The transferor shall be deemed to remain
 the holder of the Share until the name of the transferee is entered in the Register of Members
 in respect of such Share. All instruments of transfer, once registered, may be retained by
 the Company.

9.2 Subject
 to any applicable restrictions contained in these Articles, Shares shall be transferred in
 any usual or common form approved by the Directors.

9.3 The
 Directors may, in their absolute discretion and without assigning any reason therefore, decline
 to register any transfer of any Share. The Directors may require reasonable evidence to show
 the right of the transferor to make the transfer.

9.4 If
 the Directors decline to register a transfer of Shares they shall send notice of the refusal
 to the transferee within one month after the date on which the transfer was lodged with the
 Company.

9.5 The
 Directors may also suspend the registration of the transfers at such times and for such periods
 as the Directors may from time to time determine.

10. **Transmission of Shares** 

10.1 If
 a Member dies, the survivor or survivors (where he was a joint holder), and the legal personal
 representative (where he was sole holder), shall be the only person recognised by the Company
 as having any title to the Share. The estate of a deceased Member is not thereby released
 from any liability in respect of any Share held by him, whether solely or jointly. For the
 purpose of this Article, legal personal representative means the person to whom probate or
 letters of administration has or have been granted in the Cayman Islands or, if there is
 no such person, such other person as the Directors may in their absolute discretion determine
 to be the person recognised by the Company for the purpose of this Article.

10.2 Any
 person becoming entitled to a Share in consequence of the death or bankruptcy of a Member
 or otherwise by operation of applicable law may elect, upon such evidence being produced
 as may be required by the Directors as to his entitlement, either be registered himself as
 a Member in respect of the Share or, instead of being registered himself, to make such transfer
 of the Share as the deceased or bankrupt Member could have made.

10.3 If
 the person so becoming entitled elects to be registered himself, he shall deliver or send
 to the Company a notice in writing signed by him stating that he so elects. If he shall elect
 to transfer the Shares, he shall signify his election by signing an instrument of transfer
 of such Shares in favour of his transferee. All the limitations, restrictions and provisions
 of these Articles relating to the right to transfer and the registration of transfers of
 Shares shall be applicable to any such notice or instrument of transfer as aforesaid as if
 the death of the Member or other event giving rise to the transmission had not occurred and
 the notice or instrument of transfer was an instrument of transfer signed by such Member.

10.4 A
 person becoming entitled to a Share in consequence of the death or bankruptcy of the Member
 (or otherwise by operation of applicable law), upon such evidence being produced as may be
 required by the Directors as to his entitlement, shall be entitled to the same dividends
 and other monies payable in respect of the Share as he would be entitled if he were the holder
 of such Share. However, he shall not be entitled, until he becomes registered as the holder
 of such Share, to receive notices of or to attend or vote at general meetings of the Company
 or (except as aforesaid) to exercise any other rights or privileges of a Member. The Directors
 may at any time give notice requiring such person to elect either to be registered himself
 or to transfer the Share and, if the notice is not complied with within sixty days, the Directors
 may thereafter withhold payment of all dividends and other monies payable in respect of the
 Shares until the requirements of the notice have been complied with.

11. **Redemption and purchase of Shares** 

11.1 Subject
 to the provisions of the Act and the Memorandum, the Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1 purchase
 its own Shares (including any redeemable Shares) in such manner and on such terms as the
 Directors may agree with the relevant Member unless following such purchase there would no
 longer be any issued Shares and may make payment for such purchase or for any redemption
 of Shares in any manner authorised by the Act, including out of capital; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2 reduce
 its share capital and any capital redemption reserve fund in any manner whatsoever.

12. **Variation of Share Rights** 

12.1 If
 at any time the share capital is divided into different classes of Shares, all or any of
 the special rights attached to any class of Shares (unless otherwise provided by the terms
 of issue of the Shares of that class) may be varied or abrogated with the consent in writing
 of the holders of not less than two thirds of the issued Shares of that class or with the
 sanction of a resolution passed by the holders of not less than two thirds of the issued
 Shares of that class as may be present in person or by proxy at a separate general meeting
 of the holders of the Shares of that class. To any such separate general meeting, all of
 the provisions of these Articles relating to general meetings shall mutatis mutandis apply,
 but so that the necessary quorum shall be any one or more persons holding or representing
 by proxy not less than one third of the issued Shares of the class and that any holder of
 Shares of the relevant class present in person or by proxy may demand a poll.

12.2 For
 the purpose of a separate class meeting, the Directors may treat two or more of all classes
 of Shares as forming one class if they consider that such class of Shares would be affected
 in the same way by the proposals under consideration.

12.3 The
 rights conferred upon the holders of any Shares shall not, unless otherwise expressly provided
 in the rights attaching to such Shares, be deemed to be altered by the creation or issue
 of further Shares ranking *pari passu* therewith.

13. **Non-recognition of Trusts** 

13.1 Except
 as required by the Act or these Articles, or under an order of a court of competent jurisdiction,
 the Company shall not be bound by or compelled to recognise in any way, even when notice
 thereof is given to it, any equitable, contingent, future or partial interest in any Share,
 or any other rights in respect of any Share other than an absolute right to the entirety
 thereof in the registered holder.

14. **Lien** 

14.1 The
 Company shall have a first and paramount lien on every Share (not being a fully paid Share)
 for all moneys (whether presently payable or not) called or payable at a date fixed by or
 in accordance with the terms of issue of such Share in respect of that Share, and the Company
 shall also have a first and paramount lien on every Share (other than a fully paid up Share)
 standing registered in the name of a Member, whether singly or jointly with any other person
 for all debts and liabilities of a Member or his estate to the Company, whether the same
 shall have been incurred before or after notice to the Company of any interest of any person
 other than such Member, and whether the time for the payment or discharge of the same shall
 have actually arrived or not, and notwithstanding that the same are joint debts or liabilities
 of such Member or his estate and any other person, whether a Member or not. The Directors
 may at any time, either generally or in any particular case, waive any lien that has arisen
 or declare any Share to be wholly or in part exempt from the provisions of this Article.
 The Company's lien, if any, on a Share shall extend to all dividends payable thereon.

14.2 The
 Company may sell, in such manner as the Directors think fit, any Share on which the Company
 has a lien, provided a sum in respect of which the lien exists is presently payable, and
 is not paid within fourteen days after a notice in writing has been given to the registered
 holder for the time being of the Share, demanding payment of the sum presently payable and
 giving notice of the intention to sell in default of such payment.

14.3 For
 giving effect to any such sale, the Directors may authorise any person to transfer the Share
 sold to the purchaser thereof. The purchaser shall be registered as the holder of the Share
 comprised in any such transfer and he shall not be bound to see to the application of the
 purchase money, nor shall his title to the Share be affected by any irregularity or invalidity
 in the proceedings relating to the sale.

14.4 The
 net proceeds of such sale shall be applied in payment or discharge of the debt or liability
 in respect of which the lien exists and as is presently payable, and any balance shall (subject
 to a like lien for debts or liabilities not presently payable as existed upon the Shares
 prior to the sale) be paid to the person who was the registered holder of the Share immediately
 before such sale.

15. **Calls on Shares** 

15.1 The
 Directors may from time to time make calls upon the Members in respect of any moneys unpaid
 on their Shares (whether in respect of the par value of the Shares or premium or otherwise
 and not, by the terms of issue thereof, made payable at a future date fixed by or in accordance
 with such terms of issue); and each Member shall (subject to the Company serving upon him
 at least 14 days' notice specifying the time or times and place of payment) pay to
 the Company at the time or times and place so specified the amount called on his Shares.
 A call may be revoked or postponed by the Directors wholly or in part as the Directors may
 determine. A call shall be deemed to have been made at the time when the resolution of the
 Directors authorising the call was passed.

15.2 Payment
 of a call may be made by instalments on the direction of the Directors.

15.3 If
 a sum called in respect of a Share is not paid before or on the day appointed for payment
 thereof, the person from whom the sum is due shall pay interest on the sum from the day payment
 is due to the time of the actual payment at such rate as the Directors may determine, but
 the Directors may waive payment of such interest wholly or in part.

15.4 Any
 sum payable in respect of a Share on issue or allotment or at any fixed date, whether in
 respect of the par value of the Share or premium or otherwise, shall be deemed to be a call
 and if it is not paid all the relevant provisions as to payment of interest, forfeiture or
 otherwise of these Articles shall apply as if such sum had become due and payable by virtue
 of a call duly made and notified.

15.5 The
 Directors may issue Shares with different terms as to the amount and times of payment of
 calls.

15.6 The
 joint holders of a Share shall be jointly and severally liable to pay calls in respect thereof.

15.7 The
 Directors may, if they think fit, receive from any Member willing to advance the same, all
 or any part of the moneys uncalled and unpaid upon any Shares held by him; and may (until
 the amount would otherwise become payable) pay interest at such rate (not exceeding six per
 cent without the sanction of the Company in general meeting) as may be agreed upon between
 the Member paying the sum in advance and the Directors.

16. **Forfeiture of Shares** 

16.1 If
 a Member fails to pay any call or instalment of a call by the date it becomes due and payable,
 the Directors may, at any time thereafter while such call or instalment remains unpaid, give
 notice to the Member requiring payment of the unpaid portion of the call or instalment, together
 with any accrued interest and expenses incurred by the Company by reason of such non-payment.

16.2 The
 notice shall specify where and by what date (not being less than the expiration of 14 days'
 from the date of the notice) payment is to be made and shall state that if it is not complied
 with the Shares in respect of which the call was made will be liable to be forfeited. The
 Directors may accept the surrender of any Share liable to be forfeited hereunder and, in
 such case, references to these Articles to forfeiture shall include surrender.

16.3 If
 such notice is not complied with, any Share in respect of which the notice was given may
 thereafter, before the payment of all calls or instalments and interest due in respect thereof
 has been made, be forfeited by a resolution of the Directors. Such forfeiture shall include
 all dividends declared, other distributions or other monies payable in respect of the forfeited
 Shares and not paid before the forfeiture.

16.4 A
 forfeited Share may be sold, re-allotted or otherwise disposed of upon such terms and in
 such manner as the Directors shall think fit, and at any time before a sale, re-allotment
 or disposition, the forfeiture may be cancelled on such terms as the Directors think fit.

16.5 A
 person whose Shares have been forfeited shall cease to be a Member in respect of the forfeited
 Shares, but shall remain liable to pay to the Company all moneys which at the date of forfeiture
 were presently payable by him in respect of the Shares together with interest at such rate
 as the Directors may determine from the date of forfeiture until payment, but his liability
 shall cease if and when the Company receives payment in full of all amounts due in respect
 of the Shares. The Company may enforce payment without being under any obligation to make
 any allowance for the value of the Shares forfeited.

16.6 An
 affidavit in writing by a Director or Secretary of the Company that a Share has been duly
 forfeited on a specified date, shall be conclusive evidence of the facts stated in it as
 against all persons claiming to be entitled to the Share. The Company may receive the consideration,
 if any, given for the Share on any sale, re-allotment or disposition thereof and may authorise
 some person to execute a transfer of the Share in favour of the person to whom the Share
 is sold, re-allotted or otherwise disposed of, and he shall thereupon be registered as the
 holder of the Share, and shall not be bound to see to the application of the purchase money
 (if any) nor shall his title to the Share be affected by any irregularity or invalidity in
 the proceedings in reference to the forfeiture, sale, re-allotment or disposition of the
 Share.

16.7 The
 provisions of these Articles as to forfeiture shall apply in the case of non-payment of any
 sum which, by the terms of issue of a Share, becomes payable at a fixed time, whether on
 account of the par value of the Share, or by way of premium or otherwise, as if the same
 had been made payable by virtue of a call duly made and notified to the Member.

17. **Increase of Capital** 

17.1 The
 Company may from time to time by Ordinary Resolution increase its share capital by such sum,
 to be divided into new Shares of such par value, and with such rights, priorities and privileges
 attached thereto as the resolution shall prescribe.

17.2 Subject
 to any directions given by the Company in a general meeting, all new Shares shall be at the
 disposal of the Directors in accordance with these Articles.

17.3 The
 new Shares shall be subject to the same provisions of these Articles with reference to the
 payment of calls, lien, forfeiture, transfer, transmission and otherwise, as the Shares in
 the original share capital.

18. **Alteration of Capital** 

18.1 The
 Company may from time to time by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.1 consolidate
 and divide all or any of its share capital into Shares of larger par value than its existing
 Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.2 sub
 divide its existing Shares, or any of them, into Shares of smaller par value than is fixed
 by the Memorandum, subject nevertheless to the provisions of section 13 of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.3 cancel
 any Shares which, at the date of the passing of the resolution, have not been taken or agreed
 to be taken by any person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1.4 convert
 all or any paid up Shares into stock, and reconvert all or any stock into paid up Shares
 of any denomination.

18.2 The
 Company may from time to time by Special Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.1 divide
 its Shares into several classes and attach to such classes any preferential, deferred, or
 special rights or restrictions in accordance with these Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.2 change
 the currency denomination of its share capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.3 reduce
 its share capital and any capital redemption reserve fund in any manner whatsoever; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2.4 merge
 or consolidate with any one or more constituent companies (as defined in the Act).

19. **Segregated Portfolios** 

19.1 The
 Directors may create from time to time one or more Segregated Portfolios in order to segregate
 the assets and liabilities of the Company held within or on behalf of a Segregated Portfolio
 from the assets and liabilities of the Company held within or on behalf of any other Segregated
 Portfolio and from the General Assets and the liabilities of the Company not held within
 or on behalf of any Segregated Portfolio of the Company. When any Segregated Portfolio no
 longer has any assets or liabilities of any class corresponding to such Segregated Portfolio
 in issue, the Directors may close such Segregated Portfolio.

19.2 Each
 Segregated Portfolio shall be separately designated or identified in accordance with Part
 XIV of the Act and shall include in its name the words "**Segregated Portfolio** ",
 "**SP**, "**S.P.**" or otherwise as permitted under the Act.

19.3 The
 Directors shall establish and maintain (or cause to be established and maintained) procedures
 to identify and segregate and keep segregated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3.1 each
 asset as either a General Asset or a Segregated Portfolio Asset and in the case of a Segregated
 Portfolio Asset, the Segregated Portfolio to which it is attributed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3.2 each
 liability as being that of a General Creditor or a Segregated Portfolio Creditor and in the
 case of a Segregated Portfolio Creditor, the Segregated Portfolio of which such person is
 a creditor.

19.4 The
 proceeds from the issue of Shares in each class shall be applied in the books of the Company
 to the Segregated Portfolio established for that class. The assets and liabilities and income
 and expenditure attributable to that Segregated Portfolio shall be applied to such Segregated
 Portfolio and, subject to the provisions of these Articles, to no other Segregated Portfolio.

19.5 The
 Segregated Portfolio Assets of each Segregated Portfolio shall be held, subject to the provisions
 of the Act and these Articles, only for the benefit of the holders of the relevant Shares
 of each class corresponding to such Segregated Portfolio and applied solely in respect of
 the liabilities attributed to such Segregated Portfolio in accordance with the provisions
 of the Act.

19.6 Where
 any asset is derived from another asset, such derivative asset shall be applied in the books
 of the Company to the same Segregated Portfolio as the asset from which it was derived and,
 on each revaluation of an asset, the increase or diminution of value shall be applied to
 the same Segregated Portfolio and, subject to the provisions of these Articles, to no other
 Segregated Portfolio.

19.7 In
 the case of any asset or liability of the Company which the Directors do not consider is
 attributable to a particular Segregated Portfolio or Segregated Portfolios, the Directors
 shall, subject to the Act, have discretion to determine the basis upon which any such asset
 or liability shall be allocated between or among Segregated Portfolios and the General Assets
 and the Directors shall have power at any time and from time to time to vary such basis.

19.8 Notwithstanding
 anything to the contrary in these Articles, in no event shall the liabilities of an insolvent
 Segregated Portfolio be satisfied out of the assets of another Segregated Portfolio or the
 General Assets.

20. **General Meetings** 

20.1 The
 Directors may, whenever they think fit, convene an extraordinary general meeting. If at any
 time there are not sufficient Directors capable of acting to form a quorum, any Director,
 or any one or more Members holding in the aggregate not less than one third of the total
 issued share capital of the Company entitled to vote, may convene an extraordinary general
 meeting in the same manner as nearly as possible as that in which meetings may be convened
 by the Directors.

20.2 The
 Directors shall, upon the requisition in writing of one or more Members holding in the aggregate
 not less than one tenth of such paid up capital of the Company as at the date of the requisition
 carries the right of voting at general meetings, convene an extraordinary general meeting.
 Any such requisition shall express the object of the meeting proposed to be called, and must
 be signed by the requisitionists and deposited at the Registered Office, and may consist
 of several documents in like form, each signed by one or more requisitionists.

20.3 If
 there are no Directors as at the date of the deposit of the Members' requisition or
 if the Directors do not convene a general meeting within 21 days from the date of the deposit,
 the requisitionists or any or any of them or any other Member or Members holding in the aggregate
 not less than one tenth of such paid up capital of the Company as at the date of the requisition,
 may convene an extraordinary general meeting. A general meeting convened by requisitionists
 shall be convened in the same manner as nearly as possible as that in which general meetings
 are to be convened by the Directors.

21. **Notice of General Meetings** 

21.1 At
 least five clear days' notice shall be given of any general meeting. Every notice shall
 specify the place, the day and the time of meeting and, in the case of special business,
 the general nature of the business to be conducted at the general meeting, and shall be given
 in the manner provided in these Articles or in such other manner (if any) as may be prescribed
 by the Company, to such persons as are entitled to receive such notices from the Company.
 A general meeting may be convened by such shorter notice, or without notice, by a majority
 in number of the Members having the right to attend and vote at the meeting, being a majority
 together holding not less than ninety-five percent in nominal value of the Shares giving
 that right.

21.2 The
 accidental omission to give notice of a meeting to, or the non-receipt of a notice of a meeting
 by, any Member entitled to receive notice shall not invalidate the proceedings at any meeting.

22. **Proceedings at General Meetings** 

22.1 All
 business shall be deemed special that is transacted at an extraordinary general meeting.

22.2 No
 business shall be transacted at any general meeting unless a quorum of Members is present
 at the time that the meeting proceeds to business, but the absence of a quorum shall not
 preclude the appointment, choice or election of a chairman, which shall not be treated as
 part of the business of the Meeting. Save as herein otherwise provided, one or more Members
 holding in the aggregate not less than one third of the total issued share capital of the
 Company present in person or by proxy and entitled to vote shall be a quorum.

22.3 If
 within five minutes (or such longer time as the chairman of the meeting may determine to
 wait) after the time appointed for the meeting, a quorum is not present, the meeting, if
 convened upon the requisition of Members, shall be dissolved. In any other case, it shall
 stand adjourned to the same day in the next week, at the same time and place, and if at the
 adjourned meeting a quorum is not present within half an hour from the time appointed for
 the meeting, the Members present shall be a quorum.

22.4 A
 meeting of the Members may be held by telephone, electronic or other communication facilities
 (including, without limiting the generality of the foregoing, by telephone or video conferencing)
 by which all persons participating in the meeting can communicate with each other simultaneously
 and instantaneously, and participation in such a general meeting shall constitute presence
 in person at such meeting.

22.5 Any
 Director shall be entitled to attend and speak at any general meeting of the Company.

22.6 The
 chairman (if any) of the Board of Directors shall preside as chairman at every general meeting
 of the Company. If there is no such chairman, or if at any meeting he is not present within
 five minutes after the time appointed for holding the meeting or is unwilling to act as chairman,
 the Directors present shall choose one of their number to act or, if only one Director is
 present, he shall preside as chairman if willing to act. If no Director is present, or if
 each of the Directors present declines to take the chair, the Members present and entitled
 to vote shall elect one of their number to be chairman.

22.7 The
 chairman may, with the consent of a meeting at which a quorum is present (and shall if so
 directed by the meeting) adjourn the meeting from time to time and from place to place, but
 no business shall be transacted at any adjourned meeting other than the business left unfinished
 at the meeting from which the adjournment took place. When a meeting is adjourned for ten
 days or more, notice of the adjourned meeting shall be given as in the case of an original
 meeting. Save as aforesaid, it shall not be necessary to give any notice of an adjournment
 or of the business to be transacted at an adjourned meeting.

23. **Voting** 

23.1 Save
 where a Special Resolution or other greater majority is required by the Act or these Articles,
 any question proposed for consideration at any general meeting shall be decided by an Ordinary
 Resolution.

23.2 At
 any general meeting, a resolution put to the vote of the meeting shall be decided on a show
 of hands, unless (before or on the declaration of the result of the show of hands, or on
 the withdrawal of any other demand for a poll) a poll is demanded by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.1 the
 chairman of the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.2 at
 least three Members present in person or by proxy; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.3 any
 Member or Members present in person or by proxy and holding collectively not less than one
 tenth of the total voting rights of all the Members having the right to vote at such meeting;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.4 a
 Member or Members present in person or by proxy holding Shares conferring the right to vote
 at such meeting, being Shares on which an aggregate sum has been paid up equal to not less
 than one tenth of the total sum paid up on all such Shares conferring such right.

23.3 Unless
 a poll is duly demanded and the demand is not withdrawn, a declaration by the chairman that
 a resolution has, on a show of hands, been carried or carried unanimously, or by a particular
 majority, or lost and an entry to that effect in the minutes of the proceedings of the Company
 shall be conclusive evidence of that fact, without proof of the number or proportion of the
 votes recorded in favour of, or against, that resolution. The demand for a poll may be withdrawn
 by the person or any persons making it at any time prior to the declaration of the result
 of the poll.

23.4 If
 a poll is duly demanded, it shall be taken in such manner as the chairman directs, and the
 result of the poll shall be deemed to be the resolution of the meeting at which the poll
 was demanded.

23.5 In
 the case of an equality of votes at a general meeting, whether on a show of hands or on a
 poll, the chairman of the meeting at which the show of hands takes place or at which the
 poll is demanded, shall not be entitled to a second or casting vote and the resolution shall
 fail.

23.6 A
 poll demanded on the election of a chairman or on a question of adjournment shall be taken
 forthwith. A poll demanded on any other question shall be taken in such manner and either
 forthwith or at such time later in the meeting as the chairman of the meeting shall direct.

23.7 The
 demand for a poll shall not prevent the continuance of a meeting for the transaction of any
 business other than the question on which the poll has been demanded and it may be withdrawn
 at any time before the close of the meeting or the taking of the poll, whichever is the earlier.

23.8 On
 a poll votes may be cast either personally or by proxy.

23.9 A
 person entitled to more than one vote on a poll need not use all his votes or cast all the
 votes he uses in the same way.

23.10 On
 a show of hands, every Member present in person or by proxy and entitled to vote shall have
 one vote. On a poll, every Member present in person or by proxy and entitled to vote shall
 have one vote for each Share of which he is the registered holder.

23.11 In
 the case of joint holders of a Share, the vote of the senior who tenders a vote, whether
 in person or by proxy, shall be accepted to the exclusion of the votes of the other joint
 holders; and for this purpose seniority shall be determined by the order in which the names
 stand in the Register of Members in respect of the joint holding.

23.12 A
 Member of unsound mind, or, in respect of whom an order has been made by any court having
 jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his receiver,
 committee, *curator bonis* or other person of similar nature appointed by such court,
 and any such receiver, committee, curator bonis or other person may vote by proxy and may
 otherwise act and be treated as such Member for the purpose of the general meetings.

23.13 No
 Member, unless the Directors otherwise determine, shall be entitled to vote at any general
 meeting, unless all calls or other sums presently payable by him in respect of Shares in
 the Company have been paid.

23.14 No
 objection shall be raised as to the qualification of any voter or as to whether any votes
 have been properly counted except at the general meeting or adjourned general meeting at
 which the vote objected to is given or tendered and every vote not disallowed at the meeting
 shall be valid. Any objection made in due time and in accordance with these Articles shall
 be referred to the chairman whose decision shall be final and conclusive.

24. **Proxies and Corporate Representatives** 

24.1 Subject
 to these Articles, each Member entitled to attend and vote at a general meeting may attend
 and vote at the general meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1.1 in
 person, or where a Member is a company or non-natural person, by a duly authorised corporate
 representative; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1.2 by
 one or more proxies.

24.2 A
 proxy or corporate representative need not be a Member.

24.3 The
 instrument appointing a proxy shall be in writing under the hand of the Member or his duly
 authorised attorney or, if the Member is a corporation, under the hand of its duly authorised
 representative.

24.4 An
 instrument appointing a proxy may be in any usual or common form (or such other form as the
 Directors may approve) and may be expressed to be for a particular meeting or any adjournment
 thereof or may appoint a standing proxy until notice of revocation is received at the Registered
 Office or at such place or places as the Directors may otherwise specify for the purpose.

24.5 Any
 corporation which is a Member of the Company may by resolution of its directors or other
 governing body authorise such person as it thinks fit to act as its representative at any
 meeting of the Company or of any class of Members of the Company, and the person so authorised
 shall be entitled to exercise the same powers on behalf of the corporation which he represents
 as that corporation could exercise if it were an individual Member of the Company.

24.6 The
 instrument appointing a proxy or corporate representative, and the power of attorney (if
 any) under which it is signed, together with such other evidence as to its due execution
 as the Directors may from time to time require, shall be deposited at the Registered Office
 of the Company or at such other place as is specified for that purpose in the notice convening
 the meeting or in any notice of any adjournment or, in either case or the case of a written
 resolution, in any document sent therewith, not less than 24 hours (or such longer or shorter
 time as the Directors may determine) before the time for holding the meeting or adjourned
 meeting at which the person named in the instrument proposes to vote.

24.7 In
 default of any of the provisions in these Articles to deposit any instrument of proxy or
 authorisation at the Registered Office of the Company or at such other place as is specified
 for that purpose in the notice convening the meeting, the instrument of proxy or authorisation
 shall not be treated as valid provided that the chairman of the meeting may in his discretion
 accept an instrument of proxy or authorisation sent by email or fax upon receipt of email
 or fax confirmation that the signed original thereof has been sent.

24.8 The
 operation of a standing proxy or authorisation shall be suspended at any general meeting
 or adjournment thereof at which the Member is present in person or by specially appointed
 proxy. The Directors may require evidence as to the due execution and continuing validity
 of any standing proxy or authorisation and the operation of any such standing proxy or authorisation
 shall be deemed to be suspended until the Directors determine that they have received such
 satisfactory evidence.

24.9 In
 the case of a poll taken subsequently to the date of a meeting or adjourned meeting, the
 instrument appointing the proxy or corporate representative referred to in these Articles
 shall be deposited at the Registered Office of the Company or at such other place as is specified
 for that purpose in the notice convening the meeting before the time appointed for the taking
 of the poll.

24.10 The
 instrument appointing a proxy shall be deemed to confer authority to demand or join in demanding
 a poll, to speak at the meeting and to vote on any amendment of a written resolution or amendment
 of a resolution put to the meeting for which it is given as the proxy thinks fit. The instrument
 of proxy or authorisation shall, unless the contrary is stated therein, be valid as well
 for any adjournment of the meeting as for the meeting to which it relates.

24.11 A
 vote given in accordance with the terms of an instrument of proxy or authorisation shall
 be valid notwithstanding the previous death or unsoundness of mind of the principal, or revocation
 of the proxy or of the corporate authority, unless notice in writing of such death, unsoundness
 of mind or revocation was received by the Company at the Registered Office (or such other
 place as may be specified for the delivery of instruments of proxy or authorisation in the
 notice convening the meeting or other documents sent therewith) before the commencement of
 the general meeting, or adjourned meeting, at which the instrument or proxy is used.

24.12 In
 the case of a written resolution to be signed by a corporate representative, the instrument
 appointing the corporate representative shall be deposited at the Registered Office of the
 Company or at such other place as is specified for that purpose in the notice convening the
 meeting prior to the effective date of the written resolution.

24.13 Subject
 to the Act, the Directors may at their discretion waive any of the provisions of these Articles
 relating to proxies or authorisations and, in particular, may accept such verbal or other
 assurances as they think fit as to the right of any person to attend, speak and vote on behalf
 of any Member at general meetings or to sign written resolutions.

25. **Appointment and Removal of Directors** 

25.1 The
 names of the first Directors shall be determined in writing by the subscriber of the Memorandum.

25.2 The
 number of Directors shall be not less than one nor, unless the Members by Ordinary Resolution
 may otherwise determine, more than ten. Directors shall serve for such term as the Members
 by Ordinary Resolution may determine, or in the absence of such determination, until they
 are removed from office or are disqualified or resign under the terms of these Articles.

25.3 The
 Directors shall have the power at any time, and from time to time, to appoint any person
 to be a Director, either to fill a vacancy or as an additional Director.

25.4 The
 Company may by Ordinary Resolution appoint and remove a Director or Directors.

25.5 No
 shareholding qualification shall be required for Directors unless otherwise required by the
 Company by Ordinary Resolution.

26. **Resignation and Disqualification of Directors** 

26.1 The
 office of Director shall *ipso facto* be vacated if the Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1.1 resigns
 his office by notice in writing to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1.2 becomes
 of unsound mind and the Directors resolve that his office is vacated; or

26.1.3 becomes
 bankrupt under the laws of any country or makes any arrangement or composition with his creditors
 generally; or

26.1.4 if
 he ceases to be a Director by virtue of, or becomes prohibited from being a Director by reason
 of, an order made under any provisions of any law or enactment.

27. **Powers and Duties of Directors** 

27.1 The
 business of the Company shall be managed by the Directors, who may pay all expenses incurred
 in promoting and registering the Company and may exercise all such powers of the Company
 as are not, by the Act or these Articles, required to be exercised by the Company in general
 meeting, subject, nevertheless, to any clause of these Articles, to the provisions of the
 Act and to such regulations, being not inconsistent with the aforesaid clauses or provisions,
 as may be prescribed by the Company in general meeting but no regulation made by the Company
 in general meeting shall invalidate any prior act of the Directors which would have been
 valid if that regulation had not been made.

27.2 The
 Directors may exercise all the powers of the Company to borrow money and to mortgage or charge
 its undertaking, property and assets (present and future) and uncalled capital or any part
 thereof, to issue debentures, debenture stock and other securities whenever money is borrowed
 or as security for any debt, liability or obligation of the Company or of any third party.

27.3 All
 cheques, promissory notes, drafts, bills of exchange and other instruments, whether negotiable
 or not, and all receipts for moneys paid to the Company shall be signed, drawn, accepted,
 endorsed or otherwise executed, as the case may be, in such manner as the Directors shall
 from time to time by resolution determine.

27.4 The
 Directors on behalf of the Company may provide benefits, whether by the payment of gratuities
 or pensions or otherwise, for any person including any Director or former Director who has
 held any executive office or employment with the Company or any body corporate which is or
 has been a subsidiary or affiliate of the Company or a predecessor in the business of the
 Company or of any such subsidiary or affiliate, and to any member of his family or any person
 who is or was dependent on him, and may contribute to any fund and pay premiums for the purchase
 or provision of any such gratuity, pension or other benefit, or for the insurance of any
 such person.

27.5 No
 document or deed otherwise duly executed and delivered by or on behalf of the Company shall
 be regarded as invalid merely because at the date of delivery of the deed or document, the
 Director, Secretary or other officer or person who shall have executed the same and/or affixed
 the Seal (if any) thereto as the case may be for and on behalf of the Company shall have
 ceased to hold such office or to hold such authority on behalf of the Company.

27.6 The
 Directors may from time to time appoint one of their number to be a managing director, joint
 managing director or an assistant managing director or to hold any other employment or executive
 office with the Company for such period and upon such terms as the Directors may determine
 and may revoke or terminate any such appointments. Any such revocation or termination as
 aforesaid shall be without prejudice to any claim for damages that such Director may have
 against the Company or the Company may have against such Director for any breach of any contract
 of service between him and the Company which may be involved in such revocation or termination.
 Any person so appointed shall receive such remuneration (if any) (whether by way of salary,
 commission, participation in profits or otherwise) as the Directors may determine, and either
 in addition to or in lieu of his remuneration as a Director.

27.7 Notwithstanding
 any provision in these Articles to the contrary, a sole Director shall be entitled to exercise
 all of the powers and functions of the Directors which may be imposed on them by Act or by
 these Articles.

28. **Proceedings of Directors** 

28.1 The
 Directors may meet together (either within or without the Cayman Islands) for the despatch
 of business, adjourn and otherwise regulate their meetings and proceedings, as they think
 fit. Questions arising at any meeting shall be decided by a majority of votes. In case of
 an equality of votes the chairman shall not have a second or casting vote and the motion
 shall be deemed to have been lost. Notwithstanding the foregoing, all material business activities
 of the Company must be approved by a Cayman Director, provided that a Cayman Director may
 resign or be removed or replaced as a Director pursuant to Article 25 without such consent.

28.2 A
 Director or alternate Director may, and the Secretary on the requisition of a Director or
 alternate Director shall, at any time, summon a meeting of Directors by at least five days'
 notice in writing to every Director and alternate Director which notice shall set forth the
 general nature of the business to be considered provided however that notice may be waived
 by all the Directors (or their alternates) either at, before or retrospectively after the
 meeting is held provided further that notice or waiver thereof may be given by email or fax.

28.3 The
 quorum for the transaction of the business of the Directors may be fixed by the Directors
 and unless so fixed by the Directors, shall be two Directors, and shall be one if there is
 a sole Director, provided that quorum must always include at least one Cayman Director or
 such Cayman Director's alternate. An alternate appointed by a Director shall be counted
 in a quorum at a meeting at which the Director appointing him is not present provided always
 that where a Director is acting in his own right and also as an alternate he is only counted
 once in the quorum. A Director who ceases to be a Director at a meeting of the Directors
 may continue to be present and to act as a Director and be counted in the quorum until the
 termination of the meeting provided no other Director objects and if otherwise a quorum of
 Directors would not be present.

28.4 The
 continuing Directors may act notwithstanding any vacancy in their body, but, if and so long
 as their number is reduced below the number fixed by or pursuant to these Articles as the
 necessary quorum of Directors, the continuing Directors may act for the purpose of increasing
 the number of Directors to that number, or of summoning a general meeting of the Company,
 but for no other purpose.

28.5 The
 Directors may elect a chairman of their meetings and determine the period for which he is
 to hold office; but if no such chairman is elected, or if at any meeting the chairman is
 not present within five minutes after the time appointed for holding the same, the Directors
 present may choose one of their number to be chairman of the meeting.

28.6 A
 resolution in writing signed by all of the Directors or all of the members of a committee
 of Directors for the time being entitled to receive notice of a meeting of the Directors
 (or by an alternate Director as provided in these Articles), including a resolution signed
 in counterpart and/or sent or evidenced by way of signed fax or electronic transmission,
 shall be as valid and effectual as if it had been passed at a meeting of the Directors or
 of a committee of Directors duly called and constituted.

28.7 To
 the extent permitted by law, a meeting of the Directors or a committee appointed by the Directors
 may be held by means of such telephone, electronic or other communication facilities (including,
 without limiting the generality of the foregoing, by telephone or by video conferencing)
 as permit all persons participating in the meeting to communicate with each other simultaneously
 and instantaneously and participation in such a meeting shall constitute presence in person
 at such meeting. Such a meeting shall be deemed to take place where the largest group of
 those Directors participating in the meeting is physically assembled, or, if there is no
 such group, where the chairman of the meeting then is.

28.8 All
 acts done by any meeting of the Directors or of a committee of Directors, or by any person
 acting as a Director shall, notwithstanding that it be afterwards discovered that there was
 some defect in the appointment of any such Director or person acting as aforesaid, or that
 they or any of them were disqualified, be as valid as if every such person had been duly
 appointed and was qualified to be a Director.

28.9 The
 Directors shall cause minutes to be made and records kept for the purpose of recording:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.9.1 all
 appointments of officers made by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.9.2 the
 names of the Directors and other persons present at each meeting of the Directors and of
 any committee of the Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.9.3 all
 resolutions and proceedings at all meetings of the Members of the Company or any class of
 Members and of the Directors and of committees of Directors; and the chairman of all such
 meetings or of any meeting confirming the minutes thereof shall sign the same.

29. **Directors' Interests** 

29.1 A
 Director may hold any other office or place of profit with the Company (except that of Auditor)
 in conjunction with his office of Director for such period and upon such terms as to remuneration
 and otherwise as the Directors may determine.

29.2 A
 Director or officer may act by himself or his firm in a professional capacity for the Company
 (otherwise than as Auditor), and he or his firm shall be entitled to remuneration for professional
 services as if he were not a Director or officer.

29.3 No
 Director or officer shall be disqualified from his office or prevented by such office from
 holding any office or place of profit under the Company or under any company in which the
 Company shall be a Member or have any interest, or from contracting with the Company, either
 as vendor, purchaser or otherwise, nor shall any such contract or any contract or transaction
 entered into by or on behalf of the Company in which any Director or officer shall be in
 any way interested be or be liable to be avoided nor shall any Director or officer so contracting,
 dealing or being so interested be liable to account to the Company for any profit realised
 by any such contract or transaction by reason of such Director holding office or of the fiduciary
 relation thereby established.

29.4 A
 Director (or his alternate Director in his absence) shall be at liberty to vote in respect
 of any contract or transaction in which he is interested provided that the nature of the
 interest of the Director in any such contract or transaction shall be disclosed by him at
 or prior to its consideration and any vote thereon.

29.5 The
 nature of the interest of any Director or officer in any contract, dealing or transacting
 with or affecting the Company shall be disclosed by him at or prior to its consideration
 and any vote thereon and a general notice that a Director or officer is a shareholder of
 any specified firm or company and/or is to be regarded as interested in any transaction with
 such firm or company shall be sufficient disclosure hereunder and after such general notice
 it shall not be necessary to give special notice relating to any particular transaction.

30. **Delegation of Directors' Powers** 

30.1 Directors
 may from time to time and at any time by power of attorney or otherwise appoint any company,
 firm or person or fluctuating body of persons, whether nominated directly or indirectly by
 the Directors, to be the attorney or attorneys of the Company for such purposes and with
 such powers, authorities and discretions (not exceeding those vested in or exercisable by
 the Directors under these Articles) and for such period and subject to such conditions as
 they may think fit, and any such power of attorney may contain such provisions for the protection
 and convenience of persons dealing with any such attorney and of such attorney as the Directors
 may think fit and may also authorise any such attorney to delegate all or any of the powers,
 authorities and discretions vested in him.

30.2 The
 Directors may delegate any of the powers exercisable by them to a Managing Director, Director
 or any other person or persons acting individually or jointly as they may from time to time
 by resolution appoint upon such terms and conditions and with such restrictions as they may
 think fit, and may from time to time by resolution revoke, withdraw, alter or vary all or
 any such powers.

31. **Alternate Directors** 

31.1 Any
 Director may by writing appoint any other Director, or other person willing to act, to be
 his alternate and remove his alternate so appointed by him. Such appointment or removal shall
 be by notice to the Registered Office signed by the Director making or revoking the appointment
 or in any other manner approved by the Directors, and shall be effective on the date the
 notice is served and the alternate shall be notified of such appointment or revocation. Subject
 to the removal by the appointing Director, the alternate shall continue in office until the
 date on which the Director who appointed him ceases to be a Director. An alternate may also
 be a Director in his own right and may act as alternate to more than one Director.

31.2 An
 alternate shall be entitled to receive notice of all meetings of the Directors, attend, be
 counted in the quorum, vote and act in the place of the Director who appointed him at every
 such meeting at which the appointing Director is not personally present, and generally to
 perform all the functions of the Director who appointed him as a Director in his absence.

31.3 These
 Articles (except as regards powers to appoint an alternate and remuneration) apply equally
 to the alternate as though he were the Director in his own right.

31.4 An
 alternate Director shall be deemed for all purposes to be a Director and shall alone be responsible
 for his own acts and defaults and shall not be deemed to be the agent of the Director appointing
 him. The signature of an alternate to any resolution in writing of the Directors or a committee
 thereof shall, unless the terms of the appointment provide to the contrary, be as effective
 as the signature of each Director to whom he is alternate Director.

32. **Committees of Directors** 

32.1 The
 Directors may delegate any of their powers to committees consisting of such member or members
 of their body as they think fit; any committee so formed shall, in the exercise of the powers
 so delegated, conform to any regulations that may be imposed on it by the Directors.

32.2 A
 committee may elect a chairman of its meetings; if no such chairman is elected, or if at
 any meeting the chairman is not present within five minutes after the time appointed for
 holding the same, the members present may choose one of their number to be chairman of the
 meeting.

32.3 A
 committee may meet and adjourn as it thinks proper. Questions arising at any meeting shall
 be determined by a majority of votes of the members present and in case of an equality of
 votes the chairman shall not have a second or casting vote and the motion shall be deemed
 to have been lost.

33. **Officers** 

33.1 The
 Directors may appoint a Secretary and such other officers as they may from time to time consider
 necessary upon such terms as to duration of office, remuneration and otherwise as they may
 think fit. Such Secretary or other officers need not be Directors and in the case of the
 other officers may be ascribed such titles as the Directors may decide and the Directors
 may revoke or terminate any such election or appointment. Any such revocation or termination
 shall be without prejudice to any claim for any damages that such officer may have against
 the Company or the Company may have against such officer for any breach of any contract of
 service between him and the Company which may be involved in such revocation or termination.
 Save as provided in the Act or these Articles, the powers and duties of the officers of the
 Company shall be such (if any) as are determined from time to time by the Directors.

34. **Directors' Remuneration** 

34.1 The
 remuneration to be paid to the Directors, if any, shall be determined by the Company in general
 meeting or, in the absence of such a determination, by the Directors.

34.2 Each
 Director shall also be entitled to be paid his reasonable travelling, hotel and other expenses
 properly incurred by him in connection with his attendance at meetings of the Directors,
 committees of the Directors or general meetings of the Company, or otherwise in connection
 with the business of the Company, or to receive a fixed allowance in respect thereof as may
 be determined by the Directors, or a combination partly of one such method and partly the
 other.

34.3 The
 Directors may by resolution approve additional remuneration to any Director for services
 which in the opinion of the Directors go beyond the ordinary duties of a Director, and such
 extra remuneration shall be in addition to any remuneration provided for, by or pursuant
 to any other Article.

35. **Seals and Deeds** 

35.1 The
 Directors may determine that the Company shall have a Seal, and if they so determine, shall
 provide for the safe custody of the Seal. The Seal shall only be used by the authority of
 the Directors and in the presence of a Director or the Secretary or such other person as
 the Directors may by resolution appoint for this purpose, and every instrument to which the
 Seal affixed shall be signed by the relevant person. Notwithstanding the above, annual returns
 and notices filed under the Act may be executed either as a deed or under Seal and in either
 case without the need for the authority of a resolution of the Directors.

35.2 The
 Company may maintain in any place or places outside the Cayman Islands a facsimile of any
 Seal and such facsimile seal shall be affixed in the same way as if it were the Seal.

35.3 In
 accordance with the Act, the Company may execute any deed or other instrument (which would
 otherwise be required to be executed under Seal) by the signature of such deed or instrument
 as a deed by a Director or by the Secretary of the Company or by such other person as the
 Directors may appoint or by any other person or attorney on behalf of the Company appointed
 by a deed or other instrument executed as a deed by a Director or the Secretary or such other
 person as aforesaid.

36. **Dividends** 

36.1 The
 Directors may from time to time declare dividends to be paid to the Members according to
 their rights and interests, including such interim dividends as appear to the Directors to
 be justified by the position of the Company. The Directors may also pay any fixed cash dividend
 which is payable on any Shares of the Company half yearly or on such other dates, whenever
 the position of the Company, in the opinion of the Directors, justifies such payment.

36.2 No
 dividend shall be paid otherwise than out of profits or out of monies otherwise available
 for dividend in accordance with the Act.

36.3 Subject
 to the rights of Members, if any, entitled to Shares with special rights as to dividends,
 all dividends shall be declared and paid according to the amount paid up on the Shares in
 respect of which the dividend is paid and any dividend on any class of Shares not fully paid
 shall be declared and paid according to the amounts paid on the Shares of that class, but
 if and so long as nothing is paid up on any of the Shares in the Company, dividends may be
 declared and paid according to the number of Shares. No amount paid on a Share in advance
 of calls shall, while carrying interest, be treated for the purposes of this Article as paid
 on the Share. Dividends may be apportioned and paid pro rata according to the amounts paid-up
 on the Shares during any portion or portions of the period in respect of which the dividend
 is paid.

36.4 The
 Directors may deduct from any dividend, distribution or other monies payable to a Member
 by the Company on or in respect of any Shares all sums of money (if any) presently payable
 by him to the Company on account of calls or otherwise in respect of Shares of the Company.

36.5 If
 several persons are registered as joint holders of any Share, any of them may give effectual
 receipts for any dividend or other money payable on or in respect of the Share.

36.6 Any
 dividend may be paid by cheque or warrant sent through the post to the address of the Member
 or person entitled thereto in the Register of Members or, in the case of joint holders addressed
 to the holder whose name stands first in the Register of Members in respect of the Shares
 at his registered address as appearing on the Register of Members or to such person and such
 address as the Member or person entitled or such joint holders as the case may be may direct
 in writing. Every such cheque or warrant shall, unless the holder or joint holders may in
 writing direct, be made payable to the order of the person to whom it is sent or to the order
 of the holder or, in the case of joint holders, to the order of the holder whose name stands
 first in the Register of Members in respect of such Shares, and shall be sent at his or their
 risk and payment of the cheque or warrant by the bank on which it is drawn shall constitute
 a good discharge to the Company. Any one of two or more joint holders may give effectual
 receipts for any dividends, distributions or other monies payable or property distributable
 in respect of the Shares held by such joint holders.

36.7 The
 Directors may declare that any dividend or distribution is paid wholly or partly by the distribution
 of specific assets and, in particular, of paid up shares, debentures or debenture stock of
 any other company or in any one or more of such ways, and where any difficulty arises in
 regard to such dividend or distribution, the Directors may settle the same as they think
 expedient, and in particular may issue fractional Shares or ignore fractions altogether and
 may fix the value for dividend or distribution of such specific assets or any part thereof
 and may determine that cash payments shall be made to any Members upon the basis of the value
 so fixed in order to secure equality of distribution, and may vest any such specific assets
 in trustees as may seem expedient to the Directors.

36.8 No
 dividend or other distribution or other monies payable by the Company on or in respect of
 any Share shall bear interest against the Company.

36.9 All
 unclaimed dividends or distributions may be invested or otherwise made use of by the Directors
 for the benefit of the Company until claimed. Any dividend or distribution unclaimed by a
 Member six years after the dividend or distribution payment date shall be forfeited and revert
 to the Company.

37. **Reserves** 

37.1 The
 Directors may, before declaring any dividend or distribution, set aside such sums as they
 think proper as a reserve or reserves which shall, at the discretion of the Directors, be
 applicable for meeting contingencies, or for equalising dividends, or for any other purpose
 of the Company, and pending such application may, in their discretion, be employed in the
 business of the Company or be invested in such manner as the Directors may from time to time
 think fit. The Directors may also without placing the same to reserve carry forward any sums
 which they think it prudent not to distribute.

38. **Capitalisation of Profits** 

38.1 The
 Directors may capitalise any sum standing to the credit of any of the Company's reserve
 accounts which are available for distribution (including its Share Premium Account and capital
 redemption reserve fund, subject to the Act) for any class or any sum standing to the credit
 of the profit and loss account for any class or otherwise available for distribution for
 any class and to appropriate such sums to Members of the relevant class in the proportions
 in which such sum would have been divisible amongst them had the same been a distribution
 of profits by way of dividend and to apply such sum on their behalf in paying up in full
 unissued Shares of the relevant class for allotment and distribution credited as fully paid-up
 to and amongst them in the proportion aforesaid.

38.2 Where
 any difficulty arises in regard to any distribution under the last preceding Article, the
 Directors may settle the same as they think expedient and, in particular, may authorise any
 person to sell and transfer any fractions or may resolve that the distribution should be
 as nearly as may be practicable in the correct proportion but not exactly so or may ignore
 fractions altogether, and may determine that cash payments should be made to any Members
 in order to adjust the rights of all parties, as may seem expedient to the Directors. The
 Directors may appoint any person to sign on behalf of the persons entitled to participate
 in the distribution any contract necessary or desirable for giving effect thereto and such
 appointment shall be effective and binding upon the Members.

39. **Share Premium Account** 

39.1 The
 Directors shall in accordance with the Act establish a Share Premium Account and shall carry
 to the credit of such account from time to time a sum equal to the amount or value of the
 premium paid on the issue of any Share.

39.2 There
 shall be debited to any Share Premium Account on the redemption or purchase of a Share the
 difference between the nominal value of such Share and the redemption or purchase price provided
 always that at the discretion of the Directors such sum may be paid out of the profits of
 the Company or, if permitted by the Act, out of capital.

40. **Financial Year End** 

The financial year end of the Company shall be 31 December in each calendar year or as otherwise determined by the Board of Directors.

41. **Accounting Records** 

41.1 The
 Directors shall cause to be kept accounting records sufficient to give a true and fair view
 of the state of the Company's affairs and to show and explain its transactions and
 otherwise in accordance with the Act.

41.2 The
 accounting records shall be kept at the Registered Office or at such other place or places
 as the Directors think fit, and shall at all times be open to inspection by the Directors.
 No Member (who is not also a Director) shall have any right to inspect any accounting record
 or book or document of the Company except as conferred by law or authorised by the Directors
 or by the Members by Ordinary Resolution.

41.3 From
 time to time the Company in general meeting may determine (or revoke, alter or amend any
 such determination) or, failing such determination, the Directors may determine (or revoke,
 alter or amend any such determination):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.3.1 that
 the accounts of the Company be audited and the appointment of the Auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.3.2 that
 there be prepared and sent to each Member and other person entitled thereto a profit and
 loss account, a balance sheet, group accounts and/or reports for such period and on such
 terms as they may determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.3.3 that
 there be laid before the Company in general meeting a copy of every balance sheet together
 with a copy of the Auditor's report.

42. **Service of Notices and Documents** 

42.1 Notices
 or other documents or communications may be given to any Member by the Company either personally
 or by sending it by courier, post, fax or email to him to his registered address, or (if
 he has no registered address) to the address, if any, supplied by him to the Company for
 the giving of notices to him. Any notice shall be deemed to be effected:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.1.1 if
 delivered personally or sent by courier, by properly addressing and prepaying a letter containing
 the notice; and to have been effected, in the case of a notice of a meeting, when delivered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.1.2 if
 sent by post, by properly addressing, prepaying, and posting a letter containing the notice
 (by airmail if available) and to have been effected, in the case of a notice of a meeting,
 at the expiration of three days after it was posted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.1.3 if
 sent by fax or email by properly addressing and sending such notice through the appropriate
 transmitting medium and to have been effected on the day the same is sent.

42.2 A
 notice may be given by the Company to the joint holders of a Share by giving the notice to
 the joint holder named first in the Register of Members in respect of the Share.

42.3 A
 notice may be given by the Company to the person entitled to a Share in consequence of the
 death or bankruptcy of a Member by sending it through the post in a prepaid letter addressed
 to them by name, or by the title of representatives of the deceased, or trustee of the bankrupt,
 or by any like description, at the address, if any, supplied for the purpose by the persons
 claiming to be so entitled, or (until such an address has been so supplied) by giving the
 notice in any manner in which the same might have been given if the death or bankruptcy had
 not occurred.

42.4 Notice
 of every general meeting shall be given in any manner hereinbefore authorised to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.4.1 every
 Member entitled to vote except those Members entitled to vote who (having no registered address)
 have not supplied to the Company an address for the giving of notices to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42.4.2 every
 person entitled to a Share in consequence of the death or bankruptcy of a Member, who, but
 for his death or bankruptcy would be entitled to receive notice of the meeting.

42.5 No
 other persons shall be entitled to receive notices of general meeting.

43. **Winding Up** 

43.1 Subject
 to the rights attaching to any Shares, if the Company shall be wound up, the liquidator may,
 with the sanction of a Special Resolution and any other sanction required by the Act or these
 Articles, divide amongst the Members in kind the whole or any part of the relevant Segregated
 Portfolio Assets (whether they shall consist of property of the same kind or not) and may
 for such purpose set such value as he deems fair upon any property to be divided as aforesaid
 and may determine how such division shall be carried out as between the Members or different
 classes of Members. The liquidator may, with the like sanction, vest the whole or any part
 of such Segregated Portfolio Assets in trustees upon such trusts for the benefit of the contributories
 as the liquidator, with the like sanction, shall think fit, but so that no Member shall be
 compelled to accept any asset upon which there is any liability.

43.2 If
 the Company shall be wound up, the liquidator shall apply the Segregated Portfolio Assets
 and the General Assets in accordance with the Act in satisfaction of the claims of the Segregated
 Portfolio Creditors and the General Creditors.

43.3 If
 the Company shall be wound up, the liquidator shall apply the Segregated Portfolio Assets
 of each Segregated Portfolio and the General Assets as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.3.1 first,
 the Segregated Portfolio Assets attributable to any Segregated Portfolio shall be applied
 in accordance with the Act in satisfaction of the claims of Segregated Portfolio Creditors
 of the relevant Segregated Portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.3.2 second,
 the General Assets shall be applied in accordance with these Articles and the Act to satisfy
 the claims of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first,
 General Creditors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second,
 in payment of any outstanding fees due to any service providers to the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.3.3 the
 balance of the General Assets, if any, shall be transferred to the Segregated Portfolios
 in proportion to the Net Asset Value of each Segregated Portfolio; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43.3.4 the
 Segregated Portfolio Assets of each Segregated Portfolio shall then be paid to the holders
 of Shares first in an amount equal to the nominal amount of the relevant Shares and the balance
 shall be paid according to the relative Net Asset Values (as determined by the liquidator)
 of the Shares held.

43.4 The
 winding up and dissolution of any Segregated Portfolio or the Company shall be dealt with
 in accordance with the Act and the laws of the Cayman Islands applicable to Segregated Portfolio
 companies.

43.5 In
 no event shall the assets of one Segregated Portfolio be paid or distributed to any person
 who is not a creditor of such Segregated Portfolio or a holder of Shares of the class corresponding
 to such Segregated Portfolio.

44. **Indemnity** 

44.1 Every
 Indemnified Person shall, in the absence of his own dishonesty, wilful default or fraud,
 be indemnified and held harmless out of the Segregated Portfolio Assets of the relevant Segregated
 Portfolio against all liabilities, loss, damage, cost or expense (including but not limited
 to liabilities under contract, tort and statute or any applicable foreign law or regulation
 and all reasonable legal and other costs and expenses on a full indemnity basis properly
 payable) incurred or suffered by him by or by reason of any act done, conceived in or omitted
 in the conduct of the Company's business on behalf of the relevant Segregated Portfolio
 or in the discharge of his duties and the indemnity contained in this Article shall extend
 to any Indemnified Person acting in any office or trust in the reasonable belief that he
 has been appointed or elected to such office or trust notwithstanding any defect in such
 appointment or election.

44.2 No
 Indemnified Person shall be liable to the Company on behalf of the relevant Segregated Portfolio
 for acts, defaults or omissions of any other Indemnified Person.

44.3 Every
 Indemnified Person shall be indemnified out of the Segregated Portfolio Assets of the relevant
 Segregated Portfolio against all liabilities incurred by him by or by reason of any act done,
 conceived in or omitted in the conduct of the Company's business on behalf of the relevant
 Segregated Portfolio or in the discharge of his duties in defending any proceedings, whether
 civil or criminal, in which judgment is given in his favour, or in which he is acquitted,
 or in connection with any application in which relief from liability is granted to him by
 the court.

44.4 To
 the extent that any Indemnified Person is entitled to claim an indemnity pursuant to these
 Articles in respect of amounts paid or discharged by him, the relative indemnity shall take
 effect as an obligation of the Company on behalf of the relevant Segregated Portfolio to
 reimburse the person making such payment or effecting such discharge.

44.5 Each
 Member and the Company on behalf of the relevant Segregated Portfolio agree to waive any
 claim or right of action he or it may at any time have, whether individually or by or in
 the right of the Company on behalf of the relevant Segregated Portfolio, against any Indemnified
 Person on account of any act or omission of such Indemnified Person in the performance of
 his duties for the Company on behalf of the relevant Segregated Portfolio; provided however,
 that such waiver shall not apply to any claims or rights of action arising out of the dishonesty,
 wilful default or fraud of such Indemnified Person or to recover any gain, personal profit
 or advantage to which such Indemnified Person is not legally entitled.

44.6 Expenses
 incurred in defending any civil or criminal action or proceeding for which indemnification
 is required pursuant to these Articles shall be paid from the Segregated Portfolio Assets
 in the relevant Segregated Portfolio in advance of the final disposition of such action or
 proceeding upon receipt of an undertaking by or on behalf of the Indemnified Person to repay
 such amount if it shall ultimately be determined that the Indemnified Person is not entitled
 to be indemnified pursuant to these Articles. Each Member of the Company shall be deemed
 to have acknowledged and agreed that the advances of funds may be made by the Company on
 behalf of the relevant Segregated Portfolio as aforesaid, and when made by the Company on
 behalf of the relevant Segregated Portfolio under this Article are made to meet expenditures
 incurred for the purpose of enabling such Indemnified Person to properly perform his or her
 duties to the Company on behalf of the relevant Segregated Portfolio.

45. **Continuation** 

45.1 The
 Company shall have the power, subject to the provisions of the Act and with the approval
 of a Special Resolution, to continue as a body incorporated under the laws of any jurisdiction
 outside of the Cayman Islands and to be de-registered in the Cayman Islands.

46. **Amendment of Memorandum and Articles** 

46.1 Subject
 to the provisions of the Act, the Company may from time to time by Special Resolution alter
 or amend the Memorandum or these Articles in whole or in part provided that no such amendment
 shall affect the special rights attaching to any class of Shares without the consent or sanction
 provided for in these Articles.

## Add

**Exhibit 6.2**

**<u>Exhibit A to Board Resolutions of Masterworks Cayman, SPC</u>**

FORM OF DESIGNATION OF [ENTITY NUMBER] CLASS S SP ORDINARY SHARES

Masterworks Cayman, SPC (the "**Company**") shall issue [No. of Shares] ordinary shares of [Entity Number] Segregated Portfolio ("**Class S Ordinary Shares**") to Series [Entity Number] of Masterworks [Vault Number], LLC ("**Masterworks [Entity Number]**") at a purchase price of $[ ] per share or an aggregate subscription price of [**Aggregate Subscription Price**]. The aggregate subscription price will be credited to [Entity Number] Segregated Portfolio and the Class S Ordinary Shares will be issued in a single class to be called "**[Entity Number] Class S SP Ordinary Shares**". [Entity Number] Class S SP Ordinary Shares shall be entitled to receive 100% of any amounts determined by the Board of Directors to be distributed to shareholders of [Entity Number] Segregated Portfolio, after payment of any obligations to creditors and or any distributions payable to holders of any outstanding [SP Preferred Shares / Class M SP Ordinary Shares] of [Entity Number] Segregated Portfolio outstanding, if any, at the time such distribution is paid. [Entity Number] Class S SP Ordinary Shares shall have one vote per Ordinary Share on all matters submitted for a vote or consent to shareholders of [Entity Number] Segregated Portfolio[, and in the aggregate shall represent 100% of the shareholder voting rights in [Entity Number] Segregated Portfolio, except for any voting rights afforded to the holders of SP Preferred Shares by operation of law]. In the event that any Class A shares of Masterworks [Entity Number] are issued upon conversion of Class B shares of Masterworks [Entity Number] and or the exchange of [Entity Number] [SP Preferred Shares / Class M SP Ordinary Shares], the Company shall issue additional [Entity Number] Class S SP Ordinary Shares to Masterworks [Entity Number] as a pro rata distribution such that at all relevant times the number of outstanding [Entity Number] Class S SP Ordinary Shares held by Masterworks [Entity Number] shall equal the number of outstanding Class A shares for Masterworks [Entity Number].

Except as provided herein, the terms of the [Entity Number] Class S SP Ordinary Shares are governed by the Memorandum and Articles of Association of the Company.

**<u>Exhibit B to Board Resolutions of Masterworks Cayman SPC</u>**

FORM OF DESIGNATION OF [ENTITY NUMBER] [SP PREFERRED SHARES] [CLASS M SP ORDINARY SHARES]

**1. <u>Designation, Amount</u>.** The Company shall issue non-participating [preferred / ordinary] shares of [Entity Number] Segregated Portfolio (["**SP Preferred Shares**" or "**Class M SP Ordinary Shares**"]) to Masterworks Administrative Services, LLC or its successor ("**MAS**"), in consideration for management and administration services rendered to Masterworks [Entity Number] pursuant to a management services agreement by and among the Company on behalf of [Entity Number] Segregated Portfolio, MAS, and the other parties thereto, dated [ ](as amended, the "**Management Services Agreement**"), at a rate of 1.5% of the total Shares (i.e. Class S SP Ordinary Shares plus [SP Preferred Shares / Class M Ordinary Shares]) of [Entity Number] Segregated Portfolio outstanding, after giving effect to such issuance, per annum, commencing on January 1, 2024 and ending on the date the artwork owned by Masterworks [Entity Number] is sold. The [SP Preferred Shares/ Class M SP Ordinary Shares] will be issued in a single class to be called ["**[Entity Number] SP Preferred Shares**" / "**[Entity Number] Class M SP Ordinary Shares**"].

**2. <u>Distribution Rights</u>**. [The [Entity Number] SP Preferred Shares have a distribution preference of US$20.00 per share over [Entity Number] Class S SP Ordinary Shares. The holder of [Entity Number] SP Preferred Shares is entitled to receive cash upon any distribution by [Entity Number] Segregated Portfolio to holders of share capital in an amount up to US$20 per [Entity Number] SP Preferred Share before any payment is made in respect of the Class S SP Ordinary Shares. SP Preferred Shares shall be non-participating shares and shall have no economic rights with respect to [Entity Number] Segregated Portfolio other than the US$20 per SP Preferred Share distribution preference set forth above.] OR [Except as noted herein, the [Entity Number] Class M SP Ordinary Shares have the same distribution rights as the [Entity Number] Class S SP Ordinary Shares.]

The holder of [SP Preferred Shares / Class M SP Ordinary Shares] shall have the right to forfeit all or any portion of such shares at any time prior to receipt of a liquidating distribution with respect to such shares. Upon any such forfeiture, such shares shall be disposed of and shall no longer constitute outstanding share capital of the Company.

**3. <u>Issuance</u>**. The [Entity Number] [SP Preferred Shares / Class M SP Ordinary Shares] shall be subject to the compensation and expense provisions set forth in the Management Services Agreement.

**4. <u>Voting Rights</u>**. [Except as may be required by applicable law, the holder of [Entity Number] SP Preferred Shares shall have no voting rights.] OR [[Entity Number] Class M SP Ordinary Shares shall have one vote per Ordinary Share on all matters submitted for a vote or consent to shareholders of [Entity Number] Segregated Portfolio, provided that any such shares held by Masterworks shall have no voting rights].

**5. <u>Exchange</u>**. The [Entity Number] [SP Preferred Shares / Class M SP Ordinary Shares]] shall have no exchange or conversion rights, except as provided herein:

(a) *Voluntary*. [Entity Number] [SP Preferred Shares / Class M SP Ordinary Shares] may be exchanged at any time, in whole or in part, for Class A shares of Masterworks [Entity Number] at an exchange rate of 1 to 1 in accordance with Masterworks Vault [Vault Number]'s Amended & Restated Operating Agreement dated as of [ ] (as amended, the "**A&R Operating Agreement**").

(b) *Automatic*. [If the sale of the artwork held by [Entity Number] Segregated Portfolio were to result in a distribution to the holders of Class A shares of equal to or greater than $20.00 per share, 100% of the [Entity Number] SP Preferred Shares will automatically be exchanged for Class A shares of Masterworks [Entity Number] at an exchange rate of 1 to 1 in accordance with the A&R Operating Agreement prior to any distribution of funds to Class A shareholders of Masterworks [Entity Number] and no distributions shall be made in respect of the SP Preferred Shares so exchanged.] OR [If there is a sale of the artwork held by [Entity Number] Segregated Portfolio, 100% of the [Entity Number] Class M SP Ordinary Shares will automatically be exchanged for Class A shares of Masterworks [Entity Number] at an exchange rate of 1 to 1 in accordance with the A&R Operating Agreement prior to any distribution of funds to Class A shareholders of Masterworks [Entity Number] and no distributions shall be made in respect of the Class M SP Ordinary Shares so exchanged.]

(c) Upon any exchange pursuant to clause (a) or (b) above, the [SP Preferred Shares/ Class M SP Ordinary Shares] so exchanged, shall be immediately disposed of and shall no longer constitute outstanding share capital of the Company.

**6. <u>Miscellaneous</u>**.

(a) The [Entity Number] [SP Preferred Shares / Class M SP Ordinary Shares] shall be perpetual unless exchanged in accordance herewith.

## Add

**Exhibit 6.3**

**FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT**

This ASSIGNMENT AND ASSUMPTION AGREEMENT is entered into as of [ ], 2026 (this "<u>Agreement</u>") by and between Masterworks [ ], LLC, a Texas limited liability company ("<u>Assignor</u>"), and Series [ ], a Texas protected series ("<u>Assignee</u>").

WHEREAS, Assignee is an affiliate of Assignor; and

WHEREAS, Assignor desires to assign all of its rights, interests and obligations under certain agreements to which it is a party or to which Masterworks Administrative Services, LLC (the "<u>Administrator</u>") is a party acting on Assignor's behalf to Assignee as set forth herein, and Assignee wishes to assume such rights, interests and obligations.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual agreements and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Assignment</u>. Assignor hereby assigns and conveys to Assignee for the benefit of Assignee, its successors and assigns, all of Assignor's right, title and interest in, to and under the agreements set forth on <u>Annex A</u> attached hereto (as amended, the "<u>Assumed Agreements</u>"), together with all rights, privileges and benefits appertaining thereto and all of the rights, privileges and benefits of any agreements to which the Administrator is a party acting on Assignor's behalf set forth on <u>Annex B</u> (collectively with the Assumed Agreements, the "<u>Assigned Rights</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Assumption</u>. Assignee hereby accepts the assignment and conveyance of the Assigned Rights by Assignor pursuant to Paragraph 1 above and does hereby assume, and undertake and agree to hereafter pay, perform and discharge in accordance with their terms any and all of the liabilities, obligations and commitments of Assignor relating to the Assigned Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Benefit of the Agreement</u>. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, shall confer on any person or entity 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, including any third party beneficiary rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Headings</u>. The headings used in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Governing Law</u>. This Agreement shall be governed by and interpreted and construed in accordance with the substantive laws of the State of Texas without regard to applicable choice of law provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which taken together shall constitute one and the same agreement, it being understood that all of the parties hereto need not sign the same counterpart. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or electronic mail shall be as effective as delivery of a manually executed counterpart of this Agreement.

*[Signature Page Follows]*

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Assignment and Assumption Agreement as of the date first above written.

---

| |
|:---|
| **ASSIGNOR:** |
| MASTERWORKS [ ], LLC |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| **ASSIGNEE:** |
| Series [ ] |
| By: |
| Name: |
| Title: |

---

[Signature Page to Assignment and Assumption Agreement]

**<u>Annex A</u>**

**Assumed Agreements**

**<u>Annex B</u>**

**Assigned Rights**

## Add

**Exhibit 6.4**

**FORM OF AGREEMENT AND PLAN OF MERGER**

This AGREEMENT AND PLAN OF MERGER (this "**Agreement**") is made and entered into as of ______________, 2026 by and among the protected series of Masterworks Vault [ ], LLC listed on <u>Schedule A</u> hereto (each, a "**Merger Series**") and the protected series of Masterworks Vault [ ], LLC listed on <u>Schedule A</u> hereto (each, a "**Surviving Series**" and, together with the Merger Series, the "**Parties**").

RECITALS

WHEREAS, immediately prior to the Effective Time (as defined below), all of the assets of each Delaware limited liability company listed on <u>Schedule A</u> hereto (each, a "**Target Issuer**") will be transferred to the applicable Merger Series in exchange for 100% of the shares of such Merger Series and following such transaction each Target Issuer will distribute one share of such Merger Series to each shareholder of the Target Issuer for each share of the same class of Target Issuer they hold (the "**Asset Transfer and Distribution**");

WHEREAS, each Merger Series has not conducted any other operating activities prior to the date hereof and has no material assets or liabilities and shall not conduct any activities prior to the consummation of the transactions contemplated hereby other than the Asset Transfer and Distribution;

WHEREAS, the Parties intend to effect a merger (the "**Merger**") of each Merger Series with and into each applicable Surviving Series in accordance with this Agreement and the Texas Business Organizations Code (the "**TBOC**"and together with federal securities laws, "**Applicable Law**"), with each Surviving Series to be a surviving entity of the Merger;

WHEREAS, pursuant to the Merger, each outstanding share of each Merger Series (the "**Merger Series Interests**") shall be converted into the the merger consideration as follows: (i) each outstanding Class A share of Merger Series shall be converted into one Class A share of Surviving Series, (ii) each outstanding Class B share of Merger Series shall be converted into one Class B share of Surviving Series, (iii) each outstanding Class C share of Merger Series (if any) shall be converted into one Class C share of Surviving Series and (iv) each Class A Preferred share of Merger Series (if any) shall be converted into one Class A Preferred share of Surviving Series (collectively, the "**Merger Consideration**"), upon the terms and subject to the conditions set forth herein; and

WHEREAS, each of the Parties has approved the transactions contemplated hereby, including the Merger, in accordance with the applicable provisions of Applicable Law, and upon the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration, and intending to be legally bound hereby, the Parties agree as follows:

1. <u>The Merger</u>.

At the Effective Time (as defined below) of the Merger, and subject to and upon the terms and conditions of this Agreement, and in accordance with Section 101.633 of the TBOC, each Merger Series shall be merged with and into each applicable Surviving Series, and the separate existence of each Merger Series shall thereupon cease. Each Surviving Series shall be a surviving series of the Company after the Merger and shall continue in existence as a series of a Texas series limited liability company under the TBOC.

2. <u>Closing; Effective Time</u>.

The closing of the transactions contemplated by this Agreement (the "**Closing**") will take place at the offices of the Company located at 1 World Trade Center, 57th Floor, New York, NY 10007 at ___ p.m. (Eastern Standard Time) on a day agreed upon by the Parties (to the extent legally permitted) provided that the conditions set forth herein have been satisfied or waived (the "**Closing Date**"). The Parties hereto shall cause the Merger to be consummated by filing a properly executed certificate of merger satisfying the requirements of Applicable Law (the "**Certificate of Merger**") with the Secretary of State of the State of Texas, and the Parties shall take such other and further action as may be required by Applicable Law to make the Merger effective. The Merger shall become effective at the time when the Certificate of Merger have been duly filed with the Secretary of State of the State of Texas or such later date and time as is agreed upon by the Parties and set forth in the Certificate of Merger in accordance with Applicable Law (the "**Effective Time**").

3. <u>Effect of the Merger</u>.

At and after the Effective Time, the effects of the Merger shall be as provided in this Agreement, and in accordance with Applicable Law. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all property, rights, privileges, immunities, powers, franchises, licenses and authority of each Surviving Series and Merger Series shall vest in the the applicable Surviving Series, and all liabilities of each Merger Series shall become liabilities of the applicable Surviving Series.

4. <u>Limited Liability Company Agreement; Managers and Officers of the Surviving Company</u>.

At the Effective Time, there shall be no change to the limited liability company agreement of the Company (including, as applicable, to the Surviving Series), the registered agent of the Company and no change to the managers and officers of the Company.

5. <u>Conversion and Exchange of Securities in the Merger; Merger Consideration</u>.

Subject to the terms and conditions of this Agreement, by virtue of the Merger and without the need for any further action on the part of any of the Parties, all of the Merger Series Interests issued and outstanding immediately prior to the Effective Time shall be converted into the Merger Consideration.

6. <u>Conditions to the Merger</u>.

The respective obligations of each party to effect the Merger and the other transactions contemplated herein shall be subject to the satisfaction at or prior to the Closing of the following conditions, any or all of which may be waived by the parties hereto, in whole or in part, to the extent permitted by Applicable Law:

(a) <u>No Order</u>. No order, injunction, judgment or decree issued by any court of competent jurisdiction or other governmental entity preventing the consummation of the transactions contemplated by this Agreement shall be in effect. No law shall have been enacted, entered, promulgated or enforced by any court or governmental entity that prohibits or makes illegal the consummation of transactions contemplated by this Agreement.

(b) <u>Other Government Approval</u>. Approval of other governmental entities required to effect the transactions contemplated by this Agreement shall have been received by the Parties.

(c) <u>No Indebtedness</u>. As of and immediately prior to the Effective Time, no Merger Series shall have no indebtedness or obligations of any kind whatsoever, other than obligations pursuant to this Agreement.

7. <u>Termination</u>. This Agreement may be terminated and the Merger abandoned at any time prior to the Closing Date by mutual written agreement of the Parties.

8. <u>Entire Agreement; Amendments and Waivers</u>.

This Agreement and the documents and instruments and other agreements among the Parties referenced herein constitute the entire agreement among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof. This Agreement may be amended, supplemented or modified, and any of the terms, covenants, representations, warranties or conditions may be waived, only by a written instrument executed by the Parties. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not the same or similar), and no such waiver shall constitute a continuing waiver unless otherwise expressly provided.

9. <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the Laws of the State of Texas applicable to agreements made and to be performed entirely within such State, without regard to the conflict of laws principles of such State.

10. <u>Counterparts; Electronic Signatures</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile, scanned pages or electronic signature shall be effective as delivery of a manually executed counterpart to this Agreement.

IN WITNESS WHEREOF, each of the parties to this Agreement has executed and delivered this Agreement, or caused this Agreement to be executed and delivered by its duly authorized representative, as of the date first written above.

---

| |
|:---|
| Masterwork Vault [ ], LLC, on behalf of the Merger Series and Surviving Series listed on <u>Schedule A</u> hereto |
| By: |
| Name: |
| Title: |

---

**Schedule A** 

---

| | | |
|:---|:---|:---|
| **Target Issuer** | **Merger Series** | **Surviving Series** |

---

## Add

**E** **XHIBIT 12.1**

April 23, 2026

Masterworks Vault 16, LLC

1 World Trade Center, 57th Floor,

New York, New York 10007

Re: Masterworks Vault 16, LLC Offering Statement on Form 1-A

Ladies and Gentlemen:

I have acted as counsel to Masterworks Vault 16, LLC, a Texas series limited liability company (the "**Company**") in connection with the preparation and filing with the Securities and Exchange Commission of an offering statement on Form 1-A (the "**Offering Statement**") under Regulation A of the Securities Act of 1933, as amended. The Offering Statement includes offerings of various series of membership interests (each a "**Series**"), a series designation (each, a "**Series Designation**" and, collectively, the "**Series Designations**") for each of which will be in the form filed with the Offering Statement and attached to the Amended and Restated Limited Liability Company Agreement of the Company (as amended, the "**Company Operating Agreement**"), prior to the issuance thereof.

The Offering Statement relates, among other things, to the proposed issuance and sale by the Company (the "**Offering**") of the membership interests of a Series in the form of Class A ordinary shares, as designated on Schedule A to this opinion letter (the "Shares"), as further described in the Offering Statement, in connection with the consummation of the Restructuring Transactions (as defined in the Offering Statement).

This opinion letter is being delivered in accordance with the requirements of Item 17(12) of Form 1-A under the Securities Act of 1933, as amended.

In connection with rendering this opinion, I have examined the originals, or certified, conformed or reproduction copies, of all such records, agreements, instruments and documents as I have deemed relevant or necessary as the basis for the opinion hereinafter expressed. In all such examinations, I have assumed the genuineness of all signatures on original or certified copies and the conformity to original or certified copies of all copies submitted to me as conformed or reproduction copies.

I have reviewed: (a) the certificates of formation of the Company; (b) the certificate of conversion of the Company from a Delaware series limited liability company to a Texas series limited liability company; (c) the form of certificate of conversion of the Company from a Texas series limited liability company to a Delaware series limited liability company; (d) the amended and restated operating agreement of the Company; (e) the form of series designation; (f) the form of second amended and restated operating agreement; (g) the offering circular; (h) resolutions of the Board of Managers of the Company and (i) such other corporate documents, records, papers and certificates as I have deemed necessary for the purposes of the opinions expressed herein.

Based upon and subject to the foregoing and to the other qualifications and limitations set forth herein, I am of the opinion that (i) the Shares, when issued and delivered in the manner and/or the terms described in the Offering Statement as filed (after it is declared qualified), will be validly issued, fully paid and non-assessable under applicable laws of the State of Texas, and (ii) following and subject to the completion of the Restructuring Transactions (including the Company converting back to a Delaware series limited liability company as described in the Offering Statement) as filed (after it is declared qualified), the Shares will be validly issued, fully paid and non-assessable under applicable laws of the State of Delaware.

I express no opinion with regard to the applicability or effect of the law of any jurisdiction other than, as in effect on the date of this letter, (a) the internal laws of the State of Texas and the State of Delaware and (b) the federal laws of the United States. I express no opinion as to laws of any other jurisdiction. I assume no obligation to revise or supplement this opinion should the laws be changed after the effective date of the Offering Statement by legislative action, judicial decision or otherwise.

I hereby consent to the filing of this opinion as an exhibit to the Offering Statement and to the reference to my name under the caption "Legal Matters" in the Offering Statement. In giving this consent, I do not hereby admit that I am in the category of persons whose consent is required under Section 7 of the Act.

Sincerely yours,

---

| | |
|:---|:---|
| */s/ Joshua B. Goldstein* | */s/ Joshua B. Goldstein* |
| Name: | Joshua B. Goldstein |
| Title: | General Counsel |

---

<u>SCHEDULE A</u>

<u>Series of Masterworks Vault 16, LLC</u>

---

| | | |
|:---|:---|:---|
| Series | Price per Class A Share | Maximum Class A Shares |
| Series 114 | 20.74 | 180400 |
| Series 116 | 14.90 | 292750 |
| Series 117 | 16.35 | 521700 |
| Series 118 | 12.14 | 86050 |
| Series 120 | 9.89 | 43100 |
| Series 121 | 13.98 | 388500 |
| Series 122 | 15.04 | 596650 |
| Series 123 | 16.05 | 88800 |
| Series 125 | 16.64 | 170650 |
| Series 127 | 19.21 | 123200 |
| Series 128 | 16.12 | 194250 |
| Series 129 | 22.84 | 116550 |
| Series 130 | 16.19 | 249750 |
| Series 131 | 14.24 | 133250 |
| Series 132 | 16.91 | 35000 |
| Series 133 | 17.89 | 100550 |
| Series 134 | 16.34 | 87250 |
| Series 135 | 13.09 | 57950 |
| Series 137 | 17.09 | 194250 |
| Series 138 | 20.33 | 139400 |
| Series 139 | 16.02 | 100750 |
| Series 140 | 17.16 | 158200 |
| Series 141 | 18.17 | 32650 |
| Series 143 | 19.24 | 88800 |
| Series 148 | 20.12 | 47200 |

---

### 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:** Masterworks Vault 16, LLC

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2024

**CIK:** 0002046162

**I.R.S. Employer Identification Number:** 33-2067884

**Primary Standard Industrial Classification Code:** 7380

**Total number of full-time employees:** 0

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 1 WORLD TRADE CENTER, 57TH FLOOR, NEW YORK, NY 10007

**Company Phone:** 203-518-5172

**Person to contact:** JOSH GOLDSTEIN

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount   |
|:---|:---|
| Cash and Cash Equivalents                | $2500.00 |
| Investment Securities                    | $0.00    |
| Accounts and Notes Receivable            | $0.00    |
| Property, Plant and Equipment (PP&E)     | $0.00    |
| Total Assets                             | $2500.00 |
| Accounts Payable and Accrued Liabilities | $0.00    |
| Long-Term Debt                           | $0.00    |
| Total Liabilities                        | $0.00    |
| Total Stockholders' Equity               | $2500.00 |
| Total Liabilities and Equity             | $2500.00 |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount   |
|:---|:---|
| Total Revenues                            | $0.00    |
| Costs and Expenses Applicable to Revenues | $0.00    |
| Depreciation and Amortization             | $0.00    |
| Net Income                                | $0.00    |
| Earnings Per Share - Basic                | 0.00     |
| Earnings Per Share - Diluted              | 0.00     |

**Auditor Information**

| Metric          | Amount   |
|:---|:---|
| Name of Auditor | N/A      |

### Outstanding Securities

| Class                       |   Outstanding |     CUSIP | Publicly Traded   |
|:---|---:|---:|:---|
| Series Membership Interests |       4252600 | 000000000 | NONE              |
| Series Membership Interests |             0 | 000000000 | NONE              |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** Yes

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** No

**Was there any solicitation of interest?** Yes

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 4227600      |
| Number of securities outstanding                                | 0            |
| Price per security                                              | $16.36       |
| Issuer's aggregate offering price                               | $69183598.50 |
| Aggregate offering price of securities held by security holders | $0.00        |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $69183598.50 |

**Anticipated Fees**

| Service Provider   | Name   | Fees   |
|:---|:---|:---|
| Auditor            | N/A    | $0.00  |
| Legal              | N/A    | $0.00  |
| Promoters          | N/A    | $0.00  |

**Estimated Net Proceeds to the Issuer:** $0.00

### Item 5. Jurisdictions in Which Securities are to be Offered

- All States and Territories

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Masterworks Vault 16, LLC

**Title of Securities Issued:** Series Membership Interests

**Total Amount of Securities Issued:** 4252600

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** 100% of the membership interests in Masterworks Vault 16, LLC were issued to Masterworks Foundry, LLC in return for a capital contribution of $100 per series.

**Basis for aggregate consideration:** —

**Securities Act Exemption:** The foregoing issuances were pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions by an issuer not involving any public offering.