# EDGAR Filing Document

**Accession Number:** 0002072338
**File Stem:** 0001104659-25-111339
**Filing Date:** 2025-11
**Character Count:** 89156
**Document Hash:** af2fd285dc7785c4794ed9c0f30480a3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-111339.hdr.sgml**: 20251113

**ACCESSION NUMBER**: 0001104659-25-111339

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20251113

**DATE AS OF CHANGE**: 20251113

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GK Investment Holdings III LLC
- **CENTRAL INDEX KEY:** 0002072338
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 333781161
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-01009
- **FILM NUMBER:** 251478819

**BUSINESS ADDRESS:**
- **STREET 1:** 257 EAST MAIN STREET
- **STREET 2:** SUITE 200
- **CITY:** BARRINGTON
- **STATE:** IL
- **ZIP:** 60010
- **BUSINESS PHONE:** (847) 277-9930

**MAIL ADDRESS:**
- **STREET 1:** 257 EAST MAIN STREET
- **STREET 2:** SUITE 200
- **CITY:** BARRINGTON
- **STATE:** IL
- **ZIP:** 60010

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-SA**

**◻ SEMIANNUAL REPORT PURSUANT TO REGULATION A**

**or**

**⌧ SPECIAL FINANCIAL REPORT PURSUANT TO REGULATION A**

For the fiscal semiannual period ended: **<u>June 30, 2025</u>**

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| |
|:---|
| **GK Investment Holdings III LLC** |
| (Exact name of issuer as specified in its charter) |

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| | |
|:---|:---|
| **Delaware** | **33-3781161** |
| State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) |

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| |
|:---|
| **257 East Main Street, Suite 200**<br> **Barrington, Illinois 60010** |
| (Full mailing address of principal executive offices) |
| **(847) 277-9930** |
| (Issuer's telephone number, including area code) |

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**Item 1. Management's Discussion and Analysis of Financial Condition and Results of Operations**

***Forward Looking Statements***

This Semi-Annual Report on Form 1-SA of GK Investment Property Holdings III, LLC, a Delaware limited liability company, 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," "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, contain financial and operating projections or state other forward-looking information. Our ability to predict results or the actual effect of 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, our actual results and performance could differ materially from those set forth or anticipated in our forward-looking statements.

When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in this report. 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 report. The matters summarized below and elsewhere in this report could cause our actual results and performance to differ materially from those set forth or anticipated in forward-looking statements. Accordingly, we cannot guarantee future results or performance. Furthermore, except as required by law, we are under no duty to, and we do not intend to, update any of our forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise.

All figures provided herein are approximate.

***General***

GK Investment Property Holdings III, LLC is a Delaware limited liability company formed on March 5, 2025 in order to invest in, lend on and operate commercial rental properties, lease such properties to multiple tenants, and make such other real estate related investments as are consistent with its investment objectives and that GK Development, Inc. dba GK Real Estate (referred to herein as "GK Real Estate"), our manager, deems appropriate.

As of the date of this Semi-Annual Report, the company does not have any assets.

Our company is focused on investing in existing income producing commercial properties that will benefit from GK Real Estate's operating and leasing skills, including re-leasing, redeveloping, renovating, refinancing, repositioning, and selling. We may also invest in mortgages, mezzanine debt, or other types of real estate interests. GK Real Estate intends to actively participate in the management of our company's properties rather than hold them as passive investments; provided, that we may make debt investments in properties owned and controlled by other affiliates of GK Real Estate. The objective of this strategy is to maximize cash flow and property value at the time of final disposition. By doing this, GK Real Estate maximizes the potential of our company to pay its obligations under the Bonds as they become due. Holding periods for our company's investments will vary depending on several factors.

Our acquisition focus is concentrated on quality assets with performant tenants in markets with strong growth demographics. We specifically target retail locations in growth corridors with strong accessibility and visibility, high traffic counts, and proximity to residential growth. Though we will also consider tertiary commercial real estate uses like industrial, multi-family, retail, or self-storage as an ancillary investment strategy to synergize with our core retail strategy. We look for stable, well-maintained properties that have a diversified tenant mix. Our retail property focus has an emphasis on properties well positioned for the future, including junior box centers, power centers, and other retail shopping centers anchored by grocery stores and tenants resistant to e-commerce disruption as well as service providers with limited online counterparts.

GK Real Estate will generally purchase or lend on individual properties but may consider portfolio purchases and/or loans.

While the focus of the company is on income producing properties and not ground up development, at times our company may have opportunities to acquire or make debt investments in commercial real property which includes unimproved pad sites for future development and leasing opportunities. In such instances, our company may retain the unimproved pad sites for ground lease, build-to-suit and/or sale opportunities that would financially benefit the company.

**Management.** The sponsor of our company, GK Real Estate, is a Barrington, Illinois based real estate acquisition and development company specializing in the acquisition, management, and redevelopment of commercial rental properties. Its management provides years of experience successfully acquiring, redeveloping, and managing commercial rental properties. Mr. Garo Kholamian is the President and founder of GK Real Estate. Prior to GK Real Estate, Mr. Kholamian was Senior Vice President of Development for Homart Development Co., the real estate development arm of Sears Roebuck. In this position, he was instrumental in the development of shopping centers across the United States. See "***Directors and Executive Officers***" for more information on Mr. Kholamian and the seven other individuals responsible for the management of GK Real Estate.

Since 1995, GK Real Estate and its management team have had experience in successfully acquiring, redeveloping, and managing a diversified portfolio of office, retail, and multifamily real estate properties. GK Real Estate controls a portfolio of real estate assets currently valued at over $500 million which represents 5.4 million square feet of office, multifamily and commercial space throughout the U.S. We benefit from GK Real Estate's real estate operating and leasing skills, including releasing, redeveloping, renovating, refinancing, repositioning, and selling.

We do not have any employees. GK Real Estate's management team is comprised of operation managers who are responsible for the day-to-day operation of GK Real Estate and our company.

We filed an offering statement on Form 1-A (the "Offering Statement"), with the United States Securities and Exchange Commission (the "SEC"), June 12, 2025, which Offering Statement was qualified by the SEC on August 18, 2025.

On August 18, 2025, GK Investment Property Holdings III, LLC, commenced active operations. Pursuant to the Offering Statement, we are offering a maximum of $75,000,000 of the Company's 8% bonds (the "Bonds"). The purchase price per Bond is $1,000, with a minimum purchase amount of $5,000. As of the date of the filing of this Form 1-SA, the company has not sold any Bonds.

**Results of Operation**

Having not commenced active operations, we have not acquired any properties or other assets, our management is not aware of any material trends or uncertainties, favorable or unfavorable, other than national economic conditions affecting our targeted portfolio, the commercial rental real estate industry and real estate generally, which may be reasonably anticipated to have a material impact on the capital resources and the revenue or income to be derived from the operation of our assets.

 **Liquidity and Capital Resources**

We are offering and selling to the public in this offering up to $75,000,000 in the aggregate of the Bonds (the "Offering"). Our principal demands for cash will be for acquisition costs, including the purchase price of any properties, loans and securities we acquire, improvement costs, the payment of our operating and administrative expenses, and all continuing debt service obligations, including our obligations to service our Bonds ("Bond Service Obligations"). Generally, we will fund our acquisitions from the net proceeds of this offering. We intend to acquire our assets with cash and mortgage or other debt, but we also may acquire assets free and clear of permanent mortgage or other indebtedness by paying the entire purchase price for the asset in cash.

We expect to use debt financing as a source of capital. We have no limits on the amount of leverage we may employ; however, senior property debt is generally expected to be approximately 50-60% of the cost of our real property investments in the current lending environment, and up to an approximate maximum of 60-70%.

We anticipate that adequate cash will be generated from operations to fund our operating and administrative expenses, and all continuing debt service obligations, including the Bond Service Obligations. However, our ability to finance our operations is subject to some uncertainties. Our ability to generate working capital is dependent on our ability to attract and retain tenants and the economic and business environments of the various markets in which our properties are located. Our ability to sell our assets is partially dependent upon the state of real estate markets and the ability of purchasers to obtain financing at reasonable commercial rates. In general, we intend to pay debt service from cash flow from operations. Moreover, our manager may change this policy, in its sole discretion, at any time.

Potential future sources of capital include secured or unsecured financings from banks or other lenders, establishing additional lines of credit, proceeds from the sale of properties and undistributed cash flow. Note that, currently, we have not identified any source of financing, other than the proceeds of the Offering, and there is no assurance that such sources of financing will be available on favorable terms or at all.

**Trend Information**

See "Results of Operation" above.

**Item 2. Other Information**

None.

**Item 3. Financial Statements**

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GK Investment Holdings III, LLC

(a Delaware limited liability company)

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**Financial Report**

**For the Period from Inception (March 5, 2025) to June 30, 2025**

**GK Investment Holdings III, LLC**

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**Table of Contents**

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| | |
|:---|:---|
| [Consolidated Balance Sheets](#a_001) | [2](#a_001) |
| [Consolidated Statements of Operations](#a_002) | [3](#a_002) |
| [Consolidated Statements of Members' Equity](#a_003) | [4](#a_003) |
| [Consolidated Statements of Cash Flows](#a_004) | [5](#a_004) |
| [Notes to Financial Statements](#a_005) | [6-10](#a_005) |

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**GK Investment Holdings III, LLC**

Consolidated Balance Sheets

**June 30, 2025, and March 31, 2025**

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| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**June 30,**<br>**2025** |<br>**March 31,**<br>**2025** |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Rental properties | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | - | - |
|  | - | - |
| &nbsp;&nbsp;&nbsp;Cash |  |  |
| &nbsp;&nbsp;&nbsp;Restricted cash - funded reserves |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable - tenants |  |  |
| &nbsp;&nbsp;&nbsp;Other assets | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**-** | $**-** |
| **LIABILITIES AND MEMBER'S EQUITY** |  |  |
| **LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Notes payable - net | $- | $- |
| &nbsp;&nbsp;&nbsp;Bonds payable - net | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | - | - |
| **Member's Equity** |  |  |
| &nbsp;&nbsp;&nbsp;Member's Equity | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and member's equity** | $**-** | $**-** |

---

See notes to financial statements.

**GK Investment Holdings III, LLC**

Consolidated Statements of Operations

**For the period from Inception (March 5, 2025) to June 30, 2025, and**

**for the period from Inception (March 5, 2025) to March 31, 2025**

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| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**For the period**<br>**from Inception**<br>**(March 5, 2025)**<br>**through June 30,**<br>**2025** |<br>**For the period**<br>**from Inception**<br>**(March 5, 2025)**<br>**Ended March 31,**<br>**2025** |
| **Revenues** | $**-** | $**-** |
| **Operating Expenses** | **-** | **-** |
| **Consolidated Net Income** | $**-** | $**-** |

---

See notes to financial statements.

**GK Investment Holdings III, LLC**

Consolidated Statements of Members' Equity

**For the period from Inception (March 5, 2025) to June 30, 2025**

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| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **March 31,**<br>**2025** |
| **Balance - Beginning of Period** | $- | $- |
| Consolidated Net (Loss) Income | - | - |
| **Balance - End of Period** | $**-** | $**-** |

---

See notes to financial statements.

**GK Investment Holdings III, LLC**

Consolidated Statement of Cash Flows

**For the period from Inception (March 5, 2025) to June 30, 2025, and**

**for the period from Inception (March 5, 2025) to March 31, 2025**

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| | | |
|:---|:---|:---|
|  | **(Unaudited)**<br>**For the period**<br>**from Inception**<br>**(March 5, 2025)**<br>**through June 30,**<br>**2025** |<br>**For the period**<br>**from Inception**<br>**(March 5, 2025)**<br>**Ended March 31,**<br>**2025** |
| **Cash Flows from Operating Activities** | $**-** | $**-** |
| **Cash Flows from Operating Activities** | - | - |
| **Cash Flows from Investing Activities** | - | - |
| **Net Increase (Decrease) in Cash and restricted cash** |  |  |
| **Cash and restricted cash - Beginning of period** | - | - |
| **Cash and restricted cash - End of period** | $**-** | $**-** |

---

See notes to financial statements.

**GK Investment Holdings III, LLC**

Notes to Financial Statements

**For the Period from Inception (March 5, 2025) to June 30, 2025**

**Note 1 – Organization and Summary of Significant Accounting Policies for Future Operations**

The following items represent the Company's accounting policies and will be used once operations commence. There have been no operations to date.

**Description of Business** – GK Investment Holdings III, LLC, ("GKIH III" and/or the "Company"), was formed on March 5, 2025 with the intent to acquire and or loan on existing income producing commercial properties for the purpose of holding and operating such properties, and if the need arises, to redevelop the properties for an alternative use other than intended when originally acquired. However, GKIH III is permitted to transact in any lawful business in addition to that stated above. GKIH III anticipates funding acquisitions in part, by offering to investors the opportunity to purchase up to a maximum of $75,000,000 of bonds (the Bonds). The Bonds are unsecured indebtedness of GKIH III.

The Company is managed by GK Development, Inc. (the "Manager" and "Sponsor of the bonds"), an affiliate of the member of GKIH III. The Company has one class of units, Class A units, which are owed 100% by individuals related to the Manager. The members of the Company have limited liability. Pursuant to the terms of the Limited Liability Company Operating Agreement (the "Agreement"), the Company will exist in perpetuity unless terminated as defined in the Agreement.

As reflected in the accompanying financial statements, the Company held no assets during the period and has not issued any Bonds, and therefore, does not have any operating activities as of June 30, 2025.

**Allocation of Profits and Losses** - Profits or losses from operations of the Company are allocated to the members of GKIH III as set forth in the Agreement. Gains and losses from the sale, exchange, or other disposition of Company property will be allocated to the members of GKIH III in their ownership percentages.

**Basis of Accounting** - The Company maintains its accounting records and prepares its financial statements on an accrual basis, which is in accordance with accounting principles generally accepted in the United States of America ("GAAP").

**Classification of Assets and Liabilities** - The financial affairs of the Company generally do not involve a business cycle since the realization of assets, and the liquidation of liabilities are usually dependent on the Company's circumstances. Accordingly, the classification of current assets and current liabilities is not considered appropriate and has been omitted from the balance sheet.

**Estimates** - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

**Cash and Restricted Cash** - The Company will maintain cash and restricted cash balances in federally insured financial institutions that, from time to time, exceed the Federal Deposit Insurance Corporation limits of $250,000. The Company believes that they are not exposed to any significant credit risk on its cash and restricted cash.

Funded reserves are likely to consist of (a) funds required to be maintained under the terms of the various loan agreements, which reserves have been pledged as additional collateral for the loans requiring funds to be reserved; (b) bond service reserve to be maintained under the bond indenture agreement for a period of twelve months commencing from the first bond closing date, and (c) tenant improvement reserve.

**GK Investment Holdings III, LLC**

Notes to Financial Statements

**For the Period from Inception (March 5, 2025) to June 30, 2025**

**Note 1 – Organization and Summary of Significant Accounting Policies for Future Operations (Continued)**

**Rental Properties** - Acquisitions of rental properties are generally accounted for as acquisitions of a group of assets, with acquisition costs incurred including title, legal, accounting, brokerage commissions and other related costs, being capitalized as part of the cost of the assets acquired, instead of accounted for separately as expenses in the period they are incurred. Land, building, and other depreciable assets are recorded at cost unless obtained in a business combination. Depreciation is calculated using the straight- line method over the estimated useful lives of the assets.

The cost of major additions and betterments are capitalized and repairs and maintenance which do not improve or extend the life of the respective assets are charged to operations as incurred. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are reflected in operations for the period.

Upon the acquisition of rental properties, the purchase price is allocated to the acquired tangible assets (consisting of land, buildings, and improvements) and acquired intangible assets and liabilities (consisting of above-market and below-market leases, leasing commissions and acquired in-place leases). The amount allocated to tangible assets is determined using the income approach methodology of valuation, which amount is then allocated to land, buildings and improvements based on management's determination of the relative fair values of the assets, relying in part, upon independent third-party valuation reports. In determining the amount allocated to intangible assets and liabilities, factors are considered by management, which include an estimate of carrying costs during the expected lease-up periods and estimates of loss rental revenue during the expected lease-up periods based on current market demand. Management also estimates the costs to execute similar leases, including leasing commissions, tenant improvements, legal and other related costs. Transaction costs associated with asset acquisitions are capitalized and included in the purchase price. There were no asset acquisitions during the Period from inception (March 5, 2025) to June 30, 2025.

**Impairment of Assets** - The Company reviews the recoverability of long-lived assets including buildings, equipment, and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on the ability to recover the carrying value of the asset from the expected future pretax cash flow (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such assets, an impairment loss is recognized for the difference between the estimated fair value and the carrying value. The measurement of impairment requires management to make estimates of these cash flows related to long lived assets, as well as other fair value determinations. Since there are no long-lived assets recorded on the balance sheet at June 30, 2025, there is no impairment to be considered.

**Debt Issuance Costs**– Debt issuance costs represent fees and other third-party costs associated with obtaining financing for the rental properties. These costs are amortized on a straight-line basis, which approximates the effective interest method, over the term of the respective agreements. Debt issuance costs are presented on the balance sheet as a direct reduction from the carrying amount of the notes payable. Unamortized costs are expensed when the associated notes payable is refinanced or repaid before maturity. Amortization expense is included in interest expense on the accompanying statement of operations.

**GK Investment Holdings III, LLC**

Notes to Financial Statements

**For the Period from Inception (March 5, 2025) to June 30, 2025**

**Note 1 – Organization and Summary of Significant Accounting Policies for Future Operations (Continued)**

**Bond Issuance Costs and Bond Discounts** – Bond issuance costs represent underwriting compensation and offering costs and expenses associated with selling the bonds. Bond discounts are a volume-weighted discount dependent on how many bonds are purchased. Both of these costs are amortized on a straight- line basis, which approximates the effective interest method, over the term of the bonds. Bond issuance and bond discount costs are presented on the balance sheet as a direct reduction from the carrying amount of the bond liability. Unamortized bond issue and bond discount costs will be expensed if the bonds are repaid before maturity. Amortization expense is included in interest expense on the accompanying statement of operations.

**Deferred Leasing Costs** – Deferred leasing costs represent leasing commissions, legal fees and other third-party costs associated with obtaining tenants for the rental properties. These costs are amortized on a straight-line basis over the terms of the respective leases.

**Lease Intangible Assets and Liabilities** – GAAP requires intangible assets and liabilities to be recognized apart from goodwill if they arise from contractual or other legal rights (regardless of whether those rights are transferrable or separable from the acquired entity or from other rights and obligations).

**Accounts Receivable Tenants and Allowance for Doubtful Accounts** – Tenant receivables are comprised of billed, but uncollected amounts due for monthly rent and other charges required pursuant to existing rental lease agreements. An allowance for doubtful accounts is recorded when a tenant's receivable is not expected to be collected. A bad debt expense is charged when a tenant vacates a space with a remaining unpaid balance. At June 30, 2025, no amounts were reserved as an allowance for doubtful accounts. In the event a bad debt expense is recorded such amount would be presented net with income related to leases on the accompanying statement of operations.

**Revenues from Rental Properties** - Rental income is recorded for the period of occupancy using the effective monthly rent, which is the average monthly rental during the term of the lease. Accordingly, rental income is recognized ratably over the term of the respective leases, inclusive of leases which provide for scheduled rent increases and rental concessions. The difference between rental revenue earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent receivable on the accompanying balance sheet. Rents received in advance are deferred until they become due and are recorded as prepaid rent in the accompanying balance sheet. Additionally, during the term of their respective leases, tenants pay either (i) their pro rata share of real estate taxes, insurance, and other operating expenses (as defined in the underlying lease agreement), or (ii) a fixed rate for recoveries. For most of our leases, we receive a fixed payment from the tenant for these reimbursed expenses, which is recognized as revenue on a straight-line basis over the term of the lease. We accrue reimbursements from tenants for recoverable portions of all of these expenses as variable lease consideration in the period the applicable expenditures are incurred. We recognize differences between estimated recoveries and the final billed amounts in the subsequent year. There were no leases in place as of June 30, 2025.

**Income Taxes** – GKIH III is treated as a partnership for federal income tax purposes and consequently, federal income taxes are not payable or provided for by the Company. The members of GKIH III are taxed individually on their pro-rata ownership share of the Company's earnings.

GAAP basis of accounting requires management to evaluate tax positions taken by the Company and to disclose a tax liability (or asset) if the Company has taken uncertain positions that more than likely than not would not be sustained upon examination by the Internal Revenue Service or other tax authorities.

**GK Investment Holdings III, LLC**

Notes to Financial Statements

**For the Period from Inception (March 5, 2025) to June 30, 2025**

**Note 1 – Organization and Summary of Significant Accounting Policies for Future Operations (Continued)**

Management has analyzed the tax positions taken by the Company and has concluded that as of June 30, 2025, there were no uncertain tax positions taken or expected to be taken that would require disclosure in the financial statements.

**Accounting Pronouncements**

For each of the accounting pronouncements that affect the Company, the Company has elected or plans to elect to follow the rule that allows companies engaging in an initial Regulation A offering to follow private company implementation dates.

The Company has adopted reporting standards and disclosure requirements as a "smaller reporting company" as defined in Rule 405 of the Securities Act, Rule 12b-2 of the Securities Exchange Act of 1934 and item 10(f) of Regulation S-K, as amended. These rules provide scaled disclosure accommodations, the purpose of which is to provide general regulatory relief to qualifying entities

In March 2020, the FASB issued ASU 2020-04, *Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting*. The London Interbank Offered Rate (LIBOR), which is widely used as a reference interest rate in debt agreements and other contracts, was effectively discontinued for new contracts as of December 31, 2021, and its publication for existing contracts is scheduled to be discontinued by June 30, 2023. Financial market regulators in certain jurisdictions throughout the world undertook reference rate reform initiatives to guide the transition and modification of debt agreements and other contracts that are based on LIBOR to the successor reference rate that will replace it. ASU 2020-04 was issued to provide companies that are impacted by these changes with the opportunity to elect certain expedients and exceptions that are intended to ease the potential burden of accounting for or recognizing the effects of reference rate reform on financial reporting. Under ASU 2020-04, companies may generally elect to make use of the expedients and exceptions provided therein for any reference rate contract modifications that *Reference Rate Reform (Topic 848): Deferral of the Sunset of Topic 848*, to extend that timeline from December 31, 2022 to December 31, 2024. The Company is currently evaluating the effect the adoption of this ASU will have on the consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies are not currently applicable to the Company or are not expected to have a significant impact on the Company's financial position, results of operations and cash flows.

**GK Investment Holdings III, LLC**

Notes to Financial Statements

**For the Period from Inception (March 5, 2025) to June 30, 2025**

**Note 2 – Fair Value**

Accounting standards require certain assets and liabilities to be reported at fair value in the financial statements and provide a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the valuation techniques and inputs used to measure fair value.

Fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset.

In instances whereby inputs used to measure fair value fall into different levels of the fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company's assessment of the significance of particular inputs to these fair value measurements requires judgement and considers factors specific to each asset or liability.

**Note 3 – Subsequent Events**

The financial statements and related disclosures include evaluation of events up through and including November 3, 2025, which is the date the financial statements were available to be issued.

On March 31, 2025, the Company submitted its initial offering of up to $75,000,000 in the aggregate of 7.75% bonds. The purchase price per bond was offered at $1,000, with a minimum purchase amount of $5,000. Through June 30, 2025, the Company had sold $0 of Bonds.

**Item 4. Exhibits**

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| | |
|:---|:---|
| **Exhibit<br> Number** | **Exhibit Description** |
| [(2)(a)](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex2a.htm) | [Certificate of Formation of GK Investment Holdings III LLC dated March 5, 2025,incorporated by reference to Exhibit (2)(a) to the Company's Offering Statement on Form 1-A filed on August 4, 2025.](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex2a.htm) |
| [(2)(b)](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex2b.htm) | [Limited Liability Company Agreement of the Company date March 5, 2025, incorporated by reference to Exhibit (2)(b) to the Company's Offering Statement on Form 1-A filed on August 4, 2025.](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex2b.htm) |
| [(3)(a)](tm2530410d1_ex3a.htm) | [Bond Purchase Agreement.](tm2530410d1_ex3a.htm) |
| [(3)(b)](https://www.sec.gov/Archives/edgar/data/2072338/000110465925073542/tm2517430d2_ex3b.htm) | [Form of Unsecured 8.0% Bond incorporated by reference to Exhibit (3)(b) to the Company's Offering Statement on Form 1-A filed on August 4, 2025.](https://www.sec.gov/Archives/edgar/data/2072338/000110465925073542/tm2517430d2_ex3b.htm) |
| [(4)](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex4.htm) | [Form of Subscription Agreement, incorporated by reference to Exhibit (4) to the Company's Offering Statement on Form 1-A filed on August 4, 2025.](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex4.htm) |
| [(6)(a)](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex6a.htm) | [Escrow Agreement by and between by and between Wealthforge Distributors, LLC and GK Investment Holdings III LLC, incorporated by reference to Exhibit (6)(a) to the Company's Offering Statement on Form 1-A filed on August 4, 2025.](https://www.sec.gov/Archives/edgar/data/2072338/000110465925058901/tm2517430d1_ex6a.htm) |
| [(6)(b)](https://www.sec.gov/Archives/edgar/data/2072338/000110465925073542/tm2517430d2_ex6b.htm) | [Service Fee Agreement by and between GK INVESTMENT HOLDINGS III LLC, a Delaware limited liability company and GK DEVELOPMENT, INC, an Illinois corporation, d/b/a "GK Real Estate" incorporated by reference to Exhibit (6)(b) to the Company's Offering Statement on Form 1-A filed on August 4, 2025.](https://www.sec.gov/Archives/edgar/data/2072338/000110465925073542/tm2517430d2_ex6b.htm) |

---

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

**GK Investment Holdings III LLC,**<br> a Delaware limited liability company<br>

---

| | |
|:---|:---|
| By: | **GK Development, Inc. dba GK Real Estate,** |
|  | an Illinois corporation, Manager |

---

---

| | |
|:---|:---|
| By: | /s/ Garo Kholamian |
| Name: | Garo Kholamian |
| Its: | Sole Director |
| Date: | November 13, 2025 |

---

---

| | |
|:---|:---|
| By: | /s/ Garo Kholamian |
| Name: | Garo Kholamian |
| Its: | President of our manager (Principal Executive Officer) |
| Date: | November 13, 2025 |

---

---

| | |
|:---|:---|
| By: | /s/ Steven Hidgon |
| Name: | Steven Hidgon |
| Its: | Chief Financial Officer of our manager<br> (Principal Financial Officer and Principal Accounting Officer) |
| Date: | November 13, 2025 |

---

## Ex1Sa-3

**Exhibit 3(a)**

BOND PURCHASE AGREEMENT

GK INVESTMENT HOLDINGS III, LLC

and

THE HOLDERS OF THE BONDS

<br> $75,000,000

**<u>**TABLE OF CONTENTS**</u>**

---

| | | |
|:---|:---|:---|
| ARTICLE 1 DEFINITIONS AND RULES OF CONSTRUCTION | ARTICLE 1 DEFINITIONS AND RULES OF CONSTRUCTION | 4 |
| Section 1.1 | Definitions. | 4 |
| Section 1.2 | Rules of Construction. | 4 |
| ARTICLE 2 THE SECURITIES | ARTICLE 2 THE SECURITIES | 4 |
| Section 2.1 | Form and Dating. | 4 |
| Section 2.2 | Terms. | 4 |
| Section 2.3 | Agents. | 6 |
| Section 2.4 | Paying Agent To Hold Money in Trust. | 6 |
| Section 2.5 | Holder Lists. | 6 |
| Section 2.6 | Transfer and Exchange. | 6 |
| Section 2.7 | Treasury Bonds Disregarded for Certain Purposes. | 7 |
| Section 2.8 | Cancellation. | 7 |
| Section 2.9 | Redemption | 7 |
| ARTICLE 3 COVENANTS | ARTICLE 3 COVENANTS | 8 |
| Section 3.1 | Payment of Bonds | 8 |
| Section 3.2 | Compliance with Laws. | 9 |
| Section 3.3 | Existence. | 9 |
| Section 3.4 | Books and Records. | 9 |
| Section 3.5. | Intentionally Deleted. | 9 |
| Section 3.6 | Amendment to Organizational Documents. | 9 |
| Section 3.7 | Secured Indebtedness Restriction. | 9 |
| Section 3.8 | Equity-Bond Ratio. | 9 |
| Section 3.9 | Bond Service Obligation. | 9 |
| ARTICLE 4 DEFAULTS AND REMEDIES | ARTICLE 4 DEFAULTS AND REMEDIES | 10 |
| Section 4.1 | Events of Default. | 10 |
| Section 4.2 | Intentionally Deleted. | 11 |
| Section 4.3 | Appraisals. | 11 |
| Section 4.4 | Waiver of Past Events of Default; Postponement of Interest Payments. | 11 |
| Section 4.5 | Rights of Holders To Receive Payment. | 11 |
| Section 4.6 | Priorities. | 11 |
| Section 4.7 | Undertaking for Costs. | 11 |
| Section 4.8 | Actions of a Holder. | 11 |
| ARTICLE 5 AMENDMENTS | ARTICLE 5 AMENDMENTS | 11 |
| Section 5.1 | Without Consent of Holders. | 11 |

---

---

| | | |
|:---|:---|:---|
| Section 5.2 | With Consent of Holders. | 12 |
| Section 5.3 | Revocation and Effect of Consents and Waivers. | 12 |
| Section 5.4 | Notice of Amendment; Notation on or Exchange of Bonds. | 12 |
| ARTICLE 6 MISCELLANEOUS | ARTICLE 6 MISCELLANEOUS | 13 |
| Section 6.1 | Notices. | 13 |
| Section 6.2 | Legal Holidays. | 13 |
| Section 6.3 | No Recourse Against Others. | 13 |
| Section 6.4 | Duplicate Originals. | 13 |
| Section 6.5 | Variable Provisions. | 13 |
| Section 6.6 | Governing Law and Venue. | 14 |

---

This BOND PURCHASE AGREEMENT (the "***Agreement***"), effective as of _______________, 202__ is made and entered into by and among GK INVESTMENT HOLDINGS III LLC, a Delaware limited liability company (the "***Company***"), and each of the other persons who have executed a Subscription Agreement (defined herein) that have been accepted by the Company (collectively, the "***Holders***").

**Article 1<br> DEFINITIONS AND RULES OF CONSTRUCTION**

**Section 1.1 Definitions.**

For purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, all capitalized terms used herein shall have the meanings set forth in <u>Annex A</u> annexed hereto and made a part hereof.

**Section 1.2 Rules of Construction.**

Unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) "or" is not exclusive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) words in the singular include the plural, and words in the plural include the singular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) provisions apply to successive events and transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) "herein," "hereof" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) "including" means including without limitation.

**Article 2<br> THE SECURITIES**

**Section 2.1 Form and Dating.**

The Bonds may be issued in book entry form, uncertified form, or certified form. Except for Bonds held by a Depository through a global bond, Bonds will only be certified at the Company's discretion. The Bonds and the certificate of authentication shall be substantially in the form of <u>Exhibit A</u> hereto and in such other forms as authorized pursuant to this Agreement (the "Form of Bond"). The Bonds may have notations, legends or endorsements required by law, stock exchange rule, automated quotation system, agreements to which the Company is subject, or usage. Each Bond shall be dated the date that the Company determines to be the date when the investor's Subscription Agreement has been accepted and good funds have been collected. Bonds surrendered for registration of transfer pursuant to Section 2.6 may be reissued (bearing the name of the new registered Holder) with a date reflecting the date such registration of transfer took effect in accordance with the records of the Company. Bonds are not issuable in bearer form.

**Section 2.2 Terms.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Bonds shall be issuable as registered Bonds and in the denominations of One Thousand U.S. dollars ($1,000) or any integral multiple thereof. Initially, the Bonds will be offered starting from the date of qualification of the Regulation A Offering Statement on Form 1-A filed on June 12, 2025, as amended and supplemented from time to time (File No. 024-12626).The Bonds will bear interest at a fixed rate of seven percent (7.0%) per annum payable on each Interest Payment Date. Interest payable shall be calculated using the Interest Accrual Period immediately preceding such Interest Payment Date, if applicable. Interest on the Bonds will be paid monthly on the fifteenth (15th) day of each calendar month and the first interest payment on a Bond will be paid on the fifteenth (15th) day of the calendar month following the issuance of such Bond. In addition, the Company is obligated to pay Bondholders a cumulative non-compounding 1% Deferred Interest Payment on the Maturity Date. The Maturity Date and any extensions for the Bonds shall be set forth in the Form of Bond.

The principal of and the interest on the Bonds, as well as any premium thereon in case of redemption thereof prior to maturity, shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the Corporate Trust Office or agency of the Paying Agent; *provided, however*, that at the option of the Company and prior written consent of the registered holder of the Bond, payment of interest, may be made by check mailed by the Company directly to the address of the Person entitled thereto as such address shall appear in the Bond Register or shall be wired by the Company in accordance with the wire instructions provided by the registered holder of the Bond. Each Bond shall be dated the date of its authentication by the Company. Interest on the Bonds shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The interest installment on any Bond that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name said Bond (or one or more Predecessor Bonds) is registered at the close of business on the Record Date for such interest installment. In the event that any Bond is called for redemption and the redemption date is subsequent to a Record Date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Bond will be paid upon presentation and surrender to the Paying Agent of such Bond as provided in Section 2.9. Notwithstanding any other provisions of this Section 2.2, for Bonds held in Global Form payment of principal of and any interest on the Bonds shall be made to a Depositary or its nominee, as the case may be, as the sole registered owner and holder of the Bonds for all purposes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any interest on any Bond that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease to be payable to the registered holder on the relevant Record Date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may make payment of any Defaulted Interest on Bonds to the Persons in whose names such Bonds (or their respective Predecessor Bonds) are registered at the close of business on a special Record Date for the payment of such Defaulted Interest. The Company shall fix a special Record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Company of the notice of the proposed payment. Such Defaulted Interest shall be paid to the Persons in whose names such Bonds (or their respective Predecessor Bonds) are registered on such special record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may make payment of any Defaulted Interest on any Bonds in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Bonds may be listed, and upon such notice as may be required by such exchange. Subject to the foregoing provisions of this Section, each Bond delivered under this Agreement upon transfer of or in exchange for or in lieu of any other Bond shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Unless otherwise provided in the applicable form of Bond, no later than 60 days prior to the Maturity Date of a Bond the Company shall send to the Paying Agent, and each holder of record of such maturing Bond as of the Record Date set forth in the Notice of Maturity described in the next succeeding clause, or if no such Record Date is set forth then the date of such Notice of Maturity (a "Maturity Record Date"), a Notice of Maturity (via first class U.S. mail, facsimile or electronic transmission) stating the Maturity Date and whether the Company intends to elect any rights of extension of the Maturity Date as may be set forth in the applicable form of Bond. Unless otherwise provided in the applicable form of the Bond, to the extent the Company fails to provide such Notice of Maturity no later than 60 days prior to the Maturity Date of a Bond, the Company shall be deemed to have waived any right of extension of the Maturity Date and the Company shall pay all amounts due on the Maturity Date.

**Section 2.3 Agents.**

The Company shall maintain or cause to be maintained an office or agency where Bonds may be presented for registration of transfer or for exchange ("***Registrar***"), and where Bonds may be presented for payment ("***Paying Agent***"). The Registrar shall keep a register of the Bonds and of their transfer and exchange.

The Company may appoint more than one Registrar or Paying Agent. The Company may act as Paying Agent and/or Registrar. The Company shall notify the Holders of the name and address of any Agent that is not the Company.

The Company may remove any Registrar or Paying Agent upon written notice to such Registrar or Paying Agent; provided, however, that no such removal shall become effective until acceptance or any appointment by a successor as evidenced by an appropriate agreement entered into by the Company and such successor. The Registrar or Paying Agent may resign at any time upon written notice to the Company.

**Section 2.4 Paying Agent To Hold Money in Trust.**

On or before each due date of the Principal and Interest on any Bond, the Company shall deposit with the Paying Agent (if not the Company) a sum sufficient to pay such Principal and Interest when so becoming due. The Company shall require each Paying Agent (if not the Company) to agree in writing that the Paying Agent will hold in trust for the benefit of the Holders all money held by the Paying Agent for the payment of the Principal of or Interest on the Bonds.

**Section 2.5 Holder Lists.**

The Company shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders (the "Bondholder List"). The Holder shall update the Company upon any change of its address information (including without limitation its electronic address). A Holder may only request access to such Bondholder List upon the occurrence of an Event of Default as defined in Section 4.1. If a Holder wishes to communicate with other Holders after an Event of Default has occurred, the Holder must first send the proposed communication to the Company to transmit to the other Holders, in any manner of the Company's choice. If the Company does not transmit the proposed communication to the other Holders within 30 days of receipt, then the Holder may request access to the Bondholder List, which shall not be withheld; provided, that such Bondholder List shall be used solely for purposes of communication regarding the then current Event of Default, if any, and upon any waiver or cure of such Event of Default, the Holder shall return all copies of the Bondholder List to the Company immediately, or destroy the same.

**Section 2.6 Transfer and Exchange.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Form</u>. The Company shall issue the Bonds in book entry form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>No Duty of Registrar</u>. The Registrar (if not the Company) shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Agreement or under applicable law with respect to any transfer of any interest in any Bond other than to require delivery of such certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>General Provisions Relating to Transfers and Exchanges</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bonds may be exchanged upon presentation thereof at the office or agency of the Bond Registrar (as defined in the Form of Bond), or such other location designated by the Company, for other Bonds of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Bonds so surrendered for exchange, the Company shall execute, and such office or agency shall deliver in exchange therefor the Bond or Bonds that the Bondholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding. In addition to any fee that the Company charges to a Holder of Bond for any registration of transfer or exchange, the Company may also require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection with any registration of transfer, conversion or exchange thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Bonds issued upon any registration of transfer or exchange of Bonds shall be the valid obligations of the Company, evidencing the same indebtedness, and entitled to the same benefits under this Agreement, as the Bonds surrendered upon such registration of transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the Company nor the Registrar shall be required to register the transfer of or to exchange a Bond between a Record Date and the next succeeding Interest Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to due presentment for the registration of a transfer of any Bond, any Agent and the Company may deem and treat the Person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest on such Bonds and for all other purposes whatsoever, whether or not such Bond be overdue, and none of the Trustee, neither any Agent nor the Company shall be affected by notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Holder of a Bond agrees to indemnify the Company against any liability that may result from the transfer, exchange or assignment of such Holder's Bond in violation of any provision of this applicable United States federal or state securities law, including any violation of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Upon any purchase of a Bond, the Company must certify to the Registrar (if not the Company), and the Registrar may not transfer any Bond unless the Company certifies to it, that such transfer would not be required to be registered under the Securities Act or would be excluded from registration pursuant to an exception under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Registrar shall retain copies of all certifications, letters, notices and other written communications received pursuant to this Section 2.6. The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written notice.

**Section 2.7 Treasury Bonds Disregarded for Certain Purposes.**

In determining whether the Holders of the required Principal amount of Bonds have concurred in any direction, waiver or consent, Bonds owned by the Company or an Affiliate shall be disregarded and deemed not to be outstanding, except that, for the purposes of determining whether the Registrar shall be protected in relying on any such direction, waiver or consent, only Bonds that the Registrar has actual knowledge of such ownership shall be so disregarded. Bonds so owned that have been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction of the Registrar the pledgee's right to deliver any such direction, waiver or consent with respect to the Bonds and that the pledgee is not the Company or any other obligor upon the Bonds or any Affiliate of the Company or of such other obligor.

**Section 2.8 Cancellation.**

The Company at any time may deliver Bonds to the Registrar for cancellation. The Paying Agent shall forward to the Registrar any Bonds surrendered to it for payment. The Registrar shall cancel all Bonds surrendered for registration of transfer, exchange, payment or cancellation. The Company may not issue new Bonds to replace Bonds that it has paid or which have been delivered to the Registrar for cancellation, except that (1) where a Bond is surrendered for registration of transfer or partial redemption, then a new Bond of the same number may be issued, and (2) where a Bond is surrendered for exchange, one or more new Bonds may be issued.

**Section 2.9 Redemption**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Bonds may be redeemed, in whole or from time to time in part, subject to the conditions set forth in this Agreement and in the Form of Bond. If the Company elects to redeem Bonds pursuant to this Section 2.9, it shall notify the Holders of the Bonds up for redemption in writing of the redemption date, the redemption price and the principal amount of Bonds to be redeemed. The Company shall give notice of redemption to the applicable Bondholder and any Paying Agent not less than thirty (30) days before the redemption date, together with such documentation and records as necessary to reflect the Company's selection of Bonds for redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In case the Company shall desire to exercise any right to redeem all or, as the case may be, a portion of the Bonds in accordance with any right reserved so to do, the Company shall, or shall cause the Paying Agent to, give notice of such redemption to holders of the Bonds to be redeemed by mailing, first class postage prepaid, a notice of such redemption not less than fifteen (15) days and not more than sixty (60) days before the date fixed for redemption to such holders at their last addresses as they shall appear upon the Bond Register unless a shorter period is specified in the Bonds to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Bond designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Bonds. If less than all the Bonds are to be redeemed, the notice to the holders of Bonds to be redeemed in whole or in part shall specify the particular Bonds to be so redeemed. In case any Bond is to be redeemed in part only, the notice that relates to such Bond shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Bond to the Paying Agent, a new Bond or Bonds in principal amount equal to the unredeemed portion thereof will be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If less than all of any class or series of the Bonds are to be redeemed, the Company shall give the Bondholder and Paying Agent at least thirty (30) days' notice in advance of the date fixed for redemption as to the aggregate principal amount of Bonds to be redeemed, and the Company's selection of the specific Bonds to be redeemed in accordance with the terms of the applicable Bond form. The Company may, if and whenever it shall so elect, by delivery of instructions signed by the Company, instruct any Paying Agent to call all or any part of the Bonds for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as such Paying Agent as it may deem advisable. In any case in which notice of redemption is to be given by such Paying Agent, the Company shall deliver or cause to be delivered to, or permit to remain with, such Paying Agent, as the case may be, such Bond Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable such Paying Agent to give any notice by mail that may be required under the provisions of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If the giving of notice of redemption shall have been completed as above provided, the Bonds or portions of Bonds to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such Bonds or portions of Bonds shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Bond or portion thereof. On presentation and surrender of such Bonds on or after the date fixed for redemption at the place of payment specified in the notice, said Bonds shall be paid and redeemed at the applicable redemption price, together with interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an Interest Payment Date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable Record Date pursuant to this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Upon presentation of any Bond that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Bond is presented shall deliver to the holder thereof, at the expense of the Company, a new Bond of authorized denominations in principal amount equal to the unredeemed portion of the Bond so presented.

The Bonds may be redeemable at the election of the Bondholder in accordance with Section 6 of the Form of Bond.

**Article 3<br> COVENANTS**

**Section 3.1 Payment of Bonds**

The Company shall pay the Principal of and Interest on the Bonds on the dates and in the manner provided in the Bonds and this Agreement. Principal and Interest shall be considered paid on the date due if the Paying Agent holds in accordance with this Agreement on that date money sufficient to pay all Principal and Interest then due and the Paying Agent is not prohibited from paying such money to the Holders on such date pursuant to the terms of this Agreement.

**Section 3.2 Compliance with Laws.**

The Company shall, and shall cause the Manager to, conduct its business in compliance with all applicable requirements of all laws, ordinances or governmental rules or regulations to which each of them is subject (including, without limitation, the USA Patriot Act), including, without limitation, all relevant Governmental Approvals, except where any failure to comply could not reasonably be expected to result in a Material Adverse Effect, and except that the Company may, at its expense, contest by appropriate proceedings conducted in good faith the validity or application of any such requirement of law, so long as (a) none of the Holders could reasonably be expected to be subject to any civil or criminal liability for failure to comply therewith and (b) the result of such proceedings could not reasonably be expected to have a Material Adverse Effect.

**Section 3.3 Existence.**

The Company will at all times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Preserve and maintain its legal existence as a limited liability company under the applicable laws of the State of Delaware and all of is material licenses, rights, privileges and franchises necessary for the maintenance of its corporate existence; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Comply, in all material respects, with its Organizational Documents.

**Section 3.4 Books and Records.**

The Company will maintain proper books of record and account in conformity with applicable accounting principles and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company.

**Section 3.5. Appraisals.**

While any of the Bonds remain Outstanding, the Company shall commission or otherwise obtain an Appraisal or Boker Opinion of Value of each real property owned by the Company or a subsidiary of the Company, at least once per calendar, including the calendar year following the year in which the property was acquired, and then on or before each subsequent anniversary of the prior Appraisal.

**Section 3.6 Amendment to Organizational Documents.**

The Company will not amend, modify or change any terms or conditions of any of its Organizational Documents, other than those amendments, modifications or changes that would not reasonably be expected to have a Material Adverse Effect.

**Section 3.7 Secured Indebtedness Restriction.**

The Company, and its subsidiaries, may incur any indebtedness that would be senior to the Bonds, so long as the Company is in compliance with Section 3.8 of this Agreement.

**Section 3.8 Equity-Bond Ratio.**

While any of the Bonds remain outstanding, the sum of the aggregate Property Equity Values plus any Cash or Cash Equivalents then held by the Company shall be equal to or exceed seventy percent (70%) of aggregate principal amount of the Outstanding Bonds.

**Section 3.9 Bond Service Obligation.**

While any Bonds remain outstanding, the Company shall maintain a Cash Coverage Ratio equal to at least 120% of the Company's interest obligations on the Bonds over the next three (3) months.

**Article 4<br> DEFAULTS AND REMEDIES**

**Section 4.1 Events of Default.**

An "Event of Default" occurs if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company defaults in the payment of any installment of interest, upon any of the Bonds as and when the same shall become due and payable, and continuance of such default for a period of 60 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company defaults in the payment of the principal of (or premium, if any, on) any of the Bonds as and when the same shall become due and payable, and continuance of such default for a period of 60 days, whether at maturity, upon redemption, by declaration or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Company fails to observe or perform any other of its covenants or agreements contained in this Agreement for a period of 120 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a "Notice of Default" hereunder, shall have been given to the Company by the Holders of at least 25% in Principal amount of the Bonds at the time Outstanding, by registered or certified mail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Company pursuant to or within the meaning of any Bankruptcy Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) commences a voluntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consents to the entry of an order for relief against it in an involuntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consents to the appointment of a custodian of it or for all or substantially all of its property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) makes a general assignment for the benefit of its creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is for relief against the Company in an involuntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) appoints a custodian of the Company or for all or substantially all of its property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days.

The foregoing will constitute Events of Default whatever the reason for any such Event of Default, whether it is voluntary or involuntary, or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body.

The term "***Bankruptcy Law***" means title 11 of the U.S. Code or any similar federal or state law for the relief of debtors. The term "***Custodian***" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

The notice under clause (3) above must specify the Event of Default, demand that it be remedied to the extent consistent with law, and state that the notice is a "Notice of Default."

The Company will provide the Holders of the Bonds with semi-annual reports as required pursuant to Rule 257 of Regulation A that state whether the Company is in compliance with the covenants and other agreements contained in this Agreement. The semi-annual reports will be available to Holders as provided in the offering circular.

**Section 4.2 Intentionally Deleted.**

**Section 4.3 Intentionally Deleted.**

**Section 4.4 Waiver of Past Events of Default; Postponement of Interest Payments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Holders of a majority in Principal amount of the Bonds by notice to the Company may waive an existing Event of Default and its consequences except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an Event of Default in the payment of the Principal of or Interest on any Bond; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an Event of Default with respect to a provision that under Section 5.2 cannot be amended without the consent of each Holder affected.

**Section 4.5 Rights of Holders To Receive Payment.**

Notwithstanding any other provision of this Agreement, the right of any Holder of a Bond to receive payment of Principal and Interest on the Bond, on or after the respective due dates expressed in the Bond, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of the applicable Holder; provided, however, that the Holders of a majority in Principal amount of the Bonds may negotiate and enter into a settlement, payment schedule or other arrangement (including, without limitation, the reduction or increase of Interest and Principal due Holders, the modification of the manner, place or terms of payment, and the release or discharge of any claims, fees or amounts due Holders) on behalf of all Holders during the course of any suit, Proceeding or otherwise. In the event of any Proceeding, the settlement, payment schedule or other arrangement referenced in the preceding sentence must be in conformity with applicable Bankruptcy Law and approved by the applicable bankruptcy court before it may become effective.

**Section 4.6 Priorities.**

After the occurrence and during the continuance of an Event of Default, any money or other property distributable in respect of the Company's obligations under this Agreement shall be paid in the following order:

First: to Holders for amounts due and unpaid on the Bonds for Principal and Interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Bonds for Principal and Interest, respectively; and

Second: to the Company.

**Section 4.7 Undertaking for Costs.**

In any suit for the enforcement of any right or remedy under this Agreement, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys' fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.

**Section 4.8 Actions of a Holder.**

For the purpose of providing any consent, waiver or instruction to the Company, a Holder shall include a Person who provides to the Company an affidavit of beneficial ownership of a Bond together with a satisfactory indemnity against any loss, liability or expense to such party to the extent that it acts upon such affidavit of beneficial ownership (including any consent, waiver or instructions given by a Person providing such affidavit and indemnity).

**Article 5<br> AMENDMENTS**

**Section 5.1 Without Consent of Holders.**

The Company may amend this Agreement or the Bonds without the consent of any Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to cure any ambiguity, defect or inconsistency; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to make any change that does not adversely affect the rights of any Holder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to increase the number of Bonds to be issued pursuant to this Agreement.

**Section 5.2 With Consent of Holders.**

The Company may amend this Agreement or the Bonds with the written consent of the Holders of at least a majority in Principal amount of the Bonds. However, without the consent of each Holder affected, an amendment under this Section may not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) reduce the amount of Bonds whose Holders must consent to an amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) reduce the Interest on or, except as provided in Section 6.4, change the time for payment of Interest on any Bond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) reduce the Principal of or change the fixed maturity of any Bond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) make any Bond payable in money other than that stated in the Bond; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) make any change in Section 4.4 or the first sentence of this Section 5.2.

It shall not be necessary for the consent of the Holders under this Section 5.2 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof.

**Section 5.3 Revocation and Effect of Consents and Waivers.**

A consent to an amendment or a waiver by a Holder of a Bond shall bind the Holder and every subsequent Holder of that Bond or portion of the Bond that evidences the same debt as the consenting Holder's Bond, even if notation of the consent or waiver is not made on the Bond. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such Holder's Bond or portion of the Bond if the Company receives the notice of revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Holder.

The Company may, but shall not be obligated to, fix a Record Date for the purpose of determining the Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Agreement. If a Record Date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders at such Record Date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or take any such action, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 120 days after such record date.

**Section 5.4 Notice of Amendment; Notation on or Exchange of Bonds.**

After any amendment under this Article 5 becomes effective, the Company shall mail to Holders a notice briefly describing such amendment. The failure to give such notice to all Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Article 5.

The Company may place an appropriate notation about an amendment or waiver on any Bond thereafter authenticated. The Company may issue, in exchange for affected Bonds, new Bonds that reflect the amendment or waiver.

**Article 6<br> MISCELLANEOUS**

**Section 6.1 Notices.**

Any notice by one party to the other shall be in writing and sent to the other's address stated in Section 6.5. The notice is duly given if it is delivered in Person or sent by a national courier service that provides next Business Day delivery or by first-class mail.

A party by notice to the other party may designate additional or different addresses for subsequent notices.

Any notice sent to a Holder shall be mailed by first-class letter mailed to its address shown on the register kept by the Registrar. Failure to mail a notice to a Holder or any defect in a notice mailed to a Holder shall not affect the sufficiency of the notice mailed to other Holders.

If a notice is delivered or mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

A "Notice" includes any communication required by this Agreement.

**Section 6.2 Legal Holidays.**

A "Legal Holiday" is a Saturday, a Sunday or a day on which banking institutions are not required to be open in both New York City, New York. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding Business Day that is not a Legal Holiday, and no Interest shall accrue for the intervening period.

**Section 6.3 No Recourse Against Others.**

A director, officer, employee or member, as such, of the Company shall not have any liability for any obligations of the Company under the Bonds or this Agreement or for any claim based on, in respect of or by reason of such obligations or their creation.

**Section 6.4 Duplicate Originals.**

The parties may sign any number of copies, and may execute such in counterparts, of this Agreement. One signed copy is enough to prove this Agreement.

**Section 6.5 Variable Provisions.**

"***Officer***" means the Chairman, Chief Executive Officer, President, any Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

The Company initially appoints Great Lakes Fund Solutions, Inc., as Registrar and Paying Agent.

The Company initially establishes the fee for registration of transfer or exchange of a Bond under Section 2.6 at $25 per transfer or exchange.

The Company's address is:

GK INVESTMENT HOLDINGS III LLC<br> 257 East Main Street, Suite 200

Barrington, IL 60010

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(847) 277-9930

Each Holder's address as set forth in such Holder's Subscription Agreement.

**Section 6.6 Governing Law and Venue.**

This Agreement, the Bonds and all claims and causes of action arising hereunder or thereunder or relating hereto or thereto will be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any conflict of law principles that would result in the application of the laws of any other jurisdiction. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Illinois (Cook or Lake counties) or in the federal courts located in the Illinois. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non-convenience.

IN WITNESS WHEREOF, each party hereto has caused this Agreement duly executed by itself or a duly authorized representative on its behalf.

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| |
|:---|
| &nbsp;&nbsp;GK INVESTMENT HOLDINGS III, LLC |
| &nbsp;&nbsp;By: /s/ Garo Kholamian |
| &nbsp;&nbsp;Name: Garo Kholamian |
| &nbsp;&nbsp;Title: President of our manager |
| &nbsp;&nbsp;Date: November 12, 2025 |
| &nbsp;&nbsp;BONDHOLDER: |
| &nbsp;&nbsp;By:____________________________ |
| &nbsp;&nbsp;Name: |
| &nbsp;&nbsp;Title: |
| &nbsp;&nbsp;Date: |

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*Signature Page to Bond Purchase Agreement*

**ANNEX A**

**DEFINITIONS**

"***Affiliate***" shall mean any Person controlling or controlled by or under common control with the referenced Person. "Control" for this definition means the power to direct the management and policies of a Person, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise. The terms "controlling" and "controlled" have meanings correlative to the foregoing.

"***Agent***" shall mean any Registrar or Paying Agent.

"***Bankruptcy Law***" shall have the meaning set forth in Section 4.1.

***"Bonds"*** shall mean the $75,000,000 in the aggregate of the Company's 8.0% unsecured bonds offered pursuant to the Company's Regulation A Offering Statement as defined in Section 2.2, in any case, registered in the name of the Holder thereof and issued in accordance with Article 2 hereof, substantially in the form of Exhibit A.

"***Bond Service Obligations***" shall mean, for any period or payable at any time, the principal of, premium, if any, on and interest on the Bonds for that period or payable at the time whether due on an Interest Payment Date, at maturity or upon acceleration or redemption.

***"Broker Value of Opinion"*** shall mean an estimate of a property's market value conducted by a licensed real estate broker, agent or qualified realty firm.

"***Business Day***" shall mean a day that is not a Legal Holiday.

***"Cash and Cash Equivalents"*** shall have the meaning prescribed by GAAP.

***"Cash Coverage Ratio"*** means the ratio of the Cash and Cash Equivalents maintained by the Company to the aggregate Bond Service Obligations for a period of three (3) months.

"***Company***" shall mean GK Investment Holdings III LLC, a Delaware limited liability company and all successors thereto.

***"Custodian"*** shall have the meaning set forth in Section 4.1.

"***Default***" shall mean any event which is, or after notice or passage of time would be, an Event of Default.

"***Default Interest***" shall have the meaning set forth in Section 2.2(2).

"***Distribution***" shall mean any distribution by the Company (in cash, property of the Company or obligations) on, or other payment or distribution on account of, or the setting apart of money for a sinking or other analogous fund for, or the purchase, redemption, retirement or other acquisition by the Company of, any portion of any equity interest in the Company.

"***Event of Default***" shall have the meaning set forth in Section 4.1.

"***Governmental Approval***" shall men any authorization, consent, approval, license, ruling, permit, tariff, rate, certification, exemption, filing, variance, claim, order, judgment, decree, publication, notice to, declaration of or with, or restriction by or with, any Governmental Authority.

"***Governmental Authority***" shall mean any government, governmental department, commission, board, bureau, agency, regulatory authority, instrumentality, judicial or administrative body, domestic or foreign, federal, state or local, having jurisdiction over the matter or matters in question.

"***Holder***" shall mean a Person in whose name a Bond is registered.

"***Interest***" shall have the meaning set forth in Section 2.4.

***"Interest Payment Date"*** means the date for payment of interest, including any Deferred Interest, as set forth in the applicable Form Bond.

"***Material Adverse Effect***" shall mean a material adverse effect on (a) the assets, business or financial condition of the Company or (b) the ability of the Company to make timely payments of Principal Interest and other amounts due on the Bonds.

"***Maturity Date***" shall have the meaning set forth in Section 2.2(3).

"***Notice***" shall have the meaning set forth in Section 6.1.

***"Notice of Maturity"*** means a notice from the Company to a Bondholder that the Bondholder's Bond will be maturing on the related Maturity Date.

"***Officer***" shall have the meaning set forth in Section 6.5.

"***Organizational Documents***" shall mean the certificate of formation and the limited liability company agreement of the Company, as amended, supplemented or restated from time to time.

"***Paying Agent***" shall have the meaning set forth in Section 2.9.

"***Person***" shall mean any individual, corporation, partnership, joint venture, association, limited liability company, joint stock company, trust, unincorporated organization or government or other agency or political subdivision thereof.

"***Principal***" of a Bond means the principal balance of the respective Bond.

"***Proceeding***" shall mean a liquidation, dissolution, bankruptcy, insolvency, reorganization, receivership or similar proceeding under Bankruptcy Law, an assignment for the benefit of creditors, any marshalling of assets or liabilities, or winding up or dissolution.

***"Property"*** means any interest in any kind of property or asset, whether, real, personal or mixed, whether tangible or intangible, owned or acquired by the Company or any Subsidiary of the Company.

***"Property Value"*** means either (a) if within two years of the Company's or its subsidiary's acquisition of Property and absent a later dated Appraisal of the Property then the gross purchase price of the Property or if such Property be a Real Property Debt Interest, then the outstanding principal amount of such Real Property Debt Interest; or (b) if on or after the second anniversary of the acquisition of the Property by the Company or its subsidiary if such Property be real property, then the appraised value of the Property in accordance with the Appraisal required under Section 3.5 hereof.

"***Property Equity Value***" means, with respect to any Property held by the Company or a subsidiary, the Property Value less (1) the aggregate outstanding indebtedness secured by such Property, (2) the aggregate unsecured debt of any subsidiary with a direct or indirect interest in a Property, and (3) the aggregate debt secured by the Company's direct or indirect interest in any Subsidiary, and, if the subject Property be held in a subsidiary, further multiplied by the Company's proportionate interest in such Subsidiary; provided, however, for purposes of this Indenture, the minimum Property Equity Value of any Property shall be deemed to be $0.00.

"***Record Date***" have the meaning set forth in the Bonds.

"***Real Property Debt Interest***" means any note, bond, debenture or other evidence of indebtedness, or interest therein, issued or made by any Person owning, directly or through one or more subsidiaries, real property, and secured by a lien on either (a) real property; or (b) any equity interest in the owner (direct or indirect of real property).

"***Registrar***" shall have the meaning set forth in Section 6.5.

"***Securities Act***" shall mean the Securities Act of 1933, as amended.

"***Subscription Agreement***" shall mean the agreement by which each Person desiring to become a Holder shall evidence (i) the number of Bonds which such Person wishes to acquire, (ii) such Person's agreement to become a party to, and be bound by the provisions of, this Agreement and (iii) certain representations regarding the Person's finances and investment intent.

**EXHIBIT A**

FORM OF BOND