# EDGAR Filing Document

**Accession Number:** 0001955986
**File Stem:** 0001955986-23-000001
**Filing Date:** 2023-2
**Character Count:** 234921
**Document Hash:** 88721f8da605f2adc6fb7191e977f201
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001955986-23-000001.hdr.sgml**: 20230203

**ACCESSION NUMBER**: 0001955986-23-000001

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 7

**FILED AS OF DATE**: 20230203

**DATE AS OF CHANGE**: 20230203

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Genesis Development Capital, LLC
- **CENTRAL INDEX KEY:** 0001955986
- **IRS NUMBER:** 921036714
- **STATE OF INCORPORATION:** GA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31728
- **FILM NUMBER:** 23585595

**BUSINESS ADDRESS:**
- **STREET 1:** 1891 SPRING AVE NW
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30318
- **BUSINESS PHONE:** 6787548439

**MAIL ADDRESS:**
- **STREET 1:** 1891 SPRING AVE NW
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30318

### Attached PDF Documents

**Attachment 1:** `gdpofferingmemo2.pdf`

# **UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
Washington, D.C. 20549 FORM C**

# **UNDER THE SECURITIES ACT OF 1933**

X Form C: Offering Statement

Form C-U: Progress Update

Form C/A: Amendment to Offering Statement

Check box if Amendment is material and investors must reconfirm within five business days.

Form C-AR: Annual Report

Form C-AR/A: Amendment to Annual Report

Form C-TR: Termination of Reporting

**Name of issuer:** Genesis Development Capital LLC

# **Legal status of issuer Form**

Limited Liability Company

# **Jurisdiction of Incorporation/Organization**

Georgia

# ***Date of organization***

November 11$^{th}$, 2022

# **Physical address of issuer**

1891 Spring Ave NW Atlanta Ga 30318

# **Website of issuer**

www.thegdpartners.com

# **Name of intermediary through which the offering will be conducted**

VESTRR

# **CIK number of intermediary**

0001850113

# **SEC file number of intermediary**

007-00341

1

**CRD number, if applicable, of intermediary**
319017

**Amount of compensation to be paid to the intermediary, whether as a dollar amount or a percentage of the offering amount, or a good faith estimate if the exact amount is not available at the time of the filing, for conducting the offering, including the amount of referral and any other fees associated with the offering:**

The issuer shall pay to the Intermediary at the conclusion of the offering a fee of five percent (5%) of the amount raised in the offering.

**Any other direct or indirect interest in the issuer held by the intermediary, or any arrangement for the intermediary to acquire such an interest:**

None.

**Name of qualified third party “Escrow Agent” which the offering will utilize:**

**Type of security offered**

Common LLC/Membership Interests

**Target number of securities to be offered**

333.33

**Price (or method for determining price)**

$1,500

**Target offering amount**

$500,000

**Oversubscriptions accepted:**

☐ XYes

☐ No

**If yes, disclose how oversubscriptions will be allocated:**

☐ Pro-rata basis

XFirst-come, first-served basis

☐ Other:

**Maximum offering amount (if different from target offering amount)**

Same as Target offering amount

**Deadline to reach the target offering amount**

April, 17th, 2023

**NOTE: If the sum of the investment commitments does not equal or exceed the target offering amount at the offering deadline, no securities will be sold in the offering, investment commitments will be cancelled and committed funds will be returned.**

2

# **Current number of employees**

1

|  | Most recent fiscal year-end | Prior fiscal year-end |
| --- | --- | --- |
| Total Assets | $0.00 | $0.00 |
| Cash & Cash Equivalents | $0.00 | $0.00 |
| Accounts Receivable | $0.00 | $0.00 |
| Short-term Debt | $0.00 | $0.00 |
| Long-term Debt | $0.00 | $0.00 |
| Revenues/Sales | $0.00 | $0.00 |
| Cost of Goods Sold | $0.00 | $0.00 |
| Taxes Paid | $0.00 | $0.00 |
| Net Income | $0.00 | $0.00 |

# ***The jurisdictions in which the issuer intends to offer the securities:***

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District Of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virgin Islands, U.S., Virginia, Washington, West Virginia, Wisconsin, Wyoming, American Samoa, and Northern Mariana Islands

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November 11, 2022

# **FORM C**

Up to $500,000.00

Genesis Development Capital, LLC

![img-0.jpeg](img-0.jpeg)

# **Common LLC/Membership Interests**

A crowdfunding investment involves risk. You should not invest any funds in this Offering unless you can afford to lose your entire investment.

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the Offering, including the merits and risks involved. These Securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any Securities offered or the terms of the Offering, nor does it pass upon the accuracy or completeness of any Offering document or literature.

These Securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these Securities are exempt from registration.

An issuer filing this Form for an offering in reliance on Section 4(a)(6) of the Securities Act and pursuant to Regulation Crowdfunding (Sec. 227.100 et seq.) must disclose in the offering statement that it will file a report with the Commission annually and post the report on its website, not later than 120 days after the end of each fiscal year covered by the report. The issuer must also disclose how an issuer may terminate its reporting obligations in the future in accordance with Rule 2020(b) of Regulation Crowdfunding (Sec. 277.202(b))

THIS OFFERING HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION (the “SEC”), UNDER THE 1933 ACT, OR UNDER THE SECURITIES LAWS OF ANY STATE, AND IS BEING OFFERED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION, PARTICULARLY REGULATION CROWDFUNDING, OR “REG CF”. THE INTERESTS BEING OFFERED FOR SALE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RE-

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SALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

NO INTERESTS MAY BE SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS THE COMPANY AND ITS LEGAL COUNSEL HAVE RECEIVED SATISFACTORY EVIDENCE THAT SUCH TRANSFER DOES NOT INVOLVE A TRANSACTION REQUIRING REGISTRATION OR QUALIFICATION UNDER THE SEC OR STATE SECURITIES LAWS AND IS COMPLIANCE WITH ANY SUCH LAWS.

THIS FORM C OFFERING MEMORANDUM HAS BEEN PREPARED SOLELY FOR THE BENEFIT OF THOSE AUTHORIZED PERSONS WHO HAVE EXPRESSED INTEREST IN THIS OFFERING. IT CONTAINS CONFIDENTIAL INFORMATION AND MAY NOT BE DISCLOSED TO ANYONE OTHER THAN AUTHORIZED PERSONS SUCH AS ACCOUNTANTS, FINANCIAL ADVISORS, OR LEGAL COUNSEL RETAINED FOR THE PURPOSE OF RENDERING PROFESSIONAL ADVICE RELATED TO THE PURCHASE OF THE INTERESTS OFFERED HEREIN.

THIS OFFERING MEMORANDUM DOES NOT CONSTITUTE AN OFFER OR A SOLICITATION TO ANY PERSON OR ENTITY EXCEPT THOSE PERSONS AND/OR ENTITIES WHO SATISFY THE QUALIFICATIONS OF AN INVESTOR PERMITTED TO INVEST PURSUANT TO REGULATION CROWDFUNDING. DELIVERY OF THIS MEMORANDUM TO ANYONE OTHER THAN A DESIGNATED INDIVIDUAL OR INDIVIDUALS RETAINED BY THE DESIGNATED INDIVIDUALS MAY CONSTITUTE A VIOLATION OF FEDERAL AND STATE SECURITIES LAWS.

DURING THE COURSE OF THE OFFERING AND PRIOR TO SALE, EACH PROSPECTIVE PURCHASER AND HIS/HER PURCHASER REPRESENTATIVE(S), IF ANY, ARE INVITED TO ASK QUESTIONS OF AND OBTAIN ADDITIONAL INFORMATION FROM THE ISSUER CONCERNING THE TERMS AND CONDITIONS OF THE OFFERING, THE ISSUER AND ITS AFFILIATES, THE COMPANY AND ANY OTHER RELEVANT MATTERS (INCLUDING, BUT NOT LIMITED TO, ADDITIONAL INFORMATION TO VERIFY THE ACCURACY OF THE INFORMATION SET FORTH HEREIN). SUCH INFORMATION WILL BE PROVIDED TO THE EXTENT THE ISSUER POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE.

THIS OFFERING MEMORANDUM HAS BEEN PREPARED BY THE ISSUER AND PROVIDED SOLELY FOR THE PURPOSE OF EVALUATING THE INVESTMENT OFFERED HEREBY. NOTHING CONTAINED IN THIS OFFERING MEMORANDUM IS OR SHOULD BE RELIED UPON AS A GUARANTEE OR REPRESENTATION OF FUTURE EVENTS.

NEITHER THE INFORMATION CONTAINED IN THIS PPM NOR ANY PRIOR, OR CONTEMPORANEOUS, OR SUBSEQUENT COMMUNICATION TO YOU SHOULD BE CONSTRUED BY YOU AS TAX, LEGAL, OR FINANCIAL ADVICE. YOU SHOULD CONSULT TAX, LEGAL AND FINANCIAL COUNSEL AND ADVISORS OF YOUR CHOOSING TO ASCERTAIN THE RISKS AND MERITS OF AN INVESTMENT IN THE LLC PREFERRED INTERESTS BEFORE INVESTING.

IN MAKING AN INVESTMENT DECISION, YOU MUST RELY ON YOUR OWN EXAMINATION OF THE PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. ANY PREDICTIONS AND/OR PROJECTIONS CONTAINED IN THIS OFFERING MEMORANDUM OR OTHERWISE PROVIDED TO YOU CAN BE INHERENTLY UNRELIABLE. (SEE, 'RISK FACTORS,' HEREIN).

NO STATEMENT CONTAINED HEREIN SHALL BE DEEMED TO MODIFY, SUPPLEMENT, OR CONSTRUE IN ANY WAY THE PROVISIONS OF ANY DOCUMENTS ATTACHED HERETO AS EXHIBITS OR LISTED HEREIN OF ANY OF THE LANGUAGE CONTAINED THEREIN. ANY STATEMENT MADE HEREIN WITH RESPECT TO ANY SUCH DOCUMENT IS QUALIFIED BY REFERENCE TO THE TEXT OF SUCH DOCUMENT.

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5

# **SIGNATURE**

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities Act of 1933 and Regulation Crowdfunding (Sec. 227.100 et seq.), the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form C and has duly caused this Form to be signed on its behalf by the duly authorized undersigned.

\_\_\_\_\_  
Genesis Development Capital, LLC  
By: Maranda Walker  
CEO of Genesis Development Capital, LLC

Pursuant to the requirements of Sections 4(a)(6) and 4A of the Securities act of 1933 and Regulation Crowdfunding (Sec. 227.100 et seq.), this Form C has been signed by the following persons in the capacities and on the dates indicated.

\_\_\_\_\_  
Genesis Development Capital, LLC  
By: Maranda Walker  
CEO of Genesis Development Capital

The date of this Form C is February 2nd, 2022.

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| TABLE OF CONTENTS |  |
| --- | --- |
| SECTION | PAGE |
| THE COMPANY, ELIGIBILITY, DISCLOSURE OF PREVIOUS COMPLIANCE, AND ONGOING REPORTING REQUIREMENTS (Form C #1, 2, 3) | 8 |
| DIRECTORS, OFFICERS AND PRINCIPAL SHAREHOLDERS OF THE COMPANY (Form C #4, 5, 6) | 10 |
| BUSINESS AND ANTICIPATED BUSINESS PLAN (Form C #7) | 12 |
| THE OFFERING (Form C #9, 10) | 14 |
| USE OF PROCEEDS (Form C #10) | 17 |
| OWNERSHIP AND CAPITAL STRUCTURE (Form C #13, 14, 15, 16) | 21 |
| RISK FACTORS (Form C #8) | 23 |
| FINANCIAL CONDITION OF THE ISSUER AND OTHER FINANCIAL INFORMATION (Form C #27, 28) | 31 |
| OTHER MATERIAL INFORMATION (Form C #31) | 32 |
| EXHIBITS |  |
| Exhibit A: | Business Plan |
| Exhibit B: | Subscription Agreement |
| Exhibit C: | Operating Agreement |
| Exhibit C: | Unaudited Financial Statements |

7

## **THE COMPANY, ELIGIBILITY, AND DISCLOSURE OF PREVIOUS COMPLIANCE**

Genesis Development Capital, LLC (the "Company") is a Georgia Limited Liability Company, formed on November 11th, 2022.

The Company is located at 3715 Northside Parkway N.W., Atlanta, GA 30327. The Company's website is www.thegdpartners.com.

The information available on or through our website is not a part of this Form C. In making an investment decision with respect to our Securities, you should only consider the information contained in this Form C.

The Company has certified that all of the following statements are TRUE for the Company in connection with this Offering:

(1) Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
(2) Not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended.
(3) Not an investment company registered or required to be registered under the Investment Company Act of 1940.
(4) Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding.
(5) Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
(6) Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

Neither the Company nor any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding.

## **ONGOING REPORTING**

The Company will file a report electronically with the Securities & Exchange Commission annually and post the report in a website portal for our members (each, a "Member") no later than 120 days after the end of the Company's fiscal year.

Once posted, the annual report may be found on the Company's Member website at: www.thegdpartners.com.

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The Company must continue to comply with the ongoing reporting requirements until:

(1) the Company is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act of 1934, as amended;
(2) the Company has filed, since the Company's most recent sale of securities pursuant to Regulation CF, at least one annual report pursuant to Regulation CF and has fewer than 300 holders of record;
(3) the Company has filed, since the Company's most recent sale of securities pursuant to Regulation CF, annual reports for three years pursuant to Regulation CF and has total assets that do not exceed $10,000,000;
(4) the Company or another party repurchases all of the Securities sold in this Offering, including any payment in full of debt securities or any complete redemption of redeemable securities; or
(5) the Company liquidates or dissolves its business in accordance with state law.

# **Bad Actor Disclosure**

The Company is not subject to any Bad Actor Disqualifications under any relevant U.S. securities laws.

The following summary is qualified in its entirety by more detailed information that may appear elsewhere in this Form C and the Exhibits hereto. Each prospective Investor is urged to read this Form C and the Exhibits hereto in their entirety.

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# **DIRECTORS, OFFICERS AND PRINCIPAL SHAREHOLDERS OF THE COMPANY**

# **Directors or Managers**

The directors or managers of the managing entity are listed below along with all positions and offices held at the managing entity and their principal occupation and employment responsibilities for the past three (3) years and their educational background and qualifications.

# *Maranda Walker, Founder and CEO*

Maranda Walker is an expert in the Underserved Retail Markets with over 20 years of experience spanning Urban and Underserved Markets throughout the Eastern Seaboard. Maranda has worked with National Tenants to include Target, Walmart, Kroger Co., Gap, Walgreens, Starbucks and AT&T. She is also a partner in Joe's Gourmet Fish Fry where she and her partner grew the business from a kitchen recipe to over 5,000 stores and over $1 M annual sales.

Underserved Retail Real Estate Development, Genesis Development Management, LLC, Managing Member, May 1st 2021 to Current.

# *Education*

University of Georgia
MBA
2000-2001

Clark Atlanta University
1994-1998
BA Business Administration

# **Indemnification**

Indemnification is authorized by the Company to directors, officers or controlling persons acting in their professional capacity pursuant to Georgia law. Indemnification includes expenses such as attorney's fees and, in certain circumstances, judgments, fines and settlement amounts actually paid or incurred in connection with actual or threatened actions, suits or proceedings involving such person, except in certain circumstances where a person is adjudged to be guilty of gross negligence or willful misconduct, unless a court of competent jurisdiction determines that such indemnification is fair and reasonable under the circumstances.

# **Employees**

The Company currently has 0 employees.

10

## Ownership

The table below lists the name of each direct or indirect owner of 20% or more of the beneficial ownership interests in the Company and the percentage owned as of October 24$^{th}$, 2022:

| Name of Holder | No. and Class of Securities Now Held | % of Voting Power Prior to Offering |
| --- | --- | --- |
| Genesis Development Management, LLC | 444.44 LLC Interests | Voting power is not vested with the LLC Interests. Instead, the Managing Member, Genesis Development Management, LLC, retains sole authority to |
| Maranda Walker Member of Genesis Development Management, LLC | Maranda Walker owns 100% of Genesis Development Management, LLC | 100 |

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# BUSINESS AND ANTICIPATED BUSINESS PLAN

The Company's business plan is described below.

## Description of the Business

GENESIS DEVELOPMENT CAPITAL, LLC is being created to find the best, highest volume, store locations for high credit national retail tenants by becoming an extension of their real estate team. The Company provides value to these retailers by outsourcing a variety of real property matters, including site selection, site development, and property management. This offering is designed to generate sufficient capital to enter into one or more projects. After projects are developed, the Company will attempt to sell the project(s), which is the primary method of generating income for the Company. After liquidation of the project(s), the Managing Member intends to cease operations, and 'wind up' the Company, at which point the Investors' Interests will be considered redeemed in full.

## *Other Property Information*

### Business Plan

Our process:

#### **(1) Identify The Client's Site Needs:**

We ascertain the specific needs, criteria and desires of our clients for a specific development. Based on those criteria, we build models and scenarios that help us determine the most ideal sites for our clients based, in part, on macro and micro economic projections, consumer consumption patterns, income level and socioeconomic dynamics of a desired area.

#### **(2) Identify Ideal Site Locations:**

Our team makes contact with reputable commercial real estate professionals from our relationship network that are familiar with the area. Once we have narrowed down the list of potential sites, our team puts 'boots on the ground' to tour the most appealing site prospects.

#### **(3) Socializing Site Selections:**

Once our team has identified 2-3 sites that are the most ideal fit for our client, we present those sites to the client's internal real estate team for feedback and consensus.

#### **(4) Securing The Site:**

Once we have gained positive feedback and consensus from our client's internal real estate team, we move to contract and deploy our firm's funds into escrow (earnest money deposit)

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we then submit our contract, site selection specification and deal memo to our client firms committee for final approvals and sign off.

# (5) Closing The Deal:

Once final approval and sign-off from our Client firm have been gained and we have an executed acquisition agreement in place between our firm and our client’s firm, we move to close on the site and begin site development.

Our business plan and process ensure the lowest capital risk exposure to our firm before signed acquisition agreement. This ensures that the sites we select have the highest probability of gaining committee approval within our client firms. Finally, our business plan and process ensure that we are not risking our firm’s equity investor capital or credit facilities by closing on deals that will be undeliverable to our client firms. This ensures that we will not sustain unnecessary carry costs associated with having to hold sites longer than our projected estimates and protects our firm market credibility and our financial partner(s) capital.

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# THE OFFERING

| WHO MAY INVEST | The Interests will be available to individuals and entities who meet the qualification thresholds allowing them to invest in Regulation Crowdfunding raises. |
| --- | --- |
| ISSUER | GENESIS DEVELOPMENT CAPITAL, LLC, (the “Company”) is a Georgia limited liability company formed on November 11 th , 2022, and will be funded, by funds generated through the sale of the Interests to Investors, assuming other preconditions as contained in this Offering Memorandum and in the Operating Agreement are met. |
| BUSINESS OF THE ISSUER | The Company was formed to find the best, highest volume, store locations for high credit national retail tenants by becoming an extension of their real estate team. We identify opportunities in their best interest, by absorbing and executing their criteria of site selection and demographic needs. We deliver a fair at market rent by building a store on-time and exactly to specification. |
| INTEREST OFFERED | The Company is offering membership interests (“Interests”) to Investors, who must meet certain qualifications as described herein. The membership interests may also be referred to simply as “Interests.” Each Interest represents a percentage interest in the Company determined by reference to the Capital Account (as defined below) of each Member in relation to the aggregate Capital Accounts of all Members. For a more detailed description of the Interests, see “OWNERSHIP AND CAPITAL STRUCTURE” herein. |
| MINIMUM INVESTMENT | The minimum investment for an Interest is $1,500. However, the Managing Member may decrease this minimum investment amount for any investor, for any reason, at its sole discretion. |
| MAXIMUM OFFERING; MINIMUM OFFERING | The Company is attempting to raise a maximum of $500,000.00 (“Maximum Offering”) through this offering. The Company will not start operations until it has raised at least $150,000.00 (“Minimum Offering”) in this offering. Until the Minimum Offering is met, Investors funds will be held with the Escrow Agent. If the Company does not meet the minimum threshold by January 31 st , 2023 (“Minimum Threshold Deadline”), the Company will cancel the offering and release all Investors from their commitments and return the funds to the Investors. |
| NUMBER OF INTERESTS BEING OFFERED FOR SALE | The Company is offering 333.33 Interests for sale in this offering. |
| USE OF PROCEEDS OF OFFERING | The Company will utilize the proceeds of this offering to finance the acquisition and development of real property. |
| MANAGEMENT OF THE COMPANY | The Company will be managed by GENESIS CAPITAL DEVELOPMENT, LLC, an Ohio limited liability Company, who will be referred to as the “Managing Member.” Except as otherwise stated herein, |

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|  | the Managing Member will have complete control over the business of the Company, and the Property. More information regarding control of the Company is contained in the section entitled “Management”. |
| --- | --- |
| MANAGEMENT FEES | The Managing Member and those designated by the Managing Member are entitled to certain fees and distributions from the Company, as described briefly below, but also herein: Acquisition Fee: The Company pays a three percent (3.0%) acquisition fee to the Managing Member for the Managing Member’s work in acquiring any real property, based on the actual acquisition price of any acquired real property. |
| DISTRIBUTIONS OF CASH FROM OPERATIONS | It is the intention of the Company that, (subject to the Managing Member’s right to hold funds in a Reserve Amount) after the acquisition of the Property by the Company, that distributions, if available, shall be made to the Investors, as follows: The Company will attempt to generally make distributions to the Investors of net cash flow on a monthly basis, beginning 9 to 12 months after closing on the acquisition of the Property, and after the Company receives positive cash flow, if any and if ever, from the Property (the “Distribution Proceeds”), subject to the capital needs of the Company as determined in the sole discretion of the Managing Member. The Company’s policy and procedures governing capital distributions are more fully set forth in the Company’s Operating Agreement, which should be fully reviewed before any Investor makes an Investment in the Company. Net cash flow is more fully defined in the Operating Agreement. Briefly, however, net cash flow is defined as: - Effective Gross Income + Other Income - operating expenses - debt service - replacement of reserve amount. If any funds remain, they will be distributed to the Managing Member and the Investors. Upon the occurrence, if ever, of a distribution, the sums to be distributed shall be distributed as follows: - Seventy Five Percent (75%) of Net Cash Flow shall be paid to the Investors, and Twenty Five Percent (25%) shall be paid to the Managing Member. |
| TRANSFERABILITY | The Interests will not be transferrable, except as detailed in the Operating Agreement. |
| RESERVE AMOUNTS | The Managing Member shall be permitted, in its sole and absolute discretion, to maintain a reserve account of $500,000.00, or any amounts received through this offering above the costs of acquiring the Property, whichever is greater. |
| NO PREVIOUS COMMUNICATIONS | The Company has not engaged in any previous written or broadcasted communications for “testing the waters.” |
| DELIVERY OF INTERESTS | Investors will receive their Interests in the form of an electronic certificate via the VESTRR platform. |

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| CANCELLATION OF INVESTMENT | Investors may cancel an investment commitment until 48 hours prior to the deadline identified in these offering materials. The intermediary will notify investors when the target offering amount has been met. If the issuer reaches the target offering amount prior to the deadline identified in these offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment. If an investor does not cancel an investment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive Interests in exchange for his or her investment. If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returns. |
| --- | --- |
| RESTRICTIONS ON TRANSFER OF INTERESTS | The Interests being offered may not be transferred by any purchase of such Interests during the one year period beginning when the Interests were issued, unless such Interests are transferred: 1. To the Company; 2. To an accredited investor as that term is defined by SEC rules; 3. As part of an offering registered with the SEC; 4. To a member of the family of the Investor or the equivalent, to a trust controlled by the Investor, to a trust created for the benefit of a family member of the Investor or the equivalent, or in connection with the death or divorce of the Investor or other similar circumstance. Generally, the Managing Member retains sole authority, in its absolute discretion, to authorize any transfers. |
| NO OTHER EXEMPT OFFERINGS; NO TRANSACTIONS WITH RELATED PERSONS | The Company has not previously and is not currently engaging in any other exempt offerings, although it is possible the Company may do so in the future. Similarly, no company controlled or under common control of the Company has engaged in a transaction or is currently engaging in a transaction with the Company. |
| NO OPERATING HISTORY | The Company has no operating history. Currently, the Company does not have a 'financial condition' to speak of in terms of assets, debts liquidity, and capital resources. |
| RIGHT OF REDEMPTION | The Company will redeem the Interests purchased by Investors upon the conclusion of the project(s) the Company enters into utilizing the funds generated from this offering. |

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# USE OF PROCEEDS

The proceeds raised through this offering will be used to acquire and develop real property as described in the 'Business and Anticipated Business Plan.' The usage of the proceeds as provided in this section are estimates, and actual projects may vary significantly from these estimates. These estimates are derived from prior projects, of the type in which the Company will engage, which the principals of the Managing Member have completed previously.

## Use of Proceeds Related to this Offering

In order to make this offering, the Company has had to and will incur certain expenses. The Company will pay a fee to the VESTRR platform in the amount of six percent (6%) of all sums raised through this offering. In addition, the Company has had to incur and will continue legal expenses to ensure compliance with SEC requirements. While not finalized, the Company estimates that these costs will be approximately $10,000.00.

## Use of Proceeds Related to Business Operations

Some factors that may impact this estimate are availability of financing, and variable costs of acquisition and development. For instance, some projects may require a higher loan-to-value amount in order to obtain financing, which may result in a proportional increase of the usage of the proceeds.

The following table lists the estimated use of proceeds of the offering if the Minimum Offering and Maximum Offering are raised.

| Estimated Usages of Proceeds |  |  |
| --- | --- | --- |
| Use of Proceeds | Amount if Minimum Raised | Amount if Maximum Raised |
| Land Acquisition | $31,342.50 | $104,475.00 |
| Site Work | $34,957.50 | $116,525.00 |
| Building Costs | $55,335.00 | $184,450.00 |
| Brokerage Fees, Closing Costs, and other Fees | $5,040.00 | $16,800.00 |
| TI Allowances | $1,815.00 | $6,050.00 |

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| Other Building Costs | $2,745.00 | $9,150.00 |
| --- | --- | --- |
| Soft Costs | $18,757.50 | $62,525.00 |

The Company is also providing examples based on previous projects that the individuals listed in the Section entitled 'Directors, Officers and Principal Shareholders of the Company' have engaged in, but not the Company, that are of the type that the Company intends to engage in. These projects are shown as examples only, to demonstrate the range of possibilities of usage of proceeds on any given project, and in all likelihood will not correlate precisely or approximately with any projects in which the Company engages.

| Previous Example #1 |  |  |
| --- | --- | --- |
| Use of Proceeds | Amount if Minimum Raised | Amount if Maximum Raised |
| Land Acquisition | $22,350.00 | $74,500.00 |
| Site Work | $48,660.00 | $162,200.00 |
| Building Costs | $52,590.00 | $175,300.00 |
| Brokerage Fees, Closing Costs, and other Fees | $2,580.00 | $8,600.00 |
| TI Allowances | $ - | $ - |
| Other Building Costs | $2,055.00 | $6,850.00 |
| Soft Costs | 21,765.00 | $72,550.00 |

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| Previous Example #2 |  |  |
| --- | --- | --- |
| Use of Proceeds | Amount if Minimum Raised | Amount if Maximum Raised |
| Land Acquisition | $40,335.00 | $134,450.00 |
| Site Work | $21,255.00 | $70,850.00 |
| Building Costs | $58,080.00 | $193,600.00 |
| Brokerage Fees, Closing Costs, and Other Fees | $7,500.00 | $25,000.00 |
| TI Allowances | $3,630.00 | $12,100.00 |
| Other Building Costs | $3,435.00 | $11,450.00 |
| Soft Costs | $21,765.00 | $72,550.00 |

The Use of Proceeds charts are not inclusive of fees paid for use of the Form C generation system, payments to financial and legal service providers, and escrow related fees, all of which were incurred in preparation of the campaign and are due in advance of the closing of the campaign.

The above charts utilizes certain terms, briefly defined as follows:

**Land Acquisition** - The cost of acquiring real property.

**Site Work** - The cost of preparing any acquired property for building, including but not limited to demolition work, excavation, and remediation.

**Building Costs** - The cost of building one or more structures on the acquired real property as a retail space for the Company’s national retail clients, including materials and labor.

**Brokerage Fees, Closing Costs, and Other Fees** - These are fees and costs which the Company will incur collaterally to acquiring the real property, performing site work, and building, and may include local, state and national taxes related to property transfer, costs of recording deeds and similar documents, costs of acquiring financing, legal files, title fees, and other similar fees.

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**TI Allowances** - Tenant Improvement Allowances are amounts given by the Company to the tenant the building is built for, to allow the tenant to build out the space to its specifications.

**Other Building Costs** - These are the costs of building which may not be included in the terms above.

**Soft Costs** - These are costs related to but not directly involved in building, for instance, surveying, drawing up plans, acquiring permits, and holding costs incurred while the development is ongoing.

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# OWNERSHIP AND CAPITAL STRUCTURE

## Capitalization

The Company has issued the following outstanding Securities:

| Type of security being offered | LLC/Membership Interests |
| --- | --- |
| Amount outstanding for this offering | 333.33 |
| Voting Rights | None. |
| Anti-Dilution Rights | Limited. |
| How may the Interests be diluted? | If the Company seeks additional capital investment after the close of this offering, the Interests of any Investors may be diluted. If the Company seeks to raise additional capital after the close of this offering in a manner that would cause the dilution of the Investors' Interests, the Investors will be given an opportunity to contribute capital to the Company in an amount that will prevent dilution of their interest. Any Investors failing to do so may see their Interests diluted. |
| Percentage ownership of the Company by the holders of such Interests | 75% in distributions of the Company. |
| Capitalization | Prior to the offering, the Company does not have positive capital. |
| Control of the Company | The Operating Agreement of the Company vests sole authority to operate the Company and transact business on behalf of the Company in Genesis Development Management, LLC, the Managing Member of the Company. This control includes the ability to 'wind up' the Company and cease operations. |

The Company has the following debt outstanding: Not applicable.

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## Managing Entity

The Company is operated by the following managing entity:

| Name | Description | Years in business | Management fee |
| --- | --- | --- | --- |
| Genesis Development Management, LLC | Managing Member with owners that are experts in this area of business | 0 | The Managing Member will take an acquisition fee, more fully described herein. |

## Valuation

Based on the Offering price of the Securities, the nominal pre-Offering value ascribed to the Company is $666,666.66.

Before making an investment decision, you should carefully consider this valuation and the factors used to reach such valuation. Such valuation may not be accurate, and you are encouraged to determine your own independent value of the Company prior to investing.

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# RISK FACTORS

## *General Risk Factors*

An investment in the Company involves significant risks not associated with other investment vehicles and is suitable only for persons of adequate financial means who have no need for liquidity in this investment. There can be no assurances or guarantees that: (i) the Company's investment objectives will prove successful; or (ii) Investors will not lose all or a portion of their investment in the Company. It is impossible to accurately predict the results of an investment in the Company due to the recent formation of the Company, as well as general uncertainties regarding real estate markets and financing markets, and general economic conditions. This Offering Memorandum and other materials provided by the Company, contain forward-looking predictions and projections, and speculative statements and projections which involve risks and uncertainties. These statements are not guarantees or assurances of any future events. Actual events could differ substantially from statements and projections contained herein. Although the Company and the Managing Member believes that these statements and projections are reasonable under the circumstances, projections are necessarily speculative. Projections are inherently unreliable and unanticipated events and circumstances are likely to occur. Actual results realized during any future period are likely to vary from projections, and the variations may be material and adverse. Neither the Company, the Managing Member, nor any other person make any representations or warranty as to the accuracy or completeness of this information. The information presented is as of the date hereof and is subject to change or amendment without notice. Prospective investors are cautioned not to place any reliance on the projections. The projections should be read in conjunction with the information contained in this Memorandum, including the section entitled RISK FACTORS.

You should consider carefully the following risks, and should consult with your own legal, tax and financial advisors with respect thereto. You should read this entire Memorandum and any additional materials, including but not limited to the Operating Agreement and the Subscription Agreement, before investing in the Company.

The Interests may not be a suitable investment for you. Prospective Investors should consult with their own tax, legal, and financial advisors prior to purchasing any Interests. The characteristics of the Interests, including lack of liquidity, may not satisfy your investment objectives. The Interests may not be a suitable investment for you based upon your ability to withstand a financial loss, or other aspects of your financial situation including but not limited to your income, net worth, present, near term, and long-term financial needs, investment risk profile, return objectives, and investment experience, as well as other factors.

An Investor should regard an investment in the Company as a supplement to an overall investment program and should only invest if it is willing to undertake the risks involved. In addition, Investors who are subject to income tax should be aware that an investment in the Company is likely (if the Company is successful) to create taxable income or tax liabilities in excess of cash distributions to pay such liabilities.

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An Investor must be aware that there is no way that the Company can be aware of all risks involved in any investment, or in this particular investment. Further, the following list is not intended to be a complete, exhaustive list of every single risk involved in any real estate investment, or in this particular investment. The Investor should rely on his or her own knowledge, experience and resources, including but not limited to trusted advisors such as attorneys, financial advisors, and accountants.

An Investor's subscription will be irrevocable. The execution and delivery of the Subscription Agreement by a subscriber constitutes a binding offer. Once a prospective investor subscribes, the prospective investor will not be able to revoke such subscription

**Federal Income Tax Consequences.** There are no known tax benefits associated with this investment. **PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS REGARDING THE FEDERAL, STATE AND LOCAL TAX CONSEQUENCES OF AN INVESTMENT IN THE COMPANY WITH SPECIFIC REFERENCE TO THEIR INDIVIDUAL TAX SITUATIONS AND POTENTIAL CHANGES IN APPLICABLE LAWS.**

**Classification for Federal Income Tax Purposes.** The choice of tax classification may impact the proceeds, revenues, and income of the Company, and therefore any distributions. It is possible that another classification other than that chosen by the Company may yield additional income and therefore distributions, if said classification would have been chosen. Accordingly, distributions may be less than they otherwise would have been under a different income tax classification.

**State and Local Tax Consequences.** An Investor's tax obligation to any states and/or municipalities can only be determined by the Investor, and its advisors, and cannot be determined by the Company or any representatives of the Company. Prior to Investing, a prospective Investor should consult with tax professionals to determine any possible tax liability to any states and/or municipalities.

**Tax Audit and Validity of Tax Deductions.** The information returns filed by the Company may be audited by the Internal Revenue Service ('Service'). Any audit by the Service may result in adjustments to the various items reported by the Company. In such event, each Investor will be required to file amended Federal income tax returns for his taxable years with respect to which the adjusted Company items were reported and pay additional tax (together with interest and any applicable penalties) attributable to the adjustments. Further, an audit of the Company information returns may result in an audit of each Investor's income tax returns which could result in adjustments of non-Company as well as Company items.

The Company will claim all deductions for Federal income tax purposes which it reasonably believes it is entitled to claim. There can be no assurance that the amount or timing of such deductions will not be successfully challenged by the Service.

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**Tax Liabilities in Later Years.** After the Company has operated for a period of time, it is possible that the Investor's share of Company taxable income and tax liability with respect thereto may exceed cash distributions from the Company, in which case the Investor will have to pay such excess tax liability with funds derived from sources other than the Company. These possibilities may occur if all or a portion of the Company's taxable income is used to make nondeductible payments (for example, to make capital expenditures or to repay the principal amount of Company borrowings) or if a portion of the Company's taxable income is not received in cash.

The amount of gain realized by an Investor on the sale or other disposition (including a gift) of the Interests or the share of Company gains on a sale (including a sale pursuant to foreclosure proceedings) or other disposition of the Property may exceed the cash, if any, available to the Investor from such sale or other disposition. Moreover, it is possible that the tax liability with respect to such gain may exceed the cash available to him, in which case the excess tax liability will have to be paid by the Investor from sources other than the Company.

**Changes in Tax Laws.** There is no assurance that tax benefits provided by existing law will continue. Tax benefits of an investment in the Company could be lost, and substantial tax liabilities could be incurred, because of changes in the tax laws. There also is no assurance that changes in the interpretation of Federal income tax laws by administrative or judicial action will not adversely affect the tax consequences of an investment in the Company. Any legislative, administrative or judicial changes may affect not only the tax aspects of an investment prospectively, but also may be given retroactive effect.

### *Risks Related to This Investment*

**Capital Requirements.** In order to acquire real property, the Company needs to raise capital, whether through lending or through investment. There is no guarantee that the Company will obtain the financing required to acquire the anticipated real estate, or, if an acquisition occurs, to meet ongoing financial obligations without seeking additional capital. There can be no assurance that additional capital will be available to the Company if and when required, or that if said capital is available, that it would be available at terms satisfactory to the Company. A failure to obtain capital when required may result in financial difficulties for the Company.

**Financing Risks.** The Company intends to borrow funds from a financial institution in order to finance the acquisition of real estate, and may also choose to borrow money from time to time from other lending entities, in amounts and upon terms that the Managing Member in its sole discretion determines. In addition, the Company may refinance the real property, or any part thereof, if available and determined to be advisable by the Managing Member in its sole discretion. The interest rates at which the Company is able to borrow funds will affect the Company's operating results, and the use of borrowing and/or leverage could result in a decrease in returns depending, in part, upon interest rates. The interest rates available to the Company at any given time are subject to a variety of factors, including but not limited to the Company's creditworthiness and past credit history, the prevailing interest rates available in the market at the time, financial and economic conditions existing in the region, country, or world at the time, and

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the amount sought to be borrowed. The Company may borrow funds anticipating an opportunity to refinance in the future at lower interest rates, but may be unable to do so, which could result in losses. The use of borrowing and/or leverage has the potential to increase losses the Company could incur. The Company may be unable to meet its obligations to a lender. If this occurs, the Company may be liable for increased payments and penalties to the lender. The lender may also foreclose, execute, or otherwise impair, sell or remove any collateral securing the funds. This occurrence could impair or make impossible the ability of the Company to operate or manage the Property. This could also make it difficult for the Company to obtain financing on favorable or any terms in the future. The ability of the Company to raise capital may be dependent on other terms of financing. Any financing obtained as acquisition or afterwards will likely require an appraisal of any real property. If any such appraisal does not return a valuation sufficient to justify lending, the Company may not be able to obtain necessary funds to operate, or otherwise refinance under more favorable terms, which could result in a loss.

**Risks of Due Diligence.** The Company anticipates entering into agreements to acquire real property. In the process of acquiring any real property, the Company and Managing Member may fail to discover significant matters which, if known, would have caused the Company and Managing Member to not proceed with the acquisition of said real property, or may discover matters that could result in significant future risk to the Company, and decide to proceed in acquiring said real property anyways. The Company and Managing Member may not investigate the Property and conduct due diligence in the manner in which you or anyone else would choose to do, and as a result, the Company and Managing Member could fail to learn about actual or potential defects or other issues with any real property which they otherwise would have learned of if certain methods of due diligence commonly known were utilized.

**Reliance on Key Personnel.** The success of any venture is dependent upon the availability of skilled personnel and the appropriate management philosophy and personalities for each aspect of the business of the Company. Real estate acquisition and development are particularly important areas which will require appropriate staff. In the specific case of this Company, the Officers previously identified are, in the opinion of the Company, crucial to the success of the Company. While the Managing Member and the Company believe that it has adequate and proven resources to assure adequate supervision and performance of construction and property management tasks, there can be no assurance that all needs can be met this way. Lack of qualified personnel could damage the Company's ability to realize its goals under the business plan.

**Prior Investments No Indication of Future Performance.** While the Managing Member and the principals have a track record of successful investments, their past investment performance cannot be relied upon as an indication of the Company's future performance or success. The examples which may be listed in other materials are solely included to illustrate representative transactions, the experience of the Managing Member and its affiliates and the type of transactions the Managing Member intends to pursue on behalf of the Company. Future investments by this Company into any real property will be unique and separate from any other investment by the any of the principals, and it is possible that its unique characteristics could result in challenges and risks never before encountered by the principals or third parties utilized by the Company. Said challenges and risks could result in losses to the Company.

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**Nature and Priority of the Interests.** Transferability of the Interests is restricted under the Securities Act and by provision of applicable state securities laws. The Interests may not be sold or transferred by an Investor in the absence of an effective registration statement under the Securities Act and applicable state securities laws or an opinion of counsel acceptable to the Managing Member, the Company and their counsel that no registration is required. The Company does not intend to file a registration statement under the Securities Act to provide for a public resale of the Interests. There is currently no trading market for the Interests and it is not anticipate that a trading market will ever develop. Further, the Managing Member of the Company may, in its sole discretion, disallow any trades or transfer, regardless if said transfer would be violation of any relevant securities laws. Consequently, the Interests are suitable only for long-term investment by individuals or entities with no need for liquidity and who can absorb the loss of their entire investment in the Interests. Further, there is no collateral security, insurance or guarantee of the Company's payments on the Interests. The Interests are not secured by assets of any kind, including any assets owned by the Company. The Interests are not deposits in a bank, certificates of deposit or similar obligations of, and are not guaranteed or insured by, any depository institution, the Federal Deposit Insurance Corporation, the Securities Investor Protection Corporation, or any other governmental or private fund or entity. Therefore, if you invest in the Interests, you will have to rely on the Company's cash flow from operations and other sources of funds for distributions. In addition, the Interests lack priority in distribution of profits because mortgages and other debt may rank senior to any payments to owners of the Interests.

**Delay of Investment.** There will be a delay between the time Interests are sold and the time purchasers of Interests are admitted to the Company and are entitled to the investment yield, if any, being realized by the Company. During the intervening period, proceeds from the sale of Interests will be held in an escrow account, as described herein. The return to be realized in the escrow account, if any, will likely not be as high as other investments which you may have access to. This may result in losses to Investors relative to other investments they could have engaged in.

**Limited Liability for the Company and Managing Member.** The Company is obligated to indemnify the Managing Member and its affiliates, agents, directors, officers and owners against certain liabilities against claims from Investors and other parties. Generally speaking, Investors' ability to seek damages against the Company or the Managing Member is limited. A purchase of the Interests could result in a positive cash flow which would be available for distribution. However, it is possible that the Managing Member will determine to fund additional reserves from the cash flow generated by the Company and there may not be any cash available for distribution from operations. Investors will not be able to direct the operations of the Company nor its cash flows if any. Actions may be taken by the Company, the Managing Member or other affiliated parties, which are adverse to an Investor's interest, and the Investor may have little or no practical result, resulting in losses for the Investor.

**Dilution of ownership interest in the Company is possible.** If the Company conducts subsequent offerings or issuances of securities, Investors in this offering who do not participate

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in those other securities issuances will experience dilution in their percentage ownership of the Company's outstanding securities. Furthermore, Investors may experience a dilution in the value of their interests depending on the terms and pricing of any future Securities issuances (including the Securities being sold in this Offering) and the value of the Company's assets at the time of issuance.

**Investors will not have any rights to vote on issues affecting the Company, nor manage the Company.** The Managing Member has full responsibility for managing our Company. The Investors will not be entitled to participate in the management or operation of the Company or in the conduct of its business. The Investors may not vote their securities in the election of the Company's Managing Member or for any other reason.

### *Risks Related to Real Estate*

**Our performance and the value of our Interests are subject to risks associated with the real estate industry.** If any assets do not generate income sufficient to pay our expenses and maintain any assets acquired by the Company, we may not be able to make expected distributions to our Investors. Several factors may adversely affect the economic performance and value of our Investments. These factors include but are not limited to changes in the national, regional and local economic climate, local conditions such as an oversupply of multi-family properties or a reduction in demand for such properties, the attractiveness of our Investments to tenants, competition from other available real estate properties, changes in market rental rates and the need to periodically repair, renovate and re-rent space. In addition, the expenses of owning and operating real property are not necessarily reduced when circumstances such as market factors and competition cause a reduction in income from real property. If any real property is mortgaged and the Company is unable to meet the mortgage payments, a lender could foreclose on the mortgage and take said real property. In addition, interest rate levels, the availability of financing, changes in laws and governmental regulations (including those governing usage, zoning and taxes) and the possibility of bankruptcies of tenants may adversely affect our financial condition and results of operations.

**Operating Risks.** The Company's financial performance is based, in part, upon controlling and minimizing operating expenses. However, certain expenses, such as taxes and insurance, cannot be controlled. A material increase in costs could have a material adverse effect on operating cash flow. If costs exceed revenues, additional funds would be required to satisfy such operating deficits. No assurances can be given that such funds will be available on satisfactory terms, if at all. Neither the Company nor the Managing Member can assure that assumptions or predictions as to the future levels of income or future operating costs will be accurate, since many of these predictions are premised upon matters beyond the control of the Company.

**Because real estate investments are illiquid, we may not be able to sell any real property when appropriate or necessary.** Real estate investments generally cannot be sold quickly. We may not be able to vary our portfolio promptly in response to economic or other conditions to meet our financing needs. This inability to respond promptly to changes in the performance of our investments could adversely affect our financial condition, results of

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operations and ability to make distributions to members. The Company may not be able to sell its assets, and if assets are sold, members of the Company may not realize appreciation on their investment. There can be no assurance of when the Company's assets will, in fact, be sold or the terms of any such sale. A number of years ago, the real estate industry experienced a significant downturn, which resulted in significantly reduced demand and higher inventories of real estate properties. Market conditions such as these may adversely affect the ability of the Company to sell its assets within the desired timeframe or on desirable terms. The price that can be obtained on the sale of a Company asset will depend on many factors that are presently unknown, including the operating history, tax treatment of the investment, demographic trends in the area and available financing. There is a risk that the Company may not realize any significant appreciation on its investment in any Company asset. Accordingly, an investor's ability to recover all or any portion of its investment under such circumstances will depend on the amount of funds so realized and claims to be satisfied therefrom.

**Because our investments will be subject to local, state, and federal laws, we may have additional expenses.** There are laws which currently exist or may exist which could negatively affect the operations of the Company and any real property acquired.

**We will operate in a highly competitive environment.** The real estate industry is highly competitive. We will compete with major local, regional and national real estate companies and real estate investment funds, many of which may have greater financial, marketing and management resources than we do. In addition, other companies may enter the real estate investment and development markets. Competition in the type of business that we will operate is based on many factors. Increased competition could result in fewer development and investment opportunities, which could adversely impact our growth and profitability. We cannot predict the extent to which competition from new companies or existing competitors raising capital could mitigate the investment and management opportunities and favorable market conditions that we believe currently exist.

**Environmental problems are possible and may be costly.** Federal, state and local laws and regulations relating to the protection of the environment may require a current or previous owner or operator of real estate to investigate and clean up hazardous or toxic substances, petroleum product releases, lead based paint, or mold at any real property. The owner or operator may have to pay a governmental entity or third parties for real property damage and for investigation and clean-up costs incurred by such parties in connection with the contamination. Such laws typically impose clean-up responsibility and liability without regard to whether the owner or operator knew of or caused the presence of the contaminants. Even if more than one person may have been responsible for the contamination, each person covered by the environmental laws may be held responsible for all of the clean-up costs incurred. In addition, third parties may sue the owner or operator of a site for damages and costs resulting from environmental contamination emanating from that site. Environmental laws also govern the presence, maintenance and removal of asbestos. Such laws require that owners or operators of buildings containing asbestos properly manage and maintain the asbestos that they notify and train those who may come into contact with asbestos and that they undertake special precautions, including removal or other abatement, if asbestos would be disturbed during the renovation or demolition of a building. Such laws may impose fines and penalties on building owners or

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operators who fail to comply with these requirements and may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos fibers. In addition such laws could operate to limit or prevent entirely the development of any real property, in which case the Company would suffer losses.

**Some potential losses may not be covered by insurance.** We plan to carry customary and reasonable insurance on any real property acquired. We expect that the policy specifications and insured limits of these policies will be adequate and appropriate. There are, however, certain types of losses, such as sinkhole, terrorism, earthquake, lease and other contract claims, and other claims that generally are not insured. Should an uninsured loss or a loss in excess of insured limits occur, we could lose all or a portion of the capital we have invested in any real property, as well as the anticipated future revenue from the Property. In such an event, we might nevertheless remain obligated for any mortgage debt or other financial obligation related to the Property. This could result in all or part of the investments in the Company being lost.

**Any debt financing we obtain to finance or refinance any real property presents risks to the Company.** The Company may employ leverage in connection with its operations and investments. The use of leverage involves a high degree of financial risk and may increase the exposure of the Company or its investments to factors such as rising interest rates, downturns in the economy or deterioration in the condition of subject real property. Principal and interest payments on any indebtedness of the Company would have to be made when they become due and payable regardless of whether sufficient cash is available.

**No Assurance of Investment Return.** The Company's investment portfolio will consist of the Property, and operating results in a specified period will be difficult to predict. Additionally, fluctuations in the real estate market make the potential sales prices and rental rates of any certain multifamily real estate Property difficult to predict. Thus, there is no assurance that the Company will be able to generate returns for its investors.

**Clear Title to the Property.** The Company intends to acquire the Property with generally clear title, excluding non-delinquent property taxes, easements of record, and matters which a survey of the Property would disclose, as well as any mortgages intended to finance the Company's acquisition of the Property. There is no guarantee, however, that if the Company purchases any multi-family properties that the Company's title will actually be clear in the manner described above. Although it is likely but not certain that any lender would require a title insurance policy to be issued prior to the lending of any funds to purchase multi-family properties, it is not certain that a lender would require such a policy. Even if a title search occurs, and title insurance obtained by any lender, it is still possible that a mistake could be made which results in an unknown title defect after the Property is purchased, which could prevent the Company from refinancing, borrowing, or disposing of the Property in a manner and at a time it would otherwise choose, resulting in losses for the Company. In addition, the Company does not intend at present to purchase title insurance policies for its benefit, although the Managing Member may do so at its sole discretion. If title is not clear, it could either make difficult or impossible the ability of the Company to refinance or sell the Property in the future, meaning that a loss of all or part of any investment could result.

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# FINANCIAL INFORMATION

Please see the financial information listed on the cover page of this Form C and attached hereto in addition to the following information. Financial statements are attached hereto as Exhibit A.

## Operations

We are a pre-revenue company, and our primary expenses consist of the development and construction of the Project. Upon completion of construction and delivery of the project, the Company will begin generating revenue from operations. While this Memorandum and other materials may make reference to other projects which have been completed, this Company has not engaged in those or any other projects.

## Liquidity and Capital Resources

The Offering proceeds are essential to the construction and operation of the Project. We plan to use the proceeds as set forth above under the 'Use of Proceeds' section and is an indispensable element of the Company's business objectives. The Offering proceeds will have a beneficial effect on our liquidity and closing of the construction for the Project.

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## OTHER MATERIAL INFORMATION

### Conflicts of Interest

The Managing Member and its owners, officers, directors, employees, agents, contractors, subcontractors, and other related parties (hereinafter, “Affiliates”) may act, and are acting, as the managers, members, and owners, of other limited liability companies or equivalent roles. The Managing Member and its Affiliates may form and manage additional limited liability companies and may have additional responsibilities to those entities. As a result, conflicts of interest between the Company, the Managing Member, and/or the Investors may occur from time to time. The main areas where conflicts may be anticipated to occur are described below, but not limited to these areas.

1. Obligations to Other Entities. Conflicts of interest will occur with respect to the obligations of the Managing Member and its Affiliates, Principals, and Significant Members, and other entities related to the Company and similar obligations to other entities. Moreover, the Company will not have independent management, as it will rely on the Managing Member and its Affiliates for all its management decisions. Other investment projects in which the Managing Member and its Affiliates participate may compete with the Company for the time and resources of the Managing Member and its Affiliates. The Managing Member will, therefore, have conflicts of interest in allocating management time, services and functions among the Company and other existing partnerships, projects and businesses, as well as any partnerships, projects or business entities which may be undertaken or organized in the future. Under the Operating Agreement, the Managing Member is obligated to devote as much time as it, in its sole discretion, deems to be reasonably required for the proper management of the Company and its assets. The Managing Member believes that it has the capacity to discharge its responsibilities to the Company notwithstanding participation in other investment programs and projects.
2. Competition by the Company with Other Entities or Affiliates for Management Services. The principals of the Company will have conflicts of interest in allocating management time, services and functions among other partnerships in which it may be involved, the Company and any future partnerships and other entities which may be organized by it. The principals of the Company believe that it has sufficient staff to be fully capable of discharging its responsibilities to the Company.
3. Allocation of Services and Costs. A conflict may exist in the employment of certain personnel who may have supervisory responsibility for projects managed by the principals of the Company and for other owners. Similar conflicts may exist with respect to the purchasing of services (such as bookkeeping, accounting, tax preparation, legal, computer and other accounting equipment or personnel) to the extent that the Company attempts to achieve economies by combining the resources of various projects.
4. Acquisition of Other Property. The Managing Member and/or its principals may form additional limited liability companies and other entities in the future to engage in activities similar to and with the same investment objectives as those of the Company.

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The Managing Member may be engaged in sponsoring other such entities at approximately the same time as the Company's securities are being offered or its investments are being made. These activities may cause conflicts of interest between such activities and the Company, and the duties of the Managing Member concerning such activities and the Company. The Managing Member will attempt to minimize any conflicts of interest that may arise among these various activities.

5. Receipt of Compensation by the Managing Member and its Affiliates. Payments to the Managing Member and its Affiliates may not have been determined by arm's length negotiations. The Managing Member and its Affiliates will receive compensation pursuant to agreements that will be negotiated on behalf of the Company by the Managing Member and there will not be any independent valuation of such compensation. As a result, the Managing Member will determine its own compensation and the Members will not have approval rights for such compensation.

6. Ownership of Interests by Managing Member and its Affiliates. The Managing Member and its Affiliates may purchase Interests. The principals of the Managing Member and their affiliates may also purchase units in other partnerships with which they are affiliated. Conflicts of interest may arise in the course of the operations of the Company as a result of such ownership of Interests. The principals of the Managing Member and their affiliates may be purchasing real property or interests in other entities which are engaged in purchasing similar real property

7. Lack of Separate Representation. The Company and the Managing Member, have not been represented by separate counsel in connection with the formation of the Company, drafting the Operating Agreement, or the offering of the Interests. The attorneys and other experts who perform services for the Company all perform similar services for affiliates of the Managing Member and it is contemplated that such multiple representation will continue in the future. Each Investor acknowledges and agrees that counsel representing the Company, the Managing Member and its Affiliates does not represent and will not be deemed under the applicable codes of professional responsibility to have represented or to be representing any or all of the Investors in any respect.

8. Transactions by Certain Persons. The principals of the Company, the Managing Member and its Affiliates are not restricted from acquiring properties and engaging in other real estate activities which may be in competition with the Company. The Investors, as a result of their investment in the Company, will not participate in any such activities, partnerships or syndicates, nor in any income or profits derived therefrom.

9. Distribution of Investor Interests by Managing Member. There is no independent underwriter engaged for the placement of the Interests. Therefore, the value of the Interests and the compensation of the Managing Member have not been determined at arm's length and the placement will not receive the independent review accompanied by an underwriting.

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## **EXHIBITS**

- Exhibit A Financial Statements and Certification Letter
- Exhibit B Articles of Incorporation and Operating Agreement
- Exhibit C Subscription Agreement
- Exhibit D Executive Summary

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**Attachment 2:** `gdp2022financials.pdf`

# GENESIS DEVELOPMENT CAPITAL, LLC.

# FINANCIAL STATEMENTS

For the Period of Formation (November 11, 2022)

Through December 31, 2022

# TABLE OF CONTENTS

|  | Page No. |
| --- | --- |
| INDEPENDENT ACCOUNTANT'S REVIEW REPORT | 1 |
| FINANCIAL STATEMENTS |  |
| Balance Sheet | 2 |
| Statement of Changes in Owner's Equity | 3 |
| Income Statement | 4 |
| Statement of Cash Flows | 5 |
| Notes to Financial Statements | 6 - 9 |

INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To the Board of Directors

Genesis Development Capital, LLC.

Atlanta, GA 30318

We have reviewed the accompanying financial statements of Genesis Development Capital, LLC. (A Limited Liability Company), which comprise the balance sheet as of December 31, 2022, and the related statements of income, equity and cash flows for the period from formation (November 11, 2022) through December 31, 2022, and the notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

### Management's Responsibility for the Financial Statements

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

### Accountant's Responsibility

Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

We are required to be independent of Genesis Development Capital, LLC, and to meet other ethical responsibilities, in accordance with the relevant ethical requirements related to our review.

### Accountant's Conclusion

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

Date: To Be Determined

# GENESIS DEVELOPMENT CAPITAL, LLC.

# Balance Sheet

As of December 31, 2022

|  | 12/31/2022 |
| --- | --- |
| ASSETS |  |
| Current assets | $ - |
| Total Current Assets | $ - |
| Non-current assets | - |
| Total Non-current Assets | $ - |
| TOTAL ASSETS | $ - |
| LIABILITIES |  |
| Current Liabilities | $ - |
| Total Current Liabilities | $ - |
| Non-current Liabilities | $ - |
| Total Non-current Liabilities | $ - |
| TOTAL LIABILITIES | $ - |
| OWNER'S EQUITY |  |
| Member Equity | - |
| Retained Earnings | - |
| TOTAL EQUITY | $ - |
| TOTAL LIABILITIES AND OWNER'S EQUITY | $ - |

See accompanying notes and accountant's review report

# GENESIS DEVELOPMENT CAPITAL, LLC.

# Statement of Equity

For the Period of Formation (November 11,

2022) Through December 31, 2022

|  | 11/11/2022 - 12/31/2022 |
| --- | --- |
| EQUITY - BEGINNING | $ - |
| TOTAL | $ - |
| EQUITY - ENDING | $ - |

See accompanying notes and accountant's review report

# GENESIS DEVELOPMENT CAPITAL, LLC.

## Income Statement

For the Period of Formation (November 11, 2022)

Through December 31, 2022

|  | 11/11/2022 - 12/31/2022 |
| --- | --- |
| Revenue | $ - |
| Net Revenue | $ - |
| Expenses | $ |
| Total Expenses | - |
| NET INCOME | $ - |

See accompanying notes and accountant's review report

# GENESIS DEVELOPMENT CAPITAL, LLC.

# Statement of Cash Flows

For the Period of Formation (November 11, 2022)

Through December 31, 2022

|  | 11/11/2022 - 12/31/2022 |
| --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |
| Net income | $ - |
| (Increase) decrease from operating assets | - |
| Increase (decrease) from operating liabilities | - |
| Net cash provided by operating activities | $ - |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |
|  | $ - |
| Net cash provided by investing activities | $ - |
| CASH FLOWS FROM FINANCING ACTIVITIES | $ |
| Net cash used in financing activities | $ - |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | $ - |
| CASH AND CASH EQUIVALENTS, beginning of year | $ - |
| CASH AND CASH EQUIVALENTS, end of year | $ - |

Interest Paid $ -

Taxes Paid $ -

See accompanying notes and accountant's review report

# GENESIS DEVELOPMENT CAPITAL, LLC.

# NOTES TO THE FINANCIAL STATEMENTS

For the Period of Formation (November 11, 2022)

Through December 31, 2022

# NOTE A - THE ORGANIZATION

# Nature of operations

Genesis Development Capital, LLC was created to find the best, highest volume, store locations for high credit national retail tenants by becoming an extension of their real estate team. The Company provides value to these retailers by outsourcing a variety of real property matters, including site selection, site development, and property management. After projects are developed, the Company will attempt to sell the project(s), which is the primary method of generating income for the Company. After liquidation of the project(s), the Managing Member intends to cease operations, and “wind up” the Company, at which point the Investors’ Interests will be considered redeemed in full.

# Revenue

For the period under review, November 11, 2022 - December 31, 2022, there was no revenue.

# NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# Financial Statement Presentation

The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP).

# Cash and cash equivalents

The Company considers cash, money market accounts and short-term, highly liquid investments with a maturity of three months or less, as cash in the financial statements. There are no cash equivalents as of December 31, 2022. The Company’s cash balance is $0 at December 31, 2022

# Revenue Recognition

Revenues consist primarily of monthly user fees, advertising and merchandise sales. The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, which provides a five- step model for recognizing revenue from contracts with customers. Subscription revenue is recognized ratably over the term of the contract, taking into consideration expected refunds. The majority of the Company’s subscriptions are 12 months or less in duration, though they do offer longer and life-time options.

The Company adopted ASC Topic 606 effective January 1, 2019; no transition adjustment was recognized. The implementation of ASC 606 had no material effect upon the Company’s financial statements.

# Risks and Uncertainties

The Company’s business and operations are sensitive to general business and economic conditions in the United States. A host of factors beyond the Company’s control could cause fluctuations in these conditions. Adverse conditions may include recession, downturn or otherwise, changes in regulations, competition, or changes in consumer taste. These adverse conditions could affect the Company’s financial condition and the results of its operations. As of December 31, 2022, the Company is operating as a going concern.

See Independent Accountant’s Review Report

The company intends to seek additional equity capital through a form C Crowdfunding offering. However, as circumstances change and further funding required, the company will determine the best options and make decisions based on information available at that time on the best funding initiatives. Like many businesses, the company faces challenges that are related to early-stage enterprises and securing capital. Other significant risks and uncertainties include failing to secure funding, competitor technology and general business conditions. These situations could affect the company's operations and financial condition.

The offering in consideration has a target amount of $500,000 by offering Common LLC/Membership Interests.

# Taxes

# Income Tax

The Company is taxed as an LLC and complies with FASB ASC 740 accounting for uncertainty in income taxes recognized in a company's financial statements, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely than- not to be sustained upon examination by taxing authorities. FASB ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

Based on the Company's evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements. The Company believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.

The Company has no revenue for the period under review and does not have net operating losses or carryforwards and is not presently subject to any income tax audit in any taxing jurisdiction.

# Sales Tax

Various states have may the right to impose a sales tax on the Company's sales to non-exempt customers. The Company collects the sales tax from customers and remits the entire amount to each respective state. The Company's accounting policy is to exclude the tax collected and remitted to the states from revenue and cost of sales.

# Fair Value Measurements

The Company has determined the fair value of certain assets and liabilities in accordance with United States generally accepted accounting principles ("GAAP"), which provides a framework for measuring fair value.

Financial Accounting Standards Board ("FASB") guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

See Independent Accountant's Review Report

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered.

# Revenue Recognition

The Company adopted ASC 606, Revenue from Contracts with Customers, as of January 1, 2019 (the "transition date") using the full retrospective method. There was no transition adjustment recorded upon the adoption of ASC 606. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services.

To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

# Use of Estimates

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

# Advertising Costs

The cost of all advertising is expensed as incurred by the Company. Advertising cost for the period under review is $0.

# Capitalization Policy

Assets over $1,000 are capitalized and depreciated, or amortized, according to Company depreciation/amortization policies. Assets are depreciated along the following time frames: buildings 39 years, building improvements 39 years, equipment 5-7 years, computers furniture, and fixtures 3 years. Intangibles are amortized over a 3-15-year period dependent upon the type of intangible, its useful life and other factors on a case by case basis.

# Research and Development Costs

Research and development costs, when incurred in developing, inventing, and testing, are expensed when incurred. There are no research and development expenses for the period of November 11, 2022 - December 31, 2022.

# Recent Accounting Pronouncement

In February 2017, FASB issued ASU No. 2017-02, "Leases (Topic 842)," that requires organizations that lease assets, referred to as "lessees," to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. ASU

See Independent Accountant's Review Report

2017-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard for nonpublic entities will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, and early application is permitted. The Company is currently evaluating the effect that the updated standard will have on its financial statements and related disclosures. The Company will adopt this standard after required to and when applicable to the Company.

# Equity Offering Costs

The company accounts for equity offering costs in accordance with Accounting Standards Codification (ASC) 340, Other Assets and Deferred Costs. Prior to completion of an offering, costs will be capitalized as deferred offering costs on the balance sheet. The deferred offering costs will be charged to stockholder's equity upon completion of the offering or to expense if the offering is not completed, or if it is an offering that does not provide equity immediately at completion (SAFEs).

# NOTE C - COMMITMENTS AND CONTINGENCIES

The Company, from time to time, may be involved with lawsuits arising in the ordinary course of business. In the opinion of the Company's management, any liability resulting from such litigation would not be material in relation to the Company's financial position, results of operations and cash flows. There is no pending or threatened litigation.

# NOTE D - GOING CONCERN

These financial statements are prepared on a going concern basis. The Company was formed in 2022 but had no transactions from inception to December 31, 2022. The Company's ability to continue as a going concern is dependent upon management's plan to grow profitable operations and raise additional funds. The financial statements do not include any adjustments that might be necessary if the Company is not able to continue as a going concern.

# NOTE E - DATE OF MANAGEMENT'S REVIEW

In preparing the financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through January 28, 2023, the date that the financial statements are available to be issued.

See Independent Accountant's Review Report

**Attachment 3:** `gdparticles.pdf`

Control Number : 22236662

# STATE OF GEORGIA

## Secretary of State

Corporations Division

313 West Tower

2 Martin Luther King, Jr. Dr.

Atlanta, Georgia 30334-1530

## CERTIFICATE OF ORGANIZATION

I, Brad Raffensperger, the Secretary of State and the Corporation Commissioner of the State of Georgia, hereby certify under the seal of my office that

Genesis Development Capital, LLC

a Domestic Limited Liability Company

has been duly organized under the laws of the State of Georgia on 11/11/2022 by the filing of articles of organization in the Office of the Secretary of State and by the paying of fees as provided by Title 14 of the Official Code of Georgia Annotated.

WITNESS my hand and official seal in the City of Atlanta and the State of Georgia on 11/14/2022.

![img-0.jpeg](img-0.jpeg)

Brad Raffensperger

Brad Raffensperger

Secretary of State

# ARTICLES OF ORGANIZATION

*Electronically Filed*

Secretary of State

Filing Date: 11/11/2022 3:59:27 PM

# BUSINESS INFORMATION

CONTROL NUMBER 22236662

BUSINESS NAME Genesis Development Capital, LLC

BUSINESS TYPE Domestic Limited Liability Company

EFFECTIVE DATE 11/11/2022

# PRINCIPAL OFFICE ADDRESS

ADDRESS 1891 Spring Ave. NW, Atlanta, GA, 30318, USA

# REGISTERED AGENT

| NAME | ADDRESS | COUNTY |
| --- | --- | --- |
| Maranda Walker | 1891 Spring Ave. NW, Atlanta, GA, 30318, USA | Fulton |

# ORGANIZER(S)

| NAME | TITLE | ADDRESS |
| --- | --- | --- |
| Maranda Walker | ORGANIZER | 1891 Spring Ave., NW, Atlanta, GA, 30318, USA |

# OPTIONAL PROVISIONS

N/A

# AUTHORIZER INFORMATION

AUTHORIZER SIGNATURE Maranda Walker

AUTHORIZER TITLE Organizer

**Attachment 4:** `gdpoa.pdf`

# FIRST AMENDED OPERATING  
AGREEMENT OF  
GENESIS DEVELOPMENT CAPITAL, LLC  
A GEORGIA LIMITED LIABILITY  
COMPANY

1

# LIMITED LIABILITY COMPANY OPERATING AGREEMENT

OF

## GENESIS DEVELOPMENT CAPITAL, LLC

This Limited Liability Company Operating Agreement as amended from time to time, including all Supplements (defined below) (the “**Agreement**”) of **GENESIS DEVELOPMENT CAPITAL, LLC**, a Georgia limited liability company (the “**Company**”) is entered into as of the TBD$^{th}$ day of October, 2022 by and among, **GENESIS DEVELOPMENT MANAGEMENT, LLC**, an Ohio limited liability company (the “**Manager**”), and those Persons (as hereinafter defined) listed from time to time as Non-managing Members on Schedule A attached hereto (as same may be amended or supplemented from time to time).

In order to form a limited liability company pursuant to and in accordance with the Georgia Limited Liability Company Act, Section 14-11-108(18), as amended from time to time (the “**Act**”), the Members hereby agree as follows:

### ARTICLE I

#### CERTAIN DEFINITIONS AND REFERENCES

**1. Definitions.** The following terms as used in this Agreement shall be defined as follows:

1.1 “**American Arbitration Association**,” “**AAA**” and/or “**AAA Rules**” are defined herein in section 13.22.

1.2 “**Assignee**” means a Person who has acquired a Non-managing Member’s Membership Interest in the Company, through a Transfer in accordance with the terms of this Agreement.

1.3 “**Accounting Policies and Procedures**” means the policies and procedures adopted from time to time by the Manager for preparation of Company financial statement, financial projections and other accounting reports.

1.4 “**Affiliate**” means, with respect to a Person, another Person, directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with the Person in question. The term “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled Person.

1.5 “**Assigning Non-managing Member**” means a Non-managing Member who by means of a Transfer has transferred his or her Membership Interest in the Company to an Assignee.

2

1.7 **“Bankruptcy”** means, with respect to any person, the occurrence of any of the following events: (i) the making by such Person of an assignment for the benefit of creditors; (ii) the filing (A) by such Person of a voluntary petition in bankruptcy or (B) of an involuntary petition in bankruptcy against such Person and the failure of such Person to cause such involuntary petition to be discharged within one hundred twenty (120) days of such involuntary filing; (iii) adjudication of such Person as bankrupt or insolvent or the issuance of a decree of bankruptcy or insolvency against such Person; (iv) the filing by such Person of a petition or answer seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief; (v) the filing by such Person of an answer or other pleading admitting or failing to contest material allegations of a petition filed in any proceeding of the type described in this definition; or (vi) the seeking, consent to or acquiescence in, by such Person, the appointment of a trustee, receiver or liquidator of such Person or of all or any substantial part of his or her properties.

1.8 **“Business Day”** means any day other than Saturday, Sunday or other day on which commercial banks in United States are authorized or required to be closed under the laws of the United States.

1.9 **“Capital Account”** means the account established and maintained for each Non-managing Member maintained and adjusted in accordance with Section 4.4 (Allocation of Profits and Losses).

1.10 **“Capital Contribution”** means, with respect to any Non-managing Member, the amount of money, or services, contributed to the Company (net of liabilities secured by such contributed property that the Company is considered to assume or take “subject to” under IRC Section 752) in consideration of a Percentage Interest held by such Member, to be exclusively defined as stated in the attached Schedule A to this Operating Agreement, and as accepted by the Manager under terms that it shall set in its sole and absolute discretion. Under no conditions shall a Capital Contribution be deemed a loan.

1.11 **“Capital Event”** means the sale, refinancing, exchange or other disposition of all or part of the Company’s real estate assets. The sale, exchange or other disposition of assets constituting fifty percent (50%) or more of the Company’s assets, based upon the then outstanding assets, shall be deemed to be a Capital Event for purposes of this Agreement.

1.12 **“Certificate of Formation”** means the document filed with the Georgia Secretary of State required to form a limited liability company.

1.13 **“Closing Date”** means the date, if any, upon which the Company completes the anticipated transaction closing on the Property which this Company intends to purchase, and/or the date upon which the Company must meet the minimum threshold requirement as described in the FORM C.

3

1.14 “**Code**” or “**IRC**” means the Internal Revenue Code of 1986, as amended, and any successor provision.

1.15 “**Confidential Information**” means all confidential and proprietary information, Intellectual Property Rights, business and marketing plans, technology and technical information, product designs, and business processes, and any information or materials with the name, sign, trade name or trademark of the Company, whether or not it is marked or identified as Confidential Information.

1.16 “**Company Property**” means all assets, real and personal, owned by the Company, whether or not contributed to the Company by a Non-managing Member.

1.17 “**Encumber**” means the act of creating or purporting to create an Encumbrance, whether or not perfected under applicable law.

1.18 “**Encumbrance**” means, with respect to any Membership Interest, or any element thereof, a mortgage, pledge, security interest, lien, proxy coupled with an interest (other than as contemplated in this Agreement), option, or preferential right to purchase.

1.19 “**Fiscal Year**” shall be from January 1$^{st}$ to December 31$^{st}$ of the same year.

1.20 “**Initial Member**” or “**Initial Members**” means those Persons whose names are set forth in the first sentence of this Agreement. A reference to an “**Initial Member**” means any of the Initial Members.

1.21 “**Intellectual Property Rights**” means (a) all inventions (whether or not patentable and whether or not reduced to practice), all improvements thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, divisions, continuations, continuations-in-part, revisions, renewals, extensions, and reexaminations thereof, (b) all works of authorship, including all mask work rights, database rights and copyrightable works, all copyrights, all applications, registrations and renewals in connection therewith, and all moral rights, (c) all trade secrets, (d) all registered and unregistered trademarks, service marks, trade dress, domain names, logos, trade names, and corporate names, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations and renewals in connection therewith, (e) all derivative works of any of the foregoing; (f) any other similar rights or intangible assets recognized under any laws or international conventions, and in any country or jurisdiction in the world, as intellectual creations to which rights of ownership accrue, and all registrations, applications, disclosures, renewals, extensions, continuations or reissues of the foregoing now or hereafter in force, and (g) all copies and tangible embodiments of all of the foregoing (a) through (f) in any form or medium throughout the world.

4

1.22 “**Manager**” means GENESIS DEVELOPMENT MANAGEMENT, LLC, more fully defined in herein, but briefly, the Managing Member of the Company, vested with sole and exclusive rights to control the Company. The Manager shall own at least 30% of the Membership Percentage Interest of the Company, dependent capital actual raised, as further detailed herein.

1.23 “**Member**” shall mean the Manager and the Non-managing Members, and each, from time to time, a Member.

1.24 “**Membership Interest**” or “**Interest**” means, with respect to a Member, the entire Membership Interest of such Member in the Company as of any given date, including the right of such Member to any and all benefits to which a Member may be entitled as provided herein through such date, together with the obligations of such Member to comply with all the terms and provisions hereof. Interest, as defined in the FORM C, refers to discrete units of membership in the Company, which for purposes of this Operating Agreement is reduced to the dollar amount expended for said Interests, or attributed for services rendered, as detailed in the attached Schedule A, as the number of interests attributed to each Member.

1.25 “**Member Percentage Interest**” means the percentage set forth on Schedule A hereto.

1.26 “**Memorandum**” or “**Form C**” means the Form C under the securities act of 1933 (FORM C) of the Company which was provided to each and every Non-managing Member.

1.27 “**Net Cash Flow**” is defined in Article 6 herein.

1.28 “**Non-managing Member**” means the Persons listed on Schedule A attached hereto (as same may be amended or supplemented from time to time, excluding the Manager) and any other Person which shall be admitted to the Company as a Non-managing Member. As detailed more fully herein, Non-managing Members shall have no rights to control or act on behalf of the Company, nor vote on actions of the Company. The Non-managing Members shall, collectively as a class, own no more than 70% of the Membership Interest of the Company, dependent on capital actually raised, as further detailed herein..

1.29 **Reserved.**

1.30 “**Person**” whether capitalized or not, means any individual, sole proprietorship, joint venture, partnership, corporation, company, firm, bank, association, cooperative, trust, estate,

1.31 “**Profits and Losses**” means, for each fiscal year or other period specified in this Agreement, an amount equal to the Company's taxable income or loss for such year or period, determined in accordance with Section 703 (a) of the Code. Profits and Losses, however, have no affect and have no bearing on distributions as described in Section 6.1, and other sections which

5

reference Section 6.1.

1.32 **“Reserve Amount”** means the amount from time to time established by the Manager as a reserve to meet the reasonably anticipated working capital needs of the Company. In particular, the Manager shall be entitled to hold $500,000.00 in a reserve account, or the excess of funds above and beyond those need to purchase the Property through the offering described in the FORM C, whichever is greater.

1.33 **“Single Asset Entity Covenants”** means the covenants made by the Company in order to obtain financing

1.34 **“Substituted Member”** means a Transferee, other than an existing Member, of the Membership Interest who may be admitted as a Member with respect to such Membership Interest.

1.35 **“Successor in Interest”** means an Assignee, a successor of a Person by merger or otherwise by operation of law, or a transferee of all or substantially all of the business or assets of a Person.

## **ARTICLE II FORMATION, NAME, AND PRINCIPAL OFFICE**

2.1 **Name.** The Company was registered with the State of Georgia under the name GENESIS DEVELOPMENT CAPITAL, LLC on November 4$^{th}$, 2022, and shall continue to operate under that name, or such other name as the Manager shall from time to time designate in accordance with applicable laws.

2.2 **Formation.** The Company was formed on November 4$^{th}$, 2022, upon the filing of the Company's Articles of Organization with the Secretary of State.

2.3 **Principal Office.** The principal office, place of business, and mailing address of the Company shall be maintained at 1891 Spring Ave NW, Atlanta, GA 30318, or at such other place as may be designated by the Manager.

2.4 **Location of Records.** The Company shall maintain all corporate records at its principal office.

2.5 **Registered Agent and Office.** The registered office of the Company shall be 1891 Spring Ave NW, Atlanta, GA 30318. The Manager shall have the right and authority to change the registered agent and office when deemed appropriate to do so by filing such instruments of record as may be required by the Secretary of State.

2.6 **Purpose.** The Company shall have the power to engage in any activity permitted

6

by law related or complementary to the following activities and approved by the Manager; acquiring, owning, holding, maintaining, improving, constructing, developing, operating, managing, leasing, selling, exchanging, and otherwise dealing with real property; and the carrying on of any other activity which, in the opinion of the Manager, may be necessary or appropriate in connection therewith or incidental thereto.

### DURATION OF THE COMPANY

The period of the duration of the Company shall be perpetual unless and until dissolved pursuant to the terms of this Agreement.

### MEMBERS; CAPITAL CONTRIBUTIONS

**4.1 Names of the Members.** The names of the Members of the Company are set forth in Schedule A.

**4.2 Manager.** GENESIS DEVELOPMENT MANAGEMENT, LLC (the 'Manager'), an Ohio limited liability company, with an address of 10921 Reed Hartman Hwy. Ste. 213 Cincinnati, Ohio 45242, is hereby designated the Manager of the Company, and shall promptly give written notice of any change in its address to the Non-managing Members. The Manager is hereby designated as an authorized person within the meaning of the act to execute, file and record (or direct the execution, filing and recording of) all such certificates and documents, including amendments to the Certificate, and to do such other acts as may be appropriate to comply with all requirements for the formation, continuation and operation of a limited liability company, the ownership of property, and the conduct of business under the laws of the State of Ohio and any other jurisdiction in which the Company may own property or conduct business. The Manager may act through subsidiaries, affiliates, and other related entities in its reasonable discretion, including but not limited to utilizing VESTRR platform ('VESTRR').

### 4.3 Members' Capital Contributions; Interests.

(a) In General. The Non-managing Members have, upon the execution of this Operating Agreement, or Subscription Agreement as defined herein, contributed and agreed to contribute to the capital of the Company the amounts set forth in Schedule A herein, or other services for which they have rendered, in consideration for which each of the Non-managing Members has been issued by the Company Interests in the amount set forth and described on the attached Schedule A herein. The amount listed in Schedule A for each Non-managing Member is due to be paid to the Company simultaneously with the execution of this Agreement or has already been received by the Company, and such payment is a condition precedent to the Non-managing Member becoming a Member of the

7

Company. No interest shall accrue on any Capital Contribution and no Member shall have the right to withdraw or be repaid any Capital Contribution except as provided in this Operating Agreement. The Capital Contributions of the Members are required to be received in cash. Certain Non-managing Members have been given Interests in exchange for services rendered to the Company. Those Non-managing Members will have an interest in the Company, and will be entitled to distributions pursuant to Section 6.1, but will not have a positive capital account.

(b) **Interests.** Each Member is hereby allocated the amount set forth on Exhibit A. An 'Interest' of the Company shall be the component or measure of Company ownership interest of a Member in relation to all other Members for purposes of determining such Member's distributable share of Company Cash Flow or such Member's allocable share of Profits and Losses. However, the percentage interest as marked on Schedule A shall define the said Non-managing Member's Interest relative to all other Non-managing Members.

**4.4 Additional Capital Requirements.** The Manager, in its sole and absolute discretion, may allow for additional contributions to be made by current or prospective Members on terms as the Manager deems advisable, and in the Manager's sole and absolute discretion. This could result in a Member's capital contribution being adjusted. In the event that the Manager allows for additional contributions to be made, the Non-managing Members shall make additional Capital Contributions in cash, in amounts to be determined by the Manager from time to time as is reasonably necessary to pay any operating, capital or other expenses related to the Company. Upon the Manager making such determination for Additional Capital Contributions, the Manager shall deliver the Non-managing Members a written notice of the Company's need for Additional Capital Contributions, which notice shall specify in reasonable detail (i) the purpose for such Additional Capital Contributions, (ii) the aggregate amount of such Additional Capital Contributions, (iii) each Member's share of such aggregate amount of Additional Capital Contributions based upon each such Member's Membership Interest, and (iv) the date (which shall not be less than 14 Business Days from the date that such notice is given) on which such Additional Capital Contributions shall be required to be made by the Non-managing Members. Once notice as described above is delivered, the Manager shall have no further obligation, and any Non-managing Members who wish to partake in the Additional Capital Contribution must tender the sums requested on the date requested. Unless otherwise authorized by the Manager, a Non-managing Member may not tender more than the amount described in the notice. The failure of a Non-managing Member to participate in any Additional Capital Contribution may result in said Non-managing Member's pro rata Membership Interest in the Company being decreased, which could result in decreased distributions. This Section 4.4 applies both to events in which the Manager determines additional contributions are reasonably necessary, as well as to instances when the Manager decides to admit additional Members as authorized in Section 7.2(p).

(a) If the Manager utilizes its authority under this Section to authorize additional capital contributions, whether from within or outside of the then current Members, the Manager shall receive proportionally less of its share of Net Cash

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Flow as defined in Section 6.1(c)(3), in proportion to the dilution of Non-managing Members who do not contribute additional capital under this Section 4.4. By way of example, if a Non-managing Member has a 1.00% interest listed in Schedule A, and an additional capital contribution causes said Non-managing Member's interest to, after the additional capital contribution, be 0.90%, the Manager will take 10% less, ie: 45%, under Section 6.1(c)(iii).

(b) The provisions contained in Section 4.4(a) shall not apply to any sums generated through the offering as described in the FORM C.

**4.5 Interest on Capital Contributions.** Except as otherwise expressly provided in this Agreement or as subsequently determined by the Manager, in its sole and absolute discretion, no Member shall be entitled to interest on any Capital Contribution.

**4.6 No Withdraw or Return of Capital Contributions.** Except as otherwise expressly provided in this Agreement or determined by the Manager, in its sole and absolute discretion, no Member shall have the right to (i) withdraw any portion of its Capital Contribution; (ii) demand a return of its Capital Contribution; or (iii) receive property other than cash in return for its Capital Contribution.

**4.7 Capital Accounts.** Capital Accounts for the Members shall be maintained in accordance with Regulation §1.704-1(b). If any Interests are transferred in accordance with the terms of this Agreement, then the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Interests; provided, however, that if any such transfer causes a termination of the Company for federal income tax purposes pursuant to §708(b) of the Code, then the Capital Account of the transferee (as well as those of the remaining Members) shall be adjusted to take into consideration the revaluation of Company property mandated pursuant to Regulation §§1.704-1(b)(2)(iv)(e), (f) and (l). Distributions under Section 6, particularly those in Section, may be made in a manner which does not accurately reflect the accounting in this Section 4.7.

**4.8 Member Loans to the Company.** The Manager may, loan funds to the Company, for any purpose that the Company is permitted to borrow funds under this Agreement, provided that any such loan is made in accordance with Section 8.1. The amount of a loan, if any, made to the Company by a Member shall not be considered a contribution to capital of the Company nor shall the making of such loan entitle such Member to an increased share of the Profits or Losses (as defined in Exhibit B) to be allocated pursuant to the provisions of this Agreement.

**4.9 Subscription Agreement.** Each Non-managing Member, by execution of a Subscription Agreement, acknowledges and agrees that such Non-managing Member has heretofore delivered a Subscription Agreement duly executed by such Non-managing Member pursuant to which such Non-managing Member has made a commitment for certain purchase of Interests, as defined therein, which will be converted to Capital Contributions for purposes of this Agreement. Upon the execution of a Subscription Agreement by such Non-managing

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Member, such Non-managing Member is obligated pursuant to that Subscription Agreement and the Operating Agreement to make certain purchases of the Interests, and therefore certain capital contributions. No signor of a Subscription Agreement shall become a Non-managing Member until the funds described in said Subscription Agreement shall be received by the Manager. Each Non-managing Member's Capital Contribution shall be held in an account by the Manager until the earlier of the Closing Date or the receipt of the Minimum Offering, whichever comes first. If such a closing does not occur, or in the sole opinion of the Manager a closing is not advisable or likely to take place, the Manager shall refund any and all Capital Contributions of the Non-managing Member, including accrued interest, if any. No Subscription Agreement shall be binding on the Company unless signed by both the Non-managing Member and the Company.

## ARTICLE V
ALLOCATIONS OF PROFITS AND LOSSES

Allocations of Profits and Losses shall be made as provided in Exhibit B.

## ARTICLE VI
DISTRIBUTIONS

**6.1 Net Cash Flow Distributions.** Subject to Section 6.2, Company Net Cash Flow shall be distributed as follows:

(a) The Company Net Cash Flow may be distributed to the Members at such times and in such amounts as determined by the Manager, as, and pursuant to Section 6.1(c).

(b) In the case of the liquidation or termination of the Company, distributions shall be made in accordance with Article XI.

(c) It is the goal of the Manager to distribute net cash flow, if any on a monthly basis, subject to reserve amounts, and if any Net Cash Flow is generated or available. Upon the occurrence of distributions, they will occur as follows:

(i) Seventy Five Percent (75%) of Net Cash Flow to the Non-managing Members, Twenty Five Percent (25%) of Net Cash Flow to the Manager.

(d) Net Cash Flow is defined as follows:

1. Effective Gross Income (which is gross rental income at market rate at 100% occupancy, minus vacancies at market rate, minus credit losses (ie: rents and fees not paid on time) minus losses to lease (current rental rates lower than market rates));

2. plus other income (which may include but is not limited to, proceeds from the sale of any assets of the Company (including but not limited to real estate), cash and other property remaining for distribution as described in Section

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11.3(a), tenant charges, and collections);

3. minus operating expenses, debt service, other costs and fees expended by the Company in its reasonable discretion,

4. minus replacement of Reserve Amounts;

5. Any fees due and owing the Manager;

6. minus any and all other reasonable expenses which the Company, in its reasonable discretion, determines to expend on behalf of itself or any other entity in furtherance of the business of the Company.

(e) Net Cash Flow does not include any sums generated through the offering as described in the FORM C, any other offering, or additional capital contributions as defined in Section 4.4

**6.2 Distributions in Kind.** A Member, regardless of the nature of his or her contribution, has no right to demand and receive any distribution from the Company in any form other than cash. Any non-cash form of distribution is only allowable upon subsequent approval by the Manager.

**6.3 Distributions upon the occurrence of a Capital Event.** Upon the occurrence of a Capital Event, which the Manager may in its absolute, and sole and unfettered discretion initiate, the Manager shall utilize the net proceeds of said Capital Event as follows:

(a) The term “net proceeds” as used in this section 6.3 shall mean sums obtained by the Company through a Capital Event, minus any costs of the Capital Event, including but not limited to any (1) financing charges, (2) pre-payment penalties, (3) prorations, (4) fees for appraisals, inspections, and/or insurance, (5) real property and conveyance tax payments, (6) government recording fees and transfer charges, (7) attorney fees, (8) title charges, including but not limited to title services and title insurance, (9) closing fees, (10) brokerage and/or real estate commissions, (11) survey fees, (12) wire and other bank fees, (13) governmental charges including but not limited to charges for creating new legal entities, (14) escrow fees, (15) payoffs required to effect the Capital Event, and (16) any and all charges the Manager deems necessary in its reasonable discretion to effectuate the Capital Event, and to comply with any and all requirements of any contracts, agreements, and other documents.

(b) Upon the completion of any Capital Event, and the receipt of actual net proceeds, if any, from any Capital Event, the net proceeds will be distributed as follows:

1. To the Non-managing Members in proportion to their Capital Contributions, until and if the Non-managing Members receive an amount equal to Capital

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Contribution Return when combined with any Net Cash Flow distributions under Section 6.1(c)(i). Then to the Non-managing Members until the Non-managing Members have received their Preferred Return when combined with any Preferred Return distributions under Section 6.1(c)(ii). The distributions received by Non-managing Members under this Section 6.3(b)(1) shall be cumulative across Capital Events, if there are any and more than one.

2. If the Non-managing Members have received sums equal to one hundred percent (100%) of their Capital Contributions, then according to Section 6.1(c)(iii).

3. For purposes of clarity, distributions made to Non-managing Members under Sections 6.1(c)(i) and 6.1(c)(ii) are cumulative with any distributions made under Section 6.3(b)(1). By way of example: if a Non-managing Member has an initial Capital Contribution of $100,000, and they have received a total of $50,000 through Net Cash Flow distributions under Section 6.1(c)(i), and then a Capital Event occurs, wherein said Non-managing Member receives $50,000, they shall be deemed to received, in full their Capital Contribution Return, and shall no longer be entitled to distributions under Section 6.1(c)(i) for the remainder of the existence of the Company.

4. Once the conditions under Sections 6.1(c)(i) (the Capital Contribution Return) and 6.1(c)(ii) (the Preferred Return) have been satisfied, then all distributions, whether from Capital Events of Net Cash Flow distributions, shall be distributed as per Section 6.1(c)(iii) for the remainder of the existence of the Company.

## ARTICLE VII
## MANAGEMENT OF THE COMPANY

**7.1 Manager's Management Authority.** Except to the extent otherwise provided in this Agreement, the management of the Company and the right to bind and exercise the other powers of the Company are vested exclusively in the Manager. Non-managing Members shall not have the right to manage the Company, act on behalf of the Company, or vote on any actions of the Company. The Manager is hereby vested with the full, exclusive and complete right, power and discretion to operate, manage and control the affairs of the Company and to make all decisions affecting Company affairs, as deemed proper, necessary, expedient or advisable by the Manager to carry on the business of the Company. The Manager is hereby authorized to appoint persons and/or entities to perform all or part of the duties of the Manager as provided herein. The Manager shall have all of the rights, powers and obligations of a Manager of a limited liability company under the Act and otherwise as provided by law, and without limiting the generality of the foregoing, all of the Members, including the Non-managing Members, hereby specifically agree that the Manager may, on behalf of the Company, at any time and without further notice to or consent from any Non-managing Member, do any or all of the following:

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- (a) take any and all actions which it deems necessary or advisable in connection with the business of the Company as described in the Memorandum, including, without limitation, entering into any contract, agreement, undertaking or transaction with any Member, Affiliate of a Member or other Person having any business, financial or other relationship with any Member;
- (b) pay any and all fees and make any and all expenditures which it deems necessary or appropriate in connection with the management of the affairs of the Company and the carrying out of its obligations and responsibilities under this Agreement;
- (c) register or qualify the Company under any applicable federal or state laws, or obtain exemptions under such laws, if such registration, qualification or exemption is deemed necessary by the Manager;
- (d) sell all or any part of any Company assets, whether for cash or other consideration, on such reasonable terms as the Manager shall determine to be appropriate;
- (e) incur all expenditures permitted by this Agreement and pay all expenses, debts and obligations of the Company;
- (f) engage, compensate and discharge any agent, attorney, employee, accountant, consultant, investment manager or other Person, including anyone who may be a Member or an Affiliate of a Member, at such compensation and upon such terms and conditions as the Manager may deem appropriate;
- (g) maintain such bank accounts on behalf of the Company and make such signature arrangements with respect thereto as the Manager shall determine to be appropriate;
- (h) enter into agreements with any and all Persons with respect to financing and operating of the Company's business upon such terms as the Manager deems appropriate;
- (i) compromise, submit to arbitration, sue on and defend all claims in favor of or against the Company;
- (j) do all acts it deems necessary or appropriate to further the Company's business or for the protection and preservation of the Company's assets;
- (k) offer, sell, redeem and resell Interests, in its sole and absolute discretion and as deemed necessary, as contemplated by the Memorandum and this Agreement; in its sole and absolute discretion and as it deems necessary, transfer Interests between Non-managing Members and other individuals and

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entities where the current Member and new Member are owned by substantially the same individuals and/or entities, or in other instances where said transfer is necessary, advisable, or preferable due to circumstances, legal or otherwise, in the Manager's sole and absolute discretion;

(l) cause the Company to enter into transactions in which the Manager or its Affiliates have an interest, including, but not limited to, transactions which involve the purchase or sale of any property to or from the Company and transactions in which services will be rendered for or by the Company;

(m) enter into, execute, amend, supplement, acknowledge and deliver any and all contracts, agreements and other instruments as the Manager shall determine to be appropriate in furtherance of the purposes of the Company; and

(n) cause the Company to purchase insurance against liabilities;

(n) enact a "Redemption" of the Capital Contributions upon such terms as contained in Section 4.9 herein;

(o) admit new members upon such terms as the Manager, in its sole and absolute discretion deems appropriate;

(p) in its sole and absolute discretion maintain a reserve account in the amount of $500,000 or the excess of sums generated through the Offering as described in the FORM C, whichever is greater. Any amounts taken shall be taken before net cash flow is calculated;

(q) take any other action or actions reasonably necessary to engage in the activities, duties, powers, and obligations described in this Agreement, and in applicable law.

**7.2 Authority.** Third parties dealing with the Company may rely conclusively upon any certificate of the Manager to the effect that it is acting on behalf of the Company. The signature of the Manager shall be sufficient to bind the Company to any agreement or on any document, including but not limited to, documents drawn, or agreements made, in connection with the acquisition of any investment or property or the disposition of any Company assets in furtherance of the purposes of the Company.

**7.3 Restrictions on the Authority of the Manager.** The Manager shall have no authority to (i) do any act in contravention of law, (ii) without prior written consent of a majority of the Non-managing Members, do any act in contravention of this Agreement, (iii) admit a Person as a Manager of the Company except as provided for in Sections 7.1 and 4.4, or (iv) dissolve the Company, except as provided in Article 11.

**7.4 Duties and Obligations of the Manager.**

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(a) The Manager shall take all action which may be necessary or appropriate for the continuation of the Company's valid existence as a limited liability company under the laws of the State of Georgia and of each other jurisdiction in which such existence is necessary to protect the limited liability of the Non-managing Members or to enable the Company to conduct the business in which it is engaged.

(b) The Manager shall use all reasonable efforts at all times to conduct its affairs and the affairs of the Company in such a manner that no Non-managing Member acting in its capacity as a Non-managing Member shall have any personal liability with respect to any liability or obligation of the Company, except as expressly assumed by any Non-managing Member herein or in Georgia law.

(c) The Manager shall prepare or cause to be prepared an annual budget for the Company.

(d) Except as required by law, the Manager shall be free to engage in whatever business activities it chooses, including activities which may be competitive with the Company, without having or incurring any obligation to offer any interest in such activities to the Company or to the Non-managing Members.

# 7.5 Indemnification.

(a) General. The Company, to the fullest extent permitted under applicable law, shall release, hold harmless, and indemnify (collectively, for purposes of this Section 7.5, "Indemnify") the Manager from any loss that in any way relates to, or arises out of, or is alleged to relate to or arise out of, any act or omission on the part of the Company or the Manager.

(b) Limitations. Notwithstanding anything in Section 7.5(a) to the contrary, the Company is not required to indemnify the Manager under this Section 7.5 to the extent that the loss incurred by the Manager is due to the Manager's willful misconduct or gross negligence.

(c) Advancement of Expenses. The Company shall pay or reimburse the reasonable costs and expenses incurred by the Manager in defending any action, claim, or demand with respect to which the Manager may be entitled to be indemnified under this Section 7.5 in advance of the disposition thereof upon the receipt by the Company of the signed statement by the Manager, in such form that the Company may reasonably require, that the Manager will promptly reimburse the Company for those advances to the extent that the Manager ultimately is found not to be entitled to indemnification under this Section 7.5.

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(d) Limited Recourse of Manager. The Company shall satisfy its obligations under this Section 7.5 from the assets of the Company, and no Member is to have any personal liability on account thereof.

(e) Nonexclusivity of Rights. Nothing in this Section 7.5 shall limit the ability of the Manager to indemnify other parties, including Members, in its sole discretion, or as required by law or elsewhere in this Agreement.

**7.6 Non-managing Members have no Right of Control or Right to Bind the Company, or Voting Rights.** Only the Manager has the authority to bind or transact business on behalf of the Company. No Non-managing Member, in that capacity, may take part in, or interfere in any manner with, the management, conduct, or control of the business or affairs of the Company, or take any action to bind or otherwise act for or on behalf of the Company. Any act of a Non-managing Member in contravention of this Section 7.6 will be null and void and without force or effect. Each Non-managing Member shall indemnify the Company and hold it harmless from any losses incurred by the Company that are caused by that Non-managing Member's unauthorized actions on behalf of the Company. Each Non-managing Member, to the fullest extent permitted under applicable law, cedes and otherwise relinquishes all management and voting rights that they might have otherwise have to the Manager, except as may be retained elsewhere in this Agreement.

**7.7 Compensation of the Manager.** The Manager shall be entitled to compensation in addition to any distributions it may receive as defined in Section 6.1. Company will pay a fee to the VESTRR platform in the amount of six percent (6%) of all sums raised through this offering. The Manager will also receive a three percent (3%) "Acquisition Fee" calculated based upon the purchase price of the Property, but is subject to change, earned by and payable to the Manager upon the purchase of the Property.

**7.8 Dispositions of Membership Interests.**

(a) General Restriction. A Member may not make an assignment, transfer or other disposition (voluntarily, involuntarily or by operation of law) (a "**Transfer**") of all or any portion of its Membership Interest, nor pledge, mortgage, hypothecate, grant a security interest in, or otherwise encumber (an "**Encumbrance**") all or any portion of its Membership Interest, except with the consent of the Manager, which it may grant or withhold in its sole and absolute discretion, and upon terms and conditions as it may require, again, in its sole and absolute discretion. Any attempted Transfer of all or any portion of a Membership Interest, other than in strict accordance with this Section, shall be void. A Person to whom a Membership Interest is transferred may be admitted to the Company as a Member only as provided in this Section with the consent of the Manager, which may be given or withheld in its sole and absolute discretion. In connection with any Transfer of a Membership Interest or any portion thereof and any admission of an assignee as a Member, the

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Member making such Transfer and the Assignee shall furnish the Manager with such documents regarding the Transfer as the Manager may request including a copy of the Transfer instrument, a ratification by assignee of this Agreement (if the assignee is to be admitted as a Member) and a legal opinion that the Transfer complies with all applicable federal and state securities laws and will not cause the Company to be terminated under Section 708 of the Code.

(b) Unauthorized Transfers. Any purported Transfer or Encumbrance of an Interest will be null and void and of no force or effect whatsoever (with respect to a Transfer, an "Unauthorized Transfer"). If, however, the Company is required under the Act or other applicable Law (including any Bankruptcy Law, law of successions or donations, or by reason of a separation agreement or divorce, equitable or community or marital property distribution, judicial decree, or other court Order concerning the division or partition of property between spouses), as reasonably determined by the Manager or by a court of competent jurisdiction, to recognize an Unauthorized Transfer of all or part of an Interest the transferee will have only the rights of a Non-managing Member with respect to that Transferred Interest. Any Distributions with respect to the Transferred Interest may be applied by the Company (without limiting any other legal or equitable rights of the Company) towards the satisfaction of any debts, obligations, or liabilities for damages that the transferor or transferee of the Transferred Interest may have to the Company.

(c) Bankruptcy, Resignation or Withdrawal Members. Except as provided herein, a Member does not have the right to resign as a Member or withdraw capital from the Company. This section is intended to terminate, limit and prevent any right a Non-managing Member may have to withdraw from the Company under applicable law.

## 7.9 Meetings.

(a) Meetings. Meetings of the Members may be called at any time by the Manager. Any meeting shall be held at such place as may be specified in such notice.

(b) Notice of Meetings. Unless waived, written notice of the time and place of each meeting of the Members shall be given to each Member either by personal delivery or by mail at least ten (10) days before the meeting by the Member(s) calling such meeting. The notice need not specify the purposes of the meeting. Any Member, either before or after any meeting, may waive, in writing, any notice required to be given by this Agreement. In addition, the attendance of a Member at a meeting without protesting, prior to the commencement of the meeting, the lack of proper notice shall be deemed to be a waiver by such Member of notice of such meeting.

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(c) Telephone Meetings. Members may participate in a meeting by means of telephone conference or other similar communications equipment. Any Member participating in a meeting by these means shall be deemed present in person at the meeting.

(e) Minutes. A duly authorized Member shall keep minutes of each meeting of the Members, which shall include a record of attendance, actions determined to be taken by the Members, reports discussed, and any other pertinent information.

**7.10 Payment of Manager's Expenses.** The Manager shall be paid by the Company, upon the Manager's request, for all reasonable and necessary expenses directly or indirectly incurred by the Manager related to his management of the Company business.

**7.11 Indemnification of Members and Manager.** The Company hereby indemnifies to the fullest extent permitted under the Act any person who was or is a party or who is threatened to be made a party to any threatened, pending, or completed action or suit because he or she is or was a Member, Manager, or officer of the Company.

## **ARTICLE VIII**
**ACTIVITIES OF MEMBERS**

**8.1 Related Party Transactions.** No transaction or contract to which the Company is or may be a party shall be void, voidable or a breach of fiduciary responsibility for the reason that any Member or affiliate of any Member is a party. Upon approval of the Manager, the Company may enter into transactions and contracts with any Member or any affiliate of any Member.

**8.2 Indemnification.**

(a) No officers of the Company nor the Manager or any of its officers, directors, or employees, if any (collectively, "Indemnified Persons"), shall have any liability to the Company or any Member for any mistakes or errors in judgment or for any act or omission believed by it or them in good faith to be within or not opposed to the scope of the authority conferred upon it or them by this Agreement and shall have liability only for acts and omissions involving gross negligence or intentional wrongdoing.

(b) The fact that an Indemnified Person has obtained the advice of legal counsel that any act or omission by the Indemnified Person is not in willful disregard of its duties or that it is within the scope of the authority conferred upon the Indemnified Person by this Agreement shall be conclusive evidence that the Indemnified Person believed in good faith that such act or omission was not in willful disregard of its duties, or was within the scope of the authority conferred upon the Indemnified Person by this Agreement, as the case may be; but the

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Indemnified Person shall not be required to procure such advice to be entitled to the benefit of the exculpation or indemnification hereunder.

(c) The Company may indemnify and hold harmless the Indemnified Person against and from any personal loss, liability or damage incurred by it or them as a result of any act or omission in connection with the operation of the business of the Company (excluding acts or omissions for which an Indemnified Person is not protected hereunder pursuant to the terms of this Agreement), except that an Indemnified Person shall not in any way be excused from bearing as a Member the same portion of any such indemnification payment by the Company as the Member would bear of any other payment by the Company. The indemnification of the Indemnified Persons hereunder shall be limited to and recoverable only out of the assets of the Company. The Company, at the election of the Manager, may obtain liability insurance covering acts of any Indemnified Person to which indemnity is provided herein above, but may not insure an Indemnified Person for acts outside the scope of such indemnity.

**8.3 Confidential Information.** The Non-managing Members agree and acknowledge that any and all client lists, ideas, confidential business information, know-how, improvements, designs, developments, and intellectual property belonging to the Company are the exclusive property of the Company and shall remain the absolute and exclusive property of the Company. The Non-managing Members agree not to in any fashion, form or manner, divulge, use or communicate to any person, firm or entity in any manner whatsoever, any confidential information of any kind, nature or description concerning the business of the Company or the clients of the Company, either during or after the period in which any Non-managing Member is a Member of the Company. Any Non-managing Member agrees to immediately deliver all information of a confidential or proprietary nature to the Company upon termination of his status as a Non-managing Member of the Company, and to sign a sworn certification that that Member no longer possesses any confidential information belonging to the Company.

**8.5 Non-Disparagement.** The Non-managing Members agree that no Non-managing Member shall make any disparaging comments regarding the Company or any other Member, for any reason, both during their affiliation with the Company, or at any time after their affiliation with the Company is terminated, by either the Company or the Member.

## **ARTICLE IX ACCOUNTING**

### **9.1 Books and Records.**

(a) The books and records of the Company shall be kept in sufficient detail to determine the Profits or Losses and the federal income tax items of the Company for each period for which an allocation is to be made pursuant to this Agreement, as well as Net Cash Flow. The Manager shall cause such books and records to be

19

kept in sufficient detail so as to permit preparation of financial statements in accordance with generally accepted accounting methods and principles for such period.

(b) Such books and records shall be maintained at the principal place of business of the Company and shall be open for inspection and, at any requesting Member's expense, examination, verification or audit thereof by any Member or its duly authorized representative. The Manager shall cooperate with any Member in any such reasonable inspection, examination, verification or audit.

**9.2 Accounting Period.** The accounting period and taxable year of the Company shall be the calendar year.

**9.3 Accounting Method.** The Company shall conform to Generally Accepted Accounting Principles for all accounting methods, including any valuation purposes.

**9.4 Accounting Basis.** The Company shall prepare its financial statements using the same method of accounting as it uses to prepare its federal income tax returns.

**9.5 Tax Matters.**

(a) For the purposes of Subchapter C of Chapter 63 of the Code, as amended, GENESIS DEVELOPMENT MANAGEMENT, LLC shall serve as the "Tax Matters Partner" of the Company. Each Member, by his or her execution of this Agreement, consents to GENESIS DEVELOPMENT MANAGEMENT, LLC serving as the Tax Matters Partner and agrees upon request of GENESIS DEVELOPMENT MANAGEMENT, LLC to execute, certify, acknowledge, deliver, swear to, file and record at the appropriate public offices such further documents as may be necessary or appropriate to evidence such consent. GENESIS DEVELOPMENT MANAGEMENT, LLC, in its capacity as the Tax Matters Partner, is hereby authorized but not required:

(i) to enter into any settlement agreement with the Internal Revenue Service with respect to any tax audit or judicial review, which settlement agreement may expressly state that such agreement shall bind the other Members, except that such settlement agreement shall not bind any Member who (within the time prescribed pursuant to the Code and the Regulations promulgated thereunder) files a statement with the Internal Revenue Service providing that the Tax Matters Partner shall not have the authority to enter into a settlement agreement on the behalf of such Member;

(ii) if a notice of a final administrative adjustment at the Company level of any item required to be taken into account by a Member for tax purposes (a "final adjustment") is mailed to the Tax Matters Partner, to seek judicial

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review of such final adjustment, including the filing of a petition for readjustment with the Tax Court, the District Court of the United States for the district in which the Company's principal place of business is located or the United States Claims Court;

- (iii) to intervene in any action by any other Member for judicial review of a final adjustment;
- (iv) to file a request for an administrative adjustment with the Internal Revenue Service at any time and, if any part of such request is not allowed by the Internal Revenue Service, to file a petition for judicial review with respect to such request;
- (v) to enter into an agreement with the Internal Revenue Service to extend the period for assessing any tax which is attributable to any item required to be taken into account by a Member for tax purposes or an item affected by such item; and
- (vi) to take any other action on behalf of the Members of the Company in connection with any administrative or judicial tax proceeding to the extent permitted by applicable law or regulations.(f) The Company shall indemnify and reimburse the Tax Matters Partner for all expenses, including legal and accounting fees, claims, liabilities, losses and damages incurred by him, in its capacity as the Tax Matters Partner of the Company, in connection with any administrative or judicial proceeding with respect to the tax liability of the Company or the Members. The taking of any action and the incurring of any expense by GENESIS DEVELOPMENT MANAGEMENT, LLC in its capacity as the Tax Matters Partner, in connection with any such proceeding, except to the extent required by law, is a matter in the sole discretion of the Tax Matters Partner and the provisions on protection and indemnification of the Manager set forth in §8.4 above shall be fully applicable to GENESIS DEVELOPMENT MANAGEMENT, LLC when acting in its capacity as the Tax Matters Partner.

## LIMITATIONS ON TRANSFER

### 10.1 Dispositions of Interests.

(a) A Non-managing Member may not make an assignment, transfer or other disposition (voluntarily, involuntarily or by operation of law) (a '**Transfer**') of all or any portion of its Interest, nor pledge, mortgage, hypothecate, grant a security interest in, or otherwise encumber (an '**Encumbrance**') all or any portion of its Interest, except with the consent of the Manager, which it may grant or withhold in its sole and absolute discretion, and upon terms and

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conditions as it may require, again, in its sole and absolute discretion. Any attempted Transfer of all or any portion of an Interest, other than in strict accordance with this Section, shall be void. A Person to whom an Interest is Transferred may be admitted to the Company as a Non-managing Member only as provided in this Section with the consent of the Manager, which may be given or withheld in its sole and absolute discretion. In connection with any Transfer of a Interest or any portion thereof and any admission of an assignee as a Member, the Non-managing Member making such Transfer and the Assignee shall furnish the Manager with such documents regarding the Transfer as the Manager may request including a copy of the Transfer instrument, a ratification by assignee of this Agreement (if the assignee is to be admitted as a Member) and a legal opinion that the Transfer complies with all applicable federal and state securities laws and will not cause the Company to be terminated under Section 708 of the Code.

(b) Notwithstanding anything in Section 10.1(a), the Manager may, in its sole and absolute discretion, and upon agreement with a Non-managing Member, agree to repurchase the Interests of said agreeing Non-managing Member's, to terminate said agreeing Non-managing Member's Interests in the Company.

(c) Unauthorized Transfers. Any purported Transfer or Encumbrance of an Interest will be null and void and of no force or effect whatsoever (with respect to a Transfer, an "Unauthorized Transfer"). If, however, the Company is required under Georgia law or other applicable Law (including any Bankruptcy Law, law of successions or donations, or by reason of a separation agreement or divorce, equitable or community or marital property distribution, judicial decree, or other court Order concerning the division or partition of property between spouses), as reasonably determined by the Manager or by a court of competent jurisdiction, to recognize an Unauthorized Transfer of all or part of an Interest the transferee will have only the rights of a Non-managing Member with respect to that Transferred Interest. Any Distributions with respect to the Transferred Interest may be applied by the Company (without limiting any other legal or equitable rights of the Company) towards the satisfaction of any debts, obligations, or liabilities for damages that the transferor or transferee of the Transferred Interest may have to the Company.

(d) Bankruptcy, Resignation or Withdrawal Members. Except as provided herein, a Non-managing Member does not have the right to resign as a Member or withdraw capital from the Company, including not having any right to receive Distributions upon resigning as a Member. This section is intended to apply in lieu of any withdrawal rights a Member might have under law.

## ARTICLE XI

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# **WITHDRAWAL, DISSOLUTION, AND TERMINATION**

**11.1 Dissolution Events.** The Company shall be dissolved, and all membership interests, of all Members, shall be terminated, upon the occurrence of any of the following events (an "Event of Termination"):

- (a) The occurrence of one or more events specified in this Agreement as causing the dissolution of the Company;
- (b) The entry of a decree of judicial dissolution of the Company;
- (c) The sale or disposition by the Company of all or substantially all of the assets of the Company; or
- (d) Or other events which shall permit the Manager, in its reasonable discretion to dissolve the Company.
- (e) Notwithstanding any of the foregoing, no other event of any kind shall cause this Company to dissolve.

# **11.2 Winding Up, Liquidation, and Distribution of Assets.**

- (a) Upon election of dissolution, the Company business shall be terminated, its liabilities discharged, and its property distributed as hereinafter described, and the Company shall be liquidated. A reasonable period of time shall be allowed for the orderly termination of the Company business, discharge of its liabilities, and distribution of its remaining property, subject to Sections 11.2 and 11.3 and within the periods of time provided in Section 11.3(b).
- (c) For purposes of the termination of the Company business, discharge of its liabilities, and distribution of its remaining property, the Manager shall select one or more persons to act as the liquidation manager (the "Liquidation Manager") and have the exclusive power and authority to act on behalf of the Company, to terminate the Company business, to sell and convey any real or personal property of the Company for such consideration and upon such terms and conditions as the Liquidation Manager deems appropriate, to discharge the Company liabilities, to establish any reserves that the Liquidation Manager deems reasonably necessary for any contingent or unforeseen liabilities or obligations of the Company, to pay expenses, debts, and liabilities of the Company, and to distribute its property. If more than one person is selected to serve as Liquidation Manager, any disagreements that cannot be resolved between them shall be decided by the Manager. The Manager may appoint itself as the Liquidation Manager.
- (d) The Liquidation Manager shall apply all Company property to pay all expenses of liquidation and to satisfy all debts and liabilities of the Company as provided by

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the relevant Georgia Statutes and distribute any remaining property.

(e) All remaining sums shall then be distributed pursuant to Section 6.3.

### **11.3 Final Distribution.**

(a) All cash and other property remaining for distribution to Members pursuant to Section 11.2 following satisfaction of all debts and liabilities after an Event of Termination shall be divided among and distributed to the Members in the same manner described in Section 6.3. The foregoing provision and the other provisions of this Agreement relating to distributions are intended to comply with Regulation §1.704-1(b)(2)(ii)(b) and shall be interpreted and applied in a manner consistent with such Regulation.

(b) All distributions under this Section 11.3 shall be made not later than the end of the Company's taxable year in which the Event of Termination occurs or, if later, the ninetieth (90th) calendar day following the Event of Termination; provided that (i) reserves determined by the Liquidation Manager as reasonably required to provide for liabilities (contingent or otherwise) of the Company need not be distributed until such liabilities are satisfied and (ii) installment obligations and other amounts owed to the Company and not collected prior to the end of such taxable year or ninetieth (90th) calendar day following such taxable year need not be distributed until received; and provided further that such retention of funds is permitted by and shall comply with the provisions of Regulation §1.704-1(b). Distributions pursuant to this Section 11.3 may, in the discretion of the Liquidation Manager, be distributed to a trust established for the benefit of the Members for the purposes of liquidating Company assets, collecting amounts owed to the Company, and paying any contingent or unforeseen liabilities or obligations of the Company or of the Members arising out of or in connection with the Company. The assets of any such trust shall be distributed to the Members from time to time, in the reasonable discretion of the Liquidation Manager, in the same proportions as the amount distributed to such trust by the Company would otherwise have been distributed to the Members pursuant to this Agreement.

(c) Said dissolution shall terminate all Non-managing Members' Interests in the Company, upon completion of final distributions.

**11.4 Deemed Distribution and Recontribution.** Notwithstanding any other provisions of this Article XI, in the event the Company is liquidated within the meaning of Regulation §1.704-1(b)(2)(ii)(g) but no Event of Termination has occurred, Company property shall not be liquidated, the Company's liabilities shall not be paid or discharged, and the Company's affairs shall not be wound up. Instead, solely for federal income tax purposes, the Company shall be deemed to have distributed its Company property in kind to the Members who shall be deemed to have assumed and taken subject to all Company liabilities, all in accordance

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with their respective capital accounts. Immediately thereafter, the Members shall be deemed to have re-contributed the Company property in kind to the Company, which shall be deemed to have assumed and taken subject to all such liabilities.

## ARTICLE XII
REPRESENTATIONS AND WARRANTIES OF MEMBERS

Each of the Members, either undersigned or signed in their respective Subscription Agreements, hereby represents and warrants as follows:

(a) The Member has sufficient knowledge and experience to evaluate the merits and risks of its investment in the Company;

(b) The Member has been provided with, or given reasonable access to, full and fair disclosure of all information material to its investment in the Company;

(c) The Member understands that no market is likely to exist for his or her interest in the Company, and it does not anticipate the need to sell its interest in the Company in the foreseeable future;

(d) The Member is purchasing its interest in the Company for its own account for investment purposes only and not with a view to distribution;

(e) The Member has not purchased its interest as a result of any general solicitation or general advertising, including advertisements, articles, notices, or other communications published in any newspaper, magazine, or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

(f) The Member understands that the offering of membership interests in the Company will not be registered under the Securities Act of 1933, as amended, nor the securities law of any state, and accordingly these securities may not be offered, sold, pledged, hypothecated, or otherwise transferred or disposed of in the absence of registration or the availability of an exemption from registration under the Securities Act of 1933, as amended, and any applicable state securities law. The Member further understands that the Company is under no obligation to register its membership interest on his or her behalf or to assist him, her or it in complying with an exemption from registration; and

(g) The Member can withstand the loss of its entire investment without suffering serious financial difficulties.

## ARTICLE XIII
MISCELLANEOUS

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**13.1 Governing Law.** This Agreement shall be governed by and construed in accordance with the laws of the State of Georgia. The parties agree to a “forum selection clause” that any and all disputes shall be heard in federal or state court in Georgia.

**13.2 Inurement.** This Agreement shall be binding upon, and inure to the benefit of, all parties hereto, their personal and legal representatives, guardians, successors, and assigns to the extent, but only to the extent, that assignment is provided for, in accordance with, and permitted by, the provisions of this Agreement.

**13.3 No Limit on Personal Activities.** Subject to the terms of this Agreement, nothing shall be construed to limit in any manner the members or their respective agents, servants, and employees in carrying out their own respective businesses or activities.

**13.4 Further Assurances.** The members and the Company agree that they and each of them will take whatever action or actions are deemed by counsel to the Company to be reasonably necessary or desirable from time to time to effectuate the provisions or intent of this Agreement, and to that end the members and the Company agree that they will execute, acknowledge, seal, and deliver any further instruments or documents which may be necessary to give force and effect to this Agreement or any of the provisions hereof or to carry out the intent of this Agreement or any of the provisions hereof.

**13.5 Gender and Headings.** Throughout this Agreement, where such meanings would be appropriate: (a) the masculine gender shall be deemed to include the feminine and the neuter and vice versa, and (b) the singular shall be deemed to include the plural and vice versa. The headings herein are inserted only as a matter of convenience and reference, and in no way define or describe the scope of the Agreement or the intent of any provisions hereof.

**13.6 Entire Agreement.** The Members hereby represent and warrant that they have not made, granted or entered into any agreement in conflict herewith. This Agreement may not be changed or altered in any way unless executed, in writing, by a majority of the members. This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties, and representations among the parties hereto with respect to the Company and the subject matter hereof and supersedes all prior negotiations, discussions, undertakings, and agreements between the parties, and there are no promises, agreements, conditions, understandings, warranties, or representations, oral or written, express or implied, among them other than as set forth herein.

**13.7 Severability.** In the event that any part, article, section, paragraph, or clause of this Agreement shall be held to be indefinite, invalid, or otherwise unenforceable, the entire Agreement shall not fail on account thereof, and the balance of the Agreement shall continue in full force and effect.

**13.8 Amendments.** This Agreement may not be modified or amended except with the written consent of the majority of the Interests of the Non-managing Members.

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**13.9 Execution of Additional Instruments.** Each member hereby agrees to execute and deliver to the Company within five (5) days after receipt of the Company's written request therefor, such other and further statements of interest and holdings, designations, powers of attorney, and other instruments as the Company deems necessary to comply with any laws, rules, or regulations.

**13.10 Title to Company Properties.** Title to all Company properties shall be held in the name of the Company.

**13.11 Membership Interests.** Each of the members and any substituted or additional members admitted hereby covenant, acknowledge, and agree that all membership interests in the Company shall for all purposes be deemed personalty and shall not be deemed realty or any interest in the real or personal property owned by the Company.

**13.12 Rights and Remedies Cumulative.** The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise.

**13.13 Not for Benefit of Creditors.** The provisions of this Agreement are intended only for the regulation of relations among members and the Company. This Agreement is not intended for the benefit of nonmember creditors and does not grant any rights to, or confer any benefits on, nonmember creditors or any other person who is not a member.

# **13.14 Reserved.**

**13.15 Counterparts.** This Agreement may be executed in separate multiple counterparts which together shall constitute one Agreement, binding on all signatories, notwithstanding that they are not signatories to the same Agreement.

**13.16 Attorneys' Fees; Disputes.** If there is any disagreement regarding this Operating Agreement, and if the parties engage in litigation over the terms of this Agreement, then the prevailing party is entitled to recover all of its legal fees and costs against the losing party.

**13.17 Notices.** Any notice to be given hereunder by either party to the other, may be effected either by personal delivery in writing, by facsimile transmission, or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed to the parties at the following addresses:

GENESIS DEVELOPMENT CAPITAL, LLC  
1891 Spring Ave NW,  
Atlanta, GA 30318

Each party may change its or his address by giving written notice in accordance with this paragraph. All notices shall be deemed to have been given as of the dates delivered or

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mailed.

**13.20 Authority of Majority Interest-Holders.** Any differences of opinion, imperfection in this Agreement, or any power granted or implied in this Agreement shall be resolved in favor of the majority interest-holder.

**13.21 Electronic Signatures.** The parties agree that the electronic signature of a member to this Agreement shall be as valid as an original signature of such member and shall be effective to bind such member to this Agreement. The parties agree that any electronically signed document (including this Agreement) shall be deemed (i) to be 'written' or 'in writing,' (ii) to have been signed and (iii) to constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. Such paper copies or 'printouts,' if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent and under the same conditions as other original business records created and maintained in documentary form. Neither party shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule. For purposes hereof, 'electronic signature' means a manually-signed original signature that is then transmitted by electronic means; 'transmitted by electronic means' means sent in the form of a facsimile or sent via the internet as a 'pdf' (portable document format) or other replicating image attached to an e-mail message; and, 'electronically signed document' means a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

**13.22 Alternative Dispute Resolution.** The parties hereto agree, in order to save the cost of litigation in the event of a dispute arising out of the terms of this Operating Agreement, that in the event of a dispute, any such dispute shall be resolved via mandatory and binding arbitration according to the rules of the American Arbitration Association, to occur exclusively in Fulton County, Georgia. Any awards, judgments or orders rendered by said arbitration shall be permitted to be filed and enforced in the Courts of Fulton County, Georgia.

[SIGNATURE PAGES TO FOLLOW]

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IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, has duly executed this Agreement as of this 4th day of November, 2022.

**MANAGING MEMBER:**

GENESIS DEVELOPMENT MANAGEMENT, LLC
An Ohio Limited Liability Company

By: Maranda Walker

Its: Authorized Representative

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# **SCHEDULE A**

# **Members' Value of Services, Initial Capital Contributions; Interests**

# **Managing Member**

# **Member:**

# **Capital Contribution:**

| Genesis Development Management, LLC 1891 Spring Ave NW, Atlanta, GA 30318 | $0.00 |
| --- | --- |

# **Non-managing Members**

| Member | Contributed | Interests (Total 333.33) | Percentage of Non-Managing Interests |
| --- | --- | --- | --- |

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![img-0.jpeg](img-0.jpeg)

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**IN WITNESS WHEREOF**, the undersigned has executed this Schedule A to the Operating Agreement of GENESIS DEVELOPMENT CAPITAL, LLC, as may be amended as per said operating agreement from time to time, as of the 4th day of November 2022.

**MANAGING MEMBER:**

GENESIS DEVELOPMENT MANAGEMENT, LLC
An Ohio Limited Liability Company

By: Maranda Walker

Its: Authorized Representative

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# **NON-MANAGING MEMBERS:**

By:

Its:

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## Allocation of Profits and Losses

**Schedule B.1 Allocation of Profits and Losses.** After giving effect to the special allocations set forth in B.2 and B.3 hereof, Profits and Losses shall be allocated to the Members in proportion to their Membership Percentage Interests. In no instance shall the allocation of profits and losses under this Schedule B by other than Membership Percentage Interest, as that term is defined above, and any reference to Interest herein shall mean Membership Percentage Interest. The provisions of Schedule B shall not have any effect on distributions as described in Section 6.1 above and are solely for purposes of tax allocation.

**Schedule B.2 Special Allocations.** The following special allocations shall be made in the following order:

(a) **Limitation on Allocation of Losses.** To the extent the allocation of Losses under B.1 or the second sentence of this B.2 (a) would cause any Member to have an Adjusted Capital Account deficit at the end of any taxable year of the Company, then such Losses shall not be allocated to such Members. Such Losses shall then, subject to the first sentence of this B.2 (a), be specially allocated to the remaining Members in proportion to the remaining Members' respective Membership Percentage Interests.

(b) **Profit Chargeback.** To the extent any Losses have been allocated to any Members under the second sentence of B.2 (a), then Profits shall thereafter first be specially allocated to such Members in proportion to their respective Membership Percentage Interests until the Profits specially allocated under this B.2 (b) to each such Member equals the Losses specially allocated to each such Member under the second sentence of B.2 (a).

(c) **Minimum Gain Chargeback.** Except as otherwise provided in Regulation §1.704-2(f), notwithstanding any other provision of this Exhibit B, if there is a net decrease in Partnership Minimum Gain during any Company fiscal year, each Member shall be specially allocated items of Company income and gain for such fiscal year (and, if necessary, subsequent fiscal years) in an amount equal to such Member's share of the net decrease in Partnership Minimum Gain, determined in accordance with Regulation §1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Regulation §1.704-2(f)(6) and §1.704-2(j)(2). This B.2(c) is intended to comply with the minimum gain chargeback requirement in Regulation §1.704-2(f) and shall be interpreted consistently therewith.

(d) **Partner Minimum Gain Chargeback.** Except as otherwise provided in Regulation §1.704-2(i)(4), notwithstanding any other provisions of this Exhibit B, if there is a net decrease

34

in Partner Nonrecourse Debt Minimum Gain attributable to a Partner Nonrecourse Debt during any Company fiscal year, each Member who has a share of the Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulation §1.704-2(i)(5), shall be specially allocated items of Company income and gain for such fiscal year (and, if necessary, subsequent fiscal years) in an amount equal to such Member's share of the net decrease in Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulation §1.704-2(i)(4). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Regulation §1.704-2(i)(4) and §1.704-2(j)(2). This B.2(d) is intended to comply with the minimum gain chargeback requirement in Regulation §1.704-2(i)(4) and shall be interpreted consistently there.

(e) Qualified Income Offset. In the event any Member unexpectedly receives any adjustments, allocations, or distributions described in Regulation §1.704-1(b)(2)(ii)(d)(4) through (6), items of Company income and gain shall be specially allocated to each such Member in an amount and manner sufficient to eliminate, to the extent and in the manner required by Regulation §1.704-1(b)(2)(ii)(d), the Adjusted Capital Account deficit of such Member as quickly as possible, provided that an allocation pursuant to this B.2(e) shall be made if and only to the extent that such Member would have an Adjusted Capital Account deficit after all other allocations provided for in this Exhibit B have been tentatively made as if this B.2(e) were not in the Agreement.

(f) Gross Income Allocation. In the event any Member has a deficit Capital Account at the end of any Company fiscal year which is in excess of the sum of (i) the amount, if any, such Member is obligated to restore and (ii) the amount such Member is deemed to be obligated to restore pursuant to the penultimate sentences of Regulation §1.704-2(g)(1) and §1.704-2(i)(5), each such Member shall be specially allocated items of Company income and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this B.2(f) shall be made if and only to the extent that such Member would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Exhibit B have been tentatively made as if this 2(f) and B.2(e) hereof were not in the Agreement.

(g) Nonrecourse Deductions. Nonrecourse Deductions for any fiscal year shall be specially allocated among the Members in the same manner as Losses are allocated for such fiscal year.

(h) Partner Nonrecourse Deductions. Any Partner Nonrecourse Deductions for any fiscal year shall be specially allocated to the Member who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable in accordance with Regulation §4-2(i)(1).

(i) §754 Adjustment. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to §734(b) or §743(b) of the Code is required, pursuant to Regulation §1.704-1(b)(2)(iv)(m)(2) or (4), to be taken into account in determining Capital Accounts as the

35

result of a distribution to a Member in complete liquidation of such Member's interest in the Company, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Members in accordance with their interests in the Company in the event that Regulation §1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom such distribution was made in the event that Regulation §1.704-1(b)(2)(iv)(m)(4) applies.

(j) Allocations Relating to Taxable Issuance of Partnership Interest. Any income, gain, loss, or deduction realized as a direct or indirect result of the issuance of an interest in the Company by the Company to a Member (the "Issuance Items") shall be allocated among the Members so that, to the extent possible, the net amount of such Issuance Items together with all other allocations under this Agreement to each Member, shall be equal to the net amount that would have been allocated to each such Member if the Issuance Items had not been realized.

**Schedule B.3 Curative Allocations.** The allocation-set forth in B.2(c) - (i) hereof (the "Regulatory Allocations") are intended to comply with certain requirements of the Regulations. It is the intent of the Members that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of Company income, gain, loss, or deduction pursuant to this B.3. Therefore, notwithstanding any other provision of this Exhibit B (other than the Regulatory Allocations), the Manager shall make such offsetting special allocations of income, gain, loss, or deduction in whatever manner they determine appropriate so that, after such offsetting allocations 're made, each Member's Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory Allocations were not part of the Agreement and the Company items were allocated pursuant to Exhibits B.1 and B.4. In exercising their discretion under this B.3, the Manager shall take into account future Regulatory Allocations under B.2(c) and B.2(d) that, although not yet made, are likely to offset other Regulatory Allocations previously made under B.2(g) and B.2(h).

**Schedule B.4 Other Allocation Rules.**

(a) Generally, all Profits and Losses allocated to the Members shall be allocated among them in proportion to their Membership Percentage Interests. In the event additional Members are admitted to the Company on different dates during any fiscal year, the Profits (or Losses) allocated to the Members for each such fiscal year shall be allocated among the Members in proportion to the Interests each holds from time to time during such fiscal year in accordance with §706 of the Code, using any convention permitted by law and selected by the Manager.

(b) For purposes of determining the Profits, Losses, or any other items allocable to any period, Profits, Losses, and any such other items shall be determined on a daily, monthly, or other basis, as determined by the Manager using any permissible method under §706 of the Code and the Regulations thereunder.

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(c) The Members are aware of the income tax consequences of the allocations made by this Exhibit B and hereby agree to be bound by the provisions of this Exhibit B in reporting their shares of Company income and loss for income tax purposes.

(d) Solely for purposes of determining a Member's proportionate share of the "excess nonrecourse liabilities" of the Company within the meaning of Regulation §1.752-3(a)(3), the Members' interests in Partnership profits are the same as the Members' Interests.

(e) To the extent permitted by Regulation §1.704-2(h)(3), the Manager shall endeavor to treat distributions of Net Cash Flow as having been made from the proceeds of a Nonrecourse Liability or a Partner Nonrecourse Debt only to the extent that such distributions would cause or increase an Adjusted Capital Account deficit for any Member.

**Schedule B.5 Tax Allocations: Code §704(c).** In accordance with §704(c) of the Code and the Regulations thereunder, income, gain, loss, and deduction with respect to any property contributed to the capital of the Company shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal income tax purposes and its initial Gross Asset Value.

In the event the Gross Asset Value of any Company asset is adjusted pursuant to subsection (ii) of the definition of "Gross Asset Value", subsequent allocations of income, gain, loss, and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in the same manner as under §704(c) of the Code and the Regulations thereunder.

Any elections or other decisions relating to such allocations shall be made by the Manager in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this B.5 are solely for purposes of federal, state, and local taxes and shall not affect, or in any way be taken into account in computing, any Member's Capital Account or share of Profits, Losses, other items, or distributions pursuant to any provision of this Agreement.

**Schedule B.6 Tax Effect of Allocations.** Except as otherwise required under Exhibit B.5 above, the allocation of Profits and Losses to any Member under this Exhibit B shall be deemed an allocation to that Member of the same proportionate part of each separate item of Company taxable income, gain, loss, deduction or credit which comprise such Profits and Losses, including, without limitation, any unrealized receivable or substantially appreciated inventory items under §751 of the Code. The Members are aware of the income tax consequences of the allocations made pursuant to this Exhibit B and hereby agree to be bound by the provisions of this in reporting their respective shares of Member income, gain, loss, deduction and credit for income tax purposes.

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**Exhibit B.7 Compliance with the Code and Regulations as Amended or Modified From Time to Time.** The allocations of income, gain, loss, deduction and credit provided for in this Exhibit B are intended to have substantial economic effect for purposes of §704(b)(2) of the Code and the Regulations thereunder as the Code and Regulations may hereafter be amended, modified or interpreted. Accordingly, notwithstanding anything contained in this Exhibit B to the contrary, the provisions of this Exhibit B shall be interpreted and applied in accordance with any amendments, modifications or interpretations which may hereafter be made with respect to the provisions of the Code or Regulations which serve as the basis for any provisions of this Exhibit B.

### **Schedule B.8 Definitions**

Unless the context otherwise requires, the terms defined below as used in this Exhibit B (and elsewhere in this Agreement) shall have the following meanings:

- (a) Adjusted Capital Account. "Adjusted Capital Account" shall at any time mean, with respect to any Member, such Member's Capital Account at such time (i) increased by any amounts such Member is obligated to restore or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations §1.704-2(g)(1) and §1.704-2(i)(5) and (ii) decreased by the items described in Regulation §1.704-1(b)(2)(ii)(d)(4) through (6). The foregoing definition of Adjusted Capital Account is intended to comply with the provisions of Regulation §1.704-1(b)(2)(ii)(d) and shall be interpreted consistent therewith.
- (b) Capital Account. "Capital Account" shall mean with respect to each Member the Capital Account maintained for such Member in accordance with the following provisions:
  - (i) To each Member's Capital Account there shall be credited such Member's Capital Contributions, such Member's distributive share of Profits and any items in the nature of income or gain which are specially allocated to such Member pursuant to Exhibit A hereof, and the amount of any Company liabilities assumed by such Member in connection with Company property distributed to such Member or which are secured by any Company property distributed to such Member.
  - (ii) To each Member's Capital Account there shall be debited the amount of cash and the Gross Asset Value of any Company property distributed to such Member pursuant to any provision of this Agreement, such Member's distributive share of losses and any items in the nature of expenses or losses which are specially allocated to such Member pursuant to Exhibit A hereof, and the amount of any liabilities of such Member assumed by the Company in connection with property contributed by such Member to the Company or which are secured by any property contributed by such Member to the Company.

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(iii) In the event all or a portion of the interest in the Company is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred interest.

(iv) In determining the amount of any liability for purposes of subsections (i), (ii), and (iii) above, there shall be taken into account §752(c) of the Code and any other applicable provisions of the Code and Regulations.

The foregoing provisions and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulation §1.704-1(b) and shall be interpreted and applied in a manner consistent with such Regulation. In the event the Manager shall determine that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including, without limitation, debits or credits relating to liabilities that are secured by contributed or distributed property or that are assumed by the Company or any Member in connection with contributed or distributed property), are computed in order to comply with such Regulation, the Manager may make such modification, provided that it is not likely to have a material effect on the amounts distributable to any Member upon the dissolution of the Company. The Manager also shall (i) make any adjustments that are necessary and appropriate to maintain equality between the Capital Accounts of the Members and the amount of Company capital reflected on the Company's balance sheet as computed for book purposes, in accordance with Regulation §1.704-1(b)(2)(iv)(g) and (ii) make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Regulation §1.704-1(b).

(c) Capital Contributions. "Capital Contributions" shall mean, with respect to any Member, the amount of money and the initial Gross Asset Value of any property (other than money) contributed to the Company with respect to the interests held by such Member. The principal amount of a promissory note which is not readily traded on an established securities market and which is contributed to the Company by the maker of the note (or a person related to the maker of the note within the meaning of Regulation §1.704-1(b)(2)(ii)(c)) shall not be included in the Capital Account of any Member until the Company makes a taxable disposition of the note or until (and to the extent) principal payments are made on the note, all in accordance with Regulation §1.704-1(b)(2)(iv)(d)(2).

(d) Code. "Code" shall mean the Internal Revenue Code of 1986, as amended (or any corresponding provisions of succeeding law).

(e) Depreciation. "Depreciation" shall mean for any period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for such period, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such period, Depreciation for such asset shall be an amount which bears the same

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ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such period bears to such beginning adjusted tax basis; provided, however, that if the adjusted basis for federal income tax purposes of an asset at the beginning of such period is zero, depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Manager.

(f) Gross Asset Value. "Gross Asset Value" shall mean, with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows:

(i) The initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as determined by the contributing Member and the Company;

(ii) The Gross Asset Values of all Company assets shall be adjusted to equal their respective gross fair market values, as determined by the Members, as of the following times: (a) the acquisition of an additional interest in the Company by any new or existing Member in exchange for more than a de minimis capital contribution; (b) the distribution by the Company to a Member of more than a de minimis amount of Company property as consideration for an interest in the Company; and (c) the liquidation of the Company within the meaning of Regulation §1.704-1(b)(2)(ii)(g); provided, however, that the adjustments pursuant to clauses (a) and (b) above shall be made only if the Manager reasonably determine that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company;

(iii) The Gross Asset Value of any Company asset distributed to any Member shall be adjusted to equal the gross fair market value of such asset on the date of distribution as determined by the distributee and the Company; and

(iv) The Gross Asset Values of Company assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to §734(b) or §743(b) of the Code, but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulation §1.704-1(b)(2)(iv)(m); provided, however, that Gross Asset Values shall not be adjusted under this subsection (iv) to the extent the Manager determine that an adjustment pursuant to subsection (ii) hereof is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this subsection (iv).

If the Gross Asset Value of an asset has been determined or adjusted pursuant to subsection (i), (ii), or (iv) hereof, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses.

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- (g) Minimum Gain. 'Minimum Gain' shall have the meaning set forth in Regulation §1.704-2(b)(2) and §1.704-2(d).
- (h) Nonrecourse Deductions. 'Nonrecourse Deductions' shall have the meaning set forth in Regulation §1.704-2(b)(1).
- (i) Nonrecourse Liability. 'Nonrecourse Liability' shall have the meaning set forth in Regulation §1.704-2(b)(3).
- (j) Partner Nonrecourse Debt. 'Partner Nonrecourse Debt' shall have the meaning set forth in Regulation §1.704-2(b)(4).
- (k) Partner Nonrecourse Debt Minimum Gain. 'Partner Nonrecourse Debt Minimum Gain' shall mean an amount with respect to each Partner Nonrecourse Debt equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulation §1.704-2(i)(3).
- (l) Partner Nonrecourse Deductions. 'Partner Nonrecourse Deductions' shall have the meaning set forth in Regulation §1.704-2(i)(1) and §1.704-2(i)(2).
- (m) Partnership Minimum Gain. 'Partnership Minimum Gain' shall have the meaning set forth in Regulation §1.704-2(b)(2) and §1.704-2(d).
- (n) Profits and Losses. 'Profits' and 'Losses' shall mean, for any period, an amount equal to the Company's taxable income or loss for such period, determined in accordance with §703(a) of the Code (for this purpose, all items of income, gain, loss, or deduction required to be stated separately pursuant to §703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments:
  - (i) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits and Losses hereunder shall be added to such taxable income or loss;
  - (ii) Any expenditures of the Company described in §705(a)(2)(B) of the Code or treated as Code §705(a)(2)(B) expenditures pursuant to Regulation §1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Profits or Losses hereunder shall be subtracted from such taxable income or loss;
  - (iii) In the event the Gross Asset Value of any Company asset is adjusted pursuant to subsections (ii) or (iii) under the definition of 'Gross Asset Value', the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing

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Profits and Losses;
(iv) Gain or Loss resulting from any disposition of Company property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value;
(v) In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such fiscal year or other period;
(vi) To the extent an adjustment to the adjusted tax basis of any company asset pursuant to §734(b) or §743(b) of the Code is required, pursuant to Regulation §1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Member's interest in the Company, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes of computing Profits or Losses; and
(vii) Notwithstanding the foregoing, any items which are specially allocated pursuant to B.2 and B.3 of this Exhibit B hereof shall not be taken into account in computing Profits or Losses.

The amounts of the items of Company income, gain, loss, or deduction available to be specially allocated pursuant to B.2 and B.3 of this Exhibit B hereof shall be determined by applying rules analogous to those set forth above.

(o) Regulations. "Regulations" shall mean the Income Tax Regulations, including Temporary Regulations, promulgated under the Code; as such regulations may be amended (including corresponding provisions of succeeding regulations). Regulations shall also mean Proposed Regulations but only to the extent the Manager chooses to follow such Proposed Regulations.

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**Attachment 5:** `gdpsubagreement2.pdf`

**CONFIDENTIAL**

Name: _________________________

# **GENESIS DEVELOPMENT CAPITAL, LLC**

A Georgia Limited Liability Company

**INVESTOR**

**SUBSCRIPTION**

**BOOKLET**

This Subscription Booklet is utilized for the offering of investments in interests in GENESIS DEVELOPMENT CAPITAL, LLC under the Regulation Crowdfunding Exemption under the Securities Act of 1933, as amended, and may not be owned by any investor who would cause the Company to violate such an offering.

# **GENESIS DEVELOPMENT CAPITAL, LLC**
**(THE "COMPANY")**

# **DIRECTIONS FOR THE COMPLETION**
**OF THE SUBSCRIPTION DOCUMENTS**

Investors must complete all of the subscription documents contained in this booklet in exactly the manner described below. For purposes of these subscription documents, the "Investor" is the person or entity for whom the LLC Membership Interests are being purchased. Another person with investment authority may execute the subscription documents on behalf of the Investor, but should indicate the capacity in which it is doing so and the name of the Investor.

1. *Subscription Agreement:*

(a) Review the amount of your investment and Interests to be purchased on page 1 and ensure that they are accurate.

(b)

(b) Provide the information requested and date, print the name of the Investor, and sign (and print name, capacity and title, if applicable) on page 13.

2. *Delivery of Subscription Documents:*

Please return all completed and signed documents to GENESIS DEVELOPMENT CAPITAL, LLC at the following address, or if you have used electronic means, please confirm signing by informing the Company:

GENESIS DEVELOPMENT CAPITAL, LLC
1891 Spring Ave NW,
Atlanta, GA 30318
Website: www.thegdpartners.com

3. *Payment of Initial Capital Contribution:*

The Investor shall pay the amount of the Investor's initial capital contribution for its subscription by certified check or wire transfer of immediately available funds pursuant to instructions to be provided by the Manager. The Investor will receive a capital call for any remaining amount of his/her/its Capital Commitment from the Manager upon the Company's receipt of subscriptions for the Minimum Offering Amount.

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# SUBSCRIPTION AGREEMENT

## GENESIS DEVELOPMENT CAPITAL, LLC

THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is made on the date set forth on the Signature Page hereof by and between GENESIS DEVELOPMENT CAPITAL, LLC, a Georgia limited liability company (the “Company”), and the person(s) set forth on the Signature Page hereto (“Investor”).

### BACKGROUND:

Investor is familiar with the Company’s business plan and understands both the potential benefits and the potential risk of an investment in the Company and who desires to invest in the Company.

NOW, THEREFORE, and in consideration of the mutual covenants and promises hereinafter set forth, the Company and Investor hereby agree as follows:

1.  ***Purchase of Interest.*** The Company hereby agrees to sell, and Investor agrees to purchase and pay for, a limited liability company interest in the Company (the “Interests”) in the total amount of $__________, constituting __________ Interests of the Company, and (assuming the Maximum Offering is achieved) __________% of the Member interests in the Company. The purchase of the Interest is referred to in this Agreement as the “Investment.”

2.  ***Investor Representations.*** Investor makes the following agreements, representations, warrants, acknowledgments and declarations to the Company, and any representatives, owners, officers, or agents of the Company as follows:

(a) Investor has full power and authority to enter into this Subscription Agreement, and is duly authorized to execute and deliver the same, and that this Subscription Agreement constitutes a valid, legally binding obligation of the undersigned Investor;

(b) The Company will not, and will have no obligation, to register any of the Interests under the Act or any other applicable securities law.

(c) The Company will rely solely upon the truth and accuracy of the acknowledgments, representations, warranties, covenants and agreements that the Investor has made pursuant to this Subscription Agreement, and the Investor will promptly notify the Company if any of the said representations, warranties and covenants made by Investor are no longer accurate or have been breached.

(d) The Company shall not register the transfer of any Interests to any person or entity not made pursuant to the Act or pursuant to a permissible exemption from the registration requirements of the Act.

(e) Investor acknowledges and agrees that Investor has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of the prospective investment in the Interests on the basis of the Investor’s investment experience, business experience, and/or education.

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(f) Investor is acquiring the Interest solely for such Investor’s own account for investment purposes only and not with a view to or intent of resale or distribution thereof. Investor hereby agrees with the Company that no portion of the Interest will be sold or otherwise disposed of by Investor unless either (i) the sale or other disposition will be pursuant to a Registration Statement under the Securities Act of 1933, as amended, (the “Act”) and any applicable securities laws of any state or other jurisdiction; or (ii) Investor shall have notified the Company in writing of any desire on the part of Investor to sell or dispose of all or part of the Interest and of the manner and terms of the proposed transaction, and the Company shall have been advised in writing by counsel acceptable to it that no registration of the Interest under the Act, or the rules and regulations then in effect thereunder, or any applicable state securities laws, is required in connection with the proposed sale or other disposition; or (iii) the Company has been advised in writing by counsel acceptable to it that based on facts then existing, no registration of the Interest under the Act or the rules and regulations then in effect thereunder, is required for any future sale or disposition thereof by Investor. Investor agrees that only the Company may register the Interests under applicable laws, and that the Company does not intend to do so. Investor agrees that the Company is under no obligation to agree to a transfer of the Interests, and may do so in its sole and absolute discretion.

(g) Investor acknowledges that Investor has, prior to the execution of this Subscription Agreement, has carefully reviewed the Form C and all exhibits thereto, Operating Agreement and this Subscription Agreement, and has had the opportunity to ask questions of, and receive answers from, representatives of the Company concerning the terms and conditions of the sale of the Interests by the Company, and has further been given the opportunity to obtain any additional information which Investor deems necessary to verify the accuracy of the Form C and Subscription Agreement. Investor has been provided with any and all information which Investor has requested regarding this matter to Investor’s satisfaction. Investor represents and warrants that he or she has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of an investment in the Interest. Investor acknowledges that Investor has been urged to, and afforded the opportunity to, consult with Investor’s own financial, legal and tax advisors with respect to the advisability of an investment in the Interest and the federal, state, local and foreign tax consequences arising from the Investment.

(h) Investor agrees that Investor has acquired the Interests only for its own account, not as a nominee or agent or any other person or entity.

(i) Investor recognizes that an investment in the Interests and the Company involves risks, and the Investor fully understands and has been afforded ample opportunity to investigate and understand these risks, and is willing and able to bear the risks related to the purchase of the Interests, including but not limited to risks identified and discussed in the Form C.

(j) Investor acknowledges that no commission, fee, or other compensation has been, or will be paid to any person for soliciting the purchase of the Interests unless such person is appropriately registered under the Act.

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(k) Investor acknowledges his, her or its receipt of certain disclosures, including but not limited to a Form C from the Company and the documents and materials referred to therein (the “Investment Information”) regarding the Company’s proposed business and finances, including but not limited to a discussion of certain of the risks associated with an investment in the Interest. In purchasing the Interest, Investor has relied solely on such information and Investor’s own independent investigation and (i) is aware that no federal or state agency has made any recommendation or endorsement of the Interest; (ii) recognizes that an investment in the Interest involves a high degree of risk and that neither the Company nor any person purporting to represent the Company can give any assurance that the Company’s business ventures will be successful or generate any returns or profits whatsoever; (iii) has reviewed the information regarding certain risks associated with an investment in the Interest, including those set forth in the Investment Information, and is prepared to accept such risks; (iv) represents that he, she or it has adequate means of providing for such Investor’s current financial needs and foreseeable contingencies and has no need for liquidity of its investment in the Interest for an indefinite period of time, (v) represents and warrants that he, she or it can afford the loss of his, her or its entire investment; (vi) is aware that the purchase price of the Interest does not bear any direct relationship to the assets of the Company, book value of the Interest or to any other historically based criteria of value; and (vii) is aware that there is no public market for the Interest and that he, she or it must bear the economic risk of the investment for an indefinite period of time because neither the Interest nor any of the other membership interests in the Company have been registered under applicable securities laws and cannot be sold unless it is subsequently registered under the securities laws or an exemption from registration is available.

(l) All certificates evidencing ownership of the Interest, if any, or replacement or new certificates evidencing same, in the absence of registration under the Act shall bear an appropriate legend to the effect that the Interest evidenced by such certificate are subject to the terms of this Agreement and restrictions set forth in the Company’s Operating Agreement (the “Operating Agreement”).

(m) The Investor acknowledges that no governmental authority has passed upon the Interests or made any finding or determination as to the fairness of this investment. The Memorandum has not been filed with the U.S. Securities and Exchange Commission or any securities administrator under any securities or consumer protection laws.

(n) The Investor covenants and agrees with and for the benefit of the Company that it will not pledge, hypothecate, grant a security or other interest or claim in, or otherwise encumber in any way, any or all of its rights under this Agreement, as security for an obligation to any person, whether the interest is based on common law, statute or contract (including the security interest lien arising from a mortgage, encumbrance, pledge, conditional sale or trust receipt or a lease, consignment or bailment or security purposes), in each case, without the prior written consent of the Company.

(o) The Investor agrees to subscribe for the amount shown on the signature page hereto. Upon the execution of this Subscription Agreement, the Investor shall pay to the Company the full amount of the Investor’s Capital Commitment. The Investor agrees to provide any information reasonably requested by the Company in connection with this

5

subscription in order to verify the truth and accuracy of the representations contained herein to the Company including, but not limited to, the statements set forth on the Investor Questionnaire forming a part of this Subscription Booklet. This subscription is irrevocable by the Investor, but may be accepted or rejected by the Company, in its discretion.

3. Compliance with Securities Laws - "Accredited Investor" (Individuals). Investor and the Company agree that the sale of the Interest will be effected without registration under the Act or under the applicable state Blue Sky law in reliance upon the exemption from registration afforded by Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated under the Act. Investor hereby represents and warrants that he or she is [CHECK AS MANY AS APPLY, INITIAL AND RETURN A COPY OF THIS PAGE TO THE ISSUER WITH YOUR SIGNATURE PAGE]:

(a) ☐ an accredited investor as such term is defined by the rules of the Securities and Exchange Commission promulgated under the Act by virtue of the fact that he or she has individual net worth or joint net worth with spouse which exceeds $1,000,000 as of the date hereof; or

(b) ☐ an accredited investor as such term is defined by the rules of the Securities and Exchange Commission promulgated under the act by virtue of the fact that he or she has individual income in excess of $200,000 in each of the two most recent years or joint income with a spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

(c) ☐ not an accredited investor.

Date:__________________

Investor Initials:__________________

4. Compliance With Securities Laws - "Accredited Investor" (Entities). Investor and the Company agree that the sale of the Interest will be effected without registration under the Act or under the applicable state Blue Sky law in reliance upon the exemption from registration afforded by Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated under the Act. Investor hereby represents and warrants that it is [CHECK AS MANY AS APPLY, SIGN AND RETURN A COPY OF THIS PAGE TO THE ISSUER WITH THE SIGNATURE PAGE]:

(a) ☐ a corporation, limited liability company or partnership, not formed for the specific purpose of acquiring the Interest, with total assets in excess of $5,000,000.

(b) ☐ a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a "sophisticated person" as described in Rule 506(b)(2)(ii) of Regulation D.

(c) ☐ an entity (e.g., a corporation, limited liability company or partnership) in which all of the equity owners are "accredited investors" under Regulation D.

Date:__________________

By:__________________

Printed Name:__________________

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Title: _________________________

Each Investor that is an entity, the person executing this Agreement on its behalf is duly authorized to do so and, in addition, the entity is authorized and duly qualified to purchase and hold the Interest in accordance with the terms of this Agreement and the Company's Operating Agreement.

5. **Limited Liability Company; Agreement to be Bound as a Member.** Investor understands that the Company is a limited liability company which will be treated as a partnership for federal income tax purposes. Investor further understands that his or her or its rights as a member of the Company are defined by the Company's Operating Agreement. Investor acknowledges that Investor has received and reviewed a copy of the Company's Operating Agreement, and Investor hereby agrees to be bound by and to be a party to the Operating Agreement. In furtherance thereof, Investor recognizes and understands that by signing this Subscription Agreement, it is in effect signing the Operating Agreement of the Company, and agreeing to be bound as a Non-managing Member therein.

6. **Investment Company Act.** The Company is not, and will not be, registered as an investment company under the Investment Company Act of 1940 (the "1940 Act"). In this regard, each Investor that is an entity represents that it was not formed for the purpose of investing in the Company nor did Investor's stockholders, partners, grantors or participants contribute additional capital for the purpose of such investment. Further, if Investor is purchasing the Interest in the Company which will constitute in excess of 10% of all Interests in the Company, Investor is not an investment company, as defined under the 1940 Act or an entity which would be an investment company for purposes of the 1940 Act if not for the exception set forth in Section 3(c)(1) or Section 3(c)(7) thereunder.

7. **Indemnification.** The Investor recognizes that the offer of the Interests to the Investor was made in reliance upon its representations and warranties above. The Investor agrees to provide, if requested, any additional information that may reasonably be required to determine the eligibility of the Investor to purchase the Interests. The Investor hereby agrees to indemnify the Company and the Manager and their respective officers, directors, employees, affiliates and agents and to hold each of them harmless from and against any loss, damage or liability due to or arising out of a breach of any representation, warranty or agreement of the Investor contained in this Agreement or in any other document provided by the Investor to the Company in connection with the Investor's investment in the Interests. To the maximum extent permitted by applicable law, the Investor hereby agrees to indemnify the Company and the Manager and their respective officers, directors, employees, affiliates and agents, and to hold them harmless against all liabilities, costs or expenses (including reasonable attorneys' fees) arising as a result of the sale or distribution of the Interests by the Investor in violation of the 1933 Act or other applicable law or any misrepresentation or breach by the Investor with respect to the matters set forth herein. In addition, the Investor agrees to indemnify the Company and the Manager and their respective officers, directors, employees, affiliates and agents and to hold them harmless from and against, any and all loss, damage, liability or expense, including costs and reasonable attorneys' fees, to which they may be put or which they may incur or sustain by reason of or in connection with any misrepresentation made by the Investor with respect to the matters about which representations

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and warranties are required by the terms of this Agreement, or any breach of any such warranties or any failure to fulfill any covenants or agreements set forth herein. Notwithstanding any provision of this Agreement, the Investor does not waive any rights granted to it under applicable securities laws.

8. **Further Assurances.** Investor covenants and agrees that he, she or it will deliver such other documents, instruments, or information to the Company or the Manager as may be requested in order to determine whether the undersigned should be admitted as a Member of the Company.

9. **Confidentiality.** Investor understands that this Subscription Agreement, the Form C, Operating Agreement, and any and all other documents provided by the Company to Investor are confidential. Accordingly and therefore Investor hereby agrees, represents, warrants, and covenants to the Company that the Investor has not and will not reproduce or distribute the above described documents, in part or in whole, or divulge any of their contents without the prior written consent of the Company. Investor further agrees that even if Investor does not purchase any Interests, Investor will return all documents to the Company and that the provisions of this section shall apply whether or not Investor executes this Agreement.

10. **Power of Attorney.** Investor hereby appoints the Company as the Investor's true and lawful attorney-in-fact and agent, with the full power of substitution and re-substitution, to act in the Investor's name, place and stead in any and all capacities, with full power to act alone, granting unto such attorney-in-fact and agent full power and authority to execute and deliver the Operating Agreement to the Company on behalf of Investor.

11. **Transferability.** Neither this Subscription Agreement, nor any of Investor's rights, obligations or benefits hereunder may be transferred without the written consent of the Company. Any purported transfer hereof in violation of the foregoing restriction shall be null and void.

12. **Revocation.** Investor agrees that Investor shall not cancel, terminate, or revoke this Subscription Agreement or any agreement Investor has made under this Subscription Agreement, and that this Subscription Agreement shall survive Investor's death or disability, except as permitted under Regulation Crowdfunding.

13. **Termination.** This Subscription Agreement may be terminated by Company if (a) at any time Company in its sole discretion determines to terminate or cancel this offering of Interests prior to the closing of the sale to Investor, or (b) the Company learns that the representations or warranties of Investor are not or were not true, complete and accurate prior to the acceptance of this Subscription Agreement by the Company.

# 14. ***Acceptance or Rejection.***

(a) At any time prior to the Minimum Threshold Deadline, the Company shall have the right to accept or reject this subscription for any reason whatsoever. If this subscription is not accepted by the Company, this subscription shall be deemed to be rejected.

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(b) If this subscription is accepted, the Company shall notify the Investor of such acceptance. The Company will execute a copy of this Agreement and return a copy to the undersigned.

(c) In the event of rejection of this subscription, the Company shall return to the Investor the copies of this Agreement and any other documents submitted herewith, and this Agreement shall have no further force or effect thereafter.

15. Modification. Neither this Agreement nor any provisions hereof shall be modified, changed, discharged, or terminated except by an instrument in writing signed by the party against whom any waiver, change, discharge, or termination is sought.

16. Notices. All notices, consents, requests, demands, offers, reports, and other communications required or permitted to be given pursuant to this Agreement shall be in writing and shall be considered properly given and received when personally delivered to the party entitled thereto, or when sent by facsimile or by overnight courier, to GENESIS DEVELOPMENT CAPITAL, LLC, 1891 Spring Ave NW, Atlanta, GA 30318, if to the Investor, to the address set forth in the Investor Questionnaire; provided, that any notice sent by facsimile shall be promptly followed by a copy of such notice sent by mail or overnight courier in the manner described herein. The Company or the Investor may change its address by giving notice to the other in the manner described herein.

17. Counterparts. This Agreement may be executed in multiple counterpart copies, each of which shall be considered an original and all of which constitute one and the same instrument binding on all the parties, notwithstanding that all parties are not signatories to the same counterpart.

18. Successors. Except as otherwise provided herein, this Agreement and all of the terms and provisions hereof shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, trustees and legal representatives. If the Investor is more than one person, the obligation of the Investor shall be joint and several and the agreements, representations, warranties, and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and such person's heirs, executors, administrators, successors, trustees and legal representatives.

19. Assignability. This Agreement (and any and all rights or obligations hereunder) is not transferable or assignable by the Investor without the Company's prior written consent. Any purported assignment of this Agreement (and any and all rights or obligations hereunder) without the Company's prior written consent shall be null and void. The foregoing prohibition on transfers and assignments shall apply to this Agreement and all Investors rights and obligations hereunder, but shall not prohibit the transfer or assignment of Interests that have been previously issued and remain outstanding. A transfer of such outstanding Interests shall be governed by the limitations set forth in the Operating Agreement. The Company may assign its rights under this Agreement as collateral security for a loan.

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20. **Entire Agreement.** This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes any prior agreement or understanding among them with respect to such subject matter.

21. **Applicable Law.** This Agreement shall be governed by and construed in accordance with the laws of the State of Georgia.

22. **Jurisdiction; Venue.**

- (a) Any action or proceeding relating in any way to this Agreement may be brought and enforced exclusively in the courts of the State of Georgia or (to the extent subject matter jurisdiction exists therefor) of the United States for Georgia, and the parties irrevocably submit to the jurisdiction of such courts in respect of any such action or proceeding.
- (b) The parties irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to the laying of venue of any such action or proceeding in the courts of the State of Georgia or of the United States for Georgia, and any claim that any such action or proceeding brought in any such court has been brought in any inconvenient forum.
- (c) This Section does not limit or supplant any obligations imposed under the Operating Agreement.

23. **Survival.** The representations, warranties and covenants of this Agreement shall survive the acceptance of this Agreement and the issuance of the Interests to the Investor.

24. **Electronic Signatures.** The parties agree that the electronic signature of a party to this Agreement shall be as valid as an original signature of such party and shall be effective to bind such party to this Agreement. The parties agree that any electronically signed document (including this Agreement) shall be deemed (i) to be "written" or "in writing," (ii) to have been signed and (iii) to constitute a record established and maintained in the ordinary course of business and an original written record when printed from electronic files. Such paper copies or "printouts," if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent and under the same conditions as other original business records created and maintained in documentary form. Neither party shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule. For purposes hereof, "electronic signature" means a manually-signed original signature that is then transmitted by electronic means; "transmitted by electronic means" means sent in the form of a facsimile or sent via the internet as a "pdf" (portable document format) or other replicating image attached to an e-mail message; and, "electronically signed document" means a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.

25. **General Provisions.**

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(a) This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

(b) All notices and other communications from any party hereto to any other party hereto shall be mailed by first-class, registered or certified mail, postage prepaid, to the Company at its principal offices set forth and to Investor at his her, or its address as set forth on the Signature Page or otherwise transmitted to the Company from time to time.

(c) This Subscription Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by all parties.

[Signature Page Follows]

11

**IN WITNESS WHEREOF**, the undersigned Investor has executed this Subscription Agreement.

Subscriber Name (Individual or Entity)

Street Address

City, State, Zip Code

Telephone:

E-mail address:

Please indicate the number of Units and Capital Commitment to the Company.

Interests $
Capital Commitment

Future Distribution Instructions: Would you prefer to have future distributions either (check one)
ELECTRONIC CHECK or MAILED to you?

Bank Name:

ABA #:

Account No. #:

Checking? or Savings?

Account for (individual or entity name):

Date of execution by Investor:

Social Security or Taxpayer I.D. No:

State in which Subscription Agreement Signed:

By:
Signature of Investor or Authorized Representative (if not an individual)

(print name, capacity and title above, if applicable)

Date:

12

# ACCEPTANCE OF SUBSCRIPTION

(to be signed only by Manager's Authorized Representative)

The Manager hereby accepts the above subscription for membership units and the Capital Commitment on behalf of the Company:

GENESIS DEVELOPMENT MANAGEMENT, LLC,
as Manager of GENESIS DEVELOPMENT CAPITAL, LLC.

By: _________________________

Name: _________________

Title: Managing Member

Date: _________________________

13

**Attachment 6:** `deck10.pdf`

Commercial Real Estate Development Firm

![img-0.jpeg](img-0.jpeg)

Genesis Development Partners ('GDP') is a minority owned, woman led commercial real estate development firm that specializes in the site selection, acquisition and development of mixed-use commercial property for large scale, retail organizations.

![img-1.jpeg](img-1.jpeg)

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

GENISIS DEVELOPMENT PARTNERS

# About Genesis Development Partners.

## Our Mission

Our mission at GDP is to find the best, highest volume, store locations for high credit national retail tenants by becoming an extension of their real estate team. We identify opportunities in their best interest, by absorbing and executing their criteria of site selection and demographic needs. We deliver a fair at- market rent by building a stores on-time and exactly to specification.

## Our Vision

Our vision is to use or knowledge, experience, relationships and capital to create and maximize value for our clients, investors, partners, and stakeholders by delivering profitable, high-quality developments throughout the United States.

Genesis Development Partners

# The GDP Philosophy

Operational excellence rooted in principled actions and people!

**DECISIVE** - We are prepared to make and stand by important decisions and to accept responsibility ourselves for the outcome.

**CREATIVE** - We find a way or make one. Sometimes the best location, or solution is an invisible one.

**HONEST** - Integrity and honesty are important to us. Keeping our word, agreements, promises and being truthful to our clients and stakeholders is key.

**OWNERSHIP** - Taking care of our investors and stakeholder's resources and responsibilities as if they were our own.

**ENTREPRENEURIAL** - We create solutions when there is a problem. We develop opportunities with creativity and courage.

**STABILITY & STRENGTH** - We invest our own capital into every project. We thoughtfully, strategically invest in our communities.

**RELATIONSHIPS** - We build teams with one common goal; Rather it be employees, investors, clients or vendors, we rally stakeholders into the pursuit of strong and respectful partnership with respect, trust and reliance on each other towards a common goal.

Commercial Real Estate Development Firm

![img-4.jpeg](img-4.jpeg)

# THE OPPORTUNITY

## NATIONAL CREDIT CONVENIENT ORIENTED RETAIL

![img-5.jpeg](img-5.jpeg)

### High Barrier to Entry

- Become an extension of their Real Estate Team
- Solution to the corporation needs to preserve capital by leave/purchase

![img-6.jpeg](img-6.jpeg)

### Resistant to Market Downturn

- Convenient Oriented small shop retail is resistant to economic downtown.

![img-7.jpeg](img-7.jpeg)

### Market right Sizing and adjustment market changes

- Drugstores, Convenience Stores and Fast Food are all building different size stores in response to market changes. Creating opportunity to relocate and right size existing locations.

GENESIS DEVELOPMENT PARTNERS

# Our Process

![img-8.jpeg](img-8.jpeg)

## 01. Identify The Client's Site Needs

We ascertain the specific needs, criteria and desires of our clients for a specific development. Based on those criteria, we build models and scenarios that help us determine the most ideal sites for our clients based, in part, on macro and micro economic projections, consumer consumption patterns, income level and socioeconomic dynamics of a desired area.

## 02. Identify Ideal Site Locations

Our team makes contact with reputable commercial real estate professionals from our relationship network that are familiar with the area. Once we have narrowed down the list of potential sites, our team puts 'boots on the ground' to tour the most appealing site prospects.

## 03. Socializing Site Selections

Once our team has identified 2-3 sites that are the most ideal fit for our client, we present those sites to the client's internal real estate team for feedback and consensus.

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# Our Process (Cont.)

## Key Process Points

- Our process ensures the lowest capital risk exposure to our firm before signed acquisition agreement.
- Our process ensures that the sites we select have the highest probability of gaining committee approval within our client firms.
- Our process ensures that we are not risking our firm's equity investor capital or credit facilities by closing on deals that will be undeliverable to our client firms. This ensures that we will not sustain unnecessary carry costs associated with having to hold sites longer than our projected estimates and protects our firm market credibility and our financial partner(s) capital.

## 04. Securing The Site

Once we have gained positive feedback and consensus from our client's internal real estate team, we move to contract and deploy our firm's funds into escrow (ernest money deposit) we than submit our contract, site selection specification and deal memo to our client firms committee for final approval's and sign off.

## 05. Closing The Deal

Once final approval and sign-off from our Client firm have been gained and we have an executed acquisition agreement in place between our firm and our client's firm, we move to close on the site and begin site development.

![img-9.jpeg](img-9.jpeg)

# PRESERVATION OF CAPITAL AND SITE CONTROL PROCESS

![img-10.jpeg](img-10.jpeg)

Total Cost of Doing Business per deal $6000 before Full Corporate Approval

# VALUE CREATION AND MONETIZATION

![img-11.jpeg](img-11.jpeg)

Timeline between Site Selection and Asset Disposition 18-24 months.

GENESIS DEVELOPMENT PARTNERS

# Our Projects

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# Fall River, MA

Top Line Deal Metrics (Projected):

| Purchase Price: | $1,200,000.00 |
| --- | --- |
| EM (Earnest Money) Deposit: | $50,000.00 |
| Proposed Rent: | $357,000.00 |
| Lease Term: | 15 Years |
| Projected Construction Cost: | $3,500,000.00 |
| Site Work Estimate: | $600,000.00 |
| Cap Rate: | 4.5% |
| Projected Sale Price: | $7,933,333.33 |
| Projected Profit: | $2,683,333.33 |
| Profit Margin: | 33.82% |

![img-12.jpeg](img-12.jpeg)

![img-13.jpeg](img-13.jpeg)

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# Hartford, CT

Top Line Deal Metrics (Projected):

Purchase Price: $275,000.00

EM (Earnest Money) Deposit: $27,500.00

Proposed Rent: $138,500.00

Lease Term: 10 Years

Projected Construction Cost: $1,200,000.00

Site Work Estimate: $250,000.00

Cap Rate: 4.3%

Projected Sale Price: $3,258,823.53

Projected Profit: $1,561323.53

Profit Margin: 47.91%

![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# Kingstown, RI

Top Line Deal Metrics:

| Purchase Price: | $2,500,000.00 |
| --- | --- |
| EM (Earnest Money) Deposit: | $50,000.00 |
| Proposed Rent: | $190,000.00 |
| Lease Term: | 20 Years |
| Projected Construction Cost: | - |
| Site Work Estimate: | $800,000.00 |
| Cap Rate: | 4.13% |
| Projected Sale Price: | $4,789,473.63 |
| Projected Profit: | $3,389,473.68 |
| Profit Margin: | 70.77% |

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# Monson, MA

Top Line Deal Metrics:

Purchase Price: $450,000.00

EM (Earnest Money) Deposit: $15,000.00

Proposed Rent: $138,500.00

Lease Term: 10 Years

Projected Construction Cost: $1,200,000.00

Site Work Estimate: $650,000.00

Cap Rate: 4.5%

Projected Sale Price: $3,070,000.00

Projected Profit: $2,633,333.33

Profit Margin: 25.57%

![img-4.jpeg](img-4.jpeg)

![img-5.jpeg](img-5.jpeg)

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# Northeaston, MA

Top Line Deal Metrics:

Purchase Price: $425,000.00

EM (Earnest Money) Deposit: $15,000.00

Proposed Rent: $139,500.00

Lease Term: 10 Years

Projected Construction Cost: $1,200,000.00

Site Work Estimate: $340,000.00

Cap Rate: 4.5%

Projected Sale Price: $3,100,000.00

Projected Profit: $1,150,000.00

Profit Margin: 37.10%

![img-6.jpeg](img-6.jpeg)

![img-7.jpeg](img-7.jpeg)

*Walgreens*

![img-8.jpeg](img-8.jpeg)

![img-9.jpeg](img-9.jpeg)

![img-10.jpeg](img-10.jpeg)

GENESIS DEVELOPMENT PARTNERS

## Our Clients

Trusted by some of the largest retail organizations globally!

The strength of our firm is represented by the strength of the firms that have elected to work with us. Our detailed, meticulous process, commitment to excellence, transparency, accountability and execution has made us a preferred supplier relationship for some of the largest retail organizations globally!

Neighborhood Retail - Find our developments in local neighborhoods serving everyday people

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# The Offer

Capital Raise : $1,200,000

Use of Funds:

- 15% Equity $900,000
- Earnest Money $100,000
- Pre-Development Cost $100,000

- 22% Return on Capital in 18months.

Commercial Real Estate Development Firm

GENESIS DEVELOPMENT PARTNERS

# The Capital Stack

Equity- Debt- Take Out

## EQUITY

- 15% Equity $900,000
- Earnest Money $100,000
- Pre-Development Cost $100,000
- 22% Return on Capital in 18 months.

## DEBT

- 85% Debt
- Floating at One Month SOFR + 260 bps with a SOFR floor of 0

## TAKE-OUT- Asset Coupons

- 1st Tier Market 4.25%
- 2nd Tier Market 4.75%

GENESIS DEVELOPMENT PARTNERS

# The Growth

2023 : Single Tenant : $12,000,000
Multi-Tenant : $7,000,000

Profit Projection(30% avg) $5,700,000

2024 : Single Tenant : $21,000,000
Multi-Tenant : $10,000,000

Profit Projection(30% avg) $9,300,000

2025 : Single Tenant : $36,000,000
Multi-Tenant : $12,000,000

Profit Projection(30% avg) $14,000,000

2026 : Single Tenant : $38,000,000
Multi-Tenant : $15,000,000

Profit Projection(30% avg) $15,900,000

# Revenue Growth Projection

![img-11.jpeg](img-11.jpeg)

![img-12.jpeg](img-12.jpeg)

GENESIS DEVELOPMENT PARTNERS

# Contact Info

Our Address

3715 Northside Parkway N.W.,
Atlanta, GA 30327

Office Hours

Monday - Friday
08.00 AM - 05.00 PM EST

Phone Number

(678) 754-8439

Email & Web

www.thegdpartners.com
maranda@thegdpartners.com

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Genesis Development Capital, LLC

**Legal Status:** Limited Liability Company

**Jurisdiction of Incorporation/Organization:** GA

**Date of Organization:** 11-11-2022

**Physical Address:** 1891 SPRING AVE NW, ATLANTA, GA, 30318

**Issuer Website:** vesterr.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** Vesterr

**Intermediary CIK:** 0001850113

**Intermediary File Number:** 007-00341

**Intermediary CRD Number:** 319017

### Offering Information

**Compensation to Intermediary:** The issuer shall pay to the intermediary at the conclusion of the offering a fee of five percent (5%) of the amount raised in the offering.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 333

**Price per Security:** $1,500.00

**Target Offering Amount:** $500,000.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $500,000.00

**Deadline to Reach Target Amount:** 04-17-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 1.00

**Total Assets (Most Recent Fiscal Year):** $0.00

**Total Assets (Prior Fiscal Year):** $0.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $0.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $0.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $0.00

**Net Income (Prior Fiscal Year):** $0.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, ALBERTA, BRITISH COLUMBIA, MANITOBA, NEW BRUNSWICK, NEWFOUNDLAND, NOVA SCOTIA, ONTARIO, PRINCE EDWARD ISLAND, QUEBEC, SASKATCHEWAN, YUKON TERRITORY, ISRAEL

### Signatures

**Issuer:** Genesis Development Capital, LLC

**Signature:** Maranda Walker

**Title:** CEO

---

**Signature:** Maranda Walker

**Title:** CEO

**Date:** 02-02-2023