PART II AND III 2 tm2128919d1_partiiandiii.htm PART II AND III

 

Post-Qualification Amendment No. 1

File No. 024-11416

  

This Post-Qualification Amendment No. 1 amends the Offering Statement of StartEngine Collectibles Fund I LLC originally qualified on August 31, 2021, as previously amended and supplemented, to add, update and/or replace information contained in the Offering Statement.

 

AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.  INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED.  THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF ANY SUCH STATE.  WE MAY ELECT TO SATISFY OUR OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF OUR SALE TO YOU THAT CONTAINS THE URL WHERE THE OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.

 

Preliminary Offering Circular Dated September 30, 2021

 

 

StartEngine Collectibles Fund I LLC

9900 Culver Boulevard,

Culver City, CA 90232

(949) 415-8730

www.startengine.com

 

Best Efforts Offering of Series Shares

 

StartEngine Collectibles Fund I LLC, a Delaware series limited liability company (which we refer to as “we,” “us,” “our” or “our company”), is offering, on a best efforts basis, the membership interests each of the series of our company.

 

All of the series of our company offered hereunder may collectively be referred to in this Offering Circular as the “series” and each, individually, as a “series.”  The membership interests of all series described above may collectively be referred to in this Offering Circular as the “shares” and each, individually, as a “share” and the offerings of the shares may collectively be referred to in this Offering Circular as the “offerings” and each, individually, as an “offering.” See “Securities Being Offered” for additional information regarding the shares.

 

1

 

 

The shares are non-voting limited liability company membership interests in a series of our company. Each series is treated as a unique legal entity. Purchasing a share in a series does not confer to the investor any ownership in our company or any other series. Each series is managed by an Administrative Manager and an Asset Manager. The Administrative Manager will be the investor liaison to our company, and will perform duties such as assisting our company with communications to our investors, providing shareholder services, handling the distributions of dividends, and overseeing our shareholder records. Further, the Administrative Manager will source and secure the rights to the underlying assets in each Series. The Asset Manager will manage the assets owned the particular series it manages, and has full authority to determine how to best utilize the asset owned by the series. StartEngine Assets LLC (“StartEngine Assets”) will serve as Administrative Manager to each series of our company, while the Asset Manager may be different for each series of our company. Investors will not have any say in the management of the assets or series of the company. See “The Company’s Business” for more information on the duties of our Administrative Manager and Asset Manager(s) of our series.

 

Our company can offer up to $75 million within a rolling 12-month period pursuant to Regulation A. Our company intends to offer additional series within such limit, and will file post qualification amendments for the offerings of such series with the U.S. Securities and Exchange Commission (the “Commission”). The offerings of such series will be made available to investors from the date such amendment is qualified by the Commission. There will be separate closings with respect to each offering. An offering will terminate at the earlier of (i) the date at which the maximum offering amount has been sold; or (ii) the date at which the offering is earlier terminated by the company at its sole discretion provided that subscriptions for the minimum number of shares for that particular series’ offering has been accepted. If a closing has not occurred, an offering shall be terminated upon (i) the date which is one year from the date such offering circular or amendment thereof, as applicable, is qualified by the Commission, which period may be extended with respect to a particular series by an additional six months by our Administrative Manager in its sole discretion, or (ii) any date on which our Administrative Manager elects to terminate the offering for a particular series in its sole discretion. At least every 12 months after this offering statement has been qualified by the Commission, the company will file a post-qualification amendment to include the company’s recent financial statements. The company has engaged Prime Trust, LLC as escrow agent to hold any funds that are tendered by investors. The offerings are being conducted on a best-efforts basis. The company will undertake a single closing for each of the series offerings described in this offering circular. After each closing related to a particular series, funds tendered by investors will be made available to the relevant series.

 

2

 

 

    Price to
public
    Underwriting
discount and
commissions(1)
    Proceeds to
Issuer
 
Series Wine #2020PAVIE                        
Per Share   $ 10.00     $          0     $ 10.00  
Total Minimum*   $ 22,990     $ 0     $ 22,990  
Total Maximum*   $ 22,990     $ 0     $ 22,990  
                         
Series Wine #2020CHBL                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 11,580     $ 0     $ 11,580  
Total Maximum*   $ 11,580     $ 0     $ 11,580  
                         
Series Wine #2020AUSO                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 29,310     $ 0     $ 29,310  
Total Maximum*   $ 29,310     $ 0     $ 29,310  
                         
Series Wine #2020ANGE                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 15,270     $ 0     $ 15,270  
Total Maximum*   $ 15,270     $ 0     $ 15,270  
                         
Series Wine #2020CERT                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 11,500     $ 0     $ 11,500  
Total Maximum*   $ 11,500     $ 0     $ 11,500  
                         
Series Wine #2000LAFL                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 62,260.00     $ 0     $ 62,260.00  
Total Maximum*   $ 62,260.00     $ 0     $ 62,260.00  
                         
Series Wine #2015HBRI                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 39,650.00     $ 0     $ 39,650.00  
Total Maximum*   $ 39,650.00     $ 0     $ 39,650.00  
                         
Series Wine #2000EGLC                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 50,240.00     $ 0     $ 50,240.00  
Total Maximum*   $ 50,240.00     $ 0     $ 50,240.00  
                         
Series Wine #2005LPIN                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 56,090.00     $ 0     $ 56,090.00  
Total Maximum*   $ 56,090.00     $ 0     $ 56,090.00  
                         
Series Music #JIMMYPAGE1                        
Per Share   $ 10.00     $ 0     $ 10.00  
Total Minimum*   $ 75,000.00     $ 0     $ 75,000.00  
Total Maximum*   $ 75,000.00     $ 0     $ 75,000.00  

  

3

 

 

Series Music #MORRISON1            
Per Share  $10.00   $0   $10.00 
Total Minimum*  $75,000.00   $0   $75,000.00 
Total Maximum*  $75,000.00   $0   $75,000.00 
                
Series Music #CORNELL1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $60,000.00   $0   $60,000.00 
Total Maximum*  $60,000.00   $0   $60,000.00 
                
Series Music #HENDRIX1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $60,000.00   $0   $60,000.00 
Total Maximum*  $60,000.00   $0   $60,000.00 
                
Series Music #MCCARTNEY1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $300,000.00   $0   $300,000.00 
Total Maximum*  $300,000.00   $0   $300,000.00 
                
Series Music #MORRISON2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $75,000.00   $0   $75,000.00 
Total Maximum*  $75,000.00   $0   $75,000.00 
                
Series Music #WILSON1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $300,000.00   $0   $300,000.00 
Total Maximum*  $300,000.00   $0   $300,000.00 
                
Series Music #PRINCE1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $250,000.00   $0   $250,000.00 
Total Maximum*  $250,000.00   $0   $250,000.00 
                
Series Music #VANHALEN1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $75,000.00   $0   $75,000.00 
Total Maximum*  $75,000.00   $0   $75,000.00 
                
Series Music #SPRINGSTEEN1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $250,000.00   $0   $250,000.00 
Total Maximum*  $250,000.00   $0   $250,000.00 
                
Series Music #BEATLES1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $50,000.00   $0   $50,000.00 
Total Maximum*  $50,000.00   $0   $50,000.00 
                
Series Music #DYLAN1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $75,000.00   $0   $75,000.00 
Total Maximum*  $75,000.00   $0   $75,000.00 

 

4

 

 

Series Music #DYLAN2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $75,000.00   $0   $75,000.00 
Total Maximum*  $75,000.00   $0   $75,000.00 
                
Series Music #SPRINGSTEEN2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $90,000.00   $0   $90,000.00 
Total Maximum*  $90,000.00   $0   $90,000.00 
                
Series Music #STONES1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $200,000.00   $0   $200,000.00 
Total Maximum*  $200,000.00   $0   $200,000.00 
                
Series Music #MCCARTNEY2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $200,000.00   $0   $200,000.00 
Total Maximum*  $200,000.00   $0   $200,000.00 
                
Series Music #STONES2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $250,000.00   $0   $250,000.00 
Total Maximum*  $250,000.00   $0   $250,000.00 
                
Series Music #BEATLES2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $125,000.00   $0   $125,000.00 
Total Maximum*  $125,000.00   $0   $125,000.00 
                
Series Music #MJACKSON1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $50,000.00   $0   $50,000.00 
Total Maximum*  $50,000.00   $0   $50,000.00 
                
Series Music #HENDRIX2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $125,000.00   $0   $125,000.00 
Total Maximum*  $125,000.00   $0   $125,000.00 
                
Series Music #VANHALEN2               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $35,000.00   $0   $35,000.00 
Total Maximum*  $35,000.00   $0   $35,000.00 
                
Series Music #VANHALEN3               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $45,000.00   $0   $45,000.00 
Total Maximum*  $45,000.00   $0   $45,000.00 
                
Series Music #VANHALEN4               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $27,500.00   $0   $27,500.00 
Total Maximum*  $27,500.00   $0   $27,500.00 

 

5

 

 

Series Music #KRAVITZ1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $41,100.00   $0   $41,100.00 
Total Maximum*  $41,100.00   $0   $41,100.00 
                
Series Music #HENDRIX3               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $330,000.00   $0   $330,000.00 
Total Maximum*  $330,000.00   $0   $330,000.00 
                
Series Music #MOON1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $123,300.00   $0   $123,300.00 
Total Maximum*  $123,300.00   $0   $123,300.00 
                
Series Music #HENDRIX4               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $123,300.00   $0   $123,300.00 
Total Maximum*  $123,300.00   $0   $123,300.00 
                
Series Music #REDDING1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $184,950.00   $0   $184,950.00 
Total Maximum*  $184,950.00   $0   $184,950.00 
                
Series Music #HARRISON1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $137,000.00   $0   $137,000.00 
Total Maximum*  $137,000.00   $0   $137,000.00 
                
Series Music #TIOMMI1               
Per Share  $10.00   $0   $10.00 
Total Minimum*  $27,400.00   $0   $27,400.00 
Total Maximum*  $27,400.00   $0   $27,400.00 

 

(1)

We are not selling the shares in series in this offering through commissioned sales agents or otherwise. Investors will not pay any upfront selling commissions in connection with the purchase of our shares. Following the completion of these offerings, each of our series will reimburse the Managing Member and their respective Asset Managers for Offering and Formation Expenses in accordance with our allocation policy, see "The Company’s Business—Allocations of Expenses”, which are expected to be approximately $120,000 in total, consisting of legal expenses, audit fees, formation expenses, blue sky fees, EDGARization fees, and formation fees.  Reimbursement payments will be made in monthly installments, but the aggregate monthly amount reimbursed shall not exceed 0.50% of the aggregate gross proceeds from an offering of that series. If the sum of the total unreimbursed amount of such Offering and Formation Expenses, plus new costs incurred since the last reimbursement payment, for that series exceeds the reimbursement limit described above for the applicable monthly installment, the excess will be eligible for reimbursement in subsequent months (subject to the 0.50% limit), calculated on an accumulated basis, until the Managing Member and relevant Asset Manager have been reimbursed in full. Further, a series’ reimbursement obligation for Offering and Formation Expenses will be capped at 5% of the maximum offering amount for that series. See “Management Compensation” for a description of additional fees and expenses that our company and its series will pay to their Managers.

 

*The series will not accept proceeds for less than the maximum offering amount – as such, the maximum offering amount and minimum offering amount are the same.

 

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL OF ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION

 

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

 

This offering is inherently risky. See “Risk Factors” on page 15.

 

The company is following the “Offering Circular” format of disclosure under Regulation A.

 

In the event that we become a reporting company under the Securities Exchange Act of 1934, we intend to take advantage of the provisions that relate to “Emerging Growth Companies” under the JOBS Act of 2012. See “Summary -- Implications of Being an Emerging Growth Company.”

 

6

 

 

TABLE OF CONTENTS

 

SUMMARY 10
RISK FACTORS 15
DILUTION 29
PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS 29
USE OF PROCEEDS TO ISSUER 32
THE COMPANY’S BUSINESS 110
THE COMPANY’S PROPERTY 122
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 122
DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES 124
MANAGEMENT COMPENSATION 128
SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS 130
INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS 130
SECURITIES BEING OFFERED 130
FINANCIAL STATEMENTS F-1

 

7

 

 

THIS OFFERING CIRCULAR MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY.  THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT.  WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS.  INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE.  THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

 

8

 

 

SERIES OFFERING TABLE

 

The table below shows key information related to the offering of each series. Please also refer to “The Underlying Assets” and “Use of Proceeds” for further details.

 

Series Name   Underlying Asset(s)   Offering
Price per
Share
    Offering
Size
    Membership
Interests
    Minimum
Subscription
Amount
    Opening
Date
  Closing
Date
  Status
Series Wine #2020PAVIE   Chateau Pavie 2020 Saint Emilion, 1er Grand Cru Classé 'A' (60 Bottles) (1)   $ 10.00     $ 22,990.00       2,299     $ 500     09/01/2021   *   Open
Series Wine #2020CHBL   Chateau Cheval Blanc 2020 Saint Emilion 1er Grand Cru Classé 'A' (18 Bottles) (1)   $ 10.00     $ 11,580.00       1,158     $ 500     09/01/2021   *   Open
Series Wine #2020AUSO   Chateau Ausone 2020 Saint Emilion 1er Grand Cru Classé 'A' (36 Bottles) (1)   $ 10.00     $ 29,310.00       2,931     $ 500     09/01/2021   *   Open
Series Wine #2020ANGE   Chateau Angelus Saint Emilion, 1er Grand Cru, Classé 'A' (36 Bottles) (1)   $ 10.00     $ 15,270.00       1,527     $ 500     09/01/2021   *   Open
Series Wine #2020CERT   Vieux Chateau Certan 2020 Pomerol (30 Bottles)(1)   $ 10.00     $ 11,500.00       1,150     $ 500     09/01/2021   *   Open
Series Wine  #2000LAFL   Chateau Lafleur, Pomerol 2000(1)   $ 10.00     $  62,260.00       6,226     $ 500     [_]   [_]   Not Yet Launched
Series Wine #2015HBRI   Chateau Haut-Brion Premier Cru Classe, Pessac-Leognan 2015(1)   $ 10.00     $  39,650.00       3,965     $ 500     [_]   [_]   Not Yet Launched
Series Wine #2000EGLC   Chateau L'Eglise-Clinet, Pomerol 2000(1)   $ 10.00     $  50,240.00       5,024     $ 500     [_]   [_]   Not Yet Launched
Series Wine #2005LPIN   Le Pin, Pomerol 2005(1)   $ 10.00     $  56,090.00       5,609     $ 500     [_]   [_]   Not Yet Launched
Series Music #JIMMYPAGE1   Jimmy Page Stratocaster(1)   $ 10.00     $  75,000.00        7,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #MORRISON1   Jim Morrison "Love Her Madly" Lyrics(1)   $ 10.00     $  75,000.00        7,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #CORNELL1   Chris Cornell Les Paul Deluxe Guitar(1)   $ 10.00     $  60,000.00        6,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #HENDRIX1   Jimi Hendrix Pink Feathered BOA(1)   $ 10.00     $  60,000.00        6,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #MCCARTNEY1   Paul McCartney lyrics for “Maxwell Silver Hammer”(1)   $ 10.00     $  300,000.00        30,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #MORRISON2   Jim Morrison signed Bail Bond(1)   $ 10.00     $  75,000.00        7,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #WILSON1   Beach Boys Brian Wilson lyrics for “Catch A Wave”(1)   $ 10.00     $  300,000.00        30,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #PRINCE1   Prince outfit from “Purple Rain” 1984 tour(1)   $ 10.00     $  250,000.00        25,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #VANHALEN1   Eddie Van Halen guitar(1)   $ 10.00     $  75,000.00        7,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #SPRINGSTEEN1   Bruce Springsteen lyrics for “Born to Run”.(1)   $ 10.00     $  250,000.00        25,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #BEATLES1    The Beatles signed contract(1)   $ 10.00     $  50,000.00        5,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #DYLAN1   Bob Dylan lyrics for “Hard Rain”(1)   $ 10.00     $  75,000.00        7,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #DYLAN2   Bob Dylan lyrics for “Knockin’ on Heaven’s Door”(1)   $ 10.00     $  75,000.00        7,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #SPRINGSTEEN2   Bruce Springsteen guitar during the “Born in the USA” Tour(1)   $ 10.00     $  90,000.00        9,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #STONES1   The Rolling Stones first signed record Contract(1)   $ 10.00     $  200,000.00        20,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #MCCARTNEY2   Paul McCartney original artwork and handwritten lyrics from 1958(1)   $ 10.00     $  200,000.00        20,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #STONES2   Rolling Stones Original Artwork for the Album Cover “Its Only Rock and Roll”(1)   $ 10.00     $  250,000.00        25,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #BEATLES2   Beatles signed 1st US album “Meet The Beatles”(1)   $ 10.00     $  125,000.00        12,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #MJACKSON1   Michael Jackson lyrics to “Billie Jean”(1)   $ 10.00     $  50,000.00        5,000     $ 500     [_]   [_]   Not Yet Launched
Series Music #HENDRIX2   Jimi Hendrix Iconic vest(1)   $ 10.00     $  125,000.00        12,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #VANHALEN2   Eddie Van Halen’s 1982 Best Guitarist Award From Guitar Player Magazine(1)   $ 10.00     $  35,000.00        3,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #VANHALEN3   Eddie Van Halen’s Peavey 5150 Striped Combo Amp(1)   $ 10.00     $  45,000.00        4,500     $ 500     [_]   [_]   Not Yet Launched
Series Music #VANHALEN4   Eddie Van Halen’s Charvel prototype(1)   $ 10.00     $  27,500.00        2,750     $ 500     [_]   [_]   Not Yet Launched
Series Music #KRAVITZ1   Lenny Kravitz 1973 Gibson Les Paul Deluxe(1)   $ 10.00     $  41,100.00        4,110     $ 500     [_]   [_]   Not Yet Launched
Series Music #HENDRIX3   Jimi Hendrix’s 1964 Fender Jazzmaster(1)   $ 10.00     $  330,000.00        33,000     $ 500     [_]   [_]   Not Yet Launched
Series Music
#MOON1
  Keith Moon’s Premier Drum Kit(1)   $ 10.00     $  123,300.00        12,330     $ 500     [_]   [_]   Not Yet Launched
Series Music #HENDRIX4   Jimi Hendrix’s Fender Dual Showman cabinet(1)   $ 10.00     $  123,300.00        12,330     $ 500     [_]   [_]   Not Yet Launched
Series Music #REDDING1   Noel Redding’s Fender 6 bass(1)   $ 10.00     $  184,950.00        18,495     $ 500     [_]   [_]   Not Yet Launched
Series Music #HARRISON1   George Harrison Fender Stratocaster(1)   $ 10.00     $  137,000.00        13,700     $ 500     [_]   [_]   Not Yet Launched
Series Music #TIOMMI1   Tony Iommi’s Epiphone Iommi Model SG(1)   $ 10.00     $  27,400.00        2,740     $ 500     [_]   [_]   Not Yet Launched

  

*This series offering has not yet closed as of the date of this Offering Circular.

 

(1)The series will purchase the underlying asset from the Asset Manager (StartEngine Assets) pursuant to a purchase agreement, a form of which is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part, and as described further under “The Company’s Business – Asset Acquisition”).

 

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SUMMARY

 

Overview

 

StartEngine Collectibles Fund I LLC is a series limited liability company formed on October 14, 2020 pursuant to Section 18-215 of the Delaware Limited Liability Company Act, or the LLC Act.

 

As a series limited liability company, title to our underlying assets will be held by, or for the benefit of, the applicable series of interests. We intend that each series of interests will own its own underlying assets, which will be “collectibles” – generally, assets of limited quantity that have a perceived or demonstrated value. We anticipate that the assets can be broad in scope, ranging from items typically thought of as collectibles (e.g., wine, music memorabilia, and vintage automobiles) to assets that are much more unique, including copyright assets and contractual royalty rights. We hope to redefine what it means to be a “collectible”. A new series of interests will be issued for future collectibles or other alternative assets to be acquired by us.

 

We believe that alternative assets are capable of delivering quality returns to investors. However, investing in alternative assets can often require significant financial resources and significant knowledge about the underlying assets and the assets’ respective industries. Due to these high barriers to entry, access to investments in alternative assets have been restrained to a fraction of the global economy. Even those that do have access to top quality alternative investments are faced with high fees, lack of transparency, and significant operational overheads. With high transactional costs and low transaction volumes, investors in alternative assets often suffer from illiquidity, resulting in long holding periods that make such investments inaccessible for many investors.

 

We plan to democratize alternative asset investing by providing access, liquidity and transparency. For different types of assets, we have and are gathering a team of individuals with knowledge and experience needed to effectively select and actively manage such assets. Investing in our series will give investors access to “collectible” assets that we deem to be valuable.

 

We plan to target the acquisition of underlying assets ranging in price anywhere from $10,000 to $5,000,000. Some assets may also be below this range. See “The Company’s Business” for more information on our business and plan of operations and “The Underlying Assets” for a description of the underlying assets and information on the series.

 

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Members of our company

 

An investor who has purchased shares in one of our series in this offering will become an “Economic Member” of a series of our company (as defined in our limited liability company agreement filed as Exhibit 2.2, or our “operating agreement”). No Economic Member, in its capacity as such, will participate in the operation or management of the business of our company or any series, nor transact any business in our company or any series.

 

Managers of our company

 

Our Managing Member, StartEngine Assets LLC the full power and authority to do, and direct our other Managers to do, all things necessary or appropriate to conduct the business of our company and each series, without the consent of our Economic Members. StartEngine Assets LLC, a Delaware limited liability company formed on May 18, 2020 is the Managing Member of our company, and the Administrative Manager of our company and each series of our company. We refer to StartEngine Assets LLC herein as the “Managing Member” when referring to its duties in this capacity, and as our “Administrative Manager” when referring to its duties in this capacity.

 

As the Administrative Manager, StartEngine Assets LLC be responsible for identifying the assets to be purchased by a series from the offering of that series’ shares. The Administrative Manager will also be the investor liaison to our company, and will, among other things, assist with communications to our investors, provide shareholder services to our investors, and handle the distributions of dividends, and overseeing our shareholder records. Our Administrative Manager will coordinate with its affiliates who will serve in various capacities, including StartEngine Secure LLC, who will act as our transfer agent, StartEngine Primary LLC, who, through its alternative trading system, StartEngine Secondary LLC, will facilitate resales of our shares, and StartEngine Crowdfunding Inc. that owns and operates an online investment platform www.startengine.com. See “The Company’s Business—Managers of our Company”

 

Managers of our Series

 

Each series has appointed an asset manager (an “Asset Manager”) to manage the underlying asset or assets related to such series. Such Asset Manager have sole authority and complete discretion over the care, custody, maintenance and management of each underlying assets and to take any action that it deems necessary or desirable in connection therewith. The Asset Manager of each Series is listed in “The Underlying Assets”.

 

Unless otherwise noted in the series designation for a particular series (each, a “Series Designation”), StartEngine Assets LLC will serve as the Administrative Manager for each series, and will perform substantially the same services as it does for our company. Collectively, we refer to the Managing Member, Administrative Manager (of our company or a series), and Asset Manager, or any combination thereof, as the “Managers”. We also refer to these managers on an individual basis a “Manager”, where context permits.

 

Our Managing Member has delegated to the Managers of our series (i.e. the Asset Manager and Administrative Manager) broad asset management and operational powers over the series. In these capacities, the Managers of a particular series will (among other things):

 

·Serve as the investment and financial manager with respect to underwriting, financing, originating, servicing, investing in, redeveloping and eventually selling a diversified portfolio of the series assets;

 

·Manage and perform the various administrative functions necessary for the day-to-day operations and management of the series assets;

 

·Provide or arrange for administrative services, legal services, office space and other overhead items necessary for and incidental to acquisition, management and disposition of series assets;

 

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·Maintain reporting, record keeping, internal controls and similar matters with respect to the series assets in a manner to allow our company to comply with applicable law, including the requirements of under Section 18-215 of the LLC Act;

 

·Monitor and evaluate the performance of the investments, provide daily management services and perform and supervise the various management and operational functions related to the series assets;

 

·Formulate and oversee the implementation of strategies for the administration, promotion, management, operation, maintenance, improvement and marketing of investments on an overall portfolio basis;

 

·Recommend distribution policies for each series to the Managing Member and, subject to approval by the Managing Member, authorize distributions from time to time; and

 

·Manage communications with Economic Members.

 

Advisory Board

 

Our Managing Member may establish an advisory board comprised of experts in a particular industry to provide guidance and strategic advice to our company, or a particular series of our company. For our company, this may be advising on the creation of a particular series with a new collectibles asset class focus. For our series, this may be assisting in identifying, acquiring, and managing the particular assets of that series, or advising on other general business matters. See “The Company’s Business” for more information on the functions of our company’s advisory board.

 

Organizational Chart 

 

 

The above chart provides a general overview of our organizational structure, with details for our first five Series. All of our wine series have a similar structure, and the music series have a similar structure except that the Asset Manager for those series is Skimmer Music LLC, as discussed below. 

 

Operating Expenses

 

Each series of our company will be responsible for its own third-party charges and out-of-pocket costs and expenses incurred as a result of acquiring and managing the assets of a particular series, or for any other permissible business activity of a series. All operating expenses paid on behalf of a series by its Managers will be reimbursed to such Managers.

 

Each Manager will bear their own expenses of an ordinary nature, including, all costs and expenses on account of rent (other than for direct expenses for the underlying assets, including storage for wine), supplies, secretarial expenses, stationery, charges for furniture, fixtures and equipment, payroll taxes, remuneration and expenses paid to employees and utilities expenditures (excluding utilities expenditures in connection with the storage of the underlying assets).

 

If the operating expenses exceed the amount of revenues generated from a series and cannot be covered by any reserves on the balance sheet of such series, our Managing Member may:

 

·issue additional shares in such series;

 

·pay such operating expenses and not seek reimbursement; and/or

 

·enter into an agreement in which a Manager loans the amount of the operating expenses to the applicable series, on which such Manager may impose a reasonable rate of interest, and be entitled to reimbursement of such amount from future revenues generated by that series.

 

Offering and Formation Expenses

 

Each series of our company will be responsible for the costs and expenses attributable to the formation of series and the offering for that particular series, including expenses allocated to them under our allocation policy (we refer to these as “Offering and Formation Expenses”), see "The Company’s Business—Allocations of Expenses”. If such costs and expenses are paid by a Manager on behalf of a series, the series will reimburse the Manager for such expenditures. We expect that the total Offering and Formation Expenses that will be incurred in connection with these offerings for our series will be $120,000. In accordance with our allocation policy, we may allocate all or a portion of these offering expenses to series of our company, so long as such allocation of Offering and Formation expenses to a particular series does not exceed five percent (5%) of the maximum offering amount of that series. See “The Company’s Business—Allocations of Expenses” for more information on our allocation policy.

 

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Distribution Rights

 

Tothe extent there is “Free Cash Flow” for each series, our Managing Member intends to declare and pay distributions to the shareholders of that series equal to:

 

  · a return on their investment (a “Preferred Return”), if any; and

 

  · any excess cash from the Free Cash Flow (defined below) after distributions of the Preferred Return and any Service Fee (defined further below) paid to the Managers.

 

The rate of the Preferred Return, if any, will be specific to each series of our company (as set forth in the applicable Series Designation). The Preferred Return for each series is described in “The Underlying Assets”. To the extent the Preferred Return is not paid in a particular period, the amount of unpaid Preferred Return will accrue and will be paid if and when there are available funds in the Free Cash Flow. While unpaid Preferred Return will accrue, it is possible that investors may never receive Preferred Return or will not receive the entire accrued amount if the particular series does not have available funds in the Free Cash Flow. Further, upon the liquidation of a series, whether as a result of the dissolution of our company or the termination of such series, it is possible there will not be enough Free Cash Flow in excess of the amounts required to discharge liabilities of that series– for investors to receive all of their accrued Preferred Return, any Preferred Return at all, or even a return of their capital invested. See “Securities Being Offered – Liquidation Rights.”

 

The Service Fee will also be specific to each series. For more information on a Service Fee applicable to a specific series, see the “Management Compensation” section of this Offering Circular.

 

The Managing Member intends to make distributions on a basis that is appropriate for the underlying assets to the shareholders of a series to satisfy the amount of Preferred Return that has accrued (for the current as well as prior periods). For instance, for certain types of assets, e.g., wine and music memorabilia, there may only be payments when an asset is sold, which may lead to just a single payment or more sporadic payments. For liquidity consideration for any assets, see “The Underlying Assets”. There is no requirement to pay distributions at any given time.

 

Distributions of Preferred Return will be paid out of the available “Free Cash Flow” of a series, which consists of the net income (as determined under GAAP) generated by such series (before accounting for the Service Fee) plus any change in net working capital and depreciation and amortization (and any other non-cash operating expenses and/or and amounts that were previously retained as cash reserves that, during such period, the Managing Member determines are no longer needed by our company) and less any capital expenditures related to the underlying assets related to such series. Any amounts remaining after payment of the Preferred Return and Service Fee will be distributed on a pro-rata basis to shareholders of a series, if available.

 

Our Administrative Manager has sole discretion in determining what distributions of Free Cash Flow, if any, are made to holders of each series of shares except as otherwise limited by law or the operating agreement. See “Securities Being Offered – Distribution Rights” for further details on distributions to shareholders of our series’ shares.

 

Distributions upon Liquidation

 

In connection with the liquidation of a series, whether as a result of the dissolution of our company or the termination of such series, all property and Free Cash Flows in excess of that required to discharge liabilities that are contingent, conditional or unmatured, shall be distributed as follows:

 

  · First, to the holders of the shares of the series on an equal per share basis until they have received their capital contribution and Preferred Return (including any Preferred Return that accrued with respect to a current or prior calendar year but has not yet been distributed);

 

  · Second, unless otherwise specified in a Series Designation, 50% to Managers of such Series (half of which shall go to the relevant Asset Manager, and half of which shall go to the Administrative Manager) and 50% to the holders of shares of the series on an equal per share basis.

 

Management Compensation

 

Pursuant to our operating agreement, the Asset Manager and Administrative Manager of each series will each receive two fees as compensation for the services they provide to that series: a Service Fee (which will be a percentage of the amount of revenues the series generates) and an Asset Management Fee (which will be a percentage of the value of the assets of the series).

 

In addition, the Administrative Manager of the company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”), paid to the Administrative Manager as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. The Administrative Manager may have separate agreements with individuals and split the fee, including with the Asset Manager of a particular series. Any such arrangement for a particular series will be disclosed in the “Use of Procceds” below.

 

For more information, see the “Management Compensation” section of this Offering Circular.

 

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The Offerings

 

Securities being offered:  

This offering is for shares of the series in StartEngine Collectibles Fund I LLC. The shares being sold in this offering will be non-voting except with respect to certain matters set forth in our limited liability company agreement, dated January 5, 2021 as amended from time to time, or the “operating agreement”. The purchase of a particular series of shares is an investment only in that series of our company and not an investment in our company as a whole. The rights of the shares are described more fully in “Securities Being Offered.”

 

We are offering the minimum and maximum number of shares of each series at a price per share set forth in the “Series Offering Table” section above.  Each series of shares is intended to be a separate series of our company for purposes of assets and liabilities. The purchase of shares in a particular series is an investment only in that series of our company and not an investment in our company as a whole.

     
Minimum and maximum subscription:  

The minimum subscription by an investor for each series is detailed in the “Series Offering Table” section above and the maximum subscription by any investor is for shares representing 5% of the total shares of a particular series, although such minimum or maximum thresholds may be waived by our Administrative Manager in its sole discretion.

     
Use of proceeds:  

The proceeds received in an offering will be applied as set forth in the “Use of Proceeds” section of this Offering Circular, and will generally be used to acquire the specific assets related to that offering.

   
Risk factors:   Investing in our shares involves risks. See the section entitled “Risk Factors” in this Offering Circular and other information included in this Offering Circular for a discussion of factors you should carefully consider before deciding to invest in our shares.

 

Implications of Being an Emerging Growth Company

 

As an issuer with less than $1 billion in total annual gross revenues during our last fiscal year, we will qualify as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) and this status will be significant if and when we become subject to the ongoing reporting requirements of the Exchange. An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular, as an emerging growth company we:

 

·will not be required to obtain an auditor attestation on our internal controls over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

 

·will not be required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives (commonly referred to as “compensation discussion and analysis”);

 

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·will not be required to obtain a non-binding advisory vote from our securityholders on executive compensation or golden parachute arrangements (commonly referred to as the “say-on-pay,” “say-on-frequency” and “say-on-golden-parachute” votes);

 

·will be exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

 

·may present only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A; and

 

·will be eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards.

 

We intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under Section 107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under Section 107 of the JOBS Act.

 

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, as amended, or such earlier time that we no longer meet the definition of an emerging growth company. Note that this offering, while a public offering, is not a sale of common equity pursuant to a registration statement, since the offering is conducted pursuant to an exemption from the registration requirements. In this regard, the JOBS Act provides that we would cease to be an “emerging growth company” if we have more than $1.07 billion in annual revenues, have more than $700 million in market value of our common stock held by non-affiliates, or issue more than $1.07 billion in principal amount of non-convertible debt over a three-year period.

 

Certain of these reduced reporting requirements and exemptions are also available to us due to the fact that we may also qualify, once listed, as a “smaller reporting company” under the Commission’s rules. For instance, smaller reporting companies are not required to obtain an auditor attestation on their assessment of internal control over financial reporting; are not required to provide a compensation discussion and analysis; are not required to provide a pay-for-performance graph or CEO pay ratio disclosure; and may present only two years of audited financial statements and related MD&A disclosure.

 

RISK FACTORS

 

The SEC requires our company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its line of business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently riskier than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

 

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Risks Relating to Our Company’s Operations and Structure

 

An investment in an offering constitutes only an investment in a particular series and not in our company or the underlying assets.

 

A purchase of our series’ shares does not constitute an investment in either our company or the underlying assets directly. This results in limited voting rights of the investor, which are solely related to the series. Investors will have voting rights only with respect to certain matters, primarily relating to amendments to the operating agreement that would adversely change the rights of the interest holders and removal of our Managing Member for “cause.” The Managing Member thus retains significant control over the management of our company and its underlying assets. Furthermore, because the shares do not constitute an investment in our company as a whole, holders of a particular series of shares will not receive any economic benefit from, or be subject to the liabilities of, the assets of any other series of interest. In addition, the economic interest of a holder in a series will not be identical to owning a direct undivided interest in the underlying assets because, among other things, the series will be required to pay corporate taxes before distributions are made to the holders, and the Asset Manager will receive a fee in respect of its management of the underlying assets.

 

We are a brand-new company with no operating history, which may make it difficult for investors to evaluate our business model and to assess our future viability.

 

We are a newly formed limited liability company with no operating history upon which an evaluation of our past performance and future prospects of a series. Our operations to date have been limited to organizing our company, identifying the Asset Managers and Administrative Manager, and engaging in activities related to this offering. No guarantee can be given that our company or a series will achieve their investment objectives, the value of the underlying assets will increase or the underlying assets will be successfully monetized.

 

The offering amount will exceed the value of the underlying assets and if the underlying assets are sold before they appreciate or generate income, then investors will not receive the amount of their initial investment back.

 

The size of an offering will exceed the purchase price of the related underlying assets as at the date of such offering (as the proceeds of the offering in excess of the purchase price of the underlying assets will be used to pay fees, costs and expenses incurred in making the offering and acquiring the underlying assets, as well as the Sourcing Fee to our Administrative Manager). If the underlying assets had to be sold and there had not been substantial appreciation of the underlying assets prior to such sale, there may not be sufficient proceeds from the sale of the underlying assets to repay investors the amount of their initial investment (after first paying off any liabilities on the underlying assets at the time of the sale including, but not limited to, any outstanding Operating Expenses Reimbursement Obligation) or any additional profits in excess of this amount.

 

Operating Expenses that are incurred after each closing will reduce potential distributions, if any, and the potential return on investment resulting from the appreciation of the underlying assets, if any.

 

Operating Expenses incurred post-closing will be the responsibility of the applicable series. For our various series, the Operating Expenses may include expenses related to perfecting the rights to those assets and on-going maintenance of those assets (e.g., storage, insurance, administrative fees, etc.). If the Operating Expenses exceed the amount of revenues generated from the underlying assets related to such series, our Managers may (a) pay such Operating Expenses and not seek reimbursement, (b) loan the amount of the Operating Expenses to the series, on which our Managers may impose a reasonable rate of interest, and be entitled to reimbursement, and/or (c) cause additional shares of such series to be issued in order to cover such additional amounts.

 

If there is a reimbursement obligation to a Manager, this reimbursable amount between related parties would be taken out of the Free Cash Flow generated by the series and could reduce the amount of any future distributions payable to investors, or could cause delays in distributions of Preferred Return to investors. If additional series interests are issued, this would dilute the current value of the interests held by existing investors and the amount of any future distributions payable to such existing investors.

 

The success of any series depends in large part upon its Asset Manager and its ability to execute our business plan.

 

The successful operation of our series is in part dependent on the ability of the Asset Managers to effectively manage the underlying assets. Currently, StartEngine Assets LLC serves as the Asset Manager of each of our current wine series and Skimmer Music LLC serves as the asset manager for each of our music series. StartEngine Assets LLC has only been in existence since May 18, 2020 and has no significant operating history within the fine wine sector that would evidence an ability source and manage and the underlying assets of the wine series. Skimmer Music LLC has only been in existence since November 12, 2016 and has no significant operating history within the music memorabilia sector that would evidence an ability source and manage and the underlying assets of the music series. If an Asset Manager cannot effectively source and manage the underlying assets of its series, investors may not receive the expected returns on their investment. Our Asset Managers also may face challenges in adjusting to management requirements associated with the size of investment we are seeking in this offering. For instance, if either StartEngine Assets LLC or Skimmer Music LLC cannot effectively scale-up its operations to assist with these increased needs, our business, and therefore your investment, may suffer.

 

Our Administrative Manager may sell its Shares post-closing which may result in a reduction in value of your Shares if there are too many series Shares available and not enough demand for those Shares.

 

Our Administrative may opt to forego a portion of the cash Sourcing Fee it is entitled to receive in exchange for shares of a particular series of equal value to the amount of the cash fee the Administrative Manager would have received from the full Sourcing Fee. Our Administrative Manager has no present intention to sell its interests, and any future sales would be based upon our potential need for capital, market prices of the interests at the time of a proposed sale and other factors that a reasonable investor might consider in connection with the sale of securities similar to our interests. There is a risk that a sale by our Administrative Manager may result in too many interests being available for resale and the price of the relevant series of interests decreasing as supply outweighs demand.

 

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The success of our company (and therefore, each series) will be highly dependent on the expertise and performance of our Asset Managers and their teams, expert networks and other investment professionals. There can be no assurance that these individuals will continue to be associated with our Asset Managers. The loss of the services of one or more of these individuals could have a material adverse effect on the Asset Managers’ ongoing management and support of the investment of the holders of the series shares.

 

Each series of our company is expected to invest only in the related underlying assets; therefore, your investment will not be diversified and will appreciate or depreciate based on the value of the underlying assets regardless of market conditions.

 

It is not anticipated that any series would own any assets other than its related underlying assets, plus potential cash reserves for maintenance, storage, insurance and other expenses pertaining to the underlying assets and amounts earned by the related series from the monetization of the underlying assets, if any. Investors looking for diversification will have to create their own diversified portfolio by investing in other opportunities in addition to the interests offered hereby.

  

For our series entitled to a preferred return, a series may never realize sufficient income or capital appreciation for delivering to our investors a preferred return.

 

For our series entitled to a preferred return, our goal is to generate a preferred return for our investors in our series and to pay investors dividends; however, there can be no assurances that we will ever pay any dividends. Our operating agreement provides that each series will pay its Managers or their affiliates an Asset Management Fee which may reduce funds available to pay the Preferred Return to investors, or dividends from any Free Cash Flow available after such returns are paid. Further, each series will pay its Managers and their affiliates a Service Fee, which generally means that any funds remaining after payments of expenses and the Preferred Return will be split evenly between our Managers (each of the Administrative Manager and Asset Manager receiving 25% of the remaining funds as their Service Fee) and the investors. The Service Fee will further reduce any additional dividends payable to investors above their Preferred Return, which lowers the value of your investment (compared to if the Asset Management and Service Fees were not paid to the Managers of a series).

 

Some of our series do not have a preferred return.

 

Some of our series do not have a preferred return, and, for those series, the Series will generally not distribute dividends until it sells the underlying asset(s), meaning that investors will only generally receive distributions upon a liquidation event. Upon such an event, investors will only receive payments after payment of fees to our Managers (e.g., the Asset Management Fee). At which point, investors will receive a return of their capital contribution (if there is sufficient funds) and, to the extent there are any remaining amounts, those will generally be split evenly between our Managers (each of the Administrative Manager and Asset Manager receiving 25% of the remaining amounts as their Service Fee) and the investors. The Asset Management and Service Fees lower the value of your investment (compared to if the Asset Management and Service Fees were not paid to the Managers of a series).

 

Our Managing Member in its sole discretion ultimately determine what distributions, if any will be made to holders of each series of securities.

 

Our Managing Member in its sole discretion ultimately determine when and what distributions, if any will be made to holders of each series of securities. For instance, the company may be required to create such reserves as our Administrative Manager deems necessary from time to time to meet future operating expenses, anticipated costs and liabilities of that series. That decision is ultimately reviewed by our Managing Member (consisting of our Administrative Manager) with no independent review or input from our investors. For clarity, investors do not have any rights under our operating agreement to audit, or otherwise receive an explanation regarding, decisions regarding their distribution rights. Moreover, if reserves are created, the Free Cash Flow otherwise available for distribution to holders of securities of that series will be reduced.

 

Operating expenses will be the responsibility of the applicable series. However, if the operating expenses of the series exceed the amount of revenues generated from the underlying assets related to such series, the Managing Member may issue additional shares in such series; determine that the Managing Member pay such excess operating expenses and not seek reimbursement; and/or enter into an agreement pursuant to which a Manager loans to the series an amount equal to the remaining excess operating expenses, on the Manager may impose a reasonable rate of interest, and be entitled to reimbursement.

 

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In the case of reimbursement, this reimbursable amount between related parties would be taken out of the Free Cash Flow generated by the series and could reduce the amount of any future distributions payable to investors of that series.

 

Any adverse changes in the financial health of our Managers of our Series or their affiliates could hinder a series’ operating performance and the return on your investment.

 

Managers of our series have been delegated the responsibilities to manage the operations and portfolio of assets of that particular series. Our ability to achieve our investment objectives and to pay distributions is dependent upon the performance of the Managers of these series and their affiliates as well as the professionals relied on by these Managers in the identification and acquisition of investments and the management of assets in a series. Any adverse changes in the financial condition of the Managers of a series or our relationship with the Managers of a series could hinder their ability to successfully manage the operations and portfolios of that series, negatively impacting your investment in that series.

 

Our success is dependent, in part, upon our ability to successfully conduct this offering through the StartEngine Platform, which makes an investment in us more speculative.

 

We will continue to conduct this offering primarily through the StartEngine Platform, which is owned by StartEngine Crowdfunding, LLC. Only a limited number of alternative asset investment opportunities have been offered through the StartEngine Platform prior to this offering. The success of this offering, and our ability to implement our business strategy, is dependent upon our ability to sell our series shares to investors through the StartEngine Platform. If we are not successful in selling our series shares through the StartEngine Platform, our ability to raise proceeds through this offering will be limited and we may not have adequate capital to implement our investment strategy. If we are unsuccessful in implementing our investment strategy, you could lose all or a part of your investment.

  

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Risks Related to Assets of our Series

 

The underlying assets were selected based on the opinions of the Administrative Manager. There is no guarantee the Administrative Manager will be successful in selecting assets that will generate returns.

 

The criteria used by the Administrative Manager of the series (and any advisor to such series, including the Asset Manager of such series) to select the underlying assets is subjective in nature. There is no guarantee that the asset underlying each of the Series will generate any returns for investors.

 

The asset classes for our underlying assets are hard to value and any valuations obtained are not guarantees of realizable price.

 

The asset classes for our collectibles can be difficult to value. We will strive to obtain proper valuations of the underlying assets based on quantifiable data (e.g. market performance, previous sales history, etc.) – however, valuations will also be based on subjective opinions of experts and the Asset Manager of our series, which may be inaccurate. As relevant, our Asset Manager will strive to source data from reputable valuation providers in the relevant industry; however, it may rely on the accuracy of the underlying data without any means of detailed verification. Consequently, valuations may be uncertain.

 

The value of the underlying assets can go down as well as up. Valuations are not guarantees of realizable price, do not necessarily represent the price at which our shares may be sold. The value of the underlying assets may be materially affected by a number of factors outside of our control, including, any volatility in the economic markets and the condition of the underlying assets.

 

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Title or authenticity claims on an underlying asset may diminish value of the underlying asset, as well as the series that relates to such underlying asset.

 

There is no guarantee that an underlying asset will be free of any claims regarding title and authenticity (e.g., counterfeit or previously stolen collectibles), or that such claims may arise after acquisition of an underlying asset by a series. We may not have complete ownership history or restoration and repair records for an underlying asset. The underlying assets of our series will generally be originally sourced from individuals and entities that the Asset Manager and Administrative Manager of such series believes to have developed reputations in their respective areas, including wine brokers and sellers of collectibles (such as rock memorabilia). Based on the reputations of those individuals and entities, those Managers then relies on those individuals and entities regarding the authenticity and ownership claims without undertaking an independent review of such claims. In the event of a title or authenticity claim against us, we may not have recourse against the asset seller or the benefit of insurance, and the value of the underlying asset and the series related to such underlying asset may be diminished.

 

The Administrative Manager does not currently own all the underlying assets in this offering.

 

For several of the underlying assets in this offering, the Administrative Manager has an option to purchase those assets. In such cases the Administrative Manager must purchase an asset by a specific date. Further, in certain cases the asset seller may shorten the option period if they receive an offering to purchase the asset. If the offering has not closed prior to the end of the option (or the abbreviated option period, as applicable), the asset will no longer be available, and the Administrative Manager will terminate the offering and return your money in escrow, see “Plan of Distribution and Selling Securityholders”.

 

Potentially high storage, maintenance and insurance costs for the underlying assets may adversely impact the value of the related series and the amount of distributions made holders of shares. Further, the Asset Manager will rely on third parties to provide storage and maintenance.

 

In order to protect and care for our underlying assets, our Asset Manager must ensure adequate storage facilities, maintenance work and insurance coverage. The cost of care may vary from year to year depending on changes in the insurance rates and in the cost of storage. It is anticipated that as we acquire more assets that we acquire within a type of class (e.g., if we purchase more fine wines), our Asset Manager may be able to negotiate a discount on the costs of storage, maintenance and insurance due to economies of scale. These reductions are dependent on our acquiring a number of assets within a similar class of assets and service providers being willing to negotiate volume discounts and, therefore, are not guaranteed.

 

If costs turn out to be higher than expected, this will impact the value of the series, the amount of distributions made to investors holding the series, on potential proceeds from a sale of the underlying assets (if ever), and any capital proceeds returned to investors after paying for any outstanding liabilities.

 

Further, many of the underlying assets are fragile and can easily be damaged, stolen and/or destroyed in the absence of proper storage or maintenance. We will be relying on third-parties to provide such services to us. Any failure on their part, may have a material adverse effect on the value of your investment.

 

There is no assurance that the underlying asses we purchase will appreciate in value, and in fact, they may decrease in value.

 

There is no guarantee that any underlying asset we acquire will appreciate in value. There are a number of events that could cause our assets to depreciate in value or not appreciate as anticipated, including, but not limited to,

 

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Wine Assets

 

·any harm to the reputation of the producers of the fine wines we acquire, such as winemakers, wineries, or their respective owners, which could adversely impact the value of those wines.

 

·change in consumer tastes, resulting in a decrease in demand for a previously popular wine variety.

 

·sudden changes in availability of specific wines, or wines from a particular region, which reduce the value of the wines in those categories that we hold.

 

Collectible Assets

 

  · any harm to the reputation of artists and/or manufacturers related to the collectibles we acquire, which could adversely impact the value of those collectibles.

 

  · Any downturn in the collectibles industry.

 

Furthermore, as wine and other collectibles are collectible items, the value of such collectables may be impacted if an economic downturn occurs and there is less disposable income for individuals to invest in wine and collectables. In the event of a downturn in the industry, the value of the underlying assets is likely to decrease.

 

The above occurrences, as applicable, could have a material adverse effect on the value of our underlying assets, and as such, the value of your investment in the series. 

 

If there are multiple underlying assets in a series, forced sale of one or more of the underlying assets at a lower value than when the asset was first acquired may diminish the value of the series that owns those particular assets.

 

If there are multiple underlying assets in a series, we may be forced to sell certain underlying assets we have acquired in the case of an unexpected event necessitating us to acquire cash, and such a sale may occur at an inopportune time or at a lower value than when the underlying asset was first acquired or at a lower price than the aggregate of costs, fees and expenses used to purchase such underlying assets. In such circumstances, the capital proceeds obtained for the underlying asset, and therefore, the return available to investors, may be lower than could have been obtained if the underlying assets continued to be held by us and sold at a later date. 

 

If we are unable to liquidate an underlying asset at a time when we desire to do so or at all, investors may not receive any return on their investment and may lose their entire investment. Further, we may have to hold on to underlying assets for a long period of time, which may not be suitable for some investors.

 

Our strategy is to acquire underlying assets, hold such assets for a period of time and then sell such assets at a premium over our acquisition price so that investors in our series can make a return on their investment. For certain assets, there may be average time horizon, for example, we anticipate holding wine assets on average between one to five years; however, for other assets the liquidity time frame may be significantly longer, for example for music collectibles it may be up to twenty years. If we are unable to sell an underlying asset at a time when we desire to do so or at all, we may not be able to realize a return on that investment, or lose that investment altogether. Further, we may end up holding our underlying assets for a long period of time before we are able to monetize (i.e. sell) such assets, which could result in long periods of time in which investors to not realize returns on their investments. This may make an investment in any of those series unsuitable for investors that cannot withstand such long holding periods.

 

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Potential loss of or damage to an underlying asset could adversely impact the value of the underlying asset, the series related to the underlying asset, or the likelihood of any distributions made by us to investors.

 

Our underlying assets may be lost or damaged by causes beyond our reasonable control when in storage or in transit. In general, any damage to our underling assets (e.g., for wine it would most commonly be, bottle breakage or spoilage of wine) could result in the loss of value of the underlying asset, and for certain asset, for example wine, it may be a complete loss of value. Although we intend for the underlying assets to be insured at replacement cost (subject to policy terms and conditions), in the event of any claims against such insurance policies, there can be no guarantee that any losses or costs will be reimbursed, that the underlying assets can be replaced on a like-for-like basis or that any insurance proceeds would be sufficient to pay the full market value of the damaged asset. Such an occurrence would negatively affect the value of the series related to those such asset or assets, as well as the likelihood of any distributions being made by us to the investors.

 

Competition in the collectibles industry from other business models may make it difficult to obtain underlying assets.

 

There is potentially significant competition for the underlying assets from many different market participants. While the majority of transactions continue to be peer-to-peer with very limited public information, other market players, such as collectibles dealers and auction houses, continue to play an increasing role. In addition, the underlying market is being driven by the increasing number of widely popular collectibles TV shows, including Antiques Roadshow, Storage Pickers, American Pickers and Pawn Stars. This competition may impact the liquidity of a series, as it is dependent on our acquiring attractive and desirable underlying assets to ensure that there is an appetite of potential investors for the interests. In addition, there are companies that have developed and are developing crowd funding models to enter this market.  

 

Restoration or repair of an underlying asset may result in a decrease in the value of the underlying asset.

 

Although we do not intend to undertake restoration or repair of the underlying assets, there may be situations in the future that we are required to do so (e.g., due to natural wear and tear and through the use of the underlying assets). Where we do so, we will be dependent on the performance of third-party contractors and sub-contractors and may be exposed to the risks that a project will not be completed within budget, within the agreed timeframe or to the agreed specifications. While we will seek to mitigate our exposure by negotiating appropriate contracts, including appropriate warranty protection, any failure on the part of a contractor to perform its obligations could adversely impact the value of the underlying assets and, therefore, the value of the series related to such underlying assets.

 

In addition, the successful restoration or repair of the collectibles may be dependent on sourcing replacement original and authentic paint or parts. Original paint or parts for collectibles are rare and in high demand and, therefore, at risk of being imitated. There is no guarantee that any paint or parts sourced for the underlying assets will be authentic (e.g., not a counterfeit). If such paint or parts cannot be sourced or those paints or parts that are sourced are not authentic, the value of the underlying assets and, therefore, the value of the series related to such underlying assets may be materially adversely affected. Furthermore, if an underlying asset is damaged, we may be unable to source original and authentic paint or parts for the underlying asset, and the use of non-original and authentic paint or parts may decrease the value of the underlying asset.

 

Insurance may not cover all losses, which may result in an operating loss and likelihood that distributions will not be made by us.

 

Insurance of the underlying assets may not cover all losses. There are certain types of losses, generally of a catastrophic nature, such as earthquakes, floods, hurricanes, terrorism or acts of war, that may be uninsurable or not economically insurable. Inflation, environmental considerations and other factors, including terrorism or acts of war, also might make insurance proceeds insufficient to repair or replace an asset if it is damaged or destroyed. Under such circumstances, the insurance proceeds received might not be adequate to restore our economic position with respect to any affected underlying assets. Furthermore, the series related to such affected underlying assets would bear the expense of the payment of any deductible. Any uninsured loss could result in both loss of cash flow from and the value of the affected underlying assets and, consequently, the series that relate to such underlying assets.

 

We may be associated with third-party liability and exposed to reputational harm as a result of wrongful actions by certain third parties.

 

Each series will assume all of the ownership risks attached to its underlying assets, including third-party liability risks. Therefore, the series may be liable to a third party for any loss or damages incurred by it in connection with its underlying assets. This would be a loss to our company and, therefore, deductible from any income or capital proceeds payable in respect of the series from the related underlying assets, in turn adversely affecting the value of the series to which the underlying assets relate and the likelihood of any distributions being made by us.

 

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We could be exposed to losses and/or reputational harm as a result of various claims and lawsuits incidental to the ordinary course of our business.

 

We may become involved in various legal proceedings, lawsuits and other claims incidental to the ordinary course of our business. We are required to assess the likelihood of any adverse judgments or outcomes in these matters, as well as potential ranges of probable or reasonably possible losses. A determination of the amount of losses, if any, to be recorded or disclosed as a result of these contingencies will be based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel. The amount of losses recorded or disclosed for such contingencies may change in the future due to new developments in each matter or a change in settlement strategy.

 

The value of the underlying assets may depend on a prior owner or association and, therefore, may be out of our control.

 

The value of an underlying asset may be connected with its prior ownership by, or association with, a certain person or group or in connection with certain pop culture events or films. In the event that such person or group loses public affection, then this may adversely impact the value of the underlying asset and, therefore, the series that relates to such underlying asset.

 

Risks Related to Potential Conflicts of Interest

 

Management Compensation

 

None of the compensation set forth under "Management Compensation" was determined by arms' length negotiations, including the Sourcing Fee, Administrative Fee and Service Fee. It is anticipated that the commissions and profits received by the Managers (including Managers who are not the Managing Member (e.g., Skimmer Music LLC)) may be higher or lower depending upon market conditions.

 

Our operating agreement contains provisions that reduce or eliminate duties (including fiduciary duties) of our Managers and Managing Member.

 

Our operating agreement provides that each of our Managers and Managing Member, in exercising its rights in its capacity as Manager or Managing Member, as applicable, will be entitled to consider only such interests and factors as it desires, including its own interests, and will have no duty or obligation (fiduciary or otherwise) to give any consideration to any interest of or factors affecting us or any of our investors and will not be subject to any different standards imposed by our operating agreement, the Limited Liability Company Act (the “LLC Act”) or under any other law, rule or regulation or in equity. These modifications of fiduciary duties are expressly permitted by Delaware law.

 

Our Managers face a conflict of interest because the amount they receive for services performed for us is based on our Free Cash Flow, for which they are responsible for calculating.

 

Our operating agreement provides that each series will pay its Managers or their affiliates a Service Fee (half of which shall go to the Asset Manager, with the remaining half to the Administrative Manager). See “Management Compensation” for further details. The calculation of our Free Cash Flows involves certain subjective judgments including determining the amount to set aside for reserves, and assumptions for depreciations or classification of certain cash amounts. Because the calculation of the Free Cash Flow involves subjective judgment, there can be no assurance that the assumptions used by our internal accountants and team members of our Administrative Manager and Asset Manager to calculate our Free Cash Flow, or the resulting Free Cash Flow, will be identical to the assumptions that would be used, or the Free Cash Flow that would be calculated, by an independent consultant. In addition, our Managers may benefit by selling or disposing of our assets at times when our shareholders may be better served by holding our assets or may benefit from increasing the amount of risk in a series in order to increase the amount they may receive in a particular year as their Service Fee.

 

Conflicts may arise from allocations of income and expenses as between series.

 

There may be situations when it is challenging or impossible to accurately allocate income, costs and expenses to a specific series and certain series may get a disproportionate percentage of the cost or income, as applicable. In such circumstances, including how it may impact our Service Fee, our Managers would be conflicted from acting in the best interests of our company as a whole. While we presently intend to allocate expenses as described in “The Company’s Business—Allocations of Expenses,” our Managers have the right to change this allocation policy at any time without further notice to investors.

 

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There may be conflicting interests among our Managers and investors.

 

Our Managing Member has the ability to unilaterally amend the operating agreement and allocation policy. As our Managing Member is party, or subject, to these documents, it may be incentivized to amend them in a manner that is beneficial to it as the Administrative Manager of our company or a series or may amend it in a way that is not beneficial for all investors. In addition, the operating agreement seeks to limit the fiduciary duties that our Managing Member owes to investors in our company and its series. Therefore, our Managing Member is permitted to act in its own best interests rather than the best interests of the investors. See “The Company’s Business” for more information.

 

Conflicts may exist between legal counsel, our company, our Asset Managers and their affiliates.

 

Our legal counsel is also counsel to our Asset Managers and their affiliates, and may serve as counsel with respect to a series. Because such legal counsel represents both our company and such other parties, certain conflicts of interest exist and may arise. To the extent that an irreconcilable conflict develops between us and any of the other parties, legal counsel may represent such other parties and not our company or a series. Legal counsel may, in the future, render services to us or other related parties with respect to activities relating to our company as well as other unrelated activities. Legal counsel is not representing any prospective investors in connection with any offering and will not be representing equity holders of our company other than our Asset Managers, although the prospective investors may rely on the opinion of legal counsel with respect to the validity of the securities filed as Exhibit 12.1 to the offering statement. Prospective investors are advised to consult their own independent counsel with respect to the other legal and tax implications of an investment in our securities.

 

Certain aspect of the compensation structure we have in place for Managers of our Series  may lead to conflicts of interest between a series and its investors.

 

Manager of a series are entitled to a Service Fee which will be at least 50% of any Free Cash Flow after payment of the Preferred Return (half of which will go to the Asset Manager of that series, with the remaining half going to the Administrative Manager) (See the “Management Compensation” section this Offering Circular). Preferred Return must be paid to investors in a series before the Managers of a series can receive their Service Fee. If a series is underperforming, it may be very difficult for the Managers to generate enough cash flow to earn a Service Fee – especially in light of the fact that Preferred Return accrues if not paid. This could have an adversely affect the incentives for the Series Managers to perform their duties, and may cause they do not perform their duties altogether for a series. Such a result would adversely impact the value of your investment in that particular series.

 

Asset Managers for our Series may face Conflicts of Interest resulting from providing services to our Series and to other entities to which the Asset Managers provide services.

 

The Asset Managers for our Series are not required to work exclusively for our Series. Such Asset Managers may perform similar services for other funds and entities. There is a risk that the Asset Managers will allocate desirable assets to funds other than the series that you have invested in, if, for example, the Asset Manager is entitled to a more favorable compensation structure with another entity for which it provides services. If the Asset Manager for your Series does not allocate at least equal assets to each of the companies with which it works, it may harm the value of your investment in that series.

 

Risks Relating to the Offering and Ownership of Our Series Shares

 

We intend to have our securities quoted on a new alternative trading system (“ATS”), and there can be no assurances that any public market will ever develop; even if developed, trading is likely to be subject to significant price fluctuations.

 

The only formal marketplace for the resale of our securities will be StartEngine Secondary, an ATS operated by our affiliate, StartEngine Primary LLC. StartEngine Secondary is a new entrant to the alternative trading system market and our securities have yet to be resold on the ATS. Consequently, there can be no assurances as to whether:

 

·any market for shares in any series will develop;

 

·the price at which shares for a series will trade; or

 

·the extent to which investor in us will lead to the development of an active, liquid trading market.

 

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Active trading markets generally result in lower price volatility and more efficient execution of buy and sell orders for investments. Until an orderly market develops in the shares of any series, if ever, the price at which they trade is likely to fluctuate significantly. Prices for shares in a series will be determined in the marketplace and may be influenced by many factors, including the depth and liquidity of the market for those shares, developments affecting our business, including the impact of the factors referred to elsewhere in these risk factors, investor perception of our company and a particular series and general economic and market conditions. No assurances can be given that an orderly or liquid market will ever develop for the shares of a series. We cannot assure you that trading prices for shares of a particular series will not be significantly lower than the price at which such securities are sold in this offering.

 

Investors in this offering may not be entitled to a jury trial with respect to claims arising under our operating agreement or subscription agreement, which could result in less favorable outcomes to the plaintiff(s) in any action under the operating agreement or subscription agreement.

 

Investors in this offering will be bound by our operating agreement, which establishes the rights of members and rules for governance of our company. Under Section 15.08 of our operating agreement, investors waive the right to a jury trial of any claim they may have against our company arising out of or relating to the operating agreement, or the action of becoming an interest holder in a series. This includes legal actions that include claims based on federal securities laws. In addition, investors in this offering will also execute a subscription agreement with a similar jury trial waiver. By subscribing to an offering of a series, the investor signs the subscription agreement by which the investor agrees to adhere to the operating agreement, under both of which such investor waives their right to our jury trial.

 

If we opposed a jury trial demand based on one of the waivers, a court would determine whether such waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable state and federal law. To our knowledge, the enforceability of a contractual pre-dispute jury trial waiver in connection with claims arising under the federal securities laws has not been finally adjudicated by a federal court. However, we believe that a contractual pre-dispute jury trial waiver provision is generally enforceable, including under the laws of the State of Delaware, which govern the operating agreement and subscription agreement. In determining whether to enforce a contractual pre-dispute jury trial waiver provision, courts will generally consider whether the visibility of the jury trial waiver provision within the agreement is sufficiently prominent such that a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this is the case with respect to each of the operating agreement and subscription agreement. You should consult legal counsel regarding the jury waiver provision before investing in this offering.

 

If you bring a claim against our company in connection with matters arising under the operating agreement and/or subscription agreement, including claims under federal securities laws, you may not be entitled to a jury trial with respect to those claims, which may have the effect of limiting and discouraging lawsuits against our company. If a lawsuit is brought against our company under the operating agreement or subscription agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have had, including results that could be less favorable to the plaintiff(s) in such an action.

 

Nevertheless, if this jury trial waiver provision is not permitted by applicable law, an action could proceed under the terms of the either agreement with a jury trial. No condition, stipulation or provision of the either agreement serves as a waiver by any member of a series or by our company of compliance with any substantive provision of the federal securities laws and the rules and regulations promulgated under those laws.

 

In addition, when the shares are transferred, the transferee is required to agree to all the same conditions, obligations and restrictions applicable to the shares or to the transferor with regard to ownership of the shares, that were in effect immediately prior to the transfer of the shares, including but not limited to those in the operating agreement and subscription agreement.

 

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Our operating agreement and subscription agreement have forum selection provisions that requires that certain disputes be resolved in the Court of Chancery of the State of Delaware, regardless of convenience or cost to shareholders.

 

Under our subscription agreement and under Section 15.08 of our operating agreement, shareholders are required to resolve disputes related to the governance of our company in the Court of Chancery located in the State of Delaware. The forum selection provision in our operating agreement applies to any suit, action, or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with our operating agreement, or the transactions authorized by the agreement, including that of the admission of shareholders to a series of our company. The forum selection provision in our subscription agreement applies to all actions or proceedings relating to the subscription agreement.

 

Our operating agreement and subscription agreement further provide that, should the Court of Chancery in the State of Delaware not have jurisdiction over the matter, the suit, action, or proceeding may be brought in the appropriate federal or state court located in the State of Delaware. We intend for these forum selection provisions to also apply to claims brought under federal securities law. Our company acknowledges that, for claims arising under the Exchange Act, Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder, requiring such matters to be heard in federal court. In contrast, Section 22 of the Securities Act provides for concurrent jurisdiction between federal and state courts for matters arising under the Securities Act.

 

The forum selection provisions in our operating agreement and subscription agreement may limit shareholders’ ability to obtain a favorable judicial forum for disputes with us our Managers, employees or agents, which may discourage lawsuits against us and such persons. The requirement that any action be heard in the Chancery Court of Delaware, or alternatively in a competent court in the State of Delaware, if applicable, may also create additional expense for any person contemplating an action against our company, or limit the access to information to undertake such an action, further discouraging lawsuits.

 

It is also possible that, notwithstanding the forum selection clauses included in our operating agreement and subscription agreement, a court could rule that such provisions are inapplicable or unenforceable. Alternatively, if a court were to find one or both provisions inapplicable to, or unenforceable in, an action, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our business, financial condition or results of operations.

 

In addition, when the shares are transferred, the transferee is required to agree to all the same conditions, obligations and restrictions applicable to the shares or to the transferor with regard to ownership of the shares, that were in effect immediately prior to the transfer of the shares, including but not limited to those in the operating agreement and subscription agreement.

 

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If our series limited liability structure is not respected, then investors may have to share in any liabilities of our company with all investors and not just those who hold the same series of interests as them.

 

Our company is structured as a Delaware series limited liability company that issues different series of interests for each underlying asset or group of underlying assets. Each series of interest will merely be a separate series and not a separate legal entity. Under the LLC Act, if certain conditions (as set forth in Section 18-215(b) of the LLC Act) are met, the liability of investors holding one series of interests is segregated from the liability of investors holding another series of interests and the assets of one series of interests are not available to satisfy the liabilities of other series of interests. Although this limitation of liability is recognized by the courts of Delaware, there is no guarantee that if challenged in the courts of another U.S. state or a foreign jurisdiction, such courts will uphold a similar interpretation of Delaware corporation law, and in the past certain jurisdictions have not honored such interpretation. If our series limited liability company structure is not respected, then investors may have to share any liabilities of our company with all investors and not just those who hold the same series of interests as them. Furthermore, while we intend to maintain separate and distinct records for each series of interests and account for them separately and otherwise meet the requirements of the LLC Act, it is possible a court could conclude that the methods used did not satisfy Section 18-215(b) of the LLC Act and thus potentially expose the assets of a series to the liabilities of another series of interests. The consequence of this is that investors may have to bear higher than anticipated expenses which would adversely affect the value of their interests or the likelihood of any distributions being made by the series to the investors. In addition, we are not aware of any court case that has tested the limitations on inter-series liability provided by Section 18-215(b) in federal bankruptcy courts and it is possible that a bankruptcy court could determine that the assets of one series of interests should be applied to meet the liabilities of the other series of interests or the liabilities of our company generally where the assets of such other series of interests or of our company generally are insufficient to meet our liabilities.

 

If any fees, costs and expenses of our company are not allocable to a specific series of interests, they will be borne proportionately across all of the series of interests. Although our Managing Member (with assistance from the Administrative Manager) will allocate fees, costs and expenses acting reasonably and in accordance with its allocation policy (see “The Company’s Business—Allocations of Expenses”), there may be situations where it is difficult to allocate fees, costs and expenses to a specific series of interests and therefore, there is a risk that a series of interests may bear a proportion of the fees, costs and expenses for a service or product for which another series of interests received a disproportionately high benefit.

 

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Possible changes in federal/local tax laws or the application of existing federal/local tax laws may result in significant variability in our results of operations and tax liability for the investor.

 

The Internal Revenue Code of 1986, as amended, is subject to change by Congress, and interpretations may be modified or affected by judicial decisions, by the Treasury Department through changes in regulations and by the Internal Revenue Service through its audit policy, announcements, and published and private rulings. Although significant changes to the tax laws historically have been given prospective application, no assurance can be given that any changes made in the tax law affecting an investment in any series of shares of our company would be limited to prospective effect. Accordingly, the ultimate effect on an investor’s tax situation may be governed by laws, regulations or interpretations of laws or regulations which have not yet been proposed, passed or made, as the case may be.

 

Furthermore, investors may reside in various tax jurisdictions throughout the world. Failure to assess or pay the correct amount of tax on a transaction may expose us to claims from tax authorities. 

 

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DILUTION

 

Under our operating agreement, we have authority to issue an unlimited number of additional shares or other securities in each series. After your investment in this offering, the Managing Member may elect to: (i) sell additional shares in this or future public offerings (whether on Form 1-A or otherwise), (ii) issue equity interests in private offerings or (iii) issue shares for payment as compensation our Managers or third-parties. To the extent we issue additional shares in a series after your purchase shares of that series in this offering, your percentage ownership interest in that series will be diluted. In addition, depending upon the terms and pricing of any additional offerings and the value of our investments, you could also experience dilution in the book value and fair value of your shares.

 

PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS

 

Plan of Distribution

 

We are offering, on a best efforts basis, the shares (consisting of membership interests) of each of the series of our company in the “Series Offering Table” beginning on page 9 of this Offering Circular. The offering price for each series was determined by our Administrative Manager.

 

The minimum subscription by an investor is listed in the “Series Offering Table” and the maximum subscription by any investor is for interests representing 5% of the total interests of a particular series, although such minimum and maximum thresholds may be waived or modified by our Administrative Manager in its sole discretion.

 

For up to the first thirty days of an offering of a series, the Administrative Manager may choose, in its sole discretion, to open the offering of a series exclusively to members of the StartEngine OWNers bonus program*.

 

There will be a separate closing with respect to each offering. The closing of an offering will occur on the earliest to occur of (i) the date subscriptions for the maximum number of shares offered for a series have been accepted or (ii) a date determined by our Administrative Manager in its sole discretion, provided that subscriptions for the minimum number of shares offered for a series have been accepted. If closing has not occurred, an offering shall be terminated upon (i) the date which is one year from the date such offering circular or amendment thereof, as applicable, is qualified by the Commission, which period may be extended with respect to a particular series by an additional six months by the Administrative Manager in its sole discretion, or (ii) any date on which our Administrative Manager elects to terminate the offering for a particular series in its sole discretion. In the case where the company enters into a purchase option agreement, an offering may never be launched, or a closing may not occur, in the case the company does not exercise the purchase option before the purchase option agreement’s expiration date, or the expiration date is not extended.

 

StartEngine Assets LLC (our Managing Member and Administrative Manager) may or purchase shares offered in a series’ offering for the same price as all other investors, subject to the same minimum and maximum investment thresholds as other investors in that offering, although such minimum and maximum thresholds may be waived or modified by StartEngine Assets in its sole discretion.

 

The company is initially offering its securities in all states other than Florida, Texas and North Dakota. The company may choose to make the appropriate filings to become an “issuer-dealer” in these states, or to record company officers as agents, in which case it will start to sell in those states. In the event the company makes arrangements with a broker-dealer (including an affiliated broker-dealer) to sell into these or other states, it will file a Supplement to this Offering Circular.

 

The company’s Offering Circular will be furnished to prospective investors in this offering via download 24 hours a day, 7 days a week on the startengine.com website.

 

*The general public can become members of the StartEngine OWNers bonus program on StartEngine's website for $275 per year. Membership will auto renew every year. A member of the program can cancel their renewal at any time. Once the individual cancels, their membership will expire on the next anniversary of their membership. StartEngine Crowdfunding, Inc. will determine whether an investor qualifies as a StartEngine OWNer.

 

Process of Subscribing

 

After the Commission has qualified the offering statement, we will accept tenders of funds to purchase the shares of series of our company. Prospective investors who submitted non-binding indications of interest during the “test the waters” period will receive an automated message from us indicating that the offering for a particular series is open for investment.

 

Provided that subscriptions for the minimum number of interests offered for a series have been received, the company will undertake a single closing for investors in that series. Investors may subscribe by tendering funds by wire, credit, or debit card or ACH transfer to the escrow account to be set up by the Escrow Agent. Tendered funds will remain in escrow until closing has occurred. Upon closing, funds tendered by investors will be made available to the company for its use.

 

Investors will be required to complete a subscription agreement in order to invest in a particular series. The subscription agreement includes a representation by the investor to the effect that, if the investor is not an “accredited investor” as defined under securities law, the investor is investing an amount that does not exceed the greater of 10% of his or her annual income or 10% of your net worth (excluding the investor’s principal residence).

 

The subscription procedure is summarized as follows:

 

1.Go to the company’s page on www.startengine.com/assets and click on the “Invest Now” button;
2.Complete the online investment form;

3.Deliver funds directly by wire, debit card, credit card or electronic funds transfer via ACH to the specified account;
4.Once funds or documentation are received an automated AML check will be performed to verify the identity and status of the investor;
5.Once AML is verified, investor will electronically receive, review, execute and deliver to us a subscription agreement.

 

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The company has entered into an Escrow Services Agreement with Prime Trust LLC (“Prime Trust” or the “Escrow Agent”). Prime Trust is a Nevada registered trust company that offers escrow services as well as an integrated technology platform for processing investment transactions. The company has agreed to pay Prime Trust: (i) technology transaction fee of $2.50 per for each subscription processed regardless if the company accepts the investment, (ii) $250 for escrow account set up fee, (iii) $25 per month for so long as the offering is being conducted, (iv) for investments over $2,000, $2 per domestic investor (individual) and $5 per domestic investor (entity) for anti-money laundering check (up to $60 for international investors (individuals) and $75 for international investors (entities)), (v) $3.00 per investor (one-time accounting fee upon receipt of funds), and (vi) any applicable fees for fund transfers (ACH $1, check $10, wire $15 or $35 for international). Each series will generally be responsible for fees due to the Escrow Agent, which are categorized as Offering Expenses.

 

Investor funds will be held by the Escrow Agent pending closing or termination of the offering.  All subscribers will be instructed by the company or its agents to transfer funds by wire, credit or debit card, or ACH transfer directly to the escrow account established for this offering. The company may terminate the offering for a particular series at any time for any reason at its sole discretion. Investors should understand that acceptance of their funds into escrow does not necessarily result in their receiving shares; escrowed funds may be returned.

 

Prime Trust is not participating as an underwriter or placement agent or sales agent of this offering and will not solicit any investment in the company, recommend the company’s securities or provide investment advice to any prospective investor, and no communication through any medium, including any website, should be construed as such, or distribute this Offering Circular or other offering materials to investors. The use of Prime Trust’s technology should not be interpreted and is not intended as an endorsement or recommendation by it of the company or this offering. All inquiries regarding this offering or escrow should be made directly to the company.

 

In the event that the company terminates the offering while investor funds are held in escrow, those funds will promptly be refunded to each investor without deduction or interest and in accordance with Rule 10b-9 under the Exchange Act.

 

No Selling Security holders

 

No securities are being sold for the account of security holders. All net proceeds of this offering will go to the company.

 

Transfer Agent and Registrar

 

The company has engaged StartEngine Secure LLC, a registered transfer agent with the SEC, who will serve as transfer agent to maintain shareholder information on a book-entry basis. StartEngine Secure LLC is an affiliate of our company and its Managers.

 

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Provisions of Note in Our Subscription Agreement

 

While there is a separate subscription agreement that will be used in connection with each series’ offering, the same form of subscription agreement will be used for each series. Our “form” subscription agreement includes forum selection provisions that require any claims against the company based on the subscription agreement not arising under the federal securities laws to be brought in a court of competent jurisdiction in the State of Delaware. These forum selection provisions may limit investors’ ability to bring claims in judicial forums that they find favorable to such disputes and may discourage lawsuits with respect to such claims. The company has adopted these provisions to limit the time and expense incurred by its management to challenge any such claims. As a company with a small management team, this provision allows its officers not to lose a significant amount of time traveling to any particular forum so they may continue to focus on operations of the company.

 

Jury Trial Waiver

 

While there is a separate subscription agreement that will be used in connection with each series’ offering, the same form of subscription agreement will be used for each series. Our “form” subscription agreement includes forum selection and jury waiver provisions. See, “Securities Being Offered – Exclusive Jurisdiction” and “Securities Being Offered - Waiver of Right to Trial by Jury” and for more information on these provisions.

 

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USE OF PROCEEDS TO ISSUER

 

The allocation of the net proceeds of each offering set forth below represents our intentions based upon our current plans and assumptions regarding industry and general economic conditions, our future revenues, if any, and expenditures. The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations, business developments, and related rate of growth. The Managers of each series reserve the right to modify the use of proceeds based on the factors set forth below. Neither our company nor any series are expected to keep any of the proceeds from any offering. In the event that less than the maximum number of shares are sold in connection with any offering, our Administrative Manager may pay, and not seek reimbursement for, any Brokerage Fees and Acquisition Expenses.

 

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Series Wine #2020PAVIE

 

The table below sets forth our estimated use of proceeds from this Series Wine #2020PAVIE offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $19,992    86.96%
Offering and Formation Expenses (1)  $0    0%
Acquisition Expenses (2)  $0    0%
Sourcing Fee (3)  $2,998    13.04%
Total Fees and Expenses  $22,290    100%
Total Proceeds  $22,290    100.0%

  

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2020PAVIE Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2020PAVIE is $1,149.50 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2020PAVIE monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2020PAVIE does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2020PAVIE, the Managing Member may require that up to $1,149.50 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2020PAVIE.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $1,149.50 in Offering and Formation Expenses that is reimbursable by Series Wine #2020PAVIE represents a portion of this total. See “Plan of Distribution.”  

   
(2) Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.  
   
(3) The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.    

 

Series Wine #2020PAVIE reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

Series Wine #2020CHBL

 

The table below sets forth our estimated use of proceeds from this Series Wine #2020CHBL offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $19,992    86.96%
Offering and Formation Expenses (1)  $0    0%
Acquisition Expenses (2)  $0    0%
Sourcing Fee (3)  $2,998    13.04%
Total Fees and Expenses  $22,290    100%
Total Proceeds  $22,290    100.0%

  

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2020CHBL Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2020CHBL is $579.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2020CHBL monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2020CHBL does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2020CHBL, the Managing Member may require that up to $579.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2020CHBL.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $579.00 in Offering and Formation Expenses that is reimbursable by Series Wine #2020CHBL represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2020CHBL reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

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Series Wine #2020AUSO

 

The table below sets forth our estimated use of proceeds from this Series Wine #2020AUSO offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $19,992    86.96%
Offering and Formation Expenses (1)  $0    0%
Acquisition Expenses (2)  $0    0%
Sourcing Fee (3)  $2,998    13.04%
Total Fees and Expenses  $22,290    100%
Total Proceeds  $22,290    100.0%

  

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2020AUSO Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2020AUSO is $1,465.50 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2020AUSO monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2020AUSO does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2020AUSO, the Managing Member may require that up to $1,465.50 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2020AUSO.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $1,465.50 in Offering and Formation Expenses that is reimbursable by Series Wine #2020AUSO represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2020AUSO reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

Series Wine #2020ANGE

 

The table below sets forth our estimated use of proceeds from this Series Wine #2020ANGE offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $19,992    86.96%
Offering and Formation Expenses (1)  $0    0%
Acquisition Expenses (2)  $0    0%
Sourcing Fee (3)  $2,998    13.04%
Total Fees and Expenses  $22,290    100%
Total Proceeds  $22,290    100.0%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2020ANGE Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2020ANGE is $763.50 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2020ANGE monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2020ANGE does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2020ANGE, the Managing Member may require that up to $763.50 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2020ANGE.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $763.50 in Offering and Formation Expenses that is reimbursable by Series Wine #2020ANGE represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2020ANGE reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

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Series Wine #2020CERT

 

The table below sets forth our estimated use of proceeds from this Series Wine #2020CERT offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $19,992    86.96%
Offering and Formation Expenses (1)  $0    0%
Acquisition Expenses (2)  $0    0%
Sourcing Fee (3)  $2,998    13.04%
Total Fees and Expenses  $22,290    100%
Total Proceeds  $22,290    100.0%

  

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2020CERT Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2020CERT is $575.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2020CERT monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2020CERT does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2020CERT, the Managing Member may require that up to $575.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2020CERT.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $575.00 in Offering and Formation Expenses that is reimbursable by Series Wine #2020CERT represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2020CERT reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

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Series Wine #2000LAFL

 

The table below sets forth our estimated use of proceeds from this Series Wine #2000LAFL offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $54,142.90    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $8,117.10    13.04%
Total Fees and Expenses  $62,260.00    100.00%
Total Proceeds  $62,260.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2000LAFLShares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2000LAFL is $3,113.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2000LAFL monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2000LAFL does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2000LAFL, the Managing Member may require that up to $3,113.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2000LAFL.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,113.00 in Offering and Formation Expenses that is reimbursable by Series Wine #2000LAFL represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2000LAFLreserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

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Series Wine #2015HBRI

 

The table below sets forth our estimated use of proceeds from this Series Wine #2015HBRI offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $34,480.00    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $5,1,70.00    13.04%
Total Fees and Expenses  $39,650.00    100.00%
Total Proceeds  $39,650.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2015HBRIShares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2015HBRI is $1,982.50 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2015HBRI monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2015HBRI does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2015HBRI, the Managing Member may require that up to $1,982.50 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2015HBRI.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $1,982.50 in Offering and Formation Expenses that is reimbursable by Series Wine #2015HBRI represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2015HBRIreserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

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Series Wine #2000EGLC

 

The table below sets forth our estimated use of proceeds from this Series Wine #2000EGLC offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $43,688.00    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $6,552.00    13.04%
Total Fees and Expenses  $50,240.00    100.00%
Total Proceeds  $50,240.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2000EGLCShares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2000EGLC is $2,512.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2000EGLC monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2000EGLC does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2000EGLC, the Managing Member may require that up to $2,512.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2000EGLC.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $2,512.00 in Offering and Formation Expenses that is reimbursable by Series Wine #2000EGLC represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2000EGLCreserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

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Series Wine #2005LPIN

 

The table below sets forth our estimated use of proceeds from this Series Wine #2005LPIN offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $48,777.30    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $7,312.70    13.04%
Total Fees and Expenses  $56,090.00    100.00%
Total Proceeds  $56,090.00    100.00%

  

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Wine #2005LPINShares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Wine #2005LPIN is $2,804.50 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Wine #2005LPIN monthly to the Managing Member until the amount is reimbursed in full. Series Wine #2005LPIN does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Wine #2005LPIN, the Managing Member may require that up to $2,804.50 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Wine #2005LPIN.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $$2,804.50 in Offering and Formation Expenses that is reimbursable by Series Wine #2005LPIN represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.

 

Series Wine #2005LPINreserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

39

 

 

Series Music #JIMMYPAGE1

 

The table below sets forth our estimated use of proceeds from this Series Music #JIMMYPAGE1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $65,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $9,782.61    13.04%
Total Fees and Expenses  $75,000.00    100.00%
Total Proceeds  $75,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #JIMMYPAGE1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #JIMMYPAGE1 is $3,750.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #JIMMYPAGE1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #JIMMYPAGE1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #JIMMYPAGE1, the Managing Member may require that up to $3,750.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #JIMMYPAGE1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,750.00 in Offering and Formation Expenses that is reimbursable by Series Music #JIMMYPAGE1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3) The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager.  For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #JIMMYPAGE1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

40

 

 

Series Music #MORRISON1

 

The table below sets forth our estimated use of proceeds from this Series Music #MORRISON1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $65,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $9,782.61    13.04%
Total Fees and Expenses  $75,000.00    100.00%
Total Proceeds  $75,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #MORRISON1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #MORRISON1 is $3,750.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #MORRISON1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #MORRISON1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #MORRISON1, the Managing Member may require that up to $3,750.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #MORRISON1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,750.00 in Offering and Formation Expenses that is reimbursable by Series Music #MORRISON1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

 

Series Music #MORRISON1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

41

 

 

Series Music #CORNELL1

 

The table below sets forth our estimated use of proceeds from this Series Music #CORNELL1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $52,173.91    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $7,826.09    13.04%
Total Fees and Expenses  $60,000.00    100.00%
Total Proceeds  $60,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #CORNELL1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #CORNELL1 is $3,000.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #CORNELL1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #CORNELL1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #CORNELL1, the Managing Member may require that up to $3,000.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #CORNELL1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,000.00 in Offering and Formation Expenses that is reimbursable by Series Music #CORNELL1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #CORNELL1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

42

 

 

Series Music #HENDRIX1

 

The table below sets forth our estimated use of proceeds from this Series Music #HENDRIX1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $52,173.91    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $7,826.09    13.04%
Total Fees and Expenses  $60,000.00    100.00%
Total Proceeds  $60,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #HENDRIX1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #HENDRIX1 is $3,000.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #HENDRIX1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #HENDRIX1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #HENDRIX1, the Managing Member may require that up to $3,000.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #HENDRIX1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,000.00 in Offering and Formation Expenses that is reimbursable by Series Music #HENDRIX1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #HENDRIX1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

43

 

 

Series Music #MCCARTNEY1

 

The table below sets forth our estimated use of proceeds from this Series Music #MCCARTNEY1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $260,869.57    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $39,130.43    13.04%
Total Fees and Expenses  $300,000.00    100.00%
Total Proceeds  $300,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #MCCARTNEY1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #MCCARTNEY1 is $15,000.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #MCCARTNEY1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #MCCARTNEY1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #MCCARTNEY1, the Managing Member may require that up to $15,000.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #MCCARTNEY1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $15,000.00 in Offering and Formation Expenses that is reimbursable by Series Music #MCCARTNEY1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #MCCARTNEY1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

44

 

 

Series Music #MORRISON2

 

The table below sets forth our estimated use of proceeds from this Series Music #MORRISON2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $65,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $9,782.61    13.04%
Total Fees and Expenses  $75,000.00    100.00%
Total Proceeds  $75,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #MORRISON2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #MORRISON2 is $3,750.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #MORRISON2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #MORRISON2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #MORRISON2, the Managing Member may require that up to $3,750.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #MORRISON2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,750.00 in Offering and Formation Expenses that is reimbursable by Series Music #MORRISON2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #MORRISON2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

45

 

 

Series Music #WILSON1

 

The table below sets forth our estimated use of proceeds from this Series Music #WILSON1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $260,869.57    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $39,130.43    13.04%
Total Fees and Expenses  $300,000.00    100.00%
Total Proceeds  $300,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #WILSON1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #WILSON1 is $15,000.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #WILSON1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #WILSON1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #WILSON1, the Managing Member may require that up to $15,000.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #WILSON1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $15,000.00 in Offering and Formation Expenses that is reimbursable by Series Music #WILSON1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #WILSON1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

46

 

 

Series Music #PRINCE1

 

The table below sets forth our estimated use of proceeds from this Series Music #PRINCE1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $217,391.30    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $32,608.70    13.04%
Total Fees and Expenses  $250,000.00    100.00%
Total Proceeds  $250,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #PRINCE1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #PRINCE1 is $12,500.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #PRINCE1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #PRINCE1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #PRINCE1, the Managing Member may require that up to $12,500.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #PRINCE1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $12,500.00 in Offering and Formation Expenses that is reimbursable by Series Music #PRINCE1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #PRINCE1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

47

 

 

Series Music #VANHALEN1

 

The table below sets forth our estimated use of proceeds from this Series Music #VANHALEN1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $65,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $9,782.61    13.04%
Total Fees and Expenses  $75,000.00    100.00%
Total Proceeds  $75,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #VANHALEN1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #VANHALEN1 is $3,750.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #VANHALEN1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #VANHALEN1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #VANHALEN1, the Managing Member may require that up to $3,750.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #VANHALEN1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,750.00 in Offering and Formation Expenses that is reimbursable by Series Music #VANHALEN1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #VANHALEN1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

48

 

 

Series Music #SPRINGSTEEN1

 

The table below sets forth our estimated use of proceeds from this Series Music #SPRINGSTEEN1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $217,391.30    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $32,608.70    13.04%
Total Fees and Expenses  $250,000.00    100.00%
Total Proceeds  $250,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #SPRINGSTEEN1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #SPRINGSTEEN1 is $12,500.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #SPRINGSTEEN1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #SPRINGSTEEN1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #SPRINGSTEEN1, the Managing Member may require that up to $12,500.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #SPRINGSTEEN1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $12,500.00 in Offering and Formation Expenses that is reimbursable by Series Music #SPRINGSTEEN1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #SPRINGSTEEN1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

49

 

 

Series Music #BEATLES1

 

The table below sets forth our estimated use of proceeds from this Series Music #BEATLES1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $43,478.26    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $6,521.74    13.04%
Total Fees and Expenses  $50,000.00    100.00%
Total Proceeds  $50,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #BEATLES1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #BEATLES1 is $2,500.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #BEATLES1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #BEATLES1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #BEATLES1, the Managing Member may require that up to $2,500.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #BEATLES1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $2,500.00 in Offering and Formation Expenses that is reimbursable by Series Music #BEATLES1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #BEATLES1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

50

 

 

Series Music #DYLAN1

 

The table below sets forth our estimated use of proceeds from this Series Music #DYLAN1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $65,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $9,782.61    13.04%
Total Fees and Expenses  $75,000.00    100.00%
Total Proceeds  $75,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #DYLAN1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #DYLAN1 is $3,750.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #DYLAN1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #DYLAN1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #DYLAN1, the Managing Member may require that up to $3,750.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #DYLAN1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,750.00 in Offering and Formation Expenses that is reimbursable by Series Music #DYLAN1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #DYLAN1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

51

 

 

Series Music #DYLAN2

 

The table below sets forth our estimated use of proceeds from this Series Music #DYLAN2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $65,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $9,782.61    13.04%
Total Fees and Expenses  $75,000.00    100.00%
Total Proceeds  $75,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #DYLAN2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #DYLAN2 is $3,750.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #DYLAN2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #DYLAN2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #DYLAN2, the Managing Member may require that up to $3,750.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #DYLAN2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $3,750.00 in Offering and Formation Expenses that is reimbursable by Series Music #DYLAN2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #DYLAN2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

52

 

 

Series Music #SPRINGSTEEN2

 

The table below sets forth our estimated use of proceeds from this Series Music #SPRINGSTEEN2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $78,260.87    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $11,739.13    13.04%
Total Fees and Expenses  $90,000.00    100.00%
Total Proceeds  $90,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #SPRINGSTEEN2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #SPRINGSTEEN2 is $4,500.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #SPRINGSTEEN2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #SPRINGSTEEN2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #SPRINGSTEEN2, the Managing Member may require that up to $4,500.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #SPRINGSTEEN2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $4,500.00 in Offering and Formation Expenses that is reimbursable by Series Music #SPRINGSTEEN2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #SPRINGSTEEN2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

53

 

 

Series Music #STONES1

 

The table below sets forth our estimated use of proceeds from this Series Music #STONES1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $173,913.04    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $26,086.96    13.04%
Total Fees and Expenses  $200,000.00    100.00%
Total Proceeds  $200,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #STONES1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #STONES1 is $10,000.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #STONES1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #STONES1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #STONES1, the Managing Member may require that up to $10,000.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #STONES1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $10,000.00 in Offering and Formation Expenses that is reimbursable by Series Music #STONES1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #STONES1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

54

 

 

Series Music #MCCARTNEY2

 

The table below sets forth our estimated use of proceeds from this Series Music #MCCARTNEY2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $173,913.04    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $26,086.96    13.04%
Total Fees and Expenses  $200,000.00    100.00%
Total Proceeds  $200,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #MCCARTNEY2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #MCCARTNEY2 is $10,000.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #MCCARTNEY2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #MCCARTNEY2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #MCCARTNEY2, the Managing Member may require that up to $10,000.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #MCCARTNEY2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $10,000.00 in Offering and Formation Expenses that is reimbursable by Series Music #MCCARTNEY2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #MCCARTNEY2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

55

 

 

Series Music #STONES2

 

The table below sets forth our estimated use of proceeds from this Series Music #STONES2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $217,391.30    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $32,608.70    13.04%
Total Fees and Expenses  $250,000.00    100.00%
Total Proceeds  $250,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #STONES2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #STONES2 is $12,500.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #STONES2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #STONES2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #STONES2, the Managing Member may require that up to $12,500.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #STONES2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $12,500.00 in Offering and Formation Expenses that is reimbursable by Series Music #STONES2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #STONES2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

56

 

 

Series Music #BEATLES2

 

The table below sets forth our estimated use of proceeds from this Series Music #BEATLES2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $108,695.65    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $16,304.35    13.04%
Total Fees and Expenses  $125,000.00    100.00%
Total Proceeds  $125,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #BEATLES2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #BEATLES2 is $6,250.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #BEATLES2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #BEATLES2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #BEATLES2, the Managing Member may require that up to $6,250.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #BEATLES2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $6,250.00 in Offering and Formation Expenses that is reimbursable by Series Music #BEATLES2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #BEATLES2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

57

 

 

Series Music #MJACKSON1

 

The table below sets forth our estimated use of proceeds from this Series Music #MJACKSON1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $43,478.26    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $6,521.74    13.04%
Total Fees and Expenses  $50,000.00    100.00%
Total Proceeds  $50,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #MJACKSON1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #MJACKSON1 is $2,500.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #MJACKSON1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #MJACKSON1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #MJACKSON1, the Managing Member may require that up to $2,500.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #MJACKSON1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $2,500.00 in Offering and Formation Expenses that is reimbursable by Series Music #MJACKSON1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #MJACKSON1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

58

 

 

Series Music #HENDRIX2

 

The table below sets forth our estimated use of proceeds from this Series Music #HENDRIX2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $108,695.65    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $16,304.35    13.04%
Total Fees and Expenses  $125,000.00    100.00%
Total Proceeds  $125,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #HENDRIX2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #HENDRIX2 is $6,250.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #HENDRIX2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #HENDRIX2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #HENDRIX2, the Managing Member may require that up to $6,250.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #HENDRIX2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $6,250.00 in Offering and Formation Expenses that is reimbursable by Series Music #HENDRIX2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #HENDRIX2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

59

 

 

Series Music #VANHALEN2

 

The table below sets forth our estimated use of proceeds from this Series Music #VANHALEN2 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $30,434.78    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $4,565.22    13.04%
Total Fees and Expenses  $35,000.00    100.00%
Total Proceeds  $35,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #VANHALEN2 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #VANHALEN2 is $1,750.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #VANHALEN2 monthly to the Managing Member until the amount is reimbursed in full. Series Music #VANHALEN2 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #VANHALEN2, the Managing Member may require that up to $1,750.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #VANHALEN2.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $1,750.00 in Offering and Formation Expenses that is reimbursable by Series Music #VANHALEN2 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #VANHALEN2reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

60

 

 

Series Music #VANHALEN3

 

The table below sets forth our estimated use of proceeds from this Series Music #VANHALEN3 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $39,130.43    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $5,869.57    13.04%
Total Fees and Expenses  $45,000.00    100.00%
Total Proceeds  $45,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #VANHALEN3 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #VANHALEN3 is $2,250.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #VANHALEN3 monthly to the Managing Member until the amount is reimbursed in full. Series Music #VANHALEN3 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #VANHALEN3, the Managing Member may require that up to $2,250.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #VANHALEN3.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $2,250.00 in Offering and Formation Expenses that is reimbursable by Series Music #VANHALEN3 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #VANHALEN3reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

61

 

 

Series Music #VANHALEN4

 

The table below sets forth our estimated use of proceeds from this Series Music #VANHALEN4 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $23,913.04    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $3,586.96    13.04%
Total Fees and Expenses  $27,500.00    100.00%
Total Proceeds  $27,500.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #VANHALEN4 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #VANHALEN4 is $1,375.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #VANHALEN4 monthly to the Managing Member until the amount is reimbursed in full. Series Music #VANHALEN4 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #VANHALEN4, the Managing Member may require that up to $1,375.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #VANHALEN4.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $1,375.00 in Offering and Formation Expenses that is reimbursable by Series Music #VANHALEN4 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #VANHALEN4reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

62

 

 

Series Music #KRAVITZ1

 

The table below sets forth our estimated use of proceeds from this Series Music #KRAVITZ1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $35,739.13    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $5,360.87    13.04%
Total Fees and Expenses  $41,100.00    100.00%
Total Proceeds  $41,100.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #KRAVITZ1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #KRAVITZ1 is $2,055.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #KRAVITZ1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #KRAVITZ1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #KRAVITZ1, the Managing Member may require that up to $2,055.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #KRAVITZ1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $2,055.00 in Offering and Formation Expenses that is reimbursable by Series Music #KRAVITZ1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #KRAVITZ1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

63

 

 

Series Music #HENDRIX3

 

The table below sets forth our estimated use of proceeds from this Series Music #HENDRIX3 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $286,956.52    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $43,043.48    13.04%
Total Fees and Expenses  $330,000.00    100.00%
Total Proceeds  $330,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #HENDRIX3 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #HENDRIX3 is $16,500.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #HENDRIX3 monthly to the Managing Member until the amount is reimbursed in full. Series Music #HENDRIX3 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #HENDRIX3, the Managing Member may require that up to $16,500.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #HENDRIX3.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $16,500.00 in Offering and Formation Expenses that is reimbursable by Series Music #HENDRIX3 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #HENDRIX3reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

64

 

 

Series Music #MOON1

 

The table below sets forth our estimated use of proceeds from this Series Music #MOON1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $107,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $16,082.61    13.04%
Total Fees and Expenses  $123,300.00    100.00%
Total Proceeds  $123,300.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #MOON1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #MOON1 is $6,165.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #MOON1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #MOON1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #MOON1, the Managing Member may require that up to $6,165.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #MOON1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $6,165.00 in Offering and Formation Expenses that is reimbursable by Series Music #MOON1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #MOON1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

65

 

 

Series Music #HENDRIX4

 

The table below sets forth our estimated use of proceeds from this Series Music #HENDRIX4 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $107,217.39    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $16,082.61    13.04%
Total Fees and Expenses  $123,300.00    100.00%
Total Proceeds  $123,300.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #HENDRIX4 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #HENDRIX4 is $6,165.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #HENDRIX4 monthly to the Managing Member until the amount is reimbursed in full. Series Music #HENDRIX4 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #HENDRIX4, the Managing Member may require that up to $6,165.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #HENDRIX4.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $6,165.00 in Offering and Formation Expenses that is reimbursable by Series Music #HENDRIX4 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #HENDRIX4reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

66

 

 

Series Music #REDDING1

 

The table below sets forth our estimated use of proceeds from this Series Music #REDDING1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $160,826.09    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $24,123.91    13.04%
Total Fees and Expenses  $184,950.00    100.00%
Total Proceeds  $184,950.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #REDDING1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #REDDING1 is $9,247.50 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #REDDING1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #REDDING1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #REDDING1, the Managing Member may require that up to $9,247.50 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #REDDING1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $9,247.50 in Offering and Formation Expenses that is reimbursable by Series Music #REDDING1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #REDDING1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

67

 

 

Series Music #HARRISON1

 

The table below sets forth our estimated use of proceeds from this Series Music #HARRISON1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $119,130.43    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $17,869.57    13.04%
Total Fees and Expenses  $137,000.00    100.00%
Total Proceeds  $137,000.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #HARRISON1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #HARRISON1 is $6,850.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #HARRISON1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #HARRISON1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #HARRISON1, the Managing Member may require that up to $6,850.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #HARRISON1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $6,850.00 in Offering and Formation Expenses that is reimbursable by Series Music #HARRISON1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #HARRISON1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

68

 

 

Series Music #TIOMMI1

 

The table below sets forth our estimated use of proceeds from this Series Music #TIOMMI1 offering.

 

Uses  Dollar Amount   Percentage of Gross
Cash Proceeds
 
Cash Portion of the Asset Cost  $23,826.09    86.96%
Offering and Formation Expenses (1)  $0    0.00%
Acquisition Expenses (2)  $0    0.00%
Sourcing Fee (3)  $3,573.91    13.04%
Total Fees and Expenses  $27,400.00    100.00%
Total Proceeds  $27,400.00    100.00%

 

(1)

Our Managing Member has assumed and will be reimbursed for Offering and Formation Expenses in connection with the offering of Series Music #TIOMMI1 Shares. The maximum Offering and Formation Expenses payable to the Managing Member by Series Music #TIOMMI1 is $1,370.00 (5% of the maximum offering amount), which is reimbursable in the amount of 0.5% of the maximum offering amount of Series Music #TIOMMI1 monthly to the Managing Member until the amount is reimbursed in full. Series Music #TIOMMI1 does not intend to use the proceeds from this offering to reimburse the Managing Member its Offering and Formation Expenses. To the extent such Offering and Formation Expenses have not been repaid at the liquidation or termination of Series Music #TIOMMI1, the Managing Member may require that up to $1,370.00 be reimbursed to the Managing Member for its Offering and Formation Expenses prior to any distributions being paid to the shareholders of Series Music #TIOMMI1.

 

Our company estimates that the total Offering and Formation Expenses to be incurred in connection with the formation of all its current series, qualification of the offering, and the marketing and distribution of shares of series of our company, including, without limitation, expenses for printing and amending offering statements or supplementing offering circulars, mailing and distribution costs, telephone, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees, will be $120,000. The $1,370.00 in Offering and Formation Expenses that is reimbursable by Series Music #TIOMMI1 represents a portion of this total. See “Plan of Distribution.”

 

(2)

Represents costs incurred in connection with the initial acquisition of the asset other than the cost to acquire the asset itself.

 

(3)

The Administrative Manager of our company will receive a sourcing fee of 15.0% of the amount paid for the underlying asset (“Sourcing Fee”) as compensation for due diligence services in evaluating, investigation and discovering the underlying assets. The Sourcing Fee is subject to change or may be waived in sole discretion of the Administrative Manager. For this series the Asset Manager has provided assistance in the sourcing of the underlying asset and the Administrative Manager has agreed to pay the Asset Manager up to 40% of its Sourcing Fee.

 

Series Music #TIOMMI1reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.

 

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THE UNDERLYING ASSETS

 

The discussions contained in this Offering Circular relating to the underlying wine assets of our series, the wineries, and their related industries are taken from third-party sources that we believe to be reliable, and we believe that the information from such sources contained herein is reasonable, and that the factual information is fair and accurate. The discussions contained in this Offering Circular relating to the underlying music collectible assets of our series were provided by the asset sellers and the information on their related industries are taken from third-party sources, for those source we believe them to be reliable, and we believe that the information from such sources contained herein is reasonable, and that the factual information is fair and accurate.

 

Series Wine #2020PAVIE

 

The Asset

 

Series Wine #2020PAVIE intends to purchase en primeur 60 bottles worth of Chateau Pavie 2020 Saint Emilion, 1er Grand Cru Classé 'A'. “En primeur” is a method of purchasing wines while the wine is still in the barrel – i.e. before the wine is bottled. A potential advantage of buying wines en primeur is that the wines may be acquired cheaper than if acquiring the same wine once bottled and released to the market. However, this is not guaranteed – and some wines may even lose value over time.

 

The Winery

 

Château Pavie is a winery in Saint-Émilion in the Bordeaux region of France. It lies on the plateau to the southeast of Saint Emilion village. In 2012, it was classified in the first rank of the Classification of Saint-Émilion wine, as a Premier Grand Cru Classé (A), after having previously been a Premier Grand Cru Classé (B) since 1954.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2020PAVIE intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on June 22, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

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Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of six years. We estimate that our wine assets will be bottled and eligible to be sold between 12 to 18 months after the date we acquire the wine en primeur. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.”

 

Series Wine #2020CHBL

 

The Asset

 

Series Wine #2020CHBL intends to purchase en primeur 18 bottles worth of Chateau Cheval Blanc 2020 Saint Emilion 1er Grand Cru Classé 'A'.

 

The Winery

 

Château Cheval Blanc (French for "White Horse Castle"), is a wine producer in Saint-Émilion in the Bordeaux wine region of France. As of 2012, its wine is one of only four to receive the highest rank of Premier Grand Cru Classé (A) status in the Classification of Saint-Émilion wine, along with Château Angélus, Château Ausone, and Château Pavie.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2020CHBL intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on June 22, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

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Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of six years. We estimate that our wine assets will be bottled and eligible to be sold between 12 to 18 months after the date we acquire the wine en primeur. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring or selling their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.”

 

Series Wine #2020AUSO

 

The Asset

 

Series Wine #2020AUSO intends to purchase en primeur 36 bottles worth of Chateau Ausone 2020 Saint Emilion 1er Grand Cru Classé 'A'.

 

The Winery

 

Château Ausone is one of the prestigious few Saint-Émilion producers with Premier Grand Cru Classé A status. It is relatively small compared to other top rated Bordeaux châteaux, and its 7-hectare (17-acre) vineyard is planted almost entirely to Cabernet Franc and Merlot. The estate is named for the 4th Century Roman poet Decimius Magnus Ausonius, who owned extensive property in Bordeaux, including some vineyards. The modern château and property date back to the 18th Century. Ausone's vineyard is on an elevated southeast-facing slope that is uncommonly steep for the region. Sheltered to the north and the west, the vineyard was spared from the devastating effects of the 1956 frosts that destroyed vines and vintages in many other parts of Bordeaux. Since the 1990s, Ausone has consistently received high critical praise, peaking with 100 points from critic Robert Parker for the 2000 vintage. A very limited production of fewer than 2000 cases annually makes Château Ausone one of the most expensive and sought-after Saint-Émilion wines.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2020AUSO intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on June 22, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of six years. We estimate that our wine assets will be bottled and eligible to be sold between 12 to 18 months after the date we acquire the wine en primeur. We intend to pay distributions to holders of shares of our series to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring or selling their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.”

 

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Series Wine #2020ANGE

 

The Asset

 

Series Wine #2020ANGE intends to purchase en primeur 36 bottles worth of Chateau Angelus Saint Emilion, 1er Grand Cru, Classé 'A'.

 

The Winery

 

Château Angélus is a Premier Grand Cru Classé A estate on south-facing slopes in Saint-Émilion, on the right bank of the Gironde in Bordeaux. The château was so named because of the presence of church bells that could be heard chiming from the original plots of vineyards, amplified by the natural amphitheater the hill of Saint-Émilion creates.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2020ANGE intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on June 22, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of six years. We estimate that our wine assets will be bottled and eligible to be sold between 12 to 18 months after the date we acquire the wine en primeur. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring or selling their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.”

 

 

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Series Wine #2020CERT

 

The Asset

 

Series Wine #2020CERT intends to purchase en primeur 30 bottles worth of Vieux Chateau Certan 2020 Pomerol.

The wine is a Bordeaux wine from the appellation Pomerol.

 

The Winery

 

The winery is located on the Right Bank of the Bordeaux wine region, in the commune of Pomerol in the department Gironde. As all wine produced in this appellation, Vieux Château Certan is unclassified, but the estate is long recognized as among the great growths of the region, and by some reckoned comparable to neighboring estate Château Pétrus.

 

The château also produces a second wine named Gravette de Certan.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2020ANGE intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on June 22, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of six years. We estimate that our wine assets will be bottled and eligible to be sold between 12 to 18 months after the date we acquire the wine en primeur. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring or selling their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.”

 

 

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Series Wine #2000LAFL 

 

The Asset

 

Series Wine #2000LAFL intends to purchase 24 bottles worth of Chateau Lafleur, Pomerol 2000. Château Lafleur is a Bordeaux wine from the appellation Pomerol. The winery is located on the Right Bank of the Bordeaux wine region, in the commune of Pomerol in the department Gironde. As all wine produced in this appellation, Château Lafleur is unclassified, but the estate is estimated among the great growths of the region. Among the most rare and expensive wines, the wine is widely cited as one of the world's finest.

 

The Winery

 

The vineyard area consists of 4 hectares with the grape varieties of 60% Merlot and 40% Cabernet Franc.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2000LAFL intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on September 14, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).  

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of twenty years. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.” 

 

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Series Wine #2015HBRI 

 

The Asset

 

Series Wine #2015HBRI intends to purchase 60 bottles worth of Chateau Haut-Brion Premier Cru Classe, Pessac-Leognan 2015. Château Haut-Brion is a French wine, rated a Premier Grand Cru Classé (First Growth), produced in Pessac just outside the city of Bordeaux. It differs from the other wines on the list in its geographic location in the north of the wine-growing region of Graves. Of the five first growths, it is the only wine with the Pessac-Léognan appellation and is in some sense the ancestor of a classification that remains the benchmark to this day. 

 

The Winery

 

Chateau Haut-Brion has one of the longest histories of any vineyard in Bordeaux dating back to as early as 1426. Production of Chateau Haut Brion averages between 8,000 to 10,000 cases per year.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2015HBRI intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on September 4, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).  

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of twenty years. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.” 

 

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Series Wine #2000EGLC 

 

The Asset

 

Series Wine #2000EGLC intends to purchase 96 bottles worth of Chateau L'Eglise-Clinet, Pomerol 2000. L'Eglise-Clinet's wine is typically a blend of 80% Merlot and 20% Cabernet Franc. The grapes are vinified in a combination of concrete vats and stainless steel vats. The wine is then aged in small oak barriques (50-70% new) for 18 months.

 

The Winery

  

Château L'Eglise-Clinet is now amongst the elite of Pomerol producers. Its vineyards were originally part of Château Clinet and Château Clos l`Eglise respectively, and the property came into being in the 1950s.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2000EGLC intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on September 16, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).  

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of twenty years. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.” 

 

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Series Wine #2005LPIN 

 

The Asset

 

Series Wine #2005LPIN intends to purchase 12 bottles worth of Le Pin, Pomerol 2005. Château Le Pin, or simply Le Pin, is a Bordeaux wine from the appellation Pomerol. The unusually small estate is located on the Right Bank of France’s Gironde estuary in the commune of Pomerol in the hamlet of Catusseau, and its wine is frequently one of the world's most expensive red wines.

 

The Winery

 

The vineyards extend over 5 acres (2.0 ha) of sandy gravel topsoil on a bedrock of limestone, with a grape variety of 100% Merlot the vines averaging 38 years of age. Typically 600 to 700 cases are produced per year, although in 2003 no wine was produced because of the drought and heatwave that year.

 

Asset Manager

 

StartEngine Assets LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

4%

 

Purchase Details

 

Series Wine #2005LPIN intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the wine assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased the wine asset described above on September 17, 2021. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Management of the Wine

 

Once we acquire the wine, it will be insured and then transported and warehoused in a climate-controlled, highly secure location (assuming the acquired asset is not already in such a location).  

 

Timing of Distributions

 

We anticipate holding our wine assets for a minimum of one year, and a maximum of twenty years. We intend to pay distributions to the extent we sell some or all of our assets. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the wine market, please see “The Company’s Business - Wine Assets – Overview of the Wine Market” and The Company’s Business - Wine Assets – Industry Overview and Market Opportunity.” 

 

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Series Music #JIMMYPAGE1

 

The Asset

 

Series Music #JIMMYPAGE1 intends to purchase Jimmy Page Stratocaster. Jimmy Page owned and played this 1971 Olympic White Stratocaster. Also included are photos of Jimmy Page playing the guitar.

 

  
  
  
  
  

 

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Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #JIMMYPAGE1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #JIMMYPAGE1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

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Series Music #MORRISON1

 

The Asset

 

Series Music #MORRISON1 intends to purchase Jim Morrison "Love Her Madly" Lyrics. The underlying assets are handwritten by Jim Morrison of the original lyrics to “Love Her Madly”. This document was originally obtained from Danny Sugarman, The Doors manager.

 

  
  
  

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #MORRISON1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #MORRISON1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

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Series Music #CORNELL1

 

The Asset

 

Series Music #CORNELL1 intends to purchase Chris Cornell Les Paul Deluxe Guitar. Chris Cornell owned and played the Les Paul deluxe guitar. Chris Cornell was the lead guitarist for Soundgarden.

 

  
  
  
  
  

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #CORNELL1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #CORNELL1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

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Series Music #HENDRIX1

 

The Asset

 

Series Music #HENDRIX1 intends to purchase Jimi Hendrix Pink Feathered Boa. Jimi Hendrix is seen wearing this boa on the cover of the album “Are You Experienced,” Mr. Hendrix's first album cover.

 

 
  

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #HENDRIX1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #HENDRIX1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

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Series Music #MCCARTNEY1

 

The Asset

 

Series Music #MCCARTNEY1 intends to purchase Paul McCartney lyrics for “Maxwell Silver Hammer”. The document is Paul McCartney original handwritten lyrics for the Beatles’ composition “Maxwell Silver Hammer”. The asset was previously obtained at Sothebys in 2002.

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #MCCARTNEY1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #MCCARTNEY1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

84

 

 

Series Music #MORRISON2

 

The Asset

 

Series Music #MORRISON2 intends to purchase Jim Morrison signed Bail Bond. This bail bond relates to Jim Morrison’s infamous arrest in Dade County when he was arrested for exposing himself. The document was originally purchased from Max Fink Jim Morrison’s attorney.

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #MORRISON2 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #MORRISON2 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

85

 

 

Series Music #WILSON1

 

The Asset

 

Series Music #WILSON1 intends to purchase Beach Boys Brian Wilson lyrics for “Catch A Wave”. The document is handwritten by Brian Wilson of the Beach Boys and contains the lyrics for “Catch A Wave” and a partial lyric for “Little Duece Coupe". The document was originally purchased from Rockaway Records.

 

 
  
 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #WILSON1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #WILSON1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

86

 

 

Series Music #PRINCE1

 

The Asset

 

Series Music #PRINCE1 intends to purchase Prince outfit from “Purple Rain” 1984 tour. This iconic outfit from the Prince’s “Purple Rain” 1984 tour, consists of Prince’s purple long waist coat, his white ruffles shirts and purple pants. The jacket was previously purchased at auction in 1998 the shirt was obtained from Prince’s wardrobe mistress, and the pants were obtained from a dealer ‘Startifacts” in Minnesota.

 

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #PRINCE1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #PRINCE1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

87

 

 

Series Music #VANHALEN1

 

The Asset

 

Series Music #VANHALEN1 intends to purchase Eddie Van Halen guitar. This guitar was owned and played on stage by Eddie Van Halen. This Kramer electric is also signed. The guitar was originally obtained from Mr. Van Halen’s stage technician.

 

   
 
   
 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #VANHALEN1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #VANHALEN1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

88

 

 

Series Music #SPRINGSTEEN1

 

The Asset

 

Series Music #SPRINGSTEEN1 intends to purchase Bruce Springsteen lyrics for “Born to Run”. The document was handwritten by Bruce Springsteen and contains the lyrics for “Born to Run”. The lyrics are written in blue on lined notebook paper measuring 8 x 10 inches. The lyrics are the original lyrics to perhaps Mr. Springsteen’s most iconic song. The document was originally obtained from Mr. Springsteen’s first manager Mike Appel.

 

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #SPRINGSTEEN1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #SPRINGSTEEN1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

89

 

 

Series Music #BEATLES1

 

The Asset

 

Series Music #BEATLES1 intends to purchase a Beatles signed contract regard merchandising for “The Beatle” signed by all four Beatles John Lennon, Paul McCartney, George Harrison and Ringo Starr. The contract was originally purchased at auction in 2007.

 

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #BEATLES1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #BEATLES1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

90

 

 

Series Music #DYLAN1

 

The Asset

 

Series Music #DYLAN1 intends to purchase Bob Dylan lyrics for “Hard Rain”. Mr. Dylan handwrote these original lyrics for the composition “Hard Rain”. The document was original from Mr. Dylan.

 

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #DYLAN1 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #DYLAN1 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

 

91

 

 

Series Music #DYLAN2

 

The Asset

 

Series Music #DYLAN2 intends to purchase Bob Dylan lyrics for “Knockin’ on Heaven’s Door”. Mr. Dylan handwrote these original lyrics for the composition “Knockin’ on Heaven’s Door”. The document was original from Mr. Dylan.

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #DYLAN2 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #DYLAN2 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

92

 

 

Series Music #SPRINGSTEEN2

 

The Asset

 

Series Music #SPRINGSTEEN2 intends to purchase Bruce Springsteen guitar played during the “Born in the USA” Tour. This acoustic Takamene guitar was owned by and played by Bruce Springsteen during the “Born in the USA” tour. The guitar was orginally obtained from Mr. Springsteen's guitar tech.

 

 

 

Asset Manager

 

Skimmer Music LLC

 

Administrative Manager

 

StartEngine Assets LLC

 

Preferred Return

 

None.

 

Purchase Details

 

Series Music #SPRINGSTEEN2 intends to enter into a purchase agreement with its Asset Manager (StartEngine Assets) on or shortly after the date the minimum offering amount is reached, pursuant to which it will agree purchase from the Asset Manager the music collectible assets described above at a purchase price equal to the offering amount for this series’ offering. StartEngine Assets purchased an option to purchase the assets on date September 2, 2021. StartEngine Assets will purchase the asset prior to the closing for this series. A standard form of the purchase agreement is included as Exhibit 6.1 to this offering statement of which this Offering Circular forms a part.

 

Option Agreement

 

Our Asset Manager has the option to acquire the Series Music #SPRINGSTEEN2 asset pursuant to an option agreement entered into with the asset seller on September 2, 2021. Pursuant to the agreement, the Asst Manager has until December 1, 2021 to acquire the asset before the expiration of the option. The asset seller and the Asset Manager may elect option agreement by mutual agreement. There is no requirement that we raise funds in this offering in order for the Asset Manager to purchase the underlying assets.

 

Management of the Music Collectible

 

Once we acquire the music collectible, it will be insured and then transported and warehoused in a climate-controlled, highly secure location.

 

Timing of Distributions

 

We anticipate holding our music collectible assets for a minimum of one year and a maximum of twenty years. We intend to pay distributions to the extent we sell the asset. Otherwise, liquidity for investors would be obtained by transferring their interests in a series.

 

Market

 

For information on the music collectible market, please see “The Company’s Business – Music Collectible Assets – Overview of the Music Collectible Market” and The Company’s Business – Music Collectible Assets – Industry Overview and Market Opportunity.”

93

 

 

Series Music #STONES1

 

The Asset

 

Series Music #STONES1 intends to purchase The Rolling Stones first signed record Contract. The document is The Rolling Stones’ first signed record contract. The contract is signed by all five original band members: Mick Jagger, Keith Richards, Brian Jones, Bill W