SAMPLE CARTSHARE PARTICIPATION AGREEMENT

Between Individual Participant and Fractional Cart Share LLC

1. Parties

This CartShare Participation Agreement (“Agreement”) is made effective as of [Date], by and between:

Fractional Cart Share LLC, a Colorado limited liability company (“Company”), with principal office located at 1500 N Grant Street #5343, Denver, CO 80203,
and
[Participant Name], an individual (“Participant”).

Collectively, the “Parties.”

2. Purpose

The Company operates a fractional golf cart ownership and revenue participation program known as CartShare, through which participants invest in fractional ownership interests in golf carts leased or operated by partner golf courses, receiving a proportional share of revenues generated by cart rentals.

3. Participation Interest

Participant hereby purchases a fractional participation interest (“Interest”) representing [X%] ownership in one or more golf carts managed under the CartShare program.
Each full cart unit is divided into 100 fractional interests. The Participant’s contribution corresponds to the following:

• Contribution Amount: $[Amount]

• Fractional Ownership: [Number of units or percentage]

• Cart Identification Number(s): [VIN or Cart ID if assigned]

4. Term

This Agreement shall commence on the Effective Date and continue for [5] years, unless earlier terminated under Section 12. At the end of the term, the Company may elect to renew or sell the asset, with net proceeds distributed pro rata among Participants.

5. Management and Operations

Fractional Cart Share LLC shall:

• Manage and maintain each cart;

• Negotiate lease agreements with partner golf courses;

• Collect and distribute rental revenues;

• Provide quarterly financial statements to Participants; and

• Maintain insurance and compliance for all equipment.

Participants shall have no operational duties but may access quarterly reports and audited summaries of revenue and expenses.

6. Revenue Distribution

Net operating revenue from cart rentals, after deduction of management fees, maintenance, insurance, and reserves, shall be distributed to Participants quarterly as follows:

• Revenue Pool: 100% of gross rental income collected

• Management Fee: 20% retained by Fractional Cart Share LLC

• Net Distributable Revenue: 80% distributed pro rata to Participants based on ownership percentage

Example:
If total net revenue for the quarter is $10,000 and Participant owns 5%, Participant receives $500.

7. Reporting and Transparency

The Company will maintain:

• A secure online investor dashboard;

• Quarterly revenue statements;

• Annual K-1 forms for tax reporting;

• Maintenance and usage logs for each cart.

8. Buyback and Exit Option

After 24 months, Participant may request a buyback at Fair Market Value (FMV) as determined by the Company based on appraised cart value and recent revenue performance.
Alternatively, the Participant may transfer the Interest to another approved investor subject to Company consent.

9. Risk Disclosure

Participant acknowledges that investment involves risk, including loss of capital, potential downtime, or lower-than-expected revenue. Past performance is not a guarantee of future returns.

10. Tax Treatment

Participant’s share of profits and losses will be reported via IRS Form K-1. Participant acknowledges they are responsible for all applicable taxes.

11. Governing Law

This Agreement shall be governed by and construed under the laws of the State of Colorado.

12. Termination

This Agreement may be terminated upon:

• Expiration of term;

• Sale or total loss of the cart(s);

• Mutual agreement of the Parties;

• Breach by either party.

Upon termination, net proceeds after liquidation expenses shall be distributed pro rata.

13. Entire Agreement

This Agreement constitutes the entire understanding between the Parties and supersedes all prior representations or agreements.

14. Signatures

Fractional Cart Share LLC
By: ___________________________
Name: Bradley Kellmayer
Title: Managing Member
Date: ___________________________

Participant
Name: ___________________________
Signature: ________________________
Date: ___________________________