United Development Funding III, L.P. (OTCMKTS:UNDVL) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Item 5.02

On April 10, 2017, the general partner of United Development
Funding III, L.P. (the Partnership) appointed Stuart Ducote, age
71, as its chief financial officer. In such capacity, Mr. Ducote
will serve as the principal financial officer of the Partnership.

Mr. Ducote has served as the chief executive officer and chief
financial officer of numerous public and privately held
companies. Since July 2009, Mr. Ducote has served as president
and chief financial officer of United Mortgage Trust, an
affiliate of the Partnerships general partner. Since July 2016,
Mr. Ducote has also served as a managing director of BlackBriar
Advisors, LLC, a financial services company. He was chief
financial officer of E2 Energy Services, LLC, which is in the
business of building, owning, and operating natural gas
compressor stations and related equipment, from March 2012 until
May 2016 and a partner at Tatum, LLC, which provides chief
financial officers to companies in transition on a contract
basis, from 2008 until March 2012. From 2006 until 2008, he was
the co-owner of Ultra Realty, a privately held company involved
with the acquisition, rehabilitation and development of
residential properties and residential/commercial brokerage. From
2003 until 2006, he served as chief financial officer for
Humitech International Group, Inc., an international franchise
operation. From 2001 until 2003, he served as chief financial
officer of People Solutions, Inc., where he structured the
company in preparation for a capital raise and merger activity.
From 1997 until 2000, he was chief financial officer of Jobs.com,
an Internet-based recruiting and on-line job marketing company,
where he raised over $110 million in venture capital, built
national brand recognition and positioned the company for an
initial public offering. From 1994 until 1997, he served as a
trustee, chief executive officer and chief financial officer for
a private family trust and related operating companies, where he
had oversight responsibilities for operating companies in the oil
and gas, manufacturing, real estate acquisition and development,
and power generation industries. From 1980 until 1994, he served
as chief executive officer and chief financial officer of
Provident Bancorp of Texas, Inc., where he directed the
formation, acquisition, and operation of numerous financial
institutions, and successfully merged banks into a multi-bank
holding company. Prior to 1984, Mr. Ducote worked in public
accounting for approximately twelve years. He is a graduate of
the University of Texas.

Mr. Ducote replaces Cara D. Obert as the Partnerships principal
financial officer and principal accounting officer. Ms. Obert
resigned as the principal financial officer and principal
accounting officer of the Partnership effective as of April 10,
2017 in order to concentrate on her services as chief financial
officer and treasurer of United Development Funding IV and United
Development Funding Income Fund V. Ms. Obert also will continue
to serve as chief financial officer of the Partnerships general
partner.

Effective as of April 10, 2017, the Partnership entered into an
Independent Contractor Agreement (the Agreement) with Mr. Ducote
in connection with Mr. Ducotes appointment as chief financial
officer of the Partnership. The Agreement provides for
compensation to Mr. Ducote at a monthly rate of $7,500. The
Agreement shall continue in effect until terminated by either
party upon 60 days written notice. While Mr. Ducote serves as
chief financial officer of the Partnership and for one year
following the termination of the Agreement, Mr. Ducote will be
subject to non-hire provisions that prohibit him from soliciting
for hire or hiring any employee of the Partnership or its
affiliates. In addition, during the term of the Agreement and at
all times thereafter, Mr. Ducote is subject to certain
confidentiality and non-disparagement provisions. This
description of the Agreement does not purport to be complete and
is qualified in its entirety by reference to the full text of the
Agreement, which is attached as Exhibit 10.1 hereto and is
incorporated herein by reference in its entirety.

Mr.Ducote has not had any direct or indirect material interests
in any transaction with the Partnership or to which the
Partnership is a party or in any currently proposed transaction
with the Partnership or to which the Partnership is a party.

United Development Funding III, L.P. (OTCMKTS:UNDVL) Recent Trading Information

United Development Funding III, L.P. (OTCMKTS:UNDVL) closed its last trading session down -6.70 at 3.50 with 1,806 shares trading hands.