INTEREST
ESCROW ACCOUNT AGREEMENT


 


	Buyer:	1333
        Vista Drive, LLC,

        a
        Florida limited liability company

         
	Lender:	Shepherd’s
        Finance, LLC

        12627
        San Jose Blvd, Ste. 203

        Jacksonville,
        FL 32223

        (302)
        752-2688



 


This
Agreement made this June 30, 2016, by and between 1333 Vista Drive, LLC (hereinafter referred to as “Buyer”), and
Shepherd’s Finance, LLC, a Delaware Limited Liability Company, (hereinafter referred to as “Lender”).


 


WHEREAS,
Lender has provided first mortgage construction loan financing (Loan # 1014719, the “Loan”) to the Lex Partners II,
LLC (“Borrower”), for that certain real property located at 1333 Vista Drive, Sarasota FL 34239 (the “Property”)
as more fully described in the Promissory Note, Construction Loan Agreement, Mortgage, and other related documents for the same
loan and Property, the “Related Documents” for the loan dated June February 19, 2016; and


 


WHEREAS,
Borrower, has conveyed the Property to 1333 Vista drive, LLC (“Buyer”); and


 


WHEREAS,
Borrower and Buyer desire to finish the construction of the single family residence on the Property; and


 


WHEREAS,
Borrower has requested that Lender establish an interest escrow for the purpose of making interest payments on the Loan; and


 


WHEREAS,
Lender has agreed to establish an Interest Escrow for the benefit of the Borrower for the purpose of making interest payments
on the loan;


 


NOW
THEREFORE, in consideration of the above recitals incorporated herein by reference and in consideration of the mutual covenants
contained herein, the parties hereto agree as follows:


 


1.Lender
shall open and maintain on its books an account for the Interest Escrow. The Interest Escrow shall be initially funded by Buyer
by payment to Lender of the sum of Ninety Six Thousand Five Hundred Fifty Three Dollars and eight Cents ($96,553.08).


 


2.Payments
for the prior month’s accrued interest shall be due on the fifteenth (15th) day of each month. Upon or prior to such due
date, Lender shall apply funds up to the balance of the Interest Escrow to the amount due on the Loan as interest, at Lender’s
discretion as to the allocation. If the funds of the
interest escrow are exhausted prior to the Loan being paid off, the Borrower will make interest payments to the Lender from their
funds. At any time that the Borrower has been in default for more than 30 consecutive days, Lender can apply any or all
funds in the Interest Escrow to the Loan, allocated at the Lender’s discretion.


 


3.
The Lender will invest the Interest Escrow Account into its general operating funds and will not pay the Borrower interest on
the Interest Escrow Account. All amounts in the Interest Escrow shall be commingled with the general funds of Lender, and such
account shall not be required to be insured by the FDIC. Lender may utilize book entries or a ledger system for purposes of tracking
debits, credits and balances of the Interest Escrow. All calculations in connection with the Interest Escrow shall be made by
Lender and, except in the case of manifest error in computation; such calculations shall be conclusive and binding on the Borrower
Parties as to the amount shown in the Interest Escrow at any time.


 


4.
Borrower shall receive any remaining balance in the interest escrow from Lender when all debt to Lender has been paid in full.


 


5.
The parties agree that this Interest Escrow Account Agreement shall be governed and construed in accordance with the laws of the
State of Florida.


 




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INTEREST
ESCROW ACCOUNT AGREEMENT


(Continued)


 






 


6.
This Interest Escrow Account Agreement contains the entire understanding of the parties hereto with respect to the subject matter
contained herein and shall not be modified except by a writing signed by all the parties.


 


7.
This Interest Escrow Account Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
successors and assigns.


 


8.
Notices. Any notification, direction, authorization, request, instruction, legal process or other instrument to be given
or served hereunder shall be in writing and shall be delivered by certified mail, return receipt requested, by Federal Express
or other courier service, or by legible facsimile transmission provided the party making such delivery can furnish evidence of
confirmed receipt by the addressee of the facsimile transmission, to all parties at the following addresses:


 


	To
        the Lender:

        Shepherd’s
        Finance, LLC

        12627
        San Jose Blvd, Ste. 203

        Jacksonville,
        FL 32223
	To
        the Buyer:

        1333
        Vista Drive, LLC

        13000
        SW 61stAve.

        Miami
        FL 33156



 


9.
This Agreement may not be modified except by written agreement. This Agreement may be executed in multiple counterparts each of
which when taken together shall constitute one original. A facsimile copy of this document shall be as effective as the original.


 


10.
The terms of this Interest Escrow Account Agreement do not modify or in any way amend the Related Documents for the loan, and
nothing contained in this Interest Escrow Account Agreement shall be interpreted to waive or amend the obligations of the parties
under the Related Documents for the loan.


 


IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written.


 


	BUYER:
    	 
	 	 
	1333
    Vista Drive, LLC 	 
	 	 	 
	By:	/s/
    Dennis Nickerson	 
	Name:	Dennis
    Nickerson	 
	Title:	Manager	 
	 	 	 
	LENDER:	 
	 	 
	Shepherd’s
    Finance, LLC	 
	 	 	 
	By:	/s/
    Daniel M. Wallach	 
	Name:	Daniel
    M. Wallach	 
	Title:	Authorized
    Signatory 	 


 



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