Document:

EX-10.5

 Exhibit 10.5 
 Parcel             Identification 
 Number:

         540-006-00-00-0033-00 
 RECORDATION 
 REQUESTED BY: 
 Shepherd’s Finance, LLC 
 3508 Washington Road 

McMurray, PA 15317 
 Attn: Daniel M. Wallach

 WHEN RECORDED MAIL 
 TO: 

Shepherd’s Finance, LLC 
 3508 Washington Road

 McMurray, PA 15317 
 Attn: Daniel M.
Wallach 
 SEND TAX NOTICES TO: 

Shepherd’s Finance, LLC 
 3508 Washington Road

 McMurray, PA 15317 
 Attn: Daniel M.
Wallach 
 FOR RECORDER’S USE ONLY 
 OPEN-END MORTGAGE 
 THIS OPEN-END MORTGAGE dated December 30, 2011, is made and
executed between INVESTOR’S MARK ACQUISITIONS, L.L.C., whose address is 124 WINDERMERE CT., MCMURRAY, PA 15317 (referred to below as “Grantor”) and SHEPHERD’S FINANCE, LLC, whose address is 3508 WASHINGTON ROAD, MCMURRAY, PA
15317 (referred to below as “Lender”). 
 THIS MORTGAGE IS AN “OPEN-END” MORTGAGE, AS SET FORTH IN 42 PA. C.S.A.
§8143, AND SECURES OBLIGATIONS UP TO A MAXIMUM AMOUNT OF INDEBTEDNESS EXISTING AT ANY TIME OF $8,075,776.76. THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF LEASES AND RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO
SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF $2,225,000.00, THE RELATED DOCUMENTS, AND THIS MORTGAGE. THIS MORTGAGE THIS MORTGAGE IS GIVEN AND
ACCEPTED ON THE TERMS CONTAINED IN THIS MORTGAGE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS MORTGAGE, THIS MORTGAGE SHALL BE SUBJECT TO THE TERMS AND CONDITIONS OF THE CREDIT AGREEMENT. 

GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages
to Lender all of Grantor’s right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and
ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights,
watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar
matters, (the “Real Property”) located in WASHINGTON County, Commonwealth of Pennsylvania and more particularly described on “EXHIBIT A”, which is attached to this Mortgage and made a part of this Mortgage as if fully set forth
herein. The Real Property parcel identification number is 540-006-00-00-0033-00. 
 CROSS-COLLATERALIZATION. In addition to the
Note, this Mortgage secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one 

 or more of them, whether now existing or hereafter arising, whether related or unrelated to the
purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with others,
whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or
hereafter may become otherwise unenforceable. This Mortgage also secures all obligations, debts and liabilities, plus interest thereon, of Benjamin Marcus and Mark L. Hoskins to Lender, or any one of them, as well as all claims by Lender against
Benjamin Marcus and Mark L. Hoskins or any one or more of them, whether now or existing or hereafter arising, whether related or unrelated to the purpose of the Related Documents, whether voluntary or otherwise, whether due or not due, direct or
indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Benjamin Marcus or Mark L. Hoskins may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or
otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable. 

ASSIGNMENT OF LEASES AND RENTS ; GRANT OF SECURITY INTERESTS. Grantor presently assigns to Lender all of Grantor’s right, title, and
interest in and to all present and future Leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a security interest in the Personal Property, Rents, Leases and fixtures under the Uniform Commercial Code, as
applicable, and as otherwise may be allowed under applicable law. 
 PAYMENT AND PERFORMANCE. Except as otherwise provided in this
Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor’s obligations under this Mortgage. 
 POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor’s possession and use of the Property shall be governed by the following provisions: 

Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the
Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. 
 Duty to
Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. 

Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of
Grantor’s ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor
has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage,
treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person
relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture,
store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances,
including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor’s expense, as Lender may deem appropriate to determine compliance of the
Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender’s purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other
person. The representations and warranties contained herein are based on Grantor’s due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity
or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses
which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to
Grantor’s ownership or interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify and defend, shall survive the payment of
the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender’s acquisition of any interest in the Property, whether by foreclosure or otherwise. 

Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or
waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria,
soil, gravel or rock products without Lender’s prior written consent. 
 Removal of Improvements. Grantor shall
not demolish or remove any Improvements from the Real Property without Lender’s prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such
Improvements with Improvements of at least equal value. 
 Lender’s Right to Enter. Lender and Lender’s
agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender’s interests and to inspect the Real Property for purposes of Grantor’s compliance with the terms and conditions of this Mortgage.

 Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and
regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act and all Environmental Laws. Grantor shall also promptly
comply with any and all environmental permits or requirements applicable to the Property, including without limitation, any 

 
permits or requirements relating to wetlands mitigation or preservation. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender’s sole opinion, Lender’s interests in the Property are not jeopardized. Lender may require Grantor to post
adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender’s interest. 
 Duty to
Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to
protect and preserve the Property. 
 CONSTRUCTION LOAN. If some or all of the proceeds of the loan creating the Indebtedness are to
be used to construct or complete construction of any Improvements on the Property, the Improvements shall be completed in accordance with construction documentation utilized to effect the development of the Property in accordance with the Credit
Agreement, and Grantor shall pay in full all costs and expenses in connection with the work. Lender will disburse loan proceeds under such terms and conditions as Lender may deem reasonably necessary to insure that the interest created by this
Mortgage shall have priority over all possible liens, including those of material suppliers and workmen. Lender may require, among other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of liens,
construction progress reports, and such other documentation as Lender may reasonably request. 
 DUE ON SALE - CONSENT BY LENDER.
With the exception of those portions of the Property that are released by Lender in accordance with the terms and provisions of the Credit Agreement, Lender may, at Lender’s option, declare immediately due and payable all sums secured by this
Mortgage upon the sale or transfer, without Lender’s prior written consent, of all or any part of the Real Property, or any interest in the Real Property. A “sale or transfer” means the conveyance of Real Property or any right, title
or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for deed, leasehold interest, lease-option contract, or by
sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property. If any Grantor is a corporation, partnership or limited
liability company, transfer also includes any change in ownership of more than twenty-five percent (25%) of the voting stock, partnership interests or limited liability company interests, as the case may be, of such Grantor. However, this
option shall not be exercised by Lender if such exercise is prohibited by federal law or by Pennsylvania law. 
 TAXES AND LIENS.
The following provisions relating to the taxes and liens on the Property are part of this Mortgage: 
 Payment.
Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for
work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage, except for those liens specifically
agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified in the Right to Contest paragraph. 
 Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender’s interest in the Property is not
jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge
of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and reasonable attorneys’ fees, or
other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as
an additional obligee under any surety bond furnished in the contest proceedings. 
 Evidence of Payment. Grantor
shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
Property. 
 Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is
commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic’s lien, materialmen’s lien, or other lien could be asserted on account of the work, services, or materials. Grantor will upon request of
Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. 

PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: 

Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage
endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor
shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being named as additional insureds in such liability insurance policies. Additionally, Grantor shall maintain such
other insurance, including but not limited to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall
deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of ten (10) days’ prior written notice to Lender and not containing any disclaimer of
the insurer’s liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other
person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, for the full
unpaid principal balance of the loan and any prior liens on the 

 property securing the loan, up to the maximum policy limits set under the National
Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. 

Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of
loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender’s security is impaired, Lender may, at Lender’s election, receive and retain the proceeds of any insurance and apply the proceeds to the
reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed
Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage.
Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay
accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor’s interests
may appear. 
 Grantor’s Report on Insurance. Upon request of Lender, however not more than once a year,
Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured, the then current replacement value
of such property, and the manner of determining that value; and (5) the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the
Property. 
 LENDER’S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender’s
interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor’s failure to discharge or pay when due any amounts Grantor is required to discharge or pay
under this Mortgage or any Related Documents, Lender on Grantor’s behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the
rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender’s option, will (A) be payable on demand; (B) be added to
the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a
balloon payment which will be due and payable at the Note’s maturity. The Mortgage also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default.
Grantor’s obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. 
 WARRANTY;
DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage: 

Title. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property in fee simple, free
and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage,
and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. 
 Defense
of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions
Grantor’s title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantor’s expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to
be represented in the proceeding by counsel of Lender’s own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. 

Compliance With Laws. Grantor warrants that the Property and Grantor’s use of the Property complies with all existing
applicable laws, ordinances, and regulations of governmental authorities. 
 Survival of Representations and
Warranties. All representations, warranties, and agreements made by Grantor in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such time as
Grantor’s Indebtedness shall be paid in full. 
 CONDEMNATION. The following provisions relating to condemnation proceedings
are a part of this Mortgage: 
 Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly
notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding
and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation.

 Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the
award shall mean the award after payment of all actual costs, expenses, and attorneys’ fees incurred by Lender in connection with the condemnation. 
 IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: 

Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage
and take whatever other action is requested by Lender to perfect and continue Lender’s lien on the Real 

 Property. Grantor shall reimburse Lender for all taxes, as described below, together
with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage. 

Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage
or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Grantor which Grantor is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this
type of Mortgage chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor. 

Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, this event
shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests
the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. 
 SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: 

Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes
fixtures, Rents or Personal Property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time and other applicable law with respect to all such fixtures, as well as all Personal
Property, Rents and Leases. 
 Security Interest. Upon request by Lender, Grantor shall take whatever action is
requested by Lender to perfect and continue Lender’s security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from
Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not
remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to
Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. 

Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the
security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. 
 FURTHER ASSURANCES; ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: 

Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or
will cause to be made, executed or delivered, to Lender or to Lender’s designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may
deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of
Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Grantor’s obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by
this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in
connection with the matters referred to in this paragraph. 
 Additional Authorizations. If Grantor fails to do any
of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor’s expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all
other things as may be necessary or desirable, in Lender’s sole opinion, to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. 

FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this
Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender’s security interest in the Rents and the Personal
Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. 

EVENTS OF DEFAULT. Each of the following, at Lender’s option, shall constitute an Event of Default under this Mortgage: 

Payment Default. Grantor fails to make any payment when due under the Indebtedness. 

Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or
insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. 
 Other
Defaults. Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Mortgage or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition
contained in any other agreement between Lender and Grantor. 
 False Statements. Any warranty, representation or
statement made or furnished to Lender by Grantor or on Grantor’s behalf under this Mortgage or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at
any time thereafter. 

 Defective Collateralization. This Mortgage or any of the Related Documents
ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. 

Death or Insolvency. The dissolution of Grantor or Benjamin Marcus (regardless of whether election to continue is made), any
member withdraws from the limited liability company, or any other termination of Grantor’s or Benjamin Marcus’ existence as a going business or the death of any member or Guarantor, the insolvency of Grantor or Benjamin Marcus, the
appointment of a receiver for any part of Grantor’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantor or
Benjamin Marcus. 
 Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or an Obligated Affiliate or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of
Grantor’s or an Obligated Affiliate’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantor or an Obligated Affiliate as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Grantor or an Obligated Affiliate gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond
for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. 
 Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied within any grace period provided therein, including without limitation
any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. 

Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or
any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. 
 Adverse Change. A material adverse change occurs in Grantor’s financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. 

RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender’s option, may
exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: 
 Accelerate Indebtedness. Lender shall have the right at its option, after giving such notices as required by applicable law, to declare the entire Indebtedness immediately due and payable. 

UCC Remedies. With respect to all or any part of the Personal Property, Leases, fixtures now or hereafter located on the
Property, or Rents, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. 

Collect Rents. Lender shall have the right, without notice to Grantor, to take possession of the Property and collect the
Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender’s costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of
rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds.
Payments by tenants or other users to Lender in response to Lender’s demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this
subparagraph either in person, by agent, or through a receiver. 
 Appoint Receiver. Lender shall have the right to
have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the
proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender’s right to the appointment of a receiver shall exist whether or not the apparent value of the
Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. 
 Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor’s interest in all or any part of the Property. 

Nonjudicial Sale. If permitted by applicable law, Lender may foreclose Grantor’s interest in all or in any part of the
Personal Property or the Real Property by non-judicial sale. 
 Deficiency Judgment. Lender may obtain a judgment
for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. 

Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or
Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender’s option, either (1) pay a reasonable
rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. 
 Other
Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. 
 Sale of the Property. To the extent permitted by applicable law, Grantor hereby waives any and all right to have the Property marshalled. In exercising its rights and remedies, Lender shall be free to sell
all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any 

 portion of the Property. 

Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property
or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given at least ten (10) days before the time of
the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. 

Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election
to make expenditures or to take action to perform an obligation of Grantor under this Mortgage, after Grantor’s failure to perform, shall not affect Lender’s right to declare a default and exercise its remedies. Nothing under this Mortgage
or otherwise shall be construed so as to limit or restrict the rights and remedies available to Lender following an Event of Default, or in any way to limit or restrict the rights and ability of Lender to proceed directly against Grantor and/or
against any other co-maker, guarantor, surety or endorser and/or to proceed against any other collateral directly or indirectly securing the Indebtedness. 
 Attorneys’ Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as
attorneys’ fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender’s opinion are necessary at any time for the protection
of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without
limitation, however subject to any limits under applicable law, Lender’s reasonable attorneys’ fees and Lender’s legal expenses, whether or not there is a lawsuit, including reasonable attorneys’ fees and expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports),
surveyors’ reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Lender may also recover from Grantor all court, alternative dispute resolution or other collection costs (including, without limitation, fees
and charges of collection agencies) actually incurred by Lender. 
 NOTICES. Unless otherwise provided by applicable law, any notice
required to be given under this Mortgage shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight
courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage. All copies of notices of foreclosure from the holder
of any lien which has priority over this Mortgage shall be sent to Lender’s address, as shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage by giving formal written notice to the other
parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor’s current address. Unless otherwise provided by applicable law, if
there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. 
 MISCELLANEOUS
PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: 
 Amendments. This Mortgage,
together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage shall be effective unless given in writing and signed
by the party or parties sought to be charged or bound by the alteration or amendment. 
 Annual Reports. If the
Property is used for purposes other than Grantor’s residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor’s previous fiscal year in such form and
detail as Lender shall require. “Net operating income” shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. 

Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or
define the provisions of this Mortgage. 
 Governing Law. With respect to procedural matters related to the perfection
and enforcement of Lender’s rights against the Property, this Mortgage will be governed by federal law applicable to Lender and to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania. In all other respects,
this Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Delaware without regard to its conflicts of law provisions. However, if there ever is a question about
whether any provision of this Mortgage is valid or enforceable, the provision that is questioned will be governed by whichever state or federal law would find the provision to be valid and enforceable. The loan transaction that is evidenced by the
Note and this Mortgage has been applied for, considered, approved and made, and all necessary loan documents have been accepted by Lender in the Commonwealth of Pennsylvania. 

Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender’s request to submit to the jurisdiction of the courts
of the Commonwealth of Pennsylvania, in the county in which Grantor’s following address is located: 124 WINDERMERE CT., MCMURRAY, PA 15317. 
 No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in
exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender’s right otherwise to demand strict compliance with that
provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender’s rights or of any of Grantor’s obligations as to any future
transactions. Whenever the consent of 

 Lender is required under this Mortgage, the granting of such consent by Lender in any
instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. 

Severability. If a court of competent jurisdiction finds any provision of this Mortgage to be illegal, invalid, or
unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision shall be considered modified so that it becomes legal,
valid and enforceable. If the offending provision cannot be so modified, it shall be considered deleted from this Mortgage. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision of this Mortgage shall not
affect the legality, validity or enforceability of any other provision of this Mortgage. 
 Merger. There shall be
no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. 

Successor Interests. The terms of this Mortgage shall be binding upon Grantor, and upon Grantor’s heirs, personal
representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. 
 Time is
of the Essence. Time is of the essence in the performance of this Mortgage. 
 DEFINITIONS. The following capitalized words and
terms shall have the following meanings when used in this Mortgage. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular
shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code: 

Benjamin Marcus. The words “Benjamin Marcus” mean Benjamin Marcus Homes, L.L.C. 

Borrower. The word “Borrower” means Investor’s Mark Acquisitions, L.L.C., and includes all co-signers and
co-makers signing the Note and all their successors and assigns. 
 Credit Agreement. The word “Credit
Agreement” means that certain Credit Agreement of even date herewith by and among Borrower, Lender, Benjamin Marcus and Mark L. Hoskins. 
 Default. The word “Default” means the Default set forth in this Mortgage in the section titled “Default”. 

Environmental Laws. The words “Environmental Laws” mean any and all state, federal and local statutes, regulations
and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.
(“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act,
42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. 
 Event of Default. The words “Event of Default” mean any of the events of default set forth in this Mortgage in the events of default section of this Mortgage. 

Grantor. The word “Grantor” means Investor’s Mark Acquisitions, L.L.C. 

Guarantor. The word “Guarantor” means any guarantor, surety, or accommodation party of any or all of the
Indebtedness, including, without limitation, Benjamin Marcus and Mark L. Hoskins. 
 Guaranty. The word
“Guaranty” means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. 
 Hazardous Substances. The words “Hazardous Substances” mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present
or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words “Hazardous Substances” are used in their very broadest sense
and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term “Hazardous Substances” also includes, without limitation, petroleum and petroleum
by-products or any fraction thereof and asbestos. 
 Improvements. The word “Improvements” means all
existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. 

Indebtedness. The word “Indebtedness” means all principal, interest, and other amounts, costs and expenses payable
under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor’s
obligations or expenses incurred by Lender to enforce Grantor’s obligations under this Mortgage, together with interest on such amounts as provided in this Mortgage. Specifically, without limitation, Indebtedness includes all amounts that may
be indirectly secured by the Cross-Collateralization provision of this Mortgage. 
 Leases. The word
“Leases” means any and all leases now or hereafter affecting the Property, or any portion thereof. 

Lender. The word “Lender” means SHEPHERD’S FINANCE, INC., its successors and assigns. 

Mortgage. The word “Mortgage” means this Mortgage between Grantor and Lender. 

Note. The word “Note” means the promissory note of even date herewith, in the original principal amount of
$2,225,000.00 from Grantor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. The Note is a demand promissory note. 

 Obligated Affiliate. The words “Obligated Affiliate” mean any
affiliate of Grantor which is or which shall become obligated to Lender in connection with the Indebtedness or otherwise. 

Personal Property. The words “Personal Property” mean all equipment, fixtures, and other articles of personal
property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with
all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. 
 Property. The word “Property” means collectively the Real Property and the Personal Property. 
 Real Property. The words “Real Property” mean the real property, interests and rights, as further described in this Mortgage. 

Related Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements,
environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the
Indebtedness, including, without limitation, (i) all instruments, agreements and documents relating to that certain revolving demand loan from Lender to Benjamin Marcus in the amount of up to $4,164,000.00, including, without limitation, the
Mortgage related to such demand loan; (ii) all instruments, agreements and documents relating to that certain existing loan originally from 84 Financial, L.P. to Borrower in the amount of $1,686,766.76, as assigned to Lender on or about the
date hereof, including, without limitation, the Mortgage and guarantee related to such loan; (iii) that certain Amended and Restated Commercial Pledge Agreement of even date herewith, by and among Grantor, Benjamin Marcus and Lender;
(iv) that certain Commercial Guarantee by Grantor, Benjamin Marcus and Mark L. Hoskins in favor of Lender, of even date herewith; and (v) the Credit Agreement. 

Rents. The word “Rents” means all present and future rents, revenues, income, issues, royalties, profits, and other
benefits derived from the Property. 

 GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS.

 THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED
INSTRUMENT ACCORDING TO LAW. 
 GRANTOR: 

INVESTOR’S MARK ACQUISITIONS, L.L.C. 
 By: /s/
Mark L. Hoskins (Seal) 
 MARK L. HOSKINS, Manager of INVESTOR’S MARK 
 ACQUISITIONS, L.L.C. 
 {Notarized}EX-10.6

 COMMERCIAL GUARANTY 

Exhibit 10.6 
  

							
	Borrowers:	  	 INVESTOR’S MARK ACQUISITIONS, LLC
 124 WINDERMERE CT.
 MCMURRAY, PA 15317

 
 BENJAMIN MARCUS HOMES, L.L.C.

P.O. Box 1287
 MCMURRAY, PA
15317
	  	Lender:	  	 SHEPHERD’S FINANCE, LLC
 3508 WASHINGTON ROAD
 MCMURRAY, PA 15317

	  	  	 	  	 	  	 
	Guarantors:	  	 MARK L. HOSKINS
 124
WINDERMERE COURT
 MCMURRAY, PA 15317
  

INVESTOR’S MARK ACQUISITIONS, LLC

124 WINDERMERE CT.
 MCMURRAY, PA
15317
  
 BENJAMIN MARCUS HOMES, L.L.C.

P.O. Box 1287
 MCMURRAY, PA
15317
	  	 	  	 

 THIS COMMERCIAL GUARANTY (this “Guaranty”) dated as of
December 30, 2011, is made and executed by and among INVESTOR’S MARK ACQUISITIONS, LLC (“IMA”), BENJAMIN MARCUS HOMES, L.L.C. (“BMH”) and MARK L. HOSKINS (“Hoskins”; with IMA,BMHand Hoskins collectively
referred to as the “Guarantors”) and SHEPHERD’S FINANCE, LLC (“Lender”). 
 WHEREAS, Lender
has made a revolving demand loan to BMH in the amount of up to $4,164,000 (the “BMH Loan”) to acquire certain land and to finish developing certain phases on such land all as more clearly set forth in the Credit Agreement among the parties
hereto dated as of December             , 2011 (the “Credit Agreement”) and as evidenced by that certain Promissory Note from BMH to Lender (the “BMH Note”), and IMA and
Hoskins have agreed to guarantee the BMH Note. 
 WHEREAS, Lender has made a demand loan to IMA in the amount of up to
$2,225,000 (the “New IMA Loan”) to develop certain lots as more clearly set forth in the Credit Agreement and as evidenced by that certain Promissory Note from IMA to Lender (the “New IMA Note”), and BMH and Hoskins have agreed
to guarantee the New IMA Note. 

 WHEREAS, Lender has assumed that certain existing loan from 84 Financial, L.P. to IMA
in the amount of $1,686,767 (the “Existing IMA Loan”) thereby becoming the lender under the Existing IMA Loan as more clearly set forth in the Credit Agreement and as evidenced by that certain Promissory Note from IMA to Lender, as
assigned (the “Existing IMA Note”; with the BMH Note, the New IMA Note and the Existing IMA Note sometimes collectively referred to as the “Developer Notes”), and BMH and Hoskins have agreed to guarantee the Existing IMA Note.

 WHEREAS, Hoskins is a principal of both IMA and BMH and will directly or indirectly benefit from Lender’s making
the loans to Borrowers set forth in the Credit Agreement and evidenced by the Developer Notes. 
 CONTINUING GUARANTEE OF
PAYMENT AND PERFORMANCE. For good and valuable consideration, Guarantors absolutely and unconditionally guarantee full and punctual payment and satisfaction of the Indebtedness of Borrowers to Lender, and the performance and discharge of all
Borrowers’ obligations under the Developer Notes and the Related Documents. This is a guaranty of payment and performance and not of collection, so Lender can enforce this Guaranty against Guarantors even when Lender has not exhausted
Lender’s remedies against anyone else obligated to pay the Indebtedness or against any collateral securing the Indebtedness, this Guaranty or any other guaranty of the Indebtedness. Guarantors will make any payments to Lender or its order, on
demand, in legal tender of the United States of America, in same-day funds, without set-off or deduction or counterclaim, and will otherwise perform Borrowers’ obligations under the Developer Notes and Related Documents. Under this Guaranty,
Guarantors’ liability is unlimited and Guarantors’ obligations are continuing. 
 INDEBTEDNESS. The word
“Indebtedness” as used in this Guaranty means all of the principal amount outstanding from time to time and at any one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted by
law, reasonable attorneys’ fees, arising from any and all debts, liabilities and obligations of every nature or form, now existing or hereafter arising or acquired, that Borrowers individually or collectively or interchangeably with others,
owes or will owe Lender, including but not limited to the Developer Notes. “Indebtedness” includes, without limitation, loans, advances, debts, overdraft indebtedness, credit card indebtedness, lease obligations, liabilities and
obligations under any interest rate protection agreements or foreign currency exchange agreements or commodity price protection agreements, other obligations, and liabilities of Borrowers, and any present or future judgments against Borrowers,
future advances, loans or transactions that renew, extend, modify, refinance, consolidate or substitute these debts, liabilities and obligations whether: voluntarily or involuntarily incurred; due or to become due by their terms or acceleration;
absolute or contingent; liquidated or unliquidated; determined or undetermined; direct or indirect; primary or secondary in nature or arising from a guaranty or surety; secured or unsecured; joint or several or joint and several; evidenced by a
negotiable or non-negotiable instrument or writing; originated by Lender or another or others; barred or unenforceable against Borrowers for any reason whatsoever; for any transactions that may be voidable for any reason (such as infancy, insanity,
ultra vires or otherwise); and originated then reduced or extinguished and then afterwards increased or reinstated. 
 If Lender
presently holds one or more guaranties, or hereafter receives additional guaranties from Guarantors, Lender’s rights under all guaranties shall be cumulative. This Guaranty shall not (unless specifically provided below to the contrary) affect
or invalidate any such other guaranties. Guarantors’ liability will be Guarantors’ aggregate liability under the terms of this Guaranty and any such other unterminated guaranties. 

CONTINUING GUARANTY. THIS IS A “CONTINUING GUARANTY” UNDER WHICH GUARANTORS AGREE TO GUARANTEE THE FULL AND PUNCTUAL
PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWERS TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE
INDEBTEDNESS

 
WILL NOT DISCHARGE OR DIMINISH GUARANTORS’ OBLIGATIONS AND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF THE OUTSTANDING INDEBTEDNESS
MAY BE A ZERO BALANCE FROM TIME TO TIME. 
 DURATION OF GUARANTY. This Guaranty will take effect when received by Lender
without the necessity of any acceptance by Lender, or any notice to Guarantors or to Borrowers, and will continue in full force until all the Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been
fully and finally paid and satisfied and all of Guarantors’ other obligations under this Guaranty shall have been performed in full. If Guarantors elect to revoke this Guaranty, Guarantors may only do so in writing. Guarantors’ written
notice of revocation must be mailed to Lender, by certified mail, at Lender’s address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to new Indebtedness created after
actual receipt by Lender of Guarantors’ written revocation. For this purpose and without limitation, the term “new Indebtedness” does not include the Indebtedness which at the time of notice of revocation is contingent, unliquidated,
undetermined or not due and which later becomes absolute, liquidated, determined or due. For this purpose and without limitation, “new Indebtedness” does not include all or part of the Indebtedness that is: incurred by Borrowers prior to
revocation; incurred under a commitment that became binding before revocation; any renewals, extensions, substitutions, and modifications of the Indebtedness. This Guaranty shall bind Hoskins’ estate as to the Indebtedness created both before
and after Hoskins’death or incapacity, regardless of Lender’s actual notice of Hoskins’ death. Subject to the foregoing, Hoskins’ executor or administrator or other legal representative may terminate this Guaranty in the same
manner in which Hoskins might have terminated it and with the same effect. Release of any other Guarantors or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantors under this Guaranty. A revocation Lender
receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of the Indebtedness covered by this Guaranty, and
Guarantors specifically acknowledge and agree that reductions in the amount of the Indebtedness, even to zero dollars ($0.00), shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantors and Guarantors’ heirs,
successors and assigns so long as any of the Indebtedness remains unpaid and even though the Indebtedness may from time to time be zero dollars ($0.00). 
 GUARANTORS’ AUTHORIZATION TO LENDER. Guarantors authorize Lender, either before or after any revocation hereof, without notice or demand and without lessening Guarantors’ liability
under this Guaranty, from time to time: (A) prior to revocation as set forth above, to make one or more additional secured or unsecured loans to Borrowers, to lease equipment or other goods to Borrowers, or otherwise to extend additional
credit to Borrowers; (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the
rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate,
fail or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release, substitute, agree not to sue, or deal with any one or more of Borrowers’ sureties, endorsers, or other
Guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made on the Indebtedness; (F) to apply such security and direct the order or manner of sale
thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations in all
or any part of the Indebtedness; and (H) to assign or transfer this Guaranty in whole or in part. 
 GUARANTORS’
REPRESENTATIONS AND WARRANTIES. Guarantors represent and warrant to Lender that (A) no 

 
representations or agreements of any kind have been made to Guarantors which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty is executed at Borrowers’
request and not at the request of Lender; (C) Guarantors have full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other
instrument binding upon Guarantors and do not result in a violation of any law, regulation, court decree or order applicable to Guarantors; (E) Guarantors have not and will not, without the prior written consent of Lender, sell, lease, assign,
encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantors’ assets, or any interest therein; (F) upon Lender’s request, Guarantors will provide to Lender financial and credit information in form
acceptable to Lender, and all such financial information which currently has been, and all future financial information which will be provided to Lender is and will be true and correct in all material respects and fairly present Guarantors’
financial condition as of the dates the financial information is provided; (G) no material adverse change has occurred in Guarantors’ financial condition since the date of the most recent financial statements provided to Lender and no
event has occurred which may materially adversely affect Guarantors’ financial condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantors is pending
or threatened; (I) Lender has made no representation to Guarantors as to the creditworthiness of Borrowers; and (J) Guarantors have established adequate means of obtaining from Borrowers on a continuing basis information regarding
Borrowers’ financial condition. Guarantors agree to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantors’ risks under this Guaranty, and Guarantors further agree that
Lender shall have no obligation to disclose to Guarantors any information or documents acquired by Lender in the course of its relationship with Borrowers. 
 GUARANTORS’ WAIVERS. Except as prohibited by applicable law, Guarantors waive any right to require Lender (A) to continue lending money or to extend other credit to Borrowers; (B) to
make any presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the part of Borrowers, Lender, any surety,
endorser, or other Guarantors in connection with the Indebtedness or in connection with the creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person, including Borrowers
or any other Guarantors; (D) to proceed directly against or exhaust any collateral held by Lender from Borrowers, any other Guarantors, or any other person; (E) to give notice of the terms, time, and place of any public or private sale of
personal property security held by Lender from Borrowers or to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender’s power; or (G) to commit any act or omission of
any kind, or at any time, with respect to any matter whatsoever. 
 Guarantors also waive any and all rights or defenses based
on suretyship or impairment of collateral including, but not limited to, any rights or defenses arising by reason of (A) any “one action” or “anti-deficiency” law or any other law which may prevent Lender from bringing any
action, including a claim for deficiency, against Guarantors, before or after Lender’s commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; (B) any election of remedies by Lender which
destroys or otherwise adversely affects Guarantors’ subrogation rights or Guarantors’ rights to proceed against Borrowers for reimbursement, including without limitation, any loss of rights Guarantors may suffer by reason of any law
limiting, qualifying, or discharging the Indebtedness; (C) any disability or other defense of Borrowers, of any other Guarantors, or of any other person, or by reason of the cessation of Borrowers’ liability from any cause whatsoever,
other than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any
time any action or suit brought by Lender against Guarantors is commenced, there is outstanding Indebtedness which is not barred by any applicable statute of limitations; or (F) any defenses given to Guarantors at law or in equity other than actual
payment and performance of the Indebtedness. If payment is made by Borrowers, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrowers’ trustee
in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. 

 Guarantors further waive and agree not to assert or claim at any time any deductions to the
amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrowers, the Guarantors, or both. 

GUARANTORS’ UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantors warrant and agree that each of the waivers set forth above is
made with Guarantors’ full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable
law or public policy, such waiver shall be effective only to the extent permitted by law or public policy. 
 SUBORDINATION
OF BORROWERS’ DEBTS TO GUARANTORS. Guarantors agree that the Indebtedness, whether now existing or hereafter created, shall be superior to any claim that Guarantors may now have or hereafter acquire against Borrowers, whether or not
Borrowers become insolvent. Guarantors hereby expressly subordinate any claim Guarantors may have against Borrowers, upon any account whatsoever, to any claim that Lender may now or hereafter have against Borrowers. In the event of insolvency and
consequent liquidation of the assets of Borrowers, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrowers applicable to the payment of the claims of both Lender and
Guarantors shall be paid to Lender and shall be first applied by Lender to the Indebtedness. Guarantors do hereby assign to Lender all claims which they may have or acquire against Borrowers or against any assignee or trustee in bankruptcy of
Borrowers; provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests, any notes or credit agreements now or hereafter evidencing any
debts or obligations of Borrowers to Guarantors shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantors agree and Lender is hereby authorized, in the name of Guarantors, from time to time
to file financing statements and continuation statements and to execute documents and to take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty. 

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: 

Amendments. This Guaranty, together with any Related Documents, constitutes the entire understanding and agreement of the parties
as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. 

Attorneys’ Fees; Expenses. Guarantors agree to pay upon demand all of Lender’s costs and expenses, including
Lender’s reasonable attorneys’ fees and Lender’s legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty, and Guarantors shall pay the costs and
expenses of such enforcement. Costs and expenses include Lender’s reasonable attorneys’ fees and legal expenses whether or not there is a lawsuit, including reasonable attorneys’ fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Guarantors also shall pay all court costs and such additional fees as may be directed by the court. 

Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or
define the provisions of this Guaranty. 

 Governing Law. This Guaranty will be governed by federal law applicable to Lender and, to
the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. 
 Choice of Venue. If there is a lawsuit, Guarantors agree upon Lender’s request to submit to the jurisdiction of the courts of the Commonwealth of Pennsylvania, in the county in which
Lender’s following address is located: 3508 WASHINGTON ROAD, MCMURRAY, PA 15317. 
 Integration. Guarantors further
agree that Guarantorshave read and fully understand the terms of this Guaranty; Guarantors have had the opportunity to be advised by Guarantors’ attorney with respect to this Guaranty; the Guaranty fully reflects Guarantors’ intentions and
parol evidence is not required to interpret the terms of this Guaranty. Guarantors hereby indemnify and hold Lender harmless from all losses, claims, damages, and costs (including Lender’s attorneys’ fees) suffered or incurred by Lender as
a result of any breach by Guarantors of the warranties, representations and agreements of this paragraph. 

Interpretation. In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the
singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words
“Borrower” and “Guarantor” respectively shall mean all and any one or more of them. The words “Guarantor,” “Borrower,” and “Lender” include the heirs, successors, assigns, and transferees of each of
them. If a court finds that any provision of this Guaranty is not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the
provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entities, it is not
necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, partners, managers, or other agents acting or purporting to act on their behalf, and any indebtedness made or created in reliance upon the
professed exercise of such powers shall be guaranteed under this Guaranty. 
 Notices. Unless otherwise provided by
applicable law, any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantors, shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise
required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the
beginning of this Guaranty. All revocation notices by Guarantors shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled “DURATION OF GUARANTY.” Any party may change its
address for notices under this Guaranty by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes, Guarantors agree to keep Lender informed at all times
of each of the Guarantors’ current addresses. Unless otherwise provided by applicable law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. 

No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in
writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a
waiver of Lender’s right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantors, shall constitute a waiver of any of
Lender’s rights or of any of Guarantors’ obligations as to any future transactions. Whenever the consent of 

 
Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and
in all cases such consent may be granted or withheld in the sole discretion of Lender. 
 Successors and Assigns. The
terms of this Guaranty shall be binding upon Guarantors, and upon Guarantors’ heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. 

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless
specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as
the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: 
 Borrowers. The word “Borrowers” means INVESTOR’S MARK ACQUISITIONS, LLC and BENJAMIN MARCUS HOMES, L.L.C. and includes all co-signers and co-makers signing the Developer Notes and
all their successors and assigns. 
 Credit Agreement. The word “Credit Agreement” means the Credit Agreement
as more particularly described in this Guaranty. 
 Developer Notes. The word “Developer Notes” means the BMH
Note, the New IMA Note and the Existing IMA Note as more particularly described in this Guaranty. 
 Guarantors. The word
“Guarantors” means everyone signing this Guaranty, including without limitation MARK L. HOSKINS, and in each case, any signer’s successors and assigns. 
 Guaranty. The word “Guaranty” means this guaranty from Guarantors to Lender. 
 Indebtedness. The word “Indebtedness” means Borrowers’ indebtedness to Lender as more particularly described in this Guaranty. 

Lender. The word “Lender” means SHEPHERD’S FINANCE, LLC., its successors and assigns. 

Related Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements,
environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the
Indebtedness. 
 [SIGNATURES APPEAR ON NEXT PAGE] 

 EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREE TO ITS
TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTORS’ EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED
“DURATION OF GUARANTY”. NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED AS OF DECEMBER 30, 2011. 
 THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. 

GUARANTORS: 
 INVESTOR’S MARK
ACQUISITIONS, LLC 
 By: /s/ Mark L.
Hoskins                                 

MARK L. HOSKINS, Manager of INVESTOR’S MARK 
 ACQUISITIONS, L.L.C. 
 BENJAMIN MARCUS HOMES, L.L.C. 

By: /s/ Mark L.
Hoskins                                 

MARK L. HOSKINS, Manager of INVESTOR’S MARK 
 ACQUISITIONS, L.L.C. 
 /s/ Mark L.
Hoskins                                      

 MARK L. HOSKINS 
 (Seal)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00204-of-00352.parquet"}]]