Document:

FIRST
AMENDMENT TO Promissory NOTE

 

This
FIRST AMENDMENT TO Promissory Note (this “First Amendment”)
is made and entered into on June 14, 2018, by and among SHEPHERD’S FINANCE, LLC (“Borrower”),
and 2007 DANIEL M. WALLACH LEGACY TRUST (“Lender”).

 

W
I T N E S S E T H:

 

WHEREAS,
Borrower and Lender have entered into that certain Promissory Note dated as of December 30, 2011 (the “Promissory Note”),
pursuant to which Lender advanced to Borrower a loan in the maximum principal amount of Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00) (the “Loan”), which is secured by that certain Commercial Pledge Agreement, dated as
of December 30, 2011(the “Wallach Commercial Pledge Agreement” and, collectively with the Promissory Note,
the “Loan Documents”) pursuant to which Lender is granted a first priority security interest in certain of
Borrower’s personal property;

 

WHEREAS,
the interest rate to the Borrower on the Promissory Note equals the cost of funds, and management of the Borrower has recommended
that the interest rate to the Borrower on the Promissory Note be changed to equal the cost of funds plus two percent;

 

NOW,
THEREFORE, for and in consideration of the above premises, Ten Dollars in hand paid and other good and valuable consideration,
the receipt and sufficiency whereof are hereby acknowledged, Borrower and Lender hereby agree as follows:

 

1.
Recitals. The foregoing recitals are confirmed by the parties as true and correct and are incorporated herein by reference.
The recitals are a substantive, contractual part of this First Amendment.

 

2.
Capitalized Terms. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings ascribed
thereto in the Loan Documents.

 

3.
Modification to Interest Calculation Method. As of the date hereof, the paragraph that begins “INTEREST CALCULATION
METHOD” is deleted in its entirety and simultaneously substituted in lieu thereof by the following:

 

INTEREST
CALCULATION METHOD. The interest rate on this Note shall equal the “Lender’s Cost of Funds,” which shall
mean a daily rate equal to the “Prime Rate” of interest published in The Wall Street Journal from time to time, plus
three percent. If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of
such “Prime Rates” shall be used, and such average shall be rounded up to the nearest 1/100th of one percent (0.01%).

 

4.
Modification to Governing Law. As of the date hereof, the paragraph that begins “GOVERNING LAW” is deleted
in its entirety and simultaneously substituted in lieu thereof by the following:

 

    	 	 	 

     

    

 

GOVERNING
LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Florida without regard to its conflicts of law provisions. This Note has been accepted by each Lender in the State
of Florida.

 

5.
Modification to Choice of Venue. As of the date hereof, the paragraph that begins “COICE OF VENUE” is
deleted in its entirety and simultaneously substituted in lieu thereof by the following:

 

COICE
OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of
the State of Florida, in the county in which Lender’s following address is located: 13241 Bartram Park Blvd., Suite 2401,
Jacksonville, Florida 32258.

 

6.
Representations and Warranties. Borrower hereby represents and warrants as follows:

 

(a)
after giving effect to this First Amendment each of the representations and warranties in the Wallach Commercial Pledge and in
each of the other Loan Documents are true and correct in all material respects on and as of the date hereof as though made on
and as of such date;

 

(b)
no default or Event of Default has occurred and is continuing as of the date hereof;

 

(c)
the execution, delivery and performance by the Borrower of this First Amendment has been duly authorized by all requisite company
action on the part of the Borrower and will not violate any of its articles of organization, operating agreement, bylaws or other
organizational documents;

 

(d)
this First Amendment has been duly executed and delivered by Borrower, and this First Amendment constitutes the legal, valid and
binding obligation of Borrower enforceable against it in accordance with its terms; and

 

(e)
no action or proceeding, including, without limitation, a voluntary or involuntary petition for bankruptcy under any chapter of
the Bankruptcy Code, has been instituted or threatened by or against Borrower under the Bankruptcy Code or any other federal or
state insolvency laws.

 

7.
Conditions to Effectiveness. This First Amendment shall become effective when the Lender shall have received, in form and
substance satisfactory to the Lender:

 

(a)
counterparts of this First Amendment executed by the Borrower and the Lender; and

 

(b)
all reasonable fees and expenses payable or reimbursable by the Borrower as of the date hereof, including, without limitation,
all costs, fees and expenses of the Lender in connection with the preparation, execution and delivery of this First Amendment
and the other instruments and documents to be delivered pursuant hereto (including the reasonable fees and out-of-pocket expenses
of counsel for the Lender with respect thereto).

 

    	 	 	 

     

    

 

8.
No Other Agreements; No Novation. Except as expressly modified and amended hereby, the Promissory Note shall be and remain
in full force and effect and unchanged and is hereby ratified and confirmed. The execution, delivery and effectiveness of this
First Amendment shall not, except as expressly provided herein, operate as an amendment, waiver or modification of any right,
power or remedy of the Lender under any of the Loan Documents, nor constitute an amendment, waiver or modification of any other
provisions of the Loan Documents. Neither the execution and delivery of this First Amendment, nor the consummation of any transaction
contemplated hereunder, is intended to constitute a novation of the Promissory Note or of any of the other Loan Documents or any
obligations thereunder. This First Amendment shall constitute a Loan Document for all purposes.

 

9.
Reaffirmation and Ratification. Borrower acknowledges and agrees that the security interests and liens granted to the Lender
pursuant to the Loan Documents shall remain outstanding and in full force and effect in accordance with the Loan Documents, and
shall continue to secure the Obligations, and that the security and other interests granted to the Lender thereby are hereby ratified,
confirmed and continued by execution and delivery of this First Amendment. The Loan Documents shall remain extant and in full
force and effect following the execution and delivery of this First Amendment and any other Loan Documents executed in connection
therewith.

 

10.
Waiver of Claims. To induce the Lender to enter into this First Amendment, Borrower warrants and represents to the Lender
that the Loan is not subject to any credits, charges, claims, or rights of offset or deduction of any kind or character whatsoever;
and Borrower releases and discharges the Lender and its respective affiliates, officers, directors, shareholders, employees, attorneys
and agents from any and all claims, defenses and causes of action, whether known or unknown and whether now existing or hereafter
arising that have at any time been owned, or that are hereafter owned, in tort or in contract by Borrower, that arise out of any
one or more circumstances or events that occurred prior to the date of this First Amendment and that relate to the Loan, the Promissory
Note, the Loan Documents or the transactions described therein.

 

11.
Strict Compliance Notice. Lender hereby notifies the Borrower that Lender intends to rely upon the strict terms and conditions
of the Promissory Note and the other Loan Documents, and the Lender expects that the Borrower will strictly comply with the terms
and conditions thereof from and after the date hereof.

 

12.
Governing Law. This First Amendment will be governed by federal law applicable to Lender and, to the extent not preempted
by federal law, the laws of the State of Florida without regard to its conflicts of law provisions. This First Amendment has been
accepted by the Lender in the State of Florida.

 

    	 	 	 

    	 	 	 

    

 

13.
Choice of Venue. If there is a lawsuit, Lender and Borrower agree to submit to the jurisdiction of the courts of the State
of Florida, in the county in which Lender’s following address is located: 13241 Bartram Park Blvd., Suite 2401, Jacksonville,
Florida 32258.

 

14.
Counterparts and Headings. This First Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same instrument. The headings of this First Amendment are for convenience of reference only, are
not part of this First Amendment and are not to affect the construction of, or to be taken into consideration interpreting, this
First Amendment.

 

[SIGNATURES
BEGIN ON THE FOLLOWING PAGE]

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, Borrower and Lender have caused this First Amendment to be executed as of the day and year first above written.

 

	 	BORROWER:
	 	 	 
	 	SHEPHERD’S FINANCE, LLC
	 	 	 
	 	By:
    	/s/
    Daniel M. Wallach
	 	Name:	Daniel
M. Wallach
	 	Title:
    	Chief
    Executive Officer

 

[SIGNATURES
CONTINUE ON THE FOLLOWING PAGE]

 

    	 	 	 

     

    

 

	 	LENDER:
	 	 	 
	 	2007 DANIEL M. WALLACH LEGACY TRUST
	 	 	 
	 	By:
    	/s/
    Daniel M. Wallach
	 	Name:	Daniel
M. Wallach
	 	Title:
    	TrusteeExhibit

Exhibit  10.4

CHANGE ORDER FORM

System Inspection Isometrics

	
		
	PROJECT NAME:  Sabine Pass LNG Stage 3 Liquefaction Facility

OWNER:  Sabine Pass Liquefaction, LLC

CONTRACTOR:  Bechtel Oil, Gas and Chemicals, Inc.

DATE OF AGREEMENT: May 4, 2015
	CHANGE ORDER NUMBER: CO-00033

DATE OF CHANGE ORDER: May 24, 2018

The Agreement between the Parties listed above is changed as follows: (attach additional documentation if necessary)

		
	1.
	Per Article 6.1.B of the Agreement, the Parties agree Contractor shall develop inspection piping isometrics to facilitate system inspections. The inspection piping isometrics are to be developed within six months following approval of this Change Order.

		
	2.
	The work pursuant to this Change Order is not a condition to and will not prevent the achievement of Stage 3 Substantial Completion or impact the Stage 3 Defect Correction Period.

		
	3.
	The cost breakdown for this Change Order is detailed in Exhibit A.

		
	4.
	Schedule C-1 (Milestone Payment Schedule) of Attachment C of the Agreement will be amended by including the milestone(s) listed in Exhibit B of this Change Order.

Adjustment to Contract Price
	
				
	The original Contract Price was........................................................................................................................
	$
	2,987,000,000
	

	Net change by previously authorized Change Orders (#00001-00032)............................................................
	$
	105,739,177
	

	The Contract Price prior to this Change Order was..........................................................................................
	$
	3,092,739,177
	

	The Contract Price will be increased by this Change Order in the amount of..................................................
	$
	879,340
	

	The new Contract Price including this Change Order will be..........................................................................
	$
	3,093,618,517
	

Adjustment to dates in Project Schedule
The following dates are modified (list all dates modified; insert N/A if no dates modified): N/A

Adjustment to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary) N/A

Adjustment to Payment Schedule: Yes. See Exhibit B. 

Adjustment to Minimum Acceptance Criteria: N/A

Adjustment to Performance Guarantees:  N/A

Adjustment to Design Basis: N/A

Other adjustments to liability or obligation of Contractor or Owner under the Agreement: N/A

Select either A or B:
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change.  Initials:  /s/ BT_ Contractor  s/ EL_ Owner

[B] This Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall not be deemed to compensate Contractor fully for such change.  Initials:  ____ Contractor  ____ Owner

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order.  Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect.  This Change Order is executed by each of the Parties’ duly authorized representatives. 

	
			
	/s/ Ed Lehotsky
	 
	/s/ Bhupesh Thakkar

	Owner
	 
	Contractor

	Ed Lehotsky
	 
	Bhupesh Thakkar

	Name
	 
	Name

	SVP LNG E&C
	 
	Senior Project Manager

	Title
	 
	Title

	June 8, 2018
	 
	May 24, 2018

	Date of Signing
	 
	Date of Signing

                                

CHANGE ORDER FORM

Site Evacuation

	
		
	PROJECT NAME:  Sabine Pass LNG Stage 3 Liquefaction Facility

OWNER:  Sabine Pass Liquefaction, LLC

CONTRACTOR:  Bechtel Oil, Gas and Chemicals, Inc.

DATE OF AGREEMENT: May 4, 2015
	CHANGE ORDER NUMBER: CO-00034

DATE OF CHANGE ORDER: May 31, 2018

The Agreement between the Parties listed above is changed as follows: (attach additional documentation if necessary)

		
	1.
	Per Article 6.1.B of the Agreement, the Parties agree Owner shall pay Contractor Three Hundred Eleven Thousand Nine U.S. Dollars (U.S. $311,009) for craft and field non-manual costs incurred during the Site evacuation on April 26, 2018. The Site evacuation was in response to an emergency event in the Existing Facility. 

		
	2.
	The cost breakdown for this Change Order is detailed in Exhibit A.

		
	3.
	Schedule C-1 (Milestone Payment Schedule) of Attachment C of the Agreement will be amended by including the milestone(s) listed in Exhibit B of this Change Order.

Adjustment to Contract Price
	
				
	The original Contract Price was........................................................................................................................
	$
	2,987,000,000
	

	Net change by previously authorized Change Orders (#00001-00033)............................................................
	$
	106,618,517
	

	The Contract Price prior to this Change Order was..........................................................................................
	$
	3,093,618,517
	

	The Contract Price will be increased by this Change Order in the amount of..................................................
	$
	311,009
	

	The new Contract Price including this Change Order will be..........................................................................
	$
	3,093,929,526
	

Adjustment to dates in Project Schedule
The following dates are modified (list all dates modified; insert N/A if no dates modified): N/A

Adjustment to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary) N/A

Adjustment to Payment Schedule: Yes. See Exhibit B. 

Adjustment to Minimum Acceptance Criteria: N/A

Adjustment to Performance Guarantees:  N/A

Adjustment to Design Basis: N/A

Other adjustments to liability or obligation of Contractor or Owner under the Agreement: N/A

Select either A or B:
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change.  Initials:  
s/ BT_ Contractor  s/ EL_ Owner

[B] This Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall not be deemed to compensate Contractor fully for such change.  Initials:  ____ Contractor  ____ Owner

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order.  Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect.  This Change Order is executed by each of the Parties’ duly authorized representatives. 

	
			
	/s/ Ed Lehotsky
	 
	/s/ Bhupesh Thakkar

	Owner
	 
	Contractor

	Ed Lehotsky
	 
	Bhupesh Thakkar

	Name
	 
	Name

	SVP LNG E&C
	 
	Senior Project Manager

	Title
	 
	Title

	June 19, 2018
	 
	May 31, 2018

	Date of Signing
	 
	Date of Signing

CHANGE ORDER FORM

Existing & Stages 1 and 2 Liquefaction Facility Provisional Sum True-Up 

	
		
	PROJECT NAME:  Sabine Pass LNG Stage 3 Liquefaction Facility

OWNER:  Sabine Pass Liquefaction, LLC

CONTRACTOR:  Bechtel Oil, Gas and Chemicals, Inc.

DATE OF AGREEMENT: May 4, 2015
	CHANGE ORDER NUMBER: CO-00035

DATE OF CHANGE ORDER: June 7, 2018

The Agreement between the Parties listed above is changed as follows: (attach additional documentation if necessary)

		
	1.
	Change Order CO-00020, dated March 29, 2017, increased the Existing & Stages 1 and 2 Liquefaction Facility Labor Provisional Sum specified in Article 2.2 of Attachment EE, Schedule EE-2 of the Stage 3 Agreement to U.S. $57,307,342 and 415,131 hours. This Change Order decreases the Existing & Stages 1 and 2 Liquefaction Facility Labor Provisional Sum by $33,007,589 and 225,357 hours. The new Existing & Stages 1 and 2 Liquefaction Facility Labor Provisional Sum is Twenty-Four Million, Two Hundred Ninety-Nine Thousand, Seven Hundred Fifty-Three U.S. Dollars ($24,299,753) and 189,774 hours.

		
	2.
	The Aggregate Provisional Sum specified in Article 7.1A of the Agreement prior to this Change Order was $324,346,437.  This Change Order decreases the Aggregate Provisional Sum amount by $33,007,589 resulting in a new value is $291,338,848.

		
	3.
	The cost breakdown for this Change Order is detailed in Exhibit A.

		
	4.
	Schedule C-1 (Milestone Payment Schedule) of Attachment C of the Agreement will be amended by including the milestone(s) listed in Exhibit B of this Change Order.

Adjustment to Contract Price
	
				
	The original Contract Price was........................................................................................................................
	$
	2,987,000,000
	

	Net change by previously authorized Change Orders (#00001-00034)............................................................
	$
	106,929,526
	

	The Contract Price prior to this Change Order was..........................................................................................
	$
	3,093,929,526
	

	The Contract Price will be increased by this Change Order in the amount of..................................................
	$
	(33,007,589
	)

	The new Contract Price including this Change Order will be..........................................................................
	$
	3,060,921,937
	

Adjustment to dates in Project Schedule
The following dates are modified (list all dates modified; insert N/A if no dates modified): N/A

Adjustment to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary) N/A

Adjustment to Payment Schedule: Yes. See Exhibit B. 

Adjustment to Minimum Acceptance Criteria: N/A

Adjustment to Performance Guarantees:  N/A

Adjustment to Design Basis: N/A

Other adjustments to liability or obligation of Contractor or Owner under the Agreement: N/A

Select either A or B:
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change.  Initials:  

s/ BT_ Contractor  s/ EL_ Owner

[B] This Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall not be deemed to compensate Contractor fully for such change.  Initials:  ____ Contractor  ____ Owner

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order.  Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect.  This Change Order is executed by each of the Parties’ duly authorized representatives. 

	
			
	/s/ Ed Lehotsky
	 
	/s/ Bhupesh Thakkar

	Owner
	 
	Contractor

	Ed Lehotsky
	 
	Bhupesh Thakkar

	Name
	 
	Name

	SVP LNG E&C
	 
	Senior Project Manager

	Title
	 
	Title

	June 19, 2018
	 
	June 7, 2018

	Date of Signing
	 
	Date of Signing

CHANGE ORDER FORM

General Electric, Instrument, and Valve Spares

	
		
	PROJECT NAME:  Sabine Pass LNG Stage 3 Liquefaction Facility

OWNER:  Sabine Pass Liquefaction, LLC

CONTRACTOR:  Bechtel Oil, Gas and Chemicals, Inc.

DATE OF AGREEMENT: May 4, 2015
	CHANGE ORDER NUMBER: CO-00036

DATE OF CHANGE ORDER: June 7, 2018

The Agreement between the Parties listed above is changed as follows: (attach additional documentation if necessary)

		
	1.
	Per Article 6.1.B of the Agreement, Parties agree Contractor will provide Owner the General Electric, instrument and valve spare parts and tools listed in Exhibit A.

		
	2.
	The cost breakdown for this Change Order is detailed in Exhibit B.

		
	3.
	Schedule C-1 (Milestone Payment Schedule) of Attachment C of the Agreement will be amended by including the milestone(s) listed in Exhibit C of this Change Order.

Adjustment to Contract Price
	
				
	The original Contract Price was........................................................................................................................
	$
	2,987,000,000
	

	Net change by previously authorized Change Orders (#00001-00035)............................................................
	$
	73,921,937
	

	The Contract Price prior to this Change Order was..........................................................................................
	$
	3,060,921,937
	

	The Contract Price will be increased by this Change Order in the amount of..................................................
	$
	536,563
	

	The new Contract Price including this Change Order will be..........................................................................
	$
	3,061,458,500
	

Adjustment to dates in Project Schedule
The following dates are modified (list all dates modified; insert N/A if no dates modified): N/A

Adjustment to other Changed Criteria (insert N/A if no changes or impact; attach additional documentation if necessary) N/A

Adjustment to Payment Schedule: Yes. See Exhibit C. 

Adjustment to Minimum Acceptance Criteria: N/A

Adjustment to Performance Guarantees:  N/A

Adjustment to Design Basis: N/A

Other adjustments to liability or obligation of Contractor or Owner under the Agreement: N/A

Select either A or B:
[A] This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change.  Initials:  
s/ BT_ Contractor  s/ EL_ Owner

[B] This Change Order shall not constitute a full and final settlement and accord and satisfaction of all effects of the change reflected in this Change Order upon the Changed Criteria and shall not be deemed to compensate Contractor fully for such change.  Initials:  ____ Contractor  ____ Owner

Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change Order.  Except as modified by 

this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect.  This Change Order is executed by each of the Parties’ duly authorized representatives. 
	
			
	/s/ Ed Lehotsky
	 
	/s/ Bhupesh Thakkar

	Owner
	 
	Contractor

	Ed Lehotsky
	 
	Bhupesh Thakkar

	Name
	 
	Name

	SVP LNG E&C
	 
	Senior Project Manager

	Title
	 
	Title

	June 19, 2018
	 
	June 7, 2018

	Date of Signing
	 
	Date of Signing

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