Document:

Exhibit 10.2

 

PROMISSORY NOTE

 

	Borrower:	
        Southeastern Land Developers,
        LLC

        6350 Lake Oconee Parkway,
        STE 102, PMB 103

        Greensboro, GA 30642
	Lender:	
        Shepherd’s Finance, LLC

        12627 San Jose Boulevard

        Suite 203

        Jacksonville, FL 32223

        (302) 752-2688

 

	Principal Amount:  $1,050,000.00	Initial Rate:   9.85%	Date of Note:  June 20, 2014

 

PROMISE TO PAY.
Southeastern Land Developers, LLC ("Borrower") promises to pay to Shepherd’s Finance, LLC ("Lender"),
or order, in lawful money of the United

 

+6+ States of America,
on demand, but in no event later than June 30, 2016 (“Maturity Date”), the principal amount of One Million Fifty Thousand
and 00/100 Dollars ($1,050,000.00) or so much as may be advanced under the Loan Documents from time to time, together with interest
on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until
repayment of each advance. Lender shall disburse the funds in accordance with the Construction Loan Agreement and other Loan Documents.

 

PAYMENT. Borrower
will make payments of principal and interest on this loan on demand, and as otherwise provided in that certain Credit Agreement
by and between Borrower and Lender dated of even date herewith (the "Credit Agreement"). Unless otherwise agreed or
required by applicable law, payments will be applied first to any unpaid collection costs; then to any late charges; then to any
accrued unpaid interest; and then to principal. Borrower will pay Lender at Lender's address shown above or at such other place
as Lender may designate in writing.

 

VARIABLE INTEREST
RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which
is the Shepherd’s Finance, LLC Cost of Funds plus the Rate Adder. Lender’s Cost of Funds (the "Index"),
shall mean the greater of five percent (5.0%) or the weighted average price paid by Lender on or in connection with all of its
borrowed funds. Such weighted average price shall include interest rates, loan fees, legal fees and any and all other costs paid
by Lender on its borrowed funds, and, in the case of funds borrowed by Lender from an Affiliate of Lender, the weighted average
price paid by such Affiliate on or in connection with such borrowed funds. Lender’s Cost of Funds is determined each month
at the beginning of the month, based on the cost of funds for the previous month. Each change in such rate shall be effective
as of the beginning of the month. The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes
unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower
the current Index rate upon Borrower's request. The interest rate change will not occur more often than each change in the Index.
The interest rate on the Loan will be adjusted contemporaneously with changes in the Index. Borrower understands that Lender may
make loans based on other rates as well. The Index currently is 7.850% per annum. Interest on the unpaid principal balance
of this Note will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate equal to the
percentage points over the Index, as set forth in the Rate Adder below, adjusted if necessary for any minimum and maximum rate
limitations described below, resulting in an initial rate of 9.850% per annum. NOTICE: Under no circumstances will the interest
rate on this Note be less than 7.000% per annum or more than the maximum rate allowed by applicable law.

 

“Rate Adder”
shall be calculated each month, based on the number of full months since the Closing Date.

 

	
        Number of full months
        since

        Closing Date
	Rate Adder
	1-12	2%
	13 and greater	7%

 

INTEREST CALCULATION METHOD. Interest
on this Note shall be computed as provided in the Credit Agreement.

 

PREPAYMENT.
Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not
be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except
for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments
will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued
unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked
"paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept
it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to
Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates
that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations
or as full satisfaction of a disputed amount must be mailed or delivered to: Shepherd’s Finance, LLC, 12627 San Jose Boulevard,
STE 203, Jacksonville, FL 32223.

 

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INTEREST AFTER
MATURITY OR DEFAULT. Interest on this Note shall be computed as provided in the Credit Agreement.

 

DEFAULT. Each
of the following shall constitute an event of default ("Event of Default") under this Note:

 

Payment
Default. Borrower fails to make any payment when due under this Note, and such default shall continue ten (10) consecutive
days.

 

Other
Defaults. Borrower defaults in the performance or observance of any term , obligation , covenant , condition , agreement or
duty contained in this Note, the Credit Agreement or any of the Related Documents or defaults in the performance or observance
of any term, obligation, covenant, condition, agreement or duty contained in any other agreement between Lender and Borrower.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under
this Note, the Credit Agreement, or any of 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.

 

Death
or Insolvency. The dissolution of Borrower or any guarantor (regardless of whether election to continue is made), any member
withdraws from the limited liability company , or any other termination of Borrower's or any guarantor's existence as a going
business or the death of any member or guarantor, including, without limitation, Vincent T. Zadjeika, the insolvency of Borrower
or any guarantor , the appointment of a receiver for any part of Borrower's or any guarantor'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 Borrower or any guarantor.

 

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 Borrower or an affiliate of Borrower which is or which shall become obligated
to Lender in connection with the loan or otherwise (an "Obligated Affiliate"), or by any governmental agency against
any property securing the loan. This includes a garnishment of any of Borrower'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 Borrower 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 Borrower 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.

 

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 evidenced
by this Note.

 

Adverse
Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or
performance of this Note is impaired.

 

Event of Default under the Credit Agreement or any Loan Document. The occurrence of
an Event of Default (as such term is defined in the Credit Agreement) under the terms of the Credit Agreement or the occurrence
of a default or Event of Default (as such term is defined in any Loan Document) under any Loan Document (as such term is defined
in the Credit Agreement).

 

LENDER'S RIGHTS.
Upon Lender's demand, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

ATTORNEYS' FEES;
EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender
that amount. This includes, 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 legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction), and appeals. Lender may also recover from Borrower all
court, alternative dispute resolution or other collection costs (including, without limitation, fees and charges of collection
agencies) actually incurred by Lender.

 

JURY WAIVER.
Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender
or Borrower against the other.

 

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 Georgia without regard to its conflicts of law provisions. This Note has been given by Borrower and accepted by Lender
in the State of Georgia.

 

CHOICE OF VENUE.
If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Greene County,
State of Georgia.

 

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COLLATERAL.
Borrower acknowledges this Note is secured by the following collateral described in the security instrument listed herein: an
Deed to Secure Debt dated June 20, 2014, to Lender on real property located in Greene County, State of Georgia.

 

LINE OF CREDIT.
This Note evidences a straight line of credit. Once the total amount of principal has been advanced, Borrower is not entitled
to further loan advances. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of
an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note
at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs.

 

SUCCESSOR INTERESTS.
The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and
assigns, and shall inure to the benefit of Lender and its successors and assigns.

 

GENERAL PROVISIONS.
If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing
any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses
this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than
the party with whom the modification is made. The obligations under this Note are joint and several.

 

PRIOR TO SIGNING
THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER
AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES
RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

THIS NOTE IS
DELIVERED UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING
TO LAW.

 

BORROWER:

 

Southeastern
Land Developers, LLC

 

By: /s/ Charles
R. Rich                                         

Charles
R. Rich, Manager of Southeastern Land Developers, LLC

 

    	3Exhibit 10.3

 

WHEN
RECORDED MAIL TO:

 

 

SEND
TAX NOTICES TO:

Southeastern Land Developers,
LLC

6350 Lake Oconee Parkway,
STE 102, PMB 103

Greensboro, GA 30642

FOR RECORDER'S
USE ONLY

 

DEED
TO SECURE DEBT

(With
Future Advance Clause)

 

DATE
AND PARTIES. The date of this Deed to Secure Debt (GA) (Security Instrument) is JUNE 20, 2014. The parties and their addresses
are:

 

GRANTOR:

			Southeastern Land Developers, LLC

			A Georgia Limited Liability Company

			6350 Lake Oconee Parkway, STE 102, PMB 103,

			Greensboro, GA 30642

 

GRANTEE
(Lender):

			Shepherd’s Finance, LLC

			A Delaware Limited Liability Company

			12627 San Jose Boulevard, Suite 203,

			Jacksonville, FL 32223

 

1.
CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured
Debts and Grantor’s performance under this Security Instrument, Grantor irrevocably grants, bargains, transfers, conveys
and sells to Lender, with power of sale, the following described property:

 

See
"Exhibit A" attached to this document and made a part of this document as if fully set forth herein.

 

The Real Property or its address is
commonly known as 1020 Turnberry Circle, 1050 Quaker Ridge Road, and 1110 Oak Valley Road, all being in the Town of Greensboro,
County of Greene, State of GA, 30642. The Real Property parcel identification numbers are 075F000050, 055A000260, 074A000210.

 

Together with all rights, easements, appurtenances,
royalties, mineral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop producers,
all water and riparian rights, wells, ditches, reservoirs and water stock and all existing and future improvements, structures,
fixtures, and replacements that may now, or at any time in the future, be part of the real estate described (all referred to as
Property). This Security Instrument will remain in effect until the Secured Debts and all underlying agreements have been terminated
in writing by Lender, with a final maturity date of June 30, 2016.

 

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2. MAXIMUM LIEN. The total amount
of indebtedness secured by this Security Instrument may decrease or increase from time to time, but the maximum amount of principal
indebtedness which may be outstanding at any one time shall not exceed One Million Fifty Thousand and 00/100 Dollars ($1,050,000.00),
plus interest, and amounts expended or advanced by Lender for the payment of taxes, levies or insurance on the Property, and interest
on such amounts.

 

3. CROSS-COLLATERALIZATION. In addition
to the Note, this Security Instrument 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.

 

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 Uniform Commercial Code security interest in the Personal Property and Rents.

 

4. SECURED DEBTS. The term "Secured
Debts" includes and this Security Instrument will secure each of the following:

 

A. Specific Debts. The
following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or other agreement,
No. 1014624, dated June 20, 2014, from Grantor to Lender, with a loan amount of One Million Fifty Thousand and 00/100 Dollars ($1,050,000.00),
with an initial interest rate of 9.85 percent per year (this is a variable interest rate and may change as the promissory note
prescribes). One or more of the debts secured by this Security Instrument contains a future advance provision.

 

B. All Debts. All present
and future debts from Grantor to Lender, even if this Security Instrument is not specifically referenced, or if the future debt
is unrelated to or of a different type than this debt. If more than one person signs this Security Instrument, each agrees that
it will secure debts incurred either individually or with others who may not sign this Security Instrument. Nothing in this Security
Instrument constitutes a commitment to make additional or future loans or advances. Any such commitment must be in writing. In
the event that Lender fails to provide any required notice of the right of rescission, Lender waives any subsequent security interest
in the Grantor's principal dwelling that is created by this Security Instrument. This Security Instrument will not secure any debt
for which a non-possessory, non-purchase money security interest is created in "household goods" in connection with a
"consumer loan," as those terms are defined by federal law governing unfair and deceptive credit practices. This Security
Instrument will not secure any debt for which a security interest is created in "margin stock" and Lender does not obtain
a "statement of purpose," as defined and required by federal law governing securities.

 

C. Sums Advanced. All
sums advanced and expenses incurred by Lender under the terms of this Security Instrument.

 

5. PAYMENTS. Grantor agrees that
all payments under the Secured Debts will be paid when due and in accordance with the terms of the Secured Debts and this Security
Instrument.

 

6. WARRANTY OF TITLE. Grantor warrants
that Grantor is or will be lawfully seized of the estate conveyed by this Security Instrument and has the right to irrevocably
grant, bargain, transfer, convey and sell the Property to Lender, with power of sale. Grantor also warrants that the Property is
unencumbered, except for encumbrances of record.

 

7. PRIOR SECURITY INTERESTS. With
regard to any other mortgage, deed of trust, deed to secure debt, security agreement or other lien document that created a prior
security interest or encumbrance on the Property, Grantor agrees:

 

A. To make all payments
when due and to perform or comply with all covenants.

 

B. To promptly deliver to
Lender any notices that Grantor receives from the holder.

 

C. Not to allow any modification
or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior
written consent.

 

8. CLAIMS AGAINST TITLE. Grantor
will pay all taxes, assessments, liens, encumbrances , lease payments, ground rents, utilities, and other charges relating to the
Property when due. Lender may require Grantor to provide to Lender copies of all notices that such amounts are due and the receipts
evidencing Grantor's payment. Grantor will defend title to the Property against any claims that would impair the lien of this Security
Instrument. Grantor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses Grantor may have against
parties who supply labor or materials to maintain or improve the Property.

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9. DUE ON SALE. Lender may, at its
option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of, or contract for
the creation of, any transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by
federal law (12 C.F.R. 5911, as applicable.

 

10. TRANSFER OF AN INTEREST IN
THE GRANTOR. If Grantor is an entity other than a natural person (such as a corporation or other organization), Lender
may demand immediate payment if:

 

A. A beneficial interest
in Grantor is sold or transferred.

 

B. There is a change
in either the identity or number of members of a partnership or similar entity.

 

C. There is a change
in ownership of more than 25 percent of the voting stock of a corporation or similar entity.

 

However, Lender may not demand payment
in the above situations if it is prohibited by law as of the date of this Security Instrument.

 

11. WARRANTIES AND REPRESENTATIONS.
Grantor makes to Lender the following warranties and representations which will continue as long as this Security Instrument is
in effect:

 

A. Power. Grantor is duly
organized, and validly existing and in good standing in all jurisdictions in which Grantor operates. Grantor has the power and
authority to enter into this transaction and to carry on Grantor's business or activity as it is now being conducted and, as applicable,
is qualified to do so in each jurisdiction in which Grantor operates.

 

B. Authority. The execution,
delivery and performance of this Security Instrument and the obligation evidenced by this Security Instrument are within Grantor's
powers, have been duly authorized, have received all necessary governmental approval, will not violate any provision of law, or
order of court or governmental agency, and will not violate any agreement to which Grantor is a party or to which Grantor is or
any of Grantor’s property is subject.

 

C. Name and Place of Business.
Other than previously disclosed in writing to Lender, Grantor has not changed Grantor's name or principal place of business within
the last 10 years and has not used any other trade or fictitious name. Without Lender's prior written consent, Grantor does not
and will not use any other name and will preserve Grantor's existing name, trade names and franchises.

 

12. PROPERTY CONDITION, ALTERATIONS
AND INSPECTION. Grantor will keep the Property in good condition and make all repairs that are reasonably necessary. Grantor
will not commit or allow any waste, impairment, or deterioration of the Property. Grantor will keep the Property free of noxious
weeds and grasses. Grantor agrees that the nature of the occupancy and use will not substantially change without Lender's prior
written consent. Grantor will not permit any change in any license, restrictive covenant or easement without Lender's prior written
consent. Grantor will notify Lender of all demands, proceedings, claims, and actions against Grantor, and of any loss or damage
to the Property.

 

No portion of the Property will be removed,
demolished or materially altered without Lender's prior written consent except that Grantor has the right to remove items of personal
property comprising a part of the Property that become worn or obsolete, provided that such personal property is replaced with
other personal property at least equal in value to the replaced personal property, free from any title retention device, security
agreement or other encumbrance. Such replacement of personal property will be deemed subject to the security interest created by
this Security Instrument. Grantor will not partition or subdivide the Property without Lender's prior written consent.

 

Lender or Lender’s agents may, at
Lender's option, enter the Property at any reasonable time for the purpose of inspecting the Property. Lender will give Grantor
notice at the time of or before an inspection specifying a reasonable purpose for the inspection. Any inspection of the Property
will be entirely for Lender's benefit and Grantor will in no way rely on Lender's inspection.

 

13. AUTHORITY TO PERFORM. If Grantor
fails to perform any duty or any of the covenants contained in this Security Instrument, Lender may, without notice, perform or
cause them to be performed. Grantor appoints Lender as attorney in fact to sign Grantor's name or pay any amount necessary for
performance. Lender's right to perform for Grantor will not create an obligation to perform, and Lender's failure to perform will
not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument. If any construction
on the Property is discontinued or not carried on in a reasonable manner, Lender may take all steps necessary to protect Lender's
security interest in the Property, including completion of the construction.

 

14. ASSIGNMENT OF LEASES AND RENTS.
Grantor irrevocably assigns, grants, bargains, transfers, conveys to Lender as additional security all the right, title and interest
in the following (Property).

 

A. Existing or future
leases, subleases, licenses, guaranties and any other written or verbal agreements for the use and occupancy of the Property, including
but not limited to any extensions, renewals, modifications or replacements (Leases).

 

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B. Rents, issues and
profits, including but not limited to security deposits, minimum rents, percentage rents, additional rents, common area maintenance
charges, parking charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages following
default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, bonuses, accounts,
contract rights. general intangibles, and all rights and claims which Grantor may have that in any way pertain to or are on account
of the use or occupancy of the whole or any part of the Property (Rents).

 

In the event any item listed as Leases
or Rents is determined to be personal property, this Assignment will also be regarded as a security agreement. Grantor will promptly
provide Lender with copies of the Leases and will certify these eases are true and correct copies. The existing Leases will be
provided on execution of the Assignment, and all future Leases and any other information with respect to these Leases will be provided
immediately after they are executed. Grantor may collect, receive, enjoy and use the Rents so long as Grantor is not in default.
Grantor will not collect in advance any Rents due in future lease periods, unless Grantor first obtains Lender’s written
consent. Upon default, Grantor will receive any Rents in trust for ender and Grantor will not commingle the Rents with any other
funds. When Lender so directs, Grantor will endorse and deliver any payments of Rents from the Property to Lender. Amounts collected
will be applied at ender's discretion to the Secured Debts, the costs of managing, protecting and preserving the Property, and
other necessary expenses. Grantor agrees that this Security Instrument is immediately effective between Grantor and Lender and
effective as to third parties on the recording of this Assignment. As long as this Assignment is in effect, Grantor warrants and
represents that no default exists under the Leases, and the parties subject to the Leases have not violated any appl cable law
on leases, licenses and landlords and tenants. Grantor, at its sole cost and expense, will keep, observe and perform, and require
all other parties to the Leases to comply with the Leases and any applicable law . If Grantor or any party to the Lease defaults
or fails to observe any applicable law, Grantor will promptly notify Lender. If Grantor neglects or refuses to enforce compliance
with the terms of the Leases, then Lender may, at Lender's option, enforce compliance. Grantor will not sublet, modify, extend,
cancel, or otherwise alter the Leases, or accept the surrender of the Property covered by the Leases (unless the Leases so require)
without Lender's consent. Grantor will not assign, compromise, subordinate or encumber the Leases and Rents without Lender's prior
written consent. Lender does not assume or become liable for the Property's maintenance, depreciation, or other losses or damages
when Lender acts to manage, protect or preserve the Property, except for losses and damages due to Lender's gross negligence or
intentional torts. Otherwise, Grantor will indemnify Lender and hold Lender harmless for all liability, loss or damage that Lender
may incur when Lender opts to exercise any of its remedies against any party obligated under the Leases.

 

15. DEFAULT. Granter will be in
default if any of the following occur:

 

A. Payments. Granter fails
to make a payment in full when due.

 

B. Insolvency or Bankruptcy.
The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the
assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement
of any proceeding under any present or future federal or state insolvency , bankruptcy , reorganization, composition or debtor
relief law by or against Grantor, Borrower, or any co-signer, endorser, surety or guarantor of this Security Instrument or any
other obligations Borrower has with Lender.

 

C. Business Termination.
Granter merges, dissolves, reorganizes, ends its business or existence, or a partner or majority owner dies or is declared legally
incompetent.

 

D. Failure to Perform.
Granter fails to perform any condition or to keep any promise or covenant of this Security Instrument.

 

E. Other Documents.
A default occurs under the terms of any other document relating to the Secured Debts.

 

F. Other Agreements.
Grantor is in default on any other debt or agreement Grantor has with Lender.

 

G. Misrepresentation.
Granter makes any verbal or written statement or provides any financial information that is untrue, inaccurate, or conceals a material
fact at the time it is made or provided.

 

H. Judgment. Granter
fails to satisfy or appeal any judgment against Grantor.

 

I. Forfeiture. The
Property is used in a manner or for a purpose that threatens confiscation by a legal authority.

 

J. Name Change. Grantor
changes Grantor's name or assumes an additional name without notifying Lender before making such a change.

 

K. Property Transfer.
Grantor transfers all or a substantial part of Grantor's money or property. This condition of default, as it relates to the transfer
of the Property, is subject to the restrictions contained in the DUE ON SALE section.

 

L. Property Value. Lender
determines in good faith that the value of the Property has declined or is impaired.

 

M. Material Change. Without
first notifying Lender, there is a material change in Grantor's business, including ownership, management, and financial conditions.

 

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N. Insecurity. Lender determines
in good faith that a material adverse change has occurred in Grantor's financial condition from the conditions set forth in Grantor's
most recent financial statement before the date of this Security Instrument or that the prospect for payment or performance of
the Secured Debts is impaired for any reason.

 

16. REMEDIES. On or after default,
Lender may use any and all remedies Lender has under state or federal law or in any document relating to the Secured Debts, including,
without limitation, the power to sell the Property. Any amounts advanced on Grantor's behalf will be immediately due and may be
added to the balance owing under the Secured Debts. Lender may make a claim for any and all insurance benefits or refunds that
may be available on Grantor's default.

 

Subject to any right to cure, required
time schedules or any other notice rights Grantor may have under federal and state law, Lender may make all or any part of the
amount owing by the terms of the Secured Debts immediately due and foreclose this Security Instrument in a manner provided by law
upon the occurrence of a default or anytime thereafter.

 

If there is a default, Lender will, in
addition to any other permitted remedy, at the request of the Lender, advertise and sell the Property as a whole or in separate
parcels at public auction to the highest bidder for cash. Lender will give notice of sale including the time, terms and place of
sale and a description of the Property to be sold as required by the applicable law in effect at the time of the proposed sale.

 

To the extent not prohibited by law, Trustee
will apply the proceeds of the Property's sale in the following order: to all fees, charges, costs and expenses of exercising the
power of sale and the sale; to Lender for all advances made for repairs, taxes, insurance, liens, assessments and prior encumbrances
and interest thereon; to the Secured Debts' principal and interest; and paying any surplus as required by law. Lender or its designee
may purchase the Property.

 

Upon any sale of the Property, Trustee
will make and deliver a special or limited warranty deed that conveys the property sold to the purchaser or purchasers. Under this
special or limited warranty deed, Trustee will covenant that Trustee has not caused or allowed a lien or an encumbrance to burden
the Property and that Trustee will specially warrant and defend the Property's title of the purchaser or purchasers at the sale
against all lawful claims and demand of all persons claiming by, through or under Trustee. The recitals in any deed of conveyance
will be prima facie evidence of the facts set forth therein.

 

All remedies are distinct, cumulative and
not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether or not expressly set forth. The acceptance
by Lender of any sum in payment or partial payment on the Secured Debts after the balance is due or is accelerated or after foreclosure
proceedings are filed will not constitute a waiver of Lender's right to require full and complete cure of any existing default.
By not exercising any remedy, Lender does not waive Lender's right to later consider the event a default if it continues or happens
again.

 

17. COLLECTION EXPENSES AND ATTORNEYS’
FEES. On or after Default, to the extent permitted by law, Grantor agrees to pay all expenses of collection, enforcement or
protection of Lender’s rights and remedies under this Security Instrument or any other document relating to the Secured Debts.
Grantor agrees to pay expenses for Lender to inspect and preserve the Property and for any recordation costs of releasing the Property
from this Security Instrument . Expenses include, but are not limited to, attorneys' fees, court costs, and other legal expenses.
If the Secured Debts are collected by or through an attorney after maturity, Grantor agrees to pay 15 percent of the principal
and interest owing as attorneys' fees. These expenses are due and payable immediately. If not paid immediately, these expenses
will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms
of the Secured Debts. In addition, to the extent permitted by the United States Bankruptcy Code, Grantor agrees to pay the reasonable
attorneys' fees incurred by Lender to protect Lender's rights and interests in connection with any bankruptcy proceedings initiated
by or against Grantor.

 

18. ENVIRONMENTAL LAWS AND HAZARDOUS
SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA , 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances,
court orders , attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or
a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or contaminant
which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or
environment . The term includes, without limitation, any substances defined as "hazardous material," "toxic substance,"
"hazardous waste," "hazardous substance," or "regulated substance" under any Environmental Law.

 

Grantor represents, warrants
and agrees that:

 

A. Except as previously
disclosed and acknowledged in writing to Lender, no Hazardous Substance has been, is, or will be located, transported, manufactured,
treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict
compliance with all applicable Environmental Law.

 

B. Except as previously
disclosed and acknowledged in writing to Lender, Granter has not and will not cause, contribute to, or permit the release of any
Hazardous Substance on the Property.

 

C. Grantor will immediately
notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates
or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In
such an event, Grantor will take all necessary remedial action in accordance with Environmental Law.

 

    	5

    	 

    

 

D. Except as previously
disclosed and acknowledged in writing to Lender, Grantor has no knowledge of or reason to believe there is any pending or threatened
investigation, claim, or proceeding of any kind relating to ( 11 any Hazardous Substance located on, under or about the Property;
or (2) any violation by Granter or any tenant of any Environmental Law. Grantor will immediately notify Lender in writing as soon
as Granter has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event,
Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any
documents relating to such proceedings.

 

E. Except as previously
disclosed and acknowledged in writing to Lender, Grantor and every tenant have been, are and will remain in full compliance with
any applicable Environmental Law.

 

F. Except as previously
disclosed and acknowledged in writing to Lender, there are no underground storage tanks, private dumps or open wells located on
or under the Property and no such tank, dump or well will be added unless Lender first consents in writing.

 

G. Grantor will regularly
inspect the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or approvals
required by any applicable Environmental Law are obtained and complied with.

 

H. Granter will permit,
or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable
time to determine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence,
location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether
or not Granter and any tenant are in compliance with applicable Environmental Law.

 

I. Upon Lender's request
and at any time, Grantor agrees, at Grantor's expense, to engage a qualified environmental engineer to prepare an environmental
audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform
such audit is subject to Lender's approval.

 

J. Lender has the right,
but not the obligation, to perform any of Grantor's obligations under this section at Grantor's expense.

 

K. As a consequence of any
breach of any representation, warranty or promise made in this section,{ 1) Grantor will indemnify and hold Lender and Lender's
successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation
costs, penalties and expenses , including without limitation all costs of litigation and attorneys' fees, which Lender and Lender's
successors or assigns may sustain; and (21 at Lender's discretion, Lender may release this Security Instrument and in return Grantor
will provide Lender with collateral of at least equal value to the Property without prejudice to any of Lender's rights under this
Security Instrument.

 

L. Notwithstanding any of
the language contained in this Security Instrument to the contrary, the terms of this section will survive any foreclosure or satisfaction
of this Security Instrument regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property.
Any claims and defenses to the contrary are hereby waived.

 

19. CONDEMNATION. Grantor will give
Lender prompt notice of any pending or threatened action by private or public entities to purchase or take any or all of the Property
through condemnation, eminent domain, or any other means. Grantor authorizes Lender to intervene in Grantor's name in any of the
above described actions or claims.

 

Grantor assigns to Lender the proceeds
of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds
will be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject
to the terms of any prior mortgage, deed of trust, deed to secure debt, security agreement or other lien document.

 

20. INSURANCE. Grantor agrees to
keep the Property insured against the risks reasonably associated with the Property. Grantor will maintain this insurance in the
amounts Lender requires. This insurance will last until the Property is released from this Security Instrument. What Lender requires
pursuant to the preceding two sentences can change during the term of the Secured Debts. Grantor may choose the insurance company,
subject to Lender's approval, which will not be unreasonably withheld.

 

All insurance policies and renewals will
include a standard "mortgage clause" and, where applicable, "loss payee clause." If required by Lender, Grantor
agrees to maintain comprehensive general liability insurance and rental loss or business interruption insurance in amounts and
under policies acceptable to Lender. The comprehensive general liability insurance must name Lender as an additional insured. The
rental loss or business interruption insurance must be in an amount equal to at least coverage of one year's debt service, and
required escrow account deposits (if agreed to separately in writing!.

 

Granter will give Lender and the insurance
company immediate notice of any loss. All insurance proceeds will be applied to restoration or repair of the Property or to the
Secured Debts, at Lender's option. If Lender acquires the Property in damaged condition, Grantor's rights to any insurance policies
and proceeds will pass to Lender to the extent of the Secured Debts.

 

    	6

    	 

    

 

Grantor will immediately notify Lender
of cancellation or termination of insurance . If Grantor fails to keep the Property insured, Lender may obtain insurance to protect
Lender's interest in the Property and Grantor will pay for the insurance on Lender's demand. Lender may demand that Grantor pay
for the insurance all at once, or Lender may add the insurance premiums to the balance of the Secured Debts and charge interest
on it at the rate that applies to the Secured Debts. This insurance may include cover ages not originally required of Grantor,
may be written by a company other than one Granter would choose, and may be written at a higher rate than Granter could obtain
if Grantor purchased the insurance. Granter acknowledges and agrees that Lender or one of Lender's affiliates may receive commissions
on the purchase of this insurance.

 

21. ESCROW FOR TAXES AND INSURANCE.
Grantor will not be required to pay to Lender funds for taxes and insurance in escrow.

 

22. CO-SIGNERS. If Granter signs
this Security Instrument but is not otherwise obligated to pay the Secured Debts, Granter does so only to convey Grantor's interest
in the Property to secure payment of the Secured Debts and Granter does not agree by signing this Security Instrument to be personally
liable on the Secured Debts. If this Security Instrument secures a guaranty between Lender and Grantor, Grantor agrees to waive
any rights that may prevent Lender from bringing any action or claim against Grantor or any party indebted under the obligation.

 

23. WAIVERS. Except to the extent
prohibited by law, Grantor waives all homestead and other exemption rights relating to the Property.

 

24. CONSTRUCTION LOAN. This Security
Instrument secures an obligation incurred for the construction of an improvement on the Property.

 

25. OTHER TERMS. The following are
applicable to this Security Instrument:

 

A. Additional Terms. "ON
DEMAND and may fall due within two years from the date of the note".

 

26. APPLICABLE LAW. This Security
Instrument is governed by the laws of Georgia, the United States of America, and to the extent required, by the laws of the jurisdiction
where the Property is located, except to the extent such state laws are preempted by federal law.

 

27. JOINT AND INDIVIDUAL LIABILITY AND
SUCCESSORS. Each Grantor's obligations under this Security Instrument are independent of the obligations of any other Grantor.
Lender may sue each Grantor individually or together with any other Granter. Lender may release any part of the Property and Granter
will still be obligated under this Security Instrument for the remaining Property. If this Security Instrument secures a guaranty
between Lender and Grantor, Grantor agrees to waive any rights that may prevent Lender from bringing any action or claim against
Granter or any party indebted under the obligation. These rights may include, but are not limited to, any anti-deficiency or one-action
laws. Granter agrees that Lender and any party to this Security Instrument may extend, modify or make any change in the terms of
this Security Instrument or any evidence of debt without Grantor's consent. Such a change will not release Granter from the terms
of this Security Instrument. The duties and benefits of this Security Instrument will bind and benefit the successors and assigns
of Lender and Grantor.

 

28. AMENDMENT, INTEGRATION AND SEVERABILITY.
This Security Instrument may not be amended or modified by oral agreement. No amendment or modification of this Security Instrument
is effective unless made in writing and executed by Grantor and Lender. This Security Instrument and any other documents relating
to the Secured Debts are the complete and final expression of the agreement. If any provision of this Security Instrument is unenforceable,
then the unenforceable provision will be severed and the remaining provisions will still be enforceable.

 

29. INTERPRETATION. Whenever used,
the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not
to be used to interpret or define the terms of this Security Instrument.

 

30. NOTICE, FINANCIAL REPORTS, ADDITIONAL
DOCUMENTS AND RECORDING TAXES. Unless otherwise required by law, any notice will be given by delivering it or mailing it by
first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated
in writing. Notice to one Grantor will be deemed to be notice to all Grantors. Grantor will inform Lender in writing of any change
in Grantor's name, address or other application information. Grantor will provide Lender any financial statements or information
Lender requests. All financial statements and information Grantor gives Lender will be correct and complete. Grantor agrees to
pay all expenses, charges and taxes in connection with the preparation and recording of this Security Instrument. Grantor agrees
to sign, deliver, and file any additional documents or certifications that Lender may consider necessary to perfect, continue,
and preserve Grantor's obligations under this Security Instrument and to confirm Lender's lien status on any Property, and Grantor
agrees to pay all expenses, charges and taxes in connection with the preparation and recording thereof. Time is of the essence.

 

    	7

    	 

    

 

SIGNATURES. By signing under seal,
Grantor agrees to the terms and covenants contained in this Security Instrument. Grantor also acknowledges receipt of a copy of
this Security Instrument.

 

GRANTOR:

 

Southeastern
Land Developers, LLC

 

	 	
        By:
        /s/ Charles R. Rich                                               

        Charles
        R. Rich, Manager of Southeastern Land Developers, LLC
	(Seal) 

 

 

Signed, Sealed
and delivered in the presence

of us, the day
and year first above written.

 

_________________________________

Unofficial Witness

 

_________________________________

Notary Public,
Greene County, Georgia

 

My commission
expires: ______________________________

 

 

 

CERTIFICATE
OF RESIDENCE

 

I hereby
certify, that the precise address of the mortgagee, Shepherd’s Finance, LLC, herein is as follows:

 

12627
San Jose Boulevard, Suite 203, Jacksonville, FL 32223

 

 

___________________________________

Attorney
or Agent for Mortgagee

 

    	8

    	 

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

TRACT ONE:

All that certain lot or parcel of land lying and being
in the 163rd District, G.M., of Greene County, Georgia, within Harbor Club on Lake Oconee and being designated as Lot No. 2055
of Phase One, Unit Two, Section Four, containing 1.22 acres, more or less, as is more particularly described on that certain plat
of survey by George A. Butcher, RLS #1903, dated September 27, 1989, recorded in Plat Book 15, Page 213, Greene County,
Georgia records.

 

Deed Reference: Deed Book 1083, Page 165, Clerk's
Office, Greene County Superior Court. Tax Map & Parcel: 074A000210

 

TRACT TWO:

All that certain lot or parcel of land lying and being
in the 163rd District, G.M., of Greene County, Georgia, being Lot No. 3005 of Phase Two, Unit Three of Harbor Club on Lake Oconee,
as shown and designated on that certain plat of survey prepared by East Metro Surveyors, Inc. (George A. Butcher, R.L.S. No. 1903),
dated January 17, 1990, recorded in Plat Book 15, Page 235, Clerk’s Office, Greene County Superior Court, said plat and the
record thereof is by reference incorporated herein.

 

Deed Reference: Deed Book 171, Page 198, Clerk's Office,
Greene County Superior Court.

Tax Map & Parcel: 055A000260

 

TRACT THREE:

All that lot or parcel of land, lying and being in
the 163rd District, G.M. of Greene County, Georgia, and being known and designated as Lot 5, Phase II, Section A, of Harbor Club
Subdivision containing 0.99 acre, more or less, as shown on a plat of survey by John A. McGill, Jr. (The Oconee Company), Georgia
R.L.S. No. 2858, filed for record July 24, 2003, in Plat Cabinet 1, Slide 515, Pages 6-8, Clerk's Office, Greene County Superior
Court, as revised by plat of survey by John A. McGill, Jr. (The Oconee Company), Georgia R.L.S. No. 2858, filed for record July
22, 2004, in Plat Cabinet 1, Slide 539, Pages 4-7, said Clerk’s Office, which plats and the record thereof are by reference
incorporated herein.

 

Tax Map & Parcel: 075F000050

 

    	9

    	 

    

 

DATE OF SECURITY DEED: 06/20/2014

 

WAIVER OF BORROWER'S RIGHTS

 

By execution of this
paragraph, Grantor expressly: (1) Acknowledges the right to accelerate the debt and the Power of Attorney given hereinto
Lender to sell the premises by nonjudicial foreclosure upon default by Granter without any judicial hearing and without
any notice other than such notice as is required to be given under the provisions hereof; (2) Waives and any and all rights which
Granter may have under the Fifth and Fourteenth Amendments to the Constitution for the United States, the various provision of
the Constitution for the several states, or by reason of any other applicable law, to notice and to judicial hearing prior to the
exercise by Lender of any right or remedy herein provided to Lender, except such notice as is specifically required to be provided
hereof; (3) Acknowledges that Granter has read this Deed and specifically this paragraph and any and all questions regarding the
legal effect of said deed and its provisions have been explained fully to grantor and granter has been afforded an opportunity
to consult with Counsel to Grantor's choice prior to executing this Deed; (4) Acknowledges that all waivers of the aforesaid rights
of Granter have been made knowingly, intentionally and willingly by Granter as part of a bargained for loan transaction; and (5)
Agrees that the provisions hereof are incorporated into and made a part of the Security Deed/Deed to Secure Debt.

 

READ AND AGREED BY GRANTOR:

 

	 	 	Southeastern Land Developers, LLC
	Signed, sealed and delivered	 	 
	in the presence of:	 	 
	 	 	By: /s/ Charles R. Rich
	 	 	Charles R. Rich, as its Manager
	 	 	 
	Witness	 	 
	 	 	 
	 	 	 
	Notary Public	 	 
	 	 	 

My commission expires: _______________________

 

CLOSING ATTORNEY'S AFFIDAVIT

 

Before the undersigned
attesting officer personally appeared the undersigned closing attorney, who having been first duly sworn according to law states
under oath as follows:

 

In closing the above
loan, but prior to the execution of the Deed to Secure Debt and "Waiver of Borrower's Rights" by the Borrower(s), I reviewed
with and explained to the Borrower(s) the terms and provisions of the Deed to Secure Debt and particularly the provisions thereof
authorizing the Lender to sell the secured property by a nonjudicial foreclosure under a power of sale, together with the "Waiver
of Borrower's Rights" and informed the Borrower(s) of Borrower's rights under the Constitution of the State of Georgia and
the Constitution of the United States to notice and a judicial hearing prior to such foreclosure in the absence of a knowing, intentional
and willing contractual waiver by Borrower(s) of Borrower's rights. After said review with and explanation to Borrower(s), Borrower(s)
executed the Deed to Secure Debt and "Waiver of Borrower's Rights."

 

Based on said review
with and explanation to the Borrower(s), it is my opinion that Borrower(s) knowingly, intentionally and willingly executed the
waiver of Borrower's constitutional rights to notice and judicial hearing prior to any such nonjudicial foreclosure.

 

	 	 	Lambert, Reitman and Abney, LLC
	Sworn to and subscribed before me on	 	 
	The date set forth above.	 	 
	 	 	By: 
	 	 	Closing Attorney
	 	 	 
	Notary Public                                (Seal)	 	 
	 	 	 
	 	 	 

My commission expires: _______________________

 

 

    	10

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