Document:

EXHIBIT 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into as of June 24, 2014, between NeuroMetrix, Inc., a Delaware
corporation (the “Company”), and each of the several purchasers signatory hereto (each such purchaser, a “Purchaser”
and, collectively, the “Purchasers”).

 

This Agreement is made
pursuant to the Securities Purchase Agreement, dated as of the date hereof, between the Company and each Purchaser (the “Purchase
Agreement”).

 

The Company and each
Purchaser hereby agrees as follows:

 

1.                     Definitions.

 

Capitalized terms
used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Advice” shall
have the meaning set forth in Section 6(d).

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 45th calendar
day following the date hereof (or, in the event of a “full review” by the Commission, the 75th calendar
day following the date hereof) and with respect to any additional Registration Statements which may be required pursuant to Section
2(c) or Section 3(c), the 45th calendar day following the date on which an additional Registration Statement is required
to be filed hereunder (or, in the event of a “full review” by the Commission, the 75th calendar day following
the date such additional Registration Statement is required to be filed hereunder); provided, however, that in the
event the Company is notified by the Commission that one or more of the above Registration Statements will not be reviewed or is
no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading
Day following the date on which the Company is so notified if such date precedes the dates otherwise required above, provided,
further, if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding
Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Event”
shall have the meaning set forth in Section 2(d).

 

“Event
Date” shall have the meaning set forth in Section 2(d).

 

    	 

    	 

    

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, the 20th calendar day
following the date hereof and, with respect to any additional Registration Statements which may be required pursuant to Section
2(c) or Section 3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration
Statement related to the Registrable Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

“Preferred
Stock” means the “Series A-4 Preferred Stock”.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus.

 

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“Registrable
Securities” means, as of any date of determination, (a) all of the shares of Common Stock then issued and issuable upon
conversion in full of the Preferred Stock (assuming on such date the shares of Preferred Stock are converted in full without regard
to any conversion limitations therein), (b) all Warrant Shares then issued and issuable upon exercise of the Warrants (assuming
on such date the Warrants are exercised in full without regard to any exercise limitations therein) and (c) any securities issued
or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing;
provided, however, that any such Registrable Securities shall cease to be Registrable Securities (and the Company
shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto)
for so long as (a) a Registration Statement with respect to the sale of such Registrable Securities is declared effective by the
Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with such
effective Registration Statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c)
such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information
pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer
Agent and the affected Holders (assuming that such securities and any securities issuable upon exercise, conversion or exchange
of which, or as a dividend upon which, such securities were issued or are issuable, were at no time held by any Affiliate of the
Company, and all Warrants are exercised by “cashless exercise” as provided in Section 2(c) of each of the Warrants),
as reasonably determined by the Company, upon the advice of counsel to the Company.

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional
registration statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements
to any such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

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2.                   Shelf
Registration.

 

(a)          On
or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale
of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to be
made on a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form S-3 (except if the
Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall
be on another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain (unless otherwise
directed by at least a majority in interest of the Holders) substantially the “Plan of Distribution” attached
hereto as Annex A. Subject to the terms of this Agreement, the Company shall use its reasonable best efforts to cause a
Registration Statement filed under this Agreement (including, without limitation, under Section 3(c)) to be declared effective
under the Securities Act as promptly as reasonably practical after the filing thereof, but in any event no later than the applicable
Effectiveness Date, and shall use its reasonable best efforts to keep such Registration Statement continuously effective under
the Securities Act until all Registrable Securities covered by such Registration Statement (i) have been sold, thereunder or pursuant
to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement
for the Company to be in compliance with the current public information requirement under Rule 144, as determined by the counsel
to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected
Holders (the “Effectiveness Period”). The Company shall telephonically request effectiveness of a Registration
Statement as of 5:00 p.m. Eastern Time on a Trading Day. The Company shall immediately notify the Holders via facsimile or by e-mail
of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness
with the Commission, which shall be the date requested for effectiveness of such Registration Statement. The Company shall, by
9:30 a.m. Eastern Time on the Trading Day after the effective date of such Registration Statement, file a final Prospectus with
the Commission as required by Rule 424. Failure to so notify the Holder within one (1) Trading Day of such notification of effectiveness
or failure to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d).

 

(b)          Notwithstanding
the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the Registrable Securities
cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement,
the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to file amendments
to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities permitted
to be registered by the Commission, on Form S-3 or such other form available to register for resale the Registrable Securities
as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on Form S-3 or other appropriate form,
and subject to the provisions of Section 2(d) with respect to the payment of liquidated damages; provided, however,
that prior to filing such amendment, the Company shall be obligated to use diligent efforts to advocate with the Commission for
the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance
and Disclosure Interpretation 612.09.

 

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(c)          Notwithstanding
any other provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d), if the Commission
or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular
Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to advocate with the
Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed in writing by
a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement
will be reduced as follows: 

 

a.    First,
the Company shall reduce or eliminate any securities to be included by any Person other than a Holder;

 

b.    Second,
the Company shall reduce Registrable Securities represented by Warrant Shares (applied, in the case that some Warrant Shares may
be registered, to the Holders on a pro rata basis based on the total number of unregistered Warrant Shares held by such Holders);
and 

 

c.    Third,
the Company shall reduce Registrable Securities represented by Shares (applied, in the case that some Conversion Shares may be
registered, to the Holders on a pro rata basis based on the total number of unregistered Conversion Shares held by such Holders).

 

In
the event of a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along
with the calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement
in accordance with the foregoing, the Company will use its reasonable best efforts to file with the Commission, as promptly as
allowed by Commission or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration
statements on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered
for resale on the Initial Registration Statement, as amended.

 

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(d)          If:
(i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration
Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) herein, the
Company shall be deemed to have not satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request
for acceleration of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities
Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission
that such Registration Statement will not be “reviewed” or will not be subject to further review, or (iii) prior to
the effective date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing
to comments made by the Commission in respect of such Registration Statement within ten (10) calendar days after the receipt of
comments by or notice from the Commission that such amendment is required in order for such Registration Statement to be declared
effective, or (iv) a Registration Statement registering for resale all of the Registrable Securities is not declared effective
by the Commission by the Effectiveness Date of the Initial Registration Statement, or (v) after the effective date of a Registration
Statement, such Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities
included in such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus therein to resell
such Registrable Securities, for more than ten (10) consecutive calendar days or more than an aggregate of fifteen (15) calendar
days (which need not be consecutive calendar days) during any 12-month period (any such failure or breach being referred to as
an “Event”, and for purposes of clauses (i) and (iv), the date on which such Event occurs, and for purpose of
clause (ii) the date on which such five (5) Trading Day period is exceeded, and for purpose of clause (iii) the date which such
ten (10) calendar day period is exceeded, and for purpose of clause (v) the date on which such ten (10) or fifteen (15) calendar
day period, as applicable, is exceeded being referred to as “Event Date”), then, in addition to any other rights
the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event
Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay
to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to 2.0% of the aggregate purchase price
paid by such Holder pursuant to the Purchase Agreement. The parties agree that the maximum aggregate liquidated damages payable
to a Holder under this Agreement shall be 12% of the aggregate Subscription Amount paid by such Holder pursuant to the Purchase
Agreement. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days after
the date payable, the Company will pay interest thereon at a rate of 12% per annum (or such lesser maximum amount that is permitted
to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts,
plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a
daily pro rata basis for any portion of a month prior to the cure of an Event.

 

(e)          If
Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register
the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration
Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared
effective by the Commission.

 

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3.            Registration Procedures.

 

In connection with
the Company’s registration obligations hereunder, the Company shall:

 

(a)          Not
less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated
or deemed to be incorporated therein by reference, but not including (i) any Exchange Act filing or (ii) any supplement or post-effective
amendment to a registration statement that is not related to such Holder’s Registrable Securities), the Company shall (i)
furnish to each Holder copies of all such documents proposed to be filed, which documents (other than those incorporated or deemed
to be incorporated by reference) will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel
and independent registered public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of
respective counsel to each Holder, to conduct a reasonable investigation within the meaning of the Securities Act. Notwithstanding
the above, the Company shall not be obligated to provide the Holders advance copies of any universal shelf registration statement
registering securities in addition to those required hereunder, or any Prospectus prepared thereto. The Company shall not file
a Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of
the Registrable Securities shall reasonably object in good faith, provided that, the Company is notified of such objection in writing
no later than five (5) Trading Days after the Holders have been so furnished copies of a Registration Statement or one (1) Trading
Day after the Holders have been so furnished copies of any related Prospectus or amendments or supplements thereto. Each Holder
agrees to furnish to the Company a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling
Stockholder Questionnaire”) on a date that is not less than two (2) Trading Days prior to the Filing Date or by the end
of the fourth (4th) Trading Day following the date on which such Holder receives draft materials in accordance with
this Section.

 

(b)          (i)
Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective (subject to
any requirement that a post-effective amendment be declared effective by the Commission) as to the applicable Registrable Securities
for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register
for resale under the Securities Act all of the Registrable Securities subject to any SEC Guidance that sets forth a limitation
on the number of Registrable Securities permitted to be registered on a particular Registration Statement, (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as
so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments
received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly as reasonably
possible to the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement
(provided that, the Company shall excise any information contained therein which would constitute material non-public information
as to any Holder which has not executed a confidentiality agreement with respect thereto with the Company regarding the Company
or any of its Subsidiaries), and (iv) comply in all material respects with the applicable provisions of the Securities Act and
the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable
period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof set
forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

 

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(c)          If
during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of shares of Common
Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case
prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the
number of such Registrable Securities.

 

(d)          Notify
the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied
by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible
(and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person)
confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement
or post-effective amendment to a Registration Statement is proposed to be filed (but not including (i) any Exchange Act filing
or (ii) any supplement or post-effective amendment to a registration statement that is not related to such Holder’s Registrable
Securities), (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement
and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to a Registration Statement
or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission or any other federal
or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information,
(iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness
of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose,
(iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification
of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement
ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration
Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of
the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be material
and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability
of a Registration Statement or Prospectus, provided, however, in no event shall any such notice contain any information
which would constitute material, non-public information regarding the Company or any of its Subsidiaries.

 

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(e)          Use
its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending
the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of
any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(f)          Furnish
to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent
requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission; provided, that any such item which is available
on the EDGAR system (or successor thereto) need not be furnished in physical form.

 

(g)          Subject
to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto
by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus
and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

 

(h)          
The Company shall cooperate with any broker-dealer through which a Holder proposes to resell its Registrable Securities in effecting
a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110, as requested by any such Holder, and the Company
shall pay the filing fee required by such filing within two (2) Business Days of request therefor.

 

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(i)          Prior
to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that, the Company shall not
be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any
material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such
jurisdiction.

 

(j)          If
requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free,
to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be
in such denominations and registered in such names as any such Holder may request.

 

(k)          Upon
the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking into
account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and
file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. If
the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any
Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus.
The Company will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.
The Company shall be entitled to exercise its right under this Section 3(k) to suspend the availability of a Registration Statement
and Prospectus, subject to the payment of partial liquidated damages otherwise required pursuant to Section 2(d), for a period
not to exceed 60 calendar days (which need not be consecutive days) in any 12-month period.

 

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(l)          Comply
with all applicable rules and regulations of the Commission in connection with obtaining and maintaining the effectiveness of any
Registration Statement required to be filed and maintained with the Commission hereunder.

 

(m)          The
Company shall use its reasonable best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto) for the
registration of the resale of Registrable Securities.

 

(n)          The
Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock
beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration
of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s
request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise
occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

4.                     Registration
Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall be borne
by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred
to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made
with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common Stock is then
listed for trading, (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in
writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications
or exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses of printing certificates
for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company,
(v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the
Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions
contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing
of the Registrable Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for
any broker or similar commissions of any Holder or, except to the extent provided for in the Transaction Documents, any legal fees
or other costs of the Holders.

 

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5.                   Indemnification.

 

(a)          Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder,
the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal
as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees (and
any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and
any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or
any other title) of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all
losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material
fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light
of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection with the performance
of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions
are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein,
or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such
Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this
purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by such Holder
of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus
is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated
in Section 6(d), but only if and to the extent that following the receipt of the Advice the misstatement or omission giving rise
to such Loss would have been corrected. The Company shall notify the Holders promptly of the institution, threat or assertion of
any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person
and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with Section 6(h).

 

    	12

    	 

    

 

(b)          Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: (x) such Holder’s
failure to comply with any applicable prospectus delivery requirements of the Securities Act through no fault of the Company or
(y) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any
amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or
supplement thereto, in light of the circumstances under which they were made) not misleading (i) to the extent, but only to the
extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company
expressly for inclusion in such Registration Statement or such Prospectus or (ii) to the extent, but only to the extent, that such
information relates to such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in a Registration Statement (it being understood that the Holder has approved
Annex A hereto for this purpose), such Prospectus or in any amendment or supplement thereto or (iii) in the case of an occurrence
of an event of the type specified in Section 3(d)(iii)-(vi), to the extent, but only to the extent, related to the use by such
Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of
the Advice contemplated in Section 6(d), but only if and to the extent that following the receipt of the Advice the misstatement
or omission giving rise to such Loss would have been corrected. In no event shall the liability of any selling Holder under this
Section 5(b) be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable
Securities giving rise to such indemnification obligation.

 

(c)          Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses
incurred in connection with defense thereof; provided, that, the failure of any Indemnified Party to give such notice shall not
relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that
it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have materially and adversely prejudiced the Indemnifying Party.

 

    	13

    	 

    

 

An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party
has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense
of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named
parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party,
and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying
Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no more than one separate
counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any
such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect
of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

 

Subject to
the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses
to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with
this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying
Party; provided, that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and
expenses applicable to such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction
(which determination is not subject to appeal or further review) not to be entitled to indemnification hereunder.

 

    	14

    	 

    

 

(d)          Contribution.
If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified
Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified
Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement
or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations
set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for
in this Section was available to such party in accordance with its terms.

 

The parties
hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute
pursuant to this Section 5(d), in the aggregate, any amount in excess of the amount by which the net proceeds actually received
by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

 

The indemnity
and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to
the Indemnified Parties.

 

6.                   Miscellaneous.

 

(a)          Remedies.
In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder
or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Company
and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

    	15

    	 

    

 

(b)          No
Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Except as set forth on Schedule 6(b)
attached hereto, neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto)
may include securities of the Company in any Registration Statements other than the Registrable Securities. The Company shall not
file any other registration statements until all Registrable Securities are registered pursuant to a Registration Statement that
is declared effective by the Commission, provided that this Section 6(b) shall not prohibit the Company from filing supplements
or amendments to registration statements filed prior to the date of this Agreement or from filing any registration statements on
Form S-8.

 

(c)          Compliance.
Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to a Registration
Statement.

 

(d)          Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company
will use its reasonable best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The
Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable
Securities hereunder shall be subject to the provisions of Section 2(d).

 

(e)          Piggy-Back
Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering all
of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with the Company’s stock option or other employee benefit plans, then the Company shall deliver to each Holder a written
notice of such determination and, if within fifteen days after the date of the delivery of such notice, any such Holder shall so
request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such
Holder requests to be registered; provided, however, that the Company shall not be required to register any Registrable
Securities pursuant to this Section 6(e) that are eligible for resale pursuant to Rule 144 (without volume restrictions or current
public information requirements) promulgated by the Commission pursuant to the Securities Act or that are the subject of a then
effective Registration Statement.

 

    	16

    	 

    

 

(f)          Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed
by the Company and the Holders of a majority or more of the then outstanding Registrable Securities (for purposes of clarification,
this includes any Registrable Securities issuable upon exercise or conversion of any Security). If a Registration Statement does
not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence,
then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each
Holder shall have the right to designate which of its Registrable Securities shall be omitted from such Registration Statement.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively
to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders may be given
only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however,
that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of
the first sentence of this Section 6(f). No consideration shall be offered or paid to any Person to amend or consent to a waiver
or modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to this
Agreement.

 

(g)          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

 

(h)          Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder may
assign their respective rights hereunder in the manner and to the Persons as permitted under Section 5.7 of the Purchase Agreement.

 

(i)          No
Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the
Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. Except as set forth on Schedule 6(i), neither the Company nor any of its Subsidiaries has previously entered into
any agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied
in full.

 

(j)          Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

    	17

    	 

    

 

(k)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

 

(l)          Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(m)          Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

(n)          Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit
or affect any of the provisions hereof.

 

(o)          Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the
obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations
of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no
action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association,
a joint venture or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert
or as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters,
and the Company acknowledges that the Holders are not acting in concert or as a group, and the Company shall not asset any such
claim, with respect to such obligations or transactions. Each Holder shall be entitled to protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as
an additional party in any proceeding for such purpose. The use of a single agreement with respect to the obligations of the Company
contained was solely in the control of the Company, not the action or decision of any Holder, and was done solely for the convenience
of the Company and not because it was required or requested to do so by any Holder. It is expressly understood and agreed that
each provision contained in this Agreement is between the Company and a Holder, solely, and not between the Company and the Holders
collectively and not between and among Holders.

 

    	18

    	 

    

 

********************

 

(Signature
Pages Follow)

 

    	19

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	NeuroMetrix, Inc.
	 	 	 	 
	 	By:	 	/s/ Thomas T. Higgins	 
	 	 	Name:	Thomas T. Higgins
	 	 	Title:	Senior Vice President, Chief Financial Officer  and Treasurer

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    	20

    	 

    

 

[SIGNATURE
PAGE OF HOLDERS TO NURO RRA]

 

Name of Holder: Sabby Volatility Warrant Master Fund, Ltd.

 

	Signature of Authorized Signatory of Holder:	        /s/ Robert Grundstein	 

 

Name of Authorized Signatory: Robert Grundstein

 

Title of Authorized Signatory: COO of Holder’s Investment
Manager

 

[SIGNATURE PAGES CONTINUE]

 

    	21

    	 

    

 

[SIGNATURE
PAGE OF HOLDERS TO NURO RRA]

 

Name of Holder: Sabby Healthcare Volatility Warrant Master
Fund, Ltd.

 

	Signature of Authorized Signatory of Holder:	       /s/ Robert Grundstein	 

 

Name of Authorized Signatory: Robert Grundstein

 

Title of Authorized Signatory: COO of Holder’s Investment
Manager

 

 

[SIGNATURE PAGES CONTINUE]

 

    	22

    	 

    

 

Annex A

 

Plan of Distribution

 

Each Selling Stockholder
(the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their securities covered hereby on the Nasdaq Stock Market or any other stock exchange,
market or trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated
prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		·	block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion
of the block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	privately negotiated transactions;

 

		·	settlement of short sales;

 

		·	in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities
at a stipulated price per security;

 

		·	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

		·	a combination of any such methods of sale; or

 

		·	any other method permitted pursuant to applicable law.

 

The Selling Stockholders
may also sell securities under Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”),
if available, rather than under this prospectus.

 

Broker-dealers engaged
by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction
not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction
a markup or markdown in compliance with FINRA IM-2440.

 

    	 

    	 

    

 

In connection with
the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions
they assume. The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions,
or loan or pledge the securities to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter
into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities
which require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which
securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended
to reflect such transaction).

 

The Selling Stockholders
and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within
the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the securities.

 

The Company is required
to pay certain fees and expenses incurred by the Company incident to the registration of the securities. The Company has agreed
to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the
Securities Act.

 

Because Selling Stockholders
may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject to the prospectus
delivery requirements of the Securities Act including Rule 172 thereunder. In addition, any securities covered by this prospectus
which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus.
The Selling Stockholders have advised us that there is no underwriter or coordinating broker acting in connection with the proposed
sale of the resale securities by the Selling Stockholders.

 

We agreed to keep this
prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without
registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for
the Company to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of
similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or
any other rule of similar effect. The resale securities will be sold only through registered or licensed brokers or dealers if
required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be
sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

 

    	2

    	 

    

 

Under applicable rules
and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation
M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and
sales of the common stock by the Selling Stockholders or any other person. We will make copies of this prospectus available to
the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior
to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

    	3

    	 

    

 

Annex B

 

NeuroMetrix,
Inc.

 

Selling Stockholder Notice and Questionnaire

 

The undersigned beneficial
owner of common stock (the “Registrable Securities”) of NeuroMetrix, Inc., a Delaware corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with
the terms of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document
is annexed. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.
All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities
owned by it in the Registration Statement.

 

    	 

    	 

    

 

The undersigned hereby provides the following
information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

	1.	Name.	 
	 	 	 
	 	(a)	Full Legal Name of Selling Stockholder
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by this Questionnaire):
	 	 	 
	 	 	 

 

2. Address for Notices to Selling
Stockholder:

 

	 
	 
	 

	Telephone:	 

	Fax:	 

	Contact Person:	 

 

 3. Broker-Dealer Status:

 

	 	(a)	Are you a broker-dealer?
	 	 	 
	 	 	Yes  ̈              No  ̈
	 	 	 
	 	(b)	If “yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?
	 	 	 
	 	 	Yes  ̈              No  ̈
	 	 	 
	 	Note:	If “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

    	2

    	 

    

 

	 	(c)	Are you an affiliate of a broker-dealer?
	 	 	 
	 	 	Yes  ̈                No  ̈
	 	 	 
	 	(d)  	If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?
	 	 	 
	 	 	Yes  ̈                No  ̈
	 	 	 
	 	Note:	If “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

4. Beneficial Ownership of Securities
of the Company Owned by the Selling Stockholder.

 

	 	Except as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable pursuant to the Purchase Agreement.

 

	 	(a)	Type and Amount of other securities beneficially owned by the Selling Stockholder:
	 	 	 
	 	 	 
	 	 	 

 

    	3

    	 

    

 

5. Relationships with the Company:

 

	 	Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.
	 	 
	 	State any exceptions here:
	 	 
	 	 
	 	 

 

The undersigned agrees
to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through
5 and the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements
thereto. The undersigned understands that such information will be relied upon by the Company in
connection with the preparation or amendment of the Registration Statement and the related prospectus and any amendments or supplements
thereto.

 

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person
or by its duly authorized agent.

 

	Date:	 	 	Beneficial Owner:	 

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

PLEASE FAX A COPY (OR EMAIL A .PDF COPY)
OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

    	4Exhibit 10.1

 

CREDIT AGREEMENT

 

This Credit Agreement
(“Agreement”), dated as of the 20th day of June, 2014, by and between Southeastern Land Developers, LLC,
a Georgia limited liability company (“Borrower”) and Charles R. Rich, an individual residing in the State of Georgia
(“CRC”),

 

AND

 

SHEPHERD’S FINANCE,
LLC, a Delaware limited liability company (“Lender”).

 

WITNESSETH:

 

WHEREAS, Borrower has
requested Lender to make a revolving loan to Borrower in the principal amount not to exceed ONE MILLION FIFTY THOUSAND and 00/100
DOLLARS ($1,050,000.00) to use for certain purposes as set forth herein; and

 

WHEREAS, Lender is
willing to extend and assume such credit pursuant to the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants herein contained and intending to be legally bound hereby, the parties
hereto agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

1.01         
Certain Definitions. In addition to other words and terms defined elsewhere in this Agreement, the following words
and terms shall have the following meanings, respectively, unless the context otherwise clearly requires:

 

“Affiliate”
shall mean any Person which directly or indirectly controls, or is controlled by, or is under common control with, Borrower or
CRC, and for each individual who is an Affiliate within the meaning of the foregoing, any other individual related to such Affiliate
by consanguinity within the third degree or in a step or adoptive relationship within such third degree or related by affinity
with such Affiliate or any such individual and any Person directly or indirectly controlled by any of the foregoing. The term “control”
means the possession, directly or indirectly, or the power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities or partnership interests, by contract or otherwise.

 

“Agreement”
shall mean this Credit Agreement, as amended, modified or supplemented from time to time.

 

“ALR” shall
mean that certain assignment of leases and rents relating to the Real Property given by Borrower to Lender dated as of the date
hereof as required by Section 4.05 hereof, as the same may be supplemented or amended from time to time.

 

“Borrower”
shall mean Southeastern Land Developers, LLC, a Georgia limited liability company, whose address is 6350 Lake Oconee Parkway, Suite
102, PMB 103, Greensboro, GA 30642.

 

“Business Day”
shall mean any day other than a Saturday, Sunday, public holiday under the laws of the State of Florida or other day on which banking
institutions are authorized or obligated to close in Jacksonville, Florida.

 

 

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“Closing”
shall mean the satisfaction of all requirements set forth in this Agreement by the Borrower, including those set forth in Article
IV hereof.

 

“Closing Date”
shall mean the date of Closing.

 

“Code” shall
mean the Internal Revenue Code of 1986 as amended along with rules, regulations, decisions and other official interpretations in
connection therewith.

 

“Collateral”
shall mean collectively those items described in Section 2.14.

 

“Debt” shall
mean collectively (A) all Indebtedness, whether of principal, interest, fees, expenses or otherwise, of the Borrower to Lender,
whether now existing or hereafter incurred including, but not limited to, future loans and advances, if any, under this Agreement,
and the Loan Documents, as the same may from time to time be amended, together with any and all extensions, renewals, refinancings
or refundings thereof in whole or in part; (B) all other obligations for the repayment of borrowed money, whether of principal,
interest, fees, expenses or otherwise, of the Borrower to Lender, now existing or hereafter incurred, whether under letters or
advances of credit, lines of credit, other financing arrangements or otherwise (including, but not limited to, any obligations
arising as a result of any overdrafts), whether or not related to this Agreement or Note, whether or not contemplated by Lender
or the Borrower on the date hereof and whether direct, indirect, matured or contingent, joint or several, or otherwise, together
with any and all extensions, renewals, refinancings or refundings thereof in whole or in part; (C) all costs and expenses including,
without limitation, to the extent permitted by law, reasonable attorneys’ fees and legal expenses, incurred by Lender in
the collection of any of the Indebtedness referred to in clauses (A) or (B) above, and amounts due and owing to Lender under this
Agreement; and (D) any advances made by Lender for the maintenance, preservation, protection or enforcement of, or realization
upon, any property or assets now or hereafter made subject to a deed to secure debt, pledge, lien or security interest granted
pursuant hereto or pursuant to this Agreement, or the Loan Documents or pursuant to any agreement, instrument or note relating
to any of the Debt including, without limitation, advances for taxes, insurance, repairs and the like.

 

“Disbursement”
shall mean, each payment on the Note made by the Lender pursuant to this Agreement.

 

“Environmental
Indemnification Agreement” shall mean that certain Environmental Indemnification Agreement given by the Borrower in favor
of Lender dated as of the date hereof.

 

“ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as in effect from time to time.

 

“ERISA Affiliate”
shall mean a Person which is under control by the Borrower within the meaning of Section 414(b) or (c) of the Code.

 

“Event of Default”
shall mean any of the Events of Default described in Section 7.01.

 

“Fixtures”
shall mean all personal property now or hereafter owned by the Borrower or CRC and now or hereafter affixed to, incorporated into
or to be incorporated into, or used or useful in connection with, the Lots or the Improvements, or any part thereof, all replacements
thereof, additions thereto and substitutions therefor.

 

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“GAAP” shall
mean generally accepted accounting principles (as such principles may change from time to time) applied on a consistent basis (except
for changes in application in which the Borrower’ independent certified public accountants concur).

 

“Guaranty”
shall mean that certain Commercial Guaranty dated of even date herewith given by CRC as guarantor of the Loan.

 

“Guarantor”
shall mean CRC in his capacity as such under to the Guaranty.

 

“Improvements”
shall mean all buildings and related improvements and amenities now or hereafter on the Lots.

 

“Indebtedness”
shall mean (i) all obligations for borrowed money (including, without limitation, all notes payable and drafts accepted representing
extensions of credit, all obligations evidenced by bonds, debentures, notes or similar instruments, all obligations on which interest
charges are customarily paid, all obligations under conditional sale or other title retention agreements and all obligations issued
or assumed as full or partial payment for property, whether or not any such notes, drafts or obligations are obligations for borrowed
money), including, but not limited to, the Note, (ii) all obligations secured by any deed to secure debt, lien, pledge, charge
or security interest or encumbrance existing on property owned or acquired subject thereto, whether or not the obligations secured
thereby shall have been assumed, (iii) all obligations to repay amounts drawn down by beneficiaries of letters of credit, (iv)
all indebtedness and other obligations for the payment or purchase of which Borrower or CRC has agreed contingently or otherwise
to advance or supply funds and (v) indebtedness represented by obligations under a lease that is required to be capitalized for
financial reporting purposes in accordance with GAAP and the amount of such indebtedness shall be the capitalized amount of such
obligations determined in accordance with such principles.

 

“Interest Escrow”
Shall mean the funds required by this loan agreement due from loan proceeds on the Closing Date, and replenished with funds from
each payoff.

 

“Investment”
shall mean the investment required by this loan agreement due from Borrower on the Closing Date.

 

“Law” shall
mean any law (including common law), constitution, statute, treaty, regulation, rule, ordinance, order, injunction, writ, decree
or award of any Official Body.

 

“Lender”
shall mean Shepherd’s Finance, LLC, a Delaware limited liability company, 12627 San Jose Blvd., Suite 203, Jacksonville,
FL 32223.

 

“Lender’s
Cost of Funds” 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.

 

“Lien” shall
mean any deed to secure debt, deed of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement
of any nature whatsoever including, but not limited to, any conditional sale or title retention arrangement, and any assignment,
deposit arrangement or lease intended as, or having the effect of, security.

 

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“Loan” or
“Loans” shall mean the loan or loans made by Lender to the Borrower, or as otherwise advanced for the benefit of the
Borrower, under this Agreement and as further set forth in Section 2.01 hereof.

 

“Loan Account”
shall mean that as set forth in Section 2.13 hereof.

 

“Loan Document”
or “Loan Documents” shall mean singularly or collectively, as the context may require, (i) this Agreement, (ii) the
Note, (iii) the ALR, (iv) the Environmental Indemnification Agreement, (v) the Mortgage, (vi) the Guaranty, (vii) any and all other
documents, instruments, certificates and agreements executed and/or delivered in connection with this Agreement, as any of they
may be amended, modified, extended or supplemented from time to time.

 

“Loan Fees”
shall mean the loan fees described in Section 2.12 hereof.

 

“Lots” shall
mean the following lots in Greensboro, Georgia: 1020 Turnberry Cir (Lot 5), 1050 Quaker Ridge Road (Lot 3005), and 1110 Oak Valley
Road (Lot 2055). Legal Descriptions are found herein as Exhibit A.

 

“Mortgage”
shall mean that certain deed to secure debt and security agreement executed and delivered by Borrower to Lender dated
as of the date hereof conveying a first priority lien of the Lots, as further set forth in Section 4.04 hereof.

 

“Note” shall
mean that certain Promissory Note made by Borrower in favor of Lender dated as of the date hereof with a principal balance of One
Million Fifty Thousand and 00/100 Dollars ($1,050,000.00), along with any note executed and delivered by Borrower pursuant to this
Agreement, together with all extensions, renewals, refinancings or refundings in whole or part and as further set forth in Section
2.02 hereof.

 

“Office,”
when used in connection with Lender, shall mean its designated office located at 12627 San Jose Blvd., Suite 203 Jacksonville,
FL 32223, or such other office or offices as Lender may designate from time to time.

 

“Official Body”
shall mean any government or political subdivision or any agency, authority, bureau, central bank, commission, department or instrumentality
of either, or any court, tribunal, grand jury or arbitrator, in each case whether foreign or domestic.

 

“PBGC” shall
mean the Pension Benefit Guaranty Corporation.

 

“Person”
shall mean an individual, corporation, partnership, limited partnership, limited liability company, joint venture, trust, or unincorporated
organization, or a government or any agency or political subdivision thereof.

 

“Plan” shall
mean any plan, including single employer, multiple employer and multiemployer plans, subject to Title IV of ERISA and established
or maintained for persons including employees or former employees of the Borrower or its Affiliates.

 

“Potential Default”
shall mean any event or condition which with notice or passage of time or any combination of the foregoing would constitute an
Event of Default.

 

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“Rate Adder”
shall be calculated each month, based on the number of full months since the Closing Date (for the purposes of calculating the
Rate Adder, only for the secondary adder, for homes built after the first home under this agreement, the Closing Date shall be
replaced by the date construction on the current home was approved for construction by lender).

 

	# of full months since Closing Date	Rate Adder
	1-12	2%
	13 and greater	7%

 

Also added to the Rate
Adder shall be the following secondary adders, (which secondary adders shall never total more than 4% in the aggregate):

 

a) Construction not started
within 90 days of Closing Date, until construction is started, 2% additional secondary adder and/or

 

b) Construction has not
reached 90% completion based on inspection approved by Lender within 9 months of Closing Date, 2 % additional secondary adder.

 

There shall be no secondary
adders when a loan is in default and being charged the default rate.

 

“Real Property”
shall mean the Lots, the Improvements and the Fixtures.

 

“Reportable Event”
shall mean any of the events set forth in Section 4043(b) of ERISA or the regulations thereunder, except any such event as to which
the provision for thirty (30) days’ notice

 

“Spec Home”
shall mean a home that is built without a current contract or sales agreement with a homebuyer, as approved by lender in its sole
discretion.

 

“Termination Event”
shall mean (i) a Reportable Event, (ii) the termination of a Single Employer Plan, or the treatment of a Single Employer Plan amendment
as a termination of such Plan under Section 4041 of ERISA, or the filing of a notice of intent to terminate a Single Employer Plan,
or (iii) the institution of proceedings to terminate a Single Employer Plan by the PBGC under Section 4042 of ERISA, or (iv) the
appointment of a trustee to administer any Single Employer Plan.

 

ARTICLE
II.

LOANS

 

2.01         
Loans. Subject to the terms and conditions and relying upon the representations and warranties in this Agreement
and the other Loan Documents, Lender agrees to make the following loan to the Borrower: A loan in the original principal amount
of up to One Million Fifty Thousand and 00/100 Dollars ($1,050,000.00) (“Loan”) at the Closing, the net proceeds of
which may be disbursed to Borrower in one or more Disbursements on the date of Closing or upon the date that all terms and conditions
to be satisfied hereunder by Borrower, including obtaining the Lender’s approval of the final construction budget for any
construction project, and as further set forth in Section 2.08, are fully satisfied in the Lender’s opinion, in accordance
with and subject to the conditions, requirements and limitations set forth in this Agreement. Upon repayment of any amount of principal
or interest on the Loan by Borrower, Borrower may reborrow hereunder, subject to the limitations on the maximum allowable amount
outstanding provided in Section 2.05 and subject to any other conditions, requirements and limitations set forth in this Agreement.

 

2.02         
Note. The obligation of Borrower to repay the unpaid principal amount of the Loan made to it by Lender, and to pay
interest thereon, shall be evidenced in part by the Note, dated of even date herewith. The executed Note shall be delivered by
the Borrower to Lender at the Closing.

 

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2.03         
Interest Rates; Usury.

 

(a)             
Interest Rates. The principal amount outstanding on the Note shall bear interest at a rate equal to the Lender’s
Cost of Funds, plus the Rate Adder. Interest shall be computed on the basis of a year of 365/366 days for actual days elapsed.

 

(b)            
Interest After Maturity or Default. After the principal amount of any part of the Debt, accrued interest thereon,
or any fees or any other sums payable hereunder shall become due and remain unpaid (whether upon demand by Lender, upon the occurrence
of an Event of Default, by acceleration or otherwise), the amount thereof shall thereafter until paid in full bear interest at
a rate which shall be four percent (4.0%) per annum (based on a year of 365/366 days, calculated for actual number of days elapsed)
above the then-current rate(s) applicable to the Note. Such interest rate(s) shall apply to the entire outstanding principal balance
of the Loan. Upon the curing of such default, the interest rate on the Loan shall revert to the initially agreed interest rate
hereunder, effective as of the date on which said default is cured.

 

(c)             
Interest Rate Set by Law. In the event the rates of interest provided for in subsections (a) or (b) above are finally
determined by any Official Body to exceed the maximum rate of interest permitted by any applicable usury or similar Laws, their
or its application shall be suspended and there shall be charged instead the maximum rate of interest permitted by such Laws. If
any payment of interest or in the nature of interest would cause the foregoing interest rate limitation to be exceeded, then such
excess payment will be credited as a payment of principal of any of the Note, at Lender’s option, unless the Borrower notifies
Lender in writing to return the excess payment to the Borrower.

 

2.04         
Disbursements. The net proceeds of the Loan shall be disbursed as directed by Borrower for the purposes set forth
in Section 2.08 upon all of the terms and conditions herein being satisfied in the Lender’s opinion. Disbursements shall
be by check written to subcontractors and vendors, mailed to Borrower for disbursement. Remaining funds will be paid by check to
the Borrower.

 

2.05         
Principal and Interest Payments. Payments for the prior month’s accrued interest shall be due on the fifteenth
(15th) day of each month. Upon or prior to such due date, Lender shall apply funds up to the balance of the Interest Escrow to
the amount due on the Loan as interest, at Lender 's discretion as to the allocation. If the funds of the Interest Escrow are exhausted
prior to the Loan being paid off, the Borrower will make interest payments to Lender from Borrower’s funds. Payments will
be accepted by way of an ACH withdrawal initiated by Lender. Payments will first be Interest will also be due with principal payments
made under section 2.05(a) or (b). Payments of principal shall be due as follows:

 

(a)             
Upon the sale or transfer of all or a portion of any lot contained within the Real Property, or, consistent with Section
6.07 hereof, the lot’s outstanding principal balance and interest, and the amount required to replenish the Interest Escrow
shall be paid by Borrower to Lender.

 

(b)            
Upon demand by Lender.

 

2.06         
Optional Prepayments. The Borrower shall have the right, at its option, to prepay the principal, interest or other
amounts due from the Borrower under this Agreement or under the Note, in whole or in part at any time without premium or penalty.
Prepayments will not, unless agreed to by Lender in writing, relieve the Borrower of its obligation to continue to make payments
as set forth herein, rather, prepayments will reduce the principal balance of the Indebtedness, as determined by Lender in its
sole discretion.

 

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2.07         
Payments. All payments to be made in respect of principal, interest or other amounts due from the Borrower under
this Agreement or under the Note shall be payable on or before 2:00 o’clock p.m., Jacksonville, Florida, time, on the day
when due without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived, and an action therefor
shall immediately accrue. Such payments shall be made to Lender at its Office in U.S. dollar funds immediately available at such
Office without setoff, counterclaim or other deduction of any nature. All such payments shall be applied at the option of Lender
to accrued and unpaid interest, outstanding principal and other sums dues under this Agreement in such order as Lender, in its
sole discretion, shall elect. Lender shall attempt to automatically withdraw funds from Borrower’s account on the date due
under the Note.

 

2.08         
Use of Net Proceeds; Approval of homes.

 

(a)             
Loan. The proceeds of the Loan shall be used for purchase of the Lots and construction of no more than two homes
and no more than one Spec home approved by Lender. Approval shall require an acceptable appraisal and a review of the house plans.
Such approval shall be at Lender’s sole and exclusive option, and such approval or denial shall be communicated to Borrower
prior to the Closing. Proceeds will also be used to pay for the following expenses on Borrowers behalf at closing: Appraisal fee,
real estate taxes, transfer and mortgage taxes customarily paid by Borrower, recording fees customarily paid by Borrower, Loan
Fee, flood insurance (if required), builder’s risk insurance, boundary survey (only if lot is metes and bounds), title insurance,
Interest Escrow and Borrower Investment. When the builder meets the requirements in the first sentence of this paragraph, it will
request funding for a home to be built on any of the remaining Lots. The home will need to be approved by Lender, such approval
being at the Lender’s sole and exclusive option. This option will continue until all remaining Lots are built on and released,
or until Lender terminates the Loan, at its sole option.

 

2.09         
Releases; Prohibitions on Transfer.

 

		(a)	Notwithstanding anything herein to the contrary, neither the entirety of the Real Property nor
any portion thereof will be released by Lender without the proper amount or amounts having been paid to reduce the amount outstanding
on the loan in accordance with this Agreement.

		(b)	Upon the payment of the release amount for the Real Property to be released, so long as all other
terms and conditions contained herein shall have been satisfied, Lender shall take the proper steps to release its security interest
in such portion of the Land as noted in Section 2.08 above.

 

2.10         
Loan Fees. The Borrower shall pay the following loan fees to the Lender: for the Loan the first construction project,
a fee in the amount of 5% of the estimated loan amount of $1,000,000 based on lending 70% of the appraised value of the home, which
fee shall be earned by and paid to Lender at Closing, and funded out of proceeds of the Loan. Should the appraised value be more
or less, the loan fee will be adjusted accordingly and credited or charged to the Borrower at the start of the third home.

 

2.11         
Interest Escrow. The Borrower shall agree to provide an Interest Escrow of $35,000 from which monthly interest payments
shall be deducted. The Interest Escrow will be funded at closing from proceeds of the Loan which shall be held in the Lender’s
general operating funds and not yield interest to Borrower. As each home constructed is paid off, additional payoff funds will
be requested from closing proceeds on Lender’s payoff letter to replenish the Interest Escrow.

 

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2.12         
Indemnity. The Borrower and CRC shall jointly and severally indemnify Lender against any loss r expense which Lender
has sustained or incurred as a consequence of any default by the Borrower or CRC in the performance or observance of any covenant
or condition contained in this Agreement, or under the Note, including, without limitation, any failure of the Borrower to pay
when due (by demand, upon maturity or otherwise) any principal, interest, commitment fees or any other amount due hereunder or
under the Note. If Lender sustains or incurs any such loss or out-of-pocket expense, it shall from time to time notify the Borrower
and CRC of the amount determined in good faith by Lender (which determination shall be conclusive) to be necessary to indemnify
Lender for such loss or expense. Such amount shall be due and payable by the Borrower and CRC to Lender ten (10) Business Days
after such notice is given and shall bear interest at the then applicable interest rate from the due date until paid (before and
after judgment).

 

2.13         
Loan Account. Lender shall open and maintain on its books a loan account (the “Loan Account”) with respect
to repayments, prepayments, the computation and payment of interest and principal, and the computation and final payment of all
other amounts due and sums paid to Lender hereunder. Except in the case of manifest error in computation, the Loan Account shall
be conclusive and binding on the Borrower as to the amount at any time due to the Lender from the Borrower hereunder and under
the Note.

 

2.14         
Late Charge. Upon the occurrence of an Event of Default with respect to the payment of any installment of interest
or principal on any of the Note for more than ten (10) days after the said installment becomes due, in addition to making a payment
of the installment due, the Borrower or Parties shall pay to Lender a late charge in an amount equal to the greater of (i) Twenty-Five
and 00/100 Dollars ($25.00) or (ii) five percent (5.0%) of any such overdue installment.

 

2.15         
Collateral.

 

(a)             
Note. The Note and all obligations of Borrower hereunder shall be secured by the ALR, the Environmental Indemnification
Agreement, the Mortgage, the Guaranty, the Investment, and any and all other Loan Documents executed with respect thereto.

 

(b)            
Cross-Collateralization. Borrower and CRC acknowledge and agree that all of the Collateral described herein shall
serve as additional Collateral for any or all of the advances under the Note, notwithstanding any term or terms of a Loan Document
to the contrary, and that upon the occurrence of an Event of Default, Lender may proceed against any portion of the Collateral,
at Lender’s sole discretion.

 

2.16         
Extinguishment. The obligations of the Borrower and CRC under the Note shall be extinguished, and Real Property may
be released by Lender, upon such time as the outstanding balance relating to the Note zero dollars, and either the Borrower or
the Lender wishes to terminate the agreement.

 

2.17         
Calculation of Advance Amount. Each home will be eligible to receive 70% of the appraised value of the home (assuming
construction) up to $350,000 of proceeds. For the first home construction project, the lot proceeds and fees and costs as listed
in Section 2.08, not including the Interest Escrow and Borrower Investment, will be subtracted from 70% of the appraised value.
For subsequent lots, the loan fee and new expenses (appraisal, for instance) will be subtracted from the 70% of appraised value.
The remaining available proceeds will be available for draws based on the Lender’s then current draw schedule applicable
to the home. By way of example, if the home to be built at 1020 Turnberry Circle appraised for $450,000, resulting in a loan amount
of $315,000 and the items funded at closing were: Appraisal fee $700, real estate taxes $400, transfer and mortgage taxes customarily
paid by Borrower $400, recording fees customarily paid by Borrower $100, Loan Fee (5.0% of $315,000, or $15,750), builder’s
risk insurance $700, and title insurance for $800, as well as the selling price for the Lot of $69,900, then $88,750 will be funded
at closing of the $315,000, and the remaining $226,250 will be available for construction draws. These draw amounts will be based
on the percentages of completion as determined by lender as construction progresses. Up to seven draws per home will be allowed.
Borrower will submit a project estimate form to Lender prior to construction of each home. Lender will pay invoices from subcontractors
and material suppliers from available construction draw funds, directly to subcontractor, via ACH, after approval by Borrower and
Lender. If Borrower is in default under the Agreement, Borrower’s approval will not be required.

 

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2.18         
Borrower Investment. On the Closing Date for the first home, Borrower shall invest in a fixed rate note with Shepherd’s
Finance (via the loan proceeds) of $40,000, for duration of 12 Months at the rate of 4.0%. The interest yielded by the investment
will be paid monthly to the Borrower while not in default. This Investment shall be collateral for the Loan.

 

(a)             
Upon maturity of the note, the Borrower shall renew the note for the shortest duration available at the time of the note
renewal provided the Builder Investment is still due on account.

 

(b)            
After final payoff of all debt, the Borrower Investment will still remain until the note’s then current maturity date.

 

2.19         
Quality Control Inspections. During the term of this Agreement, the Lender may perform quality control inspections
at its expense. The Lender may use these inspections to override inspections done under Section 4.14 of this Agreement.

 

2.20         
Quality Control Appraisals. Lender will periodically have quality control appraisals (“QCA”) completed
on the Collateral at its discretion and at its expense. If the value received from the QCA is, in the Lender’s opinion, substantially
lower than the appraisal used in section 2.17, the Lender will have the option to reduce the appraised value used in 2.17 to the
QCA appraised value.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES 

 

The Borrower
and CRC hereby represent and warrant to Lender that:

 

3.01         
Organization and Qualification. Borrower is a Georgia limited liability company and all of the Persons executing
Loan Documents on Borrower’s behalf, are all duly organized, validly existing and in good standing under the laws of their
jurisdiction of organization, and are duly qualified or licensed to do business, and are in good standing in all jurisdictions
in which the ownership of their respective properties or the nature of their activities or both make such qualification or licensing
necessary.

 

3.02         
Authority; Power to Carry on Business: Licenses. The Borrower, CRC, and the respective Persons executing Loan Documents
on their behalf, have the power and authority to execute, deliver and perform the Loan Documents to which they are a party, to
make the borrowing provided for herein, and to perform their respective obligations hereunder and under the other Loan Documents.
All such action has been duly and validly authorized by all necessary proceedings on their respective parts. The Borrower has all
requisite power and authority to own and operate their respective properties and to carry on their businesses as now conducted
and as presently planned to be conducted. The Borrower has all licenses, permits, consents and governmental approvals or authorizations
necessary to carry on their respective businesses as now conducted and specifically in conjunction to the Real Property.

 

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3.03         
Execution and Binding Effect. The Loan Documents have been duly and validly executed and delivered by the parties
thereto and, to the extent they are a party thereto, constitute legal, valid and binding obligations of the Borrower and CRC, enforceable
in accordance with the terms hereof and thereof.

 

3.04         
Authorizations and Filings. No authorization, consent, approval, license, exemption or other action by, and no registration,
qualification, designation, declaration or filing with, any Official Body is or will be necessary or advisable in connection with
the execution and delivery, of the Loan Documents, the consummation of the transactions herein or therein contemplated, and the
performance of or compliance with the terms and conditions hereof or thereof.

 

3.05         
Absence of Conflicts. Neither the execution and delivery of the Loan Documents, the consummation of the transactions
herein or therein contemplated, nor the performance of or compliance with the terms and conditions hereof or thereof will (a) violate
any Law or any regulation, order, writ, injunction, or decree of any court or governmental instrumentality or agency, (b) conflict
with or result in a breach of or a default under the organizational documents of the Borrower, or any agreement or instrument to
which any of such parties is a party or by which its properties (now owned or hereafter acquired) may be subject or bound or, (c)
result in the creation or imposition of any Lien, charge or encumbrance upon any property (now owned or hereafter acquired) of
any of such parties.

 

3.06         
Ownership and Control. Schedule 3.06 to this Agreement states, as of the Closing Date, the owners of the ownership
interests of the Borrower.

 

3.07         
Managers of the Borrower; Business. Schedule 3.07 to this Agreement states as of the Closing Date the Persons authorized
to execute the Loan Documents by the Borrower. In addition, Schedule 3.07 to this Agreement describes the business of the Borrower
as presently conducted and as presently planned to be conducted.

 

3.08         
No Event of Default; Compliance with Instruments. No event has occurred and is continuing and no condition exists
which constitutes an Event of Default or Potential Default. The Borrower is not in violation of (i) any term of any organizational
agreement nor (ii) any agreement or instrument to which they are a party or by which they or any of its properties (now acquired
or hereinafter acquired) may be subject or bound.

 

3.09         
Litigation. There is no pending, contemplated or threatened proceeding by or before any Official Body against or
affecting the Borrower, CRC or the Collateral which, if adversely decided, would have a material adverse effect on the financial
condition, assets, properties, management, operations or business of the Borrower or CRC, the ability of the Borrower or CRC to
perform their obligations under the Loan Documents, or the Collateral.

 

    	10

    	 

    

 

 

3.10         
Pension and Employee Benefit Plan Matters. The provisions of all deferred compensation, benefit, pension, profit
sharing and other plans, if any, of the Borrower which are subject to ERISA (the “Plans”) comply in all respects with
the requirements of ERISA. The Plans have not incurred any “accumulated funding deficiency” within the meaning of Section
302 of ERISA, if applicable, or Section 412 of the Code with respect to the most recent plan year ending on or prior to the date
hereof, and each Borrower and its ERISA Affiliates have not incurred any liability on account of an “accumulated funding
deficiency” with respect to the Plans. All contributions to the Plans required with respect to all plan years ending on or
prior to the date hereof have been made, and the pro rata portion of the contribution with respect to the plan year in which the
date hereof falls has been accrued on the respective financial statements of the Borrower. The funding method used in connection
with the Plans is acceptable under ERISA and the actuarial assumptions used in connection with funding the Plans, in the aggregate,
are reasonable. No liability to PBGC has been incurred with respect to the Plans (except for the premium liability under Section
4007(a) of ERISA) nor has any event or circumstances occurred in connection with the Plans which would result in any liability
to the PBGC on the part of the Borrower or its ERISA Affiliates. No Reportable Event, within the meaning of Section 4043 of ERISA,
has occurred with respect to the Plans, nor have the Plans been terminated in accordance with the procedures set forth in Sections
4041 or 4042 of ERISA or by operation of law. All premium payments with respect to the Plans to PBGC required as of the date hereof
have been made. The Borrower, its ERISA Affiliates, and to the best knowledge of the Borrower and its ERISA Affiliates, any “party
in interest” within the meaning of Section 3(14) of ERISA, have not engaged in any “prohibited transaction” within
the meaning of Section 406(a) or (b) of ERISA or of Section 4975(c) of the Code, the occurrence of which would subject the Borrower
or its ERISA Affiliates to any liability or any tax which may be imposed by Section 4975 of the Code or Section 502(i) of ERISA,
with respect to a Plan. No legal action involving a Plan is pending or threatened against the Borrower or any of the fiduciaries
of a Plan. The Plans have received determination letters from the Internal Revenue Service to the effect that each Plan is qualified
under Section 401(a) of the Code and nothing has occurred since the receipt of the latest determination letters with respect to
each Plan to adversely affect its continued qualification. the Borrower and its ERISA Affiliates, have, for all periods ending
on or prior to the date hereof, administered the Plans and each “employee welfare benefit plan,” maintained by them,
in all material respects in compliance with the reporting and disclosure requirements applicable thereto under ERISA, the Code
or any other federal, state or local law. the Borrower and its ERISA Affiliates do not contribute to a multiemployer pension plan,
as such term is defined in Section 3(37) of ERISA, on behalf of any of its employees.

 

3.11         
Title to Property. The Borrower has good and marketable title in fee simple to all of the real property purported
to be owned by the Borrower and good and marketable title to all other property purported to be owned by the Borrower which is
securing the Loans, subject only to Liens not forbidden by Section 6.01 hereof.

 

3.12         
Use of Net Proceeds. The net proceeds of the Note shall be used solely for the purposes set forth in Section 2.08.

 

3.13         
Taxes. All tax returns required to be filed by the Borrower have been properly prepared, executed and filed. All
taxes, assessments, fees and other governmental charges upon the Borrower or upon any of its respective properties, income, sales
or franchises which are due and payable have been paid. The reserves and provisions for taxes on the books of the Borrower are
adequate for all open years and for the current fiscal period. The Borrower does not know of any proposed additional assessment
or basis for any material assessment for additional taxes (whether or not reserved against). The federal income tax liabilities
of the Borrower have been finally determined by the Internal Revenue Service, or the time for audit has expired, and all such liabilities
(including all deficiencies assessed following audit) have been satisfied.

 

3.14         
No Material Adverse Change. Since the July 10, 2013, there has been no material adverse change in the financial condition,
assets, properties, management, operations or business of the Borrower or CRC.

 

3.15         
Regulations U and X. The Borrower will make no borrowing hereunder for the purpose of buying or carrying any “margin
stock,” as such term is used in Regulation U of the Board of Governors of the Federal Reserve System, as amended from time
to time. The Borrower owns no “margin stock.” The Borrower is not engaged in the business of extending credit to others
for such purpose, and no part of the proceeds of any borrowing hereunder will be used to purchase or carry any “margin stock”
or to extend credit to others for the purpose of purchasing or carrying any “margin stock” in contravention of regulations
U and X.

 

    	11

    	 

    

 

3.16         
Investment Company Act. The Borrower is not an “investment company” or company “controlled”
by and “investment company” within the meaning of the Investment Company Act of 1940; as amended.

 

3.17         
Compliance with Laws. The conduct by the Borrower of its business as it is presently conducted does not violate any
provision of any Law or, if such conduct does violate a Law, such violation would not, together with all other such violations,
have a material adverse effect on the financial condition or results of operations of the Borrower, and the Borrower has obtained
all permits, licenses, consents and approvals of all Official Bodies or other third parties, including all consents and approvals,
if any, under the Laws designed to protect the environment, which are required to conduct its business as it is presently conducted.

 

3.18         
Licenses, Franchises. The Borrower owns or possesses all of the patents, trademarks, service patents marks, trade
names, copyrights, licenses, franchises, permits and rights with respect to the foregoing necessary to own and operate its properties
and to carry on its business as presently conducted without conflict with the rights of others. No individual patent or patent
license is of material importance to its business and there is no reason to anticipate any material liability to the Borrower in
respect of any claim of infringement of any thereof.

 

3.19         
Utility Services. All utility services appropriate for housing are available at the boundaries of the Collateral.

 

3.20         
Assessment of Property. Each Lot is and will continue to be assessed and taxed as an independent parcel by all governmental
authorities.

 

3.21         
Environmental Matters.

 

(a)             
The Borrower and CRC warrant and represent that the Borrower and CRC are not aware of any circumstances which would result
in any material obligation binding upon the Borrower or CRC under any environmental laws to investigate or remediate any Hazardous
Substances in, on or under any parcel of the Real Property.

 

(b)            
The Borrower and CRC will execute and deliver to Lender the Environmental Indemnification Agreement.

 

3.22         
Solvency. After giving effect to the consummation of all the transactions contemplated hereby, the Borrower and CRC
(a) shall be able to pay their debts as they become due, (b) shall have funds and capital sufficient to carry on their business
and all businesses in which they are about to engage and, (c) shall own property having a value both at fair valuation and at fair
saleable value in the ordinary course of the Borrower’s and CRC’s business greater than the amount required to pay
its debts as they become due. The Borrower and CRC shall not be rendered insolvent by the execution and delivery of this Agreement,
the borrowing hereunder and/or the consummation of any transactions contemplated herein.

 

    	12

    	 

    

 

3.23         
Accurate and Complete Disclosure, Continuing Representations and Warranties. No representation or warranty made by
the Borrower or CRC under this Agreement or any Loan Document and no statement made by the Borrower or CRC in any certificate,
report, exhibit or document furnished by the Borrower or CRC to Lender pursuant to or in connection with this Agreement is false
or misleading in any material respect (including by omission of material information necessary to make such representation, warranty
or statement not misleading). The Borrower and CRC have disclosed to Lender in writing every fact which materially and adversely
affects, or would materially and adversely affect, the financial condition, assets, properties, management, operations or business
of the Borrower or CRC or the ability of the Borrower or CRC to perform their respective obligations under the Loan Documents.
The representations and warranties are to survive the delivery of the Loan Documents and the making of all disbursements hereunder
until the Agreement is terminated by Lender.

 

ARTICLE
IV.

CONDITIONS OF LENDING

 

The obligation
of Lender to enter into this Agreement and to make the Loan hereunder is subject to the accuracy, as of the date hereof, of the
representations and warranties contained in the Loan Documents, to the performance by the Borrower and CRC of their obligations
to be performed hereunder and thereunder on or before the Closing Date, and to the satisfaction of the following further conditions:

 

4.01         
Representations and Warranties, Events of Default and Potential Defaults. The representations and warranties contained
in Article III shall be true on and as of the date of Closing and each disbursement, with the same effect as though made on and
as of such date. On the date of the Closing or any disbursement, no Event of Default and no Potential Default (unless waived by
Lender) shall have occurred and be continuing or exist.

 

4.02         
Proceedings and Incumbency. On the Closing Date, there shall have been delivered to Lender, certificates of the Borrower
in form and substance reasonably satisfactory to Lender, dated the Closing Date and signed on behalf of the Borrower by its respective
Persons authorized to execute Loan Documents on its behalf certifying as to (a) true copies of the organizational documents of
the Borrower as in effect on such date, (b) true copies of all organizational actions taken by the Borrower relative to the transactions
contemplated by this Agreement, and (c) the names, true signatures and incumbency of all of the Persons authorized to execute and
deliver the Loan Documents to which the Borrower are a party. Lender may conclusively rely on such certificate.

 

4.03         
Loan Documents. On the Closing Date, those Loan Documents to be executed by or at the Closing Date shall have been
executed and delivered to Lender and shall be in effect and all filings and recordings contemplated thereby shall have been made.
The Borrower shall also deliver such other instruments, documents and certificates as Lender or its counsel shall reasonably require.

 

4.04         
Deed to Secure Debt. There shall have been executed and delivered to Lender the deed to secure debt, pursuant to
which Borrower shall have conveyed a first in priority lien on the Real Property to Lender, together with evidence satisfactory
to Lender and counsel for Lender that the deed to secure debt has been filed in the appropriate public office.

 

4.05         
ALR. There shall have been executed and delivered to Lender the ALR , pursuant to which the Borrower has assigned
to Lender, as collateral, all the right, title and interest of the Borrower in and to any leases, together with evidence satisfactory
to Lender and counsel for Lender that the ALR has been recorded and filed in the appropriate public office or offices.

 

4.06         
Title Insurance. There shall have been delivered the following a title insurance commitment on the Lots in form and
substance acceptable to Lender and its title insurer:

 

    	13

    	 

    

 

4.07         
Agreements Affecting the Real Property. There shall have been delivered a copy of any and all agreements, understandings,
covenants and restrictions, with or relating to the Real Property, its owners or tenants, affecting the Borrower.

 

4.08         
Certificates of Insurance. Lender shall have received such certificates of insurance as Lender may require, in form
and substance satisfactory to Lender, from insurers satisfactory to Lender evidencing the fulfillment of the requirements of Section
5.02 hereof.

 

4.09         
Details, Proceedings and Documents. On the Closing Date, all legal details and proceedings in connection with the
transactions contemplated by this Agreement shall be reasonably satisfactory to Lender and its counsel and Lender shall have received
and shall receive from time to time all such counterpart originals or certified or other copies of such documents and proceedings
in connection with such transactions, in form and substance satisfactory to Lender, as Lender may from time to time request.

 

4.10         
Other Documents and Conditions. On or before the Closing Date, Lender shall have received such other documents and
conditions as may be required to be submitted to Lender by the terms of this Agreement or any Loan Document with respect to the
transactions contemplated by this Agreement.

 

4.11         
Fees and Expenses. The Borrower shall have paid all fees and charges required for the Closing (including fees and
expenses paid by Lender from loan proceeds for Borrower at closing) and related to the Closing, including Borrower’s legal
fees, site inspection costs, and any other similar matters pertinent to the Closing.

 

4.12         
Builder Investment. At or Prior to the Closing Date for the first home to be built, or prior to construction on any
additional homes to be financed under this agreement, the Borrower shall have made the appropriate Investment.

 

4.13         
Project Estimate Form. At or Prior to the Closing Date for the first home to be built, or prior to construction on
any additional homes to be financed under this agreement, the Borrower will submit a project estimate form to Lender.

 

4.14         
Initial Construction Disbursement on Each Home. Prior to the initial construction disbursement on each home, Borrower
shall order and supply a foundation survey to Lender, at Borrower’s expense. Prior to the initial construction disbursement
on each home except 100 Evergreen Parkway, Lender shall perform title search at its expense.

 

4.15         
Prior to All Construction Disbursements. Prior to all construction disbursements, an inspection with digital pictures
will be done by a Realtor acceptable to Lender, at Borrower’s expense, if any. If the Realtor listing the property is unable,
unwilling, or not acceptable to Lender, Lender will select a different inspector, also at Borrower’s expense, if any. Also
prior to disbursement, Borrower will supply Lender with all invoices from subcontractors and vendors, and the disbursement request
form supplied by Lender to Borrower, and the Disbursement Request Form then being used by Lender.

 

4.16         
Sales Contract. Purchase contract for $19,300 for the three Lots delivered to Lender prior to closing.

 

4.17         
Boundary Survey. Prior to the Closing Date for the first Lot, and the construction commencement for all other Lots,
if any Lot which is to be constructed on is delineated by Metes and Bounds rather than platted, a boundary survey will need to
be provided by Borrower at its expense.

 

    	14

    	 

    

 

ARTICLE
V.

AFFIRMATIVE COVENANTS 

 

The Borrower
and CRC covenant and agree with Lender as follows:

 

5.01         
Reporting and Information Requirements.

 

(a)             
Weekly Meetings. At Lender’s option, the Borrower shall meet with Lender to review progress of construction
etc., on the phone or in person at the Real Property.

 

(b)            
Notice of Event of Default. Promptly upon becoming aware of any Event of Default or Potential Default, the Borrower
shall give Lender notice thereof, together with a written statement of the Borrower setting forth the details thereof and any action
taken or contemplated to be taken by the Borrower.

 

(c)             
Notice of Material Adverse Change. Promptly upon becoming aware thereof, the Borrower and CRC shall give Lender notice
with respect to any material adverse change in the financial condition, assets, properties, management, operations or business
of the Borrower or CRC.

 

(d)            
Notice of Proceedings. Promptly upon becoming aware thereof, the Borrower and CRC shall give Lender notice of the
commencement, existence or threat of all proceedings by or before any Official Body against or affecting the Borrower or CRC, which,
if adversely decided, would have an adverse effect on the financial condition, assets, properties, management, operations or business
of the Borrower or CRC.

 

(e)             
Visitation. Upon receipt of reasonable notice, the Borrower and CRC shall permit such persons as Lender may designate
to visit and inspect any of their properties to examine the books and records relevant thereto and take copies and extracts therefrom,
and to discuss the affairs of the Borrower and CRC with each of their agents, employees and independent accountants at such times
and as often as Lender may reasonably request, at Lender’s expense. The Borrower and CRC hereby authorize such agents, employees
and independent accountants to discuss with Lender the affairs of the Borrower and CRC, all at Lender’s expense.

 

(f)             
Further Information. The Borrower and CRC will promptly furnish to Lender such other information, in such form, as
Lender may reasonably request from time to time.

 

5.02         
Insurance. The Borrower shall maintain, with financially sound and reputable insurers, general liability insurance
with respect to its properties and businesses, against such liabilities, casualties and contingencies and of such types and in
such amounts as is satisfactory to Lender and as is customary in the case of entities engaged in the same or a similar business
or having similar properties in the same geographic area (including, if required by Lender, flood insurance). The Borrower agrees
to provide Lender with thirty (30) days’ advance notice of the termination of any such policy of insurance.

 

5.03         
Maintenance of Properties. The Borrower shall maintain or cause to be maintained in good repair, working order and
condition the properties now or hereafter owned, leased or otherwise possessed by it and shall make or cause to be made all needful
and proper repairs, renewals, replacements and improvements thereto so that the business carried on in connection therewith may
be properly and advantageously conducted at all times.

 

    	15

    	 

    

 

5.04         
Payment of Liabilities. The Borrower shall pay or discharge:

 

(a)             
prior to the date on which penalties attach thereto, all taxes, assessments and other governmental charges or levies imposed
upon it or any of its properties or income;

 

(b)            
on or prior to the date when due, all lawful claims of material men, mechanics, carriers, warehousemen, landlords and other
like persons which, if unpaid, might result in the creation of a Lien upon any such properties;

 

(c)             
on or prior to the date when due, all other lawful claims which, if unpaid, might result in the creation of a Lien upon
any such properties; and

 

(d)            
all other liabilities so that they are not in default, in the ordinary course of the Borrower’ business.

 

5.05         
Compliance with Laws. The Borrower and CRC shall comply with all applicable Laws, in all material respects.

 

5.06         
Continuation of and Change in Business. The Borrower shall continue to engage in the business and activities that
it is presently engaged in. The Borrower shall not engage in any other business or activities without obtaining the prior written
consent of Lender.

 

5.07         
Use of Net Proceeds. The Borrower will use the net proceeds of the Note for the purposes set forth in Section 2.08
hereof.

 

5.08         
Lien Searches. Lender may, but shall not be obligated to, conduct lien searches of the Borrower and its assets and
properties, as Lender, in its sole discretion, may determine to be necessary.

 

5.09         
Further Assurances. At any time and from time to time, upon Lender’s request, the Borrower and CRC shall make,
execute and deliver, or cause to be made, executed and delivered, to Lender and where appropriate shall cause to be recorded or
filed, and from time to time thereafter to be rerecorded and refiled at such time and in such offices and places as shall be deemed
reasonably desirable by Lender, any and all such other Loan Documents, certificates and other documents as Lender may consider
necessary or desirable in order to effectuate, complete or perfect and to continue and preserve the obligations of the Borrower
and CRC hereunder under the Note and the Loan Documents and the Liens created thereby. Upon any failure by the Borrower or CRC
to do so, Lender may make, execute, record, file, rerecord or refile any and each such Loan Document, instrument, certificate and
document for and in the name of the Borrower or CRC.

 

5.10         
Wages and Withholding Taxes. The Borrower shall pay when due all wages and other compensation and all withholding
taxes. The Borrower shall create and fund a reserve for all withholding taxes for wages and other compensation which has been paid
but as to which the taxes are not yet due. If such wages and other compensation are not paid when due and/or if such withholding
taxes are not paid when due and/or a funded reserve is not created for withholding taxes which are owing for wages and other compensation
which have been paid but as to which the taxes are not yet due, Lender may, but is not obligated to pay the Borrower’ wage,
compensation and/or withholding tax liabilities and add such amounts so paid to the principal amounts due under Section 2.01 of
this Agreement.

 

    	16

    	 

    

 

5.11         
Preservation of Existence. The Borrower shall maintain its limited liability company existence, rights and franchises
in full force and effect in its jurisdictions of organization. The Borrower shall qualify and remain qualified as a foreign limited
liability company in each jurisdiction in which failure to receive or retain such qualification would have a material adverse effect
on the financial condition, assets, properties, management, operations or business of the Borrower.

 

5.12         
Damage or Destruction. If any of the Collateral is damaged or destroyed by casualty of any nature, within sixty (60)
days thereafter Borrower shall restore the Collateral and Improvements to the condition in which they were before such damage or
destruction with funds not from the Lender. Lender will not be obligated to make disbursements under this Agreement until such
restoration has been accomplished. Proceeds from any insurance policy may be used, at Lender’s sole discretion, to reduce
the balance due under this Agreement rather than to improve the Collateral.

 

ARTICLE
VI.

NEGATIVE COVENANTS

 

The Borrower
and CRC covenant to Lender as follows:

 

6.01         
Liens. Without the prior written consent of Lender, the Borrower shall not at any time create, incur, assume or suffer
to exist any Lien on or against any assets of the Borrower or agree or become liable to do so except:

 

(a)             
Liens in favor of Lender;

 

(b)            
Liens arising from taxes, assessments, charges, levies or claims that are not yet due, that remain payable without penalty;

 

(c)             
Deposits or pledges to secure workers’ compensation, unemployment insurance, old age benefits or other social security
obligations, or in connection with or to secure the performance of bids, tenders, trade contracts or leases, or to secure statutory
obligations, or stay, surety or appeal bonds, or other pledges or deposits of like nature and all in the ordinary course of business
in an aggregate amount of less than Ten Thousand Dollars ($10,000.00); and

 

(d)            
Zoning restrictions, easements, minor restrictions on the use of real property, and other minor Liens that do not secure
the payment of money or the performance of an obligation and that do not in the aggregate materially detract from the value of
a property or asset to, or materially impair its use in the business of the Borrower.

 

6.02         
Indebtedness. Without the prior written consent of Lender, the Borrower shall not at any time create, incur, assume
or suffer to exist any indebtedness or financing on or related to all or any portion or all of the Real Property except as approved
in writing by Lender.

 

6.03         
Capital Distributions and Dividends. The Borrower shall not declare, make, pay or agree, become or remain liable
to make or pay, any dividends or other distribution of any nature (whether in cash, property, securities or other-wise) on account
of or in respect of any membership interests of the Borrower if an Event of Default or Potential Event of Default exists.

 

6.04         
Continuation of or Change in Business. The Borrower shall continue to engage in its business substantially as is
currently undertaken, and the Borrower shall not engage in any other business.

 

6.05         
Merger, Consolidation, Business Acquisitions. The Borrower shall not merge or agree to merge with or into or consolidate
with or into any other Person without the prior written consent of Lender.

 

    	17

    	 

    

 

6.06         
Margin Stock. The Borrower will not use the proceeds of the Loans, directly or indirectly, to purchase any “margin
stock” (within the meaning of Regulations U, G, T or X of the Board of Governors of the Federal Reserve System) or to extend
credit to others for purpose of purchasing or carrying, directly or indirectly, any margin stock.

 

6.07         
No Liens on Collateral. The Borrower shall not incur, create, assume or permit to exist, any Lien on all or any of
the Collateral assigned to Lender pursuant to this Agreement or any other Loan Document as security for the Note, without the prior
written consent of Lender.

 

6.08         
Change in Control of the Borrower. The Borrower will not permit a Change in Control (as defined below), without the
prior written consent of the Lender, which consent will not be unreasonably withheld. A Change of Control shall mean any one or
more of the following: (i) CRC shall own (beneficially or of record, directly or indirectly) less than 100.0% of
all membership interests of the Borrower, or (ii) at any time CRC shall fail to have the right to receive 100.0%
or more of all distributions made by the Borrower, including without limitation liquidating distributions.

 

ARTICLE
VII.

DEFAULTS 

 

7.01         
Events of Default. An Event of Default shall mean the occurrence or existence of one or more of the following events
or conditions (whatever the reason for such Event of Default and whether voluntary, involuntary or effected by operation of law):

 

(a)             
The Borrower shall fail to pay when due principal or interest on the Note, any Loan Fee, the Investment, any amount payable
pursuant to this Agreement or any Loan Document or any other amount due hereunder or under any agreement with Lender, and such
default shall continue ten (10) consecutive days from the date such payment is due; or

 

(b)            
Borrower shall be past due in an amount greater than $15,000 to any subcontractor or material supplier; or

 

(c)             
Borrower shall fail to construct any home to 90% completion within 9 months; or

 

(d)            
Borrower shall fail to reach 50% completion within 6 months; or

 

(e)             
Borrower ceases construction prior to 90% completion;

 

(f)             
The Borrower shall violate any prohibition on transfer or attempted transfer of all or any portion of the Real Property,
or shall violate any other provision related to the transfer or attempted transfer of all or any portion of the Real Property as
contained in this Agreement, except when such transfer immediately results in the Note related to this Agreement being brought
to a zero dollar balance; or

 

(g)            
Any representation, warranty or statement made by the Borrower or CRC under this Agreement or the Loan Documents or in any
financial statement, certificate, report, exhibit or document furnished by the Borrower or CRC to Lender pursuant to this Agreement
or the other Loan Documents shall prove to have been false or misleading in any material respect as of the time when made or becomes
false or misleading at any time thereafter; or

 

    	18

    	 

    

 

(h)            
The Borrower or CRC shall default in the performance or observance of any covenant contained in Article V or Article VI
hereof and such default shall continue thirty (30) consecutive days; or

 

(i)              
The Borrower subdivides any Lot without Lender’s prior written approval; or

 

(j)              
The Borrower or CRC shall default in the performance or observance of any other covenant, agreement or duty under the Loan
Documents, and such default shall continue thirty (30) consecutive days after receipt of written notice by the Borrower or CRC
from Lender of such default; or

 

(k)            
The Borrower or CRC (i) shall default (as principal or guarantor or other surety) in any payment of principal of or interest
on any obligation for borrowed money in excess of One Hundred Thousand Dollars ($100,000.00) beyond any period of grace with respect
thereto or, if such obligation or obligations is or are payable or repayable on demand, shall fail to pay or repay such obligation
or obligations when demanded or (ii) shall default in the observance of any covenant, term or condition contained in any agreement
or instrument by which such obligation or obligations is or are created, secured or evidenced if the effect of such default is
to cause, or to permit the holder or holders of such obligation or obligations (or a trustee or agent on behalf of such holder
or holders) to cause, all or part of such obligation or obligations to become due before its or their otherwise stated maturity;
or

 

(l)              
One or more judgments for the payment of money in excess of $10,000.00 shall have been entered against the Borrower or CRC,
which judgment or judgments shall have remained undischarged and unstayed for a period of thirty (30) consecutive days; or

 

(m)          
A writ or warrant of attachment, garnishment, execution, distraint or similar process shall have been issued against the
Borrower or CRC which shall have remained undischarged and unstayed for a period of thirty (30) consecutive days; or

 

(n)            
Lender shall have determined (which determination shall be conclusive) that a material adverse change has occurred in the
financial condition, assets, properties, management, operations or business of the Borrower or CRC or that the prospect of payment
or performance of any covenant, agreement or duty under this Agreement, or the other Loan Documents is impaired or that Lender
is insecure; or

 

(o)            
The death, incarceration or incapacitation of CRC; or

 

(p)            
A proceeding shall have been instituted in respect of the Borrower or CRC:

 

(i)              
seeking to have an order for relief entered in respect of the Borrower or CRC or seeking a declaration or entailing a finding
that Borrower or CRC is insolvent or a similar declaration or finding, or seeking dissolution, winding-up, charter revocation or
forfeiture, liquidation, reorganization, arrangement, adjustment, composition or other similar relief with respect to the Borrower,
CRC, their assets or their debts under any law relating to bankruptcy, insolvency, relief of debtors or protection of creditors,
termination of legal entities or any other similar law now or hereafter in effect, or

 

(ii)            
seeking appointment of a receiver, trustee, custodian, liquidator, assignee, sequestrator or other similar official for
the Borrower or CRC or for all or any substantial part of their property; or

 

    	19

    	 

    

 

(iii)          
any such proceedings shall result in the entry, making or grant of any such order for relief, declaration, funding, relief,
or appointment, or such proceeding shall remain undismissed and unstayed for a period of thirty (30) days or more; or

 

(q)            
 The Borrower or CRC shall become insolvent, shall become generally unable to pay their debts as they become due, shall
voluntarily suspend transaction of their business, shall make a general assignment for the benefit of creditors, shall institute
a proceeding described in Section (p)(i) or shall consent to any such order for relief, declaration, finding or relief described
therein, shall institute a proceeding described in Section (p)(ii) or shall consent to any such appointment or to the taking of
possession by any such official of all or any substantial part of its property whether or not any proceeding is instituted, shall
dissolve, wind-up or liquidate itself or any substantial part of its property, or shall take any action in furtherance of any of
the foregoing; or

 

(r)             
(i) a Termination Event with respect to a Plan shall occur, (ii) any person shall engage in any prohibited transaction involving
any Plan, (iii) an accumulated funding deficiency, whether or not waived, shall exist with respect to any Plan, (iv) any Borrower
or any ERISA Affiliate shall be in “Default” (as defined in Section 4219(c)(5) of ERISA) with respect to payments due
to a multiemployer plan resulting from any Borrower’s or any ERISA Affiliate’s complete or partial withdrawal (as described
in Section 4203 or 4205 of ERISA) from such Plan, or (v) any other event or condition shall occur or exist with respect to a Single
Employer Plan, except that no such event or condition shall constitute an Event of Default if it, together with all other events
or conditions at the time existing, would not subject Borrower to any tax, penalty, debt or liability which, alone or in the aggregate,
would have a materially adverse effect on Borrower.

 

7.02         
Consequences of an Event of Default. Upon the occurrence of an Event of Default, Lender may demand the unpaid principal
amount of any or all of the Note, interest accrued thereon and all other amounts owing by the Borrower or CRC hereunder or under
the Note or other Loan Documents to be immediately due and payable without presentment, demand, protest or further notice of any
kind, all of which are hereby expressly waived, and an action therefor shall immediately accrue.

 

7.03         
Set-Off. If the unpaid principal amount of the Note, interest accrued thereon or other amount owing by the Borrower
hereunder or under the Note shall have become due and payable (by demand or otherwise), Lender and the holder of any participation
in the Note shall each have the right, in addition to all other rights and remedies available to it, without notice to the Borrower,
to set-off against and to appropriate and apply to such due and payable amounts any Debt owing to, and any other funds held in
any manner for the account of, the Borrower by Lender or by such holder, including, without limitation, all funds in all deposit
accounts (whether time or demand, general or special, provisionally credited or finally credited, or otherwise) now or hereafter
maintained by the Borrower with Lender or such holder, and the Deposit. The Borrower hereby consents to and confirms the foregoing
arrangements and confirms each of Lender’s rights and such holder’s rights of banker’s lien and set-off. Nothing
in this Agreement shall be deemed a waiver or prohibition of or restriction on any of Lender’s rights or any such holder’s
rights of banker’s lien or set-off.

 

    	20

    	 

    

 

7.04         
Other Remedies. If one or more Events of Default shall occur, then Lender, in addition to any and all other rights
and remedies which Lender may then have hereunder, under the UCC, or under any other instrument, or which Lender may have at Law
or in equity or otherwise, may, at its option: (i) in the name of the Borrower, or otherwise, demand, collect, receive and receipt
for, compound, compromise, settle and give acquittance for, and prosecute and discontinue any suits or proceedings in respect to
any or all of the Collateral; (ii) take any action which Lender may deem necessary or desirable in order to realize on the Collateral,
including, the power to perform any contract, endorse in the name of the borrower without recourse to such Borrower any checks,
drafts, notes or other instruments or documents received in payment of or on account of the Collateral; (iii) enter upon the premises
where any of the Collateral not in the possession of Lender is located and take possession thereof and remove the same, with or
without judicial process; (iv) reduce their claim to judgment or foreclosure or otherwise enforce the security interests herein
granted and assigned, in whole or in part, by any available judicial procedure; (v) after notification, if any, provided for herein,
sell, lease, or otherwise dispose of, at the office of Lender, on the premises of the borrower, or elsewhere, all or any part of
the Collateral, in its then condition or following any commercially reasonable preparation or processing, and any such sale or
other disposition may be as a unit or in parcels, by public or private proceedings, and by way of one or more contracts (it being
agreed that the sale of any part of Collateral shall not exhaust Lender’s power of sale, but sales may be made from time
to time, and at any time, until all the Collateral has been sold or until all of the Borrower’ Indebtedness to Lender has
been fully paid and performed), and at any such sale it shall not be necessary to exhibit any of the Collateral; (vi) at its discretion,
retain the Collateral in satisfaction of the Note whenever the circumstances are such that Lender is entitled to do so under the
Code or otherwise; or (vii) exercise any and all other rights, remedies and privileges Lender may have under this Agreement or
under the Loan Documents.

 

7.05         
Non-Assumption of Liability. Nothing herein contained shall relieve the Borrower or CRC from performing any covenant,
agreement or obligation on the part of the Borrower or CRC to be performed under or in respect to any of the Collateral or from
any liability to any party or parties having an interest therein or impose any liability on Lender for the acts or omissions of
the Borrower or CRC in connection with any of the Collateral. Lender shall not assume or become liable for, nor shall it be deemed
or construed to have assumed or become liable for, any obligation of the Borrower or CRC with respect to any of the Collateral,
or otherwise, by reason of the grant to Lender of security interests in the Collateral.

 

7.06         
Cross-Default. Borrower and CRC acknowledge and agree that, at the discretion of the Lender, a default or Event of
Default under any Loan Document shall constitute a default or Event of Default under all other Loan Documents, notwithstanding
any term or terms of a Loan Document to the contrary.

 

ARTICLE
VIII.

MISCELLANEOUS

 

8.01         
Business Days. Except as otherwise provided herein, whenever any payment or action to be made or taken hereunder
or under the Note shall be stated to be due on a day which is not a Business Day, such payment or action shall be made or taken
on the next following Business Day and such extension of time shall be included in computing interest or fees, if any, in connection
with such payment or action.

 

8.02         
Records. The unpaid principal amount of the Note, the unpaid interest accrued thereon, the interest rate or rates
applicable to such unpaid principal amount, the duration of such applicability and the accrued and unpaid commitment fee shall
at all times be ascertained from the records of Lender which shall be conclusive absent manifest error.

 

8.03         
Amendments and Waivers. Lender and the Borrower, acting together, may from time to time enter into agreements amending,
modifying or supplementing this Agreement or the Note or any other documents or instruments pursuant to or in connection herewith
or changing the rights of Lender or of the Borrower hereunder or thereunder, and Lender may from time to time grant waivers or
consents to a departure from the due performance of the obligations of the Borrower hereunder or thereunder. Any such agreement,
waiver or consent must be in writing and shall be effective only to the extent specifically set forth in such writing. In the case
of any such waiver or consent relating to any provision hereof, any Event of Default or Potential Default so waived or consented
to shall be deemed to be cured and not continuing, but no such waiver or consent shall extend to any other or subsequent Event
of Default or Potential Default or impair any right consequent thereto.

    	21

    	 

    

 

8.04         
No Implied Waiver, Cumulative Remedies. No course of dealing and no delay or failure of Lender in exercising any
right, power or privilege under this Agreement, the Note, the Loan Documents or any other documents or instruments pursuant to
or in connection herewith shall affect any other or further exercise thereof or exercise of any other right, power or privilege
except as and to the extent that the assertion of any such right, power or privilege shall be barred by an applicable statute of
limitations; nor shall any single or partial exercise of any such right, power or privilege or any abandonment or discontinuance
of steps to enforce such a right, power or privilege preclude any other exercise thereof or of any other right, power or privilege.
The rights and remedies of Lender under this Agreement, the Note or any other documents or instruments pursuant to or in connection
herewith are cumulative and not exclusive of any rights or remedies which Lender would otherwise have.

 

8.05         
Notices. All notices, requests, demands, directions and other communications (collectively “notices”)
under the provisions of this Agreement or the Note shall be in writing (including telexed communication) unless otherwise expressly
permitted hereunder and shall be sent by first-class or first-class express mail, or by telex with confirmation in writing mailed
first-class, in all cases with charges prepaid, and any such properly given notice shall be effective when received. All notices
shall be sent to the party in question at the address stated in Section 1.01 or in accordance with the last unrevoked written direction
from such party to the other parties.

 

8.06         
Expenses; Taxes, Attorneys’ Fees. The Borrower agree to pay or cause to be paid and to save Lender harmless
against liability for the payment of all reasonable out-of-pocket expenses including, but not limited to, fees and expenses of
counsel for Lender, incurred by Lender from time to time (i) relating to any requested amendments, waivers or consents to this
Agreement, the Note or any such documents or instruments and, (ii) arising in connection with Lender’s enforcement or preservation
of rights under this Agreement and the Note or any such documents or instruments including, but not limited to, such expenses as
may be incurred by Lender in the collection of the outstanding Note. The Borrower agree to pay all stamp, document, transfer, recording
or filing taxes or fees and similar impositions now or hereafter determined by Lender to be payable in connection with this Agreement,
the Note or any other documents, instruments or transactions pursuant to or in connection herewith, and the Borrower agree to save
Lender harmless from and against any and all present or future claims, liabilities or losses with respect to or resulting from
any omission to pay or delay in paying any such taxes, fees or impositions. In the event of a determination adversely to the Borrower
of any action at law or suit in equity in relation to this Agreement, the Note, or any Loan Document, the Borrower will pay, in
addition to all other sums which the Borrower may be required to pay, a reasonable sum for attorney’s fees incurred by Lender
or the holder of such Note in connection with such action or suit. All payments due from the Borrower under this Section 8.06 shall
be added to and become part of the Note, as applicable, until paid in full.

 

8.07         
Severability. The provisions of this Agreement are intended to be severable. If any provision of this Agreement shall
be held invalid or unenforceable in whole or in part in any jurisdiction such provision shall, as to such jurisdiction, be ineffective
to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability thereof in
any other jurisdiction or the remaining provisions hereof in any jurisdiction.

 

8.08         
Governing Law. This Agreement shall be deemed to be a contract under the laws of the State of Georgia, and for all
purposes shall be governed by and construed and enforced in accordance with the laws of said State, without regard to the principles
of conflicts of laws thereof.

 

    	22

    	 

    

 

8.09         
Prior Understandings. This Agreement supersedes all prior understandings and agreements, whether written or oral,
among the parties relating to the transactions provided for herein.

 

8.10         
Duration; Survival. All representations and warranties of the Borrower and CRC contained herein or made in connection
herewith shall survive the making of and shall not be waived by the execution and delivery of this Agreement or the Note, any investigation
by Lender, or the making of any of the Loan, and Lender may hereby rely upon same. Notwithstanding termination of this Agreement
or an Event of Default, all covenants and agreements of the Borrower and CRC shall continue in full force and effect from an after
the date of this Agreement so long as the Borrower and CRC may borrow hereunder and until payment in full of the Note, interest
thereon, Loan Fees and all other obligations of the Borrower and CRC under this Agreement or the Note. Without limitation, it is
understood that all obligations of the Borrower and CRC to make payments to or indemnify Lender shall survive the payment in full
of the Note and of all other obligations of the Borrower and CRC thereunder and hereunder.

 

8.11         
Counterparts. This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute
but one and the same instrument.

 

8.12         
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Lender, the Borrower, and
its successors and assigns, and CRC and his heirs, successors and assigns, except that the Borrower and CRC may not assign or transfer
any of their rights hereunder without the prior written consent of Lender. Except to the extent otherwise required by the context
of this Agreement, the word “Lender” where used in this Agreement shall mean and include any holder of the Note originally
issued to Lender, and each such holder of the Note shall be bound by and have the benefits of this Agreement the same as if such
holder had been a signatory hereto.

 

8.13         
 Participation. Without notice to the Borrower or CRC, Lender may participate, sell or assign all or part of the
credit facilities evidenced by the Note and, at any time and from time to time, all information on the Borrower and CRC may be
provided to any potential purchaser of or participant in the Note, any governmental authority, Lender’s auditory and professional
advisors, any person or entity which in the ordinary course of its business makes credit reference inquiries, and as may be necessary
or advisable for the preservation of Lender’s rights.

 

8.14         
Condemnation Matters. Any condemnation of the Land, whether through a release of deed to secure debt, recording of
easements or otherwise, shall be subject to Lender’s prior approval. All proceeds from any condemnation shall be applied
by Lender to the outstanding principal balance of the Note. Failure to comply with the terms of this Section shall constitute an
Event of Default under Section 7.01.

 

8.15         
Jurisdiction; Waiver of Trial by Jury. The Borrower acknowledges and unconditionally and irrevocably agrees and consents:

 

(a)             
To the jurisdiction of courts of the Gloucester County, Georgia, and to the jurisdiction of and venue in any federal court
sitting in the District of Georgia, for, with respect to, or concerning any suit, action, or other legal proceeding pertaining
to or in any way or manner concerning, arising out of, or relating to the collection or enforcement of the Note, any of Lender’s
rights, remedies, or recourses with respect to the Note, this Agreement, or any provision or provisions of any other Loan Document;
and

 

    	23

    	 

    

 

(b)            
That service of any court paper, including, without limitation, any process, complaint, subpoena, answer, reply, response,
motion, order, or notice, may be effected on the Borrower by mail, addressed and mailed as provided herein or in such other manner
as may be provided under applicable laws or rules of the State of Georgia or the District of the State of Georgia. However, nothing
contained herein shall prevent or limit Lender from bringing or instituting any suit, action, or other legal proceeding or exercising
any of its rights, remedies, or recourses against any security for the Note or against the Borrower or CRC, or any property of
the Borrower or CRC, within any other state or jurisdiction. Initiating, bringing, or instituting any such suit, action, or proceeding
in any other state or jurisdiction shall in no way or manner constitute a waiver or release of the provision and agreement herein
that the laws of the State of Georgia shall govern the validity of this Agreement, the construction of its terms, and the interpretation
of the rights, powers, duties, and obligations of the parties upon whom this Agreement shall be binding or the submission by the
Borrower or CRC to personal jurisdiction within the State of Georgia. The means and manner of obtaining personal jurisdiction and
perfecting service of process contained herein are not intended to be and shall not be construed to be exclusive, but are and shall
be cumulative and in addition to all other means and manner of obtaining personal jurisdiction and perfecting service of process
as now or hereafter provided by the laws of the State of Georgia or the District of the State of Georgia.

 

(c)             
BY EXECUTION OF THIS AGREEMENT, The Borrower AND CRC MUTUALLY, KNOWINGLY,
WILLINGLY, AND VOLUNTARILY WAIVE AND RELEASE ANY AND ALL RIGHTS TO TRIAL BY JURY, AND SHALL SEEK A JURY TRIAL IN ANY LAWSUIT, PROCEEDING,
COUNTERCLAIM, OR ANY OTHER ACTION OR LITIGATION PROCEEDING BASED UPON OR ARISING OUT OF THE LOAN TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT. The Borrower AND CRC FURTHER WAIVE AND RELEASE
ANY AND ALL RIGHTS TO CONSOLIDATE ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED, WITH ANY OTHER ACTION IN WHICH A JURY TRIAL
HAS NOT BEEN WAIVED. THIS SUBPARAGRAPH AND THE PROVISIONS HEREIN CONTAINED CONSTITUTE AN IRREVOCABLE WAIVER AND RELEASE.

 

 

[Signature page to follow]

 

 

    	24

    	 

    

 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be duly and properly executed as of the date first above written.

 

The
Borrower:

 

Southeastern Land
Developers, LLC 

 

By: /s/ Charles
R. Rich                      

Name: Charles
R. Rich, as its Manager

 

 

 

CHARLES R. RICH
INDIVIDUALLY:

 

/s/ Charles
R. Rich                               

Charles R. Rich

 

 

LENDER:

 

 

SHEPHERD’S
FINANCE, LLC

 

 

By: /s/ Dan
Wallach                                  

Name: Dan Wallach

Title: Chief Executive
Officer

 

 

The Guarantor joins
in the execution of this Agreement to evidence their agreement to the applicable provisions of this Agreement.

 

 

GUARANTOR:

 

 

/s/ Charles
R. Rich                                      

Charles R. Rich

 

 

 

    	25

    	 

    

 

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

 

 

    	26

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