SEC Contract Filing

Filing Date: 2015-11-09

Document Content:
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<TYPE>EX-10
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<FILENAME>ex10-2.htm
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit 10.2</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>PROMISSORY
NOTE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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 <TD STYLE="width: 11%; border-top: Black 2.25pt double; border-bottom: Black 2.25pt double; text-align: justify; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Borrower:</B></FONT></TD>
 <TD STYLE="width: 42%; border-top: Black 2.25pt double; border-bottom: Black 2.25pt double">
 <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Eclipse Partners II, LLC</B></P>
 <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>444 Gulf of Mexico Dr. #101</B></P>
 <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Longboat Key, FL 34228</B></P></TD>
 <TD STYLE="width: 10%; border-top: Black 2.25pt double; border-bottom: Black 2.25pt double; text-align: justify; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Lender:</B></FONT></TD>
 <TD STYLE="width: 37%; border-top: Black 2.25pt double; border-bottom: Black 2.25pt double">
 <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Shepherd's Finance, LLC</B></P>
 <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>12627 San Jose Blvd, Ste. 203</B></P>
 <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Jacksonville, FL 32223</B></P>
 <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>(302) 752-2688</B></P></TD></TR>
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 <TD STYLE="width: 42%; text-align: justify; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Principal Amount:&nbsp;&nbsp;$2,408,000.00</B></FONT></TD>
 <TD STYLE="width: 22%; text-align: justify; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Initial Rate:&nbsp;&nbsp;11.94%</B></FONT></TD>
 <TD STYLE="width: 36%; text-align: right; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Date of Note:&nbsp;&nbsp;November 4, 2015</B></FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PROMISE TO PAY. </B>Eclipse Partners
II, LLC (&quot;Borrower&quot;) promises to pay to Shepherd's Finance, LLC (&quot;Lender&quot;), or order, in lawful money of the
United States of America, on demand, but in no event later than November 30, 2017 (&ldquo;Maturity Date&rdquo;), the principal
amount of Two Million Four Hundred Eight Thousand and 00/100 dollars ($2,408,000.00) or so much as may be advanced under the Loan
Documents from time to time, together with interest on the unpaid outstanding principal balance of each advance. Interest shall
be calculated from the date of each advance until repayment of each advance. Lender shall disburse the funds in accordance with
the Construction Loan Agreement and other Loan Documents.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PAYMENT. </B>Borrower will pay this
loan in full immediately upon Lender's demand. Borrower will pay by means of an ACH initiated by Lender regular monthly payments
of all accrued unpaid interest due as of each payment date, beginning December 15, 2015 with all subsequent interest payments to
be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied
first to any accrued unpaid interest; then to any unpaid collection costs; and then to principal. Borrower will pay Lender at Lender's
address shown above or at such other place as Lender may designate in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>LATE FEE</B>. All scheduled payments
shall be subject to a fifteen-day (15) grace period. In the event any payment is not made as and when due, the Lender will impose
a late charge equal to the greater of five percent (5.00%) of the delinquent amount or twenty-five dollars ($25.00).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>VARIABLE INTEREST RATE.</B> The interest
rate on this Note is subject to change from time to time based on changes in an independent index which is the Shepherd's Finance,
LLC Cost of Funds plus the Rate Adder. Lender&rsquo;s Cost of Funds (the &quot;Index&quot;), 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 fu