SEC Contract Filing

Filing Date: 2015-12-31

Document Content:
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<TYPE>EX-10
<SEQUENCE>4
<FILENAME>ex10-3.htm
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0">Exhibit 10.3</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">AMENDMENT NO. 3 TO THE AMENDED
AND RESTATED</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">LIMITED LIABILITY COMPANY
AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">OF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">SHEPHERD&rsquo;S FINANCE,
LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">INCREASING THE AUTHORIZED
AMOUNT OF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">SERIES B CUMULATIVE REDEEMABLE
PREFERRED UNITS</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In accordance with Section
3.05 and Article IX of the Amended and Restated Limited Liability Company Agreement, dated as of March 29, 2012, as amended (the
&ldquo;<U>Operating Agreement</U>&rdquo;), of Shepherd&rsquo;s Finance, LLC (the &ldquo;<U>Company</U>&rdquo;), the Operating Agreement
is hereby amended by this Amendment No. 3 thereto (this &ldquo;<U>Amendment</U>&rdquo;) to increase the authorized amount of Series
B Cumulative Redeemable Preferred Units (the &ldquo;<U>Preferred Units</U>&rdquo;) to a total of 30 authorized Preferred Units
of membership interest in the Company, having the rights, preferences, powers, privileges, restrictions, qualifications, and limitations
set forth below. Certain terms used herein are defined in Section&nbsp;9 of <U>Exhibit&nbsp;I</U> hereto. Capitalized terms used
and not otherwise defined herein shall have the meanings set forth in the Operating Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company and
Investor&rsquo;s Mark Acquisitions, LLC (&ldquo;<U>IMA</U>&rdquo;) executed that certain Series B Cumulative Redeemable Preferred
Unit Purchase Agreement, dated December 31, 2014, pursuant to which the Company agreed to issue, and IMA agreed to purchase, 10
Preferred Units, on the terms set forth therein;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company and
IMA executed that certain Series B Cumulative Preferred Unit Purchase Agreement, dated December 28, 2015, pursuant to which the
Company agreed to issue, and IMA agreed to purchase, up to an additional aggregate 5 Preferred Units, on the terms set forth therein;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Board of Managers
of the Company has authorized and the Members hereby agree that an additional 20 Preferred Units of the Company are hereby authorized
to be issued to IMA or new investors (&ldquo;<U>Purchasers</U>&rdquo;) pursuant to the terms hereof; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">WHEREAS, pursuant to Section
3.05 of the Operating Agreement, the Company is authorizing an additional 20 Preferred Units to the Purchasers, with the rights,
powers, privileges, restrictions, qualifications, and limitations as set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">NOW THEREFORE, in consideration
of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 1. <U>Authorization of Preferred Units</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to Section 3.05
of the Operating Agreement, the Company hereby agrees to authorize 20 Preferred Units to one or more Purchasers. The Preferred
Units will have the rights, powers, privileges, restrictions, qualifications, and limitations specified in <U>Exhibit&nbsp;I</U>
hereto.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Section 2. <U>Amendment to Operating Agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to Section 14.09
of the Operating Agreement, the Members holding at least 60% of the outstanding Voting Units hereb