2018-666-E Economic Dev - Boro Beverage Company loan agreement

Browse Search

LOAN AND SECURITY AGREEMENT Page 1 of 6 THIS Loan and Security Agreement (the "Agreement") is dated as of October 3, 2018,and is by and between BORO BEVERAGE COMPANY, LLC,a North Carolina limited liability company(the "Borrower") and Orange County (the “Fund”) The Borrower has applied for a loan from the Fund, and the Fundhas agreed to make the loan. This Agreement sets out the terms of the loan, including the terms for payments and the security for the loan. NOW, THEREFORE, in consideration of the mutual promises set out in this Agreement, the parties agree as follows: PART ONE –AGREEMENT TO MAKE AND REPAY THE LOAN 1.The Fundwill loan to the Borrower the sum of [$2,000.00](the "Loan"). TheFundis making this loan by giving the Borrower a check for the full amount of the loan, reduced by the Fund’s loan fee of [$20.00]. 2.The Borrower will repay the loan. The Borrower’s obligation to repay the Loan will be represented by a promissory note (the “Note) in substantially the formof Exhibit A, which the Borrower will execute and deliver to the Fundin exchange for the Loan proceeds. The Note will set out the terms of repayment, including payment dates and interest rates. 3.The Borrower will use the Loan for the purposes of its business (the “Business”) as described in its application to the Fundfor this Loan. PART TWO -SECURITY FOR THE LOAN 4.To secure its obligations to the Fundunder the Note and this Loan Agreement, Borrower grantsto the Funda security interest in the “Collateral” as described in Exhibit B. This Agreement is intended as, and constitutes, a security agreement within the meaning of the North Carolina Uniform Commercial Code(UCC)Financing Statement, with respect to the Collateral. The Borrower will execute and deliver to the FundUCCFinancing Statements and such other documents as the Fundmay reasonably deem appropriate to secure the benefits of this Agreement. 5.To further secure the Borrower’s obligations to the Fundunder the Note and this Loan Agreement, Carly Erickson shall execute a personal guaranty in substantially the form of Exhibit C. PART THREE -EVENTS OF DEFAULT 6.Events of Default –The happening of any of the following events shall constitute a default under this Agreement (these are the “Events of Default”): 6.1The Borrower fails to pay when due any amounts payable under the Note; 6.2The Borrower breaches or fails to perform or observe any term, condition or covenant of this Agreement orthe Note on its part to be observed or performed; 6.3The Borrower moves its principal place of business outside Orange County; 6.4The Borrower sells all or substantially all of the assets of the Business; DocuSign Envelope ID: EB3192FE-16C4-46A8-BD81-BD425A584053