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LOAN AND SECURITY AGREEMENT <br />Page 1 of 6 <br /> <br /> THIS Loan and Security Agreement (the "Agreement") is dated as of October 12, 2018,and is <br />by and between J. BEAU BENNETT, LLC,a North Carolina company(the "Borrower") and the <br />Orange County (the “Fund”) <br /> The Borrower has applied for aloan from the Fund, and the Fundhas agreed to make the loan. <br />This Agreement sets out the terms of the loan, including the terms for payments and the security for the <br />loan. <br /> NOW, THEREFORE, in consideration of the mutual promises set out in this Agreement, the <br />parties agree as follows: <br />PART ONE –AGREEMENT TO MAKE AND REPAY THE LOAN <br />1.The Fundwill loan to the Borrower the sum of [$20,000.00](the "Loan"). The Fundis making this <br />loan by giving the Borrower a check for the full amount of the loan, reduced by the Fund’s loan fee <br />of [$200.00]. <br />2.The Borrower will repay the loan. The Borrower’s obligation to repay the Loan will be represented <br />by a promissory note (the “Note) in substantially the formof Exhibit A, which the Borrower will <br />executeand deliver to the Fundin exchange for the Loan proceeds. The Note will set out the <br />terms of repayment, including payment dates and interest rates. <br />3.The Borrower will use the Loan for the purposes of its business (the “Business”) as described in its <br />application to the Fundfor this Loan. <br />PART TWO -SECURITY FOR THE LOAN <br />4.To secure its obligations to the Fundunder the Note and this Loan Agreement, Borrower grantsto <br />the Funda security interest in the “Collateral” as described in Exhibit B. This Agreement is <br />intended as, and constitutes, a security agreement within the meaning of the North Carolina <br />Uniform Commercial Code(UCC)Financing Statement, with respect to the Collateral. The <br />Borrower will execute and deliver to the FundUCCFinancing Statements and such other <br />documents as the Fundmay reasonably deem appropriate to secure the benefits of this <br />Agreement. <br />5.To further secure the Borrower’s obligations to the Fundunder the Note and this Loan Agreement, <br />J. Beau Bennett and Lauren E. Bennett shall execute a personal guaranty in substantially the <br />form of Exhibit C. <br />PART THREE -EVENTS OF DEFAULT <br />6.Events of Default –The happening of any of the following events shall constitute a default under <br />this Agreement (these are the “Events of Default”): <br />6.1The Borrower fails to pay when due any amounts payable under the Note; <br />6.2The Borrower breaches or fails to perform or observe any term, condition or covenant of this <br />Agreement orthe Note on its part to be observed or performed; <br />6.3The Borrower moves its principal place of business outside Orange County; <br />6.4The Borrower sells all or substantially all of the assets of the Business; <br />DocuSign Envelope ID: 71A540D4-95BC-4724-9E65-6A85543C95A9