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DocuSign Envelope ID:56COB206-26C6-403B-9D33-D169069A82E4 <br /> LOAN AND SECURITY AGREEMENT <br /> THIS Loan and Security Agreement (the "Agreement") is dated as of April 13,2015, and is <br /> by and between Mark A. Holt, doing business as MasterPeace Barber Shop, a North Carolina <br /> sole proprietorship (the 'Borrower") and the Orange County Small Business Loan Program <br /> Company, a North Carolina nonprofit corporation (the "Company") <br /> The Borrower has applied for a loan from the Company, and the Company has agreed to <br /> make the loan. This Agreement sets out the terms of the loan, including the terms for <br /> payments and the security for the loan. <br /> NOW, THEREFORE, in consideration of the mutual promises set out in this Agreement, <br /> the parties agree as follows: <br /> PART ONE-AGREEMENT TO MAKE AND REPAY THE LOAN <br /> 1. The Company will loan to the Borrower the sum of fifteen thousand dollars [$15,000] (the <br /> "Loan"). The Company is making this loan by giving the Borrower a check for the full <br /> amount of the loan, reduced by the Company's loan fee of one hundred and fifty dollars <br /> [$150]. <br /> 2. The Borrower will repay the loan. The Borrower's obligation to repay the Loan will be <br /> represented by a promissory note (the "Note) in substantially the form of Exhibit A, which <br /> the Borrower will execute and deliver to the Company in exchange for the Loan proceeds. <br /> The Note will set out the 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 <br /> described in its application to the Company for this Loan. <br /> PART TWO - SECURITY FOR THE LOAN <br /> 4. To secure its obligations to the Company under the Note and this Loan Agreement, <br /> Borrower grants to the Company a security interest in the "Collateral" as described in <br /> Exhibit B. This Agreement is intended as, and constitutes, a security agreement within the <br /> meaning of the North Carolina Uniform Commercial Code (UCC) Financing Statement, <br /> with respect to the Collateral. The Borrower will execute and deliver to the Company UCC <br /> Financing Statements and such other documents as the Company may reasonably deem <br /> appropriate to secure the benefits of this Agreement. <br /> 5. To further secure the Borrower's obligations to the Company under the Note and this Loan <br /> Agreement, Mark A. Holt shall each execute a personal guarantee in substantially the form <br /> of Exhibit C. <br /> Page 1 of 9 <br />