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DocuSign Envelope ID: E51FEDB4-DE67-4E2D-A34B-153D3BEADB7E <br /> LOAN AND SECURITY AGREEMENT <br /> THIS Loan and Security Agreement (the "Agreement") is dated as of February 25, 2019 and is <br /> by and between Boro Beverage Company, LLC, a North Carolina limited liability company (the <br /> "Borrower") and the Orange County Small Business Loan Program Company, a North Carolina <br /> nonprofit corporation (the "Company") <br /> The Borrower has applied for a loan from the Company, and the Company has agreed to make <br /> the loan. This Agreement sets out the terms of the loan, including the terms for payments and the <br /> security for the 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 Company will loan to the Borrower the sum of [$25,000.00] (the "Loan"). The Company is <br /> making this loan by giving,the Borrower a check for the full amount of the loan, reduced by the <br /> Company's loan fee of[$250]. <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 form of Exhibit A, which the Borrower will <br /> execute and deliver to the Company in 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 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, Borrower <br /> grants to the Company a security interest in the "Collateral" as described in Exhibit B. This <br /> Agreement is intended as, and constitutes, a security agreement within the meaning of the North <br /> Carolina Uniform Commercial Code (UCC) Financing Statement, with respect to the Collateral. <br /> The Borrower will execute and deliver to the Company UCC Financing Statements and such other <br /> documents as the Company may reasonably deem appropriate to secure the benefits of this <br /> Agreement. <br /> 5. To further secure the Borrower's obligations to the Company under the Note and this Loan <br /> Agreement, Carly Erickson shall execute a personal guaranty in substantially the form of Exhibit <br /> 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 /> 6.1 The Borrower fails to pay when due any amounts payable under the Note; <br /> 6.2 The Borrower breaches or fails to perform or observe any term, condition or covenant of this <br /> Agreement or the Note on its part to be observed or performed; <br /> 6.3 The Borrower moves its principal place of business outside Orange County; <br /> Page 1 of 7 <br />