Document:

CNL STRATEGIC CAPITAL 8-K

 

Exhibit 10.2

 

 

 

Revolving Credit NOTE

 

	$50,000,000.00	August 24, 2022

Orlando, Florida

 

ON OR BEFORE August 23rd,
2023 (the “Termination Date”), the undersigned, CNL STRATEGIC CAPITAL B, INC., a Delaware corporation (“Maker”),
promises to pay to the order of First Horizon Bank, a Tennessee banking corporation, having a place of business in 315 E. Robinson Street,
Suite 350, Orlando, Florida 32801 (“Bank”), the principal sum of FIFTY MILLION AND NO/100 DOLLARS ($50,000,000.00), value received,
together with interest from date until maturity, upon disbursed and unpaid principal balances.

 

The “Termination Date”
may be extended one or more times pursuant to the provisions of that certain Revolving Loan Agreement, dated of even date, among the Maker,
the Bank and certain guarantors therein mentioned and described, as said agreement may be amended, modified, or restated from time to
time (the “Loan Agreement”); and, if so extended, such extended date shall thereupon constitute the Termination Date. Capitalized
terms not otherwise defined herein shall have the meaning ascribed to such terms in the Loan Agreement.

 

This Note shall be payable
and bear interest at the rate as set forth in the Loan Agreement, the terms of which are incorporated herein by reference.

 

Any amounts not paid when
due hereunder (whether by acceleration or otherwise) shall bear interest after maturity at the Default Rate.

 

For any payment which is not
made within ten (10) days of the due date for such payment, the Maker shall pay a late fee. The late fee shall equal five percent (5%)
of the total amount due for such payment.

 

This Note is secured by the
Security Documents and may now or hereafter be secured by other mortgages, trust deeds, assignments, security agreements, or other instruments
of pledge or hypothecation.

 

All installments of interest,
and the principal hereof, are payable at the office of First Horizon Bank, a Tennessee banking corporation, and having a place of business
at 315 E. Robinson Street, Suite 350, Orlando, Florida 32801, or at such other place as the holder may designate in writing, in lawful
money of the United States of America, which shall be legal tender in payment of all debts and dues, public and private, at the time of
payment.

 

     

     

    

 

If the Maker shall fail to
make payment of any installment of principal or interest, when due, or upon any default in the terms and provisions of any of the Security
Documents, or upon any default in any other mortgage, trust deed, security agreement, or other instrument of pledge or hypothecation which
now or hereafter secures the payment of the indebtedness evidenced hereby, or upon the occurrence of any Event of Default under the Loan
Agreement, or upon the death or dissolution of the Maker or any guarantor (or if the Maker or any guarantor is a partnership, the death
or dissolution of any general partner thereof), or upon any default in the payment or performance of any other indebtedness, liability
or obligation now or hereafter owed by the Maker to the holder hereof, then and in any such event, the entire unpaid principal balance
of the indebtedness evidenced hereby, together with all interest then accrued, shall, at the absolute option of the holder hereof, at
once become due and payable, without demand or notice, the same being expressly waived and Bank may exercise any right, power or remedy
permitted by law or equity, or as set forth herein or in the Loan Agreement or any other Loan Document.

 

If this Note is placed in
the hands of an attorney for collection, by suit or otherwise, or to protect the security for its payment, or to enforce its collection,
or to represent the rights of the Bank in connection with any loan documentation executed in connection herewith, or to defend successfully
against any claim, cause of action or suit brought by the Maker against the Bank, the Maker shall pay on demand all costs of collection
and litigation (including court costs), together with a reasonable attorney’s fee. These include, but are not limited to, the Bank’s reasonable
attorney’s fees and legal expenses, whether or not there is a lawsuit, including attorney’s fees for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction) and appeals.

 

To the extent permitted by
applicable law, the Bank reserves a right of setoff in all the Maker’s or Guarantor’s accounts with the Bank (whether checking,
savings, or some other account) in the event of a default. This includes all accounts the Maker may open in the future. However, this
does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Upon default, the Maker
authorizes the Bank, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and
all such accounts, and, at the Bank’s option, to administratively freeze all such accounts to allow the Bank to protect the Bank’s charge
and setoff rights provided in this paragraph.

 

The undersigned agrees to
furnish a current financial statement upon the request of the Bank from time to time, and further agrees to execute and deliver all other
instruments and take such other actions as the Bank may from time to time reasonably request in order to carry out the provisions and
intent hereof.

 

To help the government fight
the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record
information that identifies each business entity that opens an account or obtains a loan. What this means to Maker: When Maker opens an
account, or obtains a loan, the Bank will ask for Federal Tax Identification Number, physical street address, full legal name of the Maker
and other information that will allow the Bank to identify Maker. The Bank may also ask Maker to provide copies of certain documents that
will aid in confirming this information. Failure to provide the required information will result in a violation of Federal law and will
constitute a default hereunder.

 

    2 

     

    

 

The Maker and any endorsers
or guarantors hereof waive protest, demand, presentment, and notice of dishonor, and agree that this Note may be extended, in whole or
in part, without limit as to the number of such extensions or the period or periods thereof, without notice to them and without affecting
their liability thereon. Maker agrees that borrowers, endorsers, guarantors and sureties may be added or released without notice and without
affecting Maker’s liability hereunder. The liability of Maker shall not be affected by the failure of Bank to perfect or otherwise obtain
or maintain the priority or validity of any security interest in any collateral. The liability of Maker shall be absolute and unconditional
and without regard to the liability of any other party hereto.

 

It is the intention of the
Bank and the Maker to comply strictly with applicable usury laws; and, accordingly, in no event and upon no contingency shall the holder
hereof ever be entitled to receive, collect, or apply as interest any interest, fees, charges or other payments equivalent to interest,
in excess of the maximum effective contract rate which the Bank may lawfully charge under applicable statutes and laws from time to time
in effect; and in the event that the holder hereof ever receives, collects, or applies as interest any such excess, such amount which,
but for this provision, would be excessive interest, shall be applied to the reduction of the principal amount of the indebtedness hereby
evidenced; and if the principal amount of the indebtedness evidenced hereby, all lawful interest thereon and all lawful fees and charges
in connection therewith, are paid in full, any remaining excess shall forthwith be paid to the Maker, or other party lawfully entitled
thereto. All interest paid or agreed to be paid by the Maker shall, to the maximum extent permitted under applicable law, be amortized,
prorated, allocated and spread throughout the full period until payment in full of the principal so that the interest hereon for such
full period shall not exceed the maximum amount permitted by applicable law. Any provision hereof, or of any other agreement between the
holder hereof and the Maker, that operates to bind, obligate, or compel the Maker to pay interest in excess of such maximum effective
contract rate shall be construed to require the payment of the maximum rate only. The provisions of this paragraph shall be given precedence
over any other provision contained herein or in any other agreement between the holder hereof and the Maker that is in conflict with the
provisions of this paragraph.

 

This Note shall be governed
and construed according to the statutes and laws of the State of Florida from time to time in effect, except to the extent that applicable
federal law, Chapter 658, Florida Statutes, and Section 687.12, Florida Statutes, may permit the charging of a higher rate of interest
than Chapter 687, Florida Statutes, in which event such applicable federal law and/or Florida statutes, as amended and supplemented from
time to time shall govern and control the maximum rate of interest permitted to be charged hereunder; it being intended that, as to the
maximum rate of interest which may be charged, received, and collected hereunder, those applicable statutes and laws, whether state or
federal, from time to time in effect, which permit the charging of a higher rate of interest, shall govern and control; provided, always,
however, that in no event and under no circumstances shall the Maker be liable for the payment of interest in excess of the maximum rate
permitted by such applicable law, from time to time in effect.

 

    3 

     

    

 

This Note evidences a revolving
line of credit. Advances under this Note may be requested in writing by the Maker or by an authorized person in accordance with the terms
of the Loan Agreement. The Bank may, but need not, require that all oral requests be confirmed in writing. All communications, instructions,
or directions by telephone or otherwise to the Bank are to be directed to the Bank at the Bank’s address. The Maker agrees to be liable
for all sums either: (a) advanced in accordance with the instructions of an authorized person, or (b) credited to any of the Maker’s accounts
with the Bank. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by the Bank’s
internal records, including daily computer print-outs. The Bank will have no obligation to advance funds under this Note if: (a) the
Maker or any guarantor is in default under the terms of this Note or any agreement that the Maker or any guarantor has with the Bank,
including any agreement made in connection with the signing of this Note; (b) the Maker or any guarantor ceases doing business or is insolvent;
(c) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor’s guarantee of this Note or any other
loan with the Bank; or (d) the Maker has applied funds provided pursuant to this Note for purposes other than those authorized by the
Bank.

 

Bank is hereby authorized
to disclose any financial or other information about Maker to any regulatory body or agency having jurisdiction over Bank and to any present,
future or prospective participant or successor in interest in any loan or other financial accommodation made by Bank to Maker. The information
provided may include, without limitation, amounts, terms, balances, payment history, return item history and any financial or other information
about Maker. However, subject to applicable law, Bank shall use reasonable efforts to protect the confidentiality of the terms and conditions
of the Loan in all other respects.

 

The invalidity or unenforceability
of any one or more provisions of this Note shall not render any other provision invalid or unenforceable. In lieu of any invalid or unenforceable
provision, there shall be added automatically a valid and enforceable provision as similar in terms to such invalid or unenforceable provision
as may be possible.

 

The covenants, conditions,
waivers, releases and agreements contained in this Note shall bind, and the benefits thereof shall inure to, the parties hereto and their
respective heirs, executors, administrators, successors and assigns; provided, however, that this Note cannot be assigned by Maker without
the prior written consent of Bank, and any such assignment or attempted assignment by Maker without consent shall be void and of no effect
with respect to Bank.

 

Bank may from time to time
sell or assign, in whole or in part, or grant participations in, the Loan, this Note and/or the obligations evidenced thereby. The holder
of any such sale, assignment or participation, if the applicable agreement between Bank and such holder so provides, shall be: (a) entitled
to all of the rights, obligations and benefits of Bank; and (b) deemed to hold and may exercise the rights of setoff or banker’s
lien with respect to any and all obligations of such holder to Maker, in each case as fully as though Maker were directly indebted to
such holder. Bank may in its discretion give notice to Maker of such sale, assignment or participation; however, the failure to give such
notice shall not affect any of Bank’s or such holder’s rights hereunder.

 

Maker irrevocably appoints
itself (if an individual) and each and every member and/or officer of Maker (if an entity) as its attorneys upon whom may be served, by
certified mail at the address set forth in the Loan Agreement, or such other address as may be directed by Maker, in writing, any notice,
process or pleading in any action or proceeding against it arising out of or in connection with this Note or any other Loan Document;
and Maker hereby consents that any action or proceeding against it be commenced and maintained in any state or federal court sitting in
Orange County, Florida, by service of process on any such owner, partner and/or officer; and Maker agrees that such courts of the state
shall have jurisdiction with respect to the subject matter hereof and the person of Maker and all collateral securing the obligations
of Maker. Maker agrees not to assert any defense to any action or proceeding initiated by Bank based upon improper venue or inconvenient
forum.

 

    4 

     

    

 

UNLESS EXPRESSLY PROHIBITED
BY APPLICABLE LAW, MAKER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS ARISING OUT OF THIS NOTE OR ANY OF THE LOAN
DOCUMENTS EXECUTED IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP BETWEEN THE MAKER AND BANK. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR BANK TO MAKE THE LOAN AND ENTER INTO THIS AGREEMENT. FURTHER, THE MAKER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT
OF BANK, NOR BANK’S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BANK WOULD NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT OF
JURY TRIAL PROVISION. NO REPRESENTATIVE OR AGENT OF BANK, NOR BANK’S COUNSEL, HAS THE AUTHORITY TO WAIVE, CONDITION OR MODIFY THIS
PROVISION.

 

    5 

     

    

 

THE PROPER FLORIDA DOCUMENTARY
STAMP TAX HAS BEEN PAID ON THIS NOTE IN THE AMOUNT OF TWO THOUSAND FOUR HUNDRED AND FIFTY AND 00/100 DOLLARS ($2,450.00). 

 

	 	 	 	CNL STRATEGIC CAPITAL B, INC.,
	ATTEST	 	a Delaware corporation
	 	 	 	 	 
	By: 	/s/ Dale Burket		By:	/s/ Tammy Tipton
	Title:	Attorney		Name:	Tammy Tipton
	 	 	 	Title:  	Authorized Signatory
	 	 	 	 	 
	By: 	/s/ Tracey Bracco	 	 	 
	Title:	Secretary	 	 	 

 

    6CNL STRATEGIC CAPITAL 8-K

 

Exhibit 10.3

 

 

 

PLEDGE AND
SECURITY AGREEMENT

 

PLEDGE AND SECURITY AGREEMENT
(the “Agreement”) dated as of the 24th day of August, 2022 (“Effective Date”) made by CNL STRATEGIC CAPITAL
B, INC., a Delaware corporation, whose address is 450 S. Orange Ave., Orlando, FL 32801 (the “Borrower”) and CNL Strategic
Capital, LLC, a Delaware limited liability company (“Guarantor”), in favor of FIRST HORIZON BANK, whose address
is 315 E. Robinson St., Suite 350, Orlando, FL 32801 (the “Lender”) .

 

W I T N E S S E T H:

 

That for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and Guarantor each hereby agrees with the Lender
as follows:

 

1.             Definitions. 

 

(a)            Reference is made to the Loan Agreement of even date herewith between the Borrower and the Lender, as same may be amended, modified
or restated (the “Loan Agreement”), said Loan Agreement being incorporated herein by reference. All terms used in this Agreement
which are defined in the Loan Agreement or in the Uniform Commercial Code of the State of Florida, as now or hereafter in effect (the
“Code”), and which are not otherwise defined herein shall have the same meanings herein as set forth therein.

 

(b)           The term “Event of Default” shall have the meaning set out in Section 7 hereof.

 

2.             Pledge and Grant of Security Interest. As collateral security for all of the Obligations (as defined in Section 2
hereof), the Borrower hereby pledges and assigns to the Lender the following accounts, and grants to the Lender a continuing security
interest in the following personal property of the Borrower wherever located and whether now or hereafter existing:

 

		(a)	Money Market Account No. XYZ, in the name of Borrower, (“Account”) held at FIRST
HORIZON BANK (the “Bank”) for the purpose of receiving Subscription Agreement Funds (the “Pledged Collateral”);

 

		(b)	all proceeds of any and all of the foregoing;

 

in each case, whether now owned or hereafter acquired
by the Borrower or Guarantor and howsoever the interest of Borrower or Guarantor therein may arise or appear (whether by ownership, security
interest, claim or otherwise) (with (a), (b), and (c) of this Section 2 being collectively referred to as the “Collateral”).

 

     

     

    

 

3.             Security for Obligations. The security interest created hereby in the Collateral constitutes continuing collateral
security for all of the following obligations, whether now existing or hereafter incurred (the “Obligations”):

 

		(a)	the prompt payment by the Borrower, as and when due and payable, of all amounts from time to time owing
under or pursuant to that certain Revolving Credit Note (the “Revolving Credit Note”) of even date herewith, in the principal
sum of Fifty Million and NO/100 Dollars ($50,000,000.00), executed by Borrower and payable to the order of Lender, together with all renewals,
modifications and extensions thereof, in whole or in part, or any instrument given to secure the same;

 

		(b)	all indebtedness, liabilities, obligations, covenants and duties of Borrower or Guarantor to the Lender,
of every kind, nature and description arising under of in respect of any Bank Product (including arising under or in respect of any guaranty
thereof), whether direct or indirect, absolute or contingent, due or not due, contractual or tortious, liquidated or unliquidated, in
each case now existing or hereafter arising. “Bank Products” means any of the following that the Lender provides, to or enters
into with the Borrower or Guarantor: (i) any deposit, lockbox, Cash Management Services, or other cash management agreement, (ii) any
credit cards, purchase cards and/or debit cards, and (iii) any other product, service or agreement pursuant to which Borrower or Guarantor
is indebted to the Lender. “Cash Management Services” means any services provided from time to time by the Lender to Borrower
or Guarantor in connection with the operating, collections, payroll, trust or other depository or disbursement accounts, including automated
clearinghouse, e-payable, electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository, information reporting,
lockbox and stop payment services;

 

		(c)	the due performance and observance by the Borrower and Guarantor of all of the covenants, agreements,
duties, representations and obligations from time to time existing pursuant to this Agreement, the Loan Agreement, the Guaranty, and other
instrument or Loan Document which now or hereafter secures the Note; and

 

		(d)	the prompt payment and performance of any and all other present and future indebtedness and obligations
of Borrower or Guaranty to Lender of every kind, character, and description,

 

howsoever and whensoever arising, whether absolute
or contingent, joint or several, matured or unmatured, direct or indirect, primary or secondary, and including without limitation, all
future advances to the Borrower, all liabilities of the Guarantor under any Guaranty executed in favor of the Lender at any time and all
obligations of the Borrower with respect to any letters of credit issued at any time by Lender for the benefit of Borrower.

 

4.             Delivery of the Pledged Collateral.

 

(a)           All physical certificates or instruments representing the Pledged Collateral shall be delivered to the Lender simultaneously with
the execution and delivery of this Agreement or immediately upon receipt thereof by Borrower. All other certificates and instruments constituting
Pledged Collateral from time to time shall be delivered to the Lender promptly upon the receipt thereof by or on behalf of the Borrower.
Until such delivery to Lender such certificates and instruments shall be held in trust for the benefit of Lender. All such certificates
and instruments shall be held by or on behalf of the Lender pursuant hereto and shall be delivered in suitable form for transfer by delivery
or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the
Lender.

 

    2 

     

    

 

5.             Representations and Warranties.  The Borrower represents and warrants as follows:

 

(a)            The Borrower and Guarantor are the legal and beneficial owner of the Collateral free and clear of any lien, security interest or
other charge or encumbrance except for the security interest created by this Agreement. The Borrower is the legal and beneficial account
holder of the Pledged Account.

 

(b)           The exercise by the Lender of its rights and remedies hereunder will not contravene any law or governmental regulation or any contractual
restriction binding on or affecting the Borrower, Guarantor, or any of their Properties and will not result in or require the creation
of any lien, security interest or other charge or encumbrance upon or with respect to any of Borrower’s properties.

 

(c)            The Borrower’s chief place of business and chief executive office and the place where the Borrower keeps the Borrower’s
records concerning the Collateral are located at the address specified for the Borrower in the initial paragraph hereof. The Guarantor’s
chief place of business and chief executive office is the same as Borrower’s address.

 

(d)           The Borrower and Guarantor are the owners of the Collateral free and clear of any lien, security interest or other charge or encumbrance
except for the security interest created by this Agreement, and except for the financing statements filed in favor of Lender relating
to this Agreement, no other financing statement or other instrument similar in effect covering all or any part of the Collateral is on
file in any recording office.

 

(e)           No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body
is required either (i) for the pledge hereunder by the Borrower of, or the grant by the Borrower and Gaurantor of the security interest
created hereby in, the Pledged Collateral; or (ii) except as may be required by laws affecting the offering and sale of securities generally,
for the exercise by the Lender of its rights and remedies hereunder.

 

(f)            This Agreement creates a valid security interest in favor of the Lender in the Collateral. The taking possession by the Lender
of all accounts constituting Pledged Collateral from time to time will perfect, and establish the first priority of, the Lender’s security
interest hereunder in the Pledged Collateral securing the Obligations. The filing of the financing statements with the Florida Secretary
of State and Delaware Secretary of State will perfect and establish the first priority of the Lender’s security interest hereunder
in the Subscription Funds Collateral prior to its receipt by Lender in the Pledge Account, subject to no other liens and encumbrances.
Except as set forth in this Section 4(f), no action is necessary or desirable to perfect or otherwise protect such security interest.

 

    3 

     

    

 

6.             Covenants as to the Collateral. So long as any of the Obligations shall remain outstanding, the Borrower and Guarantor will,
unless the Lender shall otherwise consent in writing:

 

		(a)	permit the Lender, its agents or representatives, at any reasonable time and from time to time to examine
and make copies of and abstracts from records concerning the Collateral reasonably in the possession of Borrower or Guarantor;

 

		(b)	at Borrower’s expense, promptly deliver to the Lender a copy of each notice or other communication received
by it or Guarantor in respect of the Collateral;

 

		(c)	at Borrower’s expense, defend the Lender’s right, title and security interest in and to the Collateral
against the claims of any person or entity;

 

		(d)	at Borrower’s expense, at any time and from time to time, cause Borrower or Guarantor to promptly execute
and deliver all further instruments and documents and take all further action that may be necessary or desirable or that the Lender may
request in order to (i) perfect and protect the security interest created or purported to be created hereby; (ii) enable the Lender
to exercise and enforce its rights and remedies hereunder in respect of the Collateral; or (iii) otherwise effect the purposes of this
Pledge Agreement;

 

		(e)	not sell, assign, exchange or otherwise dispose of any Collateral or any interest therein;

 

		(f)	not create or suffer to exist any lien, security interest or other charge or encumbrance upon or with
respect to any Collateral except for the security interest created hereby;

 

		(g)	not make or consent to any amendment or other modification or waiver with respect to any Collateral or
enter into any agreement or permit to exist any restriction with respect to any Collateral; and

 

		(h)	not take or fail to take any action which would in any manner impair the value or enforceability of the
Lender’s security interest in any Collateral.

 

		(i)	to otherwise effect the purposes of this Agreement, including, without limitation: (A) executing and filing
such financing or continuation statements, or amendments thereto, as Lender deems necessary or desirable or that Lender may request in
order to perfect and preserve the security interest created or purported to be created hereby; (B) furnishing to Lender from time to time
statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as
Lender may reasonably request; (C) furnish to the Lender evidence in form or substance reasonably satisfactory to the Lender that the
Lender has control of any Collateral consisting of deposit accounts, investment property, electronic chattel paper or letter of credit
rights sufficient to perfect Secured Party’s security interest in such Collateral; and (D) where Collateral consisting of documents, goods,
instruments, tangible chattel paper or money is held by a third party bailee (including without limitation broker dealer institutional
trustee, or other fiduciary), furnish Lender evidence in form reasonable satisfactory to lender of such bailee’s acknowledgment that it
is holding such Collateral for the benefit of the Lender.

 

    4 

     

    

 

		(j)	The Borrower and Guarantor will each pay promptly before delinquent all property and other taxes, assessments,
and governmental charges or levies imposed upon, and all claims (including claims for labor, materials, and supplies) against, the Collateral,
except to the extent the validity thereof is being contested diligently and in good faith by proper proceedings satisfactory to the Lender.

 

		(k)	The Borrower and Guarantor will cooperate with the Lender in obtaining control with respect to Collateral.

 

		(l)	The Borrower and Guarantor will preserve its corporate existence and will not merge into or consolidate
with any other entity, sell all or substantially all of its assets, change its state of incorporation or change its corporate name without
providing Lender with thirty (30) days’ prior written notice.

 

(i)         The Borrower will, at the Borrower’s own expense, maintain insurance with respect to the Collateral in such amounts, against
such risks, in such form and with such insurers, as shall be satisfactory to Secured Party from time to time, and in accordance with the
provisions of the Loan Agreement. Each policy for liability insurance shall provide for all losses to be paid on behalf of Lender and
the Borrower as their respective interests may appear, with Lender named as lender loss payee under a lender loss payee endorsement, and
each policy for property damage insurance shall provide for all losses to be paid directly to Lender. Each such policy shall in addition
(A) name the Borrower and Lender as insured parties thereunder (without any representation or warranty by or obligation upon Lender)
as their interests may appear, (B) contain the agreement by the insurer that any loss thereunder shall be payable to Lender notwithstanding
any action, inaction, or breach of representation or warranty by the Borrower, (C) provide that there shall be no recourse against
Lender for payment of premiums or other amounts with respect thereto, and (D) provide that at least ten (10) days’ prior written
notice of cancellation, amendment, or of lapse shall be given to Lender by the insurer. The Borrower will, if so requested by Lender,
deliver to Lender original or duplicate policies of such insurance, or satisfactory certificates of insurance, and, as often as Lender
may reasonably request, a report of a reputable insurance broker with respect to such insurance.

 

7.             Additional Provisions Concerning the Collateral.

 

(a)            The Borrower and Guarantor each hereby agrees to take any action and to execute any instruments which may be necessary or advisable
to accomplish the purposes of this Agreement.

 

    5 

     

    

 

(b)            The Borrower and Guarantor each hereby irrevocably appoints the Lender as their attorney in fact and proxy, with full authority
in the place and stead of the Borrower and Guarantor and in the name of the Borrower and Guarantor or otherwise, from time to time in
the Lender’s discretion, to take any action and to execute any instrument which the Lender may deem necessary or advisable to accomplish
the purposes of this Agreement subject to the rights of the Borrower and Guarantor under Section 7(e) hereof, including, without limitation,
(i) to receive, endorse and collect all instruments made payable to the Borrower or Guarantor representing Subscription Agreement Funds,
(ii) to ask, demand, collect, sue for, recover, compound, receive, and give acquittance and receipts for moneys due and to become
due under or in respect of any of the Collateral; (iii) to file any claims or take any action or institute any proceedings which Lender
may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of Lender with respect
to any of the Collateral. The Borrower and Guarantor each hereby ratifies and approves all acts of said attorney; and the attorney so
long as the attorney acts in good faith, it shall have no liability to the Borrower or Guarantor for any act or omission as such attorney.

 

(c)            If either the Borrower or Guarantor fails to perform any agreement or obligation contained herein, the Lender itself may perform,
or cause performance of, such agreement or obligation, and the expenses of the Lender incurred in connection therewith shall be payable
by the Borrower or Guarantor pursuant to Section 9 hereof.

 

(d)           The powers conferred on Lender hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon
it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, Lender shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights
against prior parties or any other rights pertaining to any Collateral.

 

(e)            Anything herein to the contrary notwithstanding, (i) the Borrower and Guarantor shall each remain liable under any contracts
and agreements included in or relating to the Collateral to the extent set forth therein to perform all of the obligations thereunder
to the same extent as if this Agreement had not been executed; (ii) the exercise by Lender of any of its rights hereunder shall not
release the Borrower or Guarantor from any of the duties or obligations under the contracts and agreements included in or relating to
the Collateral; and (iii) Lender shall not have any obligation or liability by reason of this Agreement under any contracts and agreements
included in or relating to the Collateral, nor shall Lender be obligated to perform any of the obligations or duties of the Borrower or
Guarantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder

 

(f)             The Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession
if the Pledged Collateral is accorded treatment substantially equal to that which the Lender accords similar restricted deposit accounts,
it being understood that the Lender shall not have responsibility for taking any necessary steps to preserve rights against any parties
with respect to any Pledged Collateral.

 

8.             Events of Default. An Event of Default shall be deemed to have occurred hereunder upon the occurrence of a failure
or default in the full, faithful and prompt payment or performance of any one or more of the Obligations, and shall include, but shall
not be limited to:

 

		(a)	any default in the full or prompt payment when due of all or any part of any indebtedness constituting
part of the Obligations hereunder; or

 

		(b)	any default by Borrower or Guarantor in the full, faithful and prompt payment or performance of any covenant,
agreement, liability, obligation, condition or undertaking to be paid, met, kept, observed or performed pursuant to the provisions hereof,
the Loan Agreement (including, but not limited to, the occurrence of an Event of Default under the Loan Agreement), or of any other instrument
or document now or hereafter constituting or securing all or any part of the Obligations; or

 

    6 

     

    

 

		(c)	any Event of Default occurs under the Loan Agreement;

 

		(d)	any default in the payment or performance of any other indebtedness, obligation or undertaking of the
Borrower or Guarantor to the Lender; or

 

		(e)	any representation or warranty by Borrower or Guarantor set out herein or in any other instrument or document
executed by Guarantor or Borrower in connection herewith shall prove to be false or misleading in any material respect as of the time
made.

 

9.             Remedies Upon Default. Upon the occurrence of an Event of Default:

 

(a)            The Lender may (i) exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise
available to it, all of the rights and remedies of a secured party on default under the Uniform Commercial Code in effect in the State
of Florida (the “Code”) (whether or not the Code applies to the Collateral); and (ii) without limiting the generality of the
foregoing and without notice except as specified below, immediately and without notice use the Pledged Collateral or any part thereof
to satisfy the Obligations of the Borrower or Guarantor.

 

(b)            Any cash held by the Lender as Pledged Collateral and all cash proceeds received by the Lender in respect of collection from, or
other realization upon, all or any part of the Collateral may, in the discretion of the Lender, be held by the Lender as collateral for,
and/or then or at any time thereafter applied (after payment of any amounts payable to the Lender pursuant to the Loan) in whole or in
part by the Lender against, all or any part of the Obligations in such order as the Lender shall elect. Any surplus of such cash or cash
proceeds held by the Lender and remaining after payment in full of all of the Obligations shall be paid over to the Borrower or to whomsoever
may be lawfully entitled to receive such surplus.

 

(c)            In the event that the proceeds of any such collection or realization are insufficient to pay all amounts to which the Lender is
legally entitled, the Borrower or Guarantor shall be liable for the deficiency, together with interest thereon at the highest rate specified
in the Note for interest on overdue principal thereof, together with the costs of collection and the reasonable fees of any attorneys
employed by the Lender to collect such deficiency.

 

10.            Indemnity and Expenses.

 

(a)            The Borrower and Guarantor, jointly and severely, agree to indemnify the Lender from and against any and all claims, losses and
liabilities growing out of or resulting from this Agreement (including, without limitation, enforcement of this Agreement), except claims,
losses or liabilities resulting from the Lender’s gross negligence or willful misconduct.

 

(b)            The Borrower and Guarantor, jointly and severely, agree to upon demand pay to the Lender the amount of any and all expenses, including
the reasonable fees and disbursements of the Lender’s counsel and of any experts and agents, which the Lender may incur in connection
with (i) the preparation and administration of this Agreement, the Note and the other instruments and documents executed in connection
therewith; (ii) the custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any Collateral;
or (iii) the failure by the Borrower or Guarantor to perform or observe any of the provisions hereof, except expenses resulting from the
Lender’s gross negligence or willful misconduct.

 

    7 

     

    

 

11.           Notices, Etc. All notices and other communications provided for hereunder shall be given in accordance with the Loan
Agreement in writing and shall be mailed, certified mail, return receipt requested, or delivered, if to the Borrower, to Borrower at 450
S. Orange Ave. Orlando, FL 3280, Attention: Tammy Tipton, CFO with a copy (in all cases) to Tracey B. Bracco, and with a copy (if other
than a routine informational communication) to Chirag Bhavsar, Co-CEO; if to the Guarantor, to them at 14th Floor, 450 S. Orange
Ave, Orlando, FL 32801; if to the Bank, to it at 315 East Robinson Street Suite 350Orlando, FL 32801, Attention: Abhi Vyas, SVP and Sr.
Commercial Relationship Manager, with a copy to Bart Bishop, EVP and Commercial Banking Executive at the same addressor as to any such
person to such other address as shall be designated by such person in a written notice to such other person complying as to delivery with
the terms of this Section 10. All such notices and other communications shall be effective (i) if mailed, when received or three (3) business
days after mailing, whichever is earlier; (ii) if sent by overnight courier service, on the first (1st) business day after
sending; or (iii) if delivered, upon delivery.

 

12.           Security Interest Absolute.  All rights of the Lender, all security interests and all obligations of the Borrower
and Guarantor hereunder shall be absolute and unconditional irrespective of:

 

		(a)	any lack of validity or enforceability of the Loan Agreement, Note or any other agreement or instrument
relating thereto;

 

		(b)	any change in the time, manner or place of payment of, or in any other term in respect of, all or any
of the Obligations, or any other amendment or waiver of or consent to any departure from this Agreement, the Note, or any other agreement
or instrument relating thereto or to any of the Obligations;

 

		(c)	any increase in, addition to, or exchange, release or nonperfection of, any other collateral, or any release
or amendment or waiver of or consent to departure from any guaranty, for all or any of the Obligations;

 

		(d)	any other circumstance which might otherwise constitute a defense available to, or a discharge of, the
Borrower, Guarantor, or any other party liable, directly or indirectly, absolutely or contingently, with respect to all or any part of
the Obligations; or

 

		(e)	the absence of any action on the part of the Lender to obtain payment or performance of the Obligations
from any person or entity.

 

13.           Rights and Duties of Lender, Etc. Lender undertakes, as to this Agreement, to exercise only such duties as are specifically
set forth in this Agreement and to exercise such of the rights, powers and remedies as are vested in it by this Agreement or by law. In
any instance hereunder where Lender’s approval or consent is required or the exercise of Lender’s judgment is required, the granting or
denial of such approval or consent and the exercise of such judgment shall be within the sole discretion of Lender, and Lender shall not,
for any reason or to any extent, be required to grant such approval or consent or exercise such judgment. Lender may consult with counsel,
and the written advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

 

    8 

     

    

 

14.           Miscellaneous.

 

(a)           No amendment or waiver of any provision of this Agreement, and no consent to any departure by the Borrower or Guarantor therefrom,
shall in any event be effective unless the same shall be in writing and signed by the Lender and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.

 

(b)           No failure on the part of the Lender to exercise, and no delay in exercising, any right hereunder or under the Note shall operate
as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The Lender’s rights and remedies provided herein and in any other instrument or document now or hereafter
securing all or any part of the Obligations are cumulative and are in addition to, and not exclusive of, any rights or remedies provided
by law.

 

(c)           Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or invalidity without invalidating the remaining portions hereof or thereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

(d)           This Agreement shall create a continuing security agreement and shall be binding on the Borrower, Guarantor, and their successors
and permitted assigns and shall inure, together with all rights and remedies of the Lender hereunder, to the benefit of the Lender and
its successors, transferees and assigns. Without limiting the generality of the foregoing, the Lender may assign or otherwise transfer
all or part of its rights to all or any part of the Obligations to any other person or entity, and such other person or entity shall thereupon
become vested with all of the benefits in respect thereof granted to the Lender herein or otherwise. None of the rights or obligations
of the Borrower or Guarantor hereunder may be assigned or otherwise transferred without the prior written consent of the Lender.

 

(e)           Upon payment and satisfaction in full of the Obligations, this Agreement and the security interest created hereby shall terminate
and all rights to the Collateral shall revert to the Borrower or Guarantor. The Lender will thereupon, at Borrower’s request and expense,
(i) return to the Borrower or Guarantor such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant
to the terms hereof; and (ii) execute and deliver to the Borrower or Guarantor such documents as the Borrower or Guarantor shall reasonably
request to evidence such termination.

 

(f)            This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.

 

(g)           The captions or headings of the Sections of this Agreement are inserted merely for convenience of reference and shall not be deemed
to limit or modify the terms and provisions hereof.

 

    9 

     

    

 

IN WITNESS WHEREOF, the Borrower
and Guarantor has caused this Agreement to be executed and delivered by its officers thereunto duly authorized as of the date first above
written.

 

	 	 	 	BORROWER:  
	 	 	 	 	 
	ATTEST:	 	CNL STRATEGIC CAPITAL B, INC.,
	 	 	 	a Delaware corporation
	 	 	 	 
	 	/s/ Dale Burket	 	By:	/s/ Tammy Tipton
	Name:	Attorney	 	Name: Tammy Tipton
		 	 	Title: Authorized Signatory
	 	 	 	 
	 	 	 	GUARANTOR:
	 	 	 	CNL STRATEGIC CAPITAL, LLC.,
	 	 	 	a Delaware limited liability company
	 	 	 	 
	 	/s/ Tracey Bracco	 	By:	/s/ Tammy Tipton
	Name:	Secretary	 	Name: Tammy Tipton
	 	 	 	Title: Authorized Signatory

 

BORROWER

 

    10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}]]