Document:

LOAN
AGREEMENT

 

THIS
LOAN AGREEMENT (this “Agreement”), dated as of this 11th day of October, 2019, by and between
ARC WINGHOUSE LLC, a Florida limited liability company (the “Borrower”), whose address is 1409 Kingsley
Avenue, Suite 2, Orange Park, Florida 32073, and CITY NATIONAL BANK OF FLORIDA, its successors and/or assigns (the “Lender”),
whose address is 25 West Flagler Street, Miami, Florida 33130.

 

RECITALS

 

A.
Borrower has requested and Lender has agreed to make a term credit facility to Borrower in the maximum principal amount of TWELVE
MILLION TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($12,250,000.00) (the “Loan”) to be used by Borrower
to finance the acquisition of twenty-four (24) “WingHouse Bar & Grill Restaurants” (the “Restaurants”)
from Soaring Wings, LLC, and its subsidiaries, subject to the terms and conditions contained in this Agreement.

 

B.
Borrower and Lender have negotiated the terms and conditions of, and wish to enter into, this Agreement in order to set forth
the terms and conditions of the Loan.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth below, Borrower and Lender agree as follows:

 

1.
DEFINITIONS. As used in this Agreement the terms listed below shall have the following meanings unless otherwise required
by the context:

 

(a)
Account: Has the meaning set forth in the Code.

 

(b)
Affiliate: An Affiliate of the Borrower shall mean any entity which, directly or indirectly, controls or is controlled
by or is under common control with the Borrower. An entity shall be deemed to be “controlled by” another entity if
such other entity possesses, directly or indirectly, power to direct or cause the direction of the management and policies of
such entity whether by contract, ownership of voting securities, membership interests or otherwise.

 

(c)
Code: The Uniform Commercial Code (or any successor statute), as adopted and in force in Florida or, when the laws of any
other state govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the
Uniform Commercial Code (or any successor statute) of such state. Any term used in this Agreement and in any financing statement
filed in connection herewith which is defined in the Code and not otherwise defined in this Agreement or in any other Loan Document
has the meaning given to the term in the Code.

 

(d)
Collateral: The property encumbered by the Leasehold Mortgage, the Security Agreement and all other property and assets
granted as collateral security for the Loan, whether real or personal property, whether granted directly or indirectly, whether
granted now or in the future, and whether granted in the form of a security interest, mortgage, collateral mortgage, deed of trust,
assignment, pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factors’ lien, equipment trust, conditional
sale, trust receipt, lien or title retention contract, lease or consignment intended as a security device, or any other security
or lien interest whatsoever, whether created by law, contract or otherwise.

 

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(e)
EBITDA: As applies to any Person, the sum of earnings before interest, taxes, depreciation and amortization.

 

(f)
Fiscal Year: The fiscal year of the Borrower, which period shall be a 12-month period ending on December 31 of each year.
References to a Fiscal Year with a number corresponding to any calendar year (e.g. “Fiscal Year 2019”)
refer to the Fiscal Year ending on December 31 of such calendar year.

 

(g)
GAAP: Generally accepted accounting principles consistently applied, as adopted in the United States, and as amended from
time to time.

 

(h)
Governmental Authority: Any governmental or quasi-governmental authority, agency, authority, board, commission, or governing
body authorized by federal, state or local laws or regulations as having jurisdiction over the Lender, the Borrower, the Guarantor
or the Parent.

 

(i)
Governmental Requirements: The standards for real property appraisals established under applicable regulations governing
national or state chartered banks promulgated by the Board of Governors of the Federal Reserve System or the United States Comptroller
of the Currency, and any other regulations promulgated by any Governmental Authority which apply to Lender.

 

(j)
Guarantor: Seenu G. Kasturi.

 

(k)
Guaranty: That certain Guaranty of Payment and Performance dated as of even date herewith from Guarantor in favor of Lender,
as the same may be amended, restated, modified or replaced from time to time.

 

(l)
Lender: City National Bank of Florida, its successors and/or assigns.

 

(m)
Leases: Those lease agreements pursuant to which Borrower occupies the Restaurants.

 

(n)
Leasehold Mortgage: That certain Leasehold Mortgage and Assignment of Leases and Rents dated as of even date herewith from
Borrower in favor of Lender, as the same may be amended, restated, modified or replaced from time to time.

 

(o)
Liquor Licenses: The liquor licenses pursuant to which Borrower operates the Restaurants.

 

(p)
Loan: That certain loan in the amount of TWELVE MILLION TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($12,250,000.00),
as evidenced by the Note and secured by the Leasehold Mortgage, the Security Agreement and the other Loan Documents as provided
herein.

 

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(q)
Loan Documents: Any and all documents evidencing, securing, or executed in connection with the Loan, including, without
limitation, the Note, the Leasehold Mortgage, the Security Agreement, the Guaranty, the Negative Pledge Agreement and this Agreement.

 

(r)
Negative Pledge Agreement. That certain Negative Pledge Agreement dated of even date herewith from Parent in favor of Lender.

 

(s)
Note: That certain Promissory Note dated as of even date herewith from Borrower in favor of Lender in the principal amount
of $12,250,000.00, as the same may be amended, restated, modified or replaced from time to time.

 

(t)
Parent: ARC Group, Inc., a Nevada corporation

 

(u)
Person: A natural person, a partnership, a joint venture, an unincorporated association, a limited liability company, a
corporation, a trust, any other legal entity, or any Governmental Authority.

 

(v)
Put Agreement: That certain Put Agreement dated as of October 11, 2019, among Borrower, Parent and Soaring Wings, LLC.

 

(w)
Security Agreement: That certain Security Agreement dated as of even date herewith from Borrower in favor of Lender, as
the same may be amended, restated, modified or replaced from time to time.

 

(x)
Seller Note: That certain promissory note of even date herewith from Borrower in favor of Soaring Wings, LLC, in the amount
of $1,000,000.00

 

(y)
Trademark Assignment Agreement: That certain Trademark Collateral Assignment and Security Agreement dated as of even date
herewith between Borrower and Lender, as the same may be amended, restated, modified or replaced from time to time.

 

(z)
Unmatured Event of Default: Any event that, if it continues uncured, will, with lapse of time or notice, or both, constitute
an Event of Default hereunder and under the other Loan Documents.

 

2.
LOAN; ADVANCES. At the closing of the Loan, Lender is funding the Loan in full.

 

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3.
ACCOUNTS.

 

(a)
Guarantor Blocked Account. Prior to Closing, Guarantor shall establish with Lender a non-interest bearing account into
which Guarantor shall deposit the amount of $1,250,000.00 (the “Guarantor Blocked Account”). The Guarantor
Blocked Account shall be under the sole control of Lender and Guarantor shall have no right to withdraw any funds from the Guarantor
Blocked Account. Guarantor hereby grants to Lender a security interest in the Guarantor Blocked Account and the funds held therein
as security for the Loan. Upon the occurrence of an Event of Default, Lender shall have the right to apply the funds in the Guarantor
Blocked Account against the indebtedness owing under the Loan in such manner as Lender elects in Lender’s sole discretion.
So long as no uncured Unmatured Event of Default or Event of Default has occurred, at any time after the first annual anniversary
of the closing of the Loan, Lender, at the written request of Guarantor, shall release the funds in the Guarantor Blocked Account
to Guarantor upon Borrower establishing with Lender a substitute non-interest bearing “blocked account” (the “Substitute
Blocked Account”) into which Borrower has deposited the amount of $1,250,000.00 and which shall serve as additional
security for the Loan. Upon the occurrence of an Event of Default, Lender shall have the right to apply the funds in the Substitute
Blocked Account against the indebtedness owing under the Loan in such manner as Lender elects in Lender’s sole discretion.
Lender shall release all funds held in the Blocked Account or Substitute Account, as the case may be, to Guarantor or Borrower,
as applicable, upon repayment of the Loan by Borrower.

 

(b)
Borrower Blocked Account. At Closing, Borrower shall establish with Lender a non-interest bearing account into which Borrower
shall deposit the amount of $1,000,000.00 (the “Borrower Blocked Account”). The Borrower Blocked Account
shall be under the sole control of Lender and Borrower shall have no right to withdraw any funds from the Borrower Blocked Account.
Borrower hereby grants to Lender a security interest in the Borrower Blocked Account and the funds held therein as security for
the Loan. Upon the occurrence of an Event of Default, Lender shall have the right to apply the funds in the Borrower Blocked Account
against the indebtedness owing under the Loan in such manner as Lender elects in Lender’s sole discretion. After April 11,
2020, but no sooner than Lender receiving Borrower’s audited financial statements for calendar year 2019, and Borrower’s
quarterly financial statements for the quarter end March 30, 2020, so long as Borrower is in compliance with the financial covenants
set forth in Section 8 for the immediately preceding testing period and no uncured Unmatured Event of Default or Event of Default
has otherwise occurred, Lender, upon the request of Borrower, not more frequently than once during any semi-annual period), shall
disburse to Borrower funds from the Borrower Blocked Account is an amount such that the outstanding principal balance of the Loan,
less (i) the amount of funds then in the Guarantor Blocked Account and (ii) the remaining funds in the Borrower Blocked Account,
does not then exceed $10,000,000. All disbursements shall be used by Borrower to pay-down the Seller’s Note, and, at Borrower’s
direction, will be paid directly to the holder of the Seller’s Note.

 

(c)
Payment Account. Prior to Closing, Borrower shall establish with Lender an account which shall be subject to auto-debiting
by Lender to make the monthly installments due under the Note. Borrower shall execute any documents required by Lender to effectuate
auto-debiting of this account.

 

4.
EXPENSES. Borrower shall pay all fees and charges incurred in the procuring and making of the Loan and all other expenses
incurred by Lender during the term of the Loan, including, without limitation, documentary stamp taxes, recording expenses, and
the fees of the attorneys for Lender. Borrower shall also pay any and all insurance premiums, taxes, assessments, and other charges,
liens and encumbrances upon the Collateral. Such amounts, unless sooner paid, shall be paid from time to time as Lender shall
request either to the Person to whom such payments are due or to Lender if Lender has paid the same.

 

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5.
WARRANTIES AND REPRESENTATIONS. Borrower and/or Guarantor, as applicable, represent and warrant (which representations
and warranties shall be deemed continuing) as follows:

 

(a)
Organization Status. Borrower (i) is duly organized under the laws of the State of Florida, (ii) is in good standing under
the laws of the State of Florida, (iii) is qualified to do business in the State of Florida, and (iv) has membership interests
which have been duly and validly issued.

 

(b)
Compliance with Laws. Borrower is in compliance with all laws, regulations, ordinances and orders of all Governmental Authorities.

 

(c)
Accurate Information. All information now and hereafter furnished to Lender is and will be true, correct and complete in
all material respects. Any such information relating to Borrower’s or Guarantor’s financial condition has and will
accurately reflect such financial condition as of the date(s) thereof, (including all contingent liabilities of every type), and
each of Borrower and Guarantor further represent that its financial condition has not changed materially or adversely since the
date(s) of such documents.

 

(d)
Authority to Enter into Loan Documents. The Borrower and the Guarantor have full power and authority to enter into the
Loan Documents and consummate the transactions contemplated hereby, and the facts and matters expressed or implied in the opinions
of its legal counsel are true and correct.

 

(e)
Validity of Loan Documents. The Loan Documents have been approved by those Persons having proper authority, and are in
all respects legal, valid and binding according to their terms.

 

(f)
Priority of Lien on Personalty. No chattel mortgage, bill of sale, security agreement, financing statement or other title
retention agreement (except those executed in favor of Lender) has been or will be executed with respect to any of the Collateral
or otherwise approved by Lender in accordance with the Leasehold Mortgage or the Security Agreement.

 

(g)
Conflicting Transactions of Borrower. The consummation of the transaction hereby contemplated and the performance of the
obligations of Borrower and Guarantor under and by virtue of the Loan Documents will not result in any breach of, or constitute
a default under, any lease, loan or credit agreement, or other instrument to which Borrower or Guarantor is a party or by which
they may be bound or affected.

 

(h)
Pending Litigation. There are no actions, suits or proceedings pending against Borrower, Guarantor or the Collateral, or
circumstances which could lead to such action, suits or proceedings against or affecting Borrower, Guarantor, the Collateral,
or involving the validity or enforceability of any of the Loan Documents, before or by any Governmental Authority, except actions,
suits and proceedings which have been specifically disclosed to and approved by Lender in writing; and Borrower is not in default
with respect to any order, writ, injunction, decree or demand of any court or any Governmental Authority.

 

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(i)
Condition of Collateral. The Collateral is not now damaged or injured as a result of any fire, explosion, accident, flood
or other casualty.

 

(j)
Discharge of Liens and Taxes. Borrower and Guarantor have duly filed, paid and/or discharged all taxes or other claims
that may become a lien on any of its property or assets, except to the extent that such items are being appropriately contested
in good faith and an adequate reserve for the payment thereof is being maintained.

 

(k)
Sufficiency of Capital. Neither Borrower nor Guarantor is, and after consummation of this Agreement and after giving effect
to all indebtedness incurred and liens created by Borrower in connection with the Note and any other Loan Documents, will be,
insolvent within the meaning of 11 U.S.C. § 101, as in effect from time to time.

 

(l)
ERISA. Each employee pension benefit plan, as defined in Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
maintained by any of the Borrower and/or Guarantor meets, as of the date hereof, the minimum funding standards of ERISA and all
applicable regulations thereto and requirements thereof, and of the Internal Revenue Code of 1986, as amended. No “Prohibited
Transaction” or “Reportable Event” (as both terms are defined by ERISA) has occurred with respect to any such
plan.

 

(m)
Indemnity. Borrower and Guarantor will indemnify Lender and its affiliates from and against any losses, liabilities, claims,
damages, penalties or fines imposed upon, asserted or assessed against or incurred by Lender arising out of the inaccuracy or
breach of any of the representations contained in this Agreement or any other Loan Documents.

 

(n)
No Default. There is no Event of Default or default on the part of Borrower or Guarantor under this Agreement, the Note,
the Guaranty, the Leasehold Mortgage, the Security Agreement or any other Loan Document, and no event has occurred and is continuing
which with notice, or the passage of time, or either, would constitute a default under any provision thereof. Borrower is not
and, to Borrower’s knowledge, Guarantor is not, in default in any material respect under any agreement or instrument to
which it is a party or by which it may be bound which would individually or in the aggregate have a material adverse effect on
the financial condition or business of Borrower or Guarantor.

 

(o)
Ownership of Properties/Liens. Borrower owns good and, in the case of real property, marketable title to all of its properties,
real and personal, tangible and intangible, of any nature whatsoever (including patents, trademarks, trade names, service marks
and copyrights), free and clear of all liens, charges and claims (including infringement claims with respect to patents, trademarks,
service marks, copyrights and the like).

 

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(p)
Leases. (i) Borrower has provided to Lender true, correct and complete copies of the Leases (including all amendments and
assignments), (ii) Borrower is the owner and holder of the tenants’ interest in the Leases, free and clear of all liens
and encumbrances, (iii) all consents from the landlords under the Leases necessary for the Leases to be assigned to Borrower have
been obtained, and (iv) each of the Leases has been validly assigned to Borrower, is in full force and effect, and is free of
any default.

 

(q)
Trademarks. Borrower has provided to Lender true, correct and complete copies of the Trademarks (as defined in the Trademark
Assignment Agreement). The Trademarks which have been collaterally assigned to Lender pursuant to the Trademark Assignment Agreement
constitute all of the Trademarks under which Borrower operates the Restaurants. Borrower is the owner and holder of the Trademarks,
free and clear of all liens and encumbrances.

 

(r)
Liquor Licenses. Borrower has provided to Lender true, correct and complete copies of the Liquor Licenses, all of which
are in full force and effect. The Liquor Licenses provided to Lender constitute all of the Liquor Licenses under which Borrower
operates the Restaurants. Borrower is the owner and holder of the Liquor Licenses, free and clear of all liens and encumbrances.

 

6.
COVENANTS. Borrower and Guarantor, as applicable, covenant and agree with Lender as follows:

 

(a)
Taxes. Borrower certifies that it has filed or caused to be filed all federal, state and other tax returns which are required
to be filed, and have paid or caused to be paid all taxes as shown on said returns or in any manner due to be paid (including,
but not limited to, ad valorem and personal property taxes) or on any assessment received by Borrower and not being contested
in good faith, to the extent that such taxes have become due. Borrower further certifies that it has paid all other taxes, levies
and charges of any nature, including any governmental charges.

 

(b)
Notice of Litigation. Borrower shall promptly give Lender written notice of (a) a judgment entered against any Borrower,
or (b) the commencement of any action, suit, claim, counterclaim or proceeding against or investigation of Borrower which, if
adversely determined, would materially adversely affect the business of Borrower, or which questions the validity of this Agreement,
the Note, the Leasehold Mortgage or the Security Agreement, or any other actions or agreements taken or to be made pursuant to
any of the foregoing.

 

(c)
Notice of Default. Borrower shall promptly give Lender written notice of any act of default under any agreement with Lender
or under any other contract to which Borrower is a party and of any acceleration of indebtedness caused thereby which would have
a materially adverse effect to the business of Borrower.

 

(d)
Reports. Borrower shall promptly furnish Lender with copies of all governmental agency, and other special reports pertaining
to or affecting Borrower, which would materially adversely affect the business of Borrower.

 

(e)
Change in Ownership, Control or Management of Borrower. Borrower shall not change its ownership (whether direct or indirect),
control or management structure during the term of the Loan, without the prior written consent of Lender, in Lender’s
sole discretion.

 

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(f)
Change in Fiscal Year. Borrower shall not change its Fiscal Year without the prior written consent of Lender. Borrower’s
Fiscal Year ends on December 31.

 

(g)
Title to Collateral. Borrower will deliver to Lender, on demand, any contracts, bills of sale, statements, receipted vouchers
or agreements under which Borrower claims title to any of the Collateral.

 

(h)
Payment of Debts. Borrower shall pay and discharge when due, and before subject to penalty or further charge, and otherwise
satisfy before maturity or delinquency, all obligations, debts, taxes, and liabilities of whatever nature or amount, except those
which Borrower in good faith disputes.

 

(i)
Collection of Insurance Proceeds. Borrower will cooperate with Lender in obtaining for Lender the benefits of any insurance
or other proceeds lawfully or equitably payable to it in connection with the transaction contemplated hereby and the collection
of any indebtedness or obligation of Borrower to Lender incurred hereunder.

 

(j)
Indebtedness. Borrower shall not incur, create, assume or permit to exist any indebtedness or liability on account of advances
or deposits, any indebtedness or liability for borrowed money, any indebtedness constituting the deferred purchase price of any
property or assets, any indebtedness owed under any conditional sale or title retention agreement, contingent obligations pursuant
to guaranties, endorsements, letters of credit and other secondary liabilities, or any other indebtedness or liability evidenced
by notes, bonds, debentures or similar obligations without the prior written approval of Lender, except for (i) the Loan, (ii)
the endorsement of checks for collection in the ordinary course of business, (iii) debt payable to suppliers and other trade creditors
in the ordinary course of business on ordinary and customary trade terms and which is not past due, (iv) debt owing to Affiliates
that is subordinated to the Loan, (v) Seller’s Note, and (vi) debt payable to sellers incurred by Borrower in connection
with the purchase of furniture, fixtures and equipment and leasehold improvements for the Restaurants, provided that no more than
$250,000.00 of such indebtedness may be incurred in any Fiscal Year (in the case of the first and last Fiscal Years during the
term of the Loan, such amount shall be adjusted based upon the number of days of the Loan term during such Fiscal Year).

 

(k)
Guaranties. Borrower shall not guarantee or otherwise in any way become or be responsible for obligations of any other
Person, whether by agreement to purchase the indebtedness of any other Person, or agreement for the furnishing of funds to any
other Person through the purchase of goods, supplies or services (or by way of stock purchase, capital contribution, advance or
loan) for the purpose of paying or discharging indebtedness of any other Person, or otherwise, without first obtaining Lender’s
consent in Lender’s sole discretion.

 

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(l)
Advances. Borrower shall not make any advances, dividends, loans, or distributions to Guarantor or any of its subsidiaries,
affiliates, shareholders, officers or directors (“Distributions”), without the prior written consent of Lender. Notwithstanding
the foregoing, so long as no Event of Default exists, Borrower shall be permitted to make Distributions in the ordinary course
of Borrower’s business, without first obtaining Lender’s prior written consent.

 

(m)
Further Assurances and Preservation of Security. Borrower will do all acts and execute all documents for the better and
more effective carrying out of the intent and purposes of this Agreement, as Lender shall reasonably require from time to time,
and will do such other acts necessary or desirable to preserve and protect the collateral at any time securing or intending to
secure the Note, as Lender may require.

 

(n)
No Assignment. Borrower shall not assign this Agreement or any interest therein and any such assignment is void and of
no effect. Lender may assign this Agreement and any other Agreements contemplated hereby, and all of its rights hereunder and
thereunder, and all provisions of this Agreement shall continue to apply to the Loan. Lender agrees to notify Borrower of any
such assignment. Lender also shall have the right to participate the Loan with any other lending institution.

 

(o)
No Sale of Assets. Borrower and Guarantor shall not, during the term of the Loan, transfer any material portion of their
respective assets unless such transfer is in the ordinary course of Borrower’s or Guarantor’s business, for fair market
value and such fair market value is given to Borrower or Guarantor, in its sole name, and such transfer will not have a material
adverse effect on the financial condition of Borrower or Guarantor and/or its ability to perform the obligations hereunder, as
determined by Lender in its sole and absolute discretion.

 

(p)
Access to Books and Records. Borrower shall allow Lender, or its agents, after reasonable prior notice and during reasonable
normal business hours, to access Borrower’s books, records and such other documents, and allow Lender, at Borrower’s
expense (other than the annual field exam referenced below), to inspect, audit and examine the same and to make extracts therefrom
and to make copies thereof.

 

(q)
Business Continuity. Borrower shall conduct its business in substantially the same manner and locations as such business
is now and has previously been conducted during the term of the Loan.

 

(r)
Insurance.

 

I.
Borrower shall obtain, maintain and keep in full force and effect during the term of the Loan adequate insurance coverage, with
all premiums paid thereon and without notice or demand, with respect to its properties and business against loss or damage of
the kinds and in the amounts customarily insured against by companies of established reputation engaged in the same or similar
businesses including, without limitation:

 

(i)
Public liability insurance insuring against all claims for personal or bodily injury, death, or property damage in an amount of
not less than $1,000,000.00 single limit coverage, and $5,000,000.00 in the aggregate. Such policy shall include
an additional insured endorsement naming the Lender as loss payee;

 

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(ii)
Insurance in such amounts and against such other casualties and contingencies as may from time to time be required by Lender,
including, without limitation, insurance on all Collateral and all insurance required under the Leases;

 

II.
All policies of insurance required hereunder shall: (i) be written by carriers which are licensed or authorized to transact business
in the State of Florida, and are rated “A” or higher, Class XII or higher, according to the latest published Best’s
Key Rating Guide and which shall be otherwise acceptable to Lender in all other respects, (ii) provide that the Lender shall receive
thirty (30) days’ prior written notice from the insurer before a cancellation, modification, material change or non-renewal
of the policy becomes effective, and (iii) be otherwise satisfactory to Lender.

 

III.
Borrower shall not, without the prior written consent of Lender, take out separate insurance concurrent in form or contributing
with regard to any insurance coverage required by Lender.

 

IV.
At all times during the term of the Loan, Borrower shall have delivered to Lender the original (or a certified copy) of all policies
of insurance required hereby, together with receipts or other evidence that the premiums therefor have been paid.

 

V.
Not less than thirty (30) days prior to the expiration date of any insurance policy, Borrower shall deliver to Lender the original
(or certified copy), or the original certificate, as applicable, of each renewal policy, together with receipts or other evidence
that the premiums therefor have been paid.

 

VI.
The delivery of any insurance policy and any renewals thereof, shall constitute an assignment thereof to Lender, and Borrower
hereby grants to Lender a security interest in all such policies, in all proceeds thereof and in all unearned premiums therefor.

 

(s)
Subordination of Debt. Borrower will fully subordinate all of the Borrower’s debts owed to third parties, including,
without limitation, officers, employees, stockholders, and affiliates, upon terms and conditions acceptable to Lender. Notwithstanding
the foregoing, so long as the Borrower is in compliance with the financial covenants contained herein and there is no Event of
Default or Unmatured Event of Default, the Borrower shall be permitted to make regular scheduled payments of principal and interest
on such subordinated debt.

 

(t)
Indemnification. Borrower and Guarantor hereby indemnify and hold Lender, its directors, officers, agents, employees and
attorneys harmless from and against any liability, loss, expenses, damage of any nature, and claims, including, without limitation,
brokers’ claims, arising in connection with the Loan.

 

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(u)
Estoppel Certificate. At any time during the term of the Loan, within ten (10) Business Days after written demand of Borrower
by the Lender therefor, the Borrower shall deliver to the Lender a certificate, duly executed and in form satisfactory to the
Lender, stating and acknowledging, to the best of Borrower’s knowledge, the then unpaid principal balance of, and interest
due and unpaid, under the Loan, and the fact that there are no defenses, off sets, counterclaims or recoupments thereto (or, if
such should not be the fact, then the facts and circumstances relating to such defenses, off sets, counterclaims or recoupments).

 

(v)
Release of Information for Marketing Purposes. The Borrower hereby irrevocably consents to the Lender releasing details
of the Loan to the media, radio, television, trade publications, magazines, web sites or other forms of media (collectively, the
“Media”) and hereby releases and holds Lender harmless from any liability arising out of the use or
publication of such information.

 

(w)
Commitment Fee. Upon the execution of this Agreement, Borrower shall pay to Lender a commitment fee in the amount of $61,250.00
in connection with the Loan.

 

7.
FINANCIAL COVENANTS AND REPORTING REQUIREMENTS.

 

(a)
Fixed Charge Coverage Ratio. At all times during the term of the Loan, Borrower, shall maintain a minimum Fixed Charge
Coverage Ratio of not less than 1.20 to 1.00. For purposes hereof, “Fixed Charge Coverage Ratio” shall
mean the ratio of (a) EBITDA, plus lease expenses, less Distributions, less payments made by Borrower under the Put Agreement
(including, without limitation, any payments due as a result of the occurrence of a Listing Failure Anniversary), less increases
in amounts due from shareholders (members) of Affiliates, to (b) to total debt service, inclusive of the Loan and all contractual
repayments of loans from shareholders (members), if applicable, plus lease expenses. This covenant shall be measured for compliance
quarterly commencing as of March 31, 2020, on a trailing 12-month period, upon Lender’s receipt of the financial statements
and other supporting documentation of Borrower required herein.

 

(b)
Operating Leverage. At all times during the term of the Loan, Borrower shall maintain a maximum Operating Leverage of not
more than 3.50 to 1.00. For purposes hereof, “Operating Leverage” shall mean total funded bank debt to EBITDA
for the trailing 12-month period. This covenant shall be measured quarterly upon Lender’s receipt of the financial statements
of Borrower required herein.

 

    	 	11	 

    	 

    

 

(c)
Depository Relationship; Treasury Services. In consideration for Lender’s agreement to make the Loan, and for the
interest rate and other terms agreed to by Lender (i) Borrower shall maintain with Lender all its depository accounts account(s)
at all times during the term of the Loan and, within one hundred fifty (150) days after the date hereof, shall implement with
and thereafter maintain with Lender all of its treasury services (including, without limitation, merchant card services), (ii)
Borrower, within thirty (30) days after the date hereof shall cause Parent to maintain with Lender all depository accounts with
respect to the payments received by Parent under those franchise agreements which have been assigned by Parent to Lender as security
for the Loan. If, by March 31, 2020, the depository accounts maintained by Borrower and Parent pursuant to the foregoing (specifically
excluding the account established under Section 3 above), fail to average, for any calendar month period, at least $3,800,000.00
in average daily balances, Borrower shall pay then to Lender a fee of $5,000.00. Thereafter, until such an average daily balance
amount of $3,800,000.00 has been achieved for a full quarterly period, Borrower shall continue to pay to Lender a fee of $5,000.00
at the end of each quarter. If such threshold is not met in the first month of a quarter, then such fee shall be payable at the
end of that quarter, notwithstanding that this threshold was subsequently met in that quarter. The afordescribed is paid to Lender,
in part, to compensate Lender for the loss of income suffered by Lender by reason of Borrower and Parent failing to maintain with
Lender deposit amounts which Lender expected when it made the Loan.

 

(d)
Borrower’s Annual Financial Statements. Within one hundred twenty (120) days after the end of each Fiscal Year, Borrower
shall supply Lender with (i) an annual audited financial statement for Borrower for the prior Fiscal Year in form acceptable to
Lender in its sole and absolute discretion, and (ii) such supporting documentation as Lender reasonably requests, if the 10-K
report of Parent fails to include a separate audited financial statement for Borrower.

 

(e)
Borrower’s Quarterly Financial Statements. Within sixty (60) days after the end of each fiscal quarter, Borrower
shall supply Lender with (i) a quarterly management-prepared financial statement for the Borrower for the prior fiscal quarter
in form acceptable to Lender in its sole and absolute discretion, prepared in accordance with GAAP and all other applicable statutes,
(ii) a covenant compliance certificate confirming compliance with the financial covenants set forth herein, in form satisfactory
to Lender in its sole and absolute discretion, and (iii) such supporting documentation as Lender reasonably requests, if the 10-Q
report of Borrower fails to include a separate quarterly financial statement for Borrower.

 

(f)
Parent’s 10-K Reports. Borrower shall provide to Lender a copy of each 10-K of Parent simultaneously with its filing
with the SEC, but in any event within one hundred twenty (120) days after the end of each Fiscal Year.

 

(g)
Parent’s Quarterly 10-Q Reports. Borrower shall provide to Lender a copy of each 10-Q of Parent simultaneously with
its filing with the SEC, but in any event within sixty (60) days after the end of each fiscal quarter.

 

(h)
Guarantor’ Financial Statements. Within forty-five (45) days after the end of each calendar year, Guarantor shall
supply Lender with (i) an annual personal financial statement, together with bank and brokerage statements for the prior calendar
year, in form acceptable to Lender in its sole and absolute discretion, and (ii) such supporting documentation as Lender reasonably
requests.

 

(i)
Guarantor Tax Returns. Within thirty (30) days of filing, Guarantor shall supply Lender with a copy of its annual federal
income tax returns, including, without limitation, K-1 statements for all Partnerships and Sub Chapter S Corporations, or, if
an extension is filed for any tax return, within thirty (30) days after any permitted extension date.

 

    	 	12	 

    	 

    

 

(j)
Form of Financial Statements. The form and content of each financial statement as required in Sections (d), (e) and (h)
above, shall be acceptable to Lender in its sole discretion, shall be certified by each party to be correct and complete, and
shall include a complete description of all contingent liabilities, including, without limitation, all indebtedness guaranteed.

 

For
ease of reference and for the convenience of the parties, all of the reporting requirements are being attached verbatim as Exhibit
“A” hereto. To the extent of any conflict between the parties, the terms of this Agreement shall control.

 

8.
DEFAULT. Upon the occurrence of any of the following events (each an “Event of Default” and collectively,
the “Events of Default”), Lender may at its option exercise any of its remedies set forth herein:

 

(a)
Borrower fails to perform any obligation under this Agreement or the Note, when due, whether on the scheduled due date or upon
acceleration, maturity or otherwise; or

 

(b)
A “Default” or an “Event of Default” (as defined in each respective document) occurs (beyond any applicable
notice and cure period) under any of the Loan Documents; or

 

(c)
If any material warranty or representation made by Borrowers in this Agreement or pursuant to the terms hereof shall at any time
be false or misleading in any material respect, and if of a curable nature, not be cured within fifteen (15) days after notice
from Lender to Borrower; or

 

(d)
The dissolution of, termination of existence of, loss of good standing status by Borrower, its subsidiaries or affiliates, if
any, or any party to the Loan Documents; or

 

(e)
Borrower or Guarantor becomes the subject of any bankruptcy or other voluntary or involuntary proceeding, in or out of court,
for the adjustment of debtor-creditor relationships and which, in the case of any involuntary proceeding, is not dismissed within
ninety (90) days of its filing; or

 

(f)
The entry of a judgment against Borrower or Guarantor which Lender deems to be of a material nature, in Lender’s sole discretion;
or

 

(g)
The seizure or forfeiture of, or the issuance of any writ of possession, garnishment or attachment, or any turnover order for
any property of Borrower or Guarantor; or

 

(h)
A material alteration in the kind or type of Borrower’s prospects or business, financial or otherwise, or in the financial
condition of the Guarantor, is made without the prior written consent of Lender; or

 

    	 	13	 

    	 

    

 

(i)
Lender determines in good faith, in its sole discretion, that the prospects for payment or performance of Borrower’s obligations
under the Loan Documents are impaired or there has occurred a material adverse change in the business or prospects of Borrower,
financial or otherwise; or

 

(j)
If Borrower or any Guarantor defaults under any loan, contract or agreement extended by Lender or any of its affiliates, as the
same may be amended, restated, modified or replaced from time to time; or

 

(k)
The failure of Borrower or Guarantor to timely provide any of the information as required in Section 8 above; or

 

(l)
The failure of Borrower to timely satisfy any of the covenants as required in Section 6(e), (f), (j), (k), (n), (o), (q) or (r)
above, or Section 8 above; or

 

(m)
Any default by Borrower under the Seller Note; or

 

(n)
The failure of the Borrower’s business to comply with any law or regulation controlling its operation.

 

9.
REMEDIES OF LENDER. Upon the happening of an Event of Default, then Lender may, at its option, upon written notice to Borrower:

 

(a)
Cancel this Agreement;

 

(b)
Commence an appropriate legal or equitable action to enforce performance of this Agreement;

 

(c)
Accelerate the payment of the Note and the Loan and any other sums secured by the Leasehold Mortgage, the Security Agreement and
the other Loan Documents, apply all or any portion of any equity funds toward payment of the Loan, and commence appropriate legal
and equitable action to collect all such amounts due Lender;

 

(d)
Exercise any other rights or remedies Lender may have under the Leasehold Mortgage, the Security Agreement or other Loan Documents
referred to in this Agreement or executed in connection with the Loan or which may be available under applicable law.

 

10.
GENERAL TERMS. The following shall be applicable throughout the period of this Agreement or thereafter as provided herein:

 

(a)
Rights of Third Parties. All conditions of the Lender hereunder are imposed solely and exclusively for the benefit of Lender
and its successors and assigns, and no other Person shall have standing to require satisfaction of such conditions or be entitled
to assume that Lender will make advances in the absence of strict compliance with any or all thereof, and no other Person shall,
under any circumstances, be deemed to be a beneficiary of this Agreement or the Loan Documents, any provisions of which may be
freely waived in whole or in part by the Lender at any time if, in its sole discretion, it deems it desirable to do so.

 

    	 	14	 

    	 

    

 

(b)
Borrower is not Lender’s Agent. Nothing in this Agreement, the Note, the Leasehold Mortgage, the Security Agreement
or any other Loan Document shall be construed to make the Borrower the Lender’s agent for any purpose whatsoever, or the
Borrower and Lender partners, or joint or co-venturers, and the relationship of the parties shall, at all times, be that of debtor
and creditor.

 

(c)
Loan Expense/Enforcement Expense. Borrower agrees to pay to Lender on demand all reasonable costs and expenses incurred
by Lender in seeking to enforce Lender’s rights and remedies under this Agreement, including court costs, costs of alternative
dispute resolution and reasonable attorneys’ fees and costs, whether or not suit is filed or other proceedings are initiated
hereon.

 

(d)
Evidence of Satisfaction of Conditions. Lender shall, at all times, be free independently to establish to its good faith
and satisfaction, and in its absolute discretion, the existence or nonexistence of a fact or facts which are disclosed in documents
or other evidence required by the terms of this Agreement.

 

(e)
Headings. The headings of the sections, paragraphs and subdivisions of this Agreement are for the convenience of reference
only, and shall not limit or otherwise affect any of the terms hereof.

 

(f)
Invalid Provisions to Affect No Others. If performance of any provision hereof or any transaction related hereto is limited
by law, then the obligation to be performed shall be reduced accordingly; and if any clause or provision herein contained operates
or would prospectively operate to invalidate this Agreement in part, then the invalid part of said clause or provision only shall
be held for naught, as though not contained herein, and the remainder of this Agreement shall remain operative and in full force
and effect.

 

(g)
Application of Interest to Reduce Principal Sums Due. In the event that any charge, interest or late charge is above the
maximum rate provided by law, then any excess amount over the lawful rate shall be applied by Lender to reduce the principal sum
of the Loan or any other amounts due Lender hereunder.

 

(h)
Governing Law. The laws of the State of Florida shall govern the interpretation and enforcement of this Agreement.

 

(i)
Number and Gender. Whenever the singular or plural number, masculine or feminine or neuter gender is used herein, it shall
equally include the others and shall apply jointly and severally.

 

(j)
Prior Agreement. To the extent necessary, this Agreement shall be deemed to be an amendment to any prior loan agreement
between Borrower and Lender, and in the event of a conflict between the terms of this Agreement or any such prior agreement, the
terms of this Agreement shall govern.

 

    	 	15	 

    	 

    

 

(k)
Waiver. If Lender shall waive any provisions of the Loan Documents, or shall fail to enforce any of the conditions or provisions
of this Agreement, such waiver shall not be deemed to be a continuing waiver and shall never be construed as such; and Lender
shall thereafter have the right to insist upon the enforcement of such conditions or provisions. Furthermore, no provision of
this Agreement shall be amended, waived, modified, discharged or terminated, except by instrument in writing signed by the parties
hereto.

 

(l)
Notices. All notices from the Borrower to Lender and Lender to Borrower required or permitted by any provision of this
Agreement shall be in writing and sent by registered or certified mail or nationally recognized overnight delivery service and
addressed as follows:

 

	 	TO
    LENDER:	CITY
    NATIONAL BANK OF FLORIDA
	 	 	25
    West Flagler Street
	 	 	Miami,
    Florida 33130
	 	 	Attention:
    Legal Department
	 	 	 
	 	TO
    BORROWER:	ARC
    WINGHOUSE LLC
	 	 	1409
    Kingsley Avenue, Suite 2
	 	 	Orange
    Park, Florida 32073
	 	 	Attention:
    Seenu G. Kasturi

 

Such
addresses may be changed by such notice to the other party. Notice given as hereinabove provided shall be deemed given on the
date of its deposit in the United States Mail and, unless sooner actually received, shall be deemed received by the party to whom
it is addressed on the third calendar day following the date on which said notice is deposited in the mail, or if a courier system
is used, on the date of delivery of the notice.

 

(m)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding on the parties hereto and their heirs,
legal representatives, successors and assigns; but nothing herein shall authorize the assignment hereof by the Borrower.

 

(n)
USA Patriot Act Notice. Lender hereby notifies Borrower and Guarantor that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), Lender is required
to obtain, verify and record information that identifies Borrower and Guarantor, which information includes the name and address
of Borrower and Guarantor and other information that will allow Lender to identify Borrower and Guarantor in accordance with the
Act.

 

(o)
Counterparts, Facsimiles. This Agreement may be executed in counterparts. Each executed counterpart of this Agreement will
constitute an original document, and all executed counterparts, together, will constitute the same agreement. Any counterpart
evidencing signature by one party that is delivered by facsimile by such party to the other party hereto shall be binding on the
sending party when such facsimile is sent, and such sending party shall within ten (10) days thereafter deliver to the other parties
a hard copy of such executed counterpart containing the original signature of such party or its authorized representative.

 

(p)
WAIVER OF JURY TRIAL. LENDER, BORROWER AND GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT ANY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT
AND ANY AGREEMENT TO BE CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER ENTERING INTO THIS AGREEMENT.

 

[CONTINUES
ON THE FOLLOWING PAGE

THIS SPACE IS INTENTIONALLY LEFT BLANK]

 

    	 	16	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed on the date first above written.

 

	 	BORROWER:
	 	 
	 	ARC WINGHOUSE LLC, a Florida limited liability company
	 	 
	 	By:
    	/s/
    Seenu G. Kasturi
	 	 	Seenu
    G. Kasturi, Manager
	 	 	 
	 	LENDER:
	 	 
	 	CITY NATIONAL BANK OF FLORIDA
	 	 	 
	 	By:	Lance
    Aylsworth
	 	Name:	Lance
    Aylsworth
	 	Title:	SVP

 

(Signature
Page to Loan Agreement)

 

    	 	 	 

    	 

    

 

JOINDER
OF GUARANTOR

 

Guarantor
hereby joins in and consents to the foregoing Loan Agreement. Without limiting the foregoing, Guarantor agrees to the terms of
the Loan Agreement applicable to Guarantor including, without limitation, the terms of Section 3.

 

	 	/s/
    Seenu G. Kasturi
	 	Seenu
    G. Kasturi

 

    	 	 	 

    	 

    

 

EXHIBIT
“A”

 

Financial
Reporting Requirements

 

FINANCIAL
COVENANTS AND REPORTING REQUIREMENTS.

 

(q)
Fixed Charge Coverage Ratio. At all times during the term of the Loan, Borrower, shall maintain a minimum Fixed Charge
Coverage Ratio of not less than 1.20 to 1.00. For purposes hereof, “Fixed Charge Coverage Ratio” shall
mean the ratio of (a) EBITDA, plus lease expenses, less Distributions, less payments made by Borrower under the Put Agreement
(including, without limitation, any payments due as a result of the occurrence of a Listing Failure Anniversary), less increases
in amounts due from shareholders (members) of Affiliates, to (b) to total debt service, inclusive of the Loan and all contractual
repayments of loans from shareholders (members), if applicable, plus lease expenses. This covenant shall be measured for compliance
quarterly commencing as of March 31, 2020, on a trailing 12-month period, upon Lender’s receipt of the financial statements
and other supporting documentation of Borrower required herein.

 

(r)
Operating Leverage. At all times during the term of the Loan, Borrower shall maintain a maximum Operating Leverage of not
more than 3.50 to 1.00. For purposes hereof, “Operating Leverage” shall mean total funded bank debt to EBITDA
for the trailing 12-month period. This covenant shall be measured quarterly upon Lender’s receipt of the financial statements
of Borrower required herein.

 

(s)
Depository Relationship; Treasury Services. In consideration for Lender’s agreement to make the Loan, and for the
interest rate and other terms agreed to by Lender (i) Borrower shall maintain with Lender all its depository accounts account(s)
at all times during the term of the Loan and, within one hundred fifty (150) days after the date hereof, shall implement with
and thereafter maintain with Lender all of its treasury services (including, without limitation, merchant card services), (ii)
Borrower, within thirty (30) days after the date hereof shall cause Parent to maintain with Lender all depository accounts with
respect to the payments received by Parent under those franchise agreements which have been assigned by Parent to Lender as security
for the Loan. If, by March 31, 2020, the depository accounts maintained by Borrower and Parent pursuant to the foregoing (specifically
excluding the account established under Section 3 above), fail to average, for any calendar month period, at least $3,800,000.00
in average daily balances, Borrower shall pay then to Lender a fee of $5,000.00. Thereafter, until such an average daily balance
amount of $3,800,000.00 has been achieved for a full quarterly period, Borrower shall continue to pay to Lender a fee of $5,000.00
at the end of each quarter. If such threshold is not met in the first month of a quarter, then such fee shall be payable at the
end of that quarter, notwithstanding that this threshold was subsequently met in that quarter. The afordescribed is paid to Lender,
in part, to compensate Lender for the loss of income suffered by Lender by reason of Borrower and Parent failing to maintain with
Lender deposit amounts which Lender expected when it made the Loan.

 

    	 	 	 

    	 

    

 

(t)
Borrower’s Annual Financial Statements. Within one hundred twenty (120) days after the end of each Fiscal Year, Borrower
shall supply Lender with (i) an annual audited financial statement for Borrower for the prior Fiscal Year in form acceptable to
Lender in its sole and absolute discretion, and (ii) such supporting documentation as Lender reasonably requests, if the 10-K
report of Parent fails to include a separate audited financial statement for Borrower.

 

(u)
Borrower’s Quarterly Financial Statements. Within sixty (60) days after the end of each fiscal quarter, Borrower
shall supply Lender with (i) a quarterly management-prepared financial statement for the Borrower for the prior fiscal quarter
in form acceptable to Lender in its sole and absolute discretion, prepared in accordance with GAAP and all other applicable statutes,
(ii) a covenant compliance certificate confirming compliance with the financial covenants set forth herein, in form satisfactory
to Lender in its sole and absolute discretion, and (iii) such supporting documentation as Lender reasonably requests, if the 10-Q
report of Borrower fails to include a separate quarterly financial statement for Borrower.

 

(v)
Parent’s 10-K Reports. Borrower shall provide to Lender a copy of each 10-K of Parent simultaneously with its filing
with the SEC, but in any event within one hundred twenty (120) days after the end of each Fiscal Year.

 

(w)
Parent’s Quarterly 10-Q Reports. Borrower shall provide to Lender a copy of each 10-Q of Parent simultaneously with
its filing with the SEC, but in any event within sixty (60) days after the end of each fiscal quarter.

 

(x)
Guarantor’ Financial Statements. Within forty-five (45) days after the end of each calendar year, Guarantor shall
supply Lender with (i) an annual personal financial statement, together with bank and brokerage statements for the prior calendar
year, in form acceptable to Lender in its sole and absolute discretion, and (ii) such supporting documentation as Lender reasonably
requests.

 

(y)
Guarantor Tax Returns. Within thirty (30) days of filing, Guarantor shall supply Lender with a copy of its annual federal
income tax returns, including, without limitation, K-1 statements for all Partnerships and Sub Chapter S Corporations, or, if
an extension is filed for any tax return, within thirty (30) days after any permitted extension date.

 

(z)
Form of Financial Statements. The form and content of each financial statement as required in Sections (d), (e) and (h)
above, shall be acceptable to Lender in its sole discretion, shall be certified by each party to be correct and complete, and
shall include a complete description of all contingent liabilities, including, without limitation, all indebtedness guaranteed.

 

For
ease of reference and for the convenience of the parties, all of the reporting (to be inserted here)ALL
FLORIDA DOCUMENTARY STAMP TAXES DUE ON THIS NOTE ARE BEING PAID ON THE MORTGAGE SECURING THIS NOTE

 

PROMISSORY
NOTE

 

	Date
    of Note:	October
    11, 2019
	 	 
	Amount
    of Note:	TWELVE
    MILLION TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($12,250,000.00)
	 	 
	Maturity
    Date:	October
    11, 2024, unless otherwise extended and/or accelerated pursuant to and in accordance with the terms and conditions set forth
    in this Note or extended as provided herein.

 

FOR
VALUE RECEIVED, ARC WINGHOUSE, LLC, a Florida limited liability company, the “Borrower”) hereby covenants and
promises to pay to the order of CITY NATIONAL BANK OF FLORIDA, its successors and/or assigns (the “Lender”), at 25
West Flagler Street, Miami, Florida 33130, or at such other place as Lender may designate to Borrower in writing from time to
time, in legal tender of the United States, TWELVE MILLION TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($12,250,000.00), together
with all accrued interest, which shall be due and payable upon the following terms and conditions contained in this Promissory
Note (this “Note”) and the Loan Agreement (as defined herein).

 

	A.	Interest
    Rate:

 

Interest
shall accrue on the unpaid principal balance of this Note from the date hereof at a fixed rate per annum equal to SIX PERCENT
(6%) (the “Interest Rate”).

 

Interest
on this Note shall be calculated on the basis of a 360 day year and charged for the actual number of days elapsed; that is, by
applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by
the actual number of days the principal balance is outstanding during the period for which the interest is being calculated. All
interest payable under this Note is computed using this method

 

	B.	Payment
    Terms:

 

Commencing
on November 11, 2019 and continuing on the eleventh (11th) day of each month thereafter, Borrower shall make equal monthly payments
of principal and interest in the amount of $179,481.31 each. Unless this Note is otherwise accelerated in accordance with the
terms and conditions hereof, the entire outstanding principal balance of this Note plus all accrued interest shall be due and
payable in full on October 11, 2024 (the “Maturity Date”).

 

	C.	Security:

 

This
Note is secured, in part, by that certain Leasehold Mortgage and Assignment of Leases (as the same may be amended or modified
from time to time, the “Mortgage”) from Borrower in favor of Lender and that certain Security Agreement from Borrower
in favor of Lender (as the same may be amended or modified from time to time, the “Security Agreement”), granting
Lender a lien and security interest in and to all assets owned by Borrower.

 

    	Page 1

    	 

    

 

	D.	Loan
    Documents:

 

This
Note, the Mortgage, the Security Agreement, that certain Loan Agreement dated as of even date herewith by and between Borrower
and Lender (as the same may be amended, restated, modified or replaced from time to time, the “Loan Agreement”), that
certain Guaranty of Payment and Performance dated as of even date herewith from Seenu G. Kasturi (the “Guarantor”)
in favor of Lender (as the same may be amended, restated, modified or replaced from time to time, the “Guaranty”),
and all other documents and instruments executed in connection with this Note are hereinafter individually and/or collectively
referred to as the “Loan Documents”.

 

	E.	Default
    Interest Rate:

 

All
principal and installments of interest shall bear interest from the date that said payments are due and unpaid or from the date
of occurrence of any other Event of Default (as hereinafter defined) under this Note, the Mortgage, the Security
Agreement or any other Loan Document, at a rate equal to the highest rate authorized by applicable law (the “Default Rate”).

 

	F.	Prepayment/Prepayment
    Compensation]:

 

Borrower
may make prepayments of principal under this Note, provided, however, (i) if Borrower prepays any portion of the outstanding
balance of this Note during the first year of the term of this Note, Borrower shall pay a fee to Lender in an amount equal to
3% of the amount prepaid by Borrower in excess of $2,250,000, (ii) if Borrower prepays any portion of the outstanding balance
of this Note during the second year of the term of this Note, Borrower shall pay to Lender a fee in an amount equal to 2% of the
amount prepaid by Borrower, and (iii) if Borrower prepays any portion of the outstanding balance of this Note during the third
(3rd) year of the term of this Note, Borrower shall pay to Lender a fee in an amount equal to 1% of the amount prepaid
by Borrower. Thereafter, Borrower may make prepayments of principal under this Note without penalty or premium. Any prepayment
under this Note shall be applied to the outstanding principal balance of this Note in any manner determined by Lender, in its
sole discretion. No prepayment shall cause a reamortization of the outstanding principal balance under this Note.

 

	G.	Late
    Charges:

 

Lender
may collect a late charge not to exceed an amount equal to five percent (5%) of any installment which is not paid within ten (10)
days of the due date thereof, to cover the extra expense involved in handling delinquent payments, provided that collection of
said late charge shall not be deemed a waiver by Lender of any of its rights under this Note. Notwithstanding the foregoing, there
shall be no grace period or late charges for payments due on the outstanding principal balance due on the Maturity Date or upon
acceleration, as set forth in Section H below, but such outstanding balance shall accrue interest at the Default Rate. The late
charge is intended to compensate the Lender for administrative and processing costs incident to late payments. The late charge
payments are not interest. The late charge payment shall not be subject to rebate or credit against any other amount due. Any
late charge shall be in addition to any other interest due.

 

    	Page 2

    	 

    

 

	H.	Default
    and Acceleration:

 

If
any of the following “Events of Default” occur, at the Lender’s option, exercisable in its sole discretion,
all sums of principal and interest under this Note shall be accelerated and become immediately due and payable without notice
of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any
kind or character, and the Lender shall be immediately entitled to exercise all of its available remedies under the Loan Documents:

 

a.
Borrower fails to perform any obligation under this Note to pay principal or interest when due; or

 

b.
A “Default” or an “Event of Default” (as defined in each respective document) beyond any applicable notice
and cure period occurs under any of the Loan Documents.

 

In
any such event, all sums of principal and interest under this Note shall automatically become immediately due and payable without
notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands
of any kind or character. All persons now or at any time liable for payment of this Note hereby waive presentment, protest, notice
of protest and dishonor. The Borrower expressly consents to any extension or renewal, in whole or in part, and all delays in time
of payment or other performance which Lender may grant at any time and from time to time without limitation and without any notice
or further consent of the undersigned.

 

The
remedies of Lender as provided herein, or in the Security Agreement, the Loan Agreement or the other Loan Documents shall be cumulative
and concurrent and may be pursued singularly, successively or together, at the sole discretion of Lender, and may be exercised
as often as the occasion therefor shall arise.

 

The
Lender may, in the sole discretion of Lender, accept payments made by Borrower after any default has occurred, without waiving
any of Lender’s rights herein.

 

	I.
    	Costs:

 

In
the event that this Note is collected by law or through attorneys at law, or under advice therefrom (whether such attorneys are
employees of Lender or an affiliate of Lender or are outside counsel), Borrower and any endorser, guarantor or other person primarily
or secondarily liable for payment hereof hereby, severally and jointly agree to pay all costs of collection, including attorneys’
fees, including charges for paralegals, appraisers, experts and consultants working under the direction or supervision of Lender’s
attorneys; costs for evaluating preserving or disposing of any collateral granted as security for payment of this Note, including
the costs of any audits, environmental inspections which Lender may deem necessary form time to time; any premiums for property
insurance purchased on behalf of Borrower, or any other charges permitted by applicable law, whether or not suit
is brought, and whether incurred in connection with collection, trial, appeal, bankruptcy or other creditors’ proceedings
or otherwise.

 

	J.	Loan
    Charges:

 

Nothing
herein contained, nor any transaction related thereto, shall be construed or so operate as to require Borrower or any person liable
for the repayment of same, to pay interest in an amount or at a rate greater than the maximum allowed by applicable law. Should
any interest or other charges paid by Borrower, or any parties liable for the payment of the loan made pursuant to this Note,
result in the computation or earning of interest in excess of the maximum legal rate of interest permitted under the law in effect
while said interest is being earned, then any and all of such excess shall be and is waived by Lender, and all such excess shall
be automatically credited against and in reduction of the principal balance, and any portion of the excess that exceeds the principal
balance shall be paid by Lender to Borrower or any parties liable for the payment of the loan made pursuant to this Note so that
under no circumstances shall the Borrower, or any parties liable for the payment of the loan hereunder, be required to pay interest
in excess of the maximum rate allowed by applicable law.

 

    	Page 3

    	 

    

 

	K.	Jurisdiction:

 

The
laws of the State of Florida shall govern the interpretation and enforcement of this Note. In the event that legal action is instituted
to collect any amounts due under, or to enforce any provision of, this instrument, Borrower and any endorser, guarantor or other
person primarily or secondarily liable for payment hereof consent to, and by execution hereof submit themselves to, the jurisdiction
of the courts of the State of Florida, and, notwithstanding the place of residence of any of them or the place of execution of
this instrument, such litigation may be brought in or transferred to a court of competent jurisdiction in and for Miami-Dade County,
Florida.

 

	L.	Assignment:

 

Lender
shall have the unrestricted right at any time and from time to time and without Borrower’s or Guarantor’s consent,
to assign all or any portion of its rights and obligations hereunder to one or more lenders or Purchasers (each, an “Assignee”)
under this Note and the Loan Documents and all information now or hereafter in its possession relating to the Borrower and all
Guarantors (all rights of privacy hereby being waived, and to retain any compensation received by Lender in connection with any
such transaction and Borrower and Guarantor agrees that it shall execute such documents, including without limitation, the delivery
of an estoppels certificate and such other documents as Lender shall deem necessary to effect the foregoing. The Borrower hereby
waive any notice of the transfer of this Note by the Lender or by any other subsequent holder of this Note and agree to be bound
by the terms of the Note subsequent to any transfer and agree that the terms of the Note maybe fully enforced by any subsequent
holder of this Note.

 

	M.	Non-Waiver:

 

The
failure at any time of Lender to exercise any of its options or any other rights hereunder shall not constitute a waiver thereof,
nor shall it be a bar to the exercise of any of its options or rights at a later date. All rights and remedies of Lender shall
be cumulative and may be pursued singly, successively or together, at the option of Lender.

 

	N.	Right
    of Setoff:

 

In
addition to all liens upon and rights of setoff against the Borrower’s money, securities or other property given to the
Lender by law, the Lender shall have, with respect to the Borrower’s obligations to the Lender under this Note and to the
extent permitted by law, a contractual possessory security interest in and a contractual right of setoff against, and the Borrower
hereby grants the Lender a security interest in, and hereby assigns, conveys, delivers, pledges and transfers to the Lender, all
of the Borrower’s right, title and interest in and to, all of the Borrower’s deposits, moneys, securities and other
property now or hereafter in the possession of or on deposit with, or in transit to, the Lender, whether held in a general or
special account or deposit, whether held jointly with someone else, or whether held for safekeeping or otherwise, excluding, however,
all IRA, Keogh, and trust accounts. Every such security interest and right of setoff may be exercised without demand upon or notice
to the Borrower. Every such right of setoff shall be deemed to have been exercised immediately upon the occurrence of an Event
of Default hereunder without any action of the Lender, although the Lender may enter such setoff on its books and records at a
later time.

 

    	Page 4

    	 

    

 

	

    O.	Miscellaneous:

 

	 	1.	TIME
    IS OF THE ESSENCE OF THIS NOTE.
	 	 	 
	 	2.	It
    is agreed that the granting to Borrower or any other party of an extension or extensions of time for the payment of any sum
    or sums due under this Note or under any other Loan Document or for the performance of any covenant or stipulation thereof
    or the taking of other or additional security shall not in any way release or affect the liability of Borrower under this
    Note or any of the Loan Documents.
	 	 	 
	 	3.	This
    Note may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any waiver,
    change, modification or discharge is sought.
	 	 	 
	 	4.	All
    parties to this Note, whether Borrower, principal, surety, guarantor or endorser, hereby waive presentment for payment, demand,
    notice, protest, notice of protest and notice of dishonor.
	 	 	 
	 	5.	Notwithstanding
    anything herein to the contrary, the obligations of Borrower under this Note shall be subject to the limitation that payments
    of interest shall not be required to the extent that receipt of any such payment by Lender would be contrary to provisions
    of law applicable to Lender limiting the maximum rate of interest which may be charged or collected by Lender. In the event
    that any charge, interest or late charge is above the maximum rate provided by law, then any excess amount over the lawful
    rate shall be applied by Lender to reduce the principal sum of the Loan or any other amounts due Lender hereunder.
	 	 	 
	 	6.	Borrower
    acknowledges that Lender shall have no obligation whatsoever to renew, modify or extend this Note or to refinance the indebtedness
    under this Note upon the maturity thereof, except as specifically provided herein.
	 	 	 
	 	7.	Lender
    shall have the right to accept and apply to the outstanding balance of this Note and all payments or partial payments received
    from Borrower after the due date therefor, whether this Note has been accelerated or not, without waiver of any of Lender’s
    rights to continue to enforce the terms of this Note and to seek any and all remedies provided for herein or in any instrument
    securing the same, including, but not limited to, the right to foreclose on such security.
	 	 	 
	 	8.	All
    amounts received by Lender shall be applied to expenses, late fees and interest before principal or in any other order as
    determined by Lender, in its sole discretion, as permitted by law. 
	 	 	 
	 	9.	Borrower
    shall not assign Borrower’s rights or obligations under this Note without Lender’s prior consent.

 

    	Page 5

    	 

    

 

	 	10.	The
    term “Borrower” as used herein, in every instance shall include the makers of this Note, and its heirs, executors,
    administrators, successors, legal representatives and assigns, and shall denote the singular and/or plural, the masculine
    and/or feminine, and natural and/or artificial persons whenever and wherever the context so requires or admits.
	 	 	 
	 	11.	If
    more than one party executes this Note, all such parties shall be jointly and severally liable for the payment of this Note.
	 	 	 
	 	12.	If
    any clause or provision herein contained operates or would prospectively operate to invalidate this Note in part, then the
    invalid part of said clause or provision only shall be held for naught, as though not contained herein, and the remainder
    of this Note shall remain operative and in full force and effect.

 

	P.	Waiver
    of Jury Trial:

 

BORROWER
AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED
IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER
PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER TO EXTEND TO BORROWER THE LOAN EVIDENCED BY THIS NOTE.

 

[CONTINUES
ON FOLLOWING PAGE]

 

    	Page 6

    	 

    

 

Borrower
has duly executed this Note effective as of the date set forth hereinabove.

 

	 	BORROWER:
	 	 
	 	ARC
    WINGHOUSE LLC, a Florida limited liability company
	 	 
	 	By:	/s/
    Seenu G. Kasturi
	 	 	Seenu
    G. Kasturi, Manager

 

	STATE
    OF FLORIDA	)
	 	)
    SS:
	COUNTY
    OF DUVAL	)

 

The
foregoing instrument was acknowledged before me this 10th day of October, 2019, by Seenu G. Kasturi, as Manager of ARC WINGHOUSE,
LLC, a Florida limited liability company, on behalf of the company. He personally appeared before me, is personally known to
me or produced _______________________ as identification.

 

	 	Notary:    /s/ Elizabeth Binkoski
	[NOTARIAL
    SEAL]	Print
    Name: /s/ Elizabeth Binkoski
	 	Notary
    Public, State of Florida
	 	My
commission expires: March 21, 2021

 

    	Page 7

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