Document:

LOAN
AND SECURITY AGREEMENT

 

THIS
LOAN AND SECURITY AGREEMENT, dated as of
June 1,2014 is entered into by and between ZIMAS 
LLC, a Florida Limited

 

Liability
Company with principal address at _________________________________ ___ _____________ (the “Lender”), and HELPFUL
ALLIANCE COMPANY, a Florida corporation with principal address 700 West Hillsboro Blvd, Suite 1-100, Deerfield
Beach, FL 33312 (the “Borrower”).

 

WHEREAS,
the Borrower desires to borrow money from
the Lender, and

 

WHEREAS,
the Lender is willing to lend money to the
Borrower (the “Loan”), and

 

NOW
THEREFORE, in consideration of the premises,
and the mutual covenants and agreements set forth herein, the Borrower agrees to borrow money from the Lender, and the Lender
agrees to lend money to the Borrower, subject to and upon the following terms and conditions:

 

AGREEMENT:

 

Section
1. Definitions

 

	1.1	Defined
                                         Terms.
                                         For the purposes of this Agreement, the following capitalized words and phrases shall
                                         have the meanings set forth below.

 

		(1)	“Loan”
                                         shall
                                         mean commercial loan provided by the Lender to the Borrower for purposes of financing
                                         the Borrower’s business operations. There is no specific use of funds specified
                                         by the Lender. The Borrower may use the principal amount of the Loan as the Buyer sees
                                         fits.
	 	 	 
		(2)	“Loan
                                         Amount”
                                         shall mean direct cash amount identified below in Section 2.1(1).
	 	 	 
		(3)	“Loan
                                         Date”
                                         shall mean the date on which the Loan Amount is received as accounted by the Borrower’s
                                         bank account in the United States.
	 	 	 
		(4)	“Affiliate”
                                         of
                                         any person or entity shall mean (a) any other person or entity which, directly or indirectly,
                                         controls or is controlled by or is under common control with such person or entity, (b)
                                         any officer or director of such entity, and (c) with respect to the Lender, any entity
                                         administered or managed by the Lender, or an Affiliate or investment advisor thereof
                                         and which is engaged in making, purchasing, holding or otherwise investing in commercial
                                         loans. A person or entity shall be deemed to be ’‘controlled by” any
                                         other person or entity if such person or entity possesses, directly or indirectly, power
                                         to direct or cause the direction of the management and policies of such person or entity
                                         whether by contract, ownership of voting securities, membership interests or otherwise.

 

    	 	 	 

    	 	 	 

    

 

		(5)	“Term”
                                         shall
                                         mean period specified below in Section 2.1(2).
	 	 	 
		(6)	“Collateral
                                         shall
                                         mean common shares of the Borrower as described in Section 5.5 below.
	 	 	 
		(7)	“Early
                                         Withdrawal Penalty”
                                         shall mean a fee charged by the Borrower to the Lender in the case of earlier termination
                                         of the Term in accordance with Section 5.3.
	 	 	 
		(8)	“Early
                                         Withdrawal Discount”
                                         shall mean a fee charged by the Borrower to the Lender in the case of earlier termination
                                         of the Term in accordance with Section 2.1(3).
	 	 	 
		(9)	“Lenderruvtcy
                                         Code”
                                         shall mean the United States Lenderruptcy Code, as now existing or hereafter amended.
	 	 	 
		(10)	“Business
                                         Day”
                                         shall mean any day other than a Saturday, Sunday or a legal holiday on which Lenders
                                         are authorized or required to be closed for the conduct of commercial lending business
                                         in Miami, Florida.
	 	 	 
		(11)	“Confidential
                                         Information”
                                         shall mean all information provided by the Borrower or any of its Affiliates to the Lender
                                         including, without limitation, any and all financial information prepared on a pro forma
                                         basis, but excluding all information that is available to the Lender on a non-confidential
                                         basis prior to disclosure by the Borrower or any of its Affiliates or from any other
                                         natural or legal person on behalf of the Borrower.

 

    	 	 	 

    	 	 	 

    

 

		(12)	“Control
                                         Group” shall mean (a) the Current Ownership over the Borrower; (b)
                                         spouses (including surviving spouses), lineal descendants and spouses (including surviving
                                         spouses) of lineal descendants of Current Ownership; (c) the estates or legal representatives
                                         of the natural or legal persons named in clauses (a) or (b); (d) any trust, custodianship
                                         or other fiduciary arrangement in respect of which one or more members of Current Ownership
                                         (i) are the principal beneficiaries and (ii) constitute a majority of the trustees, custodians
                                         or other fiduciaries with voting power over such trust, custodianship or other fiduciary
                                         arrangement; and (e) a voting trust, a majority of whose trustee(s) is (are) member(s)
                                         of the Current Ownership, if a majority of the holders of voting trust certificates are
                                         members of the Current Ownership. For purposes of this definition, “lineal descendants”
                                         shall include adopted persons who are twelve years of age or under at the time of adoption.
	 	 	 
		(13)	“Current
                                         Ownership”
                                         shall mean the Person or Persons who, as of the date of this Agreement, collectively
                                         own and control, directly or indirectly, legally and beneficially, at least 50% of the
                                         outstanding Capital Securities of the Borrower having voting rights in the election of
                                         directors in normal circumstances.
	 	 	 
		(14)	“Debt”
                                         shall
                                         mean, as to any Person, without duplication, (a) all indebtedness of such Person; (b)
                                         all borrowed money of such Person (including principal, interest, fees and charges),
                                         whether or not evidenced by bonds, debentures, notes or similar instruments; (c) all
                                         obligations to pay the deferred purchase price of property or services; (d) all obligations,
                                         contingent or otherwise, with respect to the maximum face amount of all letters of credit
                                         (whether or not drawn), Lenders’ acceptances and similar obligations issued for
                                         the account of such Person, and all unpaid drawings in respect of Lenders’ acceptances
                                         and similar obligations; (e) all indebtedness secured by any Lien on any property owned
                                         by such Person, whether or not such indebtedness has been assumed by such Person (provided,
                                         however, if such Person has not assumed or otherwise become liable in respect of such
                                         indebtedness, such indebtedness shall be deemed to be in an amount equal to the fair
                                         market value of the property subject to such Lien at the time of determination); (f)
                                         the aggregate amount of all Capitalized Lease Obligations of such Person; (g) all Contingent
                                         Liabilities of such Person, whether or not reflected on its balance sheet; (h) all Hedging
                                         Obligations of such Person; (i) all Debt of any partnership of which such Person is a
                                         general partner; and (j) all monetary obligations of such Person under (i) a so-called
                                         synthetic, off-balance sheet or tax retention lease, or (ii) an agreement for the use
                                         or possession of property creating obligations that do not appear on the balance sheet
                                         of such Person but which, upon the insolvency or Lenderruptcy of such Person, would be
                                         characterized as the indebtedness of such Person (without regard to accounting treatment).
                                         Notwithstanding the foregoing, Debt shall not include trade payables and accrued expenses
                                         incurred by such Person in accordance with customary practices and in the ordinary course
                                         of business of such Person.

 

    	 	 	 

    	 	 	 

    

 

		(15)	“GAAP”
                                         shall
                                         mean generally accepted accounting principles set forth from time to time in the opinions
                                         and pronouncements of the Accounting Principles Board and the American Institute of Certified
                                         Public Accountants and statements and pronouncements of the Financial Accounting Standards
                                         Board (or agencies with similar functions of comparable stature and authority within
                                         the U.S. accounting profession), which are applicable to the circumstances as of the
                                         date of determination, provided, however, that interim financial statements or reports
                                         shall be deemed in compliance with GAAP despite the absence of footnotes and fiscal year-end
                                         adjustments as required by GAAP.
	 	 	 
		(16)	“Indemnified
                                         Party”
                                         and “Indemnified
                                         Parties” shall mean, respectively, each of the Lender and any of the
                                         Lender’s representatives, Affiliate or Subsidiary of the Lender, and each of their
                                         respective officers, directors, employees, attorneys and agents, and all of such parties
                                         and entities.
	 	 	 
		(17)	“Interest
                                         Rate”
                                         shall mean a per annum rate of interest identified in Section 3.10 below.
	 	 	 
		(18)	“Interest
                                         Period”
                                         shall mean actual successive quarterly periods beginning and ending on the dates revolving
                                         by each fiscal quarter of the Borrower.
	 	 	 
		(19)	“Liabilities”
                                         shall
                                         mean all liabilities of the Borrower that would be shown as such on a balance sheet of
                                         the Borrower prepared in accordance with GAAP.
	 	 	 
		(20)	“Obligations”
                                         shall
                                         mean the Loan plus all interest accrued thereon (including interest which would be payable
                                         as post-petition in connection with any Lenderruptcy or similar proceeding, whether or
                                         not permitted as a claim thereunder), any fees due the Lender hereunder, any expenses
                                         incurred by the Lender hereunder and any and all other liabilities and obligations of
                                         the Borrower to the Lender whether under this Agreement.

 

    	 	 	 

    	 	 	 

    

 

		(21)	“Person”
                                         shall
                                         means an individual, partnership, corporation, limited liability company, association,
                                         trust, unincorporated organization or any other entity or organization, including a government
                                         or agency or political subdivision thereof.
	 	 	 
		(22)	“Failure
                                         To Repay”
                                         shall mean non-payment of the Loan Amount by the Borrower to the Lender on or before
                                         the Maturity Date of the Promissory Note issued under this Agreement.

 

	1.2	Accounting
                                         Terms.
                                         Any accounting terms used in this Agreement which are not specifically defined herein
                                         shall have the meanings customarily given them in accordance with GAAP. Calculations
                                         and determinations of financial and accounting terms used and not otherwise specifically
                                         defined hereunder and the preparation of financial statements to be furnished to the
                                         Lender pursuant hereto shall be made and prepared, both as to classification of items
                                         and as to amount, in accordance with sound accounting practices and GAAP as used in the
                                         preparation of the financial statements of the Borrower on the date of this Agreement.
                                         If any changes in accounting principles or practices from those used in the preparation
                                         of the financial statements are hereafter occasioned by the promulgation of rules, regulations,
                                         pronouncements and opinions by or required by the Financial Accounting Standards Board
                                         or the American Institute of Certified Public Accountants (or any successor thereto or
                                         agencies with similar functions), which results in a material change in the method of
                                         accounting in the financial statements required to be furnished to the Lender hereunder
                                         or in the calculation of financial covenants, standards or terms contained in this Agreement,
                                         the parties hereto agree to enter into good faith negotiations to amend such provisions
                                         so as equitably to reflect such changes to the end that the criteria for evaluating the
                                         financial condition and performance of the Borrower will be the same after such changes
                                         as they were before such changes; and if the parties fail to agree on the amendment of
                                         such provisions, the Borrower will furnish financial statements in accordance with such
                                         changes, but shall provide calculations, which are reviewed and certified by the Borrower’s
                                         accountants, for all financial covenants, shall perform all financial covenants and shall
                                         otherwise observe all financial standards and terms in accordance with applicable accounting
                                         principles and practices in effect immediately prior to such changes. Calculations with
                                         respect to financial covenants required to be stated in accordance with applicable accounting
                                         principles and practices in effect immediately prior to such changes shall be reviewed
                                         and certified by the Borrower’s accountants.

 

    	 	 	 

    	 	 	 

    

 

	1.3	Other
                                         Interpretive Provisions:

 

		(1)	The
                                         meanings of defined terms are equally applicable to the singular and plural forms of
                                         the defined terms. Whenever the context so requires, the neuter gender includes the masculine
                                         and feminine, the single number includes the plural, and vice versa, and in particular
                                         the word “Borrower” shall be so construed.
	 	 	 
		(2)	The
                                         words “hereof,
                                         “herein”
                                         and “hereunder”
                                         and words of similar import when used in this Agreement shall refer to this Agreement
                                         as a whole and not to any particular provision of this Agreement.
	 	 	 
		(3)	The
                                         term “including”
                                         is not limiting, and means “including, without limitation”.
	 	 	 
		(4)	In
                                         the computation of periods of time from a specified date to a later specified date, the
                                         word “from”
                                         means “from
                                         and including” and the words “to”
                                         and “until”
                                         each mean “to but excluding”, and the word “through”
                                         means “to and including”.
	 	 	 
		(5)	Unless
                                         otherwise expressly provided herein, (i) references to agreements (including this Agreement
                                         and other Loan Documents) shall be deemed to include all subsequent amendments, restatements,
                                         supplements and other modifications thereto, but only to the extent such amendments,
                                         restatements, supplements and other modifications are not prohibited by the terms of
                                         any Loan Document, and (ii) references to any statute or regulation shall be construed
                                         as including all statutory and regulatory provisions amending, replacing, supplementing
                                         or interpreting such statute or regulation.

 

    	 	 	 

    	 	 	 

    

 

Section
2. Commitment of the Lender

 

	2.1.	Commitments.
                                         Subject
                                         to the terms and conditions of this Agreement and in reliance upon the representations
                                         and warranties of the Borrower set forth herein:

 

		(1)	Loan
                                         Amount.
                                         The Lender will provide the Borrower with the Loan in the amount of Four Hundred Thousand
                                         ($400,000.00) U.S. Dollars.

 

		(2)	Loan
                                         Purpose.
                                         The Lender provides the Loan, directly or in cooperation with other financiers, for the
                                         purpose of financing the Borrower’s business operations with unspecified use of
                                         the Loan proceeds (“Loan
                                         Purpose”). After the receipt of the Loan the Borrower shall be free
                                         to use the Loan Amount at the Borrower’s sole discretion.

 

		(3)	Term.
                                         Early Withdrawal Discount.
                                         The Lender agrees to provide the Loan to the Borrower starting from the Loan Date and
                                         for the duration of Thirty Six (36) months. The Lender agrees that if, under any circumstances
                                         and for any cause, the Lender withdraws the Loan or requires the Borrower to sell the
                                         Loan to any third party prior to expiration of the Term, the principal Loan Amount shall
                                         be discounted by Twenty (20%) percent (“Discount”),
                                         and, in this case, full repayment of the principal Loan Amount to the Lender will be
                                         equal to the Loan Amount less Discount, to which the Lender agrees in advance.

 

		(4)	Sub-Loans.
                                         The
                                         Lender hereby grants to the Borrower the right to issue sub-loans using proceeds from
                                         the Loan with such sub-loans bearing the interest rates as the Borrower sees fits and
                                         at the Borrower’s sole discretion.

 

	2.2.	Loan
                                         Initiation.
                                         No additional notice shall be required from the Borrower to the Lender in order for the
                                         Lender to initiate remittance of the Loan Amount under this Agreement.
	 	 
	2.3.	Lending.
                                         The
                                         Loan shall be paid to the Borrower by the Lender in the immediately available funds remitted
                                         within ten (10) business days immediately following the execution of this Agreement.
                                         The receipt of the Loan Amount by the Borrower’s bank account shall be, absent
                                         manifest error, constituting the prima facie evidence of the principal amount of the
                                         Loan issued to the Borrower and the failure to record any such principal amount or any
                                         error in recording such principal amount shall not limit or otherwise affect the Obligations
                                         of the parties under this Agreement.
	 	 
	2.4.	Lending
                                         Relationship.
                                         The relationship hereby created between the Borrower and the Lender is and has been conducted
                                         on an open and arm’s length basis in which no fiduciary relationship exists between
                                         the Lender and the Borrower.

 

    	 	 	 

    	 	 	 

    

 

Section
3. Commitment of the Borrower

 

	3.1	Borrower
                                         Organization and Name.
                                         The Borrower is duly organized, existing and in good standing, with full and adequate
                                         power to carry on and conduct its business as presently conducted. The Borrower is duly
                                         licensed or qualified in all jurisdictions wherein the nature of its activities requires
                                         such qualification or licensing. The exact legal name of the Borrower is as set forth
                                         in the first paragraph of this Agreement.
	 	 
	3.2	Authorization.
                                         The
                                         Borrower and its officer executing this Agreement have full right, power and authority
                                         to enter into this Agreement, to make the borrowings and execute and accept the Loan
                                         as provided herein and to perform all of its duties and obligations under this Agreement.
                                         The execution and delivery of this Agreement and the other Loan Documents will not, nor
                                         will the observance or performance of any of the matters and things herein or therein
                                         set forth, violate or contravene any provision of law or of the Borrower’s organizational
                                         documents, nor require any consent, approval, authorization, or filings with, notice
                                         to or other act by or in respect of, any governmental authority or any other party (other
                                         than any consent or approval which has been obtained and is in full force and effect).
                                         All necessary and appropriate action has been taken on the part of the Borrower to authorize
                                         the execution and delivery of this Agreement and the Loan Documents.
	 	 
	3.3	Use
                                         of Funds.
                                         The Borrower shall not divert the loan proceeds for any purposes other than stated in
                                         Sections 2.1(2) and 2.1(4), including but not limited to investing the Loan proceeds
                                         in stock or any unsecured investment instruments, or in projects forbidden or unauthorized
                                         by any laws, regulations, regulatory rules and policies, or in any other projects, without
                                         the Lender’s written consent.
	 	 
	3.4	Validity
                                         and Binding Nature.
                                         This Agreement and the Promissory Note under this Agreement are legal, valid and binding
                                         obligations of the Borrower, enforceable against the Borrower in accordance with their
                                         terms, subject to the Lenderruptcy Code, insolvency and similar laws affecting the enforceability
                                         of creditors’ rights generally and to general principles of equity.

 

    	 	 	 

    	 	 	 

    

 

	3.5	Equity
                                         Ownership.
                                         The issued and outstanding capital securities of the Borrower are duly authorized and
                                         validly issued, fully paid by the Control Group that includes the corporate officer executing
                                         this Agreement, and such securities were issued in compliance with all applicable state
                                         and federal laws concerning the issuance of securities. The Control Group owns and controls
                                         the Borrower.
	 	 
	3.6	No
                                         Judgments.
                                         No judgments currently exist against the Borrower and the Borrower is not in Default
                                         of any other contract or agreement to which it is a party that would have a material
                                         adverse effect on the Loan.
	 	 
	3.7	Compliance
                                         with Regulation U.
                                         No portion of the Loan proceeds will be used by the Borrower, either directly or indirectly,
                                         for the purpose of purchasing or carrying any marginable stock, within the meaning of
                                         Regulation U as adopted by the Board of Governors of the Federal Reserve System or any
                                         successor thereto.
	 	 
	3.8	Place
                                         of Business.
                                         The principal place of business and books and records of the Borrower is set forth in
                                         the preamble to this Agreement and the Borrower shall promptly notify the Lender of any
                                         change in such location.
	 	 
	3.9	Continuing
                                         Existence.
                                         The Borrower shall at all times preserve and maintain its (a) existence and good standing
                                         in the jurisdiction of its organization, and (b) qualification to do business and good
                                         standing in each jurisdiction where the nature of its business makes such qualification
                                         necessary (other than such jurisdictions in which the failure to be qualified or in good
                                         standing could not reasonably be expected to have a Material Adverse Effect), and shall
                                         at all times continue as a going concern in the business which the Borrower is presently
                                         conducting.
	 	 
	3.10	Interest
                                         Payments are Borrower’s Responsibility.
                                         The Borrower shall be solely responsible for collecting of interest payments on all of
                                         its sub-loans and promptly remitting the Interest payments to the Lender.
	 	 
	3.11	Repayment
                                         of the Loan.
                                         The Borrower shall repay the Loan Amount in full with all occurred and unpaid Interest
                                         on or before the Maturity Date stated in the Promissory Note issued under this Agreement
                                         without any notice from the Lender. Within ten (10) Business Days from the Loan Date
                                         the Lender will provide to the Borrower the wire transfer instructions stating the Lender’s
                                         bank account information to which the Borrower shall repay the Loan.
	 	 
	3.12	Taxes.
                                         Within
                                         twenty (20) Business Days of each calendar year following the Loan Date the Borrower
                                         will mail to the Lender U.S. IRS Form 1099 via certified mail delivery. The Lender will
                                         be responsible for remittance all of its income taxes due and payable on the Interest
                                         received from the Borrower.

 

    	 	 	 

    	 	 	 

    

  

Section
4. Interest and Interest Rates.

 

	4.1	Interest
                                         Rate.
                                         The Loan shall bear simple interest at a rate of Eight [8.0%] percent per annum which
                                         shall start occurring from the Loan Date and continue until the Loan Amount is paid in
                                         full. This Loan is the interest-only Loan.
	 	 
	4.2	Interest
                                         Payment Dates.
                                         Accrued and unpaid Interest on the unpaid principal balance of the Loan shall be paid
                                         within twenty Business Days from the end of each fiscal year lapsing from the Loan date,
                                         with first such fiscal year ending on December 31, 2014.
	 	 
	4.3	Interest
                                         Computation.
                                         Except as otherwise set forth herein, all interest and fees shall be calculated on the
                                         basis of a year consisting of 360 days and shall be paid for the actual number of days
                                         elapsed. Principal payments submitted in funds not immediately available shall continue
                                         to bear the Interest until collected.

 

Section
5. Liabilities for Breach of the Contract

 

	5.1	Violation
                                         of Loan Purpose.
                                         If the Borrower uses the Loan for any Loan Purpose other than that stipulated in this
                                         Contract, the Borrower shall assume all the risks and liabilities incurred thereby with
                                         respect to repayment of the Loan, and shall automatically use its common shares as the
                                         Collateral, as specified in Section 5.5 of this Agreement, and the Lender shall be entitled
                                         to stop the Loan, collect all or part of the Loan, and calculate and collect the Interest
                                         on the Loan, and no Early Withdrawal Fee or Early Withdrawal Discount shall apply to
                                         the Lender in this case.
	 	 
	5.2	Early
                                         Repayment.
                                         If the Borrower elects to repay the Loan prior to expiration of the Term of this Agreement,
                                         the Borrower shall notify the Lender by submission of written Notice of Early Repayment
                                         ninety days prior to the proposed date of such early repayment. No prepayment penalty
                                         shall apply to the Borrower for early repayment of the Loan.
	 	 
	5.3	Early
                                         Withdrawal Penalty.
                                         If the Lender elects to withdraw the Loan prior to expiration of the Term of this Agreement,
                                         the Lender shall notify the Borrower by submission of written Notice
                                         of Early Withdrawal one hundred (100) calendar days prior to the proposed
                                         date of such early withdrawal of the Loan (“Early
                                         Withdrawal”). The Early Withdrawal shall be subject to Early Withdrawal
                                         Discount specified in Section 2.1(3) of this Agreement.

 

    	 	 	 

    	 	 	 

    

 

	5.4	Failure
                                         To Pay Interest.
                                         If the Borrower fails to pay the Interest at any time (“Failure
                                         To Pay”), the Lender shall be entitled to require immediate repayment
                                         of the Loan in full, including the Interest thereof. The Borrower hereby warrants the
                                         resolution of the Failure To Pay in good faith and in cooperation with the Lender.
	 	 
	5.5	Failure
                                         to Repay the Loan.
                                         The Borrower shall assume all the risks and liabilities with respect to repayment of
                                         the Loan. If the Borrower fails to repay the Loan on the Maturity Date (“Failure
                                         To Repay”) the Lender shall be entitled to receive from the Borrower
                                         the amount of common shares for the Loan Amount plus all occurred and unpaid Interest
                                         to date in accordance with the following provisions of this Section 5.5:

 

		(1)	Collateral.
                                         As
                                         of the Loan Date the Borrower will reserve in the name of the Lender the collateral in
                                         form of Two Million Five Hundred Thousand (2,500,000) Common shares (“Collateral”
                                         or “Collateral
                                         Shares”). The Borrower will have the right to redeem the Collateral
                                         by promptly repaying the Loan Amount plus all occurred and unpaid Interest on or before
                                         the Maturity Date, in which case the Collateral Shares shall no longer be reserved and
                                         the Borrower shall have the right to use the Collateral Shares at its sole discretion.
	 	 	 
		(2)	Optional
                                         Conversion.
                                         At sole discretion and the option of the Lender, all or part of unpaid Loan Amount and
                                         all occurred and unpaid Interest then outstanding may be converted into the shares of
                                         the Borrower’s common stock priced at Forty ($0.40) U.S. cents at any time from
                                         the Loan Date till the Maturity Date, provided that the Lender gives to the Borrower
                                         the written Notice
                                         of Optional Conversion at least Twenty (20) Business Days prior to desired
                                         conversion date (“Optional
                                         Conversion”). Immediately following completion of the Optional Conversion
                                         the outstanding Loan Amount and all occurred and unpaid Interest so converted shall be
                                         deemed repaid and no longer due hereunder and the corresponding amount of the Collateral
                                         Shares shall be issued to the Lender, and the remainder of the Collateral Shares shall
                                         be no longer reserved.

 

    	 	 	 

    	 	 	 

    

 

		(3)	Mandatory
                                         Conversion.
                                         In case of Failure To Pay and Failure To Repay, the Lender shall have the right to convert
                                         the entire amount of unpaid Loan Amount plus all occurred and unpaid Interest then outstanding
                                         into the Collateral Shares priced at Sixteen ($0.16) U.S. cents per share (“Mandatory
                                         Conversion”). Immediately following completion of the Mandatory Conversion
                                         the outstanding Loan Amount and all occurred and unpaid Interest so converted shall be
                                         deemed repaid and no longer due hereunder and the corresponding amount of the Collateral
                                         Shares shall be issued to the Lender and no longer reserved.
	 	 	 
		(4)	Adjustments.
                                         In
                                         case if the Borrower’s outstanding shares of stock shall be combined or consolidated
                                         by stock combination, reclassification or otherwise (“Decrease”)
                                         into lesser number of shares, the number of the Collateral Shares immediately prior to
                                         such conversion shall, concurrently with the effectiveness of such Decrease, be proportionally
                                         decreased. In case if the Borrower’s outstanding shares of stock shall be subdivided
                                         by stock split, stock dividend, reclassification or otherwise (“Increase”)
                                         into greater number of shares, the number of the Collateral Shares immediately prior
                                         to such conversion shall, concurrently with the effectiveness of such Increase, be proportionally
                                         increased.

 

	5.6	Treatment
                                         of Non-Payment.
                                         Furthermore, the Lender and the Borrower hereby agree to negotiate the provisions under
                                         which the Failure To Pay and Failure To repay shall be treated, and amend this Section
                                         5 in writing, if necessary, within 180 days lapsing from the Loan Date.

 

Section
6. Remedies.

 

	6.1	Lender
                                         Rights and Remedies.
                                         In the case of non-payment as specified in Sections 5.4 and 5.5 of this Agreement, the
                                         Lender shall, as a secured party under the Uniform Commercial Code or as otherwise provided
                                         at law or in equity, have all rights, powers and remedies set forth herein relating to
                                         any of the obligations of the Borrower.

 

    	 	 	 

    	 	 	 

    

 

	6.2	No
                                         Waiver.
                                         No Event of Default shall be waived by the Lender except in writing. No failure or delay
                                         on the part of the Lender in exercising any right, power or remedy hereunder shall operate
                                         as a waiver of the exercise of the same or any other right at any other time; nor shall
                                         any single or partial exercise of any such right, power or remedy preclude any other
                                         or further exercise thereof or the exercise of any other right, power or remedy hereunder.
                                         There shall be no obligation on the part of the Lender to exercise any remedy available
                                         to the Lender in any order. The remedies provided for herein are cumulative and not exclusive
                                         of any remedies provided at law or in equity. The Borrower agrees that in the event that
                                         the Borrower fails to perform, observe or discharge any of its Obligations under this
                                         Agreement, no remedy of law shall provide adequate relief to the Lender, and further
                                         agrees that the Lender shall be entitled to temporary and permanent injunctive relief
                                         in any such case, provided the Lender proves actual damages caused by such event.

 

Section
7. Miscellaneous

 

	7.1	Entire
                                         Agreement.
                                         This Agreement shall (i) constitute the entire agreement between the parties with respect
                                         to the subject matter hereof and thereof; and (ii) are the final expression of the intentions
                                         of the Borrower and the Lender. No promises, either expressed or implied, exist between
                                         the Borrower and the Lender, unless contained herein or therein. This Agreement shall
                                         supersede all negotiations, representations, warranties, commitments, term sheets, discussions,
                                         negotiations, offers and documents of any kind and nature (whether oral or written) prior
                                         to or contemporaneous with the execution hereof with respect to any matter, directly
                                         or indirectly related to the terms of this Agreement.
	 	 
	7.2	Amendments.
        No amendment, modification or waiver of, or consent with respect to, any provision of this Agreement shall
        in any event be effective unless the same shall be in writing and acknowledged by the Lender, and then any such amendment,
        modification, waiver or consent shall be effective only in the specific instance and for the specific purpose for which
        given.

 

    	 	 	 

    	 	 	 

    

 

	7.3	Forum
                                         Selection and Consent to Jurisdiction.
                                         This Agreement shall be delivered and accepted in and shall be governed by the laws of
                                         the State of Florida, with giving effect to federal laws applicable to national Lenders,
                                         applicable to contracts made and to be performed entirely within such state, without
                                         regard to conflict of laws principles. Any litigation based hereon, or arising out of,
                                         under, or in connection with this agreement or any other loan document, shall be brought
                                         and maintained exclusively in the courts of the state of Florida. The parties hereby
                                         expressly and irrevocably submit to the jurisdiction of the courts of the state of Florida
                                         sitting in the county of Broward. The parties further irrevocably consent to the service
                                         of process by registered mail, postage prepaid, or by personal service within or without
                                         the state of Florida. The borrower hereby expressly and irrevocably waives, to the fullest
                                         extent permitted by law, any objection which it may now or hereafter have to the laying
                                         of venue of any such litigation brought in any such court referred to above and any claim
                                         that any such litigation has been brought in an inconvenient forum. Wherever possible,
                                         each provision of this Agreement shall be interpreted in such manner as to be effective
                                         and valid under applicable law, but if any provision of this Agreement shall be prohibited
                                         by, unenforceable or invalid under any jurisdiction, such provision shall as to such
                                         jurisdiction, be severable and be ineffective to the extent of such prohibition or invalidity,
                                         without invalidating the remaining provisions of this Agreement or affecting the validity
                                         or enforceability of such provision in any other jurisdiction.
	 	 
	7.4	Waiver
                                         of Jury Trial.
                                         The parties, after consulting or having had the opportunity to consult with counsel,
                                         each knowingly, irrevocably, voluntarily and intentionally waive any right to a trial
                                         by jury in any action or proceeding to enforce or defend any rights under this agreement,
                                         any note, any other Loan document, any of the other obligations, the Collateral, or any
                                         amendment, instrument, document or agreement delivered or which may in the future be
                                         delivered in connection herewith or therewith or arising from any lending relationship
                                         existing in connection with any of the foregoing, or any course of conduct or course
                                         of dealing in which the Lender and the Borrower are adverse parties, and each agrees
                                         that any such action or proceeding shall be tried before a court and not before a jury.
                                         This provision is a material inducement for the lender granting any financial accommodation
                                         to the Borrower.
	 	 
	7.5	Assignability.
                                         The
                                         Borrower may sell or assign this Agreement or any portion thereof, either voluntarily
                                         or by operation of law, by obtaining the prior written consent of the Lender. The Lender
                                         may sell or assign this Agreement or any portion thereof, either voluntarily or by operation
                                         of law, by obtaining the prior written consent of the Borrower.

 

    	 	 	 

    	 	 	 

    

 

	7.6	Binding
                                         Effect.
                                         This Agreement shall become effective upon execution by the Parties. This Agreement shall
                                         be binding upon the Lender and the Borrower and their respective legal representatives
                                         and assignees. All references herein shall be deemed to include any successors of the
                                         Parties, whether immediate or remote.
	 	 
	7.7	Survival
                                         of Borrower Representations.
                                         All covenants, agreements, representations and warranties made by the Borrower herein
                                         shall, notwithstanding any investigation by the Lender, be deemed material and relied
                                         upon by the Lender and shall survive the making and execution of this Agreement, and
                                         shall be deemed to be continuing representations and warranties until such time as the
                                         Borrower has fulfilled all of its obligations to the Lender under this Agreement, and
                                         the Loan Amount plus all accrued interest has been indefeasibly paid in full. The Lender,
                                         in granting the Loan to the Borrower, is expressly acting and relying on the aforesaid
                                         representations and warranties.
	 	 
	7.8	Time
                                         of the Essence.
                                         Time is of the essence in making payments of all amounts due the Lender under this Agreement
                                         and in the performance and observance by the Borrower of each covenant, agreement, provision
                                         and term of this Agreement.
	 	 
	7.9	Counterparts;
                                         Facsimile Signatures.
                                         This Agreement may be executed in any number of counterparts and by the different parties
                                         hereto on separate counterparts and each such counterpart shall be deemed to be an original,
                                         but all such counterparts shall together constitute but one and the same Agreement. Receipt
                                         of an executed signature page to this Agreement by facsimile or other electronic transmission
                                         shall constitute effective delivery thereof.
	 	 
	7.10	Termination.
                                         This
                                         Agreement shall terminate automatically on the Maturity Date, or, may be terminated by
                                         the Lender prior to the Maturity Date for any reason or no reason by giving to the Borrower
                                         an early withdrawal notice one hundred (100) days prior to the withdrawal date, and the
                                         Agreement shall then terminate on the date of when the Loan Amount is repaid by the Borrower
                                         to the Lender.

 

    	 	 	 

    	 	 	 

    

 

	7.11	Notices.
                                         All
                                         correspondence, requests, demands and other communications hereunder shall be in writing
                                         (including, without limitation, notice by telecopy) and addressed to the Borrower or
                                         the Lender at the address shown for each party, respectively, below or, as to each party,
                                         at such other address as shall be designated by such party in a written notice to each
                                         other party complying as to delivery with the terms of this subsection:

 

To
the Lender: 18911 Collins Ave, #2701, Sunny Isles Beach, FL 33160

 

To
the Borrower: 700 W Hillsboro Blvd, Suite 1-100, Deerfield Beach, FL 33441

 

All
notices addressed as above shall be deemed to have been properly given (i) if given by facsimile, when such facsimile is transmitted
to the facsimile number specified in this Section and a confirmation of such facsimile has been received by the sender; (ii) if
mailed by certified or registered mail, return receipt requested, postage prepaid, on the fifth (5th) day following the day such
notice is deposited in any post office station or letter box; or (iii) if served in person or sent by recognized overnight courier,
when delivered at the addresses specified in this Section. No notice to or demand on the Borrower in any case shall entitle the
Borrower to any other or further notice or demand in similar or other circumstances.

 

	7.12	Costs,
                                         Fees and Expenses.
                                         Each Party shall pay all of its respective costs, fees and expenses incurred by such
                                         Party in connection with the negotiation, preparation, due diligence, consummation, collection
                                         of the Obligations or enforcement of this Agreement.
	 	 
	7.13	Taxes
                                         and Liabilities.
                                         Each Party shall pay all of its respective property and other taxes, and all governmental
                                         charges or levies against it, as well as claims of any kind which, if unpaid, could become
                                         a lien on any of its property; provided that the foregoing shall not require the Borrower
                                         or any Subsidiary to pay any such tax or charge so long as it shall contest the validity
                                         thereof in good faith by appropriate proceedings and shall set aside on its books adequate
                                         reserves with respect thereto in accordance with GAAP.
	 	 
	7.14	Indemnification.
                                         The
                                         Borrower agrees to defend, protect, indemnify, exonerate and hold harmless the Lender
                                         from and against any and all liabilities, obligations, losses, damages, penalties, actions,
                                         judgments, suits, claims, costs, expenses and distributions of any kind or nature, which
                                         may be imposed on, incurred by, or asserted against, the Borrower (whether direct, indirect
                                         or consequential and whether based on any federal, state or local laws or regulations,
                                         including, without limitation, securities laws, commercial laws and regulations, under
                                         common law or in equity, or based on contract or otherwise) in any manner relating to
                                         or arising out of this Agreement, or any act, event or transaction related or attendant
                                         hereto, including the making or issuance and management of the Loan and the sub-loans,
                                         the use or intended use of proceeds of the Loan, the enforcement of the Lender’s
                                         rights and remedies under this Agreement and any other instruments and documents delivered
                                         hereunder. To the extent that the undertaking to indemnify set forth in the preceding
                                         sentence may be unenforceable because it violates any law or public policy, the Borrower
                                         shall satisfy such undertaking to the maximum extent permitted by applicable law.

 

IN
WITNESS WHEREOF, the Borrower and the Lender have executed this Loan Agreement as of the date first above written.

 

	Lender:	 	Borrower:
	 	 	 
	/s/
    Zena Katz	 	/s/
    Sergey Gurin
	 	 	 
	/n/
    Zena Katz	 	/n/
    Sergey Gurin
	 	 	 
	 	 	/t/
    President
	 	 	 
		 	Helpful
    Alliance CompanyTHE
ISSUE PRICE OF THIS NOTE IS $400,000.00 (THE “ISSUE PRICE”). 

THE
ISSUE DATE OF THIS NOTE IS JUNE 30, 2014. 

 

HELPFUL
ALLIANCE COMPANY INC.

 

(Exact
name of the Issuer as specified in its charter)

 

ORIGINAL
ISSUE SECURED PROMISSORY NOTE

 

MATURITY
DATE: JUNE 29, 2017

 

 

 

	US$400,000
    	June
    30, 2014 

 

FOR
VALUE RECEIVED, Helpful Alliance Company Inc., a Florida Corporation (“Borrower”) hereby
promises to pay to Zimas LLC, a Florida Limited Liability Company the registered holder (“Holder”)
of this Secured Promissory Note (this “Note”), the principal sum of Four Hundred Thousand 00/100 U.S.
Dollars (“Principal Amount”) on the Maturity Date as defined above in accordance with the Loan Agreement
between the Borrower and the Holder dated June 1, 2014 (“Loan Agreement”), and to pay interest on the
principal sum outstanding Principal Amount at the rate of 8.0% per year (computed on the basis of the actual number of days elapsed
under the Loan and a year of 360 days) accruing on quarterly basis starting from June 30, 2014, the date of initial issuance of
this Note (the “Issue Date”), until payment in full of the Principal Amount has been made or duly provided
for under Section 3.15 and Section 3.16 of the Loan Agreement (whether before or after the Maturity Date).

 

The
Interest to accrue hereunder through June 29, 2017 shall be payable in cash funds, immediately available to the Lender, within
20 Business Days from the end of each fiscal year lapsing from the Loan date, with first such fiscal year ending on December 31,
2014 (the “Interest”).

 

Notwithstanding
any other provision hereof, the Interest paid or becoming due hereunder and any other payments hereunder which may constitute
interest shall in no event exceed the maximum rate permitted by applicable law. The Payment of the Interest and repayment of the
Principal Amount shall be secured by the personal guarantee to the Lender by the officers of the Borrower.

 

This
Note is being issued pursuant to the terms of the Loan Agreement, to which the Borrower and the Holder are participating parties.
Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement.

 

    	 

    	 	 	 

    

 

This
Note is subject to the following additional provisions:

 

	1.	The
    term “Maturity Date” shall mean the earlier of (x) June 29, 2017 or (y) the date of repayment of
    the Principal Amount by the Borrower to the Lender as evidenced by the Lender’s bank statements. 
	 	 
	2.	Payment.
    Prepayment Prior to Maturity Date. This Note may be prepaid in whole or in part at any time prior to the Maturity
    Date, without penalty; provided, however, that the Borrower shall provide a thirty (30) day advance notice of
    prepayment to the Holder and the Holder shall have the right but not an obligation to convert this Note, at the Holder’s
    choice and discretion, as provided for in Section 7 of this Note during such 30-day period. Any payment shall be applied as
    provided in Section 3 of this Note. Any payment made on account of the Note shall be applied in the following order of priority:
    (i) first, to any amounts due hereunder other than Principal Amount and accrued interest, (ii) then, to accrued interest through
    and including the date of payment, and (iii) then, to the Principal Amount of this Note. All payments contemplated hereby
    shall be made in immediately available good funds of United States of America currency by wire transfer to an account designated
    in writing by the Holder to the Borrower (which account may be changed by notice similarly given). For purposes of this Note,
    the phrase “date of payment” shall mean the date good funds are received in the account designated
    by the notice which is then currently effective. 
	 	 
	3.	Default
    Due To Non-Payment. The Borrower shall be in default hereunder if any payment is not made in a timely manner,
    without any right to cure unless such right to cure is expressly granted by the Holder in writing in each instance; provided,
    however, that the grant of such right is in the sole discretion of the Holder and may be withheld for any reason or for no
    reason whatsoever. 
	 	 
	4.	Borrowers
    Obligation Is Absolute. Subject to the terms of the Loan Agreement, no provision of this Note shall alter or impair
    the obligation of the Borrower, which is absolute and unconditional, to pay the principal of, and interest on, this Note at
    the time, place, and rate, and in the coin or currency, as herein prescribed. This Note is a direct obligation of the Borrower.
    
	5.	Collateral.
    As of the Loan Date the Borrower will reserve in the name of the Lender the collateral in form of Two Million Five Hundred
    Thousand (2,500,000) Common shares (“Collateral Shares”). The Borrower will have the right to redeem the Collateral
    by promptly repaying the Loan Amount plus all occurred and unpaid Interest on or before the Maturity Date, in which case the
    Collateral Shares shall no longer be reserved and the Borrower shall have the right to use the Collateral Shares at its sole
    discretion. The Lender will have the right to exercise either the Optional Conversion or the Mandatory Conversion in accordance
    with Section 5.5 (2) and Section 5.5 (3) of the Loan Agreement.

 

    	 

    	 	 	 

    

 

	6.	Jurisdiction.
    This Note shall be governed by and construed in accordance with the laws of the State of Florida. Each of the parties
    consents to the exclusive jurisdiction of the federal courts whose districts encompass any part of the County of Broward or
    the state courts of the State of Florida sitting in the County of Fort Lauderdale in connection with any dispute arising under
    this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on
    forum non coveniens, to the bringing of any such proceeding in such jurisdictions. To the extent determined by such
    court, the Borrower shall reimburse the Holder for any reasonable legal fees and disbursements incurred by the Holder in enforcement
    of or protection of any of its rights under any of this Note. 
	 	 
	7.	Waiver
    of Jury Trial. The Borrower and the Holder hereby waive a trial by jury in any action, proceeding or counterclaim
    brought by either of the Parties hereto against the other in respect of any matter arising out of or in connection with this
    Note. 
	 	 
	8.	The
    following shall constitute an “Event of Default” hereunder: 

 

a.
The Borrower shall default in the payment of any amount due on this Note, time being of the essence, whether by maturity, pursuant
to Section 2 or otherwise; or

 

b.
Any of the representations or warranties made by the Borrower herein, in the Purchase Agreement or any of the other Transaction
Documents shall be false or misleading in any material respect at the time made; or

 

c.
The Borrower shall (1) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or (2) apply
for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business;
or

 

d.
A trustee, liquidator or receiver shall be appointed for the Borrower or for a substantial part of its property or business without
its consent; or

 

e.
Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody
or control of the whole or any substantial portion of the properties or assets of the Borrower; or

 

f.
The Borrower shall enter into, create, incur, assume or suffer to exist any indebtedness for borrowed money or liens of any kind,
on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits
therefrom that is senior to or pari passu with, in any respect, the Borrower’s obligations under this Note, or as approved
in writing by the Holder; or

 

    	 

    	 	 	 

    

 

h.
Bankruptcy, reorganization, insolvency or liquidation proceedings or other proceedings for relief under any bankruptcy law or
any law for the relief of debtors shall be instituted by or against the Borrower.

 

i.
Failure by the Borrower to deliver any securities required to be delivered pursuant to Conversion or any other agreements between
the parties.

 

j.
The Borrower shall default in any of its obligations under any other note or any mortgage, credit agreement, loan agreement or
other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there
may be secured or evidenced any indebtedness for borrowed money or money due under any leasing or factoring arrangement of the
Borrower or any subsidiary, whether such indebtedness now exists or shall hereafter be created and such default shall result in
such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable.

 

k.
If an Event of Default shall have occurred, then, or at any time thereafter, and in each and every such case, unless such Event
of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent
default) at the option of the Holder and in the Holder’s sole discretion, the Holder may consider this Note immediately
due and payable (and the Maturity Date shall be accelerated accordingly), without presentment, demand, protest or notice of any
kinds, all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary
notwithstanding, and interest shall accrue on the total amount due (the “Default Amount”) on the date
of the Event of Default (the “Default Date”) at the rate of 25% per annum or the maximum rate allowed
by law, whichever is lower, from the Default Date until the date payment is made, and the Holder may immediately enforce any and
all of the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law.

 

	9.
    	Binding
    Effect. This Note shall be binding upon and shall inure to the benefit of the successors and permitted assigns of
    the Borrower and the Holder. In no event may the Borrower assign this Note or any rights or obligations hereunder without
    the Holder’s prior written consent and any purported assignment without such consent shall be null and void. This Note
    and the rights and obligations hereunder may be assigned by the Holder at any time. 

 

    	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Borrower has caused this instrument to be duly executed by an officer thereunto duly authorized this
18th day of June, 2014.

 

	 
	 	 	HELPFUL
    ALLIANCE COMPANY INC. 
	 	 	 	 
	 	 	 	/s/
    Sergey Gurin
	 	 	 	/n/
    Sergey Gurin 
	 	 	 	/t/
    President
	 	 	 	 
	STATE
    OF FLORIDA 	 	)	 
	COUNTY
    OF BROWARD 	 	)
    	 

 

On
the __30__ day of ____June_____ in the year 2014 before me, the undersigned ___Sergey_Gurin_____________, personally
appeared and proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is(are) subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person(s) upon behalf of which the individual(s) acted, executed the
instrument.

 

	 	/s/
    Ganna Mikheleva	 
	 	NOTARY
    PUBLIC SIGNATURE	 

 

Notary
Stamp

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