Document:

LOAN
AND SECURITY AGREEMENT

 

This
Loan and Security Agreement (this “Agreement”)
dated as of March 31, 2013 (the “Effective Date”)
is made into effect by HELPFUL ALLIANCE COMPANY, a Florida Corporation having a registered address at 150 SE 2nd Avenue,
Suite 1010, Miami, Florida 33131 (“Borrower”)
and ZIMAS LLC, a Florida Limited Liability Company having an address at 18911 Collins Avenue, Unit 2701, Sunny Isles Beach, Florida
33160 (together with its successors and assigns, the “Lender”),
collectively herein referred to as the “Parties”.

 

WHEREAS,
on March 1, 2013 the Parties entered into Mutual Release, Settlement and Assignment Agreement of which this Agreement is derivative
instrument;

 

WHEREAS,
the Borrower wishes to borrow from the Lender, and the Lender wishes to lend to the Borrower, an amount of One Million ($1,000,000)
U.S. Dollars in the form of a convertible loan (the “Loan”).

 

WHEREAS,
the Parties wish to set forth their understanding with respect to the Loan, and

 

NOW
THEREFORE, the Parties agree as follows:

 

1.
Principal Loan Amount. The principal amount of the
loan is One Million U.S. Dollars (the “Principal Amount”).

 

2.
Delivery of the Funds by the Lender. The Borrower
hereby accepts and admits that cash funds were delivered to the Borrower by the Lender as of the Effective Date of this Agreement.
The date on which the Loan is received by the Borrower shall be April 1, 2013 (the “Loan
Date”).

 

3.
Term. Maturity Date. The Principal Amount shall be
due and payable to the Lender on March 31,2016 (the “Maturity
Date”), unless amended by the Parties and stated in writing.

 

4.
Prepayment. The Borrower shall have the right to
prepay the entire Principal Amount or any portion thereof prior to the Maturity Date (the “Prepayment”).
There shall be no penalty for the Prepayment of the Loan.

 

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5.
Interest. The Lender provides the Loan to the Borrower
at the interest rate of Eight percent (8.0%) per year, which shall station January 25,2013 and accrue annually on December 31
of each calendar year and be payable within the month of January of each consecutive year (“Interest” ) .
The final Interest payment shall be remitted by the Borrower to the Lender within the month of April 2016.

 

6.
Preference. In the event of any receivership,
insolvency or bankruptcy proceedings instituted by or against the Borrower, or execution sale of any of the assets of the Borrower,
or any proceedings, whether or not judicial, for dissolution or liquidation of the Borrower or otherwise, or any distribution,
combination or division, partial or complete, of all or any part of the assets of the Borrower, the claim derived from this Agreement
shall prevail over the claims derived from other loans situated by the Borrower, and the claims derived from other loans shall
be subordinated to the payment in full to the Lender under this Agreement.

 

7.
Collateral and Conversion.

 

7.1
Collateral. As of the Loan Date and subject
to adjustments as provided in Section 7.1(A), the Borrower will reserve in the name of the Lender the collateral in form of Six
Million Two Hundred Fifty Thousand shares of the Borrower’s Common Stock (“Collateral
Shares” )  The Borrower will have the right to redeem the Collateral by promptly repaying the Principal
Amount in full with Interest on Maturity Date, in which case the Collateral shall be no longer reserved and the Borrower shall
have the right to use the Collateral Shares for any purposes at the Borrower’s sole discretion.

 

7.2
Conversion at the Option o(the Lender. Subject to
adjustments as provided in Section 7.2(A), at the option of the Lender, all or part of the unpaid Principal Amount then outstanding
may be converted into shares of Common stock of the Borrower priced at $1.60 per share, at any time from the Loan Date till the
Maturity Date, providing that the Lender gives to the Borrower a sixty (60) day notice of such conversion in writing (the “Optional
Conversion” ) . Upon such conversion, the amount of outstanding Principal Amount so converted shall be deemed
paid and no longer due hereunder, and the corresponding amount of the Collateral Shares shall be deemed redeemed and cancelled.

 

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7.3
Forced Conversion Due to Non-Payment In the case
if the Borrower fails to repay the unpaid Principal Amount then outstanding on the Maturity Date, the Lender shall have the right
to convert the entire Collateral into fully paid and nonassessable One Million shares of the Borrower’s Common Stock priced
at $0.16 per share (the “Forced Conversion”).
Upon such conversion, the amount of outstanding Principal Amount so converted shall be deemed paid and no longer outstanding,
and the Collateral shares shall be considered redeemed and void.

 

7.4
Conversion Modalities. The Lender will notify the
Borrower in writing, with the thirty day notice, of its will to exercise the option to convert, specifying the number of shares
converted and the amount of the Loan paid by virtue of such conversion, and the day of the conversion.

 

7.5
Adjustments. In the event the outstanding shares
of the Borrower’s Common stock shall be combined or consolidated (by stock combination, reclassification or otherwise) into
a lesser number of shares of Common stock, the number of Collateral Shares in effect immediately prior to such combination or
consolidation shall, concurrently with the effectiveness of such combination or consolidation, be proportionately increased. In
the event the outstanding shares of the Borrower’s common stock are subdivided (by stock split, by stock dividend or otherwise)
into a greater number of shares of common stock, the number of Collateral Shares in effect immediately prior to such subdivision
shall, concurrently with the effectiveness of such subdivision, be proportionately decreased. Regardless whether the Optional
Conversion or the Forced Conversion is exercised, if the outstanding shares of the Borrower’s Common stock are combined
or consolidated (by stock combination, reclassification or otherwise) into a lesser number of shares of Common stock, the conversion
price in effect immediately prior to such combination or consolidation shall, concurrently with the effectiveness of such combination
or consolidation, be proportionately increased. In the event the outstanding shares of the Borrower’s common stock are subdivided
(by stock split, by stock dividend or otherwise) into a greater number of shares of common stock, the conversion price in effect
immediately prior to such subdivision shall, concurrently with the effectiveness of such subdivision, be proportionately decreased.

 

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8.
Attorney’s Fees. If the Principle Amount is not paid in full
when due, the Borrower hereby agrees to pay to the Lender, in addition to such amount owed to pursuant to this Agreement, all
costs and expenses of collection, including a reasonable amount of attorneys fees.

 

9.
Course of Dealing. No course of dealing between the Borrower and the
Lender shall operate as a waiver of any of the Lender’s rights for the Loan. No delay or omission on the part of the Lender,
in exercising any right according to the Loan, shall operate as a waiver of such right. No amendment or waiver hereof shall be
binding unless it is in writing and signed by the Lender.

 

10.
Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of Broward County of the State of Florida without regard to its conflicts of laws principles.

 

11.
Counterparts. This Agreement may be executed in one or more counterparts
each of which shall be deemed an original, but all of which shall together constitute one and the same instrument. Signatures
may be transmitted by facsimile.

 

12.
Assignability and Modification. This Agreement and the rights, interests
and obligations hereunder are not transferable or assignable by any Party. This Agreement shall not be modified or waived except
by an instrument in writing signed by the party against whom any such modification or waiver is sought.

 

IN
WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the date set forth above.

 

	Lender:
    ZIMAS LLC	 	Borrower:
    Helpful Alliance Company
	 	 	 
	/s/
    Zena Katz	 	/s/
    Sergey Gurin
	/n/
    Zena Katz	 	/n/
    Sergey Gurin
	/t/
    Managing Member	 	/t/
    President

 

    	4THE
ISSUE PRICE OF THIS NOTE IS $1,000,000.00 (THE “ISSUE PRICE”).

THE
ISSUE DATE OF THIS NOTE IS APRIL 1, 2013 (THE “ISSUE DATE”).

 

HELPFUL
ALLIANCE COMPANY

 

 

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

 

ORIGINAL
ISSUE SECURED PROMISSORY NOTE 

 

MATURITY
DATE: MARCH 31, 2016

 

 

 

FOR
VALUE RECEIVED, Helpful Alliance Company, a
Florida corporation (“Borrower”)
hereby promises to pay to Zimas LLC, a Florida Limited Liability Company
and the holder (“Holder”)
of this Secured Promissory Note (this “Note”)
the principal sum of One Million 00/100 U.S.
Dollars (“Principal Amount”)
on the Maturity Date as defined above in accordance with the Loan and Security Agreement between the Borrower and the
Holder dated March 31,2013 (the “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 annual basis, starting from January 25, 2013 (“Interest”)
which is the original date of the Holder’s investment into the Borrower’s Series-A Preferred Shares, until
payment in full of the Principal Amount has been made or duly provided for under the terms and conditions of the Loan Agreement,
whether before or after the Maturity Date.

 

The
Interest to accrue hereunder through March 31, 2016 and shall be payable in cash funds, immediately available to the Lender, within
30-day periods from the end of each calendar year, with first such calendar quarter ending on December 31,2013.

 

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 is hereby being 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.

 

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This
Note is subject to the following additional provisions:

 

1.The
term “Maturity Date” shall mean the earlier of (x) March 31,2016
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.
The Borrower will reserve in the name of the Lender the collateral in form of Six Million Two Hundred Fifty Thousand
shares of the Borrower’s Common Stock (“Collateral Shares”). The Borrower will have the right to redeem the
Collateral by promptly repaying the Principal Amount in full with Interest on Maturity Date, in which case the Collateral shall
be no longer reserved and the Borrower shall have the right to use the Collateral Shares for any purposes at the Borrower’s
sole discretion. The Lender will have the right to exercise either the Optional Conversion or the Forced Conversion in accordance
with Section 7.2 and Section 7.3 of the Loan Agreement.

 

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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 Floida 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

 

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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 10% 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.

 

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IN
WITNESS WHEREOF, the Borrower has caused this instrument to be duly executed by an officer thereunto duly authorized this
1st day of April, 2013.

 

	STATE
OF FLORIDA		)
	COUNTY
OF BROWARD		)

 

On
the 28 day of August in the year 2013 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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