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INSTALLMENT FINANCING CONTRACT <br />THIS INSTALLMENT FINANCING CONTRACT (the "contract") is <br />dated as of April 1, 2006, and is between ORANGE COUNTY, NORTH <br />CAROLINA, a political subdivision of the State of North Carolina (the "County"}, <br />and ORANGE COUNTY PUBLIC FACILITIES COMPANY, a North Carolina <br />nonprofit corporation (the "Company"). <br />RECITALS: <br />The County desires to obtain funds to enable the County to acquire, <br />construct and improve certain school facilities and to provide for certain other <br />public improvements. The Company has agreed to advance funds to the County for <br />such purpose. The County is obtaining funds for such advance by providing for the <br />issuance of the 2006A Certificates (as defined below). <br />This Contract provides for the Company's obligation to advance the funds, <br />and the County's obligation to repay the funds ~Tith interest. In accordance with <br />the County's authority under Section 160A-20 of the North Carolina General <br />Statutes, the County will secure its obligations under this Contract by a security <br />interest in the Pledged Facility and the Pledged Site (each as defined in Exhibit A). <br />Unless tlae context clearly requires otherwise, capitalized terms used in t1~is <br />Contract and not otherwise defined will have. the meanings setforth in Exhibit A. <br />NOVV, THEREFORE, for and in consideration of the mutual promises and <br />covenants contained in this Contract, the parties agree as follows: <br />ARTICLE I <br />ADVANCE <br />The Company ad~Tances [$24,000,000] (the "Amount Advanced") to the <br />County, and the County accepts the Amount Advanced. <br />The Company is advancing the Amount Advanced by providing for the <br />transfer and deposit of such Advance as provided in the Trust Agreement. The <br />County acknowledges that the total of such deposits is being (a) increased by the <br />93361v2 2 <br />