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DocuSign Envelope ID:5FCOF65D-9139-4E6A-B13C-2B74E389CABD <br /> LOAN AND SECURITY AGREEMENT <br /> made, at the Borrower's expense and in such manner and at such times as the Fund require, (a) <br /> inspections and audits of any books, records, and papers in custody or control of the Borrower or <br /> others, relating to the Borrower's financial or business conditions, including the making of copies <br /> thereof and extracts thereof, and (b) inspections and appraisals of any Borrower assets. Should <br /> the Borrower fail to make any payment due under the Agreement, the Borrower will furnish to the <br /> Fund for each one month period from the date of disbursement of the loan proceeds covered by <br /> this Agreement, and for a six month period thereafter, and semiannually thereafter (no later than 30 <br /> days following the expiration of any such period), and at such other times and in such form as the <br /> Fund may prescribe, the financial and operating statement of the business. <br /> 10. Costs and expenses related to remedial action - The Borrower agrees that all costs and expenses <br /> (including reasonable attorneys' fees and expenses for legal services of every kind) of, or incidental <br /> to, the custody, care, management, sale or collection of, or realization upon, any of the Collateral, <br /> or in any way relating to the enforcement or protection of the Fund's rights under this Agreement, <br /> shall be entitled to the benefits of this Agreement. The Fund may at any time apply to the payment <br /> of all such costs and expenses all monies of the Borrower or other proceeds arising from the <br /> possession or disposition of all or any portion of the Collateral. <br /> 11. Other provisions regarding remedies ® The Fund may delay or refrain from exercising any past, <br /> present, or future right or remedy hereunder without waiving any such right or remedy. The Fund <br /> shall have no obligation to proceed against real or personal property in preference to the other. <br /> PART FOUR— PROMISES BY THE BORROWER <br /> 12. The Borrower agrees that it will do the following: <br /> 12.1 Operate the Business in full compliance with applicable federal, state, and local laws, <br /> including, without limitation, federal laws relating to equal employment opportunity and <br /> occupational health and safety, the North Carolina State Building Code, and local building and <br /> land use regulations. <br /> 12.2 Promptly perform all obligations of Borrower including the payment, when due, of all amounts <br /> owed to Fund secured by this Agreement; <br /> 12.3 Protect and properly care for the Collateral, and allow no Collateral to be misused, wasted, or <br /> allowed to deteriorate except for normal wear and tear; <br /> 114 Use the Collateral principally within the State of North Carolina and Orange County, and not to <br /> affix the Collateral to real property unless it is classified as a fixture hereinabove the requisite <br /> information is supplied; <br /> 12.5 Insure all Collateral against theft, loss or destruction, by policies acceptable to Fund and <br /> payable to both Borrower and the Fund as their interests may appear; that all applicable <br /> licenses and permits be obtained; that the employer ID number be provided and a privilege <br /> license be obtained; and that both property and liability insurance on the building(s) and <br /> contents be procured and maintained by the Borrower. The Borrower shall provide and <br /> maintain hazard insurance (fire and extended coverage) in an amount acceptable to the Fund <br /> covering all tangible Collateral_ Mortgagee endorsement is to include this loan. <br /> 12.6 Pay promptly when due all ad valorem taxes and assessments upon the Collateral; <br /> 12.7 Upon the Fund's request, deposit with Fund additional Collateral to Fund's satisfaction; <br /> .Page 3 of 6 <br />