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26 <br /> LOAN AND SECURITY AGREEMENT <br /> THIS Loan and Security Agreement (the "Agreement") is dated as of October 1, 2018, and is by <br /> and between , Inc., a North Carolina nonprofit corporation (the "Borrower") and <br /> the Orange County (the "County") <br /> The Borrower has applied for a loan from the County, and the County has agreed to make the <br /> loan. This Agreement sets out the terms of the loan, including the terms for payments and the security <br /> for the loan. <br /> NOW, THEREFORE, in consideration of the mutual promises set out in this Agreement, the <br /> parties agree as follows: <br /> PART ONE — AGREEMENT TO MAKE AND REPAY THE LOAN <br /> 1. The County will loan to the Borrower the sum of [$ ,000.00] (the "Loan"). The County is <br /> making this loan by giving the Borrower a check for the full amount of the loan. <br /> 2. The Borrower will repay the loan. The Borrower's obligation to repay the Loan will be represented <br /> by a promissory note (the "Note) in substantially the form of Exhibit A, which the Borrower will <br /> execute and deliver to the County in exchange for the Loan proceeds. The Note will set out the <br /> terms of repayment, including payment dates. <br /> 3. The Borrower will use the Loan for the purposes of its nonprofit business (the "Business") as <br /> described in its application to the County for this Loan. <br /> PART TWO - SECURITY FOR THE LOAN <br /> 4. To secure its obligations to the County under the Note and this Loan Agreement, Borrower grants <br /> to the County a security interest in the "Collateral" as described in Exhibit B. This Agreement is <br /> intended as, and constitutes, a security agreement within the meaning of the North Carolina <br /> Uniform Commercial Code (UCC) Financing Statement, with respect to the Collateral. The <br /> Borrower will execute and deliver to the County UCC Financing Statements and such other <br /> documents as the County may reasonably deem appropriate to secure the benefits of this <br /> Agreement. <br /> 5. To further secure the Borrower's obligations to the County under the Note and this Loan <br /> Agreement, shall execute a Deed of Trust agreement in substantially the <br /> form of Exhibit C. <br /> PART THREE - EVENTS OF DEFAULT <br /> 6. Events of Default—The happening of any of the following events shall constitute a default under <br /> this Agreement (these are the "Events of Default"): <br /> 6.1 The Borrower fails to pay when due any amounts payable under the Note; <br /> 6.2 The Borrower breaches or fails to perform or observe any term, condition or covenant of this <br /> Agreement or the Note on its part to be observed or performed; <br /> 6.3 The Borrower moves its principal place of business outside Orange County; <br /> 6.4 The Borrower sells all or substantially all of the assets of the Business; <br /> Page 1 of 6 <br />