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DocuSign Envelope ID:56COB206-26C6-403B-9D33-D169069A82E4 <br /> LOAN AND SECURITY AGREEMENT <br /> PART THREE - EVENTS OF DEFAULT <br /> 6. Events of Default — The happening of any of the following events shall constitute a default <br /> under 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 <br /> of this 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 /> 6.5 Any warranty, representation or statement made by the Borrower in this Agreement <br /> or otherwise to the Company in connection with this Loan is found to be incorrect or <br /> misleading in any material respect; <br /> 6.6 The Company believes in good faith that the prospect of the Borrower's payment or <br /> performance is impaired; <br /> 6.7 The Borrower seeks an order of relief under Federal Bankruptcy laws; <br /> 6.8 The Borrower becomes insolvent; or <br /> 6.9 A federal or state tax lien is filed against the assets of the Borrower. <br /> 7. Remedies on Default — Upon the continuation of any Event of Default, the Company may, <br /> without any further demand or notice, exercise any one or more of the following remedies: <br /> 7.1 Declare the unpaid balance of the Note immediately due and payable; <br /> 7.2 Proceed by appropriate court action to enforce the Borrower's performance of the <br /> applicable covenants of this Agreement or to recover for the breach thereof; <br /> 7.3 Pursue collection under the guaranties; <br /> 7.4 Pursue enforcement of the lien of the UCC Financing Statement; and <br /> 7.5 Avail itself of all other rights and remedies available at law and in equity. <br /> Page 2 of 9 <br />