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ESBLPLSA <br /> <br /> <br />4. To secure its obligations to the County under the Note and this Loan Agreement, Borrower grants to <br />the County a security interest in the “Collateral” as described in Exhibit A. This Agreement is intended <br />as, and constitutes, a security agreement within the meaning of the North Carolina Uniform <br />Commercial Code (UCC) Financing Statement, with respect to the Collateral. The Borrower will <br />execute and deliver to the County such documents as the County may reasonably deem appropriate <br />to secure the benefits of this Agreement. <br /> <br />5. If required by the County, to further secure the Borrower’s obligations to the County under the Note <br />and this Loan Agreement, Borrower shall execute a personal guaranty. <br /> <br /> <br />PART THREE - EVENTS OF DEFAULT <br /> <br />6. Events of Default – The happening of any of the following events shall constitute a default under this <br />Agreement (these are the “Events of Default”): <br />6.1 The Borrower fails to pay when due any amounts payable under the Note; <br /> <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 /> <br />6.3 The Borrower moves its principal place of business outside Orange County; <br /> <br />6.4 The Borrower sells all or substantially all of the assets of the Business; <br /> <br />6.5 Any warranty, representation or statement made by the Borrower in this Agreement or otherwise <br />to the County in connection with this Loan is found to be incorrect or misleading in any material <br />respect; <br /> <br />6.6 The County believes in good faith that the prospect of the Borrower’s payment or performance <br />is impaired; <br /> <br />6.7 The Borrower seeks an order of relief under Federal Bankruptcy laws; <br /> <br />6.8 The Borrower becomes insolvent; or <br /> <br />6.9 A federal or state tax lien is filed against the assets of the Borrower. <br /> <br />7. Remedies on Default – Upon the occurrence of an Event of Default, the County may, without any <br />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 /> <br />7.2 Proceed by appropriate court action to enforce the Borrower’s performance of the applicable <br />covenants of this Agreement or to recover for the breach thereof; <br /> <br />7.3 Pursue collection under the guaranties; <br /> <br />7.4 Pursue enforcement of the lien of the UCC Financing Statement; and <br /> <br />7.5 Avail itself of all other rights and remedies available at law and in equity. <br /> <br />DocuSign Envelope ID: 03233199-7132-43D7-A472-1876C4D65FEC