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31 <br />ibi m ecuri <br />A REE T <br />THIS SECURITY AGREEMENT is dated as of Mazch , 2000, and is by and <br />between ORANGE COUNTY SMALL BUSINESS LOAN PROGRAM COMPANY, <br />a North Carolina nonprofit corporation (the "Company"), and , a <br />[national banking association] [North Carolina banking corporation] (the "Bank"). <br />RECITALS: <br />The Company is indebted to the Bank up to the sum of $ as evidenced <br />by the Company's Promissory .Note of even date herewith (the "Note"). The Note <br />evidences the Company's obligations under that certain Loan Agreement by and among <br />the Company, Orange County, North Carolina, the Bank and certain other financial <br />institutions of even date herewith (the "Loan Agreement"). This is one of the security <br />agreements referred to in the Loan Agreement. <br />The Company desires to secure its obligations under the Note and the Loan <br />Agreement by granting to the Bank a security interest in certain chattel paper and other <br />collateral. <br />Capitalized terms used in this Security Agreement and not otherwise defined <br />have the meanings ascribed thereto in the Loan Agreement <br />NOW, THEREFORE, in consideration of the premises and other good and <br />valuable consideration, the parties agree as follows: <br />1. The Company pledges, assigns and grants to the Bank a continuing security <br />interest in, and a lien upon, (a) all of the Program Loan Documents, (b) .any other chattel <br />paper (as defined under the North Carolina Uniform Commercial Code) held by the <br />Company and arising from Program Loans, (c) all amounts in the Company's possession <br />from time to time constituting Net Cash Proceeds, and (d) any other collateral for <br />Program Loans held by the Company (the property described in clauses (a), (b), (c) and <br />(d) of this paragraph is referred to collectively in this Security Agreement as the <br />"Collateral"). <br />The Company grants this security interest to secure the Company's prompt and <br />complete performance of all of its obligations to the Bank under the Loan Agreement and <br />the Note (and all other documents executed and delivered pursuant thereto or in <br />connection therewith), whether now existing or hereafter arising, whether primary or <br />secondary, direct or indirect, absolute, contingent or conditional or due or to become due <br />17 <br />