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012 <br />PROMISSORY NOTE AND LOAN AGREEMENT <br />Sanford, N. C. <br />$ 150,000 Date <br />FOR VALUE RECEIVED, the Lee County Economic Development Corporation (hereinafter "Borrower "), <br />promises to pay the County of Lee, a body both politic and corporate of the State of North Carolina <br />(hereinafter "County "), a principal sum of up to ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000), <br />with no interest on the unpaid balance until paid or until default, both principal and interest payable in <br />lawful money of the United States of America, at the office of the Finance Director, 408 Summit Drive, <br />Sanford, North Carolina 27330, or at such place as the legal holder hereof may designate in writing. It is <br />understood and agreed that additional amounts may be advanced by the holder hereof as provided in <br />the instruments, if any, securing this Note and such advances will be added to the principal of this Note <br />and will accrue interest at the above specified rate of interest from the date of advance until paid. <br />This Note is given for money loaned, or to be loaned, by the County to the Borrower for the purpose <br />of planning and fundraising for the creation of a new Economic Development Corporation involving <br />public - private partnerships. Borrower acknowledges and agrees that this promissory note is a valid <br />obligation of the Borrower. Borrower's signatories certify that it has authority to enter into this <br />obligation and is doing so willingly. <br />The proceeds of this loan shall be maintained and disbursed as needed by the Lee County Finance <br />Director in a separate fund. The County reserves the unilateral right to immediately suspend <br />disbursements in the event of non - performance by the Borrower. Borrower must request or draw down <br />any funds needed by December 1, 2014. After such date, funds shall no longer be available unless <br />agreed upon in writing by County and Borrower. <br />Borrower agrees to incur no additional debt without the prior written approval of the County. Borrower <br />will provide County with quarterly activity reports regarding the actions taken and the results thereof <br />related to the use of the loan proceeds. <br />It is anticipated that Borrower will be receiving funds from contributions or grants throughout a five - <br />year period commencing January 1, 2015. If the full $150,000 is not disbursed to the Borrower during <br />this period, the annual payments shall be reduced accordingly. The Borrower shall repay the County in <br />five annual $30,000 payments commencing January 1, 2015 under the following formula: After an <br />annual $20,000 working capital reserve fund is established each January, from any additional funds <br />