Reso 1997-071 to 075 - Laserfiche WebLink

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SECTION 1.04 PURPOSE The proceeds of the LOAN shall be used only in the BORROWER's business for: Expansion of existing restaurant. SECTION 1.05 CLOSING COSTS BORROWER shall pay all closing costs which are charged to escrow at the occurrence of escrow closing. SECTION 1.06 SECURITY (a) As security for BORROWER's indebtedness to LENDER, Ruby Sung , shall execute PERSONAL SECURITY AGREEMENT with LENDER as a condition precedent to LENDER making the LOAN in substantially the form attached hereto in favor of the LENDER. The PERSONAL SECURITY AGREEMENT shall be dated prior to or concurrently herewith this Agreement and all terms of which are incorporated herein by this reference. (b) As further security for BORROWER's indebtedness to LENDER, BORROWER shall execute a SECURITY AGREEMENT and a Financing Statement (UCC1 Form) in substantially the form attached hereto as Exhibit C in favor of the Lender. The SECURITY AGREEMENT shall be dated prior to or concurrently herewith this Agreement and all terms of which are incorporated herein by this reference. BORROWER shall execute any additional Financing Statement(s) deemed by the LENDER to be necessary or useful to perfect the Lender's security interest in the Collateral, as that term is defined in the SECURITY AGREEMENT. SECTION 1.07 EMPLOYMENT AGREEMENT BORROWER shall enter into CITY OF SAN LEANDRO EMPLOYMENT AGREEMENT with LENDER or LENDER's designee as a condition precedent to LENDER making the LOAN. The EMPLOYMENT AGREEMENT shall be dated prior to or concurrently herewith this Agreement and all terms of which are incorporated herein by this reference. As a condition of the LOAN, the BORROWER agrees to make a good faith effort to hire at least the equivalent of 51 percent low income employees, 70% of whom are San Leandro residents, within one year of the date of this AGREEMENT and to maintain the 51 percent level for the term of this AGREEMENT. ARTICLE II: REPRESENTATIONS AND WARRANTIES BORROWER makes the following representations and warranties to LENDER, which representations and warranties shall survive the execution of this AGREEMENT: SECTION 2.01 LEGAL STATUS BORROWER is a partnership duly organized and existing under the laws of the State of California, and is qualified to do business in all jurisdictions in which it conducts its business. SECTION 2.02 NO VIOLATION The making and performance by BORROWER of this Agreement does not violate any provision of law, or CITY OF SAN LEANDRO Statute or Ordinance, or result in a breach of or constitute a default under any agreement, indenture or other instrument to which BORROWER is a party or by which BORROWER may be bound. Loan Agreement Page 2 of 11