8932-17 Authorize three-year loan to Western Reserve Distillers

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Section 5.11 Expense of Collection or Enforcement In the event Borrower defaults on any provision or obligation contained in the Loan Documents or this Agreement, Borrower shall pay the City an amount equal to the City's costs and expenses of collection, enforcement or correction of such default in addition to any other amounts that may be due from Borrower on the Loan. Moreover, the Borrower's obligations and duties to the City, which are set forth in this Section, shall continue unabated until the City has no environmental obligations or liabilities under any local, state or federal laws and any rules or regulations thereunder. ARTICLE VI - EVENTS OF DEFAULT The entire unpaid principal of the Note and any other amounts due under the Loan Documents shall become and be immediately due and payable upon the written demand of the City, without any other notice or demand of any kind of presentment or protest, if any one of the following events occurs (an "Event of Default ") and is continuing at the time of such demand, whether it is voluntary or involuntary or, without limitation, occurring or brought about by operation of law or pursuant to or in compliance with any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body. Section 6.01 Default and Cure (1) Default Under Note -- If Borrower shall fail to comply with its obligations under this Agreement and the Secured Promissory Note of even date. (2) Payment Default Under Other Indebtedness -- If default shall exist in the payment when due of any installment of principal or interest on any of Borrower's other indebtedness and if such default shall remain unremedied for thirty (30) days whether such other indebtedness is in existence at the Execution Date or incurred after such date; (3) Incorrect Representations or Warranties -- If any representation or warranty contained in or made in connection with the execution and delivery of this Agreement or in any certificate furnished pursuant hereto shall prove to have been incorrect or untrue in any material respect when made; (4) Default in Covenants -- If Borrower defaults in the performance of any other term, covenant, or agreement contained in the Loan Documents and such default shall continue unremedied for thirty (30) days after the earlier of either: (1) the default becoming known to an executive officer of Borrower; or (2) written notice thereof was given to Borrower by City; Page 13 of 19