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290 <br /> <br />the TOWN OF MOUNT PLEASANT, a municipal subdivision of the State of <br />North Carolina (hereinafter referred to as the "Town"), and the <br />COUNTY OF CABARRUS, a governmental subdivision of the State of North <br />Carolina (hereinafter referred to as the "County"). <br /> <br />W I T N E S S E T.H.: <br /> <br /> WHEREAS, the Town has constructed a dam and impoundment <br />facility (the "Facility") known as the "Black Run Creek Impoundment" <br />located southwest of the intersection of State Road 2426 and State <br />Road 2416 in Cabarrus County, North Carolina on real property more <br />specifically described on Exhibit A attached hereto and incorporated <br />herein by reference (the "Facility Site"; the Facility and the <br />Facility Site being hereinafter sometimes collectively referred to <br />as the "Project"); and <br /> <br /> WHEREAS, the Town has caused to be created a North Carolina <br />non-profit corporation named the Black Run Creek Development <br />Authority, Inc. (the "Authority"); and <br /> <br /> WHEREAS, in order to finance a portion of the costs of the <br />acquisition, construction, installation and equipping of the <br />Project, First Union National Bank (the "Bank") loaned to the <br />Authority the sum of Six Hundred Thousand Dollars ($600,000)(the <br />"Loan"); and <br /> <br /> WHEREAS, the obligation of the Authority to repay the Loan is <br />evidenced by the Note of the Authority, dated March 15, 1988, <br />payable to the order of the Bank, in the principal amount of Six <br />Hundred Thousand Dollars ($600,000)(the "Note"); and <br /> <br /> WHEREAS, in order that the interest payable by the Authority <br />to the Bank on the Note might be exempt from Federal income <br />taxation, it was necessary that the Town and the County convey to <br />the Authority all of their right, title and interest in and to the <br />Project; and <br /> <br /> WHEREAS, after the Note has been paid in full by the <br />Authority, the Authority will reconvey to the Town all of its right, <br />title and interest in and to the Project; <br /> <br /> WHEREAS, the Town and the County have previously entered into <br />three (3) Agreements with respect to the Project, with the first <br />Agreement bearing the date November 5, 1984 (the "1984 Agreement"), <br />the second Agreement bearing the date September 2, 1987 (the "1987 <br />Agreement"), and the third Agreement bearing the date March 15, 1988 <br />(the "1988 Agreement"); and <br /> <br /> WHEREAS, the Town and the County wish to set forth certain <br />terms relating to the financing of the Project, as well as to other <br />matters, which terms shall supercede the provisions of the 1984 <br />Agreement, the 1987 Agreement, and the 1988 Agreement; <br /> <br /> NOW, THEREFORE, in consideration of the mutual covenants <br />herein contained, and for other good and valuable considerations, <br />the receipt and sufficiency of which are hereby acknowledged, the <br />Town and the County do hereby agree as follows: <br /> <br /> Section 1. The Town hereby acknowledges and agrees that <br />on the date on which all of the outstanding principal of, and <br />accrued but unpaid interest on, the Note shall have been paid <br />in full, it will convey to the County a one-half undivided <br />interest in and to the Project by special warranty deed. <br /> <br /> Section 2. The Town and the County each hereby <br />acknowledge that the County has previously paid to the Town <br />the sum of Six Hundred Thousand Dollars ($600,000) pursuant <br />to the 1984 Agreement and the sum of Seven Hundred Thousand <br />Dollars ($700,000) pursuant to the 1987 Agreement and the 1988 <br />Agreement in order to finance a portion of the costs of the <br /> <br /> <br />