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consent to all renewals, extensions, and other adjustments in the of payment of this note. This is a guaranty of payment and performance, not of collection, and it is an agreement of guaranty, not of suretyship. He waives all requirements of law, if any, to require that any collection efforts be made against EPS or that any action be brought against EPS before resorting to this guaranty. PART III. Economic Development provisions A. City agrees to provide a Loan to EPS in the amount of $14Ø,ØØØ.øø at an interest rate of five percent (5%) a.p.r. for twenty (2Ø) years ("LOANII). The funds for this purpose are being provided to City through a Texas Department of Commerce Community Development Program Contract Award. City further agrees to provide information and guidance to EPS concerning Texas Community Development Program related compliance, recordkeeping, and reporting requirements. B. EPS shall: 1. Use the entire amount of the loan funds for acquisition of the real property more particularly described in Exhibit II All. 2. Repay the loan in accordance with the terms of Part I - Real Estate Lien Note, of this AGREEMENT. 3. Create fi fteen {IS} permanent jobs at EPS of which ten (IØ) shall be provided to low and moderate income persons by December 14, 199Ø. 4. Invest a minimum of$934,ØØØ.Øø to leverage this economic development project. EPS shall acquire this sum from the following sources: $428,ØØØ.Øø through a permanent mortgage loan from First National Bank, San Marcos, Texas; $397,ØØØ.Øø through a permanent mortgage loan from Texas Certified Development Company, Inc.; and, $lØ9,ØØØ.Øø cash, from EPS. Specifically, EPS shall: a. Acquire loans from First National Bank, San Marcos, in the amount of $825,ØØØ.Øø to be used as follows: $4Øl,ØØØ.Øø for acquisition; $397,ØØØ.Øø interim construction loan; $7,58Ø.ØØ for construction, and $19,42Ø.ØØ for working capitol and fees. -3-