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$1,100,000.00 <br />Exhibit B <br />(Promissory Note) <br />PROMISSORY NOTE <br />DATE: <br />For value received, MP Mosaic Garden Associates, L.P., a California limited partnership <br />(the "Owner"), hereby promises to pay to the City of Redwood City (the "City"), in United <br />States currency, the principal sum of One Million One Hundred Thousand and no/100 <br />Dollars ($1,100,000.00), together with interest thereon, if applicable, as provided below. <br />1. Fundinq Aqreement <br />This Promissory Note (the "Note") is entered into pursuant to that certain Funding <br />Agreement (the "Agreement") by and between the City and the Owner, <br />dated , 2018. In the event of a conflict between the provisions of this <br />Note and the Agreement, the provisions of the Agreement will govern. Capitalized terms <br />used in this Note will have meanings set forth in the Agreement unless otherwise defined <br />herein. This Note is the "Promissory Note" as defined in the Agreement. <br />2. Security <br />As security for payment of this Note, the Owner has granted to the City a deed of trust <br />(the "Deed of Trust") on certain property located in the City of Redwood City and the <br />improvements thereon as more fully described in the Agreement (the "Property"), which <br />Deed of Trust will be subordinate only to such security instruments as are approved by <br />the City in its sole discretion. <br />3. Reoavment Provisions <br />The principal amount under the Note shall bear an interest rate of three percent <br />(3%) simple interest from the date the Project has achieved permanent conversion. <br />Payment in full on the Note shall be due on the date which is 55 years from the <br />date of this Note (the "Note Maturity"). <br />b. Annual oavments. <br />Annual payments shall be made from Project's Residual Receipts <br />(defined below), as calculated beginning the first day of the first <br />month after the Project has achieved permanent conversion. Annual <br />payments shall begin upon City receipt of Owner's notification letter <br />("Notification Letter") that the reserve fund threshold has been met, <br />and shall be equal to the lesser of: (a) City share of 50% of Residual <br />Receipts, with payment amount determined by a pro rata proportion <br />of all public lenders requiring repayment (the City's share of which, <br />shall be calculated pro rata based on the principal balance at the time <br />ATTY/AGR/2018.027/MID PEN MOSIAC GARDENTS (ATHERTON COURT) <br />REV: 02-06-1815 <br />Page 26 of 41 <br />