Agmt01 Shores Childcare, LLC - Max Keech

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EXHIBIT B NOTE SECURED BY DEED OF TRUST (VARIABLE RATE) $ __, Califomia ,200_ FOR VALUE RECEIVED, SHORES CHILDCARE, LLC, a California limited liability company (collectively "Borrower") promise(s) to pay to the order of THE CITY OF REDWOOD CITY, a municipal corporation ("Lender"), at 1017 Middlefield Road, Redwood City, Califomia, or at such other place as the holder of this Note may from time to time designate in writing, the principal sum of Dollars ($ ), together with interest from the Close of Escrow in connection with Borrower's acquisition of the real property described in the Leasehold Deed of Trust securing this Note (the "Dated Date"), computed on the outstanding principal balance hereof at an interest rate per annum equal to the Local Agency Investment Fund ("LAIF") apportionment rate as published from time to time by the Treasurer of the State of California applicable as of the immediately preceding calendar quarter plus 150 basis points, to and including the Maturity Date hereof (as hereinafter defined). The initial interest rate shall be __ percent per annum. Payments of principal shall be payable on each January 1, April 1, July 1 and September 1 (each a "Payment Date") commencing ,200_~ over a 240 month amortization period in accordance with the amortization schedule attached hereto and marked Exhibit "A." Interest shall be payable on the outstanding principal balance hereof on each Payment Date commencing ,200 , and shall be computed based upon a three hundred sixty five (365) day year for the actual number of days elapsed. The unpaid principal balance of this Note together with accrued interest thereon, shall be due and payable on ,20 , (the "Maturity Date"). The holder of this Note may elect to accelerate the Maturity Date of this Note to a date ("Accelerated Maturity Date") selected by the holder of this Note so long as the Accelerated Maturity Date occurs within the 120 month period immediately preceding the Maturity Date defined above; provided, however, the holder of this Note shall have given the maker of this Note written notice of such election not less than one hundred twenty (120) days prior to the Accelerated Maturity Date. Should default be made in the payment of principal or interest when due or in the performance or observance when due of any term, covenant or condition of any deed of trust, security agreement or other agreement (including amendments and extensions thereof) securing or pertaining to this Note, then, at the option of the holder hereof and without notice or demand, the entire balance of principal and accrued interest then remaining unpaid shall become immediately due and payable and thereafter shall bear interest, until the default is cured, at the increased rate of one and one-half percent (1.5%) per annum over and above the interest rate contracted for herein as it may vary from time to time. Borrower acknowledges and agrees that during the time that any payment of principal, interest or other amounts due under this Note is delinquent, the holder will incur additional costs and expenses attributable to its loss of use of the money due and to the adverse impact on the holder's ability to avail itself of other opportunities. 17996.00003\BGLIB 1 \1083971.5 I