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APPENDIX B <br />FORM OF BOND <br />M <br />UNITED STATES OF AMERICA <br />STATE OF CALIFORNIA <br />CITY OF SAN LEANDRO <br />2012 TAXABLE PENSION OBLIGATION BOND <br />RATE OF INTEREST <br />MATURITY DATE: ORIGINAL ISSUE DATE: <br />[June 1], <br />CUSIP: <br />REGISTERED OWNER <br />PRINCIPAL AMOUNT: <br />CEDE & CO. <br />THOUSAND DOLLARS <br />The CITY OF SAN LEANDRO, a charter city and municipal corporation duly <br />organized and existing under the Constitution and laws of the State of California (the <br />"City "), for value received, hereby promises to pay to the Registered Owner identified <br />above or registered assigns (the "Registered Owner "), on the Maturity Date identified <br />above, the Principal Amount identified above in lawful money of the United States of <br />America; and to pay interest thereon at the Rate of Interest identified above in like lawful <br />money from the date hereof, which date shall be the Interest Payment Date (as <br />hereinafter defined) next preceding the date of authentication of this Bond (unless this <br />Bond is authenticated on or before an Interest Payment Date and after the first calendar <br />day of the month in which such Interest Payment Date occurs (a "Record Date "), in <br />which event it shall bear interest from such Interest Payment Date, or unless this Bond <br />is authenticated on or before May 15, 2012, in which event it shall bear interest from the <br />Original Issue Date identified above; provided, however, that if, at the time of <br />authentication of this Bond, interest is in default on this Bond, this Bond shall bear <br />interest from the Interest Payment Date to which interest hereon has previously been <br />paid or made available for payment), payable semiannually on [June 1] and [December <br />1] in each year, commencing [June 1], 2012 (the "Interest Payment Dates ") until <br />payment of such Principal Amount in full. <br />The Principal Amount hereof is payable upon presentation hereof at the <br />corporate office of U.S. Bank National Association, as trustee (the "Trustee "), in San <br />Francisco, California, or such other place as designated by the Trustee. Interest hereon <br />is payable by check of the Trustee mailed by first class mail on each Interest Payment <br />Date to the Registered Owner hereof at the address of such Registered Owner as it <br />IS <br />