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1 <br />LOAN AGREEMENT <br />This Loan Agreement (this “Agreement”) is entered into effective as of _______, 2016 <br />(“Effective Date”) by and between the San Leandro Improvement Association, a California <br />non-profit organization (“Borrower”) and the City of San Leandro, a charter city formed under the laws of the State of California (“Lender”). Lender and Borrower are hereinafter collectively <br />referred to as the “Parties.” <br /> <br />RECITALS <br />A. Borrower has requested, and Lender has agreed to provide, a loan (“Loan”) pursuant to the terms and conditions hereof for the purpose of providing Lender funding for <br />Downtown San Leandro capital improvements. Lender is amenable to such a loan, subject to <br />specific provisions that provide Lender assurance that the Loan will be paid before all of <br />Borrower’s other debts and obligations from assessments due and owing to Borrower established <br />under the California Property and Business Improvement District Law of 1994 (“PBID Law”) (California Streets & Highways Code section 36600 et seq.); and <br />B. Concurrently herewith, Borrower shall execute a promissory note (“Note”) in the <br />amount of the Loan, which shall define the amounts owed, manner of repayment, and <br />consequences of default. This Agreement and the Note are collectively hereinafter referred to as <br />the “Loan Documents.” <br />NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency <br />of which are hereby acknowledged, the Parties hereby agree as follows. <br />ARTICLE I <br />LOAN TERMS <br />1.1 LOAN AND NOTE. Lender agrees to loan to Borrower, and Borrower agrees to borrow from and repay to Lender, the sum of Two Hundred Eighty-Five Thousand Dollars <br />($285,000.00) upon the terms and conditions and for the purposes set forth in this Agreement. <br />The Loan shall be evidenced by the Note, which shall be dated as of the Effective Date and <br />executed by Borrower substantially in the form attached hereto as Exhibit A. Provided that <br />Borrower has complied with all conditions precedent to disbursement of the Loan set forth in Section 2.3, the Loan Proceeds shall be disbursed in accordance with Section 2.2 hereof. Lender <br />shall disburse Loan Proceeds only for the purposes set forth in Section 2.1. <br />1.2 INTEREST RATE; PAYMENT DATES; MATURITY DATE. Interest shall <br />accrue on the outstanding principal balance of the Loan at a rate of three percent (3.0%) simple <br />interest per annum. Annual payments shall be due and payable in accordance with the terms set forth in the Note. The entire outstanding principal balance of the Loan together with accrued <br />interest and all other sums due under the Loan Documents shall be payable in full on the tenth <br />(10th) anniversary of the Effective Date (the “Maturity Date”). Notwithstanding the foregoing, <br />the Lender shall have the right to accelerate the Maturity Date and declare all sums payable <br />under the Note immediately due and payable upon Lender’s declaration of an Event of Default.