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<br />1 <br /> AMENDMENT NO. 1 TO LOAN AGREEMENT AND PROMISSORY NOTE WITH THE SAN LEANDRO IMPROVEMENT ASSOCIATION <br /> This Amendment No. 1 to Loan Agreement and Promissory Note (this “Amendment”) is <br />entered into as of _____________ for reference purposes only, by and between the San Leandro <br />Improvement Association, a California non-profit (“Borrower”) and the City of San Leandro, a <br />California charter city (the “City”) with reference to the following facts: <br /> <br /> A. Borrower requested, and Lender agreed to provide, a loan of monies (the “Loan”) <br />through a negotiated agreement pursuant to certain terms and conditions for the purpose of <br />providing Borrower funding for Downtown San Leandro capital improvements (the “Loan <br />Agreement”). Lender was amenable to such a loan, subject to specific provisions that provide <br />Lender assurance that the Loan will be paid before all of Borrower’s other debts and obligations <br />from assessments due and owing to Borrower established under the California Property and <br />Business Improvement District Law of 1994 (“PBID Law”) (California Streets & Highways <br />Code section 36600 et seq.). The Loan Agreement was approved by the City Council for the City <br />of San Leandro on December 19, 2016; and <br /> <br /> B. The Loan Agreement is also evidenced by that certain Secured Promissory Note <br />approved December 19, 2016, labeled as Exhibit A (the “Note”). This Amendment No. 1, the Loan <br />Agreement, and the Note are collectively referred to herein as the “Loan Documents.” <br /> C. Borrower and City now wish to amend the Loan Agreement to defer principal payments until 2022, and to establish the schedule, through a new Exhibit B to the Loan <br />Agreement, by which payments defined in the Loan Agreement shall be made. <br /> <br /> NOW, THEREFORE, in consideration of the foregoing, of the mutual promises of the <br />parties hereto and for other good and valuable consideration the receipt and sufficiency of which are <br />hereby acknowledged, the parties mutually agree to amend the Loan Documents as follows: <br /> <br /> 1. Incorporation of Recitals. The Recitals set forth above are each incorporated into <br />the body of this Amendment as if set forth in full. <br /> <br /> 2. Section 1.2 of the Loan Agreement is amended in its entirety to read as follows: <br /> INTEREST RATE; PAYMENT DATES; MATURITY DATE. Interest shall accrue on the outstanding principal balance of the Loan at a rate of three percent (3.0%) simple interest per <br />annum. Payments shall be due and payable in accordance with the schedule set forth in Exhibit <br />B, which is attached hereto and made a part hereof. The entire outstanding principal balance of <br />the Loan together with accrued interest and all other sums due under the Loan Documents shall <br />be payable in full on July 31, 2027, all in accordance with Exhibit B (the “Maturity Date”). <br />Notwithstanding the foregoing, the Lender shall have the right to accelerate the Maturity Date <br />and declare all sums payable under the Note immediately due and payable upon Lender’s