NOTE SECURED BY DEED OF TRUST
(This Note Contains An Acceleration Clause)
San Leandro, California
$3,840,000.00 DATE: DECEMBER 22, 1997
In installments as herein stated, for value received, the undersigned, promise
to pay to: BAR K, INC. A CALIFORNIA CORPORATION. or order ("Lender"), at 000
Xxxxxxxxx Xxxxxx, Xxx Xxxxxxx, XX 00000, or other place that may be designated
by Lender through written notice to the undersigned. the sum of:
$3,840,000.00------------(THREE MILLION EIGHT HUNDRED FORTY THOUSAND DOLLARS)
with interest from the date of funding (which is ) on the unpaid principal
balance outstanding from time to time at the RATE OF INTEREST stated below,
payable in interest only monthly insta11ments in the amount of the MONTHLY
INSTALLMENT (S) stated below, due on the day of each month, beginning on, 1998
and continuing monthly thereafter until maturity, at which time all sums of
principal and interest then remaining unpaid shall be due and payable in full.
RATE OF INTEREST:
The rate of interest for the first year of the term of this promissory note
shall be TEN per cent (10%) per annum. ,
The rate of interest for the second through sixth years, inclusive, of the term
of this promissory note shall be TWELVE percent (12%) per annum.
MONTHLY INSTALLMENTS
The monthly installments for the~ first year of the term of this promissory note
shall be $32,000.00 per month (subject to adjustment based upon adjustments to
the principal balance from time to time). The monthly installments for the
second through sixth years, inclusive, of the term of this promissory note shall
be $38,400.00 per month (subject to adjustment based upon adjustments to the
principal balance from time to time).
LOAN FEE:
The undersigned agrees to pay to BAR K, INC. a California corporation a loan fee
of $192,000.00 which shall due and payable immediately after the proceeds of
this loan are funded. Such fee may be deducted from the proceeds of this
promissory note. Such fee is not a payment towards principal, interest or other
amounts due under this promissory note.
APPLICATION OF PAYMENT; COSTS OF COLLECTION: Each payment shall be credited
first to interest then due and payable and the remainder on principal and
interest shall thereupon cease upon the principal so credited. Upon default in
any payment of any installment. then the balance of this obligation shall become
due immediately at the option of the Lender hereof. All costs, expenses.
advances and/or attorneys. fees incurred to protect the security of this
Promissory Note shall be immediately owed from the Undersigned. whether or not
suit has been filed. All such advances, expenses. advances and/or attorneys'
fees shall accrue interest at the rate stated in this
PROMISSORY NOTE (version 3/18/97) PAGE 1
NOTE SECURED BY DEED OF TRUST
Promissory Note from the date incurred until paid. If any amounts which are
payable under this Promissory Note are not paid when due, the undersigned
promises to pay, in addition to the principal and interest due under this note,
all costs of collection and any reasonable attorney's fees incurred by the
Lender thereof on account of such collection, whether or not suit is filed or
foreclosure is commenced.
LATE CHARGE: If any installment due hereunder is delinquent more than 10 days.
the undersigned agrees to pay a late charge on each such installment of 10% of
the delinquent payment. All late payment charges are: to be paid immediately
upon demand. In addition. if any balloon payment (defined as a payment which is
greater than the largest single regular installment) is delinquent more than 10
days, the undersigned agrees to pay a late charge equivalent to the maximum late
charge which could be assessed on the largest single regular installment due
under this note. This late charge on the balloon payment is to continue to be
assessed for each subsequent period of time equal to the regular installment
period under this note until the balloon payment and other fees, interest and
charges due under this note are paid in full.
UNP AID CHECKS: The undersigned and Xxxxxx agree that it would be difficult to
determine the~ actual damages to the Beneficiary or Beneficiaries agent for the
return of an unpaid check provided by undersigned. It is hereby arced the
Undcr5igned will pay four percent (4%) or $25.00, whichever is greater. Such
amount is in addition to any late charge; or default interest which may be
applicable. This amount is in lieu of any statutory monetary penalty, if any.
However, Xxxxxx does not waive any other rights that may be awarded under any
statute.
PREPAYMENT:
The principal and accrued interest on this may be prepaid in whole or in part at
any time without penalty.
ALIENATION OF TITLE TO THE SECURITY:
The note is secured by a Deed of Trust of even date herewith which contains the
following provision:
If as to any or all of Trustor's interest in the Property, Trustor sells,
transfers. contracts to sell. gives an option to purchase. conveys, leases for a
term exceeding 10 years. encumbers. or alienates the Property; or causes or
allows tl1e Property to be subject to a junior lien or encumbrance~ or if any or
all of the title of the Trustor is impaired or divested. whether voluntarily or
involuntarily; or if title to the Property be subject to any lien or charge,
voluntary or involuntary, contractual 01" statutory, without the written consent
of Beneficiary being first had and obtained; then Beneficial shall have the
right of acceleration, at its option, to declare the Note secured by this Deed
of Trust. irrespective of the maturity date expressed therein, and without
demand or notice, immediately due and payable. No waiver of this right shall be
effective unless it is in writing. Consent by Beneficiary to one such
transaction shall not constitute waiver of the right to require such consent in
succeeding transactions.
REBATE:
In the event this Note is paid in full within six (6) months of the date of
funding set forth on page 1 hereof. the principal ba1an~ of this Note shall be
automatically reduced by the amount of Thirty Eight Thousand Four Hundred
Dollars ($38,400.00). Such reduction shall be considered a rebate in the
commission fee of one point.
PROMISSORY NOTE 50166 PAGE 2
NOTE SECURED BY DEED OF TRUST
NOTICE OF BALLOON PAYMENT: THIS PROMISSORY NOTE IS PAYABLE IN FULL ON THE
MATURITY DATE SHOWN ABOVE AT WHICH TIME THE ENTIRE PRINCIPAL BALANCE OF THIS
PROMISSORY NOTE AND ANY INTEREST THEN DUE AND ANY ADVANCES MADE MUST BE PAID.
THE PAYMENTS REQUIRED UNDER THIS PROMISSORY NOTE ARE NOT SUFFICIENT IN AMOUNT TO
REDUCE THE PRINCIPAL TO RETIRE THIS PROMISSORY NOTE ON OR BEFORE SUCH DATE. THE
OWNER OF THIS PROMISSORY NOTE IS NOT OBLIGATED TO REFINANCE 11iE LOAN EVIDENCED
BY THIS PROMISSORY NOTE AT ANY TIME- ON SUCH DATE. REFINANCING OF THIS
PROMISSORY NOTE MAYBE REQUIRED AND THE PREVAILING INTEREST RATE MAY BE
CONSIDERABLY HIGHER THAN THE RATE UNDER THIS PROMISSORY NOTE YOU MAY BE REQUIRED
TO PAY LOAN FEES AND COSTS UPON REFINANCE.
THIS NOTE IS NOT SUBJECT TO SECTION 29241 NOR 2966 OF THE CIVIL CODE
MISCELLANEOUS:
Principal and interest is payable in lawful money of the United States of
America. As an inducement to cause Lender to make this loan, the undersigned
represents that the undersigned has the financial ability to make the payments
stated herein. The undersigned consents to renewals, replacements and extensions
of time for payment hereof before, at, or after maturity; consents to acceptance
of security for this Note.
UPON DEFAULT:
ANY INTEREST WHICH BECOMES DUE UNDER THIS NOTE WHICH REMAINS DUE FOR MORE THAN
ONE MONIH SHALL ACCRUE INTEREST AT THE SAME RATE AND UPON THE SAME TERMS AS THE
PRINCIPAL UNDER THIS NOTE. IF THIS NOTE IS IN DEFAULT FOR MORE THAN ONE MONTH
CONTINUOUSLY, THEN THE INTEREST RATE OF THIS NOTE DURING THE PERIOD IN WHICH
SUCH DEFAULT REMAINS UNCURED SHALL BE INCREASED TO AN AMOUNT EQUAL TO THE
INTEREST RATE THEN DUE AS STATED ON THE FIRST PAGE OF THIS NOTE PLUS FIVE PER
CENT (5%). ANY PRINCIPAL BALANCE OUTSTANDING PAST THE DUE DATE OF THIS NOTE
SHALL BEAR INTEREST EQUAL TO THE HIGHEST INTEREST RATE STATED IN THIS NOTE PLUS
FIVE PER CENT (5%).
Executed on by (the "Undersigned'~:
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SACRAMENTO RESUL TS, INC., a
CALIFORNIA CORPORATION
By
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Its:
This Note is secured by a Deed of Trust
PROMISSORY NOTE 50186 PAGE 3
