2006/05/31 Council Agenda Packet

. R Attachment B Form of PROMISSORY NOTE $30,000.00 Everett, Washington 1. Promise to Pay. In consideration for the financial assistance provided by the City of Everett ("Holder") pursuant to the City of Everett HOME Loan Agreement entered into between Maker and Holder on the day of June 2006 ("HOME Agreement"), Monte Cristo Partners, L.P. ("Maker"), hereby promises to pay to the order of Holder, at such place as Holder may designate in writing, in lawful money of the United States of America, the principal sum of Thirty Thousand Dollars ($30,000.00) on the terms and conditions set forth herein and in the HOME Agreement (the "Loan"). 2. Term. The Note shall be due on December 31, 2047 (the "Maturity Date"). 3. Interest. Interest shall accrue on the unpaid principal balance at the rate of Four and 79/100 (4.79%) percent per annum compounded annually. 4. Payment of Principal and Interest. Principal and interest shall be due in on the Maturity Date. 5. Prepayment. Maker shall have the right to prepay this Note in full or in part at any time and from time to time without payment of a prepayment fee or penalty. 6. Default. This Note shall be in default (a) if payment is not made when due, and such default shall continue for a period of ten (10) days after any written notice to the Maker from Holder hereof specifying such default and requiring the same to be remedied; or (b) if Maker fails to fully comply with any covenants, terms, or provisions of the HOME Agreement or any instruments relating to or securing this Note executed by Maker and Owner ("Loan Documents"), and such default continues after the expiration of any period granted to Maker for curing such default as provided for in any notice from Holder hereof to Maker. Upon such a default the whole sum of principal and accrued interest hereunder shall become immediately due and payable according to the terms herein. As long as this Note is in default, then, at the option of the Holder, without prior notice, this Note shall bear interest at the rate of ten percent (10%) per annum. A. Curing of Monetary Default. If a monetary event of default occurs under the terms of any of the Loan Documents, before exercising any remedies thereunder, Holder shall give Maker written notice of such default. Maker shall have a period of ten (10) days after such notice is given within which to cure the default before exercise of remedies by Holder under the Loan Documents, or such longer period of time as may be specified in the Loan Documents. A default in payment of any amount due hereunder may be cured only by payment in full of such amount plus the interest C-3 7 9