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132758402v2 <br /> <br /> <br /> <br />UNITED STATES OF AMERICA <br />STATE OF MINNESOTA <br />COUNTY OF RAMSEY <br />CITY OF GEM LAKE, MINNESOTA <br />Educational Facilities Revenue Note, Series 2024 <br />(White Bear Montessori School, Inc. Project) <br />Dated: June ___, 2024 $3,000,000 <br /> <br />FOR VALUE RECEIVED the City of Gem Lake, Minnesota, (the “City”) hereby <br />promises to pay to the order of Premier Bank, a Minnesota corporation, in White Bear Lake, <br />Minnesota, its successors or registered assigns (the “Lender”), from the source and in the manner <br />hereinafter provided, the principal sum of THREE MILLION DOLLARS ($3,000,000), or so <br />much thereof as has been advanced and remains unpaid from time to time (the “Principal <br />Balance”), with interest thereon from the date hereof until paid or otherwise discharged as set <br />forth in Paragraph 1 below, in any coin or currency which at the time or times of payment is <br />legal tender for the payment of public or private debts in the United States of America, in <br />accordance with the terms hereinafter set forth. <br />1. Commencing on the date of this Note and continuing through [May 31], 2029 <br />interest shall accrue on the outstanding Principal Balance at the initial rate of 6.20% per annum <br />(the “Initial Rate”). <br />On [June 1] of each of 2029, 2034, 2039, and 2044 (each an “Adjustment Date”) through <br />[December 1], 2045 (the “Final Maturity Date”), the interest rate on this Note will be adjusted to <br />a rate per annum equal to the sum of: (i) the Wall Street Journal Prime Rate in effect as of each <br />Adjustment Date (the “Index”) minus (ii) 200 basis points (the “Adjusted Rate”). Such <br />adjustment to the interest rate shall be made and become effective as of the Adjustment Date and <br />the interest rate as adjusted shall remain in effect through and including the day immediately <br />preceding each Adjustment Date and the Final Maturity Date. Notwithstanding anything herein <br />to the contrary, the Adjusted Rate shall not be lower than 4.00% per annum. <br />If the Index becomes unavailable during the term of this Note, Lender may designate a <br />substitute comparable index in its sole discretion. <br />Interest on this Note shall be payable in monthly installments on the [1st] day of each <br />month commencing on [July 1], 2024, and continuing through and including [January 1], 2026. <br />Principal and interest on this Note shall be payable in monthly installments on the 1st day of <br />each month commencing [February 1], 2026 and continuing thereafter until the Final Maturity <br />Date in such amounts as are required to amortize the Principal Balance, together with accrued <br />interest thereon at the interest rate then in effect, over the remaining term of the Note measured <br />from [February 1], 2026. Payments shall be applied first to amounts which are neither principal <br />nor interest, next to interest due on the Principal Balance, and, thereafter, to reduction of the <br />Principal Balance. Interest shall be computed on the basis of a [360 day year, actual days <br />elapsed].