BALLOON PAYMENT PROMISSORY NOTE

$100,000.00

Date: May 08, 2012

For value received, the undersigned J.R. Associates (the "Borrower"), at 440 Montgomery St.,
San Francisco, California 94103, promises to pay to the order of Gina Mackabee, (the "Lender"),
at 123 Main St., Mill Valley, California 94941, (or at such other place as the Lender may
designate in writing) the sum of $100,000.00 with interest from January 01, 2013, on the unpaid
principal at the rate of 6.8% per annum.
I. TERMS OF REPAYMENT
A. Payments
Unpaid principal after the Due Date shown below shall accrue interest at a rate of 10.5% annually
until paid.
The unpaid principal and accrued interest shall be payable in monthly installments of $1,955.19,
beginning on February 1, 2013, and continuing until March 1, 2017, (the "Due Date"), at which
time the remaining unpaid principal and interest shall be due in full.
THE BORROWER UNDERSTANDS THAT THE PAYMENT OF THE ABOVE
INSTALLMENT PAYMENTS MAY NOT FULLY AMORTIZE THE PRINCIPAL
BALANCE OF THE NOTE, AND THEREFORE, A BALLOON PAYMENT MAY BE DUE
ON THE DUE DATE.
B. Application of Payments
All payments on this Note shall be applied first in payment of accrued interest and any remainder in
payment of principal.
C. Late Fees
The Borrower promises to pay a late charge of $50.00 for each installment that remains unpaid
more than 3 day(s) after its Due Date. This late charge shall be paid as liquidated damages in lieu
of actual damages, and not as a penalty.
D. Acceleration of Debt
If any installment is not paid when due, the remaining unpaid principal balance and accrued interest
shall become due immediately at the option of the Lender.
II. PREPAYMENT
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The Borrower reserves the right to prepay this Note (in whole or in part) prior to the Due Date
with no prepayment penalty.
III. COLLECTION COSTS
If any payment obligation under this Note is not paid when due, the Borrower promises to pay all
costs of collection, including reasonable attorney fees, whether or not a lawsuit is commenced as
part of the collection process.
IV. DEFAULT
If any of the following events of default occur, this Note and any other obligations of the Borrower
to the Lender, shall become due immediately, without demand or notice:
1) the failure of the Borrower to pay the principal and any accrued interest in full on or before
the Due Date;
2) the death of the Borrower or Lender;
3) the filing of bankruptcy proceedings involving the Borrower as a Debtor;
4) the application for the appointment of a receiver for the Borrower;
5) the making of a general assignment for the benefit of the Borrower's creditors;
6) the insolvency of the Borrower;
7) a misrepresentation by the Borrower to the Lender for the purpose of obtaining or
extending credit.
V. SEVERABILITY
If any one or more of the provisions of this Note are determined to be unenforceable, in whole or
in part, for any reason, the remaining provisions shall remain fully operative.
VI. MISCELLANEOUS
All payments of principal and interest on this Note shall be paid in the legal currency of the United
States. The Borrower waives presentment for payment, protest, and notice of protest and
nonpayment of this Note.
No renewal or extension of this Note, delay in enforcing any right of the Lender under this Note,
or assignment by Lender of this Note shall affect the liability or the obligations of the Borrower. All
rights of the Lender under this Note are cumulative and may be exercised concurrently or
consecutively at the Lender's option.
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VII. GOVERNING LAW

This Note shall be construed in accordance with the laws of the State of California.
IN WITNESS WHEREOF, this Agreement has been executed and delivered in the manner
prescribed by law as of the date first written above.
Signed this _____ day of _______________, _____, at ___________________________,
_________________________ .

Borrower:
J.R. Associates

By:____________________________________________________
Steve Harenberger

GUARANTY

Redwood Investment Group unconditionally guarantees all the obligations of the Borrower under
this Note.

Date: ____________________, _____.

Redwood Investment Group

By:____________________________________________________
Jared Laughner

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ASSIGNMENT
[ONLY COMPLETE THE FOLLOWING INFORMATION TO ASSIGN PAYMENTS TO
A NEW PARTY.]
For value received, the above Note is assigned and transferred to

____________________________________________, ("Assignee") of

_________________________,_________________________,
(City)(State/province)

________________________.
(Country)
Dated: _________________________

By:____________________________________________________
Gina Mackabee

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AMORTIZATION SCHEDULE
Annual Percentage Rate = 6.8000%
Payment
Number

Payment
Date

Total
Payment

Principal = $100000.00

Interest
Amount

Principal
Amount

Loan
Balance

------------------------------------------------------------------------0

1/01/2013

0.00

0.00

0.00

100000.00

2/01/2013

1955.19

566.67

1388.52

98611.48

3/01/2013

1955.19

558.80

1396.39

97215.09

4/01/2013

1955.19

550.89

1404.30

95810.79

5/01/2013

1955.19

542.93

1412.26

94398.53

6/01/2013

1955.19

534.92

1420.27

92978.26

7/01/2013

1955.19

526.88

1428.31

91549.95

8/01/2013

1955.19

518.78

1436.41

90113.54

9/01/2013

1955.19

510.64

1444.55

88668.99

10/01/2013

1955.19

502.46

1452.73

87216.26

10

11/01/2013

1955.19

494.23

1460.96

85755.30

11

12/01/2013

1955.19

485.95

1469.24

84286.06

------------------------------------------------------------------------Subtotals

21507.09

5793.15

15713.94

12

1/01/2014

1955.19

477.62

1477.57

82808.49

13

2/01/2014

1955.19

469.25

1485.94

81322.55

14

3/01/2014

1955.19

460.83

1494.36

79828.19

15

4/01/2014

1955.19

452.36

1502.83

78325.36

16

5/01/2014

1955.19

443.84

1511.35

76814.01

17

6/01/2014

1955.19

435.28

1519.91

75294.10

18

7/01/2014

1955.19

426.67

1528.52

73765.58

19

8/01/2014

1955.19

418.01

1537.18

72228.40

20

9/01/2014

1955.19

409.29

1545.90

70682.50

21

10/01/2014

1955.19

400.53

1554.66

69127.84

22

11/01/2014

1955.19

391.72

1563.47

67564.37

23

12/01/2014

1955.19

382.86

1572.33

65992.04

------------------------------------------------------------------------Subtotals

23462.28

5168.26

18294.02

24

1/01/2015

1955.19

373.96

1581.23

64410.81

25

2/01/2015

1955.19

364.99

1590.20

62820.61

26

3/01/2015

1955.19

355.98

1599.21

61221.40

27

4/01/2015

1955.19

346.92

1608.27

59613.13

28

5/01/2015

1955.19

337.81

1617.38

57995.75

29

6/01/2015

1955.19

328.64

1626.55

56369.20

30

7/01/2015

1955.19

319.43

1635.76

54733.44

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31

8/01/2015

1955.19

310.16

1645.03

53088.41

32

9/01/2015

1955.19

300.83

1654.36

51434.05

33

10/01/2015

1955.19

291.46

1663.73

49770.32

34

11/01/2015

1955.19

282.03

1673.16

48097.16

35

12/01/2015

1955.19

272.55

1682.64

46414.52

------------------------------------------------------------------------Subtotals

23462.28

3884.76

19577.52

36

1/01/2016

1955.19

263.02

1692.17

44722.35

37

2/01/2016

1955.19

253.43

1701.76

43020.59

38

3/01/2016

1955.19

243.78

1711.41

41309.18

39

4/01/2016

1955.19

234.09

1721.10

39588.08

40

5/01/2016

1955.19

224.33

1730.86

37857.22

41

6/01/2016

1955.19

214.52

1740.67

36116.55

42

7/01/2016

1955.19

204.66

1750.53

34366.02

43

8/01/2016

1955.19

194.74

1760.45

32605.57

44

9/01/2016

1955.19

184.77

1770.42

30835.15

45

10/01/2016

1955.19

174.73

1780.46

29054.69

46

11/01/2016

1955.19

164.64

1790.55

27264.14

47

12/01/2016

1955.19

154.50

1800.69

25463.45

------------------------------------------------------------------------Subtotals

23462.28

2511.21

20951.07

48

1/01/2017

1955.19

144.29

1810.90

23652.55

49

2/01/2017

1955.19

134.03

1821.16

21831.39

50

3/01/2017

21955.10

123.71

21831.39

0.00

------------------------------------------------------------------------Subtotals

25865.48

402.03

25463.45

------------------------------------------------------------------------Grand Total

117759.41

17759.41

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100000.00