Document:

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                                                                   EXHIBIT 10.16

                                 PROMISSORY NOTE

$720,000.00                      Westborough, MA               December 6, 1999

For value received, Beacon Education Management LLC, a Tennessee limited
liability company (Borrower) promises to pay, on or before March 31, 2000, to
the order of Hambrecht Revocable Trust (Lender), the sum of Seven Hundred Twenty
Thousand Dollars or such other amounts may be advanced here against and
hereafter be outstanding hereunder. Borrower shall also pay Lender interest at
the rate of 8% per annum from the date funds are advanced to Borrower by Lender.

If the occurrence of any of the following shall constitute an event of default
under this Note: (a) the failure of Borrower to make any payment when due under
this or any other obligation to Lender (time of the essence of this Note); (b)
the institution of the proceedings by Borrower under any state insolvency law or
under any federal bankruptcy law; (c) the institution of proceedings against
Borrower under any state insolvency law or under any federal bankruptcy law, if
such proceedings are not dismissed within thirty (30) days; (d) Borrower's
becoming insolvent or generally failing to pay its debts as they become due; (e)
the instigation of legal proceedings against Borrower for the violation of a
criminal statute or for failure to pay state or federal taxes; (f) the entry of
a final judgment against Borrower that remains unsatisfied for five (5) days;
(g) Borrower's liquidation or cessation of business (h) the occurrence of a
material change in the control or ownership of Borrower; (i) the occurrence of a
default under the terms of any loan agreement, security agreement, deed of
trust, or similar document to which Borrower is a party or to which any property
securing this Note is subject; or (j) the occurrence of any event or presence of
any condition that causes Lender in good faith to feel insecure regarding the
likelihood of its receiving orderly and complete payment according to the terms
of this Note.

Upon the occurrence of an event of default, as defined above, Lender may, at its
option and without notice, declare all principal and interest provided for under
this Note, and any other obligations of Borrower to Lender, to be presently due
and payable, and Lender may enforce any remedies available to Lender under any
documents securing or evidencing debts of Borrower to Lender. Lender may waive
any default before or after it occurs and may restore this Note in full effect
without impairing the right to declare it due for a subsequent default, this
right being a continuing one. Upon default, the remaining unpaid principal
balance of the indebtedness evidenced hereby and all expenses due Lender shall,
at the option of Lender, bear interest at the rate stated above or at the
highest rate permissible under applicable law.

Borrower agrees to pay reasonable attorney's fees and all court and other costs
that Lender may incur in the course of efforts to collect the debt evidenced
hereby.

The validity and construction of this Note shall be determined according to
California law. If any provisions of this Note should for any reason be invalid
or unenforceable, the remaining provisions thereof shall remain in full effect.

The provisions of this Note may be amended or waived only by instrument in
writing signed by the Lender and Borrower and attached to this Note.

Beacon Education Management LLC

By:   /s/ William R. DeLoache, Jr.
   ------------------------------------

William R. DeLoache, Jr., Chairman<PAGE>   1
                                                                  EXHIBIT 10.17

                                 PROMISSORY NOTE

U.S. $2,225,000                                   Dated as of February 17, 2000
or such portion thereof
as has been advanced

         FOR VALUE RECEIVED, the undersigned, BEACON EDUCATION MANAGEMENT, INC.,
a Delaware corporation ("Borrower"), PROMISES TO PAY to the order of KINDERCARE
LEARNING CENTERS, INC., a Delaware corporation ("Lender"), on February 17, 2005
(the "Maturity Date"), the lesser of (i) Two Million Two Hundred Twenty Five
Thousand Dollars ($2,225,000), or (ii) the unpaid principal amount of all
advances made by Lender to Borrower pursuant to the Loan Agreement referred to
below plus unpaid interest thereon. Notwithstanding the foregoing, no unpaid
principal amount or interest on the Term Loans shall be payable if such amounts
have been previously converted into Common Stock of Borrower pursuant to the
Loan Agreement.

         For purposes of this Note, the following terms shall have the meanings
set forth below. Capitalized terms used but not otherwise defined herein shall
have the meanings ascribed thereto in the Loan Agreement.

         "Interest Rate" means, for any day, a rate per annum equal to the
lesser of (a) the highest rate allowed by law, or (b) eight percent (8%) per
annum.

         "Loan Agreement" means the Equity Purchase and Loan Agreement dated as
of even date herewith by and between Borrower and Lender, as the same may be
amended, supplemented or otherwise modified from time to time.

         Borrower shall pay interest on the unpaid principal balance of this
Note from the date hereof until the repayment in full thereof at the Interest
Rate. Interest shall be calculated based on a 365/366-day year and the actual
number of days elapsed, and shall be compounded semiannually. Principal and
accrued interest shall be due and payable in full on the Maturity Date.

         Both principal and interest are payable in United States Dollars in
immediately available funds. All principal and interest shall be paid to Lender
pursuant to the payment provisions in the Loan Agreement.

         The terms and provisions of the Loan Agreement are hereby incorporated
herein by this reference, and reference is made to the Loan Agreement for the
basic terms of the Term Loan. The Loan Agreement, among other things, contains
provisions for (i) acceleration of the maturity hereof upon the happening of
certain stated events, (ii) prepayments on account of principal hereof prior to
the Maturity Date upon the terms and conditions therein specified, (iii)
reborrowings of amounts upon the terms and conditions therein specified, (iv)
conversion, from

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time to time, of all or a portion of the unpaid principal and interest on the
Term Loans into Common Stock of Borrower, and (v) the simultaneous advance and
conversion, from time to time, of any unadvanced portion of the Commitment into
Common Stock of Borrower.

         The Lender may, from time to time, make a notation on the attached
schedule, of any advance, repayment and/or conversion of a Term Loan and such
notation shall be rebuttable presumptive evidence that such advance, repayment
and/or conversion has occurred; provided, however, that the failure to make a
notation of any such advance, repayment and/or conversion shall not limit or
otherwise affect the obligations of the Borrower hereunder or under the Loan
Agreement with respect to payments of principal or interest on any Term Loan or
this Note or the obligation of the Borrower to recognize any conversion of any
Term Loan into Common Stock.

         In addition to and not in limitation of the foregoing and the
provisions of the Loan Agreement, the undersigned further agrees, subject only
to any limitation imposed by applicable law, to pay all reasonable expenses,
including reasonable attorneys' fees and legal expenses, incurred by the holder
of this Note in endeavoring to collect any amounts payable hereunder which are
not paid when due, whether by acceleration or otherwise. Borrower waives demand,
presentment, protest, diligence, notice of dishonor and any other formality in
connection with this Note.

         This Note shall be binding upon the Borrower and its permitted
successors and assigns and shall inure to the benefit of the Lender and its
permitted successors and assigns.

         IN WITNESS WHEREOF, Borrower has caused this Note to be executed as of
the date and year first above written.

                                       BEACON EDUCATION MANAGEMENT, INC.

                                       By:      /s/ W. R. DeLoache, Jr.
                                           ------------------------------------
                                       Name:    W. R. DeLoache, Jr.
                                             ----------------------------------
                                       Title:   Chairman
                                               --------------------------------

                                       2<PAGE>   1
                                                                   EXHIBIT 10.18

                              AMENDED AND RESTATED
                                 PROMISSORY NOTE

U.S. $2,300,000                                       Dated as of March 31, 2001

         FOR VALUE RECEIVED, the undersigned, BEACON EDUCATION MANAGEMENT, INC.,
a Delaware corporation ("Borrower"), PROMISES TO PAY to the order of KINDERCARE
LEARNING CENTERS, INC., a Delaware corporation ("Lender"), on November 15, 2001
(the "Maturity Date"), the principal sum of Two Million Three Hundred Thousand
Dollars ($2,300,000) plus unpaid interest thereon. Notwithstanding the
foregoing, no unpaid principal amount or interest on this Note shall be payable
if such amounts have been previously converted into Common Stock of Borrower
pursuant to the Loan Agreement.

         For purposes of this Note, the following terms shall have the meanings
set forth below. Capitalized terms used but not otherwise defined herein shall
have the meanings ascribed thereto in the Loan Agreement.

         "Interest Rate" means, for any day, a rate equal to (i) (a) 11% per
annum from April 1, 2001 through June 30, 2001, (b) 13% per annum from July 1,
2001 through September 30, 2001 and (c) 15% per annum thereafter, or (ii) if
lower than the rate determined in accordance with (i), the maximum percentage
permitted by law, payable in full when the principal becomes due and payable.

         "Loan Agreement" means the Equity Purchase and Loan Agreement dated as
of February 17, 2000, as amended by the Amendment to Loan Agreement of September
28, 2000 (the "First Amendment") and the Second Amendment to the Loan Agreement
of even date herewith by and between Borrower and Lender, as the same may be
amended, supplemented or otherwise modified from time to time.

         Borrower shall pay interest on the unpaid principal balance of this
Note from the date hereof until the repayment in full thereof at the Interest
Rate, on a monthly basis, with the first installment payable on May 1, 2001, and
subsequent installments payable on the 1st day of each succeeding month until
the indebtedness evidenced hereby has been paid in full. All principal and
accrued and unpaid interest shall be due and payable in full on the Maturity
Date.

         Both principal and interest are payable in United States Dollars in
immediately available funds. All principal and interest shall be paid to Lender
pursuant to the payment provisions in the Loan Agreement.

         The terms and provisions of the Loan Agreement are hereby incorporated
herein by this reference, and reference is made to the Loan Agreement for the
basic terms of this Note. The Loan Agreement, among other things, contains
provisions for (i) acceleration of the maturity hereof upon the happening of
certain stated events, (ii) prepayments on account of principal hereof prior to
the Maturity Date upon the terms and conditions therein specified, and (iii)
conversion, from time to time, of all or a portion of the unpaid principal and
interest on this Note into Common Stock of Borrower.

         The indebtedness and other obligations evidenced by this Note are
secured by the Pledge and Security Agreement, dated as of the date hereof, by
and between Borrower and Lender.

         The Lender may, from time to time, make a notation on the attached
schedule, of any repayment and/or conversion of this Note and such notation
shall be rebuttable presumptive evidence that such repayment and/or conversion
has occurred; provided, however, that the failure to make a notation of any

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such repayment and/or conversion shall not limit or otherwise affect the
obligations of the Borrower hereunder or under the Loan Agreement with respect
to payments of principal or interest on this Note or the obligation of the
Borrower to recognize any conversion of this Note into Common Stock.

         In addition to and not in limitation of the foregoing and the
provisions of the Loan Agreement, the undersigned further agrees, subject only
to any limitation imposed by applicable law, to pay all reasonable expenses,
including reasonable attorneys' fees and legal expenses, incurred by the holder
of this Note in endeavoring to collect any amounts payable hereunder which are
not paid when due, whether by acceleration or otherwise. Borrower waives demand,
presentment, protest, diligence, notice of dishonor and any other formality in
connection with this Note.

         This Note is intended to amend and restate in its entirety the
Promissory Note, dated as of September 28, 2000, issued by Borrower to Lender in
connection with the First Amendment. This Note shall be binding upon the
Borrower and its permitted successors and assigns and shall inure to the benefit
of the Lender and its permitted successors and assigns.

         IN WITNESS WHEREOF, Borrower has caused this Note to be executed as of
the date and year first above written.

                                    BEACON EDUCATION MANAGEMENT, INC.

                                    By: /s/ William R. DeLoache, Jr.
                                        ---------------------------------------

                                    Title: Chairman
                                           ------------------------------------

Agreed and Accepted:

KINDERCARE LEARNING CENTERS, INC.

By: David J. Johnson
    ----------------------------------------

Title: Chairman and CEO
       -------------------------------------

Date: March 30, 2001

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