HOUSING OPTIONS UTILIZING SUPPORTIVE ENVIRONMENTS INC

PROMISSORY NOTE Deferred Payment Loan BORROWER: Housing Options Utilizing Supportive Environments Inc HRS: SM ID#:03552 RENTAL ADDRESS: 4158 Vineyard Avenue, Pleasanton, CA 94566 PHONE: 925/846-7538 DATE: February 20, 2001 FOR VALUE RECEIVED, the undersigned hereby promises to pay to the COUNTY OF ALAMEDA, HOUSING AND COMMUNITY DEVELOPMENT, the principal sum of Forty-Two Thousand Six Hundred Ninety-Five Dollars and 00/100 ($42,695.00) this is a deferred payment loan which will accrue simple interest at a rate of five (5) percent per year for a term of ten(10) years. This note is also due upon the sale, conveyance, assignment, hypothecation, or any other transfer to any party(ies) of any interest of the undersigned in the property described in the Deed of Trust executed this date by the undersigned and the described below or if the property shall cease to be the principal residence of the undersigned, except as may be necessitated from medical reasons. All payments hereunder shall be made in lawful money of the United States of America at the office of Holder at the County of Alameda, Housing and Community Development, 224 W. Winton Avenue, Room 108, Hayward, CA 94544. Any prepayment of this loan shall require payment of the entire amount of unpaid principal plus interest accrued to the nearest date. Any refinancing and/or subordination must be approved in advance by HCD. Cash out from the refinancing is generally not allowed (repayment of unsecured debt from refinancing is considered cash out). HCD generally prohibits transfer of title into a living trust, unless HCD redetermines the trust benefactors meet our program eligibility criteria. Presentment, demand, protest, and notice are hereby expressly waived by the undersigned. Should payment hereof not be made when due, the undersigned further promises to pay all costs of collection, including, without limitation, attorney's fees, incurred by Holder in connection herewith. The Note is secured by a Deed of Trust, and Holder, as beneficiary, reference to which is hereby made for additional terms and conditions affecting this Note. This Note shall be governed and construed in accordance with the laws of the State of California. If the undersigned is more than one, each covenant and obligation contained herein shall be joint and several. VI(-W".�- d l i?1171 /0 '' Housing Options Utilizing Supportive Env* onments Inc. Date The principal on this Promissory Note is hereby reduced to $ 38, 974 . 41 due to unused contingency funds. All other terms and conditions of this Promissory Note and Deed of Trust executed in conjunction with this Promissory Note remain the same. HOLDER A E