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THE REDEVELOPMENT AGENCY OF THE CITY OF REDWOOD CITY SILENT LOAN PROGRAM PROMISSORY NOTE $100,000 Redwood City, California March 27, 2002 The undersigned, Lauren Park ("Borrowers") promises to pay to The Redevelopment Agency of the City of Redwood City ("Lender/Agency"), or order, at Redwood City, California, the principal sum of One Hundred Thousand Dollars ($100.000). Except as hereinafter provided, no interest shall accrue upon the principal until the fifth (5th) anniversary of the date of this Note, Thereafter, interest shall accrue at the rate of four percent (4%) per annum upon the unpaid principal, and interest and principal shall be payable in three hundred (300) equal monthly installments of $527.83 commencing sixty-one (61) months from the date of this Note, Commencing the anniversary date o f the sixth year, in the event that any installment of interest or principal is not made when due, and such default continued for a period of fifteen (15) days thereafter, Borrower promises to pay a late charge equal to 5% of the delinquent payment. If default shall be made in the payment of any installment when due and said default shall continue for a period of fifteen (15) days thereafter, at the option of the holder of this Note, the entire remaining balance of the principal and accrued interest shall become immediately due and payable. In the event that default shall be made in the payment of this Note when due, and proceedings shall be commenced to foreclose under the terms of the deed of tru F this Note, Borrower promises to pay to the holder of this Note a reasonable attorney's fee itccu . di 'i c dl sure proceedings. This Note may be prepaid at an i ± n This Note is made subject to that certain Shared Appreciation Loan Agreement between Borrower and Lender/Agency of even date ("Loan Agreement"). The Loan Agreement provides, among other things, that the following shall constitute Disqualifying Events: (a) Lease of the Dwelling for a period of more than two months in any one calendar year. (b) Sale, conveyance, or other alienation of the Dwelling (including a sale under a deed of trust in the event of foreclosure), if the remaining ownership interest of Borrower in the Dwelling is less than fifty percent (50%). (c) Borrower ceases to reside in the Dwelling as his or her Principal Residence, as said term is defined in the loan agreement. (d) A default shall occur under the terms of the Senior Deed of Trust and said default shall not be cured within sixty (60) days following the recordation of notice of default by the trustee under the Senior Deed of Trust. Upon the first day of the calendar month following a Disqualifying Event, notwithstanding anything to the contrary contained in this Note or the Junior Deed of Trust, the following shall occur. Redwood City First Time Homebuyer Silent Loan Program Promissory Note June 1, 2001 Page I