HopeWorks Station Residential 5/7/2018

PROMISSORY NOTE $500,537 Everett, Washington 1. Promise to Pay. In consideration for the financial assistance provided by City of Everett ("Holder") pursuant to the HOME Loan Agreement entered into between Maker and Holder on the 7 day of /14 A Y , 2018 ("Loan Agreement"), Housing Hope Properties, a Washington non-profit corporation, ("Maker"), hereby promises to pay to the order of Holder, at such place as Holder may designate in writing, in lawful money of the United States of America, the principal sum of Five Hundred Thousand Five Hundred Thirty-Seven Dollars ($500,537), on the terms and conditions set forth herein and in the Loan Agreement (the "Loan"). 2. Term. The Note shall be due on December 31, 2059. 3. Payment of Principal and Interest. The principal and interest shall be deferred and shall become due under this Note upon completion of the term of the Loan Agreement. 4. Interest. Three percent (3.0%) simple interest shall accrue on the unpaid principal balance, unless penalty interest is imposed pursuant to Section 6 of this Promissory Note. 5. Prepayment. Maker shall have the right to prepay this Note in full or in part at any time and from time to time without payment of a prepayment fee or penalty. 6. Default. This Note shall be in default (a) if payment is not made when due, and such default shall continue for a period of ten (10) days after any written notice to the Maker from Holder hereof specifying such default and requiring the same to be remedied; or (b) if Maker fails to fully comply with any covenants, terms, or provisions of the Loan Agreement or any instruments relating to or securing this Note executed by Maker ("Loan Documents"), and such default continues after notice to Maker and the expiration of any period granted to Maker for curing such default as set forth below. Upon such a default the whole sum of principal hereunder shall become immediately due and payable according to the terms herein. As long as this Note is in default, then, at the option of the Holder, without prior notice, this Note shall bear interest at the rate of ten percent (10%) per annum. A. Curing of Monetary Default. If a monetary event of default occurs under the terms of any of the Loan Documents, before exercising any remedies thereunder, Holder shall give Maker written notice of such default. Maker shall have a period of ten (10) days after such notice is given within which to cure the default before exercise of remedies by Holder under the Loan Documents, or such longer period of time as may be specified in the Loan Documents. A default in payment of any amount due hereunder may be cured only by payment in full of such amount plus the interest accrued from the date of default, as stated above, on the unpaid