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MODIFIED NOTE - FULTON AVENUE PROPERTY MODIFIED NOTE $ 200.000.00 Clearwater, Florida September~D , 2004 Property Address: 1602.1604.1606.1608. and 1620 Fulton Avenue. Clearwater. Florida 33755 (the "Property) 1. BORROWER'S PROMISE TO PAY For value received, the undersigned promises to pay the sum of Two-Hundred Thousand Dollars ($200,000.00) in U.S. dollars (this amount is called "principal") to the order of the Lender. The Lender is the City of Clearwater, organized and existing under the laws of the State of Florida and located at 112 S. Osceola Avenue, Clearwater, Florida 33756. The Lender or anyone who takes this Note by transfer and who is entitled to receive the value as evidenced by this Note is called the "Note Holder". 2. INTEREST There will be no interest charged during the life of this loan. 3. PAYMENTS The payments on this loan shall be deferred during the fIrst fIve (5) years of the loan provided that the borrower does not default. At the end of fIve (5) years and on the fIrst day of the fIrst month of the sixth (6th) year following closing, the Borrower will begin to make an annual payment of Eight-Thousand Dollars ($8,000.00), and each subsequent payment will be due on each anniversary of said date for twenty-four (24) succeeding years or until otherwise fully paid. The indebtedness evidenced by this Note shall be in a second position and have priority to any other fmancial obligations that may hereafter be imposed and shall be subordinate to this indebtedness evidenced by this Note which is secured by a mortgage on the Property. 4. BORROWER'S RIGHT TO PREPAY The undersigned has the right to prepay the balance due on this Note according to the amount owed as listed below. A payment of principal only is known as a "prepayment". When a prepayment is made, the undersigned must notify the Note Holder, in writing, that they are doing so. Full prepayment or partial prepayments may be made without paying any prepayment charge. The Note Holder will use all prepayments to reduce the amount of principal that is owed under this Note. If a partial prepayment is made, there will be no change in the Due Date, unless the Note Holder agrees, in writing, to this change. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is fInally interpreted so that the interest or other loan charges collected in connection with this loan exceed the permitted limit, then any sum already collected which exceeded permitted limits shall be credited as a payment of principal, unless the undersigned shall notify the Note Holder, in writing, that the undersigned elects to have such excess sum returned to it forthwith. 6. BORROWER'S FAll.,URE TO PAY AS REQUIRED (A) Default The note shall come due and payable if the borrower should sell the property during the fIrst three years without the concurrence of the Lender. Revised - 9/2004 6/2004 -Revised CSF/Fulton NOTE (B) No Waiver By Note Holder The remedies of the Note Holder, as provided herein, or in the Security Instrument shall be cumulative and concurrent and may be pursued regularly, successively or together, at the sole discretion of the Note Holder, and may be exercised as often as occasion therefore shall arise. No act of omission or commission of the Note Holder, including specifically any failure to exercise any right, remedy or recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be effected only through a written document executed by the Note Holder, and then only to the extent specifically recited therein. A waiver or release with reference to anyone event shall not be construed as continuing as a waiver or release of any subsequent right, remedy or recourse as to a subsequent event. Even if, at a time when the undersigned is in default, the Note Holder does not require immediate payment in full, as described above, the Note Holder will still have the right to do so if a default occurs at a later time. (C) Payment of Note Holder's Costs and Expenses In the event the Note is collected by law or through an attorney at law, or under advice therefrom, the Note Holder will have the right to be paid back for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorney's fees, which are defmed to include, without limitation, all fees incurred in all matters of collection and enforcement, construction and interpretations, before, during and after trial, proceedings and appeals, as well as appearances in reorganization or similar proceedings, and the cost of paraprofessional personnel working under supervision of an attorney. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given under this Note will be given by delivering it or by mailing it by first class mail to the undersigned at the Property address noted above. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder, at the address stated in Section I or at a different address if you are given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that anyone of us may be required to pay all of the amounts owned under this Note. Should the Borrower sell the property prior to the affordability period end as described in the recorded Land Use Restriction Agreement (twenty (20) years), first priority for sale will be given to non-profit corporations in good standing with the State of Florida and who specialize in affordable housing, for purchase at the current market value for continued occupancy by eligible persons. 9. WAIVERS All persons now or at any time liable, whether primarily or secondarily, for the payment of the indebtedness hereby evidenced, for themselves, their heirs, legal representatives, successors and assigns respectively, hereby (a) expressly waive the rights of presentment, demand for payment, notice of dishonor, protest, notice of nonpayment or protest, and diligence in collection. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give Notice to other persons that amounts due have not been paid. (b) consent that the time of all payments or any part thereof may be extended, rearranged, renewed or postponed by the Note Holder hereof and further consent that the collateral security or any part thereof may be released, exchanged, added to or substituted for by the Holder hereof, without in anyway modifying, altering, releasing, affecting or limiting their respective liability or the lien of any security instrument; (c) agreed that the Note Holder, in order to enforce payment of this Note, shall not be required first to institute any suit or to exhaust any of its remedies against the undersigned or any other person or party to become liable hereunder. This Note and the instruments securing it have Revised - 9/2004 2 . !" 6/2004 -Revised CSFlFulton NOTE been executed and delivered in, and their terms and provisions are to be governed and construed by the laws of the State of Florida. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this note, a Mortgage (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if the undersigned does not keep the promises which are made in this Note. The Security Instrument described how and under what conditions the undersigned may be required to make immediate payment in full of all amounts owed under this Note. The Note Holder may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by the Note Holder if exercise is prohibited by federal law as of the date of this Instrument. If the Note Holder exercises this option, the Note Holder shall give the Borrower and prior written notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which the Borrower must pay all sums secured by this Subordinate Security Instrument. If the Borrower fails to pay these sums prior to expiration of this period, the Note Holder may invoke any remedies permitted by this Security Instrument without further notice or demand on the Borrower. 11. If more than one party shall execute this Note, the term "undersigned", as used herein, shall mean all parties signing this Note and each of them, who shall be jointly and severally obligated hereunder. In this Note, whenever the context so requires, the neuter gender includes the feminine and/or masculine, as the case may be, and the singular number includes the plural. 12. COPY RECEIVED Borrower hereby acknowledges' receipt of a copy of this instrument. Notice to Borrower Do not sign this Note if it contains blank spaces. All spaces should be completed before you sign. IN WIlNESS WHEREOF, the undersigned have executed thi Note on the day and year fIrst above mentioned. le~ /(e4J,,/jJ!.l; _ {j~ /l/e~/del1f"'~&M/lJI////7 5~n.l'u Borrower (seal) (seal) Borrower '.. Revised - 9/2004 3