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EXHIBIT A <br />CAPITAL IMPROVEMENT PROMISSORY NOTE <br />40 000.00 San Leandro, California <br />July 1, 2008 <br />FOR VALUE RECEIVED, Spectrum Community Services, [an individual, married couple, <br />partnership, corporation] ("Borrower") promises to pay to the City of San Leandro ("City"), in lawful money <br />of the United States of America, the principal sum of Forty Thousand Dollars ($40,000.00) or so much <br />thereof as may be advanced by City pursuant to the Loan Agreement referred to below, together with <br />interest on the outstanding principal balance in accordance with the terms and conditions described herein. <br />1. This Promissory Note ("Note") has been executed and delivered pursuant to and in <br />accordance with the terms and conditions of a Loan Agreement for Capital Improvements ("Loan <br />Agreement") dated as of the date hereof by and between Borrower and City, and is subject to the terms <br />and conditions of the Loan Agreement, which are by this reference incorporated herein and made a part <br />hereof, The Loan Agreement and the Note are hereinafter collectively referred to as the "Loan <br />Documents". Capitalized terms used but not defined herein shall have the meaning ascribed to such <br />terms in the Loan Agreement. <br />1. PAYMENTS <br />1.1 PAYMENT DATES; MATURITY DATE. Provided that Borrower is not in default under the <br />Loan Documents, the City shall forgive one twentieth (1/200 or Two Thousand Dollars ($2,000.00) of the <br />outstanding principal loan balance annually. On the twentieth (20th) anniversary of the Effective Date (as <br />defined in the Loan Agreement), provided that no default or breach by Borrower has occurred under the <br />Loan Documents, the entire outstanding balance of the Loan shall be forgiven. <br />1.2 INTEREST. Interest on the Loan shall accrue at a rate of three percent (3%) simple <br />interest oer annum. <br />2. DEFAULTS <br />2.1 EVENTS OF DEFAULT. The occurrence of any one or more of the following events shall <br />constitute an event of default hereunder ("Event of Default"): <br />a. If Borrower fails to perform any covenant or obligation under this Note or the Loan <br />Agreement. <br />b. If any representation or warranty contained in the Loan Documents or any <br />certificate furnished in connection with the foregoing or in connection with any request for disbursement of <br />Loan Proceeds proves to have been false or misleading in any material adverse respect when made. <br />Fiscal Year 08-09 A-1 <br />