HOUSE, INC. - PROMISSORY NOTE - SECURED BY DEED OF TRUST

FREE RECORDING REQUESTED PURSUANT TO NOTICE TO BORROWER: GOVERNMENT CODE SECTIONS 6103 & 27383 THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING WHEN RECORDED MAIL TO: RESALES AND ASSUMPTIONS City of Pleasanton 123 Main Street Pleasanton, CA 94566 -0802 CITY OF PLEASANTON PROMISSORY NOTE Secured by Deed of Trust $ 195,000,00 Pleasanton, California , 2009 FOR VALUE RECEIVED, the undersigned HOUSE, Inc., (Housing Options Utilizing Supportive Environments), a California Nonprofit Public Benefit Corporation ("Borrower") promises to pay to the City of Pleasanton (the "City" or "Lender ") at 123 Main Street, Pleasanton, California, 94566, or at such other place as the City may from time to time designate in writing, in accordance with the provisions of this Promissory Note (the "Note "), the principal sum of one - hundred ninety -five thousand dollars ($195,000.00), plus the additional sums, in the manner described below: 1.0 One - hundred ninety -five thousand dollars ($195,000.00) of the above principal sum described below shall be paid in the following ways: When the residence is sold, subject to the provisions of the Restrictive Covenants, Resale Restrictions and Option to Designate Eligible Purchasers "Walnut Hills" Subdivision Tract 7271, Lot 97, executed April 23, 2003 and recorded April 25, 2003 in the office records of the Alameda County Recorder No. 2003242541, whichever is larger of the two amounts: 1. The principal sum, plus any future advances as provided in Section 8 of the Regulatory Agreement and Declaration of Covenants and Restrictions dated ; or 2. Eighty percent (80 %), which represents the percentage of the original purchase price which was paid for the Residence in funds allocated by the City, shall be applied to the Net Appreciation of the sale of the Residence and paid to the City in addition to the principal sum. All payments hereunder shall be made in lawful money of the United States of America. All of the money due under the Note shall be due and payable to the City upon the date of "Transfer" of the Residence, as described in Section 2.3 herein. -1-