HOUSE - PROMISSORY NOTE - SECURED BY SECOND DEED OF TRUST

FREE RECORDING REQUESTER PURSUANT TO GOVERNMENT CODE SECTIONS 6103 & 27383 NOTICE TO BORROWER: THIS DOCUMENT CONTAINS WHEN RECORDED MAIL TO: PROVISIONS RESTRICTING RESALES AND ASSUMPTIONS City of Pleasanton City Hall P.O. Box 520 Pleasanton, CA 94566 CITY OF PLEASANTON PROMISSORY NOTE Secured by Second Deed of Trust 201 440 Pleasanton, California January 17, 1997 FOR VALUE RECEIVED, the undersigned Housing Options Utilizing Supportive Environments (HOUSE, Inc. ), a California Nonprofit Public Bene t 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 oftwo-hundred and one thousand four hundred forty dollars ( 201 440 ,plus the additional sums, in the manner described below: 1.0 Two-hundred and one thousand four hundred forty dollars 201 440 of the above principal sum described below shall be paid in the following ways: When the residence is sold, whichever is larger of the two amounts: 1. The principal sum, plus any future advances as stated in Section 24 of the Deed of Trust; or 2. Ninety percent (90%), the percentage of the original purchase price which was paid for in funds allocated by the City, shall be applied to the net appreciation of the sale 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. 2.0 Definitions. The terms in this Note set forth in this section shall have the following meanings: 2.1 Closing Costs. "Closing Costs" shall mean the actual and reasonable costs to Borrower, including real estate transfer taxes, title insurance, and escrow costs incurred by City and by reason of the purchase or sale of the Residence by Borrower.