GARRETT, ERIC W. - PROMISSORY NOTE TEN YEAR AMORTIZATION

City of Pleasanton Loan # DPA 2008 -01 NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING RESALES AND ASSUMPTIONS PROMISSORY NOTE Ten -Year Amortization INITJAL: $30,000.00 X S February , 2008 Pleasanton, California FOR VALUE RECEIVED, the undersigned Eric Garrett ( "Borrower ") promise(s) to pay to the City of Pleasanton (the "City "), or order at 123 Main Street, Pleasanton, California 94566, or such other place as the City may designate in writing, the principal sum of $30,000.00 plus interest at the rate of three and one -half percent (31/2 %). This Note will accrue simple interest at a rate of three and one -half percent (3'h %) amortized over ten (10) years. Equal monthly payments shall be made over the ten -year period of the Note. This note is due and payable: upon sale, conveyance, assignment, hypothecation, or any other transfer to any party(ies) of any interest of the Borrower and described below; if the property shall cease to be the principal residence of the Borrower. Payments hereunder will be made in the lawful money of the United States of America at 123 Main Street, Pleasanton, California 94566 ( "Holder "), or any other places as Holder may from time to time designate in writing. Payments are due to the City on the first of each month, starting April 1, 2008, and are considered late on the fifth of each month. A 5% late penalty will be charged to all payments received after the fifth of the month. This Note is secured by a Deed of Trust executed by the borrower in favor of the Holder. This Note shall be governed and construed in accordance with the laws of the State of California. If the undersigned is more than one, each covenant and obligation contained herein shall be joint and several. 1. Security. This Note is secured by a Deed of Trust dated the same date as this Note (the "Deed of Trust ") to secure the property located at 4213 Sheldon Circle, Pleasanton, CA, as part of the City of Pleasanton Down Payment Assistance Program. 2. Restricted Assumptions. Borrower(s) acknowledge(s) that this Note is given in connection with the purchase of property (the "Residence ") as part of the program of the City to assist in the development of homes for low and moderate income persons. Consequently, this Note is not automatically assumable, but is subject to resale restrictions outlined in this Note and which allows the City to accelerate all amounts due under this Note if any subsequent sale or transfer of the Residence of any kind does not comply with the provisions of the Program Guidelines. DPA 2008 -0I -1-