GARRETT, ERIC W. - PROMISSORY NOTE TEN YEAR DEFERRED

City of Pleasanton Loan # DPA 2008 -02 NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING RESALES AND ASSUMPTIONS PROMISSORY NOTE Ten -Year Deferred INDIA ' $30,000.00 x February , 2008 –1 Pleasanton, California w. x — �-- 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 (31/4 %). Unpaid interest shall be compounded annually. Interest shall accrue from the date this Note is executed and shall continue to accrue on all unpaid principal until twenty (20) years after this Note is executed. For the first ten (10) years of this Note all interest and principle payments shall be deferred and no principle or interest payments shall be required. Starting in year eleven all deferred interest shall be forgiven and the principle loan amount shall be amortized over the remaining ten years of the loan. Equal monthly payments shall be made over the remaining ten -year period of the Note. All payments shall be credited first to interest and the remainder to principal. 1. Security. This Note is secured by a Deed of Trust dated the same date as this Note (the "Deed of Trust "). 2. Restricted Assumptions. Borrower(s) acknowledge(s) that this Note is given in connection with the purchase of 4213 Sheldon Circle, Pleasanton, CA (the "Residence ") as part of a City of Pleasanton's Down Payment Assistance Program to assist low to moderate income first time home buyers in purchasing homes. Consequently, this Note is not automatically assumable, but is subject to Section 711.5 of the California Civil Code 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. 3. Repayment. The total amount of the principal and accrued interest owed under this Note shall immediately become due and payable (i) in the event of a default by Borrower under this Note, the Deed of Trust, or the Resale Agreement, or (ii) on the date a Transfer is made whether voluntarily, involuntarily, or by operation of law and whether by deed, contract of sale, give, devise, bequest or otherwise. Failure to declare such amounts due shall not constitute a waiver on the part of the City to declare them due in the event of a subsequent Transfer. Within twenty (20) years after this Note is executed, at the Borrower's request, the City shall allow the assumption of the principal and interest due under this Note if the Borrower transfers the Residence to an Eligible Purchaser in a transaction that meets the Eligible Transfer requirements of the Program Guideline. The City will allow the assumption of the principal and interest due under the Note only after the Eligible Purchaser executes a new note, new deed of DPA 2008 -02 -1-