RIDGE VIEW COMMONS - CONSTRUCTION LOAN

PROMISSORY NOTE SECURED BY DEED OF TRUST $10,360,000.00 Pleasanton, California June 27, 1988 FOR VALUE RECEIVED, the undersigned Maker promises to pay to the order of the CITY OF PLEASANTON, a municipal corporation, (hereinafter called "Holder "), at 123 Main Street, Pleasanton, California 94566, or at such other place as the Holder may from time to time designate in writing, the principal sum of TEN MILLION THREE HUNDRED SIXTY THOUSAND AND NO /100th DOLLARS ($10,360,000.00) together with interest at the rate of eight percent (8.0 %) per annum on so much thereof as shall have been from time to time disbursed until paid in full. Holder shall bill Maker, and Maker shall pay interest on the outstanding principal balance monthly for each calendar month that this Note remains unpaid. Interest payments shall be due and payable in consecutive monthly installments commencing on the first day of the month following the initial disbursement hereunder, and on the first day of each succeeding month until the total principal sum due herein is paid. Principal and interest shall be paid in lawful money of the United States of America. This Note shall mature and the principal balance hereof, together with all unpaid interest and other charges, costs and expenses provided for hereunder or under any Loan Document, shall be due and payable on January 1, 1990. Maker shall have the right to extend the original eighteen (18) month term of this Note for one (1) six -month period, provided that Holder receives from Maker a thirty (30) day written notice of request to do so prior to the then maturity date of this Note, and, provided further, that Maker is not in default at the time of such written notice. Maker shall have the right to make prepayments of principal at any time in whole or in part without penalty, provided Holder receives at least fourteen (14) days' written notice prior to any such prepayment and, provided further, that prepayment shall not be permitted on any Friday. This Note is the Note referred to in that certain Building Loan Agreement executed of even date herewith between Maker and Holder. The advances on the Loan evidenced by this Note are to be used exclusively for the purposes set forth in the Building Loan Agreement. This Note is secured by a Deed of Trust of even date herewith executed by Maker on that certain real property located in the City of Pleasanton, County of Alameda, State of California (referred to herein as the "Property ") to Santa Clara Land Title Company, a California corporation, as Trustee, which Property is more particularly described in said Deed of Trust. This Note is further secured by an Assignment of Rents and Lessor's Interest in Leases of even date herewith executed by Maker, by the Security Agreement of even date herewith also relating to said Property and other agreements and guarantees of even dated herewith all providing certain other collateral as security.