GROUND LEASE - RIDGE VIEW COMMONS II

principal. The Regulatory Agreement shall remain in full force for the entire term thereof regardless of any prepayment of this Note. 1.8 MANNER OF PAYMENT. All payments of principal and interest on this Note shall be made to City at P.O. Box 520, 123 Main Street, Pleasanton, CA 94566 or such other place as City shall designate to Borrower in writing, or by wire transfer of immediately available funds to an account designated by City in writing. 2. DEFAULTS AND REMEDIES. 2.1 EVENTS OF DEFAULT. The occurrence of any one or more of the following events shall constitute an event of default hereunder ("Event of Default"): (a) Borrower fails to pay when due the principal and interest payable hereunder and such failure continues for ten (10) days after the due date for such payment. (b) Pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state law relating to insolvency or relief of debtors ("Bankruptcy Law"), Borrower or any general partner thereof (i) commences a voluntary case or proceeding; (ii) consents to the entry of an order for relief against Borrower or any general partner thereof in an involuntary case; (iii) consents to the appointment of a trustee, receiver, assignee, liquidator or similar official for Borrower or any general partner thereof, (iv) makes an assignment for the benefit of its creditors; or (v) admits in writing its inability to pay its debts as they become due. (c) A court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against Borrower or any general partner thereof in an involuntary case, (ii) appoints a trustee, receiver, assignee, liquidator or similar official for Borrower, or any general partner thereof, or substantially all of such entity's assets, (iii) orders the liquidation of Borrower or any general partner thereof, or (iv) issues or levies a judgment, writ, warrant of attachment or similar process against the Property or the Project, and in each case the order or decree is not released, vacated, dismissed or fully bonded within sixty (60) days after its issuance. (d) Borrower shall have voluntarily suspended its business or Borrower shall have been dissolved or terminated. (e) The occurrence of a Transfer in violation of the Ground Lease or the Regulatory Agreement. (f) The holder of any debt instrument secured by a mortgage or deed of trust on the Project or Borrower's leasehold interest in the Property declares a default and such default remains uncured beyond any applicable cure period such that the holder of such instrument has the right to accelerate payment thereunder. (g) Borrower fails to maintain insurance on the Property and the Project as required pursuant to the City Documents and Borrower fails to cure such default within five (5) days. D-1 4859-3312-3005v5