Agmt 2007 White House Events LLC

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THE CITY OF SAN LEANDRO REDEVELOPMENT AGENCY PROMISSORY NOTE SECURED BY DEED OF TRUST $50,000.00 Dated: tvla rLWl I Z, 'lO 07 1. For value received, the undersigned, White House Events, LLC, ("Borrower") a California limited liability company, promises to pay to the order of THE CITY OF SAN LEANDRO REDEVELOPMENT AGENCY, (the "Agency") a public agency organized and existing under the laws of the State of California ("Lender"), at 835 East 14th Street, San Leandro, California 94577, or at any other place that may be designated in writing by Lender, the principal sum of FIFTY THOUSAND DOLLARS ($50,000.00). This Note is made to assure Borrower's performance of the Owner Participation Agreement between Borrower and Lender (the "Agreement"), incorporated herein by this reference, and to provide security for the Lender as to such performance. All sums due are payable in lawful money of the United States of America. Notwithstanding any other provision herein, this Note shall be fully due and payable, principal and all interest and other charges, if any, on or before ten (10) years from the date of this Note. 2. This Note is secured by the Deed of Trust and Assignment of Rents ("Deed of Trust") of the same date as this Note, executed by Borrower, as trustor, in favor of Lender, as beneficiary ("Deed of Trust"), and encumbering the real property described in the Deed of Trust ("Property"). The holder of this Note will be entitled to the benefits of the security provided by the Deed of Trust and will have the right to enforce the covenants and agreements of Borrower contained in the Deed of Trust. 3. Pursuant to the Agreement, the Lender shall disburse the proceeds of the Agency Loan upon receipt of written request from Borrower as set forth in the Agreement. Ten (10) years following the execution of these agreements, if the property is maintained to all standards of the City of San Leandro and the terms of the Agreement fulfilled, Lender shall reconvey the Deed of Trust to the Borrower. 4. Upon payment or satisfaction in full, the Lender shall cancel and return this Promissory Note to the Borrower. 5. From and after the Maturity Date, or an earlier date on which all sums owing under this Note become due by acceleration or otherwise, all sums owing under this Note will bear interest until paid in full at a rate equal to three (3%) percent per annum. 6. Borrower will have the right to pay, without penalty or premium, all or any portion of the outstanding principal amount of this Note prior to the Maturity Date; provided however that any such prepayment shall not affect Borrower's obligations to maintain the Property under the Agreement. 7. Borrower will pay to Lender all sums owing under this Note without deduction, offset, or counterclaim of any kind. The relationship of Borrower and Lender under this Note is solely that of borrower and lender, and the loan evidenced by this Note and secured by the Deed of Trust will in no manner make Lender the partner or joint venturer of Borrower. 947681v1