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CAPITAL IMPROVEMENT LOAN AGREEMENT <br />THE CITY OF SAN LEANDRO AND <br />CORNERSTONE COMMUNITY DEVELOPMENT CORPORATION <br />This Loan Agreement for Capital Improvements (this "Agreement") is entered into by the City of San <br />Leandro ("City"), a municipal corporation, and Cornerstone Community Development Corporation <br />("Participant") and is dated this day of July 1, 2008 ("Effective Date"). City and Participant are hereinafter <br />collectively referred to as the "Parties." <br />RECITALS <br />A. City is the recipient of Community Development Block Grant ("CDBG")funds. <br />B. Participant owns that certain real property located at 2047 West Avenue 133rd, San <br />Leandro, California, legally described in Exhibit A (the "Property"). <br />C. Participant desires to perform the following capital improvements as described under the <br />Scope of Work in Exhibit C or related to the Property and seeks City's assistance to accomplish this goal (the <br />"Improvements"). <br />D. City desires to provide CDBG loans to qualified local nonprofit organizations in order to assist <br />such organizations with capital improvement projects. <br />E. City has determined that Participant is a qualified local nonprofit organization and is eligible <br />to receive a loan of CDBG funds in order to construct the Improvements (the "Project Loan"). <br />F. Concurrently herewith, Participant shall execute a promissory note (the "Note") and a deed <br />of trust (the "Deed of Trust"). This Agreement, the Note and the Deed of Trust are collectively referred to as <br />the "Loan Documents." <br />NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is <br />hereby acknowledged, the Parties hereby agree as follows: <br />ARTICLE I <br />LOAN TERMS; U5E AND DISBURSEMENT OF PROCEEDS <br />1.1 LOAN. City agrees to loan to Participant, and Participant agrees to borrow from City a <br />sum of up to Fifty Thousand Dollars ($50,000.00) (the "Loan") upon the terms and conditions and for the <br />purposes set forth in this Agreement for construction of the Improvements which are approved by the City. <br />The Loan shall be evidenced by the Note which shall be dated as of the Effective Date and executed by <br />Participant substantially in the form attached hereto as Exhibit B. <br />Fiscal Year 08-09 1 <br />