Note Secured BY Deed of Trust

NOTE SECURED BY DEED OF TRUST


(INSTALLMENT-INTEREST INCLUDED)


$935,000 00 Daly City , California, November 26, 1991 - ----------- ---------------------------------- --------------------


In installments as herein stated, for value received, I promise to pay to FOR BENEFICIARY SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF, or order at any place designated by beneficiary the sum of NINE HUNDRED THIRTY FIVE THOUSAND AND NO/100--($935,000.00)-- DOLLARS, with interest from December, 1991, on unpaid principal at the rate of 8.5% per cent per annum; principal and interest payable in installments of EIGHT THOUSAND ONE HUNDRED FOURTEEN AND 21/100--($8,114.21)-------- DOLLARS, or more on the ________ day of each and every month, beginning on the __________ day of January, 1992 and continuing until the day of December, 1996 at which time the entire unpaid principal balance and accrued interest shall be due and payable in full. _________________________________________________XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX


A late charge in an amount equal to 6% of the monthly installment due shall be payable on any installment received more than 10 days after the due dates set forth above. It is hereby agreed and understood by all parties that the within Note shall not be prepaid within the first thirty months of this Note. The within Note may be prepaid at any time after the first thirty months of commencement of the within Note. This Note is subject to Section 2966 of the Civil Code which provides that the holder of this Note shall provide written notice, to the trustors or their successors in interest of prescribed information at least 90 and not more than 150 days before any balloon payment is due.


Each payment shall be credited first on interest then due and the remainder on principal; and interest shall thereupon cease upon the principal so credited. Should default be made in payment of any installment when due the whole sum of principal and interest shall become immediately due at the option of the holder of this note. Principal and interest payable in lawful money of the United States. If action be instituted on this note I promise to pay such sum as the Court may fix as attorney's fees. This note is secured by a DEED OF TRUST to Commonwealth Land Title Company, A California Corporation as Trustee.


FIRST NATIONAL BANK OF DALY CITY
a California Corporation


By: /s/ M. WYMAN - ------------------------------ ------------------------------
M. Wyman


By: /s/ OSCAR OROZCO - ------------------------------ ------------------------------
Oscar Orozco


- -------------------------------------------------------------------------------- Form 3122 (CA) 6-80 DO NOT DESTROY THIS NOTE


Fidelity National Title


INSURANCE COMPANY OF CALIFORNIA 950 Elm Avenue, #360 San Bruno, CA 94066 (415) 873-3080 FAX (415) 588-2702


MODIFICATION AGREEMENT


This agreement, made and entered into this 1st day of September 19 99 ,between BERTHA DONATI, widow, & JULIO DONATI, widower as first party, and FIRST NATIONAL BANK OF DALY CITY, a California Corporation, It's Successors and/or Assigns, as second party.


WITNESSETH THAT:


WHEREAS, First party is the owner and holder of a promissory note secured by a deed of trust recorded on the 5th day of December 19 91, in Book Page of official Records of the County of San Mateo , State of California.


WHEREAS, Second party is the owner or is about to become the owner of the real property described in said deed of trust subject to the Lien thereof, and


WHEREAS, the parties hereto desire to change and modify the terms of said promissory note.


NOW THEREFORE, in consideration of the premises and covenants herein contained it is mutually agreed as follows:


1. The unpaid balance of principal now due upon said promissory note is the sum of $ 353,192.60 with interest thereon at the rate of 4.00 % per annum from July 1. 1996.


2. The balance due upon said promissory note as aforesaid shall be paid in the following manner and the terms of said promissory note changed and modified as follows to wit:


With payment of $53,192.60 made this 1st day of September 1999:


The remaining principal balance of $300,000.00 will be paid in 4 (four) substantially equal annual installments of approximately $82,275.84. Payments will begin January 31, 2000 continuing to January 31, 2003.


The interest rate paid will concurrently increase to 5.00 % per annum, fixed.


3. That in all other respects said note and said deed of trust shall remain unaffected unchanged and unimpaired by reason of the execution of this agreement.


4. That second party agrees to pay said pr ...