8447-93 Authorizing Economic Development Revenue (P.A.I. Properties $450,000)

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ARTICLE VII Events of Default and Remedies Therefor Section 7. 1. Events of Default. The occurrence and continuance of any of the following events shall constitute an "event of default" hereunder: (a) failure of the Borrower to pay any installment of interest or principal, or any premium, on the Notes within five (5) days of when the same shall become due and payable, whether at maturity, or any installment payment date, or upon any date fixed for prepayment or by acceleration or otherwise (provided that failure to pay any additional interest or other amounts accrued on the Series 1993 Note as described in Section 5. 3 (a) hereof shall not constitute an event of default until 60 days after the Borrower has received notice of the Event of Taxability) ; or (b) failure of the Borrower to perform any other covenant, condition or provision hereof and to remedy such default within 30 days after notice thereof from the Trustee to the Borrower, unless the nature of the default is such that it cannot be remedied within the 30-day period, the Borrower institutes corrective action within the 30-day period, and the Borrower diligently pursues such action until the default is remedied; or (c) if any representation or warranty made by the Borrower in any statement or certificate furnished to the Issuer or the Trustee or the purchaser of any Bonds in connection with the sale of any Bonds or furnished by the Borrower pursuant hereto proves untrue in any material respect as of the date of the issuance or making thereof and shall not be made good within 60 days after notice thereof to the Borrower by the Trustee; or (d) any judgment, writ or warrant of attachment or of any similar process in any amount in excess of $50, 000 shall be entered or filed against the Borrower or against any of its property and remains unvacated, unpaid, unbonded, unstayed, uncontested or unappealed in good faith for a period of 60 days after notice thereof to the Borrower; or (e) if the Borrower or either Noel. H. Yarger or G. Toms Yarger admits insolvency or bankruptcy or inability to pay debts as they mature, or makes an assignment for the benefit of creditors or applies for or consents to the appointment of a trustee or receiver for the Borrower, or for the major part of their property; or (f) if a trustee or receiver is appointed for the Borrower or for the major part of its property and is not discharged within 10 days after such appointment; or -35-