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

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The obligations of the Borrower to pay such additional amounts due to an Event of Taxability shall survive termination of the Loan Agreement, payment of the Series 1993 Bonds, redemption of the Series 1993 Bond, any purchase of the Series 1993 Bonds by or on behalf of the Borrower, and payment of all other amounts owing on this Series 1993 Note. After the occurrence of an Event of Taxability and until payment in full of this Series 1993 Note, interest will accrue and be payable on this Series 1993 Note at the Taxable Rate. The Taxable Rate is four percent (4%) per annum in excess of the Prime Rate adjusted quarterly on the first business day of each calendar quarter. Payments of both principal and interest are to be endorsed to the Trustee, and are to be made directly to the Trustee for the account of the Issuer pursuant to such endorsement. Such endorsement is to be made as security for the payment of the bonds of the designated "City of South Bend Economic Development Revenue Bond (P.A.I. Properties, an Indiana Partnership Project, Series 1993) " issued pursuant to the Indenture (the "Series 1993 Bonds") . This Note is issued pursuant to the Loan Agreement and is entitled to the benefits, and is subject to the conditions thereof. To the extent permitted by law, the obligations of Borrower to make the payments required hereunder shall be absolute and unconditional without any defenses or right of setoff, counterclaim or recoupment by reason of any default by Issuer under the Loan Agreement or under any other agreement between Borrower and Issuer or out of any indebtedness or liability at any time owing to the Borrower by the Issuer or for any other reason. The Borrower promises to pay interest on any overdue principal and premium and, to the extent permitted by law, on any overdue interest, at the rate or rates of interest on the Bonds. Such principal, premium, if any, and interest are payable at the offices of the Trustee, or at the offices of any successor trustee under the Indenture. This Note is issued under and secured by the Loan Agreement. As provided in the Loan Agreement, Additional Notes may be issued and delivered by the Borrower to the Issuer or the purchaser or purchasers of the Additional Notes, with the consent of the Issuer, to refund outstanding Notes, or to finance the cost of construction or acquiring improvements for the Borrower as defined in the Loan Agreement and such Notes, if issued, together with this Note, shall be equally and ratably secured by the lien of the Loan Agreement. Furthermore, this Note ranks on a parity with the Borrower's Series 1986 Note, dated December 15, 1986, in original principal amount of $722, 000. Reference is hereby made to the Loan Agreement for a description of the property thereby mortgaged, the nature and extent of the security for such Notes and the rights of the holder thereof, the Borrower and the Issuer in respect thereof, and the -50-