Authorizing the Insurance & Sale of $20,000,000.00 Economic Development Revenue Bonds Pertaining to Mill Race

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Bond. The Bonds are not subject to mandatory tender or redemption prior to December 15, 1988, except upon the failure of the Investment Agent to make payments under the Investment Agreement. The Bonds are subject to mandatory redemption in whole on the Adjustment Date, at par plus accrued interest, if the Credit Facility has not been delivered to the Trustee fifteen (15) days prior to the Adjustment Date. In addition, after the Adjustment Date, the Bonds are subject to redemption (i) in whole, at par plus accrued interest to the date of redemption, on the first day for which notice of redemption can be given after an Event of Default under the Indenture or the Loan Agreement and the Trustee has accelerated amounts due under the Loan Agreement; (ii) in whole, at par plus accrued interest to the date of redemption, on the first day for which notice of redemption can be given after the occurrence of certain events involving the enforcement or validity of the Credit Facility and the Company has not supplied an Alternate Credit Facility; (iii) in whole, at par plus accrued interest to the date of redemption, on a day not more than fifteen (15) days after the Trustee has received notice from the Financial Institution of a default under the Credit Facility Agreement; (iv) in whole, at par plus accrued interest to the date of redemp- tion, on the first day for which notice can be given after the Trustee has received notice of a Determination of Taxability; (v) in whole or in part, on the first day for which notice can be given on which prepayments are made on the Project Loan from moneys remaining on deposit in the Construction Fund on or after December 15, 1988, or from Net Proceeds of insurance or condemnation; (vi) in whole or in part, at par plus accrued interest to the date of redemption on any Interest Payment on or after the seventh anniversary of the Conversion Date, in the event and to the extent the Project Loan is voluntarily prepaid, with a redemption premium. The Series 1985 Bond shall be executed, shall be in such form, shall have such additional redemption provisions, and shall be subject to such other terms and conditions as set forth in the Indenture. The Series 1985 Bond and the interest thereon do not and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the City, but are limited obligations of the City payable solely from revenue and other amounts derived from the Loan Agreement and shall be secured as provided in the Indenture. Forms of the Loan Agreement and Indenture are before this meeting and are by this reference incorporated in this Bond Ordinance, and the Clerk is hereby directed to insert them into the minutes of the Elkhart City Council and to keep them on file. The Bond shall contain 5 MRORD IIIIIIIIIF--- 1, 1