Issuance & Sale $6,400,000 Economic Development Revenue Bonds One Michiana Square Associates

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The South Bend Economic Development Commission has performed all action .required of it by the Act preliminary to the adoption by the Common Council of this Bond Ordinance, and.has approved and forwarded to this Common Council the forms of (1) Bond Purchase Agreement- (the "Bond Purchase Agreement ") dated as of September 1, 1984 among the Issuer, the Borrower, NBD, as issuer of the Letter of Credit (the "Bank ") and Capital Holding Corporation (the "Purchaser ") providing for the sale of the Bonds by the Issuer to the Purchaser, (2) Indenture of Trust (the "Indenture ") dated as of September 1, 1984, between the Issuer and 1st Source Bank, with principal offices in South Bend, Indiana (the "Trustee "), containing the form of economic development revenue bond, (3) Loan Agreement (the "Loan Agreement ") dated as of September 1, 1984, between the Issuer and the Borrower, containing a form of Note from the Borrower to the Issuer, which shall be endorsed to the Trustee, (4) Mortgage and Security Agreement (the "Mortgage ") dated as of September 1, 1984, from the Borrower to the Trustee, (5) Assignment of Rents and Leases (the "Assignment of Rents and Leases ") dated as of September 1, 1984, from the Borrower to the Trustee, and (6) this Bond Ordinance (all of the documents set forth above hereinafter collectively called "Bond Documents "). NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. Findings; Public Benefits. The Common Council of the Issuer hereby finds and determines that the Project to be acquired, constructed and installed with the proceeds of the Economic Development Revenue Bonds herein authorized are "economic development facilities" as that phase is used in the Act; that acquisition, construction and installing of the Project will increase employment opportunities and increase diversification'-of economic development facilities in and near the Issuer, will improve and promote the economic stability, development and welfare of the area in and near the Issuer and will encourage and promote the expansion of industry, trade and commerce in the area in and near the Issuer and the location of other new industries in such area; and that the public benefits to be accomplished by this Bond Ordinance, in tending to overcome insufficient employment opportunities and insufficient diversification of industry, are greater than the cost of public services (as that phrase is defined in the Act) which will be required by the Project. The issuance of the Bonds identified in Section 2 hereof, comply with the purpose and provisions of Indiana Code 36 -7 -12. Section 2. Authorization of Economic Development Revenue Bonds. In order to pay a portion of the cost of acquiring, constructing and installing the Project, there are hereby authorized to be issued, sold and delivered $6,400,000 aggregate principal amount of Economic Development Revenue Bonds (One Michiana Square Project) of the Issuer (the "Bonds "). Any additional Costs of the Project will be paid for by the Borrower.