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

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Section 3. Terms for the Bonds. The total principal amount of Bonds that may be issued is hereby expressly'-limited to $6,400,'000. The Bonds (a) shall be issued in fully registered form (without coupons) in any denomination, (b) shall be le-tered and numbered R -1. and upward, (c) shall be executed by the off_cial manual signatures of the Mayor and the Clerk of the Issuer, and the corporate seal shall be impressed 'or printed thereon, (d) shall be dated as of the date of issue and delivery, and (e) shall have a final maturity of October 1, 2009 (a term of approximately 25 years). The Bonds shall be due and payable as follows: Commencing on the first day of the month following the date the Bonds and on the first day of each month thereafter to and including October 1, 2009, an installment ec::a: to interest only at the Adjusted Rate (as hereinafter defined) shall be payable, subject to the following: (a) except as provided in paragraph (c) below, the amount of such monthly installment shall not exceed an amount equal to 1/12 times 12.25% times the outstanding principal amount of the Bond (the "Maximum Monthly Installment "); (b) if the Maximum Monthly Installment is insufficient to pay the interest accrued at the Adjusted Rate, then the difference between the amount of the Maximum Monthly Install- ment and the interest accrued shall constitute deferred interest and shall bear interest, to the extent legally enforceable, for each day until paid at the Adjusted Rate; such deferred interest shall be added to the amount of interest payable on the next monthly payment date; and the monthly installment payable on such date shall be applied first to deferred interest and the interest thereon, and if sufficient to pay such deferred interest and the interest thereon, then the balance shall be applied to accrued interest. The Borrower shall not be deemed to be in default solely by reason of the deficiency between the payment of each monthly installment and the actual amount of interest accrued on such date at the Adjusted Rate; (c) if the sum of the outstanding principal amount of the Bonds plus the total amount of deferred interest and interest thereon, shall at any time exceed 110% of the original principal amount of the Bonds, then, beginning on the next monthly payment date, the Maximum Monthly Installment shall be increased to an amount equal to 1 /12th of the product of (a) the Adjusted Rate, multiplied by (b) the sum of (i) the deferred interest and interest thereon, plus (ii) the outstanding principal amount of the Bonds (except that, on the first monthly payment date on which such