Authorizing the Issuance & Sale $850,000 Economic Development Revenue Bonds Allied Products Corp

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Section 1. Findings; Public Benefits. The Common Council of the City hereby finds and determines that the land, buildings, equipment and facilities in connection therewith (the "Project ") to be acquired, constructed, renovated and equipped with the proceeds of the Economic Development Revenue Bonds herein authorized are "economic development facilities" as that phrase is used in the Act; that acquisition and construction of the Project and the lease of the Series A Project (the first phase of the Project as described in the Lease Agreement) to the Company pursuant to the Lease Agreement will increase employment opportunities and increase diversification of economic development facilities in and near the City, will improve and promote the economic stability, development and welfare of the area in and near the City and will encourage and promote the expansion of industry, trade and commerce in the area in and near the City 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 used in the Act) which will be required by the Series A Project. Section 2. Authorization of Economic Development Revenue Bonds; Additional Bonds. In order to pay a portion of the costs of acquiring, constructing, renovating and equipping the Project, there are hereby authorized to be issued, sold and delivered $850,000 aggregate principal amount of Economic Development Revenue Bonds, Series A (Allied Products Corporation Project) of the City (the "Series A Bonds "). The balance of the costs of the Project (referred to in the Indenture and Lease Agreement as the "Series B Project ") not paid for out of the proceeds of the Series A Bonds will be paid for by the Company unless paid for with the proceeds of additional bonds (the "Series B Bonds ") as provided in Section 2.10 of the Indenture and in the Lease Agreement. Section 3. Terms for the Series A Bonds. The total principal amount of Series A Bonds that may be issued is hereby expressly limited to $850,000; provided that Series B Bonds may be issued upon the terms and conditions and for the purposes provided in the Indenture and in the Lease Agreement. The Series A Bonds shall be designated "Economic Development Revenue Bonds, Series A (Allied Products Corporation Project), shall be represented by one or more Bonds in fully registered form without coupons and shall be lettered and numbered R -1 and upward. The Series A Bonds shall be dated as of the date of issuance thereof and shall bear interest from such date on the principal balance from time to time unpaid at the rate per annum of eight per cent (8%), computed on the basis of a calendar year consisting of twelve 30 -day months. Interest shall be payable quarterly on January 1, April 1, July 1, and October 1 of each year commencing April 1, 1984. Principal of the Series A Bonds shall be payable in quarterly installments on January 1, April 1, July 1 and October 1 of each year commencing on April 1, 1984, in the aggregate amount $14,166.67 on each such date to and including October 1, 1998, with all remaining unpaid principal due and payable on January 1, 1999, the date of final maturity of the Series A Bonds. The Series A Bonds shall bear interest in addition to that hereinabove specified, payable on demand, on overdue principal, premium, if any, and (to the extent permitted by applicable law) on overdue interest at the rate per annum of one percent (1%). -2-