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

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Principal and interest and premium, if any, shall be payable at the principal office of the Trustee in South Bend, Indiana. The Series A Bonds shall be executed, shall be in such form, shall have such redemption provisions, shall bear interest at such other rates and shall be subject to such other terms and conditions as set forth in the Indenture. The Series A Bonds 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 revenues and other amounts derived from the leasing or sale of the Series A Project under the Lease Agreement (except to the extent paid out of moneys attributable to the proceeds of the Series A Bonds or the income from the temporary investment thereof) and shall be secured as provided in the Indenture. Pursuant to IC 36- 7- 12 -25, two complete forms of the Lease Agreement and Indenture are before this meeting and are by this reference incorporated in this Bond Ordinance, and the City Clerk is hereby directed to insert them into the minutes of the Common Council and to keep them on file. Section 4. Sale of the Series A Bonds. The Mayor and City Clerk of the City are hereby authorized and directed to sell the Series A Bonds to or upon the order of the purchaser thereof, namely C. J. Wood, Inc., of South Bend, Indiana, at a price of $850,000, plus accrued interest (if any) to the date of delivery and payment. Receipt by the Trustee of payment for the Series A Bonds shall constitute payment to the City of the purchase price for the Series A Bonds. Section 5. Indenture. In order to secure the payment of the principal of and premium (if any) and interest on the Series A Bonds, the Mayor and City Clerk of the City shall execute, acknowledge and deliver, in the name and on behalf of the City, the Indenture in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section 6. Lease Agreement. In order to provide for the leasing of the Series A Project and the payment by the Company of rentals in an amount sufficient to pay the principal of and premium, if any, and interest on the Series A Bonds, the Mayor and City Clerk shall execute, acknowledge and deliver in the name and on behalf of the City a Lease Agreement in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section 7. Election Pursuant to Internal Revenue Code. The City hereby elects to have the provisions of Section 103(b) (6)(D) of the Internal Revenue Code of 1954, as amended, apply to the Series A Bonds, and the Mayor and City Clerk shall execute such certificate and take such action as is required to evidence such election. Section 8. No- Arbitrage. The proceeds of issuance and delivery of the Series A Bonds shall be deposited in the Series A Bond Fund and the Series A Construction Fund as provided in Article VI of the Indenture and used for the purposes for which said Bonds are authorized. The principal proceeds of the Series A Bonds hereby authorized shall be devoted to and used with due diligence for the acquisition and construction of the Project. The Mayor and City Clerk are hereby authorized and directed to execute such -3-