Approving Economic Development Bonds - South Bend Forge Inc

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interest and be payable as to principal and interest as set forth in such form of the Series 1980 Bond attached hereto. The Series 1980 Bonds are subject to special mandatory redemption upon a final determination that interest on the Series 1980 Bonds is wholly includable for federal income tax purposes in the gross income of the holders of the Series 1980 Bonds (other than because a holder is a "substantial user" of the Series 1980 Project or a "related person" as those terms are used in Section 103(b)(9) of the Internal Revenue Code of 1954). As used herein, "final determination" shall be deemed to have occurred upon the receipt by the Trustee of a ruling or technical advice by the Internal Revenue Service in which the Company has participated or a written opinion by an attorney or firm of attorneys of recognized standing on the subject of municipal bonds selected by the Trustee, and approved by the Company, which approval shall not be unreasonably withheld. Following a final determination the Series 1980 Bonds shall be redeemed in whole by the Issuer at a redemption price of 100% of the aggregate principal amount outstanding plus accrued interest, at the earliest practicable date selected by the Trustee, after consultation with the Company, but in no event later than 180 days following the Trustee's notification of such final determination. In the event that such redemption is a result of the Company's failure to observe its agreement in Section 3.2 of the First Supplemental Agreement, the redemption price shall be increased by an additional amount equal to 10% of the aggregate principal amount of the Series 1980 Bonds outstanding at the time of such failure. All of the Series 1980 Bonds outstanding on the redemption date selected shall be redeemed by the Issuer on such date, except that Series 1980 Bonds maturing on or prior to such redemption date, but after the aforesaid selection of a redemption date, shall be retired on their maturity date at the same redemption price as if they had been called for redemption on such redemption date, and Series 1980 Bonds for the payment of redemption of