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Prom and after the Conversion Date, the Principal Balance shall be payable on the first Payment Date following the Conversion Date (the "First Maturity Date") and on each Payment Date thereafter to and including December I,' 2015 (the "Final Maturity Date"), in respective amounts which represent a level amortization of said Principal Balance for the number of Payment Dates from the First Maturity Date to the Final Maturity Date, both inclusive, at an assumed interest rate equal to the interest rate borne by this Note on the Conversion Date. On the Final Maturity Date, all unpaid principal of and interest on this Note shall be paid in full. Prom the Date hereof until the Conversion Date, the Principal Balance shall bear interest at the variable rate equal to 75% of the rate in effect from time to time as the reference rate (the "Reference Rate") of First National Bank of Saint Paul, in St. Paul, Minnesota. On and after the Conversion Date, the Pr incipal Balance shall bear interest at that fixed or var iable rate of interest which in the judgment of the Remarketing Agent (as defined in the Remar- keting Agreement), having due regard for then prevailing market conditions, the security for the Note provided pur- suant to the Security Documents, the nature and location of the Project, and the value and relative security of invest- ments comparable to the Note, in equal to but does not exceed that rate of interest which is necessary to remarket the Note at par on the Conversion Date. All interest on the Note shall be determined on the basis of a 360 day year consisting of 12 30-day months, and neither the foregoing change on the Conversion Date of the interest rate borne by this Note nor any change of said interest rate arising pur- suant to a Determination of Taxability shall affect the pr incipal payments hereon determined pursuant to the pre- ceding paragraph hereof. If the interest on this Note should become generally subject to federal income taxation pursuant to a Determina- tion of Taxability, the Lender may, at its option, elect (a) to declare the entire unpaid Principal Balance and all un- paid accrued interest on this Note to be immediately due and payable in full or (b) to adjust the interest rate borne by this Note to a variable rate equal to the Reference Rate, as the same may fluctuate from time to time, plus two percent (2.00%), effective as of the Date of Taxability. This Note is subject to mandatory redemption in whole and not in part, at a redemption pr ice of the Pr.incipal Balance plus accrued interest to the date of such redemp- tion, on the Payment Date which is 10 years after the First Maturity Date, in the sole discretion and at the election of the Lender, upon one hundred eighty (180) days' prior written notice to the City and the Borrower. A - 2