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. . " t This Bond represents an authorized series of special obligation Bonds of an aggregate principal amount of $600,000, which have been authorized by law to be issued and have been issued for the purpose of funding a loan from the city to the Borrowers to finance costs of acquiring, constructing and equipping an office-warehouse facility in the city to be owned by the Borrowers and leased to Becker Bros., Inc. (the "Lessee") (the "Project"). This Bond is issued pursuant to a Loan and Purchase Agreement (the "Loan Agreement") by and among the city, the Borrowers and the Bank, dated as of September I, 1981, and a Bond Resolution of the City duly adopted September 22, 1981. Pursuant to an Assignment and Pledge Agreement dated as of September I, 1981 (the "Assignment"), the City has assigned its interest in the Loan Agreement (except its rights under Sections 5.02, 7.01, 8.04 and 8.05 thereof) to the Bank. This Bond is secured by the Loan Agreement, the Assignment, the Bond Resolution and a Combina- tion Mortgage, Security Agreement and Fixture Financing statement (the "Mortgage") dated as of September I, 1981 from the Borrower to the Bank and an Assignment of Rents and Leases (the "Assignment of Rents") dated as of September I, 1981, by the Borrowers to the Bank, to which Loan Agreement, Assignment, Bond Resolution, Mortgage, and Assignment of Rents and amendments thereof reference is hereby made for a description and limitation of the revenues and funds pledged and appropriated to the payment of the Bond, the nature and extent of the security thereby created, the rights of the Holder of the Bond, the rights, duties and immunities of the Bank and the rights, immunities and obligations of the City thereunder. Certified copies of the Bond Resolution and executed counterparts of the Loan Agreement, the Assignment, the Assignment of Rents and the Mortgage are on file at the office of the City Clerk. The Bond shall be SUbject to prepayment on any install- ment payment date, in whole or in part, at the option of the City at the request of the Company, upon payment to the Bank of the principal amount of the Bond to be prepaid plus accrued interest. The Bond shall also be Subject to prepayment in certain events of damage to or destruction or condemnation of the Project facili- ties, as described in the Mortgage. Notwithstanding anything herein to the contrary, if a Determination of Taxability (as defined in the Loan Agreement) shall be made, the Bond shall automatically bear interest on the unpaid balance at the interest rate of fifteen percent (15.00%) per annum, and shall be deemed to have borne interest at such rate from the Date of Taxability (as defined in the Loan Agreement); and the Borrowers shall forthwith pay to the Holder hereof as additional interest the difference between the amount of interest actually paid from the Date of Taxability, and the amount that would have been paid if such increased interest rate had been in effect from the Date of TaXability and thereafter, the Borrowers shall pay such increased installments of principal and interest as are necessary to amortize the then outstanding principal balance and interest thereon at such increased rate of interest for the remaining maturity of this Bond. -2-