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<br />the security hereinafter described, The liability of the Ci ty hereunder IS further
<br />restricted in aU respects as set forth in Section 474,10 of the Act.
<br />
<br />This Note is issued and sold pursuant to 11 resolution of the City adopted by
<br />its City Council on March 25, 1980 (the "Note Resolution") in order to pz'ovide
<br />funds to be loaned to Irvin p, Moen and Judith F, Moen, husband and wife, (the
<br />"Borrowers") pursuant to a Loan Agreement dated as of
<br />, 1980 (the "Loan Agreement!!) bctween---tti-e-CTfY--/Jild"the'
<br />BorrowerS-for the-purpose of. financing the acquisition, construction und equipping
<br />of an office warehouse building and related facilities, to!{cther with appurtenunt
<br />site improvements (the "Project"), all located on r'eal property situated in Hamsey
<br />County, Minnesota (the "Premises"), Under the Loan A!{reement, the BOl'l'owcr's
<br />have agreed to construct and equip the Project and 11llve agreed to make certain
<br />loan repayments in amounts and at times sllffici0nt to pay the principal of,
<br />premium, if any, and interest on this Note whcn due. PUrsuant to an Assigllment
<br />and Pledge of Loan Agreement dated as of , 1980
<br />executed by the City in favor of the Holder (thc'-"PleeJgc'-'>-:-the-CITy-hns pledged
<br />and as.signed its interest in the Loan Agreement (except its rights under Sections
<br />4,02, 6,01, 7,04 and 7,05 thereof) to the registered owner hereof. This Note is
<br />further secured by (i) a Mortgage and Security Agreement and Fixture Financing
<br />Statement dated as of . . ...' 1980 (the !!l\1ol'tgage") by which
<br />the Borrowers have grantedTo-~ffle~H61aer-a first mortgalSe lien on and security
<br />interest in the Project and the Pr'emiscs, (jj) Hn Assignment of Lease dated as of
<br />, 1980 (the" Assignment") by which the Borrowers
<br />have ass-ign-edto tli-e-Holderthclr interests in all rents and leases of the Project Hnd
<br />the Premises; and (iii) a Guaranty to be executed by Chemical Technology, Inc. to
<br />Investors Syndicate of America, Inc" a Delaware corporation ("Guaranty").
<br />Advances of funds for the Project are being made pursuant to H Construction Loan
<br />Agreement dated as of , 1980 (the "Construction
<br />Loan Agreement") among-tT1e-.eity~.--"Horder--a-r1d--nort;owers, Reference is hcreby
<br />made to the Note Resolution, Loan Agreement, Pledge, Constl'uction LOHn Ag'J'ec-
<br />ment, Mortgage, Assignment, and Guaranty for a complete description of the
<br />covenants and agreements ther'cin contained, the nature Hnd extent of the security
<br />thereby created and the rights, duties and immunities of the City thereunder,
<br />
<br />This Note may not bc prepaid on 01' before the Purchase Date nor during the
<br />period of the first seven (7) Loan Years, as hercinaftcr defined, Thereafter, at tllC
<br />direction of the Borrowers, this Note may be p,'cpaid in full but not in part durin!;
<br />the eighth (8th) Loan Year upon the payment of a prcpayment premium, over Hnd
<br />above the interest accrued under the terms of this Note in an amount cqual to
<br />three percent (3%) of the amount of principal prepaid and commencing with the
<br />ninth (9th) Loan Yeur upon the payment of a pr'epaymcnt premium in an alnount
<br />equal to two and one-.half percent (2-1/2%) of thc amount of principal prepaid,
<br />The prepayment pr'emium to be paid shull decrease by one-half percent (1/2'X,) for
<br />each Loan Year thereafter to H minimum of one pel'cent (l')(,) dlll'ing thc twelfth
<br />(12th) Loan Year Hnd every Loan Year' thereafter. "Loan Yellr" shall mcall It
<br />calendar year consisting of twelve (12) months com mCllcing on the date the first
<br />full monthly payment of principal Hnd int(~rest is due linder' this Note, The
<br />Borrowers shall give the registered owner of this Note ninety (90) days written
<br />notice of any such prepayment and any such prepayment shall not suspend regular
<br />payments as they become due,
<br />
<br />Provisions to the contrary, if any, contained in this Note notwithstanding,
<br />the above-described Construction Loan Agreement shall no longer consti tutc a part
<br />
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