PRILIMINARY OFFIC STATEMENT 11-15-2001 44.

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(d) The occurrence and continuation of any "Event Default" ve t of as that term is defined in the Loan Agreement or the occurrence of any acceleration of Senior Indebtedness because of a default or nonperformance or noncompliance by the Borrower under any document governing such indebtedness. Default in the due and punctual payment of any interest on or principal of any Outstanding Subordinate Bonds shall also constitute an Event of Default under the Indenture; provided, however, that the Trustee shall not be entitled to exercise any remedies upon an Event of Default with respect to the Subordinate Bonds set forth unless the Senior Bonds are no longer Outstanding Bonds. Remedies on Default Upon the occurrence of an Event of Default, the Trustee may, and upon written request of Holders of twenty-five percent(25%)in aggregate principal amount of outstanding Senior Bonds, the Trustee shall, by notice in writing delivered to the Borrower declare the principal of all Senior Bonds hereby secured then outstanding and the interest accrued thereon immediately due and payable,and such principal and interest shall thereupon become and be immediately due and payable: subject,however,to the right of a Majority of Holders., by written notice to the Borrower and to the Trustee, to annul such declaration and destroy its effect at any time if all covenants with respect to which default shall have been made shall be fully performed or made good, and all arrears of interest upon all outstanding Senior Bonds and the reasonable expenses and charges of the Trustee,its agents and attorneys shall be paid, or the amount thereof shall be paid to the Trustee for the benefit those entitled thereto. In any case of Default or breach of any of the covenants and conditions of the Indenture, or to protect the Trust Estate, the Trustee, anything contained to the contrary notwithstanding and without any request from any holder of Senior Bonds(subject,however., to the provisions of Section 8.06 of the Indenture), may take such action or actions for the enforcement of its rights and the rights of the holders of Senior Bonds and the rights of the City under the Loan Agreement as due diligence, prudence and care would require and to pursue the same with like diligence, prudence and care.