7A Request from Presbyterian Homes for Conduit Financing

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_ .......... ....... UNITED STATES OF AMERICA STATE OF MINIVESOTA COUNTY OF RAMSEY ARDEN HILLS, MINNESOTA Commercial Facilities Revenue Note, Series �048 {PHM&S Office Building Prvj ect) $5,500,000 FOR VALUE RECEIVED the CITY OF ARDEN H�LLS, Ramsey County, Minnes�ta {the "City"} hereby prornises to pay UNIVERSITY BANK, a Minnesota baxzking corporation, in St. Paul, Minnesota, its successors or registered assigns {the "Lender"), from the source and in ihe manner hereinafter provided, the principal sum of FIVE MILLION FIVE HUNDRED THOUSAND DOLLA.RS ($5,500,000), ar so much ihereof as has been advanced and remains unpaid fram time to time (the "Principal Balance"), with interest thereon from the date hereof until paid or otherwise discharged as set forth in Paragraph 1 below, in any coin or currency which at the time or times af payment is legal tender for the payment of public or privaie d�bts in the United States of America, in accordance with the terms hereinafter set farth. l. Commencing on ihe date of ihis Note and continuing though September , 2013 (the "First Adjustrnent Date") interest shall accrue on the outstanding principal balance at the initial rate of 396% per annum {the "Ynitial Rate"). _ 2. On the First Adjustment Daie, and on each five year anniversary thereafter (�ach an "Adjusirr�ent Date") thraugh September _, 2U28 {the "Final Maturity Date"), the interest rate or� this Note vvil� be adjusted to a rate per annum equal to 275 basis points plus the then current rate of the Tzeasury Constant Maturities far f ve year obligations as reported by the Federal Reserve for the preceding month {the "Adjusted Rate"}. Excepi in the event of a Deter�nination of Taxability, as def ned in the Loan Agreernent, the annual rate of interest payable hereunder s�.all not be greater than 6.71 % during the term o£ this Note. 3. Interest only shall be payable on the Principal Balance of this Note each month commencing October _, 200$ through September �, 2009. 4. Principal and interest on �hi.s Note sha11 be payable in 228 equal monthly installments on the day of each arzaonth commencing October _, 2009 and continuing ihereafter until the Final Matur'rty Date in such amounts as are required ta fully amortize the pr�ncipal balance, together with accrued interest ther�on at the interesi rate then in effect, over the rernaining tertn of the Nate and monthly payments of principal and interest shaIl be recornputed as of each Adjustment Date. Payments shall be applied �rst ta amounts which are neither principal nor interest, next �o interest due on the principal balance and thereafter �o reduction of the principal balance. S. In any event, the payments hereunder shall be sufficient to pay all principal and inierest due, as such principal and interest becomes due, and to pay any pzemium (as defined in the Loan Agreert�ent described belaw) or service charge, at maturity, upon red�rnption, or zaoss3o�z