Cleveland Clinic Health System Obligated Group - FMSbonds.com

In selecting Series 2008A Bonds for redemption, the Bond Trustee will treat each Series 2008A Bond asrepresenting that number of the Series 2008A Bonds that is obtained by dividing the principal amount of such Series2008A Bond by the minimum Authorized Denomination. If it is determined that one or more, but not all, of theintegral multiples of the minimum Authorized Denomination of principal amount represented by any Series 2008ABond are to be called for redemption, then, upon notice of intention to redeem such integral multiples of anAuthorized Denomination, the owner of such Series 2008A Bond will forthwith surrender such Series 2008A Bondto the Bond Trustee for payment to such owner of the redemption price of the integral multiples of the AuthorizedDenomination of principal amount called for redemption. The Bond Trustee will deliver to such owner a new Series2008A Bond in the aggregate principal amount of the unredeemed balance of the principal amount of such Series2008A Bond. New Series 2008A Bonds representing the unredeemed balance of the principal amount of suchSeries 2008A Bond will be issued to the registered owner thereof without charge therefor.No redemption of less than all of the Series 2008A Bonds at the time outstanding shall be made pursuantto the Bond Indenture unless the aggregate principal amount of such Series 2008A Bonds to be redeemed is not lessthan an Authorized Denomination. If the Series 2008A Bonds or portions thereof are called for redemption and ifon the redemption date moneys sufficient for the redemption thereof are held by the Bond Trustee, thereafter thoseSeries 2008A Bonds or portions thereof to be redeemed shall cease to bear interest, and shall cease to be secured by,and shall be considered no longer to be outstanding under the Bond Indenture.Optional Purchase in Lieu of Redemption. The Commission and, by their acceptance of the Series 2008ABonds, the Holders of the Series 2008A Bonds irrevocably grant to the Cleveland Clinic, and any assignee of theCleveland Clinic with respect to this right, the option to purchase, at any time when the Series 2008A Bonds areredeemable pursuant to the provisions of the Bond Indenture described above in “Redemption Prior to Maturity”,any Series 2008A Bonds at a purchase price equal to its redemption price, including interest accrued to the purchasedate. To exercise such option with respect to the Series 2008A Bonds, the Cleveland Clinic must give the BondTrustee a Written Request as though such Written Request were a written request of the Commission forredemption, and the Bond Trustee is thereupon required to give the Holders of such Series 2008A Bonds notice ofsuch purchase in the manner specified under the subcaption, “Notice of Redemption,” below as though suchpurchase were a redemption. The purchase of such Series 2008A Bonds will be mandatory and enforceable againstthe Holders of the Series 2008A Bonds. On the date fixed for purchase pursuant to any exercise of such option, theCleveland Clinic is required to pay the purchase price of the Series 2008A Bonds then being purchased to the BondTrustee and the Bond Trustee will pay the same to the owners of such Series 2008A Bonds against delivery thereof.Following such purchase, the Bond Trustee will cause such Series 2008A Bonds to be registered in the name of theCleveland Clinic or its nominee and shall deliver them to the Cleveland Clinic or its nominee. In the case of thepurchase of less than all of the Series 2008A Bonds, the particular Series 2008A Bonds to be purchased will beselected in accordance with the provisions of the Bond Indenture as though such purchase were a redemption.No purchase of Series 2008A Bonds as described above will operate to extinguish the indebtedness of theState evidenced thereby.Notwithstanding the foregoing, no purchase of Series 2008A Bonds as described above in “OptionalPurchase in Lieu of Redemption” may be made unless the Cleveland Clinic shall have delivered a No AdverseEffect Opinion to the Bond Trustee and the Commission concurrently therewith.Notice of Redemption. A copy of the notice of the call for any redemption of the Series 2008A Bonds fromthe Commission to the Bond Trustee identifying the Series 2008A Bonds to be redeemed shall be given by first classmail, postage prepaid, to the Holders of the Series 2008A Bonds to be redeemed at their addresses as shown on theBond Register not later than the fifteenth day prior to the redemption date. That notice will specify the place orplaces where the amounts due upon redemption are payable, the redemption date and the principal amount andmaturity of the Series 2008A Bonds to be redeemed. Failure to give such notice by mailing to any particular Holderor a defect in the notice or mailing to any particular Holder will not affect the validity of such notice with respect toany other Holder to which notice is given in accordance with the provisions of the Bond Indenture.Except for mandatory sinking fund redemptions, prior to the date that a redemption notice is first mailed,funds shall be placed with the Bond Trustee to pay the principal of such Series 2008A Bonds to be redeemed and theaccrued interest thereon to the redemption date and the premium, if any, payable thereon, or such notice shall state10