08-83 Hospital Improvement revenue bonds

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(~) The sum of the present values on the first day of the first Depreciation Shortfall Year of Depreciation Shortfall for each such Fiscal Year, assuming a five and one-half percent ($.$%) annual discount rate. ($) The sum of the future values on the first day of the first Depreciation Shortfall Year of Excess Depreciation for each Excess Depre- ciation Year, assuming a five and one-half per- cent (5.5%) annual rate of return. (6) The ratio determined by dividing the sum of the present values of the Depreciation Shortfall by the sum of the future.values of the Excess Depreciation. (~) A schedule of annual deposits to the Depre- ciation Reserve Fund for each Excess Depre- ciation Year calculated by multiplying the ratio mentioned in (6) above by the Excess Depreciation in each Excess Depreciation Year as mentioned in (3) above. In the event that the comparison set forth in (3)'above indi- cates that all of the Excess Depreciation Years do not precede all of the Depreciation Shortfall Years, adjustments in the calculations con- tained in the Schedule of Depreciation and Principal Requirements, taking into consideration the Excess Depreciation and Depreciation Shortfall both as they occur, the assumed five and one-half percent (5.5%) rate of return, the future values of the Excess Depreciation and the present values of the Depreciation Shortfall, shall be made in order to assure that an amount equal to the Depreciation Shortfall in each Depreciation Shortfall Year is deposited in the Depreciation Reserve Fund prior to each such Depreciation Shortfall Year. If the Issuer obtains the opinion of a Hospital Consultant that cost-based payors who, in the preceding Fiscal Year, reimbursed the Issuer for depreciation of the Hospital Facilities will no longer reim- burse the Issuer for such expense, but will reimburse the Issuer for principal payments on Bonds, and that on the basis of such change in reimbursement, it cannot reasonably be expected that the Issuer will be able to make the required deposits to the Depreciation Reserve Fund, then failure to make such deposits, to the extent to which the Hospital Consultant opines, shall not constitute an Event of Default under the Indenture. Moneys held in the Depreciation Reserve Fund may be used from time to time for any of the following purposes: (i) During any Depreciation Shortfall Year, for the payment into the Debt Service Fund of the monthly amounts necessary for -36-