08-83 Hospital Improvement revenue bonds

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Date, principal of Term Bonds which by their terms are due and payable, if not called for prior redemption, on a subsequent date. "Net Annual Income" means the difference resulting by (1) aggregating the total annual Hospital Receipts, as determined by the Auditor in accordance with generally accepted accounting principles consistently applied, plus the Net Proceeds from use and occupancy insurance (but excluding any profit on the sale or other disposition, not in the ordinary course of business, of investments or fixed or capital assets, and also excluding proceeds from life insurance poli- cies, any grants, gifts, bequests, contributions and other donations to the extent specifically restricted by the donor or the grantor to a special object or purpose which precludes the use thereof for paying Bond Service Charges or operating, maintenance and repair expenses of the Hospital Facilities, and proceeds of any borrowing), during any applicable complete Fiscal Year for which audited financial statements are available, based on the audited financial statements for such Fiscal Year prepared by the Auditor, and (2) subtracting from such amount the total aggregate current operating expenses of the Issuer for the Hospi- tal Facilities, as determined by the Auditor in accordance with gener- ally accepted accounting principles consistently applied, during such Fiscal Year, excluding from any such current expenses: (a) any allow- ance for depreciation and amortization, (b) interest payments on any fixed indebtedness or capitalized lease obligations, (c) moneys expended for improvements having a useful life estimated to be in excess of five years, (d) payments made for Annual Requirements or into the Debt Ser- vice Reserve Fund or the Depreciation Reserve Fund, and (e) losses on the sale or disposition, not in the ordinary course of business, of investments or fixed or capital assets. "Net Proceeds" means, when used with respect to any insurance or condemnation award, the gross proceeds from such insurance or condem- nation award remaining after payment of all expenses (including attor- neys' fees, to the extent permitted by law, and any extraordinary expen- ses of the Issuer and the Trustee) incurred in the collec%ion of such gross proceeds. "Net Revenues" means, for any period, the Hospital Receipts net of all reasonable or necessary current expenses of operating, main- taining, repairing and managing the Hospital Facilities (not including amounts attributable to depreciation, amortization or capital improve- ments) and of reserving an adequate working capital reserve for the Hospital Facilities. "Notice Address" means, (a) As to the Issuer: City of Lakewood City Hall 12650 Detroit Avenue Lakewood, Ohio 44107 -8-