Cleveland Clinic Health System Obligated Group - FMSbonds.com

(b) Default in the payment of the principal, or any redemption premium on, any Series2008A Bond when due and payable, whether at stated maturity, upon acceleration or redemption;(c) The Commission for any reason is rendered incapable of fulfilling its obligations underthe Bond Indenture, or the Commission defaults in the due and punctual performance of any of the othercovenants, conditions, agreements and provisions contained in the Series 2008A Bonds or in the BondIndenture or any Supplemental Bond Indenture on the part of the Commission to be performed, and suchincapacity or default continues for 60 days after written notice specifying such default and requiring thesame to be remedied given to the Commission and the Cleveland Clinic by the Bond Trustee (which noticemay be given by the Bond Trustee in its discretion and must be given at the written request of the Holdersof not less than 25% in aggregate principal amount of the Series 2008A Bonds then Outstanding); providedthat, if any such default is correctable but is such that it cannot be corrected within such period, it will notconstitute an Event of Default if corrective action is instituted by the Commission or the Cleveland Clinicwithin such period and diligently pursued until the default is corrected; and(d)been waived.An Event of Default specified in the Lease has occurred and is continuing and has notThe Bond Trustee is not required under the Bond Indenture to take notice or is not deemed to have noticeof any Default or Event of Default unless the Bond Trustee shall be specifically notified in writing of such Defaultor Event of Default by the Commission, the Cleveland Clinic or the Holders of at least 10% in principal amount ofall Series 2008A Bonds Outstanding, and in the absence of such notice so delivered, the Bond Trustee mayconclusively assume there is no Default. Not later than the 30th day following the occurrence of any Event ofDefault of which the Bond Trustee is required to take notice or has received notice, the Bond Trustee must givewritten notice of such Event of Default by first-class mail to all Holders of Series 2008A Bonds as shown on theBond Register maintained by the Bond Trustee, unless such Default has been cured or waived; provided that, exceptin the case of a default in the payment of the principal of or interest or any premium on any Series 2008A Bond, theBond Trustee shall be protected in withholding such notice from Bondholders if and so long as the Bond Trustee ingood faith determines that the withholding of such notice is in the interests of the Bondholders.ACCELERATION, ANNULMENT AND RESCISSIONIf an Event of Default under the Bond Indenture occurred and is continuing, the Bond Trustee may, andmust, at the direction of Holders of at least 25% in aggregate principal amount of the Outstanding Series 2008ABonds, by written notice to the Commission and the Cleveland Clinic, declare the principal of all Series 2008ABonds then Outstanding and the interest accrued thereon immediately due and payable. Such principal and interestwill thereupon become and be immediately due and payable at the place of payment for which provision is made insuch written notice, anything in the Bond Indenture or in the Series 2008A Bonds to the contrary notwithstanding.Upon the acceleration of the principal and interest accrued on the Series 2008A Bonds then Outstanding,the Bond Trustee must immediately declare all Basic Rent payable under the Lease with respect to the Series 2008ABonds then Outstanding to be immediately due and payable.If, at any time after the principal of the Series 2008A Bonds then Outstanding becomes due and payablepursuant to the provisions of the Bond Indenture summarized under this caption, and before the entry of finaljudgment or decree in any suit, action or proceeding instituted on account of such acceleration or before thecompletion of the enforcement of any other remedy under the Bond Indenture, all arrears of interest, with interest (tothe extent permitted by law) at the rate borne by the Series 2008A Bonds on overdue installments of interest inrespect to which such Default has occurred, and all arrears of payments of principal when due, as the case may be,and all fees and expenses of the Bond Trustee in connection with such Default have been paid or provision for theirpayment has been made, then the acceleration of the Series 2008A Bonds then Outstanding and the consequences oftheir acceleration shall be annulled or rescinded; provided that, no such annulment or rescission will extend to oraffect any subsequent acceleration of the Series 2008A Bonds then Outstanding, or impair any right consequentthereon.C-41