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the book - entry only system pursuant to the Resolution, Bonds may only be registered in the <br />name of the Depository or its Nominee, <br />Q tional Redemption, The Bonds of this issue (the "Bonds ") maturing on April 1, 2017, <br />and thereafter, are subject to redemption and prepayment at the option of the Issuer on April 1, <br />2016, and on any date thereafter at a price of par plus accrued interest.. Redemption may be in <br />whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and <br />the principal amounts within each maturity to be redeemed shall be determined by the Issuer; and <br />if only part of the Bonds having a common maturity date are called for prepayment, the specific <br />Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof <br />called for redemption shall be due and payable on the redemption date, and interest thereon shall <br />cease to accrue from and after the redemption date. Mailed notice of redemption shall be given <br />to the paying agent and to each affected Holder of the Bonds prior to the date fixed for <br />redemption. <br />. Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed <br />in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying <br />the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the <br />addresses shown on the Bond Register, All Bonds so called for redemption will cease to bear <br />interest on the specified redemption date, provided funds for their redemption have been duly <br />deposited. <br />• Selection of Bonds for Redemption; Partial Redemption To effect a partial redemption <br />of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a <br />common maturity date a distinctive number for each $5,000 of the principal amount of such <br />Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall <br />deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at <br />$5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The <br />Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, <br />however, that only so much of the principal amount of such Bond of a denomination of more <br />than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so <br />selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar <br />(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form <br />satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's <br />attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond <br />Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a <br />new Bond or Bonds of the same series having the same stated maturity and interest rate and of <br />any Authorized Denomination or Denominations, as requested by such Holder, in aggregate <br />principal amount equal to and in exchange for the unredeemed portion of the principal of the <br />Bond so surrendered, <br />Issuance; Purpose; General Obligation This Bond is one of an issue in the total principal <br />amount of $1,360,000, all of like .date of original issue and tenor, except as to number, maturity, <br />interest rate and denomination and redemption privilege, which Bond has been issued pursuant to <br />and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a <br />resolution adopted by the City Council on October 27, 2009 (the "Resolution "), for the purpose <br />of providing money to finance certain costs of establishing, locating, relocating, constructing, <br />2413138v1 8 <br />