83-78 RATIFYING AND APPROVING THE EXECUTION OF A PURCHASE CONTRACT AMONG THE CITY OF DECATUR, MACON COUNTY, ILLINOIS, DECATUR MEMORIAL HOSPITAL AND SMITH BARNEY, HARRIS UPHAM & CO. INC. AND OTHER UNDERWRITERS

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� Proof No. 5-9-28-83—(4246) La Salle St.Press-527-3080—(Pat. No.3,136,24$) COMMUNITY SUPPORT Endowments and Bequests � The Hospital is the beneficiary under several trusts and receives annual distributions of unre- stricted income. The related assets of these trusts are not controlled by the Hospital and are not reflected in the Hospital's financial statements. The Hospital has been the beneficiary of several unre- stricted estate distributions and receives various other unrestricted contributions. In addition, various bequests and contributions to the Hospital, the income from which is unrestricted, are designated by the Hospital's Board of Directors (the "Boazd") to be applied at the discrerion of the Boazd. The following table summarizes unrestricted income from trust distributions, investments and con- tributions for the three fiscal years ended September 30, 1982, and for the nine months ended June � 30, 1982 and June 30, 1983, which information has been supplied by Hospital management: Years Ended September 30 9 Months Ended 1980 1981 1982 6/30/82 6/30/83 (dollars in thousands) Trust distributions . . . . . . . . . . . . . . . . . . $ 297 $ 279 $ 373 $255 $ 369 Investment income . . . . . . . . . . . . . . . . . . 799 937 871 627 625 Contributions: Estate distributions . . . . . . . . . . . . . . . . . — 3,000 — — 716 Annual giving and other sources . . . . 101 21 542 16 13 $1,197 $4,237 $1,786 $898 $1,623 The moneys referred to above do not consdtute a part of the Unrestricted Receivables of the Hos- li pital which have been pledged by the Hospital to secure its obligations under the Series A Master �I Note. See "Definitions of Certain Terms" for a definition of "Unrestricted Receivables". With the ex- I ception of amounts attributable to funded depreciation which are included in the category "Invest- '�, ment income", the moneys referred to above are attributable to assets which constitute "Excluded , I Property", as defined in the Master Indenture. The Hospital may sell, lease or otherwise dispose of ',, Excluded Property without regard to the restrictions on transfers of assets imposed by the Master I � Indenture. If not sold, leased or otherwise disposed of, the income and gains from Excluded Property �I would, at the discretion of the Board, be available to pay the principal of, premium, if any, and ' interest on the Series 1983 Bonds. See the subheadings "Transfers of Assets; A�liate Transactions" and "A�liate Leases" under "Summary of Principal Instruments—Master Indenture" for a descrip- tion of certain limitations and restrictions on the Corporation's ability to sell, lease or otherwise dis- pose of its assets and property which do not constitute Excluded Property. Fund Raising The Hospital has an active development program headed by a full-time director who is an admin- istrative o�cer of the Hospital. The development program is primarily involved in assisting the Hospi- tal in meeting its capital needs through an annual solicitation program and an ongoing deferred gifts program. . In connection with the 1981 Project, the Hospital inaugurated a community fund drive in Febru- F ary 1981 with a goal of $3,000,000. Ketchum, Inc., a fund raising consulting firm located in Pittsburgh, ~ Pennsylvania, was retained by the Hospital to assist in the fund drive. As of September 30, 1981, the _ Hospital had received pledges in an amount equal to the $3,000,000 goal of the fund drive. These � pledges were made for periods of either three or five years. Pledge commitments received aze recorded as an increase in the Hospital's restricted funds. As of June 30, 1983, the Hospital had received ap- proximately $2 million from the pledges made during the fund drive. Thes�amounts are not re- $ected in the table appearing above under the caption "Endowments and Bequ�sts". There are no as- surances that funds from pledges made during the fund drive will continue to be received by the Hospital. 12