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ON REVERSE OF BOND
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<br /> Redemption. All Bonds of this issue maturing after February 1, 2011, are subject to
<br />redemption and prepayment at the option of the City on said date and on any date thereafter at a
<br />price of par plus accrued interest to date of redemption. Redemption may be in whole or in part of
<br />the Bonds subject to prepayment. If redemption is in part, the City shall determine the amount of
<br />Bonds of each maturity to be prepaid; and if only part of the Bonds having a common maturity date
<br />are called for prepayment, the Bonds of that maturity to be prepaid shall be chosen by lot by the'
<br />Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the
<br />redemption date, and interest thereon shall cease to accrue from and after the redemption date.
<br />Published notice of redemption shall in each case be given if and to the extent required by applicable
<br />la,v, and mailed notice of redemption shall be given to the paying agent and to each affected
<br />registered owner of the Bonds..
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<br /> Selection of Bonds for Redemption; Partial Redemption. To effect a redemption of Bonds
<br />having a common maturity date, the Bond Registrar shall assign to each Bond having a common
<br />maturity date a distractive number for each $5,000 of the principal amount of such Bond. The Bond
<br />Registrar shall then select by lot, using such method of selection as it shall deem proper in its
<br />discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each
<br />number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
<br />redeemed shah be the Bonds to which were assigned numbers so selected; provided, however, that
<br />only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be
<br />redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be
<br />redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond
<br />Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond
<br />Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing),
<br />and the City shall execute and the Bond Registrar shall authenticate and deliver to the Holder of
<br />such Bond, without service charge, a new Bond or Bonds of the same series having the same stated
<br />maturity and interest rate and of any authorized denomination or denominations, as requested by
<br />such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of
<br />the principal of the Bond so surrendered.
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<br /> Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
<br />amount of $ ., all of like date of original issue and tenor, except as to
<br />registration number, maturity, interest rate, denomination, and redemption privilege, which Bonds
<br />have been issued pursuant to and in full conformity with the Constitution and laws of the State of
<br />Minnesota, including Minnesota Statutes, Section 475.67, and pursuant to a resolution adopted by
<br />the City Council, the governing body of the City, on November 10, 2003 (the "Resolution"), for the
<br />primary purpose of providing moneys, together with other available funds of the City, sufficient to
<br />prepay certain prior general obligation bonds of the City and to finance certain improvements to the
<br />City's municipal water system and utility. This Bond constitutes a general obligation of the City, and
<br />to provide moneys for the prompt and full payment of the principal of and interest on all of the
<br />Bonds, when the same become due, the full faith and credit and taxing powers of the City have been
<br />and are hereby irrevocably pledged. Each capitalized term which is used but not othenvise de£med
<br />in this Bond shall have the meaning given to that term in the Resolution.
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<br />[For Bonds in Book Entry Only Form, the following paragraph shall be added, and this
<br />Bond form (1) may be rearranged so that the signature blocks hereof appear at the end of
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<br />S:\ADMIN\Resolutions~2003 Resolutions~Unapproved\Bond2.DOC
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