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WHEREAS, the aggregate principal amount of $3;000,000 will be issued as tax-exempt enterprise zone facility revenue bonds which, under Section 146 of the Code, are subject to the limitation on the volume of tax exempt private activity bonds (the "Volume Cap") and thus will require an allocation of a portion of the Commonwealth of Virginia's Volume Cap; and WHEREAS, the Commonwealth of Virginia, by statute and executive order promulgating the Virginia Private Activity Bond Allocation Guidelines (revised 12/98) (the "Guidelines"), has reserved the power to allocate its Volume Cap to itself, acting through the Virginia Small Business Financing Authority, whereupon the adoption of this resolution by this Council neither carries nor implies any assurance of or commitment for an allocation, nor any obligations with respect thereto; and WHEREAS, as an issue of enterprise zone facility revenue bonds, that portion of the Bonds not designated "new empowerment zone facility bonds" will require the grant of an allocation by the Virginia Small Business Financing Authority from a portion of the "State Allocation" of the Volume Cap reserved to the Governor as a project of "state or regional interest"; and WHEREAS, a public hearing with respect to the Bonds as required by the Act and the Code, was held by the Authority on June 20, 2000; and WHEREAS, a copy of the Authority's resolution approving the issuance of the Bonds and recommending that the Council approve the issuance of the Bonds, subject to the terms to be agreed upon, a record of the public hearing with respect to the Bonds, and a Fiscal Impact Statement in the form prescribed by Section 15.2-4907 of the Act, have been filed with the Council; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Portsmouth, Virginia, that: 1. The recitals made in the first preamble to this Resolution are hereby adopted as a part of this Resolution. 2. The City Council of the City of Portsmouth, Virginia, approves the issuance of the Bonds by the Authority to assist in the plan of finance described herein for the benefit of the Company to the extent required by the Code and Section 15.2-4906 of the Act. 3. The Council endorses the Authority's request to the Virginia Small Business Financing Authority for an allocation of a portion of the "State Allocation" of the Volume Cap in an amount of $3,000,000 with respect to the Bonds; provided, however, that the adoption of this Resolution neither carries nor implies any assurance of or commitment for the allocation of any portion of the Commonwealth's Volume Cap to the Bonds, nor any obligation of the City, this Council or its members, or the Authority or its directors, with respect thereto. By accepting and proceeding under authority of the Authority's and this Council's resolutions, the Company agrees (i) to hold the City, the Authority and their officers, directors, employees, agents and attorneys, harmless for any damages, direct or consequential, suffered by the Company as a result of any