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BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA: 1. The following plan for financing the Project is approved. The City will convey at no charge to the Authority various real estate parcels that will comprise the site for the Project. The Authority will issue the Note in a principal amount not to exceed $10,000,000 and will refund the Note with the proceeds of the Bonds in an aggregate principal amount not to exceed $10,000,000. Simultaneously, with the issuance and sale of the Note, the City and the Authority wilI execute the Cooperation Agreement by which the City will provide a general obligation guarantee for payments due thereunder to enable the Authority to pay when due the principal of and premium, if any, and interest on the IDA Obligations. The Authority will use the proceeds of the sale of the IDA Obligations to finance the costs of constructing the Project and the costs of issuing the IDA Obligations. The plan of financing for the Project shall contain such additional requirements and provisions as may be approved by the City Manager or City Attorney to be in the best interest of the City. 2. The Authority is hereby requested to undertake the issuance of the IDA Obligations, to use the proceeds of the IDA Obligations to finance the Project and to secure the IDA Obligations from payments made by the City to the Authority under the Cooperation Agreement. 3. The City Manager is hereby authorized and directed to execute the Cooperation Agreement, which shall be in substantially the form submitted to this meeting, which is hereby approved, with such completions, omissions, insertions and changes not inconsistent with this Resolution as may be approved by the City Manager, his execution to constitute conclusive evidence of his approval of any such completions, omissions, insertions and changes. 4. In making completions to the Cooperation Agreement in connection with the issuance and sale of the Note, the City Manager shall provide for payments to the Authority that will enable the Authority to pay when due the principal of and premium, if any, and interest on the Note, which shall be sold upon terms that shall be satisfactory to the Authority and the City Manager; provided, however, that payments under the Cooperation Agreement shall be equivalent to a note (a) having a principal amount not exceeding $I0,000,000, (b) maturing no later than March 31, 2001, (c) having a "true" or "Canadian" interest cost not exceeding 9.0% per year, (d) being sold at a price not less than 100% of the principal amount thereof, and (e) being subject to optional redemption at a premium not exceeding 3%. The City Manager is further authorized to approve a lesser principal amount for the Note and to approve the final amortization schedule for the Note as the City Manager shall determine to be in the best interest of the City. Following the execution of the Cooperation Agreement and the issuance and sale of the Note, the City Manager shall file a certificate with the City Clerk setting forth the final terms of the Cooperation Agreement and the Note. The actions of the City Manager in approving the terms of the Cooperation Agreement shall be conclusive, and no further action shall be necessary on the part of the City.