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<br />Henrico County EDA
<br />Inducement Resolution
<br />
<br />Inducement
<br />Resolution With
<br />Respect to the Proposed Issuance of
<br />Revenue Bonds by the
<br />Economic Development Authority of
<br />Henrico County, Virginia for
<br />Bon Secours-St. Mary's Hospital of Richmond, Inc.,
<br />Bon Secours-Memorial Regional Medical Center, Inc. and Maryview Hospital
<br />
<br />WHEREAS, Bon Secours-St. Mary's Hospital of Richmond, Inc. ("St. Mary's
<br />Hospital"), with facilities located in Henrico County, Virginia, is a Virginia nonstock, nonprofit
<br />corporation and an organization described under Section 501(c)(3) of the Internal Revenue Code
<br />of 1986, as amended (the "Code"), affiliated with Bon Secours Health System, Inc., a Maryland
<br />nonstock, nonprofit corporation ("BSHSI"); and
<br />
<br />WHEREAS, Bon Secours-Memorial Regional Medical Center, Inc. ("MRMC"), with
<br />facilities located in Hanover County, Virginia, is a Virginia nonstock, nonprofit corporation and
<br />an organization described under Section 501(c)(3) of the Code, affiliated with BSHSI; and
<br />
<br />WHEREAS, Maryview Hospital ("Maryview Hospital" and, together with St. Mary's
<br />Hospital and MRMC, the "Hospitals"), with facilities located in Portsmouth, Virginia, is a
<br />Virginia nonstock, nonprofit corporation and an organization described under Section 501(c)(3)
<br />ofthe Code, affiliated with BSHSI; and
<br />
<br />WHEREAS, BSHSI has requested that the Economic Development Authority of Henrico
<br />County, Virginia (the "Authority") issue one or more series of its Revenue Bonds (Bon Secours
<br />Health System, Inc.) in an aggregate principal amount not to exceed $74,000,000 (the "Bonds")
<br />in order to (i) refund all or a portion of the Economic Development Authority of Henrico
<br />County, Virginia Revenue Bonds, Series 2002A (Bon Secours Health System, Inc.) (the "Prior
<br />Bonds"), proceeds of which benefitted St. Mary's Hospital and Maryview Hospital, (ii)pay or
<br />reimburse, or refinance certain indebtedness the proceeds of which were used by, one or more of
<br />the Hospitals for the payment of the costs of acquiring, constructing, equipping, expanding,
<br />enlarging and improving certain of their medical facilities, (iii) pay a portion of the interest on
<br />the Bonds, if deemed necessary, (iv) establish a debt service reserve fund, if deemed necessary,
<br />and (v) pay certain expenses incurrea in connection with the issuance of the Bonds and the
<br />refunding of the Prior Bonds (collectively, the "Financing Purposes"); and
<br />
<br />WHEREAS, the Bonds will be issued pursuant to the Virginia Industrial Development
<br />and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950, as amended (the
<br />"Act"), and will be limited obligations of the Authority payable solely from the revenues and
<br />receipts derived from payments by BSHSI and related entities; and
<br />
<br />WHEREAS, pursuant to Section 15.2-4905 of the Act, if a locality other than Henrico
<br />County, Virginia has created an industrial development authority pursuant to the Act, the Act
<br />does not permit the Authority to finance facilities within the boundaries of such locality unless
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<br />CHI-I 864199v3
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