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INTERLOCAL AGREEMENT This INTERLOCAL AGREEMENT (the "Interlocal Agreement "), made and entered into as of [month] 1, 2010, between the City of Kannapolis, North Carolina, a political subdivision and a municipal corporation created and existing under the laws of the State of North Carolina (the "City ") and Cabarrus County, North Carolina (the "County ") a political subdivision and a county created and existing under the laws of the State of North Carolina; WITNESSETH: WHEREAS, pursuant to Section 158 -7.3 of the General Statutes of North Carolina, as amended (the "Development District Act "), the cities and counties of the State of North Carolina are authorized to define a development financing district and to finance public improvements that are part of a development project with the proceeds of project development financing debt instruments, issued pursuant to Article 6 of Chapter 159 of the General Statues of the State of North Carolina, as amended (the "Bond Act"); and WHEREAS, Castle & Cooke North Carolina, LLC, a Delaware limited liability company (the "Developer ") is undertaking a development project known as the North Carolina Research Campus (the "Development Project"); and WHEREAS, the City Council of the City (the "City Council ") has determined to undertake to assist the Development Project by providing certain public improvements that would qualify for project development financing (the "Bonds ") under the Development District Act (collectively, the "Public Improvements "), and has heretofore established the "North Carolina Research Campus District" (the "Development Financing District "), which Development Financing District was approved by the Local Government Commission by an order issued on December 4, 2007 and became effective December 4, 2007; and WHEREAS, the County has previously determined to provide assistance to the Development Project as permitted under the Bond Act, and by resolution adopted on November 19, 2007, authorized the execution and delivery of an interlocal agreement (the "Original Interlocal Agreement) that would have supported the Bonds to be issued by the City as more specifically set forth in such Original Interlocal Agreement, subject to the limitations and restrictions set forth in such Original Interlocal Agreement; and WHEREAS, owing to general economic conditions, the original plans for issuing the Bonds became and remain infeasible in response to which the City, in consultation with its financial advisors and the North Carolina Local Government Commission, has devised an alternative plan to fund a portion of the Public Improvements under the provisions of North Carolina General Statutes Section 160A -20 (the "Installment Contracts Act") through the issuance of Limited Obligation Bonds or Certificates of Participation evidencing undivided interest in one or more installment financing contracts in an aggregate principal amount not exceeding $36,500,000 (the "Financing "); and WHEREAS, the County desires to provide assistance to the Financing by means of a County Contribution in the same general amounts and subject to the same general limitations and restrictions as were originally contemplated to be provided for the Bonds; and WHEREAS, subject to the limitations and restrictions set forth in this interlocal agreement, the County will pay a portion of its incremental ad valorem tax revenues collected in the Development Financing District to the City to be used for the payment of not more than one -half of the annual payments of principal and interest due on the Financing; and G -3 Page 188