Fort Walton Beach Resolution — 2026-02 Authorizing Issuance of Revenue Note-Preston Hood Expansion Loan $7,500,000 — reading text

the amounts set forth in Schedule A attached hereto. The principal and interest on this Note are payable in lawful money of the United States of America by wire transfer in accordance with written instructions delivered by the Registered Owner hereof to the City, or by such other medium acceptable to the City and to the Registered Owner hereof. This Note shall not be required to be presented for payment or partial prepayment, except on the final Maturity Date or earlier date of full prepayment. This Note may be prepaid on July 1, 2030, and any payment date thereafter, at the option of the City, in whole or in part, from any moneys legally available therefor, upon A- 1 30 days prior written notice to the Registered Owner, by paying to the Registered Owner the outstanding principal amount of this Note, together with the unpaid interest accrued on the outstanding principal amount hereof to the date of such prepayment, at the following prices: July 1, 2030— June 30, 2032 101% July 1, 2032 and thereafter 100 Partial prepayments ( i) must be in an aggregate principal amount of not less than 300, 000, ( ii) unless otherwise agreed to by the City and the Lender, shall be credited to principal installments payable on the Note, in inverse order of principal installments due, and ( iii) shall occur no more than once during any consecutive 12- month period. In any case where the date for making any payment or the last date for performance of any act or the exercise of any right, as provided in the Agreement, shall be other than a Business Day, then such payment or performance shall be made on the succeeding Business Day with the same force and effect as if done on the nominal date provided in the Agreement, provided that interest on an monetary obligation hereunder shall accrue at the applicable rate to and including the date of such payment. Ownership of this Note may be transferred only upon the Register, and only to( i) an affiliate of the Registered Owner of this Note or ( ii) banks, insurance companies or other financial institutions or their affiliates. Nothing herein shall limit the right ofthe Registered Owner of this Note to sell or assign participation interests in this Note to one or more entities listed in (i) or ( ii) above. Assignment of this Note shall without further action be deemed to assign the Registered Owner's interest under the Agreement. Capitalized terms used herein and not defined are used as defined in the Agreement. This Note is issued under the authority of Chapter 166, Florida Statutes, as amended, the City Charter and other applicable provisions of law, and pursuant and subject to the terms and conditions of Resolution No. 2026- 02 duly adopted by the City Council of the City on January 27, 2026 ( the " Resolution"), and pursuant to the Agreement, to which reference should be made to ascertain those terms and conditions. Subject to the limitations and restriction set forth in the Agreement, the City has covenanted in the Agreement to budget and appropriate in each Fiscal Year while this Note is outstanding sufficient amounts, from legally available Non-Ad Valorem Revenues, to pay the principal of and interest on this Note during such Fiscal Year, as more particularly provided in the Agreement. This Note shall not constitute a general obligation or indebtedness of the City, and the Registered Owner shall never have the right to require or compel the levy of taxes on any property of or in the City for the payment of the principal of and interest on this Note. A-2 This Note shall not constitute a lien upon the Project, or upon any property of or in the City, but shall be payable solely from the Pledged Funds in the manner provided in the Agreement. Reference is made to the Agreement and the Resolution for the provisions relating to the security for payment of this Note and the duties and obligations of the City hereunder. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of the State of Florida to happen, exist and be performed precedent to and in the issuance of this Note, have happened, exist and have been performed in regular and due form and time as so required. IN WITNESS WHEREOF, the City Council of the City of Fort Walton Beach, Florida, has caused this Note to be executed by its Mayor, and attested by its Clerk, either manually or with their facsimile signatures, and its seal or a facsimile thereof to be affixed, impressed, imprinted, lithographed or reproduced hereon, and this Note to be dated January 29, 2026. CITY OF FORT WALTON BEACH, FLORIDA Nic Allegretto, Mayor Attest: Approved for form and legal sufficiency: Kim M. Barnes, City Clerk Jeffrey L. Burns, City Attorney A- 3  CERTIFICATE OF AUTHENTICATION BY REGISTRAR This is the Note described in the within-defined Agreement and this Note is hereby duly authenticated and registered. Dated: January 2026. CITY OF FORT WALTON BEACH, FLORIDA By: City Clerk, as registrar A- 4  ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers to Insert Social Security or Other Identifying Number of Assignee Name and Address of Assignee) the within note and does hereby irrevocably constitute and appoint as attorneys to register the transfer of the said note on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: Signature must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program ( STAMP) or similar program. NOTICE: The signature to this assignment must correspond with the name of the Registered Holder as it appears upon the face of the within note in every particular, without alteration or enlargement or any change whatever and the Social Security or other identifying number of such assignee must be supplied. A-5  SCHEDULE A TO NOTE PRINCIPAL AND INTEREST AMORTIZATION SCHEDULE Period Ending Principal Interest Total 07/ 01/ 2027 290, 000 07/ 01/ 2028 432, 000 07/ 01/ 2029 449, 000 07/ 01/ 2030 467, 000 07/ 01/ 2031 487, 000 07/ 01/ 2032 506, 000 07/ 01/ 2033 527, 000 07/ 01/ 2034 548, 000 07/ 01/ 2035 571, 000 07/ 01/ 2036 594, 000 07/ 01/ 2037 618, 000 07/ 01/ 2038 644, 000 07/ 01/ 2039 670, 000 07/ 01/ 2040 697, 000