08 Plat approval, variance, easement acceptance and subdivision improvements

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ARTICLE V. DEFAULT AND REMEDIES 5.01. Events of Default The following shall be considered as events of default: (a) The Developer has failed to commence construction of the Public Improvements by the date specified in Section 1.02 of this Agreement. (b) The Developer has failed to substantially complete construction of the Public Improvements in accordance with the Standard Specifications and Engineering Plans by the completion date specified in Section 1.02 of this Agreement. (c) The Developer has been declared insolvent. (d) The filing of a voluntary or involuntary petition in bankruptcy by or against the Developer. (e) The commencement of a foreclosure proceeding of a note, deed of trust or other lien against the Subdivision, or the conveyance of the Subdivision property in lieu of foreclosure. (f) The Developer's failure to cure a defect within the cure period provided in Section 2.02 of this Agreement. (g) The failure of the contractor and any subcontractor who actually performs construction work on the Public Improvements to maintain insurance as required by Section 7.02 of this Agreement. (h) The failure of Developer to substantially comply with any other covenant or promise contained in this Agreement. 5.02. Specific Remedies (a) In the event of default by Developer, after notice and applicable time period, the City shall be entitled to draw down on the proceeds of the Letter of Credit when a Letter of Credit has been issued as security, use the Cash Escrow when it has been deposited with the City, and to require that the Surety remedy the default when a performance or maintenance bond has been issued. Notwithstanding the foregoing, in the event of default, the damages that the City is entitled to recover from developer shall not be limited to the amount of the Letter of Credit, Cash Escrow and Performance Bond, but shall be based upon the actual costs reasonably incurred in completing the Oversize Improvements or to cure defects within the warranty period. SUBDIVISION IMPROVEMENT AGREEMENT PAGE 7 4s t Y \