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Grading Only-Development Agreement <br /> Apollo Landing <br /> July 25, 2005 <br /> a) Faithful Performance of Construction Contracts and Letters of Credit <br /> (1) The Developer will fully and faithfully comply with all terms <br /> and conditions of any and all contracts entered into by the <br /> Developer for the installation and construction of all <br /> Developer Improvements and hereby guarantees the <br /> workmanship and materials for a period of one year <br /> following the City's final acceptance of the Developer's <br /> Improvements. Concurrently with the execution hereof by <br /> the Developer,the Developer will furnish to, and at all times <br /> thereafter maintain with the City, a cash deposit, certified <br /> check, or Irrevocable Letter of Credit,based on thirty-five <br /> (35%)percent of the total estimated cost of Developer's <br /> Grading Improvements and 150%of the total estimated cost <br /> of Developer's Sanitary and Watermain Improvements.An <br /> Irrevocable Letter of Credit shall be for the exclusive use and <br /> benefit of the City of Lino Lakes and shall state thereon that <br /> the same is issued to guarantee and assure performance by <br /> the Developer of all the terms and conditions of this <br /> Development Contract and construction of all required <br /> improvements in accordance with the ordinances and <br /> specifications of the City. The City reserves the right to <br /> draw,in whole or in part, on any portion of the Irrevocable <br /> Letter of Credit for the purpose of guaranteeing the terms and <br /> conditions of this contract. The Irrevocable Letter of Credit <br /> shall be automatically extended for additional periods of one <br /> year from present or future expiration dates unless thirty(30) <br /> days prior to such the City Clerk or Administrator is notified <br /> in writing by certified mail that the Letter of Credit will not <br /> be renewed. <br /> b) Reduction of Escrow Guarantee. <br /> (1) The Developer may request reduction of the Letter of Credit, <br /> or cash deposit based on prepayment or the value of the <br /> completed improvements at the time of the requested <br /> reduction. Prior to the final acceptance of the Developer <br /> Improvements the City shall require a Performance Bond or <br /> Cash Escrow to cover the one -year warranty provisions of <br /> the agreement. The amount shall be determined by the City <br /> Engineer. <br /> page 7 <br />