Common use of Type and amount of security Clause in Contracts

Type and amount of security. Prior to commencing any work the Developer shall deposit with the Township cash, or an irrevocable standby letter of credit from a Canadian chartered bank or credit union acceptable to the Township and in a form approved by the Township based upon Form 2 attached to this Agreement [the “security”] to secure and guarantee to the Township due performance of the Developer’s obligations, including, without limitation, those obligations relating to the provision of municipal services and all financial obligations of the Developer, present and future, pursuant to this Agreement and the security shall be in an original sum of not less than 100% of the value of the municipal and engineering services and rough grading required by this Agreement plus applicable taxes. In the event that a letter of credit is provided then the Township shall be named as beneficiary/secured party therein. If a Pre-servicing Agreement has been entered into, the amount of securities required by this Agreement shall be as per Article 10.3 namely an amount equal to one hundred and fifteen (115%) percent of the cost of work remaining to be completed plus ten (10%) percent of the completed work costs, as estimated by the Developer’s Engineers and verified by the Township Engineer. The Developer’s engineer shall determine the amount of the remaining work which shall be verified by the Township Engineer. In order to guarantee site servicing and the due performance of its covenants for this Agreement, the Developer shall provide a current security financial report (Securities Reconciliation Report) for each project phase in the development, the Township’s Engineer shall certify the amount of securities and the Township accept the required amount of securities for inclusion in Schedule “F” of this agreement. Prior to registration of this Agreement and during the term of this Agreement, the Developer shall maintain a Letter of Credit (“Letter of Credit”) or cash security in the amount of $1,000,000.00. This irrevocable letter of credit will be maintained on a go forward basis to provide assurance for security for this agreement and future phases of the Developer’s residential development projects. As new phases come forward for development and as infrastructure within each phase of the developments are completed, the amount of securities required will increase and decrease from time to time. If the aggregate amount of the total securities required to satisfy the Township’s assurance of the Developer’s due performance in this and other agreements increases above $1,000,000.00 the Developer will provide the required security in the amount of $100,000.00 increments to satisfy the Township requirements. Prior proceeding with subsequent phases/development, or any reduction in securities, the Developer’s engineering consultant will provide a Securities Reconciliation Report (SRR) based on the work completed by the Developer and Developer’s security in place with the Township. This SRR will provide a recommendation regarding adequacy of the current level of security and adjustment needed if applicable. The Township Engineer will review this report and provide a recommendation to the Township.

Type and amount of security. Prior to commencing any work the Developer shall deposit with the Township Town cash, or an irrevocable standby letter Letter of credit from a Canadian chartered bank or credit union union, or Subdivision Bond acceptable to the Township Town and in a form approved by the Township Town based upon Form 2 attached to this Agreement [(the “securitySecurity”] ) to secure and guarantee to the Township Town due performance of the Developer’s obligations, including, without limitation, those obligations relating to the provision of municipal services and all financial obligations of the Developer, present and future, pursuant to this Agreement and the security Security shall be in an original sum of not less than 100% of the value of the municipal and engineering services and rough grading required by this Agreement plus applicable taxes. In the event that a letter Letter of credit Credit or Subdivision Bond is provided then the Township Town shall be named as beneficiary/secured party therein. If a Pre-servicing Agreement has been entered into, the amount of securities required by this Agreement shall be as per Article Section 10.3 namely an amount equal to one hundred and fifteen ten (115110%) percent of the cost of work remaining to be completed plus ten (10%) percent of the completed work costs, as estimated by the Developer’s Engineers and verified by the Township Town Engineer. The Developer’s engineer shall determine the amount of the remaining work which shall be verified by the Township Town Engineer. Any securities held by the Town through a Pre- Servicing Agreement shall be retained by the Town unless replaced by cash, Letter of Credit or Subdivision Bond with a sufficient amount of Security for both completed and uncompleted works. In order to guarantee site servicing and the due performance of its covenants for this Agreement, the Developer shall provide a current security financial report (Securities Reconciliation Report) for each project phase in the developmentDevelopment, the Township’s Town Engineer shall certify the amount of securities and the Township Town accept the required amount of securities for inclusion in Schedule “F” of this agreement. Prior to registration of this Agreement and during the term of this Agreement, the Developer shall maintain provide the Town with a Letter of Credit (“Letter of Credit”) or ), cash security or Subdivision Bond in the amount of $1,000,000.00968,204.84. After the security is posted any existing security relating to pre-development will be released. This irrevocable letter Letter of credit Credit will be maintained on a go forward basis to provide assurance for security Security for this agreement and future phases of the Developer’s residential development projects. As new phases come forward for development Development and as infrastructure within each phase of the developments are is completed, the amount of securities required will increase and decrease from time to time. If the aggregate amount of the total securities required to satisfy the TownshipTown’s assurance of the Developer’s due performance in this and other agreements increases above $1,000,000.00 968,204.84 the Developer will provide the required security Security in the amount of $100,000.00 50,000.00 increments to satisfy the Township Town requirements. Prior proceeding with subsequent phases/development, or any reduction in securities, the Developer’s engineering consultant will provide a Securities Reconciliation Report (SRR) based on the work completed by the Developer and Developer’s security Security in place with the TownshipTown. This SRR will provide a recommendation regarding adequacy of the current level of security Security and adjustment needed if applicable. The Township Town Engineer will review this report and provide a recommendation to the TownshipTown.