AND WHEREAS the Developer has requested the City to
accept ownership of such works and services on the condition that
the Develcrer agree to complete those works and services which
axe not yet compieted and to provide security, including security
for an extended maintenance period for those works and services
inspected by the Developer's consultants;

NOW THEREFORE the Parties agree, in consideration for
payment by the City to the Developer of $10, the receipt and
sufficiency of which is hereby acknowledged, as follows:

l. The Developer covenants, agrees and represents that it
has constructed all of the works and services as shown
on the drawings which are listed on Schedule "a4"
attached hereto to the standards and specifications set
out in the City's Subdivision Servicing Bylaw, 1987,
No. 2241 (the "installed works and services"),

The Developer agrees to Provide to the City a letter of
credit in the amount of $106,500 as security for the
maintenance of the installed works and services and
agrees that the City is free to call upon and utilize
such letter of credit at any time if, in the sole
Opinion of the City, same is required for the
maintenance, repair, ctonstruction or reconstruction of
the installed works -nqd services or any deficiency or
defect in same and sich letter of credit is to remain
in place for 5 years from the date of acceptance by the
City of the installed works and services and in the
event of such letter of credit being insufficient to

repair, maintain, construct or reconstruct the
installed works and services, to pay the balance to the

City forthwith upon demand.

ITEM