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5. Performance Degosit_: For the purposes of assuring to the City that the Improvements will be completed according to the terms of this agreement, and that the Developer will pay all claims for work done and materials and supplies furnished, the Developer has deposited with the City at the time of the execution of this agreement, a surety performance bond or an irrevocable letter of credit in a form satisfactory to the City providing that the City is able to draw upon such bond or letter of credit in its sole discretion to complete the Improvements if the Developer fails to satisfactorily complete the work prior to the completion date specified in Section 4 above. The amount of such deposit shall not be reduced before substantial completion of. the Improvements. A. Surety Performance Bond - If a surety performance bond is deposited with the City, said bond shall be written in a form satisfactory to the -'ity and shall name the City as obligee thereunder. The bond shall be conditioned upon performance by the Developer of its obligations here+tnder. B. Letter of Credit Expiration - If an irrevocable letter of credit is deposited with the City, said letter of credit shall expire no sooner than six months after the completion date specified in Section 4 above, or no sooner than. _ whichever is later. C. Performance Deposit Amount shall be 150% of the estimated construction cost. Estimated Construction $ 14,000.00 X 150% - Deposit Amount $ 21,000.00 6. Fees and Expenses: The Developer agrees to pay all City fees required per the current City Fee Schedule and further agrees to completely reimburse the City for all the variable additional expenses it incurs in regard to the review and approval of the Improvements incluuing, but not limited to, direct City payroll and overhead, costs, and fees paid to consultants and other professionals. Initials of Developer Initials of City Clerk Page 4 of 7