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<br />7. Proiect Schedule. Yedda shall provide the City with a project completion schedule within <br />thirty (30) days of execution of this Agreement setting forth the project milestones including an estimated <br />final cost of improvements. <br /> <br />8. Events of Default: Remedies <br />(a) In the event the City determines, in the exercise of reasonable discretion, that Yedda is <br />not complying with its obligations under the provisions of this Agreement, the City shall provide Vedda with <br />written notice that Vedda is in default of its obligations to proceed in good faith to redevelop the property. <br /> <br />(b) Upon issuance of such notice of default, Vedda shall have thirty (30) days within <br />which to comply and remedy the default. Failure to so comply and remedy the default within such thirty-day <br />period will permit the City to require payment in full in an amount equal to the Economic Development Fund <br />and TIP monies expended by the City for this project. <br /> <br />(c) Yedda shall grant to the City a first mortgage on the Project Site to secure Yedda's <br />obligations under this Agreement. The City agrees to subordinate that first mortgage to a construction lender <br />providing financing for the Project upon the earlier of (i) execution of an intercreditor agreement between the <br />City and such construction lender in form and substance reasonably satisfactory to the City or (ii) completion <br />of construction of the Project on the Project Site. Any intercreditor agreement shall include provisions <br />relating to: <br /> <br />I) acknowledgment of sources to and flow of funds ITom the Project; <br />2) division of property/project into separate sources of security; <br />3) recitation and agreement as to priority of security interests in such security <br />sources; <br />4) right to scheduled payments in absence of defaults; <br />5) mandatory notice among lender/finance source group on defaults; <br />6) standstill periods for cooperative cures after default before exercises of <br />remedies; <br />7) agreements as to preservation of collateral; <br />8) right and ability to replace Vedda after default to complete project; <br />9) rights of various lender/fmancial sources to exercise remedies upon default, <br />after standstill period to preserve and protect security interests in absence of <br />agreement to contrary; and ' <br />10) agreement not to modiJ)r documents, increase debt or extend repayment <br />periods without notice and consent. <br /> <br />9. Time of the Essence: Force Majeure. Time is of the essence with respect to this Agreement <br />and all obligations of the parties hereunder. Notwithstanding the foregoing, in the event either Yedda or the <br />City is delayed in the performance of its obligations under this Agreement due to weather, unforeseen <br />material shortages, strikes or acts of God (collectively, "force majeure"), then the time for performance of <br />any such obligation shall be extended by the number of days that the force majeure continues in effect. <br />Delays in performance due to fQrce majeure shall be permitted only if a party seeking a force majeure delay <br />gives the other party written notice of the existence of force majeure within ten (10) days of occurrence, <br />together with a statement of the number of days of anticipated delay, subject to subsequent adjustment ITom <br />time to time as conditions warrant. <br /> <br />4 <br />