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CCR2000135COMMON COUNCIL - CITY OF MUSKEG0 RESOLUTION #135-2000 APPROVAL OF CONSTRUCTION AGREEMENT AND LETTER OF CREDIT FOR WOODS ROAD OFF-SITE IMPROVEMENTS - QUIETWOOD CREEK WHEREAS, A Construction Agreement and Letter of Credit have been received from Quietwood Creek, LLC, the developers of Quietwood Creek Subdivision to perform off- site improvements on Woods Road prior to approval of the Subdivider's Agreement, Letter of Credit and Final Plat for the development; and WHEREAS, The Finance Committee has reviewed the documentation, as attached, and has recommended approval. NOW, THEREFORE, BE IT FURTHER RESOLVED That the Common Council of the City of Muskego, upon the recommendation of the Finance Committee, does hereby approve the attached Construction Agreement and Letter of Credit for Woods Road Off-Site Improvements relating to the Quietwood Creek Subdivision subject to approval of the City Attorney and City Engineer BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are hereby authorized to sign the necessary documents in the name of the City. DATED THIS 13th DAY OF June ,2000 SPONSORED BY: FINANCE COMMITTEE Ald. Mark Slocomb Ald. David Sanders Aid. Nancy Salentine This is to certify that this is a true and accurate copy of Resolution #135-2000 which was adopted by the Common Council of the City of Muskego. 1lOOjmb QUIETWOOD CREEK SUBDIVISION CONSTRUCTION AGREEMENT FOR IMPROVEMENTS IN WOODS ROAD This Agreement, made this - day of , 2000 by and between Quietwood Creek LLC (the "Subdividef) and the City of Muskego, a municipal corporation of the State of Wisconsin, located in Waukesha County, (the "City"). WITNESSETH WHEREAS, the Subdivider has proposed for approval by the City a Final Plat for Quietwood Creek Subdivision (the "Subdivision"), a description of which is attached hereto as Exhibit A, the original of which will be recorded with the Register of Deeds for Waukesha County and a copy of which is on file in the Office of the City Clerk, for which a Final Plat was approved by the City; WHEREAS, Section 236.13 of the Wisconsin Statutes provides that as a condition of plat approval, the governing body of the City may require that the Subdivider make and install certain public improvements reasonably necessary for the Subdivision and further, may require dedication of public streets, alleys or other ways within the Subdivision, to be conditioned upon the construction of said improvements according to municipal specifications without cost to said municipality; and I WHEREAS, the City's Engineers, the City's Public Works Committee. Public Utility Committee I and Finance Committee have duly approved, contingent of certain other approvals, Subdivider's plans and specifications for subdivision improvements, and ! , @ WHEREAS, Subdivider proposes to begin construction of certain improvement within the Woods Road right-of-way prior to Final Plat approval by the Common Council, as authorized by Section 18.33(h) of the Muskego Land Division Ordinance. NOW, THEREFORE, in consideration of the covenants herein contained, the parties hereto agree as follows: SECTION I : PLATTING 1, Subdivider has submitted a Final Plat for approval by the Plan Commission and common Council of the City of Muskego. The City retains the right to approve, approve with conditions, or reject the Final Plat of Quietwood Creek Subdivision. I 2. Subdivider agrees that the execution of this Construction Agreement does not constitute approval of the Final Plat of Quietwood Creek Subdivision, Subdivider agrees that proceeding with the installation of subdivision improvements is done entirely at Subdivider's own risk. I 3. Concurrent with the approval of the Final Plat of Quietwood Creek, Subdivider shall enter into a Subdivider's Agreement with City, which shall address the Subdivider's and City's obligations relating thereto. Page 2 Ouiehvood Creek Construction Agreement DRAFT @ SECTION II : WOODS ROAD IMPROVEMENTS - ~ City shall furnish the Subdivider such permits as may be required to enter upon Woods road right-of- way and install the following described improvements in any public street or public property. Subdivider is responsible for securing any and all easements necessary to perform such work. I ! Subdivider shall entirely at its expense: I A. ROADS AND STREETS: 1 Grade and improve Woods Road in accordance with the plans and specifications attached hereto, made a part hereof and marked Exhibit “B, all in accordance with the City’s street specifications, except that no surface course of paving shall be required within Woods Road as a part of this Agreement. I E. STORM AND SURFACE WATER DRAINAGE AND GRADING: 1 Construct, install, furnish and provide facilities within the Woods Road right-of-way as approved by the City Engineer and Public Works Committee for storm and surface water, all in accordance with the plans and specifications attached hereto, made a part hereof and marked Exhibit “B The City retains the right to require the Subdivider to install additional storm drainage and erosion control I measures prior to acceptance of Woods Road improvements by the City of Muskego. 2. No grading work within the boundaries of the Final Plat is authorized by this Agreement. 1 C. SANITARY SEWER: I 1 Construct, install, furnish, and provide a complete sanitary sewage collection system within the Woods Road right-of-way, as approved by the City Engineer and the Public Utilities Committee all in accordance with the plans, specifications and drawings attached hereto as Exhibit “E 2. Complete, to the satisfaction of the City Engineer, any remaining punch list items concerning the Sanitary Sewer System within Woods Road prior to the connection of any residence to the sanitary sewer systems. 3. Televise the sanitary sewer system, repair any defects as determined by the City Engineer, and supply video tape to City of Muskego, and clean all sewer lines prior to the issuance of building permits, and acceptance of improvements by the City. I D. WATER MAIN: I 1 Construct, install, furnish, and provide without cost to City, a complete system of water supply and distribution, within Woods Road right-of-way as approved by the City Engineer and Public Utilities Committee and in accordance with the plans and specifications attached hereto as Exhibit “6 2. Apply for all necessary permits to use water from hydrants for construction permits, as may be required by the City. 2 Page 3 (luietwwd Creek Construction Agreement DRAFT 3. Complete to the satisfaction of the City any punch list items concerning the water system pribr 6 0 connection of any building to the water system. E. LANDSCAPING: I 1 Preserve existing trees inside and outside of the public right-of-way whenever practical, when installing the Subdivision improvements. 2. Remove and lawfully dispose of: (a) all old barns, outbuildings; (b) destroyed trees, brush, tree trunks, shrubs and other natural growth; (c) and all rubbish. F EROSION CONTROL MEASURES: 1 Submit to the City, an application for a Land Disturbing Permit and an Erosion Control Plan in accordance with the requirements of Section 29.06 of the City's Erosion Control Ordinance. No site disturbing activity can begin until said permit is issued by the City. 2. Construct, install, furnish and provide a complete system of Erosion Control Devices or measures in specified areas of the Subdivision, as approved by the City Engineer and attached hereto as Exhibit "B and in accordance with the plans and specifications with Chapter 29 of the City's Municipal Code. I 3. Install silt fencing in conformance with the approved plans prior to the grading and construction work. Such fences shall be maintained by the Subdivider until such time as vegetative cover is ~ 0 established in the Subdivision. No grading shall occur without a two (2) day notice to the City. 4. Install Mulching and seeding of all disturbed areas to comply with Municipal Code Chapter 29. t 5. Maintain Five Thousand Dollars ($5,000.00) from the Letter of Credit, which shall be retained until adequate vegetation is established as determined by the City Engineer A reduction of fifty percent (50%) of the Five Thousand Dollar ($5,000.00) portion of the Letter of Credit is allowable upon verification of fifty percent (50%) of disturbed areas are vegetated. If, upon a written notification by the City Engineer or Building Inspection Department of non-compliance of Chapter 29, the terms are not corrected within five (5) days, the City may utilize the Five Thousand Dollar ($5,000.00) portion I of the Letter of Credit to correct the terms of non-conformance. I SECTION 111 : TIME OF COMPLETION OF IMPROVEMENTS t The improvements set forth in Section II above shall be substantially completed by the Subdivider ! Agreement. No surface course of paving shall be required in Woods Road as a part of this Agreement. within one (1) year from signing of this Agreement or except if an earlier date is provided for in the If the improvements are not completed within twelve (12) months of the date of this Agreement, the Subdivider shall extend the Letter of Credit in a form acceptable to the City. If the City receives notice of the intention to terminate the Letter of Credit prior to completion of the final surface course pavement, such notice shall be considered a failure to complete improvements in accordance with this agreement and shall entitle the City to immediately draw against the Letter of Credit. 3 Page 4 Quietwood Creek Construction Agreement DRAFT SECTION IV : AS-BUILT CONSTRUCTION PLANS Subdivider authorizes the City to prepare all necessary as-built construction plans for improvements to be dedicated to the City. Subdivider agrees to reimburse City for all costs incurred in the preparation and distribution of as-built data, including collection of data, revisions to construction documents and upload of data to City's Geographic Information System, and City may utilize Subdividets Developers Deposit account for all charges related hereto. SECTION V : DEDICATION AND ACCEPTANCE OF IMPROVEMENTS City shall not accept the dedication of any improvements constructed under the terms of this Agreement unless and until the Final Plat and Subdivider's Agreement have been executed and recorded. The terms and conditions for the dedication and acceptance of subdivision improvements shall be addressed by the Subdivider's Agreement. SECTION VI : INSPECTION AND ADMINISTRATION FEES Subdivider shall pay and reimburse the City in advance of the signing of the Agreement, in accordance with Section 18.14 of the Land Division Ordinance and Ordinance No. 909, and at times specified herein, but in any event, no later than thirty (30) days after billing, all fees, expenses and disbursements which shall be incurred by the City prior to and following the date hereof in connection with or relative to the construction and installation of the improvements covered by Section 11, including without limitation by reason of enumeration, design, engineering, preparing, checking and review of designs, plans and specifications, supervision. inspection to insure that construction is in compliance with the applicable plans, specifications, regulations and ordinances; legal, administrative and fiscal work undertaken to assure and implement such compliance. Failure to pay or reimburse the City in a timely manner may cause the City to cease all construction inspections until such time as all anticipated or outstanding inspection and administration fees have been satisfied. SECTION VI1 : GUARANTEES: The Subdivider shall guarantee the public roads and streets, sanitary sewers, watermains, surface water drainage improvements and all other improvements described in Section 11, Items A, B, C, D. E, and F hereof, against defects due to faulty materials or workmanship provided that such defects appear within a period of one (1) year from the date of dedication and acceptance. The Subdivider shall pay for any damages to City property resulting from such faulty materials or workmanship. This guarantee shall not be a bar to any action the City might have for negligent workmanship or materials. Wisconsin law on negligence shall govern such situation. SECTION Vlll : GENERAL INDEMNITY: In addition to, and not to the exclusion or prejudice of, any provisions of this agreement or documents incorporated herein by reference, Subdivider shall indemnify and save harmless, and agrees to accept 4 Page 5 Quietwood Creek Construction Agreement DRAFT 0" tender of defense and to defend and pay any and all reasonable legal, accounting, consulting, englneertng and other expenses relating to the defense of any claim asserted or imposed upon the City its officers, agents, and employees, and independent contractors growing out of this agreement as stated above by any party or parties. The Subdivider shall also name as additional insured on its general liability insurance the City, its officers, agents, and employees, and any independent contractors hired by the City to perform service as to this Subdivision and give the City evidence of the same upon request by the City. a) Hold Harmless. The Subdivider shall indemnify and hold harmless the City, its officers, agents, independent contractors, and employees from and against all claims, damages, losses, and expenses, including attorney's fees arising out of or resulting from the performance of the Work, providing that any such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (ii) is caused in whole or in part by any negligent act or omission of the Subdivider, its officers, agents, independent contractors, and employees or anyone for whose acts any of them may be made liable, regardless of whether or not it is caused in part by a party indemnified herein. A claim for indemnification under this section shall be conditioned upon the City giving to the Subdivider, within five (5) business days of receiving the same, written notice of any such claim made against the City for which indemnification is sought, and if requested to do so by Subdivider's insurance carrier, the City shall tender the defense of such claims to the Subdivider's insurance carrier In any and all claims against the City, its officers, agents, independent contractors, and employees by the Subdivider, its officers, agents, independent contractors, employees, and anyone directly or indirectly employed by any of them or anyone for whose acts any of they may be held liable, the indemnification obligation under this section shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for the Subdivider, its officers, agents, independent contractors, employees under Workers' Compensation Acts, disability benefit acts, or other employee benefit acts. 0 b) Personal Liability of Public Officials. In carrying out any of the provisions of this Agreement or in exercising any power or authority granted to them thereby, there shall be no personal liability of the City officers, agents, independent contractors, or employees, it being expressly understood and agreed that in such matters they act as agents and representatives of the City. c) Indemnification for Environmental Contamination. The Subdivider shall indemnify, defend, and hold CITY and its officers, agents, independent contractors, and employees harmless from any claims, judgments, damages, penalties, fines, costs, or loss (including reasonable fees for attorneys, consultants, and experts) that arise as a result of the presence or suspected presence in or on the real property dedicated or conveyed to the City by, under, pursuant to, or in connection with the Plat and this Agreement (including but not limited to street right-of-way) of any toxic or hazardous substances arising from any activity occurring prior to the acceptance of all improvements. Without limiting the generality of the foregoing, the indemnification by the Subdivider shall include costs incurred in connection with any site investigation or any remedial, removal, or restoration work required by any local, State, or Federal agencies because of the presence or suspected presence of toxic or hazardous substances on or under the real property, whether the soil, groundwater, air, or any other receptor The City agrees that it will immediately notify Subdivider of the discovery of any 0 5 Page 6 Quietwood Creek Conslmuction Agreement DRAFT 0 contamination or of any facts or circumstances that reasonably indicate that sud contamination, may exist in or on the real property. The City also agrees that upon notification to Subdivider that contamination may exist, the City shall make reasonable accommodations to allow Subdivider to examine the real property and conduct such clean up operations as may be required by appropriate local, State, or Federal agencies to comply with applicable laws. SECTION IX : AGREEMENT FOR BENEFIT OF PURCHASERS: The Subdivider shall agree that in addition to the City's rights herein, the provisions of this Agreement shall be for the benefit of the purchaser of any lot or any interest in any lot or parcel of land in the Subdivision. Further, that the sale of any lot or parcel shall not release the Subdivider from completing the work on the attached Exhibits. SECTION X. CONSTRUCTION PERMITS The CITY shall. within its authority: 1 Issue such permits, adopt such resolutions, and execute such documents as may be necessary to permit the Subdivider to construct the Woods Road right-of-way improvements in accordance with the plans and specifications called for by this agreement, upon Subdividets compliance with any deposit provisions or other requirements of the applicable ordinances or regulations. 2. Cooperate with the Subdivider in obtaining similar permits, resolutions and documents as may be necessary from other authorities having jurisdiction in the premises. 3. Not make available to the Subdivider or their nominee successors or assigns, permits for the construction of single family residences unless the Final Plat and Subdividers Agreement have been executed and recorded. The availability of permits for the construction of single family residences shall be detailed in the Subdividers Agreement No. 1 for Quietwood Creek Subdivision. SECTION XII. GENERAL CONDITIONS AND REGULATIONS: All the provisions of the City's ordinances are incorporated herein by reference, and all such provisions shall bind the parties hereto and be a part of this Agreement as fully as if set forth at length herein. This Agreement and all work and improvements required hereunder shall be performed and carried out in strict accordance with and subject to the provisions of said ordinances. SECTION XIII. FINANCIAL GUARANTEES: 1 LETTER OF CREDIT: Prior to the execution of this agreement by the CITY, the Subdivider shall file with the CITY a Letter of Credit setting forth terms and conditions approved by the CITY Attorney in will be completed by the Subdivider and his subcontractors no later than one (1) year from signing the amount of $259,710.75 as a guarantee that the required plans, improvements, and approvals 6 Page 7 Quiehvood Creek Construction Agreement DRAFT 0 guarantee that all obllgations to the subcontractors for work on the Subdivision are. of the Agreement, except if another date is provided within this Agreement and as a further a) Invoices: Invoices documenting public improvements addressed and not addressed in the Letter of Credit, but attributable to the subject development shall be provided to the City at the time of the signing of this Subdividets Agreement. b) Release Of Funds From Letter Of Credit: The Subdivider shall provide CITY with a written request to the Finance Committee accompanied by: Request for Amendment to Letter of Credit form, invoices for work completed for which a release is being requested, breakdown of invoices in format of Public Improvement Cost Breakdown form, lien waivers for all work which is subject of release request. 2. DEVELOPER'S DEPOSIT: The Subdivider shall maintain a positive balance in the Developer's Deposit. No release from the Letter of Credit shall be entertained until the Developets Deposit is satisfied unless othewise authorized by the Common Council following a recommendation of the Finance Committee. 3. PRESERVATION OF ASSESSMENT RIGHTS: a) Waiver of Notice, In addition to other remedies provided to the City by this Agreement, the City shall have the right, without notice or hearing, to impose special assessments for any amount to which the City is entitled by virtue of this Agreement upon the Subdivision. This provision constitutes the Subdivider's consent to the installation by the City of all improvements required by this Agreement and constitutes the Subdivider's waiver of notice and consent to all special assessment proceedings as described in Sec. 66.60 (18), Wis. Stats. b) Remedies not exclusive. The City may use any other remedies available to it under the Agreement or in law or equity in addition to, or in lieu of, the remedies provided herein. SECTION XIV. PARTIES BOUND: Subdivider or his assignees shall be bound by the terms of this agreement or any part herein as it applies to any phase of the development. Approval by the City shall not be deemed a waiver as the ultimate responsibility for the proper design and installation of streets improvements, drive and parking areas, water facilities, drainage facilities, ditches, landscaping and all other improvements shall be the Subdividers. The fact that the City or it's engineers, or it's attorney, or it's staff may approve a specific project shall not constitute a waiver, or relieve the Subdivider from ultimate responsibility for the design, performance, and function of the Development and related infrastructure. SECTION XV. ASSIGNMENT: Subdivider shall not assign this Agreement without the written consent of the City Page 8 Quiehvood Creek Construction Agreement SECTION XVI. AMENDMENTS: DRAFT The City and the Subdivider, by mutual consent, may amend this Agreement, by written agreement between the City and the Subdivider, SECTION XVll PARTIES TO THE AGREEMENT IN WITNESS HEREOF, Subdivider has caused this Agreement to be signed by its appropriate officers and their seals to be hereunto affixed in duplicate original counterparts on the date and year first written above. A. Quietwood Creek LLC By: P~ Kenneth Servi. Member By: William W. Carity, Member STATE OF WISCONSIN ) SS 0 WAUKESHACOUNTY ) PERSONALLY came before me this - day of ,2000 P. Kenneth Semi to me known to be the person who executed the foregoing instrument and acknowledged the same. Notary Public-State of Wisconsin My Commission Expires STATE OF WISCONSIN ) SS WAUKESHA COUNTY ) PERSONALLY came before me this - day of , 2000 William W. Carity to me known to be the person who executed the foregoing instrument and acknowledged the same. Notary Public-State of Wisconsin My Commission Expires 8 Page 9 Quietwood Creek Construction Agreemenl DRAFT IN WITNESS HEREOF, City has caused this Agreement to be signed by its appropriate officers arid their seals to be hereun!o affixed in duplicate original counterparts on the date and year first written above. 8. CITY OF MUSKEGO: BY: Mark A. Slocomb, Acting Mayor BY: Jean Marenda, City CleMreasurer STATE OF WISCONSIN ) SS WAUKESHA COUNTY ) PERSONALLY came before me this ___ day of , 2000 the above named Mark A. Slocomb, Acting Mayor, and Jean Marenda, City ClerWreasurer, of the above-named municipal corporation City of Muskego, to me known to be the persons executed the foregoing instrument, and to me known to be such Mayor and City CleMreasurer of said municipal corporation. and acknowledged that they executed the foregoing instrument as such officers as the deed of said municipal corporation by its authority and pursuant to the authorization by the Common Council from their meeting on the day of ,2000 ~ Notary Public-State of Wisconsin My Commission Expires 9 e Quietwood Creek Construction Agreement DRAFT CERTIFICATION This is to certify that the foregoing is a true and correct copy of the Construction Agreement for Quietwood Creek Subdivision, Muskego, Wisconsin, as entered into on the day of by andbetween and the City Of Muskego, pursuant to the authorization by the Common Council from their meeting on the - day of 8-3 BY THE COMMON COUNCIL Jean K. Marenda, CMC City CleMreasurer SUBSCRIBED AND SWORN TO BEFORE ME this- day of I -. (Notary Public) My commission expires IO PUBLIC IMPROVEMENT COST BREAKDOWN May 19.2000 QUIETWOOD CREEK WOODS RD. UTILITIES LElTER OF CREDIT #I ROAD CONSTRUCTI~N a. Excavation to subgrade b. Stone base material c. Bituminous base course pavement d. Bituminous surface course pavement e. Concrete pavement f. Other g. Engineering Inspections #2 SITE GRADING-LANDSCAPING a. Lot grading b. Drainage ditch construction c. Retention pond construction d. Parking area construction-incl pavement e. Tree 8 shrub plantings f. Landscaping as specified by City g. Erosion control h. Engineering Inspections i. Other #3 TOPSOIL, SEEDlNGlSODDlNG a. Road ditch area b. Terrace areas - in ROW c. Drainage ditches d. Retention ponds e. Areas as specified by City f. Engineering Inspections g. Other #4 CONCRETE IMPROVEMENTS a. Curb 8 Gutter b. Sidewalk c. BlvdAraffic islands d. Ditch inverts e. Engineering Inspections f. Other Beg. Bal ADJ. BAL. - 10,000.00 10,000.00 - - - - 10,000.00 10,000.00 5,000.00 5,000.00 5,000.00 5,000.00 0 0 a #5 SANITARY SEWER SYSTEM a. Mains.risers 8 Manholes b. Laterals c. Dumping station 8 Ge:erator d. Force main e. Grinder pumps &chamber-indiv dwelling f. Engineering Inspections g. Other #6 WATER MAIN SYSTEM a. Mains, valves 8 manholes b. Hydrants & leads c. Water services d. Well & pumphouse e. Engineering Inspections f. Other #7 STORM SEWER SYSTEM a. Mains 8 manholes b. Catch basins 8 leads c. Culverts d. Drain tile e. Headwallsldischarge structures f. Engineering Inspections g. Other #8 SPECIAUMISC IMPROVEMENTS a. Street lights b. Street signs c. Signs as specified by City d. Erosion ControlNegetation Retainage #9 FEES a. City administration b. Eng. inspections (req for all LOC) c. Engineering-as built drawings for wls d. Legal e. Land acquisition f. Other TOTAL PROJECT ESTIMATE LElTER OF CREDIT AMOUNT ENGINEERING Beg. Bal ADJ. BAL. 118,902.75 118,902.75 3,135.00 3,135.00 i ., '. - - 8,000.00 8,000.00 - 130,037.75 - 130,037.75 98,473.00 98,473.00 - - - - - - 6,000.00 6,000.00 - 104,473.00 - 104,473.00 - 5,000.00 5,000.00 5,000.00 5,000.00 1,000.00 4,200.00 1,000.00 4,200.00 - 5,200.00 5,200.00 259,710.75 - 18.2oa.oo CREDlT NO. Amount: $259.710.75 DATE Applicant: Quietwood Creek LLC 12720 Wen North Avenue Bmkfield WI 53005 Beneficiary: City of Muskego Post office Box 749 W182 S8200 kine Ave. Muskego, WI 53 150-0149 0 Dear Sirs: We hereby ssue this irrevocable documentary crdt in your favor which is available by beneficiary's draft($ at sight draw on North Shore Bank FSB. Each Draft ammpanyng documents must state "Drawn Under North Shore Bank. FSB. Dwumentap Cralit No.-. This Standby Credit is to provide a guarantee to the City of Muskego for the performance of Applicant obligations under that certain agreement dated -, behveen the City of Muskego and Applicant. DRAFTS ARE TO BE ACCOMPANlED BY: A statement signed by the Mayor of the City of Muskego stating that Applicant has hled to complete the construction of subdivision improvements in accordance with said Agreement or otherwise comply with the obligations of the Agreement. Said statement shall set forth the estimated amount necessary for the City of Muskego to complete such improvements or othenvjse comply with the obligations of the Agrement. SPECIAL CONDITIONS: This Standby Cdt will terminate on the - day of- provided. however, North Shore Bank FSB shall gve written notice to the beneficiary of its intention to termjnate rh~s standby credit at nin~ (90) days prior to the- day of , After said date. (his letter of credit can only tetmjnate upon ninety (90) days wktcn notice to the beneficiary. 1 Continued on Page Two (2) which is an integral part of this Standby Crdt Page 2, An uaegral part of Stqdby Credit NO. It is hereby agreed by all parties hereto that the reference to "Agreeman" is for identification purposes only and such reference shall not be construed in any manner to required North Shore Bank FSB., to inquire into its terms and obligations. We encourage with you that drafts dram under and in compliance with the terms of this credit will be duly honored if presented on or before the expiration date. This on& Standby Credit must be submitted to us together with any drawings hereunder for our endorsement of any payments effected by us andor for cancellation. Very Truly Yours, North Shore Bank FSB BY