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ARTICLE IV <br />EVENTS OF DEFAULT <br />Section 4.1. Events of Default Defined. The following shall be "Events of Default" <br />under this Agreement and the term "Event of Default" shall mean whenever it is used in this <br />Agreement any one or more of the following events: <br />(1) Failure by the Developer to timely pay any ad valorem real property taxes, <br />special assessments or other City charges with respect to the Development Property. <br />(2) Failure of the Developer to observe or perform any covenant, condition, <br />obligation or agreement on its part to be observed or performed under this Agreement. <br />(3) The holder of any mortgage on the Development Property or any <br />improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of <br />any default under the applicable mortgage documents. <br />(4) If the Developer shall: <br />(a) file any petition in bankruptcy or for any reorganization, arrangement, <br />composition, readjustment, liquidation, dissolution, or similar relief under the United <br />States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or <br />(b) make an assignment for the benefit of its creditors; or <br />(c) admit in writing its inability to pay its debts generally as they become due; <br />or <br />(d) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing <br />the adjudication of the Developer as bankrupt or its reorganization under any present or <br />future federal bankruptcy act or any similar federal or state law shall be filed in any court <br />and such petition or answer shall not be discharged or denied within sixty (60) days after <br />the filing thereof; or a receiver, liquidator or trustee of the Developer, or of the Project, or <br />part thereof, shall be appointed in any proceeding brought against the Developer, and shall <br />not be discharged within sixty (60) days after such appointment, or if the Developer, shall <br />consent to or acquiesce in such appointment. <br />Section 4.2. Remedies on Default. Whenever any Event of Default referred to in Section <br />4.1 occurs and is continuing, the City, as specified below, may take any one or more of the <br />following actions after the giving of thirty (30) days' written notice to the Developer, but only if <br />the Event of Default has not been cured within said thirty (30) days: <br />(1) The City may suspend its performance under this Agreement and the TIF <br />Note until it receives assurances from the Developer, deemed adequate by the City, that the <br />Developer will cure its default and continue its performance under this Agreement. <br />(2) The City may cancel and rescind the Agreement and the TIF Note. <br />10 <br />8328812v2 <br />