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h. Zoning. Contractor has not requested, applied for, or given its consent to, <br /> and warrants that there are no pending requests for zoning variances or changes <br /> with respect to the Property or its zoning. Contractor further warrants that it will <br /> not give its consent to or request any zoning variances or changes with respect <br /> to the Property or its zoning without the written consent of Owner. <br /> 13. Termination for Permitting Issues: Contractor, at any time before the <br /> commencement of construction of the Reservoir or any Cell, may terminate this <br /> Construction Agreement as to any Cell only in the event Contractor is not able to <br /> obtain the necessary permits from governmental authorities having jurisdiction <br /> over the Property to permit the mining of sand and gravel for the Cell. In the <br /> event Contractor is unable to acquire necessary permits or unable to complete <br /> construction of the water storage facilities upon the Property, in addition to any <br /> other remedies available to the Owner, the Owner at its sole discretion may, <br /> subject to any applicable terms of this Construction Agreement, seek and <br /> complete permitting and construction of water storage facilities upon the <br /> Property. In the event of Termination of this Construction Agreement by <br /> Contractor as to a Cell, the following requirements shall apply: <br /> a. Contractor shall give notice to Owner that it is unable to obtain the <br /> necessary permits and finds it necessary to terminate this Construction <br /> Agreement as to a particular Cell. <br /> b. Within thirty (30) days after such notice is given by Contractor, the Owner <br /> shall receive possession of the Cell and Contractor shall have no further rights to <br /> the sand, gravel and other minerals in the Cell. <br /> 14. Default: <br /> a. In the event Owner is in default prior to Delivery of the water storage, <br /> Contractor shall have the right to retain all amounts paid to Contractor, and to <br /> recover amounts otherwise due from Owner. Contractor shall have the right to <br /> seek damages incurred as a result of Owner's Default. <br /> b. In the event Contractor is in default prior to Delivery of the water storage, <br /> or if the Reservoir is not delivered prior to December 31, 2021, Contractor shall <br /> be deemed in Default and' relinquish possession of the Property and the <br /> remaining sand, gravel and other mineral rights to the Owner. Owner shall have <br /> the sole right to renegotiate a later delivery date if it is in the Owners best <br /> interest. Contractor shall have the right to retain all amounts paid to Contractor, <br /> and to recover amounts otherwise due from Owner, for the developed, approved <br /> and delivered Reservoir or completed Cells at the time of default based on the <br /> acre foot price as stated in Paragraph 1 of this Construction Agreement. <br /> 15. Proof, Title Defects, Resolution of Title Defects and Deeds: <br /> Construction Agreement—Zadel(v.4-24-08) <br /> 19 <br />