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the NEW SHELTER ACCOUNT, but not exceeding an amount equal to the difference <br />between total ACTUAL CONSTRUCTION COSTS incurred and MAXIMUM <br />CONSTRUCTION COSTS, shall be credited to those CITIES then obtaining SERVICES <br />from COUNTY against future charges under each such CITY'S SERVICES <br />AGREEMENT based on the same percentages that each such CITY paid of the CITIES' <br />SHARE OF MAXIMUM CONSTRUCTION COSTS. Any funds not distributed in <br />accordance with the previous sentence shall be deposited into the SHELTER <br />MAINTENANCE FUND. <br />6. Operational Commitment. Concurrent with the execution of this AGREEMENT, each <br />CITY shall enter into a new, amended SERVICES AGREEMENT with COUNTY in <br />the form attached hereto as Exhibit F (the "AMENDED SERVICES AGREEMENT "). <br />The operational cost for SERVICES owing pursuant to the AMENDED SERVICES <br />AGREEMENTS, calculated with respect to each CITY and unincorporated COUNTY <br />area, shall include, together with all other annual costs of operation of OCAC, all rental <br />costs, if any, under the Ground Lease to be entered into between COUNTY and <br />SOCCCD pursuant to the LETTER OF INTENT. All PARTIES acknowledge that the <br />division of all operational costs among the PARTIES allows for costs efficiencies and <br />operational savings to each PARTY and that each PARTY has entered into this <br />AGREEMENT and its AMENDED SERVICES AGREEMENT in reliance on such <br />shared costs and resulting savings. Each CITY, to provide assurance of such continued <br />cost efficiencies to each remaining PARTY, hereby expresses its commitment to <br />procure SERVICES from COUNTY for a period of 10 years and acknowledges the <br />financial burden that any breach of this commitment would have on all other <br />PARTIES. To that end the AMENDED SERVICES AGREEMENTS shall each <br />provide for a 10 year term of service. <br />7. Defaults and Remedies. <br />7.1. Defaults. The failure by any PARTY to perform any of its obligations set forth in <br />this AGREEMENT shall constitute a default of this AGREEMENT. Except as <br />required to protect against further damages, the nondefaulting PARTY may not <br />institute legal proceedings against the PARTY in default until the nondefaulting <br />PARTY has provided the defaulting PARTY notice of the default and the <br />following applicable cure period has expired: (i) the cure period for any monetary <br />default shall be fifteen (15) calendar days after the defaulting PARTY'S receipt of <br />written notice from the nondefaulting PARTY that such obligation was not <br />performed; and (ii) the cure period for any other default shall be thirty (30) days <br />25C -13 <br />