BLP PREDEVELOPMENT LOAN AGREEMENT FOR PLEASANTON ASSISTED LIVING

(b) Construction Drawing and Building Permit Application. The Developer shall diligently pursue completion of the construction drawings and application for all required building and construction permits. (c) Reports. Upon reasonable notice, as from time to time requested by the City, the Developer shall make oral or written progress reports advising the City on progress made and next steps to be taken by the Developer in the performance of the predevelopment tasks. Section 2.2 Insurance. The Developer shall maintain and keep in force, at the Developer's sole cost and expense, the following insurance applicable to the Development in a form acceptable to the City with evidence of such coverage provided to the City within ten (10) days of execution of this Agreement, but in no event later than the initial disbursement of Predevelopment Loan funds pursuant to this Agreement (a) Worker's Compensation insurance, in scope and amount required by law, including employer's liability coverage, with limits not less than One Million Dollars ($1,000,000) each accident. (b) Comprehensive General Liability insurance with limits not less than Two Million Dollars ($2,000,000) each occurrence each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for Contractual Liability, Personal Injury, Broadform Property Damage, Products and Completed Operations. The liability policy or policies shall state in writing either on the certificate of insurance or attached rider that this insurance will operate as primary insurance for the Developer and its officers, agents, and employees, and that no other insurance effected by the City or other named insured will be called on to cover a loss covered thereunder. The liability policy shall name the City, its council members, officers, agents, and employees as additional insured. (c) Comprehensive Automobile Liability insurance with limits not less than One Million Dollars ($1,000,000) each occurrence combined single limit for bodily injury and property damage including coverages for owned, non-owned and hired vehicles, as applicable; provided,however, that if the Developer does not own or lease vehicles for purposes of this Agreement, then no automobile insurance shall be required and the Parties shall execute a written document acknowledging that such insurance is not required. The liability policy shall name the City, its council members, officers, agents, and employees as additional insured All policies shall include provisions that the policies will not be cancelled, limited, or allowed to expire without renewal unless the City has received a minimum of thirty (30) days written notice of such cancellation, limitation, or expiration. Certificates of Insurance and Additional Insured endorsements shall be subject to approval by the City. Section 2.3 Transfers. The Developer shall not cause or permit a sale, a partial sale, assignment or conveyance, or any trust or power, or any transfer in any other mode or form of or with respect to this Agreement or the LDA (a "Transfer") without the written approval of the City. 144\105\158870.8 4