KOTTINGER GARDENS PHASE 1 - AFFORDABLE HOUSING LOAN AGMT

Developer on the Project shall maintain a comprehensive automobile liability coverage in the amount of Two Million Dollars($2,000,000), combined single limit including coverage for owned and non-owned vehicles. Automobile liability policies shall name the Indemnitees as additional insureds. (c) Developer shall furnish to City evidence satisfactory to City that Developer(if it has any employees)and any contractor with whom Developer has contracted for the performance of work on the Property or otherwise pursuant to this Agreement, carries statutory Workers' Compensation insurance and Employer's Liability insurance in a minimum amount of One Million Dollars($1,000,000) per accident. (d) Upon commencement of construction work and continuing until issuance of the final certificate of occupancy or equivalent for the Project, Developer and all contractors working on behalf of Developer shall maintain a policy of builder's all-risk insurance in an amount not less than the full insurable cost of the Project on a replacement cost basis naming City as loss payee. (e) Developer shall maintain property insurance covering all risks of loss (other than earthquake), including flood (if required) for 100%of the replacement value of the Project with deductible, if any, in an amount acceptable to City, naming City as loss payee. (f) Companies writing the insurance required hereunder shall be licensed to do business in the State of California. Insurance shall be placed with insurers with a current A.M. Best's rating of no less than A: VII. The Commercial General Liability and comprehensive automobile policies required hereunder shall name the Indemnitees as additional insureds. Builder's Risk and property insurance shall name City as loss payee as its interests may appear. (g) Prior to commencement of construction work, Developer shall furnish City with certificates of insurance in form acceptable to City evidencing the required insurance coverage and duly executed endorsements evidencing such additional insured status. The certificates shall contain a statement of obligation on the part of the carrier to notify City of any material adverse change, cancellation, termination or non-renewal of the coverage at least thirty (30)days in advance of the effective date of any such material adverse change, cancellation, termination or non-renewal. The additional insured endorsements for the general liability coverage shall use Insurance Services Office (ISO) Form No. CG 20 09 11 85 or CG 20 10 11 85, or equivalent, including(if used together) CG 2010 10 01 and CG 2037 10 01; but shall not use the following forms: CG 20 10 10 93 or 03 94. Upon request by City's Risk Manager, Developer shall provide or arrange for the insurer to provide within thirty(30) days of the request, certified copies of the actual insurance policies or relevant portions thereof. (h) If any insurance policy or coverage required hereunder is canceled or reduced, Developer shall, within five (5)days after receipt of notice of such cancellation or reduction in coverage, but in no event later than the effective date of cancellation or reduction, OAK#4822-6539-6013 v6 36