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In the event of a breach by Developer of its construction obligations hereunder, if the City <br /> undertakes such work as described herein, City shall be entitled to declare Developer in default <br /> hereunder and draw on the letter of credit, in whole or in part, in accordance with terms thereof, for <br /> and to the extent of the cost of such work and/or such damages suffered by the City. <br /> 8. Financing. In the event City and the Developer enter a contract upon mutually <br /> agreeable terms providing an appropriate special assessment act for financing and improvement of <br /> streets and easements,the City may consent to the following: <br /> a. The inclusion of this commercial property and other lands <br /> within said contracts, and <br /> b. The release of improvement security as defined in Section <br /> 66499 of the Government Code,where the assessment contract has filed <br /> surety bonds for said improvements. <br /> 9. Defects. Developer shall be liable for defects in workmanship and materials on all of <br /> the above described improvements for a period of one (1) year after acceptance and, as security for <br /> liability against such defects, Developer shall file improvement or maintenance security, pursuant to <br /> section 7 above, with the City Clerk, of a type approved by the City Attorney, in the amount of ten <br /> (10)percent of the total estimated cost set forth above. <br /> 10. Workers'Compensation. Before commencing work under this contract,Developer <br /> shall take out and maintain during the course of this Agreement, such worker's compensation <br /> insurance as required by the laws of the State of California. If the Acting General Contractor is not <br /> the Developer,then the General Contractor will provide the City with said certificate of worker's <br /> compensation insurance prior to start of construction. On failing to do so,the City may procure <br /> such insurance for the Developer and the Developer shall pay the cost. <br /> 11. Hold Harmless Agreement. Developer hereby agrees to and shall hold City, its <br /> elective and appointive Boards, Commissions, officers, agents, and employees, harmless from any <br /> liability for damage or claims for damage for personal injury, including death, as well as from <br /> claims from property damage which may arise from Developer's contractors', subcontractors', <br /> agents', or employees'operation under this Agreement,whether such operations be by Developer or <br /> by any of Developer's contractors, subcontractors, or by any one or more persons directly employed <br /> by, or acting as agent for, Developer or any of Developer's contractors or subcontractors. <br /> Developer agrees to, and shall, defend City and its elective and appointive Boards, Commissions, <br /> officers, agents and employees from any suits or actions at law or equity for damages caused, or <br /> alleged to have been caused, by reason of any of the aforesaid operations. In addition to the above: <br /> a. That City does not, and shall not, waive any rights against <br /> Developer which it may have by reason of the aforesaid hold-harmless <br /> agreement, because of the acceptance by City, or the deposit with City by <br /> Developer, of any of the insurance policies described herein. <br /> Public Improvement Agreement(One of Two) 3/2/2016 <br /> xottinger Garden by MidPen Housing Corporation <br /> Page 4 of 8 <br />