BAY AREA SELF STORAGE - PUBLIC IMPROVEMENT AGMT 2003

~ ! hereunder, if the City undertakes such work as described herein, City shall be entitled to declare Developer in default hereunder and draw on the letter of credit, in whole or in part, in accordance with terms thereof, for and to the extent of the cost of such work and/or such damages suffered by the City. 8. Financin>;. In the event City and the Developer enter a contract upon mutually agreeable terms providing an appropriate special assessment act for financing and improvement of streets and easements, the City may consent to the following: a. The inclusion of this commercial property and other lands within said contracts, and b. The release of improvement security as defined in Section 66499 of the Government Code, where the assessment contract has filed surety bonds for said improvements. 9. Defects. Developer shall be liable for defects in workmanship and materials on all of the above described improvements for a period of one (1) year after acceptance and, as security for liability against such defects, Developer shall file improvement or maintenance security, pursuant to section 7 above, with the City Clerk, of a type approved by the City Attorney, in the amount often (10) percent of the total estimated cost set forth above. 10. Workers' Compensation. Before commencing work under this contract, Developer shall take out and maintain during the course of this Agreement, such worker's compensation insurance as required by the laws of the State of California. If the Acting General Contractor is not the Developer, then the General Contractor will provide the City with said certificate of worker's compensation insurance prior to start of construction. On failing to do so, the City may procure such insurance for the Developer and the Developer shall pay the cost. 11. Hold Harmless Agreement. Developer hereby agrees to and shall hold City, its elective and appointive Boards, Commissions, officers, agents, and employees, harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims from property damage which may arise from Developer's contractors', subcontractors', agents', or employees' operation under this Agreement, whether such operations be by Developer or by any of Developer's contractors, subcontractors, or by any one or more persons directly employed by, or acting as agent for, Developer or any of Developer's contractors or subcontractors. Developer agrees to, and shall, defend City and its elective and appointive Boards, Commissions, officers, agents and employees from any suits or actions at law or equity for damages caused, or alleged to have been caused, by reason of any of the aforesaid operations. In addition to the above: a. That City does not, and shall not, waive any rights against Developer which it may have by reason of the aforesaid Public Improvement Agreement 8/I4/02 Bay Area Self Storage, 3101 Valley Avenue Page 4 of 8