VALLEY BUSINESS ASSOCIATES - STREET IMPROVEMENT AGREEMENT

d. Bonds of a duly authorized surety company covering all or a portion of said improvements required herein where a contract for improvements has been let through an assessment district proceeding, and where said bonds have been filed with the City Clerk prier to the execution of this agreement, as a Hart o he existing improvement district proceedings. One bond shall be in the amount of 100% of the total estimated cost of the work for each stage of development, conditioned upon faithful performance of this agreement, and one bond in the amount of 100% of the total estimated cost of the work for each stage of development shall secure payment for labor and materials. Cash or instruments of credit shall be in an amount. not less than 100% of the total estimated cost of improvements which is as follows: $198,500.00 In event of breach by Developer, City may take over the work and prosecute the same to completion by any method the City deems advisable. Said work shall be for the account and at the expense of the Developer. Developer shall be liable to the City for any excess costs or damages suffered by the City. 7. Assessment District Credit. Developer intends to request the formation o a Specia Assessment or other Benefit District in order to be reimbursed for the cost of the project. City agrees to consider the establishment of such District(s). 8. Defects. Developer shall be liable for defects in workman- ship 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 with the City Clerk, o.f a type approved by the City Attorney, in the amount of 10% of the total estimated cost set forth above. 9. Worker's 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. On failing to do so, the City may procure such insurance for the Developer and the Developer shall pay the cost. 10. Hold Harmless Agreement. Developer hereby agrees to, and shall hol 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 -3-