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agreement at the time of its annual review. If the parties agree that the terms shall continue and provided the base amount is increased annually, beginning on October 1, 2012, by the July Construction Cost Index for Northern California region, the only item that shall be subject to negotiation is the following: 1. additional items of work; and 2. new plantings and associated maintenance. 4. Method of Payment. Progress Payments —As of the twentieth day of each month, Contractor may submit for review a request for progress payment, listing the amount and value of work actually performed during the preceding month, or part thereof. Upon the Park Maintenance Superintendent's review and approval, including adjustments if any, City shall make a progress payment to the Contractor. 5. Incorporation of Contract Documents. This Contract expressly incorporates all terms and conditions contained in the Miscellaneous Landscape Services proposal. In the event there is any conflict between this Contract and the Proposal, this Contract shall control. 6. Indemnification. Contractor shall indemnify, save and hold harmless from and defend the City, its officers, agents, and employees, against any and all claims, costs, demands, causes of action, suits, losses, expense or liability arising from, or alleged to have arisen, from any acts or omissions of Contractor, its agents, sub-contractors, officials or employees, in connection with the execution of the work covered by this Agreement, as it may be amended, except for the sole negligence or willful misconduct of the City. This indemnification includes any claim that the materials or equipment provided under this Agreement, or any tool, article or process used in manufacture of such tools or equipment, constitutes an infringement of any patent issued by the United States. This entire indemnification provision shall survive termination or cancellation of this Agreement. 7. Insurance. During the tem of this Agreement, Contractor shall maintain at its own cost and expense the following insurance coverage with insurers with an A.M. Best's rating of no less than A:V I L a. General Liability and Bodily Injury Insurance. A commercial general liability insurance for at least $1,000,000 combined limit for bodily injury and property damage and provide that the City, its officers, employees and agents are named additional insureds under the policy. The policy shall state in writing either on the Certificate of Insurance or attached rider thereof that this insurance will operate as primary insurance for work performed by Contractor and its subcontractors, and that no other insurance effected by City or other named insured will be called on to cover a loss. b. Automobile Liability Insurance. Automobile liability insurance not less than $1,000,000 per person/per occurrence.