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the Maintenance Bond one year after the recordation of the Notice of Completion provided all warranty work is acceptable to the City. 9. Financing. In the event City and the Subdivider 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 tract 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. 10. Defects. Subdivider shall be liable for defects in workmanship and materials on all of the above described improvements and, as security for liability against such defects, Subdivider shall file improvement or maintenance security with the City Clerk,of a type approved by the City Attorney, in the amount of ten(10)percent of the total estimated cost set forth above for a period of one(1)year after City Council acceptance. 11. Workers'Compensation. Before commencing work under this contract, Subdivider 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 Subdivider,then the General Contractor will provide the City with said certificate of worker's compensation insurance prior to start of construction. 12. Hold Harmless Agreement. Subdivider hereby agrees to and shall indemnify, defend and hold harmless the City, its elective and appointive officials,Commissions,officers,agents, and employees(collectively the"Indemnities"),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, or allege to arise, from Subdivider's, Subdivider's contractors', subcontractors', agents', or employees'activities under this Agreement in performance of the work on the site. In addition to the above: A. That City does not,and shall not,waive any rights against Subdivider which it may have by reason of the aforesaid hold-harmless agreement, because of the acceptance by City,or the deposit with City by Subdivider,of any of the insurance policies described herein. B. That the aforesaid hold-harmless agreement by Subdivider shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of the work performed by Subdivider, Subdivider's contractors', subcontractors', agents', or employees'pursuant to this Agreement,regardless of whether or not City has prepared, supplied or approved of,plans or specifications for the work, or regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. Subdivision Agreement Tract 8245—Meritage of California,Inc. Page 5 of 8