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In event of breach by Developer, City may take over the work and <br />prosecute the same to completion by any method the City deems advisable. <br />Said work shall be for the account and at the expense of the Developer. <br />Developer shall be liable to the City for any excess costs or damages <br />suffered by the City. <br /> <br /> 7. Mutual Benefit/Reimbursement District. Developer has requested <br />the formation of a Mutual Benefit/Reimbursement District in order to <br />be reimbursed for a portion of the cost of the improvements described <br />herein from the owners of undeveloped properties which will also benefit <br />from the construction of said improvements. The undeveloped properties <br />which may be determined to benefit from the improvements are shown on <br />the attached map labeled Exhibit "B". <br /> <br /> City agrees, upon receipt from Developer of satisfactory proof of <br />the actual cost of improvements and a proposal for the spread of the <br />costs based on mutual benefits, to hold the necessary public hearings <br />and make a determination as to the establishment of the District and <br />amounts of fees and reimbursements as appropriate. <br /> <br /> 8. Defects. Developer shall be liable for defects in workmanship <br />and materials on all of the above-described improvements for a period <br />of one (1) year after acceptance and as security for liability against <br />such defects, Developer shall file improvement or maintenance security <br />with the City Clerk, of a type approved by the City Attorney, in the <br />amount of 10% of the total estimated cost set forth above. <br /> <br /> 9. Worker's COmpensation. Before commencing work under this <br />contract, Developer shall take out and maintain during the course of <br />this agreement, such worker's compensation insurance as required by <br />the laws of the State of California. On failing to do so, the City <br />may procure such insurance for the Developer and the Developer shall <br />pay the cost. <br /> <br /> 10. Hold Harmless Agreement. Developer hereby agrees to, and <br />shall hold the City, its elective and appointive Boards, Commissions, <br />officers, agents, and employees, harmless from any liability for <br />damage or claims for damage for personal injury, including death, as <br />well as from claims from property damage which may arise from <br />Developer's contractors', subcontractors', agents' or employees' <br />operation under this agreement, whether such operations be by Developer <br />or by any of Developer's contractors, subcontractors, or by any one or <br />more persons directly employed by, or acting as agent for, Developer <br />or any of Developer's contractors or subContractors. Developer agrees <br />to, and shall, defend City and its elective and appointive Boards, <br />Commissions, officers, agents and employees from any suits or actions <br />at law or equity for damages caused, or alleged to have been caused, <br />by reason of any of the aforesaid operations. In addition to the above: <br /> <br /> a. That City does not, and shall not, waive any rights <br /> against Developer which it may have by reason of the <br /> aforesaid hold-harmless agreement, because of the <br /> acceptance by City, or the deposit with City by <br /> Developer of any of the insurance policies described <br /> herein. <br /> <br />-3- <br /> <br /> <br />