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8. BONDS
<br />Consultant shall furnish two bonds to be approved by the City, one in the amount of One
<br />Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work
<br />(Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price
<br />to guarantee payment of all claims for labor and materials furnished (Payment Bond). This
<br />Contract shall not become effective until such bonds are supplied to and approved by the City.
<br />Consultant shall, prior to the release of the performance and payment bonds or the retention
<br />payment, furnish a warranty performance and payment bond (Warranty Bond). Said Warranty
<br />Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred
<br />Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand
<br />Dollars ($10,000) or Twenty Percent (20%) of the final contract price. For projects above Five
<br />Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One
<br />Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price.
<br />9. INDEMNIFICATION
<br />Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers,
<br />agents, employees, contractors, special counsel, and representatives from liability: (1) for personal
<br />injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for
<br />personal injury, including death, and claims for property damage, which may arise from the
<br />negligent operations of the Consultant, its subcontractors, agents, employees, or other persons
<br />acting on its behalf which relates to the services described in section 1 of this Agreement; and (2)
<br />from any claim that personal injury, damages, just compensation, restitution, judicial or equitable
<br />relief is due by reason of the terms of or effects arising from this Agreement. This indemnity and
<br />hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial
<br />or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in
<br />this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant
<br />further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including
<br />fees and costs for special counsel to be selected by the City, regarding any action by a third party
<br />challenging the validity of this Agreement, or asserting that personal injury, damages, just
<br />compensation, restitution, judicial or equitable relief due to personal or property rights arises by
<br />reason of the terms of, or effects arising from this Agreement. City may make all reasonable
<br />decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing,
<br />to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity
<br />shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of,
<br />pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
<br />10. INTELLECTUAL PROPERTY INDEMNIFICATION
<br />Consultant shall defend and indemnify the City, its officers, agents, representatives, and
<br />employees against any and all liability, including costs, for infringement of any United States'
<br />letters patent, trademark, or copyright infringement, including costs, contained in the work product
<br />or documents provided by Consultant to the City pursuant to this Agreement.
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