25F - AGMT - 605-611 EAST WASHINGTON ST LOAN

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Deed(s) of Trust. Such reimbursement obligations shall survive the cancellation of the Agency Promissory Note and/or the City Promissory Note, release and reconveyance of the Agency/City Deed(s) of Trust, issuance of a Release of Construction Covenants, and termination of this Agreement. 1900. INSURANCE, CASUALTY AND CONDEMNATION 1901. Policies Required. While any obligation of Developer under the Project Documents remains outstanding, Developer shall maintain at Developer's sole expense, with insurers either (i) admitted in California or (ii) which are not admitted to California but have an A.M. Best Rating of "A" or above and reasonably approved by the Agency/City, the following policies of insurance in form and substance reasonably satisfactory to the City Attorney: [subject to Approval by City Risk Manager] (a) worker's compensation insurance and any other insurance required by law in connection with the construction; (b) prior to commencement and following completion of the construction, fire and hazard "all risk" insurance covering 100% of the replacement cost of the Improvements in the event of fire, lightning, windstorm, vandalism, malicious mischief and all other risks normally covered by "all risk" coverage policies in the area where the Property is located (including loss by flood if the Property is in an area designated as subject to the danger of flood); (c) upon commencement of the construction and at all times prior to completion of the construction, builder's risk-all risk insurance covering 100% of the replacement cost of all Improvements (including offsite materials) during the course of construction in the event of fire, lightning, windstorm, vandalism, earthquake, malicious mischief and all other risks normally covered by "all risk" coverage policies in the area where the Property is located (including loss by flood if the Property is in an area designated as subject to the danger of flood); (d) public liability insurance in amounts reasonably required by Agency/City from time to time, and in no event less than $1,000,000 for "single occurrence;" (e) property damage insurance in amounts reasonably required by the Agency/City from time to time, and in no event less than $1,000,000; and (f) any other insurance reasonably required by Agency/City. All such insurance shall provide that it may not be canceled or materially modified without thirty (30) days prior written notice to Agency/City. The policies required under subparagraphs (b) and (c) shall include a "lender's loss payable endorsement" (Form 438BFU) in form and substance satisfactory to Agency/City, showing the Agency and the City as encumbrance, The Agency and the City shall be named as an additional insured(s) in the policies required under subparagraphs (d) and (e). Certificates of insurance for the above policies (and/or original policies, if required by Agency/City) shall be delivered within ten (10) days after demand therefore, and prior to start of any construction work All policies insuring against damage to the Improvements shall contain an agreed value clause sufficient to eliminate any risk of co-insurance. No less than thirty (30) days prior to the expiration of each policy, Developer shall deliver to Agency/City evidence of renewal or replacement of such policy reasonably satisfactory to City Attorney. 53 25F-59