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the request of Developer, City and Agency shall cooperate with and assist Developer in its defense of <br />any such claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, <br />punitive damage, or expense; provided that City and Agency shall not be obligated to incur any <br />expense in connection with such cooperation or assistance. Notwithstanding the foregoing, <br />Developer shall not be required to indemnify the Agency with respect to actions arising from the <br />proposal made by the Governor of California to eliminate redevelopment agencies. <br />1803. Reimbursement of Agency/City. Developer shall reimburse Agency/City <br />immediately upon written demand for all costs reasonably incurred by Agency/City (including the <br />reasonable fees and expenses of attorneys, accountants, appraisers and other consultants, whether the <br />same are independent contractors or employees of City) in connection with the enforcement of the <br />Loan Documents and all related matters including all claims, demands, causes of action, liabilities, <br />losses, commissions and other costs against which Agency/City is indemnified under the Loan <br />Documents. Such reimbursement obligations shall bear interest from the date occurring twenty (20) <br />days after Agency/City gives written demand to Developer and shall be secured by the Agency/City <br />Deed(s) of Trust. Such reimbursement obligations shall survive the cancellation of the Agency <br />Promissory Note and/or the City Promissory Note, release and reconveyance of the Agency/City <br />Deed(s) of Trust, issuance of a Release of Construction Covenants, and termination of this <br />Agreement. <br />1900. INSURANCE, CASUALTY AND CONDEMNATION <br />1901. Policies Required. While any obligation of Developer under the Project Documents <br />remains outstanding, Developer shall maintain at Developer's sole expense, with insurers either <br />(i) admitted in California or (ii) which are not admitted to California but have an A.M. Best Rating of <br />"A" or above and reasonably approved by the Agency/City, the following policies of insurance in <br />form and substance reasonably satisfactory to the City Attorney: <br />(a) worker's compensation insurance and any other insurance required by <br />law in connection with the construction; <br />(b) prior to commencement and following completion of the construction, <br />fire and hazard "all risk" insurance covering 100% of the replacement cost of the Improvements in <br />the event of fire, lightning, windstorm, vandalism, malicious mischief and all other risks normally <br />covered by "all risk" coverage policies in the area where the Property is located (including loss by <br />flood if the Property is in an area designated as subject to the danger of flood); <br />(c) upon commencement of the construction and at all times prior to <br />completion of the construction, builder's risk-all risk insurance covering 100% of the replacement <br />cost of all Improvements (including offsite materials) during the course of construction in the event <br />of fire, lightning, windstorm, vandalism, earthquake, malicious mischief and all other risks normally <br />covered by "all risk" coverage policies in the area where the Property is located (including loss by <br />flood if the Property is in an area designated as subject to the danger of flood); <br />(d) public liability insurance in amounts reasonably required by <br />Agency/City from time to time, and in no event less than $1,000,000 for "single occurrence;" <br />(e) property damage insurance in amounts reasonably required by the <br />Agency/City from time to time, and in no event less than $1,000,000; and <br />DOCSOC/ I469583v5/200272-0003 <br />53