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<br />7. <br /> <br />equipment or workmanship, Contractor agrees, upon receipt of notice from City, <br />and without expense to City, to promptly repair or replace such material or <br />workmanship and/or correct any and all defects therein. If Contractor, after such <br />notice, fails to proceed promptly to comply with the terms of this guarantee, City <br />may perform the work necessary to effectuate such correction and recover the <br />cost thereof from Contractor or his sureties. <br /> <br />Any and all other special guarantees which may be applicable to definite parts of <br />the work under this Agreement shall be considered as an additional guarantee <br />and shall not reduce or limit the guarantee as provided by Contractor pursuant to <br />this paragraph during the first year of the life of such guarantee. <br /> <br />Contractor hereby agrees to indemnify and save harmless City, its Council, <br />officers, boards, commissions, agents and employees, as well as Shapell <br />Industries, Electronic Arts, Inc., and Hastings of Redwood Shores Home Owners <br />Association of and from any and all claims, suits or actions of every name, kind <br />and description which may be brought against City, its Council, officers, boards, <br />commissions, agents, or employees by reason of any injury to or death of any <br />person or damage suffered or sustained by any person or corporation, caused <br />by, or alleged to have been caused by, any act or omission to act, negligent or <br />otherwise, of Contractor, its officers, agents or employees in the performance of <br />any work required of Contractor by this Agreement. <br /> <br />The duty of Contractor to indemnify and save harmless, as set forth herein, shall <br />include a duty to defend as set forth in Section 2778 of the California Civil Code; <br />provided, however, that nothing herein shall be construed to require Contractor to <br />indemnify City, its Council, officers, boards, commissions, agents and employees <br />against any responsibility or liability in contravention of Section 2782 of the <br />California Civil Code. <br /> <br />8. <br /> <br />Contractor, at its sole cost and expense, shall acquire and maintain in full force <br />and effect throughout the term of this Agreement Workers' Compensation, <br />employer's liability, commercial general liability, and owned, non-owned and <br />hired automobile liability insurance coverage relating to Contractor's Work to be <br />performed hereunder covering City's risks in form subject to the approval of the <br />City Attorney. The minimum amounts of coverage corresponding to the <br />aforesaid categories of insurance per insurable event shall be as follows: <br /> <br />AGREEMENT <br /> <br />Page 5 of 7 <br />