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<br />with the work are, in the opinion of the Manager, Engineering and Construction,
<br />rendered necessary as a result of the use of inferior or defective materials,
<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 />7. Contractor hereby agrees to indemnify and save harmless City, its Council,
<br />officers, boards, commissions, agents and employees, of and from any and all
<br />claims, suits or actions of every name, kind and description which may be
<br />brought against City, its Council, officers, boards, commissions, agents, or
<br />employees by reason of any injury to or death of any person or damage suffered
<br />or sustained by any person or corporation, caused by, or alleged to have been
<br />caused by, any act or omission to act, negligent or otherwise, of Contractor, its
<br />officers, agents or employees in the performance of any work required of
<br />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. 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:
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