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Contractor, after such notice, fails to proceed promptly to comply with the terms of this guarantee, City may perform the work necessary to effectuate such correction and recover the cost thereof from Contractor or his sureties. Any and all other special guarantees which may be applicable to definite parts of the work under this Agreement shall be considered as an additional guarantee and shall not reduce or limit the guarantee as provided by Contractor pursuant to this paragraph during the first year of the life of such guarantee. 7. Contractor hereby agrees to indemnify and save harmless City, its Council, officers, boards, commissions, agents and employees of and from any and ali claims, suits or actions of every name, kind and description which may be brought against City, its Council, officers, boards, commissions, agents, or employees by reason of any injury to or death of any person or damage suffered or sustained by any person or corporation, caused by, or alleged to have been caused by, any act or omission to act, negligent or otherwise, of Contractor, its officers, agents or employees in the performance of any work required of Contractor by this Agreement. The duty of Contractor to indemnify and save harmless, as set forth herein, shall include a duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein shall be construed to require Contractor to indemnify City, its Council, officers, boards, commissions, agents and employees against any responsibility or liability in contravention of Section 2782 of the California Civil Code. 8. Contractor, at its sole cost and expense, shall acquire and maintain in full force and effect throughout the term of this Agreement Workers' Compensation, employer's liability, commercial general liability, and owned, non-owned and hired automobile liability insurance coverage relating to Contractor's Work to be performed hereunder covering City's risks in form subject to the approval of the City Attorney. The minimum amounts of coverage corresponding to the aforesaid categories of insurance per