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until advised by City in writing that it may do so. The Developer shall perform all of its <br />obligations hereunder and shall conduct all operations with respect to the performance <br />of the Work in a good, workmanlike and commercially reasonable manner, with the <br />standards of diligence and care normally employed by duly qualified persons utilizing <br />their best efforts in the performance of comparable work and in accordance with <br />generally accepted practices appropriate to the activities undertaken. <br /> <br /> Developer shall provide construction management services for the Work <br />through its engineer or another entity acceptable to City and work with the person <br />designated by the City to monitor the progress of the Work. <br /> <br /> 3. Security. Developer shall cause all its contractors, prior to the <br />commencement of any construction on the Project Site, to furnish to City and Agency, <br />and file with the City Clerk and Agency Secretary, a bond or instrument of credit of the <br />kind described in Section 66499, et seq. of the California Government Code, securing <br />the faithful performance of all work and the construction of the improvements mentioned <br />in this Agreement within the time herein specified. The amount of said security shall be <br />Three Million Five Hundred Seventy Five Thousand and Six Hundred Dollars <br />($3,575,600.00). Developer shall likewise cause all its contractors, prior to the <br />commencement of any construction on the Project Site, to furnish and file with the City <br />Clerk and Agency Secretary a bond, deposit, or instrument of credit of the kind <br />described in Sections 66499 et seq. of the California Government Code securing the <br />payment by Developer of all bills for labor and materials incurred in the Work and the <br />doing of all other work herein agreed to be done by Developer. The amount of said <br />security shall be Three Million Five Hundred Seventy Five Thousand and Six Hundred <br />Dollars ($3,575,600.00). The aforementioned security shall include, in addition to the <br />principal amounts, a guarantee of the payment of costs and reasonable expenses and <br />fees, including reasonable attorneys' fees, incurred by City or Agency in the event of <br />successful enforcement of such security. All bonds shall be issued by a corporate <br />surety admitted in the State of California and shall name the City and the Agency as <br />additional insureds. <br /> <br /> 4. Indemnity. Developer shall defend, protect, indemnify and hold harmless <br />the City, the Agency, and their boards, commissions, officers, agents and employees <br />from and against any and all liability, losses, damages, claims, causes of action, suits, <br />actions, expense, cost (including, without limitation, costs and fees of litigation) of every <br />nature, kind or description, which may be brought against, or suffered or sustained by, <br />City or Agency, their boards, commissions, officers, agents or employees, arising out of <br />the performance of the work described herein, to the extent caused in whole or in part <br />by any negligent act or omission of Developer, its officers, agents and employees, or <br />anyone directly or indirectly employed by an of them or anyone for whose acts any of <br />them may be liable, except where caused by the active negligence, sole negligence or <br />willful misconduct of City or Agency. Developer shall also protect, indemnify and hold <br />harmless the above-named parties for any liability from and against claims and liability <br />based upon the use of any patent or patented article by Developer in the performance <br />of the Work. Developer's duty to defend and hold harmless shall include the <br /> <br />F:Atty/Ag r/Agr. 100 <br />021903 3 <br /> <br /> <br />