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3. CONSTRUCTION PERIOD <br />HABITAT shall complete construction of thirty-six units no later than three years <br />from the date the last party signs this Agreement (the "Effective Date"). The <br />development of the units will be phased so as to construct no fewer than 12 units <br />per year (commencing on the Effective Date) over the three-year period. <br />Completion of the construction shall be evidenced by the issuance of a <br />certificate of occupancy by the CITY to HABITAT. City agrees to proceed <br />diligently with the work of improvement (off-site improvements) which City has <br />agreed to construct and complete same in a timely fashion. <br />4. RELATIONSHIP OF PARTIES <br />It is expressly understood that this is an agreement between three (3) <br />independent entities and that no agency, employee, partnership, joint venture or <br />other relationship is established by this Agreement. The intent of CITY, <br />AGENCY, and HABITAT is to create an independent relationship. <br />5. HOLD HARMLESS <br />HABITAT shall indemnify and save harmless the AGENCY, its Board, the CITY, <br />its Council, and their respective officers, boards, commissions, agents and <br />employees (collectively, "Indemnities") from all claims, suits or actions of every <br />name, kind and description, brought for, or on account of, injuries to or death of <br />any person, including HABITAT, or damage to property of any kind whatsoever <br />and to whomsoever belonging, including but not limited to, the concurrent <br />passive negligence of the AGENCY, its Board, the CITY, its Council, and their <br />respective officers, boards, commissions, agents, and employees, resulting from <br />the performance of any work required by this Agreement of HABITAT, its <br />officers, agents, employees and/or servants, provided that this shall not apply to <br />injuries or damage for which Indemnities, or any one of them have been found <br />in a court of competent jurisdiction to be solely liable by reason of its own <br />negligence or willful misconduct. <br />The duty of the HABITAT to indemnify and save harmless, as set forth herein, <br />shall include the duty to defend as set forth in Section 2778 of the California Civil <br />Code. <br />6. INSURANCE <br />HABITAT shall acquire and maintain Workers Compensation, employer's <br />liability, comprehensive general liability, owned and non -owned and hired <br />automobile liability insurance coverage (if applicable as indicated below) relating <br />to HABITAT's activities funded hereunder covering AGENCY's and CITY's risks <br />in form subject to the approval of the CITY and AGENCY Attorney. The <br />Acquisition - hl 3 <br />FXS:fs <br />04/14/00 <br />