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3.6.2.1 Additional named insureds: "The City of Santa Ana, its <br />elective and appointive boards, officers, agents, volunteers and employees are added as <br />additional named insureds with respect to this subject project and contract with the City." <br />3.6.2.2 Notice: "Said policy shall not terminate nor shall it be <br />canceled or the coverage reduced until after thirty (30) days written notice is given to the City of <br />Santa Ana." <br />3.6.2.3 Primary coverage: "Said policy and coverage as is afforded <br />to the City of Santa Ana, its elective and appointive boards, officers, agents, volunteers and <br />employees shall be primary insurance and not contributing with any other insurance maintained <br />by the City of Santa Ana." <br />3.6.2.4 Cross-liability/Severability of interests: "Said policy <br />provides cross -liability coverage for Developer and City and provides for severability of <br />interests." <br />3.6.3 Any and all insurance policies required hereunder shall be obtained and <br />maintained at all times from insurance companies admitted in the State of California and rated at <br />least A: VIII in Best's Insurance Guide. Any insurance maintained hereunder may be maintained <br />under blanket policies, covering other risks and properties. <br />3.6.4 Developer agrees that any policy limits specified in this Section 3.6 shall <br />be increased from time to time during the Term as reasonably requested by City in writing as <br />follows: <br />3.6.4.1 City may request no more than once in any five (5) year <br />period during the Term that the coverage limits be reviewed to set forth an increase in coverage <br />limits. <br />3.6.4.2 Upon receipt of such a request from City, Developer shall <br />consult with Developer's insurance agent and City shall consult with its Risk Manager, and the <br />insurance limits shall be increased, if appropriate, to equal the then -prevailing commercially <br />reasonable levels of insurance carried by prudent and responsible owners of similar privately - <br />owned parking facilities in Orange County. <br />3.7 Indemnity. <br />3.7.1 To the fullest extent permitted by law, Developer shall fully indemnify, <br />defend (at Developer's sole cost and expense and with legal counsel selected and approved by <br />City, in City's sole discretion), protect and hold harmless City, its elected officials, directors, <br />board members, officers, employees, contractors, volunteers, agents and attorneys (collectively <br />"City Indemnitees") from and against any and all actual claims, demands, obligations, acts, <br />causes of action, damages, costs, expenses, losses, judgments, fines, penalties and liabilities, in <br />law or in equity ("Claims"), to person or property, of every kind or nature whatsoever claimed, <br />made or suffered by any person or entity, relating to this Parking Agreement, the construction or <br />condition of the Parking Structure, or operation of the Parking Structure by Developer, or its <br />employees, agents, contractors or representatives ("Third Party Challenge"), except insofar as <br />such Claims are the result of gross negligence or willful misconduct of any City Indemnitee. <br />Developer further agrees that City may use its own legal staff or outside counsel in connection <br />with defense of any Third -Party Challenge, at the City Attorney's sole discretion, and City shall <br />Page 7 of 14 <br />55394.00049W221248.8 <br />