MERCY HOUSE LIVING CENTERS (GREYSTONE HOMES 2005)

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11. All-Risk and Liabilitv Insurance. Developer shall maintain, during the term of this Agreement, (1) an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property, and (2) a comprehensive general liability insurance policy with a $1,000,000 limit of liability. The all-risk policy shall name the City as loss payee and the liability insurance policy shall name the City as an additional insured. Each policy shall contain a statement of obligation on behalf of the insurance carrier to notify the City of any material change, cancellation or termination of coverage at least 30 days in advance of the effective date of such material change, cancellation or termination. Developer shall deliver a copy of the certificate of insurance for each policy and the loss payee or additional insured endorsement, as the case may be, to the City at the close of escrow for the acquisition of the Property. Developer shall annually deliver a copy of the certificate of insurance for each policy and the loss payee or additional insured endorsement, as the case may be, to the City, signed by an authorized agent of the insurance carrier and setting forth the general provisions of coverage. The copies of the certificate of insurance and endorsements shall be delivered to the City as follows: The City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 Attention: Housing Development Services Any certificate of insurance required by this Section must be in a form, content and with an insurance company that is acceptable to the City in its sole discretion. Any insurance proceeds shall, to the extent applicable, be paid to the additional insured and, at the option of such additional insured, may be applied to any indebtedness owed to such insured or released for repair or rebuilding of the Property. Surplus insurance proceeds thereafter may be disbursed to the Developer. 12. Enforcement. 24 CFR 92.504(c)(l3). This Agreement shall be enforceable by City in accordance with the terms hereof. Failure by Developer to comply with any material provision hereof shall constitute a breach. In the event of a breach, City shall provide written notice to Developer. City may terminate this Agreement in the event Developer fails to cure any such default within 30 days after notice or in the event that Developer conveys the Property to a person who does not agree to assume the obligations of Developer under this Agreement. The foregoing provision does not apply to a transfer of the Property to HUD or to a transferee ofHUD. 5