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19-147 Maintenance Agreement, Apple Park, APN 316-06-061, 316-06-062, 316-06-063, 316-06-064, 316-06-065, 316-07-049 24283594 Regina Alcomendras Santa Clara County - Clerk-Recorder 09/18/2019 02:21 PM Titles: 1 Pages: 19 RECORDING REQUESTED BY: Fees: 0.00 Taxes: 0 Total: 10,00 City of Cupertino WHEN RECORDED,MAIL TO: City Clerk's Office City of Cupertino 10300 Torre Avenue Cupertino, CA 95014-3255 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) NO FEE IN ACCORDANCE WITH GOV. CODE 27383 MAINTENANCE AGREEMENT Apple Park APN 316-06-061, 316-06-062, 316-06-063, 316-06-064, 316-06-065, & 316-07-049 I Original 0 For Fast Endorsement a RECORDED AT THE REQUEST OF: ) City of Cupertino ) WHEN RECORDED RETURN TO: ) City Clerk's Office ) City of Cupertino ) 10300 Torre Avenue ) Cupertino,CA 95014-3255 ) SPACE ABOVE FOR RECORDER'S USE ONLY MAINTENANCE AGREEMENT FOR NON-STANDARD AND PRIVATE FACILITIES Apple Park APN 316-06-061,316-06-062,316-06-063,316-06-064,316-06-065 & 316-07-049 j THIS MAINTENANCE AGREEMENT ("Agreement") is made and entered into this ° day of August 2019, by Campus Holdings, Inc. ("Declarant"), in its capacity as a wholly owned subsidiary of Apple Inc., and the City of Cupertino("City"). RECITALS: The following recitals are a substantive portion of this Agreement: A. The real property and improvements that comprise Apple Park are located at One Apple Park Way ("Project") within the City of Cupertino ("City"), County of Santa Clara, State of California. A legal description of the real property upon which the Project is located is attached hereto as Exhibit"A". B. As set forth, the provisions of this Agreement shall run with the Project and be binding j upon all owners, successors and assigns of the Project, or any portion thereof until such time that all of the Non-Standard Facilities(as defined below)installed by the Declarant have been removed from certain real property owned by the City. For purposes of this Agreement, "Non-Standard Facilities" shall refer to all facilities installed by or on behalf of Declarant which may not strictly comply with the City's standard specifications and details. Landscaping and irrigation facilities I located within the roadway medians and along the sides of the roads,between the face of curb and the limits of the right of way, are considered Non-Standard Facilities for the purposes of this agreement. The locations of Non-Standard Facilities are depicted on Exhibit`B"attached hereto. I C. The purpose of this Agreement is to specify the maintenance, repair and replacement responsibilities of Declarant and the City of certain improvements for the Project along the 1 e frontages of Wolfe Road,Homestead Road,Pruneridge Avenue,Tantau Avenue,and adjacent areas as depicted on Exhibit`B". NOW, THEREFORE the parties hereto agree as follows: 1. Covenants Running with the Land:Property Subject to Agreement: All of the real property described in Exhibit"A" shall be subject to this Agreement. It is intended that the provisions of this Agreement shall run with the land and shall be binding on all parties having or acquiring any right,title or interest in the real property described in Exhibit"A". 2. Responsibility for Cost of Repair, Replacement and Maintenance: Declarant, shall, at its sole cost and expense,maintain,repair and replace the Non-Standard Facilities depicted on Exhibit "B". Where encroachment permits were issued for the installation of Non-Standard Facilities, the Declarant shall be responsible for complying with the conditions of the permit. The Non-Standard Facilities shall not include any standard public improvements installed by or on behalf of Declarant, including all sidewalks, adjacent to the Project, which the City shall remain responsible for maintaining, replacing and repairing ("Excluded Facilities"). Declarant's obligations under this Agreement shall not include maintaining, repairing or replacing any of the Excluded Facilities. Specific Non-Standard Facilities include the following: • Irrigation(within the medians and the Frontage Area of the Project(as defined below)all as identified on Exhibit`B"); • Landscaping(within the medians and the Frontage Area of the Project all as identified on Exhibit`B"); • Calabazas Creek Trail facilities along the Frontage Area of the Project, and south along Tantau Avenue to Vallco Parkway, and along Vallco Parkway from Tantau Avenue to Calabazas Creek; • Non-standard pavement, including non-standard surface treatments; • Private sanitary sewer clean-out facilities located within the sidewalk on the west side of Tantau Avenue,north of Pruneridge Avenue as identified on Exhibit"B"; • Non-standard paints used on City owned traffic signal and street light poles; i • All trash capture facilities attached to City storm drain facilities located adjacent to the Project,and as further as identified on Exhibit"A'; • All private electrical and fiber facilities that serve the Project; • Non-standard lighting facilities, including the LED strip lighting installed on the Tantau Avenue bridge that crosses over Interstate 280; and • Any non-standard storm drain facilities that serve the Project, including pipes in the right of way that are not made of reinforced concrete materials or which are smaller in diameter than 12", including the 6" parallel storm drain lines that were constructed on Tantau Avenue. 3. Definitions of Repair, Replacement and Maintenance: The repair, replacement and maintenance to be undertaken and performed by Declarant under this Agreement shall include all . work necessary to maintain the Non-Standard Facilities in good order and repair and in a functional condition under all weather conditions. The Frontage Area of the Project shall be maintained to the standards,specifications and conditions to which they were originally constructed as evidenced by plans and specifications on file with the City of Cupertino and/or provided to Declarant. All work required under this Agreement shall be performed by qualified individuals or contractors. The "Frontage Area of the Project" is that area located on the portion of the City's property that abuts and fronts the Project, along Wolfe Road, Homestead Road, Pruneridge Avenue and Tantau 2 Avenue and the campus accessory buildings along Tantau Avenue to the face of curb line, and the roadway medians located adjacent to the Project, as shown more specifically on Exhibit`B". 4. Decisions Regarding Performance of this Agreement: Declarant shall inspect and evaluate the Non-Standard Facilities on a regular basis, but not less than twice yearly, and shall decide whether any maintenance, replacement or repair is required. Declarant shall work diligently to correct any deficiencies. The City reserves the right to inspect and evaluate the Non-Standard Facilities located in the Frontage Area of the Project to confirm that Declarant is in compliance with its obligations under this Agreement. The City shall notify Declarant in writing if the condition of any of the Non-Standard Facilities in the Frontage Area of the Project do not conform to the standards and requirements under this Agreement, and to specify the deficiencies and the actions required to be taken by Declarant to cure such deficiencies. Upon notification of any deficiency, Declarant shall have thirty(30)days from the date of receipt of notice within which to cure or commence to cure the deficiency. If the written notification states that the problem is urgent and relates to public health and safety, then Declarant shall have twenty-four(24) hours to rectify the problem. Following all applicable notice and cure periods,the City reserves the right to close { portions of public right way or to perform any applicable maintenance,replacement or repair work to the Non-Standard Facilities in the Frontage Area of the Project reasonably necessary to ensure public health and safety. 5. Indemnity: Declarant shall, to the fullest extent allowed by law, defend, indemnify, and hold harmless the City and its officers,officials,agents,employees and volunteers from and against 1 any liability, claims, actions, causes of action or demands whatsoever against any of them, including any injury to or death of any person or damage to property or other liability of any nature, whether physical, emotional, consequential or otherwise, arising out, pertaining to, or related to Declarant or Declarant's employees, officers, officials, agents or independent contractors performance of the obligations under this Agreement in the Frontage Area of the Project as delineated on Exhibit `B". These costs and expenses shall include reasonable attorneys' fees of counsel of City's choice, expert fees and all other cost and fees of litigation. This indemnity shall not include any claims, liabilities, actions, causes of action, and damages to the extent arising out of the active negligence or willful misconduct of the City's employees, agents, representatives, j contractors,vendors or consultants. 6. Insurance Requirements: Declarant shall not commence work under this Agreement until it has obtained or caused its contractors to produce an insurance certificate evidencing compliance with the insurance requirements set forth in Exhibit"C", attached hereto. 7. Notices:All notices,demands, requests or approvals to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All notices shall be sent by: (a) personal delivery, in which case notice is effective upon delivery; (b)certified or registered mail,return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt; (c) nationally recognized overnight courier, with charges prepaid or charged to the sender's account, ; in which case notice is effective on delivery if delivery is confirmed by the delivery service; or(d) postage prepaid registered or certified mail, in which case notice shall be deemed delivered on the I second business day after the deposit thereof with the U.S. Postal Service. j To Declarant: c/o Apple Inc. j One Apple Park Way, M/S 18-RE Cupertino, CA 95014 j 3 Attention: Real Estate&Development To the City: Cityof Cupertino 1 p 10300 Torre Avenue Cupertino, CA 95014 Attention: Public Works Director With a copy to: City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 Attention: City Attorney i If the City reasonably determines that an emergency response is required, the City shall immediately give verbal notice to Declarant, telephone (408) 974-6970 (Apple FSC Call Center) 24 hours a day, 7 days per week, with a follow-up written confirmation by personal delivery or electronic mail(maops@apple.com)on the same day verbal notice is given,or on the next business day if verbal notice is not given during business hours. 8. Attompy's Fees: In the event that any party institutes legal action or arbitration against j the other to interpret or enforce this Agreement, or to obtain damages for any alleged breach, the prevailing party in the action or arbitration shall be entitled to reasonable attorneys' or arbitrators' fees in addition.to all other recoverable costs, expenses and damages. Declarant is required to comply with the government claims procedures prior to instituting legal action against the City. 9. Further Documents: The parties covenant and agree that they shall execute further documents and instructions as shall be necessary to fully effectuate the terms and provisions of this Agreement. 10. Entire Agreement: This Agreement constitutes the entire agreement of the parties with respect to the subject matter contained herein and supersedes all prior agreements,whether written or oral. There are no representations, agreements, arrangements or undertakings, oral or written, which are not fully expressed herein. 11. Severability: In the event any part or provision of this Agreement shall be determined to be invalid or unenforceable under the laws of the State of California,the remaining portions of this Agreement which can be separated from the invalid, unenforceable provisions shall, nevertheless, continue in full force and effect. I 12. No Waiver: The waiver of any covenant contained herein shall not be deemed to be a continuing waiver of the same or any other covenant contained herein. 13. Recordation: It is anticipated that this Agreement shall be recorded and shall be executed and acknowledged in proper recordable form. 14. Amendment: This Agreement may be amended in whole or in part only by mutual written agreement. Any amendment shall be recorded in Santa Clara County,California. 4 Executed the day and year first above written. DECLARANT: CAMPUS HOLDINGS, INC. By: (notary acknowledgement attached) .1 Title: CITY: CITY OF CUPERTINO By: Name: t ,er— Title: �'�! � I�GCG►-c-• Approved as to Form City Attorney 5 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ss. COUNTY OF SANTA CLARA ) On August 9, 2019 before me, Erika Mego, Notary Public, personally appeared Jeff Schmidt who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ,5 : f ERIKAMEGo Notary Public-California Notary Publi W Santa Clip County i Commission#2242095 My Comm.Expires May 11,2022 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of California 1 1 County of r A C[a r o, J} On 7 L�LtS� c 7. �1`I before me, �(�r�^ c�� ��A-C, Date Here Insert Name and Title of the 6fficer personally appeared Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the pi rs (s) whose am.(s) (Ware subscribed to the within instrument and acknowledged to me that he/�/they executed the same in his/Edr/their authorized a a ft�(ies), and that by his/Ke_P/thei s.ig.natur (s) on the instrument the p.ecscr(s), or the entity upon behalf of which the er njs) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing *My LAURENSAPUOAR paragraph is true and correct. Notary Public•California Santa Santana#22 71 WITNESS my hand and official seal. Commission M 2247155 Comm.Expires Jun 22,2022 Signatur Place Notary Seal and/or Stamp Above Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Corporate Officer—Title(s): ❑ Corporate Officer—Title(s): ❑ Partner— ❑ Limited ❑ General ❑ Partner— ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian of Conservator ❑ Trustee ❑ Guardian of Conservator ❑ Other: ❑ Other: Signer is Representing: Signer is Representing: 02017 National Notary Association .. 1.Y K 45, �' _5 i.�.'�TFjdi4akl°''f��'6'•WeY.dK'k7ffi"i;':J�`�'9A� EXHIBIT"A" Legal Description of Real Property Real property in the City of Cupertino, County of Santa Clara, State of California, described as follows: PARCELS 1,2,3, 4 AND 5,AS SHOWN ON THAT CERTAIN PARCEL MAP FILED DECEMBER 19, 2014 IN BOOK 879 OF MAPS,PAGES 19-25, SANTA CLARA COUNTY RECORDS. l EXCEPTING FROM A PORTION OF PARCEL 1, THE UNDERGROUND WATER RIGHTS, WITH NO RIGHT OF SURFACE ENTRY,AS CONVEYED TO CALIFORNIA WATER j SERVICE COMPANY,A CALIFORNIA CORPORATION, BY DOCUMENT RECORDED j OCTOBER 19, 1981 IN BOOK G400, PAGE 445 OF OFFICIAL RECORDS. 1 d ALSO EXCEPTING FROM PARCEL 2,THE UNDERGROUND WATER RIGHTS, WITH NO RIGHT OF SURFACE ENTRY,AS CONVEYED TO THE CITY OF CUPERTINO,A MUNICIPAL CORPORATION, BY DOCUMENT RECORDED OCTOBER 7,2011 AS INSTRUMENT NO. 21352900 OF OFFICIAL RECORDS. ALSO EXCEPTING FROM PARCEL 3, THE UNDERGROUND WATER RIGHTS, WITH NO RIGHT OF SURFACE ENTRY,AS CONVEYED TO THE CITY OF CUPERTINO,A MUNICIPAL CORPORATION,BY DOCUMENTS RECORDED OCTOBER 7, 2011 AS INSTRUMENT NO. 21352899 AND JANUARY 26,2012 AS INSTRUMENT NO.21511710, BOTH OF OFFICIAL RECORDS. ALSO EXCEPTING FROM A PORTION OF PARCEL 5,THE UNDERGROUND WATER RIGHTS,WITH NO RIGHT OF SURFACE ENTRY,AS CONVEYED TO THE CITY OF CUPERTINO, A MUNICIPAL CORPORATION, BY DOCUMENT RECORDED JANUARY 17, 1989 IN BOOK K820,PAGE 1180 OF OFFICIAL RECORDS. APN: 316-06-061 (Affects a portion of Parcel 1), 316-07-049(Affects a portion of Parcel 1), 316- 06-062(Affects Parcel 2), 316-06-063 (Affects Parcel 3), 316-06-064(Affects Parcel 4)and 316- 06-065 (Affects Parcel 5) i i i 6 EXHIBIT"B" Non-Standard Facilities III 1 i i i 7 Exhibit "B-0" Non-Standard Facilities I I 00 rr• w •-, l :r it — _ Homestead Awpue —_ R ---_-- : -180 r ; o �= Legend(Drawing Not to Scale) - Landscape/Median areas(including irrigation) ® Non Standard pavement areas - -ONNO■ Creek trail improvements /•28 I _ N 0 - Private electrical/gas facilities Private Apple fiber Private sewer cleanout 0 Stormwater Trash Capture device(typ)s — Non-standard storm drain facilities Non-standard lighting facilities on the 280 Bridge I I � I I m ! a CD 0 n 2 °' _ rn -- ' III co�i 1 - G� —-- — a`- �- :►n - n o h Wolfe oad No olfe Road _ North Wolfe Road Noiih Wolfe Road North Wolfe oad CD _ - - - - .�,... �._--_ -_--.� ' 1 /_ On) R ( - uwi frr dd CL - o — m" — � j a Cl. I6 m cn CCD l I . CD ■ v j L � 1I f z z 0 T -o T c> z _. _. _. CD o 9" m m m In uni Z m sv f 0 m `; c cd w Q m o a ( \ I cn C N CD v n m 'm o �'11) 1 k CD O W �Z a Matchline CD Exhibit "B-2" Matchline Exhibit "B-1" • / V I - • � CD a I 1` > > < <'' < CD m m m in to (D N W yp Z I m C N N p S ^Er" S N N < N CD CD CD cn CD CL CD d La S (p IQ 00 m occ a v �; /,��C '� I mm i •1 (p ;i i= i V U)m CL _ a / v ' -tom ic�a r m �_ a my Im" CD � /n CD .-�m -�_ Ag- _.-- F 3__ i w_ � s North- antau A w _ �- � �y -_-1 ®- --- orlh T tau Avenue —.. a ven _ North Tarttau = I (p CD CD n Q. a CD < - N N a � I � � i i i i I a I x s -- _-- - s North Wolfe oad No olfe RoadCD I 11111 __� \ m U ` a %l CRY. CD n- Ail � Op /' , CD \- CR ■ a Z Z m m m ', cn N f m D to � 7 , o O m m m f v M — m m o EL EL CD a K CD N m m o _a / ` �/r V n�m CD co C m 'o U) 3 3 dCL 71: CD CL Ep CD Vl _ CD _/L 7 N r /' co s - ;i ` � w_ W O Z O a v _ I — ; D, ID ■ a 0 0 (n -U -0 -a o °z N CL I_61 N cD (D (D .�. r_n N Q J t) J 1 a am N -° 0a n N N Q "� CD N a I ? N N w cc <° co d o � 3 CD 3 CD a cD 0) l c N _ 7• I (D �• \ \ /� cn 00 CCD CD v- cn i 'm dd N.oZ-----=r0 CD E n a CD ° 0)i-. moo= m • a CD I _ cD m �^ I m w m Ia x I 6 c • _. Ta u- venue ` CO �`; • -- ' CD m or ,'tea®�s I Q S o dd I < Itor Cen�pl J t '_ a Nam' mm.' Buildin WiU _ _ ' ( ° ? ° vrl _ I° v a— m N ° N(D m fD ° a J �, n N qzgIFo�or j '� 3 0 'Nsitor Cl� .D ter c m s I — ( W.,---.fl---Psrldng StnidursFL—jr,� wm n I II I J ID �y ID i - , I i I , ■ r /,�/ .. ► ■ _ `a CD CD C1 / Z Z (n -o v -0 n z 0 0 g :3. :3. :3. 0 N N N W S n 23 N 7r (_n N Z N CD fD N 7 'CI N a CD (D(D p p�E. N N (� N 'p a `a s m m � < m `? n m m 3 20 m m o m 0 rt 0 C Q. (D Q NO M (CD EnN C n _ aD W Z Q' �. Q CD Ualabazas Creek �\ \ Vl CalabaZas Creek n� _ -- • — `� \ �\ CD UI m m and �� �' cc � m CD 7 �, I CD (D \ a nnn ���n7�nAJ�-iya, • _ xxxxxxxxxxxxxxxxx�tR - -_ - _ k � m �„` v-YXXX,aIYXNYY-Y�[YYYvv —..- _-—.- ., .. � _. n r o�ti rth antau Avenue - - — North Tent Avenue -' ortl ntsCD \.�xxxxxx _ xxx� -- o -_ 0 6 I W CCD �M rf _�__ - - - -� - - to z z _ v M -io (� 10 -io �o -soh �u rH c ,mm m=ry ®I LLJJ N `T F.•. `�\ I rrrFrr a rrrHwr T- 0 I I i i I i I EXHIBIT"C" Insurance Requirements CHI shall procure and maintain for the duration of the agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the obligations in this Agreement by CHI, its agents, representatives, employees or contractors. MINIMUM SCOPE AND LIMIT OF INSURANCE Coverage shall be at least as broad as: I 1. Commercial General Liability(CGL): Insurance Services Office (ISO)Form CG 00 01, or its substantial equivalent, on an "occurrence" basis, including coverage for liability arising from CHI's or its contractor's acts or omissions, including bodily injury (including death), property damage, personal and advertising injury, contractual liability, products and completed operations, and damage to leased premises coverage,with limits of at least$2,000,000 per occurrence and$4,000,000 in the aggregate. a Additional Insured coverage under CHI's policy shall be "primary" and will not seek contribution from City's insurance/self-insurance, and shall be at least as broad as ISO CG 20 0104 13 or its substantial equivalent. h The limits of insurance required may be satisfied by a combination of primary and umbrella or excess insurance, provided each policy complies with the requirements set forth in this Contract. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City's own insurance or self-insurance shall be called upon to protect City as a named insured. 2 Automobile Liability: ISO Form CA 00 01, or its substantial equivalent, covering all owned, non-owned and hired vehicles, with limit no less than $1,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation: As required by the State of California, with Statutory Limits, and Employer's Liability Insurance of no less than $1,000,000 per accident for bodily injury or disease, or as otherwise required by statute. If a contractor is self-insured,it must provide a Certificate of Permission to Self-Insure, duly authorized by the DIR. El N/A if box checked(Contractor provides written verification it has no employees). 8 4 Professional Liability for any design or engineering or other professional work under this agreement with limits no less than $2,000,000 per occurrence or claim, and $2,000,000 aggregate. CHI may satisfy this requirement by requiring any contractor performing such design, engineering or other professional work to maintain such insurance. 5. Builder's Risk. If, and only if, CHI is performing construction, Course of Construction insurance utilizing an"All Risk" (Special Perils) coverage form or its substantial equivalent, with limits equal to the completed value of the work and no coinsurance penalty provisions. f OTHER INSURANCE PROVISIONS The insurance policies are to contain, or be endorsed to contain,the following provisions: Additional insured Status The City of Cupertino, its City Council,officers,officials,employees,agents, servants and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of the work under this agreement, including materials, parts, or equipment furnished. Endorsement of CGL coverage shall be at least as broad CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 as applicable. i Primary Coverage For any claims related to this agreement, CHI's insurance coverage shall be "primary" and at least as broad as ISO CG 20 01 04 13 with respect to City, its officers, officials, employees and volunteers, and shall not seek contribution from City's insurance. If the limits of insurance are satisfied in part by Umbrella/Excess Insurance, the Umbrella/Excess Insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a"primary and non-contributory"basis for the benefit of City. Notice of Cancellation i Each insurance policy required shall provide that coverage shall not be canceled except on thirty (30) days-notice. CHI shall provide thirty (30) days notice of such cancellation to the City. In the event of cancellation, CHI shall promptly replace such insurance so no lapse in coverage occurs. Waiver of Subrogation Each required policy must include an endorsement providing that the carrier agrees to waive any right of subrogation it may have against City. CHI agrees to waive rights of subrogation which any insurer of CHI may acquire from CHI by virtue of the payment of any loss. CHI agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by CHI, its employees, agents and subcontractors. 9 Acceptability of Insurers Insurance must be issued by insurers authorized to do business in the State of California, and each insurer must have an A.M. Best's financial strength rating of"A" or better and a financial size rating of"VII" or better. Verification of Coverage Contractor shall furnish the City with original certificates evidencing coverage required by this contract. All certificates are to be received and approved by the City before work commences. Subcontractors CHI shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and CHI shall ensure that City is an additional insured on the CGL insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13. Special Risks or Circumstances City reserves the right to modify these requirements, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances. q Self-Insurance So long as CHI, or its parent company Apple Inc., maintains an audited net worth of $100,000,000, CHI may satisfy the insurance requirements in this Exhibit C through a program of self-insurance, self-insured retentions and/or deductibles; provided that CHI shall be responsible for losses or liabilities,including the provision of a defense,that would have been covered by a third-party insurer but for CHI's decision to self-insure such losses or liabilities. CHI shall be responsible for payment of all self-insured retentions or deductibles under such insurance. j { i d� I 10