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4.1.1. Maintenance Repair Payments. The CITY shall pay 7-H for Corrective Repairs and Capital Maintenance Repairs and Engineering/Technical Services as described in paragraph 3.6 and ATTACHMENT "B" to this Agreements. Payment shall be made to 7-H upon completion of work described in the approved "Work Authorization" as described in paragraph 3.6 of this AGREEMENT. Payment for approved work shall be made to 7-H on the fifteenth of the month following the month the work was performed. 4.1.2. Overtime Emergency Calls. The City shall pay 7-H at a rate of time and one half for all sewer collection system and pump station emergency calls and work performed by 7-H employees in excess of eight (8) hours per day on Monday, Tuesday, Wednesday, Thursday and Friday of each week period. 7-H shall pay the regular time and overtime rate for its employees on Saturday and Sunday of each week period. 4.1.3 Basis for Compensation Increase. The base Annual Lump sum Contract Cost shall be adjusted during the term of the AGREEMENT only under the following criteria; Changes or mandates initiated during the term of the AGREEMENT by the Regional Water Quality Control Board through special orders or a change of current Order Change of scope that includes changes or additions to the current FACILITY. Additions to the Waste Spray Field System beyond the systems listed in ATTACHMENT "A" to this AGREEMENT. Additions to the Sewer Collection System beyond the systems listed in ATTACHMENT "A" to this AGREEMENT. Annual adjustment for Consumer Price Index, San Francisco, Oakland, San Jose index. 4.2 Licenses. CITY shall maintain existing easements, FACILITY licenses and equipment warranties for the mutual benefit of both parties. 4.3 Insurance. CITY shall purchase and ensure the standard fire insurance polices are maintained including extended coverage for the replacement cost of FACLILITY. Such polices shall name 7-H as an additional insured according to its insurable interest under these polices during the term of AGREEMENT. Notwithstanding the indemnification provision of AGREEMENT, 7-H shall not be liable to CITY for the loss, damage, or destruction which is covered by such polices or which would be covered by such polices but for the fact that the amount thereof exceeds policy limits, whether such loss, damage, or destruction arises under contract, tort or otherwise. CITY and its insurance carrier shall waive subrogation rights against 7-H and provide 7-H with certificate to that effect. 7-H Technical Services Group Contract for Operation and Maintenance Services Page 9 of 12