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bonds to any requesting person who appears to be a potential beneficiary of bonds <br />covering payment obligations arising under any of the Contract Documents. <br />7. INDEMNITY <br />a. The Contractor shall indemnify and hold harmless to the extent permitted by law the <br />Owner and its agents and employees from and against any and all claims, damages, losses <br />and expenses, including attorney's fees, arising out of or resulting from the performance or <br />nonperformance of the Work, provided that any such claim, damages, loss or expense (A) <br />is attributable to bodily injury, sickness, disease or death or injury to, or destruction of, <br />property, including the loss of use resulting therefrom; and (B) is caused in whole or in <br />part by any breach of any provision of the Agreement or by any negligent or wrongful act <br />or omission of the Contractor, any Subcontractor, or supplier of the Contractor, anyone <br />directly or indirectly employed by .any of them or anyone for whose acts any of them may <br />be liable. The indemnification obligation under this paragraph shall not be limited in any <br />way by any limitation of the amount or type of damages, compensation or benefits payable <br />by or for the Contractor or any subcontractor under workers' compensation acts, disability <br />benefits acts or other employee benefit acts. <br />b. The Contractor shall indemnify and hold harmless Owner from any lien of whatever type <br />through the purchase of appropriate bonds and insurance as designated in Section 6 above. <br />c. Upon completion of the Work the Contractor shall execute an affidavit stating there are no <br />unpaid debts for any work that has been done or materials that have been furnished to the <br />Project prior to and as of the date of substantial completion and further stating that <br />Contractor shall indemnify, save and protect Owner and Owner's lender, if any, harmless <br />from and against any and all claims, liabilities, losses, damages, causes of action, and <br />expenses (including court costs and reasonable attorney's fees related thereto) arising out <br />of, in connection with, or resulting from any such debts and liens in a form and substance <br />mutually acceptable to Owner and Contractor. <br />d. By executing this Agreement Contractor agrees to abide by and be bound by the <br />indemnification provisions of Section 7(c) above. <br />8. DISPUTE RESOLUTION AND GOVERNING LAW <br />a. Owner and Contractor agree that should a dispute arise as to the terms of the Contract <br />Documents the architect shall serve as the initial decision-maker, unless there is no <br />architect retrained on the project related to the Work. Owner and Contractor further agree <br />as follows: <br />i. If there is no architect retained for the Work, Owner and Contractor agree, prior to <br />the initiation of any civil litigation, to submit to mediation by agreeing on an <br />individual to serve as mediator to mediate the dispute. <br />ii. Should the Owner and Contractor fail to mutually agree on an individual to serve as <br />mediator Owner may select a mediator to mediate the dispute. <br />iii. Any mediator selected under this section shall be an attorney licensed to practice <br />law in the State of North Carolina and shall be generally recognized as having <br />experience in mediating construction disputes. <br />iv. Owner and Contractor agree to equally share in the cost of a mediator selected <br />under this section. <br />Revised December 2010 <br />