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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 5 <br />