HABITAT FOR HUMANITY OF ORANGE COUNTY (5)

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release, or(c)take such other action as City may require to release City from any obligation or liability with respect to such stop notice or claim. 8.6 Prevailing Wages. (a) Developer shall assume any and all responsibility and be solely responsible for determining whether or not laborers employed relative to the construction or installation of the project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State,pursuant to labor code sections 1720, et seq. (b) Developer, on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to any of them pursuant to Labor Code section 1781. Developer acknowledges the protections of Civil Code section 1542 relative to the waiver and release contained in this section 8.6, which reads as follows: A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. (c) By signing this Agreement, Developer knowingly and voluntarily waives the provisions of section 1542 solely in connection with the waivers and releases of this section 8.6. (d) Additionally, Developer shall indemnify,defend and hold harmless the city against any claims pursuant to Labor Code section 1781 arising from this agreement or the construction or installation of all or any portion of die project. (e) Developer represents and warrants that the Project is within the exemption of California Labor Code § 1720(c)(5)(A) ("the habitat provision")that exempts projects from being considered a"public works"project if"the project is a self-help housing project in which no fewer than 500 hours of construction work associated with the homes are to be performed by the homebuyers." 8.7 Developer's Assurance of Construction Completion. Prior to the Initial Disbursement and commencement of construction of the Improvements,Developer shall furnish to City evidence that assures Developer that sufficient monies will be available to complete the proposed construction(the"Construction Security"). The City Project Manager shall approve or disapprove the Construction Security, which approval shall not be unreasonably withheld. The amount of money available from the Construction Security shall be at least the total estimated construction cost. Subject to approval from the City Project Manager, the Construction Security may take one of the following forms: (i) Performance bond and labor and materials bond in a principal sum equal to the total estimated construction cost supplied by Contractor or subcontractors,provided said bonds are issued jointly to Developer, City and any Senior Lenders as obligees. 14 55394.00101\42414134.1