PCN3, INC. (NEWHOPE LIBRARY MODERNIZATION & DELHI LIBRARY BRANCH IMPROVEMENTS)

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(i) Performance or nonperformance of the Work of Improvement by CONTRACTOR or its Subcontractors of any lower tier; (ii) Performance or nonperformance by CONTRACTOR or its Subcontractors of any lower tier, of any of the obligations under the Contract Documents; (iii) The construction activities of CONTRACTOR or its Subcontractors of any lower tier, either on the project site or on other properties; (iv) The payment or nonpayment by CONTRACTOR of any of its Subcontractors of any lower tier, for Work of Improvement performed on or off the project site; and (v) Any personal injury, property damage or economic loss to third persons related to and arising from the performance or nonperformance by CONTRACTOR or its Subcontractors of any lower tier, of the Work of Improvement. (vi) The indemnity obligations of Subcontractors provided by this Section shall be included in all subcontract documents issued by CONTRACTOR. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of CONTRACTOR against CITY or any other Indemnitee. 11. FEDERAL FUNDING REQUIREMENTS. Contractor shall comply, and ensure all subcontractors comply, with all applicable regulations, policies, guidelines and requirements of the Community Development Block Grant (CDBG) program set forth by U.S. Department of Housing and Urban Development for sub-recipients including, without limitation, the funding requirements laid out in Appendix P of the Contract Documents. Contractor's attention is specifically directed to the following, which are each incorporated herein by this reference: (i) 2 CFR Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards). (ii) Program Income—24 CFR Part 570.500(a)(1) (iii) Unused Program Income—24 CFR Part 570.503(6)(3) (iv) Transfers of Program Income—24 CFR Part 570.504(6)(2) (v) Disposition of Program Income—24 CFR Part 570.504(c) (vi) Applicability of Uniform Administrative Requirements—24 CFR § 570.502 (vii) Subpart K of the CDBG Regulations, commencing with 24 CFR § 570.600 (viii) Section 3 Requirements specified herein. (ix) Federal Contract Provisions specified herein. With respect to any conflict between such federal requirements and the terms of the Contract Documents and/or the provisions of state law and except as otherwise required under federal law or regulation, the more stringent requirement shall control. Contractor shall be subject to the Davis-Bacon Act. The federal minimum wage rates are attached hereto as Appendix 0 of the Contract Documents. When the Davis- Bacon wage rates and California prevailing wage rates differ for similar kinds of labor, the Contractor shall pay not less than the higher rate. Contractor shall additionally comply with the applicable flow down terms and conditions of the CDBG Funding Agreement, which are attached hereto as Exhibit "B", and incorporated herein by reference. Nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of CONTRACTOR against CITY or any other Indemnitee. Page3of4