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in connection with, or alleged to have been caused by or to have arisen directly or indirectly in whole or in part, from or in connection with any act or omission of Owner or its employees, agents, or contractors in connection with the development, construction or installation of the Improvements and Owner's actions and obligations hereunder, including without limitation, all Claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code Sections 1726 and 1781, or relating to the failure to comply with any state or federal labor laws, regulations or standards in connection with the development, construction or installation of the Improvements, including but not limited to Prevailing Wage Laws. City does not, and shall not, waive any rights against Owner which it may have by reason of the indemnity provided hereby because of the acceptance by City, or the deposit with City of any of the insurance policies required pursuant to this Agreement. The indemnity provided pursuant to this Section shall apply regardless of whether or not City has prepared, supplied, or approved of the Plans and regardless of whether or not the insurance policies required pursuant to this Agreement shall have been determined to be applicable to any Claim. Owner waives any and all rights of any type of express or implied indemnity against the City with respect to third-party claims against Owner. Developer's indemnification obligations set forth in this Section shall not apply to Claims caused solely by the negligence or willful misconduct of one or more of the Indemnitees. The provisions of this Section 8.2 shall survive the expiration or earlier termination of this Agreement and the City's acceptance of the Improvements. 9. Notice of Breach; Default; Abandonment of Work. If Owner refuses or fails to obtain prosecution of the work of constructing and installing the applicable Lot 1 or Lot 2 Improvements, or any severable part thereof, with such diligence as will ensure its completion within the time specified, or any applicable extension thereof, or fails to obtain completion of said work within such time, or if Owner is adjudged as bankrupt, or makes a general assignment for the benefit of Owner's creditors, or if a receiver is appointed in the event of Owner's insolvency, or if Owner, or any of Owner's contractors, subcontractors, agents or employees violate any of the provisions of this Agreement, the City through its Public Works Director may serve written notice of default under this Agreement on Owner and the applicable surety or holder of other security; provided, however, notwithstanding anything to the contrary, a breach or default under this Agreement with respect to Lot 1 Improvements shall not be deemed a default under this Agreement with respect to Lot 2 Improvements or the obligations hereunder related thereto, and a breach or default under this Agreement with respect to Lot 2 Improvements shall not be deemed a default under this Agreement with respect to Lot 1 Improvements or the obligations hereunder related thereto. In the event City serves notice of default on the applicable surety, said surety shall have the duty to take over and complete the applicable Lot 1 or Lot 2 Improvements; provided, however, that if the surety, within thirty (30) days after delivery of notice of default, does not give City written notice of its intention to take over the performance of the work, and does not commence performance thereof within thirty (30) days after notice to City of such election, City may take over the work and prosecute the same to completion by any method City may deem advisable, for the account and at the 1328680-7 ~ 2