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9. Labor Code and Prevailing Wages. Contractor shall comply with the requirements of the California Labor Code including but not limited to hours of labor, nondiscrimination, payroll records, apprentices, workers' compensation and payment of prevailing wages as determined by Director of the California Department of Industrial Relations. Contractor shall post, at each job site, a copy of the prevailing rate of per diem wages. Contractor shall forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid less than the stipulated prevailing rates for any public work done under the contract by it or by any subcontractor. 10. Independent Contractor. The Contractor is an independent contractor retained by the City to perform the work described herein. All personnel employed by the Contractor, including subcontractors, and personnel of said subcontractors, are not and shall not be employees of the City. 11. Warranty Against Defects. Contractor hereby warrants all work done under this contract against all defects in materials and workmanship for a period of 12 months following City's acceptance of said work. If any defects in materials or workmanship occur within said 12 months, Contractor shall be solely responsible for the correction of those defects. In addition, Contractor agrees to provide to the City a warranty which complies with the Warranty Requirements of the California Solar Initiative program in effect at the time of the execution of the contract, which the Contractor acknowledges provides for a longer warranty of specific materials and elements of the work. 12. Term. Time is of the essence based on the City's need to have work completed by December 2009 to qualify for State rebates pursuant to the California Solar Initiative. Contractor shall begin work in September 2009. The work shall be completed by January 2010. 13. Miscellaneous Provisions. a) Non Assignability. Contractor shall not assign, sublet, or transfer this contract or any interest or obligation in the contract, except for work to be done by subcontractor Welco Engineering, Inc., as set forth in Contractor's proposal, without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. b) Records and Audits. Contractor shall maintain all records regarding this contract and the work performed for a period of three (3) years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit. c) Conflicts of Interest. Contractor covenants that other than this contract, Contractor has no financial interest with any official, employee or other representative of the City. Contractor and its principals do not have any financial interest in real property, sources of income or investment that would be affected Page 4