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or liability in respect of which indemnification under this paragraph; provided, <br /> however,that the counsel retained by SUBRECIPIENT to defend the CITY shall be <br /> satisfactory to the CITY; and the CITY shall be kept fully informed of the status of the <br /> proceeding. In the event that the SUBRECIPIENT,within ten (10) days after receipt of <br /> notice from the CITY of a claim or liability which the CITY believes to be covered <br /> under this paragraph,fails to advice the CITY in writing that the SUBRECIPIENT <br /> agrees that the CITY is entitled to indemnification under this paragraph based on the <br /> claim or liability,the CITY, without waiving or prejudicing any claim or right it may <br /> have to indemnification, under this paragraph (including the recovery of legal fees <br /> and expenses), may retain its on counsel and present its own defense in connection <br /> such claim or liability. <br /> The CITY shall not settle or compromise any claim, suit, action, or proceeding in <br /> respect of which the SUBRECIPIENT has agreed in writing that the CITY is entitled to <br /> indemnification under this paragraph shall survive the termination of the <br /> Agreement. <br /> XIX. INSURANCE AND BONDING:SUBRECIPIENT shall carry sufficient insurance coverage to <br /> protect contract assets from loss due to theft,fraud, and/or undue physical damage, and as <br /> a minimum shall purchase a blanket fidelity bond covering all employees in an amount <br /> equal to any CDBG cash advances. SUBRECIPIENT shall comply with the bonding and <br /> insurance requirements of the Omni Circular 200.310 and 200.325, Insurance and Bonding <br /> requirements. Proof of insurance and bonding shall be provided to the City. <br /> XX. NON-PARTICIPATION BY CERTAIN PERSONS: SUBRECIPIENT agrees to exclude the following <br /> persons from participation in any aspect of this agreement: <br /> a. SUBRECIPIENT agrees not to allow any member of, or delegate to,the United States <br /> Congress any share or part of this Agreement or to allow any benefit to arise from the <br /> same. <br /> b. SUBRECIPIENT agrees that no officer, employee, designee, agent, or consultant of the CITY <br /> or the SUBRECIPIENT or member of the governing body of the CITY who exercises any <br /> functions or responsibilities with respect to the CITY's CDBG program during his/her tenure <br /> or for one (1)year thereafter,will have any direct or indirect interest in any contract or <br /> subcontract, or the proceeds thereof,for the work to be performed in connections with the <br /> Project assisted under this Agreement.The SUBRECIPIENT shall incorporate or cause to be <br /> incorporated in all such contracts or subcontracts a provision prohibiting such interest in <br /> conformance with the provisions of and pursuant to the purposes of this sections.The <br /> provisions of 24 CFR § 570.611, "Conflict of Interest" shall apply to the SUBRECIPIENT. <br /> c. SUBRECIPIENT further agrees to maintain written standards of conduct covering conflicts of <br /> interest, as outline in the Omni Circular§ 200.318(c)(1) &(2).These standards of conduct <br /> will include language stating that no employee, officer, or agent will participate in the <br /> 13 <br /> EXHIBIT A <br /> � <br />