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to the CITY; and the CITY shall be kept fully informed of the status of the proceeding. <br /> In the event that the SUBRECIPIENT, within ten (10) days after receipt of notice from <br /> the CITY of a claim or liability which the CITY believes to be covered under this <br /> paragraph, fails to advice the CITY in writing that the SUBRECIPIENT agrees that the <br /> CITY is entitled to indemnification under this paragraph based on the claim or liability, <br /> the CITY, without waiving or prejudicing any claim or right it may have to <br /> indemnification, under this paragraph (including the recovery of legal fees and <br /> expenses), may retain its on counsel and present its own defense in connection such <br /> claim or liability. <br /> The CITY shall not settle or compromise any claim, suit, action, or proceeding in <br /> respect of which the SUB-RECIPIENT has agreed in writing that the CITY is entitled to <br /> indemnification under this paragraph shall survive the termination of the Agreement. <br /> XIX. INSURANCE AND BONDING: SUB-RECIPIENT 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 equal <br /> to any CDBG cash advances. SUB-RECIPIENT shall comply with the bonding and insurance <br /> 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: SUB-RECIPIENT agrees to exclude the following <br /> persons from participation in any aspect of this agreement: <br /> a. SUB-RECIPIENT agrees not to allow any member of,or delegate to,the United States Congress <br /> any share or part of this Agreement or to allow any benefit to arise from the same. <br /> b. SUB-RECIPIENT 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-CV program during his/her <br /> tenure or for one (1) year thereafter, will have any direct or indirect interest in any contract <br /> or subcontract, or the proceeds thereof, for the work to be performed in connections with <br /> the Project assisted under this Agreement. The SUB-RECIPIENT shall incorporate or cause to <br /> be 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 SUB-RECIPIENT. <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 will <br /> include language stating that no employee, officer, or agent will participate in the selection, <br /> award, or administration of a contract supported by CDBG funds, if that employee, officer or <br /> agent has a real or apparent conflict of interest. Conflicts of interest arise if the employee, <br /> officer, agent, the immediate family member of such a person, the partner of such a person, <br /> or an organization which employees such a person or is about to employs such a person, has <br /> any financial or other interest in or may gain a tangible personal benefit from a firm <br /> 13 <br />