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policies issued pursuant to these regulations. The Subrecipient further agrees to utilize funds <br /> available under this Agreement to supplement rather than supplant funds otherwise available. <br /> VII. GENERAL CONDITIONS <br /> A. General Compliance <br /> The Subrecipient agrees to comply with all applicable federal, state and local laws and <br /> regulations governing the funds provided under this contract. <br /> B. Independent Contractor <br /> Nothing contained in this agreement is intended to, or shall be construed in any manner, <br /> as creating or establishing the relationship of employer/employee between the parties. <br /> The Subrecipient shall at all times remain an independent contractor-with respect to the <br /> services to be performed under this Agreement. The City shall be exempt from payment <br /> of all unemployment compensation, FICA, retirement, life and/or medical insurance and <br /> workers' compensation insurance as the Subrecipient is an independent Subrecipient. <br /> C. Hold Harmless <br /> The Subrecipient shall hold harmless, defend and indemnify the City from any and all <br /> claim, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient <br /> performance or nonperformance of the services or subject matter called for in this <br /> Agreement. <br /> D. Worker's Compensation <br /> The Subrecipient shall provide workers' compensation insurance for all employees <br /> involved in the performance of this contract. - <br /> E. Insurance and Bonding � <br /> The Subrecipient shall carry sufficient insurance coverage to protect eontract assets from <br /> loss due to theft, fraud and/or undue physical damage. Although th� City pays out on a <br /> reimbursement basis, exception can be made under special circumstances. Under those <br /> circumstances, and as a minimum, the Subrecipient shall purchase a blanket fidelity bond <br /> covering all employees in an amount equal to cash advances from the City. <br /> The Subrecipient shall comply with the bonding and insurance requirements of Subpart <br /> C, Financial and Program Management of OMB Circular A-110. <br /> F. Grantor Recognition - <br /> The Subrecipient shall ensure recognition of the role of the grantor agency in providing <br /> services through this contract. All activities, facilities and items utilized pursuant to this <br /> contract shall be prominently labeled as to funding source. In addition, the Subrecipient <br /> Subrecipient Agreement(Rev. OS/06/02 LJL:bb) Page 4 of 17 <br />