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3. Conducting Business Involving Relatives No relative by blood, adoption or <br />marriage of any executive or employee of CONTRACTOR will receive favorable treatment when <br />considered for enrollment in programs provided by, or employment with, CONTRACTOR. <br />4. Conducting Business Involving Close personal Friends and Associates. <br />Executives and employees of CONTRACTOR will be particularly aware of the varying degrees of <br />influence that can be exerted by personal friends and associates and, in administering this Agreement, <br />will exercise due diligence to avoid situations which give rise to an assertion that favorable treatment is <br />being granted to friends and associates. When it is in the public interest for CONTRACTOR to <br />conduct business with a friend or associate of an executive or employee of CONTRACTOR, an elected <br />official in the area or a voting or non-voting member of the Workforce Investment Board (WIB), a <br />permanent record of the transaction will be retained. <br />5. Avoidance of Conflict of Economic Interest. No executive or employee of <br />CONTRACTOR elected official in the area, or voting or non-voting member of a WIB, will solicit or <br />accept money or any other consideration from a third person, for the performance of an act reimbursed <br />in whole or part by CONTRACTOR or CITY. Supplies, materials, equipment or services purchased <br />with Agreement funds will be used solely for purposes asserted or allowed under this Agreement. No <br />voting member of the WIB will cast a vote on the provision of services or vote on any matter which <br />would provide direct financial benefit to that member or any business or organization which the <br />member directly represents. <br />6. Salary and Bonus Limitations. All Subrecipients of WIA program funds are required to <br />comply with federal requirements regarding the limitations on salary and bonus payments in <br />accordance with Public Law 109-149, Section 7013. <br />VII. <br />HOLD HARMLESS <br />A. CONTRACTOR shall indemnify and save harmless CITY, its officers, agents <br />and employees, from and against any and all damages to property or injuries to or death of any person <br />or persons, including property and employees or agents of CITY, and shall defend, indemnify and save <br />harmless CITY, its officers, agents and employees, from any and all claims, demands, suits, actions or <br />proceedings of any kind or nature, including, but not by way of limitation, workers' compensation <br />claims, resulting from or arising out of the negligent acts, errors or omission of CONTRACTOR, its <br />employees or subcontractors. <br />B. CONTRACTOR shall indemnify and save harmless CITY, its officers, agents <br />and employees, from and against any and all damages to property or injuries to or death of any person <br />or persons, including property and employees or agents of CITY, and shall defend, indemnify and save <br />harmless CITY, its officers, agents and employees, from and against any and all claims, demands, suits, <br />actions or proceedings therefore, resulting from or arising out of the intentional or malicious acts of <br />CONTRACTOR, its employees or subcontractors. <br />VIII. <br />INSURANCE <br />EXHIBIT I-B 25C-31 <br />Page 10 of 16