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spouses pursuant to 20 CFR part 1010 and the regulations implementing priority of service for veterans and eligible spouses in Department of Labor job training programs under the Jobs for Veterans Act published at 73 Fed.Reg. 78132 on December 19, 2008. U. CONTRACTOR agrees that any equipment or software purchase must be pre- approved in writing by the CITY. Any equipment purchased with the funding hereunder shall remain the property of the City of Santa Ana upon termination of this Agreement. II. CITY'S OBLIGATIONS A. CITY agrees to pay to CONTRACTOR when, if and to the extent federal funds are received under the provisions of the Act a sum not to exceed Three Hundred Sixteen Thousand Six Hundred Dollars ($316,600) for CONTRACTOR'S performance in accordance with the payment schedule attached hereto as "Exhibit E" during the period of this Agreement. Said sum shall be paid after CITY receives invoices submitted by CONTRACTOR as provided hereinabove. B. CONTRACTOR has the ability to adjust line item amounts in the budget with the approval of the Executive Director, so long as the total Budget amount does not increase. C. CITY agrees to provide for on-site monitoring reviews of said program operation at least twice annually. In addition, monthly desk-top reviews of pertinent information will be conducted. D. CITY has the right to de-obligate the funds hereunder and take such funding back from CONTRACTOR due to any of the following reasons: (a) lack of performance by CONTRACTOR; (b) lack of fiscal accountability of CONTRACTOR; or (c) decrease in available funding. III. TIME PERIOD OF AGREEMENT The term of this Agreement shall commence on December 1, 2011, and all duties arising under this Agreement shall have been performed by November 30, 2015. The term of this Agreement may be extended by a writing executed by the City Manager and the City Attorney. IV. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. Page 5 of 15