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award of any subcontracts. For purposes of this Agreement, subcontracts shall <br />include but not be limited to purchase agreements, rental or lease agreements, <br />third party agreements, consultant service contracts and construction contracts. <br />5. Labor <br />Only to the extent required by the granting authority, ST. JOSEPH shall comply <br />with the provisions of the Davis-Bacon Act (40 U.S.C. §§276a to 276a-7), the <br />Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), the Contract Work Hours <br />and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for <br />federally-assisted construction subagreements, and the Hatch Act (5 USC <br />§§1501-1508 and 7324-7328). <br />ST. JOSEPH shall comply with the Federal Fair Labor Standards Act (29 USC § <br />201) regarding wages and hours of employment. None of the funds shall be used <br />to promote or deter Union/labor organizing activities. CA Gov't Code Sec. 16645 <br />et seQ. <br />B. Noncompliance <br />ST. JOSEPH understands that failure to comply with any of the above assurances <br />may result in suspension, termination or reduction of grant funds, and repayment <br />by ST. JOSEPH to CITY of any unlawful expenditures. <br />C. Compliance With Grant Assurances <br />To obtain the Grant Funds, the Grantor required an authorized representative of <br />the CITY to sign certain promises regarding the way the Grant Funds would be <br />spent ("Grant Assurances"), attached hereto as Exhibit A. By signing these Grant <br />Assurances, the CITY became liable to the Grantor for any funds that are used in <br />violation of the grant requirements. ST. JOSEPH shall be liable to the Grantor for <br />any funds the Grantor determines ST. JOSEPH used in violation of these Grant <br />Assurances. ST. JOSEPH shall indemnify and hold harmless the CITY for any <br />sums the Grantor determines ST. JOSEPH used in violation of the Grant <br />Assurances. <br />§413. Federal, State and Local Taxes <br />Federal, State and local taxes shall be the responsibility of ST. JOSEPH as an <br />independent party and not as a CITY employee. <br />V <br />DEFAULTS. SUSPENSION. TERMINATION. AND AMENDMENTS <br />§501. Defaults <br />Should ST. JOSEPH fail for any reason to comply with the contractual obligations <br />of this Agreement within the time specified by this Agreement, the CITY reserves <br />the right to terminate the Agreement, reserving all rights under state and federal <br />law. <br />9 <br />