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I, <br /> 3 <br /> B. Any employee of Theatre,while engaged in the performance of any work or <br /> service required by Theatre under this Agreement,is the employee of Theatre only and not of <br /> City, and any claim that may arise under the Workers' Compensation Act and any claim made by <br /> a third party as a consequence of any negligent act or omission on the part of Theatre's <br /> employees while engaged in any of the work or service required to be performed by this <br /> Agreement, shall be the sole obligation and responsibility of Theatre. <br /> C. Theatre shall comply with all applicable provisions of the Fair Labor Standards <br /> Act and other legislation affecting its employees and the rules and regulations issued thereunder <br /> insofar as applicable to its employees, and shall at all times save City free, clear and harmless <br /> from all actions, claims, demands and expenses arising under said Act, and such rules and <br /> regulations that are or may be promulgated in connection therewith. <br /> D. Theatre assumes full responsibility for the payment of all payroll taxes,use, sales, <br /> income, or other form of taxes (such as state and City business and occupation taxes), fees, <br /> licenses, excises or payments required by any City, federal or state legislation which are now or <br /> may during the temi of this Agreement be enacted as to all persons employed by Theatre and as <br /> to all duties, activities and requirements by Theatre in performance of the work under this <br /> Agreement and Theatre shall assume exclusive liability therefor, and meet all requirements <br /> thereunder pursuant to any rules or regulations that are now or may be promulgated in connection <br /> therewith. <br /> VII. INSURANCE <br /> A. Theatre shall comply with the following conditions and procure and keep in force <br /> during the teen of this Agreement, at Theatre's own cost and expense,the following policies of <br /> insurance with companies authorized to do business in the State of Washington, which are rated <br /> at least"A" or better and with a numerical rating of no less than seven(7) by A. M. Best <br /> Company, and which are acceptable to City: <br /> 1. Workers' Compensation Insurance as required by Washington law and <br /> Employer's Liability Insurance with limits not less than$1,000,000 per occurrence. If City <br /> authorizes sublet work, Theatre shall require each subcontractor to provide Workers' <br /> Compensation Insurance for its employees,unless the Theatre covers such employees. <br /> 2. Commercial General Liability Insurance on an occurrence basis in an <br /> amount not less than$1,000,000 per occurrence and at least$2,000,000 in the annual aggregate, <br /> including but not limited to: premises/operations (including off-site operations), blanket <br /> contractual liability, broad form property damage, copyright infringement and defamation. <br /> 3. Business Automobile Liability Insurance in an amount not less than <br /> $1,000,000 per occurrence, extending to any automobile. A statement certifying that no vehicle <br /> will be used in accomplishing this Agreement may be substituted for this insurance requirement. <br /> 4. Property damage insurance covering the Center and Center personal <br /> property of not less than$1,000,000 in the aggregate. <br /> EVERETT/VILLAGE THEATRE AGREEMENT Page 6 of 10 <br /> 9 <br />