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5.3 Minnesota Law to Govern. This Agreement shall be governed by the construed in <br />accordance with the substantive and procedural laws of the State of Minnesota. <br />All proceedings related to this Agreement shall be venued in the State of <br />Minnesota. <br />6. INDEPEDNDENT CONTRACTOR STATUS <br />Wheels of Thunder is an independent contractor and nothing herein contained shall be <br />construed to create the relationship of employer and employee between City and Wheels <br />of Thunder. Wheels of Thunder shall at all times be free to exercise initiative, judgment <br />and discretion as to how to best perform or provide the sales services. Wheels of <br />Thunder acknowledges and agrees that it employees are not entitled to receive any of the <br />benefits received by City employees and said employees are not eligible for workers' or <br />unemployment compensation benefits. Wheels of Thunder also acknowledges and agrees <br />that no withholding or deduction for State or Federal income taxes, FICA,,FUTA, or <br />otherwise, will be made from the payments due Wheels of Thunder and that it is Wheels <br />of Thunder's sole obligation to comply with the applicable provisions of all Federal and <br />State tax laws. <br />7. INDEMNIFICATION <br />Any and all claims that arise or may arise against Wheels of Thunder, its agents, servants <br />or employees as a consequence of any act or omission on the part of Wheels of Thunder <br />or its agents, servants, employees while engaged in the performance of the Agreement <br />shall in no way be the obligation or responsibility of the City. Wheels of Thunder shall. <br />indemnify, hold harmless and defend the City, its officers and employees against any and <br />all liability, loss, costs, damages, expenses, claims or actions, including attorneys' fees <br />which the City, its officers or employees may hereafter sustain, incur or be required to <br />pay, arising out of or by reason of any negligent or willful act or omission of Wheels of <br />Thunder, its agents, servants or employees, in the execution, performance, or failure to <br />adequately perform Wheels of Thunder's obligations pursuant to this Agreement. <br />8. INSURANCE <br />8.1 General Terms. In order to protect itself and to protect the City under the <br />indemnity provisions set forth above Wheels of Thunder shall, at Wheels of <br />Thunder's expense, procure and maintain policies of insurance covering the term <br />of this Agreement, as .set forth below. Such policies of insurance shall apply to <br />the extent of, but not as a limitation upon or in satisfaction of, the indemnity <br />provisions herein. All retentions and deductibles under such policies of insurance <br />shall be paid by Wheels of Thunder. Each such policy of insurance shall contain <br />a clause providing that such policy shall not be cancelled by the issuing insurance <br />company without at least 10 days written notice to the City of intent to cancel. <br />8.2 Coverage. The policies of insurance to be obtained by Wheels of Thunder <br />pursuant to this section shall be purchased from a licensed carrier and shall <br />include the following: <br />3 <br />