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representatives and designated volunteers from and against any and all claims, <br /> demands, defense costs, or liability of any kind or nature arising out of or resulting <br /> from, or any way connected with SUB-RECIPIENT'S acts, errors or omissions in <br /> the performance of SUB-RECIPIENT'S services or use of grant funds under the <br /> terms of this Agreement. <br /> §410. Conflict of Interest <br /> A. SUB-RECIPIENT covenants that it will comply with 2 CFR 200.318(c)(1) and <br /> that none of its directors, officers, employees, or agents shall participate in <br /> selecting, or administrating any subcontract supported (in whole or in part) by <br /> Federal funds where such person is a director, officer, employee or agent of <br /> the subcontractor; or where the selection of subcontractors is or has the <br /> appearance of being motivated by a desire for personal gain for themselves or <br /> others such as family business, etc.; or where such person knows or should <br /> have known that: <br /> 1. A member of such person's immediate family, or domestic partner <br /> or organization has a financial interest in the subcontract; <br /> 2. The subcontractor is someone with whom such person has or is <br /> negotiating any prospective employment; or <br /> 3. The participation of such person would be prohibited by the <br /> California Political Reform Act, California Government Code <br /> §87100 et seq. if such person were a public officer, because such <br /> person would have a "financial or other interest" in the subcontract. <br /> B. Definitions: <br /> 1. The term "immediate family" includes but is not limited to domestic <br /> partner and/or those persons related by blood or marriage, such as <br /> husband, wife, father, mother, brother, sister, son, daughter, father <br /> in law, mother in law, brother in law, sister in law, son in law, <br /> daughter in law. <br /> 2. The term "financial or other interest" includes but is not limited to: <br /> a. Any direct or indirect financial interest in the specific <br /> contract, including a commission or fee, a share of the <br /> proceeds, prospect of a promotion or of future employment, <br /> a profit, or any other form of financial reward. <br /> b. Any of the following interests in the subcontractor <br /> ownership: partnership interest or other beneficial interest of <br /> five percent or more; ownership of five percent or more of <br /> the stock; employment in a managerial capacity; or <br /> membership on the board of directors or governing body. <br /> 12 <br />