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IX. <br />x. <br />LIABILITY <br />A.Generally <br />Each party to this AGREEMENT acknowledges that it will be liable for its own negligent acts or <br />negligent omissions by or through itself, its employees, agents, and subcontractors. Each party <br />further agrees to defend. itself and themselves, and to pay any judgments and costs arising out of <br />such negligent acts or omissions, and nothing in this AGREEMENT shall impute or transfer any <br />such liability from one to the other. In other words, the SUBRECIPIENT agrees to be fully <br />responsible for its negligent acts or omissions, or any intentional tortuous acts which result in <br />claims or suits against the AUTHORITY, and agrees to be liable for. any damages proximately <br />caused by said acts or omissions. Nothing herein shall be construed as consent by a State or <br />AUTHORITY agency or subdivision to be sued by third parties in any matter arising out of any <br />contract, and nothing herein is intended to serve as a waiver of sovereign immunity where <br />sovereign immunity applies. <br />B.AUTHORITY not Liable for Funds <br />The SUBRECIPIENT further acknowledges that the source of the EHV Services Fee Funds is a <br />federal pass-through grant to the SUBRECIPIENT. The AUTHORITY shall have no obligation <br />to advance or pay the SUBRECIPIENT with any funds other than the EHV Services Fee Funds <br />the AUTHORITY receives from HUD. <br />C.Hold Harmless <br />The SUBRECIPIENT shall defend, indemnify and save harmless the AUTHORITY, its officers, <br />agents, employees, representatives, volunteers, and student externs from and against any and all <br />damages to property or injuries to or death of any person or persons, including property and <br />employees or agents of the AUTHORITY, and shall defend, indemnify and save harmless the <br />AUTHORITY, its officers, agents, employees, representatives, volunteers, and student externs <br />from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, <br />including, but not by way of limitation, workers compensation claims and attorney fees/expenses <br />for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors <br />or omissions of the SUBRECIPIENT, its officers, directors, employees, agents, subcontractors, <br />and suppliers arising out of the SUBRECIPIENT's performance of this AGREEMENT. <br />CONFLICTS OF INTEREST <br />The SUBRECIPIENT shall comply with 2 CFR 200.112 with respect to Jhe use of program funds <br />to procure services, equipment, supplies, or other property. With respect to all other decisions <br />involving the use of program funds, the following restriction shall apply: No person who is an <br />employee, agent, consultant, officer, or elected or appointed official of the SUBRECIPIENT and <br />who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision making process or gain inside information with <br />regard to such activities, may obtain a personal or financial interest or benefit from the activity, or <br />have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds <br />there under, either for himself or herself, or for those with who he or she has family or business <br />ties, during his or her tenure or for one(!) year thereafter. <br />Page 15 <br />EXHIBIT 2