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§41 0. Conflict of Interest <br />A. SUB-RECIPIENT covenants that none of its directors, officers, employees, or <br />agents shall participate in selecting, or administrating any subcontract <br />supported (in whole or in part) by Federal funds where such person is a <br />director, officer, employee or agent of the subcontractor; or where the selection <br />of subcontractors is or has the appearance of being motivated by a desire for <br />personal gain for themselves or others such as family business, etc.; or where <br />such person knows or should 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 />C. The SUB-RECIPIENT further covenants that no officer, director, employee, or <br />agent shall solicit or accept gratuities, favors, anything of monetary value from <br />any actual or potential subcontractor, supplier, a party to a sub agreement, (or <br />persons who are otherwise in a position to benefit from the actions of any <br />officer, employee, or agent). <br />D. The SUB-RECIPIENT shall not subcontract with a former director, officer, or <br />employee within a one year period following the termination of the relationship <br />12