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§412. Conflict of Interest <br />A. The Contractor covenants that none of its directors, officers, employees, or <br />agents shall participate in selecting, or administrating any subcontract supported <br />(in whole or in part) by Federal funds where such person is a director, officer, <br />employee or agent of the subcontractor; or where the selection of subcontractors <br />is or has the appearance of being motivated by a desire for personal gain for <br />themselves or others such as family business, etc.; or where such person knows <br />or should have known that: <br />A member of such person's immediate family, or domestic partner or <br />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 California <br />Political Reform Act, California Government Code §87100 et segg if such <br />person were a public officer, because such person would have a "financial <br />or other interest" in the subcontract. <br />B. Definitions: <br />The term "immediate family" includes but is not limited to domestic partner <br />and/or those persons related by blood or marriage, such as husband, wife, <br />father, mother, brother, sister, son, daughter, father in law, mother in law, <br />brother in law, sister in law, son in law, 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 contract, <br />including a commission or fee, a share of the proceeds, prospect of <br />a promotion or of future employment, a profit, or any other form of <br />financial reward. <br />b. Any of the following interests in the subcontractor ownership: <br />partnership interest or other beneficial interest of five percent or <br />more; ownership of five percent or more of the stock; employment <br />in a managerial capacity; or membership on the board of directors <br />or governing body. <br />C. (This Section is left intentionally blank.) <br />D. The Contractor further covenants that no officer, director, employee, or agent <br />shall solicit or accept gratuities, favors, anything of monetary value from any <br />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 officer, <br />employee, or agent). <br />UASI Gov't PSA 15 5/07 <br />Santa Ana <br />20A-19 <br />