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§411. Conflict of Interest <br />A. The SUB-RECIPIENT covenants that none of its directors, officers, <br />employees, or agents shall participate in selecting, or administrating any <br />subcontract supported (in whole or in part) by Federal funds where such <br />person is a director, officer, employee or agent of the subcontractor; or where <br />the selection of subcontractors is or has the appearance of being motivated by <br />a desire for personal gain for themselves or others such as family business, <br />etc.; or where 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 />Califomia Political Reform Act, Califomia 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. 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 />C. 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 />between said person and the Contractor. <br />D. Prior to obtaining the CITY'S approval of any subcontract, the SUB- <br />RECIPIENT shall disclose to the CITY any relationship, financial or <br />otherwise, direct or indirect, of the SUB-RECIPIENT or any of its officers, <br />directors or employees or their immediate family with the proposed <br />subcontractor and its officers, directors or employees. <br />E. For further clarification of the meaning of any of the terms used herein, the <br />parties agree that references shall be made to the guidelines, rules, and laws <br />of the SUB-RECIPIENT, State of Califomia, and Federal regulations <br />regarding conflict of interest. <br />F. The SUB-RECIPIENT warrants that it has not paid or given and will not pay or <br />give to any third person any money or other consideration for obtaining this <br />Agreement. <br />G. The SUB-RECIPIENT covenants that no member, officer or employee of <br />SUB-RECIPIENT shall have interest, director indirect, in any contract or <br />subcontract or the proceeds thereof for work to be performed in connection <br />with this project during his/her tenure as such employee, member or officer or <br />10 <br />