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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. Conflictoflnterest <br />A. SUB-RECIPIENTcovenantsthatitwillcomplywith2CFR200.318(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 />§871 00 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