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2. Employment of Former State or CITY Employees. CONTRACTOR will not knowingly <br />and willfully assign any of its employees who were formerly employed by the State of California or <br />CITY, in a position that could have enabled such individuals to impact policy regarding or <br />implementation of programs covered by this Agreement, to any part or phase of the activities <br />conducted pursuant to this Agreement for a period of not less than two years following the termination <br />of such employment. <br />3. Conducting Business Involving Relatives. No relative by blood, adoption or <br />marriage of any executive or employee of CONTRACTOR will receive favorable treatment when <br />considered for enrollment in programs provided by, or employment with, CONTRACTOR. <br />4. Conducting Business Involving Close personal Friends and Associates. <br />Executives and employees of CONTRACTOR will be particularly aware of the varying degrees of <br />influence that can be exerted by personal friends and associates and, in administering this Agreement, <br />will exercise due diligence to avoid situations which give rise to an assertion that favorable treatment is <br />being granted to friends and associates. When it is in the public interest for CONTRACTOR to <br />conduct business with a friend or associate of an executive or employee of CONTRACTOR, an elected <br />official in the area or a voting or non - voting member of the Workforce Investment Board (WIB), a <br />permanent record of the transaction will be retained. <br />5. Avoidance of Conflict of Economic Interest. No executive or employee of <br />CONTRACTOR, elected official in the area, or voting or non - voting member of a WIB, will solicit or <br />accept money or any other consideration from a third person, for the performance of an act reimbursed <br />in whole or part by CONTRACTOR or CITY. Supplies, materials, equipment or services purchased <br />with Agreement funds will be used solely for purposes asserted or allowed under this Agreement. No <br />voting member of the WIB will cast a vote on the provision of services or vote on any matter which <br />would provide direct financial benefit to that member or any business or organization which the <br />member directly represents. <br />6. Salary and Bonus Limitations. All Subrecipients of WIA program funds are required to <br />comply with federal requirements regarding the limitations on salary and bonus payments in <br />accordance with Public Law 109 -149, Section 7013. <br />VII. <br />HOLD HARMLESS <br />A. CONTRACTOR shall indemnify and hold harmless CITY, their officers, employees and <br />representatives from and against all claims, damages, losses and expenses including attorney fees <br />arising out of the performance of the work described herein, caused in whole or in part by any <br />negligent act or omission of the CONTRACTOR, its subcontractor, anyone directly or indirectly <br />employed by any of them or anyone for whose acts any of them may be liable, except where caused <br />by the active negligence, sole negligence or willful misconduct of CITY. <br />B. CITY shall indemnify and hold harmless the CONTRACTOR, California State University, <br />Fullerton, the Trustees of the California State University, the State of California, their officers, <br />employees, representatives and volunteers from and against all claims, damages, losses and expenses <br />including attorney fees arising out of the performance of the work described herein, caused in whole <br />or in part by any negligent act or omission of CITY, its subcontractor, anyone directly or indirectly <br />Page 9 of 15 <br />