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SECTION 12. CONFLICT OF INTEREST A. Contractor covenants that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which would conflict in any manner or degree with the perfonmance of this contract. Contractor further covenants that in the performance of this contract no person having such interest shall be employed or appointed by Contractor. B. Contractor shall ensure that no employee, officer, or agent of Contractor shall participate in the selection, or in the award or administration of a subcontract supported by funds provided hereunder if a conflict of interest, real or apparent, would be involved. Such conflict of interest would arise when: 1) The employee, officer, or agent; 2) any member of his or her immediate fmai1y; 3) his or her partner; or, 4) any organization which employs, or is about to employ any of the above, has a financial or other interest in the firm or person selected to perform the subcontract. C. Contractor's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from subcontractors, or potential subcontractors. SECTION 13. SECTARIAN ACTIVITY None of the performances rendered by Contractor under this contract shall involve, and no portion of the funds received by Contractor under this contract, shall be used in support of any sectarian or religious activity, nor shall any facilities used in the performance of this contract be used for sectarian instruction or as a place of religious worship. SECTION 14. LEGAL AUTHORITY A. Contractor assures and guarantees that Contractor possesses the legal authority to enter into this contract, receive funds authorized by this contract, and to perfonm the services Contractor has obligated itself to perfonm hereunder. B. The person or persons signing and executing this contract on behalf of Contractor, or representing themselves as signing and executing this contract on behalf of Contractor, do hereby warrant and guarantee that he, she or they have been duly authorized by Contractor to execute this contract on behalf of Contractor and to validly and legally bind Contractor to all terms, performances, and provisions herein set forth. C. Department shall have the right to suspend or tenminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render performances hereunder. Contractor is liable to Department for any money it has received from Department for performance of the provisions of this contract, if Department has suspended or terminated this contract for reasons enumerated in this Section 14. PAGE 6 OF 11