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the Federal/State Government shall not be subject to any obligations or liabilities toany <br />subrecipient, third party contractor, lessee or other person or entity that is not a party to this <br />Agreement for the Project. Notwithstanding that the FedenaVState Government may have <br />concurred in or approved any solicitation, subagreement, or third party contract, the Federal/State <br />Government has no obligations or liabilities to such entity, including any subrecipient, third party <br />contractor, orlessee. <br />Changes in Project Performance (i.e., Dispu tes, Breaches, Defaults, o Litigation). The Grantee <br />agrees to notify the Department immediately, in writing, of any change in local lawj conditions <br />(including its legal, financial,* or technical capacity), or any other event that may adversely affect <br />the Grantee's ability to perform the Project as provided iri this Agreement for the Project. The <br />Grantee also agrees to notify the Department imm ' ediately, in writing, of any current or prospective <br />major dispute, breach, default, or litigation that may adversely affect the Federal/State <br />Government's interests in the Project or the Federal/State Government's administration or <br />enforcement of Federal/State laws or regulations; and agrees to inform the Department, also in <br />writing, before naming the Federal or State Government as a party to litigation for any reason, in <br />any forum.- ' <br />Limitations of Agreemen This Agreement shall be subject fn the availability of Federal and State <br />funds, and contingent upon the terms and conditions of the Master Agreement between the FTA <br />and the Department. <br />Section 6. <br />a. Code of Ethics. The Grantee agrees to maintain e written code or standards of conduct that shall <br />govern, the actions of its officers, employees, board members, or agents engaged in the award or <br />administration of third party contracts, subngnaennenta. or |eeeeo financed with Federal/State <br />assistance. The Grantee agrees that its code or standards of conduct shall specify that its officers, <br />employees, board members, or agents may neither solicit nor accept gratuities, favors, or anything <br />of monetary value from any present or potential third party Grantee at any tier, any subreciplent at <br />any tie[ or agent thereof, or any lessee. Such o conflict would arise when an employee, offinnr, <br />board rnernber, or agent, |On|udiOQ any member of his or her immediate family, partnm[, or <br />organization that employs, or intends to ennp/oy, any of the parties listed herein has a financial <br />interest in the firm selected for award. The Grantee may set do K8inirnio rules where the financial <br />interest is not substantial, or the gift is an unsolicited. item of nominal intrinsic value. The Grantee <br />agrees that its code oFstandards shall also proh|b|ttho its officers, employees, board members, 'or <br />agents from using their respective positions in a manner that presents a real or apparent personal <br />or organizational conflict of interest or personal. gain, As permitted by State or |oro| law or <br />regulations, the Grantee agrees that its node or standards of conduct oheU include pennitieo, <br />sanctions, or. other disciplinary actions for violations by its officers, eUnp|oyoee, board members, or <br />their agents, its third party contractors or sub-recipients or their agents. <br />/1\ Personal Conflicts of Interest. The Grantee agrees that its code or standards of conduct <br />shall prohibit the Grantee's employees, officers, board members, or agents from participating <br />in the selection, award, or administration of any third pmdx contract, or sub-agreement <br />supported by Federal/State assistance if roe) or apparent conflict of interest would be <br />involved. Gubh o conflict would arise when an emp|Uyee, officer, board nno0ber, or agent <br />including any member of his or her immediate family, partner, or organization that ennp|nys, <br />or intends to ennp|oy, any of the parties listed herein has a financial interest in the firm <br />selected for award. <br />(2) Organizational Conflicts of Interest. The Grantee agrees that its code or standards of <br />conduct uhmU include prnrodunaa for identifying and preventing real and apparent <br />organizational conflicts of interest. An organizational conflict of interest exists when the <br />nature of the work to be performed under a.proposed third party contract or sub-agreement, <br />may, without some restrictions on future activities, result in ' an unfair competitive advantage <br />to the third party Grantee or sub-recipient or impair its objectivity in performing the contract <br />05/2712015 Page 6of37 <br />