WA ST DEPT OF NATURAL RESOURCES DNR 6/14/2022

2. Any property of the Agency furnished to the Contractor shall, unless otherwise provided herein or approved by the Agency, be used only for the performance of this contract. 3. The Contractor shall be responsible for any loss or damage to property of the Agency that results from the negligence of the Contractor or which results from the failure on the part of the Contractor to maintain and administer that property in accordance with sound management practices. 4. If any Agency property is lost, destroyed or damaged, the Contractor shall immediately notify the Agency and shall take all reasonable steps to protect the property from further damage. 5. The Contractor shall surrender to the Agency all property of the Agency prior to settlement upon completion,termination or cancellation of this contract. 6. All reference to the Contractor under this clause shall also include Contractor's employees, Agents or Subcontractors. U.S. DEPARTMENT OF TREASURY, OFFICE OF FOREIGN ASSETS CONTROL The Agency complies with U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) payment rules. OFAC prohibits financial transactions with individuals or organizations, which have been placed on the OFAC Specially Designated Nationals (SDN) and Blocked Persons sanctions list located at http://www.treas.qov/officeslenforcement/ofac/index.html. Compliance with OFAC payment rules ensures that the Agency does not conduct business with individuals or organizations that have been determined to be supporters of terrorism and international drug dealing or that pose other dangers to the United States. Prior to making payment to individuals or organizations, the Agency will download the current OFAC SDN file and compare it to Agency and statewide vendor files. In the event of a positive match, the Agency reserves the right to: (1)make a determination of"reasonability"before taking the positive match to a higher authority, (2)seek assistance from the Washington State Office of the State Treasurer(OST)for advanced assistance in resolving the positive match, (3) comply with an OFAC investigation, if required, and/or(4) if the positive match is substantiated, notify the Contractor in writing and terminate the contract according to the Termination for Convenience provision without making payment. The Agency will not be liable for any late payment fees or missed discounts that are the result of time required to address the issue of an OFAC match. WAIVER Waiver of any default or breach shall not be deemed a waiver of any subsequent default or breach. Any waiver shall not be construed to be a modification of the terms of this contract unless stated to be such in writing and signed by authorized representative of the Agency. WARRANTIES Contractor warrants that all Deliverables provided under this contract shall be fit for the purpose(s)for which intended, are merchantable, and shall conform to the requirements and specifications herein. GRANT AGREEMENT NO. 93-103672 Page 17 of 19 Form update date:2022.05.16