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City of Redwood City Grant Agreement #SPPD24100 Exhibit D Page 2 of 2 Should the State determine the Contractor, sub-contractors, Grantee sub-awardees, or any fiscal sponsors are a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the Grantee's bid/proposal any time prior to grant execution, or, if determined after grant execution, shall be grounds for termination by the State. See more at the following hyperlink to the online directory: https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive- Order.pdf. The EO also directs all agencies and departments that are subject to the Governor’s authority to take certain steps, including directing that all state contractors and grantees with agreements valued at $5 million or more to report to the agency/department regarding their compliance with economic sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as sanctions imposed under state law, if any. If the total value of this Agreement is valued at $5 million dollars or more, the Contractor or Grantee agrees to provide a report on their compliance with these economic sanctions. This report will be submitted on the Contractor or Grantee’s official letterhead and will identify the actions they have taken to ensure compliance with these sanctions, and that the Contractor of Grantee has verified that all of their sub-contractors or sub-awardees, if any, are also in compliance with these economic sanctions. 5. Generative Artificial Intelligence (GenAI) Technology Use & Reporting During the term of the contract, Contractor must notify the State in writing if their services or any work under this contract includes, or makes available, any previously unreported immediately complete the GenAI Reporting and Factsheet (STD 1000) to notify the State of any new or previously unreported GenAI technology. At the direction of the State, Contractor shall discontinue the use of any new or previously undisclosed GenAI technology that materially impacts functionality, risk or contract performance, until use of such GenAI technology has been approved by the State. Failure to disclose GenAI use to the State and submit the GenAI Reporting and Factsheet (STD 1000) may be considered a breach of the contract by the State at its sole discretion and the State may consider such failure to disclose GenAI and/or failure to submit the GenAI Reporting and Factsheet (STD 1000) as grounds for the immediate termination of of such non-disclosure. The State reserves the right to amend the contract, without additional cost, to incorporate GenAI Special Provisions into the contract at its sole discretion and/or terminate any contract that presents an unacceptable level of risk to the State.