DJI / Chinese-Manufactured Drone & Federally Funded Project Compliance Addendum

A. Regulatory Background (Informational)

Certain federal laws, regulations, agency policies, grant conditions, and funding agreements may restrict or prohibit the use of drones, components, or systems manufactured by entities associated with the People's Republic of China, including but not limited to DJI and its affiliates, in connection with federally funded or federally assisted projects.

Such restrictions may apply directly to:

• Federal agencies
• Prime contractors
• Grant recipients
• Sub-recipients
• Downstream contractors and consultants

The applicability and enforcement of these restrictions varies by agency, funding source, contract structure, and time, and may change without notice.

B. Client Disclosure Obligation

The Client is solely responsible for determining whether a project:

• Is federally funded, partially federally funded, or federally assisted.
• Involves grant funding, cost-sharing, or pass-through federal funds.
• Is subject to federal procurement rules or agency-specific restrictions.

The Client must disclose in writing, prior to quote acceptance, whether:

• The project is federally funded or assisted in any manner; and
• Any restrictions apply to drone platforms, sensors, or manufacturers.

Failure to provide accurate disclosure constitutes acceptance of all risks associated with regulatory non-compliance.

C. Equipment Availability and Substitution

The Company operates a mixed fleet that may include aircraft, sensors, or components subject to current or future federal restrictions.

If the Client requires:

• Non-Chinese-manufactured equipment.
• "Blue UAS," NDAA-compliant, or agency-approved platforms.

Such requirements must be stated explicitly in writing prior to project commencement.

Compliance-specific equipment availability may:

• Affect pricing
• Affect scheduling
• Require subcontracting or alternative workflows.
• Render the project commercially impractical.

The Company reserves the right to revise scope, pricing, or decline work if compliance requirements are disclosed after quote acceptance.

D. No Compliance Representation or Warranty

The Company does not represent or warrant that its services, equipment, or deliverables:

• Comply with any specific federal, agency, grant, or funding restriction.
• Are suitable for use in any federally funded or assisted project.
• Meet the requirements of any particular grant, agency policy, or funding agreement.

Compliance determinations remain the sole responsibility of the Client.

E. Downstream Use and Risk Allocation

The Company shall have no responsibility or liability for:

• The Client's use of deliverables in violation of funding restrictions.
• Clawbacks, penalties, audits, or enforcement actions.
• Breach of grant agreements, funding conditions, or third-party contracts.

This applies regardless of whether the Company is a direct contractor or multiple tiers removed.

F. Suspension or Termination for Compliance Conflicts

If a compliance conflict is identified:

• Before work begins, the Company may revise or withdraw its quote.
• After work has begun, the Company may suspend or terminate services.

In such cases, the Client remains responsible for payment for all work performed to date.

G. Survival

The obligations and disclaimers contained in this Addendum survive delivery, acceptance, and payment of deliverables.

H. Federal Project Opt-Out

The Company reserves the unrestricted right, at its sole discretion, to decline, refuse, suspend, or terminate participation in any project that is federally funded, federally assisted, or subject to federal, agency, or grant-based compliance requirements.

Such decisions may be based on, but are not limited to:

• Regulatory uncertainty or ambiguity
• Equipment availability or restrictions
• Compliance risk exposure
• Insurance or liability considerations
• Commercial impracticality

The Company shall have no obligation to modify its fleet, workflows, or business operations to accommodate federal compliance requirements.

If the Company elects to decline or terminate participation:

• Prior to project commencement, no further obligation shall exist.
• After work has begun, the Client remains responsible for payment for all services performed and costs incurred up to the date of suspension or termination.
• The Company shall have no liability for delays, substitutions, or project cancellation arising from the exercise of this right.