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(2) Oral Transactions. The Contractor agrees that it will not obligate itself <br />in any manner to any third party with respect to Project property. <br />(3) Other Actions, The Contractor agrees that it will not take any action <br />adversely affecting the State interest in or impair the Contractor's continuing <br />control of the use of Project property. <br />e. Insurance Proceeds. If the Contractor receives insurance proceeds as a <br />result of damage or destruction to the Project property, the Contractor agrees to: <br />(1) Apply those insurance proceeds to the cost of replacing the <br />damaged or destroyed Project property taken out of service, or <br />(2) Return to the Department an amount equal to the remaining <br />State interest in the damaged or destroyed Project property. <br />f. Misused or Damaged Project Property. If any damage to Project property <br />results from abuse or misuse occurring with the Contractor's knowledge and <br />consent, the Contractor agrees to restore the Project property to its original <br />condition or refund the value of the State interest in that property, as the <br />Department may require. <br />g. Responsibilities after Project Closeout. The Contractor agrees that Project <br />closeout by the Department will not change the Contractor's Project property <br />management responsibilities as stated in Section 14 of this Agreement, and as may <br />be set forth in subsequent Federal and State laws, regulations, and directives, <br />except to the extent the Department determines otherwise in writing. <br />Section 15. Insurance. The Contractor shall be responsible for protecting the State <br />financial interests in all items purchased under this Agreement throughout the useful life <br />of the Project property. <br />Section 16. Patent Rights. If any invention, improvement, or discovery of the Contractor <br />or any third party contractor or any subrecipient at any tier of the Project is conceived or <br />first actually reduced to practice in the course of or under the Project, and that invention, <br />improvement, or discovery is patentable under the laws of the United States of America or <br />any foreign country, the Contractor agrees to notify the Department immediately and <br />provide a detailed report in a format satisfactory to the Department. The Contractor <br />agrees that its rights and responsibilities, and those of each third party contractor at any <br />tier of the Project and each subrecipient at any tier of the Project, pertaining to that <br />invention, improvement, or discovery will be determined in accordance with 37 C.F.R. <br />Part 401 and any applicable Federal and State laws, regulations, including any waiver <br />thereof. <br />Section 17. Rights in Data and Copvriahts. <br />a. Data. The term "subject data,' as used in this Section 14 of this Agreement <br />means recorded information, whether or not copyrighted, that is delivered or <br />specified to be delivered under this Agreement for the Project. Examples include, <br />but are not limited to: computer software, standards, specifications, engineering <br />drawings and associated lists, process sheets, manuals, technical reports, catalog <br />item identifications, and related information. "Subject data" does not include <br />financial reports, cost analyses, or similar information used for Project <br />administration. The Contractor acknowledges that, regarding any subject data first <br />produced in the performance of this Agreement for the Project, except for its own <br />internal use, the Contractor may not publish or reproduce subject data in whole or <br />in part, or in any manner or form, nor may the Contractor authorize others to do so, <br />Updated 04/15/16 21 <br />