Artikel XII

1. If a Party or a Contractor proposes to grant a Classified Contract, with a Contractor under the jurisdiction of the other Party, it must first obtain written confirmation from the Competent Security Authority of the other Party that the Contractor has received a Facility Security Clearance at the appropriate Security Classification Level.
2. The Competent Security Authority of the Party where the Classified Contract is performed shall ensure that the Contractor and if applicable its sub-contractor:
a) ensures that all individuals granted access to Classified Information are informed of their responsibilities to protect Classified Information in accordance with the conditions defined in this Agreement and with national laws and regulations;
b) monitors the security conduct within its facilities in accordance with national laws and regulations;
c) notifies promptly its Competent Security Authority of any Security Incident relating to the Classified Contract; and
d) holds an appropriate Facility Security Clearance in order to protect the Classified Information and that the individuals requiring access to Classified Information hold an appropriate Personnel Security Clearance.
3. Every Classified Contract including classified sub-contracts concluded in accordance with this Agreement shall include security requirements which identify the following aspects:
a) a security classification guide, which shall always include the table of article IV, paragraph 1 specifying the applicable Security Classification Levels of each part of the Classified Contract;
b) a procedure for communication of changes in the Security Classification Level;
c) the channels and procedures to be used for the transport and/or transmission of Classified Information;
d) instructions for the handling and storage of Classified Information;
e) contact details of the Competent Security Authorities responsible for overseeing the protection of Classified Information related to the Classified Contract; and
f) obligation to notify any Security Breaches.
4. The Competent Security Authority of the Party authorising the award of the Classified Contract shall forward a copy of the security requirements chapter, to the Competent Security Authority of the Receiving Entity, to facilitate the security oversight of the Classified Contract.