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1. If a Party or a Contractor or other legal entity under its jurisdiction proposes to grant a Classified Contract at the security classification level equivalent to “CONFIDENTIAL” or above, with a Contractor under the jurisdiction of the other Party, it shall first obtain written confirmation from the Competent Security Authority of the other Party that the Contractor has been granted a Facility Security Clearance at the appropriate security classification level. For Classified Contracts at the security classification level equivalent to “RESTRICTED” a Facility Security Clearance may be required if mandated by national laws and regulations.
2. The Competent Security Authority of the Party where the Classified Contract is performed shall ensure that the Contractor including 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.
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;
b) a procedure for communication of changes in the security classification level, taking into account article 4, paragraph 3 of this Agreement;
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;
f) obligation to notify any Security Incidents.
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 Party, to facilitate the security oversight of the contract.